I don't know. >> All right. You ready to roll? All right. Good evening everyone. We're going to call this special No, not special. We're going to call this uh public workshop budget workshop to order. >> All right. Up first will be um I guess
got the roll call. Uh we don't have an invitation. We'll just do the pledge and we'll get right into it. >> This Councilwoman Abear, the pledge, please. >> Please stand and join me with your right arm, right hand over your heart. I pledge allegiance 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. >> All right. Thank you for that. With that, we will get into the public workshop and then we'll get into public comments. So, Mr. Boss Man Jones,
>> are we ready? Well, uh, thanks for, um, being here tonight. Uh we'd appreciate the opportunity to share what we're presenting for the FY uh 27 budget. Uh Crystal and I are going to kind of tag team it. I'm going to take the high level and go over the slide
presentations. If you got any depth you would like, she'll be here at my side to answer those questions. So as we lead off um this is our first budget workshop for the year and this is to talk about the operation uh component of our
budget. Uh we will deal with the CPI component at the um July workshop. So thank you for again um so again we're looking at we preserve our heritage and protect our future by
making good decisions today. So we hope that what we do tonight will reflect those good decisions that collectively we can move forward doing good things for the city and doing it in a fiscally responsible manner. So, as we look at the uh first slide in
the deck, um want to uh speak just briefly on what happened in the legislature last week where the uh proposed uh ballot amendment was approved and we'll move to the ballot in November unless something odd happens
like the Supreme Court take a different stance on it, but we don't anticipate that. But uh we've worked hard and Crystal and her team have worked very hard to kind of anticipate what that would mean to the city. So from what we know now, uh we would anticipate uh next
year's uh when the $150,000 homestead exemption goes into effect that it would cost the city about $500,000. um maybe a little more, maybe a little less depending on some uh factors, but we don't think it's going to be uh earthshattering or anything we can't
overcome. Then we would anticipate the following year being about that same amount. So, uh u we hope that as we move forward in this process beginning tonight that we begin understanding the dynamics of what that's going to look
like and that we position ourselves so this time next year we won't be trying to figure out how to dig out of a hole that we'll be in a good posture to move forward. Now, will some things have to change possibly, but we're going to do our best to minimize those. Uh so for
this year the the um estimates that we have received from the property appraisers office is that we can anticipate about a 2% uh increase in the assessed values. Uh so that that's a good number. So we're pleased with that. Uh we will get the actual numbers on
July 1st and we will have those in place when we come back in July for our second budget workshop to deal with the CPI components. Um so this year we are proposing a operating budget that is 4% lower than the 2026 adopted budget. Um
so uh we're we're pleased to do that and present those um a look at that for you tonight. So the um I think we went back up one Antonio. Thank you. Uh this is a bar graph that simply represents the gray is
the current year's budget and the blue is the proposed budget. You can see by the major categories of the culture, recreation, public uh safety, general government, debt service, transportation and physical environment that each of those are a little different. Some are
um a little bit higher, some are a little lower. But all in all, that represents the 4% reduction. And in the next slide we will address um the some of the details uh we'll find there. So in the cultural and recreation component
um there are two FTE FTEES that we ask you to approve at the April 15th meeting and move forward for funding via the TDC bucket of funds that we have. That's due to the expansion of Noriega Point, Noryga Point Park, Tarpon
Park coming on that sooner or later the Crystal Shore at Crystal Beach Park. Then the new Clement Taylor or the renovations at Clement Taylor Park that will take some efforts as well. Um so those actually those are the only two FTEEs that we're asking to be funded in
this year's budget. Um there's some money there, 50,000 for community center and 60,000 for the library. And the rest is to fully fund the social security FRS for the 45% staff of the city staff that works in
the uh culture and recreation department. um from public safety. There was a $300,000 reduction uh because we brought inhouse the collection, the registration collection of the short-term rentals, primarily the
condominiums. Uh but we had budgeted to job that out, but we were able to do it in house. And uh so we were able to recapture that $300,000. Uh then also in that public safety is an increase from the sheriff's office that currently as proposed is a increase of
about $138,000. Um same number of u deputies under a contract. Uh there's some increase for fuel for insurance and FRS contribution. So um so that's reflected there. uh
