[00:00:03]
>> THE TIME IS 6:00 P.M. GOOD EVENING, EVERYONE, AND WELCOME.
[Call to Order]
I'D LIKE TO CALL THIS MEETING TO ORDER.THIS IS THE TOWN COUNCIL BUDGET WORKSHOP OF JUNE 20TH.
MAY I HAVE THE ROLL CALL, PLEASE?
>> MAYOR KURETSKI. VICE MAYOR SUNDSTROM.
>> COUNCILOR DELANEY. COUNCILOR FORE?
>> ACTING TOWN MANAGER, MORETTO.
>> THANK YOU. DO WE HAVE ANY CITIZEN COMMENTS?
>> LET'S TURN IT OVER TO STAFF.
[1. Discussion of the Proposed Operating Budget for Fiscal Year 2025.]
>> VICE MAYOR, WE'LL HAVE DIRECTOR OF FINANCE, SCOTT REYNOLDS PRESENTING THIS EVENING.
>> GOOD EVENING. SCOTT REYNOLDS, FINANCE DIRECTOR FOR THE TOWN OF JUPITER.
I ALSO WANT TO INTRODUCE DAWN CLARK, THE ASSISTANT FINANCE DIRECTOR WITH THE TOWN.
JUST WANT TO SAY HERE'S FISCAL YEAR 2025.
IT JUST SEEMED LIKE WE JUST FINISHED TALKING ABOUT 2024.
STARTING INTO 2025, NOW STARTING IN THE BUDGETARY PROCESS.
I WILL SAY GOING OUT TO NEXT YEAR AND LOOKING AT THE PROJECTIONS, WE'RE IMPLEMENTING THE FIRE DEPARTMENT.
WE ALL KNOW THAT. IF IT WASN'T FOR FIRE, IT WOULD PROBABLY BE A REGULAR YEAR HERE IN THE TOWN FROM AN OPERATIONAL STANDPOINT.
WITH THAT, WE'LL JUST JUMP STRAIGHT INTO THE PRESENTATION.
SOME OF THE THINGS I DID WANT TO TALK ABOUT THAT WE'VE DONE.
WE'VE TALKED ABOUT OVER THE LAST FEW YEARS IS INFLATION AFTER COVID AND HOW WE'VE HANDLED THAT AS A TOWN, SPECIFICALLY FOCUSING IN ON OUR EMPLOYEES AND SOME OF THE THINGS THAT WE'VE DONE TO HELP THEM THROUGH THIS PROCESS AND TO MAKE SURE THAT WE'RE CONTINUING TO ATTRACT THE BEST AND BRIGHTEST AND MAINTAINING OUR WORKFORCE, AND STAYING COMPETITIVE.
ONE OF THE THINGS THAT WE'VE CONTINUED TO DO IS MAINTAIN THE LEVEL OF HSA FUNDING FOR OUR EMPLOYEES IN THE HEALTH PLAN.
WE ALSO REDUCED THE AMOUNT OF CONTRIBUTION FROM THE EMPLOYEES FROM AN 80-20 SPLIT OF THE HEALTH INSURANCE PREMIUMS TO A 90-10 SPLIT.
ALSO IN 2023, IF YOU REMEMBER, INFLATION WAS UP AROUND 9%.
WE GAVE THE EMPLOYEES A 4% INCREASE AND ALSO A $2,800 INFLATIONARY SUBSIDY THAT STARTED ON OCTOBER 1.
THEN IN 2024, WE GAVE A 5% INCREASE, AND THEN WHAT WE'RE PROPOSING FOR FY '25 IS A 5% INCREASE.
WE'LL TALK ABOUT THAT A LITTLE BIT AS WE GO THROUGH THE PRESENTATION BECAUSE ONE OF THE THINGS WE USE AS OUR BENCHMARK TO LOOK TO SEE WHAT WE SHOULD BE PROPOSING IS THE CPI.
WE LOOK AT IT ON THE NATIONAL LEVEL, BUT MORE IMPORTANTLY, WE LOOK AT IT AT THE MIAMI DADE WEST PALM BEACH LEVEL, BECAUSE THAT'S REALLY THE ENVIRONMENT THAT THE EMPLOYEES ARE LIVING IN.
ONE OF THE BIG ITEMS THAT WE'VE STARTED AS A TOWN IS THE JUPITER FIRE RESCUE DEPARTMENT.
WE'RE NOW ON THE IMPLEMENTATION PHASE, STARTED THAT OCTOBER 1, ACTUALLY LAST YEAR IN AUGUST WHEN THE COUNCIL GAVE DIRECTION.
