#5(b)  CITY COUNCIL BUDGET WORKSHOP August 1, 2024 = 6:00 P.M.  MINUTES  1.CALLTO ORDER: Mayor Tyson called the meeting to order at 7:00p p.m.  2. ROLL CALL: ABSENT:  PRESENT: Council Member Herrera, Council Member Salgado, Council Member Hernandez, Attorney Dill, ALSO, PRESENT: Chief Keith Touchberry, Utility Director Kevin Burge, Finance Director Claudia Alvarado, Public Works Director Andy Shelton, City Planner RobertLoring and Grant Administrator Laura Hammer. Manager Mathes the City's budget starts October first runs through September 30. This is a workshop, They dor not have af full budget developed. They presented a draft budget. They have received most of their revenue estimates from the state. They expect the last to come this week or next. Next year they are going tot be shiffing the entire budget calendar by one month. It does notr make any sense for them to be trying top put ab budget together if they do not have alli the revenue estimates in place. The Cityi ish happily in afwo-to-fhree-year cycle ofr reducing their ad valorem, whichh he woulde encourage them to continue to do, to share the benefits of growth throughout all the communify, including their existing residents, business owners. They receive about 15to $20,000 pere every point one mill. Going from 5.15to 5.00, they are only losing about 25 to $30,000in ad valorem money. Iti isr not abigh hit, but again, it The state of Florida defines the rollback rate as that rate that they would charge to bring in the same amount ofr revenue they didi the year before. Andi ther reason iti is always loweri ist because their valuations go up. If their valuations go up, their tax ratel has to go downi tol bring the same amount of money. And from ai taxi increase, it looks like a decrease from 5.151 to 5.00, but the state is going to make us calli it a taxi increase, because they are raising more revenue thant they didi they year before. This was the second year of Council priorities and individual one on one meetings, andi thisi is where they have found some shared and some other priorities. And their goal was to try to work on these priorities  City Manager Mathes andi Mayor Tyson  3. PRESENTATION: (a) Fiscal Year 2024-2025 Budget  isr moving ini the right direction.  at staff. Shared-  Enhance Street Lights along CR512- They were not able to get to it last year but this year they will either we will get to it or legacy landings, we will take care of it as they move Pave Roads - The City did not get al FEMA fermination in their favor. The Irma hopei is. gone and over. Staff will bel bringing an agenda item back to talk about how they might  forward with their project if they are approved.  want to proceed. Ready for Growth  Others were not shared between all Council members but were still discussed. Seweri fiowsi to west VS., City treating sewer- - study underway, Business Start-up & Retention- - What more can they do?  Septic to Sewer-s study underway Senior League Renovation- underway Sidewalks - next segment?  Building Permit relief - what can they stop doing that other places are not? The new building official will help them identify some things they might be able to do. He thinks al lot of thei improvements: they can make in building isj just doing a better) job ofv what they are supposed to do quicker, more efficiently and being consistent in their determinations, which is why they brought ab building official inh house.  1    Council Raises - They will be addressed this year, but it will be postponed until the next  electioncycle.  The City did not get as many Citizen survey results as they gotl last year. The City did allow an electronic submittali thisy year, but they actually only got eightr responses electronically. Most of them still cam in by  hard copy.  Citizen Survey results were discussed and are asf follows: to pave dirt roads, add: streetlights, improve water quality.  What are the most important things the City can do to improve life in Fellsmere? The top answers were What do you like best about living in Fellsmere? The top answer was small town field. It has been the City'sgoal fromi thev very beginning of Fellsmere's desire for growthi to maintain the: small-town character. The annexations that were done over the last 20 years have been far removed, mostly from the city center, and their development should have very little impact on the city center. Those annexations and developments that are near the city center, and with the proper road improvements and park improvements and other improvements' that they willl have to pay for as part of their development, and that they dot through grants, that they can continue to hopefully keep thats small family again. That has When do yout think about the way things are going in Fellsmere, what concerns you?1 Thet top answer was new developments. The City will be putting something in the water bill or maybe on Facebook soon to just start highlighting certain developments, give people an idea of what they are about. One of the other concerns was flooding. Anytime yous get 141 inches ofr raini int that timet frame, you are goingt tol have standing water. But again, it is the City's goal to continually improve the stormwater system, and over time, continually make it better. But he will never, ever say that they are going to find a rain event like  always been Council ands staff'sgoal.  that that is not going tol have standing water. Thatj just would not be accurate. -Fix North Broadway, the City hasi itf funded and is about ready to be fixed.  Some other comments shared.  -Bypasses to Willow on 512, thei is already ini the City's plan. Itisj just a matter of finding money to make it -The City is not providing enough avenues to keep residents informed- the City has acknowledged that, andi they understand that they need to do better. The City had technical issues with Facebook due to the death of the prior City Clerk thath had the account under herr name, ther new City Clerk wasr now able to resolve that issue andi the Cityi is back on Facebook, buti it didi take about a year. -Park Facilities went down - The City is trying to get grants to further overhaul them.  happen.  Some of the items that received al lows score.  -Water Service - It hasi improved from last year. Stormwater and Road Maintenance  Howi important is thei issue toi improving your quality ofl life?  -Enforcing speedI limits is a big issue. The City has started some efforts, they have purchased permanent speed signs, andi they alsol have ar new: speed trailer. Chief and his department wills supplement that with  proper citations as needed. -Paving dirt roads -Build more sidewalks -Obtain more affordable housing -Retain existing businesses -Seek new businesses low crime rate.  -Increase police presence. From a data perspective and the statistics, the City of Fellsmere has a very Improved water quality went down, which means it becomes less important to the community, which means it must be doing better. Changing to the peroxide was a great idea, it removed the chemical reason there: should be: smell in the water, although they are still getting smell complaints. -A good surprise was connecting residential to sewer. Itj jumped almost ap point, it went from: somewhat  -Address legal drug use/sales. This is a constant issue that Chief addresses.  lllegal dumping- That is mostly in the City ditches.  2    important to important, andr maybe thati is a reflection of people realizing that this 2030 law isi in place. Orr maybe iti is just reflection of people whose sewers are getting old, and they prefer connecting to a  sewer.  -Residents would liket the City to do better with outreach. Citizen versus Council priorities were discussed as follows: Add Street Lights - Will be part oft the CR512 widening. Pave Dirt Roads- FEMA appeal denied/workshop TBD. Enforce SpeedI limits -I News speed signs/ trailer. Improve Water Quality Shorti term complete/long term underway. Improve Building permitting- New Building Official and pending workshop. Improve Maintenance and Dirt Roads FEMA appeal denied/ workshop TBD. Reduce property crimes- Data does not support claim. Address illegal dumping - Initiatives under development. Reduce traffic congestion- - CR512 widening plani in place. Address illegal drug sales- - Join task forces/ SWAT membership. Increase Outreach to residents - Social Media and website upgrades. Increase Social Services- - Community Resource Center.  Manager Mathes continued to discuss the proposed Fiscal Year 24/25 highlights. He added that thisi is all draft at thist time, they are still looking to finalize things. There were al lot of staffing adjustments this year, they add upi to almost $300,000 in cost. Some of these they may not do because of budget constraints.  1. Final Valuation $165,769,002 (up 9.71%) Reduce Millage from 5.15t to 5.00 2. Proposed: 2024/25 staffing adjustments Grader Operator toi fulltime Code Enforcement to fulltime.  Pay Scale Adjustment (includes grant administrator) that alone is about $100,000. What that means is we do a salary survey of the area, Ttreasure Coast region, they average up those positions, and they try to get within 10% of those positions, primarily focused on the line workers. Permit Clerk & Utility Operator (when growth demands)-lhey willr not fill unless growth does come to Part-time staff for FIT Challenge Course- This would be $30,0001 to cover a part time staff. 3. Insurance (50% / $150K) expected increase. Renewal declined and requested proposals for  fruition.  alternatives. Finali numbers not available until mid-August. 4. Water & Sewer & Stormwater- - CPI5% increase 5. Maintain Expanded Capital Improvement Plan 7. Council Raises- - cannot be effective until Nov. 2025.  6. Vehicle Fleet General Fund Proposed Millage 5.00  5.95% increase over 4.7191 Rolled Back Rate 3.18% decrease over 5.15/ Prior Year Levy NOTE: Each0.1i increase in Millage equates to -$16,577i in revenue Total $4,008,891 (does not include. ARPAI Revenue) ARPA Interest Estimate for FY24/25= $142,000 Prior) year $3,212,471 (FY2023/2024)  Currently $300,000 over revenue estimates (Due to large insurance. increases)  Currently, the City'sb budget on the expense side is at 4 million, he does not knowifthey are going to be able to keep it at that level. It currently is $300,000 over. revenue estimates for couple reasons, primarily insurance. Insurance is over $150,000 of that. It is not just health insurance; itis is also about 25 to $30,000 on liability insurance. They are over almost $200,000hit ini insurance increase. They are: shopping for both of those programs and are hoping they can reduce that $200,000 increase to $100,000 increase and therefore save $100,000 on that but there will be a large increase ini insurance this year. Thankfully, they are getting about $140,000 a) yeari ini interest on the ARPA money that has been: sitting in a bank. Manager Mathes asked Council what their comfort leveli in using reserves to cover a slightly higher budget this year. If  3    growth does not happen, they will be in ai tight year next year, because they did not get the revenue, growth. Ift they get the revenue growth, then spending the $200,000 just making up a number reserves this year would not be a problem next year, because that revenue growth would be there, and they would not have to depend on reserves. When they do not again, next year is not a pay scale year and hopefully it would. not be hard to balance the budget, but last year, they had the same concern, and Council's direction was to try their best to minimize the use ofreserves for the operating budget. Thati is stilll his direction and goal, andh he is going to try to accomplish that this year. But being a pay scale year and having the heavy insurance hit, itis al little harder this) year. Lasty year was notap pay: scale year, soitisal little easier  to dol last) year. Revenue Sharing Public Works Police  State isl latel in providing (not available for this Workshop)  Pay Scale adjustments. Grader Operatori to Fulli time Pay Scale. Adjustments Plan forr newl hire ini following fiscal year. Health Insurance (budget for 50% or $150k) Workers Comp/Liability (9.4% overall or $27,785) Proposals being sought.  He addedi that the next new hire should probably be ap police officer versus aA public works crew.  Cost Increases  Budget for 18% or $54k max. - Proposals being sought.  