BE READY. ALL RIGHT. ALL RIGHT. WELCOME, EVERYBODY TO CITIZEN ACCOUNTABILITY TASK FORCE.
[CALL TO ORDER]
[00:00:07]
THIS THIS DAY, THURSDAY, MAY THE 14TH. CALL THIS MEETING TO ORDER.FIRST ORDER OF BUSINESS IS THE PLEDGE OF ALLEGIANCE.
I WILL I'LL LEAD US, IF YOU DON'T MIND. 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.
PLAY BALL. ALL RIGHT. OH, WE'LL INITIATE THE THE ROLL CALL, MR. BECERRA. PRESIDENT VICE CHAIR FELIX HERE.
CHAIR STORY HERE. MR. GUM HERE, MR. RANDALL. HERE, MR. STEIN. HERE. THANK YOU. SO ENTERTAIN A MOTION FOR ADOPTION OF
[ADOPTION OF MINUTES]
THE OF MINUTES FOR LAST CALLED MEETING OF JANUARY, THE 2026 OR APRIL 23RD, 2026.SO MOVED. HAVE A SECOND. I'M NOT GOING TO SECOND I WASN'T HERE.
I'LL SECOND. SECOND. ALL RIGHT. IF THERE'S ANY DISCUSSION ADDS OR CHANGES TO THE MINUTES.
I WILL CALL A VOTE. ALL IN FAVOR OF ACCEPTING THE MEETING? MEETING MINUTES SAY I, I OPPOSED NO CARRIES UNANIMOUSLY.
[PRESENTATION(S)]
FIRST ORDER OF BUSINESS IS PRESENTATION. PATRICIA SMITH, CITY ATTORNEY OVERVIEW OF THE FLORIDA SUNSHINE STATE LAWS AND PUBLIC RECORD GOOD ACTS.I SENT OVER PRESENTATION FOR THE CAMERA FOR THE TV.
I HOPE THEY ARE ON IT SOMEWHERE. OR DO WE KNOW? DO WE HAVE IT? YEAH, I DO NOT. IF NOT, I HAVE MORE COPIES.
BUT I'D HAVE TO RUN UP AND GET THEM REAL QUICK.
CAN WE GET YOU A LITTLE MORE ON THE MIC? HOPE THAT'S BETTER.
THAT LOOKS LIKE THEM. YES, SIR. LET ME GIVE YOU THE CLICKER AND YOU CAN WORK THROUGH IT.
THANK YOU SIR. LET ME SEE IF THAT WORKS. OKAY, PERFECT.
SO WE ARE HERE TO TALK ABOUT FLORIDA'S SUNSHINE LAW AND FLORIDA'S PUBLIC RECORDS ACTS.
SO I'M GOING TO COME UP WITH WHAT I LIKE TO CALL THE INITIAL ISSUE.
I LIKE TO HIT THIS FIRST BECAUSE I KNOW HOW THE HUMAN ATTENTION SPAN WORKS.
AND THIS IS THE MOST IMPORTANT TAKEAWAY FROM TONIGHT'S PRESENTATION, WHICH IS THAT ALL COMMUNICATIONS REGARDING CITY BUSINESS MUST BE PRESERVED AND DO NOT DISCUSS CITY BUSINESS WITH OTHER MEMBERS OF THIS BOARD OR ANY OTHER BOARD OUTSIDE OF THE MEETINGS.
IF WE'RE GOING TO TAKE AWAY ANYTHING FROM TONIGHT'S MEETING, THAT'S WHAT I WANT YOU TO TAKE AWAY FROM THIS, BECAUSE THAT IS THE MOST BROAD SPECTRUM WAY TO KEEP YOU GUYS SAFE ON THIS ISSUE.
SO LET'S DIVE INTO IT. FLORIDA SUNSHINE LAW. THIS IS THE RIGHT OF PUBLIC ACCESS REGARDING TO GOVERNMENT. AND IT'S APPLICABLE TO ANY GATHERING, WHICH IS TWO OR MORE MEMBERS OF THE SAME BOARD TO DISCUSS SOME MATTER WHICH MAY BE FORESEEABLY TAKEN ON BEHALF OF THE CITY. BASIC REQUIREMENTS MEETINGS OF PUBLIC BOARDS MUST BE OPEN TO THE PUBLIC.
IT MUST ALSO BE AT A LOCATION WHICH IS ACCESSIBLE TO THE PUBLIC AS WELL.
OPEN TO THE PUBLIC MEANS OPEN TO ALL WHO CHOOSE TO ATTEND.
[00:05:07]
ISSUE. WE MAY NOT HOLD PUBLIC MEETINGS AT A PLACE THAT'S OUTSIDE THE BORDERS, THE BOUNDARIES OF THE CITY. AT A PLACE WHICH DISCRIMINATES IN ANY WAY EFFECTIVELY GENDER, AGE, RACE, CREED, COLOR, NATIONAL ORIGIN, ECONOMIC STATUS, OR UNREASONABLY RESTRICTS PUBLIC ACCESS OR IN A PRIVATE HOME.MINUTES MUST BE TAKEN. A RECORDING IS NOT REQUIRED.
ALTHOUGH I DO KNOW WE BROADCAST MOST OF THESE AND RECORD THEM.
MINUTES BECOME THE OFFICIAL RECORD OF THE PROCEEDING AND THEREFORE SHOULD BE CAREFULLY REVIEWED FOR ACCURACY BEFORE APPROVED, WHICH WE JUST DID. ONE WAY COMMUNICATIONS, ONE WAY COMMUNICATIONS.
THEY ARE PERMITTED. BUT AS I HAVE PUT THERE IN BOLD, THEY ARE NOT ENCOURAGED AND DO NOT RESPOND.
SO IF ONE OF YOU SENDS OUT A ONE WAY AN EMAIL TO THE REST, I WOULD DISCOURAGE THAT.
BUT IF YOU RECEIVE IT, DO NOT RESPOND TO IT. IT'S JUST A RECEIVED EMAIL.
THIS INCLUDES PERSONAL PHONES AS WELL. NOT JUST CITY ISSUED PHONES OR CITY ISSUED EMAILS, BUT IF YOU WIND UP DISCUSSING CITY BUSINESS ON YOUR PERSONAL PHONE THAT COULD BECOME A PUBLIC RECORD.
ONE TIME WHEN I WAS A, SEVERAL YEARS AGO AT A DIFFERENT JOB, I HAD THE MISFORTUNE OF HAVING TO TEXT A CLIENT AND I WORKED FOR THE GOVERNMENT. I HAD TO TEXT A CLIENT FROM MY PERSONAL PHONE AND WHEN WE.
WE EXCHANGED A LOT OF TEXTS, AND BEFORE I LEFT THAT JOB, I HAD TO PROVIDE A RECORD.
PHOTOGRAPHS, SCREENSHOTS, EVERYTHING OF THAT TEXT CONVERSATION IN CASE ANYTHING EVER CAME UP ON IT.
SO EVEN TEXTS THAT REGARDS GOVERNMENT BUSINESS ON YOUR PERSONAL PHONES CAN BECOME PUBLIC RECORD.
POSITION PAPERS ARE PERMISSIBLE AGAIN. YES, SIR.
I JUST WANTED TO NOTE THAT I WRITE. I WRITE ABOUT THE CITY.
SO IF YOU READ WHAT I WRITE, DON'T COMMENT ON IT BELOW OR ON SOCIAL MEDIA OR ANYTHING ELSE.
BUT IT'S GOING TO BE OUT THERE. YEAH. YOU PUBLIC ON YOU PUBLIC.
YOU HAVE A PUBLIC EMAIL. OKAY. AND ON AN EMAIL, BUT A NEWS SITE, RIGHT? OKAY. AND POSITION PAPERS ARE PERMISSIBLE SO LONG AS THERE'S NO RESPONSE FROM OTHER MEMBERS.
HOWEVER, THE ATTORNEY GENERAL HAS ADVISED TO POSTPONE ACTION ON CONTROVERSIAL MATTERS COMING BEFORE A BOARD AT A MEETING WHERE THE PUBLIC HAS NOT BEEN GIVEN NOTICE. PENALTIES ACTIONS TAKEN IN VIOLATION OF THE SUNSHINE LAW IS VOID IF A BOARD TAKES INDEPENDENT FINAL ACTION IN THE SUNSHINE.
THAT DECISION MAY STAND. YOU CAN ALSO FACE A NON-CRIMINAL INFRACTION OF A FINE OF UP TO $500 AND POTENTIALLY FACE A SECOND DEGREE MISDEMEANOR CRIMINAL CHARGES.
ALL RIGHT. SO THAT IS THE PRESENTATION ON THE FIRST SECTION ON THE FIRST SECTION ON THE SUNSHINE.
IS THERE ANY OTHER QUESTIONS ABOUT MEETINGS OR HOW THEY WORK IN TERMS OF SUNSHINE? OKAY. PERFECT. WE WILL MOVE INTO FLORIDA'S PUBLIC RECORD ACT.
THERE ARE VERY FEW EXEMPTIONS TO THAT. AND SO WE'RE GOING TO GO OVER THAT RIGHT HERE.
EVERY PERSON WHO HAS CUSTODY OF A PUBLIC RECORD SHALL PERMIT THE RECORD TO BE INSPECTED AND COPIED BY ANY PERSON DESIRING TO DO SO AT ANY REASONABLE TIME, UNDER REASONABLE CONDITIONS AND SUPERVISION OF THE CUSTODIAN OF PUBLIC RECORDS OR THE CUSTODIANS DESIGNEE, THAT IS THE FLORIDA STATUTE ON IT. SO WE ALL HAVE A DUTY TO PROVIDE PUBLIC RECORDS IF WE GET A REQUEST FOR THEM.
[00:10:08]
OF APPOINTED BOARDS. CORRESPONDENCE PREPARED OR RECEIVED BY MEMBERS OF BOARDS.TEXT MESSAGES. EMAILS. FACEBOOK. INSTAGRAM. REDDIT.
YOUTUBE. ANY OTHER SOCIAL MEDIA PAGES THAT ARE RELATED TO OFFICIAL CITY BUSINESS.
ANYTHING YOU POST ON THOSE RELATED TO CITY BUSINESS CAN WIND UP BEING A PUBLIC RECORD.
SO I ALWAYS LIKE TO POINT OUT, I DON'T KNOW WHAT ALL THE LATEST SOCIAL MEDIA THINGS ARE, BUT IF THERE'S A SYSTEM WHERE, YOU KNOW, MESSAGES ARE DELETED AFTER A CERTAIN AMOUNT OF TIME THAT WOULD BE DELETING PUBLIC RECORDS, AND THAT WOULD BE IN VIOLATION OF FLORIDA STATUTE TO PLACE THEM ON THEIR.
PUBLIC RECORDS INCLUDE ALL DOCUMENTS, REGARDLESS OF ANY PHYSICAL FORM, CHARACTERISTICS, OR MEANS OF TRANSMISSION MADE OR RECEIVED PURSUANT TO LAW OR IN CONNECTION WITH THE BOARD'S OFFICIAL BUSINESS.
ANYTHING THAT IS USED TO PERPETUATE, COMMUNICATE, OR FORMALIZE KNOWLEDGE PCF.
WE HAVE ADOPTED A PUBLIC RECORDS MANAGEMENT POLICY AND PROCEDURE THAT IMPLEMENTS ESTABLISHED RETENTION SCHEDULES AND DISPOSAL PROCEDURES FOR PUBLIC RECORDS. THE GOAL OF THIS IS TO BALANCE THE CITY'S NEED TO MANAGE SORT AND ACCESS PUBLIC RECORDS WITH THE PUBLIC'S RIGHT TO REVIEW RECORDS ON A TIMELY ISSUES RELATED TO OFFICIAL BUSINESS.
THE CITY CLERK'S OFFICE MAINTAINS AN UP TO DATE SCHEDULE FOR ANY RETENTION OF DOCUMENTS, AND THEY NEED TO BE CONSULTED ON RETENTION ISSUES. AND THIS COMES BACK TO SOCIAL MEDIA AS WELL.
THESE ARE PUBLIC RECORDS AND ARE SUBJECT TO DISCLOSURE.
