Okay. We'll call the Monday, July 7th, uh, budget workshop to order. If you would please stand for the invocation and pledge. Dearly 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.
I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. All right, we'll move on to the fiscal
year 2025 2026 budget workshop presentation. I'm assuming this is on. Yep, it is. Okay, there we go. Um so we'll get so we'll get right to it. Um this evening schedule is uh just basically looking at the proposed budget for fiscal year 26.
In it we'll talk uh about a general fund summary. I'll bring you some bikefest data uh some civic funding data and then a departmental of by departmental recap if you all want to review that. Um and so all the little writing here on the screen is all the all the departments uh
that comprise the general fund. So with that, let me wrap right into the the budget summary. Uh so our our total um general fund budget is up about 7.7%. So we increased from about 37.5 million
general fund budget last year to about 40.3 million uh this proposed for 26 uh and uh that changes about 2.8 million. Uh it breaks down on the revenue side to about 16 million in in taxes about five
in licenses and permits 1.5 in miscellaneous 4.5 in intergovernmental. Uh 1.8 8 for charges for services, fines and forfeertures, pretty small, about half a million. And then other sources, 10 and a half. And I'll break those numbers down for you a little bit more here shortly. Um, one of the things we
always kind of consider, probably one of the things that I think is that we've done tremendously good work on is getting the the general fund of Leburg to look like the typical municipal budget in the state of Florida. And that directly relates to how we've continued
to reduce our reliance on the enterprise fund transfer, specifically the electric fund. And as you all know with the with kind of the the changes in legislation or the attempts and changes of legislation, I think that that change was uh I'll use the word visionary uh
because we started reducing that before the state legislature started trying to reduce it for you. Um and again this fiscal year in 26 our budget matches uh uh that you you you see the tick in different this is the percentage versus
dollars. Um but we keep the same dollar amount a $ 1.6 million transfer from the electric fund into the general fund that represents 6% of incorporated sales. So if if you had an electric utility, if you didn't have
an electric utility, you would rely on a franchise fee. That's typically 6% of in your your sales in in your city, incorporated sales. So what our transfer represents is that um and that's just a tick under 4% transfer. Um I can dive
into that in more detail if you like, but I thought we just keep it easy. So I think that's that's a really significant number because what it shows is the the um the general fund is operating on its own per se without significant influence
other than franchise revenues. So if the state legislature continues to be aggressive in terms of controlling how you spend transfer dollars, you've already done it in the electric fund. So that's that's a big deal. Um, we did this SWAT strengths,
weaknesses, um, analysis last year. I didn't change the slide a bit, um, because I think it's still relevant. We're still the strengths. We're still trying to increase, uh, public safety. We still have a a low millage rate and I have some options for that I'll talk to
you on this evening. We we are look closer and closer to a non-electric city, which I think is important. And we have good reserve levels. And I'll say I think we have extremely good reserve levels and probably for the first time that since I've been your city manager. Yeah,
the general funds performing very well. I I hesitant to say better than your enterprise funds. Um but uh because I I there's there's certain mechanisms in the general fund that I if
we veer away from then those savings can be depleted extremely quickly. So the general fund's always on a precipice of of of danger with legislation and different impacts on it. But right now the picture the picture is nice. So we can absorb a couple of bumps. Uh but we
can't we couldn't absorb anything and I and I'm not going to mince words. We couldn't absorb anything crazy like doing away with advalorum taxes. That would that would be a significant blow to us and it would immediately impact public safety. Bottom line. So, if if I
ever got called to testify before the state legislature about a proposal to cut taxes, maybe that comes next year, that would be exactly what I would say. It would be devastating to us and it would immediately affect public safety. So, we'll see those numbers. Um, and
then weaknesses again, a slower core growth, um, the the less electric fund means higher taxes. However, we've we've kind of lucked out with that because we've been able to feed lower transfer with new villages growth monies. So,
that went away seamlessly while we were doing the budget this year. Uh Brandy and I, you probably I think you have to be a kind of a bit of a number nerd to recognize it. But really there that that that decrease into the the the franchise fee way if you would really is that's a
significant change and and that was done with villages growth. That was a big part of how we were able to bridge that gap. Again, we have no CIP investments, but I'm going to come back and visit that with you. Um um and so um and
again, our our health insurance fund is is a bit crazy. We'll talk about that I think next two meetings from now workshop wise. Uh but that's hanging in. Um so let me go now into cash as a
summary. So this is our our cash chart. The little yellow circles indicate your cash balance on October 1st. So that's the important date. Um because if you look at us, you look at us right now uh in May when this was done, this was the last update, we're sitting at just a
tick under $20 million. So our new reserve requirement is obviously inches up as the general fund grows because it's 90 days. So when we always used to talk about $7 millionish in the reserve fund you need to keep that that number
rough house is about 8 million. Um so we're significantly above that. Um however if you just look at the the two chart you you see a pattern of October one and then a spike high. So let me
that the expla explanation on that is cash flow. So basically by the end of the first quarter of the fiscal year we have 95% of our advalorum revenue. So that's why you see that number spike and then as as the fiscal year comes it trickles down and you see that repeat.
So we are in the middle of the trickle down. So by o by the time October one comes here we don't think that's going to be just under 20 million. We think it's probably going to hang out and finish around 17.5 million. So if you connect these yellow dots,
you do see an you see an increase in your reserve. So that's a good thing. Um but it's also a cautious thing. I think that cash will let us do um some tricky things and we'll talk about that here shortly. Um but um I I I don't think
it's a windfall and I think it could be easily spent uh with too many CIPs, capital improvement projects or funding personnel. So those are going to be the tricks for us is I think there there there's a certain precipice where we can play with house money if you will a
little bit but we can't get crazy. Um so I again we'll talk about that as as we wrap up the budget summary. Let Um, what was the available cash 105? Is that as of October 1st or what? Yeah, right in
Okay, this is this this line right here, this green line, that's an al make believe line. The chart the chart ends the chart ends here at May 25 because that's the latest from all the budget reporting. So, the finance folks do everything. Then Brandy
takes that and she manipulates it into this chart. So, all money in, all money out. As of May 25, you're sitting on about 20 million bucks. But that's not how the picture is going to end. So, I threw this bar in there. And I'm And I guess that actually maybe it needed to
be more here instead of here. But, but what I'm trying to show is about 17.5 million. That's our estimate for where we'll end fiscal year 25. But that's, you know, about a million million and a half better than we were if you look at that's why look at the yellow circles.
That's your that's your compar that's your better comparison because that's how you look at the budget every year on October 1st when you end one fiscal year and start the new page. So that's gradually gone up since 22. So that's a good number and and then historically
you know we've kind of hung out around in this $10 million phase. Um so those are good things. Does that answer your question? Um so now let's so that's kind of overall so now let's start drilling down into uh significant topics for the
general fund. First is the advalorum. Um so we we um we we got our numbers in as of uh July. So actually we went up a little bit. Um, we sent the budget books out to you with a roll back estimate and
we had to guess at that roll back estimate and we thought the the uh we were a little bit balanced until uh we got the July one update. And so that's where I'm going to end up with you. So we grew about 385 million um this year.