Fleet Purchases PWVendors Merit & Special Raises ($240k) Merit $53k. October 1st, FTCode- $73k- use spare vehicle. Grant Admin- - $13k Challenge Course P/T-$30k. Clerk-$ $7k.  Police/PW Vehicles ($300k- - Marine Bank Loan- $5,232/month) PWE Equipment ($180k- - USDA! 50% grant/loan) - OR-  PWE Equipment ($58k/yr.- - 4-year lease)- al lower timeframe will be a higher price. Mowing-s85k & Lake Maintenance. $13.5k & Tree Maintenance. $90k Future -Irrigation, Playground, and Asphalt Maintenance Contracts  New Permit Clerk* $72k This only happens if growth would pay for it, so it will not start  Pay scale adjustment amount wasr not added. $300,000 Contingency funded by Reserves. Up to $300,000, Budget funded by Reserves. Current unrestricted reserves approx. $1,326,744 Additional, Reserve $325,546 from water tower revenue. sale  Non-Departmental  He added that they certainly have their reserves where they want them, and even slightly higher, he wanted to get about 1.5 and they are about 1.6 and a half right now. They do have a little bit off fat in there to pull down al litfle bit ift they needed to. He is trying to get about six months' worth He sharedac contingency history table. (PowerPoint. slide added toi these minutes.)  of expenses out of there. Arpal Funding List  Manager Mathes shared the ARPA Funding list showing the amount of obligated and spent money 2.8 million, and their allocation of 2.8 million. They have 90% allocated and there is veryl litfle money left for them to decide where it goes. Council will be getting an agenda item on the 15th, which will be the second to the last allocation adjustment before the end of the year, December is the last month they  4    can allocate projects. What will happen is they dor not have this money allocated by December. They are going to use Claudia's andi their auditor'si trick of just using that money to pays staff expenses, just sO they dor noti losei it. Andi they willt taket ther money thati they were goingt to spendt throughi the general fund andj just put that away asi ifit were ARPA money andi they will continue to follow the ARPAI list untilit itisall  gone. Special Revenues- -  Infrastructure Sales Tax (Increase to $923,768 estimate) 1.22% increase from prior year (FY23/24 $912,632) Fleet Replacement at $185k annually. Five vehicles per year Local Option Gas Tax (Increase to $169,760)- Thisi is an internal estimate. 5%1 Increase from prior year (FY23/24: $ 161,736) Operating Transfers $165,000 iss same as the prior year budget.  The operating transfers went up considerably from last year because they used FEMA's formulai for transfers fort their equipment.. And Public Works has al lot of equipment, soalot of their transfers are based on this formula, andi this formula went up. Usually the transfers are lesst than 100,000ayear, so prettymuchi the entire local option gast taxi is usedtos support operating expenses of the employees who maintain our roads, which is what the gas taxi is CRA $153,044 (includes 2009 Expansion Area) Thisi ist the first yeary we are getting revenue from the > Three Special CRA projects- Some ofi these projects are funded by othert things, notj just CRA  for. county on the 2009 expansion. money.  Left turn lanes on CR512 at O'Reilly Alley Access at N Broadway S.H Hickory Property purchase Challenge Course Operator  Manager Mathe shared a graphic and discussed the special revenues over time. CRA increased by The City currently has a $40 million capital program. Ten years ago, it was 5 million, sO they have really bumped up their efforts and brought in other people's money to do the capital projects that they  $100,000 PowerPoint. slide addedi to these minutes.) Special Revenue - ongoing projects are listed below.  needed to do in this town. Kentucky Ave. Greenway Rail-Trail: Broadway to State Park CDBG-DR- NY Ditch Pipes Cultural Facilities Train' Village CDBG-MIT 97th Street CDBG-CV Broadband State Street Reservoir Old School' Windows Aleyway/Roodwoy Swales RTPI Preserve Final Phase Stormwater Master Plan USDA' Water Yard/Barn FEMAI Road Base FACTI Resource Center N. Broadway Old School Generator National District Walking Tour Community Center Reno Seweri to Farm Well#7 Recreated Train' Village Lift Station #3F Replacement CR512Left Turn Lane  5    Fire Tower Reconstruction Pave the Grade Senior League Concession  Enterprise Funds- These are those departments or funds that are supposed to pay for themselves. Community Development Department- it is currently inc debt over $400,000 buti it will grow itself out of debt as some of these projects come on board.. And that is what Council's direction has been. They have asked each year whether they want to try to begin to move this out of the enterprise and make itj just part of the general fund. And each time the answer has been nol It will grow itself  out. Staffi isr not asking to make any changes. Maintain $40k current General Fund subsidy. Building Official & Permit Clerk InHouse Maintain as Enterprise Fund  Begin process of Basement Utilization- They did begin the process of talking with their tenant's downstairs and internally with staff about utilizing the basement for city services. Theyt talked abouti thet tax collector coming out. Hei iss setting up ameeting witht the Property Appraiser soon. The Clerk oft the Court has answered, andi they are not interestedi inc coming out right now, they do not feel they have a needi tol be out here. Right now, iti is) just the tax collector and potentially the Property Appraiser. He will give Council an update on that  once they meet. CPI ratesi increase of 5.00%.  Stormwater  Major Update to Master Plan-t to be completed prior to 10/1/24.  He added that there is Stormwater Workshop scheduled fort the August 22nd, When they get to Capital Improvement Program, there's no projects identified in the out years, because they don't have al list of projects to choose from. They have done every project pretty muchi ini their current master plan. They are really looking forwardi to this new master plani to identify projects  they can go out andi fund and make happen. CPI rates increase of 5.00%. Sewer Studies underway CPI rates increase of 5.00%.  Sewer Water  Additional Water Plant Operator when growth demands do, ands stillr make them safe behind as secure window.  