you you you you you you you you you you you you you you you you you you you you you you Wait, where's the manager? We're going to have a meeting. We're going to have a meeting. We're going to have a meeting. We're going to have a meeting. We're going to have a meeting. We're going to have a meeting. We Clerk, please call the roll. Council Member Barton. Here. Council Member Christmas. Council Member Kramer. Here. Council Member Penhamon. Here. Council Member Petrano. Here. Vice Mayor Hutchison. Here. Mayor Hyden. Here. Mayor Hyde. Here and Council member Christman is here. Yes. So if you will all please stand and join me in the pledge. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God In the visible with liberty and justice for all Good afternoon setting the agenda mr. British one no changes mayor Okay, council. I have a motion. I have a motion moved for approval by vice mayor. Second by council member Petronoff. I'm favor sign by aye. Aye. Next item is announcements and we have no announcements and presentations. No announcements. Okay thank you. We'll go to public comment and if you'd like to make a statement about the budget you can fill out the registration forms in the back and give them to the clerk. Mr. Myers if you would like to fill that out afterwards, I'll go ahead and go into public comment and you can hand in your slip afterwards. We've gone into our budget hearing. We're going to go back to our regular session. We didn't complete the meeting today. Sure. Greg Myers 700 calls for a role. I would just like to know how you can raise the milled rate and you can take money from this account and that account when you haven't done the level of service since 2016. And I want to again, I mentioned this this morning. And this is from January 16, 2024. City Council discussion item 6B presentation from multi-base and storm order assessment report. blah blah blah blah. Says City Manager made the following comments respect item 6B. This is quote, Mr. Boutishore. At the end of the day, in the next 20 years, we're talking about a billion dollars worth of infrastructure. Billion with a B. Now that's staggering. and it should be staggering. And I speak in this tone not to create alarm but to really create awareness and emphasis on how important it is for us to do this work and to do this work quickly, both with the right scope and the right priorities that is data driven and not squeaky-wheel driven. The comments about the CIP process is spot on because the financing of everything that we've talked about, that we must do, is a very important part of this conversation because you're going to have to make fiscal policy decisions in the very near future because all of these plans, all of these designs, all of these permits that we're going to get you know we've got to have financing in place. So my question to City Council is how can you tax the residents when since 2015 you failed to do the level of service analysis which a stormwater project would be one part, 100 million of the one billion. And you wanna raise, you failed to do it, negligence, it's operational negligence. And now that you failed to do it, and it wasn't by accident, by the way, not maybe not you all, but that didn't just stop in 2015 by accident. That was intentional by the developers. They didn't want to pay it. Now they think, oh, once we get built, once our project's under construction, guess who gets stuck with the bill? The residents. So you all should be ashamed yourselves. The new people, the comments I hear, deplorable. It's not going to happen. I assure you it's not going to happen. And I heard this morning that then we should stop all projects. It's in your code if you don't do the level of service you're required to suspend those development permits. I don't know how in good conscious you can be here and ignore this. And the comments I heard from 1, two, three, four, will be addressed in court. And they can tell with judge. Thank you. I have no further public comment. And that takes us to six A. Thank you Mayor. Just a couple of opening comments. This is the second and final budget hearing, public budget hearing on the FY 2425 budget for the City of Naples. Turn over to the presentation to our deputies city manager and CFO Gary Young. Newtie Mayor and members of council Gary Young, deputy City Manager, CFO. As Mr. Bhutishwar said, this is the final budget and milled rate discussion, the second and final. I will remind you that this meeting was, first of all, the first meeting that we had was properly noticed and then the trim mailout. We notified that or noticed that we would be potential millage would go to 1.27 and this is evidence of that. The second and final budget hearing was properly noticed in the daily news as required by trim and that public notice was published on September 13th, I apologize for that but it was. David I'm sorry. When all the way to the we're starting really rough here today. Anyway, milledrate. The city of Naples milledrate as advertised in the interim was 1.27. The proposed milledrate is advertised and the notice of the second hearing was 1.23. And that decision was made following the budget hearing in discussion that we had. As far as the budget schedule, a reminder of where we came from, we began the process in May of on May 13th. And then we culminated with the last meeting which was September 4th and the first budget hearing. And we find ourselves here today, September 18th, for the final budget hearing and adoption. And we start the fiscal year on October 1st. The budget hearing requirement is to increase, we are there to outline the