[00:00:03]
>> GOOD EVENING. THE TIME IS NOW 6:00 P.M. AND I'LL
[Call to Order]
CALL TO ORDER THE TOWN COUNCIL WORKSHOP OF JUNE 22.MAY WE HAVE A ROLL CALL, PLEASE?
>> I GUESS I'LL TURN IT OVER STAFF.
[1. Discussion of Proposed Operating Budget for Fiscal Year 2024.]
>> THANK YOU, MAYOR. BEFORE MR. REYNOLDS BEGINS THE PRESENTATION ON THE BUDGET TONIGHT AS HE'S SETTING UP.
I JUST WANTED TO SHARE WITH YOU A FEW QUICK THOUGHTS REGARDING THE BUDGET AND FOCUS ON WHAT THE MAJOR THEMES OF THE BUDGET PREPARATION FOR THIS YEAR HAS BEEN.
WE FOCUSED IN THREE PRIMARY AREAS: PUBLIC SAFETY, INVESTING IN OUR EMPLOYEES, AND POSITIONING THE ORGANIZATION FOR FUTURE CHALLENGES.
ALL OF WHICH LEADS TOWARDS OUR ULTIMATE GOAL OF PROVIDING EXCEPTIONAL SERVICE LEVELS.
AS MR. REYNOLDS GOES THROUGH THE BUDGET TONIGHT, HE'LL TAKE THE TIME TO TARGET WHAT THESE AREAS ARE AND EXPLAIN FURTHER ON THAT.
WITH THAT, I'LL TURN IT OVER YOU, SCOTT.
>> GETTING THE MAYOR, COUNCIL, SCOTT REYNOLDS, FINANCE.
JUST ONE THING I WANT TO POINT OUT BEFORE I START ON MY PRESENTATION IS IN YOUR PACKET.
SOMETHING NEWS THAT WE'VE BEEN ABLE TO PRODUCE THIS YEAR.
WE'VE HAD QUESTIONS FROM COUNCIL MEMBERS LAST YEAR IN REGARDS TO SOME OF THE REVENUES FROM THE TOWN AND HOW THEY'RE DERIVED AND WHERE THEY'RE DERIVED FROM.
WE SPENT THE TIME WE PUT TOGETHER A REVENUE MANUAL WHICH WE LOOK AT IT AS A COMPANION DOCUMENT TO THE BUDGET, SO STAFF HAS WORKED HARD ON THAT.
I JUST WANT TO MAKE SURE TO POINT THAT OUT AND THAT IS IN YOUR PACKET.
>> HI, SCOTT. WAS CLEARLY A SIGNIFICANT EFFORT, SO THANK YOU FOR PUTTING IT TOGETHER.
WHEN I LOOKED AT IT I WAS STUNNED BECAUSE I KNOW THE AMOUNT OF WORK AND HAD TO TAKE, SO THANK YOU.
>> THANK YOU. FOR THIS YEAR, JUST THE OVERVIEW OF THE BUDGET, PROJECTING A FLAT MILLAGE RATE OF 2.4633.
TOWN WIDE VALUATION INCREASE AT 12.32% RESULTING IN $1.7 BILLION GROSS VALUATION INCREASE OVER FY2013.
CONTINUING ALONG WITH THE DISTRIBUTION OF AD VALOREM TAXES BETWEEN THE OPERATING AND THE CIP AT 85/15.
THERE'S ONE THING TO NOTE, THERE IS A ONE-TIME TRANSFER THAT'S BEING PROPOSED FROM THE GENERAL FUND TO THE CIP FOR THE TOWN HALL GREEN PROJECT, WHICH ALSO CONSISTS OF THE DEMOLITION OF THE CURRENT BUILDING, WHICH ARE HAVING THIS HEARING IN THIS EVENING.
LAST YEAR, WE ACTUALLY HAD PROJECTED 1.5.
WE WERE ABLE TO ADD AN ADDITIONAL $500,000 TO THAT PROJECT COST BASED ON DISCUSSIONS THAT YOU'RE GOING TO HAVE IN THE FUTURE ON THE CIP REGARDING THAT PROJECT.
NET INCREASE, AN AD VALOREM TAXES, $3.3 MILLION.
JUST WANTED TO POINT THAT OUT WITH A FLATTENED MILLAGE.
THE WATER FUND, WE PROMISED THE COUNCIL LAST YEAR THAT WE WOULD LOOK AT THE WATER FUND FROM A STATIC VIEW YEAR OVER YEAR.
BASED ON SOME OF THE PROJECTS, WE HAVE A NUMBER OF LEGACY PROJECTS AND ALSO ROLLING FORWARD INTO THE FUTURE.
WE'LL TALK MORE ABOUT THAT AS WE GET INTO THE CIP, ABOUT THE CAPITAL PROJECTS.
BUT WE LOOK OPERATIONAL WISE TO SEE WHAT THE NEEDS OF THE UTILITY ARE.
WE START OFF WITH POSSIBLY A THREE PERCENT INCREASE.
WE LOOKED AT THE NATIONAL INDEX, WHICH IS AT 4.5 FOR THE CPIU, AND THEN ANY INFLATIONARY COSTS INCREASES THAT MAY BE NECESSARY, WHICH AT THIS POINT IS AT A 2.5% FOR A TOTAL OF SEVEN PERCENT RATE INCREASE FOR THE WATER UTILITY IS BEING PROJECTED.
FOR THE STORMWATER UTILITY, SEVEN PERCENT INCREASE OVERALL IN THE RATE FOR THE STORMWATER UTILITY.
AS WE ALL KNOW, THERE'S MORE PROJECTS THAN THERE ARE DOLLARS RELATING TO THE STORMWATER UTILITY, BUT WE FILL UP THE SEVEN PERCENT RATE INCREASE WILL, AS YOU'LL SEE IN THE PRESENTATION, KEEPS US COMPETITIVE IN THE MARKET, BUT ALSO WILL HELP FUND THE CAPITAL AND OPERATING COST OF THE UTILITY.
THE BUILDING FUND CONTINUE TO SEE INCREASES IN REVENUE THERE AND THOSE ARE THOSE ONE-OFF PROJECTS.
FOR EXAMPLE, THE HOSPITAL, AS WE ALL KNOW, THAT WAS A VERY LARGE PROJECT.
LOT OF LARGE PERMANENT REVENUE COMES IN FOR THESE ONE-OFF PROJECTS THAT HAPPENED THROUGHOUT THE YEAR.
WE'RE PROJECTING POSSIBLY A $200,000 INCREASE IN THOSE PERMANENT REVENUES.
OVERALL, A 7.2 MILLION DOLLAR INCREASE ACROSS ALL FUNDS IN THE OPERATING.
[00:05:06]
IF YOU REMEMBER RIGHT LAST YEAR WAS JUST OVER $12 MILLION INCREASE, 22-23.THE AD VALOREM REVENUE ASSUMPTIONS.
AGAIN, WE'RE LOOKING AT A 12.32%.
[INAUDIBLE] OH, NO. SORRY. THANK YOU.
NOW, THIS IS AN EARLY ESTIMATE THAT'S PROVIDED.
WE KNOW THE TRIM IS JUST RIGHT AROUND THE CORNER.
WE WILL RECEIVE A TRIM ESTIMATE AT THE END OF NEXT WEEK IS WHAT I'VE BEEN TOLD BY THE PROPERTY APPRAISER.
YOU'LL BE ASKED TO SET TRIM IN THE MIDDLE OF JULY.
BUT THIS IS AN ESTIMATE THAT'S PRODUCED BY THE PROPERTY APPRAISER FOR PLANNING PURPOSES.
I'M ANTICIPATING A SMALL UPTICK IN THAT, MAY NOT BE VERY MUCH, BUT 12.32% INCREASE OVERALL IN THE VALUATIONS.
AGAIN, PROJECTED TO MAINTAIN THE MILLAGE AT 2.4633.
THAT'S WHAT THESE ESTIMATES ARE BASED ON THAT YOU'LL SEE IN THE BUDGET, THE CIP AND OPERATING SPLIT OF 85/15.
HOW DOES THAT TRANSLATE DOLLAR-WISE BETWEEN THE INDIVIDUAL FUNDS? OVERALL INCREASE OF JUST OVER $4 MILLION, WHICH INCLUDES AN INCREASE IN THE CIP, THE CRA, AND THE GENERAL OPERATING.
3.3 MILLION DOLLAR INCREASE IN THE GENERAL FUND OPERATING WITH THE AD VALOREM, $584,000 INCREASE IN THE CIP AND $162,000 IN THE CRA.
WE'VE SEEN THIS CHART BEFORE FROM A HISTORICAL PERSPECTIVE TO SEE WHAT THE TOTAL VALUE INCREASES LOOK LIKE AND THEIR PERCENTAGES.
THAT'S THE ORANGE LINE THAT YOU SEE THERE IS THE PERCENTAGE INCREASE.
JUST TO SHOW FROM A PERSPECTIVE OF THERE'S ALWAYS SOME CORRECTION WHEN YOU SEE THESE LARGE UPTICKS SPEAKING WITH THE PROPERTY APPRAISER, I WENT TO A MEETING WHICH THEY PRESENTED US WITH THESE EARLY ESTIMATES.
THERE IS STATING THAT THIS IS STARTING TO LEVEL OFF.
WE ALL KNOW THAT THERE HAS BEEN A LOT OF NEW HOUSING SALES THAT HAVE BEEN OCCURRING AS WELL AS NEW CONSTRUCTION WITHIN PALM BEACH COUNTY.
WHERE NUMBER 2 IN THE STATE AS FAR AS VALUATION, I WANTED TO SHARE THAT AS WELL.
MIAMI-DADE BEING NUMBER 1 AS FAR AS TOTAL VALUE, PALM BEACH COUNTY BEING NUMBER 2.
WE'VE DEFINITELY BEEN A BENEFICIARY OF WHAT'S BEEN HAPPENING IN THE REAL ESTATE MARKET.
HOW DO THOSE EVALUATIONS LOOK AS FAR AS TOTAL VALUE COMPARED TO NEW CONSTRUCTION? IF YOU REMEMBER RIGHT, LAST YEAR, WE HAD JUST OVER 1%.
I BELIEVE IT WAS 1.01% OF THE TOTAL VALUE INCREASE WAS RELATED TO NEW CONSTRUCTION.
THIS YEAR, WE'RE LESS THAN HALF A PERCENT IN NEW CONSTRUCTION.
ONCE I SOLVE THESE NUMBERS, I MADE CONTACT WITH OUR BUILDING DEPARTMENT, AND OUR PLANNING AND ZONING DEPARTMENT.
I WANTED TO UNDERSTAND THE NUMBER OF BUILDABLE LOTS THAT WERE AVAILABLE WITHIN THE TOWN.
JUST TO GET PERSPECTIVE, THERE'S JUST LESS THAN 100 THAT'S RESIDENTIAL AND COMMERCIAL COMBINED.
WE'VE BEEN TALKING ABOUT BEING AT BUILD-OUT.
WELL, THAT'S A VERY GOOD SIGN. WE ARE THERE.
AS WE GO FORWARD, WE'LL BE PREDOMINANTLY RELYING ON VALUATIONS OF WHAT'S HAPPENING IN THE MARKET AND REDEVELOPMENT.
TAKING A SNAPSHOT OF THE MILLAGE RATE AND HOW WE LINE UP WITH OTHER JURISDICTIONS ON THE RESIDENTS TAX BILL WHEN THEY RECEIVE IT BASED ON THE PROJECTED MILLAGE RATE.
