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[00:00:01]

ALL RIGHT. WELCOME, EVERYBODY. EVERYBODY TO THE.

[CALL TO ORDER]

TO THE CITIZEN ACCOUNTABILITY TASK FORCE MEETING.

WHO HAS HE HAS HE EVER BEEN HERE? WHO'S THAT? I DON'T THINK SO. NO. WELCOME TO THE AGENDA OR THE CITIZEN ACCOUNTABILITY TASK FORCE MEETING FROM FOR JUNE THE 11TH OF 2026. FIRST CALL TO ORDER. FIRST ORDER OF BUSINESS IS THE PLEDGE OF ALLEGIANCE.

WOULD ANYBODY LIKE TO LEAD THE PLEDGE FOR TODAY? BE HONORED. THANK YOU. 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, FOR LIBERTY AND JUSTICE FOR ALL.

ALL RIGHT, SO WE'VE GOT ADOPTION OF MINUTES FOR MEETING LAST CALLED MEETING ON MAY 14TH, 2026 TO HAVE HAVE A MOTION TO

[ADOPTION OF MINUTES]

ACCEPT. I'LL MAKE THE MOTION A MOTION TO ACCEPT THE MEETING MINUTES OF OUR LAST MEETING.

DO I HAVE A SECOND? SECOND. SECOND FIRST. ANY DISCUSSION? WHO MADE THE MOTION? I MISSED THOMAS. DISCUSSION UPDATES OR FOLLOW UPS ON ANY OF THE THE PREVIOUS MEETINGS? ALL RIGHT. IF IF HEARING NONE WE'LL HAVE A VOTE TO ACCEPT.

ALL IN FAVOR, SAY AYE. AYE. ALL OPPOSED? NAY.

AYES UNANIMOUS ROLL CALL. OH, THERE WE GO. YEAH.

AND THAT'S RIGHT. ROLL CALL. MR. LEE. I'LL JUST NOTE FOR THE RECORD THAT VICE CHAIR FELIX AND DOCTOR DANTE ARE NOT PRESENT. ALL OTHERS ARE. THANK YOU. SO JUST ROLL THROUGH THAT.

OKAY. ALL RIGHT. I DON'T HAVE MY GLASSES, THOMAS.

SO YOU CAUGHT ME. ALL RIGHT. SO PUBLIC PUBLIC COMMENTS KIND OF LIGHT HERE TODAY.

[NEW BUSINESS]

SO WE'LL MOVE ON PAST THERE AND TO THE NEW BUSINESS DISCUSSION OF CITY OF PALM BAY INVESTMENT POLICY.

THANK YOU, MR. CHAIR. MEMBERS OF THE TASK FORCE.

YOU HAVE IN YOUR PACKAGE A COPY OF THE INVESTMENT POLICY AND A SUMMARY MEMORANDUM THAT I PREPARED.

LET ME JUST GO OVER THE THE POLICY IN GENERAL FOR YOU RIGHT NOW AND GIVE YOU THE ESSENCE.

SO JUST TO PUT THIS IN CONTEXT AS TO WHY THIS IS IMPORTANT, AND THIS IS AN ITEM THAT THAT MR. RANDALL BROUGHT UP AND ASKED TO BE INCLUDED IN THE TASK FORCE, THOUGHT IT WOULD BE A GOOD IDEA TO DO THAT.

SO WHY IT'S IMPORTANT. JUST PUT THIS IN CONTEXT.

THE CITY OF PALM BAY HAS, ON ANY GIVEN NIGHT, ABOUT $400 MILLION, A LITTLE BIT ABOVE $400 MILLION SITTING IN BANKS AND INVESTMENTS ON THERE. AND SO WHAT YOU DO WITH THAT $400 MILLION IS, IS PRETTY IMPORTANT.

SOME OF THIS MONEY IS IN RESERVES. SOME OF IT IS IN THE CHECKING ACCOUNT, SOME OF IT ARE BOND PROCEEDS, THERE ARE UTILITY REVENUES, AND THERE ARE MONEY THAT'S SET ASIDE FOR PROJECTS.

AND ALL THAT MONEY IS NEEDS TO BE MANAGED ON THERE.

SO THE CITY ADOPTS AND IT'S REQUIRED BY LAW TO ADOPT, ADOPT AN INVESTMENT POLICY.

AND THIS IS SORT OF THE THE RULE BOOK THAT THE CITY ADMINISTRATION HAS TO FOLLOW ON THE INVESTMENT OF FUNDS.

SO THE JOB TONIGHT ISN'T TO MATCH MONEY, BUT IT'S TO UNDERSTAND THE GUARDRAILS THAT ARE AROUND HOW THAT MONEY IS MANAGED.

AND SO YOU NEED TO KNOW UP FRONT THAT THIS IS A VERY CONSERVATIVE, LOW RISK POLICY.

AND THE WHEN YOU LOOK AT THE LAST AUDIT THAT WAS PERFORMED AS REQUIRED BY LAW, THE CITY IS OPERATING INSIDE THE THE GUIDELINES, THE INVESTMENT POLICY. SO THE THE, THE COUPLE OF POINTS I WANT TO POINT OUT.

SO FIRST, THE POLICY IS ADOPTED BY THE CITY COUNCIL.

THIS IT WAS LAST ADOPTED IN 2018. IT IS REQUIRED UNDER CHAPTER TWO, 18.415 OF THE FLORIDA STATUTES AND CHAPTER 280, WHICH TALKS ABOUT WHERE THE MONEY CAN BE DEPOSITED.

[00:05:03]

BUT 218 TALKS ABOUT HOW LOCAL GOVERNMENT FUNDS ARE INVESTED.

AND BASICALLY IT SAYS THAT YOU CAN'T INVEST IT IN RISKY VENTURES.

YOU CAN'T TAKE THE MONEY AND JUST INVEST IN THE STOCK MARKET.

YOU CAN HAVE A SMALL PORTION IN EQUITIES, BUT YOU HAVE TO MANAGE IT VERY PRUDENTLY AND RISK ADVERSE.

