Jul 10, 2025 City Council Workshop

[00:00:01]

OKAY. IT IS 1800 HOURS. I'M GOING TO CALL THIS WORKSHOP TO ORDER.

[CALL TO ORDER:]

PLEASE RISE. 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.

HURRAH! MADAM JONES, MAYOR MEDINA PRESENT. DEPUTY MAYOR JAFFEE.

PRESENT. COUNCILMAN JOHNSON IS BY COUNCILMAN JOHNSON.

PRESENT. COUNCILMAN PRESENT. I'M SORRY. COUNCILMAN HAMER HERE.

MR. MORTON PRESENT. MISS SMITH HERE. OKAY. THANK YOU, MADAM JONES.

[1. Acknowledgment of the City’s Annual Comprehensive Financial Report for Fiscal Year 2023-2024.]

I THINK OUR FIRST ITEM TONIGHT IS GOING TO BE THE PRESENTATION OF THE ANNUAL CONSOLIDATED FINANCIAL REPORT.

AND WE HAVE OUR CONSULTANT, EDDIE CASTANEDA, HERE TO DO THAT.

GOOD AFTERNOON. COUNCIL, HOW ARE YOU? MY NAME IS EDDIE CASTANEDA. I'M A SENIOR MANAGEMENT MANAGER ON THE AUDIT ENGAGEMENT OF THE CITY OF PALM BAY.

MY FIRM SUPPORTS MAZARS PREVIOUSLY MSL. AS IF YOU MAY OR MAY NOT KNOW, BUT I'M HERE TO PRESENT THE RESULTS OF THE ANNUAL AUDIT.

SORRY. IT'S OKAY. WE ARE REQUIRED. THE. THE AUDIT WAS ISSUED BACK ON MAY 29TH AS PART.

AND THAT SHOULD HAVE BEEN DELIVERED TO YOU, AS WELL AS A COMMUNICATION LETTER THAT WE ARE REQUIRED AS EXTERNAL AUDITORS TO COMMUNICATE THOSE CHARGED WITH GOVERNANCE, WHICH IS THE CITY COUNCIL, CERTAIN REQUIRED COMMUNICATIONS.

IT'S ALL DETAILED IN THE LETTER, BUT I'LL JUST GO OVER IT VERY BRIEFLY, HIGH LEVEL HERE AND LET ME KNOW IF YOU HAVE ANY QUESTIONS.

WE'RE REQUIRED TO. OUR AUDITOR'S RESPONSIBILITY IS TO IS TO CONDUCT THE AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AS WELL AS GENERALLY ACCEPTING GOVERNMENT AUDITING STANDARDS, WHICH WE HAVE DONE.

MANAGEMENT'S RESPONSIBILITY IS TO BE FORTHCOMING AND FORTHRIGHT.

GIVE US ACCESS TO ANY INFORMATION THAT WE REQUIRE OR ASK AND NOT LIMIT OUR SCOPE.

AND I'M HAPPY TO SAY THAT THEY HAVE DONE THAT.

THERE'S BEEN NO DISAGREEMENTS WITH MANAGEMENT, AND IT'S BEEN A HEALTHY WORKING RELATIONSHIP.

AND ON THAT NOTE, I JUST WANT TO GIVE A SPECIAL THANKS TO LARRY, RUTH AND SHANE OVER THERE.

A LOT OF THEM. A LOT OF WORK GOES INTO PRODUCING THIS DOCUMENT AND IT'S TIRELESS HOURS, AND NO ONE LIKES DEALING WITH AUDITORS, TRUST ME. SO THANK YOU. THERE WAS NO SIGNIFICANT AUDIT ADJUSTMENTS IN THE FINANCIAL STATEMENTS, AND THERE WAS NO SIGNIFICANT ISSUES DISCUSSED WITH MANAGEMENT AS WELL.

SERVICE AND DELIBERATE DELIBERATELY DELIVERABLE AS WE ISSUE FIVE SEPARATE INDEPENDENT ACCOUNTANTS REPORTS, THE FIRST ONE BEING THE MAIN ONE, WHICH IS THE INDEPENDENT ACCOUNTANTS REPORT, WHERE WE SAY THE THE OPINION IS AN UNMODIFIED OPINION.

THAT IS THE, QUOTE, CLEAN OPINION, WHICH BASICALLY STATES THAT EVERYTHING IN THE FINANCIAL STATEMENTS IS MATERIALLY CORRECT.

THE SECOND REPORT THAT WE ISSUE IS A REPORT IS YOUR SINGLE AUDIT REPORT WHERE WE DO AN AUDIT ON MAJOR, MAJOR FEDERAL PROGRAMS OR STATE PROJECTS. THERE'S A CALCULATION AS TO WHICH, AND I'LL SHOW YOU WHICH ONES WE AUDITED THIS YEAR.

ON THE NEXT SLIDE. THERE WAS NO ISSUES THERE, NO FINDINGS THERE.

THE THIRD, THE CARRY ON, SIR. OKAY. THE THIRD ONE IS INTERNAL INTERNAL CONTROL OVER FINANCIAL REPORTING AS GOVERNMENTAL AUDITORS WERE REQUIRED TO EVALUATE OUR INTERNAL CONTROL STRUCTURE.

AND WE'RE HAPPY TO HAPPY TO SAY THAT THERE WAS NO ISSUES FOUND IN THE CITY'S INTERNAL CONTROL STRUCTURE.

TO THE TWO MAJOR PROGRAMS THAT WE AUDITED THIS YEAR WERE THE ASSISTANT LISTING NUMBER 2102 SEVEN, WHICH IS COMMONLY REFERRED TO AS ARPA OR THE COVID 19 GRANT PROGRAM.

AND THEN THE SECOND WAS A STATE PROJECT WHICH WAS STATE STATE PROGRAM, THE WASTEWATER TREATMENT FACILITY CONSTRUCTION.

AND WE BOUGHT INTO THAT AND THAT ONE WAS APPROXIMATELY $8 MILLION IN THE COVID 19 GRANT WAS $5 MILLION.

NO ISSUES FOUND IN IN TESTING THOSE TWO PROGRAMS. THE FOURTH LETTER THAT WE ISSUED IS THE MANAGEMENT LETTER. THIS IS JUST A FLORIDA AUDITOR GENERAL REQUIRED LETTER THAT STIPULATES THAT THEY WANT US TO LOOK AT CERTAIN THINGS IN ACCORDANCE WITH FLORIDA STATUTES. IT'S DETAILED IN THAT LETTER, BUT WE'RE HAPPY TO SAY THAT THERE WAS NO ISSUES FOUND THERE AS WELL AS AN EXAMINATION REPORT. AND THIS IS ANOTHER FLORIDA AUDITOR GENERAL REQUIREMENT THAT THEY WANT US TO LOOK AT EACH ODDITIES, COMPLIANCE WITH THEIR INVESTMENT POLICY AND POLICY IN ACCORDANCE WITH FLORIDA STATUTES.

AND WE'VE DONE THAT. EXAMINATION IN THE CITY IS IN THE CITY APPEARS TO BE IN COMPLIANCE WITH THAT FLORIDA STATUTE.

[00:05:05]

THIS IS JUST THIS IS JUST A PERCENT OF YOUR FUND BALANCE.

HOW MUCH OF THAT PERCENTAGE IS IS WOULD COVER THE UPCOMING EXPENDITURES IN THE YEAR? YOU WILL SEE IN THE GOVERNMENTAL ACTIVITIES THAT IS A NEGATIVE NUMBER, BUT THAT IS MOSTLY RELATED TO THE CITY'S NET PENSION LIABILITY AND OPEB LIABILITY THAT BRINGS DOWN YOUR FUND BALANCE. BUT THAT'S NOT AN ACTUAL LIABILITY THAT THE CITY IS GOING TO HAVE TO PAY.

THIS IS JUST AN ACCOUNTING. OWNING REALLY AN ACCOUNTING STANDARD THAT REQUIRES TO PUT TO ESTIMATE THAT LIABILITY AND PUT IT ON YOUR BOOKS.

GENERAL FUND. HIGH LEVEL. SAME. THE LAST THE LAST TWO LINES ARE KIND OF THE MORE INTERESTING ONES, WHERE YOU'LL SEE IN YOUR GENERAL FUND YOU HAVE APPROXIMATELY 37% WORTH OF FUND BALANCE, OF UNASSIGNED FUND BALANCE TO AS A PERCENT OF YOUR TOTAL EXPENDITURES. AND THE NET CHANGE IN THE FUND BALANCE IN THE CURRENT YEAR WAS APPROXIMATELY $4 MILLION.

BUDGET TO ACTUAL. YOU'LL SEE THAT THE THE THE CITY DID PERFORM THE GENERAL FUND DID PERFORM WELL BUDGET TO ACTUAL IT WAS APPROXIMATELY $26 MILLION POSITIVE FROM THE ORIGINAL BUDGET. AND THEN LASTLY, YOUR UTILITY FUNDS IS VERY IT APPEARS VERY HEALTHY.

KEEP INCREASING THAT FUND BALANCE YEAR TO YEAR.

AS WE SEE AS WE SEE THAT RATE, YOUR OPERATING INCOME HOVERS AROUND 11 TO $12 MILLION AND YOUR TOTAL NET POSITION BEING APPROXIMATELY 240 MILLION. AND THAT'S VERY THAT'S PRETTY HEALTHY.

AS FAR AS FLORIDA MUNICIPALITIES GO. SO IF ANY COUNCIL MEMBER HAD ANY QUESTIONS OR CONCERNS OR COUNCIL ANY QUESTIONS. CARRY ON. THAT'S IT. THANK YOU.

THANK YOU. SO WELCOME.

ANYONE IN THE AUDIENCE WISH TO SPEAK? CARRY ON, MISTER MORTON. MOTION TO ACKNOWLEDGE.

[2. Discussion of the proposed budget for Fiscal Year 2025-2026.]

HOWEVER, WHILE DEFERRING CERTAIN PURCHASES OR MAINTENANCE PROJECTS SOMETIMES APPEARS TO SAVE MONEY IN THE SHORT TERM, OUR REALITY AND AS STAFF IS THAT WE SEE THESE, THAT THESE DELAYS OFTEN LEAD TO SIGNIFICANTLY HIGHER COSTS AND MORE EXPENSIVE AND MORE EXPENSES TO OUR COMMUNITY, WHETHER IT'S AGING INFRASTRUCTURE, VEHICLES, EQUIPMENT OR FACILITY UPKEEP, POSTPONING NECESSARY INVESTMENTS INCREASES THE RISK OF BREAKDOWNS, EMERGENCY REPAIRS, AND EVEN TOTAL REPLACEMENTS.

AND THESE UNPLANNED COSTS ARE ALMOST ALWAYS MORE EXPENSIVE THAN PROACTIVE MAINTENANCE, SCHEDULED UPGRADES, OR SCHEDULED REPLACEMENTS. FOR US RIGHT NOW, WE'RE SEEING SOME OF THAT GREATER FINANCIAL BURDEN THAT IS TRANSLATING TO TODAY, BUT WE'LL ALSO CONTINUE TO GROW AND COMPOUND INTO THE FUTURE.

I THINK OUR PRESENTATION IS BEGINNING TO ANSWER SOME OF COUNCIL'S QUESTIONS, THAT WE TAKE A FORWARD LOOKING APPROACH BY ADDRESSING NEEDS BEFORE THEY ESCALATE, TO PRESERVE THE QUALITY OF SERVICES TO SHORE UP, AND MAKE SURE OUR PUBLIC SAFETY IS THE BEST THAT IT CAN BE.

AND I THINK ALSO THERE'S A CALL THAT WE NEED TO PARTNER WITH THE COMMUNITY TO DEMONSTRATE STRONG STEWARDSHIP OF PUBLIC RESOURCES AND DELIVER ON LONG TERM PUBLIC VALUE.

THAT TAKES RESOURCES TO DO THAT. JUST FOR A COUPLE EXAMPLES OF WHAT I TALK ABOUT IN PRAGMATIC FINANCIAL STEWARDSHIP, WASN'T THAT LONG AGO WHEN YOU HEARD ABOUT A PUBLIC WORKS TRACTOR THEY SOUGHT TO REPLACE, AND I BELIEVE THE INITIAL PURCHASE WAS $47,000.

SO FAR TO DATE, THAT TRACTOR HAS EXPERIENCED AND $47,000 IN REPAIRS.

WE HAVE A FIRE ENGINE THAT IS JUST ABOUT READY TO QUALIFY FOR AN ANTIQUE LICENSE PLATE IN THE STATE OF FLORIDA.

FIRE ENGINE 5151 IS 25 YEARS OF AGE. WE HAVE TWO THAT ARE NOT FAR BEHIND.

ENGINE 51, 82 AND 5188 RESPECTIVELY ARE MORE THAN 20 YEARS OLD, AND WE ALSO NEED TO REPLACE A HEAVY RESCUE VEHICLE.

[00:10:04]

IT ALSO HAS OTHER DIRECT IMPACTS LIKE DIRECTLY IMPACTING OUR ISO RATING, WHICH WILL TRANSLATE INTO HIGHER COSTS FOR OUR HOMEOWNERS AND BUSINESSES TO PAY FOR INSURANCE, OUR POLICE VEHICLES AND EQUIPMENT.

I KNOW IT'S BETTER THAN IT HAS BEEN AND YOU GUYS HAVE MADE SIGNIFICANT STRIDES, BUT THAT WORK IS NOT FINISHED AND WE DON'T WANT TO RISK COMPROMISED SAFETY OR ABILITY TO RESPOND TO THE EVER INCREASING DEMANDS WE SEE LAW ENFORCEMENT BEING PUT UNDER IN THIS DAY AND AGE, OUR BUILDINGS, OUR FACILITIES. MORE THAN HALF OF OUR BUILDINGS ARE MORE THAN 25 YEARS OF AGE ON A SQUARE FOOT BASIS.

SOME OF OUR MOST BELOVED BUILDINGS ARE MORE THAN 45 YEARS OF AGE, PLACING THEM ALL THE 25 TO 45 YEAR RANGE AND OLDER INTO CRITICAL NECESSITY FOR MAINTENANCE AND CRITICAL STATE OF POTENTIAL ADVANCED FAILURE.

THOSE INCLUDE FIRE STATION TWO, CAPTAIN'S HOUSE, AND THE TONY ROSA COMMUNITY CENTER.

FOR ME AND STAFF AS WE APPROACH BUDGET. WE TOOK THIS AS A CALL TO PROACTIVE FINANCIAL STEWARDSHIP, AND HOPEFULLY THIS MESSAGE WILL COMMUNICATE TONIGHT TO SERVE, TO COMMUNICATE TO OUR COMMUNITY THE REAL NEEDS THAT WE HAVE MOVING FORWARD, TO KEEP PALM BAY AND GREAT, TO KEEP US SAFE, TO KEEP US MOVING IN THE RIGHT DIRECTION.

AND ULTIMATELY THE PAIN SOMETIMES OF SPENDING MONEY NOW, BUT THE COST SAVINGS THAT WE REALIZE IN THE FUTURE.

AND WITH THAT, I THINK WE'RE READY FOR ANGELICA TO KICK OFF THE THE MEAT OF THE BUDGET PRESENTATION AND THE NUMBERS.

GOOD EVENING. MY NAME IS JESSICA HENCHMAN. I'M THE BUDGET PROGRAM ADMINISTRATOR FOR THE CITY OF PALM BAY. TONIGHT, MYSELF IN SHANE BYRD, OUR BUDGET ANALYST, AND ANGELICA COLLINS, OUR ASSISTANT FINANCE DIRECTOR, ARE GOING TO PRESENT THE FIRST PORTION OF TONIGHT'S EVENTS.

SO WE ALWAYS KICK IT OFF WITH OUR DISTINGUISHED BUDGET AWARD.

FOR OVER THREE DECADES, THE CITY HAS PRIDED ITSELF ON ITS BUDGET DEVELOPMENT.

AND THIS YEAR BEING A TRANSITION YEAR, WE'RE CONTINUING THAT HARD WORK AND EXCELLENCE.

TONIGHT, WE'RE GOING TO GO OVER OUR FY 25 ACCOMPLISHMENTS WITH THE BUDGET.

YOU'LL ALSO GET YOUR GENERAL FUND FINANCIAL OVERVIEW.

WE'LL DO A RECAP OF THE FY 26 BUDGET REQUESTS.

EVERYBODY'S FAVORITE THE TAXABLE VALUES AND MILLAGE RATES.

AND THEN WE'LL TAKE YOUR QUESTIONS AT THE END. SO THE FIRST BIG KICKOFF IS WHAT HAVE WE ACCOMPLISHED IN FY 25.

BETWEEN OUR GOALS AND WHAT WE WERE ABLE TO DO THROUGHOUT THE YEAR.

SO OUR BIGGEST THING WAS 35 ADDITIONAL PUBLIC SAFETY FULL TIME POSITIONS.

YOU HAD 18 IN THE POLICE DEPARTMENT AND 17 IN FIRE.

ADDITIONALLY, WE DID OVER $60 MILLION IN CAPITAL INVESTMENTS.

THE MAJORITY OF THAT WAS IN THE UTILITY FUND.

BUT THROUGHOUT THE YEAR, THROUGH BUDGET AMENDMENTS, WE DID A LOT OF INVESTMENT INTO CAPITAL OUTLAY, ESPECIALLY FOR YOUR POLICE VEHICLES, FOR ALL OF THE DEPARTMENT'S MIDYEAR REQUESTS. YOU SAW VEHICLES AND PARKS AND FACILITIES AS WELL AS UTILITIES.

A BIG PART OF THIS YEAR ON OUR CAPITAL ASSET MANAGEMENT SIDE HAS BEEN TRYING TO TRIM DOWN THE NUMBER OF PROJECTS WE HAVE CITYWIDE.

WE HAD A GROWING NUMBER OF PROJECTS THAT, FROM INCEPTION HAVE JUST BEEN SITTING ON THE SHELVES.

THERE'S BEEN NO ACTIVITY, BUT THAT MONEY HAS BEEN TIED UP.

SO WITH SEAN SPILLERS, WHO IS OUR CAPITAL ASSET ADMINISTRATOR, HE'S BEEN WORKING WITH DEPARTMENTS, AND WE'VE HAD A GREAT REDUCTION OF CLOSING PROJECTS THAT ARE NO LONGER NECESSARY OR FEASIBLE, AND FREEING THAT MONEY UP FOR OUR CURRENT IMMEDIATE NEEDS.

IN FACT, ON THE MOST RECENT BUDGET AMENDMENT, FOR THE FIRST TIME THIS YEAR, YOU SAW THE NET IMPACT.

THE GENERAL FUND WAS A RETURN OF MONEY FROM PROJECT CLOSURES THAT HAPPENED IN THAT QUARTER.

AND THEN LAST BUT NOT LEAST, WE DID 3.25 MILLION TOWARDS OUR COMMITMENT TO THE ROAD MAINTENANCE PROGRAM.

ALRIGHTY. AS JESSICA INTRODUCED ME, MY NAME IS SHANE BYRD.

I AM THE BUDGET ANALYST HERE IN THE FINANCE DEPARTMENT HANDLING REVENUES TONIGHT.

SO TO DISCUSS THAT, WE'VE GOT A LARGE TABLE HERE, LOTS OF DATA.

BUT REALLY WHAT WE WANT TO HONE IN ON IS THE PROPERTY TAXES FOR THE PRELIMINARY BUDGET.

NOW JUST NOTE THAT THAT NUMBER AND THAT FIGURE IS BASED ON THE 3% CAP RATE OF 6.3658.

SO JUST KEEPING THAT IN MIND AND THEN A NUMBER NUMBER, ANOTHER NUMBER THAT JUMPS OUT IS THAT FUND BALANCE USAGE THERE.

SO IN FY 25 YOU'LL NOTE A ONE TIME USE OF THAT 29 MILLION.

AND THEN WE'VE TENTATIVELY PLUGGED IN 13.5 MILLION IN FOR THE PRELIMINARY BUDGET OF FY 26.

AND THAT IS ESSENTIALLY YOUR SAVINGS ACCOUNT USED TO HELP BALANCE OUT THE BUDGET AGAINST EXPENSES BECAUSE OF COURSE, WE ADOPT A BALANCED BUDGET. REVENUES MATCH. MATCH EXPENSE.

SO JUST KIND OF GOING INTO THIS, THIS REALLY GIVES YOU THAT BREAKDOWN OF OF THE REVENUES FOR THE GENERAL FUND.

JUST TO NOTE, A COUPLE OF INTERESTING TRENDS IS THERE WAS THAT FY 23 POST COVID REBOUND OF 16%.

JUST KIND OF SHOWING THAT THE CITY OF PALM BAY WAS RECOVERING FROM THE PANDEMIC.

AND THEN THERE WAS AN AMENDED SPIKE OF 24% OF THAT $29.2 MILLION USE OF NON-RECURRING FUND BALANCE USAGE.

[00:15:04]

OR YOU TRY TO KEEP IT TO ONE TIME USE. AND THEN WE GET INTO THE COMPOSITION OF THOSE REVENUES.

YOU'LL NOTE THE BIG LARGE DOLLAR AMOUNT OR THE LARGE PERCENTAGE AMOUNT.

THERE IS THAT 45% OF PROPERTY TAXES FOLLOWED BY YOUR INTERGOVERNMENTAL ITEMS, UTILITY TAXES, CHARGES FOR SERVICE AND THEN AGAIN, THAT 10% OF FUND BALANCE.

AS I SAID, 90% OR SO OF THE CITY'S REVENUES ARE RECURRING.

SO THAT'S, YOU KNOW, IDEALLY WHAT YOU WANT TO SEE.

SO GETTING INTO THE COMPOSITION AND KIND OF THE HISTORY BREAKDOWN OF PROPERTY TAXES.

JUST TO NOTE, YOU'LL SEE THAT THERE'S A 66% INCREASE SINCE FY 22.

BUT AGAIN THAT'S NOT NECESSARILY TIED TO A TAX RATE INCREASE.

THAT HAS TO DO WITH THE GROWING TAX BASE HERE IN THE CITY OF PALM BAY.

SO OF COURSE NEW HOMES GET DEVELOPED, BUSINESSES GET DEVELOPED.

THE NEED FOR SERVICES INCREASE. YOU KNOW YOU'LL HAVE A NEED FOR CAPITAL IMPROVEMENTS FOR ROADS.

YOU'LL NEED PUBLIC SAFETY NEEDS, WHETHER IT'S FIRE, POLICE AND ALL THAT'S TIED TO THIS LARGE PORTION OF OUR PROPERTY TAXES.

IT'S IT'S A HUGE COMPONENT OF THE CITY'S REVENUES.

AND THEN THE NEXT REMAINING TOP FOUR REVENUES.

AGAIN, AS HIGHLIGHTED THAT INTERGOVERNMENTAL UTILITY TAXES CHARGES FOR SERVICE AND FRANCHISE FEES, THOSE KIND OF MAKE UP THE THE OTHER STABLE REVENUE SOURCES THAT THE CITY OF PALM BAY HAS.

AND THIS JUST GIVES YOU KIND OF A HISTORIC TRACK.

YOU'LL NOTE THAT MOST OF THE REVENUES ARE RELATIVELY FLAT AND STABLE.

KIND OF LIKE WE SAW WITH PROPERTY TAXES WHERE IT'S A GRADUAL INCREASE BUT RELATIVELY STABLE REVENUES.

NOW THIS SLIDE SPECIFICALLY GIVES YOU KIND OF THE BREAKDOWN OF THAT NET $16.97 MILLION DIFFERENCE FROM THE $123 MILLION AMENDED BUDGET TO THE PROPOSED $140 MILLION BUDGET. THIS JUST GIVES YOU THAT KIND OF OVERALL BREAKDOWN.

WHAT MAKES UP THAT THAT DIFFERENCE? SO YOU'LL SEE THERE'S INCREASE OF 5 MILLION FOR PROPERTY TAXES.

BUT THEN YOU'LL SEE A DECREASE IN TRANSFERS. SO ALL THAT KIND OF COMPRISE TOGETHER GETS YOU THAT THAT NEW PRELIMINARY BUDGET.

OKAY. AND THEN THIS TABLE HERE I FIND IT INTERESTING BECAUSE IT'S A GOOD WAY TO REALLY LOOK AT THE CITY'S OVERALL REVENUES FOR GENERAL FUND AND KIND OF CLASSIFY THEM BASED ON WHAT THEIR PERCENTAGE MAKE UP OF THE OVERALL TOTAL REVENUES ARE AND THEN THEIR VOLATILITY AND WHAT DRIVES THAT OR THEIR OVERALL SCORING.

SO WE DO ONE THROUGH FIVE. AND THEN IDEALLY ONE IS MORE STABLE FIVE IS MORE VOLATILE.

YOU PREFERABLY WOULD LIKE TO HAVE MORE STABLE REVENUES THAT YOU CAN DEPEND ON AND COUNT ON AND GROW.

AND THIS TABLE ESSENTIALLY BREAKS THAT DOWN. AND THEN THE THIS NEXT CHART, IT'S A LITTLE HARD TO READ IT LOOKS LIKE.

BUT REALLY WHAT THIS IS JUST SHOWING YOU IS A VISUAL VERSION OF THAT TABLE.

SO THE ITEMS THAT ARE FURTHER TO THE LEFT AND HIGHER UP OR COMPRISED OF YOUR MORE YOUR MAJORITY REVENUES AND YOUR MORE STABLE REVENUES.

SO LIKE WE SEE HERE WITH PROPERTY TAXES, IS THAT 45%.

AND IT MAKES UP THE VAST MAJORITY OF OUR MOST STABLE REVENUES, FOLLOWED BY THE CLASS TWO ITEMS, WHICH ARE LIKE YOUR UTILITY TAXES, CHARGES FOR SERVICES AND FRANCHISE FEES.

AND THEN OF COURSE, AS WE GET FURTHER TO THE RIGHT, THOSE ARE REVENUES YOU CAN'T NECESSARILY DEPEND ON FOR CONSISTENCY, BUT THEY ARE STILL RECURRING REVENUES. WE JUST REALLY, REALLY WANT TO HONE IN ON THE PROPERTY TAXES FIGURE AND SOME OF THESE NUMBER TWO ITEMS. AND THAT COVERS OUR REVENUES. DID YOU WANT TO COVER EXPENSES.

OKAY. GOOD EVENING. I'M ANGELICA COLLINS, ASSISTANT FINANCE DIRECTOR FOR THE CITY OF PALM BAY.

SO I'LL GO AHEAD AND TAKE OVER THE EXPENDITURE SIDE IN THE GENERAL FUND, AND THEN WE'LL GO INTO YOUR PROPERTY TAXES SPECIFICALLY.

SO WHAT THIS TABLE IS SHOWING YOU IS STILL A HISTORICAL BACKDATING TO FISCAL YEAR 2022.

INCLUDING YOUR FISCAL YEAR 2026 PRELIMINARY BUDGET BASED ON THE GENERAL FUND DEPARTMENTS.

SO WHAT YOU WON'T SEE HERE IS UTILITIES OR BUILDING.

OBVIOUSLY THOSE ARE ENTERPRISE FUNDS. SO THEY'RE ENTERPRISE FUNDS DEPARTMENTS. SO THEY ARE NOT LISTED IN HERE.

AND PUBLIC WORKS WHILE NOT A PRIMARILY IN THE GENERAL FUND, THEY ALSO HAVE ENTERPRISE FUNDS.

SO SOME OF THEIR SPENDING IS ALLOCATED IN DIFFERENT DIFFERENT AREA.

SO WHAT WE ARE LOOKING AT, HOW WE'VE KIND OF BUILT THIS BUDGET IS THIS THIS IS THE BASE BUDGET BASED ON OPERATING MAXIMUMS FOR THE DEPARTMENTS.

SO THEY'RE ESSENTIALLY ALLOCATED THE CURRENT YEAR FISCAL YEAR APPROVED BUDGET.

AND THEN WE TAKE OUT ANY ONE TIME EXPENSES. IT DOES INCLUDE ALREADY ANY ALLOCATIONS FOR EXAMPLE ADMINISTRATIVE SERVICE COSTS OR FLEET SERVICE CHARGES RISK LIABILITY INSURANCE. SO ALL THAT'S ALREADY CALCULATED AND INCLUDED IT ALSO INCLUDES DEBT TRANSFERS GOING OUT.

WHICH OUR FINANCE DIRECTOR WILL COVER A LITTLE BIT MORE DETAIL IN THE LATER PRESENTATION.

AND WHAT IT DOES NOT INCLUDE IS ANY HIGH PRIORITY ADDITIONAL REQUESTS FOR THE UPCOMING YEAR OR ANY OTHER REQUESTS.

[00:20:07]

SO THAT WOULD SORT OF BE THE NEXT PHASE AFTER TODAY THAT WE'RE MOVING INTO.

THE NEXT CHART LOOKS AT THE SAME DATA JUST ON THE TYPE.

SO WE BREAK IT DOWN BY PERSONNEL OPERATING CAPITAL, DEBT SERVICE.

I ALWAYS BREAK OUT THE TRANSFERS FOR ROAD MAINTENANCE.

WE OUR GOAL IS TO GET UP TO 4 MILLION ANNUALLY.

FOR. I'M SORRY. I'M OPERATING THE LAPTOP. AND THIS AT THE SAME TIME.

SO WE'RE LOOKING AT IT BROKEN DOWN BY BY THE TYPE SO PERSONNEL, OBVIOUSLY OUT OF THAT 135 MILLION MAKES UP THE MAJORITY OF WHAT YOU'RE PAYING FOR. SO ROUGHLY ABOUT $92.3 MILLION IS PERSONNEL SERVICE COSTS.

SO THAT INCLUDES SALARIES, BENEFITS. ANY ADD PAYS THAT ESSENTIALLY HAVE TO BE PAID.

THAT WILL ALREADY INCLUDE ANY TYPE OF CONTRACTUAL UNION CONTRACT INCREASES.

A COST OF LIVING FOR THE GENERAL. AND AGAIN ROAD TRANSFER.

WE ARE HOPING TO HAVE A GOAL OF $4 MILLION A YEAR, BUT I'VE ALLOCATED AN ADDITIONAL 3.25.

AGAIN KEEPING THAT STABLE. AND THEN OUR LOCAL OPTION GAS TAX THAT IS ALSO SENT OUT TO GO AHEAD AND FOCUS ON THOSE SPECIFIC ROAD TYPE TYPE OF PROJECTS.

SO IT'S GIVING YOU THE SAME NUMBER JUST LOOKING AT IT IN DIFFERENT.

IT'S JUST REALLY POINTING THAT IN THE GENERAL FUND, THE MAJORITY OF THE REVENUE THAT COMES IN REALLY DOES SUPPORT THE PERSONNEL STAFF THAT THAT OPERATES WITH PUBLIC SAFETY OBVIOUSLY BEING OUR LARGEST COMPONENT OF THAT 92 MILLION.

THEN WHAT WE DO IS WE KIND OF LOOK AT FISCAL YEAR 24.

SO FISCAL YEAR 24 HAS CLOSED OUT. IT'S BEEN AUDITED.

SO OUR AUDITORS CAME AND THEY'VE DONE THEIR JOB.

AND SO WE KIND OF LOOK AT HOW WE ENDED THE YEAR FROM OUR ACTUAL BUDGET VERSUS THE ACTUALS THAT HAVE COME IN.

SO WE KIND OF DO A NET. WE LOOK AT REVENUES, THEN THE EXPENDITURES BASED ON PERSONNEL SERVICE OPERATING CAPITAL, DEBT SERVICE AND ALL THAT. SO YOU'RE REALLY YOUR NET WHEN YOU'RE LOOKING AT IT WAS 4.7 MILLION.

PLEASE REMEMBER THAT A LOT OF THE OPERATING EXPENDITURES AND SPECIFICALLY ALSO THE CAPITAL EXPENDITURE PROJECTS WHILE THEY ARE BUDGETED.

A LOT OF THEM MAY NOT BE EXPENSED IN THAT YEAR AND THEY ROLL FORWARD TO THE FOLLOWING YEAR.

SO THAT IS WHEN WHEN SHANE EARLIER WAS TALKING ABOUT THAT 29 MILLION AND THAT 13 MILLION THAT WE'VE ALREADY BUILT IN FOR THE NEXT FISCAL YEAR'S BUDGET, THAT IS TO SUPPORT THOSE COSTS THAT INCLUDE ANY TYPE OF PURCHASE ORDERS OR CAPITAL PROJECTS THAT ARE ALREADY APPROVED, BUT THEY JUST HAVEN'T BEEN SPENT YET JUST BECAUSE OF THE ACCOUNTING PERIODS.

FISCAL YEAR IS KIND OF CROSSING OVER. SO REALLY OF THE TOTAL 22.6 MILLION IN OPERATING IN CAPITAL COMBINED.

18.4 ACTUALLY ROLL TO THE CURRENT FISCAL YEAR IN 25.

BECAUSE THOSE THOSE ITEMS WERE UNSPENT. AND AS JESSICA MENTIONED EARLIER, WE DID SORT OF AN ANALYSIS AND A THOROUGH REVIEW OF ANY PROJECTS THAT HAVE KIND OF ROLLED AND THAT WERE ON THE BOOKS, BUT THAT WERE JUST NO LONGER FEASIBLE OR NO LONGER MOVING AHEAD WITH THOSE.

SO THOSE ARE CURRENTLY GOING THROUGH YOUR REVIEW THROUGH THAT BUDGET AMENDMENT, WHERE WE ARE CLOSING THEM, AND WE'RE TRYING TO REALLY ALLOCATE THAT FUNDING OR FREED UP FOR SOME OTHER, OTHER ASSETS.

AGAIN, OF THE 4.9 MILLION IN PERSONNEL SAVINGS, THE LARGEST SAVINGS YOU WILL SEE IN OUR POLICE DEPARTMENT, APPROXIMATELY 57% OF THE TOTAL PERSONNEL SERVICE SAVINGS IN THE GENERAL FUND ARE FROM THE POLICE DEPARTMENT.

WHAT THAT MEANS IS THAT A POSITION IS BUDGETED FOR THE FULL YEAR, MEANING WE USUALLY BUDGET AT THE MINIMUM SALARY.

WE BUDGET FOR, HEALTH INSURANCE, WORKERS COMP AND ALL OF THAT, AND THAT POSITION IS JUST NOT FILLED.

SO THAT'S THAT VACANCY. SO THERE ARE CERTAIN COSTS ASSOCIATED.

IF YOU DON'T GET HAVE A POSITION TO BE PAID, THEN OBVIOUSLY YOUR SALARY BUDGET DOESN'T GO ANYWHERE JUST BECAUSE IT STAYS STAGNANT BECAUSE THERE'S NO EXPENSES HITTING AGAINST IT.

ANOTHER THING WE DO IS WE KIND OF LOOK AT THE CURRENT YEAR THAT WE'RE IN, AND WE TRY TO ESTIMATE WHAT WE'RE GOING TO LOOK LIKE AT THE END OF THE YEAR.

I ALWAYS HIGHLIGHT THAT THIS IS JUST AN ESTIMATE.

THE PROCESS THAT WE GO THROUGH, EACH DEPARTMENT DOES THEIR OWN YEAR END ESTIMATES.

SO WE DO TRAIN INDIVIDUALS. BUT AGAIN, THERE'S A LOT IT'S DONE IN THE MIDDLE OF THE YEAR.

SO WHEN YOU'RE THINKING SIX MONTHS OUT OF THE YEAR THERE'S STAFFING TURNOVER.