Um that's actually significantly down from from last year where we grew almost a billion. But again that was villages uh primarily villages growth. So our our our number now 11% and that's primarily
now the inverse of last year. So that's primarily commercial and residential nonvillages growth in the city of Leburg. So um so we see so we see the ball moving a little bit. Um the trick that we have when we prepare these
numbers for you is is how this 3.8 $.8 million then breaks down over your four taxable funds. So we have the general fund, we have the greater Leburg CRA, we have this Carver height CRA and we have the 44127 CRA. When we get these initial
reports from the appraisers office standard operating procedures SOP is we get the big number and then we got we kind of have to weave through it until we get closer to the fiscal year on where what money is going where the where the growth is. In past years, what
we've seen is we've seen the CRAAS growing faster percentage-wise than the general fund. This year, I think is probably the first inverse where we see actually the general fund percentage-wise
growing faster than the CRAAS. That's why I'll give you the secret. Since you got your books, there's about $480,000 extra that we didn't account for because when we did our budget estimates, we put that $485,000
into the CRAAS based on history. So, this year we saw it flip-flop. So, there's a couple extra bucks there. We'll get there. So, that that's the surprise for you at the end of the presentation. Um, so the budget book as you see it is balanced at the roll back
rate of 3.3131. And so this slide is showing you some of the options that you have and that we need to discuss moving into the budget year. Um, I let me tell you as we move into I'm not going to harp on this too much, but I want to put it out there for discussion so you have it in your head
as you think about where where you want to go with the fiscal year 26 budget. We will be making increase recommending increases to you and most of your utility enterprise funds. Um, we have a 10% increase on water and sewer rates.
We're recommending a 5% on solid waste and a 3% on gas. Now, we've been keeping up with those funds um and CPIs, which the you you've made policies that gives the city manager the authority to do that. In these budget
workshops, we disclose that we're going to have a modest CPI. So, that's that's helped us. But uh this year because of inflation and just trying to keep pace, all those enterprise funds are really feeling the pinch of inflation. And I
think if you don't move with an increase in those rates, we're going to see a fall back in terms of capital improvement first and then operations next. So that water manes that break even more frequently, um
trees that don't get trimmed, electric fund, we're still going to recommend to you a no increase there. We will talk to you agnosium about that on Thursday. So you will you you'll see as we as we move forward where those things hit, but general fund, you you may have the
ability to go to roll back if you so choose that. And what's the number that we're talking about? So when we put the budget book out, we balanced it at 33 at the at the roll back rate, but we're about 70 grandish in the whole and we we
can massage that number. We can get you to roll back if you go there. If you stay with current millage rate or anywhere in between, including this number, making it easy for us, uh you're going to have about 425,000
to do to different things. So, next Monday when we come to the regular meeting and we do the DR420, the form that we send to the appraisers's office, this that sets the trim notice, we're firmly recommending to you that you keep the millage rate at
3.4752 for the purposes of the DR420. So, when all the trim notices go out, that will show a tax increase. You can always roll it back, but you can't roll it up. So, if you don't set it at the 3.4752
number and then we decide in August or late September that we want a tax increase, if you haven't advertised it, you can't do it. And the best way to advertise is jump on the trim bus. So, to jump on the trim bus and keep your options open, you need to send a DR420s
out with the current mill rate. Um, so what does that look like? Um, again, if if um if you go with the current millage rate, that is a tax increase. I would say it's a modest tax increase. So, based on your home value
from 100,000 to 600,000. This chart kind of shows you if you have a $100,000 home uh taxable value, then you're going to be paying about 10 extra bucks annually. If you have a $600,000 home, you're going to be paying 6255
annually. That's the that's the say I if you have homestead exemption and which you know most houses are. So our average home um is roughly in the 200 to $250,000 category. How do you get that number? You divide 3.4 billion by about
the population about the utility accounts that are incorporated which is about 16,000 homes and that number comes out to about 205,000. So the average home is you know I would probably look in this range. So the average homeowner in Leburg that's homestead exemption, if
you keep your millage rate the same, gets about 25 buck increase on their taxes for the city of Leburg. Let's compare that to the region. Leburg is and continues to be one of the lowest taxing cities in Lake County. So uh I
threw a couple extra things in this chart to show you where we're at. The only city that's below us is Mount Verd at 2.8. The mind you these are all last year's tax numbers. Um I don't know where any of the cities are going to date. They're all in the same boat.
Everybody hasn't shared their magic book yet. We'll know probably by the end of this month where everybody's proposal is by August. We'll know where everybody's out because the trim notices will be out. But I wanted to give some comparisons at least where we're at. 3 point 3.313
will definitely keep us the lowest. 3.4 four will probably keep us the second lowest as well. I don't see anybody dropping substantially below where they're at. And I wanted to throw the county in too um just so you can uh as a they didn't put schoolboard in there
because a different kind of governmental unit. So I just wanted to compare kind of governmental general fund to general fund county unit. Um not picking on the county here at all. Uh but if you're an incorporated um resident in Lake County,
you're going to pay four millage rates to the board of county commissioners, which is their general fund at about 5.03 mills. You're going to pay the ambulance. Everybody pays that at 4629. You're going to pay the environmental
land bond, which is I think 0.09 mills. That number, sorry, it's really super small. Um and you're going to have the water authority uh millillage at 0. 29. So all in county taxes that incorporated residents pay is 5.8 mills. So that puts
you about the middle of the pack. So all in all your tax rate for the city is the 3.4 plus the 5.8 that for for go general government services. So Leburg continues to to tax very modestly versus our local
peers, which I think also provides some room if you want to keep the same mill rate. Um, now let's talk about revenue sources into the general fund. And there's three or four primary revenue sources. So, we got $40 million uh total
revenue roughly in 83% of your money comes from four different sources. So, some of those sources have fold down windows, if you will, but the the the common thing and again some of these
sources are under the microscope at the state level. So, that's something else you got to think about as we move forward. Um so the first one is advalorum taxes brings in about uh 10.2 million bucks. Um the utility tax is a
significant one. It's 10% on all utilities in incorporated Leburg. That's water and sewer and gas that brings in the 4.7 million. Whether you were or are not a municipal electric utility, you most likely have a utility tax. So that
is one of the most common general municipal corporation revenue tools in the state of Florida. Franchise fees is the other. Ours is reciprocally low because most of incorporated Leburg is Leburg electric. So we have the transfer versus the
franchise fee. We talked about that. Uh we do see this number on the rise. It's not rising as fast as we like. So if you spotted that in the detail of the general fund revenues, we're just not ready to push that number up yet uh because we're still chasing Duke a
little bit. So you'll see I think that number was like 470475,000. Then our estimate for this year was 875,000 which includes the payment for back franchise fees that Duke paid to us this fiscal year and then we went back down to 550.
Our trend has been and I hope you will continue the trend is to budget revenues extremely conservative and and if we're extra yay but we're not going to miss low. So then that helps us on the expense side and that also that that
formula has also helped you fund healthy reserves. So I'm really not going to recommend changing that process. The other big tax or franchise fee is the fire assessment fee. So all of those account for about $19.9 million of your
40 million. So almost half of your general fund revenue is coming from here. That's a change in in the past decade. That number used that percentage used to be a lot smaller percentage of the general fund revenues because we were leaning on the electric fund and
other transfers. So that's a good change I think. Um, and remember this number assumes the roll back rate and it includes the fire assessment fee increase from 165 to 170. So the next slide says, so showed you where we're at
with taxes. Here's where we're at with fire assessment fees. Fire assessment fees in Lake County range from 415 to 50 to zero. Um, Claremont and Eustace are the two cities in Lake County that continue not to have a fire assessment
fee. So, they fund all their fire services from general revenues. Um, well, the fire assessment fee is considered a general revenue, but general revenue is not including a fire assessment fee. Um, so Minnola 59. So, so we're we're towards the bottom there.
