please rise for invocation by Deacon Mike rosalino of epip church Follow by pledge welcome thank you ask that you bow your heads and pray with me Heavenly Father our creator of all of
our great City Lord we come to you first to give thanks we give thanks for the great blessings you have bestowed upon this city the blessings you give us in your creation that remind us every day of the beauty that you have given us in our beaches in our parks in our
community we thank you Lord for all those great blessings we thank you for the great people you have given to this community those who run businesses those who teach our children those who serve as First Responders those who volunteer to make our community
better Lord we give thanks for all these blessings and Lord we ask that you send your wisdom down upon this council tonight that they may make the best decision ISS for our community that they may be given the wisdom to help our community to continue
to flourish to continue to grow that they make decisions that help the youngest of our children to the oldest of our population from the poorest to the richest from the most healthy to the sickest Lord we ask you just send your
wisdom that guide these decisions tonight that they may Aid our community to use your blessings to give glory to your name and let all God's people say amen amen amen thank you 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 the here here here here here
item four public comments on consent agenda items only any public comments on consent agenda items only come on up Robert welcome thank you mayor council members Robert rehagen 1425 Extra Drive Port
Orange um with regard to item number seven the mo MOA with the uh ice um I Tried reading this and it talks about the designation of authorized functions and it keeps talking about the power and
authority to in interrogate people uh power and authority to arrest without warrant and um it it it references all these Ina and CFR things uh sections
which are very confusing because I don't know what they are and um so I I really don't understand exactly what they're going to be required to do but it does say that the agreement participating Lea Personnel performing immigration related
duties pursuing to this Mo MOA will be assigned to various units teams or task force as designated by ice so um you know it sounds like the old west where the sheriff runs out and gets a posy
together when when he wants to chase after the bad guys um and ice will be paying for these people when they're doing these duties uh so it it's hard to tell how much time these people are going to be spending doing these
things and uh so I guess my main concern is that we deserve a better explanation of what it's all about and what's the impact on the city and the police force and um I really don't think this is routine business and it shouldn't be on
the consent agenda thank you thanks Robert thank you Robert item C public participation do we have anything tonight Amanda well uh mayor we need to do the consent agenda that was just public comment on it yeah my apologies no quite all right have a
motion to approve consent agenda items 5 through S may we usually no we do the consent as a balance believe we make a motion to approve the consent agenda
second all in favor signify by saying I I I I any opposed all right item C any public participation non agenda okay thank you item D City comments and additional items by council members we'll start
with Mr Green tonight I don't have anything tonight Mr Mayor all right and I don't have anything tonight sorry I got stuff lay it on us so one of the things I wanted to point out uh posted out uh the other day
dealing with Art House underneath the Down Under Bridge area on the east side they got the First Column up um painted so if you haven't taken a look the the beauty of Art House is coming alive on the column so beautification coming so
that's a good thing um wanted to point out a date to save um mayor's golf tournament June 17th uh making sure everybody goes head and mark your calendars for that for June 17th for the tournament I've always uh said I was or
June 14th excuse me uh said that I would be there but uh it always tends to be uh I don't know the date until it's on top of me so I want to make sure everybody gets that date out there and then a fun one that was posted out last week um
which I thought was kind of creative and uh I won't to get Susan yelling at me later for this one so I'll say it for her the Parks and Recreation Center from April 11th through the 17th has a bunny search with QR codes
and the trees going around city center for the kids to go around and QR code and once they have all the QR codes done they can go over to the rec center for a price what a cool ideal so that's from April 11th through the 17th for Easter as far as a bunny search and that's all
I got tonight the uh the the mayor's golf tournament sells out so for those that are interested you got to get your teams together and get registered early and I believe there is a bit of a discount for early registration as well and I think all that information is
available on the City Parks and Rec site okay councilman Foley what you got I just want to let you guys know that I have an appointment tonight that I have to attend to so I have to leave at 7:30 but I will be fully locked in until then and anything I miss I will obviously watch on YouTube at the end of the night
so all right uh just a couple quick comments for me uh just want to say thank you and congrats on a successful event for the spring uh Brew Fest that was held over the weekend the um uh all of the city staff that's involved in
that the the volunteers and certainly the Port Orange Community Trust team did an amazing job I got to get go by for a little bit on Friday and um the weather was perfect and everybody was out there early so uh look like a beautiful event down by the w water so great job to
everybody that was involved in that and then just a sad bit of news I I did want to mention tonight that um a gentleman by the name of Tony Delonte uh passed away recently and Tony had served on our uh Golf Course Advisory Board had been a fixture um in the Cypress Head Community
for quite some time just a super nice guy and and uh you know I want to recognize his service with the city of Port Orange so um we appreciate everything Tony gave and did for the city so it's sad to hear Tony pass away that's all I've got for tonight item