THAT'S IN THE BUDGET. WE'RE OVER ALL ABOUT 14% OF THE TOTAL TAX BILL FOR THE GENERAL FUND OPERATING AND THE CIP.
THEN ALSO YOU CAN SEE THE JUPYTER MSTU, A FIRE MSTU, YOU HAD JUST OVER 10%.
ALSO LIKE TO INDICATE THE DEBT SERVICE MILLAGE IS BEING REQUIRED.
IT'S VERY MINIMAL AGAIN, THIS YEAR, 2025, ACTUALLY, JULY 1 OF 2025, THAT SERVICE WILL RETIRE GOING INTO THE FY26 FISCAL YEAR WE WILL BE OUT OF DEBT.
THE CITIZENS WILL ACTUALLY SEE A REDUCTION THERE.
HAVING PROBLEMS WITH THE CLICKER THERE, I'M SORRY.
LOOKING AT THE TAX DOLLARS IN RELATION TO HOW THIS WILL AFFECT A RESIDENT.
[00:10:02]
WE'D LIKE TO SHOW THIS CHART EVERY YEAR AS WELL.IN FACT, PROBABLY GOING FORWARD, I'LL PROBABLY HAVE TO INCREASE THIS FROM 550 TO MAYBE $750,000 BASED ON SOME OF THE VALUES THAT WE'RE SEEING.
BUT ON A HOMESTEADED PROPERTY, YOU KNOW THAT WE'RE CAPPED AT THE 3% FOR THE SAVE OUR HOMES INITIATIVE, ALSO A 10%.
AND WHAT THAT TRANSLATES INTO FOR A HOMESTEADED PROPERTY AS $41.86 INCREASE IN TAXES.
NON-HOMESTEADED OF PROPERTY, YOU'RE LOOKING AT $166,000 OVERALL ANNUALLY.
FOR A $400,000 HOME, A LITTLE BIT SMALLER, $30 INCREASE, AND THEN $136 INCREASE FOR NON-HOMESTEADED PROPERTY IN THE COMMERCIAL 171.
SO WE ALWAYS LIKE TO SHOW THE MILLAGE RATE COMPARISON.
WE WILL TALK ABOUT THE ROLLBACK RATE.
AS YOU ALL ARE AWARE ONCE WE GET INTO SETTING THE TRIM, WE WILL ANNOUNCE THE ROLLBACK RATES.
SO WE ALWAYS TRY TO DO A COMPARISON TO SEE WHAT THAT ROLLBACK RATE LOOK LIKE IN TERMS OF REDUCTIONS IN REVENUE FOR THE GENERAL FUND OPERATING IN THE CIP.
THE ROLLBACK RATE AS IT'S CALCULATED TODAY AT 2.2086, THAT TRANSLATES TO ABOUT 3.1 MILLION DOLLAR REDUCTION IN REVENUE FOR GENERAL FUND OPERATING IN THE CIP.
IF YOU WERE TO TAKE THE MIDPOINT BETWEEN THOSE TWO, BETWEEN THE ROLLBACK RATE AND THE PROPOSED MILLAGE RATE AT 2.4633 BE ABOUT 1.5 MILLION DOLLAR REDUCTION IN REVENUE. YES, SIR.
>> NO. I WAS WAITING FOR YOUR FINISH, BUT THIS IS WHEN YOU'RE DONE ON THIS SLIDE.
>> IT'S INTERESTINGLY, FOR MY COLLEAGUES, WE GET THIS EVERY YEAR AND I HAD ASKED WHEN WE HAD OUR ONE-ON-ONES.
WHEN WAS THIS THING ENACTED? WHEN WAS IT ENACTED THAT WE HAD TO DO THIS?
>> SO SOME LEGISLATORS THOUGHT THE DISTRICT PROVOKE SOME THOUGHT IN OUR PROCESS AND IT JUST ZONE OUT AND IN, SO I WAS JUST SUGGESTING AT SOME POINT IN TIME, WE OUGHT TO JUST GO BACK TO THE LEGISLATORS AND SAYING, YOU'RE CREATING A BURDEN HERE ON SOMETHING THAT NOBODY EVER USES.
SO I JUST WANTED TO SHARE THAT PERSPECTIVE.
WE'RE GOING TO HAVE TWO STATE LEGISLATORS HERE, SO WE'RE GOING TO SHARE THIS WITH THEM.
ANY OF YOU THINK THIS ADDS ANY VALUE? I JUST WANTED TO SHARE THAT BECAUSE SOME OF THIS STUFF WE SHOULD BE MINDFUL OF WHEN WE'RE HAVING TO DO SOME BUREAUCRATIC EXERCISE.
I UNDERSTOOD WHAT THE INTENT WAS, 2030 YEARS AGO, BUT DIDN'T DRIVE ANYTHING. ANYWAY, I JUST WANTED TO [OVERLAPPING]
>> THERE'S A LOT OF FACTORS THAT ISN'T TAKEN INTO ACCOUNT WHEN YOU DO THIS CALCULATION LIKE INFLATION AND THOSE TYPE OF ITEMS.
>> I JUST WANTED EVERYBODY ON THE COUNCIL TO UNDERSTAND THIS IS A MANDATORY REGULATORY REQUIREMENT THAT THE PEOPLE THAT CAME UP WITH IT, I'LL JUST LEAVE IT AT THAT.
>> THE GENERAL FUND REVENUES IN RELATION TO THE FORECAST, STILL WAITING ON THE STATE ESTIMATES TO COME OUT.
THEY'VE BEEN COMING OUT LATER AND LATER.
WE'VE TALKED ABOUT THAT THEY STARTED THIS WHEN THEY HAD A DOWNTURN IN COVID.
THEY'VE HAD THEIR REVENUE ESTIMATING CONFERENCES, THEY'RE FINE TUNING THEIR NUMBERS.
WE'VE BASED OUR FORECASTS BASED ON HISTORICAL AVERAGES AND OF COURSE, WE'RE LOOKING AT A MONTHLY AS WELL AS THEY COME IN RELATED TO THE STATE SHARED REVENUES AND SALES TAX REVENUES.
THE TOWN IS VERY HEALTHY AND WHAT WE'RE RECEIVING FROM THOSE REVENUE STREAMS. SO WE ARE SHOWING AN INCREASE.
WE'RE ALSO SEEING INCREASES RATING TO RELATE IT TO FPL, UTILITY SERVICES TAXES, ALONG WITH FRANCHISE FEES, WE'RE NOTICING AN INCREASE THEIR INTERESTS EARNINGS WITH WHAT'S HAPPENING WITH THE FEDS.
NOT SURE WHAT THEY'RE GOING TO BE DOING WITH THEIR INTEREST RATES GOING FORWARD.
BUT WE'VE BEEN A BENEFICIARY WITH OUR INTEREST EARNINGS BECAUSE OF THE ARRAYS AND THE INTEREST RATES, AND ALSO RECREATION REVENUE.
WE'VE HAD AN INCREASE, IF YOU HAVE CHILDREN OVER THERE THAT ARE PARTICIPATING IN THE SUMMER CAMP, WE SEE THAT THERE'S ACTIVE PARTICIPATION, SO WE'RE SEEING INCREASES THERE.
ALSO, WE'VE TAKEN INTO ACCOUNT SOME OF THE COST IN OUR RATE STRUCTURE RELATING TO PUBLIC SAFETY.
WE HAVE OFFICERS THAT ARE NOW STATIONED OVER AT THE COMMUNITY CENTER.
SO SOME OF THOSE COSTS ARE BUILT INTO THESE RATES,
[00:15:01]
MAKING SURE THAT THE CHILDREN ARE SAFE SO WE'RE DOING THAT AS WELL.SO GETTING INTO THE COST SIDE OF THE HOUSE, BIG PICTURE.
ONE OF THE THINGS THAT'S BEING PROPOSED THIS YEAR.
WE'VE TALKED ABOUT THE HEALTH INSURANCE FUND.
WE'VE TALKED ABOUT HOW HEALTHY THE FUND IS.
SOME OF THE THINGS THAT WE'VE DONE IN THE PAST TO MAKE SURE THAT THAT FUND IS HEALTHY.
WE HAVE AN ACTUARIAL EVALUATION OF THE HEALTH INSURANCE FUND EVERY YEAR HAS TO BE SENT TO THE STATE.
SO WE'VE BEEN LOOKING AT THAT AND LOOKING AT HOW CAN WE INCREASE BENEFITS, POSSIBLY FOR SOME EMPLOYEES.
ONE OF THE THINGS THAT WAS BROUGHT UP AND WAS BROUGHT UP LAST YEAR AS WE STARTED LOOKING AT THIS, SPEAKING WITH OUR COUNTERPARTS IN HR, AND WE TALKED ABOUT THIS A LITTLE BIT LAST YEAR DURING THE BUDGET WORKSHOPS IS RECRUITMENT AND RETENTION OF QUALIFIED EMPLOYEES.
YOU HEAR ABOUT IT IN THE NEWS.
IF YOU'RE IN BUSINESS, YOU UNDERSTAND ABOUT RECRUITMENT OF EMPLOYEES COMING TO YOUR LOCATION, WE'RE NOT IMMUNE FROM THAT.
ONE OF THE THINGS IS THAT THE COST OF HEALTH INSURANCE.
SO TRYING TO STAY COMPETITIVE IN THE MARKET NOT AND IT'S NOT JUST ABOUT SALARY, THE EMPLOYEES ARE LOOKING AT THEIR BENEFITS PACKAGE.
WHAT ARE THEY RECEIVING? SO ONE OF THOSE MAIN ITEMS IS HEALTH INSURANCE.
I WAS TOLD LAST YEAR THAT WE ACTUALLY LOST A COUPLE OF POSSIBLE CANDIDATES BECAUSE OF THE COST OF INSURANCE.
THAT OF COURSE DISTURBED ME BECAUSE OF THE QUALIFICATIONS OF THOSE APPLICANTS.
BUT EITHER WAY, I PROMISED THE COUNCIL LAST YEAR THAT WE WERE GOING TO LOOK AT THE RATE STRUCTURE.
WE WERE TO LOOK AT POSSIBLY SOME THINGS THAT WE CAN DO.
WE'VE GOTTEN WITH OUR BROKER AND OUR ACTUARY TO COME UP WITH MAYBE SOME THINGS THAT WE CAN DO TO HELP WITH RECRUITMENT INTENTION AND ALSO GIVE A BETTER BENEFIT FOR THE EMPLOYEES.
ONE OF THE THINGS THAT WE'VE LOOKED AT RIGHT NOW, WE DO WHAT'S CALLED AN 80/20 SPLIT.
MEANING THE TOWN PAYS FOR 80% OF THE PREMIUM, WHEREAS THE EMPLOYEE PAYS 20%.
ONE OF THE THINGS WE'RE LOOKING AT, OR PROPOSING IS GOING TO A 90/10 SPLIT OF THAT COST, WHICH IN FACT WILL LOWER THE PREMIUM FOR THE EMPLOYEE.
WE ARE PARTIALLY SELF-INSURED, WHICH MEANS WE SET THE RATE, WE DECIDE WHAT THOSE RATES ARE.
WE HAVE WHAT'S CALLED STOP-LOSS INSURANCE.
IF YOU'RE NOT FAMILIAR WITH WHAT THAT IS, THAT HELPS WITH ANY CATASTROPHIC LARGE TYPE CLAIMS THAT MAY BE COMING IN.