Payment Window Renovations- They are trying to make some renovations toi the customer service windows, and that is partly why they are talking about using the basement, just because there is just no room upstairs to make those spaces really suitable for what they Investigate/Update Network Data- To make sure we have not missed anything in terms of paved over valves. They want to make sure they have all their valves identified. Long Term Treatment change under design- The Cityi is working feverishly oni the long-term changesi ini terms of a design and costing for converting ac charcoal filtert to reverse osmosis,  Water Quality Issues  Additional" Testing and Auto-flushers Short term treatment change implemented. which is one of thet best treatment methods outi there.  Manager Mathes discussed the Water, Wastewater, Stormwater, Gas Tax expenses, CRA expenses and Infrastructure expenses Capital Improvement Program. (PowerPoint: slide added to these minutes.) Water and Wastewater items can be grant funded or might end up being funded by developers, because the City may truly end up with well capacities at some point. But they are trying to get ahead oft the curve, as they should, and not using City money or ratepayers' money, but using grant money to Stormwater - The City does not have any projects until they get the master plan report that may be -Gas Tax Expenses- The transfer numberi is goingt to go up because oft thei formula change and there will The USDAI road paving is all grant money and the USDAI road paving drainage loan, fit they end ups going USDA to pave the roads it would not be a grant, it would be a grant/loan. It would be a very favorable  accomplish these things. donel before the final budget. be nol leftover money.  6    loan and it could probably be pad for out of local expenses, without having to assess the property owners. Hel hopesi they canendi up withag grantloan combination, wheret they couldu use existing revenue sources to pay the loan amount, sO there is no cost. He would need to do an agenda item and have -CRA- all projects are not all CRA money. For example, the lefti turn lane may not end up doing and let Alley way demo, they have some ARPA money or ar revenue transfer from infrastructure intot the CRA. -Donated Historic building- they will need money for as set of plans that they would need to relocate it, refurbish it. The City usually pays for design locally and thent they get a grant to dot the actual work. -Main Street vitalization - It kind of helpsj just bring people into downtown, whether it'sr new businesses, if there's vacancies, or whether it's! helping the Citys support programs and events andf funt things to do that might bring people downtown, just a lot of different things that a main street program to do to help  that conversation. Legacy Landing doit it.  -Grant Park Parking- they puts some budget moneyi ini there fort that project.  businesses thrive on your main street.  Mayor Tyson stated that Vero Beach does that Friday night downtown. Infrastructure Expenses- (PowerPoint slide added to these minutes.)  The following are developer: funded: Badcock/N. Myrtle. St. CR512 Willow to Myrtle CR512 Willow to 120th CR512 120th to195  -Train Village and Community Centerlf he can find a different funding source fort the communify center, he will use that, and that will open up that funding source, thent for relocating the historic building. -Johnny Perez building, he is going to be bringing an item back early this coming fiscal year, either the next couple of months, to talk about which of the buildings at the Recreated" Train' Village they want to build withi the local money, ori ift they wantt tot try for at thirdi timet to get ag grant. They have tried twice and  have been denied.  Thet following are: some initiatives that might by locally funded.  -PD Renovation- They city would pay for the design of the police building renovation after Public -Fire Tower- the city would pay for the design of the fire tower erection with local money, which would be an engineer getting a set of plans together to design the foundation and doing the -Old School Space Renovations- localr moneyt to cover up the design that would be needed fort the -Bank Fleet Servicesl Loan Payments- - he willl be updating thisf for at final adoption to $60,000 ay year. -USDAI Fleet Services Loan Payments- he puti the wrong numbers andy willl be lowering those amount 1. Septic contributions to Stormwater (BMAP)- the City has to treat septic contributions to storm water asifit were any other pollutant toi the lagoon. The City is supposed to have projects and programs in place in the BMATreport: thats says what we are going to doi to minimize those pollutions coming froms septic. The only thing they can dot to minimize pollution from septic either put them on central sewer or change them to advanced: septic. Thati is kind of what they are doing this study toi figure out whati is the best choice fort the City, doing. septic sewer orj just letting the residents on their own  Works moves out with local money.  calculations wo they know! how many people could be up there at one time.  renovations for the customer services windows.  to $60,000. State Mandates  converti to advanced. septic systems. 2. Septic Conversion by: 2030 3. C Co-opLocal! Regulations  Requires reduction of nutrients due to septic systems Septic to: Sewer Study is underway. Connect tos sewer or replace septic w/ advanced: system. Sewer Feasibility study underway. Mobile Food Trucks Affordable Housing  Grants may become available for homeowner advanced. septic conversion.  Chain Businesses the list goes on... 7    Potential Developments- (PowerPoint. slide addedi to these minutes.)  Residential that have submitted applications:  -Marian Estates -LegacyLanding -Banack -ALF -H4H/FJV -FJV -Corrigan -Marian Estates -FJV -F392 Outparcel -Aldea -N. Pine. -Ortiz  -F392-1 They will probably not be doing residential because theys simply cannot affordi the wetlandr mitigation.  Pending Residential Applications:  Commercial that has submitted applications: -CR512 (O'Reilly, Trade Storage)  Pending Commercial Applications:  The following Mom & Pops need to go through site plan approvals andi the City hast taken a very soft glove approach to them, trying tol bel business friendly buti thatr may have to change. Itisao constant struggle and  staff will continue to work with them.  