general government. Uh that's pretty much everything that's not culture, recreation, or public safety. Um the primary increase there is last year we failed to capture all of the social security dollars that it was going to
take to fund it um moving forward. So this year we kind of had to do a true up and that's about $400,000 in that line item. Um debt service is going down as we u uh pay things off. uh in transportation
uh we see a reduction because of the dredging of the harbor was done. The last parking startups were captured and then we had a a fairly uh not a large number but a inflated number for engineering outsourcing uh because we didn't have a city engineer until this
time last year but so we've been able to reduce some of that down from the physical environment. That's the vulnerability study. That's a grant that has been encumbered. So that will come off. Uh human services and I'll have to have Crystal explain this to you why
Paul's and Emerald Coast Wildlife Refuge. So the the dogs and animals is under human services, but that's staying about flat. Um >> state of Florida thing. >> The economic environment is uh reduction in the repair and maintenance costs in
the CRA districts. So then we um the next slide is simply a a bar graph showing the changes in the major operating expense categories which will be personnel personnel taxes and benefits operating expenses and debt
service. Um then slide next slide is a pie chart uh and I'll highlight for you in that particular chart that if you look on the right side personnel is um
30 42% of our total operating B uh costs are in personnel. And if you look around the state and maybe even the nation, you'll find that 50 to 75% is not uncommon and it may be even be the norm. So we're we feel like we're u we do a
good job of keeping those costs at a at a minimum. Um and if we look at the next slide, this kind of captures the um the overall um um
details and the next three slides that uh we will figure out where we're going and look at the overall uh personnel cost and how that breaks out. So if you look at the the next slide, you'll see that we're overall total personnel costs
are increasing 9%. Uh 2% of that 9% is reflected in the two FTEEs, the new FTEEs that were have been approved to be funded out of the TDC bucket of funds. Uh then it also captures a 4% COLA and
merit total increase. Um if you look down you'll see that FICA uh is a considerable um amount due to that trueing up that was portion that we of the social security that we missed last year that we're having to capture again.
The life and health insurance is a small decrease because the actual amount that we experienced last year was actually lower than what we had budgeted. So when we recapture those numbers, we still think we can um um hold the line on
that. Um we're looking at a number of things. In fact, at our um on Monday's meeting, we're going to be asking you to consider allowing us to do an RFP for consulting services and broker services for the
health and life and health component of our insurance. We think there's some opportunities out there that we may not be seeing fully. Uh so we'll talk about that a little bit more at Monday night's meeting on a budget on a agenda item. Uh retirement contribution is up mostly due to we only budgeted three4s of a year
for FRS last year and this year it'll take a full 12 months to fund that. Uh and then the FRS was bumped up about 1 half a percent uh year-over-year. Uh clothing that's that's not new. It's just had to be restated due to the IRS
audit. They didn't like the way we were capturing those funds. So we had to kind of readress it as an individual line item. Workers comp down is due to ensuring that the appropriate classifications of employee employees mostly in the code enforcement uh where
code had been uh coded as first responders which they are not and that's been corrected and that's brought our premiums down. So majority of the personnel increase is due to the true up of social security and the capturing of the full year of Florida retirement system.
So the next slide. So overall the operating expenses are is a decrease of 16% or 1.9 million. Um a lot of that has to do with the last startup uh cost uh being a onetime
expense. The harbor dredging has been completed, the vulnerability study and and to um give kudos to our staff, the doge efforts that we completed in the year where we identified, you know, substantial dollars that we could uh
capture on a recurring basis. Um and again, the code um doing the short-term registrations and collections in house, uh we were able to reduce about $300,000 a year from there. And the next slide is uh you'll find a a
summary and some pages uh in the budget book and the read ahead material that was presented to you where you'll find the fund balance trend summary, the line item comparisons, operating details and some draft CIP plans and then the five-year draft for the repair
replacement and the CIP uh plans. So, so those corresponding page numbers if you want to look a little deeper in that. Next slide. Um this is where our people are by numbers and percentage as you can
see from the um general government public safety the physical environment transportation and culture and recreation. Again that is the number of employees a number of FTEEs and the percentage that it represents to the to the city.
