We'll call the Tuesday, July 15th uh budget session to order. If you would please stand for the invocation and pledge. Dear heavenly father, we come to you this evening. We ask that you give us wisdom to make the best decisions for the city of Leburg in your precious name. Amen.
Amen. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Next, we'll move to the fiscal year 2025
2026 budget workshop presentation. Night three. Yes, night three. Brandy is going to be doing the presentation. M M yes final budget workshop.
Okay. All right. So, here's the schedule. We're going to go over water, wastewater, solid waste, storm water, airport, the pension funds, internal service funds, which would be health insurance, workers comp, and fleet.
Sure. Did anybody here drive a BMW song? All right. So, we will start with water. I have to remember it switches. Here is the cash graph for water. Um, right now we're projecting 14.7 million.
The required reserve is around 3.8, but we have current projects that are around 4.6. 6 that are in the budget now and then next year we're trying to use 1.8. We are projecting a 10% rate increase for fiscal year 26. That would be for
aging infrastructure and treatment costs that have just continued to go up. Um we would still be the current you can see the current at the top and then the proposed with the 10% increase would put us couple down. You can see toward the bottom averages were still a lot lower
than the averages. Um, I know that a rate study was done in 2014. Um, I cannot tell you the last time we've increased water and wastewater rates, which is we're proposing both. I know that rate study down that was done in 2014 was not implemented and we left the rates alone. So, I'm just saying it's
been a really long time since we've done a full-blown rate study. And so, we feel like now we need to increase them and we would still be one of the lowest in the area. Here are the revenues. um a little bit up from last year. As you
can see, we are using some fund balance. I talked about the 1.8 million which would come from cash which would affect that cash graph. And the expenses um they are up a little bit. Um a lot of it is capital projects. You can see the
375 went to 3.8 million. The rest of them are pretty much the same. Um the current capital projects going on right now, we have the turnpike widening relocation which is a 90% design. Um the stock subdivision design, they're working with the engineer right now.
Tron Creek is a developer contributed project. So they're going to put the infrastructure in and then we're going to pay them for that. The elevated tank inspection, they're they've done the tanks at Maine and they're working on the ones at the mall from what I'm told. And the main water treatment generator
is here just in time for hurricane season. And they say they are hooking that up now. Brandy, quick question. What is the stock subdivision? Um, so a stock subdivision um it is um I'm Okay, so they need to move the lines
from the back to the front. I guess there's a lot of old lines that are in the back. They want to move to the front. It's a lot of old lines in there and there's low fire flow. So they're worried about some of the water flow in there. So that's the proposed project. Thank you.
And then for um 26, we're gonna Excuse me. Can you flip back? Can you explain what where's the main when you say main WTP generator? Is that the water treatment plant? Right. Where we Okay. All right. I just want to make sure. So we're getting a generator there.
Yeah. Okay. Okay. Sorry. Just want to make sure. Yep. And then for 26, um, we're doing continuing down 27 with the southern infrastructure for the highway main 27 main upgrade for 2 million. Bentley
Road, we're going to replace a 12-in main. That's just old lines that we're replacing. Stock subdivision, you'll see here, we're going to come in with the construction to go. We're going to do the design, then do construction in next year. Um, and then just the normal stuff that we have going on that we do every year.
So, those are the capital projects for water. Any questions on water? I don't want to get bogged down, but you know, it seems like a pretty big hit, you know, with the turnpike requiring us to move it at 3.8. I mean, there's I think you've said before there's really
no options there, right? No options. That's that's uh required by the state as as the state's putting in those new ingress egress ramps on and widening the turnpike. They need us to move our facilities. And in fact, they actually work with us by moving some stuff around to lowering our financial
burden, but we got to move our utilities out of their way. It's going to impact gas, water, and sewer. And you said that before. I just I think I just when I saw that big number, I just had to question it a little bit. Okay. Thank you. No problem. Any other questions on water?