EIl Ranchito Operation Hope Rev. Truth Church Int. 6N. Pine Church 361 N. Myrtle Bait Shop 81 N. Broadway! Food Truck Marsh! Landing Five-year look ahead:  12645 CR5121 Fruit Stand Taco Truck Mesa Motocross Fellsmere Feed 12N. Elm Retail Conversion- approved Nailed-It Roofing Stick Marsh Bait & Tackle  NE Broadway Fishing Cottages 6S. Mulberry Food" Truck- approved 32 N. Broadway Food Service N. Willow Brown Food Truck  Water Plant Treatment Modifications Timing of Development: 1-3y years Police Staffing $80k per Officer + Vehicle* Public Works Staffing $65k per Laborer Grant Prospects- - increased neari term. Stormwater Enhancements- high priority New Public Works Yard Renovate Police: Station North Broadway Revitalization Sewer Expansion/Septic to Sewer Investigation  Manager Mathes asked Council what there position is about using reserves for operating support. Manager Mathes responded that he: sent him an email about three weeks ago and! hel has not heard back from him. This is his last chance to review these documents before they goi to Public Hearing. He will reach Manager Mathes explained that it means if they cannot have some operating out of reserves. They have  Mayor Tyson asked the status on Marian Estates?  outt tol him a secondi time.  8    to dol health insurance and liability insurance. What it means ist that they willr notl likely give at full 3% raise it may goi to 2% or goi to 1%.1 Ther may have tol lower 401 confribution from 13t to 12 orl 11, until they can afford it andi they may not be able to give the full pay scale adjustment. Ift there isr noi interest in, doing a$100, 000, $200, 0001 fund reserve use then it becomes what isi the priorities because they are not going to be able to He recommended a pay scale adjustment over the 3% raise. He feels code enforcement position is more important than a 3% raise. Then ity would be ther raise, and itr may have tol be adjusted down or up, and the  dot them all. 401 contribution.  Mayor Tyson stated thati iti tough out there for anybody to make al living.  Manager Mathes stated that that's why pay scale, he thinks, is most important, because pay scale adjustments are reflection that they are underpaying employees compared to their peers ini ther region. He added that the next time Council sees this will be a public hearing to approve it and at that point iti is kind of late to make changes. He asked if they prefer to have an interim update maybe the first week in Mayor Tyson stated that what they needi is something they can respond to when they are crowding thisi in andr not enough time for Councili to respond. He added that they need a session for questions. Manager Mathes recommended that they could do this as an agenda item but if they feel they need a  September.  second' workshop they can do that too.  Mayor Tyson stated that he would prefer as second workshop. Manager Mathes asked if they have thet first public hearing set.  Manager Mathes asked Finance Director Claudia Alvarado to come to the podium to be part of the Finance Director Alvarado respondedi that ith has been seti for September 5th and willl be held the same day Manager Mathes stated that they could uses the first public hearing since they have a couple of weeks to Manager Mathes asked Council ifi they were comfortable with five on the ad valorem. They have to put a preliminary assessment roll, they always put a very high number. They did 5.5 as the maximum that we may do. Council has anywhere between where they are now, upi to 5.5i ify you wanted to. They will go ahead and just use the public hearing as that opportunity to give Council the details. They will have af fullb budget byt then. They are moving the entire budget process oner monthr next year, iti isj just a waste of all of their time to: sit here andi talk about thingst they do not know because they do not havet the numbers. Next year, they Manager Mathes stated that they will not do a separate meeting and will split that into the calendar for September 5 as a public hearing ats six o'clock. Ati that time, they willi talk about the details and they all can make adjustments. They are going to propose a budget utilizing some of the reserves. They are going to scale back as much as they can, buti they are going to use al little reservej just tol keep all the options ont the  conversation.  as the regular Council meeting. make any changes fort thet final hearing. Finance director Alvarado agreed.  wille expect this workshop tol be in late. August.  table. Thent they all can decide. Council agreed.  4. ADJOURNMENT:  There being no further business Mayor Tyson adjourned the meeting at 6:58p.m. *The Power Point presentationi is attached hereto and made part of the official meeting minutes.  These minutes were approved byi the City Council of1 the City of Fellsmere this 5 day August2 2024  eilaut MaraF-Suore.Sonchez CMC,   COA2APAOIGMNUTESDOC  GlyClerk  9    8/2/2024  SMER  FY23/24 Budget Workshop Mark D. Mathes, City Manager  8/1/24 6:00 PM  1  Final Property %Changef from Prior Valuations 67,852,293 99,022,967 120,960,239 145,734,504 136,555,050 115,712,211 96,800,611 91,338,081 88,367,863 90,035,794 95,357,737 102,614,697 98,040,392 105,732,298 107,403,714 112,007,704 116,918,489 122,238,033 132,855,000 147,500,000 165,769,002  Valuation  Fiscal Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Final Property Valuations  Year 32.05% 45.94% 22.15% 20.48% -6.30% -15.26% -16.34% -5.64% -3.25% 1.89% 5.91% 7.61% -4.46% 7.85% 1.58% 4.29% 4.38% 4.55% 8.69% 6.50% 9.71%  Numbers represent thet total value of all real property and their improvements within the cityl limits. Property Valuation FY24/25 165769,020009.715)  $150,000.,000 $100,000,000  2015  2019 2020 2021 2022.  