[00:25:03]

SO I ALWAYS KIND OF APPROACH THESE WITH CAUTION.

SO NEXT YEAR WHEN WE COME BACK THAT CLOSE OUT FOR 25, WHEN THE AUDIT ACTUALLY HAPPENS MAY LOOK PRETTY DIFFERENTLY, BUT WE STILL LIKE TO LOOK AT IT JUST TO KIND OF GET AN IDEA.

SO WHAT WE'RE LOOKING AT IS WITH REVENUES KIND OF STAYING PRETTY STAGNANT, MEANING THAT WHAT WE'RE KIND OF PROJECTING IS, IS WHAT WE'RE PROJECTING TO ACTUALLY RECEIVE.

ON THE EXPENDITURE SIDE, YOU'LL ACTUALLY WHAT INITIALLY YOU WOULD THINK THAT THERE'S A LARGE SAVINGS THAT WE'RE SAYING, YES, WE HAVE $152 MILLION IN BUDGET TOWARDS OPERATING CAPITAL, DEBT SERVICE, ANYTHING LIKE THAT.

BUT WE MAY ONLY SPEND 12.4 MILLION. SO YOU INITIALLY MAY THINK, OH, YOU KNOW, WE HAVE THOSE 12.5 MILLION IN SAVINGS.

YOU ACTUALLY DON'T. BECAUSE REMEMBER I MENTIONED THAT A LOT OF THE EXPENSES ASSOCIATED TO POS AND PROJECTS, WHILE THEY'RE FULLY BUDGETED, THEY DO HAVE TO ROLL TO NEXT YEAR.

WE HAVE DONE THAT PROCESS ALREADY WHERE WE'RE CURRENTLY ACTUALLY ESTIMATING A HIGHER AMOUNT THAT NEEDED TO ROLL FORWARD.

SO IN A SENSE YOUR EXPENDITURES ARE ACTUALLY INCREASING, WHICH COSTS ARE INCREASING.

SO THAT'S ACTUALLY NATURALLY WHAT WE'RE KIND OF SEEING.

WHERE CURRENTLY INTO 26, WE'RE ESTIMATING 13.5 MILLION IN UNSPENT FUNDS TIED TO PURCHASE ORDERS AND PROJECTS THAT HAVE TO ROLL FORWARD.

SO ALL IN ALL, WHEN YOU TAKE EVERYTHING INTO CONSIDERATION, YOUR NET OF IF THIS IS TRULY A PERFECT NUMBER, WE'RE ACTUALLY ABOUT 987,900 IN A DEFICIT. SO ALL IN ALL IT WE'RE LOOKING AT WASHING OUT.

BUT AGAIN, I ALWAYS STRESS THAT THESE ARE SIMPLY JUST JUST ESTIMATES.

BUT IT'S STILL A GOOD EXERCISE TO GO THROUGH.

ALL RIGHT. SO ONE ITEM THAT I HAD DONE FOR OUR CITY MANAGER WAS REALLY LOOK AT NOW THAT WE KIND OF GOING INTO THE REALM OF STARTING WITH OUR MILLAGE RATES. SO AS SHANE MENTIONED EARLIER, CURRENTLY OUR REVENUES THAT WE HAVE ESTIMATED ARE ON THE 3% CAP.

THAT IS HISTORICALLY JUST THE PROCESS THAT WE'VE GONE THROUGH.

BUT WHAT WE WANTED TO ALSO DO IS KIND OF LOOK AT WHAT ARE THE OPTIONS, RIGHT? 3% CAP RATE. THERE'S A ALWAYS THE TALKS ABOUT GOING TO THE ROLLBACK RATE.

AND WHAT IF WE WERE TO MAINTAIN THE CURRENT RATE THAT WE'RE AT.

SO ESSENTIALLY MOVING INTO NEXT YEAR WHERE YOU'RE NOT INCREASING YOUR TAX RATE BUT YOU'RE STAYING STAYING THE SAME.

SO WHEN WE'RE LOOKING AT 2026 PRELIMINARY BUDGETS.

SO WE'RE TALKING ABOUT NOTHING HAS BEEN APPROVED YET.

SO WE ALL THE BUDGET REQUESTS, ALL THE PRIORITIES, EVERYTHING IS ON HOLD AT THE MOMENT.

SO WE'RE LOOKING AT JUST AS REVENUES AND AS MOVING FORWARD AS IS.

IF YOU WERE MOVING TO THE 3% CAP RATE AND I WILL, I WILL PUT IT OUT THERE BEFORE I GO INTO THE NEXT, NEXT SECTION? FOR MANY YEARS I HAVE MADE A COMMENT THAT IF YOU CONTINUE TO ADOPT THE 3% CAP RATE, YOU WILL GO BELOW ROLLBACK. YOU ARE OFFICIALLY BELOW ROLLBACK.

AND I'LL GO INTO THAT A LITTLE BIT IN HOW THAT HAPPENED.

BUT YES, FOR FISCAL YEAR 2026 YOU HAVE 3% CAP IS OFFICIALLY BELOW THE ROLLBACK RATE.

SO AS I'M KIND OF MOVING THROUGH MY SLIDES, I'M STARTING WITH YOUR 3% CAP, THEN GIVING YOU THE ROLLBACK AND THEN GIVING YOU THE CURRENT JUST BECAUSE I LIKE TO GO IN THAT NUMBERS SEQUENTIALLY. SO IF WE WERE TO GO AHEAD AND MOVE INTO NEXT YEAR AT THE 3% CAP, WHICH IS A RATE OF 6.3658 BASED ON REVENUES AND EXPENDITURES, YOU'RE LOOKING AT NEW NET REVENUE OF ABOUT $4.6 MILLION.

SO IF WE'RE GOING TO CONTINUE IN JUST IN THAT THAT SMALL TABLE AT THE TOP.

IF YOU WERE TO GO TO THE ROLLBACK RATE, WHICH IS 6.4071, YOU'RE LOOKING AT NEW NET REVENUE OF ABOUT $5 MILLION.

SO ROUGHLY ABOUT $400,000 MORE IF YOU WERE TO MAINTAIN THE CURRENT RATE, WHICH IS 6.7339, YOUR NEW NET REVENUE WILL BE ABOUT 8.3 MILLION.

SO THAT IS, IF WE WERE NOT TO LOOK AT USING ANY TYPE OF FUND BALANCE.

SO IT IS ESSENTIALLY A LIST OF HOW MOVING FORWARD, WE'RE JUST GOING TO USE THE NEW NET REVENUE AND NOTHING ELSE.

SO THEN WHAT WE'RE TRYING TO DO FOR NEXT YEAR, INSTEAD OF CONSISTENTLY COMING TO COUNCIL WITH BUDGET AMENDMENT REQUESTS AND USING FUND BALANCE, WE ARE PLANNING OR HOPING TO ACTUALLY BUILD THAT INTO THE BUDGET.

IT'S A SAME METHOD OF BUDGETING AS LONG AS WE BALANCE OUR BUDGET REVENUES AND EXPENDITURES TO ADOPT THE BUDGET, WE CAN ALREADY USE KNOWN FUND BALANCE FROM FISCAL YEAR 24, WHICH HAS BEEN AUDITED.

[00:30:05]

BENEFIT. IT REDUCES DEPARTMENTS COMING TO YOU DURING THE FISCAL YEAR, REDUCES BUDGET AMENDMENTS, AND WE TRULY HAVE A FULL BUDGET THAT REFLECTS SAVINGS THAT WE HAVE, THAT WE'RE PUTTING TOWARDS THE LARGER NEEDS THAT JESSICA IS GOING TO TALK ABOUT.

AND SO THAT'S SORT OF THE SECOND SECTION AT THE BOTTOM.

SO WHAT WE DO IS WE ALREADY CALCULATE YOUR RESERVES AT THE TWO MONTHS.

SO I CALCULATE THAT AMOUNT ALREADY. SO YOU ESSENTIALLY HAVE THAT YOU HAVE TO SET THAT ASIDE PER THE POLICY.

YOU CANNOT TOUCH THAT. WE ALSO TALK ABOUT OUR STABILIZATION FUND.

SO THAT'S SET ASIDE. COUNCIL HAS ALWAYS DONE THAT 4%.

THAT IS JUST THAT ADDITIONAL 2.3 MILLION THAT YOU'RE SETTING ASIDE.

USUALLY FOR HURRICANE SEASONS, THERE'S JUST, YOU KNOW, YOU'RE SET ASIDE FOR EMERGENCIES.

AND THEN WE ALSO TALKED ABOUT WITH GOING BACK TO THE TWO MONTH POLICY OF THE RESERVES, OF ACTUALLY BUILDING UP AND SETTING ASIDE AN ADDITIONAL 2.5 MILLION.

SO I'VE BUILT THAT ALL INTO MY CALCULATIONS, LOOKING AT NEW REVENUE THAT YOU'RE GETTING IN BASED ON YOUR TAX RATE, AND THEN LOOKING AT THAT SURPLUS BASED ON WHAT WE'VE CALCULATED FOR 24.

SO WE'RE LOOKING AT YOUR TOTAL AVAILABLE FUNDING FOR 2026 TO FUND THE REQUESTS THAT WE'RE ABOUT TO PRESENT TO YOU.

SO IDEALLY, SO WHAT YOU'RE LOOKING AT IS AT THE 3% CAP RATE BETWEEN TOTAL NEW MONEY, NEW SURPLUS THAT YOU HAVE, PLUS THE FUND BALANCE WE'RE TRYING TO USE, YOU ARE ABLE TO SPEND APPROXIMATELY EIGHT $11.8 MILLION.

IF YOU GO TO THE ROLLBACK RATE, IT GOES TO 12.3 MILLION.

AND IF YOU ARE MAINTAINING THE CURRENT RATE AND ADOPTING THAT IN THE MONTH OF SEPTEMBER, WE ARE LOOKING AT 15.5 MILLION THAT WE WANT TO GO AHEAD AND AND FUND THE REQUESTS THAT THAT COME.

SO IF WE MOVE INTO THE FOLLOWING YEAR WITH MAINTAINING THE CURRENT RATE, WE'LL START WITH SPENDING THE 8.3 MILLION OF THE NEW REVENUE, AND THEN WE'LL GO AHEAD AND ADD THAT ADDITIONAL 7.2 MILLION OF SAVINGS THAT HAVE ALREADY BEEN AUDITED IN THE FISCAL YEAR 24 THAT WE HAVE AVAILABLE, THAT UNDESIGNATED FUND BALANCE, THAT DEPARTMENTS FREQUENTLY COME TO YOU.

SO THAT HELPS US BUILD A BETTER BUDGET GOING FORWARD.

AND WE'RE ABLE TO ALREADY LOOK AT FUNDING A LARGER AMOUNT OF NEEDS, ESPECIALLY OUR HIGH PRIORITY ONES, WHICH TRULY ARE. WE HAVE TO FUND THOSE. THOSE ARE REQUIRED THAT WE NEED TO PAY.

SO NOW WE'RE GOING TO THE FY 26 FUNDING REQUEST.

WE HAVE CONDENSED THIS FROM THE LAST MEETING THAT YOU ALL SAW.

AND WE ALSO HAVE A FEW MORE NEW REQUESTS TO GO OVER THAT HAVE COME UP FROM YOUR FEEDBACK FROM THE LAST WORKSHOP.

SO OVERALL, BETWEEN ALL FUNDS, WE HAD OVER $100 MILLION IN REQUESTS.

THE LARGEST PROPORTION OF 36% CAME FROM THE GENERAL FUND.

28% WAS FROM THE GO ROADS PROGRAM. AND THEN YOUR 15% STARTED WITH ONE OF THE UTILITIES FUNDS.

THE BIGGEST PART OF THIS OVERALL IS ACROSS ALL FUNDS, 76% OF THE REQUESTS ARE RELATED TO CAPITAL NEEDS, EITHER CAPITAL PROJECTS OR CAPITAL OUTLAY NEEDS WITHIN YOUR GENERAL FUND.

THE $36 MILLION IN REQUESTS YOUR LARGEST REQUEST PORTIONS CAME FROM PARKS AND FACILITIES AND FROM FIRE BETWEEN ALL OF THE GENERAL FUND DEPARTMENTS. YOUR NEEDS WERE PRETTY MUCH SPLIT BETWEEN CAPITAL OUTLAY AND OPERATING, WITH JUST A SMALL IMPACT OF REQUESTS FOR PROJECTS.

I LIKE TO CALL THIS MY OTHER CATEGORY. THESE ARE OUR SMALLER OR SMALLER DEPARTMENTS, SO I'M HIGHLIGHTING THEM FIRST WITH ALL OF THEIR REQUESTS.

WITH RECREATION THEY HAVE ONE PRIORITY, ONE REQUEST, WHICH IS THEIR STAFFING.

THAT'S YOUR LIFEGUARDS FOR THE POOL AND ALL OF YOUR OTHER SUMMER AND SEASONAL STAFFING.

THIS IS A REQUEST THAT'S BEEN APPROVED FOR THEM BEFORE, BUT IT WAS NOT MARKED AS RECURRING.

SO THEY HAVE TO COME BACK THIS YEAR TO ASK FOR THE FUNDING AGAIN. BUT IT IS SOMETHING THAT WE'RE TRYING TO ADD INTO THEIR BUDGET MOVING FORWARD EVERY YEAR.

WHILE THE INITIAL REQUEST IS $327,000, THEY DO BRING IN REVENUE THAT OFFSETS PART OF THIS REQUEST.

SO AT THE BOTTOM, YOU'LL SEE THE DEPARTMENT IS ANTICIPATING ABOUT $175,000 IN REVENUE RELATED TO THOSE PROGRAMS. SO REALLY THE NET IMPACT TO THE GENERAL FUND WOULD BE ABOUT 153,000.

RECREATION IS ALSO ASKING FOR SOME ADDITIONAL OPERATING INCREASED NEEDS, THINGS LIKE CHEMICALS AND GYM EQUIPMENT AND SOME VEHICLE WRAPS FOR THEIR, THEIR PROMOTIONAL VEHICLES AND, AND VANS FOR THEIR CAMPS THAT THEY USE.

THE NEXT DEPARTMENT THAT WE'RE HIGHLIGHT IS THE LEGISLATIVE DEPARTMENT. MR.

[00:35:02]

YOU HAVE $100,000 FOR THE BROADCAST SYSTEM. AND THEN THEY ARE LOOKING TO DO A RECORD OF AN ADMIN SECRETARY POSITION THAT HAS A MINOR IMPACT.

HUMAN RESOURCES ALSO ONLY HAS ONE REQUEST. THEY'RE LOOKING FOR RECRUITMENT SUPPLIES FOR A TOTAL OF $5,000.

NEXT IS OUR FIRE RESCUE DEPARTMENT. OVERALL, THEY HAD $13.2 MILLION IN REQUESTS.

THE LARGEST PORTION, OF COURSE, IS FOR THE FIRE TRUCKS.

$11 MILLION IN TOTAL FOR CAPITAL. WE HAVE THREE REPLACEMENT ENGINES THAT MR. MORTON HAS ALREADY TALKED ABOUT, BUT THEY'RE ALSO LOOKING FOR A NEW HEAVY RESCUE FOR THEIR TRT TEAM AND TWO NEW QUINTS.

A BIG PROPORTION OF THEIR PRIORITY ONE REQUESTS ARE RELATED TO THEIR CONTRACT IN YEAR TWO OF THE CONTRACT.

THEY HAVE STIPULATIONS FOR CERTAIN EQUIPMENT AND UNIFORMS THAT ARE MANDATED TO BE PROVIDED TO THE PERSONNEL.

SO THAT IS A BIG CHUNK OF THE OPERATING REQUESTS RELATED TO THEIR PRIORITY.

ONE ITEMS WE DID WANT TO HIGHLIGHT THAT WITH SOME OF THESE ITEMS, THERE IS GOING TO BE A CONTINUAL BUDGET IMPACT FOR THEM IN TERMS OF THE SOLO PARAMEDIC.

SO THEY HAVE A REQUEST TO FUND THE ACADEMY FOR SOLO PARAMEDIC.

BUT ONCE THOSE PERSONNEL ACHIEVE THAT STATUS, THERE IS A $12,500 AD PAY INCENTIVE PER POSITION FOR THOSE.

SO MOVING FORWARD, IF THE FIRST GROUP, WHICH IS 25 FIREFIGHTERS, BECOMES SOLO PARAMEDICS ON THE PERSONNEL SIDE, YOU'LL SEE AN IMPACT OF $312,000 ANNUALLY FOR THOSE POSITIONS ON TOP OF THE COST OF THE ACADEMY.

ADDITIONALLY, AS WE ADD MORE PARAMEDICS AND AS WE ADD MORE EQUIPMENT LIKE THE LIFE PACK THREE 60S AND THE LUCAS MACHINES, THAT COMES WITH OVERSIGHT FROM OUR MEDICAL DIRECTOR, AND THEY HAVE BEEN NOTIFIED ALREADY THIS YEAR THAT BECAUSE OF THESE INCREASES, THE COSTS FOR THOSE SERVICES ARE GOING TO GO UP STARTING NEXT YEAR AND CONTINUE TO GO UP EVERY YEAR FORWARD FOR OUR POLICE DEPARTMENT.

THERE ARE SOME NEW ITEMS ON THIS THAT YOU DIDN'T SEE AT THE LAST WORKSHOP.

OVERALL, THEY'RE TOTAL REQUESTS FOR OUT OF THE GENERAL FUND IS $2.7 MILLION.

AGAIN, THEY HAVE HIGH PRIORITY ITEMS, THEIR AXON CONTRACTS.

THEY'RE GOING TO NEED MONEY TO CONTINUE OPERATING FOR THE BODY CAMS AND TASERS PROGRAM.

AND OVERALL THIS YEAR THEY HAD THREE TOTAL VEHICLE LOSS FROM CRASHES AND ACCIDENTS.

SO WE ARE LOOKING TO REPLACE THOSE CARS. SO THERE'S NO LOSS IN SERVICE FOR THOSE PERSONNEL.

ONE ITEM THAT IS NEW THAT CAME FROM THE LAST WORKSHOP, THERE WAS DISCUSSION ABOUT POTENTIALLY BUILDING OUT THE THIRD FLOOR OF BUILDING THAT CAME UP WITH THE REQUEST FROM PROCUREMENT FOR A REMODEL.

INSTEAD OF PUTTING MONEY TOWARDS THE REMODEL, IT WAS DISCUSSED AND TO LOOK INTO WHETHER WE COULD BUILD OUT THE THIRD FLOOR.

PART OF THE TRICKLEDOWN OF THAT MOVE WOULD BE POTENTIALLY OPENING UP ADDITIONAL SPACE FOR THE POLICE DEPARTMENT AND BUILDING B, AND WITH THE POLICE DEPARTMENT MOVING OVER, THERE ARE SERIOUS REQUIREMENTS THAT ARE GOING TO INVOLVE HARDENING THAT BUILDING.

SO THERE IS A NEW PROJECT REQUEST RELATED TO THAT HARDENING.

THE ESTIMATES ARE ON THE LOW END, ABOUT 150,000 ON THE HIGH END TO 220,000.

SO THAT IS A NEW REQUEST THAT YOU'RE SEEING HERE TONIGHT. AND CAPITAL OUTLAY REQUESTS THEY ALWAYS HAVE VEHICLE REPLACEMENT NEEDS.

SO ON TOP OF THE THREE TOTAL LOSS VEHICLES, THEY ARE LOOKING TO REPLACE 21 REPLACEMENT VEHICLES AND THE MOWER FOR THEIR POLICE RANGE, AS WELL AS ADDING A NEW TERADYNE FOR THEIR SWAT TEAM.

SOMETHING ELSE THAT IS NEW THAT CAME AS TALKING ABOUT THE NEW POLICE HEADQUARTERS.

THEY ARE CONFIDENT IN MOVING FORWARD IN FY 26 WITH THE DESIGN AND PRE-ENGINEERING PHASE OF THAT.

SO THEY ARE GOING TO BE COMING BACK TO YOU WITH A IMPACT FEE REQUEST FOR THAT FIRST PHASE OF THAT PROJECT.

AND RIGHT NOW THAT ESTIMATE IS AT 370,000. PARKS AND FACILITIES IS THE NEXT DEPARTMENT.

AND THEY WERE OUR LARGEST APARTMENT AND WITH REQUESTS AT JUST UNDER $15 MILLION.

THEY DO HAVE A COUPLE HIGH PRIORITY REQUESTS THAT ARE RELATED TO ONBOARDING OUR NEW BUILDINGS.

BUILDING AND STATION SEVEN ARE ANTICIPATED TO BE OPENING NEXT YEAR.

SO YOU DO HAVE COSTS ASSOCIATED WITH THAT. AND THEY'RE ALSO SEEING INCREASED JANITORIAL NEEDS CITYWIDE, PRIMARILY AT SOME OF OUR FACILITIES THAT THE PUBLIC FREQUENTLY USES OR USES AS RENTALS.

SOMETHING THAT'S UNIQUE WITH PARKS AND FACILITIES, THEY TAKE IN ALL OF THE REQUESTS FOR THE CITYWIDE MAINTENANCE NEEDS FROM ALL OF THE DEPARTMENTS. SO A BIG CHUNK OF THEIR REQUESTS, ABOUT 8.5 MILLION, COME FROM NEEDS THAT SOME OF THE DEPARTMENTS THEMSELVES HAVE IDENTIFIED, WHETHER IT'S RENOVATIONS WITHIN THEIR DEPARTMENTS, AC REPLACEMENTS OR REPAIRS.

SO THAT'S A LARGE PORTION OF THE REQUEST THAT YOU SEE FOR PARKS AND FACILITIES.

THEY ALSO HAVE $1 MILLION IN CAPITAL OUTLAY REQUESTS FOR RELATED TO THEIR VEHICLES.

AND AT THE LAST WORKSHOP, YOU HEARD MR. MEYER SPEAK ABOUT ALL OF THE NEW PROJECTS THAT THEY WOULD LIKE TO DO TO IMPROVE THE LIGHTING AT THEIR PARKS, AS WELL AS GET SOME SUN SHADES OVER THEIR PLAYGROUNDS.

THEY ALSO WILL BE COMING BACK TO YOU WITH AN IMPACT FEE REQUEST RELATED TO THEIR NEW PARKS AND FACILITIES ADMINISTRATION BUILDING FOR $2.37 MILLION AT A PARKS IMPACT FEES.

[00:40:02]

OUR IT DEPARTMENT HAS A TOTAL JUST UNDER $1.3 MILLION FOR THEIR REQUEST.

NEXT YEAR THEY DO HAVE TWO HIGH PRIORITY ITEMS. ONE IS RELATED TO OUR ERP SYSTEM, WHICH WILL HELP IMPROVE ACCOUNTABILITY ACROSS MULTIPLE FUNCTIONS HERE IN THE CITY, FROM OUR FINANCIAL FUNCTIONS TO OUR PROCUREMENT FUNCTIONS AND ALSO OUR PERSONNEL.

AND THEN YOU ALSO HAVE THE EDGE SWITCH UPGRADES, WHICH THEY EXPLAINED LAST WEEK HAS TO DO WITH IMPROVING OUR CYBER SECURITY.

AND IT IS SOMETHING THAT CAME FROM SOME OF OUR OPERATIONAL AUDITS.

ON TOP OF THOSE TWO. THEY HAVE THEIR CONTINUING SECURITY CAMERA AND ACCESS CONTROL PROGRAMS THAT THE NEXT PHASE THEY'RE ASKING FOR FUNDING FOR.

AND THEN THE LAST REQUEST WAS THE GPS AND CITY VEHICLES.

IF YOU RECALL, THAT WAS AN INITIATIVE THAT STARTED UNDER MR. MORGAN THAT HE ASKED THEM TO LOOK INTO RESEARCH AND BRING FORWARD FOR AS AN OPTION FOR FY 26.

NEXT IS OUR PUBLIC WORKS. NOW, AGAIN, THIS IS ONLY THE GENERAL FUND PORTION OF PUBLIC WORKS.

THEY'RE AT ABOUT $3.5 MILLION FOR THEIR REQUEST.

THEY DO HAVE A COUPLE HIGH PRIORITY REQUESTS RELATED TO FUNNEL INCREASES AND MOWING CONTRACTED SERVICES.

OUTSIDE OF THAT, THEY HAVE 2.5 MILLION IN CAPITAL OUTLAY REQUESTS FOR VEHICLE AND EQUIPMENT REPLACEMENTS.

THEY ARE LOOKING TO DO A LITTLE OVER $300,000 IN WRISTBANDS AROUND THE CITY.

AND THEN ON TOP OF THAT, THEY HAVE ABOUT $350,000 FOR SOME OTHER NEEDS, RANGING FROM ENGINEERING AND TREE TRIMMING SERVICES AS WELL AS SAFETY AND EQUIPMENT INCREASES. FOR ALL OF OUR OTHER FUNDS, ALL THE PREVIOUS ONES WERE ALL GENERAL FUND.

THIS IS YOUR SLIDE IN RELATION TO EVERYTHING ELSE.

AGAIN, THESE FUNDS FOR THE BUILDING, UTILITIES, STORMWATER AND YOUR ROADS, YOU SEE A HEAVIER IMPACT WITH PROJECTS.

SO THEY THEY DO ACCOUNT FOR 80% OF THE REQUESTS IN THESE FUNDS.

AND MOST OF THIS IS AIMED AT IMPROVING IMPROVEMENTS, UTILITIES, INFRASTRUCTURE AT BOTH THE SOUTH REGIONAL AND NORTH REGIONAL FACILITIES.

YOU'RE SEEING PROJECTS FOR LIFT STATION REHABS AND FORCED MAIN REPAIRS.

ON THE ROAD MAINTENANCE, YOU'RE SEEING ROAD MAINTENANCE ENHANCEMENTS. AND YOU'RE GOING THROUGH BONDS AS WELL.

BUT THEN THEY ALSO HAVE $2 MILLION THAT THEY'RE DEDICATING TOWARDS SIDEWALKS THROUGHOUT THE CITY.

WITHIN STORMWATER, THE FOCUS IS ON THREE NEW PROJECTS FOR CULVERT REPAIRS AROUND THE CITY.

ALL RIGHT. SO NOW WE ARE WHAT I THINK MAY BE THE MOST IMPORTANT SECTION OF THE NIGHT.

I AM GOING TO TALK ABOUT OUR TAXABLE VALUES IN OUR MILITARY.

AND THE GOAL BY THE AFTER THIS PRESENTATION, HOPEFULLY BY THE END OF THE NIGHT, IS TO FOR COUNCIL TO OFFICIALLY APPROVE THEIR PROPOSED MILLAGE RATES AND ADOPT OR AGREE ON THE TWO PUBLIC HEARING DATES.

SO THAT IS THE TRUE SORT OF END GOAL AS OF TODAY.

AND IN ADDITION TO THAT, NEXT WEEK IN YOUR REGULAR COUNCIL MEETING, YOU WILL SEE THE OFFICIAL AGENDA MEMO FROM MYSELF THROUGH OUR FINANCE DIRECTOR COMING TO YOU TO OFFICIALLY APPROVE OUR PROPOSED RATE AND THOSE TWO PUBLIC HEARING DATES.

BUT THAT'S TRULY LIKE THE EVERYTHING THAT WE'VE TALKED ABOUT AS FAR AS FUNDING AND THE NEEDS IS DRIVEN, OR THE MAJORITY OF IT IS DRIVEN BY THE PROPOSED RATES THAT YOU WILL BE SETTING FOR THE UPCOMING YEAR.

SO THE FIRST SLIDE IN THIS SECTION OF THE A PRESENTATION.

I ALWAYS GAVE YOU A TEN YEAR HISTORY OF OUR TAXABLE VALUE FOR THE CITY.

SO 2025, DON'T THINK OF WE. I KNOW WE'RE PREPARING FOR 2026.

BUT WHAT IT IS, IS REALLY TAXING YEAR OF CALENDAR YEAR OF 2025.

SO FOR THE UPCOMING FISCAL YEAR, YOU'RE LOOKING AT A CURRENT GROSS TAXABLE VALUE OF APPROXIMATELY $10.4 MILLION WHICH INCLUDES THE CURRENT TAXABLE VALUE OF 9.8.

AND THEN REALLY, WHAT HAS BEEN DRIVING REALLY A LOT OF THE REVENUE INCREASE, EVEN AT STAYING AT THE 3% CAP, IS THE NEW TAXABLE VALUE OF WHAT WE OFTEN CALL THAT NEW CONSTRUCTION.

SO NEW CONSTRUCTION IS PIVOTAL IN IF YOU ARE MAINTAINING THAT 3% CAP, MAINLY BECAUSE NEW CONSTRUCTION IS EXEMPT FROM THE 3% CAP FOR THE FIRST CALENDAR YEAR. SO TECHNICALLY, THE MORE TAXABLE NEW TAXABLE VALUE YOU HAVE HITTING THE CITY'S GROSS TAXABLE VALUE THAT IS BENEFITING IF YOU'RE STAYING AT THE 3% CAP.

OVER THE PAST FIVE YEARS, I HAVE SEEN A SIGNIFICANT GROWTH, UNFORTUNATELY FOR THIS TAX YEAR THAT WE ARE CALCULATING, YOU ARE BEGINNING TO SEE THAT DECLINE WHICH HAS BEEN SOMETHING THAT WE'VE ALSO KIND OF PROJECTED THAT IT IS SLOWING DOWN.

[00:45:05]

SO JUST BE MINDFUL SO THAT I DO PUT THAT OUT THERE.

SO THAT HELPS KIND OF PROJECT TO SEE WHERE IT'S GOING.

EVERY YEAR YOU WILL SEE YOUR TOTAL TAX GROSS TAXABLE VALUE INCREASE BECAUSE AS I SAID IS THAT NEW TAXABLE VALUE AFTER THAT FIRST YEAR WILL JUST BECOME PART OF YOUR CURRENT TAXABLE VALUE THAT IS REFLECTED OR IS AGAINST THAT 3% CAP.

ONE OF MY FAVORITE SLIDES THAT I PUT TOGETHER, I GIVE YOU A 20 YEAR HISTORY OF WHAT OUR TAXABLE VALUE HAS BEEN AND WHAT REVENUES WE'RE KIND OF GENERATING. SO AS YOU SEE, I KIND OF TAKE IT BACK TO 2006 AND YOU SAW THAT IN 2008.

WE KIND OF HIT THAT HIGH. AND THEN THAT'S WHERE THE CRASH KIND OF HAPPENED.

SO YOU SAW HOW MUCH WE LOST IN ACTUAL HOME PROPERTY VALUATIONS, WHICH REALLY SIGNIFICANTLY DECREASED OUR REVENUES THAT WE'RE ABLE TO BRING IN, STARTED INCREASING BACK ABOUT MAYBE ABOUT TEN, 12 YEARS AGO AGAIN.

AND THEN I STARTED SORT OF TRACKING OUR ACTUAL ADOPTED RATE AGAINST WHEN THE 3% CAP WAS ACTUALLY PUT IN THE CHARTER, WHICH WAS IN 2018. SO THE DARK GREEN LINE IS THE ADOPTED TAX RATES FOR THAT PARTICULAR YEAR. THE ORANGE LINE IS YOUR 3% CAP. OF COURSE, WHEN THEY ARE WHEN YOU'RE ADOPTING THE 3% CAP, THEY DO MEET. SO YOU'LL KIND OF SEE THAT THAT ORANGE LINE CONTINUE.

SO YOU'LL SEE THE FLUCTUATIONS. AND YOU'LL SEE STILL OUR REVENUES ARE INCREASING.

YES. BECAUSE WE'VE KIND OF BENEFITED FROM THAT GROWTH OF THAT NEW TAXABLE VALUE.

THIS YEAR I HAVE CHOSEN TO ADD THE ROLLBACK RATE.

AS YOU SEE, FOR HISTORICALLY, WHAT I'VE ALWAYS KIND OF PREDICTED IS, IS THAT AS YOU'RE CONTINUING TO ADOPT THAT 3% CAP RATE WE'VE EVENTUALLY I'VE MENTIONED IS EVENTUALLY YOU WILL GET BELOW ROLLBACK SO THAT THAT RATE IS GOING TO CONTINUE DRIVING DOWN UNTIL THAT ROLLBACK RATE, WHICH IN LAYMAN'S TERMS, THE ROLLBACK RATE MEANS THAT YOU'RE TECHNICALLY NOT INCREASING SOMEONE'S TAXES.

IF THEIR PROPERTY TAXES WERE TO REMAIN THE SAME.

RIGHT. SO THAT MEANS THAT WE'RE NOT INCREASING TAXES.

BUT WITH, YOU KNOW, PROPERTY VALUATIONS GOING UP THERE NATURALLY WILL STILL BE A PROPERTY TAX INCREASE ON THAT HOMEOWNER.

BUT THAT IS ESSENTIALLY WHAT THE ROLLBACK IS.

AND I KNOW THAT SOMETIMES FOR CITIES THAT IS THE GOAL IS TO GET TO THAT ROLLBACK.

I DON'T I HAVE A GOOD RAPPORT WITH ALL THE TAXING AUTHORITIES IN THE COUNTY.

IT IS NOT COMMON FOR A CITY THAT IS STILL GROWING TO BE BELOW ROLLBACK.

BUT I JUST WANTED TO ADD THAT LINE TO SHOW YOU THAT WE ARE OFFICIALLY FOR THIS UPCOMING FISCAL YEAR.

YOUR 3% CAP RATE HAS BEEN PUSHED BELOW THAT ROLLBACK RATE.

SO YOU'RE ACTUALLY REDUCING FOR THE UPCOMING FISCAL YEAR.

SO THIS IS A GOOD VISUAL. ALL RIGHT. SO THE NEXT TWO SLIDES WHAT I TRY TO DO IS SORT OF PUT EVERYTHING TOGETHER AND TELL YOU IF YOU'RE ADOPTING THIS RATE, THIS IS HOW MUCH REVENUE YOU WOULD BE GENERATING BASED ON THE TAXABLE VALUE THAT WE HAVE IN THE CITY APPLIED AGAINST THAT RATE.

AND GIVING YOU SOME COMPARABLES AND ALSO COMPARING IT TO THE CURRENT YEAR.

SO IT KIND OF GIVES YOU A WHOLE OVERVIEW OF WHAT THESE RATES KIND OF DO.

SO WE START OUT WITH THE FISCAL YEAR 2025 CURRENT INFORMATION.

OUR CURRENT RATE IS 6.7339. AND FOR FISCAL YEAR 25, THAT PROJECTED REVENUE IS ROUGHLY ABOUT $57.9 MILLION.

SO WHAT IF WE WERE TO GO INTO 2026 MAINTAINING THAT CURRENT RATE? SO IF YOU WERE TO GO AHEAD AND PROPOSE THAT RATE THIS EVENING AND MOVE THROUGH THE MONTH OF SEPTEMBER WITH ACTUALLY ADOPTING THAT RATE, SO YOU'RE NOT INCREASING YOUR PROPERTY TAX RATE, YOU ARE MAINTAINING WHAT YOU HAVE THIS YEAR.

YOU'RE LOOKING AT AN INCREASED REVENUE UP TO $67.2 MILLION.

SO YOU'RE LOOKING AT AN ADDITIONAL $9.4 MILLION IN AD VALOREM TAXATION OR PROPERTY TAXATION COMPARED TO THIS CURRENT YEAR.

SO IMAGINE THAT IS WHAT THE THE PROPERTY VALUE INCREASE IS DOING FOR YOUR REVENUES.