nine city attorney's office nothing tonight nothing tonight item 10 City manager's office I just wanted to introduce our new Finance director Mark Simpson who started this week you all met him individually uh during the the audit briefings but he's here tonight in the audience and we wanted to thank
Linda and her team for what she did in the interim uh solid job as you heard with the audit and how well she did in that role and we're really excited to have them both here and have a full staff so excellent welcome happy to have you so look forward to working with you
for sure Mr May Mr Mayor if I could um I wanted to make a mo motion if we could to move item 13 up the agenda to uh to to so we can get them out of here before we do the audit discussion I like that do we have a second
second all in favor signify by saying I I any opposed let's move item 13 up to now board appointments interviews and reports item 13 golf Advisory Board appointment anybody presenting on this
no I don't think so I think it's two two two position yeah so we got uh yeah two uh Richard Lee and Jane T Taylor have served on the golf Advisory board for the past eight years they would like to remain and be reappointed uh and there are no other applications so I will
entertain a motion uh to reappoint both of these fine folks to continue serving the city I would like to make that motion to uh reappoint both Richard Lee and Jane Taylor second have a motion in a
second you guys want to come up for just a quick minute sure talk us out of it now we don't want to talk you out of it more than anything we just want to yeah okay so I don't really have any questions for either of you guys but I
did want to take an opportunity to say thank you it's important to have people who want to ser on these boards and um as you can see we don't always get a lot of people interested in serving on the boards this is an important one uh you know the the Cypress Head course and
what the Golf Community actually provides to the city is very valuable and uh we we we've not always had years strung together that have been as good as the last few and uh so we appreciate that there's been a lot of work into not
only uh having the course managed well but maintained well and and that provides an enhanced benefit to not only the Cypress Head Community but but all of the the folks in the city of Port Orange and a lot of that has to do with folks that are willing to sit on the board and be the eyes and ears so uh for
me I just wanted to to say thank you see if any of these folks gu think well again I want to just make note both both of these both of these crazy people also run uh and have been on our HOA board for a long long time Jane just stepped down off that board after being on it for a long time very long uh she's going
to go to the next the next phase of her grandmotherhood but uh but rich rich assumed a role as well but we appreciate what you guys do for uh for the golf course and for the city thank Youk you yeah I just uh you know in the subject
matter here it says quality of life and that's really what we try to provide here in this city and you know Cypress Head is provides the quality of life for people maybe not young people we'd like to see younger people play golf but as you certainly put a lot of older people out there I just need help with my
quality of golf swing so we can work on that when I'm show up you're looking at the wrong guy and the wrong G good with numbers though great with numbers the man to your right might be able to help more than I get they can help add up your scorecard Sean you want to know why the golf course has done
better financially last couple years cuz I Haven because I haven't played out there all right I haven't been able to make it out there maintaining the course has been a lot easier it's been a priority for my Administration anything just as a reminder the golf course is rated 24th in the whole state
of Florida amazing it's amazing and a course is in excellent shape it when people come in to play they are absolutely amazed they think it's a you know it's not a municipal course and it is well that that's that that that really is something that I think doesn't
get really recognized as much because not everybody is in the golf game or understands that but you do not see municipal courses that look like Cypress that is not the norm it is far from the norm in fact and to see and in fact there are a lot of private courses that
I think are envious of how good the Cypress Head course is and the fact people choose that course to play a lot over some of the you know the private courses in the region so you you were point on with that I I actually was given a membership to a private course here and I would say I play there I've
just played LPGA and I have played Cypress Head recently and Cyprus head's whooping both of them I mean really it is in such great condition right now so it's an asset to the city it is yeah I just wanted to comment briefly I really want to give credit to the people at the
course that are making a lot of this happen and a success uh the team that they've got there now has done an outstanding job beginning with the marketing director uh Leslie house who's put together a really effective marketing plan and has executed on that plan and is able to measure the success
of what she's trying to put together um Darren bash who who's the super core superintendent who takes care of the greens and the grass and the fertilization and the bug killing and and all that kind of stuff he's really just been outstanding in terms of maintaining the course and then Jeff Dayton who's the general manager has
really been a a a glowing example of how to run a course uh getting many more products into the clubhouse um sales there have catapulted I think they're five or six times greater than they were historically and he just really runs a very tight ship uh the people who work
for him like him uh because he's fair and honest and uh he doesn't hold back when he wants to tell you something and uh he's told me a few things so I can express that through teen Le but anyway I just want to make sure you realize that that you know Jane and I and and the golf Advisory Board I think do help
