we will start with a presentation from our city manager Jerome Fletcher about growth and how to pay for it there will be some time after his presentations for your questions if you have a question or comment there are two ways to communicate with us you can raise your hand or use the chat box you can use the raise your hand feature to indicate that you have a question or a comment to do this locate the raise hand button on the bottom of your Zoom window click on it and we will see your hand raised we will then call on you at the appropriate time for you to unmute and speak alternatively you can type in your question or comment into the chat box the chat box is located at the bottom of your Zoom window as well simply type your message and we'll address it as soon as possible please note that the chat will be monitored by a moderator who will ensure that all questions are addressed in a timely manner feel free to use whichever method you feel comfortable with now without further delay I'd like to introduce our city manager Jerome Fletcher after his presentation will open the floor for questions and comments jerl thank you Jane that was great I appreciate that um good afternoon welcome to everyone all of our department leadership and our team as well as um our visitors and our community and citizens we're grateful to have you here today um as I share my screen we're going to talk about what this year's budget looks like uh some challenges of it um this specific the specific topic today is growth and how growth pays for growth but as we begin just a brief reminder that um we use an outcome based budgeting format which is Performance Based um so we kind of Define the outcomes that we want through the commission through the Strategic plan and the pillars uh we determine how much they cost and what does it mean to provide them we identify resources uh that can hopefully cover the cost of what we're providing and then we sort of look at the funding gaps and then we confer with the U the commission to figure out how we going to pick and choose what we're going to adopt and Implement that's sort of the process that we go we go through right now we're in the information gathering phase not only from the community but from our department heads on their needs and what they think their next year will look like and operating under some strict parameters as we go through it but that's how we begin the process so Community budget meeting growth and how to pay for it today is April 16th um the first slide talks about the actual changes and fund balance for a three-year review uh a couple things I want to point out to you here is one the general fund is our main fund as it relates to um the services we provide you there are other special funds that are very um narrowly focused or specified for a different department or purpose but the general fund is the one that you think of when you think of what does your government provide you and how does your taxpayer your property tax um flow into the budget the road and drainage District collects and the fire districts and the building fund they all collect uh fees and assessments at various times and as you can see the numbers in these balances and the inbalances mainly are on the rise and that's because of uh our growth and what has happened in the city over the last few years but when you talk about what happened over the last few years you come over to the SEC next slide and you see that the road and drainage district is in the negative by $15 million and that's for money that we paid out of that particular fund for Hurricane Ian and we've been reimbursed for some of it but we still have I believe at least 30 million out there still to recover at some point in time it's a point in time that we do not know but we actually hopefully think that based on what we've already received we've gotten some sooner rather than later so it's been very helpful in the general fund category you see the $7.7 million that is what we have left in the general fund in order to get us through um not only this year but hopefully something we'll build on it next year um to put that in proper perspective what we've done recently is the commission has given the approval for $4 million of that money of the 7.7 to be used towards finishing the design uh work for the police headquarters if that sort of triggers it to you to connect one dot to the other dot the general fund um the adum assumptions have to be have to be um sort of flexible right now at this point in time so we're estimating an increase of seven and a half percent Believe last year that number came in at about 10% which was still closer than our average but it was still um higher than traditional years based on the market that sort of went hot and then it went cool and I would say it's probably still cooling but we still should hopefully get um an increase in that one that will help us balance our budget is desperately needed um 96.5 collection rate is very good um we with these assumptions the millage rate that we currently have of 3.6 7667 will bring in an additional 2.3 million in next year's budget which sounds great um all funds we use a okay there we go uh use a utility Factor of 3.5% for salary growth of existing levels in service our contracts are being negotiated right now I think the PBA is almost complete and the and the fire is going to resume soon the as me will be budgeted U the same as non-union employees and a salary growth of 2 and a half% for cost of living the CPI adjustment for existing levels of service and Personnel is included in there as well the cost impacts with our capital projects the ongoing Staffing and operating cost and maintenance uh that has a different sort of connotation this year we are now at the point where our team has uh alerted us that the inspections of the buildings that we were waiting on has been completed and the total amount of that is in approximately $8 million and in paying for those capital projects improvements I'm speaking specifically of hurricane Ian we have to pay for it first and then re get reimbursed