Financial Advisory Board to to order. First item, we'd like to uh welcome our new member uh Maize Tamsy. Welcome to our collegial group. It's a pleasure having you.
Uh, can we have the roll call? >> Member Kornfeld >> here. >> Member Chavalier >> here. >> Chairperson Greenwald >> here. >> And new member Tamy >> here. >> Thank you.
>> And we also welcome our town manager. >> Good morning everyone. Good morning. Okay. Shall we rise for the pledge of allegiance and possibly see if we can get rid of
the echo? That's >> this way. 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. >> Uh the agenda is in front of everyone. Are there any uh proposed changes to the agenda? If not, can we have a motion to approve the agenda? >> I motion to approve the agenda for the
meeting. >> Second. >> All in favor? >> I. >> Okay. Opposed. Agenda is approved. Anyone for public comment? I see no one in our in our audience today. Should we
move on to approval of the minutes of the March 24th uh meeting? Hopefully everyone has had an opportunity to peruse the uh minutes. There any additions or corrections to the minutes? If not, motion to approve the minutes.
>> I make a motion to approve the minutes of March 4th, 2026 as written. >> Good. Second. >> I'll second. >> All in favor? >> I. >> Okay. Opposed? Excellent. We will so note onward
no unfinished business and we will move on with our new business today which is several financial reports and we will start with the annual comprehensive financial report fiscal year ending September 30 2025.
Uh Susie Matthews. >> Good morning everyone. For the record, Susie Matthews um of the finance department. Um today I will be presenting on two items on the agenda. First being the or annual comprehensive
financial report which covers the period October 1st, 2024 through September 30th, 2025. Um, before I dive into my presentation, I just want to say a big thank you to
our town manager, Marshall Labye, for giving us the leadership and setting the tone at the top to allow the finance department to work with all the other departments to make this um or audit
possible. the process was seamless. Um, and we definitely had a good year. So, thanks Marshall, thanks David, thanks to all the department heads and their team who helped us to compile the data to get
us audited. And so with that, I will dive into our presentation. Back to my Zoom here. Share my screen. Did this earlier and it worked. I'm not sure why it's not
sharing. Um, yes, please. >> I know. I I I did it earlier and Okay, here we go. Okay. So, now that we're over that hump, um again, this report covers a period um
October 1st, 2024 through September 2025. So, why do we need audits? Um well the purpose of government audits are to ensure that we are accountable to
our stakeholders mainly the public. Um we have to demonstrate that the government audits are verifying that we record and report our financial data accurately. The second is that we have
to be in compliance with statutory regulations and our audits ensure that public entities comply with applicable laws and regulation to maintain accountability. The other is to which this is a big one internal control
evaluation. Um so auditors they evaluate the effectiveness of our internal control systems within our local governments. Um there are so many nightmare stories of these cities where there are so many um
inefficiencies or they're not reporting on time or accurately. That's not what we do here at the town. We're in constant audit preparation mode. And so part of our strategy is that we don't wait until the end of the year to have
our schedules ready or do our cleanup. We do it on an ongoing basis. And so it allows us more time to give accurate and timely information. And that also helps our managers, the
commission and department heads to make better decisions as they have accurate and timely information because if you have old data, you don't know what funds you have coming in or what you already have collected or what you need to pay
out. So that's the purpose of an audit in a nutshell. So um let's jump into the financial highlights of our um audit. So our net position is a key indicator of the
government's long-term financial health. Um, it measures the total assets plus deferred outflows of resources versus total liabilities plus deferred inflows of resources. I know that's a mouthful, but it's basically matching what you
your current assets or your the assets that you have, what you have um to pay out or what you are obligated to pay out plus what was earmarked to come in as revenues. And so as of September 30th,
2025, our net position increased by 4.5 million or 152% 15.2% over the previous year. So our net position for all funds as of September 30th was 33.9 million,
which is a signal that the town's finances are in a healthy position. >> Can I interrupt? Of course. How did we do that? >> Well, >> I mean, how did you get uh the increase?
Um is it higher taxes? Uh water the water rate went up. How did we accomplish that? >> Well, overall our um property taxes did increase not or millage rate or millage rate remained the same. However, because
of the increase in property values um or property tax revenues increased. I >> mean I think it's really multifactors. I mean one is that that's certainly a big one because >> water >> but the water fees have gone up
significantly. We had a increase in solid waste collection fees. I mean there's it's a variety of uh >> correct across factors. So in the future we won't need to raise that anymore. >> Well for I >> that's that's the budget discussion later on but our net position our net
position uh is good. Again we did acquire some new assets uh through the year too. Then you got to recapitalize those or depreciate those assets. So if you think of like the police uh went to the take-home vehicle um program so we had to acquire you know vehicles for
them and then infrastructure investment. So when we invest in new pipes, lift stations, all of that new value of that asset gets thrown on the books too and then slowly starts to come back down. So we did some um >> major >> some major capital stuff on the water side. So every time we make a big
investment, you wouldn't think like a motor, but you spend $150,000 on some type of water plant motor, that asset gets booked to and uh those things. And then it starts to change a little bit. >> Thank you. Next, we'll jump into the financial
highlights by fund. And we'll start with the general fund, which is our major fund. So, um, the fund balance ended at $10.3 million, and that was an increase o of 1.96 million over the prior year.
So again, basically what um Chairman Greenwall um just mentioned, it's it's the property tax and increase as well as our investment revenues and all of that
all all together that gave us this positive um um increase. So >> I'll just add to that too, like if you think about it, usually if we can budget within 2%. That meaning expenditures and
revenues matching, we tend to get pretty close, but we spend less than we budget. It's pretty traditional for us. We've squeezed it down a little bit. It used to be a bigger number. And we've just gotten better through our modeling, bringing Suzie on to help with a lot of
our accounting strengths to really uh hone in on these things. So, usually we're about 2 to 3% um of our uh guesstimate 18 months before we close out the book. So, uh we tend to add year-over-year to that. But again, we're
also planning that we we anticipated this when we get to that budget projection and how we use the financial forecast model is that we do have some asset uh some capital projects that are forthcoming that we're holding this money, if you will, in the reserves. And
when we get to executing those projects, that will shrink uh because we have several million dollars of capital projects that are in Q. >> Well, it'll it'll shrink cash, but it won't shrink assets because it's going to be >> it will shrink and again
>> capital project >> our general fund the fund balance in the general fund increase because we haven't spent out what we're planning to spend out just yet. So, >> you have an idea in the future. already been hooked. That's not click it on your
>> You'll see a lot of it this year. We have a lot of We have a We'll talk about during the budget presentation. We have some huge We have some big projects coming up which gets interesting. So I I don't want to I'm foreshadowing our wonderful conversation on budget. Yeah. Yeah, some
of it also in the year to date to um actuals in my next presentation cuz this period covers through September. Correct. >> Agreed. Let's let's see if we can move through this and you know, >> sorry. >> Make sure that we're uh following the
rules and working our way to a clean audit and so on and so forth and then we'll move on to the >> other aspects. So, next we'll move on to the building fund. Uh so the billing fund they ended their
fund balance at 4.36 million and this was an increase of 760,000 over the prior year. Again these increases were driven by permit fees from um
activity within the town as well as through our interlocal agreement with the town of Gfream. So that was a big push for us and that did increase our um uh fund balance. Um our interest income
also helped to boost the fund balance for the building department fund. Next I will move into the water and sore funds. Um the water and sewer their
increases were just over 10.8% 8% or 617,000 and this again was due to the rate adjustment as well as interest income returns. Um the expenses also decreased
which is always a good thing. Um due to there were several projects that were underway that were not yet completed. So including the sewer lining project that was in the development stage as well as so that was one of the
the major items that was included in that. So as far as the assets breakdown um we added $1.2 million of assets overall or 42% over the prior fiscal
year. And this slide gives us a breakdown as far as um the governmental fund as well as a business fund. And so plan remain the same or construction in progress as you
could see for the end of 2025 over the prior year is 266 um,000. So or I'm sorry 2.6 6 million. Um the building and improvements that also
increased over the prior year and um equipment um also increased from the prior year. So overall, which is a good thing, we have increased our assets by 1.2
million. Um and that's a combination of the water sewer and the general funds. Um the next slide, even though it's might be a little tiny, it's just a breakdown of our um debt
um and net position between all funds. So the water fund reduced their debt by 700,000. So we were able to close out one of the loans that we had on our books. And getting rid of debt is always a good thing. Um
as well as for the general fund the um we reduced the debt by 767,000. So we're paying down those the monies that we borrowed to finance the fire department.
So the next slide is our audit opinion and findings. So our auditor >> Sure. Why do we have debt in the general fund when we have a surplus in general? >> So that debt was for the fire station.
That's the only general fund debt we currently hold. All the other debt is related to the water plant water and the sewer infrastructure. Uh but we did have it for the fire station. Uh it's pretty good. We have three and a quarter% fixed over 10. It's a pretty good deal on that
was for helping us a little bit with cash flow management because at the time we had some of the caps in place and we were kind of spending a lot of money getting the fire station and everything in place. So we borrowed a portion what do we borrow like five six million >> 5 million >> 5 million. So we didn't borrow the whole
thing. We spent 3.8 million cash and then we borrowed five to to build the station. >> Okay. >> Okay. So our auditors Nol and Holiner they reviewed our books and they have
concluded that our financial statements are fairly stated in all material respects. So for the all funds across all funds we got a clean audit opinion. Um our findings from the prior year
those were all um cleared and resolved. We had one minor ding and it was due to um our ongoing capital project. So we had some um development fees that were not
capitalized. So the auditors suggested that we shouldn't have expensed those fees. They should have been part of our capital improvement. So we would carry those on our books as an asset until completion of the project where we would capitalize all the cost associated with
that um project. So that was all. So we had a good clean audit. Um again we so we had a timeline where we wanted to complete our audit by April 30th but um we're doing much better than we did last
year. >> Um >> I know Mr. Cornfeld has been on me since the day I started. You know, why is it taking so long for these audits >> and um I I Marshall kept asking where's the audit? Where's the audit? Um it's
coming and it's going to be better this year. So, we made some improvements and um again, we're going to speak to our auditors to see if we can get it um by April 30th. So that gives us enough time to to dive into our budget season
without having to think about the audit. So that concludes that section of my presentation. >> Couple of quick quick comments and uh questions. Number one, good job. Congratulations again.
>> Always nice to see. Um, just out of curiosity, this this quote unquote minor ding that we have on that capitalization, it's the same way we've been doing it for years, but no one's picked up on it before. Is that the idea? >> No. Um, this is >> But we did it differently this time.
>> This is I think it's engineering fees. >> Yes. These >> that are they're going to associate with the capital construction, which we haven't authorized yet. It's kind of odd. We expensed it. >> Susie expensed it, which you would >> I would think you would normally do because it's an engine. we haven't approved the capital project which then
you could do a journal entry to bring it forward and recognize that it's something that needs to be depreciated because if we cancel the capital project it truly is an expense. >> So it's really like a timing thing cuz normally we do roll that into the capital project right because that's what
>> Yeah. Okay. fine got it. And then my last little question was the uh consulting accountants that we have helping us that firm have we used them for a long time or >> uh no there um the whole uh this is their third
>> this is their third audit before that we had Growlin Associates so I think we have about one more year then we have to go back through that uh good review >> because I've been on this committee for uh board for a while now and I remember some years ago So we were talking, we
said, you know, we got the same guys. Maybe it's time for somebody to take a fresh look. But now it's going to be part of our policy that every x number of years you could be >> every five years. >> Yeah, that's fine. Excellent. Happy to see that. Good. >> Good. >> Yeah, >> it's good to It is good to change it so
takes a look at it. >> New set of eyes and you know all that. But >> someday we'll get a quicker auditor. Um but you know at this point at least they're doing their job. >> All right. Good. So, anything that anybody's worried about given this report or we're all good. >> This is our first clean on it.