um you know trying to keep things clear and and look for different aspects that we might want to increase participation and how we can do some things better than we're doing them today but those guys really deserve a lot of the credit for the success that that they've had them so we appreciate you guys very much so
thank you guys thank you guys anyone else want to comment about uh the reappointment of Richard Lee and Jane Taylor uh good nope I'm good all right all in favor of reappointing Richard Lee and
Jane Taylor with another three-year term to the golf Advisory Board appointment signifi by saying I any opposed 0 give us another great three years thank you guys very much we'll double your pay
yeah Special reports item 11 fiscal year 2024 audit discussion with James Moore and Company give it to us Zach welcome thank you good evening yeah just give it a good heart
there you go there we go we're working on that's a work in progress so all right uh good evening Zach shafor partner James more in company all right I think I have it all right there we go all right so we are here to review the annual audit for the
fiscal year ended September 30th 2024 I'd like to start thanking the council for the opportunity as well as a big thanks to your Finance team uh you know Linda really carrying the Reigns these last few months I do want to just highlight as discussed with you all individually this is the earliest that
the city audit has been completed you know going back at least 5 years probably a few more years beyond that um additionally as we'll get to it's the cleanest audit um that we've had in a number of years so so many moving pieces this year an Erp uh accounting system
conversion that is not something to be taken lightly that's a lot of extra work on top of the day-to-day on top of the budget on top of getting ready uh for the audit so in addition to the results I did want to just highlight that as there's a lot of hard work I know from staff that went into being able to make
this happen um this fast uh as always the city does prepare what's called an annual comprehensive financial report uh last year's document was submitted to the government Finance Officers Association and received the certificate of achievement for
excellence in financial reporting uh this year's document uh is the same we expected also to receive that award and what's notable there is there are kind of a baseline of what the state requires as part of the annual audit uh the guidance that the city follows in this
comprehens ensive uh report includes a series of items just kind of above and beyond those Baseline requirements it's really the the most kind of formal uh guidelines for the most complete and comprehensive report that can be prepared uh from an audit report
perspective there's five reports that we issue here these are Management's financial statements and we do have five reports that summarize the results of the audit uh the first is the audit report on the financial statements we issued there an unmodified opinion this is the best opinion that we can issue
effectively saying that the numbers can be relied upon uh this year the city went over the threshold for both a federal and state single audit uh what that means is we have to perform really a separate compliance focused audit over your major Federal grant programs spent
during the year as well as on the state side uh we had no compliance matters identified or findings in that report uh the third report is a report on internal control and compliance while this is not an internal control audit there's separate engagements for that we do look
at if we had any audit adjustments or kind of Errors found in terms of the numbers we got versus what shows up in the financial statements as well as transactional areas related to uh the overall Financial activity of the city we had no material weaknesses or other
comments identified in that report and then the fourth and fifth reports are really just a catch all of other items required by the state of Florida mostly centered around Financial condition if there were any certain kind of red flags or triggers that we saw we would have to notify the state on no such items as
well identified uh in those reports as we've done the last couple of years I I included a summary of the different kind of types of comments that we could have in this report and what we have for six years running uh as noted
not only is this audit as timely pretty much as it's ever been um but there are no audit comments you know there was a a decrease in Trend kind of got to that zero number ough I always do say audit comments are not a bad thing it's it's what do you do with those and I will note that most of the comments that we
had even when you see those numbers constant in most cases those were new comments in the following years it wasn't even that many comments that kind of um continued on because I always say it's you know not that you got the comments what is you know your team doing to make sure it's addressed and
and setting the city up as best as possible going forward from a number standpoint I always look at the recent history of your general fund fund balance effectively your your general you know primary reserves of the city uh in total your general fund fund
balance almost even with a prior year about a $1 million increase although most of that related to your building maintenance internal service fund got rolled back into the general fund and pretty much had very similar balance um to that increase uh and when I take
those numbers always put them into perspective relative to the budget to compare kind of to your internal uh policy looking at that assigned and unassigned or unrestricted Reserve relative to what you spent uh you're at about 43% Reserve this year right around
the five Monon Mark uh the gfoa recommends a bare minimum uh of two months or 17% um but does acknowledge you know when you factor in other risk factors uh such as being prone to natural disasters and hurricanes that you know it's
consider what reasons are there to be above that so A number of years ago the council said the you know internal minimum policy is 30 to 35% so pretty much right in line with that a little bit above um but that can you I would say easily fluctuate within 5 to 10%
just based off of the timing of projects and things of that nature so overall the city in a very strong uh and healthy Financial standard uh your proprietary funds primarily Water and Sewer uh I was looking here at your unrestricted net
