Okay. You're on water. See that? You're on water. That's what I said, right? Water is where we are next. So, water starts here. There's the total revenue. Yeah. So, here's going to be all the total revenue and then here starts the
expenses, the people and when you say line, it's like rent like redash. Would that be 3-31? The top. Nobody talks in that language right
there. When you say line item, hear that. Admin is a line item. Jacob's contract is a line item. Travel's a line item. Telephone is a line item. But he uses a number line item. So, oh, we don't have that on there.
Are you on your best behavior? You better go let her go get this start. [Laughter] It took me too long to get off. Keep going back. Fine. I haven't touched it in 14 years. Shouldn't be the same.
I think that's bring No, I better not. That's a joke. You're looking at it through a different lens. I could get it on here and I probably need to, but this is the first time I've
had a problem. All right, you guys. Daniel coming back. She is. They should run the bathroom quick. Holy. Oh, wrong. any bloodshed at the BCC meeting today
so far? Uh, I haven't got no report. Okay, mayor. Thank you. Thank you. We good. All right, we're going to call this uh budget workshop to order.
This is Tuesday, August 26, 2025. And if you will, we'll do the uh communication pledge. Heavenly Father, we love you. We thank you Lord for your love towards us. We ask God for you to for your help, for your guidance, Lord, in this meeting as
we're trying to take care of the finances for the city and Lord. So we we pray for your favor. We pray Lord God that uh keep our cool heads and pure hearts and God that we'd get this done decently and in order. And it's in Jesus
name we pray. Amen. Amen. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.
Alrighty. Well, this is kind of a extension from yesterday. I think we're at water. Is that where we are? We are, mayor. Okay. All right, Kobe, if you'll take it from there. Okay. uh real quick if everybody's okay with it. what I would um like to do if that's if it's okay go through the
enterprises what ask questions on each one and at the end of that um I've got a couple things just that we need to consider and may need to be made changes to on the next version um as we go through this and then that point if we want to go back to any subsequent budgets or anything the council would like to do um if everybody's okay with
that process we can go that way and Dan is but I guess it's probably best to wait till the end but he's got something else to bring up before we dismiss okay on the budget having to do with the budget Okay. Okay. All right. All right. So, we will start with the water budget. And so, uh enterprise
funds, obviously the cemetery, lights, those are special revenue funds. Um water, sewer, gas, solid waste, and the airport, those are special, those are enterprise funds. And so, their revenues are in the same sheet as their expenses. Um so, you'll see at the top of this
sheet, you will see the estimated revenues um for the water department in the amount of $8,78,69. Again down in um the last three lines you see carry forward impact fees, carry forward capacity fees and carry forwardreserve.
If we were to jump back to the prior year carry forward sheet we included in the budget. Everything is in there every so we're capturing all that stuff and what it is we are specifically bringing forward and spending um in this fiscal year. Couple things of note as we go through
here. Um two two thing or one thing that would affect all three uh enterprise funds and water sewer and gas. We are requesting to add two positions into the enterprise funds. Uh that is in a utility billing not utilities administrative assistant and that is a
customer service representative. So uh the assistant would direct report directly to the utilities director and the customer service representative would report to the utility billing supervisor. Um and so you see these again that in addition to what you did yesterday
took I don't know we did not we said okay I'm sorry we not yeah kept we kept them separate yes and so that's just why you see this where it's highlighted where it says 1.99 those two those two positions get evenly separated amongst um the funds and again
as we said we moved formerly the authority of all utility billing employees into the three funds that's why you see a weird number there, but we are requesting those two positions to be added into the utilities department. And how many utility billing clerks do we have now?
We currently have two customer service representatives, one utility billing assistant, and one utility billing supervisor. So, we have four employees for utility billing. Two are vacant and and all four of those are being taken from finance and putting over here. So that we did that last year in
terms of the expense but this year it's the actual we just moved the number which is just formality it's the actual authority they will now report to the utilities director rather than the finance director and what what what safety nets are put in place because as
these have to roll up finance has to be aware of every little aspect of what's going on we talking maniel about that we will uh once we make that formal transition and move out of offices we'll work with Randall and McDaniel to put some place things in place. There's things that still have to happen monthly. They're
going to have to communicate on reconciliations. They're going to have to communicate with deposits every morning. Uh that's going to have to come to finance that won't change them. So we will we will have things in place. A lot of the process exists now will remain the same. The employees just report to the utilities direct finance.
And before us making a decision, I remember about a month or more than a month ago, I asked reach out to the auditors and ask them what their suggestions were. What was their response in terms of controls of of moving this outside of the finance?
I have not spoke with them about I don't did we talk about that with them in our exit? I don't believe so. Um we could we can reach out to them if you're looking for controls. Um but in terms of the the way we're pushing the structure to restructure it um I don't see where
there' be an issue. There's other cities that do this similar similar structure. So a number of cities that do it that way. Yeah, we did it that way at the county. The county director was over the utility. And my thing is is I'm not necessarily opposed to it. I just want to make sure
everything is put in place before we even actually go and do that. I don't want, you know, them starting and this is how we've always done it and then we get into that same mindset. I'd rather it just be protected from the beginning because we worked so hard to get out of that
financial hole. I just don't want to see us going backwards and getting written up for silly things. We can we can definitely send him an email and see if they have any recommendations. So, seems like a good time to bring this up. I'd actually had a conversation with Kobe surrounding
our CSRs. And in in my opinion, a lot of companies nowadays are moving to, you know, tell people, look, you don't have an option. You've got to like pay online or pay through a kiosk. And that's just that.
Like there's not going to be a whole lot of staff sitting down at a window available, you know, 8 to 5 because you just still feel like coming in and paying your bill, physically paying your bill. um which would help us with either
reassigning those people to do other tasks that need to be done or at some point saying that that's that's not a position we want to continue to fund. So it's my opinion that we should really evaluate very hard what is their current workload. In other words, how many
people physically still come in and pay their bill and how many people can we, you know, move over into some sort of automatic payment or online payment, that sort of thing. I recognize this is something that I have asked for for
since before we went to Tyler. Um, I don't think it's right that the city charges almost $6 to take an online payment. I pay it every month because I'd rather do that than than the bank draft. But I think that we really need
to look at how many CSRs we have that basically are here for the convenience of people that still want to physically walk in and and pay their bill, you know, via person. I think that that's that's an expense we really truly ought to just have a look at.
I don't I would kind of would like to hear from my fellow council members. I know I've kind of thrown a lot out there in quick succession, but does anybody else feel that way? Question is the Yes, I How quick could you imagine making that change if we did change it?
I think if if you go ahead to me, that's something that let's have a conversation. Let's get some consensus on whether that's something that we want the city manager to evaluate and then let him look over say a three-month average of how many
people physically came in and then he can report back to us and then he can make a recommendation mid year. At that point, he's got the flexibility to say, you know what, I got a CSR position open because there is some turnover in that position and just say, you know what, I've decided not to fill it because I looked at how many
people are coming in or I want to I want to reclass it because instead of it being a CSR position, I want it to be a finance tech or I want it to be an admin assistant or something like that. Were you talking about a physical exterior kiosk or what were you talking about?
Uh, no. I know Kobe Kobe had mentioned to me that they were looking at an actual like kiosk that would be in the lobby that they could walk up to and take payments. My only concern with that is that's reminds me of my banking days and what I know of those those type of secured kiosks, those are not cheap.
Now, you know, they don't call in sick. They don't have, you know, yeah, insurance and FICA and everything else to go along with it, but you're also paying for that automation, and that automation is not cheap. So it we have to kind of weigh all the pros and cons, but having having people sit down at
those windows every day, multiple people sit down at those windows every day for the pure convenience of someone want to come in and physically hand us a payment, that's an expense I think we just need to to look at. And have I question, and you kind of answered it, if it was something we were trying to
maybe incorporate in six months, not the next two months. No, no, no, no, no. I I just It's budget time. to me, let's ask the city manager to evaluate this and and bring something back. I don't expect him to incorporate it into this budget, but while we're talking about it, yes, we're funding these positions, but
to me, this needs to be a conversation. Okay. Yes, ma'am. I don't think it would take that long to figure it out because all we have to do is who has direct deposit, auto withdrawal, because somebody has to reconcile that every single month. And the other thing
is just look at the monthly deposits for one month real quick. I mean take one day to figure out how many people come in here on a monthly basis to see because our deposits are going should match those. So it's it I don't think it takes three months to evaluate. But I do think that's
something that he should do over the course of the next 12 months as we I mean I know that we have other issues to deal with. But I don't think we should transition to something like that. It gives everybody plenty of time. you can give notice to the public if that's how we decide that
you're going to do it and then implement it next budget cycle. I mean next fiscal year, not this budget. Definitely reasonable. Um we the request came from before the prior supervisor had left and we talked about it and I did and definitely seen the need of the way we currently operate. Sure. But if
we were to take the next year and and take those numbers for how people are coming in, it'll be a little bit variance to actual to that form to taking out direct pot because you have people come in who do hookup. you have people come in and do business taxes. You have so there's a little more to it that we see some variance and people come in. Um but if that's something
council wants to do, I don't think we can we can get by. Um not we don't have to get by. We we can still operate just fine. Um we can take that this next year and do some of that and see and and weigh that to the kiosk. I know Randall when him and I met on the budget he brought that idea up. But this year my
pl conversation with him was it's one or the other. It's either kiosk or it's a position because this very question is going to come up. I you know I foreseen that coming. So because there's questions to the kiosk is the kiosk going to rec going to recognize that payment immediately right we don't do that on the weekends if someone's may or
not have phone calls numerous times someone gets a water cut off on a Friday and they try to pay their bill they pay their bill online on a Saturday we don't turn water on till Monday because that payment has not processed. So is that kiosk going to process immediately so staff can see that and we can do that. So there's a couple things to go through
with the kiosk. Um, and it whether it's inside or outside, you know, after hours or on the weekends. Um, so it's up to the council. I think we'll we can we can get through with what we have now if we want to do that analysis or we can budget it uh and do the now same time. However the council like to do it, I think we'll be fine either way.
So part part two to that my request and I probably got lost in the in the mix of everything, but $6 to make a payment online. It's the only entity that I pay online right now that charges me a fee. all all my other bills that I pay
online, my car payments, everything I don't pay a fee for. And I understand that that means that would probably mean that the city's got to eat a cost on that processing fee. But right now, I get a separate I get two separate fees that basically chart that total up to $6
when I pay the bill for the store online. And I have my home set up on an AC Autodraft, so it it's no it's no fee. And I recognize that's technically an option. But I again I stand by the fact that we are charging someone $6 for a
transaction that we are more than likely being charged well less than a dollar. We don't receive those fees. I I know. I know. I know. I know. And they go directly to the provider. They keep that fee and they give us the money. I understand that.$125 in the office. If you come in and use
card machine, it's a$125 flat fee. So, a lot of people do that and we I think that that's something that we need to look at as offering a convenience to our citizens where we say, you know what, we'll take that fee instead of passing it along.
So, change providers, not necessarily change providers, but maybe we'd go back and look at what the the contract is and say because we we established that when we bought Tyler, which would have been four or five years ago. So, I'm sure the contract is probably up for renewal or renegotiation.
So, is it Tyler that charges the six bucks? That's my understanding. Payments, but it's through Tyler. No, Tyler actually has a payment processing system now that they did not offer when you went online. Not checked into it. I just think we need to look at it. That's what I'm asking for, but I'm
asking for some consensus because I've asked for this before and it's it hasn't gone anywhere. So, I'm asking for some consensus from the council on whether Kobe should investigate it and bring back a couple of options for us is what I'm asking. Well, does this delay?
No, I'm not want to delay the budget. No, the hiring. No, no, no, no. Okay. Yes, ma'am. Uh, I'm question uh what do we do in the event of an emergency? So if my water line breaks or something happens, which has happened to me once before and my
spouse wasn't home, so I had to call and somebody there there you guys got somebody by the name of Clay that came out to my house and helped me and he turned it off at the street or whatever. So what do we do in the event of an emergency? I know you said we have talk about the payments. I mean
is there an emergency number somebody? Yeah, absolutely. We have the on call number that for water, sewer, gas, uh public works. So they can call that number directly or they call the PD after hours and if you call city hall after hours that will transfer over and then the PD would call the on call number.
So there is an option if there was an emergency after hours or on the weekends. Yeah, we're Yes, we're specifically talking about cutting on and cutting off for lack of payment. That's what we are specifically talking about in terms of payment, right? But in terms of emergency, yes, we already have process. They call that
emergency number though if it was like that or do you all maintain a list that you know who's going to be cut off over the weekend? Well, we had the cut off prior week and people want to try to pay on a Friday or whatever and they'll call the mayor has come they'll call us on a Saturday say hey I paid online can I get my order
turned on Saturday we don't do that because the proc the payment hasn't processed. Could we charge them an extra fee if we would do that? I mean that's something we can look at. I think that's bigger policy stance we need to bring back to bring back. But and then my next question is this
building behind us here, the drive-thru, can that be the where the kiosk goes and the people could just drive through instead of putting it up here in the lobby in this building. I don't even have to get out of my car. I can just use the convenience of you. I don't know what that little drive-thru areas for out there.
It has a drop off box for afterhour payments uh or stuff like that. So, yes. Oh, there. Yeah. If we were to do one, that's most likely where it would go. Okay. Is the drop off box still in effect? Yes, we take it every morning at 8:00. I've seen people using it, but I just
never knew what they were driving down that little That's the problem. It doesn't feed into ear. Yeah, it's just physical paper, which would be probably pretty expensive to get just like you going to the bank. Somebody goes over to the post office every day, right? Yes. So, it's not We check it every day. Oh,
how hard would it be to get that system like you've got at your house, an updated system uh that doesn't charge a fee? Um it sounds like to me it's something as simple as changing providers. Is there more to it than that? We just have to we have to look at it. We just see what providers charge.
It's like it's like at our business we we use Square and we don't charge a credit card fee. We basically just that's that's built into the cost of doing business for for our bis our business and we pay square I think 3%
it's a flat fee is 3% now yes I acknowledge that's technically a higher rate if you go to some of these processors like Clover and some of them you can actually negotiate it down to like two 2.5% or even lower but you then you typically have to sign long-term
contracts to get that lower rate whereas Square if I at Mad Square next month and want to go to a different system, I go. I don't have any contracts with them, but I pay for that convenience and a higher rate. So, there there are options for sure. I had one more question. Pay by phone.
Do we use that option now? We do. And what kind of And is there a fee? Do I pay a fee if I pay by phone? Yes. Okay. What's our tap count? Tap count? Uh meters, I'm sorry. Terms of accounts?
Yes. I believe water is roughly 6,100. The last thing I was given was a little less than that. 5,400 and something was on that that we just went through. I'll stick I'll stick to five if we're talking six 5,000 accounts. And I I understand not everybody's going to do
that, but that would be eating $30,000 a month. That's a lot of money. And the cost per employees, I'd love I'm not saying I like the convenience and everything's automated and all better, but that that is a lot of money. So, I I
would like to look at the alternative of Tyler. What is Tyler cheaper than the $6 figure? Try and come up with other means to where we can get lower rates for that because that's that's a lot of money. Are you saying that's what the fee we're paying if we $6?
If we ate the $6 on 5,000 accounts is $30,000 a month. Oh, yeah. We can't. So, we don't we don't want to eat that much. But that that's I'm I'm all for exploring all of these options. I just want to look at that, please. I do I do also want to say while we're
on the the subject of like late, you know, late fees and disconnects, you know, Dr. Manite brought up this up a long time ago. I was floored. I don't know if you guys know this off the top of your head, but the number of people that are cut off every month that are
cut off every month, every single month, it's shocking. It's the same people over and over and over again. And what would you accredit that to? I I I don't want to I don't want to make a statement on that. Is it irresponsibility?
I I don't want to make a statement on that, but I just want individually just needs to be I just want just wanted to just kind of draw that that out that while I while I there are always mistakes. I've even made mistakes and had things cut off, right? Because I forgot to renew a credit card.
But you don't do it every month. But I don't do it every month. How many people how many accounts are you talking? I don't have 145 a month roughly. Some months some more, but I don't know how many of those are the same people every month. There are a
number of reoccurring. You get caught every month. And to cut it back on is what? 50 bucks. I think it's 30. Yes. A $30 fee. In July, there are 204 disconnects. That was a high one. Yeah. What? 204 disconnects in the month of
July. But go back to the Oh, you look at the report. That's less than half a percent. No, it's 4%. Sorry. We have to send somebody out to cut it off. We have to send somebody back to turn it back on, though. And we have to have somebody involved to get it fixed.
So, I I don't see issues with the disconnect fees, though, at all by no means. Yeah, we can we we'll look at on both both fronts uh on both of those and look over look at it and bring it back. Um so do what about the customer service
position? It's up to the council. Is that something we want to take out and an analyze and bring back next year? That's something we want to budget and then bring back in a few months. Is it already in the budget? It is. I'd say leave it for now. How much is it cost in the budget right now?
because we're going to have to make hard decisions later on when we're done with the totality of this. $47,316.96 47316. Yep. And that's gross. That's total cost with benefits. Yep. Total cost. Thank you. Just a one.
And that's one CSR, correct? I got an old school uh solution to not having two people sit there at the window just sitting there all day waiting for somebody to walk in. And that is uh and I've this isn't an
original idea. I've seen this before. You walk in there and uh there's a sign that says ring bell for service. You ring the bell. Somebody walks in from the back. If it's a special issue, uh a special thing, they know how to handle it. if they have questions, they can
handle it. Then they just go back, you know, after they handle that customer and they're not just sitting there on dead time uh during the day. So that's an old school uh solution to not just having people sitting there idle. We can we look at it that there there's
not a lot of idle time. It's not because they're also working with utility staff on cut offs, reconnects, uh new tabs, work orders. So there's a there's a lot more going on with them just waiting on customers can pay their bill. Um there I mean there's going to be idle time but it's it's there's there's a lot more
going into on the back side with the work orders uh with the utility staff between gas water and sewer. Thank you. Okay. Okay. I just have general questions on the water still on there.
Okay. I'll work through it. All right. Um the first the first thing you're going to notice make sure Yes. All right, we'll start here on uh the highlighted which is 43 professional services and this line item is two things. It is the carry forward of 280B
CI that the council has. We have a task order with Dubberry on uh that was a carry forward of $27,500. And in that line item is uh $350,000 for a water master plan. That is the number given to us um from Three Notch Group to perform a water master plan on our
system. So waiting to get the final task order from them, but that's the amount they've they've recommended the budget for. Um, so any particular questions on on that line item. So 377 includes a carryover and the 350.
