[00:00:04] >> GOOD EVENING. THE TIME IS NOW 6:00 PM AND I CALL [Call to Order] THE ORDER THE TOWN COUNCIL WORKSHOP OF JUNE 23RD, AND CAN WE HAVE A ROLL-CALL? >> MAYOR KURETSKI? >> HERE. >> VICE MAYOR DELANEY? VICE MAYOR DELANEY? >> HERE. [LAUGHTER]. >> COUNCILOR MAY? >> HERE. >> COUNCILOR SCHNEIDER? >> HERE. >> COUNCILOR SENSELIN? >> HERE. >> TOWN MANAGER KITZEROW? >> HERE. >> TOWN ATTORNEY BAIRD? >> HERE. >> OKAY, WE BEGIN. ARE THERE ANY CITIZEN COMMENTS? >> NO, MAYOR. >> OKAY. SEEING NONE. [1. Discussion of Proposed Operating Budget for Fiscal Year 2023.] I JUST WANTED TO ALONG WITH STAFF KICK THIS OFF TO ESTABLISH THE EXPECTATIONS AND THE GROUND RULES. WE NORMALLY JUST GET INTO THIS EVERY YEAR AND NOW WE HAVE NEW PEOPLE PLUS WE HAVE MORE PUBLIC ENGAGED EACH AND EVERY YEAR. I WANTED TO GIVE A PERSPECTIVE. THERE REALLY ARE NO GROUND RULES IN DOING THIS FOR THE COUNCIL. TO THE DEGREE THAT WE'VE ALL SEEN THIS INDIVIDUALLY, I WANT THE PUBLIC TO KNOW THAT. THIS PRESENTATION MAY HAVE CHANGED A LITTLE BIT FROM WHAT EACH OF US INDIVIDUALLY SAW, BUT WE INDIVIDUALLY SAW IT WITH THE TOWN MANAGER AND STAFF, NOT WITH EACH OTHER. WE HAVE NO IDEA EACH OTHER'S POSITION ON ANYTHING. HAVING BEEN THROUGH THIS MOST TIMES, IT DEPENDS HOW MUCH YOU KNOW, HISTORY, AND HOW PREPARED YOU ARE. IT'S A LONG PROCESS. YOU MIGHT NOT BE PREPARED TONIGHT TO WEIGH IN, YOU MAY BE WAITING FOR MORE INFORMATION, THAT DOESN'T MEAN YOU'RE NOT GOING TO WEIGH IN. YOU DON'T HAVE TO WEIGH IN TONIGHT. THIS IS THE FIRST TIME WE GET TOGETHER AS A COUNCIL SO THAT WE CAN SEND MESSAGES TO EACH OTHER ON WHERE WE STAND. I FIND IT, I THINK HELPFUL TO DO IT ON A PAGE-BY-PAGE BASIS. YOU DON'T HAVE TO DO IT THAT WAY YOU CAN WAIT TO THE END. BUT I'D LIKE WE DO PAGE BY PAGE, EVERYBODY HAS A CHANCE IF YOU WANT TO WEIGH IN. AGAIN, I'M REALLY MORE SPEAKING TO THE PUBLIC BECAUSE THE COUNCIL DOSES BECAUSE THEY'VE HAD THE PACKAGE, IS THAT WE HAVE A TABLE, IF YOU WILL, AT THE END OF THE MEETING, WHICH THEY'VE ALREADY CAPTURED POLICY GUIDANCE THEY'D LIKE US TO GIVE OR START TO GIVE. IN THE COURSE OF GOING THROUGH THIS, WE MAY PARKING-LOT OTHERS ONTO THAT LIST. REALIZE WHEN WE PICK UP A TOPIC, IT MAY JUST BE, WE FLAG IT, IT GETS PARKING LOT AND THEN WE KNOW WE HAVE GUIDANCE TO GIVE. ALSO IN THIS AT THE END, THERE'S A SHEET ABOUT THE UPCOMING IMPORTANT DATES. TO SOME DEGREE, IT'S ALMOST LIKE SHOULD BE AT THE BEGINNING, PARTICULARLY FOR THE PUBLIC AND NEW MEMBERS TO REALIZE WHAT'S NEXT. BECAUSE IT'S ALWAYS BEEN, WE SIT HERE AND THE VERY NEXT STEP THAT'S SIGNIFICANT OTHER THAN ALL THE GOOD WORK STAFF DID, TO PUT TOGETHER THE BEGINNINGS OF NUMBERS THAT WE CAN CRITIQUE, AND THEN IF WE CHANGE SOMETHING, IT GETS ITERATIVE AND WE SET THE TRIM. WHAT THAT MEANS IS THE PRELIMINARY MILLAGE RATE, IT GETS PUBLISHED. YOU CAN NEVER RAISE IT, SO WE HAVE TO HAVE AN AGREEMENT THAT WE'RE NOT GOING TO GO ANY HIGHER THAN THAT. THAT MEANS WE MAY ALL WANT TO LOWER THE RATE, BUT THE IMPORTANT THING IS, AND THAT'S JULY 19TH, WE'D BEGIN TO UNDERSTAND WHAT WE CAN AND CAN'T DO BY HAVING REVIEWED THE BUDGET. IF FOR EXAMPLE, A COUNCIL MEMBER BY EXAMPLE SAYS, "WELL, I'M NOT GOING TO PROVE IT'S THAT," I WOULD HOPE THEY WOULD SPEAK UP. BECAUSE THEN IT MEANS WE'VE GOT WORK TO DO TO TRY IT TO SET WHATEVER THE TRIM IS THAT WE WOULD ALL AGREE. WE COME OUT OF THIS WORKSHOP WITH EVEN THOUGH IT'S NOT TILL JULY 19TH, A TRIM LEVEL THOUGHT STILL COMES BACK TO US IN AN OFFICIAL MEETING AND THEN THERE'S OTHER MILESTONES IN HERE. WHAT IS MISSING IN I DO THINK IT NEEDS TO BE ADDED TO THE PARKING LOT AND TO THE DATES, IS THAT EVERY FIVE YEARS, TO THE DEGREE THAT WE HAVE A UTILITY FIVE-YEAR PLAN. IT REALLY DOES FIT INTO THIS OR THE WAY WE'VE DONE IT AS A COUNCIL IS WE NEVER REALLY HAVE TAKEN ACTION ON THE FIVE-YEAR PLAN WE DO IT ONE YEAR. BUT THE FIVE-YEAR PLAN ITSELF IMPLIES A FIVE-YEAR BUDGET. TO THE GRAPH, NEVER COMFORTABLE ABOUT THAT AND I'M GOING TO BE FLAGGING THAT I JUST WANTED TO SHARE BECAUSE SOME OF YOU HAVE SEEN THAT FOR THE FIRST TIME AND THAT'S NOT TONIGHT'S SCOPE. BUT ON THE OTHER HAND, WE WANT TO BEGIN TO MESSAGE WHATEVER YOUR POSITIONS IS ON THAT. I WOULD SUBMIT WE GOT TO HAVE A DATE IT DOESN'T HAVE TO BE PROVIDED TONIGHT, BUT WE SHOULD BE TOLD WHEN THAT COMES BACK TO US BECAUSE EVEN IF [00:05:05] IN THE YEARS WE DON'T HAVE A FIVE-YEAR PLAN FOR THE UTILITIES UNIQUELY, WE HAVE A DECISION TO MAKE ON WHETHER OR NOT WE ALLOW A INFLATIONARY COST ADJUSTMENT. THAT IS A SEPARATE ACTION THAT'S ASSUMED IN HERE. I'M JUST REALLY JUST TRYING TO FRAME THE DOWNSTREAM DECISIONS THAT WE'RE NOT MAKING TONIGHT, BUT WE START SETTING THE STAGE FOR WHAT WE'RE GOING TO DO. YOU DON'T WANT THOSE, SO I DO THINK WE'VE NEVER HAD IT IN THERE, BUT I THINK THAT'D BE A CLARITY ON THAT. POLICY CONSENSUS GUIDANCE MAY OR MAY NOT EMERGE, BECAUSE WE DON'T HAVE ALL THE INFORMATION. IF IT DOESN'T EMERGE, DOESN'T MEAN WE'RE NOT DOING OUR JOB, BUT IF IT EMERGES FINE IF IT DOESN'T. BECAUSE AFTER WE LEAVE HERE, WE THEN GO BACK TO THE INDIVIDUAL DIRECTION OF THE TOWN MANAGER. HE'S TRYING TO SORT OUT WHERE WE ARE. I ALWAYS FEEL IT'S HELPFUL TO SAY MORE THAN LESS SO THAT WE ALL UNDERSTAND WHERE WE'RE COMING FROM. BUT I'M NOT SAYING THAT TO FORCE ANYBODY IN TO SAY MORE. I'M JUST EXPLAINING HOW WHY I USUALLY ON THIS SPEAK UP. THEN I'LL JUST PAUSE THERE, IS EVERYBODY SATISFIED WITH THAT GROUND RULE, AND WHERE WE'RE GOING? >> SURE. I MAY HAVE SOME QUESTIONS ABOUT SOME OF THE TIMING, THOUGH. WE HAVE SET THE TRIM ON JULY 19TH, BUT WE DON'T HEAR ABOUT THE REST OF THE BUDGET UNTIL AUGUST 11TH. I WAS HOPING TO GET A FULL PICTURE BEFORE WE TALKED ABOUT THE TRIM. >> WE CAN TABLE. >> YES. >> LET'S DO THIS. THAT'S AN ASK. WE TABLE IT MAKE SURE WE GET TO IT FOR SOME DISCUSSION. I JUST WANTED TO GO AROUND AND MAKE SURE THAT WE'VE GOT EVERYBODY'S. ANYTHING YOU WANT TO ADD? >> NO, BUT I AGREE WITH THAT. [OVERLAPPING] THE MORE INFORMATION, THE BETTER. >> QUICK QUESTION ON PAGE BY PAGE. HE WANTS TO GO THROUGH THIS AND JUST ANY ITEMS? >> NO, HE'S GOING TO PRESENT IT. >> AS HE PRESENTS WITH GREAT ITEMS? [OVERLAPPING] >> IT'S UP TO YOU INDIVIDUALLY. BECAUSE SOMETIMES IT MAKES SENSE BECAUSE IT IS AN ADD-ON TO AT LEAST MAKE A COMMENT. SOMETIMES YOU HOLD TO THE END, AND IT'S THE PREROGATIVE OF THE INDIVIDUAL TO JUDGMENT. I'M JUST SAYING I DON'T THINK IT'S APPROPRIATE TO SAY EVERYTHING HAS TO WAIT TO THE END, I'M JUST TRYING TO REVIEW. ON THE OTHER HAND, IT DOESN'T MEAN THAT YOU CAN'T GO BACK IN A SUMMARY BECAUSE SOME OF THESE PAGES IS THE SAME THINGS COVERED IN MULTIPLE PAGES. >> I'LL GO WITH THE FLOW AND JUST ORGANIZE MY THOUGHTS THROUGHOUT. IF SOMETHING JUMPS OUT, I'LL SAY IT, OTHERWISE, I'LL PROBABLY WAIT TO THE END. [OVERLAPPING]. >> BUT YOU'RE NOT CONSTRAINED BY IT BECAUSE YOU CAN [OVERLAPPING] WHATEVER YOU WANT. >> I'M GOOD. >> OKAY. YOURS? >> MAYOR BEFORE I TURN IT OVER TO FINANCE DIRECTOR, I JUST WANTED TO SAY A COUPLE OF THINGS REAL QUICK. FIRST OF ALL, ALTHOUGH THIS IS THE FIRST TIME WE'RE SPEAKING PUBLICLY ABOUT THE PROPOSED OPERATING BUDGET. THIS PROCESS REALLY STARTED IN JANUARY. IT'S BEEN AN ONGOING PROCESS AND I WANT TO THANK THE DIRECTORS THAT ARE HERE AND THE BUDGET TEAM FOR ALL OF THEIR HARD WORK AND THE THINGS THAT THEY'VE BEEN DOING. WE DID GET AN OPPORTUNITY TO MEET WITH EVERY DEPARTMENT HEAD SO THEY WERE ABLE TO PROVIDE INPUT ON WHAT THEIR PRIORITIES ARE, WHAT THEY'RE LOOKING AT. OF COURSE THE CHALLENGE FOR THIS BUDGET IS WE'RE NOT SURE WHAT THE FUTURE HOLDS AND IN OUR ECONOMIC TIMES AT THE MOMENT. I REALLY WANT TO GIVE KUDOS TO THE TEAM AS WE'VE BEEN NAVIGATING THROUGH THAT WHOLE PIECE. YOU'LL FIND THAT THERE'S PROBABLY THE BIGGEST THEME FOR US IS FOCUSING ON OUR EMPLOYEES AND THE WORK THAT THEY DO AND MAKING SURE THAT WE CAN TAKE CARE OF THEM APPROPRIATELY AS THEY ARE NAVIGATING THESE VERY CHALLENGES AS WELL. THE EMPLOYEES ARE OUR MOST IMPORTANT ASSET AS YOU KNOW. YOU CAN HEAR A LOT ABOUT THAT TONIGHT. THEN THE LAST THING I WILL TELL YOU IS THAT THE TEAM STANDS READY TO DO WHATEVER WE NEED TO DO NEXT TO KEEP THIS PROCESS MOVING FORWARD. I WANTED TO JUST GIVE KUDOS TO THE TEAM HERE IN TERMS OF OUR FINANCE DIRECTOR, SCOTT REYNOLDS, AND OUR SENIORS DIRECTORS, KATYN PARETO AND NIKKI CARPET NIETO FOR ALL THE WORK THAT THEY'VE DONE. WITH THAT, I'LL TURN IT OVER TO YOU, SCOTT. >> THANK YOU, FRANK. GOOD EVENING. SCOTT REYNOLDS, FINANCE DIRECTOR FOR THE TOWN OF JUPITER. THIS IS THE 2022-2023 BUDGET WORKSHOP FOR THE TOWN OF JUPITER FOR THE OPERATING PORTION OF THE BUDGET. I'LL JUST QUICKLY JUMP INTO IT AND LIKE THE MAYOR SAID, "IF WE GO ALONG IF YOU HAVE A QUESTION," PLEASE STOP ME AND I'LL BE MORE THAN HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. IF I DON'T HAVE THE ANSWER, I'M SURE SOMEBODY IN THE AUDIENCE DOES. WE CAN TRY TO GET THOSE ANSWERS TO YOU. BUT TO GO OVER SOME OF THE ASSUMPTIONS OF WHAT WE'RE LOOKING AT THIS CURRENT YEAR. WE ARE PROPOSING AT THIS POINT A 2.4633 FLAT MILLAGE RATE, THERE IS A $1.3 BILLION GROSS INCREASE IN THE PROPERTY VALUES OVER FY 2022. [00:10:02] THAT'S A 10.89 PERCENT INCREASE IN THE VALUES TOWN-WIDE. WE'VE SEEN THAT EXPONENTIAL GROWTH ACROSS THE COUNTY. WE DID EXPECT AN INCREASE. I WILL SHARE WITH YOU THE 10.89 PERCENT WAS NOT EXPECTED, [NOISE] BUT WE DO KNOW THAT THERE WAS GOING TO BE SOME FORM OF INCREASE GOING INTO THIS YEAR. WE'VE ASSUMED A CONTINUING OF DISTRIBUTION BETWEEN THE CIP AND THE OPERATING BUDGET OF 85 PERCENT OF THE TAX REVENUE GOING TOWARDS THE OPERATING FUND. FIFTEEN PERCENT OF THE REVENUE IS COLLECTED TO THE CIP. THERE'S A COMBINATION OF AN INCREASE IN ESTIMATED VALUES IN A FLAT MILLAGE RATE WHICH RESULTS IN $2.5 MILLION IN THE GENERAL FUND OPERATING REVENUES. THE WATER UTILITY IS ESTIMATING, THERE'S AN EXPERIENCE IN A NET INCREASE IN WATER REVENUES OF 2.97 PERCENT. THAT AMOUNT DOES NOT INCLUDE THE RETAINED EARNINGS, ONCE WE GET TO THAT SLIDE, YOU'LL SEE THAT MADE UP OF A 0.5 PERCENT INCREASE IN CUSTOMER GROWTH AND A RECOMMENDED 4.5 PERCENT RATE INDEX AS THE SAME LEVEL OF CUSTOMER DEMAND AS FY2022. FOR THE STORMWATER UTILITY, THE CHARGES FOR SERVICE ARE ESTIMATED AT 6.38 PERCENT INCREASE, WHICH AGAIN DOES NOT INCLUDE THE RETAINED EARNINGS THAT YOU'LL SEE LATER ON IN THE PRESENTATION. THAT'S A 7 PERCENT INCREASE DUE TO INDEXING AND THAT EQUATES TO A $0.43 CENTS PER ERU AND A 0.2 PERCENT EQUIVALENT RESIDENTIAL UNIT GROWTH. THE BUILDING FUND STILL VERY HEALTHY EVEN AS WE SAW THROUGH THE PANDEMIC, PEOPLE WERE DOING HOME IMPROVEMENT PROJECTS. PERMANENT REVENUE STAYED HEALTHY. WE'RE ACTUALLY ANTICIPATING A $600,000 INCREASE OVER THE CURRENT FY2022 BUDGET. THE GENERAL FUND REVENUE ASSUMPTIONS CONTINUING ON WITH THE AD VALOREM TAX, WE'RE GOING TO SPEAK A LITTLE BIT ABOUT THAT THIS EVENING BECAUSE OF WHAT I JUST SHOWED YOU, THE 10.89 PERCENT INCREASE. IT'S SOMETHING THAT WE NEED TO DISCUSS AND UNDERSTAND A LITTLE BIT, ESPECIALLY GOING FORWARD LOOKING IN OUTWARD YEARS, BUT SHOWING THE INCREASES OF THE $1.3 BILLION INCREASE THE 10.89 WITH A FLAT MILLAGE RATE. THAT EQUATES TO JUST OVER $26 MILLION FOR THE GENERAL OPERATING AND 4.7 MILLION GOING OVER TO THE CIP, THAT'S AN 85/15 SPLIT THAT I WAS JUST REFERRING TO. ONE OF THE THINGS I WANT TO CALL OUT, EVEN THOUGH THAT'S NOT THIS EVENING AS THE CRA THAT'S [NOISE] 3.18 MILLION IN TOTAL WITH THE CRA INCREASES WHICH IS $141,000 INCREASE. BELIEVE IT OR NOT, THAT'S A SUBSTANTIAL INCREASE FOR THE CRA. THEY'VE SEEN VERY MINIMAL GROWTH THERE OVER THE LAST COUPLE OF YEARS. WITH THAT 10.89 PERCENT INCREASE THE CRA WAS ALSO A BENEFIT. >> QUICK QUESTIONS. >> YES, MA'AM. >> SINCE WE'RE GOING PAGE BY PAGE, CAN YOU SPEAK TO THE MILLAGE RATE AND HOW IT'S CHANGED OVER THE YEARS FROM LOOKING BACK AND THE HISTORY THERE? >> I DO HAVE A SLIDE THAT STAYED PRETTY CONSISTENT OVER THE YEARS. THERE WAS A SLIGHT DECREASE BACK IN 2017, I BELIEVE IT WAS VERY MINIMAL, BUT IT HAS STAYED PRETTY CONSISTENT OVER THE YEARS. THERE'S NOT BEEN A LOT OF CHANGE IN THE MILLAGE RATE ITSELF. >> THANK YOU. >> AGAIN, FOCUSING IN ON THE PROPERTY VALUES, WE SEE THIS SLIDE EVERY YEAR, BUT WE USUALLY [NOISE] ONLY SHOW LIKE A FIVE-YEAR HISTORY. FELT IT IMPORTANT THAT WE SHOW AS FAR BACK AS I CAN GO IN MY RECORDS WHICH WAS 2006, BUT WE'LL ILLUSTRATE WHAT WE'RE TRYING TO POINT OUT HERE. EVERYBODY REMEMBERS THE HOUSING BUBBLE. YOU CAN SEE HERE IN 2008, WE RECEIVED A VALUATION OF JUST UNDER NINE BILLION DOLLARS, OR JUST AROUND NINE BILLION DOLLARS, BUT WE HAD A 26.8 PERCENT INCREASE IN THE VALUES, BUT THAT WAS THE HOUSING BUBBLE. THEN YOU CAN SEE SHORTLY AFTER THAT, THAT RAPID DECLINE WHEN THE HOUSING BUBBLE HIT BACK DOWN THERE WAS A NEGATIVE 9 PERCENT DECREASE IN THE OVERALL VALUES HERE IN JUPITER. IT TOOK APPROXIMATELY NINE YEARS TO GET BACK TO THAT NINE BILLION DOLLAR VALUATION IN 2017. I THINK THAT'S VERY IMPORTANT. YOU CAN SEE HERE IN 2016, 10.5 PERCENT IS WHAT WE HAVE, THEN SHORTLY AFTERWARDS IT STARTS TO DROP OFF TO WHAT I WOULD CONSIDER NORMAL FOR JUPITER. [00:15:01] ANYWHERE BETWEEN FIVE AND FOUR AND A HALF PERCENT INCREASE IS PRETTY HEALTHY FOR JUPITER BASED ON OUR BUILD-OUT, BUT THEN HERE WE GO INTO 2023 FROM THE 4.8 UP TO 10.89 PERCENT INCREASE THAT IS DIRECTLY ATTRIBUTED TOO. I MEAN, IF YOU JUST WATCH THE NEWS, YOU KNOW WHAT'S GOING ON, THE HOUSING SALES, THE RESETTING OF THOSE HOME VALUES DUE TO THE SAVE OUR HOMES INITIATIVE AND HOMESTEAD COMING OFF OF IT. THOSE TURNOVERS IN THOSE SALES HAVE DRIVEN THAT 10.89 PERCENT INCREASE. >> SCOTT. >> YES SIR. >> JUST TO POINT PERSPECTIVE BECAUSE SOME PEOPLE, SOME OF THE AUDIENCE MIGHT THINK THAT THE HOUSING BUBBLE WE'RE GOING THROUGH WERE NOW, BUT THAT ONE IN 2007 WAS ALSO A LOT OF NEW GROWTH, NEW DEVELOPMENT. >> CORRECT. >> SOMEONE HERE YOU THINK IN TERMS OF BUBBLE, THERE WAS A LOT OF NEW DEVELOPMENT, HUGE AMOUNTS PLUS PRICES GOING UP. >> THAT'S CORRECT. THERE WAS A COMBINATION THERE. GOING TO YOUR POINT, [NOISE] MR. MAYOR, I DON'T GO ALL THE WAY BACK TO 2006 IN THIS SLIDE, WHEN WE START COMPARING NEW CONSTRUCTION VALUES TO THE VALUATION INCREASES FOR THE 10.89 PERCENT. WHAT'S IMPORTANT HERE IS JUST OVER ONE PERCENT OF THAT VALUE INCREASE WAS RELATED TO NEW CONSTRUCTION, AS WE KNOW HERE IN JUPITER WE'RE COMING TO BUILD OUT. WE'VE BEEN DISCUSSING THAT OVER THE LAST FEW YEARS. WE'RE REALLY