IN THE ABSENCE OF ANY KIND OF STATUTORY EXEMPTION.
PERSONAL NOTES. SO THINGS YOU MIGHT JOT DOWN FOR YOURSELF AT A MEETING.
THERE'S NO UNFINISHED BUSINESS EXCEPTION. SO IF SOMETHING IS CONTINUING ON JUST BECAUSE IT'S CONTINUING ON OR GOING OVER SEVERAL MEETINGS, IT DOESN'T MEAN THAT IT'S EXEMPT FROM PUBLIC RECORDS.
IF A DOCUMENT IS PREPARED IN CONNECTION WITH OFFICIAL BUSINESS, OR ITS PURPOSE IS TO PERPETUATE KNOWLEDGE, THAN A DOCUMENT IS A PUBLIC RECORD. RESPONDING TO A REQUEST.
SO IF YOU GET A REQUEST, YOU NEED TO ACKNOWLEDGE RECEIPT OF THE REQUEST WITHIN 24 HOURS.
IN WRITING, IF POSSIBLE, AND ALERT THE CITY CLERK'S OFFICE.
WHICH I SAID, I SAID IF POSSIBLE, IF SOMEBODY PERSONALLY TELLS YOU YOU KNOW, PUBLIC RECORDS REQUESTS CAN TAKE A LOT OF FORMS. BASICALLY THERE'S NO ONE SINGLE WAY TO DO IT.
SO, BUT I IMAGINE USUALLY THEY'RE GOING TO BE MADE VIA EMAIL.
UNLESS IT'S PERHAPS DIRECTED SPECIFICALLY TO YOU.
AGAIN, THE CITY CLERK'S OFFICE IS THE ONE WHO TYPICALLY KEEPS TRACK OF HOW MUCH THAT'S GOING TO COST, HOW MANY MAN HOURS THAT'S GOING TO TAKE. EXEMPTIONS.
THERE ARE NOT MANY. MOST COMMON EXEMPTION IS SOCIAL SECURITY NUMBERS AND PERSONAL INFORMATION OF POLICE OFFICERS, FIRE CODE ENFORCEMENT JUDGES AND THEIR FAMILIES, ALONG WITH A FEW LIMITED CRIMINAL BASED EXEMPTIONS AS WELL.
[00:15:02]
YOU WOULD BRING THAT TO US TO SEE IF THERE'S A POSSIBLE EXEMPTION.OH. AND IF A CUSTOMER LEAVES A RECORD OR PART IS EXEMPT, THEY MUST STATE THE BASIS FOR THE EXEMPTION, INCLUDING THE STATUTORY CITATION UPON REQUEST.
A LOT OF TIMES WE GET CONTRACTS, FOR EXAMPLE, THAT I REVIEW WHERE THE COMPANY IS SENDING THE CONTRACT SAYS YOU WILL KEEP OUR STUFF CONFIDENTIAL. AND I ALWAYS RESPOND AS PART OF MY CONTRACT REVIEW.
WE CANNOT KEEP ANYTHING PRIVATE HERE. EFFECTIVELY AS A CITY, AS A GOVERNMENT ENTITY IN THE STATE OF FLORIDA PRETTY MUCH EVERYTHING YOU'RE GOING TO HAVE IS OPEN TO PUBLIC RECORD INSPECTION. THE OTHER MAJOR EXCEPTION TO THIS IS GOING TO BE ANY FEDERAL LAW ISSUES. IF THERE'S A FEDERAL STATUTE THAT REQUIRES SOME FORM OF CONFIDENTIALITY.
THEN THOSE RECORDS REMAIN CONFIDENTIAL AND MUST NOT BE PRODUCED.
AND I HAVE NOT RUN INTO THAT VERY OFTEN HERE.
ASIDE FROM DEALING WITH A FEDERAL, YOU KNOW, ISSUE, CONSEQUENCES OF NONCOMPLIANCE WITH THE FLORIDA PUBLIC RECORDS WE COULD FACE POTENTIAL CRIMINAL PENALTIES, REMOVAL FROM OFFICE, NON CRIMINAL INFRACTIONS, ATTORNEY'S FEES, CIVIL ACTIONS, CORRECTIVE ACTIONS AND DAMAGES.
SO THE STATE OF FLORIDA TAKES THIS VERY SERIOUSLY.
CIVIL PENALTIES FOR NONCOMPLIANCE. THE PERSON WHO HAS BEEN, YOU KNOW, POTENTIALLY HAD IS NOT HAVING THEIR PUBLIC RECORDS RESPONSE ANSWERED IS ENTITLED TO IMMEDIATE HEARING.
THERE MAY BE A WRIT TO COMPEL PERFORMANCE OR AN INJUNCTION.
THEY MAY ORDER A 48 HOUR COMPLIANCE AND THAT PERSON MAY BE ENTITLED TO FEES AND COSTS.
SO ONCE THE COURT GETS INVOLVED THINGS MIGHT BECOME MORE EXPENSIVE FOR US.
CRIMINAL PENALTIES. A PUBLIC OFFICER WHO KNOWINGLY VIOLATES THE PROVISIONS OF 11907 FLORIDA STATUTES IS SUBJECT TO SUSPENSION AND REMOVAL OR IMPEACHMENT, AND COULD BE GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE.
THAT IS FIRST DEGREE MISDEMEANOR, PUNISHABLE BY FINES UP TO $1,000 OR ONE YEAR IN JAIL.
IT SAYS, I NEED TO FIX THAT TO JAIL OR BOTH. SO WHEN YOU GET A PUBLIC RECORDS REQUEST, YOU NEED TO ASK YOURSELF, OH, AND THIS, THIS IS FOR BOTH WAS A MEETING SET UP ACCORDING TO ALL THE PUBLIC MEETING REQUIREMENTS? DOES IT LOOK LIKE I MIGHT BE ENGAGED IN IMPROPER COMMUNICATION? HAVE WE PROVIDED ALL INTERESTED MEMBERS OF THE PUBLIC THE OPPORTUNITY TO BE HEARD? AND HAVE WE EXPLAINED OURSELVES SUFFICIENTLY? SO DECISIONS AND REASONS ARE CLEAR. SO THERE ARE SOME QUESTIONS TO CONSIDER WHEN YOU'RE DOING FLORIDA SUNSHINE OR PUBLIC RECORDS.
ALL RIGHT. SO THAT IS THE END OF THE PRESENTATION.
IT'S PRETTY STRAIGHTFORWARD. BUT OF COURSE THERE IS A LOT OF INFORMATION IN IT.
SO DO YOU HAVE ANY QUESTIONS REGARDING IT? ANYTHING YOU WANT TO ASK ME ABOUT PUBLIC RECORDS OR SUNSHINE LAW? ANY QUESTIONS FROM THE BOARD? NO. ALL RIGHT. THANK YOU.
WELL, THANK YOU VERY MUCH FOR YOUR TIME AND ATTENTION TO THIS.
FANTASTIC. THANK YOU. WE'LL MOVE TO THE PUBLIC COMMENT PORTION OF THE OF THE MEETING.
[PUBLIC COMMENTS]
ANY PUBLIC COMMENT, PLEASE COME FORWARD. BILL BATTEN, 586 OCEAN SPRAY STREET, SOUTHWEST. THE QUESTION I DIDN'T HAVE ANY QUESTIONS ORIGINALLY, BUT AFTER LISTENING TO THE SUNSHINE PRESENTATION, I THINK IT WAS ON SLIDE NUMBER TWO SAID, DO NOT DISCUSS ANY BOARD INFORMATION.RIGHT. IT DIDN'T SAY, WERE YOU. I UNDERSTOOD AMONGST YOURSELVES, BUT ACCORDING TO THAT MEANS I COULD NOT CALL YOU OR SOMETHING AND ASK YOU SPECIFIC QUESTIONS. IS THAT WHAT THAT WAS STATING? I OR WHOEVER CAN ANSWER IT.
THE I, I BELIEVE YOU CAN STILL CALL AN INDIVIDUAL MEMBER.
[00:20:06]
INDIVIDUAL MEMBERS CANNOT TALK AMONG THEMSELVES, BUT THEY CAN CERTAINLY TALK TO ANY CITIZEN RESIDENT PERSON WHO'S NOT ON THE BOARD.[OLD BUSINESS]
FORCE BYLAWS. VICE CHAIR. FELIX. THERE WAS SOME CONVERSATIONS LAST WEEK ABOUT A COUPLE OF ITEMS AND HAVE ANY OTHER INPUT OR. NO I BELIEVE NOT NOT REALLY NOTHING TO, TO ADD TO SOME OF THE RECOMMENDATIONS, I BELIEVE THE PROCESS IS TO BRING IT BEFORE COUNCIL BECAUSE THEY, THEY DUE TO EXISTING ORDINANCE.I DON'T THINK I DON'T HAVE ANYTHING TO ADD. FURTHERMORE, AND TO RECAP, I THINK FROM MY RECOLLECTION AND TELL ME IF I WAS IN IF I'M WRONG, BUT VICE CHAIR BROUGHT UP WE, OUR BYLAWS STATE THAT WE HAVE A A MONTHLY MEETING FOR 12 MONTHS THROUGH A PERIOD. THERE WAS SOME, NO MORE THAN THREE MISSED MEETINGS AT A TIME, FIVE TOTAL MISSED MEETINGS THROUGH A CALENDAR YEAR, SUBJECT TO REMOVAL FROM THE BOARD. ONE OF THE REQUESTS WERE TO POTENTIALLY REDUCE THE TOTAL NUMBER OF MEETINGS THROUGH THROUGHOUT THE YEAR.
AND SO WE COULD MAYBE HAVE A DISCUSSION ON, ON THAT POTENTIALLY.
IT'S MY OPINION UNTIL WE KNOW WHAT THE SCOPE OF WHAT WE'RE GOING TO BE DEALING WITH FROM BEING, THIS IS THE THE FIRST, THE FIRST BOARD IS FORMED IN THIS TASK FORCE.
I'M NOT ENTIRELY SURE HOW MUCH BUSINESS IS GOING TO COME.
AND I WOULD HATE. AND SINCE PART OF THE RULES THAT WE CAME UP THAT THAT THE BYLAWS THAT WE ABIDE BY IS OR WE AGREED TO WAS A THREE HOUR WINDOW FOR THE MEETING. MY WORRY IS DAYS THAT WILL MIGHT, MIGHT EXTEND, EXPAND OR EXTEND MORE THAN THREE HOURS. WE, WE END UP HAVING TO CARRY IT OVER TO THE NEXT MEETING.
SO LONG STORY SHORT IS I DO LIKE THE IDEA OF POTENTIALLY LOOKING AT LIMITING MEETINGS SO WE DON'T WASTE EVERYBODY'S TIME FOR FIVE MINUTE CONVERSATIONS. BUT I ALSO WANT TO MAKE SURE WE LEAVE ENOUGH BANDWIDTH FOR MEETINGS FOR ACTUAL BUSINESS. AND BECAUSE WE REALLY DON'T KNOW WHAT'S GOING TO BE THROWN OUR WAY AT THIS POINT.
SO, MR. CHAIR, IF I MAY JUST JUST TO RECAP, SO BUT BY THE WAY, EVERYTHING IS LISTED ON THE ON THE MINUTES LAST MEETING MINUTES PARAGRAPH TWO. SO YOU SPEAK IN REGARDS OF THE CURFEW, RIGHT.
THE RECOMMENDATION IS TO THE CURFEW FOR ALL MEETINGS SHALL BE 9 P.M.
EXCEPT THAT UPON A MOTION FOR EACH 30 MINUTES CAN BE ADDED.
I THINK IT'S A FAIR WE CAN ALL WE HAVE THAT OPTION TOO, AS LONG AS WE HAVE ENOUGH, ENOUGH MEMBERS IN AGREEMENT TO EXTEND THE MEETINGS FOR 30 MINUTES INCREMENTS. AND ALSO JUST A QUICK RECAP, THE RECOMMENDATION AS FAR AS TO LIMIT THE MEETING'S NUMBER OF MEETINGS PER YEAR TO A MINIMUM OF EIGHT MEETINGS PER YEAR.