Um, but but you see you see the variance here. The the median is probably what closer to 233 um or or the you know, but you see the that a lot of 415s in here. So, I think increasing at the modest 3% is
reasonable. Let me dive into this a little bit as well. Um, Commissioner Canel, I spoke to you a little bit about this last week. And there there's some variance in this. And when we set the the advertising fire assessment fee reszo at the 170
number we talked about is the villages wagging the dog kind of issue. So, the answer is kind of yes, but it's also no. There's two things that prevent us at this stage from having two different fire assessment fees. And I bring this
up because if you saw, you see, you see it occur. You see Futland Park, regular Futland Park at 4:15 and you see Futland Park villages at 233. So, let me explain why Futland Park can do it, but Leburg
can't. The phenomena that we have going on with us is twofold. First is the statutes. The statutes say that if you have a two-tier system, you have to justify the two-tiered system. So it's the statutes don't specifically say
this, but the interpretation of the statute is that you have to justify the differation. So if you have differing fees, you have to justify why they're different. And those service levels have to pan out in
a model. That's the law. The second thing that we have is we have an agreement with the villages that says we won't charge villages residents different than native Leburg residents.
So we got native Leburg residents and we got villages res residents. And that was in what we call the 163 or the hanging chad agreement where it was we we did this agreement back with the villages in 18 or 19 where we laid out all the general sources of parameters. And in
that document it says same fee about a week or two weeks after we approved that resolution. So it was recent. Um, we got word, well, we didn't even get word, but we noticed in
documents that uh the villages CDDs are trying to equalize all their rates. So, they have four or five different rates for fire assessment fees in the villages that run from as high as 415 to as low as ours at 165 going
potentially going up to 170. Um and you there's two different fees for lady lake too. Okay. So that is so where the villages is trying to go is they're trying to have all their villages which are married over four or five cities and
two counties to be the same. Um they haven't come to us yet but they will be. So when we started going through some of their budget documentation and some of their information from the C that the CDD put out, we noticed that they are working to equalize all their
assessments and I think they wanted it at the 350 315 level or something like that. So I called Villages HQ. I said you guys, you know, we got an issue with this and the issue is our agreement and statutes. So, a if you guys are wanting
to equalize that, you know, we can't unless we modify that agreement. A and B, we go we we then we have to go back to our consultant and we justify a two-tiered system probably and read. So, it's a study a
system. I don't know. It'll cost 50undred grand. Uh um so long story short, for fiscal year 26, it's game off. There is no way that we're going to be able to have a two-tiered system for fiscal year 27.
It's that potential. So, we'll start doing our homework now, working with the villages, working with consultants. We'll be back to you during the course of the fiscal year. And and the problem where we'll be back is with the price tag for the consultant. So, that will be
coming to you, I don't know when, um maybe by the end of this calendar year. uh but certainly in time so that as we gear up for when that resolution is before you again I think we did that in June we'll have this data and it'll be
no we ain't doing it and we'll we'll keep it the same or not the same or or whatever but this year we we practically we can't do it because of the law and because of the agreement so um one one shoe fits all there um I'll leave it at
that if unless you have any other questions otherwise to keep beating that. So that's where we look like on fire assessment fees. Um, so we're still in the discussion of your major revenues. I digress there. So let me bring you back. The other big source that we have is transfers and utility
search charges. And I broke these out differently because this is kind of we we've had kind of three attacks potentially. I don't know if attack is the right word, but it's the one I'm going to use. That the state legislature is is looking at municipal corporations
across the state. A, are they really going to start passing legislation that does away with advalorum? Attack number one. Attack number two is these utility transfers from your enterprise funds. We've prepped our
house pretty good for that. Attack number three is equalizing rates. So that on water and sewer, which is the typical enterprise fund for municipal corporation, your inside and your outside rate have to look the same.
Attack number four is are they going to start going down and they haven't gone down this route. So maybe I shouldn't say this, but I don't feel like I'm doing my job if I don't tell you. S charges. Don't forget we also have sir charges. So, we have taxes
and sir charges. It's all legal. You folks who don't like to pay taxes and search charges and fees are going to say it's double taxation. You can have all those arguments, but right now it's legal. I suspect that as we become more conservative that these other revenue
sources will get the state legislative microscope. Okay. So with that being said, our transfer levels are within where the state has been pushing municipal corporations to our electric fund trans. Look at that. Our electric fund transfer is almost the same as the
wastewater transfer. I think that's really cool. Um okay, so 1.6 from electric and transfers and that that represented about the a little under 4%. We have a 10% transfer on the rest. So gas is kicking in a million. That's so that's a surplus revenue. Water's
kicking in just a tick under a million. Wastewater's kicking in about 1.2. And solid waste is kicking in half a million. 5.27 million in transfers. Um, and that number's down. So, that's a good thing. Search charges is kind of the one where do we go? So, the
definition of a search charge has been if you are in unincorporated lake, the city has the right to put a search charge on you. So instead of a utility tax
like here the 4.7 million that so if you're incorporated we can tax you. If you're unincorporated we sir charge you 10%. It's not a tax it's a search charge. Okay? So, we bring in $2
million of unincorporated revenue from the search charge, but the percentages are the same for the search charge versus T. They're both 10%. Yes. Okay. They're both 10%. Um, so if if the state says no more search charges cities,
that means we got to find $2 million somewhere. 2.7 actually it's 2.7 because you've got gas at at 229 and and water at 460. So all the the only place where we don't have a search
charge. So we got taxes inside corporate limits. We got sir charges an unincorporated lake on our system and then Futland Park becomes different because Futland Park
they have the ability to have a utility tax like we do because they're a municipal corporation. So we don't have a I'm trying to sneeze and hold it back at the same time. We don't There it is. Thank you. Um, so on Futland Park, you
you've got you've got the city bill and then they put on their franchise fee and their utility tax, no search charge. So in essence, wherever you don't have the ability to searchcharge it, it it's incorporated in another city. That's
only a phenomenon in Fland Park. So alto together transfers and search charges brings in about 8 million. The other uh the other big revenue source, I just called it intergovernmental. It's that one line. It's the third big subcategory in your budget book. Federal, state,
local funding. It's 4.5 million. I think of that. It's state shared revenues is like two million. There was another million. And then a lot of other little rinky dinky charges. But so you take these these three taxes and fees, transfers and search charges, shared revenues, 32 of your 40 million bucks.
So that's where all your money's coming from. I know $8 million is a lot. There's so but there's but all of those are for lack of better words nickel and dime kind of user fees or this kind of fee or that or so but this is what this
is what pays the bills period and the state legislature is is got their as Mr. modeling, DC model always used to say because of the time he did in the Middle East, they got their the camel's nose is in the tent.
So there they're they're they're watching us. Um so that's revenues. Do you want to any questions on the revenue summary? Okay, let me let me jump to where are we
spending it all? The general fund is personnel. Personnel and police and fire. Um, you know, police and fires is upwards of 60% which I'm going to tell you is probably a little bit low. Probably that number in most cities is going to be upwards of 70 to 80% in that
ballpark. But that's indicative probably where we're at on a staffing level with the police department. Um, but it's historically been that way and we've been doing our best to get it up. Where are we with the the expenses? So kind of
the three items that are driving the train are benefits and personnel for the general fund. So item number one, we have tentatively and but and I and I put this item and I've kind of delayed a little bit ratification vote from you guys um in terms of the collective
bargaining agreements. So on the table we have a union ratified police benevolence PBA association agreement. We TAed it a couple of weeks ago. The the the PBA membership in Leburg approved it I think unanimously. I don't
think there were any no votes. Um and their benefit package increases our budget by $630,831. Um that so that and what was it? It was a 6% increase for sworn officers and it was pension changes that added a more
lucrative drop program and increase a factor from 3 to 3.2 uh% retroactively. Um and you see the respective costs up there on the chart. It is my opinion that the police benefits specifically
retirement benefits have been below par for a long time. Um, we have incrementally addressed it at one time or another. Um, I know you guys recall we we we've been to this well a number of times that one year it's pay, the next year it's benefits, then we're back
to pay. Now we're in a cycle of pay and benefits. Um, when we go to the the negotiating table with the PBA, they continually beat us up about um this phenomena. And
it is the PBA's opinion that our reason for our inability to get to the program number of 85 cops is because our benefits aren't good. Therefore, cops are going other places. Is that real or
not real? I don't know. But what we do know is we continue to be below our mark. We we set out a goal last year to increase the department by 12 positions or 15 positions and we were at 68 trying
to get to 85 with 73 program this year. We're at 68 now. No, I was going to we were at 68. So last year we said 68 programmed 73 and we're trying to get to 85.
