We'll call our second FY27 budget workshop meeting to order for um Thursday, July 9th, 2026. 6. Will you please stand for the invocation and the pledge?
Heavenly Father, we come to you to review our second budget workshop meeting for fiscal year 2027. We thank you for the opportunity to serve our community. We ask for your wisdom and your guidance as we review the financial needs of our city to make decisions that
will shape its future. As we discuss the requests presented, help us to be thoughtful, transparent, accountable for every dollar spent and remain committed to serving with honesty, fairness, and excellence. All this we ask in his
precious name. Amen. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.
>> Brandy. >> All right. Yep. Here we are. [clears throat] So, here's our schedule. We're going to talk about special revenue funds, specifically discretionary sales tax, gas tax, building permits, housing assistance, the debt service fund, capital projects, the enterprise funds being electric,
gas, and airport. So, discretionary sales tax, this is the additional 1% that we pay on sales. Um, these can be this these funds can use on capital. It also can be used on police and fire expenditures. So, as you'll
see, we brought in we budgeted to bring in 3.7 million last year. We're going to bring in 4 million 62 and 27. We used most of this money and transferred to the general fund for police vehicle leases. We're using some of it for the fire SCBA apparatus and then the capital
items that we talked about the first meeting. Um the debt service fund for the police radios, the police cameras, and there's some IT hardware that we can use it on. So, that's for some of the debt in the debt service fund. for fleet. We use it for replacement vehicles, capital projects. We have a minimal things that we're using it on
because we don't have a huge capital project for fund for 27. And we also have 1.2 million that we're not allocating that we're going to put back in the we can use it for another project later down the road. >> Let me interrupt. >> So kind of how we DST money is we've had
certain things that we've charged our credit card on, right? So the general fund, the lease and the payments, that's all debt issues, those are credit card obligations. Got to pay that. The transfer, the debt service loan for for the the radios and again that's a that's
a credit card if you would. Got to pay that. Uh transfer the the fleet fund. Those are things that we want to purchase. So we talked about some of those in the general fund, different vehicles. So, all things being considered, those are
the vehicles we need. Got to pay that. And then we used a couple of things in the general fund, the 350 that you saw on Tuesday. Those are the things we're projecting where we've done special projects, shuffleboard courts, parking lots,
uh, Susan Street with mix of other stuff. That's where this money's coming from. So basically you we we don't we really haven't discussed a big project past some of the things that are on our deck. We still are in the midst of trying to get some of these big projects done like Susan Street, like the marina,
like the parking lot. So we've really been focused on getting those things done. We haven't talked about the next round of CIPs and what's available is the 1.2. So if you guys have a special project you want to tackle for 27, that's what's available. If you decide,
hey, let's let's cool our jets a little bit. Um, let's get these things done. Then that money goes in the hopper, it will probably mix again with 1.27 million in 20 in 28 and then you can talk about a $2.4 million project. So we
we staff is coming to you with no recommendations on that remaining 1.27. Does this table tell me the fund balance the million7 that's existing reserves? >> That was money that we took out of of
existing reserves to complete a project >> prior year prior year money. >> There's no carryover. I got you. >> Yeah. My guess is we probably took some money out for the Susan Street project from DST and that's what that represents. >> Okay. Moving on to gas tax. Again, this is a tax imposed on gas. So, we can use
this for streets, sidewalks. So, we're using um 800,000 to transfer to the general fund for the street light utility bill. That does not fully cover that bill, but we're using 800,000. And then 310 is being transferred to the capital projects fund to do some road resurfacing, sidewalks, and traffic
signal maintenance. >> So, that 310 is in addition to the what we just have in reserve as well. No, those those and so we're gettingund 1.1 million into the into the city from
gas tax monies and we're spending all of it. We're spending $800,000 to light the street lights. So all the street lights through town goes to Leburg Electric and we got to pay that light bill. So we pay Leburg Electric $800,000 to put the
downtown street lights on and then what's left $310,000 potholes, asphalt replacement. So they're both transfers into the general fund or the special projects fund that covers an expense that we use with gas money. Those are so those are just those
are accounting type of notations where gas money is being transferred to spend it on because it's an earmarked revenue. >> We're spending gas money on electric utility issues.