>> Yeah. No, I think I said congratulations. >> And that minor ding didn't get booked. It was just a communicated piece. So, this is clean. Like nothing. No management problem. Financial, no. >> Wow. Good job. >> Comingling of duties and separation of
duties is all good stuff. Yeah. >> Right. >> Well, we always strive for nothing, >> right? >> That's our goal. >> So, our goal in a finance department is do it right the first time. So, we do try. >> Well, that's what Vince Lombardi said.
He said, "If we strive for perfection, we may achieve excellence >> because you're never perfect no matter what you do." But that's what that's what he said. So I um will dive into the next section
of my presentation. I do not have slides but you do have the detailed report. It was included in your agenda packets. Um and this is going to cover our
current fiscal year and this is from date. This data covers October 1st, 2025 through April 30th of 2026. So this represents our unodudited data of our budget to actual performance for the
first seven months of this fiscal year. So overall, the town remains in a favorable financial position. Results to date are consistent with seasonal revenue collection patterns and project implementation schedules. Most of our
property taxes have been received while several capital projects, infrastructure improvements, and reserve appropriations are expected later in this fiscal year. So, I will begin with the general fund
um since it's our large largest fund. Um the general fund continues to demonstrate strong financial performance through April 30th. The general fund reserves revenues total 16.6 million
representing 86% of the annual budget. Property tax collections remain the primary revenue source and have reached approximately 13.6 million or 96% of budgeted revenues. The general fund expenditures total
approximately 10.3 million. um spending levels are consistent with the portion of the year that has already passed. Um most of the departments remain within the expected levels of personnel and operating costs and we do have some
variable variability with the timing related um capital projects that are ongoing but overall revenues continues to exceed expenditures reflecting a healthy general fund financial position. Um, then I'm going to turn to the
discretionary sales tax funds. Revenues for that fund was approximately 194,000. As you may recall, this revenue source concluded as of December 31st. So, we the county stopped collecting monies for
this revenue source. However, we did receive funding through I think we collected our last receipt through April um April of this year. So um for the upcoming year we will not be receiving any uh monies um for the
discretionary sales tax fund. Um expenditures through April was 78,000. Um the lower expenditure level reflects capital projects that are still in progress that have not yet been completed. However, we have sufficient
resources within the fund that will support these projects as the implementation continues. >> You know what the amount we have left? Is that enough to cover all these funds? >> Yes. >> How much is >> we have? I think one more
>> for the discretionary sales tax. >> Yeah. So, we I think we have most of the discretionary locked up. We got some more money which is good. We're waiting on uh the governor to assign assign our appropriation request where we're going to redo the pathways and then put in the embedded crosswalk lighting. So, we have
that appropriation with the state. If that comes in, we'll use those funds because that project cost over that time is probably increased and we kind of package the pathway because uh with A1A being redone, it's probably time to to just resurface our walkway and do the
crosswalk. So, >> funds to do that. >> Yep. with the state dollars to package. >> It's um we're originally we said 300, but it's probably gone up to about 400. >> Yeah. >> Yep. >> Mhm.
>> I ask what kind of place, but >> it'll be asphalt. We're just going to res we're going to resurface it. It's the most cost effective means. I wanted something a little bit more robust. May I don't know about changing the surface type, but there are places where I wanted to raise it, but that with F dot
creates a whole that'll be a three-year project and it'll be $3 million if you get them involved. So, uh, we're just going to keep it where we have an existing rightway maintenance agreement with FOT so we can resurface the pathway at will. There's no problem there. We'll
do some other like tie-in works where you see the FOT contractor did some bad work. We need to fix that. Um, so that's kind of predicating the appropriation request with the legislator is like, "Your contractor didn't do the best of jobs. Throw some money our way so we can
touch up the rightway that was in our pathways that were kind of messed up." >> Mhm. >> So, the next fund that we're going to review is the building fund. Um, their
revenues remain stable. Um the they collected a little over 1.7 million which is 68% of their budget. This reflects continued permit and development activity within the town as well as revenue generated through our
interlocal agreement with the town of Gulfream. Their expenditures were approximately 1.3 million or 42% of budget. Their personnel and operating costs are tracking as anticipated.
Capital projects remain below budget due to the renovating activities including um the building department roof that will be replaced later in this year in here. >> Yes. >> Yeah. >> Last year was a significant piece. Is it
still significant? >> There's still >> Yeah. Yeah, GFream seems to be helping us because we're on a downward trend currently. Um, where the building permits in the town are really lagged behind and we think it's a just a temporary environmental change. Not like
environmental like out there, but just the economics and people just have come to us a slowing of projects. Then last week we got a pickup on another project. So it's very unpredictable. Um, so we're on a downward slide, but GFream's coming
through with some big projects. Um, like when they do a pro, it's big, but they have fewer projects, but they're huge. >> But, but again, we're committed to finishing out those projects. So, these homes could take three years for which we collect no more revenue. We collect the revenue up front to cover the three
years of uh cost and then which will affect this. We have to on June to be compliant with state statute, we got to change our fee structure a bit um to uh accommodate
private providers and to charge inspections on real costs versus some other thing which we weren't doing anyway but um it just a few changes on our fee schedule and if we do recall last year we reduced the permit fees by
12%. Um, I don't know that we'll see that again this year because of the slowing. And if it stays pretty slow right now, we'll probably may have to reach a little bit into reserves, the building fund reserves to patch it out. But I I think we'll be it'll be close,
but it won't be uh like you saw from last year where we added 760,000. This year, I think we're going to be scratch. And then when we do the budget presentation, you'll see that we're pulling up reserves a bit and they're doing some capital projects with the building department over at that
structure. Roof, windows, doors, things that the building department had never paid for. They're going to assume some responsibility for the the structure. So >> happening with the dunes is that uh decreasing the amount of building in the beach and the inter coastal holes in the
dune. >> Uh it's it's hard at dunes. A again kind of it's a it's a fluctuating environment. It's a very dynamic environment through there and we're we've a couple years ago we did a study kind of how to uh capture the stability
of it. So it's it's getting better. I think it's just a natural dynamic environment uh moving through some of the other issues that you'll see just kind of prelude the next meeting if you're excited to show up and come to our commission meeting. Um, >> oh yeah,
>> we're going to We have some issues in the seaw wall ordinance and structures in the construction. You might have read it in the Coastal Star, uh, and I helped Rich as much as possible explain a somewhat complicated issue that we have some concerns over breakaway walls on the dune phase. We have two projects
with that and if he gets enough rise or push on that on a on a storm surge could, you know, obliterate the dune in a point and kind of wash out. So, we're trying to fix that part, which is kind of separate from today, but work on that separately, but that's at the next meeting as well.
>> That is not decreasing the amount of permanent building. >> No, I I I don't I don't see uh if we fix if we don't fix this, yeah, you can't build on the coast anymore. That that's not re that's not realistic. And I think we'll be prone to lawsuits. So, uh we're
we're working to fix that to allow folks to do it in a reasonable fashion. There has to be some. We thought the D, you know, most of the people that own the oceanfront properties would love to put a seaw wall in, but the D is not allowing it. But it would help structural integrity for the size of
structures dune adjacent if they had one, but they're not issuing it. So, we have to come up with some mix in between. Uh because D's, you know, um kind of like the department of Yes. You just have to fill out the paperwork and at times I don't think they're fully
evaluating the site conditions as well as they should. They do a pretty thorough job, but it always seems to get to a yes. And we have a couple that we wish weren't yes, and they would have raised the structure up a bit. So, we got to work through that as much as we can. Um it's hard. The north end of
town's easier. Wider beach, right? uh the Vzone, which is the run-up zone, is is not as far up uh into uh the land areas of the dune. So here south the dune face and right away compress. So
the flexibility is not there. So that's kind of what we're trying to work on how that works. So I will continue with the enterprise fund. Yes. >> So moving on to the water fund. The water fund reported revenues of
approximately 2.53 million of the budget. Expenditures total 2.46 million representing 47% of the projected spend for the year. Um capital spending
remains below projected levels as several planned infrastructure projects are either pending or or they're in the early stage of implementation. The fund remains operationally stable and we anticipate additional project activity
during the year um during the remainder of the fiscal year. The sewer fund generated 1.29 29 million which is slightly below our projection for the year. However, um the fund is still um
in good financial shape and um we continue we're we're continuing with our capital improvement projects which includes a major item the sewer um sanitary sewer lining projects um which remains
as an improving our wastewater infrastructure system. So in summary, the town's overall financial >> one question on the sew how much that project >> um
>> I do not have the full number but I can >> it used to be eight. >> I will get back to you with that number. I do not have >> did it go up on >> wasn't it eight at some time? >> Is that >> the sewer lining project? Do you cost of
it? >> Yeah. >> Oh, we got a great we we wrestled that thing to uh to Mercy and we took a project that was 6 to8 million and make it it's probably going to be about 1.4 1.5 million and you'll see it. We apologize for those that are watching to you here.
>> Um you know it's a little bit slower. It's a little bit disruptive. Not too bad. You can get through traffic pretty well. Um slowed a little bit. We had a couple issues out there with bypass and stuff. We had to get that tuned up uh with the with the contractor, but uh it's moving along. It's going well. Uh
the side streets, great, perfect, like new. You guys are great for another 50, 60 years. Um it's just a little bit hard, a little fussier on the bigger lines and A1A with some of the condos. Larger condos have a bigger draw as you would imagine. Put a lot more water into the system. So, we have
to get the bypassing right. This is why I had to do one at night. So, we apologize for night disruption, but had to get those low flows uh handled. So, >> yeah, I think I mean my comment would be that it's really gone very well other
than the delays we had getting started between F DOT and a bunch of other things. >> And the bridge looks good, right? >> Yeah. But I think, you know, it's really been minimally disruptive relatively speaking to what it could be. So, >> Oh, if we had a D. >> Plus the price. I mean, we went to the
town to approve 3 million for this sewer relining project. >> Three and a half. >> Three and a half. >> Three and a half point one and a half or something. So, >> you know, I think that's uh >> was in the budget for it. So, you're showing >> right now we budgeted this year uh our
budget for that project's about 1.6. I think I put in the sewer fun. >> You dropped it down to what? Okay. >> Yeah. So, it's we we gave ourselves some room because >> we never know with the with the sewer lines. We something could be just not right and we have to
>> I think we have to uh we have we have an issue I think on the south end. We're sucking sand in somewhere. >> So, we got to figure that out. So, we might have to put down well points and draw the water table down enough to go in and fix the pipe because there's something a crack that's got sand a lot
of sand coming in. Uh, who knows for how long we've been treating sand in Delray. So, so we gota get those things corrected. >> Wow. Excellent. Excellent work. >> Good project. And I think it's seems to be coming along very
>> Pat Sergey and the guys, they're doing a great job keeping that thing moving moving forward. So, um, it's good. It's a project we needed. It took a lot longer, but we got the right price. Thank gosh. X.