BUT STARTING IN FY '24, WE PURCHASED THE FIRE APPARATUS.
WE'VE HIRED A FIRE CHIEF, CHIEF DONATTO.
WE'VE ALSO HIRED ADDITIONAL STAFF THIS YEAR AND STARTED WITH A MEDICAL DIRECTOR CONTRACT THAT'S BEEN APPROVED BY THE TOWN COUNCIL.
WE WILL SOON BE APPLYING FOR THE COPCN AND DEVELOPING OPERATIONAL PROTOCOLS THROUGHOUT THE SUMMER.
ONE OF THE BIG ITEMS I WANTED TO TALK ABOUT THIS EVENING, A LITTLE BIT MORE IN DETAIL OUTSIDE OF JUST THE REGULAR OPERATING BUDGET IS THE $20 MILLION ISSUANCE WE'LL BE BRINGING BEFORE THE COUNCIL, AS YOU'RE AWARE.
WE'VE STARTED THE ENGINEERING PROCESS FOR THE TWO NEW FIRE STATIONS IN THE TOWN.
WE WILL SOON BE BRINGING BEFORE COUNCIL A CONSTRUCTION CONTRACT.
IN ORDER TO APPROVE A CONTRACT, YOU HAVE TO HAVE THE FUNDING.
ONE OF THE THINGS THAT WE'VE ALWAYS TALKED ABOUT AS FAR AS THE IMPLEMENTATION OF FIRE IS THAT WE WERE GOING TO UTILIZE A MIXTURE OF FUND BALANCE AND DEBT SERVICE.
ONE OF THE ITEMS WE'RE GOING TO BE DISCUSSING THIS EVENING IS HOW WE'RE GOING TO PAY FOR THAT $20 MILLION IN DEBT ISSUANCE.
ONE OF THE THINGS WE'RE GOING TO BE BRINGING TO THE TOWN COUNCIL.
GOING INTO NEXT YEAR, OUTSIDE OF THE NEW STATION CONSTRUCTION, CONTINUING ON WITH IMPLEMENTATION, WE'LL BE HIRING ADDITIONAL STAFF FOR THE FIRE DEPARTMENT, ORDERING EQUIPMENT, AND CONTINUING WITH THE DEVELOPMENT OF PROTOCOLS.
THERE'LL BE A NUMBER OF STUDIES THAT WE'LL BE DOING FROM THE FINANCE END, AND WE'LL TALK A LITTLE BIT MORE ABOUT THAT AS WELL.
[00:05:01]
THE BUDGET OVERVIEW ITSELF, TALKING ABOUT THE REVENUE ASSUMPTIONS.WE'RE LOOKING TO MAINTAIN THE MILLAGE RATE AT 2.3894.
IF YOU REMEMBER LAST YEAR, WE WERE ABLE TO REDUCE THE MILLAGE, WHICH WE HAVE DONE, AND WE ARE CURRENTLY ASKING THE COUNCIL TO MAINTAIN THAT LEVEL OF 2.3894.
WE HAD AN EARLY ESTIMATE COME IN FROM THE PROPERTY APPRAISER OF AN 8.8% INCREASE IN THE VALUATIONS FOR THE TOWN.
I'M GOING TO SPEAK A LITTLE BIT MORE ABOUT THAT BECAUSE THAT'S PRETTY SIGNIFICANT.
ALSO, THE AD VALOREM TAX INCREASE IS JUST OVER THREE MILLION DOLLARS IN TAXES, WHICH EQUATES TO A $1.4 BILLION INCREASE IN GROSS VALUATIONS.
FOR THE WATER FUND, WE'RE REQUESTING A 3% RATE INDEX, FOR THE STORM WATER FUND, WE'RE PROPOSING A 7% RATE INDEX, WHICH IS $0.49 PER ERU.
ALSO, ONE OF THE THINGS I WANT TO POINT OUT IS THE IMPLEMENTATION OF THE FIRE FUND.
WE TOLD THE COUNCIL THAT WE WOULD SEGREGATE THE FUNDING FOR THE FIRE DEPARTMENT AS WE GO INTO IMPLEMENTATION, AND THEN FINALLY INTO OPERATION. WE'VE BEEN DOING THAT.
WE WILL BE DOING A TRANSFER FROM THE GENERAL FUND.