>> Street lights. That's not an electric utility issue. The provider. So if Duke was our provider, we would be paying Duke $1.6 million. [laughter] >> Okay. >> Couldn't help it. I'm sorry. to light our street lights, but instead we're paying our own electric department
$800,000 [clears throat] to light our streets. >> Refresh my misunderstood. >> Refresh my memory. What's traffic signal rehabilitation? What would that be? >> I believe >> uh that's probably be our contract with the county. >> I might be going into intersections and improving those type of things. It's
more of a capital >> project cost street lights and stuff >> or contract cost to fix the street lights that we maintain. >> Okay. >> Okay. Moving on to building permits. Here's the building permits cash graph.
Remember we were we raised rates October in October for 7 75% increase. You can see they are getting some money in. Um so that graph is growing. And here is the revenues and the
expenses. Um it's pretty much same budget other than um the there is a reserve in 27. So there will be a little bit of money there if they need it. Um but that really otherwise it's very similar budget. >> The only thing I'll throw in there just
for an FYI um sometime in fiscal year 27 we expect it to be the first quarter of 27. So January uh we anticipate the villages um and [clears throat] and Benderson projects which are the villages the the we anticipate a lot of
commercial development around the 470 turnpike interchange. The first big one's the hospital. So um we'll probably need contract services or they might do some private inspections. So we might be back to you with some type of budget
adjustment on how we tackle that. And >> I have got have a couple questions on on this budget. >> Yeah, I just generally scroll through and look at the any significant changes in the line item spending. Uh any idea
what travel expense exceeded it jumped 100%. >> No. What what are the numbers from from what to what? >> From 38 to 75. >> Okay. >> Which page are you on? >> Uh 254. I I'll get you a better answer for that,
Commissioner. >> Okay. And the second question I had is uh my second question is why did publication and membership jump 300%. From 7,500 to 30,000? >> Okay, I'll double check on that too.
I'll get you an answer by the meeting. >> Okay. >> That meeting being next regular meeting. >> That's fine. >> Good. All right. Moving on to housing assistance. >> The first one was travel question, right? >> Yes. >> And that would be travel for
>> probably different training for men meetings directors. That's what I'm saying. Okay. Ready? All right. Moving on to housing assistance. So, this fund receives the revenue from the Misspaw Simmons um apartments and one house. So, you can
see it's steadily just kind of staying the same, growing a little bit. This is basically the money in and out for the for managing the Miss Pimman's apartment complex and the h with that house on >> it's the one by the resource center there. >> The goal is to move the people out as
quickly to become homeowners. This is the same setup, right? >> Right. The the the goal is to to train and make homeowners out of the renters and and have rotation at the apartment complex. That's a different issue than financial, but yes, that's the goal.
>> I just want to make sure I'm at the right place. >> Yep. >> Yeah. >> Cuz no one has moved. >> How many properties do we own again? Like that >> one house. >> And what's there 20 or four or 12?
>> 12. I thought >> 12 apartments. >> Yeah. >> [clears throat] >> And we're paid 164,000 for managing this. >> Yes. >> 164,000 man. >> No, the complex.
>> It's >> 12 12 apartments. And I think only one person has moved. >> Yeah, I think so. >> That's pretty. >> Is this funny money? I guess I'm I'm not following the math.
Where's the money from from and to? >> Let me see. Let me see. I'm looking at >> that's the ship money. >> The 258 >> is you're getting >> I just heard like a piece of like a house and a complex. >> You talking about this 15 6050 number? >> 164 on the left side.