YOU'RE NOT INCREASING YOUR TAX RATE, BUT YOUR AD VALOREM REVENUE THAT YOU ARE GENERATING IS INCREASING BY THAT NET $9.4 MILLION JUST BECAUSE OF THE GROWTH THE CITY IS EXPERIENCING.

THEN THERE'S SOME OTHER OPTIONS. I ALWAYS KIND OF GIVE A RANGE.

[00:50:03]

SO I HAD TO SWITCH THAT AROUND A LITTLE BIT. SO WITH THAT ROLLBACK RATE IS 6.4071.

YOUR AD VALOREM TAXATION REVENUE WOULD ROUGHLY BE ABOUT $63.9 MILLION, WHICH IS A $6 MILLION INCREASE FROM THE CURRENT YEAR.

AND THEN IF YOU WERE TO ADOPT THE 3% CAP AT THE 6.3658.

THAT WOULD BE ANTICIPATED REVENUE OF 63.5 MILLION, SO THAT WOULD BE ABOUT $5.6 MILLION JUST IN NEW REVENUE FROM THE AD VALOREM TAXATION. IT ALSO GIVES YOU THE PERCENTAGES. SO AS YOU SEE, EVEN THOUGH WE SAY THE ROLLBACK RATE, YOU'RE NOT INCREASING THOSE TAXES, IT'S STILL A FOR THE CITY, A 10.5% INCREASE.

JUST BECAUSE YOU DO HAVE HIGHER PROPERTY VALUATIONS AND YOU DO HAVE AN INCREASED AMOUNT OF PROPERTIES AND TAXABLE VALUE THAT YOU HAVE ON THE ROLL. THE NEW CONSTRUCTION FROM THIS CURRENT YEAR, WHICH I HIGHLIGHTED IN THE PREVIOUS SLIDE OF THIS, 691 MILLION FOR 25 THAT WAS EXEMPT FOR THE 3% CAP AND FOR 26, THIS IS NOW SUBJECTED TO THE 3% CAP.

SO THAT'S WHAT YOU KIND OF SEE IS, IS THAT AS THAT REVENUE OR AS THAT NEW TAXABLE VALUE STARTS DECREASING YOUR TOTAL REVENUE IS ALSO THAT NEW NET REVENUE IS ALSO GOING TO START DECREASING JUST BECAUSE THEY'RE MIRRORING EACH OTHER.

SO FOR FISCAL YEAR 26, THE NEW CONSTRUCTION OF THE $619 MILLION WILL BE EXEMPT FROM THE 3% CAP.

SO THAT'S WHY THAT THAT INITIAL AD VALOREM REVENUE IS IS HIGHER.

JUST BECAUSE WE'RE THOSE DON'T FALL UNDER THAT, THAT, THAT CAP RATE.

BUT THEN REMEMBER, AS WE COME BACK FOR 27, THAT'S 619 MILLION WILL AGAIN BE SUBJECTED TO THE CAP REGULATIONS.

THE NEXT SLIDE LOOKS AT IT A SLIGHTLY DIFFERENT, BUT IT'S STILL THE SAME INFORMATION.

IT MIRRORS THAT IF YOU WERE TO GO AHEAD AND MAINTAIN THE 6.7339 AS I MENTIONED IN THE PREVIOUS SLIDE, YOU'RE LOOKING AT AN ADDITIONAL $9.4 MILLION IN JUST NEW AD VALOREM TAXATION INCREASED FROM THE CURRENT FISCAL YEAR.

AND THEN IT KIND OF MOVES OVER AND IT COMPARES AS YOU'RE DEVIATING FROM THAT RATE FROM THAT ADOPTED RATE FROM THIS YEAR.

AND HOW YOU'RE DEVIATING FROM THE 3% CAP. SO ESSENTIALLY YOU KIND OF CAN JUMP DOWN TO THE 3% CAP RATE OF THAT 6.3658.

YOU'RE LOOKING AT AN INCREASE OF REVENUE FROM THE CURRENT YEAR OF THAT 5.6 MILLION, AS I MENTIONED EARLIER.

BUT THAT ALSO IS A REDUCTION IN 3.6 MILLION FROM MAINTAINING THAT CAP.

SO THAT IS YOUR DELTA, RIGHT. SO THAT'S THE DELTA THAT YOU'RE LOOKING AT THAT IF YOU WERE TO MAKE THAT CHOICE OF MAINTAINING THE 6.7339 OR GOING TO YOUR 3% CAP. SO THAT WOULD BE A LOSS ESSENTIALLY OF ROUGHLY ABOUT $3.7 MILLION THAT YOU WOULD NOT BE ABLE TO GENERATE TO PUT TOWARDS REQUESTS FOR NEXT YEAR. A LOT OF TIMES I DO HEAR PEOPLE SAY, IS THIS, OH, YOU KNOW, WELL CONSTITUENT OUR COUNCIL PEOPLE AND OUR, OUR GOVERNMENT, THEY CAN JUST RAISE THE RATE TO WHATEVER, WHATEVER THEY WANT. THERE'S ACTUALLY A FLORIDA LAW, A FLORIDA STATUTE 200.065 THAT LIMITS WHAT YOU'RE ABLE TO INCREASE THE TAXES TO.

SO DO I DO PUT THAT IN THERE JUST FOR DISCLOSURE THAT THE STATE DOES PROVIDE LIMITATIONS? SO AS I KIND OF MENTIONED IN PREVIOUS YEARS, THE MORE YOU GO INTO ADOPTING THAT RATE OF THE 3% CAP, AS IT'S SORT OF STARTING TO SIGNIFICANTLY REDUCE THE STATE PUTS IN LAWS THAT WILL KEEP YOU FROM INCREASING IT AT THE RATE THAT YOU MAY NEED.

SO IF HYPOTHETICALLY, YOU ONE DAY DROP INTO A 4.0 TYPE OF RATE, BUT YOU'RE IN A DOWNTURN AND YOU NEED THAT FUNDING AND YOU'RE LOOKING AT GOING UP TO A SEVEN POINT RATE JUST TO COVER EXPENSES.

LEGALLY, WE WOULD NOT BE ALLOWED TO DO THAT JUST BECAUSE THEY PROVIDE LAWS THAT RESTRICT HOW HIGH YOU'RE ABLE TO GO.

SO PER THAT FLORIDA STATUTE THAT ESSENTIALLY LIMITS YOU BASED ON THE NUMBER OF VOTING MEMBERS THAT ARE ON THE COUNCIL, ON WHAT RATES YOU'RE ABLE TO ADOPT. SO EVERYTHING IS BASED ON THE PREVIOUS YEARS.

SO THAT'S HOW THEY KIND OF DO THAT. THE THE STATE CALCULATES THESE NUMBERS AND THEY GIVE THOSE TO YOU BASED ON YOUR PREVIOUS CALENDAR YEARS HISTORY.

SO FOR 2025, THIS IS TECHNICALLY WHAT WE'RE IN AT THE MOMENT.

THEY LOOK AT THE FISCAL YEAR 24 ADJUSTED ROLLBACK RATE, WHICH ADJUSTED MEANS IS THAT THEY HAVE A ROLLBACK RATE THAT THEY INITIALLY GIVE,

[00:55:10]

SO THEY COME UP WITH AN ADJUSTED RATE. RIGHT.

SO THAT HAPPENS AFTER VARIANCE ADJUSTMENTS HAPPEN THROUGHOUT THE YEAR.

SO THEY KIND OF PASS THAT TAX ROLL. SO BASED ON THAT ADJUSTED ROLLBACK RATE FROM 24 COMING INTO THE YEAR OF THE 6.8962, THAT MEANS THAT YOUR LIMITATIONS AS OF TODAY TO ADOPT A RATE WOULD BE YOU WOULD HAVE TO HAVE A MAJORITY VOTE. AND YOUR MAJORITY VOTE, WHICH WOULD FOR YOU WOULD BE A THREE VOTE.

BECAUSE YOU'RE A FIVE MEMBER PARTY, YOU CAN ONLY GO UP TO 7.2072 AND IN A TWO THIRD VOTE, WHICH FOR YOU WOULD HAVE TO BE A SUPERMAJORITY BECAUSE IT'S TECHNICALLY BETWEEN 3 AND 4 PEOPLE.

SO IT WOULD HAVE TO BE A SUPERMAJORITY. SO FOR A SUPERMAJORITY, THE HIGHEST YOU COULD GO IS A 7.9279.

SO AS YOU CONTINUE IN THAT PATTERN THOSE I WOULD PROJECT THOSE NUMBERS IF YOU CONTINUE ADOPTING THE 3% CAP RATE, YOUR ROLLBACK RATE WILL ALSO DECREASE, MEANING THAT THOSE ADJUSTMENTS AND THOSE LIMITS WOULD ALSO CONTINUE DECREASING.

SO AS THAT NATURALLY HAPPENS, BECAUSE YOUR TAX BASE IS GROWING AND YOU'RE SPREADING IT OUT MORE.

IT'S JUST HISTORICALLY I WOULD PREDICT THAT IT WOULD CONTINUE DECREASING TO YOU KNOW, SOMETIME WHERE NEXT YEAR COMING AROUND.

THE MAJORITY VOTE MAY BE SOMEWHERE IN THE 6.96.8.

SO THAT'S KIND OF THE PATTERN THAT I'VE SEEN AND THAT MY PROJECTION IS THAT THAT WOULD CONTINUE IF YOU WOULD CONTINUE JUST ADOPTING BASED ON OUR CITY CHARTER.

I ALWAYS ADD THIS IN HERE. IT'S A TAX BILL. MOCK UP.

I KNOW WHEN PEOPLE GET THEIR TAX BILLS, THEY OFTENTIMES LOOK AT THEIR HOME VALUES AND THEY THINK THAT THAT'S WHAT THEY'RE TAXED ON.

IT'S ESSENTIALLY NOT WHAT THEY'RE ACTUALLY TAXED ON.

SO YOUR YOUR TAX BILL IS ACTUALLY BASED ON YOUR TAXABLE VALUE NON-SCHOOL AMOUNT.

SO THEY LOOK AT WHAT YOUR VALUATION IS. THERE'S EXEMPTIONS.

THERE'S STATUTORY LIMITS OF YOUR SAVE OUR HOMES OF HOW HOW MUCH YOUR HOME IS ACTUALLY VALUING.

SO WHEN YOU'RE LOOKING AT YOUR PROPERTY VALUATION AMOUNT I KIND OF GIVE A RANGE FROM 10,000 TO 200,000 IS NOT UNREALISTIC.

I ACTUALLY PULL TAX, A TAX BILL THAT I DO EVERY YEAR.

FROM SOMEONE WE KNOW WHO'S BEEN A LONG TIME RESIDENT HERE AND HAS AN AVERAGE HOME VALUE OF BETWEEN 200 AND 300,000, AND HIS ACTUAL TAXABLE VALUE THAT HIS TAX BILL IS ON.

AND WE'LL KIND OF SHOW THAT IN A LITTLE BIT IS $30,000, RIGHT.

SO IT IS KIND OF REALISTIC WHAT WE'RE PUTTING UP.

SO LET'S LOOK AT THE MEDIAN. RIGHT. SO LET'S SAY THAT YOU HAVE A HOME WHERE YOUR PROPERTY VALUATION IS $75,000.

AFTER YOUR ALL OF YOUR EXEMPTIONS. BASED ON THAT, BASED ON THE RATE THAT WE ADOPTED THIS YEAR.

THE PALM BAY PORTION OF THE TAX BILL IS AROUND $505.04.

IF WE WERE TO MOVE INTO 26, ADOPTING THE 3% CAP RATE, YOU'RE LOOKING AT A REDUCTION TO $477.44. IF YOU WERE TO ADOPT THE ROLLBACK RATE, IT ACTUALLY GOES UP A LITTLE BIT BY $3.

JUST BECAUSE LIKE I MENTIONED, THE ROLLBACK IS HIGHER.

AND IF YOU WERE TO MOVE INTO THE YEAR AND ADOPTING THE SAME RATE AND YOUR PROPERTY VALUATIONS DO STAY THE SAME, AND WE HAVE NOTICED THAT WITH ALL THE EXEMPTIONS, IT'S IT'S PRETTY STAGNANT STILL.

WE WOULD BE BACK AT THE 505. SO YOU KIND OF SEE HOW THAT KIND OF IMPACTS YOUR HOME VALUATIONS.

BUT THEN I ALSO PUT IN WHAT THAT IMPACT TO THE CITY IS.

SO AS YOU MOVE INTO THE BOTTOM PORTION OF THAT CHART I LOOK AT THIS YEAR FOR FISCAL YEAR 25.

AT THAT ADOPTED RATE, WE ARE GENERATING 57.8 MILLION.

AND THEN IF WE WERE TO GO AHEAD AND MAINTAIN THAT RATE INTO THE NEXT YEAR, WE'RE LOOKING AT AN INCREASE OF APPROXIMATELY $9.6 MILLION. AND THAT IS THE REVENUE THAT THAT WE ARE LOOKING AT, ADDING, AS I TALKED ABOUT IN THE PREVIOUS SLIDES.

SO FOR A HOMEOWNER, LIKE THE PROPERTY TAX BILL WILL KIND OF GO INTO A LITTLE BIT, A LITTLE BIT IF THAT, IF THAT TAXABLE VALUE OF THAT PROPERTY VALUATION AMOUNT DOESN'T CHANGE VERY MUCH.

AND THAT BILL IS THE SAME, BUT WE ARE SPREADING IT OUT ACROSS MORE PEOPLE THAT LIVE IN THE CITY.

THAT'S THAT VARIANCE THAT FOR THE CITY. WE'RE NOT JUST STILL COLLECTING 57 MILLION.

WE ARE INCREASING THAT TO ROUGHLY ABOUT 67 MILLION OR $9.6 MILLION MORE.

[01:00:04]

THE NEXT ONE IS AN ACTUAL TAX BILL BREAKDOWN.

SO AGAIN THIS IS BASED ON THAT THAT PROPERTY THAT WE USE TO KIND OF LOOK AT.

ONE THING WE HIGHLIGHT IS IS THAT YOUR TAX BILL THAT YOU RECEIVE, NOT ALL OF THOSE GO TO THE CITY OF PALM BAY.

THE CITY OF PALM BAY IS ONLY GENERATES ABOUT 35% OF THAT, WHERE ABOUT 47% ACTUALLY GOES TO SCHOOLS.

AND THEN WE HAVE SOME THAT GOES TO BREVARD COUNTY, AND THEN THERE'S SOME SPECIAL DISTRICTS.

SO IT'S JUST FOR SOME PEOPLE, A MISNOMER THAT THAT WHOLE AMOUNT THAT YOU PAY COMES TO THE CITY OF PALM BAY.

NOW THAT IS VARIES FROM FOR IT'S NOT A SIMPLE THING WHERE OH, YOU TOLD ME IT WAS 46%.

IT DOES VARY FROM PERSON TO PERSON. BUT IN GENERAL WE DO STRESS THAT THE CITY OF PALM BAY MUNICIPAL PORTION, WHICH IS ACTUALLY ALSO INCLUDES THE ROAD. BOND IS ONLY ROUGHLY ABOUT A LITTLE BIT MORE THAN A THIRD OF WHAT YOU'RE ACTUALLY PAYING IN TOTAL.

ALL RIGHT. SO THIS IS THE ACTUAL HISTORICAL TAX BILL.

SO WE'VE KIND OF LOOKED AT A EIGHT YEAR HISTORICAL OF THAT INDIVIDUAL WHO'S TAX BILL THAT WE KIND OF PAY ON.

AND SO THIS IS, THIS IS THAT THAT STORY THAT I JUST TOLD YOU HAVE A MARKET VALUE OF HOME THAT IS $260,000, RIGHT. SO THIS IS A LONG TIME RESIDENT WHO'S BEEN IN PALM BAY FOR QUITE SOME TIME.

AND THAT PROPERTY VALUATION FOR THE RECENT YEAR HAS INCREASED.

IT'S MAYBE SLOWING DOWN AGAIN A LITTLE BIT LIKE WE'RE KIND OF SEEING.

SO THAT $260,000 IN MARKET VALUE IS NOT ACTUALLY WHAT HE'S BEING TAXED ON.

RIGHT. SO WE'RE LOOKING AT WE TALK A LOT ABOUT A LOT ABOUT THAT SAVE OUR HOMES CAP.

SO SAVE OUR HOMES IS SOMETHING THAT PROTECTS OUR OUR HOMEOWNERS.

WHERE THE STATE ACTUALLY HAS IMPLEMENTED A LAW WHERE THE ASSESSED VALUE OF YOUR HOME CAN ONLY INCREASE BY 3%, RIGHT? SO IMAGINE THAT THERE'S ALREADY THAT. THAT SAFEGUARD OF WHAT WE'RE TAXING YOU ON.

JUST DISREGARDING OF HOW YOUR MARKET VALUE IS DOING.

BUT WHAT WE'RE TAXING YOU ON IS CAN ONLY INCREASE BY 3%.

SO ESSENTIALLY, THERE ALREADY IS A 3% CAP IN PLACE THAT IS BY THE STATE, RIGHT.

SO THIS HOME OWNERS WHO HAS A MARKET VALUE OF $260,000, HIS ASSESSED VALUE IMMEDIATELY DROPS DOWN TO $85,200. RIGHT. SO THAT IS THE ONLY AMOUNT TO START WITH THAT THE COUNTY AND THE STATE CAN EVEN TAX THAT PERSON ON.

NOW THAT PERSON HAS EXEMPTIONS. MOST OF US HAVE THE IF YOU'RE A HOMEOWNER, YOU HAVE THE 25,020 5000.

EXEMPTION SO THAT $260,000 HOME HAS NOW A TAXABLE VALUE OF 35,000 AND $200.

RIGHT. SO THAT KIND OF TIES BACK TO THAT, THAT SLIDE THAT I JUST SHOWED THAT IT IS IT IS ACTUALLY POSSIBLE THAT THAT HOMES THAT ARE VALUED IN TWO, $300,000 RANGE ARE ONLY BEING TAXED ON A POSSIBLY A QUARTER OF WHAT THE ACTUAL MARKET VALUE IS.

SO THAT PERSON FOR $260,000 MARKET VALUE HOME.

THE TAXES THAT THAT INDIVIDUAL PAID FOR THE CURRENT YEAR IS $237.03.

SO WHEN YOU'RE IMAGINING, BASED ON THE WHOLE TAX BILL, THAT IS THE AMOUNT THAT WAS GENERATED FOR THE CITY OF PALM BAY FOR THAT HOME.

AND THAT IS MAINLY AND I WILL SAY MAINLY BECAUSE THE STATE DOES HAVE ALREADY A 3% INCREASE OR SAVE OUR HOMES CAP IN PLACE. THE NEXT SLIDE I WANT TO TALK ABOUT IS OUR GENERAL OBLIGATION OR OUR GEO BOND DEBT MILITARIES. SO AS YOU KNOW, WE HAD $150 MILLION IN GEO BONDS THAT HAS BEEN APPROVED, AND WE'VE DONE THREE DRAWS NOW ON THAT.

THE THIRD DRAW OF THAT 50 MILLION DID HIT THE TAX BILL FOR 2025.

SO THAT WAS LAST YEAR WHEN WE WENT THROUGH THE PREPARATION.

SO THAT ANNUAL DEBT SERVICE PAYMENT JUMPED FROM ABOUT 7 MILLION TO 10 MILLION FOR THE YEAR THAT WE'RE CURRENTLY IN.

SO THAT VOTED DEBT MILLAGE DID INCREASE FOR THAT YEAR.

JUST BECAUSE YOU'RE GOING FROM A TWO DRAW FOR THE 50 AND 50 TO ADDING THAT THIRD DRAW THAT YOU NOW HAVE TO DO A DEBT AND SERVICE, DEBT SERVICE PRINCIPAL AND INTEREST PAYMENTS THAT YOU HAVE TO PAY.

SO HOW WE KIND OF ASSESS THAT IS, IS THAT I CALCULATE HOW MUCH WE HAVE TO PAY FOR THOSE THREE GENERAL OBLIGATION BONDS.

[01:05:08]

IF WE DON'T GENERATE ANY MORE, WE DON'T GENERATE ANY LESS.

SO WE SET THAT TAX RATE TO CALCULATE TO BRING IN AN ESTIMATED WE USUALLY ESTIMATED A 96% COLLECTION RATE.

SO IT'S NOT EVEN 100%, BUT IT'S REALLY ONLY COVERING THOSE DEBT SERVICE PAYMENTS.

AND THOSE FUNDS CAN ONLY BE USED TO PAY PRINCIPAL AND INTEREST.

FOR 26 YOU WILL SEE A REDUCTION IN THE RATE BECAUSE YOUR DEBT SERVICE, WHILE MAY STAY THE SAME.

BUT REMEMBER I JUST MENTIONED IN 25 YOU WERE CARRYING THAT THIRD AND NOW WE'RE STAYING STAGNANT.

SO WHILE YOUR YOUR DEBT SERVICE REQUIREMENT HASN'T CHANGED.

YOU'RE STILL PAYING THAT 10 MILLION. BUT YOU'RE SPREADING THAT ACROSS MORE TAXPAYERS, RIGHT? AND BECAUSE YOU DO NOT HAVE ANY ADDITIONAL GENERAL OBLIGATION BONDS THAT YOU'VE DRAWN OUT ON UNLESS THERE IS A CHANGE ON THAT THAT WILL CONTINUE TO HAPPEN. YOU WILL CONTINUE TO SEE A IF IF GROWTH CONTINUES TO HAPPEN, YOU'LL SEE CONTINUE TO SEE A RATE DECREASE OVER THE YEARS, BECAUSE WE'RE REALLY ONLY COLLECTING THAT AMOUNT AND YOU'RE SPREADING IT ACROSS MORE INDIVIDUALS. SO THEN IF YOU APPLY THAT TO THE TAX RATE PROCESS WE JUST WENT THROUGH, IF YOUR ANNUAL HOME ASSESSED VALUE OF WHAT YOU'RE BEING TAXED ON KIND OF STAYS THE SAME.

WE SHOULD SEE PROPERTY OWNERS COULD POSSIBLY SEE A REDUCTION IN THAT PORTION OF THEIR TAX BILL JUST BECAUSE OUR TAX RATE FOR THE CURRENT YEAR'S 1.1210, BUT IT WILL BE DECREASING TO 0.9993.

SO THAT'S JUST CONTINUING TO HAPPEN. SO IF YOUR PROPERTY VALUATIONS ARE SORT OF STAYING THE SAME ON WHAT'S BEING ASSESSED THEN THERE SHOULD BE A DECREASE.

BUT IT SHOULD WE SHOULDN'T SEE AN INCREASE MAJORITY ON ANY OF THOSE THOSE RELATED TYPES OF TAXES.

OKAY. THE LAST THING I KIND OF HIGHLIGHT IS, IS THAT WE DO USUALLY HAVE OUR STATE SHARED REVENUES NOT ESTIMATED AT THIS TIME OF THE YEAR YET.

SO THOSE DO MAKE UP OUTSIDE OF PROPERTY TAXES.

THEY'RE A LARGER PORTION OF THE GENERAL FUND REVENUE.

SO WHAT WE USUALLY DO IS JUST WE DO ESTIMATES FOR THE YEAR BASED ON TRENDING AND HOW WE'RE SEEING THINGS COME IN.

THOSE ARE PUBLISHED BY THE DEPARTMENT OF REVENUE.

AND USUALLY WE SEE THEM SOMETIME IN THE MID-JULY TIMEFRAME.

SOME COME BACK A LITTLE BIT LATER. NOT UNTIL AUGUST.

SO DEPENDING ON THE TIME FRAME, WE'LL GO AHEAD AND MAKE THOSE ADJUSTMENTS.

BUT IF WE DON'T SEE THOSE ADJUSTMENTS FAST ENOUGH, THEN WE'LL GO AHEAD AND JUST ADJUST THEM IN THE NEW YEAR.

SO THOSE ARE THE ITEMS THAT ARE ESTIMATES. BUT WE DO LIKE TO TRUE THEM UP AS SOON AS THEY ARE PUBLISHED.

IT JUST TAKES IT DEPENDS ON HOW FAST. THE DEPARTMENT OF REVENUE THE ECONOMIC DEVELOPMENT DEPARTMENT ACTUALLY PUBLISHES THOSE ITEMS. SO I ALWAYS LIKE TO PUT THAT OUT THERE, THAT WE ARE STILL KIND OF WAITING FOR THOSE NUMBERS TO COME IN.

ALL RIGHT. THE LAST IMPORTANT SLIDE IS WHAT YOU STILL HAVE LEFT TO DO FOR THE REMAINDER OF THIS BUDGET PROCESS.

SO I WILL DISCLOSE THAT WE ARE IN THE HEAVIER PART OF IT NOW WHERE COUNCIL INVOLVEMENT AND CITY MANAGEMENT INVOLVEMENT IS PIVOTAL.

OUR OFFICIAL TAX TIME FRAME BEGINS JULY 1ST, AND WE HAVE TO GET THROUGH THE MONTH OF SEPTEMBER AND OFFICIALLY ADOPTING THE BUDGET.

SO AS I MENTIONED EARLIER, AT YOUR NEXT COUNCIL MEETING, YOU WILL SEE THE AGENDA ITEM WHERE YOU'RE OFFICIALLY APPROVING THE PROPOSED RATE FOR NEXT YEAR AND THE TWO PUBLIC HEARINGS IN THE MONTH OF SEPTEMBER.

THE PROPOSED RATE YOU CAN SET UNTIL SEPTEMBER, YOU CAN STILL CHOOSE TO GO DOWN, BUT ONCE YOU APPROVE IT AND ONCE THAT INFORMATION IS CERTIFIED TO THE PROPERTY APPRAISER AFTER THAT COUNCIL MEETING, YOU CAN NO LONGER GO ABOVE THAT RATE.

SO IF YOU WERE TO SET THE RATE AT YOUR 3% CAP AND THEN IN THE AUGUST WORKSHOP, YOU MAY DECIDE THAT, HEY, YOU KNOW, I DO WANT TO GO TO ROLLBACK LEGALLY.

YOU WOULD NOT BE ALLOWED TO DO THAT BECAUSE YOU CANNOT GO ABOVE WHAT YOU'RE SETTING.

SO REGARDLESS, I'VE ALWAYS RECOMMENDED THAT YOU PROPOSE A RATE.

POSSIBLY A LITTLE BIT HIGHER, BECAUSE YOU DO STILL HAVE THAT FLEXIBILITY OF GOING DOWN.

IT IS HURRICANE SEASON, AND I KNOW WE HAVE A STABILIZATION FUND.

[01:10:04]

SO I DO PUT THAT OUT THERE. SO JULY 31ST IS WHEN WE'RE HOPING TO HAVE A PROPOSED BUDGET TO YOU.

WE HAVE SOME TIME SET ASIDE FOR MONDAY WHERE BECAUSE NORMALLY AT THIS TIME.

AND I THINK THAT'S JUST BECAUSE WE, YOU KNOW, IT'S BEEN A LONG 30 DAYS THAT WE'RE KIND OF WORKING THROUGH AND WE'RE CHANGING SOME THINGS UP. USUALLY AT THIS TIME OF THE YEAR, YOU MAY ALREADY HAVE A PROPOSED BUDGET.

JUST MEANING OF ALL THE REQUESTS THAT WE'VE TALKED THROUGH, WE'VE ALREADY KIND OF BUILT THEM IN.

WE HAVE NOT DONE THAT YET. SO WE ARE HAVE SOME TIME SET ASIDE ON MONDAY TO PAY, DEPENDING ON YOU KNOW, YOUR GUIDANCE TONIGHT. SO WE'RE HOPING TO HAVE A NICE PROPOSED BUDGET TO YOU BY JULY 31ST, SO YOU CAN KIND OF DIGEST THAT A LITTLE BIT. WE HAVE A SECOND OR THIRD OPTIONAL WORKSHOP ON YOUR CALENDAR FOR AUGUST 5TH.

HISTORICALLY, IN PREVIOUS YEARS YOU DON'T HAVE TO HAVE THE WORKSHOP IF YOU LIKE THE PROPOSED BUDGET, YOU SAY I'M MOVING AHEAD AS IS. THAT IS COMPLETELY UP TO YOU.

BUT WE ALREADY HAVE THAT SORT OF SET ASIDE ON YOUR CALENDAR THE SEPTEMBER 8TH.

SO I WILL SAY THE SEPTEMBER DATES OF FOR THE SPECIAL COUNSEL.

THE PUBLIC HEARING DATES ARE EXTREMELY IMPORTANT.

YOU WILL NEED TO DECIDE TONIGHT IF THOSE DATES ARE ADEQUATE.

AND I CAN KIND OF GO INTO THEM IN A LITTLE BIT.

THERE THERE'S MANY REGULATIONS ON WHEN AND HOW YOU CAN HAVE THESE MEETINGS.

SO I HAVE ALREADY KIND OF WORKED SINCE FEBRUARY WITH THE, WITH THE LEGISLATIVE DEPARTMENT.

AND I KNOW I'VE KIND OF BROUGHT THEM UP MULTIPLE TIMES.

BUT YOU WILL HAVE TO MOVE AHEAD AFTER TONIGHT AND AFTER NEXT COUNCIL MEETING IN SETTING THOSE DATES.

ONCE YOU SET THOSE DATES, YOU CANNOT CHANGE THEM.

SO WE CANNOT DEVIATE FROM THE DATE AND FROM THE TIME AND THE LOCATION.

IT'S VERY IMPORTANT. THIS IS A STATUTORY REQUIREMENT.

SO IN SEPTEMBER, I USUALLY THE REASON WHY I GO WITH A WEDNESDAY WEDNESDAY COMBINATION IS BECAUSE WE ARE NOT ALLOWED TO HAVE OUR PUBLIC HEARINGS ON THE SAME DATE AS THE BREVARD COUNTY COMMISSIONER, AS THEY HAVE THEIR PUBLIC HEARINGS AND THE SCHOOL BOARD.

THEY HAVE FIRST DIBS. NO TAXING AUTHORITY IN BREVARD COUNTY IS ALLOWED TO HAVE THEIR DATES, HAVE THEIR HEARINGS ON THOSE PARTICULAR COOLER DAYS.

GENERALLY THEY DO TUESDAYS AND THURSDAYS. RIGHT.

SO TUESDAYS AND THURSDAYS IN THE MONTHS OF SEPTEMBER ARE USUALLY OFF LIMITS BECAUSE OF THAT.

SO ALL THE TAXING AUTHORITIES, MANY OF THEM WILL STICK WITH A WEDNESDAY SCHEDULE JUST BECAUSE THEY KNOW THAT THE COUNTIES KIND OF DO THE TUESDAY AND THURSDAY COMBO.

AND THEN ALSO IN SEPTEMBER YOU HAVE COUNCIL MEETINGS.

YOU WILL NOT BE ABLE TO HAVE THEM AT THE SAME TIME AS THE COUNCIL MEETING.

ALSO, THE REASON WHY I PICK THE SECOND AND THE FOURTH WEEK OF SEPTEMBER AND NOT THE FIRST AND THE THIRD WEEK OF SEPTEMBER IS BECAUSE LEGALLY OUR OFFICE IS ONLY ALLOWED TO AMEND THE PREVIOUS YEAR'S BUDGET 60 CALENDAR DAYS AFTER THE NEW BUDGET IS ADOPTED.

I DO A TRUE UP BUDGET AMENDMENT IN THE MONTH OF NOVEMBER WHERE WE RECOGNIZE ANY ADDITIONAL GRANTS.

WE RECOGNIZE ANY ADDITIONAL REVENUE. WE DO TROOPS.

SO ESSENTIALLY, AND I'M MORE OF AN ACCOUNTING FUNCTION WHERE WE SORT OF CLEAN UP THAT BUDGET IN THE MONTH OF OCTOBER.

YOU HAVE A THREE WEEK SKIP. SO THAT MEANS THAT IF WE WERE TO MOVE THESE PUBLIC HEARINGS TO THE FIRST AND THE THIRD WEEK OF SEPTEMBER, THE COUNCIL MEETING FOR THAT BUDGET AMENDMENT IN THE MONTH OF NOVEMBER FALLS OUTSIDE OF 60 DAYS.

SO I HIGHLY STRESS THAT THESE DATES ARE CHOSEN FOR THOSE PARTICULAR REASONS, TO ENSURE THAT WE'RE IN COMPLIANCE WITH ALL STATUTORY LAWS. AND I KNOW LAST YEAR WE PICKED A WEDNESDAY AND WEDNESDAY COMBINATION WITH SEPTEMBER 11TH WAS ON A WEDNESDAY.

SO I KNOW WE HAD TALKED ABOUT THAT AND WE CHOSE TO MOVE IT TO A THURSDAY.

JUST BECAUSE OF THAT REASON. SO I ALSO TOOK THAT INTO CONSIDERATION.

SO JUST BE MINDFUL. WE PUT A LOT OF WORK INTO CALCULATING THESE DAYS.

ONCE YOU'RE OKAY WITH THEM. I HAVE HAD THESE APPROVED BY THE DEPARTMENT OF REVENUE AS WELL.

SO THAT'S A PROCESS I GO THROUGH. I PROVIDE THEM OUR CALENDAR AND THEY ACTUALLY APPROVE THAT.

IT'S ACCORDING TO COMPLIANCE. SO THOSE HAVE TO BE DECIDED UPON TONIGHT AS WELL.

AND WE HAVE TO STICK WITH THOSE. AND AGAIN WE HAVE ALSO HAVE A 30 DAY DEADLINE FROM ADOPTION TO PUBLISH THE BUDGET.

[01:15:03]

ALL RIGHT. AND I BELIEVE THAT IS IT FOR OUR PRESENTATIONS.

IF WE WANT TO GO AHEAD AND OPEN IT UP NOW FOR COMMENTS KIND OF WORK THROUGH THAT RATE AND THOSE HEARING DATES ADDRESS ANY QUESTIONS? WELL, I'LL GO AHEAD AND START WITH WITH QUESTIONS.

THE DEPUTY MAYOR WILL START WITH YOU. YES. THANK YOU.

COULD THE FIRE CHIEF COME UP AND TALK ABOUT THE PARAMEDIC SOLO.

PARAMEDIC? SURE. YEP.

YES, SIR. HOW ARE YOU? GOOD SIR. ARE YOU DOING ALL RIGHT? WHAT CAN I HELP? CAN YOU JUST TALK TO ME OR TALK TO US? EXACTLY. WHAT IS THAT PROGRAM? WHY IS IT NEEDED? I KNOW, LIKE BREVARD COUNTY TYPICALLY PROVIDES PARAMEDIC SERVICES TO US.

I THINK YOU HAVE 1 OR 2. TYPICALLY ON A DO YOU WANT TO KNOW WHY WE HAVE THE PARAMEDIC PROGRAM? LIKE, WHAT IS THE SOLO PARAMEDIC PROGRAM? SOLO PARAMEDIC.

OKAY. THE REASON WE HAVE THE PARAMEDIC PROGRAM OVERALL IS WHILE BREVARD COUNTY IS A ALS TRANSPORT ORGANIZATION, THE MAKEUP OF THE COUNTY MAKES IT TO WHERE THAT THE UNITS ARE NOT ALWAYS AVAILABLE, OR THEY'RE DELAYED INTO WHAT WE CAN GET TO IN THE FIRE SERVICE.

SO THE FIRE SERVICE IS HISTORICALLY DONE BOTH AND MANY EXCUSE ME, MANY ORGANIZATIONS, THEY DO BOTH FIREFIGHTING AND THE TRANSPORT.