position just from a quick Trend perspective if there's any red flags or other concerns that pop up um most of those moving in the right direction some fluctuation can be noted such as you know the water and sewer may go up or down based on the timing of capital activity uh then we talked about Cypress
Head the golf course uh you know moving in the right direction uh consistently the last couple of year so that's always a good thing to see as well and then finally I always like to touch on the Pension funds primarily from the standpoint that the city reports what's called a net pension
liability in your financial statements that shows up as a a$ 28.5 million liability um but it's really more just for informational purposes you know the city will not have to cut a check for $28 million uh that is one where those amounts are presented really for
informational purposes the true budget impact you know immediate obligation of the city is just making the annual required contributions fun those plans based on uh the pension boards and the Actuarial valuations that are done every year uh that has been done consistently
uh and all of those numbers look a little bit better this year this really kind of es and flows with the market so if we were to look you know I think I told everybody individually if we were to look at as of today where are we those percentages probably back in line with the 2023 numbers but again with
pensions it's about the long game and whenever there is a decision Point saying okay what is the impact of this going to be to be for future decades but again everything uh continuing to move in the right direction all required contributions uh being made as
well uh so those are the highlights more than glad to dive into any questions or details and I than youall again the chance to be here I I'll just uh make a couple of of quick comments I know um this is the first time some of us up here have uh
been through the audit process and and had a chance to meet with Zach by the way he's a wealth of knowledge uh he's also a resident of our city so um I I I think we get just a little bit extra care because he's a taxpayer and he cares about this kind of stuff um one
of the things that is always important uh when we're talking about our um unassigned unassigned fund balances and things like that is to know that these this report is as of September 30th of 2024 we had a significant storm
thereafter right so some of the numbers are not as they all are in this report currently so um I think that the uh when I when I got on city council 10 years ago we did not have a policy um we were over 50% funded and there was no like
policy or direction as to what it was we were trying to do there and anything like that so there's been a lot of work over the years to try to re that in a little bit and have that internal minimum policy uh and that Zach touched on um you know while the gfo G cfoa
recommends 16 16.7% there is some guidance there that if you are coastally based Community you need to be a little bit better than that and it's interesting because some of the municipalities I won't name them that aren't too far from US stick to that
very bare minimum and I don't know how they do that year after year after year I get that there will be times and there may be occasions where you get below that 30% policy but when you do that you want to have a to try to get back into that that that range so that's just
something I think really important for all of us to keep an eye on year after year after year and really get a good grasp because uh the unexpected does happen and we need to be able to react to it and we need to be able to react quickly and uh and being good Financial standing the other thing is the the
pension liabilities uh I appreciate Zach's comments on that that is very much a long-term game um I would encourage all of you that when you look at those liabilities that you look at them very broadly because some years we'll have really great returns and
other years not so great returns but ideally what you want to be seeing is those those net pension liabilities are getting under control and they are continually coming down in the long run uh and we seem to have done fairly well with that over you know the last many
years so that's just something else to keep a close eye on because it it really does matter those pension liabilities get out of control and it creates a lot of lot of problems and stuff so councilman Foley any questions for Zach or any comments um well not so much questions but uh a couple of comments
first off met with Zach oneon-one which I think all of us did I met with him earlier today um very well said Scott about specifically the pension liabilities um the reason that that funded percentage is so important is because as that number moves up it relieves how much percentage of payroll
we have to match which therefore affects our entire budget so it's a really important thing to uh to look at those I'm particularly impressed uh seeing fire jump from 65 to 76 um obviously this year's Market's been turbulent so who knows where that is today but still
that was really encouraging um Scott you also mentioned about the unassigned uh fund balance and I know Zach we we talked about this a little bit more in depth um between these um five different buckets the nonspendable the restricted which and we talk about those kind of
sound like the same thing but they're not um but then you have committed and then you have assigned which also again sounds similar but are not um something that came to light during my meeting is that our city does not currently have a fund balance policy which is something a
lot of cities do so we have this um like Scott says for as long as I have been watching Council and as long as I've been on Council uh there's been this generic feeling that we don't think 16.7 is enough for a coastal city uh so we're able to have funds in our in our our
general fund ready to go so when we need trash pickup when we need to prepare for storms that we are able to get out there and spend that money and then go get for reimbursement instead of waiting for those funds to come in to even begin cleanup something that came to our to my