>> It's the Yeah, the county pays a portion. >> It's >> Oh, the 167. the count. >> Yeah, that's miscellaneous revenue. That's ship money and they pay a percentage question. >> No, but that's that was this year's number. This is the budget
>> within a certain time like a year. >> Both of them seem high. >> That that's ship money for the rent. >> Oh, okay. It's rent. >> Yeah. >> It's a subsidy. It's federal. It's federal money that comes in to help people pay their rent. >> Is there a requirement for how long they
have to be there or what their the time frame? >> The goal is a year. What's the average time frame? >> I don't know. >> Yeah, if we can get a breakdown of that. Are we the only city that does this? >> No, >> we're not. >> No, there it's broken down into different stuff. There could be different housing authorities where you
have a housing authority board that's appointed by a county or city commission. You could have city internally. So, it kind of looks like electric. Some cities have a housing program, some don't. Well, and if if we're not turning over after a year, is this a real benefit to us that if we're just leaving them in there for five plus
years? Is it is the goal are we meeting the goal? >> Ultimately, that's for you to decide and we will get you the [laughter] information. >> Okay. Now, let me get a clarification again. You said how much you say for management fees? Is this >> It's not management fees. It's it's a
subsidy for rent. >> Okay. I monkey that up. We charge $1,200 a month for a two-bedroom apartment. >> Okay. >> So, the tenants receive a federal subsidy. And so, that's ship money. It's an acronym. It's a It's a housing
subsidy that comes from HUD. >> Okay. That's okay. >> Yeah. So, we're not getting paid to manage that. It's >> But we're not paying somebody to manage. Okay. >> No. [laughter] >> No. Be a nice job. >> Are you required to do any kind of programming or anything to help them get
to that point? Yeah, I believe there are and and we do that at the resource center where we set up programs to to to how home ownership, balancing your checkbook, life skills, those type of things. So, we you know, that was that was one of the reasons and those are
some of the programs that Sandra manages at the resource center. So, we I'll get you a better accounting of, you know, the stays and, you know, how long we've had tenants. Um I although I hear the the concerns that we we've had people stay there too long, I can tell you in
the past few years it's actually an improvement from where we've been in the past. So I I will get you more details on average stays and and and better what we do as far as the service levels. I'll I'll present that to you on the side.
>> Of course side is publicly but at another time. >> All right. Moving on to the debt service fund. Um, this is just an in-n-out fund. Um, so you'll get money, we get money from the general fund into this fund, discretionary sales tax. We saw that and
these are the um different bonds and debt that we have. I've listed at the bottom. We do have one that will be done this year for the body cameras. So, that won't go away. I would assume they're going to come back with something else, but that is one. So, just a fund that we
pay all the debt out of. Moving on to capital projects. Here is the ongoing capital projects that we have going on. So you can see right now we have 18.8 million right now in ongoing projects. Uh most of those are allocated or we know what they're going to be paid out. So the only amount
that's left right now is the 2.9 that we're still working on. >> This is kind of a and sorry to interrupt. This is kind of a good slide to show you kind of what we have going on and part of the reason why we've left that 1.2 million unallocated. So the public works department really takes on
a big load with managing these projects. And then, you know, they're also tackling the growth issues and trying to get out and inspect these things. So, right there you see kind of the projects we're working on, the the um Susan Street, the marina. Um those two
project, the downtown parking lot, those three projects are pretty big in and of itself. So, it probably leaving that 1.2 million there for a little bit or coming back maybe halfway through the fiscal year to figure out new projects. the the the elections are coming up as well. So,
there may be some shifting of goals with the commission. So, it kind of gives us some a little bit of time to kind of finish some of these up before you decide where you want to go with the next round of DST monies. So, again, as Brandy said, this is this is not a
proprietary fund or an operating fund. It's it's more of an accounting fund where by statute, we have to shift monies into an account and then pay for it. So all these numbers are repeats that you've already seen whether it's in the general fund or uh the DST or gas
money. So it's kind of accounting type of fund. >> Okay. >> I have to comment that I just saw the picture of Susan Street as of June 29. >> Yeah. So I put some pictures here. I'm sorry.