THE POLICY RIGHT NOW, SO, YOU KNOW, IS BEING LOOKED AT BY THE ADMINISTRATION.

THEY WILL PROBABLY BRING SOME CHANGES TO THE TO THE INVESTMENT POLICY DURING THE SUMMER PROBABLY AFTER THE RECESS TIME ON THERE. AND UNDER THE CURRENT POLICY, IT DIRECTS THE FINANCE DIRECTOR TO LOOK AT THE POLICY EVERY YEAR TO SEE IF THERE ARE CHANGES THAT NEED TO BE MADE. CANDIDLY, IT'S BEEN A WHILE SINCE THE, CITY COUNCIL OR THE CITY FINANCE DIRECTOR HAS LOOKED AT THIS.

AND UNDER THE CITY MANAGER'S GUIDANCE, ALL THESE POLICIES, INCLUDING THE INVESTMENT POLICY, ARE NOW BEING LOOKED AT AND UPDATED. I THINK MR. RANDALL ASKED LAST TIME ALSO HOW HOW'S THE OVERNIGHT MONEY BEING HANDLED? RIGHT. THERE'S MONEY RIGHT THERE AND SO IT ISN'T A SWEEP ACCOUNT.

BASICALLY, THE THE CITY RUNS ONE COMMON CASH AND INVESTMENT POOL, AND THE DAY TO DAY OPERATING ACCOUNT SITS IN A IN A BANK CHECKING ACCOUNT.

AND IT REDEEMS DAILY. AND SO IT GOES INTO STATE POOLS AND A MONEY MARKET ACCOUNT.

AND THAT THESE HOLDINGS BASICALLY ARE. AND IF I GET MY DECIMAL RIGHT .0003 YEARS.

SO IT'S LITERALLY NO DURATION AT ALL. SO THESE, THESE ARE INVESTMENTS THAT FLIP OVERNIGHT ON THERE.

AND SO UNDER SECTION 13 OF THE POLICY, IT SAYS THAT THESE IDLE CHECKING ACCOUNT BALANCES MAY BE SWEPT OVERNIGHT INTO THESE REPURCHASE AGREEMENTS PLACED WITH THE CITY'S DEPOSITARY BANK. AND BECAUSE THE OVERNIGHT TRANSACTION CAN'T BE BID OUT EVERY NIGHT, THESE SWEEPS ARE NOT COMPETITIVELY BID AND ARE EXCLUDED FROM THE POLICIES REPURCHASE AGREEMENT, CONCENTRATION LIMITS, AND THAT THIS IS THE SAFEST, MOST PRUDENT WAY OF HANDLING THE PORTFOLIO.

SO I WANT TO STRESS THAT THERE ARE THERE ARE THREE PRIORITIES.

AND THE ORDER OF THESE PRIORITIES MATTER. SO THE POLICY RANKS ITS GOALS DELIBERATELY SAFETY FIRST, LIQUIDITY SECOND AND RETURN LAST. SO THE CONCEPT REALLY HERE IS THAT DON'T LOSE THE PRINCIPLE.

MAKE SURE YOUR CASH IS THERE WHEN THE BILLS NEED TO BE PAID AND EARN A COMPETITIVE RETURN.

SO CHASING THESE HIGHER RETURNS IN THE MARKET, AS YOU MAY SEE, LIKE INVESTING IN THE SPACE IPO THAT JUST CAME OUT TODAY.

OKAY. THAT'S NOT ALLOWED. SO YOU HAVE TO YOU KNOW, YOU YOU HAVE TO LOOK AT AGAIN, THE SAFETY AND RETURN IS THE LAST THING THE THE GUARDRAILS KEEP IT SAFE. THERE ARE MATURITY LIMITS.

THERE'S DIVERSIFICATION AND CONCENTRATION LIMITS.

THERE'S CREDIT QUALITY FLAWS AND THERE'S THIRD PARTY CUSTODY.

SO WHAT DO THE NUMBERS SHOW JUST FROM LAST YEAR'S AUDIT.

THE PORTFOLIO SIZE IS ABOUT $435.1 MILLION. THAT WAS AS OF THE END OF LAST FISCAL YEAR, SEPTEMBER 30TH, 2024. THE EFFECTIVE DURATION IS 0.27 YEARS, WHICH IS EXTREMELY SHORT.

THAT TRANSLATES TO THE MONEY SITS IN VERY SAFE, VERY LIQUID, ALMOST CASH LIKE INSTRUMENTS.

MORE THAN HALF OF THE MONEY IS IN TWO STATE RUN TRIPLE A RATED POOLS.

AND THAT IS AS CONSERVATIVE AS A CITY IN FLORIDA CAN GET.

THERE ARE NO PRIVATE CORPORATE ISSUER EXCEEDS MORE THAN 2.3% OF THE PORTFOLIO.

SO THE DIVERSIFICATION REQUIREMENT IS BEING HONORED.

AND THE ENTIRE PORTFOLIO WAS HELD BY A THIRD PARTY CUSTODIAN AS A POLICY.

AND THE STATUTE BOTH REQUIRE. SO YES, ABSOLUTELY.

BOTH FLORIDA CRIME AND THE OTHER FLORIDA. INVESTMENT POOL.

ARE CAPPED OUT AT 25%, BUT WE'RE CURRENTLY RUNNING OVER THOSE.

ARE WE GOING TO RUN INTO THE SITUATION THAT WE DID? MR. MORTON HAD TO WRITE A CHECK BECAUSE ONE OF OUR INVESTMENTS DOESN'T DO TOO WELL.

WE HAD TO RETURN THE MONEY. KIM MEMBERS TO THE STATE OR THE FEDERAL GOVERNMENT? BUT ARE WE AT RISK OF GETTING INTO THAT TYPE OF SITUATION WITH THOSE OVERAGE ON FLORIDA PRIME AND FLORIDA PALM?