Fast forward 365 days almost we're at 66. So we went down two, not up. And we we probably second or third best entry pay in the region, but again on the on
the on the retirement side, we're at the bottom. So when we're at the the the bargaining table, we're reminded of that. And the first thing the first discussion we had was you guys are overbudgeting positions and there's all this extra money and blah blah blah and you're not bringing new people in
because the retirement benefits stink. It's on the tapes if you want to hear it. Okay. So I think there's a point there. We need to get our benefits up. Um, and I think also in this day and age is what we're seeing is
couple years ago it was the kind of the scramble to get to 60,000 for entry level. Now we're at the the scramble to get to 70,000. And for the police department, I I I think you're you do have some urban
local competitors where we're we lose recruits to and OPD and Orange. um so you know those are probably the two right off the top where we're behind in benefits and pay I you know I don't know if we can ever pay OPD or orange dollars
but that was where we're keeping up but we saw too as soon as we went to 60 or I think it 60,500 we immediately saw Lady Lake and other local cities so we're playing the leap frog game
that's police the same thing happens with fire. So, so as we see the PBAs and we see police organizations increase their salary to recruit people to for service, then we have fire trying to keep pace with the police. Historically,
I think what you see between that relationship is police pay typically better, benefits not quite as good. On the fire side, pay not quite as good, but benefits better. I don't know why that is. It it it is. But
as we have worked and not just we but as municipal corporations in the region have worked to increase pay on the fire on the police side, the fire side comes right behind. And so um this year same phenomena and I think this year's
phenomena too was all also driven a little bit by uh no blame statement but with with um with the BOCC increasing significantly um at Lake County entry level fire pay. We are behind on that
and so they so the IFFF came to us with specific demands. I think their demand package was in excess of $750,000 increase. I think we started around $300
to $50,000 increase. Uh and the TA agreement is a $532,000 increase. So, um we didn't quite split the baby. We split it, I guess, a little bit in our side. Uh it was it was more expensive than we anticipated to TA.
that that is off for ratification vote in front of the IFFF. I think this week if it's ratified, I will let you know. Um but the the T8 agreement calls for 12% increase um in um in pay. It also uh
included um once you when you do those double digit increases, then you have compression. Uh so we so that we we address pay and compression. We do and then we do two pension modifications. Uh bankable uh pension earnings for
overtime that the ours was zero. If there's an industry standard, the 300 hours of OT counts towards retirement contributions. We TA at 100 hours. Um and we also added a drop program uh in
their pension fund. But we also said you guys need to contribute more. So we went from six to didn't we go to seven and a half% it was seven or is it seven and a half I'll clarify that but they they also increased their
contribution I what pretty much it is whatever the police department was paying so uh so that gave us back so the the net increase after they increase their contributions to match what other folks do so now we're all apples to apples the increase in their plan was
532 grand the other the other major um modification that we're rolling out to you today. Uh where did I miss am I jumping slide? I am I am jumping slide. So So um
so they went from six and a half to seven and a half. Yeah. So yeah it's so they went for we we missed a.5. It's from 6 and a half to 7 and a half. So they're they're doing the same contribution as the police department 7 and a half%. um which is more of a typical employee contribution for the on the public
safety side of the house to to balance the budget at rollback. We had to freeze we're proposing a freeze of five police positions. Each police positions is 89,580.
Brady touched that up because the last time I looked at it was 835. Um, and the one and one firefighter position. I'm going to try to be brief, but this is an important thing. Our budget still says 85 police officers and it still
says 55 positions. I am recommending that you keep that in the budget to give staff flexibility through the year to manage that. I don't think there's any way that we're going to get from 66 to 85 this fiscal year, even with the increase in benefits. So,
I'm not going to recommend to you to to fund fully 85 positions because you're sitting on a lot of cash. Now, that's not my normal recommendation for you all, but here's what I think. You have
enough cash that growth will hopefully fill in that that gamble. It's a little bit of a gamble. I don't think it's a crazy one. So, I think you go with that gamble and and we discussed it a little bit with the PBA, you know, that phenomena because typically when we
don't fill the officers, where does that money go? It goes into your general fund reserve. And that's I think over the years why you see that general fund continuing to increase. So, I I I I think that there's a little bit of a play it by ear um mentality. Watch the
budget. watch how recruitment's going. Our guess is that by the time the fiscal year rolls back around, next year's growth will help us out so we can have our cake and eat it, too. This is the almost the exact same thing I said to you last year. It worked out, so I'm
going to recommend it to you again. Um, and then I'm going to I'm going to hit this note one more time before the end of the presentation. Um, and then the one firefighter position. M, can you go back? I got one question. When would you recommend the increase in pay then for a police officer?
That will be October one. So the the the collective bargaining agreements will hopefully be both. Fire and police will be on your desk next Monday. Um regular meeting assuming that you TA that those increases and changes in benefits will be effective October one,
but we'll immediately market that in recruiting efforts is is my guess. Um, so, um, couple of other, uh, spending things I'd like to talk about. Um, we talked about the the same miller rate. Um,
oh, it's not in there. So, we other the next one is is the is the where is the pension plan? It's here. Um let let me jump let me jump to some other expenses and then I'm
going to come back to um um and I'm going to then I'm going to come back to um millage rates and some options. Um um other major expenses in the general
fund include regular include 5% increase what for what I'm going to call general employees. So that's that's everybody in the city whether general fund or our enterprise fund. So electric, water, sewer, gas, public works, library, the
city manager, uh finance d everybody else is scheduled at a 5% increase pinning their evaluation um results being satisfactory, including myself. So 5% increase is what we're recommending to you. The next big one is a
modification to the city's retirement plan for general employees. This is probably the other area in the city where our benefits are deficient compared to our municipal corporation counterparts and it goes back to the the
the the general employees pension plan that we closed in 2008. Yeah. Um so when we closed that plan in 2008 because of the world crash uh the employees lost their pension fund and we
went from a defined benefit plan also known as a pension to a defined contribution plan or a DC plan. Defined contribution plan is is a flat percentage that goes into an individual's 401k.