TIED [NOISE] TO VALUATIONS AND THE VOLATILITY IN THE HOUSING MARKET. ONE GOOD THING ABOUT JUPITER IS WE'RE INSULATED EVEN THOUGH THERE MAY BE NATIONAL CONDITIONS, OR EVEN STATE CONDITIONS THAT MAY TRIGGER VOLATILITY IN THE MARKET. [NOISE] ONE THING IS THAT JUPITER IS INSULATED, BUT WE ARE STILL TIED TO THOSE VALUES GOING FORWARD. AGAIN, ONE THING I WANT TO POINT OUT IS THE USUAL GROWTH, THE AVERAGE GROWTH FOR JUPITER IS ANYWHERE BETWEEN 4.5, 5 PERCENT IS WHERE WE SHOULD BE. THE RESETS AND THE HOUSING VALUE, THAT'S PREDOMINANTLY IS WHAT'S TRIGGERING THIS 10.89 PERCENT. WAS THERE ANY QUESTIONS RELATING TO THAT? >> BUT HELPFUL IMPORTANT CONTEXTS IS, WHAT PERCENTAGE OF THE HOMES ARE COVERED BY SEVERAL HOMES? I THINK LIKE 50 PERCENT, OR SOMETHING. >> APPROXIMATELY, IF I REMEMBER RIGHT AND THINKING BACK IN RELATION TO THE HOMESTEAD PROPERTY, I BELIEVE IT'S AROUND 50 PERCENT. >> BUT YOU CAN GET THAT FOR [OVERLAPPING] >> I CAN. >> IS GIVEN BEFORE AND WHY THAT'S IMPORTANT FOR US TO HAVE IN CONTEXTS IS BECAUSE WE REALIZE THAT WHEN WE'RE REALLY LOOKING AT THE IMPACT ON THE PUBLIC, THOSE HAD SEVERAL HOMES ARE ALWAYS PROTECTED AT THREE PERCENT, BUT THOSE IN RENTAL UNITS AND THOSE WHO JUST BOUGHT, THE OTHER ONE'S MORE EXPERIENCING THE 10 PERCENT. IT'S NICE WHEN WE AGONIZE ABOUT THAT. I JUST WANTED TO MAKE SURE EVERYBODY UNDERSTAND THAT THERE IS A PERCENTAGE THAT ARE PROTECTED THROUGH SEVERAL HOMES, BUT THAT MEANS THAT WHEN YOU DO A 10 PERCENT INCREASE, THAT MEANS THAT THEY MAY BE PAYING 15 PERCENT IN TERMS OF HOW MUCH BECAUSE IF ONE SIDE IS GETTING THREE PERCENT, SOMEBODY ELSE IS MAKING UP FOR IT. >> ANOTHER QUESTION FOR CONTEXT TOO IS YOU TALKED ABOUT THE VALUATIONS GOING UP ACROSS THE COUNTY AND OURS BEING 10.8 PERCENT. CAN YOU SPEAK TO SOME OF THE OTHER MUNICIPALITIES AND WHAT THEY'RE SEEING IS 10.89 IN KEEPING WITH [NOISE] WHAT OTHERS ARE SEEING, IS IT LOWER OR HIGHER? WHERE DO WE STAND ON THE RANGE? >> ACTUALLY, I DID DO A LITTLE RESEARCH ON THAT BECAUSE EVERY YEAR THE PROPERTY APPRAISER PROVIDES EVERY MUNICIPALITY A LIST OF WHAT EVERYBODY'S GOING TO THEIR VALUATION INCREASES. THIS YEAR BECAUSE OF THE LARGE INCREASE, I DID DO SOME RESEARCH JUST TO DO SOME BENCH MARKING, JUST TO REASSURE MY ASSUMPTIONS OF WHAT WE WERE SEEING IN THE ONE PERCENT GROWTH IN RELATION TO TYING THAT TO JUST VALUES GOING FORWARD HERE IN JUPITER. I WENT THROUGH AND I LOOKED AT BOCA DELRAY, [NOISE] PALM BEACH GARDENS, WHICH IS OUR NEIGHBOR, WELLINGTON, WEST PALM BEACH. WHAT I SAW THERE BECAUSE INITIALLY I LOOKED AT THE TOTAL INCREASES THAT THEY WERE RECEIVING, WHICH WAS MORE THAN JUPITER OVERALL, LOOKED AT THEIR NEW CONSTRUCTION GROWTH OUTSIDE OF WELLINGTON, JUPITER WAS ONE OF THE LOWEST AS FAR AS THE NEW CONSTRUCTION VALUES AND EVEN IN THE VALUATION INCREASES NOW. WHEN YOU LOOK AT THAT, ONE THING TO REMEMBER TOO IS THAT JUPITER IS 80, 20 AS FAR AS THE AMOUNT OF RESIDENTIAL PROPERTY COMPARED TO COMMERCIAL PROPERTY. [00:20:02] WHEREAS YOU LOOK AT OUR NEIGHBOR TO THE SOUTH OF THOSE PALM BEACH GARDENS, THEY HAVE A LOT MORE COMMERCIAL PROPERTY AND ALSO EXTRA GROWTH AREAS. JUST LOOKING AT THOSE NUMBERS AGAIN, WITH BUILD-OUT HAPPENING HERE IN JUPITER, THEY CONFIRMS THE ASSUMPTIONS THAT WERE TIED TO THE VALUATION IS GOING FORWARD AND REDEVELOPMENT. DID THAT ANSWER THE QUESTION? >> IT DOES. >> GET THIS QUESTION EVERY YEAR, NEVER PUT IT INTO A SLIDE, I FIGURED LET'S JUST PUT IT INTO A SLIDE. THE QUESTION IS ABOUT THE JUPITER MILLAGE. WELL, WHAT PERCENT OF THAT IS THE RESIDENTS TAX BILL? WE'RE AT 14.28 PERCENT OF THE TOTAL TAX BILL. WHAT YOU'RE LOOKING AT THERE IS THE FY 2022 TAX BILL THAT A RESIDENT WOULD [NOISE] RECEIVE. THE OTHER JURISDICTIONS THAT ARE INCLUDED IN THEIR TAX BILL IS OBVIOUSLY PALM BEACH COUNTY, THE SCHOOL BOARD, LIBRARY, THE JUPITER FIRE MSTU. I DO HAVE A SLIDE ON THAT LATER. THAT EQUATES TO ABOUT 9.7 PERCENT AND THEN OTHER SPECIAL TAXING DISTRICTS, BUT APPROXIMATELY JUST OVER 14 PERCENT FOR THE OPERATING CIP PORTION OF WHAT YOU'RE SEEING THIS EVENING. ONE OF THE OTHER THINGS I WANTED TO POINT OUT TOO THAT NEEDS TO BE CONSIDERED IS THE JUPITER DEBT MILLAGE. RIGHT NOW AS IT STANDS, IT'S JUST 0.1531 TO COVER THE GENERAL OBLIGATION BOND OBLIGATIONS GOING INTO NEXT YEAR. ONE THING TO REMEMBER TOO IS THAT THE TRIM ACTUALLY STARTS JULY 1, WHICH MEANS WE WILL RECEIVE UPDATED EVALUATION NUMBERS JULY 1 FROM THE PROPERTY APPRAISER. THESE NUMBERS MAY GO UP A LITTLE BIT. JUST AS I JUST INDICATED ON THE PREVIOUS SLIDE, THE JUPITER [NOISE] MSTU WANTED TO INCLUDE THIS SLIDE AS WELL. I JUST SO THAT THE COUNCIL CAN SEE WHAT'S BEING PROPOSED BY THE PALM BEACH COUNTY FIRE. THEY HAVE A PROPOSAL OF JUST OVER $26 MILLION FOR FY 2023 AS A FOUR MILLION DOLLAR INCREASE OVER THE FY 2022 NUMBER. THAT'S PRIMARILY DRIVEN, WHEN SPEAKING WITH THEIR FINANCE PEOPLE, PRIMARILY DRIVEN BY CAPITAL REQUESTS AND PERSONNEL REQUESTS. BUT ONE THING TRYING TO BE ILLUSTRATED ON THIS SLIDE IS ALL MUNICIPALS ARE CAPPED AT 10 MILLS THAT'S THE MOST AMOUNT OF MILLAGE THAT THE TOWN CAN ASSESS WITH THE FIRE MSTU. WE HAVE A REMAINING CAP BALANCE OF JUST OVER 5.6 MILLS THAT WE COULD USE FOR EITHER CAPITAL, OR OPERATING PURPOSES. WAS THERE ANY QUESTIONS? YES, SIR. >> IT CAME UP AND YOU SOMEWHAT ANSWERED IT, CAME UP WHEN WE WERE MEETING ONE ON ONE, BUT THAT'S AN 18 PERCENT INCREASE. I DO WANT TO SEE THE DETAIL ON HOW THAT IS GOING UP BY THAT AMOUNT IN A SINGLE YEAR BECAUSE FOR THOSE THAT DON'T KNOW, WE PAY WHAT ACTIONS ARE. CERTAINLY JUST ALARMED I WANT TO MAKE SURE I HAVE GREATER INSIGHT INTO HOW IT CAN BE GONE UP 18 PERCENT. I KNOW YOU SAID A PORTION OF IT IS ONETIME CAPITAL. WELL, THEN I WANT TO KNOW WHAT PORTION WAS ONETIME CAPITAL AND WHAT THAT WAS. >>> WE CAN GET THAT DETAIL AND AGAIN, SPEAKING WITH THEIR FINANCE PEOPLE, THEY'VE INDICATED TO ME THAT THAT NUMBER ACTUALLY MAY CHANGE ONCE THEY GET THE NEW VALUES ON JULY, BUT I'LL DEFINITELY GET YOU THE DETAILS SHEET ON THAT. THIS SLIDE, I'M TRYING TO SHOW EVERY YEAR WE'RE ALL VERY SENSITIVE ON HOW THE JUPITER TAXES ARE AFFECTING THE TAXPAYERS. WE TRIED TO SHOW A SLIDE OF WHAT THE TAX, HOW IT WOULD IMPACT A $550,000 HOME HERE IN JUPITER FROM FY22 GOING INTO FY23. YOU CAN SEE FROM THIS SLIDE THAT THE FLAT MILLAGE THAT'S BEING PROPOSED FOR A HOMESTEADED PROPERTY WITH THE SAVE OUR HOMES INITIATIVE, THAT'D BE A $40.64 INCREASE ANNUALLY, FOR NON-HOMESTEADED PROPERTY A $147.54. THEN OBVIOUSLY, A COMMERCIAL PROPERTY WITH A VALUE OF $618,000 THEY WOULD SEE $165,000 INCREASE IN THEIR TAX BILL JUST DUE TO THE VALUE INCREASES. ONE OF THE THINGS THAT WE CONSIDER EVERY YEAR IS THE MILLAGE RATE. AS THE MAYOR INDICATED AT THE BEGINNING OF THIS MEETING, WE HAVE A TRIM MEETING COMING UP IN JULY. ONE OF THE THINGS FOR COUNCIL CONSIDER IS [00:25:02] THE ACTUAL MILLAGE RATE THAT'S BEING CONSIDERED, THE 2.4633. IF THE COUNCIL WISHES TO REDUCE THAT AMOUNT, ONE OF THE THINGS THAT COULD BE DONE AND I HAVE TO PRESENT TO THE COUNCIL AND TO THE PUBLIC THE ACTUAL ROLLBACK RATE, WHICH IS A RATE THAT'S CALCULATED THAT WOULD BRING IN THE SAME AMOUNT OF DOLLARS AS LAST YEAR. THAT RATE WOULD BE 2.2494. WHAT THAT WOULD EQUATE TO AS FAR AS THE GENERAL FUND OPERATING, THAT WOULD MEAN A REDUCTION OF $2.3 MILLION, WHICH COULD BE MADE UP THROUGH THE USE OF EITHER FUND BALANCE OR MAYBE SOME REDUCTIONS IN OPERATING COSTS. THE MIDPOINT BETWEEN THE ROLLBACK RATE AND THE PROPOSED MILLAGE RATE IS 2.3564. THAT WOULD EQUATE TO A REDUCTION OF $1.2 MILLION IN OPERATING FUNDS, WHICH AGAIN, THAT COULD BE MADE UP EITHER THROUGH THE USE OF FUND BALANCE OR SOME POSSIBLE REDUCTIONS IN COST. >> CAN I JUST ADD ON THAT ONE, CAN'T HELP MYSELF BUT THE COMMENTS SOMETIMES, IT SHOWS ACTUALLY THE SILLINESS OF THE ROLLBACK RATE THIS YEAR UNLIKE ANY OTHER. THIS IS A LEGISLATIVE THING WE'VE BEEN DEALING WITH FOR A DECADE. WE HAVE TO DO IT. IN THE EARLY YEARS WHEN IT WAS DONE, MAYBE IT WAS A LITTLE MORE PRACTICAL IF YOU'RE HAVING ONE PERCENT INFLATION, YOU COULD SAY, WELL, THERE'S A REASONABLE POSSIBILITY YOU CAN LIVE WITH A ROLLBACK. BUT TO SUGGEST WHEN YOU HAVE INFLATION, WE HAVE, BUT I JUST WANT TO EMPHASIZE BECAUSE THERE MAY BE MEMBERS OR MOST OF THE PUBLIC WERE UP HERE THAT DON'T KNOW. THAT'S A MANDATE. >> IT'S A REQUIREMENT. >> THAT'S THEIR CRITERIA, NOT OURS, BUT IT STILL HAS TO BE DONE. >> IT'S A BENCHMARK. THE STATE REQUIRES US TO BROADCAST TO THE PUBLIC ABSOLUTELY AS AN EXERCISE. >> EVEN IN OUR RESOLUTION, WE HAVE TO STATE THAT IF WE'RE GOING ABOVE THE ROLLBACK RATE. >> YES, SIR. >> PROBABLY ON THE NEXT SLIDE, YOU'LL SEE. THAT'S WHY I'D ASKED WHEN I SPOKE WITH YOU, JUST TO SHOW THE PUBLIC IF WE CHOSE THE ROLLBACK RATE TO MEAN NOMINAL DECREASE IN YOUR TAX BILL, THAT IT WOULD END UP CAUSING THE TOWN $2.3 MILLION, BUT ESSENTIALLY IT WOULD END UP ONLY SAVING THE RESIDENCE $10 A MONTH IF WE DID THE FULL ROLLBACK RATE. I DON'T WANT TO CUT THE BUDGET FROM THE TOWN BY $2.3 MILLION AND HAVE TO MAKE UP FOR THE GENERAL FUND OR ANYTHING JUST TO ONLY SAVE, MAYBE A SMALL DROP IN THE BUCKET. >> WELL, AS ILLUSTRATED EARLIER, SEGUE INTO THE NEXT SLIDE. [LAUGHTER] BUT AS ILLUSTRATED EARLIER, LOOKING AT THE VALUES TO YOUR POINT, WE'RE TYING THOSE DOLLARS TO THE VALUATIONS AND POSSIBLE VOLATILITY IN THE MARKET, YOU REDUCE THE MILLAGE. THE POSSIBILITY OF THAT MILLAGE BEING INCREASED OUTSIDE OF SOMETHING MAJOR HAPPENING IN THE TOWN IT'S PRETTY UNLIKELY. TO THAT POINT, WE DID PUT TOGETHER A SLIDE TO, AND I KNOW THERE'S A LOT OF NUMBERS ON THIS SLIDE. BUT JUST TO ILLUSTRATE, INCREMENTAL DECREASES IN THE MILLAGE AND HOW IT WOULD AFFECT THE AVERAGE HOUSEHOLD OF $550,000 HOME. IT GOES ANYWHERE FROM A REDUCTION IN FUNDING OF $127,000, WHICH IS A FIVE-DOLLAR IMPACT FOR HOMESTEADED PROPERTY ALL THE WAY DOWN TO THE ROLLBACK RATE WHICH WE JUST DISCUSSED, WHICH IS $110 FOR THE HOMESTEADED PROPERTY OR A $130 FOR NON-HOMESTEADED PROPERTY. THAT'S THE ACTUAL REDUCTION IN THE TAX BILL BASED ON THOSE DECREASED AMOUNTS IN THE MILLAGE. >> SCOTT, ARE YOU GOING TO ADDRESS AT SOME POINT THE IMPACT OF INFLATION ON THE BUDGET? BECAUSE WE'RE LOOKING AT THE INCREASES, BUT WE'RE NOT REALLY TALKING ABOUT THE COST INCREASES TO THE TOWN BECAUSE YOU SAY 10.89 BUT INFLATION IS 8.6 AND THEN WE'RE REALLY NOT GETTING TO. >> WE WILL DEFINITELY TALK ABOUT THAT WHEN WE GET TO THE EXPENDITURE PORTION, WE'RE CONCENTRATING RIGHT NOW ON THE REVENUES. >> ALSO TO ADD ON TO COUNCIL [INAUDIBLE] COMMENT ABOUT, WE ALWAYS WANT TO LOWER THE TAXES, BUT IF WE DO LOWER TAXES THIS YEAR, THE HOUSING MARKET IS ALREADY STARTING TO COOL OFF WITH THE RAISING INTEREST RATES. YOU COULD PUT US IN A POSITION NEXT YEAR WHERE WE HAVE TO RAISE IT. THAT'S NOT A GOOD PLACE TO BE, SO OBVIOUS I CAME IN WITH OUR MANIACS TO DISCUSS MAYBE BLOWING AT A TICK OR WE CAN STILL LOOK AT THAT, BUT JUST WE HAVE TO TEMPER OUR EXPECTATIONS BECAUSE THE ECONOMY, I DON'T THINK OUR HOUSING MARKET IN JUPITER WOULD CRASH BUT I KNOW PEOPLE JUST PUT HEALTH HOMES IN THE MARKET, MILLIONISH, NO ACTIVITY. NOBODY SHOWING FOR OPEN HOUSES JUST BECAUSE THAT RATE WENT UP 0.75 PERCENT, IT'S A BIG. >> THE FEDS ARE BEING VERY HAWKISH, AS YOU TURN ON THE NEWS, YOU SEE IT. THIS PAST WEEK THEY RAISED THE INTEREST RATES, AND ARE GOING TO CONTINUE TO DO THAT. [00:30:01] >> THAT'S A LARGE JUMP IN THE INTEREST RATE WITHIN A COUPLE OF WEEKS. >> THEY DON'T HAVE A CHOICE. AGAIN, YOU TURN ON THE NEWS, YOU SEE IT. NO ONE WANTS TO SAY THE WORD RECESSION. BUT WHEN YOU START LOOKING AT THE INFLATIONARY COSTS, THE FED HAS TO DO SOMETHING TO CALM INFLATION. THAT'S THEIR ONE TOOL IN THEIR TOOLBOX TO DO THAT. ESPECIALLY IN THE HOUSING MARKET WE ALL KNOW WHAT'S GOING ON JUST BY TURNING ON THE NEWS. WE EXPECT THEM TO CONTINUE TO RAISE THOSE RATES TO TRY TO COOL OFF SPENDING. YES, ABSOLUTELY. BUT YES, I WILL ADDRESS THOSE BECAUSE THAT IS IMPORTANT. STILL STAYING WITH THE REVENUES, LOOKING AT THE GENERAL FUND, ONE OF THE THINGS WITH THE STATE, SINCE COVID USED TO BE THAT THE STATE WOULD RELEASE PRELIMINARY ESTIMATES OF THE STATE SHARED REVENUE NUMBERS BECAUSE THEY HAVE ESTIMATING CONFERENCES THROUGHOUT THE SUMMER AND EARLY SPRING. THEY'VE STOPPED DOING THAT. THEY WILL RELEASE THEIR ESTIMATES IN JULY. BUT EVEN WITH THAT, WE ALWAYS ESTIMATE, AND THEN WE COMPARE IT TO WHATEVER THEY COME OUT WITH. WE'RE USUALLY PRETTY CLOSE. BUT SINCE COVID, THEY'VE BEEN WITHDRAWING ON RELEASING THOSE EARLY ESTIMATES. BUT RIGHT NOW WE'RE PROJECTING JUST OVER $1.2 MILLION INCREASE OVER FY 22 IN THE STATE SHARED REVENUES. ALSO, INTEREST RATES ARE STILL STAYING SLUGGISH. THERE MAY BE SOME CHANGE IN THAT GOING FORWARD, BUT VERY MINIMAL. ONE OF THE THINGS I WANTED TO POINT OUT, WHICH IS IMPORTANT, WHICH IS TIED TO THE ECONOMY. WE'RE SEEING STILL A REDUCTION IN THE RECREATION REVENUE THAT'S DIRECTLY TIED TO NOT FROM A LACK OF INTEREST IN THE RECREATION PROGRAMS, SPECIFICALLY THE SUMMER PROGRAMS. WE ARE HAVING A VERY DIFFICULT TIME HIRING CAMP COUNSELORS. WITH THAT, WE'RE MANDATED TO ONLY HAVE SO MANY CAMP COUNSELORS PER CHILD. IT LIMITS THE AMOUNT OF PARTICIPATION FROM PREVIOUS YEARS. PREVIOUS YEARS WE NEVER HAD A PROBLEM HIRING CAMP COUNSELORS. IT'S NOT FROM A LACK OF TRYING. OUR HR DEPARTMENT, CHRISTIAN JORDAN, AND HER STAFF HAVE REALLY BEEN REACHING OUT TRYING TO GET PEOPLE INTERESTED IN BECOMING CAMP COUNSELORS, BUT IT'S BEEN VERY DIFFICULT. WITH THAT, WE EXPECT THAT TREND TO CONTINUE GOING INTO NEXT YEAR. THAT'S WHY YOU SEE A REDUCTION THERE. WE'D LOVE TO SEE THAT PROGRAM COME BACK NEXT YEAR BECAUSE WE KNOW HOW POPULAR IT IS. I'M SURE YOU ALL AS COUNCIL MEMBERS HAVE PROBABLY BEEN GETTING CALLS. I CAN JUST IMAGINE ON WHY CAN I GET MY KID IN THE CAMP COUNSELOR OR INTO THE CAMP PROGRAM. WELL, UNFORTUNATELY, THAT'S WHY. [NOISE] DID YOU HAVE A QUESTION, MR. MAYOR? >> NO. >> GETTING INTO THE EXPENDITURE PORTION OF THE BUDGET, WE ARE SEEING AN INCREASE IN THE BUDGET OF $10.7 MILLION. THAT'S WITH A ZERO PERCENT INCREASE IN HEALTH CARE PREMIUMS. THE QUESTION IS, WELL, WE'RE SEEING A ZERO PERCENT INCREASE IN THE HEALTH CARE PREMIUM SCORE, WHY ARE YOU SHOWING US A $638,000 INCREASE IN THE HEALTH CARE? WELL, THAT'S PRIMARILY BECAUSE OVER PREVIOUS YEARS, OUR VACANCIES. WE HAD AN EXPECTATION THAT WE WERE NOT GOING TO FILL ALL THOSE VACANCIES. PRIMARILY WHEN WE BUDGET FOR VACANCIES, WE BUDGET FOR FAMILY