[00:10:07]

NO, AND FOR TWO REASONS. WELL, ONE, WHAT WHAT YOU'RE REFERRING TO THAT THE MANAGER HAD TO BRING TO THE COUNCIL TO WRITE A CHECK WAS ARBITRAGE ISSUES WHERE THE INVESTMENTS WERE EARNING MORE THAN THE COST OF BORROWING.

AND SO THE IRS BASICALLY PREVENTS A CITY FROM GOING OUT, GOING OUT THERE AND BORROWING MONEY AT A VERY LOW RATE OF RETURN AND INVESTING THAT MONEY AND EARNING TOO MUCH INTEREST. SO THAT WAS AN EFFECTIVE INTEREST RATE.

WHAT WE'RE LOOKING AT HERE IS A POLICY REQUIRES A 25%, BUT OCCASIONALLY YOU'RE GOING TO BE OUT OF BALANCE.

AND SO YOUR THIRD PARTY CUSTODIAN, ALONG WITH YOUR FINANCE DIRECTOR, WILL REBALANCE THE PORTFOLIO USUALLY ON AN ANNUAL BASIS.

SO YOU DO THE AUDIT, YOU SEE WHERE THESE NUMBERS ARE AND THEY'LL BRING THESE NUMBERS BACK DOWN TO 25 OR BELOW 25% AS REQUIRED.

BUT BEING WITHIN 1 OR 2% IS NOT A CONCERN. IF IF ONE IF THE ORDER CAME BACK AND SAID, YOU KNOW, THE FLORIDA PRIME WAS AT 40% OF THE PORTFOLIO, YOU'D HAVE A PROBLEM THAT YOU'D HAVE TO DEAL WITH.

SO THESE THESE ARE, YOU KNOW, WHAT I CALL ROUNDING ERROR TYPE OF ISSUES.

SO ANYWAY, THAT, THAT WAS BASICALLY MY MY PRESENTATION.

I'M HAPPY TO ANSWER ANY OTHER QUESTIONS THAT YOU ALL MIGHT HAVE.

YEAH. ONE OF THE POINTS I WANTED TO MAKE THAT YOU ACTUALLY HIT ON WAS YOU KNOW, A LOT OF FOLKS WILL, WILL FIND OUT OR WILL ASK, WELL, WHY CAN'T WE PUT IT IN PUT MONEY IN A MORE IN A HIGHER RATE OF, OF, OF RETURN. AND THAT'S A LOT OF TIMES THE HIGHER RATE OF RETURN IS A REQUIRED TIME IS, IS A REQUIREMENT.

AND AS YOU POINTED OUT, LIQUIDITY IS IS IMPORTANT.

SO YOU CAN'T PUT. JUST BECAUSE YOU'RE GOING TO GAIN 1 OR 2% IN INTEREST, BUT HAVE TO DEDICATE IT FOR A FIVE OR 10 OR 15 YEAR TERM. THE MOMENT YOU NEED IT, YOU CAN'T PULL IT OUT OR CAN'T PULL IT OUT WITHOUT A, WITHOUT A PENALTY. A LOT OF TIMES. SO YOU YOU ANSWER THAT QUESTION FOR ME.

THANK YOU. THERE'S AND THIS ALL REALLY SORT OF CAME ABOUT YOU MAY REMEMBER BACK IN THE EARLY 2000, ORANGE COUNTY, CALIFORNIA, WHICH WAS A COUNTY THAT WENT BANKRUPT BECAUSE THEY TOOK THEIR INVESTMENTS AND THEY HAD INVESTED IT IN DERIVATIVES SWAP AGREEMENTS. AND BASICALLY THE COUNTERPARTIES WENT SOUTH.

AND AND THE CITY BASICALLY HAD TO COME UP WITH A LOT OF CASH WHILE THEY HAD REALLY GOOD INVESTMENTS THAT THE PRIVATE SECTOR MIGHT HAVE DONE, THEY WERE RISKING PUBLIC MONEY AND THE RISK DIDN'T COME OUT.

AND SO THEY BASICALLY LOST ALL THEIR INVESTMENT MONEY OVERNIGHT AND WENT BANKRUPT.

AND AT THAT POINT, STATES LIKE FLORIDA SAID, WE'RE JUMPING IN.

WE'RE GOING TO MAKE SURE THIS DOESN'T HAPPEN WITH CITIES AND COUNTIES IN OUR STATES.

AND THEY PUT IN ALL THESE REQUIREMENTS TO FORCE CITIES TO BE VERY CONSERVATIVE AND RISK AVERSE IN THEIR POLICIES.

MAY I JUST HAVE ONE QUESTION? THE FINANCE DIRECTOR IS A DESIGNEE FOR THE CITY.

WHAT KIND OF TRAINING AND ANNUAL CONTINUING EDUCATION DOES IT TAKE FOR THAT? IT TAKES SOME THE FLORIDA STATUTES ACTUALLY REQUIRES UNDER CHAPTER 218 THAT THE FINANCE DIRECTOR TAKE CONTINUING TRAINING.

THEY DON'T SUBSCRIBE OR THEY DON'T PRESCRIBE EXACTLY WHAT THAT IS.

BUT, YOU KNOW, THE MANAGER AND THE FINANCE DIRECTOR ARE RESPONSIBLE FOR MAKING SURE THAT THEY ATTEND THE RIGHT TYPE OF SEMINARS AND THAT THEY'RE THEY'RE DOING THE ONGOING PROFESSIONAL TRAINING THAT'S REQUIRED.

ANY OTHER COMMENTS FROM THE MEMBERS HERE? ALL RIGHT.

THANK YOU. SO ITEM TWO ITEMS FOR FUTURE BUSINESS.

IF YOU'RE ARE YOU THAT THAT'S THE END OF YOUR.

OKAY. WE'LL ENTERTAIN ANY ITEMS FOR FUTURE BUSINESS WE'D LIKE TO, TO BRING UP FOR DISCUSSION.

SO I HAVE SOME SUGGESTIONS IF JUST TO GET THE DISCUSSION GOING.