Yes. And the 350 is coming out of just double check as we're doing this. The water and sewer master plans are going to do while we're both here. Those are being paid out of capacity fees. What carryover is she talking about?
The sheet you see here, uh the prior year carry forward sheet we have to identify monies that we're bringing forward out of accounts. And so the water master plan amount of 350,000 is So you're just talking about up in the He's talking about up in the revenue
section because I'm looking at line I'm looking at the expense portion. Yep. It's also in the uh revenue. Okay. That's coming from capacity fees. Yeah, I don't have any issues with it. I just Okay. All right. Um, this year you'll
see a change and I'm going to line 44, the next one down, admin fees. Um, you'll see a change in the way I've distributed uh what we used to be the billing and admin fee is now the admin fee because billing is now associated directly to those funds. Um, we changed the calculation to what I consider to be
a fair share calculation in terms of water, sewer, and gas. Uh we used to bust that that fee up three ways even. Um that really was putting a strain on the natural gas department or division because it was that was $220,000 fee u compared to water paying 220 and you're
talking about a roughly $6 million difference in budget. So we took uh what we thought to be looked at account active accounts busted that up uh what is what percentage of all active accounts is water gas sewer and then applied that to the fee and associated
directly. So that took the gas portion from 220 220 down to 55, but it took the water up from 220 to 423. Um, again, it's more proportionate to what it represents in terms of the number of accounts. Um, and honestly, the water water department could handle could
handle that fee better than sewer and gas could. Whose fee is this? Who's getting This is the fee that we send to the general general revenue general fund. Okay. To help offset cost of Yes. This the fee we charge for part of my salary, the finance director salary. Human resources. I'm okay with that. I just wanted to
Yep. Okay. Um let's see the next of note. You can go down a second. Jacob's contract. Yes, sir. So that's that's the annual contract amount. It did increase as we talked about last night, 3.75%.
Um but it is a recurring expense we've always had. The next line of note particularly is 50. Go ahead. Sorry. Hold on. Let me understand what this I thought theirs was much higher than 456. So
there must be another part. It's split between water and sewer. It's what? It's split evenly between water and sewer. So half is in the water fun. So this is only 50% of their contract. Correct. The other 50% is in the sewer budget. So it costs about 900,000 a year.
Yeah. Just sir fisc year 26 will be 913,000. Thank you. So line 56 water R&M system $880,300. Um and that's a number of projects in there and also made up of carry forward from capacity fees general their general
revenue from the water fund and impact fees. Uh that includes the um replacement of Hugh Adams Drive Water Man is the replacement of Hill Street. Um Hill Street will be receiving not only replacement, but it will be an
upgraded line with fire hydrants down it fire suppression. And so speaking to Mr. Atkinson, we're going to charge 60% of that cost to the impact fee fund and then cover the other 40% I believe with uh believe I've got it two capacity fees.
Could we get any sidewalks out of the deal? Uh we would have to look Yeah, we'd have to look at it. That would come from a general front budget. Kobe, you jumped over some things I want to uh Okay, utilities 206,000. Where are you paying utilities?
That's city water, sewer. We pay ourselves. I've never worked anywhere that that's happened, but we do that here. That's us paying our our bills. And you pay them at the rate that everybody else Tell me what buildings where where where that's the wells the the the water
the water wells lift stations. Well, this is water. So, this is at the uh water towers, the wells, um the utility yard out on Walton Road. So in total across all funds, how much is this a lot
expense? 206 for this one. For water is 206. For sewer, you have it busted up between lift station, spray field, and the plant. That is 338,000 in addition to the 206. Yes, ma'am. All
right. 336. Gas is 5,000. And again, that's just between the water, sewer, gas, general fund has its own utilities line item. Yeah. But then that's what I'm saying. All funds. I don't it don't matter for me.
Facilities aggregate facilities utilities is $283,000. Now that incorporates both uh if I'm not mistaken, that's these line items also incorporate power too. This is water, sewer power. You want to know just about us? I think I ran a report.
That's almost a million dollars we're charging ourselves. That's crazy. How much of that's power? I wonder. Well, let me see. Just pull the separate amount. But yeah, that's power, water, sewer, gas. Well, power. We don't pay ourselves
power, right? Of course not. We pay the bill. That's FPL or Yeah, that you can't control. But if we back that out, how much are we truly billing and collecting from ourselves? It'll take her a minute. Pull it out of the balance. That's fine. And that's fine. I
ran a report and I'm just trying to find it. Mr. Mayor, yeah, this seems vaguely familiar to me. Do you remember I remember either previous council before I came on or either right after I came on that there was a whole discussion about why we charge oursel
and there was there was I I thought there was some requirement that we have to account for even the water that we use. You can account for it without billing for it. That's what we did at every other place I worked. You you metered it, but you did not charge yourself that. You just accounted for the water
that you was using. I mean, we we've never See, Mariana didn't build ourselves. Jackson County didn't build ourselves. But if we're expensing ourselves, are we also accounting for the revenue as well? So your revenue is inflated and your expenses are
not really not I mean because you're charging because the trans because then is that part of the transfer or is this on top of the transfer? This is separate the transfer these bills the water sewer and gas paying their own bills directly and it's getting up in the general
revenues of the city right of the general fund. No no they're paying themselves. The only thing we get off of it is the utility tax. Yeah. We do get 10% off of our own water and sewer for water and and gas. What you got real quick?
So, I was told because I as had that same question um by Deborah about cuz why is that showing if we're if we're having the gas and water the OPD? Why am I budgeting X amount? Because we're
basically buying it from ourselves. So, but she did tell me there was some state law that required it. But I don't know if that was true or not, but yeah, that we were charging oursel at one point and actually had a fee amount cuz I was like, why don't we just charge the unit price but zero it out? And I don't know,
I'm not a finance guy, but that's how it was done. Can look into that, see if there is a legal requirement. Absolutely. I mean, this is something we've done now. I know says he's done for. I mean, it wouldn't hurt to I couldn't answer Tom's question because I I could not recall, but it does seem
like that that was we were obligated for some reason. And I just want to clarify. So, Kobe, it's in line 10. The revenue that we're charging ourselves is in this line item 10. Is that accurate or not? What seat are you on currently? I'm on the water sheet. Oh, line item. It's included in in the revenue.
Yes, water sales. Thank you. That's what I wanted to do. Miss Kitch, I'll allow you to ask one question, but we're not open for public comment yet. Go ahead. Well, got a minute. Okay. Um, y'all were talking about the um kiosk out there. Yeah.
And um I want y'all to consider our elderly. My father-in-law couldn't come in here and manage that. You have to be able to process checks and not have somebody at the desk that says go use the kiosk because that could frustrate some of our elderly. That's my only statement. Yeah.
So, okay. But we will be open to public comment a little bit if anybody else wants something. Okay. So, so Danielle, you said other cities that you worked for did not bill theirelves. They tracked the water usage and reported it,
but they did not bill theirelves in exchange. I mean, like we send oursel the people that we send the bills to send us all of these bills and then we process checks for all of these bills. I I've just never worked anywhere that did that. And if you did, why why aren't we charging ourselves a lower rate? Why are
we paying what everybody else is paying? Um well, if it's if it's required by statute, it doesn't seem like it would apply to We'll find out. I would have got rode up over it, you would think, right? Yeah. Just Well, you know, the pointed out our 70% loss, you know, we're pumping out water,
but we're not building all that kind of stuff. So, they do catch things like that, but I'm having trouble wrapping my head around this uh this idea. Um, but what am Amy what was the the total that you kind of roughly came to that you
he said 5,336 206 283 so it was uh 2 47 8 almost nine and that's not 900 900,000 but it it can't be that's got other utilities in it so
had electricity in it could be I ran a report but it's for 101 23 to 20 to through this current year. So, it's two years on accident and it was $676,245 that we paid ourselves.
It's not going to it won't be much different than that then. So, half of that Clay says he believes that it's part of the original covenants on the debt service to not give it away for free. And that's also how Freeport does it that it was part of a a bond covenant from back in the day.
Is that bond already been paid for though? And that because we already you guys consolidated you guys consult Yep. You guys got rid of all that stuff and anyway it's something to look at. Sure. We'll take a look at it. Okay.
But that's interesting. Any anything else above R&M before I go into that? Oh yeah. Oh, sorry. Hold on. Okay. Okay, I want to talk about insuranceances. Which buildings is that 30 grand for in particular? Again, uh water towers, wells, uh
utility yard out there on Walton Road and it went down $11,000. Yeah, that could that's probably for two reasons. One, um I think our property went down a little bit, 20%. On top of that, Danielle finally Daniel got around to finishing up uh
reallocating appropriate insurance costs to the appropriate departments. So, so my generic question and again it's not just specific to this. It'll be an aggregate. I remember Chief Hurley coming up here and saying we're paying for insurance on cars he didn't have
anymore and we're doing this and doing that. Now I recall I think we just gave direct general direction for you to go review that and bring that back, but I don't recall it ever coming back. So we got with Lisa on on the vehicle. So I know she went through there and worked with Tom on at the Florida Lego
cities that does her insurance and then obviously Danielle went through the buildings and that's how she went through cleaned it up added a new terminal and then reallocated the liability the insurancees properly. That's why you'll see big changes around certain department particularly the police departments went down. I believe the fire departments went down or up
because you got the appropriate buildings. The airports went drastically up one because the new building but also because of all everything else on the airfield they got appropriately allocated. So do we have like a onepage executive summary that we could see as a council
on? I'm not sure if Daniel has one. If not, we can get one. We can get with Lisa and we create one. That would be great if we could because I'd like to see that before we go to a public hearing to do the budget. Are we having another budget hearing before?
We'll find out. Another workshop before we'll find out after this one. Okay. Yeah. That way page. All right. Keep going, Kobe. Okay. Any uh any other questions above R&M?
Not. Okay. Um, as we talked about Hugh Adams on Hill Street, uh, the other specialty meters again that those are large, you know, 6-in water meters, things that that come up on particular developments that we we had in stock in case of the need and because of the time
delay to get one. Uh, in here also is 1,680 registers that that Rando had put in the budget. Then we budgeted another 300. So, um, that would be almost 2,000 new AMR registers that will go along with our new system that you all approved a
few meetings back that we carried over be carrying forward. We did not receive that system yet. And so, we currently have, I believe, roughly 1,900 registers that we don't get automatically kick on new system. And so, we're buying almost 2,000 more. Um, hopefully we can get those done
in the one year. Um, and then we will be close to 4,000 water registers that would automatically be reading straight to city hall. uh the ladies up front will be able to see that real-time information on those water meters. Um also and that's the first year of the register replacement program that Randall has put together and his staff.
Uh additionally 500 meters and this is the first year of that replacement program. Um and then another 22,000 for general RN which is bors up under roads and then uh regular pipeline repair. Okay.
And the rest of them pretty standard going down. Uh this year, I don't know why I didn't do it last year, but you'll now see in water and sewer and gas uh along with airport, they now have their gr their grant section. Not sure why I didn't do that last year. Um but these are the grants we're currently working
through. Um for the water department, this the expense side of it. It is. Yep. In capital outlay, you see uh building improvements. This is a two-parter. So, we're carrying forward 37,000 from last year, and that is to make necessary
repairs to well the roofs on well buildings. Some of those are leaking and need some repair. So, we want to get those knocked out. We've received a couple quotes. And then another 15,000 to purchase a pre-built 10x 20 or 12 x 24 shed to go out the utility yard. There's currently no office space out
there. And so the men and women who work out there need somewhere, you know, they need to have a meeting place to have a conference table to to meet and go their stuff. Uh on top of that, an AC office space for break and lunch. So they currently don't have that. We want to get something in place for them out there at the yard.
Question on the grants. Are we fronting all this money in advance? And what's our return to get the C? Most of it to get it back. Most of it. Yes. So lines 81 and 82, those are grants. SRF's obviously 5050. We will have to
front those funds and then we typically turn around and uh as soon as we get the invoices and pay it, we will then turn around and bill the state. They they like to do a once a month. They don't typically like more than billing and ask for reimbursements more than once a month. So every other month we will be as we get them, we turn around, we bill
them back to the state and we're monitoring that. So how quickly is it turning over? Like are you getting it within 30 days? 45 days. From the time we build. Yes. Yeah. What? What? From the time we build, we get it about 30 days.
30 days. Okay. And that's gotten a lot better since you have a grant coordinator. Yeah. I mean, when I walked in place, this was a mess with getting R grant reimbursements. Yeah. And she does do a good job because I know you're going to be tight this year on cash flow. So, okay. Uh but
line 83 that 280B contributed capital that is the funds that split between water and sewer that the developer of Eagles Crossing sent to the city. The deficit the difference between the $500,000 grant and the uh the total cost of the contract. So that is money we
have in in the bank uh that we would use for those expenses. Um we talked about building improvements going into equipment greater than 5,000. That is two trucks and a fusion machine. Um fusion machine is basically a piece of equipment you wrap around pipe and it
welds pipe. Um extensions be running extensions. Uh we're doing the second half of Wagner Drive as a carry for $16,000 from last year and then we will be extending Lake Holly Circle and I believe that is to clo to do a closed loop. There's currently two ends and they want to
close the system for better pressure and uh overall quality. the uh Algro based towers project that's carry forward from last year. Council has already approved that. Um but we need to carry that money forward until we actually receive hardware and system. Then we can expend it.
Um again last year we separated capacity fees between the 25 and 75. We put those have direct expense lines. So we let those go in there and the end of the year if we have a piece of equipment we need or we have something funds we need to bring forward. We did that. And this year hopefully it continues to work. But
this year was a good example of that working for us when it came to the fan press when it came to uh the the skate system at the water wells and some of that. So um those are the estimates and you'll see that both in water and sewer along with the police and fire impact fees. Those come from Mr. Wallace on what he expects the city to see in terms
of developments next year. How much is in fund balance in the water fund? Danielle get pull it up. And is this are you carry for? Okay. Okay. So whatever that value is are you
re 100% is it back up in this carry forward. So the carry forward in water is coming from un unspent funds in fiscal year 25 that we are bringing forward or is those be committed fund balance is what I'm hearing you say. Yes. But they're not wrapped into your f
your audited 2024 financials because we budgeted those in 25 as a expense. And then the other carry forward again at top of the sheet is either impact fees or capacity fees. And what is didn't didn't we have an
ordinance that that's why that 2575 is split because there was an ordinance. Correct. 25% is to be is can be used for operating expenses. The 75% goes into reserves. Prior last year the 25% was just cooked into the budget. There was it wasn't specifically called out. the
75% was um so we to we pulled that out that way because we ch we collect those dollar for dollar. Whatever comes in is what we collect. Um and I was afraid of I didn't like the idea that we cook that in there not knowing if we're actually going to get it or not. So we are budgeting expenses for this department
and we don't know if that funding is coming or not. So we pulled those out so we can actually see the collection of it and if we get that money then we spend it. If we don't get it we don't. But the 75 stays reserved in reserves. Correct. And that's okay. So, and that's the
number. You're not bringing that forward in No, we we are saying we expect to collect um $97,999 and 75% reserves and you will see that exact offset in revenues and those will go into reserves. It gives us the fund balance reserve number. Then we'll Yeah.
No, that that's a separate that you that's in a separate that is a capacity fee numbers. Some of that's in the fund balance, not it is. Some of it is. So, the only fund balance number I can give you is what is in your audit. I mean, you don't calculate fund balance every month. And if you do, you need to
teach me how because because we we don't do that. You you don't depreciate. You don't close out all your stuff till the end of the year. So, you have what you rolled over. So, how do we recognize if we have any hiccups along the way? Because if we only do it once a year,
how do you know when that 600,000 gap that we just filled? How do we know? Because we want to fix that right away. We just corrected it this year. I know, but what I'm saying is we had to wait 24 months before we could even do it. I don't want to wait 12 months. We want to do it more timely than that to
change our course of expenses. You realize I didn't know those numbers because I walked in and your books were Yes, I understand. Please don't say I just want us to figure out how are we going to Yeah. Well, hopefully a part of and again part of separate taking utilities
out of finance was allowing staff time to do those type of things. Again, update the books more more frequently, audit our you know our time, our lead balances, payroll, stuff of that nature uh every year is the reason we done that to free up finance staff for those type
of duties. that 1.75 million transferred out of water into general. Is that where does that number come from? Is that like So last year last year it was the same number and that's how we that's how we
balance the budget. This year what we did again as we tal talked about no longer increasing transfers, we want to reduce them, right? So we put in staff expenses and we put in the expenses line items. We carry forward we brought forward we budgeted the same exact transfers amount
for this year as we did last year. Um so we're not increasing. All we can do move forward is decreasing. So from every year forward we will only we will only put in our transfer line the amount from last year and it'll either go down or it'll stay the same depending on what course of action the council wants to take.
I got the idea yesterday that this getting it down to either zero or 10% transfers was out the window for two years. Did I misunderstand? No. So the the first year I think what Mr. Be was getting at the first year of cuts that were identified as part of the
exercise. We had to do that to cure the carry forward deficit. So we put this budget together and we put in the same transfer from last year. We were $600,000 short. Right. We had we had 600,000 more expenses than we had revenue. So we had to cut the budget
down 600,000 to get even. And then anything beyond that we took and I reduced natural gas by 15,000 and we reduced sewer by 81,000. Good. Thank you. Yeah, if we could go back for a second under the operating expenses of Jacob's
contract 456993 and then on down the line there there's Jacob's operating 75,000 if you touched on that. I I missed that. What what why do we have an additional 75,000? So this uh
so we have set up prior to last year and we still have it now. Prior last year, uh, Jacobs was given in our in our budget staff set aside a number in which Jacobs would every month if they had a a pump, we're on the water, so I'm going to say wells. If the well went out or
electrical breaker blew or something happened and they needed to do repair or maintenance or of the like, um, they would just spend that and at the end of the fiscal year, they would send us a bill, right? That's okay. It's good for them, bad for us because we don't know how much they spent. And if they spent more
than we budgeted, we have a problem. So what we did last year and what you we did this year is we changed that structure to say okay we have put into the budget for both water and sewer an amount of money in which Jacob is we are giving Jacobs to operate our systems for R&M and the like. We now have it set to
where they can spend a certain amount per month within a certain amount and if they go over they had to get approval from me to do so. that allowed us to control how much money they were spending and we knew we were going to be at the end of the year and so and they we no longer get a bill in the year. We get a bill monthly as part of our
monthly in our monthly fee. They will now they have a separate one now that has it a number. It may be five, it may be 10, it may be 20, whatever it was they had to spend that month to operate systems. We then pay the bill and we charge it to the account every month. But we now have a better way of tracking those expenses. But
that's what the line item is. And it could be less than 75,000. Absolutely. I think order right now I have to go back. I want to think when they did their last buy monthly it was around I don't want to tell you it was it was less than $50,000 for sure. Gotcha. Thank you.