HERE WE'RE A NON TRANSPORT AGENCY. WHAT THAT DOES IS IT ALLOWS US TO GET TO THE INCIDENT BEFORE BREVARD COUNTY IN SEVERAL CASES IF NOT THE MAJORITY OF THEM.

START PATIENT CARE AND DO INTERVENTIONS THAT ARE LIFESAVING IN THAT PERIOD OF TIME.

THEN BREVARD COUNTY WILL ARRIVE AND THEY'LL TURN AROUND, WILL TRANSFER THE PATIENT TO THEM FOR TRANSPORT TO THE NEAREST FACILITY BASED ON WHAT THAT INJURY OR ILLNESS WAS. AND THE REASON WE HAVE THE SOLO MEDIC IS, IS WE AS WE ALL GO THROUGH PARAMEDIC SCHOOL, WE START AS EMTS. THEN YOU GO OUT INTO THE FIELD OR YOU GO INTO SCHOOL, YOU GET LICENSED BY THE STATE OF FLORIDA TO BE A PARAMEDIC.

WHEN YOU COME INTO AN ORGANIZATION AND THIS IS I WOULD I WOULD VENTURE TO SAY PRETTY MUCH EVERY ORGANIZATION IN THE STATE OF FLORIDA, IF NOT IN SEVERAL OTHER STATES, IS YOU HAVE TO HAVE CERTAIN TIME TO LEARN LOCAL PROTOCOL, WHICH TIES INTO OUR MEDICAL DIRECTION.

SO THE MEDICAL DIRECTOR DICTATES WHAT KIND OF DRUGS WE CAN USE, HOW MUCH WE CAN USE THEM, WHEN TO PUSH THEM, WHEN NOT TO PUSH THEM. SO WHAT WE'RE DOING THERE IS WE'RE PUTTING THEM THROUGH A PROGRAM TO WHERE THEY'RE TRAINED AND ASSESSED TO MAKE SURE THAT NOT ONLY ARE THEY GOOD AT THE STATE LEVEL, BUT THEY HAVE THE LOCAL PROTOCOL THAT THE MEDICAL DIRECTION OVERSEES US WITH, AND THEY CAN HANDLE A PATIENT AS A A LOT OF ORGANIZATIONS HAVE TWO PARAMEDICS PER UNIT.

THAT'S NOT ALWAYS POSSIBLE IN A LOT OF PLACES.

SO WE HAVE A SOLO MEDIC AND WE HAVE THE ABILITY TO PUT TWO ON A UNIT.

WE DO THAT AND WE HAVE MASS CASUALTIES. IF WE HAVE MOTOR VEHICLE ACCIDENTS, THINGS LIKE THAT.

BUT WHAT THAT DOES IS IT CERTIFIES THAT THAT INDIVIDUAL CAN AT THAT POINT, TREAT A PATIENT ON THEIR OWN WITHOUT ANY HELP OF ANOTHER MEDIC UNTIL OTHER MEDICS GET THERE, OR THEY CAN TAKE CARE OF IT ALL THE WAY THROUGH TO DELIVERY OF CARE AND TRANSPORT TO THE FACILITY.

SO THAT'S WHAT THAT'S WHAT A SOLO MEDIC IS AND HOW IT TIES INTO THE MEDICAL OR THE EMERGENCY MEDICAL PROGRAM ALTOGETHER.

THANK YOU. I DON'T HAVE ANY OTHER QUESTIONS FOR THE CHIEF, BUT IF HE'S SENSITIVE ENOUGH.

REST OF COUNCIL DOES HAVE OTHER QUESTIONS FOR ANYONE.

FOR CHIEF. OKAY. CARRY ON. THANK YOU. MR. MORTON MAYBE THIS FALLS UNDER TRANSFERS OR INTERGOVERNMENTAL, BUT THE LIKE THE ENTERPRISE DEPARTMENTS, LIKE BUILDING UTILITIES THAT WILL BE OCCUPYING BUILDING AND OTHER FACILITIES IN PALM BAY ARE THEY ARE THOSE ENTERPRISE FUNDS PAYING TOWARDS THE GENERAL FUND OR ARE THEY LIKE, HOW IS THAT MONEY ALLOCATED? LIKE, I KNOW THE BUILDING DEPARTMENT CURRENTLY HAS THE LEASE THAT THEY'RE SPENDING OVER A MOUNTAIN ROAD AND ALL THAT MONEY'S OUT OF THEIR ENTERPRISE FUND.

THEY'RE GOING TO BE OCCUPYING BUILDING EY ARE THEY.

THEY OCCUPY THAT WITHOUT EXPENSE OR IS THAT ARE THEY PAYING THEIR FAIR SHARE TOWARDS UNPOWERED JANITORIAL SERVICES, OVERHEAD MAINTENANCE, ETC.? SO WE DO WE DO CHARGE FACILITIES, CHARGE BACKS TO THE ENTERPRISE.

WE DO LABOR ALLOCATIONS AND FLEET. SO YES, THEY DO PAY BACK THEIR PROPORTIONATE SHARE.

WE DO HAVE SOME NUMBERS ON THAT TO THE GENERAL FUND.

OKAY. SLIDE 32.

FOR ANGELIQUE MAINTAINING THE 6.7339 FOR FISCAL YEAR 26

[01:20:07]

IF THE THREE THAT STILL RETAINS THE 3% CAP. NO.

SO THE 691 MILLION IS SHOWING THE THE NEW TAXABLE VALUE THAT YOU ARE REAPING A BENEFIT FROM THIS YEAR IS NOW SUBJECTED TO THE 3% CAP. SO ESSENTIALLY YOU'RE NO LONGER REAPING THAT ADDITIONAL BENEFIT FROM ANY RATE, THAT YOU WOULD PUT IT AT. SO NOW IT'S PART OF YOUR REGULAR TAX BASE AND COUNCIL HAS THE ABILITY, IF SO NEEDED TO, TO BREAK THE CAP. YES. SO COUNCIL PER YOUR CITY CHARTER YOU WOULD HAVE TO HAVE A SUPERMAJORITY VOTE TO EXCEED THE 3% CAP RATE, WHICH FOR 26 WOULD BE THE 6.3658.

SO IF YOU WERE TO CHOOSE TO GO ANY, ANY AMOUNT ABOVE THAT, EVEN IF IT IS 0.0001 YOU WOULD HAVE TO LEGALLY, PER YOUR CITY CHARTER, HAVE TO HAVE A SUPERMAJORITY VOTE, WHICH WOULD BE FOR MEMBERS OF THE COUNCIL VOTING FOR THAT.

YOU SAID ABOUT WHAT? MILLAGE RATE. SO YOU HAVE 3% CAP RATE IS 6.3658.

SO THAT'S THE ONE THAT SORT OF HIGHLIGHTED THE 6.7339.

WE WOULD NEED A SUPERMAJORITY. THAT IS CORRECT.

YOU WOULD. SO FOR THE, FOR THIS EVENING YOU CAN SET THAT PROPOSED SET THAT PROPOSED.

BUT AS YOU MOVE INTO THE OFFICIAL ADOPTION IN THE MONTHS OF SEPTEMBER.

YES. YOU DO LEGALLY HAVE TO HAVE THAT, THAT FOR ONE VOTE AT MINIMUM TO ADOPT THAT RATE.

OKAY. AND GENERAL QUESTION FOR WHOEVER WANTS TO ANSWER.

SO THE ROAD BOND MILLAGE IS AROUND THAT 0.9.

SO LIKE VACANT LOTS HAVE A GREAT DEAL ON WHAT THEY'RE PAYING AND TOWARDS AND TOWARDS THE ROAD BOND PROGRAM COMPARED TO SOMEBODY THAT HAS A HOME.

SO HOW WE HOW WE CALCULATE THIS. IT'S BASED ON THE TOTAL TAXABLE VALUE.

SO WHATEVER. THE PROPERTY APPRAISER HAS PRAISED THE HOME VALUE AT FOR WHATEVER PARCEL IT IS, WHETHER IT'S COMMERCIAL WHETHER THERE'S A HOME ON IT OR NOT, HOME ON IT.

THEY COLLECT THAT ALL INTO A CITYWIDE TAX ROLL.

AND THAT IS HOW THE RATES ARE CALCULATED. SO WHATEVER TAX BILL THAT PARTICULAR OWNER, HOMEOWNER OR OWNER PROPERTY OWNER RECEIVES.

THAT WOULD BE THE RATE THAT IT GOES AGAINST WHATEVER THE VALUATION OF THAT PROPERTY IS.

SO OF COURSE, IF YOU ARE JUST OWNING LAND VERSUS LAND PLUS A HOME, YOUR TAXABLE VALUE WOULD BE HIGHER.

BUT THAT RATE IS WILL BE THE SAME AND IS APPLIED TO ANYONE WHO HAS A TAXABLE IN THE COUNTY.

I MEAN, THAT'S JUST SO BROKEN, RIGHT? LIKE I MEAN, THERE'S A GROUP IN TOWN THAT, YOU KNOW, 2 OR 3000 LOTS STREETS THAT WEREN'T PAVED, AND THEY'RE PAYING NEXT TO NOTHING AND GETTING THEIR ROADS PAVED.

AND THEN THERE ARE LOTS GO UP, YOU KNOW, DOUBLE OR TRIPLE IN VALUE.

OKAY. THANK YOU. ANY OTHER QUESTIONS? THANK YOU, DEPUTY MAYOR.

COUNCILMAN LANGMAN, MEAN. ANY QUESTIONS? COUNCILMAN HAMMOND.

I HAD A COUPLE. FIRST ONE, IF WE DO A FREEZE ON THE MILLAGE RATE, IS THERE A WAY TO DO IT? ONLY ON HOMES AND PROPERTIES THAT ARE NOT HOMESTEADED? NO. SO THAT WOULD BE A LEGAL QUESTION. OUTSIDE OF THAT, AT THE AT THE STATE LEVEL OR AT THE PROPERTY OWNERS LEVEL.

SO IT IS FOR US, WE SET A RATE THAT IS FOR OUR OPERATIONAL PURPOSE.

SO THAT ESSENTIALLY IS WHAT THE GENERAL FUND AT VALOREM TAXATION RUNS ON.

SO OUR RATE IS APPLIED THE SAME TO ANYBODY. AND SO THAT QUESTION IS OUTSIDE OF HOW WE SET OUR TAX RATE.

BUT OKAY. AND SECONDLY I SAW YOU GOT YOUR CHAIRS IN THERE.

AT THAT PRICE, IT'S LOOKING LIKE IT'S $333 A CHAIR.

IS THAT RIGHT? YES. I THINK THAT OUR CITY CLERK CAN ANSWER THAT AND IT HAS NOT BEEN FUNDED IS A REQUEST.

SO I THINK SHE GOT THE QUOTE BACK FOR THE CHAIRS.

YES. THAT WAS BASED OFF OF THE STATE CONTRACT.

OKAY. THANK YOU. ANY ADDITIONAL QUESTIONS? THAT IS IT FOR NOW.

COUNCILMAN. JOHNSON. ANY QUESTIONS? SIR? I HAVE PLENTY, SIR.

OKAY. SO THEY'LL THEY'LL. THEY'RE TAKING DOWN NOTES, SIR.

CARRY ON. SO THE FIRST ONE, IF YOU GO BACK TO SLIDE 34.

IN REGARDS TO THE TAX MILLAGE RATE IMPACT, I WOULD LOVE FOR US TO UPDATE THAT THE AVERAGE MEDIAN PROPERTY VALUE FOR

[01:25:06]

THAT'S JUST, YOU KNOW, AN AREA THAT WE CAN ADDRESS FOR THE NEXT BUDGET WORKSHOP.

OTHER THAN THAT I'LL, I'LL BE BRUTALLY HONEST.

I'M NOT FOR BREAKING THE CAP. I'M ACTUALLY. I'M CONTENT WITH THE 6.3658 MILLAGE RATE.

BUT I DO HAVE TWO QUESTIONS. ONE WHAT WAS THE ORIGINAL ESTIMATE OF BUILDING E, AND WHAT IS THE CURRENT BUDGET ESTIMATE FOR BUILDING E AT THIS TIME? AND IF AND IF YOU DON'T HAVE THE NUMBERS RIGHT NOW, IF I GET IN AN EMAIL, THAT'S FINE FOR ME AS WELL. YEAH. WE DID A BUNCH OF WORK ON THAT THIS AFTERNOON.

COUNCILMAN JOHNSON, I'LL DEFINITELY EMAIL YOU. WE HAVE WE HAVE THOSE FIGURES. OKAY.

THAT WORKS. THAT WORKS. THE SECOND QUESTION. WE SEE, YOU KNOW, GOVERNOR DESANTIS IS SPEAKING ON THE PROPERTY TAX LEGISLATION, AND A LOT OF KEY STATE LEGISLATORS ARE SPEAKING ON IT AS WELL.

HAVE WE BEEN IN COMMUNICATION WITH OUR LOBBYISTS OR ANYBODY AT THE STATE LEVEL ON, YOU KNOW, POTENTIALLY HOW IT CAN AFFECT US OR HOW WE CAN TRY TO GET THE LANGUAGE THAT THEY'RE PROPOSING AMENDED SO IT CAN BENEFIT US AND NOT JUST BE, YOU KNOW, A BLANKET BILL LIKE WE'VE SEEN THROUGHOUT THE YEARS OF FLORIDA STATE LEGISLATION.

SO THAT WAY OUR CITY IS PROTECTED, OUR RESIDENTS ARE PROTECTED, ALL STAKEHOLDERS ARE PROTECTED.

SO HAVE WE STARTED THOSE CONVERSATIONS AS WELL? SO WE ARE HAVING THOSE CONVERSATIONS. I KNOW WHAT I SAW THIS LAST WEEK WAS HE ESSENTIALLY NIXED OR VETOED, I DON'T KNOW THE PROPER TERM OF ART, BUT THERE WAS GOING TO BE A COMMISSION AND A PROPOSAL TO STUDY THE IMPACTS, AND HE FORWENT THAT. AND SO THAT'S MOVING RELATIVELY QUICKLY.

WE'RE TRYING TO MONITOR HOW QUICK HE'S MOVING AND WHAT THOSE DIRECTIVES ARE.

I DO NOT HAVE ADDITIONAL INFORMATION OR ADDITIONAL INFORMATION ON IMPACTS.

AGAIN, NOW THAT THAT STUDY OR THAT COMMITTEE HAS BEEN DISBANDED OR DONE AWAY WITH TO, YOU KNOW, TO, TO STUDY AND ASSESS, BUT YES, WE ARE TRACKING IT AND I DON'T HAVE ANY INFORMATION GERMANE TO THAT ISSUE AT THIS POINT.

OKAY. I'M GOOD, MR. MORTON. I'M GOOD. MAYOR. THANK YOU SIR.

OKAY. THANK YOU. MR. MORTON, YOU STARTED OUT THIS THIS WORKSHOP WITH A COMMENT BASED ON AN EXAMPLE OF A PUBLIC WORKS ITEM THAT WE HADN'T PURCHASED, AND IT'S COSTING SO MUCH MORE.

I DIDN'T GET THOSE DETAILS. BUT I WANTED YOU TO COVER THAT.

YES, I'M GOING TO SPEAK IN ROUND TERMS. AND, CHRISTINE, IF YOU IF YOU REMEMBER THE EXACT.

I'LL GO AND IF I'M OFF. BUT I REMEMBER DURING THE PRESENTATION WHEN PUBLIC WORKS DID THEIR FLEET REQUEST, THERE WAS A TRACTOR. I DON'T KNOW IF YOU HAVE THE NUMBER OF THE ITEM. AND I THINK IT WAS ROUGHLY A PURCHASE PRICE OF $47,000 WHEN THIS TRACTOR WAS PURCHASED.

IT'S NOW MANY, MANY YEARS OLD. AND THE MAINTENANCE NUMBER WE SAW IS FOR THE LIFESPAN BECAUSE IT KEEPS GETTING BAD.

DATED ALONG, WE WERE $147,000 ROUGHLY INTO MAINTENANCE OF THAT OF THAT ITEM BECAUSE IT'S EXCEEDED ITS SCHEDULED REPLACEMENT TIME.

SO WE'VE PAID THREE TIMES THE AMOUNT JUST TO KEEP IT IN OPERATION.

CORRECT. AND WHAT OTHER EXAMPLES, IF ANY, DO YOU HAVE REGARDING OUR INFRASTRUCTURE, MEANING OTHER OPERATING NECESSITIES? SO I WAS USING THAT AS AN ILLUSTRATIVE, ILLUSTRATIVE EXAMPLE, WHICH IS ALSO WHY I PULLED OUT OUR FLEET, OUR ADVANCED FAILURE RATE CALCULATION. AGAIN, MORE THAN HALF OF OUR ROUGHLY MORE THAN HALF OF OUR SQUARE FOOTAGE.

IS THAT WHAT WE WOULD TERM AN ADVANCED FAILURE RATE OF 25 YEARS OF AGE OF OLDER? SO IT'S, YOU KNOW, DEFERRED CAPITAL MAINTENANCE, IT'S LEAKS.

IT'S, YOU KNOW, DOORS THAT ARE FALLING APART AT 20 ROWS.

I'VE BEEN ASKED BY THE SUPERVISOR OF ELECTIONS TO REPLACE IT'S, YOU KNOW, IT'S JUST IT'S THOSE SYSTEMIC, SYSTEMIC PROBLEMS THAT DON'T IMPROVE. THEY CAN BE MANDATED AGAIN, WHICH CONTINUALLY.

IT'S THE OLD ADAGE, MY GRANDMA USED TO SAY, A STITCH IN TIME SAVES NINE.

YOU KNOW, WE'RE NOT DOING THAT STITCH. AND SO THEN WHEN WE GET BACK, RATHER THAN AN R&R OR MAINTENANCE.

THINGS ARE BEING MAINTAINED PAST. PAST WHAT? THEY SHOULD BE MAINTAINED. IT'S, YOU KNOW, LET'S TALK ABOUT A 25 YEAR OLD FIRE ENGINE.

I DON'T KNOW OF ANY 25 YEAR OLD CARS THAT ARE ON THE ROAD. PEOPLE GET RID OF THEM FOR A REASON AFTER FIVE OR 8 OR 9 YEARS. THEY GET RID OF THEIR PERSONAL VEHICLES. WE HAVE FLEET VEHICLES THAT ARE 20 YEARS OLD. AND THE REASON IS BECAUSE THEY'RE UNRELIABLE THE MAINTENANCE, THE SAFETY, THE COMPLIANCE. SO WE JUST HAVE WE HAVE 100, YOU KNOW, MILLION DOLLARS OF THOSE EXAMPLES ACROSS THE CITY AT THE MOMENT OF MAINTENANCE.

WE KEEP TRYING TO KICK DOWN THE ROAD. IT'S NOT GOING TO DISAPPEAR AND IT'S NOT GOING TO GO AWAY.

AND SO WHAT WE'RE TRYING TO DO, AND WE HAVE A THIRD PRESENTATION TONIGHT WE'RE LOOKING AT EVERY AVAILABLE EXHAUSTIVE OPTION.

BUT THERE'S NOT ENOUGH SAVINGS THAT WE COULD CUT AND THERE'S NOT ENOUGH, YOU KNOW, NEW REVENUE IN TERMS OF, YOU KNOW, PART OF THIS COUNCIL'S MISSION. AND I'VE HEARD THIS GREAT TERM THROWN OUT OF AN EXUBERANT TAX BASE.

THAT'S A THAT'S A GREAT GOAL, DEVELOPING THE COMPOUND TO START TO SHIFT THE BURDEN OF TAXES OFF OF OUR RESIDENTIAL TAX BASE TO MORE INDUSTRY,

[01:30:08]

IN FACT, AS YOU KNOW, WE'VE KICKED OFF THE COMPOUND STRATEGY WITH SIGNIFICANT INVESTMENT OF TIME. WE ALSO HAVE A PROPOSAL ON THIS BUDGET OF SOME RESOURCES TO MAKE THAT A REALITY.

AND THOSE STRATEGIES ARE GOING TO TAKE TIME AND EFFORT TO CONTINUE TO MATERIALIZE.

AND THE UNFORTUNATE REALITY IS THAT AT THIS PARTICULAR MOMENT IN TIME, AS WE SAW 46%, I BELIEVE IT WAS OF OUR REVENUE IS BASED OFF OF OUR PROPERTY TAXES.

AND THOSE AREN'T JUST, YOU KNOW, WE KEEP SHOWING THE RESIDENTIAL EXAMPLES OR PROPERTY TAXES WHOLESALE ACROSS THE CITY, WHETHER IT'S RESIDENTIAL, COMMERCIAL, INDUSTRIAL, IT IS THE AD VALOREM THAT IMPACTS EVERY SINGLE PARCEL IN THE CITY OF PALM BAY.

THANK YOU. YOU KNOW, I WANT TO GO TO SLIDE 31, MISS ANGELICA.

AND AND I JUST IF WE COULD JUST SHOW THAT SLIDE 31.

AND I REMEMBER SPECIFICALLY OF YOUR DETAILED EXPLANATION THAT WE'RE WE'RE GOING TO EXCEED THE ROLLBACK RATE AND, AND REPEATEDLY. AND THERE WAS ONE YEAR AND AND KEEP THIS IN MIND, JUST A FEW SHORT YEARS AGO, WE WERE AT EIGHT AND A HALF AN AD VALOREM OF 8.5%.

AND NOW WE'RE TALKING ABOUT SIX POINT TRYING TO MAINTAIN THAT 6.739.

BUT I WANT TO GO BACK TO WHEN WAS IT 2022? I RECALL WE WERE AT IF YOU SEE THAT 7.595 AND IN ORDER TO MAINTAIN THAT 7.595, WE WERE ABLE TO ACHIEVE A GREAT DEAL OF CATCH UP FROM THE PREVIOUS BUDGET CYCLE IN AND REPLACING POLICE VEHICLES IN IN AND ENHANCING OUR PUBLIC SAFETY. AND I WANT COUNCIL TO TAKE A VISUAL OF THAT.

BECAUSE THERE'S AS WE CONTINUE TO DECREASE THE SERVICES THAT ARE NEEDED TO MAINTAIN BECAUSE AS MISTER MORTON SO ELOQUENTLY PUT IT, WE'RE NOT AT THAT COMMERCIAL AND INDUSTRIAL RATE YET.

WE'RE ONLY 65 YEARS OLD. AND I SEE THAT THIS THE 3% CAP HAS REALLY WORKED AGAINST US IN A SENSE, AND WHICH IS WHEN THE LAST CHARTER REVIEW COMMISSION THEY PROPOSED AT THE LAST SECOND, WHICH DIDN'T HAVE ENOUGH, WAS CAN THEY INCREASE THE 3% CAP WITH A MAXIMUM OF NOT TO EXCEED 5%? SOMETHING LIKE THAT WOULD HAVE REALLY HELPED OUT OUR CITY MAINTAINING THE SERVICES.

SO I WANTED TO HIGHLIGHT THAT 7.595 AND I KNOW MY COLLEAGUE MR. JOHNSON IS IS LISTENING BECAUSE IT WAS THAT PUBLIC SAFETY CONNOTATION.

AND I THINK WE'RE, WE'RE AT THAT POINT AGAIN WITH WHAT WE NEED FOR OUR FIRE STATIONS.

OUR, OUR RESPONSE TIMES ARE STILL CHALLENGING.

WHAT OUR INCREASING POLICE DEPARTMENTS NEEDS ARE IN ORDER TO PROTECT THEIR SAFETY, IS PROVIDING THEM THE BEST EQUIPMENT. AND SO THESE ARE THESE ARE REAL LIFE CHALLENGES AND AND IN SETTING.

AND I KNOW WE'RE JUST DISCUSSING THIS, BUT THOSE ARE MY STATEMENTS TODAY.

THE 6.7339 OR 6.739 THAT WOULD BE MAINTAINING LAST YEAR'S TAX RATE AND IT IS NEEDED TO MAINTAIN THE SAFETY OF OUR PUBLIC.

SO I WOULD SUGGEST WE WE ESTABLISH THAT I KNOW THAT WE'RE NOT VOTING ON IT TODAY.

AND I KNOW WHAT IT WOULD TAKE FOR THAT TO BE IMPLEMENTED.

BUT WHAT I SEE IS THE SAFETY OF OUR COMMUNITY IS PARAMOUNT.

AND IN THAT, THOSE WILL BE MY COMMENTS. WE DO HAVE FOLKS FROM THE PUBLIC, AND I WANT TO GIVE THEM AN OPPORTUNITY TO COME FORWARD AND SPEAK.

SO IS THERE ANYONE IN THE AUDIENCE WISH TO SPEAK AT THIS TIME? PLEASE STEP FORWARD, MASTER CHIEF.

BILL BRATTON 586 OCEAN SPRAY STREET, SOUTHWEST.

I'VE GOT TWO QUESTIONS AND ONE STATEMENT. I GUESS THE FIRST ONE IS THE UTILITY DEPARTMENT.

[01:35:01]

BUT I NOTICED GOING THROUGH THE SLIDE THAT THEY WERE STILL REQUESTING FROM THE GENERAL FUND ROUGHLY $18 MILLION.

AND I WAS JUST CURIOUS AS TO WHY WE'RE DRAWN FROM THE GENERAL FUND, FROM THE UTILITIES DEPARTMENT.

YEAH. I DON'T WANT TO BE MEAN TO ANYBODY, BUT THAT'S THE WAY I AM.

THEY'RE GETTING FUNDS TO USE THEIR FUNDS, NOT MY GENERAL FUND.

THE NEXT ONE IS, I WOULD RECOMMEND TO COUNSEL THAT YOU GO AHEAD AND SET YOUR RATE HIGH, BECAUSE WE DON'T WANT TO CUT OUR OWN THROAT AND SET IT LOW TO MAKE EVERYBODY FEEL GOOD IN THE BEGINNING. YOU CAN MAKE EVERYBODY FEEL GOOD WHEN IT COMES TIME FOR THE VOTE AND BE AT THE LOWER LEVEL.

WE DON'T WANT TO CUT OUR THROAT AND THE LAST ONE IS A REQUEST.

WHEN I WAS GOING THROUGH THE AGENDA PACKET, NONE OF THESE SLIDES WERE IN THE AGENDA PACKET.

AND I'D LIKE TO REVIEW STUFF BEFORE I HAVE TO COME TO THE COUNCIL.

SO THAT WOULD HAVE BEEN AVAILABLE. IT WOULD HAVE BEEN BENEFICIAL TO ME, BUT I DID GET A LOT OUT OF THIS MEETING, AND I'M GLAD WE DROPPED DOWN TO TWO. TWO MONTHS WORTH OF OPERATING FUNDS INSTEAD OF FOUR BECAUSE I SAW WHAT IT WAS GOING TO HAPPEN.

YES, SIR. THAT'S IT. THANK YOU VERY MUCH. THANK YOU.

STEP FORWARD. MR. MOORE, WOULD YOU PLEASE RESPOND? YES. I THINK THERE'S ONE QUESTION TO RESPOND TO.

YES. AND I THINK IT WILL PULL UP THE SLIDE THAT MR. BARTON'S REFERRING TO. AND WHAT THAT ACTUALLY IS, IS THAT'S THE UTILITY TAXES.

SO THAT'S THE SERVICE CHARGE ON THE UTILITY BILL.

SO THAT TAX RATE IS COUNTED AS A GENERAL FUND REVENUE.

SO THE THE ESSENCE THE UTILITY TAX, GIVE IT LIKE A SALES TAX ON THE UTILITY COMES BACK TO THE GENERAL FUND.

THANK YOU. AND THAT'S VERY IN FACT I'M NOT AWARE THERE MIGHT BE ONE.

I'M NOT AWARE OF AN EXAMPLE WHERE THAT DOESN'T OCCUR.

THAT'S VERY COMMON OCCURRENCE JUST FOR FROM FROM EXPERIENCE.

YES. SO SO JUST TO FOLLOW UP ON THAT, IT'S ACTUALLY NOT THE GENERAL FUND PAYING THAT OUT.

IT'S ACTUALLY A REVENUE FOR THE GENERAL FUND THAT'S COMING IN.

SO THERE'S NOTHING GOING UP TO THE UTILITIES, NOTHING GOING OUT.

OKAY. THANK YOU. ANYONE ELSE IN THE AUDIENCE WISH TO SPEAK? OKAY, COUNSEL. IT'S IT'S ON US. WHAT WHAT IS YOUR PLEASURE? I'D LIKE TO MAINTAIN CURRENT. I'M. I'M IN AGREEMENT WITH YOU, DEPUTY MAYOR.

YEAH, I'M IN AGREEMENT WITH YOU GUYS. I AM TOO.

WHEN I'M IN THE COMMUNITY, EVERYBODY'S SAYING I NEED. I NEED MORE OF THIS AND MORE OF THAT. I DON'T HEAR ANYBODY SAYING WE NEED LESS OF IT, SO.

ALL RIGHT, SO I'M GOING TO BE IN AGREEMENT WITH.

DO YOU HAVE DO YOU HAVE ENOUGH COUNCILMAN JOHNSON? COUNCILMAN JOHNSON. IS COUNCILMAN JOHNSON ON THE LINE? COUNCILMAN JOHNSON. OH.

NO OTHER COMMENTS? HE HAS NO COMMENT. SAY AGAIN.

HE HAS NO COMMENTS. OKAY, SIR. WERE YOU RINGING IN? YEAH. I'M GOOD. YEAH. OKAY. OKAY. ALL RIGHT. COPY THAT.

ALL RIGHT. SO NO OTHER ADDITIONAL COMMENTS? ANYTHING YOU WANTED TO CONCLUDE WITH, MR. MORTON? SO WE'VE GOT TWO. WE'VE GOT TWO. TWO THINGS.

WE'VE GOT A01 ON THOSE PUBLIC HEARING DATES AND GET THOSE NAILED DOWN.

AND THEN STAFF WAS NOT DONE WITH THE PRESENTATION.

WE HAVE A FOLLOW UP TO THE LIST OF QUESTIONS WE RECEIVED FROM COUNCIL.

AND WE DID WANT TO SHARE THAT INFORMATION AS TONIGHT AS WELL.

THANK YOU SIR. YES. SO I JUST HAVE. SO DO YOU NEED A MOTION FOR THOSE DATES.

NO. SO NOT NOT TONIGHT. SO WHAT I WILL DO IS I WILL PREPARE YOUR OFFICIAL LEGISLATIVE MEMO THAT YOU'LL SEE AT NEXT WEEK'S REGULAR COUNCIL MEETING.

TO DO THAT OFFICIAL APPROVAL. WITH THAT, I WILL BE ABLE TO OFFICIALLY FILE THE PROPOSED TAX RATE WITH THE WITH THE PROPERTY APPRAISER.

SO THAT'S WHAT WILL GO INTO THE TAX BILL. I WOULD LIKE TO ZERO BACK TO THE THREE DATES THAT I DO NEED A CONFIRMATION ON.

SO I WANT TO KIND OF ZERO IN ON THE 2ND SEPTEMBER PUBLIC HEARINGS.

ARE WE OKAY WITH HAVING THEM ON THOSE DATES? YEAH.

THEY'RE WEDNESDAYS. YOU SAID THEY ARE WEDNESDAYS.

I KNOW I, I TRY TO TAKE EVERYONE'S SCHEDULE INTO CONSIDERATION, BUT IT IS EXTREMELY DIFFICULT JUST BECAUSE THERE'S STATE LAWS THAT DON'T ALLOW US TO HAVE THEM ON AT CERTAIN TIMES, ON CERTAIN DAYS. SO THOSE DATES, USUALLY IT'S THE TIMES FOR THE CITY AND PALM BAY AND MOST TAXING AUTHORITIES WILL HAVE THEM ON WEDNESDAYS. WELL, THE MAYOR WILL BE HERE.

COUNCIL. I'LL BE HERE. OKAY. SO I'LL GO AHEAD AND PUT THOSE IN INTO YOUR MEMO NEXT WEEK AS WELL.

AND THEN WE JUST WANT TO KNOW IF WE DO WANT TO HAVE A SECOND WORKSHOP SO WE CAN PREPARE FOR THAT.

[01:40:03]

SO ONE THING THAT WE WOULD LIKE TO DO IS OFFICIALLY COMPLETE A PROPOSED BUDGET BASED ON THAT TAX RATE.

AND LOOK AT ALL OF THE THINGS THAT WE WANT TO LOOK AT, ALL THE HIGH PRIORITY REQUESTS.

AND THEN AT THE NEXT WORKSHOP ON AUGUST 5TH WE CAN ACTUALLY OFFICIALLY PROVIDE YOU WITH A PRESENTATION ON THE PROPOSED BUDGET AND EVERYTHING THAT'S FUNDED. AND WE CAN SORT OF GO INTO THAT NEXT PHASE BEFORE WE OFFICIALLY ADOPT THE BUDGET.

SO WE'VE GOT JULY 31ST COMING UP. SO THAT'S WHEN WE WILL PROVIDE YOU WITH HOPEFULLY WE'LL MEET THAT DEADLINE OF PROVIDE YOU WITH THE ACTUAL PROPOSED BUDGET. SO WE'LL PUBLISH IT ON THE WEBSITE. WE'LL SEND YOU THE LINK, WE'LL PROVIDE YOU WITH A LIST OF OUT OF THAT, HUNDREDS OF MILLIONS OF WHAT IS BEING REQUESTED, WHAT WE'RE ACTUALLY FUNDING INTO THE BUDGET.

SO BY JULY 31ST, WE WILL OFFICIALLY PROVIDE YOU WITH WHAT WE'RE PROPOSING FOR NEXT YEAR BASED ON THE RATES.

THAT WILL INCLUDE ALL THE ENTERPRISE FUNDS, GENERAL FUND.

IT'S YOUR FULL PACKAGE CITYWIDE. SO YOU HAVE MAYBE ABOUT A WEEK TO DIGEST IT.

AND THEN AUGUST 5TH, WE CAN DO THE ACTUAL WORKSHOP AND DO IT IN THE SAME FORMAT AND SIMPLY PROVIDE YOU IN THIS TYPE OF SETTING, THE PROPOSED BUDGET. AND THEN WE CAN HAVE FURTHER DISCUSSIONS AT THAT TIME.

BUT WE SORT OF WE WOULD LIKE TO PUT A BOW ON IT AND MOVE INTO THAT ADOPTION PHASE AT THAT POINT.

SO IT'S OPTIONAL IF YOU'D LIKE TO HAVE THE WORKSHOP.

OKAY. THANK YOU. SO WE YOU DON'T NEED THAT IN A MOTION US JUST SAYING YAY WE'RE GOOD TO GO OKAY.

WE'RE GOOD TO GO. GENTLEMEN. THUMBS UP. YES, MAYOR.

OKAY. SO WE'LL GO AHEAD AND GET THAT ON THE CALENDAR.

SO THEN I KNOW THAT YOU WANT TO GIVE SOME UPDATES, MR. MORTON? YES. THANK YOU. HONORABLE MAYOR, CITY COUNCIL.

WE'VE GOT A SORT OF A TWO PART PRESENTATION. YOU KNOW, WE DID GET A LIST OF EXHAUSTIVE QUESTIONS.

VERY GOOD QUESTIONS FROM COUNCIL IN RESPONSE TO BUDGET STRATEGIES.

BUDGET IDEAS. I THINK IT'S IMPORTANT THAT WE RESPOND.