>> So just to summarize what I spoke about earlier, the town continues to be in a strong financial position as of April 30th, 2026. The general fund continues to perform well, supported by strong
property tax collections. The discretionary sales tax exceeded expectations due to stronger than anticipated final receipts. The building department reflects steady development activity while the water and sewer funds remain stable and well positioned to
support planned capital improvements. As we move forward through the final months of the fiscal year, staff will continue to closely monitor revenues, expenditures, and project implementation to ensure that the town's resources are
managed responsibly and efficiently. That concludes my summary of our your budgeted to actual. Um >> I have one comment. Uh you have an seems
very accurate sevenmon results through April. >> Correct. >> And this is the middle of June. Marshall remember and everybody else we used to cry for numbers on a quarterly basis and get them six
months late. So you're doing a great job getting us this is when I saw it seven month I said usually my mind quarter by quarter then I looked at the way it was put together it seemed very very well put together. So you is this a new system accounting system or is it just
>> it's called the Susie system. She's on it. Everything's booked at the end of the month and it's closed and >> on it to close May. Um >> you just you just left off what I wanted to say. She's doing a great job.
>> Kind of hit my sweet spot because again when I started my job here five years ago, I was new to government. So which Maggie you and I were talking about that earlier. government think governmental accounting is a little different from private sector.
>> So I think with the training um the support of your manager David the staff here I've gotten better and I can promise boards that I will only get better as we progress. um because you
you kind of dig into the numbers and you you you've learned them and you make things more efficient and the staff here were pretty good at trying to keep things timely and so that helps with me providing more timely reports. So it's
not just me even though I want to take credit but it's a team effort. >> You should you should >> it's a team effort as well. >> Your audit this year will be on April 30th. I um I well our auditor is gonna drop off. >> It wasn't on us. I we had everything
into him through December >> everything in December and it took him this long. >> What is the rule? Was it by has to be done by April June 30th June to go. >> So we're a month ahead. We're done. Uh but again we we provide everything by
December and they usually don't start and she starts calling. David's calling and we just they just don't really start until like >> Mhm. >> late March >> and you're like what have you been doing for 3 months but for a small account. >> So that's
>> Well, thank you. >> Small and mighty. >> Thank you for that report. Um does anyone have any >> questions or concerns? I know I didn't see anything that didn't look like it was pretty much right on schedule when I was looking through it, but anyone have
any concerns? And then whenever we get these reports, I always ask uh Susie and Marshall if they have any concerns about how we're doing with the budget that we should be. >> We're going to concerns here shortly. >> I'm tell
you're talking about next year's budget. >> We'll get to that. >> Yep. We got some big stuff to unravel and potentially discuss. And I think, you know, this group especially will be depending on November's results could be
very active. I'm going to need as much help um and the community's help to to to figure it out. And I mean, there are simple answers, but you've got to do it strategically so everybody's happy with what we do. >> Me personally, I'm I'm hearing your tone
of voice and I like it. means you're addressing it. That's the point. >> Oh, so we're ahead of it. We we started to look at uh with the five-year forecast, which David is now actively working to update now that we know the legislator's intent that's going to be on that ballot initiative. Um but when
we started that five-year forecast, we presented that to the commission in May. We said if they do a full elimination, which was kind of the intent as they were looking at doing a full elimination, we were like it's, you know, we're off the wheels and we're
we're struggling and it's not be like struggling because we can't. It's just you can't cut your way out of this. This what amendment that you will see uh smaller towns much worse than we have it. I I'm optimistic to believe we'll
make it out of this. Now, that's not really a big cheery endorsement, but we'll make it out of this, I think. And Highland Beach can survive as a community. I I believe um not everybody's coming out of this, and this isn't cutting your way out of this is
strategic. We have to get through this. It's going to be austerity, draconian cuts matched with tax increases, but you can't increase taxes too much to undo the benefit that the voters voted for. So, it's a a tricky thing. Luckily, the
beautiful community that is Highland Beach, I think we we will survive. We'll get through this. It'll just be real bumpy. Um, >> yes. >> Would one of the solutions be annexing mobile property and otherwise go all the way down to Spanish?
>> No, because you you're going to have to annex from two bigger, stronger towns, Del Rey and Bokeh. We that's that's not really in it. Um, those are the conversations though, right? like we're going to have to put everything on the table to figure out where we go, how we do it. Uh we're a little challenged by a
land acquisition because we're not facing the western face of the county. Uh I think the county's tenor will change that. If anybody wants to annex any of our land and provide the services, go for it because the county's taken a huge gut punch. Um
so, uh >> oh my god. >> Uh I've got it at the end of this conversation uh of presenting the budget. So David's going to walk you through. Again, this is a 75% operating budget. We're still going to work. It's not completed yet. I originally intended to deliver a a fuller one on the 24th.
You guys came together a little bit earlier, which is great because I think we need to start having the conversations earlier. Dr. Greenwell, you've always said that. Um, so we got a 75% budget. I still need to fine-tune some budget line items, stuff like that. But in the big picture, it's
it's there. And then we'll talk about uh the constitutional amendment that's going to be on the November election. What that looks like for us, the property appraiser um uh Dorothy Jax and her team led by Dino uh uh in the her office did a good job of kind of
foreshadowing what that would look like under a series of assumptions which you do in an economic model. That's what we have to that's going to be some of those numbers don't that's why I say I think we'll make it through but it's like in the in between it's going to be rough. Um and I I don't
know the secondary or the unintended consequences of insolveny of other communities. Bokeh is not going to become insolvent. I don't believe Delray will boon maybe. Uh, South Bay, uh, Belgrade,
Palm Springs, Havill, Greenacres should be okay. But some of those town, they're going to they they're gone. The they're just they can't there's you that's because their taxable value is lower. >> So when you have an assessed value average of say, you know, $2 to $300,000
>> and then you take 250 out of it, there's nothing left to t you can't >> oh my >> you can't get that limit up fast enough and quick enough to to to fill that gap. So, >> so basically this proposal or this thing we're going to be voting for in November really hurts
lower income communities more than anything. >> It's the appearance of a very regressive action. It really like if you look at this >> it it does. So, but at the the other and the reason why you could say that is you could look at like a Manalopam in Palm
Beach all of this effect is less than 1% of their budget. But when you have an average home value of 12 to 15 million dollars and that's pretty much your entire stock in a small town in Alpan and Palm Beach, they get through these
things. But part of it is that if you look at some of the other language in the enrolled bill, there's a lot of transfer of power via general law to the legislature that could be just is dangerous because the no longer will we
have an opportunity to vote on it. It goes straight to the legislature and the legislature has had a very clear goal to restrict. You could say, some could say eliminate, but I I'll use a safer word
like restrict the operations of local governments and their existence. So that is kind of what we're looking at. And like I was just talking with the fire who were starting to negotiate their contract. I said math is not political. Math is not emotional. Math doesn't care
what you look like. It's just how the numbers are going to roll out. So we we're going to be doing a lot of uh massaging and stuff. Uh but again, it's the provisions outside of that second year where they move it to the general law provisions that get kind of dangerous.
So it's almost like this huge trust act with a partner that doesn't like us. It's hard >> to on a bigger scale think, oh, we're going to entrust them. So one of the provisions is they get to start to determine what we could spend money on.
It seems simple enough. You'd think, oh, you know, police, fire, but they could squeeze it further under general law action versus a constitutional change which says the electorate of a municipality determines its general operations and functions. Home rule by
general law slicing that off. Now, the legislature can act independently without the voters. I mean, indirectly through the voters's representation. It's fine, but it puts the general law in there. No longer does it require that constitutional amendment to to move forward. So, It's going to be it's going to be
interesting, right? Uh, nonetheless, uh, there's some caps on growth uh, for nonhomesteaded properties, which we're going to probably depend more heavily on. How much more is the conversation, but we'll probably have to to rely on
them a bit. That growth doesn't exist. It's a five-year window to get your full homestead. That helps a little bit. Gives us some breathing room, especially on uncapping and change and movement. uh gives us a little bit of room. Um >> so if you don't homestead, you're going
to have to pay more taxes in >> Florida, Highland Beach, >> but it won't grow. Yes. But the the the the limits that they put on it that instead of a 10% growth, so if you have a non-h homestead now, it could grow at 10%. If you think of your second home, it can grow at 10%. Right.
>> All right. >> Now it can only grow at 5%. >> Oh, I see. So what we're going to do is when we've seen these rebounds in tax values, those won't rebound as quickly. So when we do have economic downturns or if this does have an unintended
consequence on property values, I'm not so sure, but it's going to have some effect. So these years when we're projecting, you know, 3 to 5% growth rates, we may be looking at more one to 3% growth rates, probably on the lower side. So, you know, uh getting ahead of
steam is going to be difficult uh to to to stabilize uh our revenues. You know, again, the hard part and this is personal, right? And it should be a little bit personal with you all is we've done it the right way. The Highland Beachway, as much as
I've, you know, been up here like banging my head, well, your spending caps and this it's so difficult. You kind of have built a model of how to succeed right now. it's not good enough and the governor and the legislator has taken some more uh pronounced actions or
put the proposal. I mean, it's still got to pass with 60%. >> You can, you know, if does it or does it not? Um, we've had two other previous very popular uh ballot initiatives that couldn't get there. Uh, that being uh what was it? the the marijuana and abortion which are
nationally have been regardless of political stance or personal I'm just saying they're very popular with the electorate it couldn't get over that that 60% threshold but this you never know um now uh one would say why is it
now I think it's a legacy issue for the governor and I think he has um 60 million in his back that he can use on this. So, uh it's they're going to be pushing hard. We are limited to what we
can say back, right? So, I could say it in the manager's minute and got a couple hundred of you that like to read it um to kind of inform and educate because the ballot language, if we remember, doesn't represent the 20 pages of changes. It's just a summary of here's
the language to effectuate that bill. And I'll email you guys the bill so you can see the detailed language because it's not just X or Y. It's X or Y then all these general law provisions. And I think most people aren't going to it's kind of inside basebally like what do you mean general law? It's all general. Well,
there's constitutional law and then there's general law to make these changes. They're shifting it as much as they can to general law to to to >> is thing that they're proposing. It does it work in other states? >> No other state has it. So, not even
Oklahoma. That's his big buddy, the governor of Oklahoma. I heard Dantis speak one time. >> Oh, so Oklahoma does have some low property taxes, but they haven't gone to this point of complete homestead. They just have other caps, but their sales tax is high. And so, it's like every state,
again, this is just my read and maybe some of my colleagues that I really respect out there in the management industry. This appears to be a tax shift. taking it from homesteads and put it to the non-h homestead because the cost to
operate generally stays there. It's going to ruin some small towns, poorer small towns, but it seems to be a tax shift, right? Like no longer is the homestead going to pay it. You're going to push it over to uh the non-homestead. That's a philosophical issue and it's
been clearly communicated. That's how what that's what we should be doing is and it's kind of odd language cuz I've always refused to use that language. Just because you're rich doesn't mean you should be paying it. As if are you willing to pay that? But they're kind of saying, well then these second homers
will do it. So what does that do to the second home market if all of a sudden the taxes double? Is this the as desirable? Does it make a difference? I I see that's that's the part, you know, does a couple thousand dollars one way or the other make it or break the second home market in Highland Beach andor the
coastal? Probably not. I see you're shaking like I'm with you. I don't know that it crushes it. It it softens it maybe, but um or it pushes everybody to homestead and then we got to chase. Do you have a homestead here? Homestead New York, homestead Connecticut, homestead in Montana. Like who where are your
homesteads? That's hard. That's a hard chase. >> Yeah. And if we're restricted on chasing with revenue to go chase it, you know, uh those are >> those are those are challenges. I mean really this is and again it's got to pass by 60%. Next year's budget looks great
>> as planned as we've been working towards on our five-year forecast. Everything is smooth. >> Great service. You guys are happy. Taxes are low. We're the third lowest in the that doesn't change next year. It's after that like now what do we you know those are tough. So, what I always tell
staff um uh is the the the magic number is right around 10%. Once you get to 10% cuts, it's people. You can't cut pens and pencils and paper and just don't turn these lights on and 10% gets to people. And we're right at
that number, right? So, yikes. Those are more uncomfortable conversations because of a similar size town that I look at, we're usually staffed at about 30% less than other small towns that do the full service like we do. So, we've, like I said, we've done all the right things to keep it bare bones, keep us focused,
don't overstaff, but you know, 10% is where that trigger is. So, those are the conversations where it's, you know, you can't cut everything and say we're just going to have the people here, but they don't get a desk to sit at. There's no power at the build. that that's not effective
either. So 10% is that magic number and we're close to it. >> Damn. >> So I'm hoping we squeeze it. We have a lot of big capital programs. So that those are conversations with you, the commission, the community. You know, some of these bigger capital projects that we had on in in our sites.