IT'S AN ADDITIONAL TYPE OF INSURANCE THAT WE PAID FOR.
BECAUSE ONE OF THE THINGS I WAS CONCERNED ABOUT MAYBE MOVING TO THIS MODEL WAS FUTURE YEAR COST TO THE TOWN AND CONTROLLING OF THOSE CLAIMS COSTS WHICH WILL DRIVE THESE RATES.
AGAIN, THE TOWN IS IN CONTROL OF THESE RATES.
IT'S NOT AN INSURANCE COMPANY THAT'S DRIVING IT.
BUT TO GET BACK INTO WHAT WE'RE PROPOSING RIGHT NOW WITH AN 80/10 SPLIT YOU CAN SEE HERE THE NUMBER OF EMPLOYEES I HAVE ON THE CHART.
FOR AN EMPLOYEE ONLY WE HAVE 125 EMPLOYEES IN THAT BRACKET, 68 IN THE EMPLOYEE PLUS ONE AND A FAMILY 146 PARTICIPANTS.
RIGHT NOW MONTHLY, THOSE EMPLOYEES ARE PAYING JUST OVER $2,000 A MONTH AS A SINGLE COVERAGE.
JUST OVER $4,100 A MONTH FOR EMPLOYEE PLUS 1 AND $6000 A MONTH FOR A FAMILY PLAN.
WITH THE SPLIT THAT WE'RE TALKING ABOUT, WE'D BE ABLE TO BASICALLY SPLIT THAT COSTS IN HALF.
YOU CAN SEE IN THE COLUMN OVER HERE ON THE RIGHT OF THE NEW EMPLOYEE PROPOSED PREMIUM, THAT WOULD BE A SAVINGS OF $1,000 ANNUALLY.
IT'S THE ANNUAL. JUST OVER $2,000 AND JUST OVER $3,000 FOR THE FAMILY PLAN, SO THAT'S A SIGNIFICANT SAVINGS FOR THE EMPLOYEE.
BUT HOW DOES THAT TRANSLATE INTO THE RATES OF WHAT THE EMPLOYEE IS GOING TO BE PAYING EACH MONTH? IF YOU LOOK AT THE BOTTOM, I HAD OUR BROKER PULL OUR PEERS BECAUSE THE WHOLE POINT IS BEING COMPETITIVE IN THE MARKET, BEING ABLE TO ATTRACT THOSE EMPLOYEES BY LOOKING AT THE RATES.
WE HAVE A REGIONAL PEER GROUP WHICH IS BASED ON NOTHING EXCEPT THEY SIT IN OUR REGION.
THEY COULD BE A VERY LARGE EMPLOYER OR A VERY SMALL EMPLOYER.
BUT THEN WE ALSO HAVE A PEER GROUP OF SIMILAR SIZE TO SEE WHAT THOSE RATES ARE.
YOU CAN SEE WE'RE GOING TO BE VERY COMPETITIVE IN THE MARKET AT $86 MONTHLY FOR THE SINGLE, AND DROPPING DOWN TO 253 FOR A PREMIUM FOR FAMILY COMPARED TO 469 AND 515 WITH A PEER GROUP OF SIMILAR SIZE.
SO BEING VERY COMPETITIVE IN THE MARKET, WE THINK THAT IT'S GOING TO HELP THE HR PROCESS WHEN WE HAVE
[00:20:01]
NEW EMPLOYEES ATTRACTING VERY CAPABLE AND QUALIFIED EMPLOYEES.SO WE'VE PUT TOGETHER THIS OPTION.
WHAT IS THAT GOING TO COST THE TOWN? THAT'LL BE $700,000 ANNUALLY ADDITIONAL FOR THE TOWN. ANY QUESTIONS ABOUT THAT? WE SPOKE ABOUT THE INSURANCE FUND ITSELF.
WHAT YOU CAN SEE HERE IS CURRENTLY, WE HAVE 56 EMPLOYEES THAT ARE CURRENTLY OPTING OUT OF OUR INSURANCE.
THAT'S A COST TO THE TOWN OF OVER $100,000.
IF YOU DON'T PARTICIPATE IN OUR INSURANCE, YOU GET A STIPEND.
YOU GET PAID TO NOT PARTICIPATE AND THAT'S OVER $100,000 ANNUALLY TO THE TOWN.
WE'VE TALKED ABOUT THIS EVERY YEAR.
IT HELPS THE EMPLOYEES WITH THEIR DEDUCTIBLE.
THAT'S A COST OF $843,000 GOING INTO NEXT YEAR BUT THE TOTAL INCREASE TO THE INSURANCE FOR INSURANCE TO THE TOWN THIS YEAR IS $776,000 BEING PROPOSED.
THE RESERVE FUNDING, IF YOU LOOK AT THE BOTTOM JUST TO SHOW WHAT THE FUND ANALYSIS IS, LAST YEAR, $8.5 MILLION.
WE'RE LOOKING TO BUILD THE FUND TO ABOUT 9.7.
I TALKED ABOUT THIS LAST YEAR AND I AGAIN, I WANT TO TALK ABOUT IT IN RELATION TO THE FUND BALANCE, WE WANT TO TRY TO GET TO THAT $10 MILLION BALANCE.
THE REASON I'M SAYING THAT IS IF YOU LOOK AT OUR CLAIMS COSTS, WE'RE AT $5.1 MILLION.
IF WE CAN DOUBLE THE AMOUNT THAT WE HAVE IN RESERVES, WE CAN START LOOKING AT THAT STOP LOSS COSTS TO THE TOWN TO BE ABLE TO HAVE SOME SAVINGS TO OFFSET THE $700,000 FOR THE 90/10 SPLIT HELP OFFSET SOME OF THOSE COSTS.
WE'RE VERY CLOSE AND WE CAN START LOOKING AT THOSE RATES TO BE ABLE TO OFFSET SOME OF THAT $700,000 COSTS AND STILL MAKE SURE THAT THE FUND IS PROTECTED FOR THESE LARGE CLAIMS THAT MAY COME IN.
ANOTHER THING THAT WE TALK ABOUT EVERY YEAR IS THE SALARY INCREASES.
WE DID HAVE SOME THINGS THAT WERE OUT OF OUR CONTROL, WHICH IS FRS IS SET BY THE FLORIDA LEGISLATURE.
THE INCREASES THAT WERE MANDATED THIS YEAR CAME TO OVER $447,000 INCREASE FOR FRS.
WE'RE ALSO PROJECTING A 5% SALARY INCREASE FOR NON-UNION EMPLOYEES.
IF YOU REMEMBER RIGHT, LAST YEAR WE HAD A 5% INCREASE ON THE BASE SALARY FOR EMPLOYEES, OF COURSE WE HAD A INFLATIONARY, I DON'T WANT TO CALL IT A BONUS, BUT INFLATIONARY STIPEND TO HELP THE EMPLOYEES DUE TO INFLATION.
RIGHT NOW WE'RE FEELING VERY COMFORTABLE WITH THE 5% INCREASE FOR THE EMPLOYEES AND THE TOTAL COST, INCLUDING THE UNION INCREASES IN THE STEP PLAN IS JUST OVER $1.2 MILLION.
THERE IS 10 NEW POSITIONS BEING REQUESTED THIS YEAR.
I WILL TELL YOU THE TOWN IS VERY BUSY.
I DON'T THINK I NEED TO TELL YOU THAT BECAUSE YOU SEE IT COME BEFORE YOU ALL THE TIME, ALL THE NEW PROJECTS, EVERYTHING HAPPENING WITHIN THE TOWN.
WE HAVE A LOT OF THINGS HAPPENING, WORK PROCESS WISE.
IF YOU LOOK AT THE LIST OF POSITIONS THAT ARE BEING REQUESTED, THESE ARE MAINLY WORK TYPE POSITIONS, MAINTENANCE POSITIONS, MAKING SURE THAT WE'RE ABLE TO MAINTAIN THINGS WITHIN THE TOWN.
A TOTAL OF $1.7 MILLION IN SALARY AND BENEFITS AND EQUIPMENT COSTS ARE BEING REQUESTED FOR OVERALL.
YOU CAN SEE IT'S A TOTAL OF 10 NEW POSITIONS, SIX-AND-A-HALF POSITIONS IN THE GENERAL FUND, AND 3.5 IN THE WATER UTILITY.
JUST TO GIVE AGAIN AN OVERVIEW OF THE THINGS I JUST SPOKE ABOUT, WE SPOKE ABOUT THE HEALTH INSURANCE AND THERE WAS AN INCREASE THERE, TOTAL OF $7.2 MILLION ACROSS ALL FUNDS INCREASES.
SORRY, THE NEW POSITIONS THAT WERE BEING REQUESTED INCREASE AT $1.7 MILLION, SALARY ADJUSTMENTS OF 1.3 MILLION, FRS ADJUSTMENTS FOR $447,000.
ALSO, I HADN'T MENTIONED THIS, BUT THE PROPERTY AND LIABILITY INSURANCE, WE'VE WENT OUT TO BID ON THAT.
WHAT I'M PROJECTING THERE'S A 40% INCREASE IN PROPERTY AND THEN 20% INCREASE IN ALL THE OTHER LIABILITY INSURANCES.
[00:25:03]
I THINK WE'RE GOING TO BE PRETTY CLOSE TO THAT ESTIMATE.CAPITAL CONTRIBUTION OF THE $2 MILLION FOR THE TOWN GREEN IN THE DEMO, THE OLD TOWN HALL.
ANOTHER THING TOO, FOR OPERATIONAL EFFICIENCY.
PROFESSIONAL SERVICES, THERE'S GOING TO BE INCREASES THERE, YOU'LL SEE THAT ACROSS THE GENERAL FUND, AS WELL AS THE WATER AND STORM WATER FUND.
WE'RE SEEKING OUTSIDE HELP FROM PROFESSIONAL AGENCIES TO BE ABLE TO HELP WITH SOME OF THE LARGER CAPITAL PROJECTS TO BE ABLE TO GET SOME OF THESE THINGS DONE AND COMPLETED.
GOING INTO THE DIFFERENT FUNDS.
WE'LL START WITH THE GENERAL FUND FOR THE REVENUES, TOTAL OF $6.8 MILLION INCREASE IN THE GENERAL FUND OVER THE PREVIOUS YEAR OR THE CURRENT FISCAL YEAR IN WHICH WE'RE IN.
WE TALKED ABOUT THE VALUES $3.3 MILLION INCREASE OVER FY23, $1.2 MILLION INCREASE IN FRANCHISE FEE, REVENUES PRIMARILY DUE TO THAT FPL RATE INCREASES, INTERGOVERNMENTAL INCREASES OF $676,000, $567,000 IN CHARGES FOR SERVICE.
THAT'S PRIMARILY DUE TO THE RATE INCREASE WITH THE SOLID WASTE AND SURCHARGE REVENUES AND ALLOCATION COSTS.
INCREASE OF $835,000 IN INTEREST EARNINGS.
WE'VE TALKED ABOUT WHAT THE FED'S DOING.
AGAIN, DON'T KNOW WHAT THEY'RE GOING TO DO GOING FORWARD BUT RIGHT NOW WE'RE SEEING A RETURN TO PRE-PANDEMIC INTEREST EARNINGS AND AGAIN, NO USE OF FUND BALANCE.
[NOISE] FOR THE EXPENSES, THAT'S $6.8 MILLION INCREASE.
YOU CAN SEE IT'S OFFSET BY EXPENSES OVER ON THE RIGHT HAND COLUMN.