Unrestricted fund balance as of 93024 for the water fund was 3,660 396 and restricted for capital improvements was $2,51,467. Okay, let's see any other questions. And so I
guess two things of note here in the water before we um you will see in line 96 capital replacement reserves. We started this last year uh putting $50,000 a year into a reserve line for capital replacement equipment, vehicles, and the like. And so this year we'll put
another 50 in there. So we're bringing last year's forward um not to spend it, but to increase that reserve that reserve account balance. And so now it would have $100,000 in it. Right below it when we finished the water budget um based off his revenues to the expenses we put in there. Uh there was a surplus
of $347,636. So we are sticking that into a reserve line that will then obviously go toward unrestricted fund balance. Is that unrestricted or restricted? Because if you're The only time it's restricted is if it's
the capacity fees, the impact fees, the Well, it's restricted based on what the council decides. The council would say we're going to use set aside, which I just heard you say we're going to set aside $100,000 for future use. To me, it's in a separate line. That's already
in a separate line. So, right above it at 96, we are putting another 50,000 into a cap replacement reserve. Right. Yep. And then below that, because we had more revenue than expenses, we have a we had a surplus of $347,636.
So unless the council specifically designates that some project, we will put that into a reserve account, which would be the unrestricted fund balance for the water department. So you're just saying that what you're doing is you're taking our 3.6 6 million and you're expecting to
take from this fiscal year a profit of 347 and set it aside for growing our fund balance so that we don't spend it. Correct. Okay. Correct. Any uh any questions on the water fund?
Yeah. Uh help me. What is our debt for? Remind me what the debt is for. Uh, we have to think because that's a half a million of I think you have 2012 that's all water 2012 water and then you have the 2021 I think is
what it was or is it 22? I got it. So what is it that we p or borrowed for several old bonds for registers and for different improvements that they've done over the years like I think maybe even
water towers. There was I know at one point I saw a listing and it was a bunch of old bonds for various improvements that they've done throughout the years that were like 30-year bonds. But 2021 wasn't that long ago. So Todd, you would have been here. What were what
would have been the project that we would have done in 21 and re it was all the prior stuff. So in but we still have a 2012 bond. Is that what I just heard you say? They didn't refinance that one. In last year's budget and in this year budget you will see a debt service
schedule. Uh and it'll show you the general fund debt and it'll show you the enterprise fund debt. Enterprise fund debt. You have what they call SRF number three, SRF number four, SRF number five, SRF number six, DOT1, and then you have a series 2012 and a series 2021.
That is what makes up enterprise fund debt. Well, I'm we're only looking at water. So, I'm just looking at the 575. Do I Are you telling me to go look somewhere else to get my total answer? No, I got it right. I got it right here. Oh, sorry. because I do have whatever fiscal year 25 26
between water and sewer because gas doesn't have debt. Neither does the airport nor does solid waste. U you're looking at a make sure I'm right Daniel right I think I got my answer anyway. It sounds like it's for old old projects that they couldn't afford
and we still have the current thing we have outstanding that will become debt is AC water main design which was $766,000. Half that's a grant. The other $383,000 will be a loan to the water to the water fund. That's SRF as well.
SRF, correct? Yeah, both of those. Okay. So, uh when Kobe, looking at your schedule, this 575 that we're currently paying for, when does that mature? When is it done? We'd have to go and pull them out
individually. They're they're just together. They're combined together because the series 2012 bond, it matures in 2022. 20 what? 2022 and it was $6.4 million. Yeah. The series 2021 bond, it was 8.6
million. It matures in 2046. We need to consider that one more though. Okay. 20 52 and 46. Where where is that schedule that you're looking at? It's in the fiscal year 25 budget.
Go to I have your worksheet right here. What? Nope. Just go to our budget packet from last year. It's it's in there. It's on page is it in the current one you just gave us? No, it's not. It will be. It will be when I complete the total package, but right now it's in the fiscal year 25, which is on page
where did it go? Uh 19. Page 19. Thank you. This I think is this the last year of the FDR? No, it matures 2029. Okay. Any uh any any further questions
on water? Not for me. Let me take a picture of that, Glenn. All right, everyone's good there. We'll move on to sewer and the sewer fund. Again, you see this
weird number uh on line 31 because again all employees there are number of employees that are sh are broken up amongst the funds. We will move down to line 43 professional services.
Um in that line item there are again two things. There is the 280B CI. Um that's another carry forward of $27,500. And then we received from Ankor who will be doing who would be who would be doing our uh sewer master plan if approved uh
for the amount of $227,000. So that is what that line item represents. Uh again on the admin fees the fair share uh proportion the way we broke it out this year uh
that is the fee for sewer and then obviously on line 45 Jacob's contract that is the other half of the $913,000. You will notice that um on line 48 SCADA monthly data that is dropping drastically from 30 to 32 to 2000.
That's because of the new SCADA system that once it comes in gets implemented, we expect that monthly data charge to go almost to nothing. So the Jacob's operating down below at 180,000. Yes, sir. That's that's a lot larger than the
water. You have a lot more because there's a lot more to the sewer system in terms of lift stations, spray field, those type of station. Uh on top of that, that number uh reflects last night you all approved the amendment for number nine that increased their monthly spend from
13,000 to 15. 15,000 times 12 months is $180,000. Okay. Thank you. I got a question Todd had brought up a couple meetings ago about this dump potential revenue
source for dump fees. Is that included in here? Because I'm assuming this is where it would be. And what we um you never brought anything back forward and now's the time if we're going to be I guess we can read. Go ahead. Um we haven't yet. So we had reinstituted our
monthly sewer water sewer meeting. But anyways, the mayor was there. American joins on that and we now have all our engineers, Mr. Wallace, Kyle, Rand, everybody's involved. And so we brought that that idea back to the table on the set receiving station. And so that's something that that group with our
engineers will start to work through over the next few months and see if we can bring a proposal back for fiscal year 27. It I also went back I found that um that old presentation and for me personally
it it's a different calculus slightly different calculus now than what we were looking at back then because it was correct. What was the initial cost? It was I don't know about prior to 21 the
report that Mr. Jernigan with Jacobs sent to us from 21. I think the lowest option of three options. I believe the lowest one was about $750,000. Yeah. Our investment. Yeah. But then they provided a breakdown of potential revenues and I think those revenues range anywhere from about
$150,000 to $200,000 a month bas. Sorry. It was a chunk of change. Uhhuh. Yep. It was a chunk of change, but but e even to this day, I'm told by operators in the area that they would naturalborn wear us out. So the the revenue
estimates that were given even back then, I was told would be on the low end, not not the high end because we're we would be the closest thing within like an hour and a half. So it would save them tremendous time and tremendous miles on their trucks to come
to come offload here. And and so again, my calculus back then was we were looking at an $80 million sewer plant. So to do this and in five or six years have it paid for and then year seven 10, you know, on and on and on, it's then
generating three $400,000 a year. that was rosecolored glasses for me, you know, that was that was my calculus. It's to me it's a little bit of a different situation now because we don't have $750,000 laying around to to drop into it. Yes, I do firmly believe that
it would pay for itself in less than five years, but are are we willing to, you know, front that kind of money right now with everything we have going on? I still think it's a worthwhile investment. I still think we should do it. I think that the numbers will prove
them themselves, but I think that that's that again I' I've kind of changed my calculus on that a little bit. I still think it's a good idea. Yes, we are in that group looking at that um for that that project and where am I going the city? We've talked about a number of different lift stations and
locations now. So, we'll continue to do that. Um again, a part of these master plans, water and sewer is not only looking at our existing system and what condition it's in. is looking at potential growth coming the list Mr. Wallace keeps what we're looking at down the road what we need to prepare for how
we need to upgrade both in the ground and above the ground um and so we hope that that group and those master plans are going to put together a very good picture for the city on what we need to do over the next 10 years or so um in terms of expansion of water and sewer uh revenue opportunities as well. So, we
we're covering all those. We can bring we'll be bringing that back for next fiscal year. All right. Um any any questions on any line item above R&M system, which would be a line 58. Okay.
That 188 for utilities again, spray field, lift stations, all that together is part of what we were just discussing what I asked previous. Yes, those three combined equal 33 338,000. All right. Line 58, R&M system. In that
line, there is staff is going to slip line certain portions. I believe is roughly 2,000 ft per portion of three different sides of sections of pipe within town. That's along Bay Avenue, East Live Oak, and Bruce. Um that is stuff they've came they know to have
have some issues that slip lining would extend the life of those pipes anywhere from 15 to 20 25 years. Um and so those are things and that's stuff that R and I talked about, right? Is some of these things could we wait until we see the master plan to tell us some stuff we need to do? But my conversation was if we know it's a problem, let's just go
ahead and address it. Um, and that's one thing out of the way and it's going to extend the life of those lines. Uh, next we would be doing 16 manhole linings. Uh, those came straight from the INI report that the city did, I believe, two years ago or so. Um, staff's already in
the water department sewer department. Pretty much fixed all the cleanouts that were identified in that report. Uh we did that uh with just staff going through on a monthly basis checking and this would be 16 uh linings of manholes that were identified. Uh and
these manholes specifically are the ones they're doing are in the same vicinity and area of the lines are slip line. So trying to attack all the problems in this one area at one time um as we go through there. Next is replacing the lift station one force man. Now again,
we're going to split that cost between uh impact fees and capac and carry forth from last year. Uh we're going to do that because that line one, it needs to be replaced because it has now uh the capacity is much smaller to the age. We're also going to upgrade it due to due to demand capacity on lift station
one in here is $150,000 to finish getting all the necessary pumps and new panels for lift station. So that it we we going through and doing some math, we believe that will cover all the remaining missing pumps in every lift station the
city operates and also replacing all the bad panels that Jacobs has identified. I I I know you've covered this so please forgive me but can you just kind of recap because you mentioned that some of
the activity that that is in that line item is based on the INI study. So based on that INR study, how much of that study have we addressed and resolved? And then question number two would be should we not be following up with like
basically another INI study to kind of either understand what the new INI is or you know basically kind of expound on that. So the INI study um it its main focus was
cleanouts and manholes that were either cleanouts that were broken u weren't capped that water was coming in or manholes that had bad lids or was having leaks from the side or whatever that looked like. So that was it main focus. I thought it was much broader than that but when it got back that was really the
main focus was cleanouts and manholes. Uh speaking of Randall staff has pretty much fixed all of the identified cleanouts on the report. They did that as we went through on the monthly basis and this is really uh our first attempt and take at the manhole issue. So starting to go through and the manholes
they've identified and working through some of those laying fruit. Now there are going to be a number in there. Uh and this is something that we will be adding to the CIP this year. We want to try to get a number together for a manhole uh rehab program. So we know to go and we know hey based off the NI
you've got $800,000 worth of manhole cost. I'm not saying that's a number. It could be we'll put that in there bust that over a number of years. So if we got to replace five then we go and we replace five. If we got to line it we line it. Um but second part of that on the followup I these master plans we
made it very clear to both anchor and three nights group these plan these are documents we're looking for that are very detailed and are going to serve the city for a long time. And that means what are those plans for what's the next step? When do we do another INI? that seems to be needs to be in a part of our
maintenance and rehab. Um, and again, that's part of we'll get to in a minute of a piece of equipment we're buying because we seen the cost to do a particular thing was so much more than what we could buy the equipment for and do ourselves over a number of years and get the same result. Um, so yeah, that
the master plan we would hope that they would, if not, we will get with them to include that in there. When should the city do another one so we can prepare for that and budget for that? because I think that one was around $199,000 right at that $200,000 mark we did in 2023. Did they did they attach an actual
either percent of flows or you know actual gallons that they are or somehow attributed to? I I will go back and look. I'm pretty positive not because I remember asking our former project manager that exact question and he could not locate in there that they they attributed a
certain percentage to that. They just identified cleanouts are an issue and manholes are an issue. We can go and look, but I'm pretty sure they did not give us a number on what they expected to be uh contributing to our capacity issue. And final question is the INI study was
was part and parcel with the consent order, was it not? Wasn't it tied to the consent order that we needed to do that as that was kind of part of our agreement or am I am I imagining that? I I think they were separate. I'd have to go back and look as part of uh our
negotiations with DP because you know we started out as a long form order, right? Um the we got we gave Deubberry back in I believe 23 a task order to negotiate on city's behalf at which point they got that down to a short form. Okay. Um and then we had do in kind
contribution of roughly $36,000 give or take. Right. And so what we did is we bought air relief valves that we put along the effluent line which was the major contributor to the consent order to begin with. Um, so I I believe they're separate, but that may have been a part of the negotiation that the city was going to do these things.
Yeah. Yeah. Okay. Uh, and then lastly in the uh line item uh small and then uh lift station fences. We're bringing forward from last year funds that we did not get around to putting up some fences around lift stations. Again, part of this program we'll talk about a little further in a
minute uh with the master plan and the piece of equipment is uh looking at lift stations not as just the the actual hole in the ground and pumps that run it, but the basin in which it serves is how we want to start approaching these lift station upgrades and repairs.
And then the line item directly below that R&M machine equipment, there's $100,000 budgeted in there. 80,000 of that is to repair um two spray fill pumps that are currently down. Now we have there's three spray field pumps. One is running, two has been down for an extended period of time prior to just
prior. It's been a it's been a while since have been running. Those 40 thou $40,000 represents when they come pull it, it is repairs. Now, if they pull it and it is a shop pump, we're looking at a different number and we'll have to come back and readress uh readress where
we're at. But that 40,000 is based off of the our estimate to repair each pump, assuming they are in good condition, just need some work because we won't know until the company comes and pulls them out of the pulls them out. So, how how is it that we're this there? You said that there was two
out of four or two out of three? Two out of three. So, how is it that we're able to operate on just one single pump? Is it because we're just under 50% capacity on our on our plant? You both. So, the capacity is under control, but two, you can those pumps are pretty pretty good size. they can run uh and they don't run all day long.
They come on and off, you know, but obviously we need we need one another one to help that one out and then you're going to need a third. Obviously, more helps everyone, but also redundancy. So, if one fails in the middle of a storm or something like that, uh but it's designed for three. It is designed to have three pumps.
Okay. Okay. But that is a concern is we're running one alone and that fails. We're down for a period of time. So, when you're only running one, are you just not not able to use the entire It's almost like zones within my sprinkler system, right? Where
I'm only running zone one versus zone two. So, with two pumps, you can run multiple zones. Is that a basic I'd have to We'd have to ask Kyle on Okay. What it does there? Yeah. Not Not a big deal. Yeah. I'd have to ask, but yes, we currently are operating on one pump and we want to get the other two fixed. And Jacobs maintains that for us.
Correct. Kyle with Jacobs. Correct. All right. Um, going down, let's see here inside of and this is just for note very again related to the INI we're talking
about and line 70 in operating supplies that line uh has a number in there uh trying to pull a number up. I believe it's 75,000 maybe. No less than that of 135 inflow defenders. So what that is if you
go we we take around town if you pull up manhole cover there is now on a certain number of manholes want there's a piece of plastic and that plastic is there to keep water coming trying to stop coming into the manhole and then increasing our i to the plant. So that again that was part of the ini
study and report was to start putting those things in place on manholes. The other thing on the cleanouts is if you go around your clean out, you most likely when you pull it up, some do not. We didn't get them all. Um, but you'll see a plug in there, like a sink plug basically, and that is so water. We try to stick them far
enough down that people who like to drain their yards into our system can't reach the plug and pull it out. But that's in there. We do go around check them if we have issues, but that was part of the INI study. Kind of a quick question on the manholes. Uh, I I wrote myself a note. I can ask this later if you if you want,
but on 331 South, you know, they're paved over smoothly. It will it be our responsibility to cut those out when and if needed to, or will the DOT have the responsibility of cutting those out and making sure they're right level?
I I'll get with Randall. Um I'm going to I'll get Randall just based off our history. They're going to want us to ride to raise them. They won't do they won't pave it and then we come back to it later. We have in the past on other projects. I'll get with him, but most likely we'll have to go and raise the manhole and then they will pave. Um, DOT
has they like to not tell us about some of these projects until they show up and they call it letting I think it's what Rand told me is is a word or something like that. Don't quote me on that, but they've done that on 83. They've done that on some other projects. So, we have specifically budgeted um I think in
these but also in gas funds in the case that DOT does a project and we need to make we need to move a water line or we need to move a sewer line. We had to do that on Highway 83 up there at Sunrise. Yeah, that was not a part of their design, but when they went to doing turn lanes, there sits our water and sewer lines and we had to move them at our cost.
I thought we paid for that. I remember the previous city manager bringing that up that they they were like, "Surprise, we're resurfacing this and you're on the hook for raising these manholes." I remember something like that around 3. I thought I thought it was 331. I do know they had conversations with
him. I've seen back and forth about the manhole raise. That's why I say I would make sure with him, but I'm pretty certain that that would be our responsibility to go and raise. I remember it kind used to be I mean you had to dodge them, you know, and now since it's going to be all all new, it'd be nice if they were
done really well. Yeah. So, and when you say we'll do it, that falls under Randall utilities. Yes, sir. Okay. Thank you. All right. Um again, moving down into grants. Um, effluent line city match.
That is our match to the design. Design was $483,000 for the effluent line. $300,000 from the water management district. That 183 that is represented of both impact fees and capacity fees 60 and 40. The million dollars is the appropriations we received from uh
thanks to Representative Abbott. Um the $250,000 280B force main. That's the other half of that $500,000 grant. And then the contributed capital is the remaining balance of the developer contribution to the city for that project.
Okay. Go. Can I ask you a quick question back up on the sludge disposal that's gone down from Well, two years ago, 94,000 down to 50,000 last year down to 35. Is that the projected savings with this new
fan press? Yes. So this year's sludge removal is much higher than we anticipated because the belt press broke down. Yeah. Months back. But with the new fan press hopefully coming in September is our estimate. We're prepared for it to come in later if that's the case. But September we
should virtually cut out sludge hauling. That number there 35 that represents the cost of the dumpsters that the solids actually go into that we have to pay to have hauled off. Those are $500 a dumpster. Um, currently we're right around four a week if I'm not mistaken what Kyle told me, but we should cut
that down to one a week, maybe two at the most because this machine will get our get our solids much drier. Good deal. Thank you. And that and and the city sells that. We do not. So, we pay someone to haul it off. No, I'm talking about once it gets to
the granulated. So when that machine uh is in there, what it'll do when it when it runs those solids through the machine, it'll separate the water and solids the most possible. There's a certain percentage it comes to. Um it's just a like putty. It looks like play-doh. Um
I have not done it. I've seen Jacob staff reach grab a handful and show me. So I know it looks like Play-Doh. But someone comes, we pat someone come haul it off to wherever they take it to. Okay. the new machine that you're getting that when you gave me the tour the other day and you said this right
here is money we can sell this once it gets we've talked about it Kyle we Kyle and Rand we tal it's something we continue to have to look at um has that been has that machine been ordered or yes so we the council approved that a few months back machine's been ordered but we're waiting to receive it we
expect to receive it in September but we have budgeted that expense in fiscal year 26 indicates that we do not receive it in fiscal year Okay. And your How much is it? What would you It was the machine.