2  1    8/2/2024  Ad Valorem Tax Rates Estimated Levy to 2024 $911,730 (5.500 mil- -TRIM Notice) $853,710 (5.15-priory year Levy) $828,845 500-recommended) $794,200 (4.791 rolled back)  Propertyl Taxes Property Tax Rate Collected 390,151 269,382 535,866 721,408 631,296 518,675 505,901 493,882 502,348 507,820 507,820 502,174 508,959 518,956 576,350 594,295 621,528 650,624 693,636 742,000 828,845  Fiscaly Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25  (milage) 5.75 5.75 4.56 4.43 4.43 4.43 5.2455 5.4999 5.619 5.5309 5.2756 5.2756 4.9599 4.9599 5.3662 5.221 5.3326 5.3226 5.221 5.15 5.00  Property Tax Rate( (milage)  2016 2017 2018 2019 2020 2021. 2022 2023  3  Council Priorities  SHARED  Enhance Street Lights along CR512 Pave Roads (method pending FEMA determination) Ready for Growth (infrastructure)  OTHER  Septic to! Sewer- - study underway SR. League Renovation- underway Sidewalks -I next segment? Council Raises  Sewer flows to West VS. City Treating Sewer - study underway Business Start-up & Retention what more can we do? Building Permit Relief what can we stop doing that other places are not?  4  2    8/2/2024  Citizen Survev Results  Most important thing City can do toi improve lifei in Fellsmere?  Pave dirt roads (5) Add streeti lights (4) Moret turn lanes on CR512 Water Quality (4) Widen CR512 Police Patrols Stormwater Tellt truth Keep smallt townt feel (2) Another way out oft town Litter removal Too mucht traffic Interchange development is needed Putr minutes in Utility Bills CMp paid too much Staff doesn't dot their) jobs Address development needs  5  Citizen Survey Results  What do you like best about living in Fellsmere?  Mexican stores Country (2) trees Small Town Feel (9) Family Life Style Safe (2) Not overwhelmed (yet) (2) Peaceful (4) Easy Going Growth Opportunities Food trucks  6  3    8/2/2024  Citizen Survey Results  Wheny you think about the way things are goingi in Fellsmere, what concerns you?  Traffic (2) New development (7) Need more businesses Nor respect for speed limits or stop signs (2) Things to do (movies, parks,etc.) Lack of Volunteers Bad water (2) Lack of Planning/Folow-thru Population Speeding Fire CM Constant flooding Street drugs 7  People wanting things that cost tax $ (pave dirt roads, community pool, etc) (2)  Citizen Survey Results  Other Comments Better Water Qaulity Keep Fellsmere Small Don'tr need more people moving to Fellsmere don'tallow growth tor ruin our small town liter road maintenance new members in government too much noise and crime bypasses to Willow/CR512 widen CR512 fix N Broadway encorage. growth overall good placet to live ditches are gross w/ no maintenance enforce speed limits making exceptions is not business friendly more turn lanes on CR512 more fun stuff to do on Fellsmere Day  8  4    8/2/2024  Citizen Survey Results  4= Excellent  3=Good 2=Fair 1=Poor  2023 2024 Weighted Weighted Score Score 2.55 2.19 2.28 2.18 1.89 1.57 1.64 1.77 2.38 1.50 1.69 1.65 2.78 2.07 2.42 2.32 2.79 2.58 2.48 2.43 2.15 2.11  Overall Performance of City City's efforts to keep taxes and fees low City efforts in keeping residentsinformed Water Service tormwater/Plooding Initiatives Road Maintenance Parks Facilities Recreation Programs Police Services Business Friendly Policies Services for those in Need  9  Citizen Survey Results  Howi important is thei issue to improving your quality of life? 5=Extremely Important 4=Very Important3 3=Important: 2-Somewhat Important 1=Notl Important  Issue  2023 Weighted 2024) Weighted Score Score 3.55 3.58 3.21 3.82 3.67 3.74 2.63 2.71 2.36 2.61 2.24 2.10 3.43 3.23 2.60 2.57 3.08 3.30 3.88 3.53 3.78 2.97 2.98 2.84 3.59 3.38 3.31 3.30 3.54 3.59 4.00 3.84  Enforce Speed Limits Reduce Traffic Congestion Pave Dirt Roads Build more Playground Buildr more! Soccer Fields Builda a Community Pool Buildr more Sidewalks Buildr more Recreational Trails Obtain more Affordable Housing Improve Building Permitting Beautify Fellsmere Require Mandatory Trash Pickup Retain Existing Businesses Seek New Businesses Increase Police Presence Address Illegal Drug Use/Sales  10  5    8/2/2024  Citizen Survey Results  Howi important is this issue to improving your quality of life?  Address Illegal Dumping Increase Code Enforcement Support the Arts inF Fellsmere Improve Water Quality Increase Animal Control Add: Street Lights Increase Public Transit Connect Residential Properties to Sewer Increase Maintenance of Dirt Roads Reduce Property Crimes (homes, cars) Increase Social Services tot those in Need Preserving open spaces and naturala areas Sponsor Community! Events (likef farmers markets, etc.) Provide Recreation Programs (likel league play) Increase Outreach to Residents to keepi informed  4.16 3.41 2.74 4.71 3.81 3.52 2.95 2.53 4.29 4.23 3.69 4.26 3.40 3.03 3.60  3.57 2.83 2.16 4.25 3.17 3.84 3.07 3.23 3.74 3.71 3.52 3.50 3.25 3.29 4.03  5-Extremely Important 4=Very Important 3-Important: 2-Somewhat Important 1=Not Important  11  Council VS. Citizen Priorities  Issues underway by Council and shared by Citizen Survey Scale of 1-5v with! 5-1 Very! Important and 3- - Important and: 1- Not Important  Add Street Lights Pave Dirt Roads Enforce Speed Limits Improve Water Quality Improve Building Permitting Reduce Property Crimes Address Illegal Dumping Reduce Traffic Congestion Address Illegal Drug Sales Increase Outreach to Residents Increase Social Services  Willl be part of CR512 widening (3.84) FEMA Appeal denied/Workshop' TBD (3.74) News speed signs/trailer (3.54) Short term complete/long term underway (4.25) New BO/Pending Workshop!3.53) Data does not support claim (3.71) initiatives under development (3.57) CR512 widening plan in place (3.82) Joint task forces/SWAT membership (3.84) Social Media and Website upgrades (4.03) Community Resource Center (3.52)  Increase Maintenance of Dirt Rds FEMA Appeal denied/Workshop' TBD (3.74)  12  6    8/2/2024  Proposed FY24/25 Highlights  1. Final Valuation $165,769,002 (up 9.7196) Reduce Millage from 5.15 to 5.00 2. Proposed. 2024/25staffing adjustments  Grader Operator toj fulltime Code Enforcement toj fulltime Pay Scale Adjustment (includes grant administrator) Permit Clerk & Utility Operator (when growth demands) Part-time staff for FIT Challenge Course 3. Insurance (50%/$150k) expected increase Renewal declined and requested proposals for alternatives Final numbers not available until mid-August 4. Water & Sewer & Stormwater - CPI5% increase 5. Maintain Expanded Capital Improvement Plan 7. Council Raises = cannot be effective until Nov. 2025.  