All right. Moving on to wastewater. All right. Wastewater. So, you remember we we're upgrading the Turnpike plant, so we have a lot of money. We're starting to dwindle down that money. Um, we have a required reserve of 4.5 million. Um, there's 9.3 in current
projects. And we also have the Safi funds, which is 20 million that the city has been awarded. This does not reflect that because we're still waiting to figure out it was money that was left over from hurricane relief funds. Um, that we're just we haven't put that into the budget because we're waiting on a list of projects. So we'll get those
added in. This fund is also we are also proposing a 10% increase for fiscal year 26. Same thing has rates have not been increased in many many many years. Um again even with the current we're still in one of the lowest and then even with the 10% we
don't even move. So those are kind of where the rates are around in the area. Again, just a lot of aging infrastructure and operating costs. All right, these are the wastewater revenues. Just to clarify, licenses and
permits are impact fees. We got in the habit of budgeting impact fees. I don't like to budget impact fees because we turn around have to give them back to the developer. So, in 26, we did not budget any impact fees. We do get them in, but it's not like we can turn around and use them for something. So, we stopped budgeting those. So that's kind
of why you see that reduction there. U miscellaneous revenues is important to note. You can see we got 1.4 million. That is interest money that we've gotten, but our cash is going down. So we're not going to have as much interest coming in. So that's why there's a decrease in the miscellaneous revenue.
Wastewater expenses. Um pretty much everything's even capital projects are not much of a change unless you had any questions. I didn't really have any big um notes on expenses. They're pretty in line.
One thing you will notice in water and wastewater is um the contract services um that was in like their collections and I believe distributions have now been moved to other because it's now in-house for meter reading. So you'll see some of that shifting around. There were notes in the books on that. So that made some of the divisions move around a
little bit. Current capital projects, the Venetian Isisle system upgrade, we are 70% done and should be done in October of 25 this year. Um the Turnpike widening, this is
again like water, it's 90% design, got another 1.5 million there. And then the um turnpike plan expansion, we are they're saying it'll be done by October of 25. We do expect savings on this, maybe around 2 million. Um, but we won't
know until we get done with the project. So, those projects would then affect the cash as well because we got to pull those up. Capital projects. There's not that much in here because we're planning on getting that 20 million added in um from the supplemental hurricane Fiona and Ian
funding that we've been awarded that I talked about that. Right now they're working with Dubberry to get a list of projects um which would be like upgrade the canal plant and the north sewer system to include the lift stations. So those are some of the projects that they're having Dupberry look at. So once they get me a list of projects, we'll
put that in. So that's why you're not seeing a lot of capital projects because we know those will get added into the budget. And you feel good about the 20 million? We've been awarded as far as I know. Okay. That's my question right there.
Pal, you feel pretty confident in the 20. Yeah, it's awarded the I didn't realize it had been awarded. Okay. Yeah, we're working with the state on different things where we'll spend it. And the first one is getting back with an engineer to come up with concepts. We see most of it going into improvements
at um at the at the canal plant, canal plant versus turnpike plant and other infrastructure change out. Yeah. Thank you. And that was it for wastewater unless you had any questions.
Moving on to solid waste. Um solid waste cash is down, but that is because of um Hurricane Milton. We are awaiting $750,000 for Hurricane Milton, which will bring this back up. A reserve on this is 1.4 million. So, we're right
there. Um but that'll come back in. So, that'll put the cash back up, but we've just been we're waiting on the controller to sign off some of the FEMA funds. We're right at the last step. We just haven't gotten payment from them. So, that'll help this fund out. You anticipate when we'll get those or have an idea?