It was $520,840. And we split that cost between impact fees and capacity fees. And what's your estimation on um what it will how much income it'll put into the city a month in terms of save cost or a new revenue
source? A new revenue source. Nothing yet. We have not identified that yet. We don't know our ability to sell that or not. Okay. The cost savings will be substantial. Correct. It would be pay for us. It would be substantial. Spent 1215.
Yep. Because the machine broke down and just quit. Yeah. Um so substantial there. We're looking at working. I spoke with the landfield. We're going to continue to work with Kane landfield. We believe the W County can landfill can take those solids if
they meet a certain percentage. That's the case, then we may have the ability to it must be be much cheaper to get it hauled there or at some point we haul it ourselves. You're talking $35,000 a year. It don't take many years to pay off a truck in a trailer to haul to the landfill once a week.
Thank you. Um down in Capitol Outlay, um just a couple quick notes. building improvement line 92 that $20,000. We're going to take the pole barn in which this fan press is going to sit in and we're going to close it in. We're going to put two rollup doors on it for the solids
dumpster and the machine in case it breaks down. Hopefully it doesn't. But uh the chemicals in which are used to separate solids liquids really needs to be climate controlled and right now it's just open building. So we want to try to close that in, put a commercial grade like window unit or something. It
doesn't need to be, you know, 68 degrees year round, but we do need to try to control the climate a little bit for those chemicals to work better for the system, especially when we're investing half a million dollars. It's definitely worth 20 grand. Um, the big line item, line 93, which is
equipment greater than 5,000. In that line item, uh, are is a couple things. And one, uh, we need I will make a correction, but I'll let you know now. That is a bypass pump, another mobile bypass pump. We currently have one at at the plant. We have roughly 47 lift
stations. So, at this moment, when a storm comes through or we have that one down, we have to rent them. They're roughly $5,000 a month per each one. So, we'd like to buy another one in the case just to have if a listation goes down, emergencies come about. Uh, and that is roughly $91,000.
Um, bypass pump in here is the money in which Pinehurst 2 paid the city to put a bypass pump at that new lift station. So, we carried that forward. We'll have to work on getting that uh getting that equipment. Also in here is that money for the ska system which was $395,000
and then the fan press which was $520,000. Um the number in here that I have that's messed up is a we have a mobile camera. So we currently have a camera that goes and checks the sewer lines. The one we have is very old. It has to get fixed
once a year and it's 8 to10,000 to fix it. Um I put in here 110. The camera is actually 151. That is my mistake in terms of the number. It's not a big deal. I will reduce a capital replacement reserve line and I'll put that in there to buy the camera. The
reason for the camera, like I mentioned a minute ago, we received our task order from uh Ankor for the sewer master plan. It is not having in there any sort of CCTV, meaning going camera lines. It c
it would cost a city $225,000 for someone to go camera 10% of our system 10%. So for us it's well worth the investment to go spend 151 to buy a new camera that we can use whenever for breaks or issues. But the plan to that is like we
said about lift station basins. We want to take that plan and we want to start looking at okay the basin which feeds lift station number one. What all is feeding to that basin? one year we go in, we would camera all the lines in the basin, figure out what our problems are,
note those down the next year. So we do that in fiscal year 27, we camera fiscal year 28, we budget to make those repairs. If we can't do them all, we hit the high notes and we we work through that system. But every year you're doing you're doing the rotation. Fiscal year 28, we move, we camera lifts, we base
number two, you know, we budget to make those repairs in fiscal year 29 and so forth and so on. Um, and so the camera will pay for itself drastically, but you're talking $2.25 million to camera our system citywide. So,
this kind of ties back to something that I I mentioned early on in some of our earlier budget discussions this year. I I really want to see and I know you're going to work on this, but but I do want to reiterate that this is a perfect example of where this to me
is a long-term project that I want to see not include it in the budget and say this is what we plan to do, but it is part of a larger percentage that we want to accomplish and then make sure that that goes from year to year and that we're getting, you
know, quarterly progress reports on. We used the camera, we came out, you know, x number of feet, you know, so that we understand because again, to me, especially everything in our enterprise funds, especially on the the capital outlay side, should tie back to a
project that we then are tracking the progress on. Agree. So we would um part of the master plan through master plan is anchor will assist us in creating that CCTV program like that. That way we can talk, you know, when do we need what areas we need
to do it, when we're going to do it, things like that. Um, and then we are and I I'll send this out in a little bit and I'll send emails later tonight. At our next council meeting, we will look at CIP. We need to do that again annually. I've taken that. We went through and updated it. Um, and to be honest, we removed a lot of things off
there, particularly in water and sewer because they've been on there a long time. And if we're about to spend this money on a plan, um, those things might not be the highest priority, right? We may need to go back and revisit. But then I've not then I've taken I put on a five-year plan. Doesn't mean you pay it all five years. That just means, hey,
the cost is $15 million to make repairs. These five years we're going to do this much and that means there's still 10 million unfunded. Well, from fiscal year 2031 to 2036, we do this amount and then you continue to roll uh that way. So that that's the the thought process
behind what we hopefully intend to do. Okay. Is that what you're talking about? Yes, sir. Remind me how many basins do we have? Oh, shoot. Um, I'd have to I'd have to pull out council. And how many lift stations do we have? Yes. And seven, I think.
47. 47 plus whatever we're taking over for these new developers. Say it again. Sorry, I was talking to him too at the same time. Kobe, how many basins? I'll have to pull up uh the report. I get it back to you. I don't have time
yet because it's not one basin per lift station. Some of them are intermingled. You may have multiple lift stations within one basin. They're just pumping to what you consider that master station within the basin. So like lift station, I think this is three if I'm not mistaken number-wise down in Village Springs that we've been
talking about last months. That basin is technically pretty much all the West End. Yeah, there's more than one lift station on West End, but the basin is lift station three because it's the master one that pushes it across 331 to number one. So I can get those map. We have those maps. Those are provided, those were
created years back by Dubberry. That'll be a part of the master plan. Dan, that um main pump at the sewer treatment center that pumps uh all the way out to the
affluent line to the spray field. If that pump went down, does that log jam the sewage the our sewer system? I would I'll verify. I believe there are two. I don't I believe there's two pumps. I'll double check that. But that was part of our conversations at our
monthly meeting. Well, take that back. We had a kickoff meeting for the effluent line design and that was one of our talks in that was looking not just the line but the systemwide even though that design may not incorporate the pumps which are pushing it and whatever else the spray field may have. Part of
that process and a part of this master plan would be going and making sure that because we're putting in a going from 18inch ephil line to a 22 inch. Does that require bigger pumps? Is that going to require more runtime on those pumps? Is there going to require some sort of new or additional pump at the spray field? So, those are things that we're
working through jointly to make sure we are not putting something in that we can't sustain and that current equipment can actually run properly. I was just wondering if that if that system went down, was there backup? I believe there are two. I verify I'll
verify there are two pumps, but I mean, okay, worst case scenario, they both go down. Yes, we'd stop pumping there because they're big. They're big. It takes a lot to pump. I was I was impressed. There's a lot of pressure behind it. Yeah. So, if what if that pump went down,
would the toilets quit flushing citywide? Well, we would have to bring in emergency generators or emergency pumps to continue to push it. There's definitely ways in which we would bypass them in the ca in that sort of catastrophe or that sort of issue. Um, but we would we would definitely
rent whatever we had to to keep it moving. And you think there's a backup plan in place? We got an extra pump right now? I believe so. I I'll verify with Kyle. I'm pretty positive are two pumps. Okay. Thank you. Okay.
All right. Um, and so that's that's all I have for sewer. there's any other questions about any particular lines. Okay, moving to gas. Um,
again on line 33, you see that drastic reduction in the admin fee. Again, proportional fair share of that admin fee across the funds. Um it really helped out the excuse me helped out a gas fund.
Um line 43 R&M system 130,000 in that line is a carry forward of 60,000 that is to sand blast and repaint our three stations. That's part of that has been a part of last year's um
audit with the gas system. And we actually just finished our other our annual audit last week. Um, Rand's gonna give me a final say, but it went very well and we had no major findings on our gas system. So, that's that's great. Our staff does a great job on that.
Sam Blaston reminded me, I know when we went to do the upgrades on Koi Burgess um, and the and Deubberry went out there to assess it and start the whole process. The comment was made to me that
the maintenance on the the vaults that basically are directly underneath the water tower that then actually go out to distribute the pipes. That a lot of that piping and stuff in there have been severely neglected and that the maintenance on
those pipes which should be sandlasted and painted and preventing corrosion on that it was severely lacking out there. It was act according to the engineer that I was talking to it was shocking. It was neglect. Um do we just like gas is doing sand
blasting of this do we have some sort of maintenance program on the vaults and at our various towers? And I will I'll ask I haven't heard that. I'll find out. We do have annual uh tank inspections. So of of the areas that had tank inspections and then you also have
those same well tanks have fiveyear inspections. They're staggered. Um, so we'd have to go back. We can go back and look. I don't know if it only talks about just the tank or it also covers the whale and the piping. Yeah, it was it was supposedly that all that piping right there underneath is where where the neglect was.
So, well tes. Yes, that's Yeah. Just want to make I just want to make sure that there's a program in place to address that. Okay, we can take it. Okay. Thank you. Okay. Um any any questions on operating before I
move into capital? Okay. Uh line 71 is uh equipment greater than that is a truck the gas for gas division. What else here? Line 73 that is the gas
meter replacement. So that is that cost represents a new um software and hardware system for gas separate from water. We currently have a system that they are the same. Um that has caused some issues with some of our billing and the way we break that out. And so we
budgeted 153601 last year. We did not get around to that for various reasons. So we've carried that amount forward and then added the additional cost to finish it out. And that would um do both the system, the hardware. It will and it will replace residential and commercial meters and it will get them on that real
time data uh and better accuracy for the meter replacement program. Next, we also did the same thing capital reserve. Um we carried we did another 20,000. So we're building that a capital reserve replacement up to $40,000 total for the
gas fund. Pretty much it for gas. So any any questions on gas budget? uh solid waste formerly sanitation. This is uh again prior to this year you all you had in there was the the revenues that came in and out and you
had the waste management expenses uh and the transfers back and forth. This year we talked about we have pulled the cost of the knuckle boom. So employees um insurance, maintenance, operating supplies, fuel, etc. out of the general
fund and we have appropriated that directly to solid waste. So obviously we've seen a reduction in the general fund expenses, an increase in the solid waste expenses, but then you've seen a it wash itself out with a transfer, right? Instead of transferring 1.9
million to the general fund, you transfer 1.6 because the expenses are directly allocated. uh this is just a way for us to track knuckle boom operations and just see what that cost the city. Um and we just felt that was a more appropriate way of going about it. Um and putting the assets back in there
and recreating that division within public works for those employees. And again, as we talked about a little bit yesterday, this is a conversation I had with the knuckle boom uh guys, driver operators numerous times over the year. They provided some good suggestions on what they thought would be good for the
operations of it. save the city some money and again it never hurts the people who are doing the dayto-day if they got some good ideas we try them if they work wonderful if they do not then we go back to what we were doing does gas fall under Anderson now natural gas falls under uh Mr. are
holding under utilities. Okay. Utilities is water, sewer, gas. Public works is parks, grounds, street, storm water, facilities maintenance, fleet maintenance, and solid waste. Okay. And then the cemetery and lights fall
under public works, but their funds not so that's why the difference in solid waste. And again, like we talking about last night, we have factored in the hopeful conclusion grant us that amendment to our interlocal agreement to help us out with cash flow. Um because that will help both us in the county from the county
perspective and really help us from a cash flow perspective. Um again, all the money's there. If if they do not grant us that, then we'll just have to make internal budget amendments. But there's no difference in the money though. So everything's accounted for for the next fiscal year.
Is the gas shop in the yard over by Magnolia or is it up off Walton? Uh the gas keeps their equipment and uh supplies over at the public works yard along park. Yes, water and sewer has all their stuff over on Walton Road.
Okay. Any uh any questions about Solid Waste? Okay. Last night we talked about uh renegotiating that contract, but nobody still wants to do that because we could potentially save a bunch of money.
Renegotiate which contract? The sanitation one. You're talking about the interlocal with the county. Are you talking about when uh when like early 2026 when the contract comes up
for bid? No, Danny, we there's a contract between the city and the county that was made many years ago. I forget what year Clay said. It was in the late 80s. Okay. I was getting Okay. And so back then they came up with this formula in 1980. That's 40ome years
ago. Well, both of us have changed in 40 years. So I think that that needs to be reviewed and looked at. And I mean we're paying them 88 what is it? 880,000. And I think that budget said was the average over the last three
years. This year we budgeted 900,000 to account for increase in sales tax. So So I got I got the papers from CO this afternoon. The papers for what? For for the formula for that you're wanting to renegotiate. Okay. The formula comes from department
revenue. Okay. And it is basically it is basically at the bottom down here what our percentage was of the total 1% sales tax collected. That's our percent that they then
multiply out. So for example, we got 2.989958 and then they back out the cost of the landfill which is averaging out to be about $800,000 a year and then we keep the rest. But that's not from us. That's totality. Correct. And
no, that that's our percentage that in other words, there was $37 million collected inside the city of Definiac. We collected $2.9 million. Then they take that $2.9 million and they back out the $800,000.
Where's And then we're left that we have what's left. It It's It's basically just a simple percentage. There's nothing really to renegotiate. Okay. What What where did that percentage come from? Now you're saying that percentage was the state of Florida's formula. Is that what I just heard you say?
How they distribute our money. It's that's that's in other words, there was there was like when when I do my sales tax every month at the store, I have to understand what it is because I did that little worksheet. Yeah.
15D 1% sales tax. So they know at do how much was collected inside the city. that that piece of paper that you got is is done by county clerk staff. That's their formula. That is not the status. Yes, they use the revenues that
is state of Florida from everybody that collects, but that formula is what I'm talking about. That is the state of Florida uh calculation. So, you're saying that that the 2.9 million that they have listed here is not representative of
May I look at your worksheet? Amen. What I'm saying is the formula that is this formula right here, this 83, this this formula right here. I'm Yes, this might come from the state
of Florida, but this is a county derived formula on how they're going to distribute their but it's by the percentage on that sheet right there because look look at those percentages down there at the bottom. And then if you look at on the sheet in your other
hand, they multiply by those percentages right there. Sure. Yeah. Yeah. And then I don't want to I got it from I don't want to argue about it. I just want to I just I just don't see where there's room to negotiate is all I'm saying. And I don't have the contract language.
We can scan it. Send everyone. We met with agenda. We looked over. I can scan out everyone. Um but I can send it out. What are you going to send out? Those two sheets right there. And the uh can we get the interlocal also sent out? I asked them for a copy
but they haven't got given it to me yet. Yeah, it was attached to the agenda. I asked for uh it was last night. Thank you, sir. Was it all of them from the initial from the very beginning or it was just the current one? It was just the current one. Yeah.
Okay. So, when you said solid waste, I was thinking waste management. Now the waste management contract is coming up in early 2026. Correct. And we pay for that man that contract out of the solid waste fund. Okay. That's what pays for
both commercial which we build directly to that consumer and it pays for residential garbage for that first can which is covered by the sales tax. Okay. So, waste management was under bid, but the county stuck with waste management
because they didn't want to change. They like the way things were going and chose to spend more money because they were comfortable with it. And I think this man this waste management contract has been in uh in place for about 50 years.
Yeah, it was a fiveyear term. Uh, no. I'm talking about how long Waste Management's had the contract with the county. Oh, I Yeah, I don't know. Okay. So, my question I I said all that to ask this. If we get a bid
that's lower than waste management before we go to a lot of trouble and jumping through a lot of hoops, are we going to be in a comfort zone with waste management and want to stick with them if uh even though they're more
or are we going to explore the possibility of getting a better deal? And the thing that concerns me about that, that means we would be the only ones in the county that's dealing with a company other than Waste Management. And anytime there's a new company that
comes in to replace another company, there's a learning curve, which means there's going to be mis pickups and stuff like that. So, would the would the city would the council be willing to uh consider moving from waste management to another
company if we were going to save a significant amount of money? I'm going to do I'm going to do my best. Clay Atinson here. We don't want to get too deep into it because you're going to have to competitively bid this. So, I don't think we need to talk about it too much about what we will or won't do when it comes to the bid because it's going to be an RFP most likely because they're
going to provide to us numbers on fees, cost to collect. And at that point, we will the council determine who is going to evaluate those proposals and provide a recommendation. Whether that'll be staff, whether that'll be another committee created by the council to review and provide or the council themselves will interview and do uh and
select those people, but we will have to do that competitive process and that'll be up to the council. Your decision will be be yours to make at that time. I don't think we need to talk too much about it because you're going to have to competitively bid it and I am aware of more than one person that will bid this bid it. Okay.
Good answer. Good job. Good. Good. I've heard enough over the last three years. Are we good with solid ways? Are we total?
Okay. Um airport. So before we kind of get into into everything, there there's there's one significant uh note to be made in anticipation of the runway project and and any potential uh shutdown of the
runway or reduced a threshold or whatever that may look like to us during that construction period. We went ahead on the conservative side and we removed three months of potential fuel sale revenue in the case that we shut it down for three months. in the case that we shut it down during nights, whatever
that looks like, we wanted to be conservative in that and not overshoot our revenues and that we run ourselves into a problem. So, we we backed out three months of revenue in anticipation of that scenario. Going down through here, um, of note for
the airport, first one I will note out, uh, if you haven't already recognized, line 47, janitorial services. This is a new expense to us. Um because of that building, the size of it, um and what we feel is a certain type of level of
service, we have reached out to at least two. We will have to get a third quote for local people that would come and clean the building um twice per week. Um, and so that number, that $20,000 number represents cleaning services for the full fiscal year of $16,640
and then an additional $3,360 to have the windows cleaned at least annually, potentially by by annually um depending on what we may or may not need. But that is a new expense to the airport we have not had before.