I'LL TALK A LITTLE BIT MORE IN DETAIL ABOUT THAT, BUT ONE OF THE THINGS THAT WE SAID LAST YEAR IS THAT, AGAIN, WE'LL BE USING FUND BALANCE TO HELP FUND SOME OF THESE ONGOING OPERATIONS AND DEBT SERVICE.
WHAT I'M PLEASED TO ANNOUNCE IS THAT WE'LL BE USING OUR INTEREST EARNINGS THAT WE'RE EXPECTED TO GET NEXT YEAR, $2.9 MILLION IN ADDITIONAL INTEREST EARNINGS THAT WE'LL BE ABLE TO USE FOR THE IMPLEMENTATION OF THE FIRE DEPARTMENT NEXT YEAR.
ANOTHER THING THAT WE NEED TO POINT OUT IS THE GENERAL OBLIGATION MILLAGE.
IN FY '25, THIS WILL BE THE LAST YEAR FOR THE GENERAL OBLIGATION PAYMENTS BY THE CITIZENS.
WE'VE ACCUMULATED OVER A VERY LONG PERIOD OF TIME RESERVE FUNDING OF $595,000 AND WE WANT TO USE THAT MONEY TO BUY DOWN LAST YEAR OF THE DEBT SERVICE TO REDUCE THE MILLAGE FOR THE CITIZENS.
THE AD VALOREM REVENUE ASSUMPTION IS VERY IMPORTANT.
WE'RE LOOKING AT AN 8.8% INCREASE.
THIS IS AN EARLY ESTIMATE BY THE PROPERTY APPRAISER.
ONE OF THE THINGS I WANT TO POINT OUT IS LESS THAN 1%, AGAIN, IS DUE TO NEW CONSTRUCTION.
IT'S LIKE 0.77% OF THAT 8.8 IS NEW CONSTRUCTION.
BUT WHEN YOU START COMPARING THIS 8% TO OUR PEERS AROUND THE AREA SUCH AS PALM BEACH GARDENS, WEST PALM BEACH, THAT 8% IN JUST VALUE IS THE HIGHEST.
THEIRS IS MAINLY DRIVEN BY NEW CONSTRUCTION.
WE'RE A BUILD OUT, BUT OUR VALUES ARE VERY HIGH.
I THINK THAT'S VERY IMPORTANT TO NOTE.
ANOTHER THING I'D LIKE TO NOTE WHEN YOU LOOK AT THE AD VALOREM ASSUMPTIONS IS THE $1,167,000 THAT WE WILL BE RECEIVING FROM THE CRA, THAT'S ONLY THE TOWN'S PORTION.
WE ALSO RECEIVED A PORTION FROM PALM BEACH COUNTY.
CONTINUING ON WITH THE GENERAL FUND PORTION OF THE REVENUE FORECAST.
THE STATE SHARED REVENUES STARTING TO FLATTEN OUT IN THE SALES TAX, WHICH IS EXPECTED, AND THAT'S PRIMARILY DUE TO WHAT THE FEDS ARE DOING WITH THE INTEREST RATES.
WE FEEL THAT THAT'S EQUATED TO ONE ANOTHER, BUT WE WON'T GET THOSE ESTIMATES UNTIL JULY, AUGUST.
THIS IS BASED ON HISTORICAL DATA AND WHAT WE'RE SEEING COMING IN.
ONE OF THE THINGS I SPECIFICALLY WANTED TO POINT OUT, AGAIN, WAS THE INTEREST EARNINGS, AN ANTICIPATED $2.9 MILLION INCREASE IN INTEREST EARNINGS OVER WHAT'S PROJECTED IN '24.
ON THE EXPENSE SIDE OF THE HOUSE FOR A BUDGET OVERVIEW.
WHEN YOU LOOK AT THE BUDGET AND NOT INCLUDE THE FIRE DEPARTMENT, WHICH WAS A BUDGET AMENDMENT ON THE 3RD OF OCTOBER, WE HAVE A $7.7 MILLION INCREASE IN COST.
BUT WHEN YOU ADD THAT IN, IT LOOKS AS THOUGH WE'VE ACTUALLY HAD A DECREASE OVER FY 24 ADOPTED BUDGET, BUT 7.7 MILLION WITHOUT THE FIRE DEPARTMENT.
[00:10:02]
HEALTHCARE COST ASSUMPTIONS.AGAIN, THIS IS SOMETHING THAT THE TOWN IS VERY PROUD OF.
WE'VE WORKED VERY HARD OVER THE LAST 10 YEARS.
WE ANTICIPATE TO MEET OUR GOAL OF $10 MILLION.