WE'VE ONLY HAD 30 DAYS TO WORK ON THESE. SO FROM THE OUTSET, I'LL JUST SAY THAT WE TRIED TO PROVIDE THE BEST ROBUST INFORMATION.

WE HAD THE MOST COMPLETE ANSWERS, ISSUES WE COULD ON ONES THAT WE'RE STILL UNSURE ABOUT.

WE'LL PROVIDE YOU WITH THE ANSWERS THAT WE HAVE AND IDEAS AND STRATEGIES WE'RE WORKING TO MOVE FORWARD.

AND THERE'S SOME THAT WE JUST SIMPLY DON'T KNOW YET WITHIN THE 30 DAY WINDOW.

BUT WE DIDN'T WANT TO LEAVE THESE QUESTIONS UNANSWERED BEFORE DELIVERING YOU A BUDGET SINCE THEY WERE ASKED BY THE COUNCIL. SO WITH THAT, WE'RE GOING TO START WITH OUR FINANCE DIRECTOR, LARRY WOJCIECHOWSKI, TO GO AHEAD AND START THE PRESENTATION.

THANK YOU SIR. THANK YOU. WELCOME, LARRY. AND WOULD YOU REPEAT HIS LAST NAME, SIR? WHAT WAS YOUR HOUSE KEY? OUTSTANDING JOB. I'VE ALWAYS HAD A PROBLEM WITH THAT.

CARRY ON. WELL, GOOD EVENING, MAYOR AND COUNCIL.

WELL, WE'RE GOING TO TRY AND DO AS MR. MORTON JUST EXPLAINED.

WE'RE GOING TO GO THROUGH AND TRYING TO ANSWER THE MAJORITY OF YOUR QUESTIONS THAT HAVE BEEN ASKED OVER THE LAST 60 DAYS.

AS HE MADE COMMENTS, WE HAD 30 DAYS TO WORK ON IT, BUT I THINK WE DID A PRETTY GOOD JOB OF ASSEMBLING AS MUCH INFORMATION AS WE POSSIBLY COULD. FOR YOU TONIGHT ARE THE AREAS THAT WE'RE GOING TO DISCUSS TONIGHT ARE, FIRST OF ALL, A FINANCE. AND IT'S JUST GENERAL, GENERAL INFORMATION.

WE'RE GOING TO TALK ABOUT HOW WE INVEST OUR FUNDS BECAUSE QUESTIONS CAME UP ABOUT THAT DEBT BECAUSE WE TALKED ABOUT DEBT CAPACITY AND DIFFERENT ITEMS LIKE THAT.

AND WE'RE ALSO GOING TO TALK ABOUT IMPACT FEES.

WE'RE GOING TO MOVE ON AND WE'RE GOING TO TALK ABOUT FIRE FLEET AND A STRATEGY TO BUILD OUT THE FIRE STATION PARKS AND FACILITIES, TALK ABOUT BUILDING E AND OTHER ITEMS, DIFFERENT PARKS THE VSO, THE VETERAN SERVICE OFFICER, WE'RE GOING TO DISCUSS INTERDEPARTMENTAL COST ALLOCATION BECAUSE THE DISCUSSION ABOUT HOW MONEY MOVES AROUND WITHIN THE CITY.

AND THEN THERE'S A LITANY OF OTHER ITEMS THAT I HAVE LISTED.

AND THEN AFTER I'M FINISHED, SHAUN SPILLERS IS GOING TO ACTUALLY TALK ABOUT LEASES VERSUS PURCHASE.

OKAY. LET'S SEE HOW THIS WORKS. OKAY. ONE QUESTION THAT CAME UP WAS THE HALF CENT SALES SURTAX THAT BREVARD COUNTY HAS.

A QUESTION IS DO WE HAVE THE ABILITY TO TAP INTO THAT? WELL, WE DID SOME RESEARCH AND THERE'S ACTUALLY TWO DIFFERENT TAXES THAT BREVARD COUNTY HAS.

THE FIRST ONE IS THE VOTER APPROVED. THAT IS FOR THE PUBLIC SCHOOLS.

THAT OF COURSE CAN ONLY GO TO SCHOOLS. AND THAT ONE ACTUALLY EXPIRES IN DECEMBER OF 26.

THAT'S FOR THEIR CAPITAL NEEDS. THE NEXT ONE THAT WE HAVE IS THE ONE FOR THE INDIAN RIVER, INDIAN RIVER LAGOON, THE SORREL TAX. AND THAT ONE AGAIN ALSO ENDS IN DECEMBER 26TH.

AND AGAIN, THAT IS ONE THAT THE FUNDS CAN'T COME TO US.

IT GOES TO BREVARD COUNTY AND IT'S VOTER APPROVED.

WE DO HAVE A HALF CENT SALES TAX THAT WAS ACTUALLY DISCUSSED EARLIER.

[01:45:01]

IT COMES TO US AND IT'S PART OF THE GENERAL FUND CITY INVESTMENTS.

I PART OF YOUR PACKAGE I HAVE ISSUED, I GAVE TO YOU.

WE OPERATE OFF OF AN INVESTMENT POLICY HERE IN THE CITY OF PALM BAY.

IT DICTATES TO US HOW WE CAN INVEST THE FUNDS WHERE WE CAN INVEST THE FUNDS, PERCENTAGE WISE, VERY DETAILED. WE ALSO HAVE A PFM IS A ORGANIZATION THAT HELPS US INVEST THE FUNDS.

THAT'S WHO WE UTILIZE FOR FOR TO INVEST OUR FUNDS.

ANOTHER THING THAT'S PART OF THAT PACKAGE THAT YOU RECEIVED IS ON A QUARTERLY BASIS, WE ACTUALLY RECEIVED FROM PFM EVERYTHING THAT THEY INVEST FOR US.

IT ACTUALLY BREAKS IT DOWN BY THE SHARES WHEN WE PURCHASED IT, THE INTEREST THAT WE RECEIVE.

AND RUTH CHAPMAN, ASSISTANT DIRECTOR, ACTUALLY SITS OUT ON A MONTHLY BASIS AND ACTUALLY BALANCES IT TO WHAT WE RECEIVE FROM PFM TO ENSURE THAT THE FUNDS ARE GOING INTO THE RIGHT PLACE, THAT WE'RE NOT BREAKING OUR OWN POLICIES BECAUSE WE HAVE ASSIGNED PERCENTAGES THAT WE CAN ONLY INVEST THERE. YES, SIR. WHERE CAN THE PUBLIC SEE THIS? IT IS ACTUALLY ON OUR WEBSITE UNDER FINANCE OR UNDER THE BUDGET.

OKAY. I JUST WANT TO HIGHLIGHT THAT THAT THE PUBLIC CAN ACTUALLY SEE THIS.

YES. IN IN REAL TIME SIR. THE POLICIES OUT THERE.

BUT WE DO NOT PUT THE PFM REPORT OUT THERE, BUT WE CAN'T ACTUALLY START DOING THAT.

OKAY. YEAH. I THINK IT'S IMPORTANT TO. TO DISCLOSE THAT INFORMATION TO OUR OUR CITIZENRY.

I MEAN, IF WE CAN LEGALLY. ANYWAY, I THINK THIS IS GOOD, GOOD INTEL.

OKAY, KEVIN, WE WILL DO THAT. NOW WE'RE GOING TO GO INTO THE DEBT PORTION.

QUESTIONS CAME UP ABOUT OUR DEBT FOR THE CITY.

IT WAS DISCUSSED ON WHAT'S OUR RATING. WHAT'S OUR BOND RATING? WELL, WE WE HAVE TWO CURRENT BOND RATINGS THAT WE'VE RECEIVED.

IN FACT, WE JUST RECEIVED ONE FROM FITCH IN IN 2024.

AND AS YOU CAN SEE, WE'RE DOUBLE A. IT ACTUALLY WENT UP FROM WHAT IT WAS PREVIOUSLY.

AND IN FACT TODAY I JUST RECENTLY TODAY I SENT A AN ITEM TO FITCH.

AND THEY'RE GOING TO BE UPDATING OUR RATING NEXT MONTH.

SO I CAN LET YOU KNOW IF THAT CHANGES NEXT MONTH.

THE NEXT ONE THAT WE HAVE IS S&P GLOBAL. THAT ONE WAS DONE BACK IN JUNE OF 23.

AND AS YOU CAN SEE THAT'S DOUBLE A MINUS. AND AGAIN THAT WAS ACTUALLY UPGRADED FROM WHAT IT WAS BEFORE.

SO WE ARE GOING IN THE RIGHT DIRECTION AS FAR AS OUR BOND RATING IS CONCERNED.

THERE WAS A QUESTION ABOUT OUR BOND CAPACITY AND HOW AND HOW MUCH WE CAN BOND AND HOW DO WE DO IT.

BOND CAPACITY IS BASED OFF OF COVERAGE THAT'S DICTATED BY THE USER OF THE BONDS OR THE ISSUER OF THE BONDS.

EXCUSE ME. AND OUR REVENUE GROWTH, THE CITY'S CAPACITY RIGHT NOW IS ABSOLUTELY PHENOMENAL.

IT'S AT 3.0. IF WE ACTUALLY START.

BONDING AND WE BOND TOO MUCH, EVENTUALLY OUR COVERAGE IS GOING TO DROP DOWN TO WHAT IT'S CALLED 1.5.

AND ONCE WE GET THERE, OUR BOND RATING IS ACTUALLY GOING TO DROP.

NOW THE NEXT THING THAT'S GOING TO POP UP IS ACTUALLY A CHART THAT'S GOING TO SHOW IN THE CORNER THERE.

AS YOU CAN SEE, 2.0 IS THE RECOMMENDED COVERAGE BY OUR FINANCIAL ADVISORS.

YOU NEVER WANT TO DROP BELOW THAT. NOW IN THIS CHART IF YOU WOULD SEE IT SHOWS THREE DIFFERENT WAYS OF GROWTH.

REVENUE GROWTH. ONE OF THEM IS STAGNANT ZERO GROWTH.

THE OTHER ONE IS 1.5% AND THE OTHER THE NEXT ONE IS 3%.

WORST CASE SCENARIO OF COURSE IS 0% GROWTH. BUT WE DO HAVE BOND CAPACITY OR COVERAGE OF 2.0.

WE STILL HAVE THE CAPACITY TO GO OUT AND GET $66 MILLION IN BONDS.

HOWEVER, IN A GOOD SITUATION WHERE OUR REVENUE IS ACTUALLY INCREASING BY 3%, THAT INCREASES ALL THE WAY UP TO $90 MILLION THAT WE STILL HAVE CAPACITY TO GO GET BONDS. BOND REFINANCING.

THAT WAS ANOTHER QUESTION. CAN WE REFINANCE ANY BONDS? THE ONLY ONE THAT WE HAVE AVAILABLE RIGHT NOW THAT IS ACTUALLY GOING TO BE CALLABLE HERE IN OCTOBER OF 25.

AND I JUST RECENTLY SPOKE TO THE FINANCIAL ADVISORS, AND THEY DID A COMPARISON.

AND THERE WOULD BE NO BENEFIT AS OF RIGHT NOW TO REFINANCE.

ZERO BENEFIT BECAUSE YOU HAVE THE COST OF ISSUANCE AND EVERYTHING LIKE THAT.

SO THERE IS NO OPPORTUNITY RIGHT THERE. THE NEXT CALLABLE BOND THAT WE HAVE IS IN OCTOBER OF 27.

[01:50:07]

THERE IS A PART THAT IS ALWAYS ASKED ABOUT OUR DEBT SERVICE, OUR ANNUAL DEBT SERVICE, AND THIS IS A LIST OF ALL OF OUR GENERAL FUND DEBT THAT WE HAVE OUT THERE. AND THE IMPORTANT ONE THAT I ACTUALLY LIKE TO LOOK AT IS OFF TO THE FAR RIGHT HAND SIDE, WHERE IT'S THE FINAL PAYMENT, AND IT SHOWS THE FINAL PAYMENT AND WHEN IT'S ALL DUE, THE NEXT SLIDE THAT WE'RE GOING TO SHOW IS BEFORE WE GO. CAN WE BACK UP? IT'S JUST IT'S JUST WORTH YOU KNOW, MENTIONING AGAIN I KNOW COUNCIL IS AWARE OF IT FOR THOSE LISTENING AND MAYBE THOSE HERE THAT YOU KNOW THE PHILOSOPHY OF BONDING BONDING IS NOT FINANCING.

BONDING IS DEBT. AND SO I JUST WANT TO BE REALLY CLEAR THAT WHEN WE LOOK AT OUR BONDING CAPACITY AND WE SAY, HEY, THERE'S AN OPPORTUNITY, IT'S DEBT. IT'S ACTUALLY DEBT SERVICE.

AND YOU CAN SEE THE IMPACT OF DEBT SERVICE WITH INTEREST PAYMENTS AND ALL THOSE THINGS.

SO I JUST WANT TO BE CLEAR ON THAT. YES, SIR.

THANK YOU. OKAY. THE NEXT SLIDE THAT I'M SHOWING HERE IS I WANTED TO START SHOWING THE INTEREST RATES AND EVERYTHING THAT WE ARE PAYING IN THE DIFFERENT CALL DATES THAT WE HAVE, AND THERE'S DIFFERENT CATEGORIES THAT ARE LISTED HERE.

THE FIRST THREE ARE LISTED ACTUALLY THE GO BONDS, WHICH IS THE PAVING DEBT.

AND THAT OF COURSE IS BEING PAID BY BY A DEDICATED MILLAGE, A VOTER APPROVED MILLAGE.

SO THAT'S. IT IS WHAT IT IS. UNFORTUNATELY, THE NEXT SET IS SPECIAL BOND OR SPECIAL BOND.

WE HAVE A COUPLE OF DIFFERENT CATEGORIES HERE, AND IF YOU WOULD LOOK UNDER WHAT THEY CALL A CALL DATE, YOU'RE GOING TO SEE A COUPLE OF ITEMS THAT ACTUALLY ARE CALLED MAKE HOLE CALL.

SO IF WE WANTED TO REFINANCE THOSE PARTICULAR BONDS, YOU ARE AUTOMATICALLY YOU HAVE TO PAY THE ENTIRE AMOUNT OF THE BOND.

SO THERE IS NO BENEFIT AT ALL TO REFINANCE THOSE BONDS.

OKAY. ONE MORE COMMENT. YES. AND WHEN YOU LOOK AT THE TOP HERE, YOU SEE GENERAL OBLIGATION BONDS AND OF YOUR BONDING THAT YOU PERFORM AS A MUNICIPALITY.

AND WHEN I SAY AS ANY MUNICIPALITY, YOUR GENERAL OBLIGATION OR BONDS ARE GENERALLY YOUR MOST TROUBLESOME BECAUSE THOSE ARE PAID BACK THROUGH GENERAL FUND REVENUES ONLY.

SO THERE ARE INSTANCES WHERE A UTILITY, WHICH IS AN ENTERPRISE FUND, MAY ASK YOU TO ISSUE A BOND THAT IS GENERALLY TIED TO A RATE.

SO YOU HAVE A REPAYMENT RATE AND REPAYMENT SCHEDULE ASSESSED OFF THE STRENGTH OF YOUR RATEPAYERS, AND RATES ARE ADJUSTED IN ACCORDANCE TO HANDLE THAT.

AND WHAT THAT ALLOWS YOU TO DO IS FRONT INFRASTRUCTURE.

RIGHT. WE NEVER BUILD A PLAN AND THEN SIT AND WAIT 10 OR 15 YEARS FOR CUSTOMERS BECAUSE THE PLANT WOULD FALL APART WITH NO USAGE.

SO SOMETIMES TIMING OF CONSTRUCTION OF UTILITY PLANS.

WE DO DISCUSS BONDING POTENTIAL, BUT YOUR GEO BONDS ARE THE ONES YOU GENERALLY WANT TO AVOID WHEN ALL POSSIBLE.

OKAY. THERE IS ONE ITEM ALSO ON HERE THAT I'D LIKE TO POINT OUT.

AND WITHIN THE SPECIAL OBLIGATION DEBT, IF YOU LOOK AT THE ONE THAT'S CALLED SERIES 2019, THAT ONE WAS IT WAS REFINANCED BACK IN 2019. AND ON THE FAR RIGHT HAND SIDE, I WANT TO POINT THIS OUT.

THEY REFINANCED THE 2013 BONDS AND THEY ACTUALLY HAD A SAVINGS.

WE SAVED $15.78 MILLION BY REFINANCING THEM. SO I JUST WANT TO POINT THAT OUT, THAT WE ARE CONSTANT WHEN WE HAVE THE OPPORTUNITY.

WE'RE LOOKING TO MAKE SURE THAT IF WE REFINANCE, THERE WAS THE SAVINGS.

THE NEXT SLIDE. AND AGAIN IT'S JUST A COUPLE MORE THAT ARE ON HERE.

THE THE ONES AT THE VERY BOTTOM WERE IT'S FRANCHISE FEE DEBTS.

I WANT TO POINT THOSE OUT BECAUSE THOSE ARE ACTUALLY GOING TO BE PAID OFF RELATIVELY SOON.

ONE OF THEM ACTUALLY GETS PAID OFF NEXT YEAR.

AND ALSO IN 31. IMPACT FEES. THIS IS THIS IS GOING TO BE A VERY INTERESTING CONVERSATION. WHAT I HAVE IS, OF COURSE, THE QUESTIONS CAME UP ABOUT IMPACT FEES AND WHAT WE HAVE AVAILABLE.

AND IF ANYTHING'S OBLIGATED TO PROJECTS ALREADY.

WHAT I WOULD LIKE TO POINT OUT IS THESE CHARTS ARE, OF COURSE, FOR ALL FOUR OF THE IMPACT FEES THAT WE COLLECT THE THE POLICE, PARKS, FIRE AND TRANSPORTATION. WHAT I DID IS I BROKE IT UP BY THE FOUR NEXUS.

IS THE FOUR ZIP CODES. THANK YOU. AND I WENT BACK OR WE WENT BACK ALL THE WAY TO 2017 TO SEE ALL OF THE IMPACT FEES THAT HAVE BEEN COLLECTED.

OKAY, THAT'S THE FIRST ROW. THAT'S THEIR IMPACT FEES COLLECTED.

THEN THE NEXT ONE WHERE IT SAYS TOTAL FUNDS REMAINING.

THIS IS INFORMATION THAT WE RECEIVE ON A MONTHLY BASIS TO SAY HOW MANY HOW MUCH FUNDS ARE LEFT WITHIN THAT PARTICULAR ZIP CODE.

THE OUR ORDINANCE STATES THAT WE HAVE TO SPEND OUR IMPACT FEES WITHIN SEVEN YEARS.

[01:55:09]

SO I LOOKED AT IT AND I SAID, OKAY, WHAT I NEED TO DO IS PULL OUT THE INTEREST THAT HAS BEEN EARNED BECAUSE INTEREST HAS NO BEARING ON THE SEVEN.

THE SEVEN YEAR RULE. SO I ENDED UP PULLING OUT ALL OF THE INTEREST THAT WE'VE EARNED OVER THAT PERIOD OF TIME AND CAME UP WITH A NEW NUMBER.

AND I ALSO SHOW ON HERE WHERE IT SAYS IMPACT FEES USED THROUGH.

IF YOU WOULD NOTICE, WE ARE THE ONLY ONE THAT WE HAVE TO SPEND MONEY ON WITHIN THE NEXT YEAR IS ACTUALLY OVER IN THE PARKS.

IMPACT FEES FOR 3909. WE NEED TO SPEND $150,000 THROUGH NEXT YEAR.

OTHERWISE WE MAY HAVE TO RETURN THE MONEY. SO I JUST WANT TO PUT THAT OUT THERE.

AND ONE OTHER THING IS THE QUESTION WAS WHAT HAS BEEN OBLIGATED OF THE OF THESE FUNDS.

CURRENTLY I AM ACTUALLY WORKING WITH PUBLIC WORKS.

IN FACT, WE'RE MEETING TOMORROW MORNING TO TRY AND GET A, A GRIP ON ALL OF THE OBLIGATIONS THAT WE HAVE OUT THERE.

WE HAVE DEVELOPER AGREEMENTS THAT ARE OUT THERE.

THAT MONEY COMES IN AND IT'S COMMITTED TO A CERTAIN PROJECT.

WE NEED TO MAKE SURE THAT WE ARE SETTING THAT MONEY ASIDE SPECIFICALLY FOR THOSE PROJECTS, SO IT DOESN'T GET DOUBLE ACCOUNTED FOR SOMEWHERE ELSE.

WE HAVE TO DEDICATE THE MONEY. SO I'LL BE MEETING WITH PUBLIC WORKS, AND WE'RE GOING TO BE WORKING ON THIS FOR THE NEXT.

HOWEVER LONG IT TAKES, AND WE CAN ALWAYS COME BACK AND GIVE YOU THAT INFORMATION WHEN WE HAVE IT.

THE OTHER ONES, THE POLICE, PARKS AND FIRE. THOSE ARE FAIRLY SIMPLE, BUT IT'S THE THE TIF, THE TRANSPORTATION WHEN. THAT'S QUITE DIFFICULT.

BUT WE WILL GET THAT INFORMATION AS SOON AS WE CAN TO YOU.

FIRE FLEET STRATEGY. WHAT WE'RE LOOKING AT AND WE'VE BEEN ASKED TO DO IS OF COURSE, WE SAW PREVIOUSLY THAT FIRE IS LOOKING FOR LADDER TRUCKS AND HEAVY RESCUE VEHICLES.

BUT WE WANTED TO DO IS WE ARE INVESTIGATING THE ABILITY TO FUND THESE BUILD OUTS OF THESE VEHICLES AND NOT HAVE TO GO OUT AND GET LOANS. SO WHAT WE'VE DONE IS WE ACTUALLY WE'RE TRYING TO ESTABLISH A 24 MONTH PERIOD IN A THREE PAYMENT PLAN.

AND WE ACTUALLY RECEIVED SOME INFORMATION FROM A COUPLE OF COMPANIES THAT THEY'RE WILLING TO DO THAT BECAUSE IT TAKES A GOOD, YOU KNOW, TWO YEARS TO BUILD THESE ITEMS OUT.

SO I WANT TO SHOW YOU, ACTUALLY. THE LADDER TRUCK IS ESTIMATED THAT COST RIGHT THERE IS $1.6 MILLION.

THE HEAVY RESCUE IS 1.79. AND, MR. MORTON, I KNOW YOU HAVE.

GO AHEAD. OH, THIS. THIS RIGHT HERE ACTUALLY COVERS THE AMOUNT OF THE EXTRA FUNDING THAT WE'RE ASKING FOR IN THE VILLAGE. THAT MONEY GETS. IF YOUR IDEA IS TO USE THAT FUNDING TO PAY FOR PUBLIC SAFETY.

THAT RIGHT THERE WILL PAY FOR IT. YOU'LL BE PAYING FOR TWO VEHICLES.

OKAY. BUT THAT IF THAT'S IF WE, YOU KNOW, PAY IT ALL STRAIGHT RIGHT UP FRONT.

HOWEVER, WE'RE LOOKING AT POSSIBLY DOING A THREE PAYMENT PLAN.

SO THIS IS JUST A A PLAN RIGHT HERE. IF EVERYTHING IS APPROVED AND WE MOVE FORWARD, WE WOULD TRY AND TIME THE FIRST PAYMENT IN NOVEMBER OF 25. IF EVERYTHING WOULD BE APPROVED AND YOU DECIDE TO DO THIS, THIS WOULD BE FOR THE LADDER TRUCK.

IT WOULD COST US $542,000 OR THE HEAVY RESCUE 598,000 PAYMENT TWO WOULD BE IN 16 OR EXCUSE ME IN 26. SAME PERIOD OF TIME, SAME DOLLAR AMOUNT AND PAYMENT THREE WOULD BE IN OCTOBER OF 27 AND IT WOULD JUST BE THE DIFFERENCE.

AND IN FACT, IF WE DO IT THIS WAY THERE'S THAT PAPERWORK THAT WE ACTUALLY HAVE ACTUALLY SHOWS THAT WE WOULD ACTUALLY RECEIVE A DISCOUNT IF WE PAID IT AT IN OCTOBER OF 27, BUT I DON'T BUILD THAT IN HERE BECAUSE EVERYTHING HERE OF COURSE IS ESTIMATES.

YEAH. THERE'S NO INTEREST OR FINANCE. THERE'S NO INTEREST FINANCE.

THERE'S JUST A STRATEGY WE'RE CONSIDERING. WE CALLED IT A THREE YEAR ROLL UP. WE ASKED I THINK COUNCIL I'D ALSO ASK BUT WE SAID, HEY, IF WE CONSOLIDATE THIS AND MAKE THREE PAYMENTS TIED TO OUR FISCAL YEARS, IT ACTUALLY TURNS OUT TO BE A 24, 25 MONTH SCHEDULE.

THE THE OBVIOUS RISK IS WE'RE OBLIGATING THE MONEY, RIGHT? WE'RE OBLIGATING THE MONEY IN YEAR OUT AS WELL. HAVE TO BE AWARE OF THAT, THAT, YOU KNOW, IN THE 26 BUDGET, WE'D HAVE TO ALLOCATE IN THE 27 BUDGET, WE'D HAVE TO ALLOCATE IN THE 27 BUDGET,

[02:00:01]

BUT THERE'S SEVERAL STRATEGIES TO TO ACCOMPLISH THAT.

AND AGAIN, THAT ALLOWS US TO SPREAD IT OUT OVER THREE FISCAL YEARS.

SO IT'S EASIER. THE PAYMENT PLAN IS BETTER IS A BETTER OPTION THAN A BANK OF A BANK LINE OF CREDIT OR BONDING.

I DID SOME RESEARCH ON THIS AND ACTUALLY BUILT IT OUT FOR A FIVE YEAR LOAN.

AND I UTILIZED, YOU KNOW, THE INTEREST RATES THAT WERE AVAILABLE TO ME.

AND IF WE ACTUALLY WENT OUT AND GOT A LOAN AND DID IT FOR FIVE YEARS, WE WOULD END UP PAYING $276,000 IN INTEREST FOR SOMETHING THAT WE CAN SPREAD OUT OVER A THREE YEAR PERIOD OURSELVES. AND WHAT I WANT TO SHOW HERE IS THAT $276,000 HAS POTENTIAL TO BE FOR PATROL VEHICLES. AND THE POINT OF THAT WAS JUST SHARING.

THAT'S THAT'S THE IMPORTANCE OF, YOU KNOW, HAVING THE REVENUES TO MAKE THOSE DECISIONS FOR THE CRITICAL NEEDS.

NOW, IS IT AS I MENTIONED, IT TRULY RESULTS IN A FUTURE COST SAVINGS TO THE TAXPAYERS.

IT FEELS LIKE PAIN, BUT IT'S CHEAPER AND IT IS MORE EFFECTIVE IN THE LONG RUN.

OKAY, NEXT PORTION IS WE'RE TRYING TO WORK OUT A FIRE STATION STRATEGY, AND WE ACTUALLY HAD A MEETING BACK IN JUNE TO DISCUSS WITH A WITH A VENDOR TO TRY AND DEVELOP A PUBLIC PRIVATE PARTNERSHIP.

I UNFORTUNATELY CAN'T SPEAK THAT MUCH TO A PUBLIC PRIVATE PARTNERSHIP.

IF YOU HAVE ANY DESIRE TO KNOW MORE ABOUT IT.

WOULD YOU HAVE ANY? NO. OKAY. SO THIS IS ONE OF THE ONES WE DIDN'T COMPLETELY ANSWER. WE HAD A MEETING WITH A PUBLIC PRIVATE PARTNERSHIP VENDOR. THEY'VE BUILT SEVERAL FIRE STATIONS IN THE STATE OF FLORIDA ON A LONG TERM LEASE TO OWN MODEL AND A LONG TERM LEASE MODEL.

OUR NEXT STEP IN THAT WE'VE SEEN DOCUMENTS. WE'VE SEEN A GREAT PRESENTATION. IT LOOKS VERY INTRIGUING.

IT LOOKS LIKE IT COULD BE A TREMENDOUS OPPORTUNITY. THEY CAN EVEN HANDLE BUILDING MAINTENANCE AND KNOW THROUGH THE LEASE.

WE'RE GOING TO GO CHECK OUT A COUPLE OF THEIR BUILDINGS. WE'VE TALKED TO THE CITIES WHO ARE SO FAR GIVEN A GOOD REPORT, AND IT WAS A GREAT STRATEGY FOR THEM IN LIEU OF LIKE A TEMPORARY OR SOMETHING, THEY'RE GETTING A FULL BUILDING AT A, AT A, AT A SPREAD COST DELTA.

SO THE NEXT THING WE WANT TO DO IS DIG INTO THE WEEDS WITH THEIR ENGINEERS, DESIGNERS, WITH THE FIRE DEPARTMENT.

AND WE'RE GOING TO DO SOME SITE VISITS TO SEE HOW THESE ARE ACTUALLY PANNING OUT AND WHAT THE USER EXPERIENCES IS.

WE'VE HEARD FROM THE VENDOR, WE'VE HEARD FROM, YOU KNOW, SOME CITY PEOPLE. WE WANT TO KNOW FROM THE USER PERSPECTIVE, FROM THE FIREMEN, FROM THE PUBLIC SAFETY FOLKS, HOW IS IT REALLY WORKING OUT AND WHAT'S THE BENEFIT? WHAT HAVE BEEN THE NEGATIVE. SO THIS IS ONE IS PLEASE STAY TUNED. WE'RE GOING TO CONTINUE TO TO WORK THROUGH IT. THANK YOU. OKAY. OF COURSE IF WE HAVE A FIRE STATION WE HAVE TO HAVE THE THE LAND TO PUT IT ON.

SO WE'RE ACTUALLY WORKING ON LAND ACQUISITION FOR THE SOUTHEAST FIRE STATION NINE.

WE HAVE AN RFP OUT RIGHT NOW TO TO BRING IN A REALTOR ON BOARD TO ASSIST US IN ACTUALLY THE ACQUISITION OF THE LAND.

AND WE HAVE ACTUALLY CURRENTLY THERE HAVE BEEN TWO PROPERTIES THAT HAVE BEEN LOOKED AT DOWN IN THE SOUTHEAST AREA FOR POSSIBLE ACQUISITION.

AND WE'RE GOING TO, OF COURSE, TRY AND USE THE REALTOR SERVICES TO ASSIST US IN THE LAND ACQUISITION.

FIRE IMPACT FEE STUDY. FIRE IMPACT FEE STUDY.

THERE WAS A STANTEC DID AN ANALYSIS TWO YEARS AGO PERTAINING TO IMPACT FEES.

AND THEY CREATED NEW IMPACT FEES. AND IT WAS BUILT ACCORDING TO THE STATE STATUTE BY HOW IT IT NEEDS TO GO OVER A FOUR YEAR PERIOD TO BE ABLE TO INCREASE YOUR IMPACT FEES. WHAT WE'RE ASKING TO POSSIBLY DO IS TO DO A A NEED STUDY TO SEE IF WE CAN ACTUALLY ADVANCE THAT IMPACT FEE TO MOVE IT TO CURRENT YEAR, INSTEAD OF WAITING FOR YEARS TO BUILD IT UP.

THE IMPACT RATES OR THE IMPACT WOULD ONLY IMPACT SINGLE AND FAMILY.

EXCUSE ME, MULTIFAMILY HOMES, ALL THE OTHER ONES THAT ARE OUT THERE.

IT WAS A ONE AND DONE. IT WAS DONE IN 2425 AND IT HASN'T INCREASED.

BUT THE OTHER TWO, THESE TWO ACTUALLY DO INCREASE.

AND FOR CLARITY, WHEN YOU SAY SINGLE THING MULTI-FAMILY, WE'RE TALKING ABOUT NEW CONSTRUCTION, NOT A FEE PASS TO EXISTING RESIDENTS. CORRECT.

YES. OKAY. WHAT I WANT TO SHOW HERE IS JUST WHAT WE'RE TALKING ABOUT.

YOU CAN SEE THAT THERE'S A FOUR YEAR STEP PROGRAM TO INCREASE THE IMPACT FEES FOR FIRE.

BUT WE'RE WE'RE WE WANT TO DO IS ACTUALLY BRING A VENDOR.

WE HAVE A VENDOR ON BOARD RIGHT NOW. BUT WE WANT TO UTILIZE THE FUNDING BECAUSE THEY GAVE US A TASK ORDER OF THAT DOLLAR AMOUNT, $15,000, TO ASSIST US WITH THE STUDY, TO SEE IF WE CAN ACTUALLY, AGAIN, MOVE THE IMPACT FEE COST TO CURRENT YEAR AND NOT WAIT THE FOUR YEARS TO GET TO THAT DOLLAR AMOUNT.

AND THAT'LL COME BEFORE COUNCIL FOR US TO VOTE ON.

[02:05:06]

OKAY. THEY'RE TELLING US IT CAN BE DONE, AND IT LOOKS LIKE WE WILL HAVE A JUSTIFICATION FOR THE EXTRAORDINARY NEED FOR FIRE CAPITAL TO PUT ON THE IMPACT FEE SCHEDULE.

THE COST OF THE SERVICE CONTRACT IS 15 SIX. THERE'S SOME STATUTORY TIMEFRAMES.

THEY WOULD THEY WOULD ASSESS THE STUDY. THEY WOULD CONDUCT THE STUDY. THEY WOULD WORK WITH STAFF TO MEET THE FLORIDA STATUTORY GUIDELINES ON THE TIMING OF THE STUDY AND THE PUBLIC HEARINGS THAT HAVE TO OCCUR IN NOTIFICATIONS. AND THEN IT LOOKS LIKE IF A FINAL DECISION IS NOT A FE TO COMPLETE, THAT, IT'S DONE. BUT WE'RE ASSUMING AGAIN FROM OUR CONVERSATIONS THAT IT LOOKS, YES, WE'RE GOING TO QUALIFY. THEN WE WOULD COME BACK WITH THE APPROPRIATE ORDINANCES AND, YOU KNOW, OR RESOLUTIONS TO ENACT IT. BUT WE'RE ASKING FOR IS DOES COUNCIL SUPPORT US MOVING OUT TO GET THE FINAL DISPOSITION ON EXPEDITING THIS IMPACT FEE ANALYSIS TO BRING BACK A PROPOSAL TO YOU? WELL, I'M A BIG THUMBS UP ON THIS ONE AND I'LL SHARE ALSO THAT WAS THERE.

I THINK THERE WAS SOME LEGISLATION THAT WOULD HAVE PREVENTED US FROM GOING IN THIS DIRECTION THIS PAST LEGISLATIVE SESSION.

AM I SAYING THAT CORRECTLY? CORRECT. THERE WAS THERE WAS A FLORIDA STATUTE THAT CAME OUT THAT MAY BAR FUTURE INVESTIGATION OF THIS BECAUSE OF THE DATE INITIALLY OF OUR IMPACT FEE STUDY IN THE FISCAL YEAR 2425, AND APPARENTLY THE STATUTORY DATES, WHICH I DON'T HAVE IN FRONT OF ME OF THE PENDING CHANGES, WE SHOULD BE ABLE TO.

LOOKS LIKE, ACCORDING TO THE CONSULTANT, WE SHOULD BE ABLE TO COMPLETE THIS IN TIME AND AVOID THAT PREEMPTION THAT IS COMING DOWN THE PIPELINE FROM THE STATE.

SO I'M A BIG THUMBS UP ON THIS GENTLEMAN. IN DOING THIS STUDY BEFORE THEY CLOSE THE CURTAIN, I HAD HALF A PAGE TO DISCUSS THIS, SO. THANK YOU.