Um, so that was kind of in that time frame. Many municipal corporations on the general employee side of the house left the pension plans except for public safety and went to DC plans. We did as well. The one thing that we haven't done
was to made our D have we haven't made our DC plan more more beneficial for our employees. The reason we haven't done that is because we for the last almost 20 years, we've been solidifying the frozen GE pension fund. We are now at a
point and it started probably two or three fiscal years ago where we funded it beyond what the actuary was saying. So now we're at a funding level of what 95 90% of the GE plan which means it's act 98. So the GE plan is 98% funded
which is a significantly healthy number. I think there's only about 80 to 100 of our 550 employees if you do the budget here um that about 180 I think 80 to 100 employees of everybody who is still a a
beneficiary of that. So, what what I'm saying is our liability on our pension GE pension fund continues to decrease, but we've been funding it at the same level. And I think it's kind it's gone from a million dollars to 750,000. It sat there for a couple years, then it
went to half a million. We stayed at a million funding it. So, we're overfunding it by double. This year, the actuary said went down from half a million to 250,000. That's when the light bulbs went on in our heads. we probably don't need to fund it that much. So, what can we do
with that 750,000? And really, the staff recommendation was, and I have to be honest, this didn't come from me because I would have been a lot cheaper. I would have I would have gone, you can cut taxes with 750,000. We can do different projects. But honestly, staff beat me up and that and that. So, the credit of
this really go if you accept this plan really goes to Brandy, Rob, and Melissa. It's a deputy city manager, HR director, and budget director because your city manager is cheap. So, I don't I don't get any of the credit. Um, but the plan
is take that $750,000 and fund the defined contribution plan for us. So, what we see in the marketplace is a base level that the employer provides. We're 5%. So, 5% of what what however you make zero to
whatever you get a base 5%. no questions asked that gets funded into your DC plan. What we see in the marketplace is a onetoone match up to a certain amount. So if a city kick if an employee kicks in 1% employer kicks in 1%. Our proposal
to you is we can manage that that delta that $750,000 delta we can manage 3%. So the plan would that the roll out to you in this format and if you all say yay you like this concept we'll be coming
back to you with resolutions and the documents necessary to make it happen speak in more detail to you about then but the the program would be we can fund up to 3%. So city kicks in five and we'll match one to one up to 3%. So if
you put in half a percent, a quarter percent, 3% up to 3% will match you. Um, and we made that total. We've made an assumption in this budget that whatever you kick in that everybody's going to
participate in this program. We don't think that's going to be the case. We think a lot of people will kick in. So we'll have hope we may or may not have savings in in out years but we know we can cover that now and then hopefully growth fills in for the perpetuity of
the program. So you could receive upwards of of 11% into your plan. So that would be five from the city automatic and if the employee kicks in three they get the three match. So it's 533. So 11% and so you know as soon as you start hitting
that 10% number you start having you uh the funding of a DC plan that's that that's a potentially a nice benefit when you retire assuming all the other things work well like the market makes money. Um
that's the other that's the other big expense item in the budget. Um question please. Can you go back? What is the number of employees in the old plan in the the GED? The GED
there exists that the that uh I think about 80 to 100. I'm showing 101 active. So there's 101. So that means of the 550 employees that we're proposing 101 have been with us since prior to September
2008. Mhm. So a fifth of your workforce is went through all of that and their plan will remain as is they well the so their their so that employee is still entitled to the frozen
pension plan at their time of retirement. Would they be able to consider to move to this one as well? No, they are in this one. Okay. But so so if you're if you're one of those 101 employees, you were hired on certain
date up to September 30th, 2008. You for those years of service, you get pension. For the years past October 1, 2008, you get DC. So those 101 employees have a combined plan. They have a pension plan
that's frozen that where the benefit's not going to get any better than what it was on that day. And then that marries with the DC plan. And the reason that that liability comes down is because folks die.
We don't and we know exactly what the liability is going to be for the 101. So our our ability to fund it decreases and then as the market does, you know, then it then we're kind of at the whims of the of the market a little but but it it becomes actually sound because we know
the liability. Um the next thing is the adding of employees. So uh the budget this year has a net nine positions. So and there's one one little hiccup in there. Not it's
not a hiccup, but you miss it if you don't look for it. So I want to bring it to your immediate attention. Last year we added the deputy city manager position by shuffling the deck. Um, one of the things the deputy city manager immediately said was, "We don't have enough people in procurement." Um, I I
guess I knew that was coming. Mike, uh, Thornton always complained about it. Um, and and we had it at certain levels. We reduced it. But one of the issues we do, we do have a procurement process issues. We we don't have enough qualified buyers
processing bids and the we need another body. Um, so the deputy city manager, I call it a transfer. So instead of being in the procurement division of finance, he got moved over into the city manager budget. So you'll see that. So that's
I'm not going to call that a new position because we used existing people at that time. It's not a new position. So it's a transfer. So here are the new positions. four utility service texts which you previously approved uh because we're phasing out of the contract thing
into reading meters for and these are water meters uh for water and gas for ourselves. Um and then we close out the deputy finance director position. Where's Paul? There's Paul. Paul Paul believes we can go without this for now. I'm sure we may revisit
this in other fiscal years, but for fiscal year 26 uh we're proposing to close that out. So we're there's three positions. Uh the new procurement manager is kind of goes handinhand with the transfer of the deputy city manager.
So um what I where we go with that is probably a promotion for our senior buyer to the procurement manager and then bringing in another senior buyer is is is how you is how Brandy did the budget. Uh a police service aid uh funded with the school zone camera
money. Um and so the police service aid will hopefully help us with parking tickets. Um camera zone camera zone school zone camera stuff going through all that. Um a forensic digital evidence tech um also at the police department. So uh civilian
position increases and then on the gas more administrative uh help a gas service manager and uh the cathotic per uh cathotic CP is cathotic protection foreman. Um we just finished off our public service commission um evaluation.
We basically got a good review, but they again they did hit us up a little bit on our cathotic protection and essentially where we're at on cathotic protection is we we we haven't caught up with uh older experienced folks who've retired. Um and so we end up kind of with a stack of
cathotic protection uh SOP to do that we haven't been as fast. I'm not saying the system's unsafe, but it it but it did get and but we but we need help there. Cathotic protection is is really the heartbeat of gas services. So, you put all those positions together, those are
the nine new positions in the the city. That's the general fund. A stop for questions on that or B, let me hit you with two other topics um real
quick. Two other topics real quick. I wanted to hit you with Bikefest numbers because because Bikefest hits us um in the general fund in the recreation. You want to go back? I think I cover I think I covered it.
I did. Oh, no. That's at the end. Okay. Um Okay. So, Bikefest recap. Long story short, all the money in, all the money out. We lost 69,000. However,
we gave out, was that 54? 54 and 50. So, $54,000 to civic organizations, which is the heartbeat of why we do Bikefest, right? It's an opportunity to bring people into the community, help local businesses, then we take those profits, and we give it to our civic
organizations. So, we do that two way. It's a fundraiser for the chamber because the chamber manages it for us, and they and we pay them 50 grand for it. And then we also pay another 54,000. So our loss is almost directly
correlates with what we're paying other people to do. Long story short, we've done this for two years. I think last year we lost 75,000. This year we lost 69,000 70 grand. If we lost money last year with this model, I'm going to
safely say that we're going to lose money every year. How are we absorbing this loss? When the partnership closed its doors and threw the keys on the table and we accepted it, they gave us $257,000 in cash. We put that in a special fund. So, this loss is coming
from that. And you have now a two-year bound. We lost 72,000 last year, 69 this year. We lost We've got 114 left. That looks like about one more trick to me. So you don't have to change the plan for
26, but after 26, you're going to need to change the plan. And the plan, I think, includes, do we want to look at an outside vendor for alcohol? Because the alcohol is really what's driving the bus on this. And we we looked at that
model, I think, both years, and we opted to stay with the chamber model for the reasons that we're keeping the money local. Um, but I think and I'm not going to ask you for a decision this year because the budget or I'm not going to ask you for a decision tonight, but I
wanted to set the stage because probably sometime in July or August, we need to revisit this formally with direction from you on change or stay the course. So change the course is
you know coming or or stay is you got one more trick and you'll you'll present us those numbers at the meeting for both. These are the numbers for both options. Yes. When we when when we have this formally for y'all we'll show you what it could look like and we'll show you variance. Thank you. Okay.