Any day. I mean, I'm hoping any day. I mean, we've beenounding them and they keep telling us everyone's in the same boat. Okay. And so, I was hoping in the next month we would have them. I thought we would had them by now, honestly. So, we haven't gotten to any yet. So, they're all kind of at the last step. So, solid waste rates um are proposed to go
up 5%. Again, we're at the bottom here. Um, this is due to increased personnel costs. Tipping fees have gone up and increased operating costs is why we're proposing this increase. [Applause]
And then these revenues are different than your book because we went back and we added in the $20,000 for the arts civic funding which is paid out of solid waste. So this did change a little bit. So I didn't want you to wonder why the numbers were different. And then here is the expenses that we
have. Um, and you'll see that commercial went up. That reflects the landfill tipping cost. That is the big increase that's in there. And then here's the adjusted um sheet for the civic funding which shows the art festival getting 20,000 more than
they did the year before. So that was why that one was changed. And it is paid out solid waste. Okay, any questions on solid waste? I know we had talked about the cemeteries. Is there a way to maybe get a preliminary number before the budget
is signed off on October one on us managing it or having a contractor manage it or I get one? Yeah, it's like 13. That's That's a lot of That's a That's more than a full-time employee. Couple full-time employees. That's for both cemeteries, though,
right? Yes. Yes. Yeah, I'm just curious. Thank you. Moving on to storm water. Storm water. Here's the cash graph. The reserve is $57,000. As you can see, we have quite a bit of money out there. Um, one thing to note
is that we do need to update the storm water master plan. So, that'll help drive upcoming projects. So, that's one thing that would help us identify more projects that we could do. So, that is one thing that we're looking at. Um, these revenues are adjusted because we did go and put um Berry Park storm
water improvements in for $150,000. So, we did increase this um I believe it was using more of the cash to do that project. So, I believe was the change to make that work. And then here's your expenses which you can see. One question. Will that include the
other area reservoir down what flooded off of Tallaladega and S? So, that's all connected this one. Okay. Thank you. So then you'll see this was adjusted from the book. The capital projects went up that 150 to allow for that.
And then here are the projects that we're proposing. And there's the Berry Park. So it's really a simple plan, but like I said, they're hoping to update where we're going next. [Applause]
Any questions on storm water? Okay. Airport. Airport has lots of cash. So, airport um you'll see from October 24 to 25 that reflects the Blue Rock sale of 2.6 million. So, the cash is growing. Um their reserve is only $370,000.
So, there's money in this fund. Um important to note on the airport revenues, the intergovernmental are grants. So, the increase is, you know, we're doing more projects. You'll have more um grant revenue. So that's what that increases. Other than that, it's relatively the same
and there's the expenses. Uh you will note that the reserve went up. So we are planning on putting more money away than the year before. So and here's the capital projects that we're are currently working on which the corporate hangers are out to bid um next
month. The fuel farm will go to DRC next month and we have approved grants on both of those. So those projects are good. The Veterans Road infrastructure construction is out to bid. It should be back at the end of the month. And the taxiway delta A1 A2 A3 construction, they're waiting, she's waiting on the
grant and then um they already have the contractor selected. So that project should be moving forward. But there's a lot of current projects going on right now. So but you can see a lot of that is funded through grants. So it's not that much cash that you're going to use. So, good
deal. And then the capital projects for 26 land acquisition if something came across that Tracy could get. And then you'll see where we have a roof replacement for the Sunire Aviation Flight School. And then um you can see the other improvements. The wildlife fence and the taxiway rehab engineering
was in the prior year or actually I believe it's in this year. So those are the projects that would be in 26. Brandy tell me again land acquisitions. What what are we talking about there? um it might just move on down the road, but in the event that uh the two thoughts
are either the condo association, which are the private units that okay, in case there was an opportunity um and then if there was an opportunity to develop um and get a curb cut off of 441 on the south side of runway 13, there's
a couple of private land owners there that have marketed their property in the past. I don't know if they're still currently on the market, but they were they were really ridiculously high. But if it came down, it also borders um
right there. So, it would be a benefit. You would still have to exit out on 441 and come down to get to like or could you internally It would it would be to come It would be a third entrance into the property on
the south. Well, uh, on the this side of what? On this side of runway 13. Um, because if we ever developed that side of the runway, we can't utilize airport view and cross over the safety area vehicles.
So, [Applause] any other questions on airport? All right. So, now we can talk about the pension funds. So, all three funds are very well funded. You can see the police funding ratio is 84.1%,
fire is 85.2 and the general employees is at 98.1. So they are very highly funded. The police pension we'll start with. Um so important to note that the
contribution did go up. So when the actuary did the report um we were told we needed 14.81% 81% but the changes that you approved last night makes the percentage now be 21.97% which was changing the multiplier and
adding some of the drop benefits. So that's why you see the employer contribution going up. So the increase to the employer is 560871. So that is the increase that you'll see there. Those are the revenues there. This is kind of where we've been where
we're at for the um dollars that we spent or put into the plan. And then these are the expenses. Really, it's just a budget for me and um anything that's reserved is just helping the plan and the actuary plans on that. So, it's just me to have a budget in there to pay the bills and stuff like that. So,
[Applause] and then the fire pension. So, fire um so actually this one the the percentage decreased um from 42.67 to 41.26. We are working through that percentage because it seems high to us.