Maybe that maybe we either change it value engineer our ideas way down to functional versus optimal, right? And again, the one last thing around this, you're going to start hearing me say, and I'll I'll practice it with you,
so if you get mad, I'll maybe I'll change the language. Um, in the Great Recession, right, I I I pretty much formed my career in the Great Recession. And what that was is those were temporary changes, right? That was an economic collapse from a finance market
for homes. Collapsed, but it was a one time and slowly built its way out. But at that time when we were building our way out and saying take furlow days, less pay more for less, we weren't into an inflationary period. >> Yeah.
>> So the cost of living is increasing. And this isn't temporary. This is structural. So the motto and the mantra is no longer more with less. It's going to be less with less. It's just less. >> So, and that's the kind of how this bill
works its way through the system is less with less and for less less. Not you more and then everybody take it in the shorts. It just doesn't work because nothing it just it's less with less less services. And I could think on the bigger agencies and the the county
administrator had even said it too like you know cutting medians keeping the medians clean. That's the first thing it's cut. That's not that important as much as fixing a pothole. So all those edge things, keeping parks mode and clean and in place, you know, those are
the services that just go away. Just it's less. We'll do it once a year instead of every two weeks. You know, it it's just it's challenging, right? And the only lever that local governments have is is raising the tax rate, right? And that's just going to irritate people if the only way to do it is we again
what they said if you have bigger homestead. But if I So we need to get to about five mills. If we got to five mills, right, that was with full elimination. Highland Beach functions, but the county is going to increase their tax rate.
>> Your other taxing agencies are um >> Yeah. >> So I don't think we need to get if 250 is the number, it's no longer five mills. We need to get to four four and a half mills. That's why I said I think we survive. It's just you don't want to raise the tax to a homestead person to a
point where they're like, well, everything I just saved you just took back in a elevated tax structure. It kind of defeats the benefit and purpose and it irritates the electorate. We don't want to irritate the electorate because then the the trust is lost. Legislator gets more
involved. Now they are equipped with this general law power. I know it's very complex. It's probably a lengthy description. I just want you to know like there's a lot going on. This is challenging as to now over the next five that five next fiveyear window
if it passes. It's very challenging and different. Um and insolvenies, right? All these other towns, what is that level of insolveny with all these other towns? What's that secondary effect? We just don't know. Constitutionally, all these towns have, you know, can issue debt. Creditors are first in line. So
the creditors get paid before residents get service this and that. creditors get made whole under the Constitution of Florida when you basically as the commission and I sign off the you know I'm down with the sinking ship we're out of business you know um that what does that have otherwise
because the county has to assume responsibility well these small towns that no longer can function because they don't generate revenue the county is going to take over with no revenue and provide that service in a larger geographic space >> oh boy >> it's it's it's challenging uh I think
Again, I'm hopeful we get through it, but it's Highland Beach is going to be a little bit different from the local government perspective. Maybe your day-to-day life, the water's going to turn on. It's still going to be beautiful. Award-winning award-winning water. Uh the trash will get picked up. You know, everybody's going to be happy
and nice that there's just, you know, things just that concierge element that we're trying to build. And mostly it's keeping public safety functional because that's what you have here. That's your, you know, the biggest service piece. That's going to be challenging.
>> Well, I I would be more optimistic than you are. I mean, the >> good Thank you. Please make me feel better. >> People here like they're three miles of paradise and >> the public here, the residents will, I honestly believe will like step up and help out and
>> and it'll get done. It's a lot of work. I'm not, you know, but >> but it'll get done. So quick question for this year's upcoming budget that we're about to start discussing. >> Yep. >> We don't need two parallel budgets for
this year based on whether this passes or not. Correct. It would be for the following year >> and the following year. The first year the 150 >> only >> results at about 975 no more than a million. And it doesn't account for growth at 2%. >> It we're at 900,000 I think that next
year. So the year after we're up to closer to that, you know, 1.6 to 2 million. We I think we could, but if we don't elevate the millage rate in some fashion, I'm kind of that's kind of the prelude like we're going to have to
tweak it a bit. Um it gets, you know, 2 million that's that was that 10% exercise that we did on that we have to do now statutoily every year. That's about 1.8. We said, you know, you you cut some capital out. um you you start to use
attrition to shrink the workforce a little bit. You uh we've already you know mingle jingle maybe comes a little bit of a smaller event. we we just start squeezing in on some of these things and extra services and
>> and jobs people will lose their jobs >> here so much but I'm talking about in the state of Florida jobs will be affected >> from this >> shortsighted thing >> yeah but at the same time I I
it sounds cold but I don't think they care >> no they don't care >> so um I don't want to say it like that but >> it it is I think there'll be I mean here's a number that'll blow your mind right so um the the MST remember that
scary concept that if you wanted the county to do your fire you pay 3.4 four mills and we said that's, you know, double Del Rey's cost. Why would we ever think to do such a thing, you know, so they stand to lose under the $250,000 scenario because they have a huge
geographical range $150 million out of their $725 million budget and they'll start to assume communities that they don't provide service in currently. So, I mean that is and they can't >> Oh, yeah.
>> You know, they you can't you could raise as much as you want, but you can't get to the So, if you look at it, that's and again, the the sheriff, you know, Bradshaw's pretty pretty good at his job, I would think. You know, he's at 1.1 billion. You think the sheriff's
going to operate at 1.1 billion continuing when, you know, fire is looking at, you know, a 25 30% reduction in the revenue collection. The sheriff's going to shrink. What does that do? What does that look like? I think it's a precipice to say we better make sure we have police and fire here because if you
depend on them, it's just the service quality is going to be shrunk down. So, >> well, I mean, the to me from a policy standpoint, the biggest problem that they've had is that no one has discussed in any way, shape, or form how all this
lost revenue is supposed to be replaced. And to any like sane person, you realize that the money's got to come from someplace. >> Well, that's the thing. >> And they haven't been discussing, well, okay, so what's the alternative when we give people the free goodies in their
terms of their homestead exemptions? Who's stepping up with the with the money to replace it? sitting there. >> So, >> I mean, I haven't been involved like you, but just from reading about it and stuff, I haven't seen any answers to those basic questions like where's the
money supposed to come from? >> Less with less. They're okay with less with less. I >> And it may work in a more rural setting where you don't really demand a lot of services because you live far from population bases. Maybe you don't need
but a sheriff on an emergency situation. And this here's a little again it just takes away from that home rule concept like you've created what you've wanted here as a community you've created what you want and you allowed to do that whatever that cost is you're allowed to
say yes no maybe so the just south Florida the denser populations it's hard to function under the model that's really kind of simplistic thinking that the complexities don't exist right and they didn't study the complexities of how it
all inter works What are the outcomes? The governor wanted a trust fund. I'll tell I'll recognize that. He said he wanted a trust fund created to backs stop communities. The legislature said no. They removed he wanted schools to stay in so the schools would take a cut. They pulled the schools out because they left
schools in. It never would pass. You're never going to get 60% if you go after the public schools. Just you just won't do it. Right. Practical political strategy is you throw the schools in, it's it'll never pass. They pulled the schools out so they got, you know, that bigger bigger piece to to move it
through. And originally they had a backs stop for public safety that a community couldn't cut public safety but one year prior that was eliminated. So public safety is in the mix with everybody else. So you have to look at those things, you know. So yeah.
>> Uh two questions interrelated. What percentage of Florida residents are homesteaded? And what percentage of Highland Beach residents are homesteaded? >> Yeah, we're about 42%. The state of Florida's probably in the 30 percentile. I don't have that number hard, but our I
have our numbers. Um, uh, we're about 42% which generates about 38% of our revenue. So, it's not exact match. I believe this group had that conversation last time we talked. It isn't an exact match of uh you know our homestead to revenue generation, but we have some
pretty high-end homestead prop $38 million home that's homesteaded. Um now you know $250,000 off that. That's that's why we possibly do better than just about everyone else is that we have some of those homes to to prop up. And
again, most of those folks, the, you know, 800 bucks, $875 savings that they might, it doesn't move the needle for them on their day-to-day lives. Good for them. God bless. But I'm just saying like it doesn't move them one way or the other.
>> So basically, a city like Boon Beach who doesn't have a big tax base, per se, would be in trouble. But then again, are are a lot of them going to vote for it or not? If only 40% are homesteaded,
the other 60 really don't care, so they might not vote for it. Well, the nonhomestead isn't voting, so that saves us a little bit. Um, again, it's a gubanatorial election, so the turnout's usually a bit higher. Uh, no one knows what you do in your box,
right? Um so it's hard to predict what h I mean we'll start seeing polling research um and some of the strategies that I'll I'll talk with the commission and you all is you know we start taking some actions that may seem you know like when we set our maximum millage rate and
that resolution in July we have until the very last meeting in September to officially set it elevate that to backs stop you know what it is so as we see polling information if it starts pulling pulling at 65 70%. We need to be prepared. Now, if it flutters around in
the 50 percentile, we're probably okay and it won't pass through. Now, that's our immediate focus. Now, does that anger the legislature to take more actions? I don't know that they'll go back to the ballot box. They'll just have to work the levers that are
available to them. Um, >> we're going to have to start protecting ourselves and set it up. But, yeah, >> haven't they tried to do this a couple times before? Interest. Good point. Good point. It failed the last two times >> and because >> in 200
is it 18? Yeah. Just before I got here, 2018, you guys didn't pass an increase in the homestead exemption. It failed. And I was just talking with Len. I don't know because I think in either 18 or 20 you passed the 60% threshold in the
state of Florida. So I'm trying to remember. We So the last referendum one I think failed without a 60% threshold. It failed on a 50% threshold. So now it's the 60. So that's some good news, right? There's the optimism that again it's hard to get 60%. That number is
hard to get. Um but they're going to really put I think it's going to be close just because the vote yes on this has a lot of money >> a lot of money behind it to make it happen. And you have somebody's legacy. you have a needed platform for a
national profile. There's things and this is just the political tactics that are behind some of it. Those are those are real. They come to play and that's kind of how it works. Those are things that you know are all at play that make it scary. David.