uh through insurance and female at a later point in time so those numbers are going to cause us to have to Pivot on the money that we do have in order to prioritize and phase in those improvements sooner rather than later because to put it in a proper context if we had a storm tomorrow and there was new damage the uh FEMA insurance would not pay you for the new damage because you didn't fix the old damage so we've got to make sure that we prioritize fixing our facilities uh as soon as possible and I'm thankful for our team for having to get us that information uh in recent days uh general fund changes um you see a total of $5.4 million the increase of $2.3 million on the other U page like I said that was great but it's not enough because our Merit increases our CPI adjustment health insurance and inflation of operating costs uh total more than that so these are the some of the main um cost drivers that are in the general fund and things that we have to allow for and things that we have to solve for our priorities and our pillars this is what guides us our commission has done a great job of outlining those they will actually meet on tomorrow I think it is to sort of refine and finalize their priorities with our strategic planning uh leader Doug Thomas and um once they have those finalized we just use those to bake those into how do we balance its budget if it's an outcome based budget then you figure out what's the most important and you allocate dollars there and as we start talk talking about what are we going to save and what are we going to shave off then we go to the priorities that are less important to the commission and we talk about them there um this this way of budgeting is different than just going line item by line item which creates uh takes a lot more time and doesn't really get you to accomplish on what really matters the most and it also leads to lower quality decisionmaking so we want to keep our um our board and ourselves in those meetings at high levels of what they they want achieve and then we are set out to achieve that task when you look at this slide this shows all funds by pillar so as you look at it you can see that more than not you see infrastructure and Facilities 40% and you see Safe Community at 31% those are our two biggest chunks of the pie we have to take care of our buildings and infrastructure and we have to be safe in this community um no one's going to want to be here I know we're one of the top growing cities in the country but if we don't maintain these two pillars everything else will literally crumble around us so that's why they're so important but you will also see that over the years last couple years especially you know the economic development and the environmental resiliency and sustainability um pillars have grown in fun because we've dedicated resources to those areas the commission has agreed and we have done increased Staffing in our Economic Development Division we also have the natural resource division to help the environmental pillar so we're making we're making Headway we're making moves but you know it can all be done in one year but I would say that we're making progress uh when you look at the general fund itself you see 45 million or 61% for Safe Community our uh police force has increased uh tremendously and based on the consultant report we got last year we're scheduled to increase between 16 and 20 positions each year to keep up with the actual growth of the city the growth of the city has also sparked another conversation about the headquarters with the police and that's been a very good exchange of the community um engagement and feedback process and uh We've listened and we've heard and we'll be bringing some recommendations back to the commission board on April 23r at 1M so we're looking forward to that very much um the ulc update um we've heard a lot about the process we've heard a lot about why are you doing this and where are you doing this um we're doing this because it the code has to be up to date in order to provide the best opportunity for the success you want to attain if you have a code that's outdated and you're trying to meet um your other Economic Development goals or the growth goals of the city and they're out of alignment it just makes it impossible to get to where you're trying to go we've already reviewed several chapters of the ulc and chapter five which is signs which was a very um highly concerned uh chapter will be on April 22nd so we look forward to that um the natural resources will be presenting to the communication excuse me the city Commission on May the 6 uh we will then have the first reading of the companion comprehensive plan amendment in May and full adoption of the comprehensive plan in OC is anticipated the end of June or beginning of July uh this process has been many years couple years in the making um but now finally having being able to see the Finish Line I think that that's going to help us as we talk about what does this city need going forward and it's a lot but I think that these these um changes and updates of the U ODC which staff has spent an enormous amount of time on uh is going to bring that to light for you so the need for commercial versus residential taxes um the city needs needs needs to improve its commercial rate right now it's just 8% 8 between 8 and 11 um we want it to be between 20 and 30 I love that number um the way that we get there is you might see us and hear us in public and the commission vote on projects that not that you say well they could have more commercial when when I tell you and you should know that our team and staff puts that commercial Priority above everything that's true but we don't shut deals down and walk away and get nothing and leave our city in a worst place by not doing nothing we get the best deal that we can get we know where we want to go and we know where we're at so we stick strong to that but it's it's a negotiation process to get what's best for us and what they can um live with so that is not going to change when you say 90% of our Workforce travels outside the