Why do you recommend um one more time for with the loan because you still got 114,000 with 114. Why not change now? Well, you can that's what that's I'm saying we have that discussion. You can change now and then the 114 will just go into a you
know a bike fest stash and sit on it or spin or what but so I'm saying it's not an imminent you don't have a you got a hole in the bucket but the bucket ain't empty. Gotcha. Okay. Um the next thing I wanted to hit you with is civic funding. Uh because this
is maybe shades of what the next program for Bikefest looks like. Anyway, um if if you can change numbers around. So, this is where we're at. This is what we came up with last year. Um it's similar from last year. So, Leburg, the the art
center, we provided $10,670. The Yellow Jacket Booster Club, $5,000. The CDC, and this is the Black Heritage Festival. So, when they do their Black Herit, it's not their funding. And excuse me, their and their agreement is this is our contribution for the Black
Heritage Festival. So they have to spend it on that. So I don't know if you want to consider that CDC funding or an event funding. I would re I would suggest to you that this is event funding, not funding for the CDC. And then the
cemetery is obviously so 161,000. Again, um that money is a transfer out of solid waste. It used to be gas. We stuck it over the solid waste. I'm going to come back to this in a
minute. The other request in there that came to me um a little bit late, but nonetheless, it's here for your consideration. The art center lost funding from the state. They are requesting 30 grand in funding instead of 10,670. Um
cemeteries, what was last year? Cemetery was the same. Now, on let me throw that bit of bad news at you too. The cemetery has already been in my office two or three times saying that 161 is not enough. At this stage with the cemetery, I'll say this out loud
publicly. If we need to continue funding the cemetery at that level, you guys might want to direct me to give you a number to figure out how much is it going to cost for us to just take care of it. You know, it it it's going to be something.
I don't think Travis or Cliff have the personnel. Um uh but I I think we can crack that nut, you know, one way or another. And if you're telling me put the pencil to it, I will do it. I haven't done it to date. Uh and and really the the issue is I on a higher
level, the issue is going to be twofold. It's going to be sale and tracking of cemetery lots and niches, which I would go directly to Andy's office because that was my experience in the past. Sorry, this is the first time Andy's here.
This is this is really an effective method or somewhere in city hall. We have the existing staff that we can probably sell niches and track burial spots. The other side is maintenance. Um this is how we
did it in Sebastian. Uh it was a system that worked pretty seamlessly. So, if you want me to start cranking numbers, my guess, my knee-jerk reaction when I got these requests is you guys were going to look at me like you're looking at me now, which tells me I need to start crunching some numbers on what
would this look like internally. But I would say for this year, we probably fund it at that level one more time. And then you know this may be something we change midstream but I would move forward with this assumption and then if you give me the order to
start crunching numbers so we figure this out because the the the cemetery folks will be back to me and very very shortly. Um, B Brandy, there was there was one last slide of options.
There was one last slide of options that I wanted to show you in the general fund. And where is it? [Applause] This that one. So, I got that one out of
order. That somehow that I don't think I stuck it in there wrong, but I could have. Let me before I close it out. I know I've talked here for an hour and three minutes. Um, so I'll I'll be brief, but I think this is an important part of the overall summary of the general fund.
I think you have options and there's derivatives to every option, but I think you have three primary options. Option number one, do the budget as we proposed. that freezes five positions that gets you a roll back rate. Um, it's
pretty much exactly what's before you. It's pretty much SOP. Um, and and as I've discussed tonight, option number two, go with the mill rate of 3.4752, the same mill rate, the tax increase.
So, what do you do with that $425,000? You unfreeze the public safety positions. I think that's an obvious choice, but I'm going to tell you number two is not an option. Don't don't do that because I that I think you manage those freezed position and and if I
can't stress enough I let me and if I haven't done it in the presentation, let me do it now. I am totally not concerned about freeze of public safety positions. This does not mean we have less public safety. This does not people will remain
unsafe. This means that we haven't got to the increased levels that we wanted to get to for a host of different reasons and primarily it's because we haven't been able to recruit new police officers and I think that's a whole another conversation but I think it's
rooted in the fundamental change that we're making to the retirement process and we have the cash to manipulate during the fiscal year if if Chief IO gets on a hiring streak and he starts
getting people in and we're in March and he's got six, eight new officers and we haven't we've saved money for those six months. I'm going to say Joe, go get 85. So, I really think we can manage it the
way we've managed it. It's shortfunded. I got it, but we've got the cash and new growth coming around the corner that that makes that a good gamble. So option number two is an option but I don't think it's a good one
because the other weakness in the budget is these things. If you go to the same miller rate now you got $428,000 to spend in other places. I don't want to sound like we're spending crazy money here. It's half a million of 40 million.
So it's not a lot but it's a little. The tax increase isn't crazy but it is a tax increase. But there's some things that are pretty impactful that I think you can do with that 430,000. And I received a couple of emails and texts from y'all during the course of the year where this
is where you can spend that money because on the budget room floor there's things that we cut to give you option number one. And so now this is an opportunity to go back and look at those. So what are those things? Keep the public safety freezes in because of all the reasons I've discussed. So with
the 428, you can shift civic funding to the general fund. So how would you shift civic funding to the general fund? Instead of taking it from solid waste, spend that $200,000 out of this. Just fund it out of the general fund. And that might make you even a little
more frugal on what we do civic funding with. Or if we find other options for civic funding, like if we go private sector side and we have monies to shift around, that could be a whole net neutral thing. beautifification. U Mayor Reeseman has hit me up a couple of times now on creating a budget for the keep
America beautiful stuff and doing more beautifification things. Maybe there's some code enforcement stuff in there, getting a couple more people to get after code enforcement parking, those type of things. IO asked for two police texts. I put one in the budget. So that's how we would tackle that. Uh,
Commissioner Barry has been after all of us on a home grant to cover everything in in the city. So, the areas of the home grant that we haven't been able to co cover is basically everything outside um, cover height CRA. Although when we
talk about CRAAS on Thursday, we will be recommending a little piece of the the the 44127 CRA to do a little segment in in in that in kind of north and around John John El Johnson Park, but there's not a lot of homes in there. Um I'm not saying they don't need it, but I'm just
saying it's it's not a big impact. So you've got money there if you want to spend it on the home grant citywide. We cut a hundred grand probably respectively from public works and recreation and those are all the little things that you text me about like this
looks ugly. Can you fix it? Uh is and so that's you know so remember every time you do that Cliff gets a lot of credit because he's Johnny on the spot and he goes and fixes it. But there is look there is you know the side effect of you
know Fred Flintstone in the carpet. you know you guys there's a little rumping in the carpet when we got to stop and go do and that's because less people different monies and we're really squeezed tight I think the city looks good but there is room for improvement
so and these are the little shifts of when we go to roll back when we do these things fighting all these are the things that get cut so here's $428,000 to stick it back in there so we don't have to be you know maybe we can upgrade
from Milwaukeee's best to Bud Light. You know, I don't think we get champagne yet, but there's there's a couple things that we can do. Um, and then also, so I put in um um there's a couple CIPs that we have in the budget when we put this
out that we put in DST, but you can save DST for other capital projects. And kind of two good general fund capital improvement projects would be there's two major requests in there. The gym flooring I think was about
125,000 bucks at 200. The gym flooring, it looks horrible. I think it's the original gym floor. It needs changed out. It's not representative of our community. Um and and Dusty over at the library is is on me about the library
carpet. The library carpet is 350. I know that's a that's a lot of carpeting, but that's a lot of books and a lot of shelvings and a lot of things that need to get moved. So those could be two two big CIPs. If you knock those into general revenue CIPs, then you then
you've got that 250 and 150. What's that at? Is that 500? So yeah, five. So there's 550,000 bucks that then over in the DST fund can be spent on something else with that.