U slide. The next slide shows the two FTEEs that uh we're asking you to add to the coming year's budget. These are the two positions for the waterfront park maintenance and this will be paid out of the TDC uh funds. So the current year
has 125 and a half FTEES and the uh proposed budget has 127 and a half FTEES. So the next steps um we will move forward uh in July we will July one we'll attain the certified values from
the property appraiser uh we'll schedule we have scheduled bud budget workshop number two which will uh deal with capital projects on July the 20th we'll ask you to adopt a tenative miller's rate and September 8 and 21 will be our
uh legislatively required budget hearings um and any um detailed briefings you like. We'll certainly hold that at at your pleasure. Um next slide is or the next u two or three slides talks about the things that we've
completed for the CIP highlights and we'll uh have more about these as we move forward but this year we completed the dredge the harbor channel park the Morgan Sports Center playground the field lighting at Morgans's the batting cages at Morgan partnered with the
Destin little league to artificial turf at the um Dalton threadill park. Um we purchased land to expand the uh parking at Dalton Threadgill. We completed the Matt Maddie Kelly outfall uh project u
and that's in prep for the Joe's Bayou uh park improvements and those park um that DOU is in technical review committee now. So we hope to see that moving forward in short order. Uh we resurfaced the Buck Destin basketball courts uh with new fencing. We pray
repaved 11.6 6 lane miles of roadway um and and progress and continuing in the current year. Uh we have 9.6 more lane miles of road to be uh to be uh resurfaced. The undergrounding and of the overhead utilities is coming to a
close, perhaps quicker than what we heard at the last council meeting, but we'll have you an update on that at the next meeting. Um then the crosscount connector is uh well underway. Uh pickle ball courts should be finished. We have a a walkth through uh
next Tuesday. So hope that'll be done. Tarpon Beach Park uh the substantial completion is this week. Yeah. Okay. So that should be wrapping up soon. Clement Park, as soon as that uh prefab restroom gets here, we'll wrap
that up. Uh community center roof is um getting ready to fire off. We'll have a agenda item for you to consider on that Monday as well. Um then as we move forward into the 2027 um C CPI highlights, uh we're looking at
36 roadways uh to be repaved. Um the Zerby parking lot consolidation and either formalizing perhaps paving at your discretion. Uh shores at Crystal Beach Park. uh replace the boardwalks at the beach access points uh which uh we
ask you to approve in April which we did uh for that funding to come out of the TDC um community center the doors and windows and stucco Morgan sports center the field equipment shed and fencing at Morgans's the buck destin playground and
maybe working with the list and little league to partner on improving the lighting at Dalton threio park so that is the high level view. Uh we certainly know that you probably have questions or want to dive deeper into some of those
components. So I'll let Miss Crystal stand here and address any of those you may have. >> All right. Well, I appreciate that. Thank you for the overview and thank you for all of staff's time and dedication to get this all up and running for us. Are you up first, Council Schmidt?
>> Why not? >> All right. That was beautiful. 12 minute you just went through the whole thing. I don't know why we got to keep going. That was spot on, Larry. Obviously, all the hard work, Crystal, and everybody that put it into it. So,
thank you. The prof the uh physical environment, you mentioned a couple of topics. The FTP vulnerability study that that's the Doge item or is that a separate item? >> Separate.
So, can you go back and and just kind of go through that one more time for me? On one slide, there was a $562,000 difference from 26 to 27 on the PE budget, proposed operating budget. But then the
other side that you mentioned, >> the vulnerability was the 470. I'm just trying to understand how those and then you mentioned the Doge thing. Could you just retouch on that real quick? That'd be fine. >> Uh
>> um >> five shows the summary. Yeah, just the number 562 page. There you go. This page, >> this is by major category of budget. Or we could go back to the uh >> it's just number five. It just shows the $562,000 difference.