>> Okay. >> 60% of the people who are actually voting or 60% of the whole elector >> who vote 60% whoever show up. Again, you're going to get a big turnout. Uh some of the national energy might work in the favor of this. I don't know. >> Okay.
>> Um my job I don't I don't you know my job is apolitical. I'm just saying that I have to read the strategies that are all moving in play to let you know what what it could look like. Um I again I I appreciate the optimism. I'm
we'll be okay. It's just to be the okay is going to be harder to achieve and it'll take more careful planning if you will on all of us to see how we want to get there. You're going to have to tell me how you want to get there. I'm going to come up with all the scenarios. You tell me what levers you want to pull.
Um, and that's why I always tell the commission, you here's all your options. You want me to pull this crazy lever, I'll pull the crazy lever. If you want to pull this lever, but I think at the end of the day, we'll get there. It's just it could be a little bit bouncy. It might again, it's the old, you know, a little bit of belt tightening, some
austerity, like let's let's cool down on a few things. We may have to do that because I don't want or I I I would believe the commission even this group and residents wouldn't want to see the the benefit of an approved
amendment to be totally erased immediately with a tax increase, right? That just that just doesn't sit well with a lot of people. Like, hey, well, it passed. I get to save, you know, $1,200 on my tax bill, let's say, or $1,000 on my tax bill, and the town's
going to raise my taxes by $1,000. You don't gain or lose anything, but you never got the gain. And if you voted for it, you'd be like, I want some of that gain. So, there's going to be that balancing act a little bit to to get in there. And there's only so many levers we can pull. You know, we could look at
a fire fee um where it's a special fee off the taxes that pay for a portion of fire service, just the fire side, not the EMS. You could collect a special fee. It might be something we look at to keep our taxes down, not do that. Um so, I've been talking with some of my colleagues out there what that looks
like. There's we're just going to have to It's different, right? Um I think we're good for a couple years. I think it's that the the 28 29 budget where it's 250 where we're going to have to sit down and be like and we just don't know what
again those secondary impacts start to look like that have unintended consequences that all going to focus on the squeeze. Um because they they put in language that said they have to come up with a uniform now this is kind of wonky right a uniform procedure and process by which
counties and municipalities can get to full elimination. So I don't I don't know what that means, but they could do it by general law now. They can't do it by a vote. Now they'll have the general law ability to to do that. I don't know if the procedure is you have you shall within five years and here's the procedure you follow. So like
they double back cost, but somebody would sue that on that language barrier, you know. Um it's just, you know, when you give General law, you know, legislators in 60 days could come up with some pretty crazy stuff on that short period of time. It's not a full-time legislator
we're working with. It's part-time. They go fast. Um, so >> how about budget presentation? That's good. >> Let's do that. >> It's a rosier picture. >> On we go. >> David, are you around? >> I'm sorry about that interruption. Uh,
yeah. Uh, if you turn your, uh, you should have the presentation here. I'll start sharing my screen. >> Got it. >> And we can go forward. Uh, let's >> Nice. >> Can you see my screen? Okay. Yes.
>> Okay. Uh >> so um as we said as as Marshall had said, you know, um our our budget assumptions had assumed uh a certain rate. Well, when the property appraiser came back, our we we realized that uh
the uh value of of the taxable value of the property there in Highland Beach was about 4.1%. Uh we're confident obviously that we can maintain that 3.5875 mills. Um also keep in mind that you
know in 2026 we were very heavily focused on capital. Uh but these right here as you can see here these right here are just some of the preliminary. Remember we're at about 75% of of where we think the the our our budget numbers are going to be. Uh we have some
estimates in there for insurance and and uh pension pension the state of Florida won't release pension contributions until July. So we have some of those assumptions already baked in. Uh but you know we uh we really had some great
accomplishments. I'm on slide three now uh for for 26. You know this was our first full year of operations. If you recall, you know, we had a a partial year where we were floating both Delray and our new staff and also building uh
that beautiful uh firehouse. Uh uh we but this year FY25 and 26, this right here where we're currently in, it's our full first full year of operations and it's been very successful. And these were some of the other accomplishments
that we've already uh uh achieved, excuse me, this year. Um when you look at uh our strategic projects and our initiatives, you know, these are things that the the highlighted ones are what
we like to do is we like to when we have more clarity on how much these budgeted items in the future are going to cost. What we tend to do is we tend to bring you budget amendments at that time when
we're done with planning, engineering, uh uh and as we get closer. Uh but we'll continue to to to look at these projects. A lot of these projects are are are in Q. Uh we're just kind of uh still in the process of planning, but
but you'll see some of these in our next budget cycle. But if you ever wondered what our what our millage rate our proposed millage rate is is made up of I'm on slide five. Uh you know it's it's it's our operating
uh mills there at 3.427 and then you know obviously our our debt service millage proportion related only to the firehouse. And so that that's what brings us our 3.5875. And and keep in mind that this has been the same millillage uh since uh October
1st, 2022 or FY23. Um you know, we have all these different funds and these right here. This is just a highlevel in transfers in versus transfers out from the different funds. Uh it's stayed relatively the same.
You'll see as we go farther in this presentation, we bumped up maybe what the uh sewer fund uh trans uh provides to the water fund and then also what the building fund provides to the general fund. But we'll go through those as we
go through each of the uh the the different funds. But keep in mind, you know, if you look at uh this slide here, slide number seven, you know, there there used to be a time back in FY22, right? When uh our
millillage, we would give we would have to uh send money over to the water fund. And and the reason why that is is because, you know, we didn't have the rate structure yet um uh uh fixed for the the water fund uh to stand on its
own. But right now, all of our funds stand on their own. And you can see here what we what we tried to do is we tried to eliminate that water fund debt millage. We finally got rid of that and and we replaced that obviously with the
fire debt millage, but the goal here was to uh keep our millage rate the same. And we had planned that during our five-year uh forecast for the future that we do every year. And um and we've
been and we've been very successful. Uh as Marshall had said, you know, as we'll discuss later on, you know, potential uh legislation may modify those rates uh in the in the future. But this right here is pretty much what our uh FY27, this is
what our millage rate is going to consist of. you know, it's going to consist of our operating millage for the general fund and then a little bit for our our debt on the firehouse behind you. Well, this is what this is a history of really what's happened in the town. The
the solid block lines, right? Those are the uh taxable values of of the uh set by the property appraiser. And then the uh the the the the solid line here, this right here is the percentage change. So,
you know, we we got up to uh 13.7% increase in in one year if if you recall. Well, now that's that's trending down. And you can see in the past, you know, in in FY21, property growth was
only about 2.3% back in the day. And uh so we came up very very steep. You can see how steep this this this this this trajectory upward was. and we are starting to climb down low. Now, we were
hoping for maybe a 5% change in property value this year, uh but it got a little bit more uh drastic. It went down to about 4.1% as set by the property appraiser. So as we discussed earlier um you know
over 73% of our revenue to uh to do what the town needs to do in all the services that it provides. You know 73% of our revenue comes from property taxes and yeah we get a little bit in here from
the state of Florida or we get a little bit in from franchise fees. you know, your charges for service, that's that's just almost like a pass through for garbage collection. Uh we get a little bit from investment earnings, but as you can see, the the lion share of our
revenue is obviously property taxes. And so I'm on slide 10. So this is the general fund. You know, you you can see here what you're looking at here, the uh the the dark blue section here. These are actuals FY 23, 24, and 25 per the
audit. We estimate where we think we're going to hit for FY26. And then you also have your budgets. And the in the next columns, uh, FY 25, 26, 27. And then here in the the far right
column, that's that we're looking at budget versus budget, you know. So, we're really we're looking at what's this 27 budget compared to our 26 budget look like. And so, you can see, you know, when we increase 4.3%,
well, that generates a little bit over, you know, $600,000 of additional revenue. Um, uh, now when I say additional revenue, that revenue there has to also cover our increase in costs. And uh if you recall our inflation is
about 2 1.5% uh in your area 2 and 12 to 3%. Now now we we didn't account for the massive increases in gas but uh hopefully that'll that'll be coming down. But but
overall this is uh a majority of our revenue uh that will go pay for the expenditures, you know, comes from our property taxes. And uh so we've increased everything else. Uh also look at here on the bottom, the very bottom
line here is appropriation from reserves. If you recall, yeah, you know, we pulled out about three and a half. Uh the board gave us approval for $4 million to be able to pull from our reserves to for the fire department. You know, we we were successful and we and
we come we came in under that budget as well. But, you know, we've never had to pull, as you can see here, when you see appropriation from reserves, we've never had to pull that lever that we've had um
in in in the past. So, here are our expenditures. Here you can see our operating expenditures. Our operating expenditures in include all of those expenditures to run the uh uh the
the local government. And you can see here how h how come it was higher in 23 and 24. Well, keep in mind it was much higher in 23 and 24 because if you recall we were holding almost two fire departments. If you recall, you know, we
we had to have Delray Delray Fire Department as well as our own fire department. In addition, we you can also see our capital our capital uh capital outlay. This right here was the transition year 23 24. This was when we
were building and maintaining two fire departments for that for that crossover period of time. So we kind of got back into in 2025 a state of normaly where we had our first full year of our own fire
and EMS service and we weren't necessarily uh uh still retaining uh Delray Beach. But anyway, so you can see here that uh operating expenses, personnel services, personnel services not only include your
pay but also pension contribution, health insurance, payroll taxes, uh all the above uh costs associated with that. And you can also see our debt service. The debt service here and again this is just for the general fund. The
debt service here is is obviously for the fire department. Uh, and you can see here in the past, but this was always this was always part of our 5-year plan was, hey, listen, as property values increase, what we're going to do with
the excess cash is we're going to store it away until future. We just didn't realize that future meant 2728. So, it's so we obviously planned very well. Uh we
built the fire station just in time and um and I I think we're doing we're doing extremely well and as Marshall said we'll we'll be able to weather this change in legislation um uh successfully as always. It'll take
some planning but I'm confident uh as you are Dr. Greenwall uh that that we'll be able to do that right now. Uh here you have your cap your general fund capital plan. These are kind of the the the things we hope to accomplish this year. Nothing major probably, you know,
the the town side streets resurfacing. That that that's kind of kind of a major thing. But uh but all of our costs here include our our standard cost of living and wage adjustments. They also we've also baked into these numbers increases
in operating expenses and repairs and maintenance and a slight decrease in capital outlay. As I said before, FY26 was major capital focus. Uh 27, you
know, we're we're going to moderate that down a a little bit and see what the future legislation holds. But uh but you can also see too that you know that as expenses increase we maintain property
uh the property values start to come down a little bit and we maintain our millage rate. You can see that appropriation to reserve starts to go down a little bit. You know it it uh but that's really predicated on how much we're going to be spending on capital
outlay. Uh if you look at departments, as I said before, when you're looking at all of the general fund departments, each department includes its own labor, its own uh labor and related costs,
operating costs. If that department has any capital or debt service costs, uh where that applies that we we keep that in that department so we can tell how each department is doing. But as uh
Marshall had said and as we all knew, you know, public safety is about 67 almost 70% of your expenditures. So when we start thinking about what areas could be affected, uh keep in mind that 70% of
your general fund expenditures are public safety related. Uh just uh you know we we we we also have you can also see here that we have uh move we moved some staff from finance to shared
services but this was back in in 2025. We have a little bit lower capital expenditures uh within most departments but all in all uh you can see that you know it's uh departmentwise it's only grown about 1.6%.