city to work we need to keep those people here we need to keep those dollars here that Revenue here and the way that you do that is you bring jobs here and we're working on bringing more jobs to the city because that's what we need if we have healthc care industry that's um booming right now here in the city because of the upcoming hospitals so we're look we're very excited about that um and last it says the ulc rewrite proposes to convert single family land into tax prod tax producing uses along Main Road corridors we've got to better use the space that we have and create sort of walkable places for people that want to be in the city um we think that the too blade Corridor is about to have a huge boom in activity and there should be a walkable place that will meet that need and show everyone that we care about um both sides and all 140 104 miles of the city uh Economic Development Gateway Corridor study this is so important you talk about I75 and Sumpter we know that a hospital is coming on one corner we know that we want um a large um business activity on the other corner and when we do the study it's just going to show you exactly what we think that this area could be and we have to prepare for it we have to prepare for it now and that means having all kind of housing available we see different housing going up whether it's Workforce attainable housing affordable housing um we need the right kind of housing while we still try to make sure that we attract the type of businesses here that brings jobs and keeps Revenue in the city um the activity center six study this is one that was for I75 in Yorkshire it was actually pushed off from 24 to 25 to allow for the other one to be done because the the hospital coming over at Sumpter is going to come quicker than the development is on I75 in the yorksh rsh area but it would also provide potential land uses scenarios and growth and job analysis and when you hear growth paying for growth and what we think about it is well it should be dollar for dooll and you know why are we behind the curve so to speak and some of that is historical as I mentioned with the ulc if it's not written right you can't you can't build right and you can't manage the money correctly uh some of it is impact fees that weren't charged as well as they could as high as they could and the theory behind that might have been well you know well we don't want to be we don't want to charge as high as impact fees as we could because we want to scare people off well now guess what everyone wants to be here so now we're actually trying to catch up to those impact fees to make sure that we get the most that we can so that we reduce the burden on the citizens and taxpayers um hospitals and other current efforts like I said Sarasota Memorial um is going to break ground on both of their sites they confirmed that they could do two at one time and that is great for us um ACA is breaking ground over in Wen Park in May that's going to be exciting the aadia Behavioral Healthcare is already underway you can see some of that activity over off of um too blade and we're also working on two potential commercial entertainment districts along the too blade Corridor now I think Toledo Blade is um geographically the center of the city so when you think about that and you think about that wait a minute it really is that means there's that much land all around that area it's super important for us to maximize it and build it into something that people can have a diversity of options to do whether we talking about eating whether we're talking about entertainment whether we're talking about child care whether we're talking about U community activities it's it's it's very important and the model and the vision that we have looks tremendous to bring some well-known places to feto Blade as well as um some different sort of uh shopping opportunities as well impact fees uh I said a little bit about this earlier so we began charging full impact fees in 20122 that was not that long ago there was a lot of um I opinion money left on the table but again had they charged more they could have driven more people away and we may not be in the position that we are in now so it is what it is and more importantly we want to move forward by just making sure that we take care of tomorrow today by charging the right thing impact fees can only pay for infrastructure improvements that increase capacity such as widening roads new lanes and traffic signals um but they're a big piece and of the pie when we talk to developers about what they want to do and what they can do U we have limited borrowing of authorities for impact fees um allow us to be able to get things done or repay for things that were done uh and it works out best for everyone but it cannot be used for maintenance and operating expenses so this year our city manager considerations um low new employee requests we had this conversation at the first budget workshop with the Commission in mid-march um and they have given a very clear directive you know I think last year we had around 50 people that we added and aside from fire police and the warm spring staff it was seven I believe and I think four of those were needed an HR so it wasn't great in my opinion last year this year uh I know police is going to be lower than they were last year because they received a grant that helped paid and offset a cops grant that helped paid and offset some of their officers which is greatly appreciated uh I think fire has a few but we have a few that will sort of figure out how we're going to manage them but the city is not in a place where it can create or bring on new positions for the most part because it's a challenging year um when you talk about being challenging I propose that there was an incremental rate millage rate increase sort of two to three% over the course of time to sort of get you to where you want to be but right now we're in the fourth year of keeping our millage rate same and I don't think that's sustainable for the future and you say well why isn't the growth paying for that well the growth