COVERAGE, FOR INSURANCE, NOT KNOWING WHAT THE NEW HIRE WILL CHOOSE. WE ASSUME THE WORST AS FAR AS COST. BUT PREVIOUSLY IN THE LAST COUPLE OF YEARS, WE HAVE NOT BUDGETED THOSE COSTS WHILE WE'RE ACTIVELY HIRING. WE WENT AHEAD AND BUDGETED THOSE COSTS GOING FORWARD INTO NEXT YEAR FOR ANY KIND OF VACANCIES. FUEL INCREASES. WE ARE SHOWING A $470,000 INCREASE OVER YEAR-END ESTIMATES. THAT'S NOT EVEN AS MUCH AS WHAT WE BUDGETED IN FY22. WE'VE ACTUALLY HAD TO AMEND THE BUDGET HERE RECENTLY DUE TO THE INCREASE IN COST AND FUEL ITSELF. IF YOU REMEMBER, ABOUT A MONTH AGO THE COUNCIL APPROVED THE BULK FUEL CONTRACT GOING WHICH IS A PIGGYBACK ON THE STATE CONTRACT GOING INTO NEXT YEAR. BUT THIS IS A PRETTY EXPONENTIAL INCREASE, I BELIEVE THE, IF I REMEMBER RIGHT THE ESTIMATED COST WAS $4.50 A GALLON GOING FORWARD THAT'S THE BULK PRICE. IT COULD GO UP MORE THAN THAT. WE JUST SEE AGAIN, YOU TURN ON THE NEWS, YOU SEE IT. THE SOLID WASTE COLLECTION. YOU ALL HAD A DISCUSSION ON THAT ON TUESDAY. WHAT WAS IN THE BUDGET WAS AT THE $22 RESIDENTIAL RATE. THAT'S A $2.2 MILLION INCREASE OVER FY22. [00:35:04] NOW THAT NUMBER WILL GO DOWN A LITTLE BIT BECAUSE WHAT YOU'RE CONSIDERING RIGHT NOW IS A $21.95 PER RESIDENTIAL RATE. THAT WILL GO DOWN JUST A HAIR. IT WOULD ALSO INCREASE THE FRANCHISE AS WELL. FRANCHISE FEE IS GOING UP TO APPROXIMATELY. WHEN WE GET TO THE SLIDE, I'LL LOOK AT IT, I CAN'T REMEMBER EXACTLY. BUT WHAT'S ALSO INCLUDED IN HERE AS A FOUR PERCENT SALARY INCREASE, WHICH IS A TOTAL OF $704,000. THAT'S FOR THE NON-UNION MEMBERS OF THE TOWN. THERE WAS AN INCREASE IN LIABILITY INSURANCE BY ABOUT 10 PERCENT, $129,000. THERE ARE FOUR NEW POSITIONS AND ASSOCIATED EQUIPMENT ALMOST $700,000 IN COST, $875,000 IN CAPITAL NEEDS FOR FURNITURE AND FIXTURES AND INFORMATION TECHNOLOGY FOR THE NEW TOWN HALL. THAT'S CURRENTLY IF YOU LOOK OUT IN THE PARKING LOT, IT'S STARTING. THE WATER PLANT, HERE'S A MAJOR CONTRIBUTOR OF INFLATIONARY COSTS ALONG WITH SUPPLY CHAIN ISSUES. THE WATER CHEMICAL PLANT INCREASES JUST OVER $1.5 MILLION. YOU'LL SEE THAT GOING FORWARD IN THE PRESENTATION. YES, SIR MR. MAYOR. >> I'M GOING TO PARKING THIS BUT I DO WANT TO MAKE JUST A COMMENT IN PARKING LOTING IT ALTHOUGH OTHERS CAN SPEAK AFTER I DO. NOW, THE SALARY ADJUSTMENT. NUMBER 1, WHEN THIS PROCESS STARTS AND THIS TOWN MANAGER SAID, "I RECOGNIZE HOW THE HARD WORK HAS TO GET TO EVEN SEE THE NUMBERS SO WE KNOW WHAT WE MIGHT EVEN BE ABLE TO DO." WELL, WE NOW HAVE THAT AND I THINK THAT AT THIS POINT IN TIME, I'M INCLINED FOR SIX PERCENT ADJUSTMENT AND JUST EXPLAIN THE RATIONALE ON THAT AND IT NEEDS TO BE ITERATED. I'M NOT MAKING A FINAL DECISION HERE, I'M JUST SUGGESTING I'M UNCOMFORTABLE WITH FOUR PERCENT. NUMBER 1 IS, YOU HAVE TO REMEMBER I ALWAYS BENCHMARKED AT A PRIVATE SECTOR AND WHAT I'M EXPERIENCING, MOST OTHER PRIVATE SECTOR HAS DONE THINGS THAT ARE ON A CALENDAR YEAR. EFFECTIVELY, A GOVERNMENT WILL HAVE GONE A YEAR AT A HIGHER INFLATION RATE THAN WE HAD EXPECTED LAST YEAR. IN A CURRENT YEAR, OUR EMPLOYEES GOT FOUR PERCENT SO I DON'T HAVE ANY REALISTIC HOPE OF THE WAY, BE CAREFUL I SAY THIS, BUT I DON'T HAVE ANY FAITH IN THE FEDERAL GOVERNMENT SO [LAUGHTER] I THINK THAT REALISTICALLY WE NEED TO TAKE CARE OF OUR EMPLOYEES BECAUSE WE'RE TALKING ABOUT SOMETHING THAT THEY'RE NOT GOING TO GET UNTIL JANUARY. JUST LOOKING AT THE NUMBER, I JUST WANT TO THROW IT OUT THERE. I KNOW IT'S EARLY ON. BUT WE GOT A FOUR PERCENT NUMBER THERE OR HOW MUCH IT'S WORTH, SO NOW YOU KNOW WHAT IS SIX PERCENT WOULD BE WORTH. I JUST THROW THAT OUT THERE THAT WE NEED TO SERIOUSLY TALK ABOUT THIS YEAR, AND I AM TABLING AND I'M EMPHASIZING THE FACT BECAUSE I'M LOOKING AT IT AS NOT EVEN A FORECAST OF WHAT NEXT YEAR IS GOING TO BE. BUT SOMEWHAT ALSO THINKING LIKE I'M MAKING UP FOR WHAT WE'VE EXPERIENCED AND I REALIZED IT WAS ALSO THE LUMP-SUM THAT WAS EVEN TAKING THAT INTO ACCOUNT, SO I JUST THROW THAT OUT THERE FOR CONSIDERATION. NOT TO DECIDE ANYTHING TONIGHT BUT WHAT HAPPENS IS WE MAY WIND UP GIVING THE STAFF DIRECTION TO COME BACK, SEE HOW THAT CHANGES NUMBERS AND ALL THAT, BUT THIS IS THE THING THAT WE OUGHT TO BE POINTING OUT IF ANYBODY'S GOT THAT FEEL. >> SCOTT, I WONDER IF NOW'S A GOOD TIME TO ASK, BUT I HAD ASKED YOU ABOUT PERCENTAGES AS WELL. A LOT OF PEOPLE ARE TRANSLATING THE BONUS INTO PERCENTAGES AND YOU MAY HAVE PRICED OUT WHAT FIVE PERCENT [NOISE] WOULD LOOK LIKE OR WHAT SIX PERCENT WOULD LOOK LIKE. >> I DID. >> THAT WOULD BE GOOD HAVE THAT. DO YOU HAVE THAT IDEA? >> I DO. FOR EXAMPLE, IF YOU WANTED TO GO TO SAY INSTEAD OF FOUR PERCENT, YOU WANTED TO GO TO SIX PERCENT. SIX PERCENT WOULD BE JUST OVER A MILLION DOLLARS INSTEAD OF THE 704, JUST FOR THE SAKE OF THIS. >> FIFTY PERCENT HIGHER. >> THAT'S A $351,000 INCREASE ACROSS ALL THE FUNDS. JUST SO YOU KNOW THAT. >> NON-UNION SALARY. >> I'M SORRY. >> IT'S THE NON-UNION SALARY WE'RE TALKING ABOUT. >> THAT IS CORRECT. JUST KNOW THAT. WOULD YOU WANT ME TO TALK ABOUT THE SUBSIDY AT ALL? >> SORRY, THE FIVE PERCENT AND YES, THE SUBSIDY. >> THE SUBSIDY ITSELF IS $414,000. I DO HAVE A SLIDE JUST ON THE SUBSIDY ITSELF. [NOISE] BUT I CAME PREPARED IF YOU'D LIKE, WE CAN TALK ABOUT HOW WE ARRIVED AT THE SUBSIDY AND THE PERCENTAGE BECAUSE I DO [00:40:04] UNDERSTAND PEOPLE TRY TO EQUATE THAT TO A PERCENTAGE OF PAY BECAUSE THAT'S WHAT THEY'RE USED TO SEEING. JUST FOR RULE OF THUMB, BASED ON THE METHOD THAT WE USED, ANYBODY THAT IS $70,000 AND BELOW, THAT WOULD EQUATE TO MORE THAN TWO PERCENT OF THEIR BASE SALARY, ANYBODY WITH $17,000 AND ABOVE IT INCREMENTALLY GOES DOWN THE MORE YOUR SALARY INCREASES. [NOISE] THE POINT BEING, WHEN WE DID THIS, WHAT WE DID WAS WE TOOK ALL THE SALARIES IN THE WHOLE TOWN AND WE MULTIPLIED IT BY TWO PERCENT. WE TOOK THOSE VALUES AND WE DIVIDED IT BY THE NUMBER OF PEOPLE TO COME UP WITH A VALUE WHICH WAS AT THE TIME $1,350, I BELIEVE IT WAS AND WE ROUNDED IT UP THE $1,400 AND DECIDED TO DO IT THAT WAY. THAT WAY, THE PERSON THAT'S WORKING [NOISE] IN A WORKER POSITION WORKING OUT AT THE REC DEPARTMENT, THOSE MONEYS WOULD PROBABLY GO A LONG WAY FOR THEM COMPARED TO SAY A DIRECTOR OR SOMETHING ALONG THOSE LINES, NOT STATING THAT THE DIRECTOR ISN'T ALSO FEELING THE RECESSION, BUT IT WOULD JUST GO A LONGER WAY FOR SOMEBODY WORKING AT THE REC DEPARTMENT. THAT WAS JUST THE THOUGHT PROCESS, BUT WE DID USE INITIALLY A PERCENTAGE, BUT THEN WE CONVERTED INTO A DOLLAR ACROSS THE BOARD OF BONUS OR SUBSIDY. >> THAT'S A ONETIME? >> YES, OF COURSE. >> THAT'S A ONETIME, TO BE GIVEN OCTOBER 1. THAT WAS THE OTHER ASSUMPTION THAT WE MADE. >> THAT APPROACH PROVIDED THOSE THAT MAKE LESS MONEY A GREATER PERCENTAGE BECAUSE THEY'RE MORE GENERALLY THAN NOT SO, UNDERSTAND. >> EXACTLY. BECAUSE THEY'RE THE ONES DRIVING TO WORK EVERY DAY. THE GAS PRICES ARE HITTING THEM HARDER THAN SAY THE DIRECTOR. I'M NOT TRYING TO DOWNPLAY THAT THE DIRECTOR OR PEOPLE IN MANAGEMENT AREN'T ALSO PAYING, BUT THE PEOPLE THAT ARE COMING IN DAY-TO-DAY WORKING OUT IN THE HEAT THIS MONEY WILL GO A LOT FURTHER AS FAR AS A LARGER PERCENTAGE FOR THEM. >> SINCE THEY PROPOSED THAT AND WE HEARD THAT IN THE ONE-ON-ONES, I HAD THAT IN MY MIND ALREADY ALONG WITH THE FOUR PERCENT WHEN I SAID I WANTED TO SUGGEST SIX IN ADDITION TO THAT, PERSONALLY. >> I'M FINE WITH THAT. I'M THINKING ABOUT THAT SIX PERCENT. >> THE WAY I PURCHASE IS I NEED TO SEE THE WHOLE PICTURE BECAUSE EVERYTHING IS TRADE-OFFS. AS A CONCEPT, IT'S FINE, BUT FOR ME I REALLY HAVE TO LOOK AT A [OVERLAPPING] >> WE'RE NOT FINALIZING ANYTHING BECAUSE IT ALL HAS TO BE ITERATED, I GET IT. EVEN MYSELF I'M SUGGESTING IT. I'M JUST EMPHASIZING IT'S A PRIORITY IN MY MIND TO TRY TO ADDRESS THAT. >> I WAS LOOKING HAS THIS FOUR, SOMETIMES KEEPS UP WITH INFLATION. >> YOU'RE STILL LOSING INTO FOUR PERCENT, SO SIX. >> YEAH, REAL WAGES ARE DOWN. UNLESS YOU GET A NINE PERCENT, THAT'S REALLY DIFFICULT IN THIS ENVIRONMENT. >> YOU'RE GETTING PAID IN CHEAPER DOLLARS AND ALL THAT WHOLE DEAL. >> BY THE TIME THAT THIS GOES INTO EFFECT, SALARY ADJUSTMENTS, WHICH ARE JANUARY 1, PRIVATE SECTOR MARKET WOULD IT BE IN YEAR 2. NOT THAT I CAN CERTAINLY STATE FOR A FACT, THE PRIVATE SECTOR MARKET GAVE NOTHING FOR THE INFLATION EXPECTATION IN JANUARY 1 BUT STILL, THE POINT IS, WE NOW KNOW WE'VE EXPERIENCED THE YEAR, WHATEVER. ANYWAY, IT'S TABLED. NO DECISION TONIGHT. WE LET EACH OTHER UNDERSTAND BECAUSE IN THE END WHEN WE COME TO THE OFFICIAL MEETINGS, WE HAVE TO CONVERGE ON SOMETHING. >> WE WILL TALK ABOUT IT LATER BUT THAT'S PROGRESSIVE. THE BASE SALARY GROWS EACH YEAR WITH THAT VERSUS THE ONETIME SO IT'LL BE INTERESTING TO FINISH THE SLIDES AND TO CONTINUE TO TALK ABOUT THE IMPACTS. >> IF I COULD JUST ADD ONTO THAT MAYOR BEFORE WE MOVE AHEAD SO AS WE GET INTO THE NEXT SLIDES UNDERSTAND SOME OF THE STRATEGY THAT WE'RE PUTTING FORWARD. CERTAINLY SIX PERCENT WOULD BE GREAT IN THE CHALLENGE. WE WERE TAKEN A MULTI-YEAR APPROACH ON THIS AND NOT KNOWING WHAT'S COMING OUT THE BACK-END, NEXT YEAR IS TRYING TO DO AS MUCH AS WE CAN FOR OUR EMPLOYEES THIS YEAR. THINKING AHEAD SO THAT IF FOR SOME REASON WE START TAKING THE DOWNWARD TREND THAT WE TOOK YEARS AGO, THE LAST TIME WE WERE IN THIS AND HAVING SAT IN A DIRECTOR SEAT AND [NOISE] WATCHED BUDGET CUTS AND HAVING TO TELL PEOPLE THAT WE WERE CUTTING POSITIONS AND A NUMBER OF OTHER THINGS. IT WAS NOT A PLEASANT ENVIRONMENT, SO WHEN WE LOOKED AT IT THIS YEAR, WE FOCUSED ON A PERCENTAGE THAT EVERYONE GETS IN THE TOWN AND ALSO FOCUSED ON THE ZERO HEALTHCARE COSTS NOT RAISING THE HEALTH CARE PREMIUMS. [00:45:02] GETTING THE ONETIME STIPEND IN RIGHT AROUND THE HOLIDAYS, AND ONE OF THE THINGS WE'RE EVALUATING AND MOVING FORWARD ON INTERNALLY IS ACTUALLY LOOKING AT THE WORKWEEKS SO THAT MAYBE WE CAN HELP PEOPLE SAVE A LITTLE BIT ON FUEL COSTS COMING BACK AND FORTH. I JUST WANTED YOU TO THINK ABOUT AND UNDERSTAND THE WHOLE STRATEGY [NOISE] AND THEN AFTER WE GET THROUGH THIS FISCAL YEAR WITH THE AMOUNT OF LIFTS THAT WE HAVE THIS YEAR IS REALLY COMING BACK AND FOCUSING AGAIN ON OUR EMPLOYEES NEXT YEAR BECAUSE WE'LL HAVE A BETTER UNDERSTANDING OF WHERE WE ARE ECONOMICALLY. I JUST WANTED TO THROW THAT OUT THERE TO YOU THAT IT WAS A LOT OF BACK-AND-FORTH AND THAT'S WHERE WE WOUND UP. >> ANY ADDITIONAL QUESTIONS ON THAT SLIDE? JUMPING INTO THE HEALTH INSURANCE. AGAIN, ASSUMING AS THE TOWN MANAGER INDICATED, A ZERO PERCENT INCREASE IN THE HEALTH INSURANCE PREMIUMS THAT WAS TO HELP OUT EMPLOYEES WITH THE COST OF THE HEALTH INSURANCE. IT ALSO HELPS OUT ON THE TOWN SIDE AS WELL BECAUSE WE DON'T PAY THAT INCREASE EITHER, THE TOWN DOES NOT, BECAUSE IT'S AN 80-20 SPLIT BETWEEN THE PREMIUMS BETWEEN THE TOWN AND THE EMPLOYEES. WITH THAT, THERE'S SOME OPT-OUT EMPLOYEES, WE HAVE 55 OF THEM CURRENTLY IN THE TOWN. THAT'S $150 A MONTH OR $1800 ANNUALLY THAT THE OPT-OUT EMPLOYEE WILL RECEIVE. THAT'S A TOTAL OF $99,000. YES, SIR. >> I'M SORRY, JUST BACK ON THE PREVIOUS ONE, JUST IN A POINT OF CONTEXT, LAST YEAR BECAUSE WE SAY ONE TIME. LAST YEAR, INSTEAD OF DOING A 10 PERCENT INCREASE IN HEALTH INSURANCE, WE DID 5 PERCENT, SO THAT MEANS OVER TWO YEARS WE WOULD HAVE DONE 5 PERCENT [NOISE] JUST TO PUT IN PERSPECTIVE. WELL, IT SAYS ONE TIME EFFECTIVELY, IT REALLY IS DONE. YOU GOT TO BE CAREFUL WHEN YOU SAY ONE TIME BECAUSE THEN THAT IMPLIES NEXT YEAR THEN IT'S GOING GO BACK AGAIN, IT'S NOT. EACH YEAR IN HEALTH WHAT WE'VE DONE IS WE'VE DECIDED FOR EACH YEAR WHAT TO DO. IT'S A LITTLE BIT DIFFERENT. >> THE HEALTH INSURANCE FUND IS A YEAR-BY-YEAR FUND. >> YEAH. >> MEANING THAT DEPENDING ON WHAT HAPPENS WITH THE CLAIMS COST, WE HAVE TO REPORT THIS OUT TO THE STATE. THE STATE REQUIRES THAT WE HAVE SO MUCH MONEY IN RESERVES [NOISE] TO BE ABLE TO TAKE CARE OF ANY EXPECTED CLAIMS THAT COME IN. I WILL TELL YOU, MR. MAYOR, I KNOW YOU REMEMBER THESE DAYS WHEN MR. VELA AND I HAD TO COME TO THE COUNCIL AND ASK, I BELIEVE IT WAS JUST SHY OF A MILLION DOLLARS A COUPLE OF YEARS WHEN THE FUND WAS JUST STARTING OUT. WE DEFINITELY DON'T WANT TO BE BACK IN THAT SITUATION AGAIN AND I DON'T THINK WE ARE. THE FUND IS VERY HEALTHY AND WE'LL TALK ABOUT THAT. THERE IS AN INCREASE BEING SHOWN OF $638,000 IN THE HEALTH INSURANCE FUND, AGAIN, HOW WE'RE BUDGETING FOR THE EMPLOYEES, THE VACANCIES, AND OTHER PEOPLE GOING FORWARD. THAT NUMBER COULD DEVIATE DEPENDING ON WHAT COVERAGE THAT THE EMPLOYEE PICKS. BUT ONE THING I WANT TO POINT OUT IS, ONE OF THE LONG-TERM GOALS OF THE FUND IS, ANNUALLY WE PAY $700,000 FOR A STOP-LOSS COVERAGE BECAUSE WE'RE NOT FULLY INSURED, WE'RE PARTIALLY INSURED. THIS IS FOR UNEXPECTED LARGE CLAIMS, TO BE ABLE TO COVER THAT COST. LOOKING AT SOME OF THE ASSUMPTIONS OF RISK RELATING TO THAT $700,000 EXPENSE, BECAUSE ONCE YOU REMOVE THAT, THEN THE FUND IS FULLY EXPOSED TO WHATEVER CLAIMS MAY COME THROUGH FOR CATASTROPHIC EVENTS. BUT JUST LOOKING OVER THE LAST THREE YEARS, WE'VE AVERAGED ABOUT $572,000 IN LARGE CLAIMS EVENTS. AGAIN, WE'RE PAYING $700,000 A YEAR. WE ACTUALLY COULD HAVE PUT BACK A $127,000 BACK INTO THE FUND. BUT FROM OUR PERSPECTIVE, RIGHT NOW THE CLAIMS ARE ESTIMATED TO BE JUST OVER $5 MILLION. WE WILL BE GETTING A THIRD-PARTY ADMINISTRATOR COMING IN OUR CALENDAR YEAR '23. I WILL SAY THAT RIGHT NOW, BLUE CROSS HAS DONE A VERY GOOD JOB IN NEGOTIATING THE RATES WITH THE PROVIDERS. THE CLAIMS COSTS HAVE REMAINED RELATIVELY LOW OVER THE LAST THREE-PLUS YEARS OVER THE LIFE OF THAT CONTRACT WITH FLORIDA BLUE, SO WE'VE BEEN ABLE TO BUILD UP OUR FUND BALANCE, I'M HOPING THAT TREND CONTINUES. YOUNG AND HEALTHY WORKFORCE, THAT'S PART OF IT. BUT RIGHT NOW, WE'D LIKE TO SEE THAT BALANCE BE AROUND $10 MILLION, [00:50:04] WHICH IS APPROXIMATELY DOUBLE OF WHAT YOU'RE SEEING THERE IN THE CLAIMS EXPENSE BEFORE WE FEEL COMFORTABLE COMING OFF THE STOP-LOSS, BUT WE'LL RE-EXAMINE THAT YEAR AFTER YEAR. YES, MR. MAYOR. >> I THINK IT'S IMPORTANT FROM A POINT OF PERSPECTIVE, CERTAINLY FOR THE NEW MEMBERS, THAT OTHER THAN THE ONE WE ENACTED THIS, BUT IT USED TO BE THAT, WE WOULD GO OUT AND WE WOULD GET INSURANCE COVERAGE. THEN THE INSURANCE COVERAGE WAS HISTORY BASE, EXPERIENCE-BASED. >> CORRECT. >> THE INSURANCE COMPANY WAS NEVER LOSING. IN SOME YEARS THEY WERE MAKING OUT. THE COUNCIL MADE A POLICY DECISION, THAT YOUR STAFF TOLD US ABOUT THIS, TO DECIDE UPON THIS DIFFERENT