increase in the millage over the rollback rate and the purpose for each increase. The increase in the aggregate milled rate and the percentage over the aggregate rollback rate will be discussed and the governing body shall hear public comments regarding proposed increase and the general public shall be allowed to speak and ask questions prior to the adoption of the resolution. In addition, the governing body shall adopt its milligrate and levy prior to adopting its budget. The tax levies and budgets for the dependent special taxing districts will also be approved at first reading, following discussion and the adoption of the levies and budget for the city. During this time, the city is to hear comments regarding the proposed increase and explain the reason for the proposed increase over the rollback rate, which you just heard in initial comments. We'll go through the presentation and then obviously you have comments between each resolution as it's read. At this presentation, statutory requirements will be repeated with the resolutions as I just stated. And now, first of all, the definition, what is a rollback rate? The rollback rate is the advalorem tax rate that will bring to the city the same amount of tax money as last year, excluding the value of new construction. In the general fund, the final milligrate is 1.2300. The rollback rate is 1.0954 for the general fund alone. In East Naples Bay Taxing District, the final milligrate is 0.500, and the rollback rate is 0.4689. The morings bay taxing districts, the final milligrate is 0.0125 and the rollback rate is 0.012. The aggregate rollback rate and this was discussed on the September 5th meeting as well as presented and offered for adoption today is 1.1126. The aggregate milligrate of 1.2473 is 11 or 12.11% higher than the rollback rate. So that gives you the idea of an aggregate when you aggregate the general and the two taxing districts, each nipples bay and morings, the aggregate rate you're imposing is 1.2473, which is 12.11% higher than the 1.1126 rollback rate. This is a reminder, just a continuation of just demonstrating what a taxable value of $1 million, the difference between the 1.23, which is what is being proposed, and the 1.17, which was last year, and then the difference between the rollback rate and the 1.17 which was last year and then the difference between the rollback rate and the general millage. This is a reminder and depiction of that the city of Naples on average and a normal tax bill is collecting about 13 cents on every dollar of the taxable value to your properties within the Naples boundary given the other taxes that they pay. As far as the milled rate, the East Naples boundary given the other taxes that they pay. As far as the milledrate, the East Naples Bay Milidrate is proposed at 0.500 as stated. The East Naples Bay budget is $451,430. The Naples are the Moorings Bay Milidrate is proposed at 0.0125 and the Mooring Bay budget is 47,035. As far as the milled rate versus the rollback rate in the general fund. Reminder that difference will generate $4,618,472. The purpose for the increase is specific to salaries and anticipated negotiated increase in corresponding benefits. Increased personal account related to anticipated enhanced levels of service for police, fire, parks, recreation, and planning. Other purposes are to provide the resources necessary to keep pace with costs of goods and services, and most of the expense categories. And then also to maintain sufficient fund balance and reserves to accommodate economic conditions whether continued inflation or economic contraction. During our presentations, in the budget hearing and so forth we stress those, we put it through some stress test if the economy takes a slight downturn, what are we looking at and also outline projects that are still pending that they're going to hit the fund balance. So I just want to it wasn't without the effort to continue to look at both fund balances and those projects we must complete. As far as the enhanced level of service, it is again it goes with the increased salary, benefits, equipment, budgets for police, fire, planning, tech services. And that was a specific discussion when we decided to go from 1.17 to 1.23 and earmarking those specific dollars which I'll elaborate on in a moment. And those specific enhancements included directing and additional operational expenses, increasing both vehicles and personnel and police department which included 996,000 of that increase. Planning was 150,000 more directed to those efforts. Parks and Recreation was 67,461. And then fire has an additional 855,368. Tech Services is a public safety technician, which will be dedicated to both police and fire and safety systems. So that was 93,255. So that entire difference was eaten up. Actually, it's $100,000 more than it was the increase. Because the increase was $2,058 and those decisions came to a total of $2,162. As far as the other changes in the proposed budget. So from the beginning, we have to declare from when we sat in the first proposed budget and we sat in the budget meeting what changes that were made. And the revenue proposed when we met in August was 184,484,000. And the final revenue is 186,736. The change is 2,251. The predominant part of that is the milledrate increase from 1.17 to 1.23. And in addition to that, there was a slight change mentioned related to the Fifth Avenue bid after that was passed subsequent to our other meetings. The one change in this is when we made the decision then to adopt the CRA at that level, you also, we had to make a change to the CRA, because the money