pays for it but it doesn't come in at the same rate that you um anticipate for the expenses that you have right now um our ability to be financially stable is going to be at some point in time if it's not this year it maybe next year depending on that millage rate and whether it goes up or down the Erp that we're excuse me enterprise resource um planning system that we're ping for this is if you don't know this is this sort of the the brain and the central connection of what your technology has for HR Finance you know it it all works together to to provide the system that we work on on a daily basis our system is couple decades old it results in errors and more manual processes than we would like we really need to move to something that's more efficient it's a painful process it's a it costs a lot of money and it takes a lot of time it's not something anyone enjoys doing but um we want to be the most efficient government and if we want to do that then we have to make sure that we have the right um equipment and Technology to do so uh new police headquarters may have heard a little bit about that so touching on that we are bringing back to the commission on April 23rd at 1M some uh recommendations on how we can move forward we have we have been talking about this now especially with the price of it for about 6 weeks and we've heard a lot from the public we've had a town hall we've heard um emails and voice messages so first of all we're grateful that everyone um for the most part supports the police department we have a top quality Department led by Chief Garrison and we are grateful for their support but we also heard their feedback you know what can you you can afford this or where's your plan and some other things to that nature and you know with the ctax list and we've heard a lot of good feedback so we're going to try to provide something that helps us to move forward in the conversation but at the end of the day the longer you wait for the headquarters one the more it will cost you um and that's just a fact um the resilient SRQ Grant infrastructure program we are looking to get hopefully that's $21 million broken up into different buckets and the bucket that we recently applied for was for um public entity for infrastructure which we should be able to get a good amount from that based on the damage that we sustain from the hurricane as well as our connection to the low to monitor income requirement of SRQ as well so we are exploring that in every way that we can to see what we can get and I just love to remind everyone that this is federal money coming to us and while all of our money goes up into the federal government in some shape form or fashion this is not money that came out of our coffers or state coffers which I think is something that we all have to remember as we're grateful for the opportunity to participate in the program uh financial support to community projects um so the new ycma building on King Plastics property uh I am trying to help them gain financial support through the state and federal levels those are options one and two um they are they King plastic is actually building the actual building on their property YMCA will run the building once it is complete but for us to have a building that is going to offer um daycare first I know they're gonna offer it to their employees but to the public as well and then have programs and activities for uh our youth to do on that side of town that is an exciting exciting project uh and just like the city has contributed to other projects in our area such as the Chan library or or STC there may be uh ask for us from there as well but first things first you try to get money from the outside and see what you can get and I feel real positive that we're going to be able to do that and we're going to be able to do that for the STC expansion as well um we we talked to our um our lobbyists we talked to our our friends um through the state and you know the expansion of the SEC will help us create more Health Care uh programs that will allow for us to then train our employees that will work at the hospitals and then keep them here we want to train them and keep them here we want don't want them to train them and then them go out out of Northport the goal is to keep them here so there's a great symbiotic relationship between those two different Comm projects that will pay off its value back to our community uh hand over foot so that's why we embrace our particular Partners um and it's no secret that I want us to embrace our nonprofit Partners even more but that's a different story for a different day but just know that we care about our nonprofits and we try to do the best we can within the constraints that we have but we're not going to stop trying Jane I'm gonna stop right there great thank you Jerome for that insightful presentation on our financial growth so we will open up now for questions and comments please remember you can either use the raise your hand feature or use the chat box um to ask a question and I will give it a minute for questions okay I am not seeing any questions at this time but if you have any unanswered questions um I will put the email in the chat box it is budget info@ Northport fl.gov please email us at any time if there are any questions that you would like um to have staff answered about this topic so thank you all for your active participation in today's Community budget input meeting the engagement here is crucial to shaping the future for our community so as we conclude the session I want to remind you that your involvement doesn't end here for additional opportunities to contribute and stay informed please visit Northport fl.gov budget input there you will find resources such as other workshops details about upcoming virtual and in-person meetings as well as access to our budget tools again if we were unable to address your question or if you have follow-up inquiries about this topic please don't hesitate to reach out to us via email at budget info Northport fl.gov and we will make sure to answer your questions thank you Jane thank you