So, we have some meetings with actuary because we think they may be calculating it differently than what we would like. So, we're going to work through some of that. I think that percentage is a little high and it may not be accurate, but we're working through that. But regardless, the dollar amount is the 1.3 million that the city would have to
contribute. And then we did increase this by 132763 to add some of the benefits that you approved last night, like the 100 hours of overtime and the drop benefit. Just trying to add some extra because we know that will be a hit to the budget next year. And it is important to note that the
members you'll see their their contribution is going up. It went from the six and a half to the seven seven and a half. So that's why the employee contribution went up [Applause] contributions to the fund and dollars
and then there's the expenses. Any questions on fire pension? general employees pension. Um, so this is the the fund where we've been overfunding in 2023 and 24. Um, and then in 25 as well, we we overfunded. So this
year it dropped to $224,000 contribution that we had to make. So we felt like this was the year that we could say, okay, we can take some of that money and do something else with the 401 program. which is why we've dropped this contribution to 250 cuz it's only required to be 224 something
and then we're going to do the three up to 3% match for the employees. So that's how we got that money was by reducing this contribution. So that's why you see the employer contribution going down and you saw it's
98.1% funded. So we don't see that being any issue. [Applause] And there's graphically where we've been and where we are. So freezing it way back when. You can see
what it did. So there's 100, like we talked about, 100 active employees and there's about 600 people total that have a benefit in there. So there is the expenses, internal service funds,
health insurance. Okay, so health insurance, here's the cash graph. Um, health insurance is continuing to be a struggle for us. Um, we have a reserve of 1.6 million. So, we're a little bit below the reserve, but one thing I want to tell you on this fund is that the
city contributes what they're going to contribute regardless of like the employees. So, we build in rates, but if the city says you're going to contribute, we budgeted to contribute 2.2 million, we're going to give 2.2 million. So, this graph doesn't fully reflect that contribution at the end of the year, that I'll have to do to true that up because we let payroll go and
then we true it up at the end of the year. So, we're constantly watching this. Um, you can see that the health insurance revenue, the employee, um, is very steady. The employer is not much different. You know, it's just right around the same amount of money. The
retiree contribution has gone down a little bit, but that is because, I'll show you on the next slide, the retirees that are on the insurance has gone way down. So on October 1st of 2021, we made a change and we were had about 80 people then and now we're down to 33 people
retirees that are on the plan. So that change did make a lot of people go ahead and get off the plan and find another way to have insurance. So So that's why you see some of the contributions going down for the retirees claims. We just got claims yesterday for
June and they were up. They were 9. You can see that spike there. the for June it's $929,000. Um we're constantly monitoring this. I mean every month it comes in we're looking at it trying to figure out the best plan that we can. Everybody's well I know Melissa's been trying to come up
with ideas. Um it's just not much right now. We're watching you know is there somebody that in our stop loss so that we don't have to pay after a certain amount but it's just a lot of claims right now and they're very expensive. So we're constantly watching it. You may remember last year we had to true it up with some general fund money. I would say if we have to do it again this year
maybe we use the various funds whatever fund the employees are in and allocate it out because you know the funds do have cash but we may have to sh up the sub fund at the end of the year. We're not sure that we have enough budget for the claims. We are not proposing rate changes for any you know any of the
health insurance rates. So, is is this due to like um I guess I know this is crazy, more people getting sicker or more serious illnesses that we're having to cover. I mean, how do you It's the latter. The the claim we just
received a lot of claims and we've had a good handful of claims that are substantial payments. So, I think and I can't underscore enough what a great benefit this is for the employees. We've had um a number of high claims. You know, we funded it with
cash and I don't think we've changed the employee contribution. 22 I think was the last time we did it. We changed it in 22. Some we messed with the rates. Yeah. So, but I mean so I that that that's really the end of the statement. It's it's been a great
benefit. Um we've been very cautious about increasing the cost of employees while we continue to cover the rising medical costs. So each year we keep saying we'll come back waiting for a good year. So that good year's got to be coming around. Do you think it's since co or still been
No, I the the the the claims are HIPPA stuff. We we do have that info. So we really can't share it. But but it's it you know they're they're catastrophic medical things not related to COVID. That's what Okay. That's what I was trying to figure out. Okay.