attention during the audit process was Z this afternoon is that we can actually move a certain amount of money from this unassigned balance into the committed balance ideally I think Wayne if you can correct
me you said to clean up Milton from one storm was $7 million just as an example F they're five to seven we've been doing seven for most storms Milton was a little over five and so according to when this meeting and with Wayne also with our new Finance director we can set
this money aside into committed we can still access it anytime we want to it doesn't mean that 100% spent it means that that money is set aside specifically for that and that will lower that unassigned balance percentage to be more in line with what we would
expect and according to the new Finance director it would improve our bond rating which we're about to hear another pres presentation on which could possibly improve our rates in that so I don't know if Wayne wants to elaborate any more if I hit that on the head or um
but it's something I would be interested in him explaining more and hearing more about might be something we might want to do directionally as a council so in concept what you're talking about is creating a a an Emergency storm fund so to speak saying okay historically you
spend X so so that we're in preparation for something like that financially we earmark x amount for that is that kind of what the idea would be correct that's absolutely correct you you specifically assign some portion of your unassigned fund balance to hurricane or or storm
money five six 7 million whatever you whatever you want us to do put in there and and it as it sits in there specifically for storm apparently it has other Financial benefits if you yeah i' be okay bringing that to us as an agenda item or even during a
workshop just to have more in depth conversation be a modification of your policy that you currently have of the 30 to 35% right because it would be a portion of that so yes sir yeah makes sense and and and I can't remember the uh Wayne we were you here
when we had the major pipe break that washed out part of a road we had Taylor Road and that was right before he got here it was probably Christmas break or something it was six months before I got on Council we we funded that project I believe out of canal yeah out of this emergency fund so that's just another
example non-storm related I guess is what I was trying to make an example of that something like that happens you know a repair like that is incredibly expensive especially when it has to be done in emergency unplanned conditions so no and and you and I have discussed
just last budget season about how we're not comfortable going too you know much lower on this um as far as on as as far as you know reserves but um I do think that that was something that came to light that I'd like to see presented at some point if everyone else has a
stomach for it um otherwise if I can continue uh I just want to say that I think it's awesome that we end up with zero comments um Zach I appreciate you and your team as always uh for meeting with me today I think that's a testament to our entire finance department with all the things moving around with going
from work day back to our new program you know I think big kudos to everybody and it it gives me a great deal of confidence in where the city is financially speaking so Tracy just steming off of what U councilman Foley said the U the zero comments with
turnover and going from work day to Tyler it's a lot of moving parts and for you guys to have it done by March 31st and everything ready to go wow um yeah be commended every every one of yall should be commended on that
um but going off of the two of y'all talking about the the unassigned the $25 million I think people need to understand that $25 million that we have sitting there a storm was $7 million yeah we had the money in the bank we get paid back with FEMA but
understand also it's been two and a half years from Irma that we just got our money back in a check on one of those things from Irma so even though we may have it there it may take two and a half years to have funding coming back to us
to reestablish inside that so when we're looking at it we need to make sure that we know that yeah it's going to be refunded but how long it's going to take it's FEMA with everything in uh the world of politics right now uh how that money is
being divided up or in the future there's there's no telling so we need to make sure that the the assigned and unassigned is sitting there just in case of these events it's better to have money to be able to take care of the city than it is to try to go and get a loan to take care of the city and then
paying percentages on top of that and that's and that's why we have this funding there I've had some people make some comments are going why is it so high and reality is is you don't want to spend more in interest to take care of the city if you have a balance sitting
there to take care of the city so just something to keep appr priced as we go forward yeah and a good cuz there are cities in the state of Florida frequently that have to borrow money in emergency conditions that is not a
position we want to be in that's just not good yeah I just want to say thank you to the staff uh that has allowed uh our auditor to get their things done sooner than years past especially with the turnover that you've had in the finance department so thank you very
much and thank you for your presentation um it's obviously um um somewhat new to me because I've followed this throughout the years I've seen the backside of your staff before from that side and paid much you know paid a lot of attention to
it so uh I did look like a deer in headlights when you probably when I sat down with you today but you certainly uh explained it very well to me and uh I feel like our City's in a great position and uh learning a lot about about the the finances is it's an important aspect
to to what we do especially when the budget comes around and we're needing things and we know exactly how much money we have and the fact that we had zero comments is huge and uh it hasn't always been that way but I also understand that some of those comments
might have been minor as well so no reflection on the past and what the staff did before it's just it's understandable in an audit that you're going to have comments but so to have none is very nice and to have money in the bank knowing that I like the idea of setting up a kind of like a storm