APPROACH. THAT'S WHY THEN THE HEALTH INSURANCE FUND HAS BEEN GROWING. WHAT WAS EXPLAINED IS ALL IT TAKES IN A SMALL ORGANIZATION IS A FEW PEOPLE THAT HAVE SOME SIGNIFICANT HEALTH ISSUES, WHICH DID HAPPEN. BUT WITH THE OLD PROCESS, IT WAS EXPERIENCE-BASED, WE JUST WOULD PAY MORE THE INSURANCE COMPANY THEN IT WOULDN'T HAPPEN THE SECOND YEAR AND WE OVERPAID, SO THIS HAS PAID OFF SO FAR. THEN THEY'VE MITIGATED THE RISK WITH THIS STOP-GAP COVERED SHEET, STOP-LOSS COVERED SHEET, STOP THE BALANCE, SO IF YOU LOOK AT SO FAR IT'S PAID OFF. [NOISE] BUT IT'S ALWAYS IMPORTANT FOR US TO REMEMBER THAT BECAUSE IF ONE UNIT WENT DOWN, WE'RE ALREADY AHEAD OF THE GAME. >> EXACTLY. >> WHEN HE SAYS A TARGET, WE'RE AHEAD OF THE GAME NOW BECAUSE WHEN WE MADE THIS DECISION, WE'VE BEEN GETTING THIS SHARE THAT THE INSURANCE COMPANY USED TO GET, SO I'M NOT NAIVE ENOUGH TO THINK WE'RE NOT GOING TO GET ANOTHER NEGATIVE YEAR OR IT'S A DECISION TO MAKE WHEN WE DECIDE IF WE WERE TO, AND I'M OPEN FOR IT, WHEN WE GET ENOUGH TO CONSIDER NOT DOING THE $700,000 COVERAGE BECAUSE THAT STILL WAS INSURANCE FOR THE LARGER CASES. I JUST WANTED TO MAKE SURE THAT WE UNDERSTAND THAT. THAT'S WHY WE WERE SOMEWHAT ABLE TO SAY WE CAN ABSORB NO HEALTH INSURANCE INCREASE BECAUSE WE'VE BEEN GOOD STEWARDS USING THIS PROCESS. YOU'RE THE ONE THAT SHOULD HAVE EXPLAINED THIS, I JUST WANTED TO TELL YOU WHAT [LAUGHTER] I WANTED YOU WOULD EXPLAIN. >> NO, I WILL SAY GOOD JOB [LAUGHTER] TO YOUR POINT, MR. MAYOR. [NOISE] >> YOU'RE TOTALLY COMFORTABLE WITH THE 10 MILLION? [NOISE] >> I'M SORRY. >> YOU'RE TOTALLY COMFORTABLE WITH THE 10 MILLION FIGURE, TO ELIMINATE THE STOP GAP? >> BASED ON THE HISTORICAL REVIEW THAT I'VE DONE, WHICH IS JUST OVER A VERY SHORT PERIOD OF TIME, I AM. >> OKAY. >> BASED ON STATE REQUIREMENTS, BUT LIKE THE MAYOR INDICATED, NEXT YEAR COULD BE A DIFFERENT STORY. IT'S A YEAR-BY-YEAR PROCESS TO LOOK AT AND BECAUSE WE ARE IN CONTROL OF THE RATES LIKE THE MAYOR INDICATED, PREVIOUS TO THAT, IT WAS LIKE YOU WERE GOING ON TO PURCHASE YOUR HEALTH INSURANCE EVERY YEAR PERSONALLY AND WHATEVER THEY GIVE YOU, THEY LOOK AT YOUR PAST HISTORY. >> IF IT'S BASED ON EXPERIENCE, [OVERLAPPING] YOUR RATE NEVER GOES DOWN. >> RIGHT, EXACTLY. >> THE ORGANIZATION IS USUALLY GROWING AND THEIR COSTS ARE ALWAYS GOING UP. [OVERLAPPING] >> THAT IS CORRECT. >> WHAT YEAR DID YOU GUYS START THIS? >> IT WAS IN 2015, I BELIEVE IT WAS. >> OKAY. >> 2014, 2015. >> IT WAS FAIRLY NEW WHEN I CAME ON BOARD HERE. >> WE'D ONLY HAD IT A FEW YEARS. >> I REMEMBER THERE WAS THAT ONE YEAR THERE WAS A GLITCH, THERE WAS A COUPLE OF PEOPLE, HAD SOME MAJOR [OVERLAPPING] HEART TRANSPLANT OR SOMETHING. >> THAT'S CORRECT. THAT'S WHY I'M SAYING IT'S A YEAR-BY-YEAR CYCLE THAT WE LOOK AT. WE'VE BEEN VERY FORTUNATE, IN FACT, I WAS ON THE PHONE TODAY WITH OUR THIRD-PARTY ADMINISTRATOR TALKING ABOUT IT. HE WAS CONGRATULATING US ON HOW WELL THE FUND WAS DOING, BUT AT THE SAME TIME, THEY'VE DONE A GOOD JOB IN NEGOTIATING THOSE RATES WITH THE PROVIDERS WHEN YOU GO TO THE DOCTOR. THAT'S REALLY HELPED OUT, BUT WE'RE YOUNGER AND HEALTHIER. BUT ONE THING TO REMEMBER, IS THAT THE HEALTH OF THE FUND ALSO, YOU WANT TO SPREAD THAT COST OUT AMONGST AS MANY PEOPLE AS POSSIBLE, SO YOU CAN SEE HERE THERE'S 55 PEOPLE. NICKI, CORRECT ME IF I'M WRONG WHEN I SAY IT, I THINK IT'S 315 PEOPLE THAT ARE CURRENTLY ON THE PLAN IN THE TOWN. >> [INAUDIBLE]. >> WE HAVE 55 PEOPLE THAT ARE CURRENTLY OPTING OUT, SO WE WANT TO UNDERSTAND THAT, WHY DO WE HAVE SO MANY PEOPLE OPTING OUT? [NOISE] MOST LIKELY IT'S BECAUSE THEIR SPOUSE OR SOMEONE ELSE HAS THE COVERAGE OR MAYBE THEIR PARENTS. WE WANT TO UNDERSTAND THAT, SO WE'VE ASKED OUR NEW BROKER TO HELP US ANALYZE THE RATES, BECAUSE ULTIMATELY WE WANT TO GIVE A COMPETITIVE RATE FOR THE EMPLOYEE AND ALSO THE TOWN. BUT AT THE SAME TIME, WE KNOW WE HAVE TO HAVE THAT COVERAGE FOR THOSE CATASTROPHIC LOSSES AND CONTINUE THE HEALTH OF THE FUND. >> BY THE WAY, VICE MAYOR, INTERESTINGLY, YOU ASKED ABOUT THE 10 MILLION BECAUSE THE FIRST THING TO COME TO MY MIND, POTENTIAL SAVINGS, IN MY ONE-ON-ONE, [00:55:05] I'M STARTING TO THINK ABOUT I'M NOT THERE NOW. BUT THERE'S NOTHING MAGIC ABOUT THE $10 MILLION NUMBER [OVERLAPPING] TO SOME DEGREE. TO THE DEGREE THAT THERE WAS A PROPOSAL HERE THAT AT SOME POINT IN TIME, THAT THERE'LL BE A RECOMMENDATION THAT IT WOULD BE COST-EFFECTIVE NOT TO HAVE THAT. I STARTED THINKING ABOUT IT. [NOISE] RIGHT NOW, I'M OKAY WITH IT BUT WE ALL SHOULD ALWAYS BE THINKING ABOUT THAT. [OVERLAPPING] >> FEW YEARS, WE'VE DISCUSSED THIS OVER HERE AND [OVERLAPPING] WE'RE GETTING THERE. >> YEAH, BUT WE'RE COMING CLOSE TO HITTING THAT. [OVERLAPPING] >> WHEN THE TIME WILL COME, WE WILL DEFINITELY BE DISCUSSING THAT AT THE COUNCIL LEVEL, BEFORE ANY ACTION LIKE THAT IS TAKEN. >> OKAY. >> MOVING ON, NEW POSITION REQUESTS. WE HAVE A FEW THIS YEAR. JUST OVER $600,000, ALMOST $700,000. OR AS A NEW ASSISTANT MANAGER POSITION THAT'S IN THE BUDGET IN THE GENERAL FUND. IN THE POLICE DEPARTMENT, WE HAVE A NON-SWORN POSITION THAT'S BEING REQUESTED TO ASSIST THE POLICE DEPARTMENT AND IT'S RECRUITING EFFORTS. ALSO OVER IN THE UTILITIES, WE'RE ADDING AN ENGINEERING POSITION, THAT'S A SUCCESSION PLAN. ONE OF THE THINGS MR. [INAUDIBLE] HAS EMPHASIZED WHEN HE CAME ON BOARD IS WE NEED TO START PLANNING FOR THE FUTURE. WE DO HAVE AN AGING WORKFORCE AND TO START LOOKING AT SUCCESSION PLANNING WITHIN EACH OF THE DEPARTMENTS. WE HAVE DEFINITELY DONE THAT. WE'VE LOOKED AT STARTING OUT HERE WITH THE ADDITIONAL ENGINEERING POSITION OVER IN THE WATER, ALONG WITH THE ENGINEERING TECH POSITION. I'M SORRY. THE ENGINEER IS GOING TO BE SPLIT BETWEEN WATER AND STORMWATER, AND THEN THE ENGINEERING TECH IS GOING TO BE IN STORMWATER. WE'VE STARTED LOOKING AT, AGAIN, THOSE SUCCESSION PLANS AND HOW THAT WILL WORK GOING FORWARD. YOU SEE THAT ALREADY STARTING HERE IN THE REQUEST FOR NEW POSITIONS. >> ON BOTH OF THOSE LAST TWO ITEMS, JUST FOR CLARITY, I KNOW YOU'VE MADE WORD CHANGES PER OUR DISCUSSIONS, BUT I JUST WANT TO MAKE SURE THAT MY UNDERSTANDING IS CORRECT AND MY COLLEAGUES UNDERSTAND IT THE SAME WAY. ON THE FIRST BULLET WHERE YOU TALKED ABOUT THE SUCCESSION PLAN IN THE PRIVATE SECTOR. I THINK OF THAT AS A TIME-BOUND ONE-YEAR POSITION. BECAUSE WHAT WE'RE DOING IS WE'RE HIRING A PERSON EARLY TO PREPARE THEM FOR WHEN A PERSON RETIRES. I ASKED THAT IT WAS WORDED DIFFERENTLY IN OUR ONE-ON-ONES. THAT IS MY UNDERSTANDING THAT I STILL HAVE MY NOTE THAT THAT WILL ARISE. WORDING YOU PUT MEANS IT'S TIME-BOUND. THAT MEANS TWO PEOPLE WOULD BE LEAVING WHEN THEY RETIRE NEXT YEAR, ONE WE'VE ALREADY FILLED AND WE GET ONE MORE. IS THAT CORRECT? IT'S NEUTRAL, IT'S REALLY NOT AN INCREASE, IT'S A ONE-YEAR COST. >> DAVID, DID YOU WANT TO TALK ABOUT THAT? >> YES, YOU ARE CORRECT. I'M SORRY. GOOD EVENING. DAVID BROWN, DIRECTOR OF UTILITIES. YOU ARE CORRECT. WHAT IS OCCURRING AS TO UTILITY FIELD MANAGERS WILL BE RETIRING IN 2024. WE'LL BE HIRING AN ENGINEER IN ADVANCE TO ABSORB THAT INSTITUTIONAL KNOWLEDGE. THE TWO UTILITY FIELD MANAGERS IN TIME WILL BE REPLACED WITH A SINGLE ENGINEER AND THEN ANOTHER UTILITY WORKER, SO IT WILL BE NEUTRAL AT A MATTER OF TWO YEARS. >> I JUST WANTED TO MAKE SURE WE MEMORIALIZE THAT IN THE DOCUMENT. IT DOESN'T GET FORGOTTEN BECAUSE I WORKED FOR A COMPANY. YOU SAY THAT'S GOING TO HAPPEN, IT'S GOING TO HAPPEN, RIGHT? THEN IT'S NOT REALLY AN ONGOING INCREASE, I JUST WANTED TO POINT THAT OUT. LIKEWISE, AND I'M NOT BEING PICKY HERE, I CAN'T HELP MYSELF. BUT I'M ON THE LAST ONE, BECAUSE AGAIN, WE DIALOGUE THIS IN THE ONE-ON-ONE SET. IF YOU THOUGHT THE LAST PART OF THE LINE IT SAYS, IN LIEU OF LESS EFFECTIVE AND LESS COST-EFFICIENT CONTRACTUAL SERVICES. WELL, THEN THERE IS NO BUDGET IMPACT, SO I JUST LEAVE IT THERE. THAT'S MY EXPECTATION HERE. BECAUSE IN LIEU OF OUTSOURCE SERVICES, WE'RE DOING IT THERE. I LOOK AT BOTH OF THOSE, BECAUSE REALLY NOT ONE IS, YEAH, IT MAKES SENSE. THIS TRANSITION, SOMEBODY WHO IS AN ADDED COST MAKES SENSE FOR ONE YEAR. THEN THE OTHER ONE, IT SHOULD BE COMING OUT OF ANOTHER AREA, SO IT REALLY ISN'T AN INCREASE. AGAIN, THIS IS A WORKSHOP, BUT I WANT TO MAKE SURE THAT'S ALL. IF THAT'S NOT THE CASE, IT GETS ALL SORTED OUT BEFORE IT'S TO PUBLIC MEETINGS. >> SURE. >> BECAUSE THEN I'M GOING TO WANT TO MEMORIALIZE SO THAT THEN THE FOLLOWING YEAR, WE UNDERSTAND THAT THERE WAS A TRADE THERE. THAT'S GOOD MANAGEMENT, PROPOSING THOSE THINGS WHERE IT PUT SOMETHING IN-HOUSE THAT'S BEING OUTSOURCED, FINE. [01:00:05] BUT THEN, IT'S REALLY NOT A NEW POSITION, NEW BUDGET IMPACT. >> THANK YOU, MR. MAYOR. BACK TO TALKING ABOUT SALARIES. TALKING ABOUT THE FOUR PERCENT SALARY INCREASES THAT'S BEING PROPOSED IN THE CURRENT BUDGET. THE FOUR PERCENT, WHICH IS TWO PERCENT MERIT, TWO PERCENT MARKET ADJUSTMENT, THOSE ARE BEING PROPOSED TO BE IMPLEMENTED AS OF JANUARY 1ST. THE PD UNION SALARY INCREASES THAT YOU SEE HERE OF $124,000. PRIMARILY, WHAT WE'VE DONE THERE, AS YOU KNOW, WE ARE CURRENTLY IN CONTRACT NEGOTIATIONS WITH THE PD UNION. THAT NUMBER IS MOST LIKELY GOING TO CHANGE. BUT WHY IT LOOKS SO LOW IS BECAUSE WE HAVE 51 HIGHER-PAYING OFFICERS THAT ARE ACTUALLY TOPPED OUT IN THE CURRENT STEP PLAN THAT THEY HAVE. ONCE WE GET A NEW CONTRACT NEGOTIATED, THAT NUMBER WILL CHANGE. WE DO HAVE A TARGET OF TRYING TO GET THAT CONTRACT WRAPPED UP. WE ARE TRYING TO MOVE FORWARD AS QUICKLY AS POSSIBLE. BUT THAT'S WHAT THAT $124,000, WHY IT SEEMS SO LOW IS BECAUSE YOU HAVE THOSE 51 OFFICERS THAT ARE KEPT OUT. AGAIN, ABOUT THE INFLATIONARY SUBSIDY, WE TALKED ABOUT IT A LITTLE WHILE AGO. I WANTED TO TALK ABOUT HOW WE ARRIVED. NOW, THIS SLIDE IS A LITTLE DATED, MEANING THAT IT'S A COUPLE OF MONTHS OLD WHEN WE DID THE CALCULATION OR A MONTH-AND-A-HALF, ACTUALLY. BUT LOOKING FROM MAY TO MAY, LOOKING AT THE CIP, IT'S JUST OVER SIX PERCENT IN TOTAL. AGAIN, WE'VE USED THAT TWO PERCENT NUMBER WITH SALARIES ACROSS THE TOWN. I EXPLAIN THE METHOD IN WHICH WE CAME UP WITH A $414,901 FOR THE INFLATIONARY SUBSIDY. AGAIN, TRYING TO HELP OUT THE EMPLOYEES UNDERSTANDING THAT INFLATION IS HURTING THEM WHEN THEY GO TO THE GROCERY STORE OR GASOLINE, JUST TRYING TO GET TO WORK, SO COMING UP WITH SOME METHOD TO BE ABLE TO HELP THE EMPLOYEES SOONER THAN LATER. THIS WAS INTENDED TO BE IMPLEMENTED ON OCTOBER 1ST. YES, SIR, MR. MAYOR. >> JUST FOR UNDERSTANDING BY ALL OF US. THE TWO PERCENT MARKET ADJUSTMENT, TWO PERCENT MERIT IS SOMEBODY MOVING ALONG THE LINE AND GETTING EXPERIENCE. AT SOME POINT IN TIME, THE CAP, THEN YOU ONLY GET THE TWO PERCENT MARKET ADJUSTMENT, CORRECT? >> CURRENTLY, THE WAY THAT THIS IS BUDGETED, MR. MAYOR, IS THERE WILL BE NO CAP. SOME PEOPLE GET TOPPED OUT. BUT THE WAY THAT WE'VE BUDGETED THIS IS THAT WILL NOT OCCUR. DID YOU WANT TO COMMENT ON THAT? >> CERTAINLY. YOUR POINT IS EXACTLY CORRECT, MR. MAYOR. PAST PRACTICE HAS BEEN FOR OUR MOST SENIOR EMPLOYEES WHO REACHED THE TOP OF THEIR PAY GRADE. THEY WOULD GET A TWO PERCENT MERIT INCREASE, BUT NOT THE TWO PERCENT MARKET ADJUSTMENT BECAUSE THEY'RE AT THE TOP OF THEIR PAY GRADE. IN ESSENCE, WHAT HAPPENS IS IF YOU'RE A SENIOR EMPLOYEE, YOU GETTING PENALIZED BECAUSE YOU'RE AT THE TOP OF THE PAY GRADE. I KNOW WE'VE HAD SOME DISCUSSION ABOUT THAT. WHAT WE'RE PROPOSING IN THIS BUDGET IS THAT ALL EMPLOYEES GET FOUR PERCENT. IF YOU'RE AT THE TOP OF THE PAY GRADE, AGAIN, YOUR TWO PERCENT MARKET ADJUSTMENT MAY BE IN A PARTICULAR CHECK BECAUSE WE CAN'T GIVE IT TO YOU SINCE YOU'VE REACHED THE TOP OF THE GRADE. BUT WE FELT IT WAS IMPORTANT FOR ALL EMPLOYEES TO HAVE THE SAME EARNING POTENTIAL. >> BUT I JUST WANT TO UNDERSTAND IF THEY WANT TO COMMENT ABOUT THAT. BUT IN THAT CASE, SOMEBODY THAT WAS TOPPED OUT, THEY WOULD GET THE TWO PERCENT MERIT, WOULD BE A LUMP-SUM OR NO, YOU MOVE THE CAP? >> IT'D BE THE OTHER WAY. >> THERE WAS REALLY A MATTER OF TWO PERCENT YOU'RE PROPOSING. WE'LL JUST MAKE THAT CLEAR. BUT UNDER MY SCENARIO OF THE SIX PERCENT, IT WAS A FOUR PLUS TWO. I JUST WANTED TO WHAT I HAD IN MY MIND BECAUSE I WANT TO MAKE IT CLEAR LIKE THE EXTRA TWO PERCENT IS, I CALL MARKET INFLATION IN A WAY. I WAS THINKING THAT WE'RE GOING TO BECAUSE I UNDERSTAND I'M AN OLDER GUY, BUT EARLIER IN YOUR CAREER, IT'S IMPORTANT THAT YOU CAN ADVANCE. I GET THAT. THAT'S WHY YOU ALWAYS EXPECT, AND I SHOULDN'T SAY AGE, BUT I CAN SAY I'M THE OLD GUY. BUT THAT'S UNDERSTANDABLE. YOU KNOW THAT YOU'RE GOING TO BE ADVANCING. FOUR PLUS TWO I KNOW WE'RE JUST PARKING LOT IN IT, BUT IT DIDN'T WANT SOMEBODY ELSE TO BE DECIDED. ONCE YOU THINK AT, 3, 3 AND NOW 4, 2 BECAUSE I WAS TRYING TO MAKE UP FOR INFLATION, [01:05:02] WHICH THEN EVERYBODY WOULD GET. >> BY THE WAY, JUST AS A POINT, THIS ISSUE ACTUALLY CAME UP THROUGH OUR EMPLOYEE ADVISORY GROUP. DURING THE EMPLOYEE ADVISORY GROUP MEETING, THEY WERE BRINGING UP THIS VERY ISSUE, ABOUT TWO PERCENT VERSUS FOUR PERCENT AND THAT KIND OF THING. >> WHAT IS THAT? >> KUDOS TO THOSE ON THE EMPLOYEE ADVISORY GROUP? >> YEAH, I UNDERSTAND. BUT AGAIN, THIS IS THE WORKSHOP. WE'RE JUST THROWING THINGS OUT, WE'RE GOING TO BE DOING A LITTLE OVERTHINKING ABOUT IT. THIS IS THE ONLY TIME THE REST OF MY COLLEAGUES GET TO HEAR WHAT I MIGHT'VE SAID TO YOU IN PRIVATE. I DIDN'T SAY IT IN A ONE-ON-ONE BECAUSE I WASN'T PREPARED TO. >> GOING ON TO THE NEXT SLIDE. WE'VE ACTUALLY ALREADY SPOKEN ABOUT A NUMBER OF THESE ITEMS, ABOUT THE INCREASE IN THE GENERAL FUND SPECIFICALLY, SHOWS A $2.3 MILLION INCREASE PRIMARILY DUE TO THE SOLID WASTE CONTRACT THAT YOU GUYS ARE CURRENTLY VOTING ON. THERE'S NO USE IN FUND BALANCE. SPEAKING OF FUND BALANCE, ALWAYS TRY TO SHOW THIS CHART SO THAT THE COUNCIL UNDERSTANDS WHERE WE'RE CURRENTLY SITTING IN RELATION TO THE FUND BALANCE AND ITS USES. YOU CAN SEE THE 930 NUMBER, IT'S JUST OVER 51 MILLION DOLLARS IN UNRESERVED FUND BALANCE. THEN THERE'S A NUMBER OF ITEMS THAT COMES OFF OF THERE, SUCH AS THE ECONOMIC DEVELOPMENT FUND. THERE'S 1.7 OF THAT THAT'S CURRENTLY COMMITTED. THERE'S THE CYPRESS DRIVE LANDSCAPING. A LOT OF THESE THINGS, THE COUNCIL HAS ALREADY SEEN AND APPROVED IN PREVIOUS MEETINGS, THE CYPRUS DRIVE LANDSCAPING, THE COMMUNITY CENTER CAMERAS AMENDMENT, THE FIRE STUDY THAT WAS APPROVED A COUPLE OF MEETINGS AGO, THE COMMUNICATIONS POLL THAT YOU ALL JUST APPROVED FOR $128,000 AT THE LAST MEETING, THE