THAT'S BEEN THE GOAL OF HAVING $10 MILLION IN OUR RESERVES TO BE ABLE TO WEATHER ANY KIND OF STORMS THAT MAY COME OUR WAY.
THAT WILL ALLOW YOU, AS THE COUNCIL, TO MAKE SOME DECISIONS ON WHAT YOU CAN DO WITH SOME OF THAT EXTRA CASH.
YOU CAN PAY THE HSA FUNDING FROM IT.
RIGHT NOW, THE DIFFERENT FUNDS CONTRIBUTE FOR THAT HSA FUNDING FOR THE EMPLOYEES, THAT CAN COME DIRECTLY FROM THE FUND.
YOU CAN HAVE A PREMIUM HOLIDAY.
THERE'S A NUMBER OF DIFFERENT IDEAS THAT WE CAN DO WITH THAT ADDITIONAL FUNDING, AND WE CAN COME BACK TO THE COUNCIL ONCE WE REACH THAT NUMBER.
FOR NEW POSITIONS, THERE'S A TOTAL OF 4.5 NEW POSITIONS BEING REQUESTED.
YOU CAN SEE FROM THE LIST OF THE POSITIONS, WE HAVE AN HR TECHNICIAN, AN AUTO TECHNICIAN, A SERVICE WORKER IN THE GROUNDS DIVISION, A REC ASSISTANT, AND A REC COORDINATOR.
THESE POSITIONS ARE FRONTLINE POSITIONS THAT ARE BEING REQUESTED, AND WE FEEL THAT THEY'RE THERE TO ENHANCE OR CONTINUE ON WITH THE SERVICE LEVELS THAT IS ANTICIPATED BY THE CITIZENS, TOTAL OF $371 IN THE GENERAL FUND.
THE FIRE POSITIONS THAT ARE BEING REQUESTED, THERE ARE FIVE NEW POSITIONS, TOTAL $833,000 THAT INCLUDES ANY KIND OF CAPITAL AND BENEFITS, AND YOU CAN SEE THE HIRING CADENCE OF THOSE POSITIONS INCLUDED IN THE SCREEN BELOW.
THE SALARY INCREASE ASSUMPTIONS THAT WE TALKED ABOUT EARLIER WITH THE 5%.
BUT JUST TO MAKE IT CLEAR, I DID RECEIVE SOME QUESTIONS ABOUT THE 5%.
THAT DOES INCLUDE A [INAUDIBLE] AND MERIT.
IT'S ALL IN ONE. THAT ELEMENT IS IN THERE.
IT'S ISSUED EFFECTIVE JANUARY 1ST, BASED ON A SATISFACTORY REVIEW.
NOW, THIS IS JUST THE NON-UNION EMPLOYEES.
THE UNION EMPLOYEES, THEY HAVE THEIR APPROVED CONTRACT WITH THEIR STEP PLAN.
BUT AGAIN, WHAT WE LOOK AT WHEN WE'RE MAKING THESE ASSUMPTIONS FOR THE BUDGET IS WE LOOK AT THE INFLATIONARY RATES BACK IN FEBRUARY WHEN THIS WAS DRAWN UP, WE WERE LOOKING AT A 4.9% RATE HERE IN WEST PALM BEACH AND A 3.48% NATIONALLY, THAT HAS SINCE GONE DOWN A LITTLE BIT TO ABOUT 4.5, BUT WE STILL FEEL THE 5% IS ADEQUATE FOR THE EMPLOYEES.
GENERAL FUND. WE TALKED QUITE A BIT ABOUT THE GENERAL FUND ALREADY, THE ASSESSED VALUES, THE ADDITIONAL FUNDING THAT'S COMING IN FROM THE AD VALOREM TAX ALONG WITH THE INTEREST EARNINGS, AND NO USE OF FUND BALANCE OR RESERVES.
ONE OF THE THINGS I WANTED TO TALK ABOUT SPECIFICALLY WAS THE UNASSIGNED FUND BALANCE DOWN AT THE LOWER LEFT HAND CORNER.
IF YOU LOOKED AT THE [INAUDIBLE] AT YEAR END, THEY HAD OVER $52 MILLION IN CASH THAT WAS AVAILABLE TO BE USED ANYWAY THE COUNCIL SAW FIT.
NOW, WE HAVE SOME ENCUMBRANCES AGAINST THAT BALANCE GOING FORWARD, 11.2 MILLION FOR THE FIRE APPARATUS AND THE IMPLEMENTATION OF THE FIRE DEPARTMENT.