This is kind of interesting. This next slide, slide number 13. What we wanted to show you was this is our fund balance. So when we talk about the general fund in cash, here's our audited figures 23,
24, 25. We're estimating for 26 and we're estimating obviously for 27. But you might say, wow, okay, we've got a lot of cash in the general fund, right? You can see that 8 million, 10 million, 11 million, 12 million. Okay.
All right. I can see that. But our uh our policy is to restrict that those funds. So you can see here we have budget stabilization restriction. We have a disaster recovery restriction.
We created a fire rescue sinking fund restriction so that we can uh start uh planning ahead for replacement of those expensive vehicles. Really the only one that's unrestricted at this time is
called unassigned. And if you flow here to your right, I have about you know 90 days. I've got about three months of cash that is really unassigned. So when we look at
our budgeting, when we look at the future, where we can pull from, keep in mind, we're not hoarding cash here, we're we're we have these reserves earmarked for a specific purpose. But at
the end of the day, our unassigned value uh of what we can really budget in is about 90 days of operating of operating cash. Uh we have about 90 days of that because we put so much uh restrictions
on other types of budget stabilization and disaster recovery in case of uh god forbid a tornado or hurricane quake. Uh you know we'll be at we we pull into that about 16.5% for each of those
categories. Uh >> yes. So when you're making the that point, I mean 90 days reserves doesn't sound like very much to me. At least in other
places I've been, we typically kept more. Now obviously we have reserves that are restricted, but are you uh implying that that we should have more in the general reserves than what we currently have now at 90 days or you're happy with that or where are we with
that? >> No. Uh well the GFOA, the Government Finance Officers Association does say about 2 to 3 months, you know, of of reserves. What I just wanted to show you here was of the $12 million
that we do have in reserves for this fund, really only about $4.8 $8 million is what we would call unassigned. Meaning that the commission has said yes, you might have $12 million, but you
can only touch those $12 million in these certain categories for these certain events. But again, just to add to that, we if you recall back from like the third slide, basically we have two major capital projects that aren't
budgeted but are allocated to that unassigned fund balance. So we have that's to handle some planned projects. Maybe not the engineering. We've budgeted the engineering and a little bit, but the hard cost is still pending.
Especially the fire has not really been sourced in as to what that is to redo that whole uh annex area. >> Yeah. >> Um but again, so some of that's going to come down, but it's accounted for loosely. We haven't said it's officially a project yet until we see numbers. So
>> So you're saying that fire rescue pending thing is a building or personnel? >> That's that's the structure. The old fire station get down and build a new annex. Basically a big garage for all the equipment, some storage. Yep. Are you thinking of going forward with that?
>> Uh, the commission's probably going to take a real close look at that and some of the other ones as we move forward. Uh, depending on how that outcome is. Um, I think some of these capital projects, we're going to have to take a closer look at these bigger oneoff big
projects. I think the commission is going to probably pump the brakes a little bit, say, is it really something we should do now or is it something that, hey, we've got it designed. Why don't we wait and see how this legislative thing shakes out because we might need cash in the short term to to
bridge some stuff? And again, I don't think again I don't think it's next year or the year after. It's that 2829 budget where the 250 comes in where it could be a little bit bouncy. Um so they may want to hold and see. Um we have a project
right now that's out to bid for the real time operation center for police, the new front like the new entrance to police da da da da. We got to see where that number comes in because it's it's treading above our threshold. So it may be a ballot question and I don't know that that's a real ripe issue at the
moment >> to go to the vote go to the voters and say hey we we need to spend more for this. So um we have to see where that project comes in as well. as the advisory group here. Um, should we advise the commission what we think that
maybe we should hold off on that until after the election? >> No, you guys are you guys are coming together here. I like this. So, um, at some point there could be a series of recommendations after this budget presentation where you may want to
>> say, "Hey, commission, we reviewed the budget. It looks good. We're concerned in out years um when a capital project comes through maybe we should go through a larger exercise to evaluate need, wants, desires and costs at the FAB and
remind another recommendation. You guys could be a good sounding board uh at that point uh too. So I mean like you could or you could say just be cautious or take a more elaborate review of capital projects over the next two years. you can make those type of
recommendations. Um, but those are come out of it. I think you know this is probably timely where like I said as this moves forward if this if it passes you guys are going to meeting a little bit more often. I think there's just going to be the need for public review on costs and budgets
and services. And I think it'll help all of us that when we pull those decisions or make harder decisions, everybody's on board with it so we all make that decision together. And I'm not trying to just put it all off on your lap. I'll make the final decisions once you tell me to do it. I'll deliver the bad newses
if we have to. But, you know, we should do it collectively and have that opportunity for the public as much as possible to participate. >> Yeah. And we're in an advisory position to the commission so we don't make the decisions. But be >> certainly if we're in a financial environment where we're looking at
various capital projects, we could after getting appropriate information uh opine as to whether I mean for example the sidewalk should rank ahead of a new fire department versus uh putting in the marine pathway
so that our boat can have a place to dock, etc., etc., whatever else is, >> you know, is going on at the moment. Yeah, because I'm kind of bummed out because we had planned everything so we could do everything. >> Those days are over. So we we're going to have to to re rechange our thought
pattern. We had planned for capital, you know, capital project planning could probably come back to this group because the amount of money available is shrinking quickly. You guys might be helping them to to make those decisions like what of of these capital projects?
We can't do all of them. Which one which one rises to the top or comes down? I'd like to see the two police public safety officers. I'd like to see Chief Joseph and Chief Hartman here argue which project should go. Um, that'd be entertaining. Uh, but at the same time, those types of real thoughtful
processes, I think, are going to going to be necessary. >> Could I address a question to David? >> Sure. Dave, >> uh, what's the break even point for the fire department between what Delray was holding us hostage to and us having one
year of the full fire department? Have we reach reached that break even point yet? >> No, we uh we we anticipated that because of the cost of building, keep in mind, we we built a brand new building, right? And so uh that we had to take on that
cost but we thought that we would be at seven years that after seven years we would be uh ahead of the curve. But keep in mind can you imagine I I it it blows my mind actually. Can you imagine that
if you did not if you did not build that fire station, what rates you I mean you would be at my prediction is instead of you budgeting $6 million a year, you would be probably at you'd look at a at
least a $10 million uh uh amount that they would say, "Hey, you know what? we have to increase our rates because of what's going on in the future legislation. You >> shrewd it was shrewd and smart and I'm
glad we did it. I just was curious so the people who may be watching this that that fire department ended up >> giving us a break even in the future. >> Yeah, David, I had asked that specifically at our last meeting for you guys if you would to come up with some numbers.
>> Yep. Um just in terms of you know I think people generally and I certainly am are very happy that we move forward with the fire department but uh we did in the process of of selling it if you will make some projections that some of
which in addition to improving quality which was most important in many people's minds was that we would also once we got through with the initial capital expenditures be saving money. >> Correct. Uh, and the projections were up to a couple million dollars a year basically.
>> Yeah. >> And it would be and some of it's an estimate because Delray's expenses have gone up dramatically since then. So if we were still part of their contract, our contract would have gone up significant. >> We'd be negotiating right now. >> Right. >> The point being though, it would be nice, I think, for people to at least
get some idea when we have a major because the town doesn't go through that many projects of that magnitude. Yeah. >> How we are actually doing compared to some of the uh some of the forecasts and
I think that since I believe people are very happy with how things are going, it would be I think reassuring to people if we could put out some numbers to show that uh you know we're near projection, we're on projection, we're ahead of whatever whatever the numbers actually
show they show. But >> I think helpful for people to know that >> also do it with with or without the building. It's you can't ignore a building. But what does it cost us to run the show without the building versus what it was before when we didn't have a
building? We had Del Rey. >> That's something I'm always curious of where we are. >> Yeah. >> Operational cost. >> Yeah. And I think we were uh and I'll jump in. David, he says seven years. We're like 6.7 6.6. That included the building.
>> That included construction with everything. Like by 2030 we were to be breaking even and making being $2 million less than them on that cost structure to to go back to see what it would be. Now it's the hard part would be because they would, you know,
definitely not give us a a good contract. >> Well, you have on the budget. >> They would not be giving us a good contract. on on the budget, you do break out the personnel services and the operating expenses and the capital outlay >> for the fire department and every department. >> It would be a good idea to say, okay,
that's what it's costing a year without the bill. >> David and I will put some we'll pencil out some assumptions. Yeah, you >> have to make other assumptions on things, but I'm really curious is the 2 million the personnel services is 2,240. >> Well, they have an underfunded pension
which has been their crux of everything. I don't know how you would estimate that cost because they were so upside down. >> That's the things that are going to be difficult, but it's nice. It's worth a try to see if the 2 million two for the uh personal services. What was it two
years ago? >> We could do some basic we could fine-tune what we originally assumed. Dave and I will revisit that and post it, send it out. You guys can take a look. Let us email us back if you like it. >> Yeah. And they have they publish what their operating budget is for their fire department.