that would have otherwise been in the general fund gets peeled off. So when you increase that, I just want to make note, that's a difference from that slide. The CRA will, in fact, get 144,000, and 025 more, and there's a caveat to that, in the actual budget because of the increase. And that's in the document that you're provided. But subsequent to that start county by the way we'll be going with the potentially may go with the rollback rate. But I say start county, I'm sorry, call your county, I'm back home already. But call your county, I'm sorry. Their final budget here is actually tomorrow and they have elected to go with the rollback rate and I will just let you know if that is the case the CRA will have a reduction of 464,000 from what was anticipated. So between your increase and their decrease the net change is $320,693. So I just wanted to point that out but that here that isn't official but that's the word at the moment in their final hearing is tomorrow So just want to point that out As far as the overall expenses the expenses presented was 206 million six eleven three seventy one in the proposed budget The final was two hundred and eight eight twenty two seven ninety two and that is the two million two eleven four twenty one Is the difference now again? $1,200,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000, what goes up can come down, but this is the reminder that the estimated taxable value went up by 11.18% over the prior year. This also demonstrates the milligrate over time and demonstrates the 1.23%. Now this is what your millig, unrestricted and emergency reserves are expected to be. We expect to end the year in 2024, $2,697, and the emergency reserve is $5,481. I remind you that that's set by fund balance policy and it shall be 10% of the prior years adopted budget. It's fixed by the resolution unless we would change it. And so therefore, when we anticipate the budget going up in fiscal year 2025 as it is, that guarantees you have to have another required contribution to it to keep pace with that 10%. So when you look at the 2024 being 5,481, that is why based on the current budget it will go to 6,256 as you're required emergency reserve. We do believe a slight decline in the fund balance despite both the tax increase and for the enhanced services and the increased property value. It's due in part to two things and I'll remind you of the budget conversation which included replacing the million five fuel system out of the equipment services that supports all of our systems or all of our vehicles and provides the gas equipment. There's a one time expense to that that's a proportional share to the general fund that's just over $500,000. The design of the beach outfall or the seawalls, excuse me, which is the resulting part of the Irma is over 750,000. So the slight decline is really those one time expenses. But I would also remind you that the actual construction of those seawalls is looming and that's one of the reasons while maintaining this $20 million fund balance is essential because we estimate that those seawall construction costs could be upwards of $8 million. So I just would remind you of that. So those things all couple with the fact. Remember what I said, what our obligation is to meet the salary requirements, maintain a fund balance because if you didn't maintain it in that vicinity and you pay 8 million off the top, your minimum fund balance says you should be above 10 million. You're already in a reduction environment immediately at that time, so I just want to point that out as from a strategic fund balance perspective. As far as the overall total budget it just reminds you compared to the prior year that the gross budget expenses are 208 million compared to 197.2 in the prior year. That's an increase of 11.9 million The preponderance of that is directed to personnel and related costs operation expenses now capital expenses is a slight decline But that's it that that Really and I'll say this I think I said it before but but it's a misnomer given how many capital projects that will be in development this next year, but you're not doing the overall construction funding of them other than the normal replacement of infrastructure, especially in the enterprise funds. So with that, excuse me, the personnel services increase is 6.37 million or 9.2 percent over the budget and 8.3 million or 12.3 million overestimated actual. And when you look at it from that perspective, it reminds you that we always appropriate to 100% of the staffing levels. And then normal fluctuations is that you have money returned for vacancies and all the things that you all know about. So that's why your budget looks to be so much less of a change compared to your actual so much greater. It's because your vacancies come back and we try to do a good job in your budget of saying, look, we know this is what you appropriated, but we don't think you're going to spend it so we try to identify that for you and we include that in our projected fund balances when we report them to you. It captures the significant increases in the personnel and it maintains the pension rates that are greater than the actuarial requirement and I would just remind you that the funding ratio is presented here to demonstrate that all plans are above 80% and that the actuarial requirements are significantly lower than this council and the prior council's over the last five years have contributed to those pension plans, which shows you know fiscal stability and fiscal responsibility on your behalf for your employees. As far as the position changes, these, everything that