SO I'VE BEEN TRYING TO FORECAST REALLY WHAT YOU, YOU ALL MAYBE WANT TO TALK ABOUT.

ARE THERE. SO I WAS THINKING, AND AGAIN, THIS IS JUST MY, MY THOUGHTS NEXT MONTH.

IT WOULD BE PROBABLY APPROPRIATE TO REVIEW ASSUMING ITS AVAILABILITY.

THE ANNUAL COMPREHENSIVE FINANCIAL REPORT THAT WOULD BE FOR THE YEAR ENDING SEPTEMBER 30TH,

[00:15:02]

2202525 ON THERE. THAT WOULD BASICALLY BE THE BOOKS ON THERE.

AND GIVE YOU A HISTORICAL PERSPECTIVE OF WHERE THE CITY STARTED THE FISCAL YEAR AT, WHAT ALL THE FUND BALANCES ARE, HOW THE INVESTMENTS ARE DOING. JUST LIKE WE LOOKED AT THIS INVESTMENT, OTHER FACTORS THAT MAY BE OF INTEREST TO THE TASK FORCE, THE AND THE REASON WHY I SAY THAT YOU SHOULD POTENTIALLY LOOK AT THAT FIRST, IS THAT WOULD THEN LEAD INTO A DISCUSSION IN AUGUST WHERE, AGAIN, THIS IS YOUR LEARNING YEAR WHERE YOU COULD TAKE A LOOK AT THE MANAGER'S PROPOSED BUDGET.

IT WILL BE OUT BY THEN. AND IT WILL BE BEFORE THE PUBLIC HEARINGS.

YOU MAY HAVE SOME INPUT, BUT YOU'RE NOT REALLY GOING TO BE IN THE WEEDS ON IT AS YOU MAY BE IN FUTURE YEARS, BUT IT WILL GIVE YOU AN IDEA OF WHAT'S IN THE BUDGET AND HOW THE BUDGET IS CONSTRUCTED AND HOW IT PLAYS INTO THE FINANCIAL POSITION OF THE CITY BASED UPON THE FINANCIAL REPORT IN JULY. AND THEN FOR SEPTEMBER BECAUSE, YOU KNOW, AT THIS POINT, THERE'S A BALLOT MEASURE ON THE NOVEMBER BALLOT. I THOUGHT IT MIGHT BE INTERESTING TO, TO TALK ABOUT PROPERTY TAX REFORM IF THE BALLOT MEASURE PASSES.

WHAT POTENTIAL EFFECT WOULD THAT HAVE ON THE CITY OF PALM BAY.

AND GET YOUR INPUT. BECAUSE I THINK THE MANAGER WOULD VALUE YOUR INPUT INTO AREAS THAT MAY NEED SOME TRIMMING OR REVENUES THAT COULD BE INCREASED. RIGHT. BECAUSE THIS IS A, A ZERO SUM GAME.

IF THE BUDGET HAS, I'LL JUST MAKE UP A NUMBER.

SO THIS IS NOT A REAL NUMBER, BUT LET'S SAY $15 MILLION LESS IN IT BECAUSE OF LOSS OF HOMESTEAD PROPERTY TAX ASSOCIATED WITH HOMESTEAD EXEMPTION. THEN YOU HAVE A CHOICE. YOU COULD RAISE REVENUES TO MEET THAT 15 MILLION, OR YOU COULD REDUCE EXPENDITURES BY 15 MILLION OR SOME COMBINATION THEREOF. AND AND SO I THINK, YOU KNOW, YOUR MANAGER, I DON'T WANT TO SPEAK FOR HIM, BUT I WILL TELL YOU, MY CONVERSATIONS WITH MANAGERS AROUND THE STATE IS THEY'RE ALL GOING TO BE LOOKING FOR INPUT AS TO WHAT, YOU KNOW, WHAT COMBINATION SHOULD THAT BE? SHOULD WE OR CAN WE EVEN MAYBE WHERE REVENUES ARE MAXED OUT ARE THERE, SHOULD WE TRY TO INCREASE REVENUES? SHOULD WE LOOK AT EXPENDITURE CUTS? AND IF WE DO NEED TO LOOK AT EXPENDITURE CUTS WHERE.

RIGHT. BECAUSE EVERY LINE ITEM IN THE BUDGET HAS A CONSTITUENCY.

SOMEBODY'S GOING TO WANT IT. SO ANYWAY, THAT THAT'S WHAT I WAS THINKING.

JULY. FINANCIAL STATEMENTS OR AUGUST BUDGET. SEPTEMBER PROPERTY TAX REFORM AS BEING YOUR TOPICS FOR DISCUSSION. YEAH. KIND OF. YEAH. YOU STOLE MY THUNDER.

I WAS GOING TO ASK BECAUSE I KNOW THERE'S ALREADY WEBSITES OUT THERE THAT SAYS, YOU KNOW, PUT IN YOUR ADDRESS AND IT'LL POPULATE WHAT YOU WOULD SAVE.

SO THAT WOULD, I DON'T KNOW, FROM A, FROM A CITY WIDE STANDPOINT, COULD WE ALREADY PUT NUMBERS, ESTIMATE NUMBERS OF HOW IT WOULD IMPACT AND YOU KNOW, FROM A PURE NUMBERS STANDPOINT TO THE BUDGET.

BUT YEAH, THAT WOULD BE DEFINITELY SOMETHING WE NEED TO TALK ABOUT.

AND THEN YOU KNOW, INFORM AS MUCH AS POSSIBLE AS SO EVERYONE CAN MAKE AN INFORMED DECISION AS THEY CAN COME NOVEMBER.

SO FOR SURE, I WOULD, I WOULD APPRECIATE THAT.

MR. CHAIR, CAN I STEP UP ON MY SOAPBOX HERE FOR A MINUTE? YES. FOR YEARS THE LEGISLATURE HAS DONE NOTHING BUT WHITTLE AWAY AT HOME RULE AND DEPRECIATE IT.

AND I SEE THIS AS NOTHING MORE THAN THE FINAL ATTEMPT TO JUST TOTALLY DEFUND HOME RULE.