And then on slide 10, >> physical environment >> slide 10, you have a bullet that says 470,000 FY26 FD vulnerability study. >> Right. So, >> so do those go hand in hand with does that go hand in hand with each other? >> Physical environment that uh
vulnerability study is considered an operating expense categorized as physical environment. >> So, we did a FTP vulnerability study. >> We're doing it. It's encumbered, >> right? >> It might not be done. There might be an incumbrance that'll roll forward into next year, but right now all the grant
revenue and all the expenses encumbered in 20. >> So that $562,000 number >> is part of 470 is part of >> 470,000 is part of it. Yes. >> Right. >> Physical environment also includes the cemetery and storm water.
>> Right. And then you're saying the dose stuff also helped the PE section >> somewhat across the whole spectrum of the the >> the whole operating >> whole operating budget. You know, we took a look holistically at it and while
we didn't pull any of them out here. Okay. I think we identified, you know, while substantial portion was uh reduction in health insurance premium, it was about $600,000. And then the two FTEES that are being paid by TDC,
can you clarify TDC grant because of something we've applied for or the TDC money that we then are saying threequarters of million dollars every year are going to go to boardwalk and beach operations. >> It's the boardwalk and beach operations.
It's the item that council >> it's not a TDC funded item. It's we are every year we're applying to use our money to pay for these two people. >> Yes. So the there was an April item where we brought to the beach and boardwalk >> request actually there were three
requests on that one. One of them was to increase it so that we could afford two more staff >> and uh vehicles >> right >> so they can pick up trash and things at the new TDC pay >> the TDC% >> right out of our designated bucket. Have
we looked at the TDC funded positions and when they're ending at Leonard Destin and some of these parks? How do we >> Leonard Destin is funded by D? >> D. Yes. But there's a there's a sunset on that though, right? >> There is a it's a 10 years or you get to
a certain dollar level and yes, that's all that's projected into >> Okay. >> Uh the long-term range, >> right? And then my last question for now is the decrease in all the budget numbers from previous year. You're
you're you're talking about the 26 total budget. >> Correct. >> Right. But if we didn't use a lot of that money, we're only highlighting that we're budgeting less this year than we did last year. >> Right. But if we didn't use it all, is
that really a a victory to claim >> or should we be even budgeting even less? Then >> operating wise, we're pretty much par for par. We're about 75% through the year and we we're on target. We've spent about 75% of the operating budget that
was budgeted, >> right? >> Um same with um with the capital projects. um were 75% through the year and encumbered and paid >> it's maybe it's a little bit lower but
it's because there's like a four-prong lake is an example of one really big project it's not fully funded yet we don't have enough design at a recent council meeting we um >> we issued a PO for engineer to to help
push that design forward so we can go out to RFP on that so that's an example of 3 million ion dollar that we haven't spent yet, but that's uh mostly grant funding, >> right? >> So, it's not like it could be switched to something else. >> All right, that's it for now. Thank you so much. >> Sure.