I WANT TO TRY TO TRANSLATE THAT TO SOME OF THE LARGER EXPENDITURES, WHICH I'VE HIGHLIGHTED IN GREEN SO YOU CAN SEE THE TOWN HALL GREEN, THE DEMO, THAT'S ONE OF THE LARGEST INCREASES.
IT'S A $1.1 MILLION INCREASE IN TOTAL OVER LAST YEAR, IF YOU REMEMBER RIGHT.
WE HAD $1.5 MILLION ALREADY PROGRAMMED IN FOR THAT PROJECT.
ALSO THE BENEFITS INCREASES OF $1.2 MILLION IN SALARY AND OVERTIME INCREASES OF 1.8.
GOING INTO THE WATER FUND, WE TALKED ABOUT THE INDEXING.
AGAIN, WE TOOK A LINEAR VIEW YEAR-BY-YEAR LOOKING AT THE RATE STRUCTURE TO MAKE SURE THAT WE'RE BEING EFFICIENT AND THAT WE'RE MEETING THE NEEDS OF THE UTILITY.
WE STARTED OFF WITH 3%, AND THEN LOOKING AT THE INDEX ITSELF, WHICH IS A TOTAL OF 4.5.
AND THEN LOOKING AT THE INFLATIONARY COSTS GOING FORWARD, A TOTAL OF 7% INCREASE BEING REQUESTED.
WHEN YOU LOOK AT WHAT'S CALLED THE ENGINEERING NEWS RECORD, THEY'RE RECOMMENDING A 3.8 INFLATIONARY COST REDUCTION.
BUT WE STILL FELT THAT LOOKING AT THE COST OF WHAT EVERYTHING IS COMING IN/OUT WITH OUR ENGINEERING ESTIMATES WHAT WE'RE PROJECTING, THE 2.5 WILL SUFFICE.
ALSO, SOMETHING I WANTED TO POINT OUT IS THAT GOING FORWARD WE HAD TALKED ABOUT ONE THING THAT'S IMPORTANT GOING IN THE FY29, FY30, WITH A LARGE CAPITAL IMPROVEMENTS THAT ARE GOING TO BE NEEDED AT THE PLANT.
WE'RE STILL ON TARGET TO BE SAVING FOR THOSE.
THAT POSSIBLE DEBT SERVICE, THAT'S GOING TO BE COMING ONLINE THERE.
IT'S A TOTAL OF APPROXIMATELY $50 MILLION.
WE WANT TO BE ABLE TO HAVE ENOUGH CASH ON HAND TO ONLY BORROW ABOUT $25 MILLION.
SO RIGHT NOW WE'RE ON TARGET TO DO THAT.
WE'D LIKE TO SHOW THE COMPARISONS IN RELATION TO OTHER UTILITIES BASED ON THE RATE THAT'S BEING PROJECTED WITH A RATE INCREASE THAT WE JUST SPOKE OF.
YOU CAN SEE THERE IN THE OVERALL RO TREATMENT THAT WE'RE NUMBER 2 ON THE LIST.
NOW, ONE THING I WANT TO POINT OUT, THESE OTHER UTILITIES YOU'RE SEEING ON THIS LIST, WE DON'T KNOW WHAT THEIR NEW RATES ARE GOING TO BE.
SO THESE ARE STATIC RATES THAT THE UTILITY IS CURRENTLY USING.
SO WHEN THEY GO INTO THEIR RATE MODELING FOR NEXT YEAR, THIS LIST COULD LOOK VERY DIFFERENT.
LOOKING AT OTHER UTILITIES OVERALL WITHIN THE REGION, WE'RE SITTING AT NUMBER 6.
SO WE'RE NOT IN THE MIDDLE OF THE PACK, WE'RE STILL IN THE UPPER ECHELONS OF THE RATES.
BUT AGAIN, JUST TO POINT OUT THAT ONCE THEY UPDATE THEIR RATES, WE MAY ACTUALLY GO UP IN THE RANKINGS.
SO WHAT WOULD THE 7% RATE INCREASE LOOK LIKE ON A TYPICAL RESONANT?
[00:30:05]
THAT'D BE $33.48 ANNUALLY.SO FOR THE WATER FUND IN RELATION TO THE EXPENDITURES, WE'RE LOOKING AT THE 5% INCREASE ON SALARIES, THE 90/10 SPLIT ON THE HEALTH INSURANCE THAT WE'VE DISCUSSED.
THERE'S THE NEW POSITIONS THAT WE'VE DISCUSSED IN THERE.
IF YOU'D LIKE WE CAN HAVE FURTHER DISCUSSION ON.
THERE'S A REDUCTION IN DEBT SERVICE COSTS OF $744,000.
WE HAVE SOME INCREASES IN THE UTILITY SERVICES COSTS DUE TO FPL RATE INCREASES.
WE'RE ANTICIPATING THE CHEMICAL COSTS, WE'RE GOING TO HAVE A REDUCTION.
IT SHOULD BE COMING VERY SHORTLY BEFORE THE COUNCIL, SO WE WILL KNOW FOR SURE IN THE NEXT FEW WEEKS.
PROPERTY AND LIABILITY INSURANCE INCREASES, WE TALKED ABOUT THAT.
THE PROFESSIONAL SERVICES COST, THERE'S BEEN INCREASES IN THAT COST LINE ITEM TO BE ABLE TO HELP IN THE MANAGEMENT AND PROCESSING OF CAPITAL PROJECTS.
AND ALSO, THE INCREASE FOR LABORATORY AND TESTING SERVICES.
FOR STORMWATER, THE BASE RATE INDEX IS 6.5 USED TO FUND INCREASES IN THE WATER UTILITY OPERATING AND CAPITAL RE-INVESTMENT COST.
ONLY A HALF A PERCENT ADJUSTMENT TO RECAPTURE INFLATIONARY IMPACT OF COSTS OF OPERATIONS AND FUTURE CAPITAL REINVESTMENT.
AS WE POINTED OUT, THERE'S ACTUALLY MORE PROJECTS AND THERE IS CASH.
BUT LOOKING AT THIS RATE ADJUSTMENT BASED ON THE MODEL, IT'S MORE THAN SUFFICIENT TO FUND WHAT WE ARE CURRENTLY PLANNING.
AND AGAIN, WE DO THIS EVERY YEAR.
IT'S AN ANNUAL RATE REVIEW THAT WE'RE DOING.
HOW DOES THE PROPOSED FEE COMPARE TO OTHER UTILITIES IN THE AREA? LOOKING AT THIS CHART, JUPITER FALLS IN THE MIDDLE AT $7.06.
AND THAT TRANSLATES TO AN ANNUAL IMPACT OF $5.52 FOR A RESIDENT.
AND AGAIN, THIS IS BEFORE ANYBODY ADJUSTS THEIR RATES.
ON THE EXPENSE SIDE OF THE HOUSE RELATING TO THE STORMWATER, AGAIN, THE PRIMARY DRIVERS OF THE EXPENSES OUTSIDE OF NORMAL OPERATING IS THE 5% SALARY INCREASES, THE 90/10 HEALTH INSURANCE OPTION, OUTSOURCING AND CLEANING AND VIDEO OF TOWN-OWNED DRAINAGE SYSTEMS, INCREASE OF $130,000 OVER FY23, THE PROPERTY AND LIABILITY INSURANCE WE SPOKE OF, AND THE ADDITIONAL PROFESSIONAL ASSISTANCE THAT WE'RE GOING TO NEED GOING FORWARD FOR SOME OF THE CIP PROJECTS.
ONE OF THE THINGS WE TALKED ABOUT ALSO WAS THE JUPITER RIVER ESTATES NON-AD VALOREM ASSESSMENT.
WE SAID THAT YOU WOULD SEE THIS DURING THE BUDGETARY PROCESS.
SO HERE IT IS. GOING FORWARD INTO THE NEXT YEAR, IF THE TOWN DECIDES THAT THEY WERE GOING TO DO MORE ASSESSMENTS, YOU WOULD ALSO SEE THOSE DURING THE BUDGETARY PROCESS.
THE BUILDING FUND, WE TALKED ABOUT THE INCREASES IN A PERMIT REVENUE OF $200,000 DUE TO THOSE ONE-OFF PROJECTS THAT COME ALONG.
BUT PRIMARILY, THE MAIN DRIVERS IN THE BUILDING FUND IS THE SALARY INCREASES WE SPOKE OF, THE HEALTH INSURANCE OPTION.
DEPARTMENTAL EXPENSES ACTUALLY DECREASED OVER FY23 BY $131,000.
AND THAT WAS PRIMARILY DUE TO THE REDUCTION AND NOT HAVING A ONE-TIME CAPITAL TRANSFER THAT HAD TO HAPPEN LAST YEAR FOR THE NEW TOWN HALL BUILDING.
AND WHEN I SAY LAST YEAR, I MEAN, FY23.
WE'VE TALKED ABOUT THE HEALTH INSURANCE FUND.
SO YOU CAN SEE WE'RE SLOWLY APPROACHING THAT $10 MILLION BENCHMARK THAT WE'RE TRYING TO ACHIEVE.
THE FUNDS ARE VERY HEALTHY. SO SOME IMPORTANT DATES TO REMEMBER GOING FORWARD.
JULY 18TH WE WILL BE SETTING TRIM.
ON AUGUST 10TH, WE HAVE A CRA BUDGET WORKSHOP TO TALK ABOUT THE CRA AND THE SAME EVENING WE HAVE OUR CIP BUDGET WORKSHOP FOR THE COUNCIL.
AND THEN GOING INTO THE FIRST BUDGET HEARING ON THE 5TH OF SEPTEMBER AND A CRA BUDGET ADOPTION.
AND THEN ON THE 19TH WILL BE THE SECOND AND FINAL READING OF THE TOWN'S BUDGET.
[00:35:05]
[NOISE] SO SEEKING POLICY GUIDANCE ON SOME OF THE ITEMS THAT WE'VE TOUCHED ON THIS EVENING, AS WE GO FORWARD THROUGH THE BUDGETARY PROCESS.WE'VE TALKED ABOUT THE MAINTAINING OF THE PROPOSED MILLAGE RATE AND A FLAT 2.4633.
AGAIN, WE'LL TALK ABOUT THAT ON JULY 18TH WHEN WE GET OUR FINAL TRIM NUMBERS.
THE AD VALOREM DISTRIBUTION OF 85/15 BETWEEN THE TOWN'S OPERATING AND THE CIP.
THE HEALTH INSURANCE, NO PREMIUM INCREASES BEING REQUESTED THIS YEAR.
I AM LOOKING AT OTHER JURISDICTION, SO MY COUNTERPARTS ARE EXPERIENCING WHERE 15%-30% INCREASES.
BUT AGAIN, WE'RE THE ONES THAT DECIDE ON THE RIGHT, BECAUSE WE'RE PARTIALLY SELF-INSURED.
MAINTAINING THE CURRENT HSA FUNDING LEVELS FOR EMPLOYEES AT A COST OF $843,000.
ALSO FOR NON-UNION EMPLOYEES WERE RECOMMENDING THE 5% INCREASE IN SALARIES.
AND THEN THE PROPOSED WATER UTILITY RATE INCREASES AT 7% FOR THE WATER UTILITY AND 7% FOR THE STORMWATER UTILITY.
WITH THAT, THAT IS THE COMPLETION OF MY PRESENTATION.
>> COUNCIL, IF ANYBODY HAS ANY QUESTIONS?