BRIDGE LOAN FOR THE NEW TOWN HALL OF $6 MILLION AND THEN THE GENERAL FUND CONTRIBUTION TOWARDS THE NEW TOWN HALL OF 4.4. WE ALSO TRY TO TARGET THREE MONTHS WORTH OF OPERATING TO HAVE AVAILABLE FOR CATASTROPHIC EVENTS OF JUST ALMOST $16 MILLION. THAT GIVES A REMAINING FUND BALANCE OF JUST OVER $21 MILLION, ALMOST $22 MILLION THAT'S AVAILABLE. JUST LIKE TO MAKE SURE THAT THE COUNCIL IS AWARE OF THE CURRENT FUND BALANCE AND WHAT'S AVAILABLE TO THEM. YES, MR. MAYOR. >> COUPLE ITEMS ON THIS PAGE. I'M SORRY, YOU MIGHT HAVE SAID IT HERE. I KNEW YOU WERE GOING TO SAY IT. BUT SOLID WASTE AS AN EXAMPLE, SINCE THAT'S A FRANCHISE FEE TAX. IS IT? >> THE FRANCHISE. CORRECT. >> BUT AS AN EXAMPLE, THAT'S A $2.25 MILLION, OR 58 PERCENT INCREASE. THAT'S A WHILE, YOU KNOW WE WERE FACED WITH THIS SIGNIFICANT INCREASE IN SOLID WASTE COLLECTION COST. IT DOES LEAD TO A SIGNIFICANT REVENUE INCREASE. IF I'D ON A TAPE PAGE THERE IF YOU THINK ABOUT IT. I WANTED TO POINT IT OUT BECAUSE I THINK COUNSEL SNYDER, YOU WERE WANTING TO SEE THE WHOLE PICTURE. I WANTED TO POINT THAT OUT AS ONE ITEM THAT WAS IN MY MIND WHEN I WAS LOOKING AT WHAT WE CAN AND CAN'T DO. THEN ALSO I'D POINT OUT IN JUST A HYPOTHESIS BECAUSE I HAVEN'T CHECKED THIS, BUT I THINK THE TAXES FOR UTILITY AND FRANCHISE FEE, I THINK WE SHOULD EXPECT HIGHER AND I KNOW WE BUDGET, YOU COULD SAY, LONG AS WE'RE CONSERVATIVE WE'RE OKAY. THE REASON I SAY I THINK WE SHOULD BE HIGHER IS BECAUSE IF I COMPARE IT TO THE ACTUAL IN 2021, IT IS ONLY A TWO-YEAR INCREASE OF 3.7 PERCENT. THAT'S, IN LARGE PART, MOST OF THE PUBLIC THINKS THAT MONEY GOES TO FPL. THEY ARE THE BIGGEST REVENUE SOURCE FOR US OTHER THAN AD VALOREM TAXES BECAUSE THERE'S A UTILITY TAX COLLECTED AND A FRANCHISE FEE COLLECTED. THEN TO THE DEGREE THAT ENERGY COSTS ARE GOING UP, THAT'S A PURSUE ON THE BILL. WE GET A PERCENTAGE OF THAT. I USED TO, FOR YEARS BEFORE I GOT CONFIDENCE IN SCOTCH FORECASTING ABILITY, I USED TO TREND THIS BECAUSE WE ALWAYS UNDERESTIMATED IT SO I COULD DO A TREND. I STOPPED DOING THAT A NUMBER OF YEARS AGO. I KNOW YOU'RE LAUGHING BECAUSE YOU REMEMBER THAT, RIGHT? >> I DO. >> OKAY. A FEW PEOPLE DO, BUT I DO THINK IT'S GOOD. IT'S GOOD TO BE CONSERVATIVE. I LIKE POINTING OUT TO MY COLLEAGUES ON THE BASIS FOR WHEN I WAS SAYING SIX PERCENT. THAT'S ANOTHER MONEY THAT I'M EXPECTING IS GOING TO BE HIGHER THAN THAT. [01:10:03] >> SURE. >> UPSIDE IS ALWAYS GOOD. WE DON'T HAVE TO SPEND IT. WE CAN USE IT FOR OTHER REASONS. BUT I WANTED TO POINT IT OUT BECAUSE THIS IS THE REST OF THE REVENUE PICTURE RIGHT HERE. >> WELL, AS YOU JUST POINTED OUT, MR. MAYOR, THIS IS A WORKING DOCUMENT. THIS ISN'T YOUR FIRST GLANCE AT THE OPERATING BUDGET AND ITS REVENUES AND EXPENDITURES. WE WILL RECEIVE OUR STATE ESTIMATES IN JULY. I DO THE FORECASTING FOR THAT. I DON'T WAIT ON THE STATE. I DO IT EVERY YEAR. I TRACK THOSE TRENDS JUST LIKE YOU'D INDICATED. YOU WILL SEE SOME CHANGES AS WE GO FORWARD IN THE BUDGET AND THE REVENUE ASSUMPTIONS. SOMETHING ELSE TO POINT OUT THAT YOU ALLUDED TO ABOUT THE FRANCHISE, THE SOLID WASTE CHARGES, THERE'S AN OFFSETTING EXPENSE FOR THAT AS WELL. YOU'LL SEE THE $2.3 MILLION INCREASE IN THE REVENUES. YOU WILL ALSO SEE A $2.3 MILLION INCREASE IN THE EXPENDITURES. THAT'S AN IN AND OUT THROUGH THE GENERAL FUND. >> BUT NOT THE TAX. NEVER MIND. THE 2.45 IS WRONG. WHAT'S THE FRANCHISE FEE ON THAT? I THINK IT WAS ABOUT $600,000 GAINED. >> FOUR HUNDRED. >> WAS IT FOUR HUNDRED? OKAY. I'M SORRY. I WAS READING IT WRONG. YOU ARE RIGHT. THE FRANCHISE FEE IS AN INCREASE, YOU SAY 400,000. >> RIGHT. >> WHICH IS THE TOWN [INAUDIBLE] THE SERVICE THAT WE COLLECT IN THE [INAUDIBLE] >> YEAH, IT'S THREE PERCENT. IF YOU LOOK IN THE CONTRACT THAT WE JUST KNOW IT'S THREE PERCENT. IF THE BILL GOES UP, YOU GET THREE PERCENT OF A MUCH BIGGER BILL. CAN YOU TAKE THAT AS AN ACTION ON THE UTILITY TAXES AND FRANCHISE FEES TO GET BACK WITH ALL OF US WHAT THE CHANGE IN FORECASTS THAT THERE IS BECAUSE AGAIN, OUR PROCESS, WE DELIBERATE FOR A NEED TO THE DEGREE, SPECULATING THAT'S GOING TO BE SIGNIFICANT. I WANT ALL OF US TO KNOW HOW SIGNIFICANT OR NOT. >> SURE. >> THANK YOU. >> JUST GOT ONE QUESTION. THE REMAINING BALANCE, THE ALMOST 22 MILLION, IS THAT AN AVERAGE LIKE THE LAST 10 YEARS? IS THAT A PRETTY STEADY NUMBER? >> IT'S BEEN GROWING OVER THE LAST FEW YEARS. IF THAT'S YOUR QUESTION. WHEN YOU SAY AVERAGE, YOU MEAN HAS THAT BEEN PRETTY CONSISTENT OVER THE LAST 10 YEARS? >> YEAH. IT'S SIX UP, LIKE THE PERCENTAGE YOU SHARED, IT GOES UP OR? >> DEPENDS ON THE ECONOMY THERE. DURING COVID, WE PUT $2 MILLION BACK INTO THE RESERVES. BECAUSE OF THAT, WE PUT $4 MILLION. SOME YEARS MORE, SOME YEARS LESS. >> FOR THE LAST 10 YEARS, WHAT'S AN AVERAGE NUMBER, THAT'S THAT BOTTOM LINE REMAINING BALANCE AFTER THE TARGET OPERATING EXPENSES? >> IT'S BEEN ANYWHERE FROM $20 MILLION UP TO $26 MILLION. >> OKAY. >> YEAH. >> ONE THING, AGAIN, FOR THE COUNCIL, BY STATE LAW, WE CAN ONLY BUDGET 95 PERCENT OF THE AD VALOREM TAXES. LOOK AT YOUR COVER. WE ALWAYS COLLECT MORE THAN THAT. YOU CAN'T BEAT GOVERNMENT. YOU ARE GOING TO GET IT EVENTUALLY. EVEN IF THEY DON'T PAY IT, EVENTUALLY, THEY ARE LEANED AND THEY HAVE TO PAY IT. YOU DON'T GET 100 BECAUSE PEOPLE PAY EARLY, THEY GET A DISCOUNT. BUT NOT THAT MANY PEOPLE. THERE WAS ACTUALLY A YEAR WHEN THINGS STARTED CATCHING UP AND WE'VE GOT OVER 100 PERCENT. BUT THAT'S A CONSERVATISM THAT'S BUILT-IN WHICH HELPS US TO PUT INTO RESERVE BALANCE EVERY YEAR. >> CORRECT. >> JUST SO WE KNOW WHERE IT COMES FROM, WHERE IS IT COMING FROM? I'D SAY A LARGE PART, THERE'S A MARGIN THERE BECAUSE YOU CAN LOOK IN THE COVER. WE PROBABLY AVERAGED 97,98 PERCENT COLLECTION. THERE'S THREE PERCENT OF >> YOU'LL SEE THAT DURING THE TRIM PRESENTATION WHAT THE MAYOR IS ALLUDING TO AS FAR AS THE 95 PERCENT COLLECTION RATE. IT IS A STATE REQUIREMENT AND STATUTE THAT WE'RE ONLY ALLOWED TO BUDGET THAT AMOUNT AND WE DO. YOU ARE CORRECT. WE USUALLY COLLECT A LITTLE BIT MORE. BUT WHAT THE STATE IS ANTICIPATING IS THAT, PEOPLE CAN GO TO THE VALUE ADJUSTMENT BOARD AND GET THEIR TAXES ADJUSTED, WHICH COULD DRAMATICALLY REDUCE THE AMOUNT OF TAX BURDEN ON THEMSELVES AND BRING IN LESS TAX MONEY FOR THE TOWN. >> THAT'S A REAL SCARE. >> CONTINUING ON. [NOISE] FOR THE EXPENSE SIDE OF THE HOUSE, THE SOLID WASTE CHARGES AGAIN, YOU'LL SEE A SLIGHT DECREASE WHEN WE GO TO THE 2195 RATE. YOU'LL SEE WE'VE PROJECTED WHAT THAT WILL BE SO YOU'LL SEE A SLIGHT DECREASE ON THE EXPENSE SIDE AS WELL AS THE REVENUE SIDE FOR THAT ITEM. FUEL COST INCREASES, THAT'S ACROSS ALL FUNDS. I ALLUDED TO THAT EARLIER WITH SOME OF THE ASSUMPTIONS WERE. SOME OF THE ITEMS ON HERE IN RELATION TO COUNSEL ITEMS, THERE WAS THE HOLIDAY DECORATIONS. THE COUNCIL HAS ASKED THAT WE BUDGET SOMETHING FOR HOLIDAY DECORATIONS GOING INTO NEXT YEAR. WE'VE PUT A PLACEHOLDER OF $75,000 FOR AN EARLY ESTIMATE. [01:15:01] WE'RE STILL FINE TUNING THAT NUMBER. COUNCIL MAY HAVE SOME THOUGHTS ON IT AS WE GO FORWARD, BUT RIGHT NOW WE'VE BUDGETED $75,000 IN THE BUDGET THAT'S BEFORE YOU. WE HAVE THE TWO NEW POSITIONS WE DISCUSSED EARLIER FOR THE ASSISTANT TOWN MANAGER AND THE ADMIN SPECIALISTS THREE AT THE POLICE DEPARTMENT TO HELP OUT WITH RECRUITING. ALSO THE COMMUNITY CONTRIBUTIONS BY THE TOWN COUNCIL. TRADITIONALLY, WE BUDGET $25,000. [NOISE] WE HAVE MORE REQUESTS THAN WE ACTUALLY HAVE MONEY SOMETIMES, AND THE COUNCIL WANTS TO HELP. SO WE'VE LOOKED AT A TREND OR AN AVERAGE OVER THE LAST FEW YEARS, IT'S BEEN ABOUT $50,000, BUT THERE'S SOME OUTLIER YEARS WHERE IT'S BEEN MORE, AND THAT IS CLEARLY THAT IS THE COUNCIL'S MONEY THAT YOU ALL CAN SPEND ANY WAY YOU LIKE ON GOOD CAUSES THAT COME BEFORE YOU AND REQUEST IT, SO IF YOU DON'T FEEL THAT THAT NUMBER IS ENOUGH, WE CAN OBVIOUSLY CHANGE IT. BECAUSE THERE ARE THOSE OUTLIER YEARS WHERE YOU HAVE A REQUEST THAT REALLY SEEMS WORTHWHILE AND IT GOES ABOVE THE BUDGETED AMOUNT SO THAT'S ANOTHER CONSIDERATION. ALSO ANOTHER ITEM FOR THAT'S A CASTLE INITIATIVE WAS THE CYPRUS REVITALIZATION GRANT PROGRAM, $125,000. WE HAVE THAT BUDGETED IN THE P&Z OPERATING ACCOUNT. I HAD BEEN ASKED ABOUT SOME OF THE ONETIME EXPENSES WITHIN THE GENERAL FUND, WANTED TO SHOW THAT, AND AT THE BOTTOM OF THE SLIDE, THE INFLATIONARY SUBSIDIES FOR THE GENERAL FUND OF $257,000, MACHINERY AND EQUIPMENT REQUESTS $544,000. THERE'S SOME ADDITIONAL SOFTWARE, AND THEN AGAIN, AS DISCUSSED EARLIER IN THE PRESENTATION, NEW TOWN HALL FURNITURES AND FIXTURES AND IT REQUEST $875,000 WILL BE FIRMING UP THAT NUMBER LATER ON IN THE SUMMER AS WELL. YES, MR. MAYOR. >> TWO THINGS. NUMBER 1, WE'VE TALKED ABOUT THIS IT'S A WORK IN ACTION. BUT ON THE COUNCIL, ANNUAL COMMUNITY CONTRIBUTIONS, I KNOW THAT SAT THROUGH JUST SENT US ON THE SURVEY TODAY. I HAVEN'T GONE IN AND TAKEN IT YET TO SEE WHAT THE SCOPE WAS. BUT WHAT I WAS HOPING WE'D DO HERE IS WHETHER IT'S FOLLOW-UP SURVEYS HAVE TO HAPPEN OR WHAT HAVE YOU AND WE HAVE TIME, BUT BY THE TIME WE DO WRAP UP THE BUDGET, A MAJORITY MAY CONCLUDE THAT THERE IS SOME THINGS THAT WE WANT TO DO EVERY YEAR. I SUBMIT TO YOU THAT I'LL BE PUTTING A DIFFERENT CATEGORY SO IT'S NOT MESSY. THEN WE HAVE A GRANT PROGRAM THAT HAS GOT BOUNDS ON IT, UNLIKE THAT WE HAD THIS YEAR, AND HERE'S ALL THE MONEY WE HAVE BECAUSE, THERE'S A COUNCIL THAT WE OUGHT TO SHOW THE DISCIPLINE WHO LIVE WITHIN OUR BUDGET RATE SO THIS SURVEY WAS INTENDED AND I KNOW WE ALL AGREE UP HERE, SO I'M NOT PREACHING HERE, I'M JUST EMPHASIZING ITS ON HERE. THAT'S THE ACTION ITEM THAT LOOK, IF WE BELIEVE THAT THERE'S CERTAIN THINGS WE WANTED TO GRANT EVERY YEAR, WELL THEN YOU-ALL REALLY BE IN A DIFFERENT CATEGORY. THEN LET'S DO IT. WE'VE NEVER DONE THAT BEFORE OR THINK ABOUT DOING IT WHENEVER, BUT WE OUGHT TO COME TO THIS WHATEVER NUMBER ENDS UP IN HERE OUGHT TO BE THE COUNCIL OWNS IT. THEN WE'VE GIVEN DIRECTION STAFF BEFORE THEY ADVERTISE NEXT YEAR FOR A PROGRAM, I WANT THEM TO ADVERTISE THIS AS ALL THE MONEY WE HAVE, AND THESE ARE THE THINGS THAT DO OR DON'T QUALIFY BECAUSE IT'S GOING UP EXPONENTIALLY. IF EVERYBODY THINKS ALL YOU HAVE TO DO IS GET SOMETHING IN AND PUT SOMETHING IN. THAT'S WHAT I WAS HOPING AND I THINK I'M NOT THE ONLY ONE UP HERE. I KNOW THAT WAS HOPING THERE TOO SO THAT'S THE ACTION AND WE'RE WORKING ON. >> THAT WILL ALSO TEMPER EXPECTATIONS WITH SOME OF THE ASPER MAXED OUT OR ABOVE IT WAS GETTING SILLY. >> YEAH. BUT THAT SHOULD BE IN THE RULES, SO THEY GO AWAY FROM THE FRONT. >> I AGREE. >> THAT ITEM ABOUT SEPARATING IT DID COME UP AS ONE OF THE QUESTIONS IN THE SURVEY, YOU DIDN'T TAKE THAT RIGHT BEFORE. THE CONFUSION THERE IS THAT IT'S STILL A SMALL TOWN AND WE ONLY HAVE A FEW VENDORS THAT WE SEE REGULARLY, OR A FEW ORGANIZATIONS THAT COME REGULARLY. IF WE REGULARLY GIVE TO THEM AND THEY BECOME A BUDGET LINE ITEM AS YOU'RE PROPOSING, I DON'T KNOW THE POINT OF HAVING A GRANT PROGRAM IF THERE ARE THE STRICT CRITERIA FOR IT, BECAUSE THERE ARE ONLY A FEW THAT CAN MEET THOSE STRICT CRITERIA OF PROVIDING SERVICES THAT THE TOWN DOESN'T ALREADY PROVIDE. >> YEAH. >> I FEEL LIKE IT MIGHT BECOME AN EITHER OR THEN AND THERE IS SOMETHING TO POTENTIALLY HAVING THE FLEXIBILITY. IF YOU DON'T PUT A CAP ON THE PER ORGANIZATION AMOUNT, BUT YOU DO PUT A CAP ON THE TOTAL AMOUNT, THEN FOR THOSE YEARS WHERE SOMETHING COMES UP, YOU CAN REARRANGE THE AMOUNT AND HAVE THAT FLEXIBILITY TO DO SO. >> BY THE WAY. >> WE CAN TALK ABOUT THE SURVEY, BUT I DIDN'T NECESSARILY AGREE ON HAVING [01:20:01] SUCH A STRICT CRITERIA THE WAY IT WAS WORDED BECAUSE YOU COULD HAVE SOMEBODY THAT COMES IN AND WANTS TO DO SOMETHING THAT THE TOWN IS DOING, BUT TAKES IT TO THE NEXT LEVEL AS AN EXTENSION. BUT THE TAB IS TECHNICALLY ALREADY DOING IT, ARE THEY NOT QUALIFIED? CAN YOU JUST THINK ABOUT WHAT THE PARAMETERS ARE? I WASN'T REALLY SURE I WAS SATISFIED NECESSARILY WITH THE WAY IT WAS PHRASED. >> IT'S GOT TO BE ITERATIVE. I'M THE ONE THAT ASKED HIM TO START THE SURVEY BUT IT SHOULD COALESCE TO OUR INPUT. THIS IS A COUNCIL ANNUAL CONTRIBUTION THING. MY POINT IS AND BY THE WAY, PLEASE DON'T ASSUME INITIALLY I WOULD JUST ASSUME IT MAY BE THE CASE BECAUSE I'VE SEEN IT THAT THERE MAY BE A MAJORITY THAT WANTS TO FUND WELL THEN LET'S RECOGNIZE THAT MEANS IT'S LESS FOR EVERYBODY ELSE SO LET'S COME UP WITH A NUMBER. WE OUGHT TO DO THE MOST EDUCATED PROCESS WE'VE DONE NOW BASED ON ANALYZING OURSELVES LOOKING IN THE MIRROR, THAT'S WHAT I'M ASKING TO HAPPEN HERE. IT'S THE DECISION OF A MAJORITY HERE, AND IF WE CAN DISCIPLINE OURSELVES TO PUT IT IN ONE BUCKET. I ONLY EMPHASIZED BECAUSE IT HAS BECOME THE STANDARD THAT ALL COUNSELS, NOT OF AGE, BUT TIMES BACK, HAD THE PHILOSOPHY IF IT'S SERVICE THAT THE TOWN WOULD OTHERWISE HAVE TO PROVIDE IN THE BEGINNING, THAT WAS ALL THAT WAS. PUSH WILDLIFE, THAT THEY PROVIDE A SERVICE IN CARE OF ANIMALS IF THEY WEREN'T HERE AND WHATEVER, I'M JUST TELLING YOU WHAT THE PHILOSOPHY HAD BEEN SO THEREFORE, EVERY YEAR THEY'RE GOING TO GET SOMETHING, AND IT'S A DIFFERENT COUNCIL AND MAYBE A DIFFERENT OPINION, AND I'M JUST SHARING IT SO I HAVE NO IDEA WHAT'S GOING TO BE THE WILL OF THIS GROUP, BUT LET'S LET IT EMERGE BECAUSE I TELL YOU WHAT. I JUST DON'T FEEL GOOD ABOUT A FREE FOR ALL AND NOT LIVING WITHIN THE BUDGET. WE HAVE STAFF WATCHING THIS. I KNOW WE ALL AGREE SO I'M NOT PREACHING, I'M JUST SAYING [OVERLAPPING] >> THEN WE ALL AGREE THAT IT NEED TO BE TIGHTENED UP AND JUST DEFINE SOME DEFINITIONS THAT IS [OVERLAPPING] >> THE SURVEY IS NOT THE END OF IT BECAUSE IN THE END IT'S US. >> YEAH. I MAY NOT HAVE TIME TO LOOK AT THAT YET. >> WE DON'T KNOW WHAT THE NUMBER IS GOING TO BE, BUT WE'LL PENCIL IN A NUMBER WHEN IT'S ALL OVER. [OVERLAPPING] >> OKAY. WE'RE GOING TO HOLD YOU TO THAT, MR. MAYOR. [LAUGHTER] >> NO, HOLD THEM TO IT. >> MOVING ON TO THE WATER FUND. AS YOU INDICATED EARLIER, THE FIVE-YEAR MASTER PLAN HAS BEEN UPDATED WITH OUR FINANCIAL ADVISER. BASED ON THAT PLAN, HE HAS RECOMMENDED A 7.5 PERCENT RATE INCREASE DUE TO THE MASTER PLAN UPDATE. WHAT WE'RE ACTUALLY ABLE TO LIVE WITH UNDERSTANDING THAT RATE INCREASE ON THE RESIDENTS CURRENTLY OR THE RATE PAYERS. SOME PEOPLE ARE OUTSIDE THE TOWN LIMITS THAT PAY FOR WATER. BUT THE RATE PAYERS THEMSELVES, UNDERSTANDING THAT THEY'RE HAVING INFLATIONARY PRESSURE AS WELL, 7.5 PERCENT INCREASE IS MAYBE WE CAN LIVE ON