was in the original proposed budget was not, none of them had an increase in the general fund employees. When we went to the enhanced part of it and I outlined those changes for you in terms of cost, but the positions come out to be one potentially one planning person and or professional services contract. One battalion chief, three firefighters, a logistic chief, recreation coordinator and four additional certified officers. I would keep in mind that some of there's some equipment and first time costs and with that increase, you will have an additional three officers next year and three firefighters as well. So the commitment to increasing the staffing levels for public safety is evident in your enhancements. This is just the general millage demonstrating the difference when I had cited to you in the one slide, the difference between the two amounts and what the rollback would generate versus the prior years as well as the change This is a recap really that gives you so if we generate it all that money where's the money going right and so the revenue and property increases 3 million 815 the the millage increases the 2 million 058058, which I referenced before, that's $5,871,000. The enhanced service that I outlined for you in detail was $2,162,000. Normal personnel increases, risk management went up to $240,000. Tech services is $338. Equipment services was $485, which is in reference to the Fuel Island replacement. Other contractors, and I mentioned this at least three times now but even other contractors want to have significant larger than that but I'm just pointing out the largest of which here is 294,000 first street maintenance alone. And then the other part that I already touched on as well is the C-Wall design which is a 750,000. So when you look at the budget and you say that yes you're generating that revenue you're still relying on other revenues and fund balances to the tune of 1,582,000 dollars. So that is where the milled rate increases going in the specific areas for its increase. As far as the general fund budget, it's important for you to know, and your citizens to know that the emphasis of this budget is safety and quality of life, which is the responsibility of immunist pality. So your police department takes it is 20,645,000 or 33% of the entire general fund budget. Fire department is 16.3 million or 26.10% of the budget. And parks and recreation and facilities is 13.4 another 21.46 so just at direct cost alone you're at over 80% of your budget is safety and quality of life now you could argue that planning is as an element of safety you can I guarantee you the self insurance charge and the tech services charge over half of those costs are supporting your police fire departments maintaining the vehicles and the fuel and the insurance on those, excuse me. But we're not trying to get into those semantics. But if you wanted to get into that, I guarantee your budgets upward to 85 to 88% that is dedicated towards safety and quality of life. As far as that's it for my presentation, I'll be happy to answer any questions. And if there aren't any Then we would I make yeah, I make the motion. I would recommend we move to the reading of the resolutions and Go from there any questions Okay I want to just say thank you for your commitment and we have or I have an enormous amount of trust in your responsibilities To making this budget physically responsible and presenting it well as others in in the staff So thank you very much. Thank you. All right, so we'll move on to Mayor before I read seven, just because of the statute, you may want to ask for the record of the Senate public comment on 6A. Yes, sir. On this, I put the big presentation. Specifically, 6A. Mrs. Rammaz, do you have any public comment for 6A? No, I do not. I thank you. Okay. If I may. Yes, sir. 7A. Thank you. Resolution determining and fixing the 2024 tax levy in final military for the city of Naples, exclusive of dependent taxing districts and providing sufficient funds for the general fund operations, providing a severability clause, a repealer provision and an effective date. Any public comment? No public comment. Any discussion if not an emotion? I make a motion to approve the resolution as presented. Second. I have a motion by Council Member Kramer and a second by Council Member Petranoff. I'm clerk, please pull the council. Vice Mayor Hutchison? No. Council Member Pannaman? Yes. Council Member Krisen? Yes. Council Member Barton? Yes. Council Member Kramer? Yes. Council Member Petranoff? Yes. Mayor Hightramer. Yes. Councilmember Petrungoff. Yes. Mayor Heightman. Yes, it passes six to one. Thank you council. Moving to seven B Yes, thank you mayor a resolution adopting the final budget for the City of Naples, Florida exclusive of dependent taxing districts for fiscal year commencing October 1st 2024 and ending September 30th, 2025. Appropriating funds for operating expenses of the city of Naples, Florida, for the general operation of the departments of the city, including utilities, and for the interest and principle on the outstanding bonds and other fixed obligations of the city for and during the fiscal year, providing a severability clause, a repeal or provision, and an effective date. Madam Clerk, do I have public comment? No public comment. Chair, can I make a comment? Very quickly, Greg Myers. I saw that was the operational budget, but I think Mr. McConnell just said bonds for projects and costs for those. I'd like to make a recommendation since the city is failed to do the legislatively required level of service analysis that the city consider and with Mr. Young's