So that's a 12 months. But if we're going to if you're not going to have any customers for 3 months cuz we're going to not you're not going to had those sales or whatever. Do we need to do clean the building? Well, I mean I know we have to clean the
building. That's not what I mean. But yeah. Uh what did you go out for bid for this? I mean what is it that So it'll be below it will be below the We have received two bids so far. We have to get a third one. They are below the $20,000 my $20,000 spending
threshold. Um, so we would have to receive at least one more quote before we can give it to someone. But what is it that they're going to do twice a week? They're going to mop, sweep, dust, take out the trash, all the above and clean the building. All offices, just the generic
bathrooms, offices, everything, the entire building, those glass windows on the conference room. So that's the separate we just that. So to clean the building is $16,640. That's two times per week for 52 weeks a year. We then budgeted another three times a week.
Yes. And then another $3,360 to have the windows cleaned at least once a year. Um to see because we're new to building so we don't know how often they will or won't get dirty. So that number represents.
What about the old the old building? We are currently Andre is has reached out to um a couple uh inspectors, people to come do building inspections. Um, so they're going to come, they're going to inspect the building. Uh, we need to identify if there's any issues with the building need to be addressed. And then
at that point, um, if there's no major issues or we're going to continue to keep the building, we will look to rent the other half of it. There is, uh, an issue with the back awning so that if you go see the building, there's an awning on the back. The there's a corner of it that falls within the object free
zone of runway 927 and the taxiways. So, we're going to have to I believe FAA has kind of conceded and just gonna allow stick a light on the building so we don't have to take the whole cover off. Um, but our goal is to get the inspection done, see what kind of repairs may be necessary for the building and then rent the other half of the building out
similar to we already do with air methods on the one half and that we're going to do with the other office spaces in the new terminal. So, assuming it's it's in the shape that we can lease some of it out, rent it out. What about janitorial services in that building? Is that it'll be the responsibility of the lease?
The lease. Okay. Gotcha. So, how many spaces do we have to rent or what is the charge now? Can people can people now rent the conference room at the airport? Yes. So, when the council updated airport fees that is in there, the ability people to rent it. Uh we treated it very similar in terms of rules to our
current facility rentals. Uh the terms of rates and structure and the ability to wave fees based off the organization. Uh you will see in line, where we at here? Waved fees is what I just heard you say. Is that right? The potential. So, as the mayor and I do
with the community center and the chocolate building, if they meet our code, the multiple sections of the code that allow us to either wave the fee entirely or a percentage of the fee based on the organization, nonprofit, I'm okay with that. But my question is, are you capturing it somewhere so that
we know in a year's time how much money we gave? We have started doing that. Uh Pan does a good job facility. She's began to do that. But yes, we have on the facility side. Put that in your monthly report. We will. I seen a note you had over. Okay, thank you. Um, but for the airport, for the
terminal, you see on line 23, uh, 15,000 of that represents what Air Methods pays us for the h the current half of the terminal they occupy. The additional uh, revenue you see there, we went again very conservative because we've never done this before at the new terminal.
Uh, renting two office spaces at the new terminal for $1,400 a month, which is the fees that the council set. Uh, and doing that for half the year. So, we're very conservative in this first year on these office spaces. We do not want to inflate revenues and come up short. We'd much rather have much rather be short,
come up good. So, we're very conservative office space rental. What kind of uh what kind of tenant are is it that we're looking for for that $1,400? Because if they've got c are they going to have customers or they're coming in? It'll be it'll be it would have to be some sort of aviation related or service
based. It won't be a people coming in and out all the time. We've had that conversation. Obviously, the city reserves the right to release to whoever we please. Um, so people are getting on a list. Andre is working with Christy right now to put together some sort of PSA to let the public know and business owners know that we have office space available. And then we'll go through
that list as they come in. And then sidebar, can I ask a real quick question? Did you close down Baldwin Avenue for today or tomorrow? Today the 26th. They'll begin to they will start they should if I read it right when I talked to them. We should start um we'll close down half the
street tomorrow. Do half do oneway traffic is what they're supposed to do. I believe that's what they're doing. They may have changed it. Uh and then the 28 they'll do the other side and they'll do it one at a time. That way we can keep traffic moving. Okay. But you didn't close down the whole thing to where the whole thing's closed.
I did start to think that y'all were closing the Yeah, I'll I'll double check. We shouldn't be. We should be doing half and half and then one way traffic while we're taking up one side versus the other. All right. Um let's see through here.
Any questions on operating expenses? Yes. Building insurance. So that was a part of seven grand for that. That's a brand new building. Well, was part of the correction. So we uh finally got the uh correct allocated insurance for the rest of the airfield, the hangers, the current existing
terminal and then adding the new terminal is what you see in that figure. So is that include the terminals you're saying? I'm sorry, not the terminal, the hangers. Yes. So they were spread out in various departments being paid but for by other people and not the airport. Okay. So another question. It's a brand
new building but we've got $30,000 for for repair and maintenance on what? R&M building. So that that so these line items in particular um R&M building is for the hangers and for the terminals. So we are responsible in our leases currently except for well all of them at
the moment we're responsible for repair maintenance. We are uh setting up meetings Andre is with hanger tenants especially in the commercial to look at maybe redoing those leases and looking at longterm versus shortterm and the opportunity for those tenants to take over repair maint.
So we're looking at that, but we currently are responsible for the repair and maintenance on hang on every facility of that airfield. And how many does that entail? Roughly 40, you ever think? Well, you got you have five, you have seven commercial hangers
that are individual buildings and then you've got uh three tea hangers, which you know, you have 10 to 15 per tea hanger. So, it's one building, but multiple tea hangers. So, technically, you have 10 10
hanger buildings with 40 slots. And that equates to how many tenants? They're currently full. So, let me just go back. I'll just go my report real quick. I think it's I think it's 42. Currently, we have 43 hangers and they
are all filled. My question is, but if I have six hangers, I'm asking how many tenants does that how many does that for? I believe we only have one, maybe two that have multiple and they only have two. So, we have we have one person who has
two commercial hangers. So, that takes you down to 41 different tenants. And then we have or Yeah. And then I think we have one that has both a T- hanger and a commercial, I believe. So, that would take you down to 40. So, anywhere between 40 and 43 individual tenants. And we have to keep track of that
through uh FAA. We have to keep track of all the airplanes that are that are based at our facility. That's that's how they kind of work on grants and stuff. Okay. On on the utilities, we're paying
oursel again. I know I understand if tenants rent parts of the terminal, their lease will include utilities. Correct. We we try to just keep it simple. Um, that's why the the the fees for the office spaces,
uh, I think there's it's either 1,400 or 1,600 depending on the office space and the size, but we want to keep it simple. That includes everything that comes with the building, water, sewer, uh, internet, you name it. Okay. How about the old terminal? Now, let's say we have a tenant that leases entire building. Is there a way to meter
that out separately? They pay their own. We currently have it in our name. I think air methods, they have a separate. We'll have to find out. But hangers is particularly the commercial hangers. The tenant is responsible for putting the utilities in their name. Okay. Is that them big ones?
The big ones, not the T hangers, but the big ones. And that is both water, sewer, water, and power. Okay. They're responsible for putting that in a name. And if they have internet, which we only have one now because as we ran fiber to the new terminal, we went ahead and put in a box and stub
outs for two box hangers. If they had internet, they would be in their name, too. Good deal. Just out of curiosity, what's the tie down fee? Well, I think we increased that. Um, and how many ti tie down spots do we have? Yeah, I had to ask. I had to find out. I
think the fee I Those are temporary, aren't they? They just stay there for a few days. It depends. They could be daily. They could be monthly. They could be permanent if someone wants to leave it permanent. Rarely in Florida do they leave them permanently because of the sun, but they could. Does the city rent it on a day-to-day basis?
We do. Okay. Well, it sounds like we're not leaving any money on the table. We a lot of things are I caught on to that, Amy. What money are we leaving on the table?
I'm not finding the fees. I don't want it on here. I have to find I have to find I think they're either 50 or $75 a day a month for the tie down a month for the tie downs. Pretty positive. Well, I have to verify. I can't find a second. That's a deal. But I'll find There are a lot of tie down spots. Okay.
Yeah. And where will there be when we start construction? Will there? Uhhuh. I mean, we're going to stop that too, right? Tie downs during during construction. Oh, it's up to the to the person who's hanging them. they want to leave it,
they can depending on their ability to fly in or out would be based upon what you know route we take with the project, but they won't be in jeopardy of any way because they're tied down. The tie downs are on an apron, but you got a runway taxi way and then the apron. So, they're they're off of the runway. If there's ability for any damage, we would
obviously move them or ask ask the individual to leave. All right. Um, let's see. Okay. And then obviously the big thing of the airport is grants. So these are all the grants uh the airport and again like we said you you got you
see you're going from 3.7 million to almost $22 million in grants this year and that is because um all these projects are coming to a head at one time in fiscal year 26. Right? There's a lot of money going to be coming in and out um in fiscal year 26 for these
projects. And so um this is the uh runway expansion and winding. This is the hangers 18 and 1920 development. It is the apron expansion around the new terminal. Um I believe that is that's the three that's the three projects that
this money represents. Are we doing more flight this year in 26? No. No. There's no way we ready. Not even close. It'll be a major embarrassment for us to try it. And I'm okay with that answer, but I
think we got cash in here for that. We do. That's a conversation that um we were going to be having uh next week. I was going to have all y'all individually next week if that's something we want to continue to do or not. Mayor and I have talked about it. Um as we talked from the beginning, it it will not be again. I've never been to them before. I don't
know what happened the prior year 2018. We haven't had one since 2018. That was the first year I I'm not sure what did or didn't go on. So we have an idea of what to do, but that seems not to be the the idea of what it was. Um, but to do a flight show is anywhere is $60,000 north to have
those people come and do such service. Um, and that is Andre calling around and asking the companies that provide those type of events. What? Just that's what he that's what he got. What it cost us in 2018 when we did that one. That's what we're saying. We don't we
weren't here. We don't know. We we look back at We have But we have the information, don't we? We don't get rid of our information. I found very little revenue related to marble flights. Very little revenue or expenses in this system. I hate it. Which if we started it in 2020, then
it's not here. No, my first year here was when it was 2018. We didn't get this. That was one of my first activities. We don't we didn't track the money back then, but as far as the the uh event itself, it was a big deal and very
enjoyable. They had to bust people to the it's on the general ledger and it's on the audited financials somewhere. We will have that conver I was going to have a conversation every individually next week talk about our appetite we want to see we don't want to see because we did approve um the marketing grant
agreement with TDC. So we need to have that conversation make that decision um and then get back with the TDC. So that's something we will be talking about. I I was told at one point when when I was pushing for it to be resurrected postco that Ryan,
who originally started it, supposedly had a very extensive Excel spreadsheet that was step by step everything that was involved. So that that might give us a clue as to what was done and how it was done and all that. So, I don't know
if Jesse could dig back through Ryan's files, the airport director files, but supposedly that's that's what I was told. I never saw it myself, but that's what I was told was that he left a pretty exhaustive Excel spreadsheet that was kind of like a um
you know, like a a bible almost of, you know, here's everything we're doing, here's how it works, blah blah blah blah. It was very well coordinated. They had people riding around with golf carts for uh citizens who had mobility issues, picking them up, taking them. Yeah. And he's agreed to come in and
meet with Kobe and Andre and myself. Um who he's talking about. Ryan. Yeah. Ryan had a really good thing going there. And uh and I just don't want us to embarrass the crap out of ourselves
and might not ever get people back. I agree. You know, I was in that meeting the other day and we we are the more prepared to do that as an maybe that would be a good time to stand up a
aviation committee to help take the lead on that and coordinate. Well, he's going to stay on that. Well, you told me uh earlier that it wasn't a good time. Would that be the good time to have them help on uh start coordinating events out there like Marvel? I don't know. Dan, I got to give it to
you. You're persistent. We have, you know, I don't know. We have to We haven't gotten to the CRA portion yet. How do we get there? I don't think that we have to have a a committee. You know, we'd love for them to volunteer and help us as as a working
group and don't go through all the concerns with sunshine, all that kind of stuff. I agree with that. But if they if they wanted to have us a working group, I'd say come on. Yeah. I I I want to I want to second what the mayor is saying because
you know 2018 and 2017 the mayor can remember there was a there was a big push by the public to have the special events committee and have this accounting because there was there was allegations that the funds were you know weird and funny and all this stuff and
the city the city been over backwards in my opinion the city been over backwards to form a committee put people on there show the accounting of everything and guess what it was a big nothing burger and then we had this committee that we had to deal with and we eventually ended up because nobody could talk to anybody
because of sunshine. Okay. Well, that's not not what we want is the sunshine. That's what I'm saying. It it became a it became a ball of yarn that was just it just became a mess and we finally said, you know what, we're done. We'll call it an aviation working committee. Yeah.
Just don't call it a commun group. Okay. Working group. Yeah, we will like the dog park, make it a task force. Yeah, but but yeah, that's something we we need to do. But even even with them, I don't I think it way too premature to
try to do it this fall. I agree. When we when we open it up, we want it to be a big deal. We don't want to be Absolutely. Absolutely. Now, I I got I got I got to be careful how I say this because I don't want to get anybody in trouble.
Don't worry, I don't. I think we I understand that we're not going to do it, but that doesn't mean that we don't approach the TDC and say as part of our marketing, we want to p purchase these
uh following promotional materials for the Marvel flight, but maybe we don't date them so that we can use them and and will they allow us to still use it because it's been granted to us? I that's something that I think will ultimately be the TDC's decision. But
see, one thing about the TDC, unless they've changed the rules, uh the year split kind of late summer or maybe early fall. And so if you didn't already have that money allocated
prior to the end of that year, I don't know where it ends, then you couldn't use it. So if we were to do Marvel Flight, we would have to qualify with them after October. No, earlier. You apply a year ahead. Yeah.
Yeah. Because Yeah. If you wait till, you know, probably now. It's probably too late. Well, I again I don't want to get people in trouble, but there there's a smart way to say, okay, I understand that
we have things that we can purchase now that are not dated. So, we don't put dates on it. Maybe it just says Marvel Flight sponsored by, you know, TDT blah blah blah blah blah. And we can then use those funds and expend those funds as they were allocated to us, but then we're able to
use them in sub subsequent years. I think the kicker is going to be because we're not having it, will they still allow us to spend those funds to support the event even though we know we're going to have it? I don't know. I'm just throwing it out there. Yeah. I mean, you know, the committee down there better than I do. I mean, we
just deal with about two people. I I don't I don't know how well they'll handle it. I don't even think we should ask if we're not going to do it. Let's just ask when it's ready because I know that Well, we've already got the money. We've already been getting granted approved grant. Is it in a special account
earmarked for Marvel Flight? So you spend it then you get reimbured. Yeah. So the council approved the agreement last night. It is a it's $7,500. We have an offset in revenue. Same with Marble Flight expense line. It's it's an offset. So if we talked about it and we don't want to do it, then it's not no
big deal the budget. We just don't spend the money because we didn't actually receive the money. But the grant that again was on last night's agenda in the consent or did I miss it? In the consent. Consent. um we can reach out to the TDC and ask them the ability to do what
we've talked about um and see what that looks like. Or why didn't somebody speak up last night and say, "Hey, I didn't even pay attention to it. Mayor, mayor, work with me here. I know we're not ready for it in the fall, but what if we try to do a spring Marvel flight and it would still fall within
the year that you have to spend the money?" Yeah. And and I know we, you know, at that point maybe we move it to a spring event. I don't know. I'm just throwing that out there because you have a year to spend the money and so well we were doing it uh we're going to be in this 16month window
here where we've got the place tore up. We got a we got 16 months to get this thing together, right? The the construction, the hump out of the runway, all the improvements. Yeah. Uh I don't think
that would start till after spring. Yeah. you wouldn't see that project start to have construction until sometime in the spring or mid year. Um, so there's time to there's time to plan for something in the spring. We were working around Lakefest and
Christmas reflections. Probably was, was it not? Well, you want it you want it in the early spring or late fall or because of the weather. You don't want to get out. We don't want to get it too close to Lakefest and that's in May. I was thinking March. March. Am I saying right? Yeah. March.
That would be good. Yeah, they were having about the last week or so of March. It's not too hot then. Uh, we need to get a team together and see what we can do. You know, get Ryan up here. Just out of curiosity, what was what was
your concern to not have it? Like when I first asked that question, what like I'm assuming you're thinking right now in the fall not to have it. I was thinking in the fall. Is that just cuz we couldn't pre pre probably October and I don't think we'd be ready. Oh, I got I thought you were talking about our
airport being in a construction zone. Well, it will be uh by this next fall, not this fall, right? Correct. So, we'll probably have to have it in the early spring. I thought Andre had been working on this though for quite some time. I've asked
him about it for several months now. I we've talked about it, but we haven't. We have We put it together. He's put stuff together. We We were going to do it earlier. We pushed back for no reasons and then there was concerns that it would not be the same as it was. Um but there's no one on staff who was here
during that time. The very few people who knew it actually went on. Um we reimagined we reimagined what it was. So, we're okay with pushing it. Trust me, you're not going to hurt my staff's feelings. I can promise you on that. Um so, we can re we can get together. We'll figure it out. blueford in the spring.
Do you remember that uh World War II B7 bomber? They were selling seats on there and giving rides and I wanted so bad to fly. I do too. And I I couldn't afford it. I think it was like $250 a seat and I I opted for the Huey ride. Andre that was pretty cool.