SOMETHING LESS, SO WHAT WE'RE RECOGNIZING IN THE BUDGET IS A 4.5 PERCENT INCREASE, WHICH IS TO HELP BATTLE THE INFLATIONARY PRESSURES THAT'S HAPPENING AT THE WATER UTILITY. AT THE BOTTOM OF THE SLIDE, YOU'LL SEE AN OPTION A AND B. THE OPTION A IS THE 4.5 PERCENT INCREASE THAT EQUATES TO A $38.87 UTILITY BILL BASED ON A 10,000 GALLONS OF USAGE, WHICH IS USUALLY OUR BENCHMARK OF WHAT WE USE TO BENCHMARK OUR RATES, AND THAT WOULD EQUATE TO AN INCREASE OF A $1.68 A MONTH FOR THE UTILITY RATE USER. THEN AT THE 7.5 PERCENT, WHICH IS OPTION B, THAT THE RATE CONSULTANT IS RECOMMENDING, THAT WOULD BE A $39.98 INCREASE BASED ON THE 10,000 GALLONS USED BENCHMARK. THAT WOULD BE A $2.79 PER MONTH INCREASE TO THE USER. AGAIN, TRYING TO RECOGNIZE THAT THE RATE PAYERS ARE ALSO SUFFERING THE INFLATIONARY RATES THAT WE'RE SEEING WITH THE EMPLOYEES AND EVERYBODY ELSE WHO WERE ALSO RATE PAYERS AS WELL. SO WITH THE WATER FUND WE ARE HERE TO SEE GOING FORWARD. YES, SIR. >> NO. YOU'D HAVE TO SHAKE HIS HAND THEN A COMMENT. >> THAT'S WHAT YOU'RE GOING TO SEE BUILT INTO THE CURRENT PRESENTATION FOR THE WATER FUND IS THE 4.5 PERCENT INDEXING RATE. >> JUST SO MY COLLEAGUES KNOW WHERE I'M AT ON THIS. NUMBER 1 IS I HAVE NOT YET REVIEWED OR CRITIQUED THE FIVE-YEAR PLAN. [01:25:04] THANK YOU, WE HAVE IT. THAT'S WHY I WAS SAYING THEY OUGHT TO BE SCHEDULED AT SOME POINT IN TIME TO COME BACK FOR DISCUSSION. RIGHT FROM THE GET-GO, I'M GOING TO SAY SPENDING NEEDS TO BE SCALED BACK AND/OR CONTINGENT UPON FUNDING FROM OTHER SOURCES, IN MY OPINION. SO I DON'T SUPPORT THE SPENDING PLAN. BEEN HERE A LONG TIME. WHEN YOU LOOK AT THE CIP, WHICH IS THE FIRST YEAR TWO OF YOU WILL BE DOING THIS, BUT IT'S ALWAYS A PAGE AND ERRORS ANALYSIS OF WATER REVENUES, CASHFLOWS. THERE'S ALWAYS A FOOTNOTE, SO THERE'S A FOOTNOTE THAT'S BEEN DOWN HERE FOR FIVE YEARS HERE. PER THE 2017 MASTER PLAN UPDATE THE MINIMUM AND IT TALKS ABOUT THE MINIMUM RNR FUNDING DEPOSIT GOAL, AND THEN THAT DEPOSITS WERE GOING TO BE INCREASED THREE PERCENT A YEAR BECAUSE THAT WAS WHAT WAS IN THE LAST FIVE-YEAR PLAN. IT'S LIKE EVERY YEAR IT COMES BACK, THAT WAS THE EXPECTATION YET WE NEVER EVER TOOK AN ACTION ON IT. JUST LIKE AND I APPRECIATE WHAT'S HAPPENED HERE WAS OUR CURRENT TOWN MANAGER SAID, HEY, HE'S USED A JUDGMENT IN YEAR 1. WE'RE GOING TO DO 4.5 PERCENT SO THE ASK IS 4.5 PERCENT. I MAY COME AROUND TO THAT, BUT THE POINT IS, BUT THE BOOK WE HAVE SO 7.5 PERCENT IN MULTIPLE YEARS. I JUST WANT TO MAKE SURE IT'S CLEAR. I'M GOING TO BE VERY CAREFUL HERE THIS YEAR THAT WE, AS A COUNCIL, GIVE POLICY GUIDANCE ON THAT. ALL WE HAVE TO DO IN YEAR 1 IS YEAR 1, BUT ALSO I DON'T WANT TO HAVE ANY MISUNDERSTANDINGS ABOUT YEARS 2, 3, 4 AND 5 BECAUSE WE ONLY SEE IT ONCE A YEAR AND SO THIS IS A SPECIAL YEAR AS YOU HAVE A CHANCE TO REALLY INFLUENCE BECAUSE IT'S COMING IN A FIVE-YEAR LOOK AHEAD. BUT I'M JUST GOING TO PARKING LOT THAT AND JUST SUGGESTS THAT I THINK IT'S IMPORTANT FOR US TO REVIEW IT DIFFERENTLY THAN WE EVER HAVE, TO OWN IT, SEND IT BACK. BECAUSE I WILL TELL YOU THAT IN MY OPINION, THE FINANCIAL CONSULTANT IS NOT WHAT I WOULD CALL A FINANCIAL CONSULTANT. IT'S A RATE HIGH CONSULTANT. I SAID THAT FOR 21 YEARS BECAUSE THIS JOB IS TO MAKE THE NUMBERS THAT THEY'RE ASKING FOR, HERE'S WHAT YOU HAVE TO SPEND, HERE'S WHAT YOU HAVE TO RAISE RATES TO GET IT. FINANCIAL CONSULTANT I WANT IS ONE THAT SAYS, WELL, COULD WE CUT SOME OF THESE COSTS? THAT IS FOR US TO LOOK AT WHEN WE'RE LOOKING AT THE PROJECTS. OR MAKE THEM CONTINGENT UPON SOME OTHER FUNDING SOURCES SO THAT WE REALIZED THE NUMBERS WORK. >> I WOULD LIKE TO HAVE A FULLER DISCUSSION ABOUT THE WHOLE WATER FUND. THERE ARE A LOT OF VERY IMPORTANT PROJECTS NEED TO BE FUNDED. I UNDERSTAND THAT SENSITIVITY TO THE RATE PAYERS AND THAT WE HAVE TO KEEP THAT DOWN. BUT THERE ARE ALSO PROJECTS THAT NEED TO GET DONE. >> AGREED. >> I REALLY WANT TO HAVE CONVERSATIONS ABOUT, WELL, IF IT'S NOT GOING TO BE ON THE BACK OF THE RATE PAYER, THEN HOW IS THIS PROJECT GOING TO GO FORWARD? THAT'S PART OF MY REASON FOR WANTING TO STEP BACK AND TAKE A LARGER LOOK AT EVERYTHING BECAUSE EVERYTHING'S A TRADE-OFF, BUT THERE'S STILL THINGS THAT NEED TO BE DONE THAT ARE IMPORTANT IN THE LONG TERM. TO YOUR POINT, I'D LIKE TO HAVE A MORE FULSOME DISCUSSIONS. >> I MAY COME AROUND AND ULTIMATELY AGREED TO IT. I SAID I HADN'T REVIEWED IT YET AND WE'VE NEVER REALLY REVIEWED IT THAT WAY. BUT WE ALSO NEVER PARKING LOT IT. I'M JUST SAYING WE'RE GOING TO PARK IN LOT AT THIS TIME BECAUSE IT WASN'T EVEN ON THE SCHEDULE OF THINGS TO DO. LET'S FIGURE OUT A SCHEDULE, AND WE PROBABLY HAVE TO WORKSHOP THAT. IT IS THAT IMPORTANT. >> YES, IT IS PROBABLY WORTH A WORKSHOP I THINK. >> TOTALLY. >> YEAH. >> YEAH. >> SOME OF THOSE ITEMS COULD HAVE BEEN THE BOND REFERENDUM TYPE PROJECTS, WHO KNOWS, RIGHT? YEAH. THERE'S JUST A LOT GOING ON THERE THAT'S REALLY IMPORTANT IN THE LONG TERM SO I THINK IT'S REALLY WORTH ITS OWN CONVERSATION. >> AGREED, IN THE WAY OF PRIORITY THOUGH, WE CAN MAYBE LIVE WITH, WE MAKE THE DECISION ON THE ONE YEAR BECAUSE THAT'S ALL THAT'S IN FRONT OF US. I JUST DON'T WANT TO MISS THAT. THE BOOK GETS MISSED. WE NEVER TALK ABOUT IT. SO WE CAN CONCLUDE WHEN WE HAVE TIME TO DO PROPER REVIEW AND CRITIQUE AND DIALOGUE WITH OUR WATER UTILITY, INSTALL MORE UTILITY ON THOSE TWO PLANS. THAT'S WHY I'M JUST UNIQUELY PARKING LOTTING IT AND MAKE SURE THAT WE RECOGNIZE THAT AS AN ACTION THAT WE HADN'T DONE. EVEN WHEN YOU WERE HERE FIVE YEARS AGO, WE JUST GOT IT. >> YEAH. I AGREE WITH EVERYTHING SAID AND WHEN WE DECIDE WHAT WILL BE DEVELOP AND BUDGETED, I'M ALWAYS OF THE PHILOSOPHY WHERE YOU TRY TO EASE INTO THE INCREASES SO AT SOME YEAR WE HAVE TO GO UP 10 PERCENT AND HAVE THERE BEEN A BIG STICKER SHOCK. I LIKE YOUR IDEA. JUST LOOK AT EVERYTHING, VET IT, BUT WE'RE GOING TO, FIVE-YEAR PLAN OR TEN YEAR PLAN THROUGH THIS, THIS, THIS, AND THIS, AND HOW DO WE GET THERE FINANCIALLY. [01:30:01] SO IT'S AS PAIN-FREE AS POSSIBLE FOR THE RATE PAYER. >> THAT THERE HAS TO BE THAT ADVANCED PLANNING AND I'VE REALLY BEEN GRATEFUL FOR THE R&R FUN, NOT REST AND RELAXATION, BUT REPAIR AND REPLACEMENT. I'M JUST THINKING AHEAD BEING VERY CONSERVATIVE WITH THAT. HOW'S THAT PERFORMED? HOW IS THAT PANNED OUT OVER TIME? I DON'T HAVE THAT HISTORY, BUT I'VE BEEN HAPPY TO LEARN THAT WE DO THAT BECAUSE YOU MAY LOOK AT OTHER MUNICIPALITIES WHO ARE IN THE SAME SITUATION WITH THEIR WATER UTILITIES. >> ALSO LOOKING AT WHAT OTHER FUNDING SOURCES WE MIGHT GO TO [OVERLAPPING] ON IMPORTANT PROJECT. >> YEAH. >> IF I MAY ADD, RELATIVE TO THE QUESTION OF KEY DATES, STAFF WAS PROPOSING TO BRING FORTH ON JULY 19TH, THE FORMAL PRESENTATION OF BOTH THE WATER AND STORMWATER MASTER PLAN. SO IT WOULD BE ON THAT AGENDA UNLESS YOU WANT TO DO A SEPARATE MEETING. THEN BECAUSE WE HAVE CERTAIN TIME-CRITICAL PROJECTS THAT WERE CONTAINED WITHIN THE MASTER PLAN. SPECIFIC NEEDED TO BE DONE WITHIN THE NEXT THREE OR FOUR YEARS TO MAINTAIN SYSTEM RELIABILITY. WE PROBABLY BRING FORWARD ANY FINALIZATION OF A RATE INCREASE IN AUGUST. RIGHT NOW THE DATE WAS AUGUST 16TH, WHATEVER THE COUNCIL DESIRES. >> IT'S THE WILL OF THE MAJORITY HERE, BUT INITIALLY JUST THE WORKSHOP. I PERSONALLY WOULD PREFER NOT TO COMMIT TO THE JULY 19TH BECAUSE I'M NOT SURE WHETHER OR NOT IT MAY EVEN NOT BE BETTER AS A WORKSHOP OR WHAT HAVE YOU. PERSONALLY, I WANT TO BE PREPARED FOR IT. NUMBER 1, I DON'T KNOW IF I CAN BE PREPARED, BUT I'LL WORK ON THAT SO HEARING THAT THAT'S A DATE. WE CAN TALK ABOUT THIS AT THE FIRST MEETING IN JULY ABOUT WHETHER WE HEAR AT THE NEXT ONE. I WOULD SUBMIT THOUGH, THAT WE HAVE A FIVE-YEAR PLAN THAT WE'VE ALWAYS APPROVED. SO TO A LARGE PART PROJECTS IN YEAR 1, I'VE ALWAYS TAKEN THIS POSITION. IF WE PLAN PROPERLY, AND WE HAVE A FIVE-YEAR PLAN, THEN THERE SHOULD BE NOTHING NEW POPPING UP IN YEARS 1, 2 AND 3 OF THE NEW PLAN. TO SOME DEGREE, WE'RE NOT AT RISK FOR ANY PROJECT THAT HAS BEEN IN THAT WE MAY REVISIT. YOU CAN REVISIT IT EVERY YEAR, BUT WE HAVE A FIVE-YEAR OUTSIDE OF THE NEW, WHAT'LL HAPPEN IS THE NEW PLAN MIGHT HAVE EMERGED NEW PROJECTS, I GET THAT. BUT IT'S NOT LIKE WE'RE NOT WITHOUT A FUNDING SYSTEM SETUP BECAUSE WE'VE GRANTED A FIVE-YEAR CIP OF WHICH YOU WANT TO SEE SOONER THAN LATER. I GET THAT. BUT THAT'S A BIG PIECE OF IT. SO DAVID, I'M GOING TO SUGGEST THAT IT'S IN THAT CIP PROCESS, AND SO WE CAN KEEP OUR EYES ON THE CIP PROCESS AND THEN STILL COME BACK BECAUSE YOU HAVE NEW EMERGING STUFF IN THE FIVE-YEAR PLAN I'M TALKING ABOUT NOW, THE BOOK, RIGHT? >> THAT'S CORRECT. >> THAT'S THE STUFF THAT WE REALLY NEED TO WORKSHOP, PONDER ABOUT AND WHATEVER. >> THEY WILL ALSO BE IN THE CIP BECAUSE OF THE TIME CRITICAL NATURE OF SOME OF THOSE PROJECTS. YOU'LL SEE IT WHEN WE'RE DONE CIP WORKSHOP. >> YEAH. >> WHATEVER THAT, ALMOST 11TH OR SOMETHING LIKE THAT. >> OKAY. >> OKAY. >> OKAY. MOVING ON. I'M DIVING MORE INTO THE WATER FUND JUST SO YOU CAN SEE HERE. WE'VE ALREADY TOUCHED ON A NUMBER OF THESE ITEMS ABOUT THE INDEXING INCREASE REQUEST. WHAT THE ASSUMPTIONS ARE AS FAR AS THE GROWTH IN CUSTOMERS, AND ALSO THE USE OF APPROXIMATELY $2.8 MILLION IN RETAINED EARNINGS PRIMARILY DUE TO THE INFLATIONARY COSTS WHEN WE'RE TALKING ABOUT CHEMICALS AND WE'RE TALKING ABOUT UTILITY COSTS AT THE PLANT. ALSO REPAIRS AND MAINTENANCE COST AND ALSO FUEL. [NOISE] >> I'M SORRY, JUST ON THAT ONE. IN EVERY YEAR ALSO, THE COUNCIL HAS MADE IN YEAR BY YEAR DECISION, ALONG WITH RECOMMENDATIONS FROM THE TOWN MANAGER, DO WE OR DON'T WE DO AN INFLATIONARY ADJUSTMENT SO THERE WAS A TIME, IT WAS A STANDARD, WE ALWAYS DID IT AND THEN IT BECAME WE DECIDED EACH YEAR. IN A WAY, WHAT IS PRESENTED HERE, AS I UNDERSTAND IT FROM THE ONE ON ONE MEETING I HAD, IS THE 4.5 PERCENT BECAUSE I EVEN ASKED WAS THAT, WELL ACTUALLY, THE INFLATION? NEXT, I WAS TOLD WAS AN ODD ONE WHERE IT'S ACTUALLY LESS THAN THAT. BUT JUST SO IT'S CLEAR, I'M OKAY WITH 4.5 PERCENT BECAUSE IN MY MIND, IT'S AN INFLATION ADJUSTMENT. JUST LOOK AT HOW MUCH THE CHEMICAL COSTS WENT UP. BUT WE DO THE ADJUSTMENT HISTORICALLY ON THIS INDEX AND I WAS TOLD THE INDEX IS ACTUALLY LESS THAN FOUR PERCENT. I DON'T THINK WE DID THE INDEX LAST YEAR, BUT DOESN'T MATTER. >> WE DIDN'T. >> WE DIDN'T. NOW IF WE DIDN'T DO IT LAST YEAR OR SO, [01:35:01] I GO WITH THE RECOMMENDATION OF 4.5 PERCENT JUST FOR CLARITY, WE STILL HAVE TO UNDERSTAND THE LONG TERM. >> RIGHT. WHEN'S THE LAST TIME WE DID THE INDEX? WAS IT TWO YEARS AGO? WE HAVEN'T DONE IT FOR TWO YEARS OR ONE YEAR? >> IT'S BEEN ACTUALLY, I BELIEVE THREE YEARS SINCE WE'VE DONE ANY INDEXING WITH THE WATER,. >> WHICH IS WHY WHEN I SAW THE 4.5 PERCENT I SAID GEE, WE'LL DO INFLATION. THEY SAID, WELL GEE, INFLATION IS EVEN LOWER. >> RIGHT. >> I'LL LIVE WITH 4.5. >> BUT I WILL TELL YOU, LOOKING AT THE RNR CONTRIBUTIONS, ONE OF THE THINGS THAT ACTUALLY HELPED IS HOW WE HAD A DRIER SUMMER THAN NORMAL. MEANING THAT PEOPLE ARE USING WATER MORE, WHICH MEANS IT ACTUALLY INCREASE THE REVENUES AND WHICH OUTPACED THE ACTUAL COSTS OF RUNNING THE PLANT SO WE WERE ACTUALLY ABLE TO MAKE SOME ADDITIONAL RNR [NOISE] CONTRIBUTIONS WHICH HELPED GOING INTO THIS YEAR WITH SOME OF THOSE RNR TYPE ACTIVITIES. >> ONE OTHER THING JUST FOR THE INTEREST OF THE NEWER MEMBERS SO OUR RATE STRUCTURE IS SUCH THAT WHEN YOU TAKE THE AVERAGE CUSTOMERS AT 10,000 GALLON, BECAUSE I THINK THAT HISTORICALLY HAD BEEN THE AVERAGE CUSTOMER. BUT MANY YEARS AGO WAS THE POLICY OF THE COUNCIL AT THAT TIME THAT THEY WANTED TO MAKE LARGER USERS PAY MORE SO IT'S ALMOST EXPONENTIAL. I WOULD SAY THIS IS A CASE WHERE GOSH, YOU WISH YOU LIVED IN ABACOA BECAUSE THEY GET RECYCLED WATER AND YOU WOULDN'T ON TO LIVE IN MY NEIGHBORHOOD IS ON A LAKE BECAUSE I'M USING CITY WATER TO WATER. WHEN YOU LOOK AT WHAT THAT RATE IS, IT'S SIGNIFICANT SO YOU ALWAYS WANT TO RECOGNIZE, JUST LIKE I WAS SAYING, SAVE OUR HOMES AND WHATEVER, WHO IS RARELY BEARING THE COST? THE INCREASE THAT YOU SEE HERE DOESN'T APPLY IN MY NEIGHBORHOOD IF YOU'RE USING CITY WATER. IT'S SIGNIFICANTLY DIFFERENT SO I BALANCED THAT, BUT I JUST MAKE SURE PEOPLE KNOW, NOT JUST LOOKING AT YOUR OWN BILL, THAT THERE'S DISTINCTIONS ON WHO THE CUSTOMER IS SO IN MY CASE, IT'S NOT REPRESENTATIVE OF MY NEIGHBORS AND I CAN TELL YOU WHEN IT RAINS, I RUN OUT THERE AND HIT RAIN DELAY FOR 24 HOURS AND THEY SAY FOUR BUCKS. [LAUGHTER] I KNOW WHAT IT EQUALS. [LAUGHTER] >> I WANT TO LAKE, SO. >> I UNDERSTAND. [LAUGHTER] IF YOU'VE GOT LAKE WATER. >> GOING INTO THE STORMWATER FUND, WE SHOW THIS CHART JUST TO SHOW HOW WE BENCHMARK WITH OTHER SURROUNDING ENTITIES FOR COMPARISON PURPOSES. [NOISE] WE HAVE THE CURRENT RATE OF $6.17 WITH A SEVEN PERCENT INCREASE, IT GOES TO $6.60, WHICH IS APPROXIMATELY $0.43 PER MONTH INCREASE FOR THE RESIDENT. THE STORMWATERS, YES, MR. MAYOR. >> JUST SAME THINGS APPLY HERE. I HAVE NOT YET REVIEWED, CRITIQUE, WHATEVER. I JUST FOR AN AWARENESS STANDPOINT, THE TOWN HAS BEEN USED IN COMMUNITY BLOCK GRANT FUNDS TO OFFSET STORMWATER UTILITY COSTS. I JUST WANT TO MAKE SURE YOU THINK ABOUT THAT AND SO THEREFORE, THAT ARE WE TAKING THAT INTO ACCOUNT AND WHATEVER, JUST LOOK AT THE PART. THAT WASN'T ALWAYS THE CASE. I WOULD SUGGEST THAT THERE COULD BE SOME POLICY THOUGHT ABOUT THAT. I'M SUPPORTIVE OF IT, HOW IT HAS BEEN DONE. BUT THERE WAS A TIME WHEN THOSE COMMUNITY BLOCK GRANT FUNDS WERE USED FOR OTHER THAN UTILITY STUFF AND WE SEEM TO BE USING A FREE UTILITY STUFF WHICH IS FINE, IT'S A GOOD USE. BUT THEN WE'RE NOT DOING THE OTHER STUFF SO I JUST WANTED TO CREATE THAT PERSPECTIVE, IF YOU WILL. IN MY MIND, THE FACT THAT WE'VE BEEN DEPLOYING COMMUNITY BLOCK GRANT FUNDS TO OFFSET, THEN [NOISE] I'M GOING TO TAKE THAT INTO ACCOUNT. I WANT TO MAKE SURE YOU ALL KNOW THAT AND I ALWAYS HAVE A PET PEEVE ABOUT BENCHMARKING THAT ALWAYS HAVE BECAUSE I EVER ALWAYS USE THAT AND BELIEVE THAT TO TRULY GET BETTER. I'M NOT SUGGESTING THAT EVERYBODY ELSE ISN'T THE SAME WAY. BUT AS AN EXAMPLE, WHEN YOU LOOK AT THE STORM OR UTILITY COSTS AND YOU'RE LEFT WITH THE PERCEPTION HERE. IF YOU THROW OUT A PORCH IN LUCY IN WEST PALM BEACH, THE AVERAGE IS 6.4 AS AN EXAMPLE, AND WERE HIGHER. THEN JUST SO YOU KNOW, THE GARDENS DOESN'T EVEN HAVE A STORM WATER UTILITY SO YOU COULD PUT IN A ZERO IN THERE. [01:40:04] THE POINT IS, WHEN YOU REALLY BENCHMARK, YOU