WHILE THE CITY CAN'T ADVOCATE FOR OR AGAINST THE BALLOT MEASURE, THE CITY CAN MAKE THE CITIZENS OF AWARE OF WHAT THEIR PROPERTY TAXES ARE PAID FOR BY PUTTING UP SIGNAGE ON, LIKE TED WHITLOCK OR TONY ROSA AND THE DIFFERENT PLACES THAT THOSE PROPERTY TAXES SUPPORT.

THAT WOULD BE IN JEOPARDY IF THEY'RE NOT, YOU KNOW, IF THEY GO AWAY.

SO I THINK THAT'S IMPORTANT FOR THE CITIZENS TO KNOW.

AND PUTTING, YOU KNOW, PUTTING THAT OUT THERE IN FRONT OF THEM MAY SWAY A VOTER TO.

YEAH, I AGREE. AND LIKE I SAID, IF WE KNEW WHAT THE IF WE HAD A GOOD ESTIMATION OF WHAT WAS BEING IN WHAT WAS, HOW THE IMPACT WOULD BE ON OUR, OUR BUDGET, WHAT THE ACTUAL NUMBER WOULD LOOK LIKE.

THEN YOU CAN GAUGE THAT NUMBER TO THE ITEMS THAT THAT WE ARE AS A AS A CITY.

YOU KNOW, PUTTING TOWARDS FUNDING THE POLICE DEPARTMENTS, THE PARKS, THE, ALL THE, THE PUBLIC WORKS.

[00:20:03]

YOU KNOW, HOW, HOW DOES THAT OVERLAY AND WHERE WOULD THAT, WHAT WOULD IT REMOVE? AND WHAT WOULD THAT WOULD LOOK LIKE IF YOU DIDN'T, IF YOU REMOVED IT? SO YOU HAVE TO HAVE THOSE CONVERSATIONS NOW BEFORE AN ACTION HAPPENS AND THEN YOU'RE FORCED INTO A, INTO A PATH. SO YEAH, SO, SO THAT'S WHAT I THOUGHT WOULD BE YOUR NEXT 90 DAYS WORTH OF TOPICS. BUT THAT'S JUST MY THOUGHTS.

YEAH. NO, YEAH, I WOULD, I WOULD SUPPORT THAT CONVERSATION.

I AGREE. YEAH. IS THERE ANYTHING ELSE YOU WANT TO ADD IN THERE.

AND WHICH MONTH WOULD YOU LIKE TO ONE OF, ONE OF MY INITIAL CONVERSATIONS WAS AGAIN, WITH ALL THE EXEMPTIONS AND YOU GAVE ME A GOOD RESOURCE.

IN OUR FIRST CONVERSATIONS AND THAT MIGHT ACTUALLY, I DON'T KNOW, I DON'T THINK IT EVER MADE IT INTO ONE OF OUR PACKETS, BUT BECAUSE I THINK YOU JUST SENT ME AN EMAIL LINK INCLUDING THE DISTRIBUTION OR THE, THE IMPACT TO THE EXEMPTIONS AS IT SITS TODAY WOULD BE A GOOD THING TO SEE.

AND THAT WILL ALSO HIGHLIGHT THE ADDITIONAL CUTS OF IN THE REVENUE STREAMS. IF IF THE MEASURE IS APPROVED. SO IT WOULD KIND OF GIVE YOU A, THIS IS WHAT OUR EXEMPTIONS LOOK LIKE TODAY AND HOW IT'S SPREAD ACROSS EVERYONE ELSE.

HERE'S HOW IT WOULD LOOK LATER. AND THEN BECAUSE JUST FOR, FOR CONTEXT AND CLARITY FOR EVERYONE TO SEE, I DO HAVE ONE MORE THING DOWN THE ROAD WOULD BE IMPACT FEES, NEXUS FAIR USE HOW YOU CAN TAKE MONEY FROM ONE NEXUS AND BUILD A PARK IN ANOTHER NEXUS, BECAUSE THOSE PEOPLE ARE GOING TO USE THAT PARK.

THERE'S A LOT OF CONFUSION. AND I THINK IF IT WAS DISCUSSED HERE, WE COULD PRETTY MUCH MAKE A VIDEO ABOUT IT AND MAKE THE COMMUNITY AWARE OF IT IN THE FUTURE, BECAUSE THERE'S A LOT OF MISCONCEPTION ABOUT WHAT YOU CAN DO WITH IMPACT FEES.

WOULD YOU LIKE TO ADD THAT TO JULY, AUGUST, SEPTEMBER MEETING? IT CAN BE FURTHER DOWN THE ROAD, BUT AT SOME POINT I'D JUST LIKE, I MEAN, I, I THINK I HAVE A FAIRLY GOOD UNDERSTANDING OF THEM, BUT I GET TIRED OF HAVING THE SAME CONVERSATION TRYING TO EXPLAIN THEM.

YEAH. I THINK YOU, YOU TOUCHED ON THAT A LITTLE BIT LAST WEEK OR LAST MEETING.

BUT YEAH, IT WAS THAT DISCUSSION WAS BROAD AND, YOU KNOW, ENCOMPASSING DIGGING INTO SOME OF THOSE NUANCES.

AGAIN, EVERY AVENUE THAT WE PROVIDE TO, TO PROVIDE INFORMATION HELPS KIND OF STACK KNOWLEDGE ACROSS THE OBVIOUSLY THE MULTIPLE TWO TO PEOPLE THAT WATCH THIS, YOU KNOW, KEEP IN MIND, THIS IS NOT MY AGENDA.

IT'S YOUR AGENDA. SO WHEN YOU WANT TO TALK ABOUT A TOPIC, I THINK IT'S IMPORTANT THAT WE INFORM THE MILLIONS OF PEOPLE WATCHING.

ABSOLUTELY, ABSOLUTELY. SO FROM A, FROM A STANDPOINT, I WOULD BE FINE.