>> ONE QUESTION ON THE HEALTH INSURANCE ON THE $10 MILLION BENCHMARK, SO THAT QUALIFIES AS FOR LOWER RATES?
THAT'S AN INTERNAL GOAL THAT WE'VE SET FOR OURSELVES, BECAUSE AGAIN, [NOISE] OUR CLAIMS COSTS ARE OVER $5 MILLION ANNUALLY.
>> THE STATE ONLY REQUIRES THAT WE HAVE 60 DAYS WORTH OF RESERVES, THAT'S ALL THEY REQUIRE.
BUT WHAT WE'RE TRYING TO DO IS WE'RE TRYING TO SAVE ON THE OVERALL RATE BY BEING ABLE TO SAVE ON WHAT'S CALLED THE STOP LOSS.
THE STOP LOSS COST US ABOUT $700,000 A YEAR, BUT THOSE ARE FOR CATASTROPHIC EVENTS.
>> SO THE GOAL IS, TO BE ABLE TO HAVE TWICE THE CLAIMS AMOUNT TO BE ABLE TO MAYBE DO SOMETHING WITH THAT STOP LOSS TO REDUCE THAT $700,000 COSTS TO THE TOWN.
>> SORT OF LOWER THE AMOUNT WE COULD COLLECT IN CASE OF CATASTROPHIC HEALTH EVENTS.
I WAS WONDERING IF THE 10 MILLION HAS GOT TO A POINT WHERE THE STOP LOSS COMPANIES SAW YOU AT YOUR HEAVY RESERVES AND YOU COULD PAY AT A REDUCED RATE BECAUSE YOU WEREN'T AS SUSCEPTIBLE TO.
>> WHAT ESSENTIALLY DOES FOR US IS BE ABLE TO ABSORB IF THERE IS SOME CATASTROPHIC HEALTH EVENT THAT OCCURS WITH THE CLAIM, THAT IT ALLOWS US TO ABSORB THOSE CLAIMS COSTS WITHOUT HAVING TO INCREASE RATES IN THE NEXT YEAR AND TO BE ABLE TO RECOVER IN THE UPCOMING YEARS.
THAT'S WHAT THAT DOES FOR US, BECAUSE IF YOU THINK ABOUT MEDICAL COSTS, SOMEONE HAS TO HAVE A HEART REPLACEMENT OR GOD FORBID LEUKEMIA.
SOMETHING THAT ACTUALLY GOES ON AND ON AND ON FOR A LONG PERIOD OF TIME.
THOSE COSTS CAN SKYROCKET AND WHAT THE 5 MILLION IN ADDITIONAL DOLLARS DOES FOR US, IT ALLOWS US TO ABSORB THOSE STOP LOSS AMOUNTS GOING FORWARD AND STILL MAINTAIN OUR RATES AND STILL REMAIN AND HAVE A HEALTHY FUND BALANCE.
>> THAT'S THE GOAL. AND STILL MAINTAIN THE BILL TO BE ABLE TO PAY OUR CLAIMS EACH YEAR AT THE $5 MILLION.
>> AND WE'VE HAD THOSE SITUATIONS IN THE PAST?
>> WE HAVE. I WILL TELL YOU BEFORE WE BECAME PARTIALLY SELF-INSURED, I KNOW THE MAYOR WILL REMEMBER THIS.
WE WERE HAVING YEARS LIKE SOME OTHER ORGANIZATION WHERE THEY'RE BEHOLDEN TO THE INSURANCE COMPANY AND THEY'RE COMING IN WITH 15%-30% RATE INCREASES.
WITH US WE'VE BEEN ABLE TO CONTROL THAT WHEN WE SWITCHED OVER TO BE IN PARTIALLY SELF-INSURED, MEANING THAT WE'RE HANDLING ALL THOSE ADMINISTRATIVE COST.
AND ONE THING THAT HAS DONE FOR US IS WE DID HAVE SOME RATE INCREASES.
THE MAYOR, I'M SURE HE CAN ATTEST TO THIS.
I REMEMBER, MIKE AND I HAD TO COME BACK BEFORE THE COUNCIL AND ASKED FOR A COUPLE OF MILLION DOLLARS FOR THE SEED MONEY, THAT WAS PRETTY DIFFICULT.
WE DID HAVE SOME LARGE CLAIMS UPFRONT, BUT THEN WE STARTED GETTING THE FUND STABILIZED.
WE DID INCREASE RATES 10% A YEAR UNTIL WE GOT THE FUND STABILIZED.
AND NOW WE GOT TO A POINT WHERE THE RATES AND THE FUND IS STABILIZED AND WE'VE ACCUMULATED OUR BALANCE.
SO THE PARTIAL SELF-INSURED BEING ABLE TO MANAGE THE FUND, THAT IS DEFINITELY HELPED IN THAT PROCESS.
>> JUST TO BUILD ON THAT, JUST FOR EVERYONE'S BENEFIT, NOT TO OTHER THAN THAT, BUT I'M GOING TO STATE MY RECOLLECTION IN EITHER SAY IT'S CORRECT OR CLARIFY.
[00:40:07]
SO FOR YEARS WE WENT TO INSURANCE COMPANIES AND PAID THAT WAY.AND INSURANCE COVERAGE NEVER LOSE MONEY, BECAUSE THERE WAS ALWAYS EXPERIENCE BASED.
SO YOU GAINED EXPERIENCE BASED, SO HALF OF A TIMES THEY MAKE MORE, SO BE IT THEY POCKETED.
IF THEY EVER LOSE, MEANING THEY MAKE LESS AND REALLY EVER LOSE, THEN IT'S JUST YOUR EXPERIENCE WAY FOR THE NEXT YEAR.
SO WE HAD ONE YEAR WHERE [NOISE] WE HAD TWO OR THREE SIGNIFICANT MEDICAL CONDITIONS.
THEN THE NEXT YEAR THERE WAS A REAL STEP CHANGE IN RATES.
THE LONG HAUL IS NOT GOING TO HAPPEN EVERY YEAR, BUT NOW THE RATE GETS ESTABLISHED BASED ON THAT, IT'S THE WAY THE PROCESS WORKS.
AT THAT TIME, THE COUNCIL SAID, HEY, NOW'S THE TIME BECAUSE, WELL, IN STAFF WAS PROBABLY THE ONE THAT RECOMMENDED THIS.
BUT IT WAS THE TIME BECAUSE WE WENT IN AND NOW WITHIN HIGH IF WE KEPT WITH THE INSURANCE COMPANY, YOU DO IT EVERY YEAR.
AND WE SAID, LET'S SELF-INSURE WE WENT AND THE BALANCE STARTED GROWING.
AND THEN FINANCE WENT AHEAD AND GOT THIS.
I THOUGHT WHAT IT IS IS FOR EVENTS OVER A CERTAIN DOLLAR VALUE [OVERLAPPING]
>> A HUNDRED-FIFTY THOUSAND AND NOW 200,000.
>> RIGHT. SO WHAT THAT DOES IS FOR THE EXTREME EVENTS, IF WE HAVE A WHOLE BUNCH AT 200,000, IT DOESN'T COVER IT.
BUT IT'S INTENDED TO MANAGE THE RISK ON THOSE HUGE ONES, WHICH CAN REALLY, THE SIZE, WE AREN'T JUST VERY SIGNIFICANT.
DECISION THAT WAS MADE SOME YEARS AGO HAS REALLY PAID OFF.
>> BECAUSE WE WOULDN'T HAVE ANYTHING NOW, QUITE FRANKLY.
>> [INAUDIBLE] COPIES WOULD HAVE IT.
>> EXACTLY. WE'RE ASSUMING THE RISKS THAT'S WHY WE'RE ABLE TO DO THIS WORK.
AND WE'VE TAKEN OUT THIS ADDITIONAL POLICY WHICH IS CALLED STOP LOSS, BECAUSE WE'RE ASSUMING THE RISK.
>> IT WAS 2016 AS WHEN WE STARTED THE PROCESS.
>> MY FIRST WHAT I WANT BUDGET MEETING WITH MIKE.
I'M NOT SURE IF YOU WERE THERE OR NOT, WE DISCUSSES WAS FAIRLY NEW TO YOU FOLKS STILL WENT THROUGH THE WHOLE THING.
AGAIN, YOU WERE PROBABLY THERE RON, WHEN WE HAD TO ASK FOR THE $2 MILLION, THE SEED MONEY TO GET IT STARTED.
BUT IT HAS DEFINITELY PAID OFF, WE'VE WORKED IT VERY DILIGENTLY.
BUT THAT'S THE REASON WE'RE ABLE TO DO THIS.
THE TOWN IS TAKING ON THE RISK, AND WE BUY THAT ADDITIONAL POLICY AND IT COSTS US AN ADDITIONAL $700,000 A YEAR FOR THAT.
PLUS, LIKE THE MAYOR POINTED OUT, WE HAVE A CAP ON IT.
IT WAS 150,000, NOW WE'VE GOT IT TO $200,000.
ANOTHER THING THAT THIS ALLOWS US TO DO BY BUILDING UP THIS FUND BALANCE IS WE START LOOKING AT, WHAT IF WE SET THAT RANGE UP TO $0.5 MILLION? WHAT IS THAT COST REDUCTION TO THE OVERALL TOWN BASED ON THAT ASSUMPTION OF RISK? SO THAT'S WHERE WE'RE AT.
SO IF WE HAVE THAT ADDITIONAL $5 MILLION AVAILABLE DEPENDING ON CLAIMS HISTORY. YOU POINT THAT OUT.
WE GOT TO LOOK AT THAT WITH THE ACTUARY AND WE DO THAT QUITE OFTEN.
THE ACTUARY, WE PAY THEM, THEY'RE PART OF OUR BENEFITS PACKAGE WITH OUR BROKER, AND THE ACTUARY, WE'VE REVIEWED THE RECOMMENDATIONS THAT WE'RE MAKING THIS EVENING TO MAKE SURE THAT IT'S FINANCIALLY VIABLE, AND IT DEFINITELY IS.
>> AND US, HAVE TO REMEMBER THAT THE RISK HAS PAID OFF.
I SHOULD SAY THE STRATEGY PAID OFF.
BUT IN ANY ONE YEAR, I'M ALWAYS EXPECTING.
SO IT'S NOT GOING TO WORK OUT THIS YEAR, BUT HOW MANY YEARS WOULD IT HAVE TO NOT WORK OUT AND WE'RE STILL AHEAD OF THE GAME.
AND IF WE HAVE A NUMBER OF MEDICAL SITUATIONS RIGHT AT 200, THEY ADD UP QUICKLY.
>> BUT THAT'S WHAT THE FUND BALANCE THAT'S RECOMMENDED, THAT IT IS THERE FOR THAT REALLY.
>> THAT'S RIGHT. AND WE'VE BUILT IT UP, LIKE I SAID, THE GOAL WAS TO HAVE THAT ADDITIONAL $5 MILLION.
SO NOW WE'RE AT A POINT WHERE THAT ASSUMPTION OF RISK, SINCE WE'VE BUILT THAT UP.
AND IT'S NOT JUST THE TOWN, IT'S THE EMPLOYEES TOO, THEY'VE HELPED BUILD THAT FUND BALANCE TO BE ABLE TO TAKE ON SOME OF THAT RISK.
[00:45:03]
>> I THINK I ASKED MOST OF THEM IN OUR CONVERSATION THIS MORNING, AND I ASKED MANY OF THEM PUBLICLY FOR THE FIRST TIME LAST YEAR.