SO IT'S ALWAYS INCUMBENT ON TO THE CHAIR. WE CAN ALWAYS CALL ADDITIONAL MEETING.
WE SAID THE MINIMUM, THE REALITY OF THE MATTER IS FISCAL YEAR START OCTOBER 1ST.
I, I DON'T SEE A REASON WE SHOULD MEET HAVE TO MEET IN OCTOBER, NOVEMBER, DECEMBER, BECAUSE REALLY EVEN STAFF DON'T START RECONVENE, STARTING A CONVERSATION ABOUT FISCAL YEAR FOLLOWING FISCAL YEAR UNTIL I BELIEVE FEBRUARY.
SO THAT THAT'S. I STILL STAND BY THAT. I THINK THAT THAT'S A THAT'S THE DIRECTION WE SHOULD GO.
MR. FELDMAN, IS IT WHERE EVEN THOUGH IT'S A SCHEDULED MEETING, CAN SCHEDULED MEETINGS BE CANCELED? THEY CAN. AND THE CHAIR AND I HAD A CONVERSATION ABOUT THIS THE OTHER DAY ON THERE.
[00:25:06]
NEED TO MEET. AND I THINK AS YOU'RE AT LEAST FOR THE FIRST FEW MONTHS UNTIL YOU START FEELING WHAT YOUR VOLUME OF WORK IS GOING TO BE AND WHAT THE TOPICS THAT YOU WANT TO DISCUSS.YOU KNOW, WE CAN SEE WHAT THE RHYTHM OF THE MEETINGS WILL NEED TO BE.
SO TO CHANGE IT WOULD REQUIRE THE THE CITY COUNCIL TO ADOPT AN ORDINANCE ON TWO READINGS.
SO IT'S GOING TO BE SEVERAL MONTHS FROM NOW BEFORE THAT CHANGE COULD EVEN EFFECTUATE.
SO MY, MY SUGGESTION IS TAKE SOME TIME, SEE HOW THE MEETINGS ARE GOING, WHAT YOUR AGENDAS ARE GOING TO LOOK LIKE, AND THEN IF NECESSARY, REVISIT. BUT WE WILL BE VERY JUDICIOUS ON CALLING MEETINGS.
THAT'S NOT A GOOD USE OF ANYBODY'S TIME. SO YOU KNOW, WE AT LEAST I RECOGNIZE THAT.
I THINK THE CHAIR RECOGNIZES IT, TOO, AND NOBODY'S JUST GOING TO CALL YOU TOGETHER TO CHAT.
AND ONE FOLLOW UP. ANY BOARD MEMBER COULD ADDRESS THE COMMISSION, THE CITY COUNCIL FOR THE REQUESTING OF THAT OF ANY CHANGES TO TO BOARD, TO OUR BOARD'S BYLAWS AND AND ALSO TO WE'LL BE CONSCIOUS OF HOLIDAY SEASON AND, YOU KNOW, DON'T WANT TO YOU KNOW, WE RECOGNIZE THAT THERE ARE TIMES THAT PEOPLE WANT TO BE WITH FAMILY.
AND WE'RE NOT GOING TO CALL A MEETING JUST TO HAVE A MEETING AS WELL.
YEAH. OKAY. FANTASTIC. ANY OTHER DISCUSSION ON OLD BUSINESS? ALL RIGHT. WE'LL WE'LL MOVE. I JUST WANTED TO ADD, IF I MAY, CHAIR, LIKE I SAID, THE SOLE PURPOSE IS TO, FOR PLANNING PURPOSES. AS LONG AS WE, WE HAVE TO BE MINDFUL IF, IF WE FORESEE A MEETING GOING TO BE CANCELED, JUST GIVE PEOPLE AMPLE TIME, YOU KNOW, PLAN AHEAD.
NO, IT WOULD BE MY INTENT TO MAKE THAT DECISION 3 OR 4 WEEKS PRIOR TO A MEETING.
OKAY. THANK YOU. THANK YOU. ALL RIGHT. THANK YOU.
ANY NEW BUSINESS FOR THIS BOARD TO. YES, MA'AM.
I WAS JUST GOING TO SAY NOT HAVING MEETINGS FROM OCTOBER TO THE FIRST OF THE YEAR, EVEN THOUGH THEY'RE NOT WORKING ON THE BUDGET AT THAT TIME.
IT'S MY UNDERSTANDING THAT IT'S UP TO US TO REVIEW WHAT WE WANT TO SEE IN THE BUDGET.
THANK YOU. DOES THEY FROM A, FROM A BUDGET PLANNING STANDPOINT, CAN YOU GIVE A QUICK TIMELINE OF EVENTS OF ONCE BUDGETS ARE PASSED? WHAT IS THE GENERAL TIMELINE OF ONCE DEPARTMENTS ARE STARTING THEIR PROCESS TO PUT TOGETHER? AND THEN YOU KNOW, THE TIMELINES THROUGHOUT THE YEAR, GENERALLY IN THE BUDGETS THAT I'VE DONE IN THE PAST, I DON'T WANT TO SPEAK FOR THE MANAGER HERE. EVERYBODY HAS THEIR OWN METHOD AND MADNESS TO PUTTING BUDGETS TOGETHER.
BUT I GENERALLY STARTED HAVING DEPARTMENTS START THINKING ABOUT THEIR BUDGETS IN JANUARY ON THERE.
AND I PROVIDED THEM INPUT PROBABLY IN LATE NOVEMBER, DECEMBER.
I USED TO CALL IT MY CHRISTMAS PRESENT TO THEM ON THERE, BUT YOU KNOW, GENERALLY JANUARY, FEBRUARY, MARCH IS WHEN THE BUDGET'S GOING TO BE CREATED.
THANK YOU. ANYTHING ELSE? I JUST WANTED TO MAKE A COMMENT THAT MAYBE WE CAN REALLY SEE THAT EIGHT MONTH MANDATE BECAUSE WE STARTED LATE. THIS IS REALLY OUR FIRST MEETING.
THIS WOULD APPLY, I GUESS, IF WE START HAVING THE FIRST MEETING IN JANUARY AND WORK OUR WAY THROUGH, AS OPPOSED TO LIKE TRYING TO SAY WHEN WE NEED TO WORK.
[00:30:02]
BUT THANK YOU FOR YOUR INFORMATION. THAT'S HELPFUL.THANK YOU. ALL RIGHT. IF THERE'S NOT HEARING ANY OTHER DISCUSSIONS OF OLD BUSINESS.
IS THERE ANY NEW BUSINESS TO DISCUSS FROM THE BOARD?
[NEW BUSINESS]
I HAVE A PRESENTATION UNDER NEW BUSINESS. THAT WILL BE THE HIGHLIGHT OF YOUR EVENING THERE.I'M EXCITED ABOUT IT. SO ANYTIME YOU'RE READY, I'M HAPPY TO DO THAT.
YEAH. GO AHEAD. OKAY, SO LET'S TALK ABOUT FINANCE AND AND HOW IT PARTICULARLY APPLIES TO THE, TO THIS TASK FORCE AND AND THE CITY OF PALM BAY.
SO WHY THIS MATTERS TO YOU? SO UNDER THE ORDINANCE, 26-03, YOU'RE CHARGED WITH REVIEWING THE CITY'S BUDGET AND ADVISING THE COUNCIL ON FISCAL PRIORITIES.
TO DO THAT WORK CREDIBLY, YOU ARE GOING TO NEED TO UNDERSTAND WHERE THE MONEY COMES FROM AND HOW IT IS CONTROLLED AND WHAT LEVERS NEED TO BE PUSHED IN ORDER TO EFFECTUATE DOLLARS COMING INTO THE BUDGET.
SO THE REVENUE IS IS LAYERED. PALM BAY HAS SOME UNIQUE GUARDRAILS THAT WE'RE GOING TO TALK ABOUT.
AND BREVARD COUNTY ITSELF IS A SPECIAL CASE AS IT PERTAINS TO WATER AND SEWER SURCHARGES.
SO TODAY WE'RE GOING TO TALK A LITTLE BIT ABOUT THE FOUNDATIONS OF REVENUE.
FLORIDA CONSTITUTION, HOME RULE AUTHORITY WHAT'S AUTHORIZED BY LEGISLATURE, LOCAL OPTION TAXES, THE PALM BAY CHARTER, ARTICLE SIX, THE BREVARD COUNTY WATER SURCHARGE LAW, AND WHAT THIS ALL MEANS TO THE CATF.
AND AS I GO THROUGH THIS, BECAUSE I'VE BEEN DOING THIS FOR A LONG TIME.
SO SOME OF IT IS SECOND NATURE TO ME. BUT IF YOU HAVE QUESTIONS, OKAY, JUST INTERRUPT ME.
OKAY. I USED TO BE A CITY MANAGER. I'M USED TO BEING INTERRUPTED, SO JUST FEEL FREE TO, TO CHIME IN AND ASK THE QUESTIONS YOU KNOW, RESPECTFULLY GO THROUGH THE CHAIR, BUT JUST FEEL FREE TO JUMP IN AS, AS NEEDED.
SO FIRST WE'RE GOING TO TALK ABOUT FUNDS AND BUDGETS.
AND MISS RANDALL ASKED TO TALK A LITTLE BIT ABOUT THE BUDGET PROCESS OR ZERO BASED BUDGETING, AND I'LL GET TO THAT IN A SECOND. SO THERE ARE BASICALLY THREE TYPES OF FUNDS WITHIN A, WITHIN A CITY.
BUT THE THREE FUNDS THAT THAT ARE OUT THERE ARE WHAT WE CALL GOVERNMENTAL FUNDS.
THAT'S YOUR GENERAL FUND OF THE CITY. THAT'S WHERE POLICE AND CODE ENFORCEMENT AND PLANNING AND ZONING AND PARKS AND RECREATION ARE ALL FUNDED FROM THESE ARE GENERALLY SUPPORTED BY PROPERTY TAXES AND FEES THAT ARE COLLECTED.
THROUGH DIFFERENT MECHANISMS. THE SECOND IS PROPRIETARY FUNDS.
AND HERE WE FIND THAT THERE ARE TWO DIFFERENT TYPES OF FUNDS.
THERE ARE WHAT I CALL EXTERNAL ENTERPRISE PROPRIETARY FUNDS.
THESE ARE WHAT WE THINK OF AS WATER AND SEWER OR STORMWATER.
THIS IS WHERE YOU CHARGE A FEE FOR FOR SERVICE.
SO WHEN YOU TURN THE WATER ON, IT GOES THROUGH A METER.
AND THEN YOU GET A BILL BASED UPON THE VOLUME OF WATER THAT YOU USE.
THAT'S AN ENTERPRISE FUND. THERE ARE ALSO WHAT WE CALL INTERNAL SERVICE FUNDS.
THESE ARE ONES THAT ARE SET UP FOR SPECIAL TRUSTS.
SO FOR EXAMPLE THE CITY HAS SOME RETIREMENT FUNDS.
THESE ARE FIDUCIARY. YOU CAN'T TOUCH THEM. THESE ARE IN TRUST FOR THE BENEFIT OF THE EMPLOYEES.
ON THERE. SO YOU CAN'T TOUCH THEM. THE CITY CAN'T TOUCH THEM.
SO YOU'LL PRETTY MUCH DURING YOUR TIME ON THE CATF BE TALKING ABOUT GOVERNMENTAL FUNDS AND PROPRIETARY FUNDS TALKING ABOUT HOW TO BUILD A BUDGET. SO REALLY, BUDGETS ARE YEAR LONG PROCESSES.
BUILDING THE BUDGET COULD TAKE A GOOD 9 OR 10 MONTHS, BUT YOU ALSO HAVE TO IMPLEMENT THE BUDGET.
[00:35:01]
SO COME OCTOBER 1ST, WHEN A NEW BUDGET IS ADOPTED, YOU ACTUALLY HAVE TO PUT THAT INTO PLAY.COUNTS HAVE TO BE SET UP, MONEY HAS TO BE PUT INTO THE ACCOUNTS.
AND SO IT'S A YEAR LONG PROCESS OF BUDGET ADMINISTRATION.