REALLY WANT TO KNOW WHAT EVERYBODY'S COSTS ARE, ARE THEY DIFFERENT FOR DIFFERENT REASONS AND WHATEVER. BUT ENOUGH SAID, I'M TRYING TO MAKE SURE THAT I TAKE ALL THAT INTO ACCOUNT AND SEE WHAT OTHERS ARE DOING. BUT WHAT'S UNIQUE ABOUT JUPITER IS WE HAVE SO MANY DEVELOPMENTS THAT ARE COVERED UNDER NORTHERN PALM BEACH COUNTY IMPROVEMENT DISTRICT IS THE WAY THEY WERE DONE, THAT ALL THOSE NEIGHBORHOODS REALLY THEIR STORM WATER SYSTEM, A GOOD PORTION OF IT ARE COVERED BY ANOTHER ENTITY. YOU COMPARE THAT TO LIKE A PORT SAINT LUCY AND THAT DOESN'T EXIST UP THEY'RE IN, AND THAT'S SOME OF THE RATIONALE AND WHY THERE'S DIFFERENCES IN COSTS BUT I JUST REALLY LIKE TEND TO SHOW THIS. I ALWAYS FEEL LIKE IT CAN BE MISLEADING, SO I WANT TO MAKE SURE I'M SHARING HOW I READ IT. >> TO YOUR POINT, MR. MAYOR, JUST SIDE NOTE, THE CDBG FUNDS, THE COUNCIL WILL BE SEEING THAT FIVE YEAR WINDOW OF FUNDING FOR THE CDBG WHEN WE GET TO THE CIP PORTION. SOME OF THOSE DOLLARS HAVE BEEN OBLIGATED GOING FORWARD TOWARDS ROAD AND SIDEWALK IMPROVEMENTS. WE DID THAT LAST YEAR, YOU'LL SEE THAT IN THE CIP, BUT YOU'RE CORRECT. IT WASN'T JUST THE STORM WATER THAT'S RECEIVED BENEFIT, BUT ALSO THE WATER FUND IS ALSO RECEIVE SOME BENEFIT FROM CDBG FUNDS,. >> WHICH IS A GOOD USE IN IT. BUT I'VE JUST BEEN HEARING FROM THE PUBLIC, LIKE OTHER PRODUCTS THAT USED TO GET DONE WEREN'T GETTING DOWN SO MAYBE WE'RE PIVOTING BACK. >> CONTINUING ON. FOR THE STORMWATER FUND ITSELF, A TOTAL OF [NOISE] ONE MILLION DOLLARS TO FUND THE STORMWATER UTILITY OPERATING FUND THAT CONSISTS OF THE FOUR PERCENT SALARY INCREASES THAT WE'VE TALKED ABOUT EARLIER. THE SUBSIDY THAT'S BEING PROPOSED, ALSO THEIR USE OF RETAINED EARNINGS FOR REPAIRS AND MAINTENANCE, THE STREET SWEEPING, TV AND CLEANING, [NOISE] DRAINAGE SYSTEMS, PERSONNEL, SERVICES, AND ALSO THE POSITIONS WE DISCUSSED EARLIER. THE BUILDING FUND, AGAIN, VERY STABLE FUND ALWAYS HAS BEEN GOING FORWARD. WE ARE SHOWING US $600,000 INCREASE IN THE PERMIT REVENUE, SMALL USE OF RETAINED EARNINGS FOR THE DEPARTMENT. THERE IS INCREASED OVER FY22 THE DEPARTMENTAL INCREASES OF $483,000 PRIMARILY DUE TO SALARIES, BENEFIT COSTS, AND ALSO THE COST ALLOCATION FOR THE GENERAL FUND. WE DO A COST ALLOCATION ACROSS ALL ENTERPRISE FUNDS. WHEN YOU SEE A COST INCREASES IN THE GENERAL FUND FOR SALARIES AND DEPARTMENTAL EXPENSES, THAT DIRECTLY TRANSLATES TO THE ENTERPRISE FUNDS FOR THE SUPPORT THE GENERAL FUND ADDS TO THOSE ENTERPRISE FUNDS. THERE'S USUALLY AN OFFSETTING INCREASE IN EACH OF THOSE ENTERPRISE FUNDS. I JUST WANTED TO POINT THAT OUT AS WELL. YES, MR. MAYOR. >> ON THIS ONE, THIS IS A BILLING, THIS IS AN ENTERPRISE FUND. I'VE SAID FOR YEARS AND YEARS, I LOVE THE WAY THIS ONE HAS BEEN MANAGED VERY WELL. I NEVER HAVE ANY IMPROVEMENT OPPORTUNITIES TO ADD. BUT I DID ASK HIM TO ONE-ON-ONE AND I JUST WANTED TO ASK SINCE WE HAVE OUR DEPARTMENT HEAD HERE, THAT I WONDERED WHETHER OR NOT WE SHOULD BE ADDING BENCH STRENGTH IN THE PLAN REVIEW FUNCTION? TO REDUCE PRELIMINARY APPLICATION APPROVAL DURATION, I HAD A PERCEPTION THAT YOU HAD A GOOD PROCESS TO BRING ON OUTSIDE HELP FOR INSPECTIONS. BUT I WANTED TO MAKE SURE, I DID NOT REALIZE THAT YOU HAD THAT ALSO FOR PLAN REVIEW. BUT TO THE DEGREE THAT THE DURATION OF PLAN REVIEWS IS OF IMPORTANCE, I JUST WANTED TO SAY, GEE, ARE WE WORKING ON MAKING SURE WE HAVE A LOT OF BENCH STRENGTH THERE? PEAKS AND VALLEYS, WE CAN HIT IT HARD AND KEEP THE DELAYS IN GETTING A PERMANENT DOWN. THAT'S NOT AS A CRITICISM AND YOU WANT TO MAKE SURE YOU HAVE THE RESOURCES, >> YES, SIR. I'M CURRENTLY I HAVE A POSITION OUT FOR, TO BE ADVERTISED FOR PLANS EXAMINER TO START A NEW PROGRAM, TO TRY TO DO TURNAROUND PERMITS FOR OUR ROOF PERMITS ARE SHUTTER PERMITS. WE WON'T CONTRACTORS OR HOMEOWNERS TO BE ABLE TO COME IN BEFORE 11 OR 12, THAT DAY AND GET THEIR PERMITS THE NEXT DAY. BECAUSE WE'RE SEEING IN LARGE, A LOT OF PERMITS COMING IN FOR THE ROOVES. IT SEEMS LIKE EVERYBODY'S ROOF IS NEEDING TO BE REPLACED BECAUSE OF INSURANCE REASONS. ALSO I'VE BEEN ASKED AND I'LL BE BRINGING THIS TO YOU IN JULY, IS TO GIVE SOME BENCH-MARKING, [01:45:01] SO YOU KNOW HOW LONG IT TAKES TO GET PERMITS, HOW MANY PERMITS WE HAVE COMING IN AND OUT EACH MONTH, AND THE DIFFERENT TYPES OF PERMITS THAT ARE COMING IN. >> I DIDN'T SEE ON HERE THAT YOU ARE ADDING A PERSON. THAT'S WHY WE'RE ASKING ABOUT IT. >> WE HAD AN UNFILLED POSITION, SO WE'RE WE'RE FILLING IT. >> BUT THAT'S SEEING THAT WE WERE ADDING ONE, THEN I WAS SAYING IT SEEMED TO ME WE SHOULD. >> I HAVE PLANS EXAMINER IN THE BUDGET THAT I HAVEN'T BEEN FILLED YET. >> GREAT. >> I HAVE THAT BACKUP IF WE NEED IT AND I HAVE A CONTRACT HELP ALSO. >> NOW, WHAT YOU KNEW YOU HAD YOU HANDLE THE QUESTIONS COMING IN FROM THE BUSINESSES, SO UNDERSTAND. >> YES. >> ARE YOU STILL COVERED UNDER THE BILLING DEPARTMENT? >> YES, SIR. >> NO, I WAS WONDERING BECAUSE I DIDN'T SEE ANY BUDGET FUNDS FOR THAT SINCE HE'S WEARING TWO HATS, WHICH IS FINE, BUT I JUST WANTED TO MAKE SURE. >> THANK YOU. >> GET A LOT OF STUFF DONE, BUT IT'S IMPORTANT IN THE COUNCIL, SO THANK YOU. >> MAYOR, JUST ANOTHER POINT ON THAT TOO, AS WE WERE GOING THROUGH THIS BUDGET PROCESS, AS SCOTT ALLUDED TO EARLIER, WHEN HE WAS TALKING ABOUT THE HEALTH CARE FUNDS, [NOISE] WE HAD A NUMBER OF POSITIONS THAT HAD NOT BEEN FILLED, AND SO AS WE WERE EVALUATING THEIR STRATEGIC PRIORITIES, WERE ABLE TO MOVE SOME RESOURCES FROM THE CURRENT BUDGET TO OFFSET FUTURE COSTS AND MADE SOME ADJUSTMENTS TO THE ORGANIZATIONAL STRUCTURE BASED ON THE VACANCIES THAT WE HAD IN PLACE. >> I GUESS THAT'S JUST ONE ELEMENT THAT WE DIDN'T REALLY GET IN OUR REVIEWS THUS FAR TO REALIZE WHERE IT'S BEING GOING. I'M GLAD TO HEAR IN THIS AREA, BECAUSE I THINK SOMEBODY EVEN THEN OUR NEWER MEMBERS HAVE BEEN TRYING TO CHAMPION MAKING SURE THE PROCESSES HAS IMPROVED. I WANTED TO MAKE SURE WE'RE PUTTING RESOURCES AT IT. >> I HEAR THEM LOUD AND CLEAR. >> I UNDERSTAND, SO DO WHY, I DO WANT TO KEEP THEM HAPPY. [LAUGHTER] >> GOING BACK TO THE HEALTH INSURANCE FUND, JUST TO SEE THE TOTAL, WE ARE BUDGETING AT JUST OVER $9 MILLION OF TOTAL FOR THE HEALTH INSURANCE FUND. AGAIN, THAT'S A 0 PERCENT INCREASE FOR THE EMPLOYEES. ONE THING I FORGOT TO MENTION EARLIER ABOUT THE 0 PERCENT INCREASE AND WHAT DOES THAT TRANSLATE TO FOR AN EMPLOYEE? I KNOW WE HAVE A SLIDE, I THINK IT'S THE NEXT SLIDE. THAT ACTUALLY TALK ABOUT SOME OF THE BENEFITS THAT WE'RE TRYING TO GIVE TO EMPLOYEES, BUT THE 0 PERCENT INCREASE FOR SINGLE COVERAGE IS A BENEFIT OF $102 A YEAR OR $4.29 PER PAYCHECK. I KNOW IT DOESN'T SOUND LIKE A LOT, BUT FOR THE SINGLE COVERAGE ALL THE WAY TO THE FAMILY COVERAGE, THE FAMILY COVERAGE PER CHECK IS $12.65 OR $303 A YEAR. ANY LITTLE BIT HELPS, BUT THE 0 PERCENT INCREASE BASED ON THE 5 PERCENT THAT YOU MENTIONED EARLIER, MR. MAYOR, WHAT WE WERE DOING LAST YEAR. THAT DIFFERENCE IS EITHER A $102 OR $303 ANNUALLY FOR AN EMPLOYEE. I WANTED TO POINT THAT OUT. GOING RIGHT INTO THE NEXT SLIDE, THE NON-UNION INCREASES THAT ARE CURRENTLY IN THE BUDGET THAT'S BEFORE YOU IS JUST OVER $700,000. I'M SORRY, THE UNION SALARY INCREASES AS INDICATED, WE ARE CURRENTLY IN CONTRACT NEGOTIATIONS WITH A UNION. THAT'S TO BE DETERMINED AT THIS POINT. THE INFLATIONARY SUBSIDY THAT'S BEING PROPOSED OF $414,000, THE ANNUAL HSA CONTRIBUTION OF $824,000 THEN THE NO INCREASE IN THE HEALTHCARE PREMIUM THAT I'VE JUST ALLUDED TO AS FAR AS THE ANNUAL BENEFIT FOR THE EMPLOYEES. THAT WAS JUST A SUMMARY OF SOME OF THE BENEFITS WERE TRYING TO GET BACK TO THE EMPLOYEES AND THE COST OF THE TOWN. THE UPCOMING IMPORTANT DATES THAT WANTS TO REMIND THE COUNCIL AND THE PUBLIC OF IS SPECIFICALLY THE JULY 19TH MEETING FOR TRIM. THAT'S WHERE THE COUNCIL WILL SET THE PRELIMINARY MILLAGE THAT'LL BE GOING FORWARD. I THINK THE MAYOR ALLUDED TO THAT EARLIER IS THAT ONCE THE MILLAGE IS SET, YOU CAN GO DOWN, BUT YOU CAN'T GO UP AFTER YOU SET THAT MILLAGE AND REPORTED FOR THE PROPERTY APPRAISER FOR ADVERTISING. AGAIN, WE HAVE A GOAL NO LATER THAN AUGUST TO HAVE A POLICE UNION CONTRACT TO THE COUNCIL FOR RATIFICATION, SO THAT WE CAN IMPLEMENT THAT OCTOBER ONE. WE ALSO CAN'T FORGET ABOUT THE CRA. WE NEED TO HAVE A BUDGET WORKSHOP ON THE 11TH TO DISCUSS [01:50:01] THE CRA AND ALSO THE CIP ON THE SAME EVENING. WE HAVE THE THIRD PARTY ADMINISTRATOR CONTRACT. IT'S GOING OUT RFP LATE THE SUMMER, SO WE CAN HAVE THAT IMPLEMENTED BEFORE JANUARY ONE. THE FIRST AND SECOND PUBLIC HEARINGS CURRENTLY ARE TENTATIVELY SCHEDULED FOR THE 6TH AND THE 20TH. I ANTICIPATE WHEN I RECEIVE THE UPDATED EVALUATIONS FROM THE PROPERTY APPRAISER JULY ONE, I'LL ALSO RECEIVE THE DATES FOR THE PALM BEACH COUNTY AND THE SCHOOL BOARD. WE CANNOT TAKE THE 6TH OR 20TH IF THEY'VE SELECTED ONE OF THOSE DATES AS THEY'RE HEARING NIGHTS. THOSE DATES COULD POSSIBLY CHANGE DEPENDING ON WHAT THEY SELECT. THE POLICY GUIDANCE THAT WE'RE SEEKING FROM THE COUNCIL THIS EVENING IS IN REGARDS TO THE FLAT MILLAGE RATE OF 2.4633. ALSO THE DISTRIBUTION BETWEEN THE OPERATIONS AND COMMUNITY INVESTMENT PROGRAM OF 85/15. THE HEALTH INSURANCE, NO PREMIUM INCREASE FOR [OVERLAPPING] THE EMPLOYEES. >> STOP. [NOISE] WE WANT TO JUST PAUSE AT EACH ONE JUST TO SHOW WHETHER OR NOT. >> SURE. >> THAT DOESN'T MEAN WE HAVE TO MAKE THE DECISION HERE, BUT I DON'T WANT TO MISS READING IT HERE. LET'S STOP AT ONE. >> I JUST HAD A QUESTION ON THE DATES. HAVING THE CRA BUDGET WORKSHOP, I HAD ASKED BEFORE ABOUT HAVING A WORKSHOP WITH THE CRA SO WE CAN FIGURE OUT WHAT WE'RE DOING WITH IT. >> WITH THE CRA? >> YEAH. I'D LIKE TO TALK ABOUT THAT BEFORE WE FIGURE OUT WHAT THE BUDGET SHOULD BE. >> COUNSELOR, WE'D ACTUALLY DISCUSSED THAT THE TOWN MANAGER BROUGHT THAT UP THAT POINT THAT YOU WOULD ASK FOR THAT. CURRENTLY, THE PLAN WAS TO HAVE POSSIBLY A WORKSHOP BEFORE THE ACTUAL BUDGETARY WORKSHOP TO DISCUSS THE CRA IN TOTAL. >> GREAT. >> THAT BY THE TIME WE GOT TO THE BUDGET, THAT WAY WE COULD ACTUALLY HAVE A DIALOGUE AND WE COULD TALK ABOUT THE FINANCING, THE CASH FLOWS. INDEED, TALK ABOUT CRA IN DETAIL. >> GREAT. THANK YOU. >> GO BACK BECAUSE SHE WAS GOING TO THE DATES. GO BACK ONE SLIDE TO THE DATES. >> SURE. >> TO THE DEGREE THAT COUNSELOR SNYDER HAD TALKED ABOUT WANTING CIP INPUTS SOONER, AND LOOKING AT THE CALENDAR HERE, AND THIS IS JUST A SUGGESTION IS THAT I DON'T KNOW HOW MUCH WORK THAT GOES INTO GETTING THAT DONE. BUT IT JUST SEEMS TO ME SIMPLISTICALLY THAT AND I'M LOOKING AT THE AUGUST 11TH BEING THE CIP BUDGET WORKSHOP. THAT MEANS WE WOULD HAVE GOT INFORMATION AUGUST 4TH. THAT MEANS IT WOULD HAVE BEEN COMPLETE AUGUST 4TH. SEEM LIKE THE FIRST STEP IN THE PROCESSES, HOW MANY OF THE EXISTING CIP ARE CONTINUING FORWARD? IF YOU WERE TO GET THAT TO THE COUNCIL THEN ALL OF US COULD BEGIN EARLIER TO BE LOOKING AT, BECAUSE THERE'S FOUR YEARS LEFT THAT WE HAD ALREADY LOOKED AT. I'M NOT TRYING TO MAKE THIS COMPLICATED. I'M TRYING TO JUST SAY THAT WOULD ENABLE SOME BEGINNING SNAPSHOT BECAUSE IT WOULD JUST LITERALLY BE TAKING THE TABLE OF CONTENTS OF LAST YEAR'S BOOK. BECAUSE THE NUMBERS ARE CHANGING WITH INFLATION AND STUFF LIKE THAT. SO YOU REALLY CAN'T LOOK AT THE PRICE, BUT YOU CAN LOOK AT THE PROJECT TO BEGIN TO COME UP TO SPEED. I THINK THAT WOULD HOPEFULLY GIVE SOME INFORMATION BECAUSE IT SHOULD BE ABLE TO BE DONE PRETTY QUICKLY. >> MR. MAYOR, WE'VE ACTUALLY WORKED ON SOMETHING SIMILAR TO WHAT YOU'RE ASKING FOR ALREADY. AS YOU KNOW, THE MASTER PLAN HAS BEEN REVIEWED. THERE'S SOME CHANGES IN SOME OF THE CIPS RELATING TO WATER AND STORMWATER ALONG WITH THE REGULAR TOWN CIP. WE ALREADY STARTED PREPARING A LIST IF YOU MAY, OF THOSE LEGACY PROJECTS, AND WHICH ONES HAVE ROLLED OFF THE FUNDING THAT IS CURRENTLY AVAILABLE GOING FORWARD TO SAVE YOU FROM HAVING TO PULL OUT THE BOOKS AND DO THAT COMPARISON. WE'VE ALREADY STARTED PREPARING A LIST LIKE THAT. [OVERLAPPING] >> THEN THE ASK IS WHATEVER YOU CAN GIVE PRACTICALLY IN THE NEXT WEEK OR SO, AND THEN ALL IT DOES IS IT ENABLES AN EARLIER START. >> IT SHOULDN'T BE AN ISSUE. >> GREAT. >> THANK YOU. >> YEAH. WE STARTED PREPARING THE CIP EARLIER THIS YEAR DUE TO THE INFLATIONARY ISSUES. WE WANTED TO SEE WHAT THOSE PROJECTS LOOK LIKE. ALSO, THE MASTER PLAN WAS BEING WORKED ON BY DAVID AND HIS CONSULTANTS. WE WERE ABLE TO GET THOSE DOCUMENTS EARLIER. USUALLY, WE'RE WORKING THESE CIPS RIGHT UP TO THE DEADLINE TO SUBMIT IT TO THE COUNCIL BUT WE WANTED TO START IT A [01:55:02] LITTLE BIT EARLY THIS YEAR BECAUSE OF THOSE ISSUES. >> GREAT. OKAY. >> IF I MAY, I CAN GO AHEAD AND START OVER AGAIN RELATING TO THE PROPOSED FLAT MILLAGE OF 2.4633, WHICH AGAIN, YOU'LL BE HEARING IN JULY AT THE TRIM HEARING. >> THE FLAT MILLAGE ASK IS ARE WE OKAY WITH THAT BEING A TRIM MILLAGE? I'M YES. I SAY THAT BECAUSE I DON'T SEE A NEED TO GO ANY HIGHER. THAT'S THE ASK. YOU'RE NOT COMMITTING THAT YOU'RE NOT GOING TO TRY TO FIND SOME SAVINGS TO GO DOWN, WE'RE TALKING ABOUT. I'M OKAY WITH THAT AS A TRIM NUMBER. >> I AGREE. >> I AGREE. [OVERLAPPING] >> CONSENSUS. >> THE 85/15 [NOISE] SPLIT BETWEEN THE OPERATING AND THE CIP. NOW RECOGNIZING THAT YOU HAVE NOT SEEN THE CIP, BUT I WILL TELL YOU IN WORKING THE CIP CASH FLOWS, I STARTED THAT PROCESS EARLIER. WE ARE CURRENTLY IMBALANCED WITH THE AD VALOREM AS IT SITS WITH THE AD VALOREM RATE THAT'S BEING PROPOSED, THAT THE CIP IS IMBALANCED BASED ON THE CURRENT PROJECTS THAT ARE THE LEGACY PROJECTS THAT ARE CURRENTLY IN THE CIP AND PROPOSED BY THE COUNCIL AND STAFF GOING FORWARD. THAT DOESN'T MEAN THAT THE COUNCIL CAN OBVIOUSLY ADD PROJECTS TO THE CIP BUT RIGHT NOW, THE FUNDS ARE AVAILABLE. >> YOU SAID THAT NO ADDITIONAL NEED FOR ADDITIONAL FUNDING. I'M HAPPY WITH THE 85/15 SPREAD. >> OKAY. >> CONSENSUS FOR NOW. BASED ON WHAT WE KNOW, THAT CAN CHANGE. >> I JUST WANT TO LOOK AT THE WHOLE THING. >> NO, I UNDERSTAND. >> AN 85/15 IS A STANDARD. [OVERLAPPING] >> THAT'S WHAT WE'VE BEEN USING FOR YEARS. >> FOR YEARS, RIGHT? >> WE HAVE USED IT FOR YEARS. [OVERLAPPING] >> I UNDERSTAND. BUT WE CAN ALWAYS CHANGE IT. >> [INAUDIBLE] HAVE TO LOOK AT. >> AT THIS POINT IN TIME, WE'RE GIVEN A SNAPSHOT THAT PERCENTAGE GOING TO CAP BECAUSE WHAT HAPPENS IS IT WAS SOME YEARS WHERE WE GAVE UP CAPITAL TO COVER AN OPERATING. >> DURING THE RECESSION. >> THEN WE MADE UP. JUST FOR RIGHT NOW, BASED ON WHAT WE KNOW, LET'S CONTINUE