Oh, did you want Brown and Brown to speak? They're back there. Not unless you guys wanted to add. Okay. I mean, now it's just general to see if there more people. I was just make sure they were here. So, I didn't know. Yep. So, that's what that looks like. And um here is the revenues. So, you can see
the employees are up a little bit. This employer right here, the 5.4 to 5.7. So, what I'm trying at the end of the year I we will pull over 5.7 million and give it to the fund. So, I mean, we always make it whole. So, that's kind of where we're at. And you
can see the retirees went down from 518 to 456. So, and then these are the expenses. Um, the Blue Cross Blue Shield or the claims, that's the number that is that the health insurance number. And then the wellness clinic is up a little bit, but we are as adding physical therapy. I
think actually physical therapist starts this week. So, that is an additional service that you had approved this year. We've just taken a long time to get someone in there. So that's another service to try to help people get some physical therapy. They're also going to do like annual physicals for police and fire so that we don't have to pay someone else to do that. And when new
employees come in, they can go over there for their police and fire when they, you know, we don't have to contract that out. That person can do that. So that we'll see how that works. But they are starting this week. So that is the increase you'll see for the wellness clinic. Any
other questions on health insurance? Workers comp. So workers comp does have quite a bit of money. Um you'll remember in like 20 2021 we upped the rates because we were struggling. See it was negative cash. So we doubled the rates that all the
various funds pay in. We have m just left those rates doubled. But it has allowed us now to pull some of that for the health insurance costs. So, in this budget, we are proposing to use 474,000 to transfer over to the health insurance fund, which is why I don't know that I would want to use those funds this year
if we have to sh it up. I would wait and we'll maybe use other cash that we have and use this these funds next year. There's some of the claims that we have. So, you can see they're not too bad. I'm not sure. June looked a little bad, but thinking that's just one thing we had.
So, and then there's the revenues pretty much same and the expenses. You can see there's the transfer to the health insurance fund. And then we move on to fleet unless
there's any other questions. [Music] [Applause] Okay. Fleet vehicles are getting expensive. So, you know, a couple years ago, we increased the lease rates to 100%. We do have them at 100% this year. So, every fund plays in 100% of that rate that we've
established to get their vehicles replaced. The reserve on this fund is $829,000. There's the revenues. And um we are using 520 of that cash that you just saw. Um but there is one thing about that which is we are
planning to buy our ladder truck. We will show that in a minute. Here is the expenses. You'll see the um capital projects are up. Let's do that ladder truck. So, I'll show you the list in just a second, but the rest of everything else looks about the same. You don't have a reserve because we're using all the everything we have to get
that ladder truck. Here's the list of vehicles that we're proposing. The ladder truck does take time to get. So, we won't even make the payment for two to three years, which is why, you know, we're okay with a $ 1.5 million purchase when the cash will grow and we'll be
able to I mean, we have it now, but it'll be three possibly three years before we make that payment. So, it takes that long to get one. Yep. So, I think they're actually I heard they've already been over there talking to them. So just that's how they got the information was to find out how long and
all that. Yep. So it's a 2003 ladder truck that we're replacing. So Yep. And what do we do with the old I mean just like a auction it off is usually what it I think Chief Mera said it was
worth 80 grand. Yeah. So we bought it for a million had it for 20 years and we're getting 80 grand out of it. Do they take part I mean do they use it on other truck? I mean, uh, actually, he said they sell them internationally. That's what I was I've heard. Yeah.
Like Central America. Yeah. Yep. Yep. Is that the average time to keep a truck that long that we've had to now? Well, if you ask the fire chief, no. If you ask the city manager, yes.