I WOULD, I WOULD, I WOULD ENCOURAGE AT LEAST THOSE TWO TOPICS THAT WE CAN START ON.

AND THEN AS, AS WE ALL BECOME MORE ACCUSTOMED TO WHAT WE'RE TALKING ABOUT, WHAT, WHAT WHAT WE WOULD LIKE TO HEAR, WE'LL CAN BRING THOSE TO OUR NEXT MEETINGS AND OR EMAIL.

LEE AND THEN LEE WILL COME TO ME FOR, FOR SETTING THE, THE NEXT MONTH'S AGENDA OR SO WE CAN EITHER COME TALK IT HERE OR COMMUNICATE. CAN'T, THEY CAN'T SEND ME THE EMAIL WITH THE, BUT SEND ME STUFF.

YEAH. SO. YES, MA'AM. I'M GOING TO BE THE VILLAIN IN THE ROOM.

FROM WHAT I UNDERSTAND. AND THIS IS A CITIZENS ADVOCACY TASK FORCE.

WE'RE HERE FOR THE CITIZENS. IT IS MY UNDERSTANDING THAT THE CITY OF PALM BAY, OUT OF ALL THE REVENUE THEY COLLECT, OVER 70% IS FOR PERSONNEL AND BENEFITS.

SO THE CITY HAS TO RUN ON LESS THAN 30%. THAT'S ROADS, WATER, SEWER, ALL OF THOSE ITEMS. AND FROM WHAT I HAVE RESEARCHED, IDEALLY YOU WANT TO KEEP PERSONNEL AND BENEFITS AT LEAST MINIMUM, AT LEAST 65% MORE. SO TOWARD 57 TO 60 WOULD BE WHERE YOU WOULD LIKE TO BE. SO I'D LIKE TO LOOK AT PERSONNEL AND SEE WHY WE ARE OVER 70% OF OUR BUDGET GOES TO PERSONNEL AND BENEFITS.

[00:25:04]

ANOTHER THING THAT I WOULD LIKE TO DISCUSS, AND I TRIED TO GET IT THROUGH THE CHARTER REVIEW COMMITTEE.

I WOULD LIKE TO SEE A LONG TERM FINANCE OR A RESERVE FOR THE LIFE CYCLE OF ROADS AND OUR WASTEWATER AND WATER TREATMENT.

WE HAVE TO PLAN FOR EXPENSES 20 YEARS FROM NOW.

WE CAN'T DO IT THE WAY WE HAVE BEEN DOING IT.

YOU KNOW, JUST. GOING ALONG WITH 2 OR $3 MILLION EVERY YEAR IN RESERVE TO FIX THE POTHOLES AND AND RESURFACE A COUPLE ROADS. THAT'S THAT'S JUST NOT THE WAY TO DO IT.

YOU'VE GOT TO THINK LONG TERM. YOU HAVE TO THINK AT LEAST 15, 20 YEARS DOWN THE ROAD.

THAT MONEY SHOULD BE SET ASIDE IN A RESERVE. AND JUST LIKE ANY HOMEOWNER'S ASSOCIATION, THEY HAVE A CHARGE FOR DEFERRED MAINTENANCE. WE HAVE TO DO THE SAME THING.

SO I WOULD LIKE TO REALLY DISCUSS THAT. SO THOSE ARE MY $0.02.

IF I COULD JUST TELL YOU WHERE I THINK WE COULD FIT THAT IN.

SO ON THE THE ISSUE ABOUT RESERVES, THAT WOULD BE A REALLY GOOD PIECE TO TALK ABOUT WHEN WE LOOK AT THE FINANCIAL REPORT NEXT MONTH, BECAUSE THAT'S WHERE THE RESERVES WILL BE TALKED ABOUT.

OUT AND WE CAN MAKE SURE THAT WE TOUCH ON THAT.

AND WITH REGARD TO THE PERSONNEL COSTS IN AUGUST, WHEN WE LOOK AT THE BUDGET, THAT WOULD BE A PERFECT TIME TO TALK ABOUT THE PERSONNEL AND WHAT PERCENT OF THE BUDGET IS PERSONNEL RELATED VERSUS WHAT YOU TALKED ABOUT.

MAYBE A BEST PRACTICE. SO WE CAN WE CAN BRING BOTH OF THOSE TOPICS UP IN THE JUNE AND JULY, I'M SORRY, JULY AND AUGUST MEETINGS. THANK YOU.

ONE, BECAUSE THE RESERVE PIECE IS ONE THING I'VE KIND OF LOOKED AT IN OTHER AREAS AND WHAT I HAD FOUND OUT, AND I'M NOT SURE IF THERE'S A STANDARD OR A BEST PRACTICE.

BUT I THINK THE REASON THE LONGER TERM, YOU CAN FORECAST THE BETTER YOU THINK YOU CAN MANAGE THE PROBLEM THAT, THAT WE'VE ALREADY ALWAYS RUN INTO. AND AGAIN, THIS IS WHERE I DON'T KNOW IF THERE'S A STANDARD OR ANYTHING THAT THAT PEOPLE LOOK AT.

YOU DON'T, ESPECIALLY TODAY, WE DON'T EVEN KNOW WHAT THE COSTS OF X, Y IS GOING TO X, Y, Z IS GOING TO BE SIX MONTHS FROM NOW.

A LOT OF TIMES. AND SO THAT THAT ENDS UP BEING THE BIGGER PROBLEM IS THAT 20 YEAR NUMBER HAS SUCH A WIDE RANGE OF, OF WHAT IT'S GOING TO ACTUALLY COST 20 YEARS FROM NOW.

AND THAT'S, THAT'S WHY A LOT OF TIMES THE STANDARDS ARE 3 TO 5 YEAR.

BUT I MEAN, BUT THERE'S STILL WAYS THAT WE CAN LOOK AT ESTIMATING A LONG TERM, MAYBE, MAYBE NOT THE COST OF A COMMODITY, BUT THE COMMODITY THAT WE WOULD HAVE TO LOOK AT 20 YEARS FROM NOW.