>> One more question kind of following off his that yearly he's talking about. Is that the 12 and a half% that we are kind of cut out of our pie? >> That's correct. >> All right. All right. Councilwoman Abear. >> Thanks, Mayor. I just want to commend you and your team. I've seen the hours and the time that you guys spend trying
to stay so tight on our budget. Um, I know that a lot of your finance team is not here and I'm thankful to see that. So, thank you for all your hard work. Thanks for the staff that have helped you work with what budget you get for each of the departments. And I think it
it's usually you ever get you only get beat up. You never get appreciated. And I really feel like the amount of work you've worked on this year and how you have managed to keep us up here on the day informed on how we should spend it, what we should do. Um, I commend you and
your team and Larry, I commend you for having the department heads you have that are helping us manage our monies and spend what we get properly because our citizens want us to spend wisely. They don't want us to be frugal, but they don't want us to be wasteful. So, thank you. Thank you both. Yeah, I think
to that, just to give an example, I was with Crystal for about an hour and a half today. Um, so shout out to the library when uh I think I saw a line item for a hundred bucks for some kind of kid corner like so I mean down to that scrutiny of detail. It was pretty
impressive watching the you work the Excel spreadsheet. So, uh, any other councilman want to questions, comments? >> Yeah, I've got one. >> Yes, sir. Um, >> I see the operating expenses are down 4%. Property tax, property values
increased 2%. Is that are we looking at at grant money that we don't have this year that's decreased operating budget or >> No, no, we're just trying to >> where where's that money being? >> We're trying to position ourselves for what's coming down the the pike towards us.
>> Once that passes, it goes into effect January 1st, 27. Right. >> Correct. So, November of 2027, those trim notices that you're all paying in November of 2027, that that will be the hit and that those monies will be for the FY28 budget.
>> So, but if it passes, we're not going to feel those effects in 27 with this budget. >> Correct. >> So, my question then would be if the operating budget's down 4%, where was that reallocated to? Are we >> It wasn't. It's we're we're trying to maintain a strong core reserve so that
we can weather those three years reserves with that captured money. Correct. Got it. So, but we're not this is not recommending. >> This is assuming that we're going to adopt the same mill rate we currently have. >> This assumes we're going to adopt the
same mill rate that we currently have 1.615 and the charter cap is 2 mills and we're at 1.6. So, got it. We got to be careful >> if that passes and we keep it. Will this be the 10th year? >> We've been nine years of holding that rate.
>> You're right. Uh we established it in 2016. So what? 2016? This will be going on the 11th year. >> Awesome. Right. Uh C Dustin. >> Yeah. I want to congratulate you guys. You did a pretty good job of holding the budget down. And while there are a few
details that I'll discuss with you privately, I won't waste our time tonight with them. you know, little things like paving parking lots that don't necessarily need to be paved. I would congratulate you on taking your 4% savings. If we could do that for a
number of years and apply it to our debt service, as you can see in our chart, debt service makes up over 20% of our entire budget. So, the more we trim that down, the more money we have to spend. So, you know, overall, I think you you worked hard, did a good job. There a few
little things, but we'll discuss those. >> All right. Anyone else? >> I'm good. >> All right. >> I had my hour. >> Nice. Yeah. Yeah. All the little things. Awesome. Um the only thing I I was talking to them about and it's really in
conceptual form. Uh so this was just me spitballing. Um I think our library is probably one of the most beautiful buildings that we have and so very proud of it. And I know there's always a balance between uh use, wear and tear, and what that looks like on a budget. Um I would love
to see our library be uh more activated in the community, especially off hours for events or just small gatherings or uh even board meetings for different people. So, uh just kind of looking I know we always kind of lean to parks and recreation when we're always talking
about cost recovery. Um so just kind of going department by department. I thought there potentially it would take an ordinance change and I'm sure there's always a good reason for those ordinances being in there. U but I would I'm going to be at least pursuing a little bit on my own research what that may or may not look like some positives
and benefits. Yes. >> I was just going to tell you that the county is losing a ton of money if this goes through. And one of the things they're proposing is to uh eliminate the co-op, meaning they will not be funding additional monies
for our libraries. So, I think we need to keep that in our back pocket. >> That could be up to a couple hundred,000 a year. And some of the services that the co-op has offered in the past is um the courier service, which we've
partnered in 2008, I think, something like that. Um with the school system, and it saved a job, two jobs in the school system and one job for our courier, and it saved the co-op a lot of money. >> Nice. So, anytime you get the
opportunity, fight for the library. >> If you talk to any of our county commissioners, uh it shouldn't be the lowhanging fruit. They provide scholarship monies for people to get uh high school educations as well as jobs
and resources and interviews and everything else that they do aside from our children. Um, and I think it's important that we keep in mind that that is a community lifeline for a lot of people.