Well, I've been in them a hundred times. So, I actually I actually bought my wife a ticket. What's the other little fast helicopter they had out there? They had a Huey a Vietnam era Huey. Yeah, it was a Cobra. Oh, the Cobra. They weren't selling
seats on that to my knowledge. It was very expensive. It's only a two-seater anyway. A tand the Civil Air Patrol. Andre's coordinated with them. They're willing to uh reduce the cost of ticket per person if we are willing to do some offsets on fuel. So, that's something we
already coordinated. Had a skydiving club out there. Had Star Wars stormtroopers walking around. Y'all remember that? Yeah, I do. It was a big deal. I wanted to ride the biplane, too. Yeah, I opted for the free bus ride from Gene
Hurley parking. School district. Hey, wait. I took that bus ride. Everybody did. There was no parking on the airfield. You had to take the bus ride. Yeah. I thought they did it just for me. All right. Uh, any any further questions
on the airport budget? Okay. Um, I mean, if if you want to review the CRA, we can. That's not technically something we can. Uh, I'm gonna do y'all a favor and just shut up and y'all run through it. Well, we can't change it. So, that that the CRA, the board has set that and
adopted it. And so, that's not something the council can't adjust. So, then are we done? We so we are um couple things to discuss before we get into back into everything. Um couple things that are going open
enrollment. So after tonight if we have another one we can we can talk about that. Insurance open enrollments happening. So there may be a few changes that occur between now and the end of August. So those are some changes that may have to be incorporated in this. Um there is a enrollment like in changes to the cost of what the city
pays to the because the individuals have the whole month of August for open enrollment. So that's something we have to deal with if any employees make changes. So I'm just making you aware that you may see whatever they had and you may see some changes in in that. Um police vehicles uh our number I believe
is 4,000 some change shorter than the the chief. So we got to make that correction uh to the numbers here. uh the property sale that the council approved last night for $100,000. Do we want to budget that in the next fiscal year for something specific? Do we want to wait until uh the property
sale is done and the council can either sign it then or just put it in reserves? If you're going to use it next year, we would assume put in a line item when that that money comes in. But that's something we need to consider that you will if the property is to be sold as you intend to next fiscal year
that $100,000 revenue will be coming in as an unanticipated revenue if we do not budget for it. Now I've got a fundamental difference with uh a few things that I had said last night. You know in the event of one emergency the best practice is we must
have three months of cash flow operating reserve. We don't even meet half of that. Okay. So put that money in the reserve is what you're saying. Well, I don't know. I said I think we just need to talk, put these things on the table, and then say at the end, okay, well, here's what here as a group, I think we need to
decide. But there's a lot of things that I want to point out that are fundamentally to me, you know, some differences on. So, and by the way, I got a call today uh from a business person in town uh about
that property sale, and they're like, "What just happened? Why did you guys not go back out?" They were very disappointed in what h what they what transpired yesterday and um I think we need to look at some of the policies and
how we do things too because that was did they not thrown back out there to the public to rebid or whatever. Uhhuh. So I think we need to So So in terms of of the money, do we want
to stick that into a uh reserve line in the budget and that when those funds become available, we will bring that back to the council and say, "Okay, check's cleared. What would you like to do with the money?" It can go into reserves. You can reallocate it however you wish. But is that what we would like to do? I want to see it to the fund balance and
not to spending. Are you saying reserve? Well, I want to make sure that his natural his reserve means fund balance. I want it committed as a default. We put it we would put it in a reserve line item and the only way that comes out is if the council says we
want to take it out of that and we want to put it to X. So, see I'm or put I'm saying something different than what he's saying. Yeah. Just so we're all clear. I'm saying not put it in the budget. I don't want to budget it to to use it
when we have an emer, you know. So, is that what So, is that what you're saying on by putting it in the reserve, it protects it from? I'm not using the word reserve, Danny. He is. I'm using the word fund balance. I'm saying I don't want to put it in
this budget to where we could spend it if we have an emergency and he needs to spend it. Okay. So, if it's not called reserve, what's it called? Fund balance. Fund balance. We go to FUNDD balance. Yeah. If we don't if we don't put it in the budget and that check clears the
account, I'm going to bring to you an a memo similar as we did with the insurance check and I'm going to tell you these are unanticipated revenues because we knew it but we didn't budget it. So it's unanticipated revenue. Am I tracking Danielle? I I I don't think it's that way. I mean they they voted to sell that property.
They knew it was anticipated. That's my statement. That's Yeah, but it wasn't in our current year budget. So, we we bring a memo forward to say here's the money and you're going to have to direct us where to put the money. Either way, either going to tell us to stick it into reserve for unrestricted fund balance or you're going to tell us to stick it to some
ongoing project or some new project or hold on to it till next year. Let's buy a little more time to think about it. Okay. So, I mean, I'm the new guy on the block, but it sounds like to me to protect the city in the city's best interest in case
of uh an unforeseen emergency is to put it where it's going to be for emergency uses only. A fund balance is that a fund fd balance. If he doesn't bring unanticipated revenues forward, it's going to roll right there and stay protected where it
needs to be. It just won't be we won't be able to spend it until he budgets for it. Is that what you're suggesting? I'm suggesting could we put everything on the table before we make any type of decisions? I don't think we should make them one at a time because there's a lot
that we need to talk about. Okay, this is your So, for example, there's nothing in here for employees. There's nothing in here for employee incentives. and and I want to talk about that and we might say we need to use that for that but let's put all the
issues on the table. Yeah, she raises a good You said pay. Is there an account you can put it in that actually draws interest? We can make some money off of it while it sits somewhere. Let's put all the cash we got in a thing that's going to make us some money.
I'm doing that. Put it somewhere. So, if we won't put everything out on the table, and I'm going to say this, but Kobe might correct me, but like our the first floor of the Hollow Brotherhood desperately needs maintenance. The second floor, the Koopa
area has got some like areas that are coming apart up there. I know we're working on the second floor, but there there's other things that already need to be addressed on Hall of Brother. So, I would I I I don't disagree with it
needs to be and whether you call it fund balance or reserve, I don't disagree. We need to increase our available cash on hand for emergencies. I completely agree with that. But again, if we're going to put it all on the table, we've got some issues at the Hollow Brotherhood that need to be addressed. And the longer we let them go on, the more expensive it's
going to be. You just got How much you got in there? You got 70,000 in one line item for the Shiitaka. You got I added all these things up. There's $466,000 for the second floor. And then there are there is $70,000
allocated to the exterior repairs that came from the well 10 property sale. 40 to strategic plan, 70 y'all allocated to exterior repairs of the building. Why don't y'all wait till we get the money and let us decide then? Not in a 10-minute conversation. And my concern
is we have nothing in here for our employees, but yet we're giving to outside organizations and I want to see us our employees need some kind of incentive. You know, the majority of our budget is our people and the service that we have to that they need to provide to our citizens. So, you know,
we need to consider can we at least give them if we can't afford a recurring cost of living expense. Let's let's talk about let's give them a one-time bonus where we don't have to pay retirement, but to give them nothing, which right now there's nothing in here. We need to talk
about those types of things. What is our priorities? And we're going to have to maybe change some of this stuff or give you direction to include that. I want to see us give something to our employees. So, there will be uh zero pay raises this year.
There's none in that. There's nothing. Okay. And I know why. Public comment coming up. Yes. How soon? We've been here and not paid for two hours. We're getting close to part of public discourse. Well, I don't want to I mean, I don't
Yeah, we've got to talk about this and this is the only time we have. First thing we need to make up our minds on do we make that decision right now or do we make the decision when the check comes in? Sure. We can to be easy enough we can just wait and bring the money forward when it comes.
Oh the 100. I'm sorry. I thought we were talking about we can leave it out and when that when those funds come in this council gets to decide where they go. Yeah. But I don't think you're going to come to consensus this afternoon. Okay. Yeah. We don't have to spend everything that we earn. Yeah.
Yeah. But anyway, let's just let him let him transaction happen and then present it to us. We have plenty of heads up. So, I know Councilman Cosen has a couple things he wants to talk about, but I I have two things that I would like to talk about as well that are budget related.
Okay. But not enterprise funding. Are we ready to go to Dan or what else you got? I have one thing left, but I mean we can wait till the end about city hall repairs. Go ahead. I've got the number on that. I mean, that's something we need to discuss and doesn't have to be found last night, but we So, based off the quotes we received
for, uh, the roof of this building, uh, repair, resealing all the windows, fixing the exterior, uh, and mold remediation, those things come out to be $736,34461. And what's the first thing on your priority in terms of this building? Yeah,
the roof. It's $540,000. Okay. Julie's having to walk around here wearing a mask because she's has has an allergic reaction to mole. And so I was I was hoping that might be on the top of the list, but you can't
fix the mold until you stop the leaking water. Correct. I get it. I I don't see why we would spend 40,000 on fixing the two rooms mold issue and then water. Yeah, I get it. Yeah. So roof and then mold or how does it Have you got a priority war? You got to fix the the leaking which is exterior roof window. Then you can come
in and fix inside. I was going to say if the if the roof's fixed and the windows leak, you're still getting more. Yes. Exactly. So to fix all that is $736,000. Okay. There goes yourund,000. Well, not necessarily. What else? So I'm not saying we got to do we can think about we can go through everyone
else's conversations and circle back, but that is those that's something that is building I mean there's water actively leaking into through the walls to the floors on the south side of the building. Well, what were you thinking about? I mean, did you put any of that in the budget? Annual payment?
I have not yet. I have not put in any sort of debt service or payment. That's something that, you know, we need to talk about if that's what we're going to look at doing it. This 10 or 20 year deal, what does that look like? I mean, if I were to back it out, uh, speaking to our um, financial advisor,
$2 million debt, and again, this was based off of the envelope test. That's why it's so high. Uh, the debt service was $175,000 a year. Now you can third. You do that in the quarters and you and we get down to 750,000 versus 2 million. I had to do the math real quick on the
percentage, but how many years? It was a standard uh 20. 20. Oh, we're borrowing money. We don't have it. We don't have the money to fix the building. Remember,
I'm going tell you that and and I know nobody wants to hear this, but if CRA goes out to bond money and property taxes go away, that's another debt that we've gonna have to pick up and pay for. It's not. Is that going to be Keep that in mind. Is that going to be on November's ballot when we vote?
November next year. Okay. Not this year. Texas and Florida are the two states that are leading the pack and it's going to happen. And then if the CRA has bond bonds and they lose their money because of the
homestead exemption taxes going away then is then the city's responsible for those bonds ultimately. Yes. 2 million75. Clay Clay covered that. cover that extensively and to tell you the truth
per dollar it was clear as mud to me $750 basically they can't retroactive go cut off the CRA if the CRA's got bonds that's the bottom line in other words we'd have to fund them we would be responsible for
we're already committed to funding them and that's been passed sir that's been passed it's probably anywhere we've already bought they're already buying bonds We already passed their budget. We set
their trim. We've given them 95%. Now they have the opportunity to go borrow against it. And that's what they're going to do. And when they do that, then that means we're on the hook for x number of years
beyond what they should be. So, do we want them to repair the fire department or not? But it's not about the fire department. It's about those underground utilities behind your building that you own. Oh, here we go. Go ahead. Go ahead and say it. Go ahead and say I'm a crook and a criminal. I didn't say you were a crook and a criminal.
Guess what? My building doesn't My building doesn't touch the alleyway. My building doesn't touch the alleyway. Well, she's the one that wanted want to call me a crook and a criminal. Those are your words, Todd. Those are Well, you didn't have to say it. It was pretty clear.
City's got liability in that alleyway. Either way we look at this. So, uh, mayor, back to, uh, based off we were given a $750,000 debt service is roughly $65,000 a year. How much? 20 65,000. And that we're going off 20
year. Yeah. Once you amateurize that out interest. Yeah. And this is going to give this building at least that much more life. Go ahead. Well, and if he if if we borrow that 2 million, what is the real number that we
should be borrowing? Because if Shane Abbott goes gets us that building and we need to renovate the fire station, what's the true number that we would need to, you know, that's not the only project probably need to and you know, we were just talking about all
that this debt service that we already have that's from 2012. Is that something we want to look at and try to consolidate all of it to get that to be lower? Have we? We would have to I doubt it. I doubt it because that was they rebonded that back there and interest rates were super low.
Um but we would just get with PFM ask them to do an analysis on our debt and if it's worth reb rebonding or not. I I doubt it because interest rates are much lower now but we would get PFM to ask to do that analysis for us. So your interest on the 201 12 is 2.75.
You can't touch that right now. And I'm sure that's why they left this one hanging when they consolidated all the others. That makes sense. So, what is the new borrowing rate? Like the 21, Danielle, how high is it? 21. 5.5.
I'm thinking it's way up there. And I think they're that high now. So, we can we can continue conversation, but that is that's something we're looking at is building the $750,000 worth of repairs that we need to to do. You may as well go ahead and put that
in. So, if you did if you did a $700,000 bond at 5.5% but you only did a fiveyear term, you're talking an annual payment of 163 and a 10-year term would be 92,000 on that's
on 700,000 at 5 a.5%. So, we don't have to take it all the way out 20 like so to me something like the building repair, let's not drag it all the way out 20 because it's not a whole new building. Let's almost treat it like we did the fire truck and let's do five
years or 10 years and get it paid for because odds are we're going to need to do some other significant repairs to the building in that time frame as well. That fire truck expires this year, right? In 26, correct? So all we're going to be doing and that's a 100,000 a year. What did you
say yours number was? On fiveyear it would be 163 and on 10 year it would be 92. So if we so 92 it would just be a regular swap and we know that we can do that. Yeah. I think we're still on. So I think it's something I believe we
can still continue about because it's something that we don't budget. That's okay. We can make that amendment later. We can make that amendment in the supplement later in the year. But something to think about we can get with PFM and we can look at some numbers uh and bring back to the council. There's anything else you want us to consider in that we can bring that back. We just we
had just gotten the last two quotes on Monday or yesterday. That's why this number is now solidified. We were at almost 1.8 million based off the testing we had in the building. We actually got hard quotes back yesterday, the final two. That's how we come up with the 736.
2.29 was your interest on the 21. That was before it spiked. Got in there good. 2.29. 2.29. I wish we'd have backed the truck up when we had the chance. So that that's not locked in. That's
gone forever. Well, interest rates right now are much higher. Yes. They're talking about cutting them, but it'll be a while before you see those. All right. We ready to go to Dan? Yes, ma'am. Oh, remind me Old City Hall. What is the status of Old City Hall? Is it out for
bid? Well, what we need to do, we need to get it on multiple listing. We've got Right now, it's sitting out there and nobody is seeing it for sale. We've got an interested buyer. We got a bunch of interested buyers. But you got one that's more a lot more
interested than the last one. Are they wanting to get that same bill? Oh, it's just got, you know, I'm just starting to learn why you don't talk about certain things because you don't want the deal to go
away. You don't want the C. You know, I'm just learning that. All right. So, as a I'm not expecting you to tell me what they're I'm just telling you I think that the last deal that we made in my opinion and I'm not trying to
discount you know the opinions of everybody else that we were way low on what we were going to take for that property. I agree. Um but I think we got to get it across the
nation to get the right buyer in here. I think we might have it. I think our minds are working the same. I was about to say before we come up with any kind of a game plan, they can come here and make an offer. Okay. Well,
but you know, I tell you what I've been doing. We need to be careful about that. I tell you what I've been doing and I'm going to stick to it. Talk to Clay about it. Yeah, that's what I did. Well, I'm just telling you if now if we
come up with something, somebody called me. First thing I did was call Clay before it's listed, right? Once it's listed, they're going to have to now's the time probably pay whoever we allow to list it. And of
course, we uh we we've kind of decided we're not going to pay a commission. The only thing I've been asked by those who would list it, would we pay for at least the two signs in the yard and that's it? There's a sign over there, not it needs to be pulled down. That is
Yeah. Who is that? pulled it. I pulled it the other day. You get it? Okay. Who was it and what did it say? It was for someone that was made in it was for sale. It was a former contract. I don't know who that is. But you're saying it was a realtor. I don't want to have that convers. I just
wanted to know what the status was because it will impact what we're doing here. Yeah. It's it's gone now. It's Yeah. Move the sign. The property is currently not a contract. Anyway, we need we need to have this conversation maybe at our next meeting. So, so if we if we sold that property,
if we this building's got to be repaired, no, no question about it. So, if we took out a bond, if we sell the property down the road, we can pay that bond off with that money. There's no anything to prevent us from doing that. No, that prevents you. It's up to the council. There might be a fee associated. I mean,
we'd have to negotiate that when we borrow the money to say there's no pre penalty, you know, there's no penalty for prepayment, but knowing that we are going to sell it eventually, we could sort of, you know, have that in our agreement with the bonding company.
That that is that is correct because we negotiated a lower rate on city hall, the loan for city hall, but we had to accept a prepayment penalty, which is why we we're discouraged from paying off I got city hall right now.
City Hall.9 million. It goes clear out to 2036. Yeah. Before I put any more time in this potential buyer, this is just out of curiosity. Would anybody here have any objections
to a Hooters being there? That was a joke. We got scared now. We will work on something and be bringing that back. I thought we needed a Okay. I thought we needed Are we ready to go today? Yes.
All right. So, this is probably the worst time to bring this up, but I noticed that the um the county uh as their little tip of the hat to the taxpayers lowered
their millage rates by 25 uh 0.25%. And I thought that was something good that they did for the citizens. And I was wondering if the council would consider doing something similar. Can't do it. We can't afford to. We can't do it.
We've already set the rate. Clay Clay made that clear that you once you do it, you can go lower. You just can't go higher. But the trim notices already went out, right? Well, the thing is, Dan, it looks like in a couple years,
we're going to uh the tax revenue is going to be greatly increased. Of course, a lot of us going CRA, but uh and uh that's why the county can lower theirs. My god, property values have gone up up up. Okay. And even though they're,
if I'm not mistaken, they did they talked about it. They they voted on it, but then they found out they couldn't do it. I don't think they did drop it a quarter of a percent, even though they did at first talk about it. Okay. Um so that's one of three things.
The next thing is um I had to spend the morning trying to understand this idea Todd came up yesterday about it being cheaper to rent or lease vehicles.
Uh and since we're talking about saving money, um could you expound on that? I believe it was with the police department. Yeah. So, a few years ago, instead of instead of chunking out I think it was for three
or four vehicles, Chief, we we financed it. Now, granted, that was back when interest rates were super low. Yeah. And so, it it made sense for us to finance those those vehicles and purchase instead of purchasing them
outright. And so, that that's what we did. And so I was just trying to think and I I actually talked to the chief about that today because I kind of in the process the other night bringing that up kind of talked myself out of it because while we could use impact funds maybe to
pay for a couple years at that point you get into year three or four and you don't have those impact funds anymore and you're still stuck with payment. I think we would only finance it for like five years I think is what we did last time. But it it did allow us to get him more vehicles upfront and basically
spread those payments out. And then it was a predictable expense. We knew from year to year, just like the firetruck, we knew it was always going to be that amount and it was just there. So I I don't I think that fell off a couple years ago, didn't it?
The earlier one, but you you financed two Taho 5.78% in fiscal year 24. Yeah. For 118. And those are on our books till 2028. Yeah, that's right. So, is that a is that a good idea?
Some some argue that it's it makes it so that you have predictable expenses. You know, this is exactly what we're going to have to budget and pay for and they get the vehicles and it it becomes a predictable expense. Well, then is that something the council
would like to do? I I would I would certainly I don't want to waste staff's time, but I certainly would want to see what the what the actual price is because obviously that means we don't have to chunk out how much
this year he has budgeted 234,000 for four but again 138,000 of that will be paid out of impact fees. Yeah. So I mean because he actually reduced his capital line item from 117 to 92. So we'll be paying the other the
difference would be the 92,000 that we would pay out of general fund. So pay 92 now or spread it over five years right would is basically what your option is at probably what five five six%.