>> Yeah. So look proportionally about how it worked before and then add on their 20% service fee or whatever they were charging us before, you know, whatever their whatever it was and at least get some idea. So it won't be exact obviously because we but it'll give some
people some idea as to uh you know how wise the decisions were uh back at that time and I think that can be helpful for >> youship is gone now. It's probably been very helpful. Oh yeah, but without a doubt. Okay. No, we'll do that. Uh but
and the what I stopped at is here's all your cash uh on the top part. This is all your cash as of audited uh as of uh fiscal years FY25. This is an estimate for FY26 and as well as an estimate of
FY27. So the top line shows all of your cash at various institutions, investments, and and operating bank accounts. uh the bottom line or the bottom set of numbers. This is how those cash dollars above are broken out. You
know, this is how they uh are allocated to the general fund, to the building fund, to the water fund. Uh and so this is how we know how much cash is available by fund. This is just one of those things that governmental
accounting requires. And so, uh but this right here breaks it out for you. Uh now we're leaving the the the the general fund, the building fund. Uh you know, the building fund revenues are what we're projecting for FY27. You
know, we're we're anticipating a little bit of a slowdown. Uh but nothing uh nothing crazy. Uh but we are it's been it's been growing astronomically to be honest with you. And and again, once
again, the commission, the FAB, they make the right decisions at the right time, especially with our interlocal agreement with our partner uh in Gulf Stream. That's helped us out tremendously. Uh but you can see that, you know, that when we look at our
budget, you know, we're going to try to pull some money out from that fund's reserves. Uh so right now we're we're thinking about a little bit less than a 7% uh drop in their revenues for FY27 just for a slowing down of some Highland
Beach projects. Uh um but uh but again that's just that's our preliminary budget assumption. Uh expenses again expenses here we we've increased our operating expenses, our personnel. We we we we we tapped down a little bit on the
capital outlay. We've increased a little bit of for the transfers from this fund to the general fund to cover their proportionate share of uh of the overhead uh for the general fund
which again all these numbers have been audited and and the auditors agree with our method of allocation. Uh but you know, we we did uh some pretty heavy stuff in FY26 with our capital and so we're just we're we're planning just to
tap that down a little bit uh for FY27 to look at some of the legislation changes. But overall, this fund here has a very healthy fund balance. You know, it's got 500 plus days of of of cash.
you know, uh, a, you know, its ability to to stand on its own for, you know, over a year and a half, you know, uh, is is is phenomenal. And it has some little bit, you know, of capital projects. But Marshall and I are still looking at what
is the correct balance for not only for FY27, but also the ensuing 5 years of our of our capital plan and where certain things drop in uh at at the correct time. But for now anyway, we're
looking at resurfacing the entire town complex, everything that you see there, as well as just some minor software and related uh capital uh expenditures that the building fund will will more likely need. Uh when we switch over to the
water fund, you know, we're looking at a little bit decrease there in the water fund. Now we are anticipating that rates will continue at a 5% rate increase uh but uh we are lowering the uh the uh
well we I'm sorry we we increased the transfers in from the sewer fund. As you can see here it's been $220,000 for since since forever. And so what we decided in FY27
uh when we looked at the 5-year forecast with the uh with the council, we all agreed that this fund uh the the sewer fund needs to contribute a little bit more to the water fund for cash flow
management. And so we decided in FY27 we'll do that. So we went up from $220 to $300,000. uh we anticipate that our investment earnings in this fund, you know, will be a little bit less because they are spending money. They're having to pull,
you can see appropriation from reserves. They're they're having to pull money out of their reserves to to take on uh certain projects and so uh but but it's okay. But here you can see our water revenues are up and our gallons are up
both in water and irrigation as well as the revenue dollars. When we increase those rates as well as the increase in consumption, it does produce uh an an overall increase. Now, as you're aware
of, you know, there is seasonality with your with your area obviously and so that's sometimes what you see those peaks and valleys are uh is just the seasonality with that fund. But as you can see here when we look at the expenses of the funds, you know, we we
increased personnel services. We we we we lowered a little bit down to about $300,000 some of the capital. You can also see our debt service is going down a little bit and our transfers out to the general fund. They'll remain the
same. Uh talking about debt, here is when the next trunch of debts start to drop off. We had a nice drop off from 24 to 25. Uh but the next the next reduction in our
series of uh debt service doesn't really happen until 29, you know. So right now we'll stay at about $810,000 a year. That includes principal and interest. But look at these interest rates, right? 1.18%,
you know, 2.61%. These are very favorable interest rates obviously back in the day. And you can see here when they start to uh to to knock off uh overall the uh this is one of the
funds where we sit there and we say you know we we need to look at how many days cash it has how how healthy is it for that fund. And so right now you know FY27 you know it's getting close you know we're getting into between the 85 to 80
days cash on hand. Uh so we we're we're Marshall and I and staff we're looking at what capital projects are the most uh beneficial. Uh we get most bang for our buck and we'll continue to look at
those. Um the sewer fund uh the sewer fund we have a we have an agreement with Delray. Uh they treat our sewer. So, the sewer fund is a bunch of uh lift stations throughout the throughout the island that that that that sewer gets
pumped to. And uh we've uh we've gotten some grants in the past. We haven't budgeted any grants uh right now for FY27, but we did assume in the sewer fund that a 5% rate increase uh will be effective
October 1st uh of uh of of 2026. And um and so yeah, so we we we we anticipated that increase. We also dropped down uh having to pull from our appropriation from reserves. This right
here was those major capital projects that we talked about, the sewer relining uh capital projects. You can see here that the sewer fund as well as the water fund its increase in cons in usage uh is
uh is is is a positive movement. Here's our here's our overall budget of the expenditures. You can see that the the major decrease in expenditures will be those capital outlays. You know, we we really budgeted hard in FY26 with the sewer relining. Well, now we're going to
go back down to about $385,000 in in capital outlay. Uh transfers went up as we anticipated that going to the water fund. Uh but here you can see that where the water fund was at, I'm on
slide 27, where the water fund was at 80 to 85 days of cash, you know, the sewer fund is a little bit healthier. And so we have these projects here of sewer lateral rellining and and the storm water uh Belo upgrades and some portable
generators that that we're looking at uh for for this fund for FY27. But in summary, if you look at all of the funds, the general fund, building, water, and sewer, and you look at all the sources of our revenue, and you look at all the
uses of that revenue, you know, you'll be able to see here that our total budget is going to be about $30.3 million to run everything in your town. And you can also see that we have a nice mix. Look at 52%
of our expenditures are you know labor and related you know uh tw 30% or 29% is operating expenses 6% is capital outlay you know 5% overall when you look at the whole town and uh right now you know
we're still able to drop for FY27 we budget to drop about 2% you know into our appropriation from reserves ress uh or appropriation to reserves for this budget year for FY27. As Marshall said,
we are working on our uh the the property tax constitutional amendments. We have that in our site and uh we're going to be doing some uh some extensive planning on what the next five years
actually looks like and how that affects each of these four funds and how that affects uh services to the community. >> Uh but I'm here to answer any questions.
Well, anybody anybody have any questions for David? >> Any concerns, questions? I have a few. >> It's just to know this is very preliminary or just preliminary.
>> 75%ish, plus or minus. I still have to go through uh comb a few of the accounts to make sure it's spot on. Um review some of David's staffing assumptions. review. We kind of double check.
>> I'll double check his work, you know, do we get the right person at the right step in the union contract for police? Just do some of those things, tidying up. Um, and then we I'll present we'll present the similar one next week to the commission. They'll give me a little bit of guidance.
>> Will we be making any money off of Milani Park in terms of water, sewer? >> Uh, >> I mean, they got to pay water. They got to pay water rates, but it's not going to be >> very much. Well, I mean, that's a public park with >> I don't know how they're going to fund a park with the this stuff goes through,
but >> maybe >> a little bit. >> Um, I mean, a little bit. It's nothing. Um, you know, the the development that they're proposing on their private properties, the Milani family. >> Yes. >> Uh, you know, that would help. I mean,
because those are going to be, >> you know, 504 to$50 million projects. That'll, you know, new tax base. That always helps a little bit. Even though there will be some limited, but that does help. >> But if they homestead it, >> well, if you if you create the units,
the the seven units that are currently under permit, you know, uh it'd be seven different people. So, some might be homesteaded, some wouldn't, but the values on those would be exceedingly higher than $250,000,
I believe. Those units will be I think she desires at some point I heard in conversation about 6 million a unit. So they'll be above the the 275 mark. >> Yeah. >> I have a few >> 250 I should say. Sorry. >> Few questions. >> Sure.
>> Uh one we there was a line item about u salaries and then 5 to 10%. >> It depends on contract. >> I understand. But the town was on a campaign for a while to to make this uh >> yes, >> you know, a place where people would
choose to work >> and make our salaries more competitive. >> How is that going? And where are we? Because >> five stars. >> No, 5 to 10% sounds >> we owe Jackie
>> actually reasonably generous in this day and age given everything that's going on. So that's >> So I mean we're moving forward. I do it annually. It's a a longer term process uh of trying to get us to, you know, kind of these averages. So, we go through a series of salary studies. Uh
they call it the PEPY, which is created by the Florida Public Human Resource. So, they they go through all of these municipality HR departments, ask what are your pay ranges? Um most of what we're doing is is it's the compensation
structure and ranges that we work within. We're so far behind. So, we've moved them in some fashion forward. Uh, some are at, you know, the first quartile. I know the commission and the mayor said we should be probably more towards average.
Some people have said even higher, but we're kind of staying at the average. And we look annually to see where uh those are. So, we're making good progress on getting those uh to the right spots, the positions classified in
the appropriate ranges. We've made commitments on health care. We provide a pension. Uh some of our other secondary benefits are good uh that are optional for for the employees. Um they get to work with the wonderful residents here in Highland Beach. That's
always you know what's hard to put a value on that, right? Um but yeah, so we're we're slowly moving now in this environment. I think is uh there's two steps, right? There's the salary table adjustment that
over the years now the commission I know the vice mayor is really strong on this is to hinge the salary range movement as it's in the table based on inflation. So the range changes. So a range today will be the range tomorrow will be
appropriately adjusted to inflation. Now, how an individual employee moves within that range is contingent upon merit increases year-over-year and then eventually uh it does happen here in government. I know some of the folks that I've brought in from the private
sector are surprised there are ceilings like you just once you get far enough into the process you it you only move annually but you can't there the range is kind of capped based on the cost of inflation. Um,
you know, we're making good progress. You know, there's still a handful of positions that need to be tweaked a bit. Few people that are probably a little bit underpaid by state averages. Everybody thinks they're underpaid. Don't I don't want to cast dispersions, but when you look at it collectively
across the state or the region, there's a few tweaks that we still need to make. I I don't know that this 5 to 10% range does account for that. Um, so we're we're still on target to get there and it's an annual process. So slowly we'll just it'll become a habit.
We'll get everybody in the right buckets, >> but our goal is still to uh get there where we're >> Yeah, we're we're getting there. It's hard >> competitive or even better so that we don't presumably lose good people because they can make a little bit more someplace else which is
>> I mean at some point in time you could always make money somewhere else if you change profession. So in the pos like there are are some job descriptions that you just you know you can look at it within the state what it's described are you know uh government isn't it's more
of a marathon career than a a sprint right you could go to the private sector do something maybe it pays more faster quick it's everything's a little bit different so within the m the civil service environment we try to keep everything structured appropriately and
I always use the word like market market rate. >> Mhm. >> I don't want to be, we don't want to be paying employees significantly less than an, you know, adjacent town's neck. It doesn't make any sense because you're never going to keep the talent or get the talent. So, we try to be appropriate. Yeah, Bokeh pays a little
bit more. Well, then then maybe you go to Bokeh, but at the same point, we're not vastly behind them or we're not leaps and bounds ahead of other communities in a so like we're in a good spot, a sweet spot as we're trying to create. So short of >> an art than a science.
>> Short answer though would say that you you feel comfortable that we're maybe a few positions not but basically where we want to be. I mean we've caught up at this point. I >> mean there's some positions that if I moved it to there would be it's kind of we got to be careful you know like okay >> there's some positions that need to be
significantly moved. What I mean by like steps in the ranges not so much their immediate pay but the ranges need to move. Uh, but we got to do that over time because if we moved everybody immediately to that, that big push on personnel services would be a
big cost. So, we're doing it overtime. >> I just thought that that was an important project. So, I just wanted to check and make sure that we were moving >> and the employees appreciate that statement really. I mean, it's especially when you start seeing these attacks and feelings, you kind of feel kind of beaten down in your career.
>> Um, and we do it. But I mean I I I'm frugal. I'm going to go with frugal today. If I got the fire chief in, he might use cheap, you know. So like I'm I'm a more a little more slower to move.