That's my summary. Any questions on the summary? Any questions for Al? And some of these things if you don't have questions, if you want, you know, we've got one, two, three, four regular meetings, you know, if you want me to
put a little budget comment review section in regular meetings just to kind of review and keep you updated like we've done in past years, we can do that. So you guys can mold this over. Um, but the the the takeaways are I think we've got a really a good general
fund proposal. I think you've got good options. Um, and and and the DR420 really needs to go out at 3.47. If you don't send the DR 420, the the DR420 out at the 3.4752
mills, you throw this screen away and do number one. I have a question, please. for the um shift to civic funding. How do we determine the dollar amount for general funding? I mean, do we have a limit that we could say?
It it'd be whatever you want, whatever you could afford, but the civic funding number right now is 168 or no, 180. I just showed it to you. That's the CI 181. So that number you would just bring over into the general
fund and stick it in miscellaneous or what that would just be 20 more if we go with the art. Yes. If you go with Yeah. So it' be 200 if you give the arts center its full request. And then I just have a question as far as the policing. Um
I I'm curious what's the next city? Um I guess if we're offering now 60 for we're we're higher than that 67. This CBA puts us to 65. That 65 was October one. October one. October one will be 65.
So what is our next city that's like right below us that's not paying quite as much as us? Lady Lake is over us and I think probably the sheriff. a couple of them are in the process like there's the maybe the sheriff to varies
you know but but there there's look what the marketplace is right now is a mad dash to 70 what's OPD 67ish yeah so everybody's kind of moving to that 70 number
I was just trying to see where we could do some recruiting I know from my perspective it seems like this is a neverending problem that we all I think there's been a couple of reprieves. You know, we got there and we breathe for a year or two and then we're back doing it again. So, it seems like
every other every third year we've got a big jump in police pay. And can I just add for commissioner the with the 65 um Chief Io also has room to bring in seasoned officers and they promote that in their recruiting that
they can bring them in at a higher rate. Okay. And they do promote that in their recruiting. M and with the increase of our the retirement that's another we hope that that will be a tool to help us another plus. Yeah. I you know I don't think we'll get to 85
this year this year being fiscal year 26 but hopefully we get a lot closer to that retention also. Any other commission comments? Are you looking for any direction right
now on we talked about so far? Like I mean I mean I'll just go ahead and comment. I mean I think you've done a great job on it. I think uh when I see our millage rate at the bottom of the list, I mean I have no problem holding the rate. Um if you're looking for input on the funding, I'll support the art
center request. Um I mean when you we we bought that building downtown, I don't think I'm going to abandon them over $20,000. I I I don't support the the increase to the arts. [Music] I I expected that. That's fine. Um I don't know where the other commissioners are.
Here's May I ask why J? Well, I mean why? Well, I mean you you already give a free building and you're already paying utilities. I mean, how much and you're already giving them money every year? I mean, how much more are you going to give the the center of the arts? I mean, you're providing free utilities and free
rent and you're already contributing money. I mean, I think enough's enough. I mean I mean they can maybe do some stuff on their own to generate money if they need more, but how much more you going to give this this organization? Well, they do do the generation. Um I mean being on the board I know pretty
much what the plan is and they there is lots I mean there is fundraising but still not enough. Well I mean I then maybe they need to cut back or something but I I just don't know how much more the city should continue to contribute to the art center. I mean, most organizations would would would be very happy with giving
them a free rent and paying their utilities and still giving them some cash every year. I mean, I I just think they're they're they're asking for too much based on I mean, I'm I'm just I'm really wanting to have a conversation. I'm not trying to back and forth. So, based on what are
you basing on from prior years? Well, yeah. I'm just saying there it's an increase in what they've been getting. Um I don't understand why they need more. Like I said, we I think the city already is more than generous with what they their package, if you want to call that, what they've been getting for years, but they've lost funding. That's that's
the whole Yeah, that's what I was going to comment on. They lost the I think 25 Yeah, the state funding's gone. So, they no longer have the same dollar amount and what you're working. I I understand that, but I don't know what's the city's responsibility to make up the difference that the state pulled their funding.
Well, we do arts for children. We pull in Beacon. No, I'm I'm not putting I mean I'm not putting I'm not putting them down on what I'm not on their cause of what they do. I mean, no, I'm not making light of that. I just think there's only so much taxpayer money we should we should give this organization.
I mean, we've got many organizations we don't give anything to. True. So, but this is I mean this has been funded for years. Well, and I and I'm I'm fine with keeping it at the current rate and the current conditions that I mean, we've been we've been providing them
free rent, if you will, for years and paying their utilities and still give contributing money to them. I just don't think we need to increase what we've already been giving them for years. I spoke with Amanda uh briefly this week about this request and um when she
explained to me that they lost the 25,000 which how she explained to me was they lost the 25,000 from the state. Um this is the band-aid to patch that up and and they are going to focus it's a one-time request. I mean, yeah, I can't guarantee they won't need more help than 10,000 next year, but the their plan is
we give them this money and it gets them through this fiscal year while they focus on other fundraising efforts and trying to close that gap themselves. I mean, I understand and respect your comments. I'm just I don't I'm just saying I'll support it. Was there any other husband here you needed input on today?
Well, here here's where I was going to go to sum it up. So, I don't you know, I don't know how much you guys want to debate back and forth. I'm completely up to you. But here's from from your facial expressions, the few comments that there were um here here would be my suggestion for you. Some of this can sit and simmer
and as we move forward there we're I'm going to be back to you three or it's going to be incremental. So call me, watch your you know we'll be in communicate from now till the the adoption in September. But these these things are going to be coming to you
incrementally. So the next one, Monday the 14th, you'll have two big items, three big items on the agenda. You're going to have this two CBAs agreement. I'm assuming I'm assuming that IFFF ratifies. So you're going to have the PBA on there for sure and you're going
to have the IAFF CBAs to ratify. If you guys ratify that, you've locked yourself into those increases we've talked about. So that's got to get in the soup. Also, Monday is going to be the DR420. I will have that on consent agenda for
expediency. It will be on there at the three point at the current mill rate level. If you want to lock yourselves into a tax cut or roll back, pull that from consent and have this debate
Monday. Monday. If you don't pull it from consent, that doesn't mean it's a done deal. I will you we can still talk about it in August and then we can still talk about it in September when we do the hearings. So
you've got up until September, whatever you want me to do as far as bring it on to you, talk about it in July, talk about it in August, you will have another you will have the budget hearings where you can debate it in September. So you've got all the way till September to cut that. So those are
the immediate things. And I'm gonna call you guys out. I'm not trying to just com mayor, you've been on me about beautifification issues and that kind of stuff. So, you need to be on your counterparts here up into those budget workshops to to get the extra money. It
it's that 420 that 428. So, I know that's kind of your project. So, as we move through and every it's August one, we'll have updated numbers. September one will have updated numbers under my matters and regular meetings. I I'll just put on a budget update to solicit
your input as we move forward. Commissioner Barry, you've been on me, you've been on the body about getting the home grant into it. So, really, that's where I'm going to leave it up to you guys to to debate this in the eight opportunities between now and September
where you fight for those things that you want. Um, and and as you have those discussions, you're going to be locking yourself in. really the most important one are those CBAs and the DR420. Um, so
if you if you pass the DR420 at 3.4 on Monday, yeah, we're going to need to come back. We're going to need to talk about where we put the 428. But if you guys on on on Monday pull it from the consent and you knock