Mhm. So, I mean, there there's certainly a cost to it, but So, there's no savings. There there's no savings, but it it it allows us to not have to put that capital out front today. In other words, it it's the same
argument with computers, right? where people some companies prefer to just buy all their computers all at once and then every five years they buy all new computers versus you've got like for example school systems love to do it where they lease all the computers and
then they stagger the leases out so every year they know they're going to pay 100 grand for their lease and every year they get a certain number of new new computers and everything just continually swaps out. Okay. So it's it's just a a philosophy. So something that's been
talked about, but it's never been acted on. Is there any money savings? Uh, and I and I've got personal experience with this um on a uh centralized dispatch system.
Have you heard of that? In in what way? Police and fire. I believe fire's already got it. Our fire is currently dispatched by the county sheriff's office. Okay. Chief, are we uh doing the same thing
the fire department is or? No. Is there any cost savings Kobe Danielle? I don't know. Is this something we want to look into? Falls under Marshall C. Marshall's department.
But we approved the budget. Yes. City council approves the budget. I'm lost. Where are you going? What? What are you asking? Okay. Personal experience. I'm a young brand new deputy sheriff in
Leyon County. things are really starting to We got the first sheriff with not just a college education, but he had a master's degree and he worked the streets. He professionalized the department.
And one of the things that he did was um he deputized all the city police officers so that if they got in a pursuit that ended up in a shooting outside of the city limits, they were covered. And he initiated a central dispatch
system where you didn't have all these agencies with different dispatch systems. And they're they had the centralized dispatch system cut down on a lot of dropped calls when
they when they transfer them from one agency to another. Well, that's what we have. We have our own dispatch center and it's Well, we do in the fire department. What I just learned. No, we have it in the police department. Is that true?
And and this fire is dispatched by the sheriff's dispatch team, county dispatch. So, were you dispatching your own or is the county are you on the central dispatch? We dispatch our we dispatch your people
after hours for gas calls, water calls, and all that. But as far as the emergency calls. Yeah. And there's a reason why the current sheriff brought dispatch back to the city. So there there's reasons for that.
Okay. Yeah. It used to be, as you say, under the sheriff's office. All in the sheriff's office. Your current sheriff's the one that brought it back to the police department to the city. Oh. So Mike Atkinson doesn't want to do it. I I have no clue. I've had no
conversations with him about this. I can tell you I don't want to do it because because we've spent the last six years building that up with 911 systems and records management systems and CAD
systems have spent hundreds of thousand dollars in grant money getting it where it is today. And we want to piss it away. We want to go under a radio system that cost you double the amount per radio. We
have no control over there. There's a lot of working parts to it. Um your your whole process will change, okay, by that there's way more to it. It's not as simple as saying, "Oh, well, we're going to y'all dispatch." No, there's warrant
services. There's all kinds of things that people don't think about when it comes to what that function is. Who's going to handle the city's afterhour calls for gas leaks and water leaks and other issues like that? You know, there's who's going to handle the walk-in
for the police department at 2:00 in the morning. You know, how are they going to summons help? So, there there's there's way more to it than just saying, "Oh, let's let's let the sheriff's office dispatch for us."
And there's a reason why the current sheriff brought it back to the city. So I guess now I I'll be willing to go have a conversation with him about taking their dispatch over and we'll dispatch for them. We can handle it.
Might take a couple more employees, but I might be able to do it cheaper than what they can pay for it. I don't know. Okay. Well, I'm out of money saving ideas for today. Well, I think it uh
the chatter has been it's around $450,000 you to support dispatch and are we having another budget meeting? So that let's let's talk about that since that's that's come up. Um with the
new 911 system I think close to 100,000 Josh is that right? That is actually going to be funded through the county at this point where we're not have to pick up maintenance cost and all that on the system itself. I I I don't want to speak to it's somewhere in that I just don't know. So I don't want us to say
it cost us 80 90,000 to move it from one end of the street to the other when we left buildings. So we we've put a lot of infrastructure pipe in the ground if you will to that whole process and to just abandon it would be a
dereliction of citizens funds. Are you are are you and all your deputies deputized? Uh, no. The sheriff doesn't want that because a previous city marshall's employees screwed that up and he don't want to go down that road. No, I I fully understand it. I get it.
But there's a new sheriff in town. No, it's the same sheriff. I'm talking about you. I'm the marshall. Um, we understand that. But that's and I given the scenario that was told to me under the previous administration, I could I could
see where he doesn't feel comfortable. Now, as far as going out and doing certain things, we do have aou in place. Um, as far as translates intoou memorandum of understanding. So if we go out and have to do enforcement action in
the county, we agree to do these certain steps. They agree to do these certain steps. So yeah, we we've got a a basic understanding of how to operate outside of our jurisdiction other than what's allowed by statute. Oh well.
Well, I mean you share these things with us. We don't know. All you got to do is come see me. I'm an open book. Yeah. Communication is key. My office is open anytime to y'all. Amy, go ahead. Amy,
um, Kobe, how much was that tracking a vehicle? Oh, Chief is I'm going to go elsewhere. How much was the How much is in this budget to to track our own vehicles? We currently already pay police already
has it tracking through their I believe smart cop system. That's right. Uh, fire is already done that way. I meant the new stuff that you wanted. Um, $13,234. Oh, 13,000. I was I don't I was thinking it was 100 plus. No.
And travel. Can I ask where are we? There's a You ready once you finish? Yeah. Thank you, Todd. Uh, hold on a minute. I got to go to the spreadsheet because I did it. There's There's $22,400 right now in the current budget for travel. Mhm.
But do we actually spend that much? So we and are we planning on really doing it? Because I think we got to make some decisions. Well, that's where we Yeah. We go every year when we do these numbers. We go back and we look at current year expenses. We also take consideration where staff needs to go for whatever
training whether that be continue CU CUS um or CU continuing education cus um or stuff of that nature. Um and so we go through that on every one of them. So yes, every one of them has a purpose and we we even cut that down even some more this year
because for us we got 10 grand in here. Does how many people how many of us travel? Have we spent that whole 10,000 every year? See what you're at this year. There you go. I'm just trying to identify some ways that we might be able to give a bonus one time bonus. And
does does travel include the senior center? They're traveling separate senior center has its own uh Right. Fuel. I mean that that's fuel for the van. Travel travel line item is for um hotel rooms accommodations, right? And mileage
reimbursements. Mayor, don't you do a lot of uh going to conferences and stuff? I don't do a lot of them, but I do a few. Okay. So, it comes out of the executive executive like if we go to the League of Cities conference. So, right now you've only spent 25 36.96
10,000. That's what I'm showing. And I also this has been an off year. We've never had where just me went. Usually it's two or three. I'm glad you're going. 4202. But anyway, I have another. So this will be a lean year for our
travel 23. You spent on nine. You spent nine in 23 uh committee expenses per city manager. What is that? That is the city beautifification and tree board. Last year that gave them $10,000 to do
last year there was $10,000 budgeted that was a complete expense that in your this year we have 5,000 as an expense and then they have asked to they're going to try to generate donations for the other five or however much more they generate. That 10,000 is 5,000 hard
dollars from the city's general fund and then 5,000 that has a revenue offset that they would have to they have to give donations to have it. Well, let me ask you this. How much would it cost to give all of our employees and I'm only talking the
general fund basically because the other one's going to support itself. How much would it cost to give a onetime bonus with taxes? How much? I already know. Yeah. No, I mean the amount he has to have that. Oh, we're talking about like $1,000
onetime bonus. I think I think he calculated uh of what a grow a net of $1,500 I believe per employee. Yes, sir. Give me just a second. I'll pull it up for everybody. Better than what I was thinking.
So, for the um give me give me a number and I'll that way we'll say $1,000. I think you had calculated for me before 1,500. Yeah, I can do any of them. um do 15.
So the orange represents the cost to the fund. Um Christmas reflections, cemetery, airport, solid waste, water and sewer combined, they would be separated. I just didn't take the time to separate those out. Um natural gas and then the general fund. And so um and this is this
is based off current vacancy positions we're removing and then vacancies that we have within uh police and stuff like that. So, it's it's removing those dollars that people who get hired from here forward wouldn't receive, right? Um, so $1,500. This number represents
the city's taxes. And then if we were to pay the employees taxes on that bonus, so they would receive the net of that amount. If you did $1,500, it would be a $166,000 expense to the general fund and a $29,000 total expense to the city.
What's a 3% colon? 3% colas and the only and just so he's while he's doing that the only reason I didn't think that is because that's recurring and I yeah and it's just going to
multiply the effect would multiply you would be uh this number uh represents almost every there's a couple that wouldn't be in here. So again I haven't updated it completely based off this but it's going to be citywide would be somewhere between 200 and around
$230,000. uh you'd be talking 100 anywhere from 180 to 190,000 to the general fund on a reoccurring liability. I think that's the key. I think we're all on the same track, but the one key thing to consider is a bonus is a
one-time expense, right? So, you can cover that onetime expense with a onetime revenue or you can cover it with a recurring revenue. Raises are a reoccurring liability that we have to account for every year moving forward. So the only way we pay for that is through a reoccurring revenue. But these are individuals who are
contributing to a retirement fund that hope to one day retire with some decent salary and and money coming back. I mean that's one of the only incentives to keep trained, educated personnel that that you want to retain long term. Mhm.
So, that's one of the benefits because you're going to have added cost in retraining employees and and overtime for the time that they're out and when you're have to have other people fill those positions because you have vacancies. I'm for a cola.
How much was it for uh again just for the general fund? because between 166 and 190 is nothing other than the recurring fee and I would then agree with so for the general fund again these some of these numbers need to be reflect some of the changes they have made but you'
be somewhere around anywhere from 100 between 180 to $190,000 that's not enough to the general fund the difference is so tiny other than the recurring part that he's absolutely right I mean you we want to retain 75%
the majority of our budget are people So if we don't want to keep our people, then let's send the message to them. We don't want, you know, they're not important enough for us to do this. But I think it's very important that we do this. Uh and you know, okay, so if we
have to borrow 736, we can't split out that between roof and windows. I think we have to do the whole remediation of the building. I'm I'm thinking we now
have to find 190 for raises and 736 to fix the building. So, does that mean borrowing a million versus borrow money for paying? I wouldn't. Yeah, I don't know. I would borrow money for that. um if we're if we're if we're going to
do one, then if we would need to go back into the budget and we'll need to find that amount and cuts to the budget. I know nobody likes this, but I'm going to tell you that 40,000 to the EDA and and 333
to Main Street. Those are outside organizations. And even if they even if we all agree they do good for the city in totality right there's $100,000 that could go towards this that was for reducing the transfers but
honestly if you look at what we've got to contend with today I don't know that we can cut as much as we could. something and I think that's and that's another that's another key point right that I want to make sure I think we're all on the same page that we're not
bound to do those things the what we talked about the plan we talked about reduce transfers that is something that I feel strongly that is for the financial health of the city I think and I think everyone here does too right but you're not this council isn't bound to do that no one no one the state hasn't bound you to do it yet even
though there are some laws that have been brought forward because of some issues and potential revenue down the road and the ability to transfer certain levels, but we're not bound to do anything we've laid out yet. That's just looking my obligation to all of you on the financial health of the city. Um, so
absolutely, again, we cut we had 696,000 we cut from the budget. 600,000 was to fix the deficit. The other 96,000 went to reducing transfers. 22% 96. I'd have to pull it down. I mean, it
took the gas uh we reduced the gas by 15,000 that went down. That made gas have an even 10% transfer of it, 10% of its its fund and it reduced um sewer by less than a percentage. And the reason we were trying to cut the transfers from
the uh from the uh enterprise funds is to upgrade our infrastructure. Um I'm open to a cola. I will say this. I'm going to be I'm going to be the
Scrooge. Couple years ago when everybody was handing out five and seven percent raises, you know what Todd Beerbomb got personally? Not not to the city, but in in my private sector job, 1.8%. The private sector didn't respond the same way the government did.
So, I'm of the opinion that a 2% cola is appropriate considering this from a financial perspective. It's not just about reducing the transfers. We are facing years upon years of
delayed and deferred maintenance in our infrastructure. So as an example on the water side, we have an contract out for the asbesus water main that is going to be $8 million. That's just one project for one
portion of our of our system. On the wastewater side, on the sewer side, we're looking at an effluent line that is probably going to be close to $10 million that we need to borrow money for 11. Correct. It the price keeps going up. When we originally started talking about
it, it was seven and now it's at 11. And that that drives home my point further. We can't keep Rob and Peter to pay Paul out of out of the emp out of the the utilities for some of this. That doesn't mean I'm not opposed to this year looking at a
transfer that covers a 2% cola. I'm not opposed to that. But here but hear me when I say this is a death by a thousand cuts and we're in this situation because of this very feeling right now over the last six years over the last decade of
hey these are hard decisions and nobody wants to be the one that says we can't do that and then we end up just kicking the can down the road but the way I see it we are coming up to the point where there's no longer a can to kick because we have kicked it to the point that it
is worn down and there's not a can there for us to kick. and and I I am deathly afraid as a city council member of this city that we are going to find ourselves in a situation where we receive a consent order to fix some major part of our system
and then D says if you don't fix this in a certain amount of time frame which means we have to go borrow money they're going to say you're going to have a $10,000 a day fine until you fix it. Well, what does that mean we have to do? That means we have to go talk to PFM
and we have to say we got to borrow this money. And PFM is going to look at us and say either cut out the transfers or you raise your water water rates to the point where everybody's paying $200 for their water bill instead of hundred. That's the reality that we find ourselves in. But
some of it has been deferred maintenance and death by thousand cuts of let's do a little bit here, let's do a little bit here. Oh, you know, I really don't want to give this up here. I get it. I get it. But we we've got we've got to address this in a way that sets us up
for success in the long run. Well, what we cannot do without I get it, but you know, we can't I I've seen it in business myself. Um
the cost of turnover, you know, we're we're not filling positions. you know, it's not a large number of positions, but still the the overload, the overlap, you know, that it causes and the and the extra stressors and the the extra workload that it causes on employees
that adds up over time and it builds resentment and and it causes all kinds of problems that unforeseen on the surface. And you know, we have not been irresponsible. We've been a very responsible council. We have debated. We've discussed these
things. We've looked at all angles. Um, but I value and and I'm not saying no anybody else doesn't value employees. I think we all in fact we have an appreciation employee appreciation Thursday. And so I think it's important that we find a way these infrastructure
lags and expenditures not our fault right and and I'm not casting fault in anybody in the past. It's just it is what it is and it and it it is in front of us, but we cannot do any of it without
employees. So, I I just think we have to we just have to find find a way to do these things. You know, I am I'm I'm 100% confident that our revenue is going to go up despite the CRA and what they get and their 95% all that. I'm confident the CRA is going to begin to
do things that save us from having to expend money. I'm confident that if they take out bonds that they'll repay those bonds because the city's going to continue to grow. And so I'm I'm optimistic that our revenue is going to increase that it just it just makes it
have to do the the the work that's before us. And and um I just I just think there's a super high cost that we might not anticipate if we don't find a way to take care of our employees. Mayor. Yeah.
Did anybody here was anybody here working for the state during the Jeb Bush era? The state workers was he was he in he was in office eight years. Eight years for eight years. State boys didn't get a raise. I didn't get a raise out of the
sheriff's office for three out of the four years I was there. And you know why I didn't leave the why I didn't leave my job? I needed a job. So, I've been on hard times, too, as far as
working for somebody where, you know, I had my lip pooched out for a while, and we we did every year for eight years, but, you know, we got over it. Um, I think this death by a thousand cuts,
and I'm just I'm not going to call names. It doesn't matter. It's done. There's nothing we can do about it now. And I've beat this CRA drum and I'm not going to beat it anymore tonight.
But I've made it clear that I'm a big airport fan. But when that COVID money hit, and I'd like to know how many thou how many millions of dollars that was.
3.2 $3.2 2 million and the and the sole purpose behind that COVID money it was really heavy in infrastructure.
Now the is the airport infrastructure. Yes, but so is our city and that what do you call the COVID money? Uh ARPA ARPA when the when we had
a several million dollars two or three 3.4 it was 3.4 I just looked it up 3.489 3.489 that was our infrastructure money right there that was to that's something that could
have helped that 50y old sewage treatment plant out there. That's something that could have replaced the clay pipes. That's something that could have really helped us out. I think this council, and I'm using and and I'm including myself even though I
wasn't here then, but I think the council has made some poor decisions and we haven't acted in the best interest of the people and shame on us. And since I'm sitting
in this chair, I'm including myself. Well, that was certainly money we weren't expecting. I I can tell you this as I' I've been part of this is my fourth time around. Is that right? Mhm. Yeah. And I know when I came into this
thing and when we went to budget, I can tell you we did no investigations like we're doing now. We did not dig deep for the problems that we have now. Uh the finance director would say, "Well, we
just got this kind of money and uh and we didn't break out money for repairing old infrastructure, old clay pipes and all that stuff. We didn't spend any money on it. Uh and if we didn't get a grant, it didn't get touched.
and we didn't get a whole lot of grant money. Uh I can tell you that u this for the last four to six years there's been a real detail. Uh even though we've made plenty
of mistakes. My god, we made plenty of mistakes, but that's because we're doing things. Some of the older council shouldn't have made any mistakes because they never did anything. Yeah. And I hate to say that about my old buddies, but uh we did not dig in
like we're digging these days. I you know with Kobe presents, man, I've never heard anything like it. Never heard anything close to it. You know, this guy does his homework. I think this whole group here does their homework. You know, they go in, they do
it. I am not accustomed to that. I wouldn't blame it on ARPA. A harpa. We didn't know Harper was ever coming. That That's something that was not on our But when it got here, what did we do? Well, here's what we know. We know that when we throw things in the general
fund, it gets all spent up. The next thing, for example, we we got several hundred,000 back on the oil spill. Uh and uh that was before I became mayor. And I remember about a year after I was
mayor, someone asked the manager says, "Well, did we ever get that money from, you know, it came down through the state and uh yeah, we got uh $600 and something thousand or however much." Well, what did we do with it? Well, we
used it in and the general fund. Nobody could see any evidence whatsoever of that money. And so I was, you know, concerned. Todd's the one that suggested it. I was very concerned about it, but I knew if we threw that in the general
fund, it's going to get spent and two, three, four years down the road, we no sign of it. So, you know, I think this was there there's several ways it could have been spent. I think this probably one of the best ways it could have been spent. and
uh and then all the match monies we got all this kind of stuff there's a lot because of dollars we already got like through ARPA and so uh you can't get that money it's not easy to get that money for all the infrastructure I think we could probably do better and we're
doing uh you know on grants um the last thing I'm going to mention about money is the only thing I really wanted to do since I got on this council is to get a fence at Florence Park, 500 ft of linear
fence just to protect the kids from 11th Street. That's the only thing you not around. I'm talking about spending money. Okay. Spending money. All right. And I'm just going to keep keep that on track till next year.