THERE ARE GENERALLY IN GOVERNMENT FOUR TYPES OF BUDGETS THAT EXIST OUT THERE.
SOMETIMES THEY ARE GROUPED SO YOU'LL HAVE THINGS LIKE ELECTRICITY.
AND SO THERE WILL BE A LINE ITEM FOR ELECTRICITY.
SO WHAT YOU HAVE TO PAY FPL ON BEHALF OF THE CITY.
SOMETIMES THAT WILL BE BROKEN DOWN BY BUILDING, OR SOMETIMES IT'LL SAY STREET LIGHTS OR TRAFFIC SIGNALS SO THAT YOU KNOW WHAT ELECTRICITY YOU'RE PAYING FOR. SO THERE COULD BE A LOT OF DETAIL AND A LINE ITEM BUDGET.
THERE ARE PROGRAM BUDGETS. THIS IS WHERE WE SAY THAT THERE'S GOING TO BE A CERTAIN AMOUNT OF MONEY THAT GOES FOR POLICE PATROL OR FIRE SUPPRESSION ACTIVITIES OR PARK MAINTENANCE. SO THERE ARE SPECIFIC PROGRAMS THAT ARE UNDERTAKEN BY THE CITY AND THOSE ARE COSTED OUT AND THEY'RE BUDGETED FOR. SO THEY HAVE BACKUP TO THEM TO JUSTIFY THE COST.
SO YOU KNOW WHAT THE OUTPUTS AND THE OUTCOMES ARE TIED TO THAT.
AND THEN MISS TRENTO ASKED FOR DISCUSSION ABOUT ZERO BASED BUDGETING.
SO I PUT IT IN A LITTLE NOTE HERE. THIS VERY RARELY IS USED.
IT WAS A BIG THING IN THE FEDERAL GOVERNMENT BACK IN THE 1970S, LATE 70S AND EARLY 80S.
IT CAME IN AND THEN IT WENT OUT. THE PROBLEM WITH ZERO BASED BUDGETS IS THAT THERE THERE ARE SO MANY THINGS THAT YOU DO EVERY YEAR THAT YOU HAVE TO DO THAT IT DIDN'T MAKE SENSE TO JUST ZERO OUT THE BUDGET AND THEN REBUILD IT FROM SCRATCH EVERY YEAR.
SO THAT'S WHERE PERFORMANCE AND PROGRAM BUDGETS SORT OF CAME IN TO REPLACE THAT AND SAID, LOOK, WE HAVE ALL THESE THINGS THAT WE DO. THAT'S OUR PROGRAM.
AND THEN WE WILL LOOK AT THINGS THAT WE WANT TO EITHER ADD OR SUBTRACT FROM THAT BUDGET.
SO THINGS LIKE NEW SERVICES WOULD BE ADDED TO A PROGRAM OR PERFORMANCE BUDGET.
SERVICES THAT NOBODY WANTS ANYMORE WOULD BE TAKEN OUT.
SO YOU ALWAYS HAD A BASELINE. THAT WAS YOUR BASIC PROGRAM BUDGET.
AND SO THAT'S WHERE ZERO BASED BUDGETING HAS SORT OF MORPHED INTO.
SO WE CAN TALK A LITTLE BIT MORE ABOUT THAT AS WE, AS WE GET INTO THE BUDGET PROCESS.
BUT I JUST WANTED TO LAY OUT THE FOUR TYPES OF BUDGETS THAT REALLY EXIST.
SO ANY QUICK QUESTIONS ON, ON THIS SECTION BEFORE WE GET INTO THE FUN STUFF? I DO. I BELIEVE THERE ARE SOME CITIES THAT DO PARTIAL ZERO BASED BUDGETING IN TODAY'S WORLD.
THEY MAY NOT DO THE ENTIRE BUDGET, ZERO BASED BUDGET, BUT THEY TAKE PORTIONS OF THEIR BUDGET AND START FROM ZERO. YOU KNOW, YOU ALWAYS HEAR THE WORD WELL, THAT THE, THE LITTLE QUOTATION.
WELL, THAT'S THAT'S HOW WE ALWAYS DO IT. SO LET'S PUT IT IN THERE.
BUT I THINK IT'S REALLY IMPORTANT TO TAKE A LOOK AT DEPARTMENTS OR PARTS OF DEPARTMENTS AND REALLY SEE IF YOU'RE STILL USING THAT PROCESS.
SO I'M, I'M IN FAVOR OF AT LEAST PARTIAL ZERO BASED BUDGETING.
AND THAT'S REALLY, THAT'S REALLY WHERE PROGRAM BUDGETING ENDED UP ON THERE.
SO YOU'RE LOOKING AT THE PROGRAMS THAT EACH DEPARTMENT IS DOING AND YOU'RE ASKING, DO WE NEED TO DO THIS PROGRAM THIS YEAR? SO I'LL TAKE ONE THAT I'M PRETTY SURE YOU'RE NOT GOING TO PUT ON THE CHOPPING BLOCK, BUT AS A, AS AN EXAMPLE. SO THE POLICE DEPARTMENT HAS A K9 UNIT.
OKAY. ON THERE FOR, YOU KNOW, VARIOUS LAW ENFORCEMENT ACTIVITIES.
[00:40:06]
THAT'S A PROGRAM. OKAY. INFORMING THE BUDGET.YOU ASK YOURSELF, DO WE NEED A K9 PROGRAM THIS YEAR OR NOT? OR DO WE NEED TO ADD TO THE CANINES OR SUBTRACT FROM THE CANINES? SO THAT'S REALLY HOW ZERO BASED BUDGETING HAS HAS MORPHED INTO PROGRAM.
SO YOU'RE ASKING THAT QUESTION AT THE PROGRAM LEVEL, NOT AT THE INDIVIDUAL DEPARTMENT LEVEL, WHERE YOU'RE SAYING, DO WE NEED A POLICE DEPARTMENT? SO THAT I THINK I THINK AND WHEN WE GET TO THE ACTUAL BUDGET TO LOOK AT, I THINK YOU'LL SEE THAT THAT'S HOW IT'S SET UP.
YOU HAVE PROPERTY TAXES AND OTHER TYPES OF TAXES WHAT WE CALL UTILITY TAXES, PUBLIC SERVICE TAXES THAT EXISTS SALES TAX ON THERE, THERE ARE GOING TO BE USER FEES, YOUR WATER CHARGE RENTING A PARK PAVILION THAT'S A USER FEE AND A SERVICE CHARGE. SPECIAL ASSESSMENTS. THAT'S A TOPIC THAT'S NEAR AND DEAR TO PEOPLE IN PALM BAY.
AND BEEN A DISCUSSION FOR DECADES RIGHT OF WAY AND FRANCHISE FEES IMPACT FEES, FINES AND FORFEITURES TICKET SUCH AS GETTING A TICKET.
AND BY THE WAY, JUST SO YOU KNOW THIS IS A FUN FACT.
SPEEDING TICKETS ARE ROUGHLY $186. WHEN YOU GET A TICKET FOR THE MINIMUM VIOLATION.
I DON'T KNOW THAT FROM EXPERIENCE. I'M JUST TOLD BUT YOU KNOW HOW MUCH THE CITY OF PALM BAY WOULD GET OUT OF THE $186 TICKET, SEVEN, $7 ON THERE. SO THE IDEA OF SOME COMMUNITIES WRITING THEIR OR BALANCING THEIR BUDGETS ON TICKETS DOESN'T WORK.
IT ACTUALLY COSTS MORE TO SEND A POLICE OFFICER TO COURT THAN IT DOES TO THEN THE REVENUE YOU COLLECT ON THE TICKET GRANTS, THAT'S THE SOURCE OF MONEY OUT THERE.
GRANTS ARE NOT A SOLUTION TO PROBLEMS. ON THERE, THEY TAKE FOREVER TO GET.
SO WE'LL TOUCH A LITTLE BIT ON SOME OF THOSE AS WE GO THROUGH.
WHERE DO YOU GET YOUR AUTHORITY? SOME OF IT COMES RIGHT FROM THE FLORIDA CONSTITUTION.
THEN THERE'S HOME RULE AUTHORITY. NOW, FLORIDA IS A HOME RULE STATE.
OKAY. SINCE 1968. BUT WHEN YOU LOOK AT THE HOME RULE AUTHORITY, THEY GRANTED HOME RULE AUTHORITY ON EVERYTHING EXCEPT MUNICIPAL FINANCE. THERE THE LEGISLATURE CONTROLS THINGS.
SO WITH WITH A FEW EXCEPTIONS, THERE'S NO HOME RULE AUTHORITY.
AND THAT LEAVES US THEN TO THE LEGISLATURE BEING THE ENTITY THAT REALLY CONTROLS WHAT TYPE OF REVENUES THE CITY OF PALM BAY RECEIVES AND WHAT TYPE OF REVENUES IT DOES NOT. AD VALOREM TAXES. AD VALOREM IS LATIN.
IT MEANS COMING FROM VALUE OR ACCORDING TO VALUE, AND IT IS GOING TO BE THE SINGLE LARGEST SOURCE OF REVENUE FOR MOST CITIES IN THE STATE OF FLORIDA. AND PALM BAY IS NOT AN EXCEPTION. AND THIS IS THE ONE ITEM THAT YOU SEE DIRECTLY ON THE TRIM.
SO TRIMS, BY THE WAY, IS AN ACRONYM. IT STANDS FOR TRUTH IN MILLAGE AND IT IS THE, WHAT GOVERNS THE WAY THAT CITIES HAVE TO ADVERTISE AND DISCUSS THEIR THEIR PROPERTY TAXES.
SO THIS IS HOW IT WORKS. MILLAGE IS THE TERM PALM BAY HAS A MILLAGE RATE OF 6.7000.
THIS MEANS THAT THERE ARE $6.70 LEVIED FOR EVERY $1,000 OF ASSESSED OR TAXABLE VALUE.
SO WHAT DOES TAXABLE VALUE MEAN? IT'S NOT THE MARKET VALUE OF YOUR HOME.
OKAY. THAT IS A THAT IS CALLED A FAIR AND JUST VALUE.
[00:45:05]
OF TAXING, AND THAT IS ADJUSTED, TAKES SOME OF THE MARKET VALUE, AND THERE ARE EXEMPTIONS TO THAT MARKET VALUE.THERE'S HOMESTEAD EXEMPTION, THERE'S THE SAVE OUR HOMES EXEMPTION.
AND THEN YOU GET TO A VALUE THAT'S KNOWN AS THE TAXABLE VALUE.
SO A HOME WHICH IN PALM BAY, THE MEDIAN AVERAGE PRICE OF A HOME IS $338,000 LESS.
THE $50,000 HOMESTEAD EXEMPTION. THAT MEANS IT ONLY HAS A TAXABLE VALUE OF $288,000, AND THAT WITH A 6.7 MILL, GENERATES $1,929.60 TO THE CITY. IT'S ACTUALLY NOT EVEN THAT BECAUSE IF YOU PAY YOUR TAXES EARLY, WHICH MOST PEOPLE DO, THAT'S DISCOUNTED BY ANOTHER 4%.
THAT HAS TYPICAL HOMESTEAD EXEMPTION. ON THERE WHEN WE TALK ABOUT MILLAGE LET ME, LET ME STOP THERE.
ANY QUESTIONS ABOUT MILLAGE RATES AND HOW THEY'RE CALCULATED? OKAY. THERE IS A TEN MIL CAP THAT IS SET OUT BY THE FLORIDA CONSTITUTION THAT SAYS THAT UNLESS THERE'S SOME EXTREME CIRCUMSTANCES, BUT YOUR MILLAGE RATE IN PALM BAY CANNOT GO ABOVE TEN MILS, THAT MEANS $10 PER $1,000 OF ASSESSED VALUE OF TAXABLE VALUE.
OKAY. THERE ARE SOME EXCEPTIONS TO THAT DEBT SERVICE.
THAT IS WHERE YOU ALL COULD COLLECTIVELY VOTE TO ISSUE BONDS.