Reserve if that strengthens our ability as like you mentioned something about Bond that's huge so I'd certainly entertain that to bring something to us that's all I got no I always want to echo on it uh on on let's just remember this is an audit and this is based on
where we were in September 2024 M it's not the checkbook today so it's not like we're going to be able to just it's going to take a lot of time and a lot of a lot of things that to quote move money around for storm storm you know a certain fund but this
is an audit and and basically what we're doing here is making sure the money's in the right spot and and that's what we've done and you guys did a good job and the staff did a good job um but I think as far as moving forward things like storm funds and those those are going to be budgetary issues that we'll discuss I
guess at a later date but other than that I think we're in a great position and uh again another another fine job by you guys Z appreciate all that yeah Wayne I would say bring that bring that particular topic to us on a workshop thr it on one of the other workshops sometime soon or in the next few months
and let's let's have some some more good discussion on that because I and and your your next presentation Toby's going to talk about Capital financing we will probably work with him to see if there's any there may be a need to bring it to you sooner sure if it affects the money we're about to go borrow we can do that
and and and I just want to comment too you know when we look at these audits more importantly looking at how much money is there how much money was spent things like that is are the controls being utilized corre things
being done correctly cuz I will tell you that's where the big problems really come from because when you find out that the way things are supposed to be getting done are not getting done that way and that is not a comfortable feeling so um that's that's something I
look at almost every single time right off the bat Zach will tell you that's used do my first question make sure so Zach I appreciate you thanks for all the work that you guys put into this and thanks to the finance department and all of our city staff and there's a lot of
work that goes into this and getting this thing uh the first day of April is is pretty nice so we appreciate it thank you thanks y have you and your family Zach thanks Zach item 12 Capital financing discussion Toby Wagner is back to to
we've had them here a couple times going over the philosophies policies of of how we do Capital financing debt uh and we're getting closer to the parks spawn and the public utilities uh field operation structure so he's going to go over a little bit more detail on that and and what you'll be seeing in the next couple months as we move forward
with that process we've had him here a couple times and he keeps coming back he does all right well that's good Toby good to see you welcome thank you mayor uh Toby Wagner president Southeastern investment Securities uh financial advisor to the city I think this is the first time I've had an opportunity to
present to Sean and Lance and U thank you for that opportunity may u we were last here in November and I don't know if either one of you were here when we made presentation but that presentation in November was a very general presentation on different types of
financing and then taking a broad look at what 2025 was looking like in terms of any financing needs tonight tonight we're just going to scope in a little bit further on the financings for this Capital year uh Capital Pro projects for
this year um the um what we uh went through in November was an outstanding debt profile we've updated that we're going to talk about the capital financing needs and any any refundings that we have
available and what our financing plans are for the capital uh projects that need need funding this year and a little bit of a market update the market that jumps around every minute not not every
day this outstanding debt profile uh is just like we presented in November just updated it as of April one um uh you can see as far as um your debt picture it looks very good
uh uh you've got your general obligation bonds that were issued in 2016 actually those are refunded bonds bonds that were issued in 2006 so uh you haven't issued General obligation bonds since 2006 and uh and
with your referendum last fall uh we'll have an upcoming issue that we're going to talk about in a moment uh then we did a series 2014 Capital Improvement and that was also a refunding and then we also uh took the savings from that
refunding and advanced it to make some purchase is Riverwalk uh so the savings uh that nured from that uh refunding uh went into some river walk walk projects um then we have the uh Town
Center Bonds in 2007 that are still outstanding uh and those could be refunded but uh at at this time we're still looking to see if uh things mature with Bristol and so forth and uh and if that comes through then the money from
that will go to pay off those bonds and if that doesn't then we can revisit refunding that you have two very small srf loans with water and sewer and with those maturing uh next year and the year after you're going to be completely debt free
in the Water and Sewer Department um storm water we've got a uh series 2005 bond issue and also a small srf loan the 2005 we'll talk about in a moment as a refunding candidate uh that
we can take out so as you're aware the voters approved the $30 million Parks bonds uh and I think you've started spending money on that and and now we're at a point where we're ready to issue those bonds and uh and reimburse you for those
prior expenditures as well as future expenditures and then the uh Public Works facility uh needs funding as well uh and we're aware that that's going to be about 21.9 million you've already spent seven or 8 million we'll reimburse
for that as well as future costs uh on that project the uh General obligation bonds just like in the 200 U uh six or yeah 2016
or 2006 bonds uh will be secured by adorm taxes uh voter approved and then the series 2005 we're recommending that th that be a 30-year bond issue as well and pledging a covenant to budget and