>> So, just keep them in mind and if you get the opportunity to talk to a commissioner, tell them we want to keep it. >> Yeah. No, that's a good point. I was going to go into detail with it to scare, but no, it's a reality and that is by far the lion share of the funding in terms of the cost recovery. I mean,
we're at 11% cost recovery now, and I would say almost 90% of that is the co-op budget. So, if that goes, we are literally on our own. >> How how much money is that? >> Is 100,00 is that 80,000? >> 80,000 a year for the uh library. And
they're they they tend to run around a million dollars a year to to run. >> So, we we fund the other 920,000. >> That's correct. >> With property tax. Yeah. >> Yep. >> Please. Yeah, counc.
>> So, yeah, one last thing. A couple years ago, we we talked uh I think a couple years ago about trying to understand where the heads where the people are spending their time when they're working. And I believe we then
implemented a new software or payroll or a time sheet system to be able to then better track those types of things. Um, and so, you know, I don't know what this would look like or if there's ever any
appetite, but I've always felt that the over uh the big parks and recreation um me personally, I feel like could potentially be um and maybe we can do this with this new software, but it encompasses
encompasses so much that uh it would be possibly beneficial to truly understand where people's time and energy and resources are being allocated. Um, where we have people that cut medians, but they also work on a ball field, but they
also work on a beach, but they also work on a boardwalk and and uh so I guess the first question is is are we now to the point where we know where people are, where they're where they're doing jobs, so we know where money is being spent. the the UKG system that we uh that we
started in a couple years ago. it's set up and uh we believe that there's a way to add all of these we'll call it segments so that but um I think Jamie and I need to sit down with the UKG
people to see on a reasonable basis can I get this $20 per an hour person to sign in when they're doing crossing guard duty at the at the Destin uh elementary school sign out and then sign in when they go to the community center
to start some camp. Sign out, sign in when they go to Right. So, >> I know that could be tedious. I >> So, we need to find the the right balance and I would I would, you know, I come from the consulting world where we literally did that, right? But um I
would highly value your input if you have an idea on what what a reasonable so it wouldn't be right. I know I've talked about people micromanaging up here and um >> but uh I don't I try not to I know we've
talked about that before but yes I mean in the government contracting world myself as well right >> I mean you have task orders and subclans and you're you're allocating 10 hours a day maybe to four different projects or whatever right >> it's definitely possible and doable and
I think it would be beneficial for the biggest budget item on our budget to get into that more >> granular >> granular detail to to truly understand the largest piece of our budget, >> right? >> I think it'd be valuable if we could try
to continue to get there. >> We uh we talk about it helpful about uh once every other week or so, don't we, Jamie? >> We're working towards it. >> All right. Anything else? All right. Just let me finish. Uh we
know that it was late last week when you got this wealth of information. So the conversation doesn't have to end here tonight. As you have time to review it as questions come up, don't hesitate to reach out to me and I'll have Crystal
answer those questions for you. Also, just keep in mind this is just laying the base for, you know, the the the rubber really hits the road when we get those uh certified numbers from the property appraiser and the economic uh development research uh organization at
the state level tells us how much they're going to give us in half sales tax next year, how much they're going to give us in municipal revenue sharing and everything. So, at this next meeting in July, that's the real critical one. That's where you see the whole picture. We haven't finished going through with all of our directors. um to uh to nail
down the renewal and replacement program and the the capital projects that you know based on your feedback that we feel are the most urgent. Uh so all of that's going to come in the next one. That's where you're going to see the real hit on the bottom line, the true bottom line hit. And so I think that's where the um
the conversation will be uh most valuable and we'll need your guidance at that point. >> Awesome. >> Thank you. >> All right. With anything else, we might be able to have dinner with our family today. Oh, thank you. Juice. Yeah. All right. If anyone here is from the public, yeah,
we'll make sure >> make sure we fulfill our government obligations. All right. With no public input I'm seeing, we will close the