AND THAT IS EXCLUDED FROM THE TEN MIL CAP. AND THEN THERE'S ANOTHER EXCEPTION THAT SAYS YOU CAN GO TO THE VOTERS AND GET A TWO YEAR INCREASE IN THE MILLAGE RATE ABOVE TEN MILS. NEVER REALLY USED IN THE STATE OF FLORIDA, BUT IT'S AN OPTION.
I THINK MR. GORMAN HAD A QUESTION. OKAY. THERE'S WHAT WE CALL DEPENDENT SPECIAL DISTRICTS.
THERE WAS ONE HERE IN PALM BAY ONCE UPON A TIME BECAUSE I PUT IT IN PLACE CALLED A ROAD DISTRICT.
IT WAS A CITYWIDE DISTRICT. CITY DID AWAY WITH THAT, I BELIEVE.
BUT YOU COULD CREATE A DISTRICT. WE HAD ONE THAT ALLOWED FOR UP TO THREE MILS FOR ROADS ON THERE.
THERE'S SUCH A THING AS AN INDEPENDENT DISTRICT IN THE STATE OF FLORIDA.
THOSE ARE NOT CREATED BY THE CITY. THOSE ARE CREATED BY THE STATE.
SO MELBOURNE TILLMAN WATER CONTROL DISTRICT IS AN INDEPENDENT SPECIAL DISTRICT IN THE STATE.
IT CAN LEVY TAXES AND IT DOES. AND THAT DOESN'T GO AGAINST YOUR TEN MIL CAP.
OTHER ENTITIES LIKE THE SCHOOL BOARD OR THE COUNTY.
HOW IS THE TAXABLE VALUE DETERMINED. SO THERE'S A LOT OF CONSTERNATION IN THE STATE.
SO ABOUT THIS. SO YOU BUY A HOME? YOU PAY $300,000 FOR IT.
THE DAY THAT YOU BUY IT, THE PROPERTY APPRAISER WHO'S ELECTED IS GOING TO LOOK AT WHAT THE VALUE OF THAT HOME IS ON JANUARY 1ST. SUBSEQUENT TO THE TIME THAT YOU BOUGHT IT, AND IT GENERALLY GOES UP MARGINALLY.
SO MAYBE 2%. SO IN THIS CASE, IT'S GOING TO BE $306,000 IN VALUE.
THAT IS THE INITIAL YEAR THAT YOU HAVE A ASSESSED IN TAXABLE VALUE ESTABLISHED.
SAVE OUR HOME SAYS THAT YOUR ASSESSED VALUE, REGARDLESS OF WHAT MARKET VALUE IS, CANNOT GO UP MORE THAN 3% OR THE RATE OF INFLATION, WHICHEVER IS LOWER. SO IT'S ALWAYS KEPT AT 3%.
[00:50:02]
SO THE RATE OF INFLATION IS 5%. THE MOST YOU CAN HAVE IS 3%.THE RATE OF INFLATION IS 1.5%. THEN THE MOST THE INCREASE IN THE ASSESSED VALUE CAN BE IS 1.5%.
NOW MARKET VALUE CONTINUES TO GO UP AND GO DOWN.
IF MARKET VALUE GOES DOWN BELOW WHAT YOUR TAXABLE VALUE IS BELOW, WHAT YOUR ASSESSABLE VALUE IS, THEN THAT ALSO CAUSES IT TO DROP. SO WHAT HAPPENED, FOR EXAMPLE, DURING THE GREAT RECESSION IN 2007 AND 2008, EVEN THOUGH THE MARKET VALUE WAS INCREASING IN PALM BAY BEFORE THEN, ALL OF A SUDDEN IT DROPPED AND WITH THAT, ALL YOUR TAXABLE VALUE DROPPED WITH IT. AND THEN AS THE MARKET STARTED PICKING BACK UP AND GROWING AT RATES HIGHER THAN 3%, PEOPLE WERE GETTING MORE VALUE OUT OF THEIR HOME, BUT THEIR TAXES WERE NOW BASED ON EVEN A LOWER AMOUNT.
NOW, TO COMPLICATE THIS EVEN MORE, OKAY, NOW, A FEW YEARS AGO, I THINK IT'S ABOUT SIX YEARS NOW.
THE VOTERS VOTED ON PORTABILITY, WHICH IS ANOTHER EXEMPTION THAT SAYS THAT WHEN YOU MOVE, YOU TAKE THE HOMESTEAD EXEMPTION THAT YOU HAD AND THE SAVE OUR HOMES VALUE THAT YOU HAD, AND YOU CAN MOVE IT TO YOUR NEW HOUSE.
SO THINK ABOUT THIS FOR A SECOND ON THEIR THREE HOMES THAT ARE IDENTICAL AND ARE LOCATED ON THE SAME BLOCK, BUILT BY THE SAME BUILDER, HAS A TREE IN THE SAME SPOT ON THERE.
ONE WAS BUILT IN 1996. OKAY. AND IT HAS A VALUE.
OKAY. AND THEN SOMEBODY BOUGHT IT AT THE SAME IDENTICAL HOME IN 2010.
AND IT HAS A VALUE THAT'S HIGHER BECAUSE THEY HAD A THEY BOUGHT IT AT A HIGHER RATE.
SO THEIR TAXABLE VALUES ARE ALL DIFFERENT. OKAY.
SOME ARE HIGHER, SOME ARE LESS. BUT WHAT'S HAPPENING? THEY STILL HAVE THE SAME PALM BAY POLICE CAR DRIVING BY.
THEY STILL HAVE THE SAME CODE ENFORCEMENT OFFICER.
THEY'RE STILL USING THE SAME PARKS, BUT THEY'RE ALL PAYING DIFFERENT PROPERTY TAXES BASED UPON THEIR WHEN THEY BOUGHT THEIR HOME AND WHEN THEY BOUGHT THEIR PREVIOUS HOME AND THE VALUE AND SOME OF THEM ARE MOVING FROM OUTSIDE THE COMMUNITY, TAKING LARGE PORTABILITY FROM URBAN AREAS LIKE MIAMI AND MOVING IT TO HERE.
AND NOW THEY'RE PAYING LESS PROPERTY TAXES, MAYBE THAN THEIR NEXT DOOR NEIGHBOR FOR THE SAME HOME, IN THE SAME NEIGHBORHOOD, ON THE SAME STREET.
RIGHT. SO THE QUESTION REALLY IS, IS WHAT TYPE OF EQUITY HAS THE STATE SET UP BEYOND YOUR CONTROL? BUT THAT'S THE SYSTEM THAT WE'RE OPERATING UNDER.
DOES IT MAKE COMPLETE SENSE? BECAUSE IF IT DOES, WE'RE IN THE WRONG ROOM.
SO, OKAY. OKAY. SO WHAT DOES THIS LOOK LIKE STATEWIDE? ARE THERE JUST TO GIVE YOU AN IDEA THAT IN THE STATE OF FLORIDA, THERE'S $5.4 TRILLION WORTH OF JUST VALUE THAT GETS REDUCED DOWN BY THE ASSESSED VALUE TO ABOUT 4.1 TRILLION.
AND THEN THE TAXABLE VALUE DROPS TO 3.478 TRILLION.
SO YOU CAN SEE THAT THERE'S ALMOST TWO $2 TRILLION THAT'S LOST.
AND THAT'S THOSE ARE THE VALUES OF ALL THOSE EXEMPTIONS.
AND I HAVEN'T DONE THE CALCULATION FOR PALM BAY, BUT THEY'RE GOING TO BE IN THE SAME PROPORTION.
SO YOU HAVE TO SAVE OUR HOMES. YOU HAVE THE 10% CAP ON NON HOMESTEADED PROPERTY.
YOU HAVE HOMESTEAD SECOND HOMESTEAD EXEMPTIONS, AND THEN YOU HAVE ALL THE GOVERNMENTAL AND INSTITUTIONAL PROPERTIES THAT YOU PROVIDE SERVICES TO THAT ARE OFF THE TAX ROLLS. SO CHURCHES, SCHOOLS CITY BUILDINGS, THOSE ARE ALL COUNTY BUILDINGS THAT ARE LOCATED IN PALM BAY. THOSE ARE NOT PAYING ANY PROPERTY TAXES, EVEN THOUGH THEY MAY BE RECEIVING SERVICES.
THE OTHER TERM YOU'RE GOING TO HEAR A LOT OF IS CALLED THE ROLLBACK RATE.
AND THIS IS IMPORTANT TO KNOW BECAUSE EVEN IF YOU HAVE THE SAME MILEAGE AS THE YEAR BEFORE, BECAUSE PROPERTY VALUES TEND TO GO UP AND THE TAXABLE VALUES GO UP, YOU'RE GOING TO HAVE TO ADVERTISE THAT YOU'VE HAD A TAX INCREASE BECAUSE YOU'RE ACTUALLY IT'S NOT THE MILLAGE RATE THAT TRIM LOOKS AT.
IT IS THE DOLLAR VALUE THAT YOU'RE COLLECTING IN PROPERTY TAXES.
[00:55:02]
AND IF YOU COLLECT $1 MORE IN PROPERTY TAXES THAN THE YEAR BEFORE, THAT IS A TAX INCREASE.IN SOME CASES, YOU CAN ACTUALLY LOWER YOUR MILLAGE RATE, GENERATE MORE PROPERTY TAX, AND STILL HAVE A TAX INCREASE THAT YOU HAVE TO ADVERTISE EVEN THOUGH YOU'VE LOWERED THE MILLAGE RATE IN THE CITY.
AND THEN OF COURSE, THERE'S THE PALM BAY RULES, WHICH IS BASICALLY THE 6.01 CHARTER CAP, THE TO 3% RULE, AND THAT REQUIRES YOU TO GO TO A SUPERMAJORITY VOTE OF THE CITY COUNCIL IF YOU'RE GOING TO TO EXCEED THAT. AND I BELIEVE THAT ACTUALLY HAPPENED IN YOUR LAST BUDGET WHERE YOU EXCEEDED THE, THE CAP IN ORDER TO FUND CERTAIN NECESSARY SERVICES. SO THAT IS STUFF THAT YOU REALLY HAVE VERY LIMITED CONTROL OVER. WHAT DOES THE CITY COUNCIL HAVE CONTROL OVER? THERE ARE THINGS LIKE IMPACT FEES, FRANCHISE FEES, SPECIAL ASSESSMENTS SUBJECT TO VOTER APPROVAL, USER AND SERVICE FEES, AND UTILITY FEES. SO IMPACT FEES.
THIS IS VERY IMPORTANT FOR A CITY LIKE PALM BAY THAT IS GROWING, RIGHT? THE WHOLE CONCEPT OF IMPACT FEES IS THAT THERE IS A A PLAN TO ADD NEW CAPITAL PROJECTS BASED UPON GROWTH. AND THE KEY THERE IS BASED UPON GROWTH AND THE CAPITAL PROJECTS THAT YOU ADD WHEN THEY'RE BASED UPON GROWTH, THEY HAVE TO PROVIDE A SPECIAL BENEFIT TO THE PEOPLE WHO ARE MOVING IN.
AND THEN AND ONLY THEN CAN YOU CHARGE AN IMPACT FEE, WHICH HAS TO BE A PROPORTIONAL BASIS OF WHAT THE NEW PERSON OR THE NEW PROPERTY IS GOING TO INCUR IN TERMS OF THAT CAPITAL NEED.
IT GETS VERY COMPLICATED. IT'S WHAT'S KNOWN AS A DUAL RATIONAL NEXUS TEST.
THE BURDEN OF A OF A NEW CAPITAL PROJECT HOLD ON.
JUST A GROUP OF PEOPLE MOVING IN. FOR EXAMPLE, A COMMUNITY I'M DEALING WITH THAT I CAN'T NAME DECIDED TO USE THEIR PARK IMPACT FEES TO BUILD NEW PICKLEBALL COURTS. THEY SAID THAT THE THERE WAS A NEED FOR NEW PICKLEBALL COURTS BECAUSE THE COMMUNITY WAS GROWING AND THESE NEW RESIDENTS WOULD NEED THAT.
HOWEVER, THE NEW RESIDENTS THAT THEY WERE HAVING COMING IN WERE ONLY ABOUT 500 PEOPLE.
AND THIS FACILITY WOULD BE USED BY 2000 PEOPLE.