OKAY. I'M OKAY. YOU. YES. YOUR YOUR BIG THUMBS UP.

HAS THE CITY ATTORNEY REVIEWED THAT PRELIMINARILY.

I SENT SOME DOCUMENTATION TO PATRICIA. I CAN'T RECALL THE LAST TIME WE CIRCLED BACK ON THE ASKING THE QUESTION.

SHE DID LOOK AT THE PROCESS, AND I AND I DON'T KNOW THAT WE GOT TO A FINAL ANSWER ON THAT PENDING OUR CONVERSATION WITH STANTEC, AND I DON'T KNOW. I DIDN'T ASK HER TO BE PREPARED TO WEIGH IN TONIGHT, SO I DON'T KNOW IF THAT WAS AN EXPECTATION. WE TALKED.

IT IS POSSIBLE IN THEORY, AT THAT POINT IN TIME, HE HADN'T TALKED TO THEM AS FAR AS THEIR TIMELINE.

THERE WAS SOME CONCERNS ABOUT WHETHER WE WOULD MEET THE TIMELINES. SO HE'S AWARE OF THE TIMELINES THAT THERE IS A CRUNCH.

WE HAVEN'T, YOU KNOW, TALKED MORE AS FAR AS PUTTING IT IN THAT TIMELINE.

BUT HE'S TALKED WITH THE CONSULTANT. IT IS POSSIBLE BUT IT IS TIGHT.

YEAH WE HAVE TO GET MOVING. SO IF WE AGREE TO PAY THE CONSULTANT THE 15 SIX AND THEY DON'T MEET THE DEADLINE, THEN WHAT? I MEAN, IT WOULD BE A PERFORMANCE IN THE CONTRACT THAT THEY MEET THE DEADLINE.

WE MEET THE DEADLINES BEFORE WE EXECUTE IT. FRANKLY, WHAT'S GOING TO HAPPEN IS IF WE GET CONSENSUS IS WE'RE GOING TO TRY TO WORK THAT OUT AND BRING SOMETHING BACK, HOPEFULLY TO THE NEXT MEETING. THEY'RE WORKING ON THAT, THE MEAT OF THE AGREEMENT.

AND IF IT SATISFIES YOU AND THE CITY ATTORNEY, WE CAN, YOU KNOW, TAKE ACTION.

IF NOT, WE'LL WE'LL SEE IF IF WE CAN STILL MEET IT.

IT IS TIGHT AND JUST LARGER DISCUSSION ON IMPACT FEES, LIKE WHERE ARE WE AT? I MEAN, CAN STANTEC EVALUATE THE NEXUS OR WHAT DOES THAT PROCESS LOOK LIKE TO MINIMIZE ZIP CODES TO QUADRANTS OR FROM GOING TO 4 TO 2 OR TO CITYWIDE? I DID NOT ASK THAT QUESTION YET. THAT'S AN EXCELLENT QUESTION. AND THAT'S BEEN A CONCERN. I DID NOT RAISE THAT.

I THINK THAT WILL BE A MUCH LARGER PROCESS, BUT I DEFINITELY CAN ASK THEM THAT QUESTION AND ASK US TO GIVE US A THOUGHT PROCESS OR A LETTER OR PROPOSAL ON WHAT THAT IF IT'S FEASIBLE AND WHAT IT COULD LOOK LIKE. BECAUSE I WILL SAY THAT PART OF THE NEXUS, THERE ARE MULTIPLE WAYS TO DO IT THAT WAY WAS HOW MANAGEMENT DECIDED TO DO IT. IT HAS TO BEAR A RELATIONSHIP.

YOU KNOW, YOU'RE NOT GOING TO BE ABLE TO TAKE, YOU KNOW, THE SOUTHWEST AND PUT IT WITH, YOU KNOW, SOMETHING NORTH. BUT AS FAR AS HOW YOU DIVIDE IT, AS LONG AS IT MAKES SENSE.

THE ZIP CODE IS WHAT MANAGEMENT CAME UP WITH.

BUT THERE ARE OTHER WAYS, YOU KNOW, IT COULD BE DIVIDED INTO QUADRANTS, BUT THERE ARE OTHER WAYS THAT WE CAN DO IT.

I MEAN, CERTAINLY A CONSULTING COULD HAPPEN. IT COULD MATTER. STAFF COULD COULD DO IT.

IT'S JUST A MATTER OF MAKING SURE THAT IT MAKES SENSE.

YOU'RE NOT GOING TO BE ABLE TO TAKE SOMETHING FROM ONE SIDE THAT'S COMPLETELY DIFFERENT, BECAUSE YOU ALWAYS WANT TO MAKE SURE THAT THE RATEPAYERS IN THAT AREA ARE GETTING THE BENEFIT. BUT THERE ARE OTHER WAYS THAT AREN'T JUST ZIP CODE.

IT JUST HAS TO TIE IN. I THINK IDENTIFICATION OF REGIONAL FACILITIES WOULD BE ANOTHER AVENUE TO DISCUSS, BECAUSE YOU CAN'T USE ALL THE ZIP CODES ON A REGIONAL, REGIONAL PARK OR ANOTHER REGIONAL, BUT THERE'S OTHER REGIONAL FACILITIES THAT WOULD QUALIFY, LIKE POLICE HEADQUARTERS OR THINGS OF THAT NATURE POTENTIALLY.

YES. YES. SO TO THAT ARGUMENT, THAT'S A BIGGER CONVERSATION, RIGHT?

[02:10:02]

RIGHT. WHAT WE'RE LOOKING AT IS TRYING TO MEET A DEADLINE, MAKING THAT PART OF THAT CONTRACT.

SO I WANTED TO GIVE COUNCILMAN JOHNSON AN OPPORTUNITY BECAUSE I'M NOT MAKING A VISUAL OF HIM TO SEE IF HE WANTED TO WEIGH IN ON THIS COUNCILMAN JOHNSON.

I'M GOOD WITH MOVING FORWARD, MA'AM. ALRIGHT.

THANK YOU. SO YOU GOT THUMBS UP ON THIS? WE'LL GET ON IT AND TRY TO DELIVER AND BRING SOMETHING BACK THAT WE CAN HOPEFULLY MEET THE TIMELINE.

I GUESS I MEAN, ONE OTHER QUESTION. LIKE, WHY JUST FIRE? WHY NOT? NO, I THINK IT'S THE ONLY ONE ELIGIBLE FOR ADJUSTMENT AT THIS POINT.

THE OTHER ONES ARE WE CAN'T DEMONSTRATE AN EXTRAORDINARILY EXTRAORDINARY CASE NEED.

AND POLICE, APPARENTLY IS APPROPRIATE BASED OFF THE DATA IN THE STUDY, THE ONLY ONE IN THAT STUDY DONE IN FISCAL YEAR 2425 THAT SHOWED A CAPITAL DELTA, TO THE EXTENT TO BE ABLE TO EVEN DEMONSTRATE EXTRAORDINARY NEED WAS FIRE.

SO DIDN'T QUALIFY. WELL, WE JUST INCREASED THOSE.

WELL, I UNDERSTAND THAT, BUT IT WASN'T DONE UNDER THIS PROGRAM.

IT WAS DONE 50% EVERY FOUR YEARS I BELIEVE. WE JUST INCREASED THEM BACK TO THAT.

GO BACK TO THE TABLE. THE QUANTITY, BUT NOT BASED ON THE EXTRAORDINARY NEEDS, JUST BASED ON THE 50% EVERY FOUR YEARS.

THE ONE THAT SHOWED THE FOUR CATEGORIES. PLEASE.

YEAH, SURE. I THINK THOSE WERE THE FOUR. AND THAT'S ANOTHER QUESTION.

IF WE JUST FIRE TRANSPORTATION. YEP. I'LL ASK THAT QUESTION AS WELL.

I DIDN'T I DIDN'T CONSIDER THAT. AND I WAS TOLD THAT IT WASN'T ELIGIBLE.

BUT I'M GOING TO VERIFY SINCE YOU BRING IT UP AGAIN AND JUST MAKE SURE I MEAN I'M I'M PRETTY I'M 99% SURE.

BUT LET ME JUST DOUBLE CHECK AND VERIFY. SO DON'T MISS ANOTHER OPPORTUNITY SINCE YOU BRING IT UP.

THANK YOU. SO YOU GOT THE THUMBS UP. DO YOU WANT TO.

AND SO TO HIS ARGUMENT. TRANSPORTATION. RIGHT.

SAY CAN WE AMEND. WE HAVE THUMBS UP ON TRANSPORTATION AND FIRE AND FIRE AND POLICE TO INVESTIGATE FIRE.

AND IF WE CAN POLICE. I'LL JUST ASK ALL FOUR.

THEN JUST CHECK AND VERIFY WHAT I'VE BEEN TOLD IS ACTUALLY ACCURATE.

OKAY. THUMBS UP ON EVERYONE. I DIDN'T SEE COUNCILMAN JOHNSON, BUT WE GOT FOUR.

THANK YOU. OH, HE SAID YES. HE DID SAY YES. HE'S GOOD TO GO.

HE'S GOOD WITH IT, AS HE WERE. THANK YOU. TERESA.

OKAY. THANKS FOR CLARIFYING THAT. COUNCILMAN JOHNSON SAID HE'S GOOD TO GO.

ALRIGHT. CARRY ON SIR. THAT'S FINE. OKAY. THE NEXT PART IS PARKS AND FACILITIES.

AND THE NEXT DISCUSSION IS ACTUALLY GOING TO BE ABOUT BUILDING E, THE THIRD FLOOR.

THE ACTUAL BUILD OUT ESTIMATES DESIGN $75,000.

THE ACTUAL BUILD OUT IS 1.2 MILLION. FURNITURE 225,000, FOR A TOTAL OF $1.5 MILLION.

AND AT THIS TIME, I'D LIKE TO TURN IT OVER TO JULIA FOR A DISCUSSION.

THANK YOU. AND IF IT'S ALL RIGHT WITH MR. MORTON, I JUST WANTED TO GO BACK TO DEPUTY MAYOR JAFFE'S QUESTION ABOUT THE FUNDING OF BUILDING E AND WHETHER THE ENTERPRISE FUNDS PAY THEIR PROPORTIONATE FAIR SHARE BUILDING.

E IT HAS NO GENERAL FUND DOLLARS IN IT AT ALL.

SO 50% OF THE BUILDING IS FUNDED BY ARPA FUNDS, AND 50% IS FUNDED BY BUILDING THE UTILITIES PORTION, WHICH IS 23% OF THE OVERALL BUILDING. UTILITIES WILL BE PAYING BACK THE BUILDING FUND FOR THAT PORTION.

SO ULTIMATELY, THE BUILDING WILL BE OWNED BY THE ENTERPRISE FUND AND THE GENERAL FUND IN PROPORTIONATE SHARES.

I JUST WANTED TO CLARIFY THAT AND ALSO TO COUNCILMAN JOHNSON'S ORIGINAL QUESTION ABOUT THE BUDGET.

SO THE CONTRACT WAS AWARDED IN DECEMBER OF 2023, AND THE CONSTRUCTION CONTRACT WAS $15,028,000. ROUGHLY, THE BUDGET AT THAT TIME WAS $16,519,379. IN FEBRUARY, WHEN I CAME AND I TALKED ABOUT THE ALLOCATION BETWEEN ARPA FUNDS AND BUILDING FUNDS AND HOW WAS ALL SHAKING OUT.

THE TOTAL BUDGET FOR BUILDING E NOW IS ESTIMATED AT $18.4 MILLION.

THAT INCLUDES CONSTRUCTION, DESIGN FFE IT AND ALL THE CONTINGENCY FUNDS FOR THE PROJECT.

SO THERE IS AN INCREASE OF $1.8 MILLION FROM OUR BUDGET WHEN WE AWARDED THE CONTRACT.

THAT INCREASES BEING ABSORBED ENTIRELY BY THE ENTERPRISE FUND.

BY THE BUILDING FUND. THE AMOUNT OF ARPA DOLLARS CONTRIBUTED TO THIS PROJECT IS $9,269,000, AND THAT HAS NEVER CHANGED THROUGHOUT THE DURATION OF THE PROJECT.

[02:15:02]

SO I JUST WANTED TO CLARIFY THAT. THANK YOU. CARRY ON.

OKAY. OKAY. WE'RE LOOKING AT POTENTIAL FUNDING SOURCES FOR THIS PARTICULAR BUILD OUT.

AND CURRENTLY WITHIN THE ARPA FUND ITSELF, WE HAVE ACTUALLY EARNED $1.7 MILLION IN INTEREST AS OF JUNE 30TH.

SO POTENTIALLY, IF YOUR DESIRE WAS WE COULD UTILIZE INTEREST TO TO BUILD OUT THE THIRD FLOOR.

CURRENTLY THE DEPARTMENTS THAT ARE MOVING IN TO THE THIRD FLOOR IS ACTUALLY PLANNED RIGHT NOW TO BE PROCUREMENT AND FINANCE TO TOTALLY FILL UP THE THIRD FLOOR.

THERE WILL BE A LITTLE BIT OF AREA, OF COURSE, FOR FUTURE BUILD OUT OR FUTURE GROWTH.

SO, MR. MORTON, DID YOU NEED ARE YOU BRINGING THIS BACK OR DID YOU NEED A CONSENSUS ON THIS ITEM AS WELL? YOU KNOW, I WOULDN'T MIND CONSENSUS BECAUSE WE'RE GOING TO MEET MONDAY TO BUILD A BUDGET. PART OF THE STRATEGY, AS I UNDERSTAND IT, AND WHAT I'M WORKING WITH THE POLICE DEPARTMENT ON IS, YOU KNOW, THE END GOAL HERE IS, IS BUILDING THREE, OBVIOUSLY WAS PLANNED TO BE DONE AT SOME DATE UNCERTAIN.

WE DO HAVE AN OPPORTUNITY TO ADDRESS A SHORT TERM.

AND I SAY SHORT TERM, A FIVE YEAR OR LESS SPACE NEED FOR THE POLICE DEPARTMENT PROVIDES THEM SIGNIFICANT ADDITIONAL SPACE IN BUILDING B, WHICH WOULD ALSO HAVE AN ADAPTED REQUEST FOR SOME HARDENING.

AND THEN WHAT YOU'LL ALSO SEE IN THE BUDGET, AND SOMETHING I'D LIKE TO FUND THROUGH THE PUBLIC SAFETY ALLOCATION, IF THE MILLAGE REMAINS THE SAME AS THE FIRE TRUCKS, THE THE SWAT TEAM RESOURCE, AND THEN ADDITIONALLY THERE'S SOME MONEY REQUIRED FOR A TRUE SPACE NEEDS ANALYSIS THAT WE CAN START CASTING A VISION, DEVELOPING A PLAN IN TERMS OF WHAT IT'S GOING TO LOOK LIKE FOR SPACE NEEDS, ARCHITECTURE, FOR DESIGN FOR OUR GROWING AND FUTURE POLICE DEPARTMENT.

AND SO THAT'S ALL PART OF A MOVING PART STRATEGY TO GET OUR POLICE IN A MODERN, FUNCTIONAL, ADAPTED, SAFE BUILDING SPACE. SO MY GOAL WAS TO CONTINUE ON THIS PLAN OF THE THIRD FLOOR BUILD OUT SO WE CAN, IN FACT, MOVE SOME DEPARTMENTS OUT OF BE GIVE POLICE THE EXPANSION SPACE THEY DESPERATELY NEED WHILE WE CREATE A VISION WITH THE COUNCIL IN THE COMMUNITY ON A PERMANENT HOME FOR THE POLICE DEPARTMENT. SO IF I'M IF I'M NOT TRACKING PROPERLY AND THIS IS NOT A DIRECTION, IT WOULD BE GOOD TO KNOW THAT BEFORE I START BUILDING THOSE SPACE NEEDS AND TRANSITIONS INTO THE BUDGET.

OKAY, I'LL START WITH COUNCILMAN JOHNSON, SINCE HE'S NOT HERE, AND THEN I'LL FOLLOW UP WITH COUNCILMAN HAMMER.

COUNCILMAN JOHNSON. MAYOR. THANK YOU SIR. SO MY MY QUESTION, I GUESS THIS CAN BE SENT TO ME IN AN EMAIL.

THE 1.8 MILLION. WHAT? HOW WOULD THAT EATEN UP? I KNOW THE ENTERPRISE FUND IS WHAT COVERED IT, BUT I REMEMBER I REMEMBER THE WHOLE PROCESS THAT FROM THE ARPA FUNDING.

TO WHERE WE ARE NOW. BUT THAT'S THE THAT'S A HUGE CHUNK OF THINGS TO SAY THE LEAST.

SO WHAT WHAT WAS IT WAS IT JUST CHANGE ORDERS THAT ADDED UP TO BE 1.8? I'M TRYING TO, YOU KNOW, RECALL EVERYTHING FROM WHERE WE WERE THEN TO NOW.

AND I'M NOT EXPECTING Y'ALL TO HAVE THOSE NUMBERS RIGHT IN FRONT OF YOU RIGHT NOW, BUT THAT'S SOMETHING I WOULD DEFINITELY LOVE TO KNOW, BECAUSE WE'RE MAKING THESE ESTIMATES. AND IT SEEMS THAT THESE ESTIMATES ARE NEVER REALLY ON THE BALL AT LEAST PREVIOUSLY.

SO I HAVE A HARD TIME MOVING FORWARD WITH ANOTHER PORTION OF BUILDING E WHEN WE KEEP UNDERESTIMATING OR WHATEVER THE CASE MAY BE, WITH WHAT WE ALREADY HAVE RIGHT NOW. SO THAT'S ALL I HAVE.

MAYOR. THANK YOU. CAN YOU ANSWER THAT TODAY? YEAH, THE EXACT FIGURES I'D HAVE TO.

I'D HAVE TO SEND FURTHER IN AN EMAIL, BUT I THINK IT'S AN EXCELLENT QUESTION.

AND I YOU KNOW, WE CAN ABSOLUTELY DIVE INTO IT.

HERE'S THE ONE THING THAT I CAN SAY WITH CONFIDENCE RIGHT NOW IS THIS $18.4 MILLION IS A FIGURE THAT LARRY AND I WORKED ON ON A GIANT SPREADSHEET FOR A LOT OF TIME. AND AND, AND GREG WAS INVOLVED AS WELL, AND GREG AND I AND LARRY ALL WORKED TOGETHER AT THE COUNTY ON ALL THE PARKS REFERENDUM PROJECTS. AND I THINK OUR PHILOSOPHY IS THE SAME.

YOU PUT THAT CONTINGENCY HIGH, AND WE ESTIMATED A VERY HIGH CONTINGENCY FOR THIS PROJECT.

AN $18.4 MILLION REPRESENTS A HIGH CONTINGENCY FOR CONSTRUCTION.

I FEEL PRETTY CONFIDENT THAT WE'RE GOING TO COME IN UNDER IT.

FOR EXAMPLE, THE FURNITURE IS GOING TO COME BACK TO YOU AT YOUR NEXT COUNCIL MEETING.

AND, YOU KNOW, WE'VE WE'VE EXPANDED THE MEMO AND EXPLANATION.

I LISTENED TO THE MEETING TO ANSWER ALL YOUR QUESTIONS.

AND ONE OF THE THINGS YOU'RE GOING TO SEE IN THERE IS. OUR FURNITURE EXPENDITURES ARE $200,000 LESS THAN OUR BUDGET BECAUSE WE ESTIMATED THAT BUDGET.

HI. I CAN'T SPEAK WITH CONFIDENCE ABOUT HOW HIGH THE CONTINGENCY WAS PLANNED BACK IN 2022 AND 2023.

THERE ARE A LOT OF CHANGE ORDERS ON THIS PROJECT.

WE HAVE MADE A LOT OF CHANGES, AND IF YOU THINK ABOUT THE MANAGEMENT CHANGES THAT HAVE HAPPENED IN THAT TIME,

[02:20:07]

OUR UTILITIES DIRECTOR HAS CHANGED. WE'VE HAD THE PEOPLE WHO ARE MAKING THE DECISIONS ABOUT WHAT GOES IN THE BUILDING HAVE CHANGED OVER TIME.

SO THERE HAVE BEEN CERTAINLY A LOT OF OWNER DRIVEN CHANGES THAT WE HAVE TO OWN AS A CITY.

BUT I CAN DEFINITELY GET THOSE DETAILS TO YOU ALL NEXT WEEK.

OKAY. THANK YOU. SO COUNCILMAN HAMMOND. THIS BEING SOMETHING NEW FOR PARKS AND FACILITIES. COULDN'T WE UTILIZE THAT? THOSE IMPACT FEE FUNDING THAT WE NEED TO SPEND ON THIS? NO, NO IT'S NOT IT WOULDN'T BE WOULDN'T BE A REGIONAL.

IT'S WOULDN'T QUALIFY AS A REGIONAL EXPENSE FOR THE PURPOSE OF THE IMPACT FEE.

SO THIS IS THIS IS THIS IS THIS IS EXISTING. IT'S ALREADY UNDER CONSTRUCTION.

IT'S EXISTING. IT'S NOT NEW CAPACITY AT THIS POINT.

IF THAT QUESTION COULD HAVE BEEN ASKED, IT WOULD HAVE BEEN THREE, THREE YEARS AGO BECAUSE ORIGINALLY WE AGREED NOT TO BUILD IT OUT SO IT WOULD BE EMPTY.

SO THIS WOULD ORIGINALLY THIS WOULD ACTUALLY BE SOMETHING NEW BECAUSE WE DID NOT INTEND ON BUILDING IT.

SO IT'S EMPTY. SO IT IS NOT BUDGETED TO TO BUILD THAT OUT.

THIS IS A NEW BUDGET ITEM. RIGHT. BUT THE CAPACITY IS THERE.

THE SPACE IS THERE. YEAH. OKAY. SO MY QUESTION IS GOING TO BE MORE TOWARDS COUNCILMAN JOHNSON'S DISCUSSION. HOW ACCURATE IS THE 1.5 BECAUSE WE'RE TALKING ABOUT THE AAP ENTRIES WAS 1.7.

AND YOU'RE ESTIMATING THE BUILT OUT WITH THE FURNITURE WITH THE DESIGN TO BE 1.5.

HOW ACCURATE IS THAT NUMBER? AND, YOU KNOW, IT BEGS TO DIFFER.

IF YOU PUT 1.5 AND YOU BUILD IN THESE CONTINGENCIES AND IF WE GO OVER THAT, THAT'S INEXCUSABLE, RIGHT? SO I WANT TO GIVE DIRECTION.

I WANT TO GIVE A CONSENSUS. BUT THE QUESTION STILL REMAINS HOW ACCURATE IS THE 1.5? DID WE BRING THE ESTIMATE OF THE ENGINEER'S ESTIMATE AND THE THE MEETING REQUIREMENTS TONIGHT.

IF NOT, WE'LL WE'LL WE'LL BRING IT BACK. SO WE ACTUALLY.

OPPORTUNE TIMING. MET ON BUILDING E THIS MORNING AS A TEAM WITH STAFF.

AND YOU KNOW THESE ARE THE DESIGN ESTIMATE WE'RE PRETTY CONFIDENT ON THE FURNITURE ESTIMATE WERE PRETTY CONFIDENT ON THE THIRD FLOOR.

BUILD OUT IS A ESTIMATE. IT IS NOT AN ENGINEER.

NONE OF THESE ARE ENGINEERS ESTIMATES. THEY CAN'T BE WITH THE 30 DAYS THAT WE'VE HAD TO DEVELOP IT, WE THE ONLY REASON WE'RE COMFORTABLE WITH THE DESIGN ESTIMATE IS BECAUSE WE ACTUALLY HAVE A TASK ORDER FROM AN ARCHITECT, SO WE HAVE A HARD NUMBER IN FRONT OF US. THE OTHER FIGURE, AND I'D HAVE TO DEFER TO TO GREG ON THIS ONE, IS AN ESTIMATE BASED ON THE CURRENT BUILD OUT OF THE SECOND FLOOR AND THE APPROXIMATE SPACE NEEDS.

OKAY. BUT IT'S DONE BY OUR INTERNAL STAFF, NOT BY ENGINEERS.

OKAY. GO AHEAD. AND DEPUTY MAYOR JAFFE HAS A QUESTION AS WELL, BUT I'M MORE ALONG THE LINES OF THIS.

THIS IS GOING TO OPEN UP SPACE. I JUST WANT TO SEE HOW ACCURATE WE'RE GETTING TO TO THAT THAT 1.5.

WELL, ACTUALLY THREE OF US WORKED ON THE ESTIMATE OF THE 1.2 FOR THE THREE STORY BUILD OUT.

AND WE FEEL THAT'S A PRETTY ACCURATE NUMBER BASED ON THE EXISTING THIRD FLOOR.

IF YOU HAVEN'T BEEN UP THERE LATE, YOU KNOW IT'S GOING TO CONSIST OF BUILDING OFFICES, MOSTLY BECAUSE THE FIRE SUPPRESSION SYSTEMS IN THE EXCEPT FOR THE OFFICES, YOU KNOW, THE THE HVAC, YOU KNOW, WE HAVE TO BUILD THE RESTROOMS. BUT BETWEEN USING OUR SYSTEMS AND USING CALLS BASED ON WHAT WE DID TO BUILD OUT ON THE SECOND FLOOR, WE FEEL FAIRLY COMFORTABLE. GRANTED, WE DON'T HAVE A SET OF CONSTRUCTION PLANS YET.

WE HAVE ZAREK GREG'S THAT WE JUST RECEIVED AN UPDATED TASK ORDER FROM HIM.

AND ONCE WE GET, YOU KNOW, THE 30% AND 60% CLAIMS. BUT WE FEEL FAIRLY COMFORTABLE WITH THIS NUMBER BASED ON WHAT WE'VE SPENT ON ON THE FIRST FLOOR AND THE SECOND FLOOR.

WELL, SIR, MAJOR, YOU'VE BEEN COUNTING NUTS AND BOLTS FOR QUITE SOME TIME, AND I FEEL A LITTLE MORE AT EASE WITH WITH YOUR ESTIMATES.

ARE YOU GOING ON THE RECORD AND SHARING THAT WITH ME? I KNOW YOU'VE WORKED MANY YEARS COUNTING THE NUTS AND BOLTS IN THE COMMUNITY CENTERS THROUGHOUT THE COUNTY,

[02:25:03]

HOW MANY HOW MANY SQUARE FEET IS THAT THIRD FLOOR TO BUILD OUT.

THE ACTUAL THIRD FLOOR IS GOING TO OVER 13,000FT², BUT THE ACTUAL BUILD OUT IS ABOUT 10,300.

AND THE REASON IS, YOU KNOW ALL THE MECHANICAL UNITS ARE UP ON THE THIRD FLOOR, BUT ACTUAL BUILD OUT IS ABOUT 10,000 AND VUITTON 1300FT². HOW COME? IT'S MY UNDERSTANDING. I WALKED YOU AND I WALKED THE BUILDING.

I KNOW THE MEPS ARE ALL IN. I KNOW THE LIKE THE THE THE DROPS OR THE DUCTWORK AREN'T IN FOR THE FOR THE INDIVIDUAL OFFICES, BUT LIKE THE MAIN TRUNK LINES, YOU KNOW, STOCK, DRYWALL, STOCK, DRYWALL.

CORRECT. Y AND IT'S I KNOW A LOT OF IT'S GOING TO MIRROR THE SECOND FLOOR.

WHY NOT JUST USE THE ARCHITECT THAT DESIGNED THE BUILDING ORIGINALLY? WHY HIRE GREG STARK TO DRAW THE TENANT BUILD OUT? TO ME, IT'S YOU JUST KIND OF COPY PASTE, OVERLAY THE CAD DRAWING ON THE ON THE THIRD FLOOR.

I WAS I WAS TOLD IT WAS GOING TO MIRROR THE SECOND FLOOR.

WHEN I WALKED THE BUILDING A MONTH AGO. SO JUST CURIOUS WHY.

IF IT WOULD BE. ALL RIGHT. I'LL ADDRESS THAT.

YEAH. CEILING ARCHITECTS WAS SELECTED THROUGH A COMPETITIVE QUALIFICATION PROCESS IN 2021. THEY THIS WAS THE FIRST GOVERNMENT BUILDING THEY HAD DONE IN FLORIDA.

WE'VE HAD SOME CHALLENGES, MAINLY RELATED TO THEIR SUB CONSULTANTS, WHICH WOULDN'T REALLY IMPACT US HERE.

IT WAS PRIMARILY SITE WORK SUB CONSULTANTS. THAT GREATLY DELAYED THIS PROJECT MOVING FORWARD.

THEY'RE WELL AWARE OF THAT. THERE'S NOTHING I'M SAYING HERE TONIGHT THAT THEY HAVEN'T HEARD US SAY BEFORE.

WE ACTUALLY CONSIDERED LOOKING AT THIS AS A DESIGN BUILD WITH W AND J, AND IN FACT, WE FIRST APPROACHED W AND J TO GIVE US A VERY, VERY ROUGH FIGURE. ABOUT A YEAR AND A HALF AGO WHEN WE WERE AWARDING THIS CONTRACT.

AND THAT WAS ONE OF THEIR SUGGESTIONS, WAS, HEY, WHY NOT PARTNER WITH US AND JUST LET US BRING ON A DESIGN BUILD FIRM AND WE'LL DO THE WHOLE THING, RIGHT? SOME CHALLENGES WITH THAT.

THE PROCUREMENT PROCESS, CHALLENGES THAT GEORGE COULD SPEAK MORE TO. BUT ALSO WHEN YOU DO DESIGN BUILD, YOU LOSE A LITTLE BIT OF NOBODY'S ACTUALLY ON YOUR SIDE, RIGHT.

THE DESIGNER AND THE ENGINEER ARE ON A TEAM AND NO ONE'S ON THE OWNER'S SIDE.

AND SARK ENGINEERING IS WHO THEY WOULD HAVE PARTNERED WITH ANYWAY, WHO'S ALREADY ON OUR CONTINUING CONTRACT.

STEVE WHITTEN AND GREG RECEIVED THE ESTIMATE FROM SARK, AND IT'S VERY LOW.

AND IT'S BECAUSE HE'S THE MEP IS ESSENTIALLY DONE RIGHT.

SO HE'S GOING TO BE ABLE TO AND WE ARE WE DID CONFIRM WE WERE ABLE TO GET THE DWG DRAWINGS FROM SELLING.

WE OWN THE DRAWINGS. SO THAT WAS PART OF THE CONSIDERATION IS COST SAVINGS, TIME SAVINGS, USING A LOCAL FIRM AND PARTNERING WITH W.A. TO EXPEDITE THE PROJECT, BUT DID NOT GET A PRICE FROM CEILING ARCHITECT.

NO WE DIDN'T AND I THINK GEORGE COULD CORRECT ME ON THIS.

I DON'T BELIEVE WE CAN BECAUSE IT'S IN OUR CCNA CONSULTANTS COMPETITIVE NEGOTIATION ACT.

YOU CAN'T GET PRICES FROM TWO ENGINEERING FIRMS AT THE SAME TIME.

YOU HAVE TO NEGOTIATE WITH ONE. TERMINATE NEGOTIATIONS.

IF YOU CAN'T COME TO AN AGREEMENT AND THEN NEGOTIATE WITH ANOTHER.

BUT IT WON'T BE CONSIDERED LIKE A CHANGE ORDER OR TASK CHANGE TO THE CONTRACT BY THEN.

JUST DESIGNING THE THIRD FLOOR OUT ON YOUR OTHER SIDE.

COME ON. GEORGE, GEORGE, COME ON BEHIND ME. YEAH.

YOU WANT TO COME UP AND TALK ABOUT WHAT YOUR THOUGHTS ARE IN IT? YEAH. SO A LOT WENT INTO THE DECISION, BUT BASICALLY WHAT JULIA OUTLINED, IT WAS MORE PERFORMATIVE FOR SELLING IN THE CLEANEST WAY, BASED ON A COLLABORATIVE APPROACH WAS TO UTILIZE SAQ, WHICH IS OBVIOUSLY A FIRM THAT WJ UTILIZES, OBVIOUSLY KEEPING WJ BECAUSE THEY'RE MOBILIZED ALREADY THERE.

SO NOT HAVING ANOTHER CONTRACTOR COME IN BUT THEN ALSO DOING IT UNDER THE CONTINUING CONSULTING CONTRACT THAT WE HAVE, WHICH SAQ IS A PART OF. TO YOUR POINT, WE COULD HAVE GONE TO CEILING MAYBE WITH A CHANGE ORDER, BUT AGAIN, BASED ON SOME PERFORMANCE ISSUES AND GOING IN A DIFFERENT DIRECTION.

THE CLEANEST APPROACH WOULD HAVE BEEN WHAT WE'RE PROPOSING NOW IS TO GO START WHO'S UNDER CONTRACT, GET A PROPOSAL FROM THEM AND THEN HAVE WJ, WHO'S ALREADY MOBILIZED, TO DO IT.

BY THE TIME WE GET THE DRAWINGS DONE AND THE PERMIT WILL WE HAVE CO AND THEY'LL BE OUT OF THE BUILDING.

ARE YOU EXPECTING WJ TO STILL BE ON THE JOB SITE? SO THE PRELIMINARY THE TASK THAT WE HAVE NOW HAS 90 DAYS UNTIL I BELIEVE 100% DRAWINGS MODIFIES THE 89 DAYS SOMEWHERE AROUND THERE. SO THEY SHOULD THEY, THEY SHOULD STILL BE ON SITE.

[02:30:01]

I WOULD BE GOOD WITH FILLING THIS OUT. WE'RE WE'VE GOT THE POLICE DEPARTMENT ON TOP OF ONE ANOTHER.

WE WERE LOOKING AT SHORT TERM IMPROVEMENTS. MIGHT AS WELL JUST HAVE THE MOVE AND TAKE OVER BUILDING B AND AND REPLACE EVERYONE TO INCLUDE EVEN THE CITY ATTORNEY WOULD, WOULD HAVE TO MOVE UP TO BUILDING A I WOULD IMAGINE.

NO, NOT NOT I DON'T THINK SO. I THINK THAT WASN'T PART OF THE PLAN.

NOT IN THE FIRST PHASE. NO, THIS IS THIS IS THIS IS THE HOUSE SHE WANTS TO SELL.

YES. OKAY. THIS IS HALF OF BUILDING E. OKAY. B EXCUSE ME.

BRAVO, BRAVO. SO I'M GOING WITH THAT COUNCILMAN.

YEAH. YOU GUYS BROUGHT UP SOME GREAT QUESTIONS AND SOME GREAT POINTS. I AGREE WITH EVERYTHING I HEARD. AT THE END OF THE DAY, WE GOT TO GET SOME SPACE FOR FOR THE POLICE DEPARTMENT.

THEY'RE BUILT OUT. AND UNTIL WE GET THEM A NEW HEADQUARTERS, THAT'S GOING TO BE ESSENTIAL.

SO I SUPPORTED IT. BUT TO YOUR TO YOUR POINT, MAYOR, YOU KNOW, YOU JUST LET THEM KNOW THAT THAT'S YOU GAVE US THAT ESTIMATE.

SO THAT'S WHAT WE'RE LETTING YOU HAVE TO PLAY WITH AND TRY TO KEEP IN THAT NUMBER.

FIXED PRICE. YEAH. I'M IN AGREEANCE AS LONG AS IT'S TO SO PD HAS A HAS EXTENSIONS THERE.