WHAT'S BEEN THE LONG-TERM SPLIT, 85/15, AND IT COULD CHANGE WHEN WE GET TO KNOW MORE. >> I JUST HAVE TO RESERVE COMMENT UNTIL I SEE MORE. >> I UNDERSTANDING. >> WE'RE NOT MAKING DECISIONS. WE'RE JUST TALKING ABOUT. GIVEN THAT, THAT'S BEEN PAST PRACTICE, SAME WITH THE MILLAGE RATE. WE'RE REALLY CAREFUL WHEN WE THINK TO CHANGE IT. >> YEAH. BUT IF ON THE OTHER HAND, FOR EXAMPLE, COUNSELOR SNYDER WAS SAYING, "NO, I WANT TO GO TO 80," THEN I'D RATHER HAVE HER ALREADY SAY THAT. I GET IT. YOU DON'T KNOW YET. I DON'T KNOW COMPLETELY, BUT 85/15 HAS WORKED. GREAT. >> THE HEALTH INSURANCE, THE NO PREMIUM INCREASE FOR THE EMPLOYEES. >> I AGREE. >> AGREED. >> THE MAINTAINING OF THE HSA SUBSIDY OF $824,000. >> THAT'S PART OF THE HEALTH INSURANCE. >> THE INFLATIONARY SUBSIDY OF THE $1,400 PER EMPLOYEE, $414,000 IMPACT ACROSS ALL FUNDS. >> IT COULD INCREASE, IT'S OPEN-ENDED. THAT'S THE MINIMUM? >> ONE TIME. >> THAT'S THE ONE TIME. >>THAT'S THE ONE TIME. BUT EVEN ON THIS, WHAT HE'S ASKING US FOR RIGHT NOW, POLICY GUIDANCE, EVERYTHING IS SUBJECT TO CHANGE AS IT GOES ON. BUT THE QUESTION IS, AS A STARTING POINT, DOES IT SEEM LIKE THAT'S SOMETHING YOU COULD SUPPORT? I'D SAY YES. >> I AGREE. THIS IS THE THING I'VE BEEN STRUGGLING MOST WITH. IF YOU TALK TO THE TOWN MANAGER JUST A EMPLOYEE COMPENSATIONS, ABSOLUTELY. WHETHER IT BE A PERCENTAGE INCREASE OR WHAT IT LOOKS LIKE, I AGREE THAT WE WANT TO DO AS MUCH AS POSSIBLE FOR OUR EMPLOYEES, BUT WE DO ALSO WANT TO BE MINDFUL OF THE COST AND YOU WANT RECURRING REVENUE WITH A RECURRING COST, SO I UNDERSTAND. I'M STILL STRUGGLING WITH IT. I'M GLAD WE HAVE MORE TIME BUT THAT HAS BEEN THE SINGLE BIGGEST ITEM FOR ME, I HAVE TO SAY. >> EXPERIENCE. DON'T BELIEVE THAT WE ALL STRUGGLE EQUAL. [LAUGHTER] JUST SOMETIMES YOU THINK YOU'RE THE NEW PERSON, SO THAT'S WHY YOU'RE STRUGGLING. NO, WE ALL ARE. THE PROCESS WORKS. AFTER THIS WORKSHOP, I'M TALKING TO THE TOWN MANAGER ALL THE TIME, I KNOW YOU MEET WITH HIM REGULARLY. THAT'S THE WAY THE PROCESS WORKS. I WANT TO ASSURE EVERYBODY SO THEN HE'S HEARING FROM EVERYBODY INDIVIDUALLY AND IT MAY PIVOT TO SOMETHING ELSE BY THEN. THIS IS THE ONLY TIME WE CAN TALK AND WE'VE HEARD EACH OTHER, [02:00:02] BUT WE STILL CONTINUE. THAT'S THE WAY IT WORKS. YOU BETTER BELIEVE I'M GOING TO BE TALKING WITH HIM ON A WHOLE BUNCH OF BUDGET STUFF BETWEEN NOW AND THEN. THAT'S THE WAY IT WORKS AND I HAVE NO DOUBT OTHERS UP HERE ARE GOING TO DO LIKEWISE. THAT IS THE PROCESS. >> IN MY RESEARCH I'VE BEEN LOOKING AT WHAT OTHER MUNICIPALITIES ARE DOING, WHAT THE STATE IS DOING, WHAT THE COUNTY IS DOING, AND YOU DO SEE THE PERCENTAGE COME UP AND IT VARIES. THAT IS SOMETHING I'VE BEEN LOOKING UP. >> ON THAT ACCOUNT, BY THE WAY, I HAPPEN TO HAVE HAD A MEETING WITH SOME MAYORS RECENTLY. I GOT THE FEEDBACK ABOUT THE SIX PERCENT. NOW THAT WASN'T ADOPTED, SO IT COULD CHANGE. BUT ALSO JUST IN A POINT OF MAKING IT CLEAR, I HAD AN UNDERSTANDING THAT SOME OTHER ENTITIES WERE IN LINE WITH THE RECOMMENDATIONS COMING IN AND STARTING AT SIX PERCENT. THAT'S WHAT INFLUENCED ME TO TRY TO MAKE SURE WE WERE STAYING CONSISTENT AND THAT BY THE WAY, THAT WAS THE GARDENS IN THE COUNTY. AGAIN, THAT WAS NOT ACTED UPON BY COMMISSIONERS, BUT THAT INFLUENCED ME TOO. JUST SO YOU KNOW. >> THERE ARE OTHERS THAT ARE DOING FIVE PERCENT. I THINK THE STATE HAD FIVE.3 PERCENT. IT IS IMPORTANT WHILE I DO ALWAYS LOVE TO LOOK AT WHAT OTHER MUNICIPALITIES ARE DOING, WE ALSO NEED TO LOOK AT THE UNIQUE SITUATION THAT JUPITER IS IN. WE HAVE LESS NEW CONSTRUCTION THAN PALM BEACH GARDENS, CERTAINLY. WE HAVE A NEW TOWN MANAGER WHO'S EVALUATING OUR STAFFING STRUCTURE AND HE'S MADE THAT HIS HIGHEST PRIORITY TO TAKE CARE OF OUR EMPLOYEES. TO SOME EXTENT, WHEN THIS IS COMING TO YOU, YOU WANT TO RESPECT WHERE IT'S COMING FROM. WE HAVE A LOT OF VARIABLES THIS YEAR AND NEXT YEAR. IT WEIGHS ON ME HEAVILY AND THAT'S JUST SOME OF MY THOUGHT PROCESS TO THE EXTENT THAT I CAN SHARE IT WITH YOU ALL AS WE DELIBERATE AND ITERATE. >> IT COMES DOWN TO THE HEALTH OF THE ENTIRE ORGANIZATION. THE SCHOOL MORALE. RETAINING EMPLOYEES. I TRY TO LOOK AT THE WHOLE BIG PICTURE. BUT IT'S GOOD WHERE EVERYBODY IS USED NOW AND PROCESS IT. >> [OVERLAPPING] BUT IT IS THE TOTALITY OF IT AND WE'RE NOT AT THE POINT THAT YOU KNOW THE TOTALITY YET. I COULD AGREE WITH YOU, NONE OF US DO. BUT THIS WE'RE TRYING TO CONVERGE WHEN THINGS ARE STILL MUSHY AND WHATEVER, IT'S A WORKSHOP. >> YOU'RE THINKING SIX PERCENT AND THE SUBSIDY? >> YEAH. >> JUST UNDERSTANDING. >> I KNOW IT WILL SURPRISE PEOPLE I WANTED TO THROW IT OUT THERE. >> NO, I LOVE IT TO BE HONEST BUT I JUST WANTED TO MAKE SURE THAT IT'S REALISTIC. IT'S REALLY DIFFICULT. >> I THINK THE TAKEAWAY FOR US IS THAT WE'RE MOVING IN THE RIGHT DIRECTION ACCORDING TO WHAT YOU ALL ARE SAYING HERE. WHAT THAT ACTUALLY TURNS OUT TO BE IN THE END IS YET TO BE SEEN. >> AM I HEARING FROM THE COUNCIL THAT REGARDING THIS, POSSIBLY WITH THE NEXT REITERATION OF THE BUDGET, TO HAVE A SIX PERCENT BASE PAY INCREASE, AND THEN IN ADDITION TOO, HAVE THE INFLATIONARY SUBSIDY THAT'S CURRENTLY BEING PROPOSED? >> I'M NOT SURE IF WE ARE THERE YET. >> YEAH, I DON'T THINK WE ARE THERE. >> I'M NOT SURE WE'RE THERE YET, BUT YOU SHOULD. >> I'D LIKE TO SEE WHAT THAT LOOKS LIKE. IT'S ALL A MATTER OF TRADEOFFS AND WHAT WE CAN MAKE WORK. I'D LIKE TO KNOW IF THOSE NUMBERS ARE SO THAT WE MAKE A FINAL DECISION. WE CAN SEE WHETHER WE CAN FIT IT IN OR NOT. >> FIVE PERCENT, SIX PERCENT. >> WHAT IF WE GET DIFFERENT NUMBER, DIFFERENT SCENARIOS AND DEPENDING WHERE WE ARE, WE'LL HAVE MORE INFORMATION NEXT TIME WITH THE REAL NUMBER. >> IF YOU'D LIKE WHEN WE SUBMIT THE CIP LEGACY LIST, WE CAN ALSO PROVIDE SOMETHING IN YOUR PACKET FOR THAT AS WELL. >> IT'S NOT SOMETHING YOU CAN SPRING A CHANGE LIKE THAT AT THE END OF THE PROCESS. WE REALLY HAVE TO SAY, WELL, LET'S THINK ABOUT THAT. THAT'S ALL THIS WORKSHOP IS ABOUT. >> THE COUNCIL ANNUAL CONTRIBUTIONS. >> WE'VE TALKED ABOUT THAT. THAT'S A WORK IN PROGRESS WITH THE SURVEY AND WE'LL BE DIALOGUING ABOUT IT OR WHATEVER. >> BUT I MEAN OVERALL JUST SO THAT WE CAN SHARE ANY THOUGHT. I'VE SHARED SOME BEFORE, BUT I AGREE TO THE 50,000. MANY TIMES COUNCIL HAS GIVEN THAT MUCH, 25 ALMOST AS [INAUDIBLE]. WE ALWAYS GIVE MORE IN PREVIOUS YEARS, SO IT'S NOT VERY TRANSPARENT. I WORRY ABOUT CREATING EXPECTATIONS TOO. I'M THINKING ABOUT THE LIMITS AND WANTING FLEXIBILITY FOR THOSE YEARS WHEN SOME EXTRAORDINARY REQUEST COMES IN. I WOULDN'T NECESSARILY BE SUPPORTIVE OF LIMITING EACH APPLICANT TO A CERTAIN AMOUNT BECAUSE THAT MAY VARY AS WELL. I'M LOOKING FOR FLEXIBILITY, [02:05:01] BUT I LIKED THE HARD 50,000 AND WE DON'T GO ABOVE IT AND WE MAKE CLEAR THE EXPECTATIONS. I HAD A RESIDENT THAT ASKED ME, WELL I CAN DONATE TO CHARITY, I CAN DONATE TO AN ORGANIZATION OR A NON-PROFIT, WHY IS GOVERNMENT DONATING FOR ME? OR CHOOSING. WE HAVE TO BE CAREFUL WITH THE REQUIREMENTS, OR THOUGHTFUL ABOUT WHAT ARE WE TRYING TO ACHIEVE HERE? THERE MUST BE SOME PURPOSE FOR IT. THAT'S MY THOUGHT PROCESS ON THAT. >> A GOOD AMOUNT OF SOME ORGANIZATIONS, THEY RAISE A LOT OF MONEY ON THEIR OWN WITHOUT OUR HELP. IT'S NOT LIKE WE'RE THE ONLY SOURCE OF THEIR REVENUE. I AGREE WE HAVE TO BE CAREFUL WITH THAT. >> THE BIGGEST THING ON THAT WILL BE THE GUIDANCE FOR NEXT YEAR WHEN THEY GO OUT AND THEY ASK FOR PEOPLE TO SUBMIT BECAUSE THAT SHAPES THE EXPECTATION. IF YOU SAY NOTHING AND SAY, HEY, FREE FOR ALL. >> ABSOLUTELY. >> WE'RE GOING TO GET A QUARTER MILLION DOLLARS UNASKED. >> I AGREE. >> THE COMMUNITY HOLIDAY DECORATIONS BUDGET OF $75,000. AGAIN, THAT WAS ANOTHER COUNCIL ASK. RIGHT NOW WE'VE SET THE BUDGET TO $75,000. SOMETHING TO CONSIDER. >> REASONABLE NUMBER. >> I'M SORRY. >> REASONABLE NUMBER. >> [OVERLAPPING] COMING FROM A MAN WHO KNOWS A LOT ABOUT [INAUDIBLE] >> I THINK YOU COULD PROBABLY TAKE CARE OF IT YOURSELF. [OVERLAPPING] IT'S ALL AROUND TOWN. [INAUDIBLE] EXTRA LIGHTS. >> YOU GOT SOME EXTRA STUFF UP IN THAT ATTIC. >> I DO. >> THERE WE GO. THE EXTRA INFLATABLES. [LAUGHTER] >> I ALSO THINK THAT WAS COUNSELOR MAY'S ASK. >> IT WAS COUNSELOR MAY'S. >> I THINK HE SHOULD BE HERE READY. NOTHING FINAL UNTIL HE'S HERE. >> ALL I'M SAYING IS IT WAS HIS ASK. I'VE GOT GRATITUDE FOR HIM DOING IT.THAT'S NOT AN UNREASONABLE NUMBER. >> NO, IT'S NOT. >> WHEN YOU'RE TALKING ABOUT A TOWN DECLARATION HERE. >> I'D LIKE TO SEE WHAT THAT GETS US. >> LIKEWISE, BUT THAT'S WHAT THEY WERE GOING TO BE WORKING ON, RIGHT? >> TRUE THAT BUT IS IT DEL REY THAT HAD THE MILLION DOLLAR CHRISTMAS TREE? >> THEY BOUGHT A MILLION DOLLAR CHRISTMAS TREE A FEW YEARS AGO. >> THAT IS SOMETHING. >> [OVERLAPPING] AFRICAN COMMUNITY EVENTS. TRULY LIGHTING. >> RIGHT. >> I'M NOT SUGGESTING A MILLION DOLLAR LIGHTING, BUT I'M JUST SAYING WE DON'T HAVE ANY EVENT ASSOCIATED WITH THAT AND I THINK THAT'S WHAT COUNSELOR MAY WAS TRYING TO CREATE. YOU'RE NOT GOING TO DO THAT WITH FEW $100 GOING TO HOME DEPOT TO GET LIGHTS. >> I'M SURE YOU COULD. [LAUGHTER] >> THE LAST ITEM ON THE LIST, THE PROPOSED UTILITY RATE INCREASE OR THE INDEXING THAT YOU'VE SEEN IN THE BUDGET. I KNOW YOU ALL TALK ABOUT IT THIS EVENING. >> I THINK WE HAD COMMENTED ON THAT. I SAID I WAS OKAY WITH THE 4.5 PERCENT. >> I WANTED MORE INFORMATION AND LOOKING THE WHOLE THING. >> NO, I UNDERSTAND. BUT THE POINT IS, I GUESS WHAT THEY REALLY NEED IS PROBABLY IF YOU GO UP, THERE'S NO ISSUE GOING UP, BECAUSE WHAT WE GOT WAS A RECOMMENDATION FROM THE TALENT MANAGER. WILSON ASKED TO GO 7.5 PERCENT THIS YEAR AND NEXT YEAR IT WAS OKAY. HE'S ASKING FOR 4.5. THANK YOU. I SUPPORT THAT. I'M JUST SAYING THAT WE CAN GO BACK UP FURTHER, BUT I'M JUST WEIGHING IN UNDER THAT CONTEXT. >> YEAH, I THINK WE'LL PROBABLY NEED AN INCREASE WITH THE INFLATION AND WITH ALL THESE COSTS, JUST REALISTICALLY AS AN ENTERPRISE FUND, THEY RELY ON THE RATE. THAT'S HOW THEY MANAGE THEIR COSTS. BUT I DO WANT TO LEARN A LOT MORE ABOUT IT. I WELCOME THE OPPORTUNITY TO DO SO. >> WAS THERE ANYTHING ELSE THAT WAS PARKING LOTTED? I DON'T THINK SO. THAT WE DIDN'T ALREADY COVER. WE COVERED THE CIP INPUT CENTER. WE TALKED ABOUT SALARY ADJUSTMENT, WHICH WASN'T ON HERE. >> THE MSC DETAIL THAT YOU REQUESTED, THE FRANCHISE FREE AND UTILITY TAX INCREMENTS THAT YOU WANTED TO HAVE AN ANALYSIS ON THAT, ON THE INCREASES, THE COMMUNITY DONATIONS WE JUST TALKED ABOUT, THE FIVE-YEAR PLAN FOR THE STORM WATER YOU WANTED TO HAVE POSSIBLE WORKSHOP ON THAT COMING FORWARD. A LITTLE BIT MORE DETAIL ON THAT. THE CIP A LITTLE BIT EARLIER, WHICH WE'RE GOING TO PROVIDE THE LEGACY LIST FOR YOU. I BELIEVE THAT'S IT. >> I THINK YOU'VE SAID THIS EITHER TONIGHT OR IT'S IN THE DOCUMENTATION, BUT WHAT'S THE INFLATION BEEN OVER? WHAT WAS INFLATION IN 2021? >> IT WAS LOW. I'M NOT SURE, BUT I CAN GO OVER [OVERLAPPING] I'LL GET IT. >> GET US THAT BECAUSE THAT CREATES THE PERSPECTIVE OF THE BACKDROP OF WHAT WE'RE TRYING TO ADJUST FOR WHEN WE THINK ABOUT COMPENSATION. [02:10:01] I JUST WANTED TO HAVE THAT IN MIND. WELL, I SURE HOPE GAS PRICES ARE GOING TO COME DOWN. I DON'T SEE PRICES IN GENERAL COMING DOWN A LOT. >> IT'S ALL RELATED TO FUEL. >> A LOT OF IT'S RELATED TO FUEL, BUT IT'S ALSO WITH COST OF LABOR. THINK ABOUT IT. WE CAN'T GET LABOR TO DO THE COMMUNITY CENTER PROGRAMS AND STUFF, RIGHT? >> LABORING TOO MANY DOLLARS, CHASING TOO FEW PRODUCTS. IT'S EVERYTHING THAT'S [OVERLAPPING] >> JUST TO COMMENT. I ACTUALLY DO HAVE THAT NUMBER. I WENT BACK AND LOOKED AT THE CIP INDEXING THAT I HAD THE CHARTS. YOU'RE LOOKING ON AN AVERAGE ABOUT 2.9 PERCENT. >> WHAT'S THAT? >> THE INFLATIONARY COSTS. YOU'D ASKED ABOUT THAT WAS ABOUT 2.9 PERCENT COMPARED TO THE 8.4. >> TWO POINT NINE COMPARED TO 8.4? >> IN 2021? >> YEAH. >> YOU'D ASKED WHAT THE INFLATIONARY NUMBER WAS BACK IN 2021. >> YEAH. >> THAT WAS ABOUT 2.9. >> IS THAT FOR THE ENTIRE YEAR THROUGH 12/31. >> RIGHT. >> TO 12/31 IS 2.9 PERCENT. >> THEN NOW YOU'RE LOOKING AT BASED ON THE NUMBER I HAVE HERE ABOUT 8.4. >> THAT'S A 12 MONTH ROLLING AVERAGE? >> THE 12-MONTH ROLLING AVERAGE IS THE 6.93 THIS CURRENT EAR. >> GOT YOU. 6.93. >> I HAVEN'T UPDATED THE CHART. I CAN UPDATE THE CHART. >> EXACTLY. SO WE PROJECT OUT AN ADJUSTMENT IN JANUARY. THAT'S WHERE I WAS COMING FROM, BUT OKAY, THANK YOU. THAT'S HELPFUL. WE ALL CAN GO AND LOOK AT THAT INFLATION INDEX, BUT IT WOULDN'T BE BAD IF YOU KEEP IT FRONT AND CENTER FOR US. >> ABSOLUTELY. >> INTO THE WEEKLY REPORT ONCE A MONTH OR SOMETHING LIKE THAT. >> SURE. I HAVE A QUARTERLY REPORT WE'RE GETTING READY TO COME OUT. I'LL DEFINITELY MAKE SURE TO INCLUDE THAT IN THERE. THAT'LL DEFINITELY BE INSTRUMENTAL IN THAT REPORT. >> YEAH. >> WITH THAT, MY PRESENTATION IS COMPLETE UNLESS THERE IS ADDITIONAL ITEMS THE COUNCIL WOULD LIKE TO DISCUSS. >> ANYTHING ELSE YOU WANT TO DISCUSS COUNSELOR? >> NO, NOT REALLY. I HAVE LEARNED A LOT ABOUT THE MILLAGE AND I'VE BEEN FOLLOWING THE SCHOOL BOARD DISCUSSIONS AND THEIR VALUATION AS WELL BECAUSE THAT WAS ONE OF THE COMMITTEES THAT I HAD VOLUNTEERED FOR AND I DIDN'T KNOW ACTUALLY BECAUSE IF YOU LOOK AT THE PIE CHART OF THE MILLAGE AND WE ONLY HAVE 14 PERCENT. ON THE SCHOOL SIDE, YOU LOOK AT THE SCHOOL DISTRICT AND IT'S HUGE, BUT IT'S ACTUALLY TWO MILLAGE RATES. I DIDN'T KNOW THAT ONE OF THEM IS FOR THE COUNTY AND THE OTHER FOR THE STATE. THE COUNTY IS LOWER. COUNTY MILLAGE IS LOWER. LEARN SOMETHING NEW EVERY DAY. IT'D BE INTERESTING TO SEE HOW THEY GO FORWARD WITH THAT. >> I THINK WE'VE READ IT EVERYTHING FOR TONIGHT. I'M READY TO GO HOME AND HAVE DINNER. >> YEAH. [LAUGHTER] >> ME TOO. >> THANK YOU FOR ALL THE HARD WORK AND THE INFORMATION THAT [OVERLAPPING] >> THANK YOU. >> [INAUDIBLE]. >> THAT'S NOT A NUMBER FOLKS. >> IT'S A GROUP EFFORT HERE EVERYBODY LIKE MR. CASTRO SAID, STAFF EVERY YEAR WORKS VERY HARD ON THIS FOR THE COUNCIL. THE COUNCIL I KNOW IS DOING SOME HEAVY LIFTING THEMSELVES, SO WE APPRECIATE YOUR HELP TOO. >> GREAT INFORMATION PACKAGE. I KNOW THERE'S BEEN AN AWESOME AMOUNT OF WORK TO GET US TO THIS POINT. WE APPRECIATE STAFF'S EFFORT. THANK YOU. >> I APPRECIATE THIS BUDGET SEASON EVERY YEAR BECAUSE YOU GUYS JUST KEEP IT, TO PUT IT ALL TOGETHER, IT'S A CONCISE AND PERFECT UNDERSTANDING. > A VERY NICE JOB, EVERYBODY. >> THANK YOU. MEETING ADJOURNED. [NOISE] * This transcript was compiled from uncorrected Closed Captioning.