SO HOW NICE TO DO THIS THE SECOND TIME AROUND AND BE MORE FAMILIAR WITH IT AS A NEW MEMBER.
I GUESS, I ALWAYS LIKE TO THINK ABOUT THE POLICY DECISIONS BEHIND THE BUDGET.
I HAD QUESTIONS, AT THE TIME ABOUT THE NUMBER OF EMPLOYEES AND THEIR USE, AND THE STRATEGY AND POLICY THAT GOES INTO THAT.
SO COULD YOU SPEAK A LITTLE BIT MORE ABOUT WHAT THESE OFFICERS WILL BE DOING OR THE POLICY BEHIND IT, WHICH I SUPPORT.
JUST FOR THE BENEFIT OF THE PUBLIC, I THINK IT'S GOOD TO SHARE.
>> COUNCILOR, IS THERE ANY SPECIFIC YOU WANT TO GO OR DID YOU WANT ME TO JUST GO DOWN THE LIST?
>> JUST TO GO DOWN THE LIST, I THINK.
>> AGAIN, STARTING OFF WITH THE SENIOR PAYROLL ACCOUNTING SPECIALIST.
A LOT OF WHAT YOU SEE HERE TONIGHT IS PREPARED BY THE FINANCE DEPARTMENT, IN ADDITION TO ALL THE INCREASING DEMANDS, ALL THE TREND ANALYSIS, FORECASTING, CONTRACTS.
AND REALLY, AS WE'RE COMING OUT THE BACKEND, I WOULD ASSUME FROM THE COVID OR GETTING BACK TO SOMEWHAT OF A NORMAL, THE AMOUNT OF WORK IS INCREASING TO GO ALONG WITH THE ENVIRONMENT THAT WE'RE IN NOW.
THE LIABILITY WHEN IT COMES TO FINANCE AND BUDGETS IS REALLY QUITE TREMENDOUS.
IN ORDER TO KEEP GETTING THE TYPES OF PRODUCTS THAT WE'RE GETTING, LIKE TONIGHT AND ALL OF THE TIMES THAT WE'VE COME BEFORE YOU, AND HAVE THOSE COMPETENCE LEVELS IN BUDGET PROCESS, WE NEED TO GET SOME HELP IN THE ACCOUNT AS IN IT FOR AN ACCOUNTING SPECIALIST THERE.
I WILL SAY ALL OF THESE, MR. REYNOLDS MENTIONED IT, THERE ARE NO MANAGEMENT REQUEST FOR INCREASES.
ALL OF THESE ARE OPERATIONAL LINE LEVEL, SERVICE DELIVERY TYPE POSITIONS.
WE'RE ASKING FOR THREE POLICE OFFICERS THIS YEAR.
THE CHIEF HAS A REALLY BIG CHALLENGE ON HIS HAND, SPECIFICALLY, AS IT RELATES TO MARINE PATROL, THE BEACH PATROL.
IF ANYBODY HASN'T BEEN DOWN THERE RECENTLY, YOU OUGHT TO TAKE A LOOK SEE, BECAUSE THAT IN AND OF ITSELF IS A PATROL AREA BY ITSELF.
AND THE POLICE DEPARTMENT, THE CHIEF AND HIS TEAM DOES REALLY GOOD JOB, BUT THAT WORK IS GROWING INCREMENTALLY AS WELL.
WHAT WE'RE WORKING TO AVOID AS WE MOVE FORWARD INTO THE FUTURE, IS HAVING TO ROB PETER TO PAY PAUL.
LET'S BECOME PROFICIENT AT THOSE SERVICE DELIVERY THINGS SO THAT WE CAN PAY ATTENTION TO OTHER TRENDS AND OTHER PIECES TO THAT.
SAME THING WITH THE HVAC TECH, WE'RE ACTUALLY SPLITTING THAT BETWEEN PUBLIC WORKS AND UTILITIES.
WE HAVE ONE HVAC TECH FOR ALL OF THESE BUILDINGS AND IF HE TWISTS HIS ANKLE, WE'RE LIKE EVERYBODY ELSE CALLING AIR CONDITIONING COMPANIES TO TRY AND COME AND HELP US OUT.
SO WE HAVE TO STRENGTHEN THAT.
PUBLIC WORKS AND THE SERVICE WORKER SUPERVISOR, THESE FOLKS DIRECTLY ARE RESPONSIBLE FOR SERVICE DELIVERY LEVELS AT THE OPERATIONAL LEVELS FOR BOTH OF THOSE.
WHEN YOU TAKE A LOOK AT THE UTILITIES PLANT MECHANIC, I'VE BEEN WITH THE TOWN A LONG TIME, I NEVER REALIZED UNTIL I HAPPENED TO ASK A QUESTION THAT WITH ALL OF THE EQUIPMENT WE HAVE AT THE UTILITIES PLANT, WE DON'T HAVE A MECHANIC TO FIX ALL THAT STUFF.
SO I'M THINKING THAT'S A PRETTY CRITICAL POSITION THAT THESE FOLKS TRIED TO CONTRACT OUT AND YOU HAVE PEOPLE THAT DO LIGHT WORK THERE, SO THAT'S A REALLY VALUABLE PIECE AS WELL.
UTILITIES [NOISE] MUCH AS IN PURCHASING AN ASSET MANAGEMENT SPECIALISTS.
WHEN YOU LOOK AT ALL THE EQUIPMENT, ALL THE CHEMICALS, YOU'RE GOING TO SEE IN THE NEXT FEW MEETINGS, ALL THE REQUESTS FOR ALL THESE THINGS COMING IN.
THEY'RE SO BUSY, THEY DON'T HAVE ANYBODY THAT REALLY IS RESPONSIBLE FOR SPECIFICALLY MANAGING, PURCHASING AN ASSETS.
AND SO WE'VE GOT TO GET BETTER AT THAT AND ALIGN IT WITH OUR FINANCE DEPARTMENT.
THE UTILITY WORKER SUPERVISOR OUT THERE, THAT WAS PRETTY REMARKABLE TO ME.
IN GENERAL, THEY HAVE THREE TEAMS, AND TEAM 1 HAS A SUPERVISOR AND WORKERS, TEAM 2 HAS A SUPERVISOR AND WORKERS, TEAM 3 HAS NO SUPERVISOR AND WORKERS.
[00:50:02]
SO WE NEED TO BRING THAT BALANCE ACROSS THE LINE THERE.IN ASKING FOR THESE POSITIONS, AGAIN, IT GOES BACK TO PROVIDING THE EXCEPTIONAL LEVELS OF SERVICE THAT OUR RESIDENTS HAVE COME TO KNOW OF US.
AND WHAT I GET CONCERNED ABOUT IS OUR DEMANDS ARE INCREASING EXPONENTIALLY.
AND I THINK SOME OF YOU WHO HAVE STARTED TO SEE, WELL ALL OF YOU, WE PUT IT INTO FRIDAY REPORT, IS STARTING ALONG THE MEASURES NOW TO BE ABLE TO MEASURE THOSE WORKLOADS AND WE'LL BE ENHANCING THAT.
HOPE THAT ANSWERS YOUR QUESTION.
>> IT DOES, THANK YOU SO MUCH.
I DO THINK THE RESIDENTS WILL BENEFIT JUST FROM THE LEVEL OF DETAIL, PARTICULARLY WITH THE POLICE OFFICERS IN THE BEACH AND WATER PATROL.
AS THIS COUNTY IS GROWING SO QUICKLY, A NUMBER OF PEOPLE ARE COMING.
IF THE GROWTH ISN'T NECESSARILY HAPPENING IN JUPITER, IF IT'S HAPPENING IN THESE OTHER MUNICIPALITIES OR ON INCORPORATED AREAS, THESE PEOPLE ARE COMING TO OUR BEACHES, SO WE'RE REALLY HAVING TO ABSORB THAT COST, AND I THINK IT'S IMPORTANT.
I JUST WANTED TO ILLUSTRATE THAT POINT WITH THIS DISCUSSION.
>> IF I COULD ADD ONE MORE THING TO WHAT YOU JUST SAID, DON'T FORGET OUR MOTORING PUBLIC.
>> THE PEOPLE THAT ARE TRANSITING OUR COMMUNITY EVERY DAY.
>> WE'RE LOOKING AT INCREASE IN CRASHES AND ALL THOSE.
THOSE PEOPLE, THEY TAKE UP A LOT OF SERVICES FOR US AS WELL.
I THINK THAT'S REALLY IMPORTANT AS THE COUNTY EXPANDS.
I THINK IT'S REALLY IMPORTANT TO CONSIDER THE FACT THAT THE PEOPLE THAT COME IN AND OUT OF OUR TOWN EVERY DAY BECAUSE OF WORKLOAD IMPACT.
>> AND THEY'RE GOING EAST-WEST, THEY'RE NOT GOING NORTH-SOUTH, THEY'RE GOING EAST TOWARD THE BEACH.
UNDERSTOOD, THANK YOU. THAT'S ALL.
>> I DON'T HAVE ANY QUESTIONS, BUT THIS IS PROBABLY ONE OF THE FIRST YEARS IN THE PAST FOUR YEARS THAT I'VE SAT THROUGH THIS THAT I'VE HAD MAYBE THIS MUCH DETAILED AND EXPLAINED VERY WELL.
IT'S PROBABLY ONE OF THE EASIEST BUDGETS I'VE HAD TO SIT THROUGH.
I APPRECIATE ALL THE HARD WORK THAT YOU GUYS HAVE DONE.
WHEN I LOOK AT THE TOP OF THE LIST AS FAR AS POSITIONS GOES AND I SEE THAT SENIOR PAYROLL ACCOUNTING IT DESERVES TO BE AT THE TOP OF THE LIST BECAUSE OF HOW MUCH WORK YOU GUYS PUT IN.
I'VE NEVER REALLY A FAN OF RUNNING ANY DEPARTMENTS LEAN AND THAT ALWAYS LEADS TO BURNOUT WITH OUR EMPLOYEES.
I'M VERY SUPPORTIVE OF ADDING POSITIONS WHERE WE NEED THEM DESPERATELY.
I THANK THE CHIEF FOR BRINGING FORWARD, OF COURSE, THE POLICE OFFICERS, BECAUSE WITHOUT A SAFE COMMUNITY, YOU CAN'T HAVE A GOOD TIME FOR THEM. APPRECIATE IT.
>> [INAUDIBLE] QUESTIONS AND ANY FINAL COMMENTS?
>> NO, I JUST WOULD ECHO ON THE ADDITIONAL POLICE OFFICERS FOR THE MARINE PATROLS.
YOU KNOW THAT'S BEEN A THING OF MINE AND SHE'S BEEN VERY PATIENT WITH ALL OF THE PHONE CALLS ABOUT WHAT'S GOING ON ON THE WATER.
I'M GLAD THAT WE'RE GOING TO HAVE A REGULAR DUTY ASSIGNMENT THERE THAT WE COVER THAT, AND THEN WE HAVE ADDITIONAL HELP ON THE BEACH.
I DID SPEAK WITH SOME MEMBERS OF THE BEACH COMMITTEE AND THEY ARE ABSOLUTELY THRILLED THAT THERE'S GOING TO BE ADDITIONAL RESOURCES THERE. THANK YOU FOR THAT.
>> ONE MORE QUESTION BACK TO WATER.
IT SHOWED THAT SOME EXPENSES MAYBE COMING DOWN ON CHEMICALS.