YEAH. DEPUTY MAYOR. YEAH. I MEAN, I THINK GREG DID A GREAT JOB WITH THE THE BUDGET.

I FEEL LIKE THE DESIGN SHOULD BE MORE AROUND 35,000, BUT SAY GOODBYE TO YOU GUYS DISCUSSED, YOU KNOW. I MEAN, APPROVAL OF THE 1.5 AND THEN USING THE ARPA INTEREST TO TO FUND THE PROJECT.

THANK YOU. SIR. THANK YOU. ALL RIGHT. NEXT. OKAY.

CARRY ON. IS THAT GOOD ENOUGH? THAT'S FANTASTIC.

I WAS GOING TO I WON'T BACKTRACK. I WAS GONNA SAY IT'S ON THE SIDE. THAT WAS THE MOST INTERESTING THING. THIS IS AN INFORMATIONAL POINT. SORRY TO SIDETRACK THE MEETING OF THE FIRE STATION. P3 CONVERSATION IS THEY DELIVER IT FOR A FIXED PRICE, ON TIME, ON BUDGET.

RIGHT. QUICK. QUICK TIMELINE, FULL PROJECT MANAGEMENT.

IT'S ONE OF THE MOST INTERESTING THINGS ABOUT THESE GUYS. WE WERE WE WERE CURIOUS ABOUT. AND THEY SHOW THE SAVINGS IN THAT PROCESS WHERE IT DOESN'T TAKE THEM YEARS TO BUILD A BUILDING, BUT I WON'T I WON'T DIGRESS ON THAT TONIGHT. BUT WE WILL REPORT BACK, I APOLOGIZE, I WELL, I'VE GOT A QUESTION BY COUNCILMAN. I HAVE ONE MORE BEFORE WE MOVE ON TO THE NEW THING.

EARLIER WE WERE TALKING ABOUT THE THREE PAYMENTS ON THE LADDER TRUCKS WITH US DOING THIS THAT LOCKS IN THAT PRICE NOW.

CORRECT? CORRECT, CORRECT. SO THERE'S NO PRICE INCREASES THROUGHOUT THE TIME.

THIS LOCKS US IN AT THAT PRICE NOW. AND EVERYTHING ELSE.

THAT SOUNDS LIKE A WIN WIN. YEAH. YES. THANK YOU.

ALL RIGHT. THANK YOU. OKAY. ARE WE GOOD? OKAY.

THE NEXT THING WE WANT TO DISCUSS IS THE PD TRANSITIONAL HOUSING, MOVING OVER TO BUILDING B.

CURRENTLY, THE PLAN IS FOR THE CITY ATTORNEY AND ACTUALLY HUMAN RESOURCES TO STAY IN BUILDING B.

RIGHT NOW, THERE IS A SCOPE OF WORK THAT HAS BEEN GIVEN TO AN ARCHITECT TO START, YOU KNOW, DESIGNING AND TRY AND FIGURING OUT THE HARD HARDENING OF THE OF THE FACILITY.

EXCUSE ME, OF THE FACILITY PLANS BEING DEVELOPED TO PROVIDE THE COST ESTIMATE, THE EARLY GUESSTIMATES.

AND THAT WAS ACTUALLY JESSICA ACTUALLY COVERED THIS ONCE BEFORE.

THE HIGH END IS $220,000 RIGHT NOW. IT IS AS POSSIBLE TO GO AS LOW AS I BELIEVE IT WAS $150,000.

I DO WANT TO STRESS THIS IS AN ESTIMATE AND WE DO NOT HAVE FINAL FIGURES.

WE'VE DONE SOME ROUGH WORK, BUT THAT WOULD BE WHAT WE'RE THINKING.

THE NUMBER IS, OR THE FIRST ESTIMATE WE SAW WAS 400 AND CHANGE.

BUT WE'RE WE'RE REFINING IT WITH MORE CONFIDENCE.

SO I DON'T WANT TO SPEAK THAT THAT IS THE NUMBER. IN LIGHT OF THE CONVERSATION WE JUST HAD, WE WILL BRING THAT NUMBER BACK. BUT THE CURRENT ORDER OF MAGNITUDE IS IS A QUARTER MILLION DOLLARS. THE SWAG. YEAH, THEY'RE GOING TO USE THE EXISTING FURNITURE ROOMS. I MEAN THEY'RE REALLY GRACIOUS. AND DPD IS IN TERMS OF GRATEFUL TO HAVE THE SPACE ADAPT.

AND THESE ARE SOME BASIC SAFETY AND SECURITY UPGRADES. THERE MIGHT BE A FEW MINOR MODIFICATIONS. ONCE THEY GET IN THERE. THEY SAY, WAIT A MINUTE. THIS PARTICULAR DOOR OR DESK OR WHATEVER DOESN'T WORK OR THEY NEED ADDITIONAL SPACE. BUT IT'S THEY'VE BEEN VERY MODEST IN THEIR REQUEST.

BUT THEY ALWAYS CARRY ON. OKAY, NEXT PART THAT CAME UP WAS ACTUALLY PARKS PLANS AND ACTUALLY DOING A, A MASTER PLAN FOR FRED POPPY PARK. WE'RE LOOKING AT THE UTILIZATION, UTILIZING IMPACT FEES TO PAY FOR THE PLAN THAT'S CURRENTLY BEING DISCUSSED RIGHT NOW.

SOMETHING THAT DID COME UP WAS AS FAR AS THE ROAD REPAIRS AT THE PARK, TO MAKE SURE THAT WE DO NOT REPAIR THE ROADS AND TEAR UP BEFORE WE HAVE A COMPLETE PLAN. AND I HAVE BEEN GUARANTEED AND IT SAYS RIGHT THERE, ROADS WILL BE DONE IN CONJUNCTION WITH OTHER IMPROVEMENTS TO THE PARK TO ENSURE EFFICIENCY. THANK YOU. FOOTBALL FIELDS.

BASEBALL FIELDS? YEAH. OKAY. OKAY. OKAY. ANOTHER ITEM THAT WAS DISCUSSED WAS THE VETERANS SERVICE OFFICER VSO TO

[02:35:10]

IF IT WAS A IF WE BROUGHT IN A NEW BODY AND MAKE IT A CITY EMPLOYEE.

THE COST WOULD BE THAT JUST UNDER $89,000. HOWEVER, I WHAT WE SHOULD PROBABLY DO, AND THIS IS JUST A RECOMMENDATION, IS THAT WE SHOULD INVESTIGATE WITH BREVARD COUNTY AND SEE IF WE CAN ACTUALLY INCREASE THE MOU TO INCREASE IT TO TWO BODIES.

BECAUSE AND ONE THING THAT I OF COURSE, THOUGHT OF IS THE PERSON THAT WE CURRENTLY HAVE RIGHT NOW FALLS UNDER THE FLORIDA RETIREMENT SYSTEM.

IF WE BROUGHT IT IN AS A CITY EMPLOYEE, THAT OTHER ONE WOULD NOT FALL UNDER THE SYSTEM.

SO IT'D BE KIND OF INTERESTING. SO WE'RE GOING TO IF YOU WANT TO GO IN THAT DIRECTION, WE'LL DISCUSS WITH THE COUNTY.

AND INFRASTRUCTURE IS ALREADY IN PLACE. AND THEY GO THROUGH THE TRAINING AT THE SAME TIME AS THE, THE COUNTY. AND WHEN I, WHEN I SUGGESTED THIS FROM THE OFFSET AND I, I KNOW THAT COUNCILMAN JOHNSTON WANTED TO LOOK AT THE NUMBERS. THE NUMBERS WEREN'T. WE'RE PROVIDING SERVICES NOT ONLY TO OUR MAYORS, BUT THROUGH THROUGH THE CITY'S ROUNDABOUT. THIS IS SUCH A NECESSITY WITH THE MONEY THAT COMES BACK TO OUR ECONOMY.

SERVICE CONNECTED VETERANS. AND, QUITE FRANKLY BREVARD COUNTY HAS THE THIRD HIGHEST IN THE STATE OF FLORIDA OF SERVICE CONNECTED VETERANS. JUST JUST SO THAT, YOU KNOW, SERVICE CONNECTED DISABLED VETERANS IN BREVARD COUNTY ARE THE THIRD HIGHEST IN THE STATE.

SO MAKE UP A HUGE AMOUNT. AND SO THERE ARE MANY, MANY OF OUR VETERANS THAT DO NEED THE EXPERTISE AND, AND EVEN, MOREOVER, OUR, OUR SURVIVING SPOUSE, STUDENTS AND SPOUSES.

AND SO IT'S IT'S AN IMPORTANT SERVICE TO OUR COMMUNITY.

SO I, I REQUESTED THIS COUNCIL. IT'S IT'S UP TO YOU, BUT I'M, I'M A THUMBS UP ON THIS.

I THINK THIS IS SOMETHING THAT WE WE OWE TO OUR VETERANS AND THEIR FAMILIES.

OKAY. KEEP GOING PLEASE. AND IT WAS JUST THERE WAS AN ADDITIONAL SPACE THAT WOULD HAVE TO BE ALLOCATED DOWN IN THE DEPARTMENT.

THAT WOULD FOR A MINIMAL COST. OKAY. LET'S LET'S MOVE ON TO COST ALLOCATION.

THE QUESTION CAME UP AND IT WAS ACTUALLY DISCUSSED EARLIER TONIGHT AS FAR AS COST ALLOCATION AND HOW THE GENERAL FUND GETS ITS MONEY BACK FROM ENTERPRISE FUNDS.

WHAT WE DO IS ON AN ANNUAL BASIS. WE SUBMIT DOCUMENTATION TO A VENDOR TO SHOW ALL OF THE EXPENSES AND ALL THE ALL OF THE ACTIVITIES WITHIN THE CITY, I.E. WE WE HAVE THEM LOOK AT PROCUREMENT TRANSACTIONS, FINANCIAL TRANSACTIONS, BIDS, CONTRACTS, IT, HR UPDATES, FACILITY WORK ORDERS.

THEY LOOK AT ALL THAT AND TAG DOLLAR AMOUNTS TO TO ALL OF THAT.

AND THEN THEY PROPORTION IT OUT BY THE ENTERPRISE FUNDS AND THE GENERAL FUND DOWN AT THE VERY BOTTOM.

IF YOU WOULD LOOK IN 2026, WE'RE ACTUALLY RECEIVING BACK $4.9 MILLION BACK FROM ENTERPRISE FUNDS, BACK TO THE GENERAL FUND. NOW, THE NUMBERS THAT ARE USED, OF COURSE, ARE A YEAR ONE YEAR OLD.

YOU'RE ALWAYS ONE YEAR BEHIND BY USING THOSE ESTIMATES, BUT THAT'S THE BEST WAY TO COME UP WITH THOSE NUMBERS.

ACTUALS FROM THE PREVIOUS YEAR OKAY. ONE AT A TIME.

ZERO BASED BUDGETING. THIS HAS COME UP MULTIPLE TIMES.

AND I WOULD LIKE TO SAY MAYOR AND COUNCILMAN JOHNSON, BACK WHEN I FIRST CAME HERE.

I HAD A DISCUSSION ABOUT WE'VE TALKED ABOUT ZERO BASED BUDGETING SINCE I'VE BEEN HERE, AND THE CONVERSATION HAS BEEN THAT I WAS ACTUALLY PLANNING ON DOING A FIVE AND ONE ROTATION, FIVE YEARS OF WHAT WE DO RIGHT NOW.

YOU KNOW, MAXIMUM MAXIMIZATION AND THEN DO A ZERO BASED BUDGET, BRING US BACK DOWN WHERE WE ACTUALLY HAVE TO SIT AND SHOW HOW WE'RE GOING TO, HOW WE'RE GOING TO BUDGET THE MONEY. AND THEN EVERY, EVERY SIX YEARS YOU KEEP DOING THAT.

I ACTUALLY ADDRESSED THAT WITH OUR BONDING AGENCIES.

AND THEY ACTUALLY THOUGHT THAT WAS A GREAT IDEA BECAUSE IT KEEPS BRINGING YOU BACK DOWN. AND THEY SAID THAT ACTUALLY HELPS WITH OUR BONDING OR OUR RATING.

SO JUST TO PUT THAT OUT THERE, SO WE WOULD ACTUALLY BE LOOKING AT IN 2028 WOULD BE THE FIRST TIME THAT WE ACTUALLY DO ZERO BASED BUDGETING AGAIN ONE TIME,

[02:40:04]

AN OPERATIONAL AUDIT. YOU KNOW, IT KEEPS COMING UP.

TALKING ABOUT OPERATIONAL AUDITS WITHIN THE CITY.

AND WE ACTUALLY ARE CONTINUALLY DOING THIS. WE BRING ON A ORGANIZATION CALLED 65 NORTH THAT COMES IN.

WE SELECT AS AN ORGANIZATION DIFFERENT THINGS THAT WE WOULD LIKE FOR THEM TO LOOK AT.

AND CURRENTLY. AND ACTUALLY THEY JUST FINISHED QUITE RECENTLY ON DOING A COUPLE OF ITEMS FOR US.

WE HAVE STILL AVAILABLE $16,000 IT WITHIN THAT CONTRACT TO ADDRESS OTHER ISSUES.

AND WHAT WE WOULD LIKE TO DO IS ACTUALLY MOVE FORWARD AND LOOK AT IT.

WOULD YOU TO DO A FLEET OPERATIONAL AUDIT, LOOK AT THAT AND DO AN IN-DEPTH DIVE WITHIN THE FLEET ORGANIZATION? I RECENTLY HAD A CONVERSATION WITH OUR CLERK OF COURTS, BREVARD COUNTY CLERK COURTS.

AND AS YOU KNOW, THEY DO AUDITS FOR BREVARD COUNTY.

AND IT APPEARS TO ME SHE SAID SHE WOULD BE WILLING TO HELP US OUT WITH ANY OPERATIONAL AUDITS, AS SHE DOES WITH THE COUNTY. NOW, I JUST WOULD LIKE TO SEE IF IF COUNCIL WOULD ENTERTAIN THAT.

HAVE OUR COUNTY MANAGER DISCUSS THE WHAT IS POSSIBLE BECAUSE I THINK IF, IF ANOTHER COUNTY OR ANOTHER AUDITING AGENCY WOULD DO THE SAME AS THEY ORDERED THE SHERIFF'S DEPARTMENT, THEY ORDERED OTHER COUNTY AGENCIES. JUST INQUIRE IF THEY THEY WOULD.

WHAT WOULD IT TAKE FOR THEM TO DO THAT WITH US? NOW, I WOULD I WOULD LIKE TO SEE WHAT COUNCIL'S TAKE WOULD BE ON THIS.

AND, AND I DON'T KNOW WHAT THE PARAMETERS WOULD BE REGARDING THE AUDIT, BUT I THINK THAT DISCUSSIONS SHOULD ENSUE WITH OUR CITY MANAGER AND PERHAPS OUR CITY CLERK OUR BREVARD COUNTY CLERK, OF COURSE.

YES, SIR. WHAT DO YOU. WELL, FIRST OF ALL, COUNSEL.

SURE. I'LL START. I MEAN, WE HAVE A I LIKE ALL OF OUR CONSTITUTIONAL OFFICERS.

WE'VE GOT A PHENOMENAL BACHELOR LEADERSHIP HERE IN BREVARD COUNTY, AND I DON'T THINK IT HURTS AS FAR AS.

THERE'S NO AS LONG AS THERE'S NO, YOU KNOW, LEGAL WHATEVER.

IT DOESN'T HURT TO HAVE SOMEBODY ELSE'S AN EXPERT IN THAT, THAT KNOWS WHAT THEY'RE DOING TO HAVE AN OUTSIDE PERSPECTIVE.

IT'S NOT REALLY A IT'S NOT REALLY LIKE, OH, YOU KNOW, WE DON'T TRUST.

IT'S JUST A DIFFERENT SET OF EYES. MAYBE THEY DO THINGS A LITTLE DIFFERENTLY.

WE COULD LEARN NEW THINGS. SO I'M FOR IT. COUNCILMAN HIM.

I'M NEVER AGAINST FREE HELP. SO THAT'S THAT'S THAT'S ALWAYS FREE.

I ALWAYS LOOK AT. I ALWAYS LOOK AT A SITUATION IF SOMEBODY IS WILLING TO HELP.

AND, YOU KNOW, THEY HAVE THEY HAVE GOOD MORALS AND THEY HAVE A, YOU KNOW, THEY'RE LOOKING AND HELPING FOR GOOD.

I'M ALWAYS FOR THAT. ON THE BACK SIDE OF THAT, I DO THINK WE DO.

YOU KNOW, WE DO HAVE A NEW CITY MANAGER NOW THAT IS DIVING DEEP INTO THINGS.

AND I THINK WE'RE GOING TO GET A LOT OF GOOD FEEDBACK FROM THAT, BUT I WILL I WILL NEVER SAY NO TO FREE HELP.

THANK YOU, DEPUTY MAYOR. YEAH. I MEAN, TO COUNCILMAN LANGDON'S POINT.

YOU KNOW, I THINK WE HAVE SOME PHENOMENAL CONSTITUTIONAL OFFICERS, BUT I PREFER THAT WE USE AN INDEPENDENT THIRD PARTY AND NOT HAVE BREVARD COUNTY MUDDLE IN OUR BUSINESS, SO TO SPEAK. I THINK THEY HAVE ENOUGH OF THEIR OWN PROBLEMS, AND THEY SHOULD FOCUS ON THAT.

COPY THAT. COUNCILMAN JOHNSON. I WOULD PREFER WE HAD SOMEBODY EITHER OUTSIDE, LIKE, OUTSIDE OF THE COUNTY OR I'M NOT. WE DO A RFI OR RFP FOR POSSIBLE CONSULTANTS FOR THE OPERATIONAL AUDIT.

MAYOR, THIS IS SOMETHING YOU WANTED SIX YEARS AGO.

SIX YEARS. FIVE YEARS AGO. I REMEMBER, BUT INITIALLY THE TERM WAS FORENSIC AUDIT.

BUT THAT WASN'T THE TERM. THAT WASN'T THE AUDIT WE WANTED TO DO.

BUT AFTER LEARNING THE OPERATIONAL AUDIT OF WHAT ALL IT WOULD ENTAIL.

WE'VE BEEN TOLD, GO FOR IT. WE SHOULD HAVE HAD IT LAST YEAR IN REGARDS TO THE CHARTER OFFICER, BUT IT DIDN'T WORK OUT. SO I WOULD PREFER WE HAD, OUTSIDE OF THE COUNTY CONSULTANT OR PERSON TO TAKE THIS ON.

YEAH. I DON'T KNOW WHAT THAT LOOKS LIKE. I THINK OPERATIONALLY AND AND TO YOUR POINT, THE THE CONVERSATION BETWEEN MYSELF AND MYSELF. WHAT'S SURROUNDING THAT TYPE OF FORENSIC AUDIT? I. CALL IT LIKE AN ECG INSPECTION. AND I THINK FOLKS THAT HAVE SERVED IN THE MILITARY, YOU UNDERSTAND THAT TERM.

[02:45:07]

I DON'T KNOW WHAT THAT LOOKS LIKE. BUT CERTAINLY SEE WHAT THAT WOULD ENTAIL.

AND THEN MAYBE JUST COME BACK AND REPORT BACK TO TO COUNSEL.

I WILL DO THAT. AND THEN THEY ALSO PROVIDED US AND FOR LACK OF A BETTER TERM OF ART, AN OPERATIONAL RISK ASSESSMENT WHERE THEY SHOW DIFFICULTY REWARD RISK OF, OF, OF CHALLENGES AND PROBLEMS, OPPORTUNITIES TO CORRECT COST BARRIERS LOW TO HIGH.

AND THEY RATE IT ON A SCALE. IT'S VERY COMPREHENSIVE.

I'M GOING TO GO AHEAD AND FORWARD THAT TO COUNCIL AS WELL. SO YOU HAVE THE SAME INFORMATION WE DO ON WHAT THEY BELIEVE IS THIS VERY CREDIBLE NATIONAL THIRD PARTY OUTSIDE AGENCY BELIEVES IT SHOULD BE OUR PATHWAY TOWARDS ACCOMPLISHING THIS GOAL.

OKAY, I'VE GOT THE LAST ONE. WE HEARD THE QUESTION FROM SEVERAL IN RESPECT TO RECRUITING CHANGING HOW WE MOVE FORWARD WITH THE PROGRAM. DO WE, DO WE CHANGE THE PDX, THE JOB DESCRIPTION SO THAT HEAVY EQUIPMENT OPERATORS DON'T HAVE TO HAVE CDL? DO WE DO WE CONTRACT FOR TRANSPORT? THIS IS ONE OF THOSE ONES WE ARE LOOKING IN. WE ARE TALKING. WE'RE IDEATING.

I DON'T HAVE A SPECIFIC FOLLOW UP INFORMATION.

WE JUST DIDN'T GET A COMPLETE ENOUGH REPORT ON THIS ONE TO BRING BACK TONIGHT.

HAVEN'T LOST SIGHT OF IT. AND WE'LL CONTINUE TO AND CONTINUE TO WORK ON IT.

AND WITH THAT WE HAVE A LIST OF QUESTIONS. WE HAVE ONE LAST PART OF THE PRESENTATION. AND I WILL SAY WE WERE SMART ENOUGH TO BRING IN A MARINE CORPS VETERAN TO BE THE CLOSER TO BE THE TO BE THE BACK CLEANUP FOR US TONIGHT. SO I'M GLAD TO TURN IT OVER TO MISTER SPILLERS HERE TO TO DID A PHENOMENAL JOB IN CONCERT ON HIS OWN AND WORKING WITH OUR AGENCIES, PD AND PUBLIC WORKS AND FIRE, I BELIEVE.

RIGHT. AND PUT TOGETHER A REALLY GREAT CONVERSATION AROUND LEASES. AND THIS IS THE LAST PIECE OF OUR PRESENTATION TONIGHT. THANKS FOR THANKS FOR THE LONG SUFFERING WITH US ON THIS. ALL RIGHT. GOOD EVENING, LADIES AND GENTLEMEN.

MY NAME IS SEAN SPILLERS, AND I'M YOUR CAPITAL ASSET PROGRAM ADMINISTRATOR.

I WENT AHEAD AND PUT TOGETHER A LEAST COST AND BENEFIT ANALYSIS.

WHAT I'D LIKE EVERYONE TO DO IS I'D LIKE THEM TO LOOK AT THIS AS A HOLISTIC VIEW.

THERE'S NOT JUST THE MONETARY COST AND BENEFITS, BUT THERE'S ALSO THE INDIRECT COSTS AND BENEFITS TO THIS.

I'VE TRIED TO SHOW THE GOOD AND THE BAD AND EVERYTHING SO THAT YOU CAN MAKE THE BEST DECISION FOR THE CITY.

SO FIRST, THE ACQUISITION COSTS. AS YOU CAN SEE FROM THIS, THE LEASED VEHICLE DOES LOOK GOOD BECAUSE IT'S JUST ALL IN THE CONTRACT.

WE DON'T HAVE ANYTHING TO PURCHASE. ANOTHER THING IS THAT A LOT OF OUR VEHICLES WE GET, ESPECIALLY FOR PD, IS WE BUY THEM FROM DUVAL FORD IN JACKSONVILLE, AND THEN WE HAVE TO SEND THEM DOWN TO FORT PEACE PIERCE TO GET A OUTFITTED.

USUALLY THERE'S A LITTLE BIT OF AN INCREASE ON IT TO GET IT DONE.

MOSTLY I PUT IN A 20% FOR ADDED UP FITTING. THERE IS SOME BENEFITS TO THAT.

WE GET ONE EXTRA YEAR OF WARRANTY ON IT, AND THEY'LL SEND SOMEBODY OUT TO THE CITY TO WORK ON THE CAR IF SOMETHING GOES WRONG.

SO THAT'S THE ADDED BENEFIT OF THAT. ALL RIGHT.

SO THE AVERAGE LIFE FOR THE LEASED VEHICLE WOULD BE ON A TWO YEAR CYCLE.

OUR CITY OWNED VEHICLES IS A SEVEN YEAR CYCLE.

SORRY I GUESS THERE'S AN ECHO. YEAH. HELLO. OKAY.

OKAY. SO FOR THE LEASED VEHICLE, IT'S ON A TWO YEAR CYCLE.

FOR THE CITY OWNED VEHICLES, IT'S ON A SEVEN YEAR CYCLE.

WITH THE LEASED VEHICLES, YOU GET TWO BACKUPS.

WITH THE CITY OWNED. WE DON'T HAVE ANY BACKUPS RIGHT NOW.

THE VEHICLE TURNOVER IS BETWEEN 2 AND 4 MONTHS.

CITY OWNED VEHICLES BETWEEN 4 AND 6 MONTHS. THE TURNOVER COST FOR THE LEASED VEHICLES IS ADDED MILEAGE AND REPAIRS, SO THEY GIVE US A CERTAIN CAP AND MILEAGE THAT WE CAN MEET IF WE GO ABOVE IT.

IT'S EXTRA CHARGES. A LOT OF THEIR CONTRACT DOESN'T INCLUDE MAJOR REPAIRS, SO WE WOULD HAVE TO COVER MAJOR REPAIRS.

BUT ANY TYPE OF SURPLUS COSTS OR ANYTHING, ANY OUTFITTING WOULD BE INCLUDED.

I DO HAVE TO ADD THE CAVEAT THAT THIS THESE NUMBERS I GOT WERE FROM CITICORP WITH THE CITY OF ORLANDO.

THINGS CAN CHANGE WITH OUR CONTRACTS, WHAT WE DO.

THIS IS JUST A GENERAL OVERVIEW. ALL RIGHT. YEARLY MAINTENANCE AND REPAIRS.

WITH THE LEASED VEHICLES. WITHOUT ACCIDENTS, IT WOULD BE ZERO.

THEY DO THEIR OWN MAINTENANCE ON THERE. AGAIN, THIS COULD CHANGE BECAUSE THE ORLANDO THE CITY OF ORLANDO HAS VENDORS IN ORLANDO.

THEY MIGHT NOT BE ABLE TO COME OUT HERE. BUT IT'S JUST I'M USING THEIR THEIR EXAMPLE FOR OUR CITY OWNED VEHICLE, IT WAS $321 FOR MY EXAMPLE VEHICLE 9099. THE YEARLY INSURANCE COST IS $235, AND THE YEARLY CONTRACT FOR THE LEASED VEHICLE IS $8,180 PER VEHICLE.

AGAIN, WITH THE REOCCURRING COSTS, I ADDED THE ADDED MILEAGE AND REPAIRS, AND THEN WITH THE CITY OWNED VEHICLE,

[02:50:06]

ALL RIGHT. SO THIS WOULD BE IF WE DID OUR WHOLE PATROL FLEET OF 150 VEHICLES.

THE MONTHLY CONTRACT COST WOULD BE AN AVERAGE OF 102,300.

AND WITH THE CITY OWNED VEHICLES, IT WOULD BE ABOUT $114,000.

AND THAT WOULD BE IF WE WERE SAVING THE MONEY UP TO GET NEW VEHICLES AS OPPOSED TO JUST PAYING THEM OUTRIGHT EVERY ONCE IN A WHILE.

ALL RIGHT. SO THIS IS THE REPLACEMENT CYCLE. WE HAVE A CYCLE HERE OF SEVEN YEARS.

YOU CAN SEE THE LEASED FLEET VERSUS THE OWN FLEET.

THERE IS A SAVINGS OF ABOUT $100,000 TO $200,000 PER YEAR.

BUT I ALSO LIKE TO ADD IN THINGS THAT A LOT OF PEOPLE DON'T THINK ABOUT, THAT IF WE HAVE OUR OWN FLEET, WE HAVE SURPLUS REVENUE AS WELL, BECAUSE WE'LL BE GETTING RID OF ABOUT 20 TO 25 PATROL VEHICLES PER YEAR.

AND SO OUR NET SAVINGS WILL BE FROM 99,000 TO 118,000.

AND THAT'S JUST INPUTTING 3% A YEAR FOR INFLATION.

ALL RIGHT. SO OUR LEASE OPTION PLAN IS TO START IF IT'S APPROVED TO START WITH 3 TO 5 VEHICLES.

BECAUSE WE WANT TO SEE HOW IT ACTUALLY PLAYS OUT.

BECAUSE WHAT WE SEE ON PAPER MIGHT NOT BE WHAT WE GET.

AND WE WANT TO BE ABLE TO TRY IT OUT AND SEE, IS THIS A VIABLE OPTION? WE WOULD REPLACE THE FLEET GRADUALLY. WE HAVE APPROXIMATELY 40 PATROL VEHICLES THAT ARE READY FOR REPLACEMENTS RIGHT NOW.

THE NEWER PATROL VEHICLES, THIS IS WHAT WOULD BE UNFORTUNATE IS THAT WE HAVE A LOT OF 2022 AND A LOT OF 2023 THAT JUST GOT REPLACED, SO WE'D HAVE TO WAIT ANOTHER 5 OR 7 YEARS TO BE ABLE TO REPLACE THOSE.

WE'RE LOOKING TO REPLACE 20 TO 25 VEHICLES PER YEAR, AND ANY ADDITIONAL LEASES ABOVE REPLACEMENTS WILL BE ACQUIRED FOR DEPARTMENTAL GROWTH.

SO THE 20 TO 25 WILL BE THE REPLACEMENTS. THEN WE'LL ADD SOME MORE IF WE ADD SOME MORE POSITIONS.

THIS IS THE PURCHASING OPTION PLAN. IF APPROVED, WE WOULD LIKE TO ESTABLISH A SINKING FUND FOR PATROL VEHICLE REPLACEMENTS.

NOW, WHAT WE WOULD LIKE TO GET EVENTUALLY IS TO BE ABLE TO HAVE THAT INVESTED SO THAT THE INTEREST WILL BE ABLE TO BUY SOME OF THE VEHICLES, AND WE CAN ACTUALLY KEEP THAT FUND UP. NOW, THAT WOULD TAKE SOME TIME, BUT WE WANT TO START SOMEWHERE BY PUTTING A LITTLE BIT ASIDE.

NOW IF THIS OPTION IS APPROVED. AGAIN REPLACING 20 TO 25 PATROL VEHICLES PER YEAR.

ADD ADDITIONAL PATROL VEHICLES TO SUPPORT DEPARTMENTAL GROWTH.

AND THIS, I THINK, IS A VERY IMPORTANT ONE AND IS VERY NEEDED HERE, IS TO ESTABLISH BACKUP VEHICLES FOR OFFICERS WHO HAVE VEHICLES GETTING MAJOR REPAIRS OR A TOTAL VEHICLE AWAITING REPLACEMENT. YES, SIR.

AND SO THE FLEET SINKING FUND FOR PD, SOMETHING I'M USED TO.

IT'S SOMETHING I ASKED TO BE PUT INTO THE BUDGET AND FUND THIS YEAR ACTUALLY ACTS AS SORT OF A SELF-INSURANCE PLAN AND THE HOPES THAT WE DON'T NEED IT.

AND AS A COUPLE OF YEARS GO ON OF US NOT NEEDING IT, WE BUILD UP ENOUGH BALANCE THAT WE CAN BE MORE FLEXIBLE IN OUR REPLACEMENTS.

AS AS MR. SPILLERS NOTED, WITH THE ULTIMATE GOAL OF BUILDING UP ENOUGH RESERVE BALANCE THAT WE EVEN OUT THE YEARS WHEN WE HAVE OPPORTUNITIES, WE SAVE, IN THE YEARS WHEN WE DON'T OR WE DON'T NEED AS MANY REPLACEMENTS.

AND ULTIMATELY, THE INTEREST BUILDS TO A POINT WHERE WE CAN REPLACE A VEHICLE OR TWO OR YEAR BASED OFF FUND GROWTH INSTEAD OF GENERAL FUND.

AND SO I HAD ASKED TO PUT THAT IN HERE TO PROPOSE A ESTABLISHMENT OF A SINKING FUND THIS YEAR FOR FOR THE POLICE DEPARTMENT.

I THINK THINK OF IT AS SELF-INSURANCE IN A WAY.

YES, SIR. THANK YOU. ALL RIGHT. NO PROBLEM. NEXT.

IF WE COULD PAUSE ON. OKAY. OKAY. OKAY. DO YOU HAVE A QUESTION? SO CITY OF ORLANDO CURRENTLY LEASES, OR IS IT THEIR ENTIRE FLEET? NO, THEY DON'T LEASE THEIR ENTIRE FLEET. THEY USE ONLY A LITTLE BIT FOR THEIR PATROL FLEET.

I THINK THEY HAVE ABOUT 800 VEHICLES. IT SAID IN THEIR PRESENTATION.

AND THEY UTILIZE A LITTLE BIT OVER 100, 150. YEAH.

AND THEN WHAT ARE WHAT ARE THE MILEAGE? WHAT'S THE MILEAGE ANNUALLY OR FOR THE TOTAL LEASE? I CAN YEAH, THE THRESHOLD I CAN GET THAT FOR YOU.

IT DIDN'T SPECIFICALLY SAY IN THEIR PRESENTATION THAT THEY GAVE ME, BUT I'LL BE ABLE TO GET THAT TO YOU BECAUSE I DON'T.

IT ALMOST MAKES SENSE TO TO TRY IT WITH THE SRO.

THEY DON'T DRIVE A LOT, RIGHT? I MEAN, YEAH, I KNOW THAT WITH SOME OF THE HIGH MILEAGE OR THE LOW MILEAGE VEHICLES, IT MIGHT NOT BE GOOD. THAT'S WHY I PUT THE PATROL VEHICLES ON HERE, BECAUSE THOSE ARE THE HIGH MILEAGE VEHICLES THAT WE WOULD NEED TO GET NEW ONES EVERY COUPLE YEARS. I KNOW THAT FROM THE HEAVY EQUIPMENT LEASES THAT THE OURS THAT THEY HAVE, THEY WERE GIVEN.

THEY'RE LIKE 1350 FOR THE THE MOTOR GRADERS AND 3000 FOR THE EXCAVATORS.

NOW, I CAN TELL YOU, WE'VE HAD SOME STUFF FOR A LONG TIME AND WE HAVEN'T HIT THOSE HOURS YET.

[02:55:03]

EVEN IF IT'S LIKE 5000 A YEAR OR SOMETHING LIKE THAT, I KNOW SOME OFFICERS WILL BE ABLE TO MEET THAT.

LIKE SOME OTHER ONES, MAYBE NOT. SOME GO UP, SOME GO DOWN.

MAYBE CHIEF AJELLO WOULD BE ABLE TO TALK ON THAT A LITTLE BIT. YEAH, THAT'S PRETTY LOW. YEAH, I THINK THAT'S LOW. BUT WE MADE SOME BASELINE ASSUMPTIONS GOING INTO THIS ANALYSIS. I'LL SHARE THEM IN CASE YOU THINK OUR THINKING WAS OFF TO SOME NEW DIRECTION. BUT FIRST ASSUMPTION THAT THAT WE MADE WAS LOW MILEAGE VEHICLES OR SPECIALTY OUTFIT VEHICLES. PROBABLY WEREN'T GREAT CANDIDATE FOR LEASE OPPORTUNITY ONE, BECAUSE A REALLY LOW MILEAGE VEHICLE IS GOING TO HAVE A LONGER SERVICE LIFE IF WE'RE RATING IT IN TERMS OF ACTUAL USE AND WEAR AND TEAR IN SERVICE, ESPECIALLY VEHICLES WITH THE COST OF SPECIALTY OUTFITTING, LET'S SAY IT'S A COMMAND OR A BATTALION VEHICLE IN TERMS OF FIRE.