SO THEY HAD TO THEY HAVE TO LOOK AT THEIR PARK IMPACT FEES, AND THEY COULD USE A PORTION OF THE PARK IMPACT FEES TO PAY FOR THAT NEW PICKLEBALL COURT COURTS. BUT THEY CAN'T USE ALL THE IMPACT FEES BECAUSE THOSE COURTS ARE GOING TO BE USED BY PEOPLE OTHER THAN THE 500 NEW PEOPLE MOVING INTO THE COMMUNITY. SO YOU'VE GOT TO BE VERY CAREFUL HOW YOU PROPORTION IMPACT FEES, HOW YOU USE THEM. THEY ARE A WAY TO PROVIDE SOME NEW CAPITAL OR SOME CONTRIBUTION TO CAPITAL, BUT THEY'RE NOT A WINDFALL THAT YOU CAN JUST USE WILLY NILLY.
THE LAW REQUIRES YOU TO DO A STUDY TO DEMONSTRATE THE CAPITAL NEED, THAT YOU HAVE TO SHOW THE BENEFIT FOR THESE NEW RESIDENTS AND WHAT THE PROPORTIONAL BASIS WOULD BE. IF YOU DON'T DO THAT, YOU WILL MOST LIKELY GET SUED.
SO MY CAUTION TO EVERY CITY THAT I DEAL WITH IS BE VERY CAREFUL HOW YOU LEVY IMPACT FEES.
MAKE SURE THAT YOU KNOW WHAT YOU'RE LEAVING THEM FOR.
MAKE SURE THAT THEY PROVIDE THE BENEFIT. MAKE SURE THAT THEY'RE JUST ON THERE AND IN.
DON'T JUST USE THEM TO PAY FOR NEW CAPITAL THAT YOU DON'T NEED.
SO GOOD EXAMPLE WHERE YOU COULD USE THEM AND THIS ISN'T HAPPENING TOMORROW, BUT LET'S ASSUME YOU HAD A DEVELOPMENT IN US IN THE COMPOUND, OKAY. AND YOU'RE GOING TO PUT 2000 HOMES IN THE COMPOUND AND YOU NEED A NEW FIRE STATION AND A NEW FIRE ENGINE FIRE PUMPER TRUCK FOR THAT STATION. YOU COULD LEVY IMPACT FEES FOR THAT ON THOSE 2000 HOMES IN THERE
[01:00:04]
TO PAY FOR THAT NEW FIRE STATION, BECAUSE IT'S GOING TO PROVIDE A BENEFIT TO THEM, AND YOU NEED TO PUT A FIRE ENGINE IN THERE.WHAT YOU CAN'T DO IS PAY FOR THE FIREFIGHTERS BECAUSE FIREFIGHTERS ARE NOT A CAPITAL ITEM.
YOU MAYBE PAY FOR THEIR BUNKER GEAR ONCE, BUT NOT FOREVER, RIGHT? YOU CAN PAY FOR THE HOSES ON THE PUMPER TRUCK ONCE, BUT NOT FOREVER.
OKAY. FRANCHISE. RIGHT OF WAY. SPECIAL ASSESSMENTS.
USER FEES. FRANCHISE FEES ARE A FEE THAT YOU CHARGE A UTILITY COMPANY FOR THE RIGHT OF USING YOUR YOUR RIGHT OF WAYS. FPL, FOR EXAMPLE, PAYS A FRANCHISE FEE TO THE, TO THE CITY OF WHICH THEY PASS ON TO YOU, BUT THEY, THEY PAY THAT FOR THE USE OF THE RIGHT OF WAY.
THERE ARE THINGS CALLED RIGHT OF WAY FEES BUS BENCHES.
IF THERE'S ADVERTISING ON BUS BENCHES, YOU CAN CHARGE A FEE FOR THAT ADVERTISING.
SO MAYBE YOU GET A PERCENT OF THE REVENUE THAT THE ADVERTISING COMPANY GETS FOR PUTTING OUT THE BUS BENCH WITH THE AD SPECIAL ASSESSMENTS ON THERE. THESE ARE SPECIFIC BENEFITS ON THERE.
THESE GET REALLY COMPLICATED HERE IN PALM BAY BECAUSE BASICALLY THEY'RE NOT A TAX.
THEY HAVE TO PROVIDE AN ACTUAL BENEFIT FOR THE PROPERTY.
THAT IS NOT LIKE THAT IN EVERY OTHER CITY OR MOST EVERY OTHER CITY IN THE STATE OF FLORIDA.
THAT'S A UNIQUE PALM BAY CONDITION. AND YOU CAN SEE, FOR EXAMPLE, ON WATER AND SEWER, THE DEVELOPMENT PATTERNS IN PALM BAY VERSUS, LET'S SAY, THE DEVELOPMENT PATTERNS IN PORT SAINT LUCIE.
PALM BAY COULDN'T DO THAT. BOTH ARE GENERAL DEVELOPMENT COMMUNITIES.
BOTH OPERATING UNDER DIFFERENT TYPES OF STRUCTURE.
BUT BUILDING PERMITS IS A CLASSIC EXAMPLE OF A USER FEE.
YOU'RE PAYING A FEE IN ORDER TO GET THE RIGHT TO, NOT THE RIGHT TO HAVE THE INSPECTORS COME OUT AND LOOK AT YOUR PROPERTY GOING TO A PARK AND PAYING EITHER A PARKING FEE FOR PARKING AT THE PARK OR PAVILION RENTAL OR PARTICIPATING IN A RECREATION PROGRAM AT THE COMMUNITY CENTER.
THOSE ARE USER FEES. OKAY. YOU TURN THE WATER ON.
GOES THROUGH THE METER. FLUSH THE TOILET. IT GOES INTO THE SEWER ON THERE.
THOSE ARE ALL FEES THAT YOU'RE PAYING FOR IN ORDER TO GET THAT SERVICE.
AND AGAIN, IF YOU HAVE ANY QUESTIONS, LET'S JUST, YOU KNOW, STOP ME AS WE GO ALONG.
BUILDING PERMIT FEES. I PULLED THIS OUT BECAUSE COMMUNITIES LIKE PALM BAY ARE GOING THROUGH A BUILDING BOOM, AND YOU'RE GETTING LOTS OF BUILDING PERMIT FEES IN THERE.
AND THERE'S A TEMPTATION TO SAY, LET'S USE THOSE BUILDING PERMIT FEES FOR THINGS OTHER THAN BUILDING ENFORCEMENT. YOU CAN'T DO THAT. OKAY. THERE ARE SO MANY RULES NOW ON WHAT YOU CAN USE BUILDING PERMIT FEES FOR.
OKAY. WE'D SPEND THE ENTIRE EVENING TALKING ABOUT EXAMPLES.
OKAY. NOW, WHAT DOES THAT MEAN? THAT MEANS YOU CAN HAVE PLAN REVIEWERS IN CHARGE FOR THE PLAN.
REVIEWERS. TIME TO LOOK AT THE PLANS TO MAKE SURE THAT THEY MEET THE FLORIDA BUILDING CODE.
YOU CAN HAVE INSPECTORS THAT GO OUT THERE TO MAKE SURE THAT THE NAILS ARE IN THE RIGHT SPOT, AND THE TRUSSES ARE IN THE RIGHT SPOT, AND YOU CAN CHARGE THE FEE FOR DOING THAT.
WHAT YOU CAN'T DO IS CHARGE A FEE FOR COUNTING THE NUMBER OF TREES THAT ARE GOING TO BE PLANTED, OR MAKING SURE THAT THEY'RE THE RIGHT TREES. NOW YOU CAN CHARGE A SEPARATE FEE FOR THAT, BUT YOU CAN'T CHARGE A BUILDING PERMIT FEE FOR LANDSCAPE
[01:05:05]
PLAN REVIEWS BECAUSE LANDSCAPE IS NOT IN THE FLORIDA BUILDING CODE.IT'S IN YOUR LAND DEVELOPMENT CODE. AND THE STATE MAKES A BIG DISTINCTION WITH REGARD TO THAT.
THE OTHER THING THEY SAID IN THE LAST FEW YEARS IS THAT, YES, YOU CAN ACCUMULATE BUILDING PERMIT FEES IN A FUND, BUT YOU CAN NEVER HAVE MORE THAN FOUR YEARS WORTH OF OPERATING COSTS IN RESERVE.
SO A LOT OF CITIES THAT WENT THROUGH A BIG BOOM, LIKE WHEN I WAS THE CITY MANAGER OF FORT LAUDERDALE, WE HAD A TREMENDOUS INCREASE IN BUILDING AND WE ACCUMULATED MILLIONS IN BUILDING PERMIT FEES, BUT WE HAD MORE THAN FOUR YEARS WORTH OF EXPENDITURES.
SO WE HAD TO QUICKLY SPEND IT ON THINGS THAT WE DIDN'T NEED JUST TO BRING IT DOWN.
SO IT'S VERY IMPORTANT THAT BUILDING FEES COVER THE COST OF BUILDING INSPECTIONS AND PLAN REVIEW.
BUT IT CANNOT REALLY EXCEED IT. IT'S NOT A PROFIT CENTER.
IT'S NOT, YOU KNOW, ONE THAT YOU CAN SAY, WE'RE GOING TO BALANCE THE GENERAL FUND BUDGET ON.
NOW YOU CAN GET CREATIVE. ON THERE. CITIES CAN CHARGE RENT TO THE BUILDING DEPARTMENT FOR THE PORTION OF A BUILDING THAT THEY'RE USING IN ORDER TO RECOVER THAT COST. YOU CAN CHARGE LEASE RATES FOR THE VEHICLES THAT THEY'RE DRIVING TO RECOVER THAT COST. YOU CAN MAKE SURE THAT THE OVERHEAD OF IT AND EVERYTHING IS RECOVERED OUT OF BUILDING PERMIT FEES, BUT IT ALL HAS TO BE LOOKED AT AND JUSTIFIED.
NOW IT GETS EVEN MORE COMPLICATED ON JANUARY 1ST OF 2027, BECAUSE A NEW LAW THAT THE GOVERNOR JUST SIGNED ABOUT A MONTH AGO SAYS THAT YOU CAN NO LONGER CHARGE BUILDING PERMIT FEES ON A BASIS OF PERCENT OF COST OF CONSTRUCTION.
SO YOU HAVE TO FIGURE OUT HOW MANY HOURS OF INSPECTOR TIME YOU'RE GOING TO NEED FOR THIS HOUSE AND HOW MANY INSPECTOR HOURS YOU WILL NEED FOR THIS COMMERCIAL BUILDING, AND YOU CAN CHARGE ACCORDINGLY.
BUT IT CANNOT JUST BE BASED UPON A PERCENT OF THE VALUE OF A PROJECT ANY LONGER.
SO THAT MAY BE SOMETHING THAT WILL BE COMING TO THE CITY, CITY COUNCIL FOR ACTION.
I HAVE ONE MORE THING TO ADD TO THAT. THIS NEW LEGISLATION ALSO HAS PASSED THAT MUNICIPALITIES BUILDING PERMITS UNDER THE VALUE OF $7,500.
YOU DO NOT HAVE TO GO THROUGH GETTING A PERMIT.
THERE WILL BE NO PERMITS UNDER $7,500. YEAH, I'M NOT SURE THAT'S BEEN SIGNED BY THE GOVERNOR YET, BUT I'LL CERTAINLY CHECK. THE WAY I READ IT, IT WAS.
BUT YEAH, THAT'S GOING TO BE THAT'S GOING TO BE DETRIMENTAL.
JUST MAKE MYSELF A NOTE TO CHECK FOR YOU. OKAY.
SO THESE ARE STATE REVENUES THAT YOU GET. ARE THERE AND I WILL TALK ABOUT THESE BRIEFLY.
SO SALES TAX, YOU CITY DOES NOT HAVE THE ABILITY TO LEVY A SALES TAX.
THE STATE LEVIES A SALES TAX. IT'S 6%. ON THERE, THE CITY OUT OF ITS THE STATE OUT OF ITS GOOD GRACES YEARS AGO, DECIDED TO GIVE CITIES A HALF A PENNY OR ONE HALF OF 1% OF THAT 6%.