REMEMBER BECAUSE OF COVID, THERE WERE DISTRIBUTION ISSUES AND ALL THAT.
BUT THAT'S COMING BACK ON EARTH.
>> MELODY, DO YOU WANT TO TALK ABOUT THAT?
>> IT'S JUST AN ASSUMPTION AT THIS POINT.
>> WELL, ACTUALLY THE CHEMICAL REDUCTION IS A RESULT OF OUR STAFF REFINING SOME OF THE IMPROVEMENTS TO OUR POST-TREATMENT SYSTEM WHERE WE ABLE TO REDUCE CAUSTIC CHEMICAL.
WE ACTUALLY REDUCE THE AMOUNT OF CHEMICAL WE'RE FEEDING THERE.
THEN WE'RE NO LONGER USING GAS CHLORINE AT THE RO PLANT.
WE'RE USING LIQUID CHLORINE, WHICH IS MUCH LESS EXPENSIVE THAN GAS CHLORINE AND YOU'LL SEE IN THE CIP WE HAVE, I THINK IT'S FIVE YEARS OUT, BUT A PLAN OR A PROJECT TO TRANSFER THE WHOLE PLANT OR TURN THE WHOLE PLANT OVER TO LIQUID CHLORINE FROM GASOLINE, WHICH IS SAFER.
THAT 200,000 REDUCTION IS, WE EXPECT IT TO BE REAL.
WE ARE GETTING CHEMICAL BIDS NEXT TUESDAY, SO WE'LL BETTER KNOW THE PRICING THERE, BUT WE DO EXPECT EVERYTHING TO STAY PRETTY STABLE.
>> OKAY. I WAS JUST WONDERING IF IT'S JUST PRODUCTION WAS UP WORLDWIDE.
CHEMICALS WERE READILY AVAILABLE AND PRICES WERE GOING DOWN, THAT WAS ALL. [INAUDIBLE].
>> [OVERLAPPING] THE CRAZINESS FROM LAST YEAR DOESN'T APPEAR TO BE COMING INTO NEXT YEAR.
>> FINAL THOUGHTS, JUST GREAT JOB AGAIN.
>> FINAL THOUGHTS. GREAT JOB EVERY YEAR.
COUNCILOR MAY, IT GETS EASIER EVERY YEAR.
[00:55:03]
THE PRESENTATION'S BETTER.I LOVE THE REVENUE MANUAL AND WE COVERED EVERYTHING IN OUR MEETING.
>> I REMEMBER THE CHEMICAL COSTS WHEN HE FIRST TOLD ME THE CHEMICAL COSTS WERE DOWN, AND MY RESPONSE TO YOU AS THEY CAN ONLY GO DOWN FROM [INAUDIBLE] LAST YEAR.
AND I UNDERSTAND THAT YOU SPOKE WITH THE CONSULTANT AS WELL ABOUT THE WATER RATE.
IT IS MUCH EASIER, I THINK IN PART BECAUSE IT'S SECOND YEAR FOR ME ON MY PART, BUT ALSO BECAUSE IT IS SO WELL DONE.
YOU'VE ANSWERED EVERY QUESTION, ALL HUNDRED OF THEM THIS MORNING, YESTERDAY.
I'M SO GRATEFUL AND FOR THE MANUAL AS WELL, I HAVE TO SAY THE LEVEL OF DETAIL THAT GOES INTO WITH EACH ITEM PROVIDING THAT TREND OVER YEARS SPECIFIC TO JUPITER IS INCREDIBLE.
THANK YOU FOR THAT, I LOOK FORWARD TO GOING THROUGH THIS PROCESS THIS YEAR.
>> COUNCILOR MAY, ANY FINAL COMMENTS?
>> NO, JUST FOR MY QUESTION COMMENT SECTION EARLIER, SO JUST AGAIN TO ECHO, REALLY APPRECIATE THE HARD WORK THAT YOU GUYS PUT INTO THIS YEAR'S BUDGET.
I APPRECIATE YOU BRINGING FORWARD THE 90/10 SPLIT FROM THE INSURANCE ON THE EMPLOYEES.
FOR A LOT OF THE EMPLOYEES, THAT'S GOING TO BE A HUGE DIFFERENCE IN THEIR MONTHLY EXPENSES AND STUFF.
I HOPE THAT HELPS ALLEVIATE ANY FINANCIAL PRESSURE.
ANY OF THEM MAY BE UNDER 5% RAISE.
I HOPE I'LL SET AN INFLATIONARY COSTS FOR THIS YEAR, WILL DEFINITELY HELP AS WELL.
>> I WILL SAY THE 90/10 SPLIT, TO SOME PEOPLE, WHENEVER WE'RE WORKING ON THE NUMBERS, I MEAN, WE'RE DEALING WITH MILLIONS OF DOLLARS.
BUT WHEN YOU START LOOKING AT IT, YOU START THINKING ABOUT SOME OF THE PUBLIC WORKS EMPLOYEES, OR SOME OF THE LINE EMPLOYEES THAT ARE WORKING IN THE TOWN.
ESPECIALLY IF THEY HAVE A FAMILY, $3,000 A YEAR, THERE COULD BE A LOT OF MONEY, THAT'S GAS MONEY.
THEY LIVE IN PORT ST. LUCIE, DRIVE INTO TOWN OR ANYWHERE ELSE, THAT COULD BE A LOT OF MONEY.
>> I JUST WANT TO ADD ONE MORE THING AS WELL.
I PULLED UP THE TOWN OF JUPITER PROPERTY TAX RATES AND THE TOTAL TOWN MILLAGE WITH THE DEBT SERVICE.
THE FACT THAT WE'LL BE OUT OF DEBT IN 2025 OR THE WAVE MANAGED DEBT, THE TOTAL MILLAGE YOU HAD TOLD ME WAS 2.5968 THIS YEAR IF WE WERE TO KEEP IT FLAT WITH DEBT.
THAT WOULD BE THE SECOND LOWEST WE'VE EVER HAD SINCE 2004, EXCEPT FOR ONE YEAR, WHICH IS 2008. SO THAT'S PRETTY GOOD.
>> ABSOLUTELY. SOMETHING TO BE PROUD OF.
>> I HAVE A FEW COMMENTS. EXCELLENT PRESENTATION COMMENT TO MR. REYNOLDS THAT THIS BUDGET PACKAGE, HE AND HIS TEAM DO AN INCREDIBLE JOB.
I FIRED OFF SOME QUESTIONS TO HIM BUT SAID DON'T TRY TO ANSWER BECAUSE I KNOW IT'S ALREADY IN HERE.
IN THIS JUST ABOUT EVERYTHING YOU COULD WANT IS IN THERE.
I'M STILL PULLING ON SOME THINGS, BUT I HAVE THE TIME BETWEEN NOW, AND THEN QUITE FRANKLY, THE ADOPTION HEARING.
BUT JUST TO INDICATE WHERE I AM AT THIS POINT IN TIME, NUMBER 1, I'M REALLY KIND OF WE'RE BLESSED.
WE WEREN'T EXPECTING TO GET THAT AD VALOREM TAX BASE INCREASE.
IT'S GOING TO END AT SOME POINT IN TIME, SO I'M CONCERNED ABOUT THAT.
LAST YEAR I HAD WANTED TO GET SOME AD VALOREM TAX RATE REDUCTION AND MY TARGET LAST YEAR HAD BEEN THREE PERCENT SO THAT FIFTY PERCENT OF THE PUBLIC RESIDENTS WOULDN'T HAVE ANY INCREASE.
THERE STILL IS 50% OF OUR RESIDENTIAL UNITS ARE NON HOMESTEAD.
THEY ARE SEEING LIKELY MUCH HIGHER, BUT TO 3%.
I'M NOT SETTING A TARGET, BUT I'M TARGETING SOME AD VALOREM TAX RATE ADJUSTMENT.
I'M HOPING THAT WE WORK TOWARDS THAT.
NUMBER 1, YOU START OFF WITH THIS.
I DIDN'T WANT TO SUGGEST HERE THAT I'M ABOARD WITH CONSUMING THE FULL MILLAGE.
NUMBER 2, ON THE HEALTH INSURANCE FUND, HAD DISCUSSIONS ABOUT THAT FOR A NUMBER OF YEARS.
I'M NOT QUITE SUPPORTIVE OF WHAT'S BEEN ASKED, BUT I'VE SAID A NUMBER OF YEARS, I'M VERY SUPPORTIVE OF MOVEMENT IN THE PRIVATE SECTOR FAMILIAR WITH.
I DID SOME OF MY OWN BENCHMARKING TODAY ON THIS.
[01:00:04]
I HAVE NO ISSUE WITH THE 90/10 ON THOSE THAT ARE IN THIS LOWER SALARY RANGE.BUT IN THE PRIVATE SECTOR, THEY DO IT BY SALARY RANGE.
I CAN TELL YOU I PAY 20-SOMETHING PERCENT, I WILL WORK WITH STAFF.
I JUST WANT TO SUGGEST I'M NOT ALL IN ON THIS, BUT CERTAINLY I GET IT FOR MUCH OF OUR STAFF.
AGAIN, THIS IS NOT THE PLACE TO GO INTO THAT, BUT I JUST WANTED TO HAVE SUGGESTED THAT I PROPOSE THAT FOR YEARS, I DID MY ONE ON FOUR BUT NOTHING HAPPENED FROM IT, SO I WORK WITH THEM ON THAT.
I DO THINK THAT YOU LOWER IT, THERE'S AN EXPECTATION.
I DON'T KNOW IF IT WAS TAKEN INTO ACCOUNT THAT SOME THAT HAVE OPTED OUT MAY OPT BACK IN.
IS THAT BEEN ACCOUNTED FOR IN YOUR NUMBERS?
IT'S ONLY ON ACTIVE PARTICIPANTS.
>> UNDERSTAND, BUT BECAUSE WHAT HAPPENS IS SOME OF THOSE THAT OPT OUT THEY'RE GETTING INSURANCE FROM SOMEWHERE ELSE.
I DON'T KNOW WHAT THE TALENTS POLICY HAD BEEN ON THAT, BUT I KNOW MY DAY JOB IS YOU CAN'T PICK AND CHOOSE WHEN YOUR SPOUSE HAS WORKED FOR SOMEONE ELSE, I DON'T KNOW WHAT THE RULES ARE ON THAT, I DO THINK WE SHOULD LOOK INTO THAT.
AGAIN I'LL SUPPORT THE 90/10 FOR SOME SALARY RANGE AND THEN I THINK SHOULD BE SOME KIND OF BLEND.
THEN ON SALARY INCREASE, I ACCEPT THE STARTING POINT.
I'D LIKE TO SEE RIGHT NOW THE BUDGET IS BALANCED.
ANYTHING I ASKED ON AN UPSIDE HAS TO BE OFFSET BY A REDUCTION.
LET'S JUST SAY I'LL THROW A 6% LIKE I DID LAST YEAR.
I THINK PARTICULARLY FOR THE PUBLIC, WHEN WE LOOK AT WHERE THE INFLATION RATE IS RIGHT NOW, AND BY THE WAY, I GOT SIGNIFICANT LESSON I HAD THE LAST TWO YEARS.
BUT NONETHELESS, THAT'S THE PLEASURE I HAVE OF BEING MAYOR IS WE CAN DO SOMETHING DIFFERENT HERE.
BUT MY ADVOCACY FOR MORE THAN FIVE PERCENT IS, I THINK OUR EMPLOYEES FELL BEHIND LAST YEAR.