it down to the 3.3, the the roll back number, the bait's done. You got to do number one. then we might as well not talk about anything else um for for the for the summer because you're locked in. So this is this what you got but you got
that's that's the bare bones that's the bare bones general fund budget. Um and you've got two two and a half months to talk about maybe what you wouldn't want to do with an extra 428. And so that that will give you opportunity and we'll weave those things in through
discussions that will come up based on our agenda. So to answer your question, unless you all want to continue to talk tonight, I I think we've got pretty clear direction. I was just being respectful to the Center for the Arts because, you know, they're here. So I didn't know how the
commission felt on that. I feel like they deserve, you know, at least an indication or signal from the commission, you know, where we're at. I mean, I support it and I was just asking anyone else's thought. So, we just not even consider I'm fine based off the state funding and
they're going to reapply for the state funding next year and if they get it, we can re-evaluate this and if we're we're going to reevaluate next year anyways. So, and and I'll and I will specifically even if it's up at the budget, I'll specifically ask you about arts again
come September. Um, I know that leaves them a little bit in flux, but you know, I but that, you know, I don't think, look, I don't want to be I know Em sitting right there, but that's not a city issue. That's a them issue. You've got other issues you've got to manage, and
you'll get to it when you get to it. Um, so in that regard, it it it, you know, it it will become, do you want to put it back into and keep it in solid waste? the solid waste is getting a little tight or would you want to put that extra 20 out of the 428 and and and I we
and we we're going to be having other discussions like we're going to be discussing the bike fest thing so that might be opportunity that that will be on your agenda so that's going to settle the civic funding question uh because as we broke into those numbers we'll have a discussion man if we go outsource on
alcohol it makes our that the bikefest issue is has multiple layers it has the chamber payment it has the civic funding payment it has the insurance payment. Now, so if we change and we go outsource and I'll bring Travis in and Travis will will will pitch kind of the different
concepts because he's the expert in those numbers. But if you go to where you outsource alcohol sales, you're probably going to take a little bit of hit in some of your sponsorship monies, but you're really going to lower your overhead costs in insurance and purchase
of alcohol. And you you you're going to know you're going to get you're going to get pretty close to X. And then you can coordinate that. So that might be uh then it's going to turn the the negative bike fest numbers into a profit center
and then whatever that profit center is then you go back in and fund civic funding in some form or fashion. You'll you'll know numberish on what you can do later. So it might so it it could be something where this
year you you don't you you change the composite of Bikefest for 26 but you don't change the budget because specific funding is coming from solid waste. But if but then in this fiscal year if you change uh the composite of how we do
bikefest you'll know what that number is for civic funding for 27. Right? So, and we'll have all those discussions. I don't want to keep beating the horse, but the lingering questions that you have this evening, we will be talking about, but I think we have pretty good
direction on where you go. All right. Now, I guess I was trying to give the Center for the Arts some kind of indication. I don't think there's really a vote, but just some idea. I hate for them to have to, you know, hang out here for a month or two wondering if they're gonna get money from the city or not. That's that's my point.
You can always call a vote. Commissioner I I guess if you want to do a poll straw now you know you could do that now I look at my fellow commissioners I hear fine I will I mean I'm open to wait I just wanted to
I'm for the the funding for the arts as long as the millage rate you know okay so if we roll back the rate then not going to be any fun Yeah, and I I'll go ahead and go on the record. I'm going to support the same rate. 3.475 being the
when you throw Mont Bird out with the lowest um and I mean I wish we could deliver a tax cut, but um it's impressive that what we've done at the lowest mill rate in the county by far. Um and one more request. Can I get a new chair?
Actually, they're coming. I have to brush myself off. All the leather keeps coming. I know. I know. You got Is the procurement man procurement department getting that? It is going to look a lot like what you're sitting right now. This one's actually shedding and it's I'm afraid it's going to fall over backwards.
They're No, they're on the way. May I ask I'm sorry. Can I flip back to bike fest? I have a question in reference to insurance. If outside um insurance will change based on outside vending that's not including included with the outside
vendor. I mean that's no. So no it let me answer the I don't know I won't insurance we bring in an additional insurance coverage because we're specifically selling alcohol right
but wouldn't we if we do outside source we will have the vendor hold us harmless meaning if you drink too much because you bought it from Acme outsource company and then you crash into the telephone pole
Then we're going to sue the city, you got to sue Acme, and they will hold us harmless. As long as that company holds us harmless, which is typically the case, then there won't be the need for the additional insurance that we purchased. Last year, we purchased it
for 48,000. This year, I think we got it for 25,000. Oh, the 26. Without getting too bogged down in those numbers, we we give the chamber 50,000. I don't give it to them. We pay him a fee to help. But we also deleted, help me out, I believe all the other, we were
making a lot of miscellaneous contributions over the year when we went to 12 15,000. I just wanted to clarify there is a net there. Yeah, that goes back to that number. That list used to be a whole lot longer. I don't I don't remember. What did it used to be?
How much? That was partnership. I don't was it in 23? We were at 70,215 outside of the cemetery. Outside. Yeah. So out when the cemetery was low. So it's like the numbers always been about 180 to 200. So what's happened is as we've trimmed out other
other groups, the money shifted down to the cemeteries. So the outside groups that you're funding have gone from probably a list of eight to 10 to three. Do you have numbers on the cemetery for what it was three or four years ago?
So the cemeteries started at 87. So it's doubled, you know. When was it? When was it? 87. Um, in 2010. Yeah. And then it's just it stayed pretty good until we hit like 2021 is when
203 they went to 161 and they in 22 they're at 111. Do they provide a budget of what that money goes towards? They do. What's the What's their top just mowing and stuff? I don't know. That's okay. I have it. That's fine.
The big jump was equipment. They had It seems to me there was It seems to me there were two or three jumps in it. We share CO money with them. We gave them some used equipment for equipment. That was a big jump. Your utility bill was going on.
Yeah. All right. Any other um I sent it to the clerk. Um but I will Andy, will you send it out to the commission? So Andy Andy will send it out to that the PowerPoint. She'll send it out to you. Any other questions? Thank you to our city manager and all of our staff night
one and we will see you all on Thursday. Yeah, but before you so so I I don't want to prolong it but so when you see this one we didn't go through step by step on each of these little department stuff um but we captured the highlights. So if any of you guys have questions on
the individual departments just please call me. But most everything in there is we summarized and you know it's pretty much verbatim of last year and it's we continue to pay people and buy paper you know. Last question. Um in the uh
well u trying to think what it was it was the uh you had public works and uh recreation under that 428 number you know the to spend. What was there anything particular in that? We cut them landscaping monies and plant monies and equipment.
We touched on most of the items underneath. I just their budgets were higher and we went. So, so when we Yeah. Look, I mean, for lack of better words, they're arbitrary cuts. So, department heads go through their detail spending, they put it in budget format, we come through it. When
we see little blips up or down, you know, when it So, by the time it gets to my desk, I want your numbers to be streamlined and I don't care what you're spending it on. And if you're a little high somewhere and I and you don't give me a good explanation, we argue about it in the office. And if you haven't sold
me, I'm not going to come and try to sell you. So, I'll just cut it. And there's probably about 200 grand, a 100 in each public works and recreation that I thought needed to be in there first swing because it was different
maintenance for this, maintenance for that. Um, and then when we got into the CBA discussions, I was like, we we got to we got to pay the the police and fire folks. So, that took precedence. So, I robbed Peter to pay Paul. But now you got the 425. So, now we can give Cliff
and potentially you can give Cliff and and and Travis some money back. Well, thanks again to staff. And we're all done. We'll take a motion to adjurnn. So, moved. journal.