>> You're taking I'm taking away all my fun here. So, we have here's the uh end of June picture of the marina. Uh they're estimating completion September 2026. So, that's exciting. >> Are the docks they're coming later though, right? >> The docks are getting started on now. So, there's I believe the number is 40
new slips. Um those should be started in construction as well. They should be next I give it I give it say 120 days >> on everything. The building's wrapping up, the docks are starting, >> and then yes, this these are very
exciting. These are the end of June. Estimated completion um November 26 Street pictures here. So, it's it's coming along fast. And then um so then in 27, we really
don't it's just the normal projects that we normally have. There's nothing new really. and and all the funding is coming from gas tax or discretionary sales tax. So, moving on to the enterprise funds, moving on to electric. So, here is our stresses on the electric
fund. We've kind of gone over these, you know, several times, but we have aggressive CIPs, and those CIPs also are affected by growth, subdivisions, and commercial projects coming in. inflation. We've all talked about how everything costs more, materials, salaries. Um, we always have to look at
the wholesale KWH purchase estimates trying to figure out what that number is. Um, the transfer of the general fund has been reduced. Um, so that's actually a good thing. So, that gives them should give them more money. Um, and then the operational needs, they always ask for tree trimming. They always need Osmos
pole replacements. And this year we did give them one groundsman position. So um this is just their historical capital projects. Um you can see we spent quite a bit and then um we are dropping them to 4.9 in 27. So
here are the capital projects in 27. Um I like to talk about our three-legged stool approach. Um these I would say this is more like just broken breaking what what is broken, you know, because there's not a lot of new system upgrades in here. Um, also the new projects tend
to be an issue because we never know what new projects are coming in. So, this is the CIP that we have to try to tackle all that. Um, we have no rate increase for 27. Um, you can see that renegotiating the advance the AMI project saved us quite a bit of money. You can see that in the
budget 323,000. Um, they are trying to keep doing the meter program. We have cut that back a little bit. Um, so but they are working on trying to replace those older smart grid meters. Um, we some exciting news that Brad and I know Chris Atkins have been working on. Department of Energy
grant has been awarded to us for the north substation transformer. Um, you'll remember that was in the budget. We had it 26, no it was 25 and 26. We actually have 2 million in the budget now. So this would pay for 1.7 of that. So the city would actually not have to spend
all those funds. Our amount would be the 598 522. The paperwork's to come, >> but this is what we've been told. So, and they also have a pending approval on a project that they're working on 702 and 703 reconductor project. I believe they have started some work on this. So, they want to get clarity on that, but
that one would be one the total project is 1.2 million and we would get 936 for that. Another one that's budgeted. >> So, that is good for the electric fund and good for their cash because that'll give them quite a bit that they won't have to spend.
Al, what's a reconductor project? >> Uh, we change out the wire. >> Um, we always look at power supply costs. You can see in 26 the megawatts about 9327 to the bottom on the right. And then next year we're assuming maybe
it'll be 84.19. So you do see that electric budget going down because the purchase costs aren't as much. So that's part of why it's going down. So this is the cash graph for the electric fund. You can see we do have a lot of um projects being encumbered.
Part of that is the transformer for 2 million and the L72 and three. So that one's partly in there too. So that would decrease that number. So we would have a funding source for it. So that would help that cash graph with the DOE grants coming in. That's a really good thing.
Here's the rates for May. And um you can see we would fall right in between FPL and Mount Dora if we put them in order um for the 1000 KW. Duke did go down a little bit, but I believe that was because the storm recovery went away. So that's why theirs
went down just a little bit. And then you'll see there's the megawatts where we've been as far as megawwatts and you know how bad they've been and then gone down. So it's kind of just recapping the cost of purchase power, everything we've been through. I have to comment, you know, based on
what I've dealt with electric rates over my term, but we are below Duke Seco and FPNL. >> We are below. Yes. And Mount Door special. Um there's there's a few municipal cor there few municipal electric utilities in the state that I
would kind of call their kind of freeranging, meaning they they float around and get surplus contracts. Um it might even be from the all requirements project. and um uh barters.
>> Well, when you Yes, but there's also there's they're a double-edged sword because when the shopping's good, you get a nice rate, but when the shopping's bad, your rate really goes high. And so, I think what you're going to see probably in the next several years, they
don't have the stability of us or the other member cities in the all requirements project. So, yeah, our rates a little bit more than Mount Dora. Yeah, it might be a little bit more than Barto. Check back in in probably two or three years as we see volatilities in the market, as we see capacity soaking
up. Because they're not in a long-term vehicle, that rate's not going to stay as stable as ours is. >> So, who's [clears throat] Mount Dora buy their power from? It's not not >> I think a little bit of everybody. I can't speak um specifically. I think
they have a couple surplus contracts. I think they buy some surplus prior from FMPA. I think they get a little bit from Duke. So, they're kind of again they they kind of surf. >> That's interesting. Okay. Thank you. >> Um I would not recommend that. I It's a of course we don't have the choice. We're I go out on a limb and say we're
one of the founding members of the all requirements project and so we've been locked into that probably since the 80s. Um so, um we have we've had long-term stability. So, I mean, you know, when when when the price is good, it's attractive, but like I say, when the
price is bad, the price is bad. So, and and and kind of where Jacob Williams and FNPA is at, I think they're they're a little bit concerned for some of those sister cities that are are free floaters. So, >> that's interesting. I never heard that
term before, but free floaters. >> I made it up. [laughter] >> Um, no, no. I historically our electric utility has always done a great job. Um we we got that bad press when I guess we were one of the first ones to raise our rates. You know then you know no one noticed when ours went down they passed
us and all that but I mean but I guess I'm bragging on our electric utility has always been a very good one. Done a great job. >> All right. And then here is the electric revenues. Um miscellaneous revenues is the interest. We're able to budget a little more because their interest has
been good. But you'll see the charges for services going down with the correlation with the purchase power. So that's really it's goes hand in hand. Here is the electric expenses. So purchase power is down 3.6 million.