I'M MORE LOOKING AT THE TOTALITY OF OVER A COUPLE OF YEAR PERIOD OF TIME.
AGAIN, I JUST WANTED TO SUGGEST THAT, BUT AGAIN, YOU CAN'T DO ALL.
I'M NOT GOING TO RAISE THE MILLAGE RATE MORE THAN IS THERE AND I WANT TO REDUCE IT.
OBVIOUSLY, YOU HAVE TO FIND SOMEWHERE THERE ARE SOME OFFSETS.
ON THE NEW STAFFING POSITIONS, I DON'T SUPPORT ALL OF THEM.
THAT'S THE SENIOR PAYROLL ACCOUNTING AND THE THREE POLICE OFFICERS, IT DOESN'T MEAN I DON'T SUPPORT ULTIMATELY MAYBE THE OTHERS, SOME OR ALL.
IN THE PROCESS. I POST A QUESTION, I KNOW WAS LAST NIGHT OR THIS MORNING THAT I DIDN'T EXPECT AND SAID "DON'T TRY TO ANSWER BECAUSE IT'S THE NUMBERS ARE IN HERE." BUT I JUST ASK AT A HIGH LEVEL AND LOOK AT SOME DEPARTMENTAL BUDGET INCREASES, LET'S SAY VERSUS 2020/'22 ACTUALS.
IN OVER TWO-YEAR PERIOD VERSUS 2022 ACTUALS, THREE DEPARTMENTS HAD ABOUT A 60 PERCENT INCREASE.
IT DOES A LOT OF FACTORS THAT GO INTO THAT.
QUITE FRANKLY, THE DETAIL IS IN THE BOOK.
I JUST WANT TO CHALLENGE THAT.
LOOK, THIS IS A WORKSHOP AND THIS IS WE SHARE WITH EACH OTHER THAT I'M GOING TO PROBE AT THAT TO SEE WHETHER OR NOT THERE'S AN OPPORTUNITY TO SOMETHING LESS THAN THAT, IF YOU WILL.
I NEED THAT IF I WANT TO GET A REDUCTION IN THE TAX RATE AND I WOULD NEED THAT IF I WANT TO INCREASE THE SALARY ADJUSTMENT.
THERE WAS TIME IN THE PAST BY THE WAY, LOOK AT PROFESSIONAL SERVICES.
I'D COMMENTED THIS WASN'T ON THE SLIDE,
[01:05:01]
BUT THOSE PROFESSIONAL SERVICES, ONE OF THAT HE REFERRED TO WAS HELPING TO MANAGE CAPITAL PROJECT IMPLEMENTATIONS.THOSE ARE, I CALL THEM ONE TIME TO CATCH UP.
IT'S IMPORTANT FOR ME TO DISTINGUISH THAT BECAUSE I LOOK AT ANYTHING THAT'S A CONTINUUM I WORRY ABOUT.
WHAT WE INCREASE THIS YEAR BECOMES A CONTINUUM IN NEXT YEAR.
SO I'M ALWAYS MINDFUL OF THAT, ALWAYS WORRYING ABOUT NUMBER 1, REVENUES GOING DOWN IF THE ECONOMY DOESN'T FARE WELL.
THE [INAUDIBLE] DID ANNOUNCE DAY BEFORE YESTERDAY THAT THEY'RE PLANNING TO CONTINUE TO RAISE RATES, SO MARKET IMMEDIATELY IMPACTED.
SO WHAT IS THAT GOING TO DO [NOISE] IT'S GOING TO PUT A DAMPER ON SOME STUFF, SO WE DON'T KNOW WHAT'S GOING TO HAPPEN THERE.
THE ONLY THING WE KNOW AND THAT WE CAN COUNT ON IN THIS BUDGET FOR THE REVENUE FOR THE MOST PART IS THE AVALON TAXES BECAUSE IT'S SET.
THE OTHER REVENUES CAN CHANGE.
AGAIN, CONCERN THAT I HAVE, BUT THE POINT IS UNPROFESSIONAL SERVICES.
I DO WANT TO GO BACK AND SO I'M GOING TO SPEND SOME TIME LOOKING BACK MORE LONGER TERM BECAUSE I SEEM TO RECOLLECT, WE ACTUALLY HAD ADDED SOME STAFF IN YEARS PAST TO MANAGE CAPITAL PROJECTS.
FOR NOW WE'RE GOING TO OUTSOURCE IT THEN.
I WANT TO MAKE SURE WE'RE SHOWING THAT UP, IF YOU WILL, AND MAKING SURE YOU KNOW WHAT PEOPLE ARE DOING.
I KNOW THERE'S A LOT OF WORK, BUT I JUST WANT TO CONTINUE TO MAKE SURE THAT WE REMAIN LEAN.
BECAUSE LOOK, YOUR GRAPH SHOWING HOW LITTLE CONSTRUCTION INCREASES ADDS TO THE TAX BASE.
>> JUST REAL QUICK, MAYOR, I KNOW YOU'D MENTIONED PROFESSIONAL SERVICES.
I WILL TELL YOU, ONE OF THE DIFFICULTIES THAT WE'RE RUNNING INTO IS THAT PROFESSIONAL STAFF THAT YOU'RE REFERENCING RELATING TO PROJECT MANAGEMENT, SPECIFICALLY IN THOMAS'S AREA AND THEN PUBLIC WORKS AREA.
HIS OLD POSITION, JUST THE RECRUITMENT AND BE ABLE TO GET AN EMPLOYEE.
SO WE'RE TRYING TO FIND WAYS TO BE ABLE TO AUGMENT [OVERLAPPING].
>> NO, I'M SUPPORTIVE OF THAT.
>> I'M SUPPORTIVE OF DOING IT BECAUSE I SAID I CALL THAT A ONE TIME.
>> I'M CERTAINLY SUPPORTIVE OF GETTING STUFF DONE SOONER THAN THIS STUFF LANGUISHING FOR MANY YEARS.
SO I'M VERY SUPPORTIVE OF THAT.
MY ONLY SUGGESTION IS WHEN YOU'RE DOING THE TOTAL NUMBER OF STAFFING YOU HAVE, THEN IF THAT WORKLOAD WAS GOING DOWN, THEN OTHER WORK COULD BE DONE.
DO WE NEED THEN ALL 10? I'M JUST SAYING.
>> THAT'S JUST LIKE THE IDEA WITH THE BUILDING DEPARTMENT AS WELL, WITH THE INSPECTION OF STAFF.
THAT'S THE REASON WE DO THOSE CONTRACTS.
>> NO, I UNDERSTAND. I DIDN'T SAY IT HERE.
I'VE SAVED FOR THE NEXT MEETING, BUT THE BUILDING ENTERPRISE FUND IS THE GOVERNMENTAL BEST FISCAL MANAGEMENT PRACTICE.
I SAY THAT, HAVE I EVER NOT SAID THAT? IT IS, BECAUSE THEY HAVE A MECHANISM OR THEY USE CONTRACTED HELP TO GEAR UP AND BACK DOWN, AND THEY MANAGE IT SO WELL.
BUT ANY EVENT, THAT'S REALLY THE SUMMARY.
THIS IS A WORKSHOP, BUT WE'RE STILL WORKING ON IT.
I CERTAINLY WANTED TO MAKE SURE MY COLLEAGUES UNDERSTOOD THINGS THAT I'M WORKING ON.
I DON'T DOUBT YOU ALL MAY HAVE BEEN STILL WORKING ON THOSE ITEMS, BUT I JUST WANTED TO GET THEM HERE.
BECAUSE THE NEXT TIME WE TALK ABOUT THIS, WE'RE IN A MEETING AND WE'RE SETTING TRIM.
I HOPE BY THEM THEY HAVE MADE SOME PROGRESS IN MY MIND, AND HOPE YOU ALL DO TOO. WITH THAT.
>> MR. MAYOR, JUST TWO LITTLE SMALL ITEMS AS I'VE SLIPPED THROUGH SOME OF MY NOTES, IF I CAN, THAT I FAILED TO MENTION WHEN WE'RE GOING THROUGH THE PRESENTATION.
ONE THING I DID WANT TO POINT TOWARDS IS THE HYBRID WORKFORCE.
I KNOW WE'VE BEEN TALKING ABOUT THAT.
THERE IS SOME COST OF $52,000 THAT IS INCORPORATED WITHIN THE GENERAL FUND FOR THE HYBRID WORKFORCE, AS WELL AS $12,000 IN THE BUILDING FUND AND $12,000 IN THE UTILITIES TO HELP WITH THAT CREATION OF THAT HYBRID WORKFORCE GOING FORWARD INTO FY24.
WE ARE STARTING TO LOOK AT THAT, STARTING TO LOOK AT THE VIRTUAL LOBBY, THOSE TYPE OF THINGS.
YOU HEAR ABOUT SOME OF THE COUNTY OFFICES THAT ARE STARTING TO IMPLEMENT SOME OF THOSE TYPE OF ITEMS. WE'VE BEEN LOOKING AT IT AS WELL.
I JUST WANTED TO REMIND YOU OF THAT.
ONE OTHER ITEM, THE SEAGRASS BUOYS, IT IS A STRATEGIC INITIATIVE.
I JUST WANTED TO REMIND THE COUNCIL, WE HAVE PUT A $1,000 IN THE OPERATING BUDGET,
[01:10:01]
SPECIFICALLY P AND Z FOR THAT DONATION, WORKED WITH STEPHANIE ON THE COST OF THAT GOING FORWARD.THERE IS GOING TO BE A REQUEST COMING IN FROM THE FOUNDATION OUTLINING THEIR WORK PROGRAM SO WE CAN GET A BETTER HANDLE ON WHAT THAT ACTUAL DONATION COST IS.
I JUST WANTED TO MENTION THOSE TWO ITEMS SPECIFICALLY.
>> OKAY, NO OTHER COMMENTS? [OVERLAPPING]
>> MAYOR, COULD I JUST ADD ONE MORE THING, NOT BUDGET RELATED IF I COULD?
>> YOU'RE GOING TO SEE IT TOMORROW IN YOUR FRIDAY REPORT, WE'RE PRETTY EXCITED ABOUT SOME GOOD NEWS.
THE FLORIDA LEAGUE OF CITIES HAS AWARDED THE JUPITER COMMUNICATIONS DEPARTMENT THE MUNICIPAL ACHIEVEMENT AWARD FOR THE CATEGORY OF PUBLIC ENGAGEMENT FOR THE JUPITER PASSPORT PROGRAM.
IT'S REALLY A PRESTIGIOUS AWARD, AND REALLY PROUD AND IMPORTANT.
I JUST WANTED TO SHARE WITH YOU TONIGHT BEFORE YOU SEE IT IN MY FRIDAY REPORT TOMORROW.
>> THANKS. IN MY CASE I KNEW IT WAS GOING TO HAPPEN.
[LAUGHTER] BECAUSE I HAD TO SIGN A LETTER SUPPORTING THE APPLICATION.
I THOUGHT, OH MY GOSH, IF THAT ONE DOESN'T LAND, WHAT IS THE WORD FOR? GREAT WORK. THANK YOU.
>> IT WAS YOUR INITIATIVE, RIGHT?
>> IT WAS THE PUBLIC'S INITIATIVES.
TIME IS NOW 7:11, WE ADJOURN THE MEETING.
>> YOU'RE TOO HUMBLE. [LAUGHTER]
* This transcript was compiled from uncorrected Closed Captioning.