YOU GOT TWO MILLION COMING BACK IN FOR THE BRIDGE LOAN REPAYMENT FROM THE SURTAX FUND, ANOTHER TWO MILLION DOLLARS COMING IN '25, ALONG WITH $750,000 HAS BEEN OBLIGATED FROM THE COUNCIL FOR THE ROGER DEAN STADIUM PROJECT.
THAT LEAVES THE REMAINDER OF OVER $44 MILLION TO BE USED AS THE COUNCIL SEES FIT.
NOW, WE TALK ABOUT THIS NUMBER EVERY YEAR, AND ONE OF THE THINGS WE POINT OUT IS THE COUNCIL HAS INDICATED THEY WOULD LIKE TO BE ABLE TO KEEP THREE MONTHS IN RESERVES JUST AS AN UNWRITTEN POLICY, BUT THEY WOULD LIKE TO SEE THREE MONTHS WORTH OF RESERVES IN THE FUND BALANCE, WHICH IS JUST OVER $19 MILLION.
IF WE WERE TO TAKE THAT OUT, YOU STILL HAD OVER $24 MILLION IN RESERVE FUNDING.
BUT OVERALL, AFTER THE ENCUMBRANCES, OVER $44 MILLION IS AVAILABLE.
FOR THE PROPOSED EXPENSES OF THE GENERAL FUND, GOING INTO '25 BASED ON CURRENT PROJECTIONS.
AS IN ANY YEAR, THE LARGEST EXPENSE FOR THE GENERAL FUND IS THE EMPLOYEES SALARIES AND BENEFITS.
[00:15:02]
JUST OVER THREE MILLION DOLLARS FROM THE GENERAL FUND TO THE JUPITER FIRE RESCUE.THAT IS INDICATED IN THERE ALONG WITH REDUCTIONS DUE TO THE TOWN GREEN AND ROGER DEAN CONTRIBUTION.
BUT A TOTAL OF $6.4 MILLION INCREASE OVER FY '24.
>> THE JUPITER FIRE RESCUE DEPARTMENT.
WE WANT THE COUNCIL ALONG WITH THIS PUBLIC TO BE ABLE TO TRACK AS WE GO ALONG THE EXPENDITURES AND HOW WE'RE SPENDING THE MONEY FOR THE JUPITER FIRE RESCUE.
ONE THING I WANT TO POINT OUT, AND WE'RE GOING TO BE CHANGING THIS SLIDE IN THE REVENUES WHERE IT SAYS DESIGNATED FROM FUND BALANCE OR DESIGNATED FROM GENERAL FUND.
WE'RE GOING TO PUT IN THERE SAY TRANSFER FROM.
I THINK IT JUST MAKES IT A LITTLE BIT MORE TRANSPARENT FOR PEOPLE TO UNDERSTAND.
IT'S A TRANSFER COMING IN FROM THE GENERAL FUND, ALSO ACCOUNTING GIGS.
THIS IS WHAT IT IS, BUT I THINK THE WORD TRANSFER WILL HELP PEOPLE UNDERSTAND EXACTLY WHAT'S OCCURRING.
BUT WHAT I WANTED TO SHOW, AGAIN, YOU HAVE $2.6 MILLION THAT IS BEING TRANSFERRED FOR THE OPERATING PORTION, $354,000 IS FOR A DEBT SERVICE PORTION FOR THE NEW CONSTRUCTION OF THE TWO NEW STATIONS.
I WANTED TO TALK ABOUT THAT FOR A MINUTE.
WE'RE CURRENTLY LOOKING INTO DOING WHAT'S CALLED COMMERCIAL PAPER ISSUANCE.
NORMALLY, IF YOU'RE GOING TO DO A DEBT SERVICE, THERE'S MULTIPLE DIFFERENT MECHANISMS THAT YOU CAN USE FOR FUNDING.
YOU CAN USE A GENERAL OBLIGATION BOND.
YOU CAN DO A BANK LOAN OR A COMMERCIAL PAPER ISSUANCE.
RIGHT NOW, LOOKING AT THE MARKET, THE RATES WILL BE DECLINING OVER THE NEXT COUPLE OF YEARS.
WE'RE FEELING OVER THE NEXT 18-20 MONTHS, THOSE RATES ARE GOING TO DECLINE.
WHAT THE COMMERCIAL PAPER DOES, IT ALLOWS US TO MAKE THIS SHORT TERM BORROWING AT A MUCH LESS INTEREST RATE.