assistance because I too have great trust in him. Special assessment to go back and assess all of the projects that have been approved since the last level of service was done. And it's quite appropriate and they can pay their fair share of the billion dollars in cost that we're now going to be incurring that was missed and There's case law did some research. There's case law that supports that and the Naples Beach Club for example Should be paying a hundred million dollars towards that storm water management outfall project. Thank you Thank you for their public comment I'm looking for approval Thank you. Further public comment? Motion. A move for approval of the resolution as presented. Second. I have a motion for approval for 7B by Council Member Christman and a second by Council Member Kramer. Madam Clerk, please pull the council member of Christmanya. Yes. Council Member Petranoff. Yes. Council Member Barton. Yes. Council Member Kramer. Yes. Vice Mayor Hutchison. Yes. Council Member Penhaman. Yes. Mayor Hightman. Yes. Thank you, Council Passage unanimously. 17. Mr. McConnell. Yes. The resolution determining and fixing the 2024 tax levy and final military for the East Naples Bay special taxing district to provide sufficient funds for the operations of the special taxing district, providing a severability clause, a repealer provision, and an effective date. Madame Clerk, do you have public comment? No public comment. Thank you. I move for approval of the resolution contained in 7c. Second. I have a motion by Council Member Christman and second by Council Member Petrano. Madam Clerk, please roll the council. Council Member Pememann. Yes. Vice Mayor Hutchison. Yes. Council Member Petrano. Yes. Council Member Parton? Yes, but Mike's not working. Councilmember Chrisman? Yes. Councilmember Kramer? Yes. Mayor Heitman. Yes, passage unanimously. Thank you. Council going to 17, Mr. McConnell? A resolution determining and fixing the 2024 tax levy in final military for the mooring space special taxing district to provide sufficient funds for the operations of the special taxing district providing a severability clause repeal of provision and effective date. I'm clerk public comment no public comment thank you. No further approval. The motion by council member Petr enough. Second. And the second by Council Member Christmán. Please pull the council. Council Member Petranoff. Yes. Vice Mayor Hutchison. Yes. Council Member Christmán. Yes. Council Member Barton. Yes. Council Member Kramer. Yes. Council Member Peniman. Yes. Mayor Hyman. Yes. Thank you, Councilor Passace. Namously going to item 7E, Mr. McConnell. Thank you, Mayor. A resolution adopting the final budget for the East Naples Bay Special Taxing District for fiscal year commencing October 1st, 2024 and ending September 30th, 2025. Appropriating funds for the general operation of the East Naples Bay Special Taxing District for and during fiscal year commencing October 1st, 2024 and ending September 30 of 2025. Providing a severability clause over pillar provision and an effective date. Thank you Madam Clerk. Do we have public comment? No public comment. Move approval. Second. I have a motion by Council Member Pinneman and a second by Council Member Pitchner-Rough. Madam Clerk, please pull the council. Council Member Bartinneman and a second by Council Member Petrinoff. Madam Clerk, please pull the council. Council Member Barton. Yes. Council Member Pinneman. Yes. Council Member Christmown. Yes. Council Member Petrinoff. Yes. Council Member Kramer. Yes. Vice Mayor Hutchison. Yes. Mayor Hightman. Yes. Thank you, Council. Passes unanimously. That takes us just seven out of. Thank you Mayor. A resolution adopting the final budget for the Moring Space Special Taxing District for fiscal year commencing October 1st, 2024 and ending September 30th, 2025. Properating funds for the general operation of the Moring Space Special Taxing District for and during fiscal year commencing October 1st, 2024 and ending September 30th, 2025, providing a severability clause of repeal of provision and an effective date. Move approval. Oh, Madam Clerk, do I have a public comment? No public comment. No, I'm not. No, approval. Sorry. Thank you. I have a motion for approval by Council Member Pintaminann and second by Council Member Petr enough. Madam Clerk please call the council. Lace Mayor Hutchison. Yes. Council Member Penamann. Yes. Council Member Christen. Yes. Council Member Martin. Yes. Council Member Kramer. Yes. Council Member Petr enough. Yes. Mayor Hyden. Yes. Thank you, Councillor. Passes unanimously. Any closing remarks, Mr. Booters-Wark? Yes. Thank you, Mayor. I just want to thank the Mayor and Councillor again. An enormous amount of energy and time you all put into this process. This is a very thoughtful priority driven budget. And I want to thank staff for their work as well. It took a lot of time to make sure that our appropriations align with the community's expectations, especially as it relates to the enhanced level of public safety support in this community. We have a lot of hard work still ahead of us in making sure that there's a fair and equitable plan to deal with resiliency or the next decade plus I'm confident that we will be able to deal with it equitably. So the burden isn't placed solely on the residents of this community. There are lots of places that we will be seeking out to help fund these necessary infrastructure and facilities projects into the years to come. So with that, I thank you and thanks staff and appreciate your time. Thank you again and this adjourns the final budget hearing. you you