AND THAT WAY WE CAN DEFINITELY UNDERSTAND LIKE THE ROAD STANDPOINT, WE, WE KNOW THERE'S A LIFESPAN FOR A ROAD IN GENERAL, BUT WE DON'T KNOW WHAT IT'S GOING TO COST TO FIX IT WHEN IT COMES UP TO, TO BUT YEAH, THE OTHER PIECE OF THAT IS WHEN WE STARTED THE ROAD BOND PROGRAM, THE FIRST TWO BIDS THAT WENT OUT CAME IN 30% BELOW THE PROJECTED COST.

THEN COVID HIT AND THE COST OF ASPHALT WENT THROUGH THE ROOF.

AND THAT'S HOW WE ENDED UP UNDERWATER WITH THE ROAD BOND PROGRAM WAS BECAUSE THAT COST AND THERE WAS NO WAY ANYBODY COULD PROJECTED WHAT ASPHALT WAS GOING TO DO BACK THEN. ABSOLUTELY. BUT I THINK THE BIGGER WHAT I WHAT I LOVE, WHAT I WOULD LIKE TO SEE IS MAYBE NOT A COST OF FORECAST, BUT A WHAT THE LIST OF WHERE THE ITEM THAT WE WOULD HAVE TO ADDRESS TEN, 15 YEARS FROM NOW. AND THAT WAY PEOPLE CAN MONITOR.

OKAY. YOU KNOW, AS A PRICE INCREASES. YEAH, YEAH.

SO. YES, MA'AM. BASICALLY IN MY YOUNGER YEARS I, I WAS A COMMUNITY ASSOCIATION MANAGER AND VERY FAMILIAR WITH LONG TERM RESERVES.

AND HOW YOU HANDLE THAT YOU. YOU PUT ASIDE X AMOUNT OF DOLLARS FOR YOUR LONG CYCLE.

CYCLE RESERVES, BUT ON EITHER A YEARLY OR. EVERY TWO YEARS YOU REVISIT THE COST. SO THAT YOU'RE NOT DEFERRING AN EXPENSE TODAY WITHOUT ADJUSTING EVERY YEAR OR EVERY

[00:30:08]

OTHER YEAR. WHAT THE COST PROJECTION WOULD BE.

SO THAT'S HOW THAT'S HANDLED. RESERVE A RESERVE FUND.

RESERVE FUND STUDY. YOU JUST LOOK AT IT AND COMPARE.

OKAY. WE WE ANTICIPATE THE COST TO BE X AMOUNT OF DOLLARS PER ROAD FOR PER MILE OF ROAD.

WHAT IS THE COST TODAY, TWO YEARS FROM NOW. AND THEN YOU ADJUST THAT RESERVE ACCORDINGLY SO IT CAN BE HANDLED AND YOU KNOW, THE EXCUSE OF, WELL, WE JUST DON'T EVEN HAVE THE MONEY FOR OUR OUR ROADS NOW.

THAT IS THE RESPONSIBILITY OF THE CITY. THAT IS THE RESPONSIBILITY.

THE ROADS AND THE POLICE AND THE FIRE. ANYTHING ELSE IS FLUFF.

SO THAT'S A MUST IN MY BOOK. ABSOLUTELY. DID DID YOU.

SO I GUESS THE ONE PIECE I HAD FROM A STANDARD STANDPOINT, IS THERE SUCH A STANDARDS OR BEST PRACTICE FOR RESERVE STUDY? HOW LONG IN THE FUTURE THAT YOU WOULD LOOK AT.

YES AND NO. SO WATER AND SEWER IS A CLASSIC EXAMPLE THERE.

YOU KNOW, IT'S PRETTY SIMPLE. AND WHEN YOU LOOK AT YOUR FINANCIAL STATEMENTS, YOU'LL SEE THAT THE WATER AND SEWER HAS A FUND CALLED RENEWAL AND REPLACEMENT, WHICH IS MONEY THAT IS SET ASIDE FOR RESERVES BASED UPON LIFE CYCLES.

ROADS ARE A LITTLE BIT MORE COMPLICATED BECAUSE THEY TEND TO BE THERE COMPETE FOR AS MR. RANDALL SAID, YOU KNOW, SAME MONEY THAT YOU MAINTAIN PARKS WITH ARE THERE.

AND SO THOSE BECOME THE DECISIONS THAT THE POLICY MAKERS HAVE TO MAKE IN TERMS OF HOW DO YOU WANT TO MAINTAIN YOUR FACILITIES, ROADS BEING ONE OF THEM? YOU HAVE OTHER FACILITIES THAT THAT ALSO COMPETE FOR MAINTENANCE COSTS.

ROADS GET EVEN A LITTLE BIT MORE COMPLICATED BECAUSE THERE'S A, THERE'S A CURVE, RIGHT? THAT AT SOME POINT THE ROAD IF IT'S MAINTAINED, YOU KNOW, EVERY COUPLE YEARS WITH SOME IMPROVEMENTS CAN LAST A LONG TIME. BUT IF YOU LET A ROAD DETERIORATE AT SOME POINT, IT NEEDS TO BE RIPPED UP AND REPLACED BECAUSE IT'S BEYOND, BEYOND FIXING. SO WE CAN CERTAINLY TALK ABOUT THAT AGAIN, BOTH IN JUNE AND JULY.

ON THERE, I'M NOT SURE IF THE CITY STILL DOES A PAVEMENT MANAGEMENT INDEX WHERE IT LOOKS AT ALL THE, YOU KNOW, THE SEGMENTS OF THE ROADS AND THE CONDITION OF EVERY SEGMENT OF THE ROAD.

ARE THERE, BUT, YOU KNOW, WE CAN CERTAINLY HAVE A DISCUSSION ABOUT IT, ESPECIALLY AS YOU TALK ABOUT PRIORITIES.

THEY JUST DID A PCI STUDY. OKAY. WITHIN THE LAST THREE MONTHS.

YEAH. ALL RIGHT. SO WE'VE GOT KIND OF THREE TOPICS.