6. Vehicle Fleet  13  General Fund  Proposed Millage 5.00  5.95%i increase over 4.7191 Rolled Back Rate 3.18% decrease over 5.15 Prior) Vear Levy  NOTE: Each 0.1i increasei in Millage equates to "$16,577 in revenue Total $ 4,008,891 (does not include ARPA Revenue) Currently; $300,000 over revenue estimates (Due to large insurance increases) ARPA Interest Estimate for FY24/25-5142,000 Prior) year; $3,212,471 (FY2023/2024) Revenue Sharing Public Works Pay Scale adjustments Grader Operator to Full time Police Pay Scale Adjustments  Statei is late inj providing (not available fort this Workshop)  Planj for new hire inj following. fiscal year  14  7    8/2/2024  General Fund - continued H Health Insurance (budget for 50% or $150k) >E Budget for 18% or $54k max. - Proposals being sought > Workers Comp/Liability (9.4% overall or $27,785)  Cost Increases  >F Proposals being sought >F Fleet Purchases F PW Vendors  >F Police/PW Vehicles ($300k - Marine Bank Loan- $5,232/month) >PW Equipment ($180k - USDA! 50% grant/loan)- - OR- > Mowing- $85k & Lake Maint. $13.5k & Tree Maint. $90k > Future -Irrigation, Playground, and Asphalt Maintenance Contracts FT Code $73k- - use: spare vehicle Grant Admin - $13k  PW Equipment ($58k/yr.- -4 4 year lease)  > Merit & Special Raises ($240k) Merit - $53k Gander-S36k-Rovehde Clerk-$7k  New Permit Clerk* $72k Challenge Course P/T- -$30k  15  General Fund - continued  Non-Departmental  0Q0Comungeynaed by Reserves Upt to; $300,000Budget) funded by Reserves Current unrestricted reserves approx. $1,326,744 Additional Reserve $325,546from water tower revenue sale  16  8    8/2/2024  Contingency History  Trff from GF Budgeted GFB Budget Unspent ate end GF Fund GFF Fund Fiscal Year Balance Contingency Balanced ofyear Balance Start Balance End  2010 350,000 350,000 2011 375,000 375,000 2012 400,000 400,000 2013 420,930 425,000 2014 427,260 450,000 2015 452,440 475,000 2016 499,970 500,000 2017 630,440 550,000 (80,440) 2018 639,434 547,000 (92,434) 2019 300,185 300,000 2020 359,650 300,000 (59,650) 2021 388,055 300,000 (88,055) 2022 207,077 300,000 2023 300,000 300,000 2024 TBD 300,000 17  21,316 656,571 677,887 (176,851) 677,887 501,036 (3,217) 501,036 497,819 (15,143) 497,819 482,676 57,777 481,821 539,598 adjusted 211,798 539,598 751,396 (52,482) 751,396 698,914 (212,816) 698,914 486,098 620,928 486,098 1,107,026 (2,131) 1,107,026 1,104,895 44,978 1,104,895 1,149,873 188,778 1,149,873 1,338,651 71,163 1,338,651 1,409,814 330,974 1,409,814 1,740,788 NA  4,070 22,740 22,560 30 (185) 92,923 113,836  NA  NA  ARPA Funding List ARP Total Spent To Cost Date  Funding Priorities Funds Project ARP Grant! Police &F Public Works Hazard $33,582 $33,582 $33,582 $ DONE S.H Hickory Land Purchase $151,858 $151,858 $151,858 $ In-card camera Storage/Server $15,105 $15,105 $ 15,105 $  Notes  Local  Miscellaneous Pay Economic Development FACTF Resource Center Web Site Update Police Field Laptops Body Cameras Rapid IDS System Balistic Shields SWAT Gear 18  DONE- reimbursed upon sale DONE- FACTI Initiative seedr money INPROGRESS DONE DONE DONE DONE DONE DONE DONE  $126,481 $250,000 $250,000 $ $16,250 $20,000 $20,000 $ $16,944 $16,944 $ 16,944 $ $59,419 $59,419 $5 59,419 $ $ 2,149 $ 2,149 $ 2,149 $ $ 123 $ 123 123 $ $ 3,481 $ 3,481 $ 3,481 $  New Roof for PW/PDE Bldg. $19,800 $213,800 $ 19,800 $194,000 DONE Police Equipment/Supplies $ 27,742 $ 34,331 $ 34,331 $  9    8/2/2024  ARP Funds Total Spent To Project ARP Local Date Cost  Grantl  Funding Priorities Recreation Recreated Train Village Olds School Windows/ Doors Finance Project Manager Roadways CR512 Left Turn W.N NE Broadway Alley Stormwater League Purchases Public Works PW2v way radios City Halll Technology  Notes  $600, 000 $300,000 $300,000 Flexible not obligated to date $665,000 $165,000 $500,000 INP PROGRESS  SR. League Concession Stand $ 16,250 $160,000 $160,000 Office Equip. &E Enhancements $:20,293 $30,000 $30,000 $ Finance Database System $87,000 $87,000 $87,000 $  INP PROGRESS INF PROGRESS DONE INF PROGRESS Flexible noto obligated tod date Flexible not obligated tod date DONE DONE DONE DONE DONE INP PROGRESS  $11,313 $30,000 $30,000 $ $250,000 $250,000 $ $33,000 $200,000 $200,000 s  97th street Lot Purchases_ $810,810 $874,000 $874,000 $ Kentucky Greenway &s Sr. $ 6,000 $ 6,000 $ 6,000 $ Newl Toolbox and7 Toolsf fors shop_$ 8,949 $ 8,949 $ 8,949 $ PWE Equipment/Supplies $ 3,714 $30,000 $ 30,000 $  $ 15,000 $15,000 $ 15,000 $ $64,655 $ 65,000 65,000 $ TO14S134991955474968; $2,802,741 $2,444,000  19  Special Revenue  Infrastructure Sales Tax (Increase to $923,768 estimate) 1.22% increase from prior year (FY23/24 $912,632) Fleet Replacement at $185k annually. o Five vehicles per year  Local Option Gas Tax (Increase to: $169,760) 5 5%1 Increase from prior year (FY23/24$1 161,736) > Operating Transfers $165,000 is same from prior year budget CRA $153,044 (includes 2009 Expansion Area) Three Special CRA projects o Left turn lanes on CR512 at O'Reilly o Alley Access atl NI Broadway OS.H Hickory Property purchase 0 Challenge Course Operator  20  10    8/2/2024  Special Revenue  Discretionary Sales Tax Local Option Gas Tax  CRA $1,200,000.00  Special Revenue Funds  $1,016,534.00 $869,418.00 $708,983.00  $725,910.00 $757,680.00 $773,524.00 $794,508.00 $773,254.00  $586,330.00 $613,726.00 $643,742.00 $683,267.00  $600,000.00 $400,000.00  $200,000.00 $133,598.00 $134,555.00 $132,059.00 $151,493.00 $151,900.00  $157,424.00 $160,535.00 $153,584.00 VEAR  $187,397.00 $166,319.00  $28,344.00 $20,001.00 $3,896.00 $2,438.00 $44,710.00 $87,810.00 $19,916.00 $36,460.00 $45,350.00 $30,000.00 $48,000.00 $51,816.