BUT IT'S NOT BASED UPON SALES THAT OCCUR WITHIN THE CITY OF PALM BAY.
AND SO THE PORTION OF BREVARD COUNTY IS GREATER.
SO WHEN YOU SEE PROJECTS GOING ELSEWHERE IN THE COUNTY THAT ARE COMMERCIAL AND WILL BE GENERATING SALES TAX, KNOW THAT YOU'RE GETTING A PIECE OF THAT. ON THEIR COMMUNICATION SERVICES TAX.
[01:10:01]
THIS IS ALSO ONE THAT IS VERY COMPLICATED. BASICALLY THIS IS THE TAX THAT IS PAID FOR BY, FOR PHONE SERVICE, INCLUDING THE CELL PHONE THAT I'M HOLDING HERE.SO WHAT'S ON PALM BAY ROAD THAT HAS OVER A THOUSAND EMPLOYEES IN IT.
HARRIS CORPORATION RIGHT. WHERE'S HARRIS'S CORPORATE OFFICES? MELBOURNE. THAT'S WHERE THEIR ACCOUNTING DEPARTMENT IS.
THAT'S WHERE THE BILLS GO. SO THE HARRIS PHONES THAT ARE BEING USED AT THE HARRIS FACILITY ON PALM BAY ROAD, THAT TAX IS GOING TO TO MELBOURNE. NOTHING YOU COULD DO ABOUT IT.
THAT'S THE LAW. THAT'S HOW IT'S SET UP. BUT JUST KNOW THAT, YOU KNOW, YOU'RE STILL GETTING A REALLY GOOD PIECE OF MONEY FOR COMMUNICATION SERVICES TAX. I PUT IN HERE WHAT YOUR WHAT THE THE HISTORY OF IT HAS BEEN.
BUT YOU'LL SEE THAT IT HAS GROWN TO OVER THREE, 3.3 MILLION.
THIS THIS CURRENT FISCAL YEAR BUSINESS TAX RECEIPTS, THESE USED TO BE CALLED OCCUPATIONAL LICENSES.
IF YOU'RE OLD LIKE ME, YOU MAY REMEMBER THAT TERM.
THEY'RE NOT LICENSES TO DO BUSINESS. THEY ARE TAXES THAT EVERY BUSINESS PAYS.
THEY ARE BASICALLY CAPPED BY THE STATE. YOU CAN RAISE THEM EVERY OTHER YEAR BY 5% BY A SUPERMAJORITY VOTE OF THE CITY COUNCIL. SOMETIMES THE AD ADVERTISEMENT WILL COST MORE THAN THE REVENUE THAT YOU WILL GET IN BY INCREASING IT ALCOHOLIC BEVERAGE LICENSE TAX.
I'M NOT ADVOCATING YOU ENCOURAGE PEOPLE TO DRINK, BUT THAT'S HOW IT WORKS.
MUNICIPAL REVENUE SHARING. THIS IS ALSO BASED UPON POPULATION.
AND IT'S ALSO COMES OUT OF BASICALLY SALES TAX COLLECTED BY THE STATE.
SO BETWEEN THE HALF CENT SALES TAX, THE COMMUNICATION SERVICES TAX AND THIS, YOU'RE GETTING ABOUT $21.5 MILLION A YEAR COMING FROM THE STATE. SHARED REVENUES.
PUBLIC SERVICE TAX IS ALSO KNOWN AS THE UTILITY TAX.
IT IS LEVIED AT 10% ON WATER. BOTTLED GAS AND ELECTRICITY.
SO THAT'S LEVIED BY THE BY THE CITY COUNCIL THE INSURANCE PREMIUM TAX.
THIS IS MONEY THAT IS LEVIED ON ON INSURANCE POLICIES.
IT THE MONEY THAT YOU GET FROM THIS GOES INTO THOSE FIDUCIARY FUNDS FOR POLICE AND FIRE PENSION.
I'M NOT SURE IF PALM BAY HAS RED LIGHT CAMERAS ANYMORE, BUT THAT WOULD HAVE BEEN THE YOU KNOW, REVENUE SOURCE AS WELL, THOUGH IT ENDED UP COSTING CITIES MORE TO ADMINISTER THE PROGRAM THAN THE REVENUE THEY WERE COLLECTING FOR IT.
THE PROBLEM WITH THAT IS YOU CANNOT FORECLOSE ON SINGLE FAMILY HOMES THAT ARE HOMESTEADED.
SO IT'S THESE ARE VERY HARD TO COLLECT ONCE YOU GET THEM.
THE OBJECT REALLY WITH CODE ENFORCEMENT IS COMPLIANCE, NOT REVENUE GENERATION.
AND THEN THERE'S A LOCAL OPTION, A LOCAL OPTION, TAXES THAT BREVARD COUNTY LEVIES.
THEY CAN GO TO THE VOTERS AND ASK FOR CERTAIN SALES TAX BY CHARTER I'M SORRY, BY REFERENDUM OR BY SIMPLE VOTES OR A MAJORITY VOTE OF THE COUNTY COMMISSION.
THEY CAN LEVY FUEL TAXES. RIGHT NOW, I BELIEVE BREVARD COUNTY LEVIES THE MAXIMUM FUEL TAX UNDER THE STATUTE OR BY INTERLOCAL AGREEMENT. PALM BAY GETS A PORTION OF THOSE GAS TAXES THAT CAN BE USED TO FUND CERTAIN TRANSPORTATION RELATED EXPENDITURES. AND THEN THEN WE HAVE THE LOCAL RULES.
[01:15:09]
WHICH IS THE 3% AD VALOREM REVENUE CAP. OTHER YOU, THE COUNCIL CAN GO OVER THAT, BUT THEY HAVE TO, THEY HAVE TO DO A SUPERMAJORITY. AND THEIR FINDINGS TO DO THAT CAN ONLY BE FOR ONE YEAR AT A TIME.YES. WILL THERE EVER BE TAXES ON MARIJUANA SALES? I BELIEVE IF IT'S LEGALIZED THERE WILL BE SALES TAX COLLECTED ON IT AS THOUGH IT WAS A PACK OF CIGARETTES OR ANY OTHER COMMODITY. I MEAN, THERE'S EDIBLES AND OTHER STUFF, AND ANYTHING THAT'S ANYTHING THAT'S SOLD WOULD BE WOULD HAVE A SALES TAX ASSOCIATED WITH IT. IS THAT BEING LOOKED INTO NOW OR.
YOU KNOW, I DON'T KNOW THE CURRENT STATUS OF IT.
CERTAINLY I CAN DO A LITTLE WORK AND FIND OUT FOR YOU.
OKAY. JUST CURIOUS, BUT AGAIN, YOU'RE ONLY GOING TO GET A PORTION OF IT BASED UPON IT.
SO YOU'RE NOT GOING TO BALANCE THE BUDGET ON POT.
SOMEBODY WILL TRY TO. OH, OKAY. AND THEN WE HAD THE SPECIAL ASSESSMENTS.
YOU ALL KNOW THE RULES ASSOCIATED WITH THERE.
SO WHAT DOES WHAT DOES ALL THIS? OH, I'M SORRY, I SKIPPED OVER ONE.
HOW DO I GO BACK? SORRY. I'LL JUST RELY ON THE THE.
YOUR SHEET IS ON THE LAST SHEET OF THE BREVARD COUNTY SURCHARGE ON WATER.
SO ONE OF THE OPTIONS THAT CITIES HAVE IN THE STATE OF FLORIDA IS PUTTING A 25% SURCHARGE ON WATER SERVICE PROVIDED OUTSIDE WATER AND SEWER SERVICE PROVIDED OUTSIDE THE CITY.
SO IN PALM BAY HAS A UTILITY THAT GOES OUTSIDE THE CITY.
THAT MONEY THAT SURCHARGE CAN GO INTO THE GENERAL FUND.
THE STATE PASSED A LOCAL LAW BACK IN 94. IT WAS REALLY TARGETED AT MELBOURNE AND COCOA.
BUT IT AFFECTED PALM BAY AND IT BASICALLY PUT A 10% CAP ON WHAT YOUR WATER SURCHARGE CAN BE.
SO THAT MONEY, I'M NOT SURE WHETHER PALM BAY MOVES IT KEEPS IT IN THE UTILITY OR MOVES IT TO THE GENERAL FUND, BUT JUST KNOW THAT IT IS RESTRICTED IN THE. IN THE CITY OF PALM BAY AND OTHER BREVARD COUNTY CITIES.
SO WHAT DOES THIS ALL MEAN FOR YOU? IT IT MEANS THAT AS YOU LOOK AT THE BUDGET, THERE MAY BE A LOT OF THINGS YOU HAVE IDEAS THAT YOU WANT TO DO TO HELP RAISE REVENUE OR CURTAIL REVENUE, BUT THEY ALL HAVE EFFECTS ON THE BUDGET OR THEY ALL HAVE EFFECTS. SOME OF THOSE LEVERS, THE CITY CAN CONTROL MOST OF THE LEVERS THEY CANNOT.
BUT I THOUGHT TODAY WE SHOULD REALLY HAVE THIS DISCUSSION TO JUST START SETTING OUT THE FRAMEWORK.
AND SO I HOPE THAT THIS HAS BEEN SOMEWHAT ENLIGHTENING TO YOU.
SO I'M HAPPY TO TAKE ANY OTHER QUESTIONS THAT YOU HAVE? YES. SO WHEN DID WHEN DO WE ACTUALLY I MEAN, I DO HAVE QUESTIONS.
FOR INSTANCE, IN REVENUE AND INVESTMENT REVENUE.
DO WE HAVE AN INTEREST BEARING CHECKING ACCOUNT.
IS IT A SWEEP ACCOUNT. DO WE GET ANY REVENUE FROM THE MONIES DEPOSITED.
BUT THE INVESTMENT REVENUE. SO YES YOU DO. ON THERE, THE CITY HAS ADOPTED AN INVESTMENT POLICY THAT'S REQUIRED BY STATE STATUTE. ON THERE. I CAN ADD THIS TO THE AGENDA FOR NEXT MEETING AND INCLUDE A COPY OF THE CITY'S INVESTMENT POLICY.
[01:20:05]
THE CITY HAS DIFFERENT TYPES OF INVESTMENTS. ON THERE SOME ARE SHORT TERM AND SOME ARE LONG TERM.THE CITY HAS TO MAINTAIN SOME LIQUIDITY FOR EMERGENCIES AND THINGS ALONG THAT LINE.
GENERALLY THE THE WAY A CITY DOES THAT IS THEY HAVE A, A SWEEP ACCOUNT THAT HAS OVERNIGHT REPO ON THERE. SO THE BANK THAT IS HOLDING THE CITY'S FUNDS PROVIDES SOME SOME IMMEDIATE LOW INTEREST RETURN BASED UPON THAT, BUT THERE HAS TO BE A CERTAIN MINIMUM THAT IS KEPT IN THE ACCOUNT IN ORDER TO, TO ACHIEVE THAT. AND THEN THE CITY INVESTS CANNOT WHAT IT CAN'T DO IS INVEST IN, IN RISKY JUNK BONDS AND GENERALLY CAN'T INVEST IN EQUITIES. ALL THAT SET OUT IN THE INVESTMENT POLICY.
SO THEY'RE INVESTING IN SOMETIMES IT MAY BE CDS, IT MAY BE TREASURY BONDS.
IT MAY BE FANNIE MAE, FREDDIE MAC PHARM PHARM BONDS AND THINGS THAT ARE GENERALLY SECURED BY THE FEDERAL GOVERNMENT AND VERY HIGH GRADE COMMERCIAL PAPER ON THERE, BUT ALL THAT WOULD BE SET OUT IN THE INVESTMENT POLICY.
AND IF IT PROBABLY WON'T BE READY FOR NEXT NEXT MEETING, BUT I CAN PULL THE SECTION FROM THE FY 25 ANNUAL FINANCIAL REPORT IN THE NOTES SECTION.