I'm not as I don't want to say I don't want to move every You can't do it all at once because the impact is too hard immediately on the budget. So you got to do this move over like a fiveyear period. And we're we're like in year three. So we're not done yet, but it'll move appropriately
uh over the next couple year. Well, it was supposed to, right? Uh, and now if the legislator or the stuff does, it might slow that a little bit. >> It might depress the overall markets, too. Uh, but I I don't know. I just think it's just
>> No, that's fine. >> Yeah. >> My second question, David. >> Yes. >> Um, water and sewer. We've had all planned, no surprises, but some fairly significant water and sewer increase rates over the
last like 5 years when they became independent. This was all part of the plan. I mean, all that. Uh, but it would appear as though some of their reserves are still like not necessarily headed in the right direction. Are you reasonably comfortable that at the projected, you
know, kind of 5% or at least slower rates of increases and that we've uh that we've had in recent years that we'll be uh self- sustaining the way we're going or are we going to need to put more money into that? And as a
ancillary question to that, uh how are our water and sewer rates these days compared to uh surrounding communities? Uh look, I'll answer your first question. Uh I think your sewer fund is
healthy, you know, but we had planned to uh accumulate cash reserves for this uh large sewer lining project which came which actually came in uh better than uh
than than we anticipated. Obviously, uh the water fund, we've benefited a little bit from that, from the paying off of debt service. The water fund, you know, uh it it has a lot more uh
expenditures. It has uh labor in there. It's got debt service. It's got capital. So, uh it's low it's it's a little bit lower than I would like. I would, but it's it's lower by probably uh 50 days. I would like to be at the 180 days of of
cash reserves. Uh so to answer your question, um I I I would like to see a little bit more uh increase in our water rates, not so much our sewer rates, but then again, you have to understand that sewer rates are capped uh based on based
on flow. Uh so to answer your question, um I it's a balancing act with uh property taxes, property values, water rates. Uh so uh to answer your question, I would like to see a little bit more of a bump there in water, but we'll we'll
finesse it. You know, we'll uh we'll we'll get there eventually. We the the water and sewer fund are self- sustaining and uh and that's where we wanted to be. Um,
now we just have to kind of plan a little bit more for for the future. But uh uh and then and then your your your last question was uh uh was uh remind me what your last question was again. I'm sorry sir.
>> It was how are we relating five years ago when we looked our water rates were actually pretty favorable compared to surrounding communities. >> Yes. how we pay for things obviously and I was curious as to uh >> yeah where we're at >> now compared to surrounding communities
>> I'll reach out to Rafelis Rafelis is the organization that does a Florida aerial uh uh as well as municipal surrounding areas of what everybody's water and
sewer rates per 5,000 gallons are. Uh let me see if I can get that report and uh I'll shoot it over to the committee and uh I'll show you where our rates are versus other surrounding communities in uh in Southeast Florida.
>> Yeah, that would be good. And I would I would point out that I mean everybody knows this already, but I mean our our water and sewer rates have several components. I mean one is the turnon fee and then the other one is the actual rate of uh usage. So it's both. So you
can certainly I mean if as required one could change either one or both of those uh you know if more or less money is required to uh to run those funds obviously. >> Yeah. Yeah. >> I mean one's a variable thing and one's
fixed. So >> Yes. Yep. Yep. >> Thank you. >> Yes sir. >> Uh David Ed Kornfeld quick question. Uh just one number I was looking at the total uh expenditures and in plus is 30
$30 million with this uh budget $33 million now and the property taxes will stay pretty much flat. I'm sure we don't have enough time to go line by line and not asking that. Is there
anything specific that drops the total cost of functioning by uh $3 million? >> Well, we're not we're not doing we're not doing uh as in in our FY27 budget, we're not doing as much capital
uh uh versus our 2026 budget. our 2026 budget, the budget we're in now, we uh we really were capital intensive uh with uh and so therefore a lot of those projects are at the beginning phase or midphase or almost going to be
complete for FY27. The projects don't necessarily go away. It's just that uh we're just anticipating slowing down some of our capital improvement projects. >> Okay. So you if I took a hard look it
would be in looking at that area to see the reduction in the uh from the 33 to the 30. That's all I want to know. Thank you. >> Yes sir. >> Are there any other questions to uh David or Marshall regarding the budget?
>> No. Are there any comments or concerns or anything that we specifically want to pass on to the It's very early in the process obviously. So, we're not making any kinds of formal recommendations other than I think at this point to say
that we're on track and people are considering the right things and we need to see how the uh next draft pans out. Does anybody have any additional comments? >> No. and particularly any specific concerns about anything that they would like to see addressed as the budget
process moves forward. Anybody? Okay. Hearing none, David. Thank you very much. >> Thank you, sir. >> All right. We will move on to the item D on the agenda which is discussion on the introduction
of the proposed resolution adopting procedures to the initiation and adoption of town ordinances and uh hopefully I'm hoping that everybody had a chance to read through this and also hopefully had the opportunity to hear
some of the descriptions either at previous town commission meetings by watching the appropriate portions or at the watching the presentation at the finance at the uh planning board uh meeting that
Lenelda pointed out to everybody so that uh we can move through this. I'm sure Marshall can answer questions if anybody has them, but um is there any I don't think it's necessary to read this thing, but is is
there any discussion comments uh that anyone like to make? I know that I've seen this now multiple times. It's kind of what the town has been following as a procedure for some years now. Uh but this is really just to codify it so
that it's uh it's in the ordinances and I think it plays well. I mean the the main goal was to make sure that there was a policy in place to give residents of the community ample and multiple opportunities to
participate in the process such that no one would be able to say how did this happen and how come I never heard about this before. Uh so some of this is required by the state as in their two readings. uh and some of it is additional steps uh with the town that
includes uh involvement where appropriate of the uh various advisory boards. Uh the two readings before it even goes for a first reading there's general discussions and the whole process I think is is nicely
laid out. I think the main I wouldn't say issues of contention but of discussion since this process started uh was probably some changes in the uh in the you know the shallows to the
wills to the maze kind of thing where initially it was a little bit more stringent that items would if you will or shall go to various advisory boards and that's been kind of adjusted to A and I think the
concern there was there would be some instances where if for example an advisory board couldn't get a quorum together to really act that the commission could still move ahead and the project if and the ordinance if necessary wouldn't be unduly
uh delayed in the circumstances where that was uh that was an issue. So if they're I mean my personal bias is I wouldn't bother to wordsmith this anymore. I'd leave it alone. I'm not sure that
changing a word here or there would I mean you can argue about those kinds of things forever. Uh but from the group is there anyone that has any comments that you know really more in the lines of you know I don't like this. Why are we doing
this? Here's how we can make it better. Does anybody have any uh any comments as to that? >> No. >> Nope. Anybody? So, can we go ahead then and say that uh we're in favor of things the way they are? >> Yes.
>> And that we would advise the commission to go ahead and uh and adopt this process. Everyone in favor? >> Yes. >> Yes. >> Okay. >> All right. Moving on in the agenda.
Is there any other items or comments or anything that anyone will like to make? Uh and we'll go in order. Mace, this was your first meeting. Anything to uh add or discuss? >> Not at this time. >> Ed?
>> Uh believe it or not, no. I really don't have any any comments. I think it's on the financial reporting side. is uh I've been on the uh this committee for five years, six years, seven years. This is the best we've gotten by far.
>> Okay. And Maggie is vice chair. >> Excellent. >> Any comments? >> And Susie, it's wonderful the way you presented it. And anyone that's watching, it's should be clear. >> Thank you.
>> Okay. Very good. Marshall, any any any last words? >> Just remain optimistic for me cuz uh >> No, we are we I >> I'll talk to my colleagues in these towns that are going to get washed out right away. >> Yeah, I don't think we're >> really brings the energy down, you know. But >> yeah, we're not going to get washed out.
>> We're not going to get washed here. All right, announcements. Next financial advisory board meeting date to be determined. We will leave it largely to uh Marshall and the planning folks in the commission when they would like us to uh
opine on something is uh data becomes available. I mean again I think this group will probably start having a lot more to say once we figure out what is indeed going on with the uh state's tax structure. >> Yeah. Um, but also in terms of just
routinely with this year's budget as uh as things uh move along. Um, >> I get a sense there'll be uh Excuse me. I'm sorry. >> No, go ahead. >> I get a sense there'll be some changes to the to the budget and we'd like to see at least I would like to have
another >> another meeting. It could be >> usually August. I need you guys, but I it's a big travel month for everybody and it's like our most it's the coolest month in Florida. So, um, August usually works well for everyone. Are folks around in August by chance?
>> Yeah, I was going to poll people generally the generalish time or I could then we'll, uh, Jackie will call the others, but um, what works best, you know? Um, is August just a no one's in town kind of thing or
>> I'm in town most of the time. >> You guys all travel. I know. I can see it in your eyes. I'm uh gone for one week in August, but I'm not sure the exact date yet. I'm on I'm around all of July, actually. And >> what? September. >> September. I'm here too.
>> It really depends on when do we get close to approving that budget and we want to have a good look at it before >> the last approval um is >> September. I have my calendar here. I'm like trying to guess. I have that written out. Um
>> well we have the the first hearing is uh September 10th and then the second hearing is September 24th. >> Yeah 24th is the date we adopt uh and se everything is finalized on the 24th of September barring uh commission uh changes.
Uh usually we have sometime in August like August 20th or August 11th we would do potentially a special budget meeting if necessary. That's usually if a a certain provision or number of health care comes in at wild numbers or the
commission says we got a you know major cuts. Um >> we got a hurricane >> or hurricane could really to break uh break that up on us. But um >> the the >> July could be a date. I wanted to send
it to the commission. I'll get a better feel next Tuesday because they're getting in the same I don't think David and I are going to change much on their presentation. So, they'll take a look at it and say good, bad, and different. I will share your concerns that maybe we take a closer look at capital projects
as we move forward. Um >> Oh, yeah. >> And then uh I'll leave it to them to see they may not change much of it unless you guys are like this budget's terrible then maybe we the process changes a little bit. um you seem generally
comfortable, right? I mean, it's not perfect, but generally comfortable. So, uh the commission will take a look at them. They want maybe they may say, "Hey, take a closer look or take a deeper dive into capital for us." Then I will be running back here to get you guys together capital program. And
>> and I think this group has expressed interest that if it is going to be like one of the capital projects that gets cut or not deferred, shall we say? >> Yep. uh that uh people here would be interested in uh learning more about that and chiming in.
>> Absolutely. >> So the only thing that I would ask is that uh depending on you know it fits best in staff schedule and the whole budget process that we be given dates of uh potential
dates as early as possible so that we can do our best to uh be here. And the other thing that I've discussed with both Lenelda and and Jacqueline is that we are strictly an advisory group. So we don't I mean legally we don't
decide anything. So that >> well we recommend things but I mean it's different than like a planning board or or the commission certainly. So, what we can do if we're having difficulty getting a a quorum, which can sometimes happen to this group in the summer
because we have two members that are basically gone during the summer. Um we can always do this and uh have it be a workshop type session where we can have the discussions if there's any
public interest people in the from the public can attend and uh you know have the same discussions but possibly with one less person here and um >> we'd like to have most of you here though. We would prefer to have everyone
here but uh sometimes in the summer it's been difficult. Okay, if there's no further business before the group then uh we will adjourn. Thank you for your attendance. You