AGAIN, IT'S GOING TO HAVE A LOWER MILEAGE USE, PREDICTABLY, POSSIBLY.

AND THEN THE COST OF THAT OUTFITTING AND THE COST OF THE VEHICLE IS GENERALLY A HIGHER. SO WE HAVE WE HAVE A HIGHER LONG TERM VALUE OF THAT VEHICLE. SIMILARLY WITH BIGGER ASSETS LIKE A FIRE ENGINE, WHEN WE LOOK AT THE NUMBERS, THE DELTA ON THE RETURN, THEY DO LEASE FIRE ENGINES.

AND THE COST. IT MAKES NO SENSE NOT TO HAVE VALUE LEFT IN THE ASSET.

AND THEN THE SAME SORT OF PARADIGM EMERGE IN PUBLIC WORKS IF THEY'RE HIGH DOLLAR.

BUT LONG TERM THAT THAT TO SOMEONE'S POINT THE HOURS IS WHAT MATTERS NOT THE LENGTH OF YEARS WE'VE OWNED.

IT MAY NOT BE A GOOD CANDIDATE. SEAN'S GOING TO DIVE INTO THAT.

I WANT TO I DON'T WANT TO GET AHEAD OF HIS PRESENTATION, BUT THAT WAS SORT OF THE STARTING POINT. WE USED THAT. OKAY, WHAT MAKES THE MOST SENSE.

AND THEN IN THAT LIGHT, WE REACHED OUT TO ORLANDO.

WE REACHED OUT TO A FEW VEHICLE LEASING COMPANIES, I THINK THREE AND SOME OTHER VEHICLE USERS.

I THINK THE CITY OF COCONUT GROVE IS DOING SOME LEASING, AND WE REALLY FOUND TWO CATEGORIES CITIES THAT HAVE ENOUGH MONEY.

THEY'VE ROTATED THIS IN AS PART OF A FORCED REPLACEMENT, MAINTENANCE OFF THEIR BOOKS, ALL THESE WONDERFUL THINGS.

AND THEN WE'VE SEEN CITIES THAT ARE CASH STRAPPED.

AND THAT WAS SO THAT WAS THE LAST ASSUMPTION WE MADE. I THINK IF YOU'RE A CASH, SIGNIFICANTLY CASH STRAPPED ENTITY IN AN INTERIM PERIOD EXPECTING A RISE IN REVENUE, LEASING MAKES A LOT MORE SENSE. IF YOU'RE A CASH STRAPPED ENTITY WITH NOT A GREAT OUTLOOK ON YOUR FINANCES, LEASING BECOMES LESS OF AN ATTRACTIVE OPTION BECAUSE THEN WE'RE LOCKING INTO A LEASE ROTATION AND WE'RE LOSING.

SEAN'S GOING TO SHOW YOU WE'RE LOSING THE THE FIXED COST OF THE ASSET.

DEPENDING ON THE LENGTH AND THE ABILITY TO EXTEND THE LIFE OF THE ASSET IF WE NEED TO, IF WE'RE IF WE'RE BROKEN A YEAR AND WE JUST DON'T HAVE THE MONEY.

BUT AGAIN, JUST HIGH LEVEL ASSUMPTIONS. I'D LIKE TO LET SEAN FINISH PRESENTATION REAL QUICK, I GUESS, TO THAT POINT ABOUT. COCONUT GROVE IS A VERY SMALL CITY LIKE CITY OF ORLANDO IS REALLY SO LIKE MAY NOT MAKE THE BEST SENSE THAT WE'RE HUGE.

LIKE WE HAVE A TON OF ROADS. SO THESE GUYS ARE DRIVING A LOT.

SO I'M JUST CURIOUS WHAT LIKE THAT THAT MILEAGE STRETCH.

YEAH. AND THAT'S WHERE WE REACHED OUT TO SEVERAL ENTITIES. AND WE'RE STILL GETTING A LOT OF THAT MILEAGE DATA BACK. BUT WE'RE GIVING YOU THE BEST INFO WE'VE GOT. AND WHAT MAYBE TO YOUR TO OUR POINT. AND YOUR POINT IS WE CAN GUESS BECAUSE THE COSTS APPEAR TO BE SO SIMILAR, IT'S PROBABLY WORTH INVESTIGATING IN AN ACTUAL IN-PLACE PROGRAM AND SEEING WHAT OUR EXPERIENTIAL RELEVANCE ENDS UP BEING.

BUT BUT ANYWAY. THANK YOU. DOES THAT CONCLUDE YOUR QUESTION, COUNCILMAN HAMMER AND THAT COUNCILMAN LANGFORD? SO MY QUESTION ON THIS IS IT SAYS ADDITIONAL CAPITAL OUTFITTING.

SO YOU'RE TELLING ME THE COMPANY THAT WE LEASE FROM PAYS FOR THE LIGHT PACKAGE PAYS FOR THE TEN? YES, IT IS AN OPTION. THE ONLY THING THAT I SEEN FROM ORLANDO THAT THEY CHARGED EXTRA FOR FOUR WAS TO PUT LIKE THE BIG CRANES ON THE FRONT OF THE TRUCKS TO PULL PEOPLE OUT OF DITCHES AND STUFF LIKE THAT.

THEY DIDN'T HAVE THAT ON HAND, BUT ALL THE LIGHT BARS, THINGS LIKE THAT, WE CAN HAVE THAT AS AN OPTION.

SO IT'S AN EXTRA COST? NO, IT WOULDN'T BE AN EXTRA COST.

IT WOULD BE INCLUDED IN THE CONTRACT. OKAY. BECAUSE FROM WHAT I'M SEEING WITH.

I'M SORRY, I'M REALLY LOUD. SO FROM WHEN I WAS IN FLEET, WE PAY ABOUT $314 PER PER EVERY FOR EVERY MAIN, EVERY MAINTENANCE STOP THAT WE HAVE. AND THAT'S INCLUDING MAN HOURS, EVERYTHING ELSE.

ARE YOU SAYING THAT THE WHOLE TIME THAT WE HAVE THEM, WE DON'T PAY FOR ANY KIND OF MAINTENANCE WHATSOEVER? NO TYPE OF MAINTENANCE. THE ONLY THING THAT THEY DID SAY WAS ANY MAJOR REPAIRS HAD TO GET COVERED BY US.

AND THAT'S REPAIRS THAT ARE NOT UNDER WARRANTY.

I'M GUESSING WHAT ARE NEGLIGENT. OKAY. BECAUSE WE'RE LOOKING AT 680 A MONTH PER CAR, BASICALLY.

YEAH. AND I MEAN, THAT JUST I MEAN, AS LONG AS THERE'S AS LONG AS ALL THE ELECTRIC PACKAGE, THE THE YOU KNOW, THE WALL FOR THE BACK, EVERYTHING, ALL THAT'S INCLUDED IN THAT.

AND THOSE ARE ALL OPTIONS. BUT LIKE I SAID, I'M JUST GOING OFF OF THE WHAT CITICORP HAS WITH THE CITY OF ORLANDO.

OF COURSE, OUR CONTRACT MAY DIFFER. YEAH. BECAUSE I KNOW WHEN WE BUY THE CARS, WE ACTUALLY HAVE TO BUY THE CARS ALONE FROM SOMEBODY.

THEY DON'T OUTFIT THEM. AND I THOUGHT WE DID THEM IN-HOUSE WHETHER THEY DO SOMETHING DIFFERENT NOW.

BUT WE USED TO DO THEM IN-HOUSE AND WE ACTUALLY GOT ALL THE LIGHTS, EVERYTHING ELSE ON AN ACTUAL BID THROUGH, I THINK, MORGAN ELLIOTT. BUT WE GOT ALL THOSE AT A LOWER PAR OR AT A LOWER PRICE.

[03:00:06]

AND THAT'S WHY I WAS SAYING THE HOLISTIC LOOK, BECAUSE WHEN WE HAVE TO BUILD ALL OF THESE VEHICLES OURSELF, THAT TAKES AWAY FLEET FROM DOING MAINTENANCE ON POLICE VEHICLES, FIRE VEHICLES AND THE REST OF THE CITY.

SO IF THEY'RE SPENDING THEIR TIME BUILDING 40 POLICE VEHICLES, WE FEEL IT'S A BETTER ALLOCATION OF MONEY TO HAVE SOMEONE ELSE OUTFIT IT AND DELIVER TO US. READY TO GO? OKAY. YEAH. JUST WHEN WE GO THROUGH THERE, I WOULD DEFINITELY DOUBLE CHECK THE LIGHTS, THE JOB DESK, EVERYTHING IS IS ALL INCLUDED. GOT IT.

YES, SIR. COUNCILMAN. YEAH. SO YOU STARTED TO KIND OF ANSWER WHAT MY QUESTION WAS GOING TO BE, WHICH WAS GOING TO BE, YOU KNOW, WHAT HAPPENS IF WE CRASH ONE OF THE RELEASE VEHICLES AND THEN SO I'M ASSUMING WE'RE GOING TO HAVE TO PAY FOR IT, AND THEN IS IT GOING TO BE LIKE AT THE FULL PRICE OR IS IT GOING TO BE A SOME LESSER PRICE BASED OFF HOW LONG WE'VE HAD IT OR MILEAGE? HOW DOES THAT WORK? AND I THINK THIS IS A BIG PART OF WHAT I WILL GO OVER LATER IS THE, THE, THE RISK OF IT, BECAUSE MOST LIKELY THEY'LL SEND US TO A THIRD PARTY VENDOR AND THAT VENDOR COULD CHARGE US BASICALLY WHATEVER THEY WANTED.

WHEREAS IF WE WERE DOING IT IN-HOUSE, IT WOULD BE OUR PEOPLE DOING IT.

AND THAT'S WHY I SAY THAT THERE'S ALWAYS RISKS AND BENEFITS TO EACH WAY WE GO, AND I'M TRYING TO OUTLINE THAT AS WE GO THROUGH.

BUT I HAVE SOME INDIRECT BENEFITS AND INDIRECT COSTS THAT ARE COMING UP AS WELL.

AND AND JUST A TOUCH POINT TO THE WORK THAT THAT THE TEAM DID WAS USING EXAMPLES IN THE WORLD.

WE HAVE NOT OBVIOUSLY NEGOTIATED A CONTRACT. WE DIDN'T HAVE AUTHORIZATION OR FELT IT WAS OPPORTUNITY.

SO WHEN WE SAY MAYBE SAMPLE IT, IT'S YOU GUYS SAYING, YOU KNOW, LET'S GO NEGOTIATE A CONTRACT AND LOOK. BUT WE DIDN'T WANT TO SPEND THAT TIME.

OBVIOUSLY WE DIDN'T HAVE THE TIME YET. UNTIL WE GET A GENERAL SENSE, WHEN YOU SEE THE TOTALITY OF THE PRESENTATION, IF YOU EVEN THINK IT'S WORTH THE TROUBLE.

SO SOME OF THE DETAILS, WE JUST DON'T KNOW YET.

ALL RIGHT. COUNCILMAN JOHNSON, ANY QUESTIONS? YES. MAYOR CLARKSON, HOW MANY POLICE VEHICLES HAVE WE HAD THAT HAD ARE TOTALED OR HAVE BEEN TOTALED WITHIN THE PAST TWO YEARS OR SO? FOR THIS YEAR ALONE, IT'S BEEN THREE. I WOULD HAVE TO LOOK AT LAST YEAR, BUT I BELIEVE IT'S IS USUALLY ALWAYS UNDER TEN.

FROM WHAT I REMEMBER. THE CHIEF WANTS TO ANSWER.

HE MIGHT KNOW BASED ON LIKE, FLORIDA NUMBERS.

NO. SAY THAT AGAIN, COUNCILMAN JOHNSON. WE LOST HIM. YEAH, WE. I DON'T KNOW IF HE CAN HEAR US, BUT.

SO HE'LL BE COMING BACK. WE DIDN'T BUILD AN AVERAGE.

THAT'S A QUESTION I CAN'T ANSWER. WE CAN'T ANSWER TONIGHT WE LOOKED INTO THE LAST 12 MONTHS TO SEE THERE WAS THREE THAT WERE TOTALED.

I KNOW THERE'S BEEN OTHERS IN THE PAST, SO. BUT WE DIDN'T BUILD A CASE STUDY ON ON WHAT OUR AVERAGE LOSS IS.

OR CAN WE CAN WE DETERMINE BECAUSE ONE YEAR A TREND DOES NOT MAKE.

SO SO I DON'T KNOW THAT. WELL, IF A VEHICLE NEEDS TO BE REPLACED, WHETHER IT'S LEASED OR YOU STILL HAVE TO REPLACE IT.

SO YEAH, I THINK I'M MORE ON THE EMERGENCY OPTION PLAN.

I LIKE THE PURCHASE OPTION PLAN MYSELF. I DON'T THINK WE HAVE ENOUGH INTEL AND EXPERIENCE WITH LEASING THAT.

THAT'S WHERE I STAND. PERHAPS THIS TIME NEXT YEAR YOU'LL HAVE ADDITIONAL INTEL WHERE WE CAN MAKE A SOUND JUDGMENT ON EXPERIMENTING.

THAT THIS IS MY TAKE, THAT WE COULD GO DOWN THAT LANE AND SEE AND TRY IT.

BUT AT THIS POINT, I'M NOT COMFORTABLE TRYING TO GO AND AND MIX AND MATCH RIGHT NOW.

I WOULD THAT THAT'S WHERE I'M AT RIGHT NOW. THE QUESTION TO THAT AND A FLEET AUDIT WITH THAT CONSULTANT BE ABLE TO PROVIDE THIS KIND OF DATA. DO THEY HAVE THAT KIND OF EXPERIENCE. SO THAT WASN'T GOING TO BE THE PURPOSE OF OUR FLEET AUDIT.

THAT WAS JUST GOING TO BE OPERATIONS PARTICULARLY FOCUSED AROUND GAS USAGE AND WHERE THE GASOLINE GOES, MAKING SURE GAS GOES TO ASSIGNED VEHICLES, MAKING SURE USAGE SEEMS TO LINE UP WITH REALITY.

ON TOP OF THAT, WE'VE GOT A WHOLE HOST OF THINGS THAT DON'T HAVE ASSET NUMBERS, PROBABLY LIKE CHAINSAWS, WEED WHACKERS LAWN MOWERS.

IT WAS MORE GETTING OUR HANDS AROUND. HOW DO WE ENSURE THAT THE GAS BEING DISPENSED IS MATCHING UP WITH ACTUAL USE, AND WE'RE TRACKING EVERY GALLON MATCHED TO EVERY GALLON OF USAGE? I WILL SAY THAT THE INCOMING PUBLIC WORKS DIRECTOR HAS AN EXTENSIVE BACKGROUND IN WORKING ON FLEET AS A HOLISTIC ENTERPRISE, INCLUDING INTERFACING DIRECTLY WITH PUBLIC SAFETY, FIRE AND POLICE.

AND SO I THINK THAT'S A QUESTION THAT HE'S GOING TO BE ABLE TO HELP US GET MUCH FURTHER ON THAN WHERE WE ARE CURRENTLY. THANK YOU.

CARRY ON WITH YOUR PRESENTATION. DID YOU NEED ANYTHING FROM US AT THIS POINT? NO. AND I'M SORRY IF I MISLED. THE IDEA WAS IF WE DECIDE TO GO, ONCE YOU GET THROUGH THE PRESENTATION, IT WOULD BE IN NEXT YEAR'S BUDGET CYCLE.

NOT THIS YEAR. AND WE'RE SORT OF GIVING YOU A HIGH LEVEL.

HEY, EVEN IF WE DO IT AND WE FIND OUT THE PIECES START TO ALIGN, WE WOULD STILL RECOMMEND AN INCREMENTAL APPROACH JUST TO TEST THE ASSUMPTIONS AND MAKE

[03:05:06]

THANK YOU. CARRY ON MAUREEN. THANK YOU SIR. ALL RIGHT.

WE WENT OVER THAT THAT THAT. ALL RIGHT, SO NEXT TO THE HEAVY EQUIPMENT LEASE, THIS ONE WAS A LITTLE BIT SORRY, THIS ONE WAS A LITTLE BIT ON THE FENCE. IT'S KIND OF EXPENSIVE.

WHAT IS USUALLY IT'S USED FOR IS FOR IF WE HAVE A PROJECT THAT WE NEED EXTRA EQUIPMENT FOR, FOR A SHORT PERIOD OF TIME, WE CAN RENT THAT EQUIPMENT FOR A LONG TERM STRATEGY.

IT'S NOT REALLY GREAT, BUT I'LL GO OVER THE NUMBERS REAL QUICK.

THIS IS WHAT WE WOULD DO WOULD BE A MUNICIPAL LEASE FROM JOHN DEERE THROUGH DOBS.

NOW, THE THE AGREEMENT THAT I LOOKED AT WAS FROM LAKE COUNTY.

SO BASICALLY OUR LEASE EQUIPMENT WOULD HAVE A BASE COST OF ZERO IF WE LEASE IT, BECAUSE IT WOULD BE ON THE CONTRACT IF WE BOUGHT IT IN THE FUTURE, IT'S GOING TO BE AROUND 300 GRAND. SAME WITH THE EXCAVATOR.

ABOUT AROUND THE SAME AMOUNT. THE AVERAGE LIFE FOR THE LEAST EQUIPMENT YOU CAN DO A TWO YEAR OR A FOUR YEAR.

A FOUR YEAR IS MUCH CHEAPER, BUT USUALLY WE HAVE A CYCLE OF ABOUT EIGHT YEARS ON THE HEAVY EQUIPMENT.

THE TURNOVER COST LIKE I SAID BEFORE, ADDED HOURS AND NEGLIGENT REPAIRS WOULD BE UNDER THEM.

AND WE DO HAVE TO PAY A MAINTENANCE COST EVERY 500 HOURS.

SO IT'S LIKE, I BELIEVE $1,500 EVERY 500 HOURS ON IT.

BUT LIKE I SAID, WE'VE HAD VEHICLE OR HEAVY EQUIPMENT FOR YEARS AND WE'RE STILL UNDER ABOUT THREE, 3000 HOURS. SO THE ADDED HOURS, I BELIEVE, FOR THE MOTOR GRADER WAS 1450 AND IT WAS 3000 FOR THE EXCAVATOR AND FOR THE TURNOVER COST FOR THE CITY OWNED VEHICLE.

IT WOULD JUST BE INCLUDED IN THE AUCTION. I PLUGGED IN A SALVAGE VALUE, JUST AN AVERAGE OF WHAT WE'VE SOLD THINGS FOR.

BUT I WOULD LIKE TO NOTE AS WELL THAT THE THINGS THAT WE SELL IS A LOT OLDER THAN EIGHT YEARS USUALLY.

ALL RIGHT. SO THIS IS THE SAVINGS FOR. I'M SORRY SIR.

OH YES. YEAH. SO BASICALLY WHAT WE WOULD LIKE TO DO IS WE WOULD LIKE TO ESTABLISH A REPLACEMENT PROGRAM BASED ON HOURS OR MILEAGE INSTEAD OF YEARS IN SERVICE. NOW WE WOULD NEED A LITTLE BIT OF SOFTWARE.

HOPEFULLY OUR NEW ERP SYSTEM WILL BE ABLE TO DO THIS AND THEN USE A DEPRECIATION BY UNIT CYCLE TO ESTABLISH WHEN A VEHICLE OR PIECE OF EQUIPMENT NEEDS TO BE REPLACED.

WE THINK THAT THAT WOULD BE A LOT MORE EFFICIENT THAN ACTUALLY DOING AN AMOUNT OF TIME, BECAUSE AS YOU WERE SAYING EARLIER, I'VE SEEN VEHICLES PERSONALLY WHEN THEY WERE GETTING SURPLUS THAT WERE BEING DRIVEN BY THE PATROL OFFICERS THAT WERE 2008, THAT HAD LESS THAN 100,000 MILES, AND THEN I'VE SEEN SOME THAT HAD 180,000 MILES.

SO IT JUST VARIES DEPENDING ON THE OFFICER, WHAT THEY'RE DOING.

SO HERE. SO I BELIEVE OUR FLEET SOFTWARE FASTER ACTUALLY WOULD ACCOMMODATE THAT.

YEAH, I FIGURED I SAW WHAT YOU'RE CHUCKLING. YEAH.

SO WE DO HAVE A WE DO HAVE A FLEET SOFTWARE IN PLACE TO ACCOMMODATE THAT. WE'VE JUST NOT ACTIVATED OR USED THE MODULE. SO THAT'S SOMETHING WE'RE LOOKING INTO. THANK YOU. ALL RIGHT. SO THIS IS THE LEAST EQUIPMENT I USE. THE CHEAPEST CONTRACT THE 48 MONTHS.

AND AS YOU CAN SEE THERE'S NOT REALLY MUCH SAVINGS ON THERE.

THERE'S NO SAVINGS AT ALL. AND THEN I ALSO PUT IN THE SURPLUS REVENUE.

BUT THERE IS SOME INDIRECT BENEFITS FROM IT WHICH ARE GOING TO BE COMING UP AS WELL.

AND THIS IS THE EXCAVATOR. THIS ONE WAS REALLY BAD.

I MEAN, THIS ONE WAS NOT VERY ECONOMICAL. AS YOU CAN SEE, IT WOULD BE $264,000 IN THE HOLE FOR EIGHT YEARS. ALL RIGHT. SO THIS IS THE INDIRECT LEASE BENEFITS.

SO THIS IS WHAT I LIKE TO ADD. THESE ARE ALL THE PEOPLE THAT ARE INVOLVED FROM ACQUIRING THE EQUIPMENT OR THE VEHICLES ALL THE WAY TO THEM GETTING SURPLUS. NOW, IF WE GO THROUGH WITH THE LEASE, WE SAVE A LOT ON MAN HOURS.

SOME OF THESE PEOPLE WILL BE INCLUDED, BUT IT WON'T BE NEARLY AS BIG OF AN IMPACT AS IF WE WERE ACTUALLY PURCHASING THE VEHICLES.

SO THAT IS THE INDIRECT LEASE BENEFITS. ONE THING I LIKE TO, TO ALWAYS ADD IS SOMETHING THAT WE HAVE FIXED AT THE CITY IS WHEN WE USED TO SURPLUS STUFF, I WOULD FOLLOW A PALLET AND IT WOULD TAKE A COUPLE PEOPLE A COUPLE HOURS TO PALLETIZING THE STUFF.

WE'D SELL THE PALLETS AND WE'D GET $0.15 PER PALLET.

SO I LIKE TO LOOK AT THE MAN HOURS AS WELL. WHAT IS THE COST? LIKE THE CITY MANAGER SAYS, YOU DON'T WANT TO SPEND A DOLLAR FOR A DIME.

SO THAT'S ALL WHAT I LIKE TO ADD AS WELL. THE INDIRECT OWNING BENEFITS, THERE'S A LOT LESS RISK.

[03:10:03]

OWNING. RISING ACQUISITION COSTS. RISING SURPLUS COSTS.

SLOWER TURNOVER TIME. NO EXTRA VEHICLES ON HAND.

IT'S MANPOWER HEAVY. YOU HAVE A HIGHER FLEET LIFE AND YOU HAVE HIGHER MAINTENANCE COSTS.

LEASING RISKS. WE DON'T OWN THE FLEET. SO IMAGINE IF WE HAD 150 VEHICLES THAT WERE OWNED BY A VENDOR.

WE WOULD BE DEPENDENT ON THAT VENDOR SO THEY COULD PRETTY MUCH NAME THEIR PRICE AFTER WE HAD IT, BECAUSE WE CAN'T AFFORD TO BUY 150 POLICE VEHICLES ALL AT ONCE.

THE NEXT IS CONTRACT ISSUES, DIFFERENCES BETWEEN CITY OF ORLANDO, BETWEEN LAKE COUNTY WITH US.

THEY MIGHT NOT HAVE ANY VENDORS IN OUR AREA TO DO MAINTENANCE.

WE WOULD HAVE TO TAKE IT TO ORLANDO. THAT WOULD BE A LITTLE BIT MORE COST, A LITTLE BIT MORE TIME, MAN. HOURS. THE ADDED FEES, OF COURSE, GOING OVER THE MILEAGE, GOING OVER THE HOURS IF WE'D HAD ANY MAJOR REPAIRS.

AND THEN ALSO, I'D LIKE TO ADD THIS ONE IN HERE BECAUSE I'VE SEEN THIS BEFORE.

RISK OF VENDOR BANKRUPTCY WHERE THEY HAVE TO SELL THEIR ASSETS, AND IF WE DON'T HAVE THE MONEY TO BUY THE ASSETS FROM THEM, THEN WE LOST OUT OF OUR ENTIRE FLEET. ALL RIGHT.

THERE ARE SOME OTHER ALTERNATIVE OPTIONS. WE HAVE OUR INTERDEPARTMENTAL LEASES, PUBLIC WORKS UTILITIES GOING IN BETWEEN BORROWING VEHICLES, LEASING VEHICLES. NEXT IS CITY TO CITY LEASES.

THAT'S AN OPTION. COUNTY TO CITY LEASES IS WHAT ONE OF OUR EMPLOYEES MENTIONED TO ME THAT MIGHT BE VIABLE THE LAST TIME WE HAVE DONE THIS, THOUGH. THEY REQUIRED THAT THEIR DRIVER CAME, SO WE HAD TO PAY FOR THEIR DRIVER AS WELL.

YEAH. THEIR OPERATOR. LEASING FOR SPECIALIZED EQUIPMENT, WHEN NEEDED IS AN OPTION.

LIKE I SAID, IF WE'RE DOING ANY SPECIAL PROJECTS THAT ARE SHORT TERM, IT MIGHT BE A BETTER OPTION TO GO WITH A LEASE THAN TO GO WITH PURCHASING THE EQUIPMENT FOR A LONG PERIOD OF TIME, AND THEN ALSO RENTING EQUIPMENT IS A GOOD ONE.

THE POSSIBLE ISSUES WITH ALTERNATIVE LEASES. AVAILABILITY OF EQUIPMENT.

I'VE SEEN THIS PERSONALLY. WHEN I WAS DOING INVENTORY WITH UTILITIES, SOMETHING WENT DOWN.

WE HAD TO CALL SOMEBODY. THEY HAD TO GO ALL THE WAY TO TAMPA TO GET THE EQUIPMENT BECAUSE THERE WAS NONE AROUND HERE.

AND YOU GUYS FACTOR IN THE MAN HOURS. IF THE IF THE EQUIPMENT GOES DOWN AT FIVE AND 5 P.M., THEY GOT TO GO OUT. THE NEXT ONE IS IT'S LABOR HEAVY OWNERSHIP COMPLICATIONS, LIKE BASICALLY LIABILITY.

WHO PAYS FOR WHAT? WHO DOES THIS? ANOTHER BIG, HUGE ONE THAT A LOT OF PEOPLE DON'T TAKE INTO ACCOUNT IS THE MAINTENANCE, COMPATIBILITY. ALL OF OUR VEHICLES THAT WE HAVE IN OUR EQUIPMENT.

WE HAVE STUFF IN OUR STOREROOM. SO IF IT GOES DOWN, IF WE NEED TO DO MAINTENANCE, IF IT BREAKS, IF WE GO, SAY WITH JOHN DEERE AND WE DON'T HAVE ANY JOHN DEERE PARTS, THEN WE HAVE TO FILL OUR STOREROOM WITH JOHN DEERE PARTS SO THAT WE'RE ABLE TO ACTUALLY FIX THE STUFF IF WE NEED TO, IF IT'S NOT INCLUDED IN THE CONTRACT.

AND THEN THE LAST ONE I WANTED TO MENTION IS THE RISK OF CROSS-CONTAMINATION.

AND HERE'S THE FLORIDA STATUTES AND FLORIDA ADMIN CODES THAT FOLLOW THAT.

QUESTIONS. COUNSELOR. ANY QUESTIONS? NO, I MEAN REALLY JUST A STATEMENT.

I MEAN, I THINK YOU GOT EVERYONE STAFF JUST DID AN ABSOLUTE PHENOMENAL JOB GETTING PREPARED FOR TONIGHT'S MEETING AND JUST THE PRESENTATION.

AND JUST I KNOW TWO CITY MANAGERS HAD ONE ONE YEAR AND A MAJORITY NEW COUNCIL.

I KNOW IT'S NOT EASY. SO I MEAN KUDOS TO EVERY SINGLE ONE OF YOU.

COUNCILMAN HAMMER, HAVE WE THOUGHT ABOUT TRYING THIS IN DIFFERENT DEPARTMENTS? SAY THE BUILDING DEPARTMENT THAT DOESN'T HAVE A VEHICLE THAT IS USED SO HAZARDOUS, BASICALLY, FOR SOMEBODY THAT GOES AROUND AND JUST CHECKS METERS, SAY, A METER READER.

I MEAN, WOULDN'T THAT BE SOMETHING THAT WOULD BE LESS LIKELY TO GET INTO AN ACCIDENT AND BETTER ABLE TO KEEP CLEAN, TAKEN CARE OF? SEE IF IT WORKS. SO ARE YOU SAYING THAT AS A LEASING OPTION? USUALLY THE WAY WE LOOK AT IT IS BECAUSE OF THE TURNOVER.

WITH THE TWO YEARS HAVING LOW MILEAGE VEHICLES, WE CAN HAVE THEM A LOT LONGER.

SO WE ACTUALLY GET OUR MONEY'S WORTH OVER THE 7 OR 10 YEARS, DEPENDING ON THE MILEAGE WE GET.

WHEREAS WITH HIGH MILEAGE VEHICLES, THOSE ARE THE ONES THAT GET TORE UP REALLY FAST AND PUTTING THEM ON A TWO YEAR CYCLE WOULD BE A LOT BETTER FOR OUR OFFICERS AND FOR OUR CITIZENS. WELL, THE METER READERS PROBABLY. THEY PROBABLY DRIVE AS MUCH AS THE OF THE POLICE OFFICERS.

[03:15:05]

PART OF THE REASON WAS WE DIDN'T HAVE TIME TO EXPAND THE THINKING IN THAT.

PART OF THE REASON WAS THE EASIEST TO FIND AND MOST READILY AVAILABLE EXAMPLES.

FOR WHATEVER REASON, WE'RE GENERALLY FOCUSED AROUND PUBLIC SAFETY. AND SO AGAIN, GIVEN THE 30 DAYS, THAT'S THAT'S THE RABBIT TRAIL WE RAN DOWN TO JUST TRY TO GET A BASELINE OF INFORMATION. SO IT'S AN AWESOME QUESTION AND WE'LL PROBABLY CONTINUE TO LOOK INTO IT. BUT WE DIDN'T DO THAT WORK. SO YEAH, IT JUST SCARES ME WITH, WITH WITH WITH EMERGENCY VEHICLES.

IT'S I REALLY HATE TESTING ON EMERGENCY VEHICLES BECAUSE, YOU KNOW, THAT'S YOU KNOW, WE GOT TO COUNT ON THAT.

WE GOT TO COUNT ON THEM BEING THERE. AND AND I KNOW OUR FLEET IS GREAT.

WE USUALLY HAVE, YOU KNOW, 5 OR 6 GOOD BACKUPS, BUT I DON'T LIKE TESTING ON EMERGENCY VEHICLES.

COUNCILMAN. YEAH. THANK YOU. MAYOR. SO I ALSO JUST WANT TO SAY THANK YOU GUYS.

ESPECIALLY FINANCE. PHENOMENAL PRESENTATIONS TONIGHT.

AND TO ALL THE STAFF OVER THE PAST FEW MEETINGS IN PARTICULAR.

THE PRESENTATIONS AND THE DATA JUST BEEN REALLY GOOD.

SO THANK YOU GUYS VERY MUCH FOR ALL THE HARD WORK THAT YOU PUT IN.

AND WHAT I WANT TO SAY, THOUGH, IS I REALLY APPRECIATE THE CREATIVE THINKING THAT'S LIKE THE, THE DIRECTION THAT I WANTED TO GO AND WHY WE BROUGHT ON A NEW CITY MANAGER.

AND SO MR. MORTON AND ALL THE STAFF HAVE COME UP WITH GREAT IDEAS.

YOU KNOW, THIS IS THE TYPE OF CREATIVE THINKING THAT, THAT WE'D LOVE TO SEE.

JUST TRYING TO BOUNCE NEW IDEAS OFF AND SEEING IF WE CAN SAVE MONEY, IF IT MAKES SENSE THAT THE MATH MAKES SENSE AND NOT JUST, YOU KNOW, DOING THE OLD KIND OF STANDARD WAY BECAUSE THAT'S HOW WE DO THINGS.

SO AS FAR AS LEASING IN GENERAL I'M NOT OPPOSED TO LEARNING MORE ABOUT IT.

AND, AND, AND I DEFINITELY LIKE THE IDEA OF THE VEHICLES THAT WE DON'T USE VERY OFTEN.

SEEING, YOU KNOW, LOOKING INTO POSSIBLE LEASES FOR THOSE FOR, LIKE, THE POLICE AND STUFF.

I WOULDN'T BE OPPOSED TO YOU KNOW, I THINK YOU HAD A PROPOSAL OF, LIKE, 3 TO 5 VEHICLES JUST TO SEE WHAT THE CONTRACT WOULD LOOK LIKE.

OR KIND OF HOW THAT WOULD PLAY OUT. AGAIN, I'M NOT I'M NOT OPPOSED TO LEARNING MORE SO, BUT THAT'S THE MAIN THING.

I'D LIKE TO SEE THESE IDEAS AND CREATIVE SOLUTIONS COMING FORWARD.

THANK YOU. AND JOHNSON SAID NO COMMENT. AND IS HE A NO COMMENT? SAY AGAIN HIS CALLS KEEP DROPPING. OH COPY THAT.

SO I GUESS I'LL, I'LL. MISTER MORTON, DID YOU NEED FURTHER DIRECTION FROM COUNCIL? I DO NOT THANK YOU FOR LISTENING. AND THANK YOU FOR THE NOTICING HOW HARD STAFF'S BEEN WORKING.

REALLY APPRECIATE THAT. WELL, I'LL, I GUESS I'LL.

BEFORE WE ADJOURN, I'LL JUST SAY THE FOLLOWING, ARE TO EACH AND EVERY STAFF MEMBER.

YOU'VE NAVIGATED FIVE DIFFERENT PERSONALITIES UP HERE WITH FIVE DIFFERENT IDEAS, THOUGHTS, CHALLENGES. YOU'VE ALSO NAVIGATED THREE DIFFERENT CITY MANAGERS.

AND JUST TO TOUCH A LITTLE BIT ON WHAT DEPUTY MAYOR SAID, AND AND OUR SHIP IS SAILING IN A GREAT DIRECTION.

YOU'VE NAVIGATED EACH AND EVERY ONE OF US. WHAT WE SEE IS IMPORTANT FOR OUR CITY AND OUR PASSION.

AND YOU'VE WITHSTOOD IT ALL ALL THIS EVENING.

SO THANK YOU ALL FOR YOUR PARTICIPATION. AND I, I WILL NOT CONCLUDE WITHOUT GIVING ONE OF OUR MOST ACTIVE CITIZENS, MASTER CHIEF BATON FOR BEING HERE EACH AND EVERY TIME.

THESE ARE THE TYPE OF INDIVIDUALS THAT TRULY CARE ABOUT OUR CITY.

AND I COMMEND YOU, SIR. THANK YOU SO MUCH. THIS MEETING IS ADJOURNED.

THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.