appropriate on an annual basis but actually paying The Debt Service out of Warner and Sewer because that project will be for that Enterprise fund the purpose of doing that as a covenant to budget and appropriate is will get a higher Bond rating and uh you know it'll
be better received in the bond market we'll get a lower interest rate and that'll that'll help lower The Debt Service uh so but but uh Finance can just go ahead and pay the debt service even though the security on the bonds the bond holder looks to the Covenant to
budget and appropriate walk us through that part one more time J okay um you have issued Covenant to budget and appropriate bonds before really what that is is just using general fund revenues not ad vorum tax
revenues general fund revenues as Security on those bonds so uh that's what the bond holders look to however you can pay those bonds any way that you want okay and this is really an Enterprise fund project uh Public Works
facility so uh Linda has talked about uh and uh using water and sewer funds to pay that Debt Service okay so idea is pay Enterprise debt out of Enterprise funds yes yes okay
exactly couple current refunding opportunities the uh 2014 bonds the CIP that we talked about earlier that were refunded bonds uh that's a good candidate in today's
market for some refunded savings we'll monitor that as we start to uh get into uh structuring these two issues uh and uh also the series 2005 um bonds are good refunding candidate so as we as we
progress over the next 60 days probably we'll look at the market and see if that is still the case that it's a refunding opportunity if it isn't we won't refund the bonds taking a look again uh at the general obligation bonds of 30 million uh this
is just a snapshot last week of where the market was an interest rate of Allin tiic or true interest cost would be about a 462 that's probably up over the last couple days uh to maybe a 468 something
like that uh and uh we're assuming another dou A2 rating uh from the uh rating agencies on these bonds we're looking at a 10-year call which means they can't be prepaid for 10 years it's a lockout provision for 10 years that
helps lower the interest rate as well and then on the capital Improvement the uh Public Works facility as well as uh the refunding you can see over on the right hand side the source uses you see the new money which is which is the uh
project itself and then the refunding component we've thrown in there uh for a total par amount if those refunding uh refundings make sense at the time we go the market would be about 32.7 million and these again would be 30
years and also have the same rating that the general obligation bonds would have on them then uh this is just a picture of our timing we can move a little faster on the general obligation bonds because we don't have to have a ordinance reading
on those bonds you've got a provision in your Charter that whenever you borrow money you've got to do an ordinance rather than just a a resolution you've already done the ordinance for the general obligation when you went to the voters to ask uh permission to uh
uh issue those bonds so we don't have to go through that again uh we do with the public works facilities and you can see that we've got a first reading and a second reading on that in May and uh hopefully we'll be back to you in May uh
on the go bonds uh with a resolution authorizing the sale of those bonds and uh just right after that we'll receive a bond rating let me talk a little bit about the bond rating process uh that'll be one where uh your Finance team as
well as your city manager will be involved in a call with the rating agency uh and uh we'll go over we'll develop a presentation ahead of time that goes to them you'll get a copy of that as well and uh it just highlights the city's
financial position historically and on a little bit of a projected basis and one thing that I think uh it would be good for Wayne to talk to them about when when we're on a call is a policy like you're talking about on uh on the storm
storm policy um you don't have to take any action before we have a rating call uh it's more appropriate just to bring it up that we're considering it and uh along with other policies that we've had in the past on on setting reserves aside
and they love to hear about that and uh and you'll get good feedback and Wayne can and then come back to you as to how to recommend or what the bond rating agencies recommend they aren't the end all for you guys to make decisions but it's
important whenever you're borrowing money do you do you anticipate based on your experience us having a pretty favorable rating yes yeah yeah your financial position is as Zach pointed out is excellent good isn't this a terrible chart to look
[Laughter] at this this takes you back quite a few years this is clear as mud Toby what are you talking about just I'm not going to spend any time on this it's uh um markets just all over the place right
now and uh it will be and and and so we'll pick a market that feels right and and uh pick a week to go into the market that that is settled down and we're not in a rush to do both of these financings
uh we can hold off if we think the Market's too unsettled volatile and U time ourselves so okay with that I'll entertain any questions I'm I'm going to I'm going to jump to councilman Foley because I know
he's got a limited time here so go ahead jump I only had one question you're talking about the 10e lockout so that's 10 years before we're allowed to completely pay it off is that I'm understanding it like we couldn't to pay prepay it early and is that on both of those you used to be able to they T they
change the tax rigs on tax exemp bonds where you can't Advance refund okay you used to be able to advance refund so you so now you have to wait for that uh 10-year period to go by or you could issue taxable
bonds until you hit that 10year point and uh a lot of issuers will do that U but there's this pretty good spread between tax exempt rates and taxable rates right now I mean even though these aren't like the greatest of rates they're still not terrible rates by any
means historically historically speaking there's still a little bit on the low side yeah it's it's not a good thing overall for the economy long term for money to be free it's just you you don't want to see that look at Europe look at Japan where rates are going negative it's it just leads to hyperinflation and