IF YOU WOULDN'T MIND TAKE THOSE THREE TOPICS AND WE'LL, WE'LL, IF YOU CAN FORMULATE A FOR THE BEST USE OF EVERYBODY'S TIME. EITHER IF THEY ALL OVERLAP AND WE CAN DISCUSS THE NEXT, IN THE NEXT MEETING OR IF WE CAN HANDLE TWO, TWO MEETING 1 OR 2 OF THE TOPICS AND THEN BRING THE NEXT INTO THE, INTO THE FOLLOWING.

SO YEAH, GREAT. THANK YOU. ALL RIGHT. ANY OTHER BUSINESS? I HAVE OH. I'M SORRY. NO I'M SORRY. I WAS JUST I'VE BEEN LISTENING, WHICH IT'S AN ART FORM.

BUT ANYWAY, I WANTED TO TALK TO YOU ABOUT TO THE IMPACT FEES PART AND THE PROPERTY TAX CHANGE.

IT'S NOT GOING TO AFFECT THE RENTER DIRECTLY, BUT IT WILL AFFECT THE LANDLORD.

SO THE KEY, IF THAT MESSAGE GETS OUT THERE, THE PEOPLE THAT ARE RENTING WILL DEFINITELY VOTE AGAINST IT BECAUSE SECURITY CAN GO.

YOU KNOW, PEOPLE THAT RENT HOMES, THEY CAN'T HAVE YOU KNOW, THEY WOULD HAVE ADDITIONAL THERE WOULDN'T BE HOMESTEAD.

SO THEY WOULD HAVE THEIR REGULAR PROPERTY TAX TO PAY.

AND THE PEOPLE HAD NO PRIMARY RESIDENCE HERE FROM OTHER STATES.

THE SAME, SAME THING THAT THAT COULD HAVE. SO HOW CAN WE REALLY, AND IN MY CASE, I PAY MORE TAX HERE WHEN I MOVED DOWN HERE BECAUSE TAXES WERE LOW, BUT I FORGOT ABOUT THE IMPACT FEES. SO I PAID LIKE $3,300 A MONTH.

I LIVE IN TILLMAN LAKES AND THAT'S BEING BUILT OUT.

SO THAT ASPECT IS NOT GOING AWAY FROM MY TAXES ANYTIME SOON.

SO YOU KNOW, THAT'S ANOTHER ISSUE TOO WITH ALL THE NEW PEOPLE THAT ARE THAT ARE MOVING IN AND I'M A PART OF THAT.

BUT HOW MUCH IS THE PROPERTY TAX GOING TO SAY, YOU KNOW, THE AND THAT WAS THAT'S WHY I'D LIKE TO SEE THAT THAT,

[00:35:08]

THAT EXEMPTION BREAKDOWN. BECAUSE THAT SHOWS YOU WHERE THE MULTITUDE OF, OF EXEMPTIONS THAT WE HAVE IN THE STATE, HOW THAT IN, YOU KNOW, WHERE THAT MONEY KIND OF MOVES AROUND AND WHERE IT SITS AND WHERE, WHERE IT THEN GETS LAID ON EVERYONE ELSE, LIKE SOMEONE LIKE, LIKE SOMEONE WHO DOESN'T HAVE ANY OF THE EXEMPTIONS.

SO BECAUSE YEAH, I, I TOO WAS A LITTLE SHOCKED OF YOU KNOW, WHEN I MOVED DOWN BUT RELATIVELY SPEAKING, WE'RE STILL REALLY LOW FROM AY AY AY AY AY OVERALL BUT BUT YEAH.

LEE YOU'RE GOING TO SAY SOMETHING. NO NO. OKAY.

YEAH. I HAVE ONE MORE ITEM. YEAH. GO AHEAD. THIS IS A PERSONAL REQUEST.

YOUR NEXT MEETING IS JULY 9TH. AFTER THAT, YOUR NEXT MEETING AFTER THAT IS AUGUST 13TH.

I WAS WONDERING IF POTENTIALLY YOU WOULD CONSIDER MOVING YOUR AUGUST 13TH MEETING TO AUGUST 6TH.

WHICH WOULD BE THE WEEK BEFORE. THAT WOULD HELP ME DEAL WITH A PERSONAL MATTER.

SO IF NOT, I WILL ADJUST MY CALENDAR. THIS IS THE.

YEAH. I'M AVAILABLE. IS THE ROOM AVAILABLE? YEAH.

IS THE ROOM. DID YOU VERIFY IF THE ROOM? I DIDN'T VERIFY, BUT I'LL CHECK WITH TERESE.

I'LL DO THAT NEXT. YEAH. SO. WELL, THIS AUGUST 6TH WILL BE THE FIRST THURSDAY.

SO THAT'S A COUNCIL MEETING NIGHT. OH, OKAY. WE CAN PUSH THEM OUT.

YEAH, YEAH. PRESIDENT. WELL, SINCE WE'RE TALKING, YOU KNOW, A MONTH AND A OVER A MONTH AWAY. RESEARCH WHEN WHEN WOULD BE THE NEXT OPENING AND AVAILABILITY AND LET ME KNOW AND WE'LL AND WE'LL MAKE ADJUSTMENTS AND MAYBE SHIFT IT TO ANOTHER DAY OF THE WEEK. AND I'M, I'M OPEN TO THAT AS WELL.

SO WHATEVER WE NEED TO DO. YEAH. YEAH. JUST, JUST LET ME KNOW AND WE'LL MAKE THAT MOTION.

THANK YOU. ALL RIGHT. ALL RIGHT. PRODUCTIVE I LOVE IT.

CONVERSATION. ANYTHING ELSE? ALL RIGHT. IF THERE'S NONE, I CALL FOR VOTE TO ADJOURN.

ENTERTAIN A MOTION. SECOND. THE MOTION. SECOND.

ALL RIGHT. MOTION. MOTION TO ADJOURN. YOU MADE THE MOTION.

* This transcript was compiled from uncorrected Closed Captioning.