Kobe, what was the uh the linear option which Commissioner Cos was talking about was roughly $14,000. And then the concept we talked about of closing the I don't even want to talk about closing it in. That's too much money. We are talking about it
and using a row iron fence. Look, it was aluminum. Um that was for both sides. Uh was roughly $24,000 to close it in with two gates. I'm trying to economize and I did use your idea about having a concrete footer for that fence, which I thought was an
excellent idea. But we're sitting here trying to figure out how to save money uh and and lives and lives I would add. Go ahead. Uh back to the airport that is infrastructure and every level of
government that we have in this country contributed to that project out there because it is infrastructure. It is it is job growth. It's it's about farsightedness. It's about investment to increase our revenue in this city.
It is shortsighted to think that we should not be juggling multiple balls while we look forward to growing our revenue. It takes investment to do that. Just like the EDA, that is an investment. Just like Main Street, that
is an investment. It is bringing revenue to this city in ways that we're not seeing immediately today or tomorrow, but we're going to see them down the road. But if we don't start investing in those things at some point, we will never see it. We will never see it. We'll be waiting for things to come here
that we don't want to see come here because it applies to their formula and they can make money here but not necessarily us. We want to create jobs so that money is spent in this community and increases revenue. So that that is infrastructure and there's all kinds of
sources of money. Uh we have a meeting tomorrow uh with Opportunity Florida. There's there's rural infrastructure funds uh grants available. There's a deadline coming up for that. some of that money can be used for different types of infra infrastructure. Again, I
am positive that we are digging in just like you said, mayor, and we will continue to do that. We will try to find ways to fill these gaps. We have to think positively and do the work. Um because it's our work.
So, so three things. Well, I had to, but I want to address the ARPA conversation. When the ARPA dollars came in, there was there was two views on that money and and one view that was
presented was give the employees a bonus and let's do this and let's do that. And then there was let's designate it for the airport. And because we can then show that we have this money designated for the
airport, we can then turn around and do things that then led to that that those designation of those ARPA dollars literally led to the construction of the beautiful airport hanger that we or terminal that we have right now because without those dollars designated to the airport, we would not have been able to
cover the contingency requirement and the terminal would have been dead on arrival. That's number one. So, we turned that money into actual construction dollars that then led to the the beautiful terminal that we have. Number two, we then turned around and
took that same dollar and stretched it again to say we have this money. Let's focus on the north south or I'm sorry, the east west runway and let's let's get these projects done. We would not have been able to receive the support that we
received and the allocations of dollars that we received and the job growth grant fund and the triumph had we not been able to because that was literally part of our narrative. Look at the money that we have set aside. This is how serious we are. And I go back to Senator Gainor's comments. I know he was
very very hard to hear but he said you guys had unity at that time. And he gave the example of the school over in Bonaf where they wanted to squibble and argue over a particular part of the project and it never got done and the money went to a bridge in Tampa.
He threatened it. He I think he said they eventually got their act together and that's right. So we we turned those little bit of ARPA dollars those 3.4 million ARPA dollars into a whole heck of a lot more. At this point, you're talking close to $25 million. And they
contributed to that $25 million total, not just in the actual dollar amount, the 3.4, but in the other funding that we've been able to secure since then. So, we in my opinion, we use those dollars to the max by doing that.
So, I I would like to move on to two things I have. Go ahead. Um, and they're were related to last night and our discussion last night, but they're budget related in my opinion. When when we talked about the fire department last night,
I want to reiterate my desire to see a five and a 10-year plan for the fire department and the police department on what they plan to do for staffing, what they plan to do for facilities, what they plan to do for equipment and apparatuses.
We need to have that. And then that goes hand in hand inand with what we have what we officially voted on last night, which was for Kobe to bring back that that request. I'll leave it at that because I don't want to
stir a bunch of controversy there. But to me, that's the whole picture. It's not just Kobe we go gather this information and bring it back. it is. We need to look at what our fire department, our police department are going to look like and and it's not
complete without a revenue analysis. What what does an MSBU look like? What is a special assessment look like? Because we know sales taxs are off the table based on what Clay told us last night. So the the total picture here is looking at the five and 10ear plan for
apparatuses, building improvements, etc. and then looking at the revenue analysis. What do we need to do with it with with with either an MSBU or whether special assessment or maybe there's even something else out there that's available to us. But that that's what needs to be brought back and I I would
really like to see either a headnot or some sort of consensus from my fellow council members on asking Kobe to bring that back as a holistic approach to to our funding our fire department or police department. I think it's a great idea.
Secondly, right along with that, if we're looking at repairs to that fire department building, because we we took the step last night of asking Representative Abbott to give us that property or to to pursue hopefully getting that property based on my conversations with
architects, we need to go through that building and actually truly look at that building. And I said this last night, I don't want to have us put money into that building and then hear, well, it's not hurricane related or they're having to stay in the truck instead of sleeping in their
sleeping quarters because the building's not hurricane rated. If we're going to do this, it can't just be a wish list of things we think we need. It needs to be based on logic and reason by professionals of professionals coming in
looking at the building envelope, looking at the structure, the girders, all that stuff and saying this is what you got to do to make it hurricane rated. Whether it's hurricane 1, whether it's hurricane five, I don't know whether it's new electrical, whether it's HVAC, all that needs to be looked
at by a professional. And we need to understand that it doesn't just need to be a wish list that gets passed on to the CRA because I don't want to spend either CRA dollars or our dollars here and us go, "Dang, we should have thought of that. We should have done X, Y, and
Z." Whether it's extending the back of the building to fit a ladder truck, whether it's the sleeping quarters over bay one, whatever the case may be, you know, my understanding is we can do all that stuff, but my understanding is the
current frame for those rollup doors wouldn't support even a hurricane one. The chief has said from day one it needs hardening. So, that's a given. I get that. And that that's what I'm after, but I'm after it by a professional.
Well, think your engineering firms would firm. I mean, that would be someone like that that can go in there and give us a top tobottom assessment. And And don't get me wrong, I please please chief chief, I am not discounting what you listed. I I'm I'm embracing what you
listed, but to me, we need to take that and hand that to our engineering firm and say, "These are the issues that our chief has identified. Please go assess this along with anything else you find in that building and let's again let's fix this building because as chief said
last night 20 30 years. I don't want to come back in five or 10 years and all of a sudden oops the building needs X Y and Z. Yeah. If we own that building I don't know why we couldn't go east with the sweeping court. Yeah. You know what I'm saying? Because I mean
we need those bays. Yeah. We need all those bays. Sure. Yeah. Uh we if we and if we end up owning the property go north field and go north. Yeah. We're gonna have to go north to hold a l a ladder truck. So I think we're gonna have to go north
and east. But anyway, if we own the property, that's not going to be a problem. Right. Anyway, u so I I just would like a little bit of consensus from from a fellow council members. Do you support having that done? Some sort of assessment done, hardening assessment
done on on the property? I I'm good with that, but I don't want to discount the CRA's efforts in this and them thinking that we're trying to take on their project with us because they're in conjunction with one another. I think they're that capital. They're that piece
that we can leverage with the capital. I I don't want to speak I don't want to speak for the CRA. Obviously, I can't speak for the CRA, but the the sense that I got was they want to know top to bottom what the issues are. I agree.
Don't just hand them an incomplete list and then be like, "Shucks, we need more." They want to know top to bottom what the issues are. Now, I know we there's probably a special way that we need to approach that so that we don't make ourselves ineligible. I think they can I think they can handle this. I mean, you know, Josh isn't an
idiot. I mean, he's going to get a engineered company to go through the alley and it's going to be eyes dotted and t uh tees crossed and I think we can talk about something else and just hand it off to him.
Um, everybody's got their concerns. You've got your concerns. Uh, your your airport, your CRA, your a lot of things. Uh, everybody's got their their concerns, but you've been to this 50 year old
sewage treatment plant, right? And you have, too. Mhm. It was my first week here. I was out there. And have you been to it? That's a ticking time bomb. You want to know what my nightmare is and where my emphasis
are? From day one, it's been infrastructure. And you talk about kicking the can down the road, that's been kicked down the road for 50 years. So that's why sometimes I show my behind and I get emot I get,
you know, I'm I'm serious about this. Yeah. And I'm passionate about it. And so if we got six people here with different passions and we're trying to balance and it's a struggle. Well, one thing's going to happen. We
know that CRA is already rolling on this fire department upgrade. And so I'm I'm wondering should at the next meeting you guys decide whether or not um this needs to be, you know, covered
by an engineer or or the structural part of it, whatever. That's the CRA's job. I Yeah, but it's our building partial. It's our building. So if we want to make sure they don't go in there and peace meal,
I think maybe we just need to ask Clay what the proper communication channel is to say, hey, don't just work the list, work the whole problem. There you go. Yeah. And we we can find out if that needs to be a brought up as a motion at our next
meeting. So whenever uh the chief and I I had a conversation with Josh about about this, the chief got his list together. We sent that to him. When I spoke to Clay about it, that that was the way he told me to go about it was provide that list to the CRA and then I would work with the executive director
back and forth through the project as needed. Um, he didn't feel that something needed to come before the council to make a request. What about the hardening? That's the question. Well, let's as we go through it, I mean, that's why we'll be involved. Myself and the chief will be involved in the process in the building similar to the
Chicago building and library. Yes, ma'am. Can can I ask the chief something? Chief Hurley, we're gonna do public comment after and the other and one question for Kobe. I had to uh
can you dispatch fire? Good for us. My how hard would that be? So when they're doing the infrastructure of the building and all of these things, can you She opened up the can. Um so my my communications officer are trained in
EMD EFT so they are trained to dispatch for them. Um staffing levels is where your issued would be. Um currently we run one to two dispatchers at any current time but we would need to ensure that there's definitely two dispatchers
in the room. Um right now uh we were down to two dispatchers last night. One of mine had a medical emergency while in dispatch at 2 o'clock this morning. So that's where I was. But um yeah, we we we'd have to get the staffing up. But the problem that we're having is
competing with other agencies that are paying a lot more for that same position. How would that operate for you, Chief? Our system doesn't speak to all other fire departments. Correct. Your system. Um well, so they're they are changing the radio systems as we speak for the
for the sheriff's office. so we could figure out how to make that work. Um, there's a lot that goes into that. Oh, there is. It's not a simple other stuff. It would require more money. Talking about more money. I'm talking about infrastructure because if we're talking about Can we ask the
chief tell you they don't they don't talk currently because you know if we're talking about fire building and structure and architecture I mean this is some this is the time to think about the ground work. Yeah. So, they could uh dispatch, but
it's going to cost a lot of money. It's going to cost a lot of money to do that. We change have to change our CAD system out. Uh I don't know if we have to get networks built uh that communications, right? But, uh we we talked to all of the fire departments. Uh we don't have a police
channel. They just switched over to P25 last night, a new operating system. So, that's what we working under now. And we can talk to our dispatch. We can talk to Aral Liberty in Walton County and uh the benefit would not outweigh the cost. It's going to be it's going to be a lot.
Okay. Not at the moment. Okay. Thank you. It's in my fiveyear plan, but make it aundred year. The office can please refresh my memory. What is it that you have in that budget that's 20 or $30,000 for the community
center in repairs and maintenance? There's uh like 20 or 30,000 the community center there is 27,000 that represents the anticipated revenue minus 10% that we left in a general fund for overtime which you're talking about I think it's building which is the
anticipated revenue less 10% plus the 70,000 that we community center but I'll ask you I mean I'll pull it and it's it's 27,000 mayor mayor did we come to a consensus on cola versus bonus So, do we need do we need to have that
as an agenda item for the next agenda or a workshop? I don't want to do any. So, have we got we got we got to figure it out. Well, let's just stay at I can bring two options. I already know where the money's at. I can bring the
options. Okay. Uh the money's sitting in water reserves. So, we're taking it out of reserves. If you don't want to cut, if if you we can we can reduce the transfer reductions we made. That was $96,000. The And again, I'm going between the two, right? There there's a onetime
expense and there's a recurring expense. The money's there. We can take it out of order reserves. I'm not going to make this I need to make this quick. I did not come to you without one because I thought that was that was my re my recommendation is raises, right? But in reality, this is where we're at. This is the conversations we had and the financial
situation we're in. So, I want to make sure that I think people are going to say, "Wealth manager didn't bring it." I brought it because this is where we sit today. But but I have to tell you, if we do that, we pull that money out of reserves and you and you include raises, the city's transfers go up. So if you ever want to take them back down, the
hurt's going to be even more than it's than it is now. I'm all for it. I'm I just I feel obligated to tell you that if you if you incur additional recurring liability, that's where we're headed. Where where do you think do you think that we could do cuts to make up a
portion or all of the the raise that we're giving at this moment? Uh there are no remaining vacant positions within the general fund except for the police department. And there is a a truck in maintenance that's $36,000. There's a
mower in parks and grounds that's $17,000. That that's low hanging fruit. That's equipment. Um other than that, that's just delayed. That's just delayed. Yeah, you have to have Yes, sir. We have to have mower to cut. Okay. So, what does it look like in terms of reoccurring
terms of expense? We do the raise uh 2% that's 120 to $130,000 to the general fund. How many positions would that be currently existing? It varies across the board anywhere from
anywhere from two to to four. I can tell you I'm totally against reserves. They're they're at critical low points now as as it stands and we cannot afford to to keep taking reserves and eliminating them.
I mean, the the way I hear it is down to zero. We don't even have half. Here's an idea. Um, what? Let's see. There's five of us up here that make $14,000 a year.
Can't change that because of the charter. I'd be glad to forego mine and you're looking at me. I would be glad to forego mine to give it to an employee that made less. So, you could No, I'm not talking about you pointing at me. No, I was going to ask you to do the math. Uh, what does what does it cost
for these six people to sit up here a year? 000 year math. 90 all of them. Yeah. That's over $100,000. You can't change it because the charter is $176,829.
That's not all of it. James, no. Nobody up here sitting at this dice is is worried about where their next meal is coming from. Is there anything if we forfeited our salary for a year, would that help anything? Would that help the employees?
I'm not I don't think any of us are here for the money. Well, again, it's a recurring thing. Are we going to forfeit every year? I don't care. It does get into my diet budget a little bit. Well,
I don't think it's a real smart idea. It's not. You know, again, it's Robin Peter to pay Paul and it's like We've got to have a a regular solution that sustains itself. We can't just keep doing this. I mean, I don't I don't have a way to to
do this, but I I sat here and totaled up all of the the operating expenses versus personnel um and and put it into a chart. There's there's there's not enough operating expenses to cut at this point. We've cut it all down to the bone. And I
know people keep saying, "Oh, you know, cut there's meat on the bone and cut it, cut it, cut it." It's all in it's all in personnel. So, do do we look at, you know, Kobe's exercise and say, "Are there other positions that can
be reduced? We're to the bone, aren't we?" No, his exercise identified 20 20 positions. I didn't realize that. Tell us what is this? Human beings or these empty positions?
No, that's positions. Human beings positions. We cut we cut the vacant this year to plug the hole. I'm just curious what 20 positions did you identify? Missed that in the budget exercise we did back in March or May. May I believe?
Um the we did the budget exercise to get transfers to zero. Uh and in doing that, part of that $2.8 $8 million cut to the general fund included removal of 21 positions across general fund budgets. Which 21 did you identify? Were you just
identified? You let us I let the departments I let the departments identify those things and how they'd operate. I have a list. Uh that's what I'm asking you for. Tell me what that list says, please. I mean Okay.
Uh he's bringing it up. We need to talk about I would rather not give employees a raise than to fire employees. Wait, say that again. I would rather not give employees a raise if it means having to fire employees.
But what are we going to do next year? If we want to reduce transfers, what are we going to do next year? Just email it to me. You know what my answer is? And we've had a pretty good meeting. That's
I think I think the CRA is sucking the life blood out of this city. You know, I'm you know, I feel like that, but you know, I want to I want to keep this nice. I've I've said that and say it about 10 more times before we
leave here tonight. Okay. Council, is there any mayor's public comment, is there any other outside the employee raise, is there any other thing in this budget that needs to be uh discussed or talked about? I say that because I can
put two I can put some options together and we meet individually for the agenda next week. I will talk to everyone individually about it and we can look at scheduling a budget workshop before our next regular meeting on the 8th and then we will finalize because our public hearing is on the 11th. Would would y'all go along with uh no raises and and
and no loss of jobs? I'll say this when it comes to no raises. We did that one year. That was the second year I was elected. We we cut a bunch and we said no raises. The absolute grief that I caught for not
giving raises, even if it was something small, I said I would never not go a year without giving something. Even if it's 1%. Well, I went eight years without I did too. I did, too.
You know, so I get it. And And if you're right about all this paying off next year, it'll be better. Like to think so. So, let's just say he's right.
We won't have this problem next year. He said we're going to be looking pretty good. So, so what are we going to look here? I I don't claim to be an expert. I hope you're right. Well, I hope I am. So, let's try being optimistic instead of critical for a change.
That's what I been doing all meeting. So, well, you know what? You can't do it for very long before it comes out again. So, well, I'm trying. I'm trying. I think I'm trying harder. D I really do. You got anything else while public comment? Yes, sir. Mayor, mayor, mayor, mayor. We
haven't we haven't settled this or we are we going to let him bring some options. Are we Is that what we're going to do? Let him bring back things we're going to have to do. Yeah. All right. I'm open floor public comment. Uh please come state your name
and you got three minutes. Um, it's a horrible dilemma. I'm glad you're there and I'm sitting out here. Um, my name's Henderson. I live in the city. We need to spend just as much time
thinking about increasing revenue sources as we do about cutting. And we've cut to the bone. So maybe we could have some kind of workshop to think about how we could increase revenue sources. How many people come to Lakefest? What if you had a bucket bade
out there and said $5 per day and let people contribute? I don't know how much that'd bring in, but there's some other official things. You brought up the the um although it's Yeah. occupational
licenses, although we said it's a small amount. If we get four or five of those things. Yeah. Thank you. You know, that's a good idea, Mrs. Henderson, because you know what else I'm thinking? Christmas in July. What if we left our lights up all year and did Christmas? You know that a lot
of towns do that. The little tiny towns, mayor, I think this little outburst right here is because we've been sitting here too long and I agree. I'm trying to wrap it up. Anybody else? Let's go. All right. I'm going to close the floor
for public comment and uh we'll call this meeting a journ. It really