it destroys middle class and everything else so you know I mean anything in that 3 to five is not a bad place to be I mean you obviously like to be closer to three than five but no I I actually this all makes sense to me and um I think
it's a good presentation um the key I think will just like you said waiting for the right moment to get in you know it doesn't because because it will based on the the climate right now politically speaking it's going to
be volatile so you know it's just waiting for that one lull where you might be able to get lucky and get in a little bit at a four five instead of a 468 or whatever right so the the window that we're looking at is probably 60
days out and hopefully a lot of the Tariff discussions will start to settle in and and the market will calm down a little bit yeah thank you and thank you let me uh before I go to everybody else and I don't know if this is something for Wayne or toia you guys can jointly
so my my question is is how quickly do we need to be able to react to Opportunities and and how do we how do we make that happen or is it is it like if you see a really good opportunity and you're like man this is this is what we've been looking for this is favorable
for Port Orange like how fast do we so our job right now is to move ahead as quickly as we can get a get a bond rating be ready to go into the market so so it's going to take us about 30 to 40 days to get that b in place once we have that then uh then
we can sit back and watch the market okay is there anything else we can do to improve our bond rating um at all between now and then I mean it's only 30 40 days so I mean and and it sounds like we're already pretty favorable so you are favorable I mean uh not many cities
in the state have a AAA rating and you've got a double A to and uh or doua one is is your next Notch up uh you might you might get a ablea one this time uh so um AAA is hard to reach uh
very few cities have that Palm Beach Naples and a few wealthier areas some thank you Tracy go ahead only thing I have to ask is when you lock in a 10-year lock in like that let's say five
years down the road things actually turn back around and the rates drop is it something that it's locked that we can't can flip it to another bond to transfer you can but we we would go in for taxable bonds for a 5year period Then convert
to tax exempt after that so we'll look at the we can always look at it and now another thing we can do is is have a shorter period than 10 years we could we could shorten that to five years it's it's more expensive in the market right and uh it's not worth in today's market
to shorten that 10year uh prepayment but we have an availability if it does arise okay anything else I'm good I I don't have anything I I'm good thank you thank you tby you all right thank you very much keep an
eye on the uh on the forecast in the future I guess which is uh a little bit crazy right now right Wayne s a little bit longer all right sounds good all right that brings us to council
committee reports just like that item 14 Lucia Flagler TPO nothing to report on that one all right let's just stick with you on the fire pension board yeah on that one uh Chris Taylor was reappointed to the uh fifth member position there uh
which is selected by the board or for and um Council still needs someone to serve that we would appoint on that board so if you know someone who's not already existing Le on one of our boards that would prohibit them from being on this one uh um be thinking and
suggesting to them um I had somebody I suggested but they're already on our Planning Commission so they can't serve on both at the same time so just keep that in mind um Joe Mii was goad I was just going to say it would be so nice to have somebody with a just a some
somewhat of a finance background it always helps no doubt very helpful having been through a lot of those discussions 100% I'm wondering if maybe we can uh maybe look into the chamber or local chamber of Commerce to see who they have and maybe help we could uh get
the word out that we're looking to see who might want to step that's a great idea but it's an it's an important board we need someone on for sure I'll reach out to barbaran yeah and I have somebody that Just sh just expressed an interest last week okay awesome so that you can direct them to Robin or you know and
yeah um Joe misy has been selected to be the chair of the board now that um our other chairman had retired after all his years of service which we're very appreciative of um as far as the plan itself it finished up 22% for 2024 uh in Q4 lost uh
8% but the fund value now is 47.2 and as of our meeting uh we were actually outperforming the market the market was down 2% but uh the fire pension plan was actually flat so um looking pretty good there I think you know they're doing a good job with
managing the money they have so and I just got to say thank you because I know you have been on that board and you didn't get on that board with a status quo mindset and you were seeing some things that just weren't going to cut it and so you've asked some
hard questions and you've placed some higher expectations on some of the the uh the the folks that are charged with managing the money and producing results so and and they are and the rest of the board has been so great to work with Chris and everyone and Joe I mean it you
know they've been receptive to my ideas including you know um having an audit done in which turned out some great results uh that um really made all of us feel good Zach and his team did that so no I'm very appreciative of the people I'm working with on that board and the
progress we're making is is visible so yeah and there's some there's some really um there's some good ways to to know uh you know you've got to compare these boards to other like boards around the state you got to say okay how how are we doing on the general employee
pension board the police board the fire or whatever that is and you got to look at some comparative stuff around the state or you really don't know I mean you look at the numbers they bring you back on your stuff all the time but if you're not looking at those comparisons you just don't know so I think that's really important so thank you very much
F anybody got anything else to come before us tonight no all right with that have a good night