THERE'S PROBABLY ABOUT TEN PAGES OR SO IN THERE THAT DISCUSSES WHERE ALL THE CITY SPECIFIC INVESTMENT AND THE RISK THAT'S ASSOCIATED WITH THOSE INVESTMENTS. SO I CAN PULL THOSE AND PUT THE INVESTMENT POLICY INTO THE AGENDA.
YES. MR. FELDMAN, CAN YOU CURRENTLY I KNOW WE PROBABLY ALL AWARE OF THE DISCUSSION IN THE LEGISLATIVE, LEGISLATIVE RIGHT NOW GOING ON WITH THE GOVERNOR GOVERNOR'S EFFORT TO ELIMINATE PROPERTY TAXES.
I GUESS MY NUMBER ONE QUESTION, WHAT WHAT WOULD THAT MEAN TO MUNICIPALITIES AS BEING THE BIGGEST PORTION OF OF OUR REVENUE? CATEGORY NUMBER TWO, DO YOU FROM YOUR EXPERIENCE IN GOVERNMENT, DO YOU FORESEE THAT EVER HAPPEN FOR REAL OR IS IT JUST POLITICAL GIMMICK? YOU CAN JUST GIVE OVERALL OPINION ON, ON THIS TWO QUESTIONS.
SO I'LL TAKE THE SECOND QUESTION FIRST. OKAY.
THE ONLY, I THINK THAT THE LEGISLATURE IS GOING TO PUT SOMETHING ON THE BALLOT.
I DON'T KNOW WHAT THAT WILL LOOK LIKE, BUT IT WILL CREATE SOME SORT OF PROPERTY TAX RELIEF.
ON THERE MAY NOT BE A COMPLETE REMOVAL. IT MAY BE PHASED FOR TEN YEARS.
IT MAY ON THERE. EVERY TIME I WALKED INTO A ROOM AND ASKED PEOPLE, DO YOU HOW MUCH OR DO YOU PAY TOO MUCH IN PROPERTY TAX? THE ANSWER IS ALWAYS YES, RIGHT? OR SOMETIMES IT MAY BE NO. BUT IF YOU ASK THE QUESTION, DO YOU WANT TO PAY LESS IN PROPERTY TAX? THE ANSWER IS ALWAYS YES. RIGHT. ON THERE, THE SAVING GRACE I THINK IS UNDER THE FLORIDA CONSTITUTION, YOU HAVE TO GET 60% OF THE VOTE. AND SO IF THERE'S ROBUST PUBLIC DEBATE AND EVERYBODY UNDERSTANDS THE THE EFFECT OF PROPERTY TAX LOSS ON LOCAL GOVERNMENT MAYBE IT WON'T GET TO 60%.
THE EXAMPLE I GIVE. WELL, TAKE THE EXAMPLE TONIGHT.
OKAY. THE THE $366,000 HOME THAT'S GOING TO PAY 1800 CLOSE TO 1900 IN PROPERTY TAX. OKAY. YOU'RE GETTING VALUE FOR THAT. YOU GET COPS, YOU GET EMS, YOU GET CODE ENFORCEMENT, YOU GET QUALITY PARKS, YOU GET STREET LIGHTS, YOU GET TRAFFIC SIGNALS, YOU GET STOP SIGNS, YOU GET ROADS, RIGHT? YOU HAVE LANDSCAPING IN THE MEDIANS AND THERE'S VALUE TO ALL THAT ON THERE, BUT WE DON'T REALLY CONVINCE PEOPLE OF THAT VALUE.
NOW I GET I PAY FOR YOU KNOW, I PAY FOR CABLE TV, RIGHT?
[01:25:09]
I GET LIKE 750 CHANNELS. OKAY. I GET, YOU KNOW, A COUPLE HUNDRED CHANNELS OF MUSIC.I GET TO STREAM STUFF, I GET HIGH SPEED INTERNET.
OKAY. I GET A PHONE LINE OUT OF ALL THAT, AND I PAY MORE A YEAR THAN I DO IN PROPERTY TAX.
WHY DO I DO THAT? OKAY. BECAUSE I UNDERSTAND THE VALUE, RIGHT? I CAN'T WATCH 700 CHANNELS AT ONCE. BUT I LIKE THE IDEA OF KNOWING I, I HAVE THAT ACCESS AND SO I WILL PAY FOR THAT VALUE.
NOW THE CABLE COMPANY RAISES MY RATES $5 A MONTH.
I JUST WRITE THE CHECK BECAUSE AGAIN, I UNDERSTAND THE VALUE THE CITY RAISES.
PROPERTY TAX, $5 A YEAR. OKAY. YOU'LL REMEMBER THIS, YOU KNOW, $5 A YEAR.
IT'S THE COUNTIES AND THE SCHOOL BOARDS AND ALL THESE OTHER.
SO IT'S A REALLY BIG NUMBER ON THERE. AND THE SCHOOL BOARD WILL BE EXEMPT.
SO AND THEY USUALLY HAVE A NUMBER THAT'S BIGGER THAN YOUR NUMBER, RIGHT? SO IT'S GOING TO COME DOWN TO CAN YOU CONVINCE PEOPLE OF THE VALUE OF THEIR PROPERTY TAX DOLLAR ON THEIR SUM? YOU WILL BE ABLE TO CONVINCE SOME YOU WILL NOT BE ABLE TO CONVINCE.
RIGHT. CITIES HAVE A BELL CURVE 10% ON ONE SIDE, 10% ON THE OTHER.
THAT'S HOW PROPERTY TAX REFORM WILL BE WON OR LOST AT THE BALLOT.
NOW, THERE WILL BE PEOPLE OUT THERE ARGUING THAT CITIES HAVE TOO MUCH MONEY, AND THAT'S WHY YOU NEED TO TO DO THIS AND THAT YOU DON'T NEED X AND YOU DON'T NEED Y, AND YOU DON'T NEED Z IN THE CITY. AND IF YOU CUT BACK PROPERTY TAXES, YOU'LL HAVE MORE FRUGAL CITIES.
SO THERE'S GOING TO BE ARGUMENTS ON BOTH SIDES, SOME OF WHICH WILL HAVE MERIT ON BOTH SIDES OF THE ISSUE TO NOW, YOU KNOW, WHAT WILL THE CITY DO? OKAY. IF WE'LL HAVE TO FIGURE OUT SOLUTIONS.
I MEAN, SOME SOME CITIES ALWAYS HAVE NICE TO HAVES.
THOSE NICE TO HAVES WILL PROBABLY GO AWAY. THERE ARE SOME ESSENTIALS.
SOME ESSENTIALS WILL GET CUT BACK TO THE BARE BONES.
YOU CAN LOOK AT COLORADO WITH THE TAXPAYERS BILL OF RIGHTS WHEN THESE THINGS GO INTO EFFECT.
THERE'S MASSIVE PROBLEMS AT THE MUNICIPAL LEVEL.
NOW OVER TIME THEY WORK THEIR WAY THROUGH. BUT THAT TIME COULD BE A DECADE, A DECADE AND A HALF.
AND THAT'S ONE OF THE THINGS THAT YOU'RE, YOU'RE SUPPOSED TO DO IS, YOU KNOW, WHAT ARE THE NICE TO HAVES VERSUS THE ESSENTIALS? I'LL TELL YOU ONE THING I LEARNED EARLY ON IS EVERY LINE ITEM IN A BUDGET, EVERY PROGRAM IN A BUDGET HAS A CONSTITUENCY, AND YOU'RE GOING TO HEAR FROM THEM WHEN SOMETHING IS ON THE CHOPPING BLOCK.
I HOPE THAT ANSWERED THE QUESTION. YEAH. I MEAN, I'VE I'VE BEEN FOLLOWING THIS THING.
I MEAN, I THINK THAT. I, I GET THE IDEA, BUT THE, THE UNDERSTANDING HOW, HOW DO WE FILL THAT VOID? THAT'S PROBABLY THE BEST ANSWER I'VE HEARD SO FAR.
CONSIDERING YOU KNOW, THE BULK OF THE REVENUE TO GET THE CITY GET UP OPERATING BUDGET IS FROM THE AD VALOREM TO GET RID OF THAT PARTIALLY. I UNDERSTAND IT'S JUST FOR, YOU KNOW, EXEMPTION ONLY, BUT I'M AFRAID AS A AS A LANDLORD, I'M GOING TO BE TAXED MUCH HEAVIER ON, ON MY INVESTMENT PROPERTIES VERSUS, YOU KNOW, DO TO THE FACT THAT WE'RE GONNA HELP, YOU KNOW, THE RESIDENTS, THE TAX EXEMPT RESIDENTS IN THIS SENSE.
I MEAN, KEEP IN MIND, THE MILITARY CAN ONLY GO TO TEN MILS.
OKAY. AND AND THERE ARE CAPS. I MEAN, THE CITY DOESN'T CONTROL WHAT THE TAXABLE VALUE IS.
[01:30:03]
SO AS A, YOU KNOW, AS A LANDLORD, YOU KNOW, YOU'RE GOING TO HAVE SOME PROTECTIONS ON THERE.BUT EVENTUALLY TEN MILS WILL, YOU KNOW, BE ACHIEVED PRETTY QUICK DEPENDING ON WHAT IS, YOU KNOW, TAXABLE IF ALL PROPERTY TAX GOES AWAY VERSUS JUST HOMESTEAD.
BUT THANK YOU. GOING FORWARD HOW ARE WE STRUCTURING WHAT WE'RE GOING TO DO. ARE WE GOING TO LOOK INTO DEPARTMENT BY DEPARTMENT? HOW ARE WE GOING TO TACKLE THE BUDGET? ARE WE GOING TO GO BY EACH DEPARTMENT TO SEE WHAT THEY DO, WHERE THE MONEY'S GOING? I'M JUST NOT QUITE SURE AS HOW DO WE TACKLE THIS? YOU KNOW, ONE BITE AT A TIME. SO THAT'S GOING TO BE UP TO THE TASK FORCE AMONG YOURSELVES TO DETERMINE WHAT YOU WANT TO DO.
AND, YOU KNOW, THE ORDINANCE, YOU KNOW, TOOK A WHILE TO GET ADOPTED.
IT GOT ADOPTED IN JANUARY. YOU ALL DIDN'T GET APPOINTED.
AND WE DIDN'T HAVE OUR FIRST MEETING UNTIL APRIL.
SO I WOULD TELL YOU FOR FISCAL YEAR 27 BUDGET THAT'S BEING PREPARED RIGHT NOW.
THIS IS PROBABLY AN OBSERVATION YEAR TO UNDERSTAND THE BUDGET, HOW IT'S THERE.
START ASKING SOME QUESTIONS, BUT NOT TO THE POINT WHERE YOU'RE GOING TO THIS YEAR.
PROBABLY FOR THE FY 28 BUDGET, YOU'LL BE IN MORE IN A, IN A SPOT.
SO I WOULDN'T RUSH TO FIGURE OUT HOW YOU'RE GOING TO TAKE THOSE BITES.
BUT START JUST OBSERVING THE BUDGET, START SEEING WHAT THE ISSUES ARE.
WE CAN TALK ABOUT SOME OF THE LEVERS THAT THE THAT WILL BE PROPOSED IN THE BUDGET ON THERE.
AND SO YOU CAN START FIGURING OUT WHAT TYPE OF INPUT YOU WANT TO HAVE AND WHEN.
ANY OTHER DISCUSSION? ALL RIGHT. THANK YOU SO MUCH FOR THAT ENLIGHTENING DISPLAY OF INFORMATION.
IT'S IT'S A LOT TO GO OVER AND IT'S AND IT'S A OPPORTUNITY FOR US TO TAKE WHAT IS STATE REQUIREMENTS OF WHAT THE CITY HAS TO WORK WITHIN AND THEN TAKE THAT INTO HOW WE CARRY IT ON THROUGH OUR OBSERVATION OF, OF HOW THE BUDGETS ARE CREATED AND AND THEN EXECUTED.
SO YOU KNOW, THIS IS, AS WE SAID, IT'S GOING TO BE A LEARNING EXPERIENCE FOR US ALL.
SO LET'S DO THE BEST WE CAN FOR THE CITIZENS OF PALM BAY.
SO MOVED. SECOND. MOTION CARRIED. THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.