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023  21  Special Revenue - ongoing projects  Kentucky Ave. Greenway CDBG-DR- NY Ditch Pipes CDBG-MIT 97th Street State Street Reservoir Alleyway/Roadway Swales Stormwater Master Plan FEMAI Road Base N. Broadway Sewer to Farm Recreated Train Village CR512 Left Turn Lane Pave the Grade  Rail-Trail: Broadway to State Park Cultural Facilities Train Village CDBG-CV Broadband Old School Windows RTP Preserve Final Phase USDA Water Yard/Barn FACT Resource Center Old School Generator Well #7  National District Walking Tour Community Center Reno  Lift Station #3 Replacement Fire Tower Reconstruction Senior League Concession  22  11    8/2/2024  Enterprise Funds  Community Development Department Maintain $40k current General Fund subsidy Building Official & Permit Clerk Ini House Maintain as Enterprise Fund Begin process of Basement Utilization Stormwater CPIrate increase of 5.00% Sewer CPIrate increase of 5.00% Sewer Studies underway Water CPIrate increase of5 5.00% Payment Window Renovations  Major Update to Master Plan to! be completed prior to 10/1/24  Additional Water Plant Operator when growth demands  23  Enterprise Funds - continued  Water Quality Issues  nvestigate/Update Network Data Additional Testing and Auto-flushers Short term treatment change implemented Long Term Treatment change under design  24  12    8/2/2024  Capital Improvement Program  WATERE & WASTEWATER Water Debt Operating Transfer- Waslewaterto General Fund Resilient- -LS#3 SRFS Sewer8 &E Ext. toFarm USDA Sewer- Future HMGP WaterPlant! Hardening WelReubshmentl-s) Waste WaterN Misc. WaterPlants Security NewF350Senice) Truck Water SystemN Misc.  FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 150,000 150,000 150,000 150,000 150,000 90,000 90,000 90,000 90,000 90,000  Operating Transfers- Waterto GeneralFund 180,000 180,000 180,000 180,000 180,000  1,500.000 4,400.000 10,000 10,000 10,000 50,000 50,000 50,000 50.000 50,000 25,000 100,000 50,000 50,000 50,000 50,000 50,000 536,893 707,405 780,417 965.929 1,051,441  3,100,000  3,100,000  SRWF Nanofiltration/Well 7EquipmentYard 100,000 2,500,000  SubTotal 6,655,000 3,030,000 3,630,000 520,000 3,620,000  CarryOver  Water &V Wastewater Expense Total 7,191,893 3,737,405 4,410,417 1,485,929 4,671,441  25  Capital Improvement Program - continued  STORMWATER Transfer- Stormwatert to General Fund CDBG DRN NY Dilch Pipes FDEP-259S. Pine FDEP- Mcro BasinF Projects FDEP. Alleyway Grading FDEP. Greenway-- Kentucky FDEP-Resilient-, Alleyway SJRWMD- States Street Reservoir  FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 70,000 70,000 70,000 70,000 70,000  400,000 200,000 800,000 600,000 1,500,000 600,000 700,000  SubT Total 4,870,000 70,000 70,000 70,000 70.000 StormwaterE Expense Total 5,075,558 322,558 374,058 431,058 493,558  Carry Over  205,558 252,558 304,058 361,058 423,558  26  13    8/2/2024  Capital Improvement Program - continued  GAS TAX EXPENSES Transfer- Gas Taxt toG GeneralF Fund Fellsmere GradeF Paving Grader Tires USDARoad PavingDrainageLoan Payment USDAF RoadF Paving/Drainage  FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 70,000 72,500 75,000 77,500 80,000 100,000 100.000 100,000 100,000 100,000 3,060,000 3,000,000 3,000,000 3,000,000 SubTotal 6,890.000 3,172,500 3,175.000 3,182,500 180,000 264,000 264,000 264,000 254,000 259,000 Gas TaxE Expense Total 7,154,000 3,436,500 3,439,000 3,436,500 439,000  3.660,000  5,000  Carry Over  27  Capital improvement Program - continued  CRAE EXPENSES Transfer- CRAto GeneralF Fund Business Subsidy (Firei inspections) CRAGrants Alleyway Demo Leftt turnl Lane Artist Village GrantF ParkF Parking Main StreetF Revitalization  FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 20,000 22,500 25,000 27,500 30,000 5,000 5,250 5,500 5.750 6,000  300,000 250,000 75,000 200,000 100,000  75,000 75,000 75,000 75,000 750,000 302,750 105,50d 108.250 111,000 86,000 63,250 42,750 24,500 836,000 366,000 148,250 132,75d 119,500  Sub Total Carry Over CRAE Expense Total  8,500  28  14    8/2/2024  Capital improvement Program - continued  INFRASTRUCTURE! EXPENSES Transier Broadband 126-01-FDEPGSI NBroadway Wate/PantloCH512 Windows/Doors CommnityCenters &Fulure ParkaF Future AP-RITANV/IEFAUE idingRenovation SpaceF Renovations Fleets Servicest Loan Fleet IntrasructureEpense) Total  FY24/25 FY25/26 FY2527 FY2728 FY2829 190,000 190,000 190,000 190,000  3,000,000 1,000,000 200,000 300,000  770,000  200,000 200,000 200,000 50,000 50,000 50,000 50,000 575,000 60,000 470,000 470,000 10,000 10,000 ,000 500,000 575,000 50,000 1,400.0 779,  SubTotal 18,517,914 6,650,000 CarryOver 359.308 09,308  18,877,222 6,759,308 1,659,30E 3,509, 3,179,303  29  State Mandates  1. Septic contributions to. Stormwater (BMAP)  Requires reduction of nutrients due to: septicsystems  Septic to. Sewer. Study underway. 2. Septic Conversion by 2030  Connect to sewer or replace septic w/ advanced: system Grants may become available for homeowner advanced  Sewer Feasibility study underway. septic conversion 3. Co-op Local Regulations Mobile Food Trucks Affordable Housing  Chain Businesses the list goes on...  30  15    8/2/2024  Potential Development  PotentialR Residential Development Map Common Acres Multi- Single- Location Name family Family Marian Estates 70 150 182 Banack 90 0 315 C ALF 20 160 0 H4H/FIV 150 TBD TBD Legacylanding 35 150 100 FIV 4,000 TBD TBD 0 Corrigan 5,000 TBD TBD H F392 100 300 125 TOTAL 890 1,742 PotentialN Non-R Residential Development Map Common Acres Description Location Name Marian 8 CommercialPlat FIV 225 Commerce Park F392 100 Res./Comm. Plat Ortiz 7 MisedUse CR512 Varies O'Reilly, Trades Storage Outparcel 10 Storage/Hotel Aldes N.Pine BOLD- -inj progress ofa application review  RVPark OvernightStay  31  Pending Developments  O'Reilly's- under construction Aldea RV Park-under construction Benchmark Genetics applied SLP Tractor Services applied  Legacy Landing (225 units) F392 & Outparcels- applied Tiny House Dev. applied Headwaters Industrial Park Mom & Pops ElRanchito Operation Hope Rev. Truth Church Int. 6N. Pine Church 36 N. Myrtle Bait Shop 81 N. Broadway Food" Truck NE Broadway Fishing Cottages 32 N. Broadway Food Service Marsh Landing  Marian Estates Subdivision applied Trade Yard- applied Corrigan Ranch Mine  12645 CR512 Fruit Stand Taco Truck Mesa Motocross Fellsmere Feed 12N. Elm Retail Conversion -approved Nailed-It Roofing 6S. Mulberry Food Truck- approved N. Willow Brown Food" Truck Stick Marsh Bait & Tackle  32  16    8/2/2024  5-year Look Ahead  Water Plant Treatment Modifications Timing of Development: 1-3 years Police Staffing $80k per Officer + Vehicle* Public Works Staffing $65k per Laborer Grant Prospects = increased near term Stormwater Enhancements New Public Works Yard Renovate Police Station North Broadway Revitalization  Sewer Expansion/Septic to Sewer Investigation  33  17