Actually, longer. Longer. It's been cut. So, if you balance out his answer, my answer, it comes to 20 years. I don't know how many times. Actually, no. I think I think that Yeah, I think probably is mayor back there. He He'll probably tell you 10 to 15 years
and I'll tell you 30 to 50. So, I think everyone's happy to see it because it's been cut. We've pushed it off many years. So, y unless you have any questions. I think that's all we have.
Any city commission questions? No questions, city manager. The only thing I would add is, you know, like we do every year, uh, just like to thank Brandy, the department heads, and the team for putting together the budget. Um, I think we do a lot of work
before it gets to you guys. So, we minimize some of the crazy decisions and keep it going. And I think it's one of the best things we do in the organization is manage your funds. So, uh, my thanks to Brandy and and everybody who participated in the budget process this year. I'll reiterate that Brandy, phenomenal
job, city manager and all your department heads worked really hard. This was a very smooth budget process. So, thank you. You're welcome. And we don't have to have a meeting on Thursday. No meeting on Thursday. No meeting on Thursday. That was only if necessary. Yeah. No, no. Thank you. Oh, go ahead. No, I was going to say thank you as always, Brandy, for a great job and and
everybody, this is a good budget. Y'all make our job a lot easier and it's great to see the city in such great financial shape all the way around. So, thank you again. I just wanted to add I think doing the um highlights that instead of going from each page, each section really helps
that you can see the bigger picture so when you do have a question you can relate to where it is to see what makes up and that I think that really was a saving grace this time. Yeah, thank you. You do a good job at the very end of the each department if you are asking like
what is that increase for you give a detailed explanation at the end. try at least so you're not like what is that so all your all your questions are already answered well and I know you don't know what the account number means so I try tell you what it is job on that so no problem and one more question and
this question I directing to um city manager what before October 1st if there's any questions or concerns that we might have do we have to come back as one or can we just write our notes and no if you have questions or concerns
bring bring them to me uh verbally, text or writing and I'll bring them back to the group if I don't have them answered. And as we talked about um when we did the general fund, we'll be bringing pieces of the budget to you from now until when you have your budget hearings
in September. So, first up will be the resolution for the rate modification. Well, actually, you did three things last night. You did the DR420 on taxes and you did the two CBAs. So, those were really the two most significant actions revolving involving the general fund.
We'll bring back to you uh the the my brain's going faster than my mouth, believe it or not. um the the C the uh retirement stuff that we did. So the changes uh for the the PBA and the CBA,
the PBA and the IFFF, those will require ordinances to change the pension formulas. The modifications we're doing for the general employees on uh defined contribution plans that will require resolution from you. So, those will be coming to you separate and we'll also be
bringing to you uh the rate a rate resolution that modifies all the rates as we discussed. So, those will all come to you sometime in August is our goal. Okay. Um so, if there's a chance to to negotiate, stop or discuss further some
of the big issues. Um and then we'll be checking back in with you periodically uh because we still have the 425,000 and the tax question to talk about in the general fund. impact fees will also come up during that time frame as well. Yeah, that I impact fees kind of separate and apart from the budget. So,
just on that note, I anticipate is it are they ready? It's clutch back there. I'm looking for they're they're looking like we're going to be able in the 28th. Are we still shooting for that? No, I think we did the first August meeting. Correct.
Okay. So, and and actually, so there was actually also on the impact fees, there was a change uh this year that we caught very late, uh like a couple weeks ago, um when Grant got with me, um the extraordinary circumstance measure to
increase the impact fees got modified by the state legislature this session, which was a very quiet change. So, we were gearing up to do the extraordinary circumstances change on the impact fees, which was a two two public workshops or
two public reviews and then the public hearings and then the supermajority vote needed to increase beyond 50%. So, we're we were angling at a 20 we're going from about 2,800 bucks to about $4,080 [Music]
on sewer. So that new news is a bit of a wrench in the plan. So we're going to have to reevaluate that. Long story short, we will be bringing you very shortly, probably August time frame, the the impact fee concepts and where we need to go with that.
Okay, any other questions? Seeing none, I'll take a motion to adjurnn. Second meeting adjourned.