And um distribution and capital projects have a direct effect. So if we budget less capital projects, it affects distribution because the guys aren't working on the capital. So that's why distribution looks a little higher. But it's because the capital projects are down. So those two work together as well.
Any other questions on electric? Moving on to gas. Here is the gas cash graph just continuing to grow. The incumbrance does show the amount for the building. So,
they're doing good still. So, the new you approved the new gas building in May. So, that um actually is 3.6 six that is on that graph to come from gas and 1.5 from the general fund. >> That's another big capital project. Again, even though there's no
correlation and I and I failed to mention it, even though there's no correlation with the DST project monies, that's a project that public works is also managing. So that's the so we're keeping public works busy. So they take care of the facilities and then the facilities are turned over to the other
department. So, that's that's another kind of busy project. Even though gas is paying for it, public works is instrumental in in uh inspections and making sure the contractors are performing and all that kind of stuff. So, that's a that's another project. So, if you add the other projects to the
list, that's where we start to get stretched thin. So, I'm chirping a little bit. Public works has got a lot of work to do in 27. >> You did just hire a new deputy, right, though? >> I'm not sure. I'll follow up with you, >> Brenda. >> Oh, yes. Yes. Yeah. Bren. Yes. Yes. >> Brenda. >> Yes. Yes.
>> Yes. Yes. >> Yes. >> That should help. >> And she's part of the project management team. >> So, they're major capital projects. They're um they're trying to get um additional money for CR33. That's a mainline extension. And then we're
always getting ready for a possible villages expansion to the high pressure line and Sable Trail number two. So, those are just kind of getting ready in case we have to do those projects. And here's their revenues. the revenues are up about $4 million. Um
really the rest of it's about the same. Um the gas purchases are also up about $475,000. Um the other has to do with the payment that we have to pay to South Sumpre gas. So when the revenues go up, there's more of a payment that we have to pay out there. So that's another correlation.
So that is and you can see their capital projects went down a little bit as well. So there's not a ton of capital projects. And now we're off to airport. Airport's cash graph is beautiful. Just
I mean just keeps going up here. Um I did want to note that um in November to March, you'll see that drop that had to do with working on taxiway Delta and veterans infrastructure projects. So Tracy spends all the money, then she turns around and gets reimbursed, which that's why you see in April that it ticked back up because we got in the money.
>> I'm going to throw this out here. I know I've mentioned it numerous times. I would like to see veterans put out to procurement. Thank you. Veterans is completed and we're still waiting to put that out to procurement or for bidding for those properties. Thank you.
>> Uh the new property next to the fire station out there at the airport. >> Oh, okay. >> We have four pad ready sites that need to go to procurement so we can get those built and going. >> Okay. And here is the revenues. Um the intergovernmental you'll see on the capital is because we do have less grant
funded projects. So that's why the intergovernmental went down. And in 27 we do have a little bit less of a reserve and the capital projects like I said did go down. We're going to look at those. And here is the airport capital projects. The airfield signage
replacement is a 8020 grant. The city being 20 and the state being 80. So that's that project. The east taxi lane line reconstruction is a 8020 as well. City paying 20 and the state as well paying 80%.
So you can see of a $2.3 million budget, the state is kicking in 1.5. And she does have some equipment as well that Tracy needed. So that's it unless there's any other questions. Good. Thank you.
>> Mhm. >> That's all we have for you on on for tonight. >> Anyone else? >> Motion to adjourn. >> Motion to second. Thank you, staff. [laughter]