THEN WHEN THE INTEREST RATES DO DECLINE, THE TOWN CAN THEN TAKE ADVANTAGE OF THOSE LESSER INTEREST RATES GOING FORWARD FOR A LONGER PERIOD OF TIME FOR 15 YEARS, 10 YEARS, DEPENDING ON HOW MUCH WE HAVE TO BORROW.
THE COMMERCIAL PAPER ALSO ALLOWS US TO MAKE DRAWS BECAUSE WE DON'T KNOW IF WE'RE GOING TO USE ALL 20 MILLION.
WE MAY ONLY WIND UP USING 15, 16 MILLION, BASED ON THE COST OF THE STATIONS.
BUT IT ALLOWS US TO MAKE THOSE DRAWS AS WE NEED TO.
ALL WE PAY IS INTEREST AND SOME ADMINISTRATIVE CHARGES.
BUT THOSE WILL BE COMING BACK TO THE COUNCIL.
IF WE WERE TO DO A BANK LOAN, WE COULD ONLY MAYBE DO $10 MILLION NEXT YEAR ON A BANK LOAN, BUT WE'D WIND UP SPENDING OVER $900,000 INSTEAD OF $354,000.
BUT WE'LL TALK A LITTLE BIT MORE ABOUT THAT GOING FORWARD IN THE NEXT MONTH.
FOR THE WATER FUND, PRETTY BASIC.
AGAIN THIS YEAR, BASE INDEX RATE OF 3%.
WE ARE USING SOME RETAINED EARNINGS, $354,000 WORTH OF RETAINED EARNINGS.
INCLUDES THE 5% SALARY INCREASES.
NO NEW POSITIONS BEING REQUESTED.
THERE IS A SLIGHT REDUCTION IN THE DEBT SERVICE.
THERE'S INCREASES ANTICIPATED IN THE FP&L CHARGES, WHICH IS NOTHING UNUSUAL.
ALSO, EARLY ESTIMATE FOR CHEMICAL COSTS.
WE SHOULD HAVE THOSE BIDS BACK NEXT MONTH OR THE MONTH AFTER.
THAT ACTUALLY COULD GO DOWN A LITTLE BIT, AND THEN THERE'S A SLIGHT INCREASE IN REPAIRS AND MAINTENANCE.
STORMWATER. AGAIN, 7% RATE INCREASE OR WE'RE LOOKING TO INCREASE BY THE RATE INDEX OF 7%, DESIGNATED FROM RETAINED EARNING OF $443,000, 5% SALARY INCREASES, AND $170,000 INCREASE IN MACHINERY AND EQUIPMENT.
THE JUPITER RIVER ESTATES, AGAIN, THIS IS SOMETHING THAT WE INDICATED TO THE COUNCIL THAT WE WOULD HOLD SEPARATELY SO THAT THEY COULD SEE THE EXPENSES COMING IN AND OUT.
THE FIRST YEAR THE UTILITY ACTUALLY PAID FOR THE CLEANING UP.
THERE WAS A PRESENTATION ON THAT ABOUT A MONTH AGO.
I GOT TO SEE THE SUCCESS OF THE CLEANING.
[00:20:01]
THE NEXT WE'LL ACTUALLY DO THE MAINTENANCE.THAT'S WHEN YOU'LL ACTUALLY SEE THE EXPENSES COMING IN AND ALSO THE OFFSETTING REVENUES THAT ARE COMING IN FROM THE CITIZENS WHOSE PROPERTY ARE BEING IMPROVED DUE TO THAT CLEANING.
THE BUILDING FUND. REALLY, PRETTY MUCH STATIC FROM LAST YEAR.
THERE IS A $50,000 INCREASE IN PERMIT REVENUES.
BUT AGAIN, THE 5% INCREASE FOR THE EMPLOYEES, BUT VERY MINIMAL INCREASE IN THE BUILDING FUND.
HEALTH INSURANCE FUND, WE TALKED ABOUT THAT AND SOME OF THE BENEFITS THAT ARE OCCURRING, WE REALLY DO FEEL THAT WE WILL MEET THE $10 MILLION MARK, EVEN WITH THE FIRE FUND EMPLOYEES BEING ADDED.
THERE'S RIGHT NOW STILL MINIMAL COSTS OF THE FUND.
OUR EMPLOYEES ARE VERY HEALTHY.
SOME UPCOMING IMPORTANT DATES, JULY 16TH, WE'LL BE SETTING TRIM.
WE'LL ALSO HAVE ON AUGUST 14, THE CRA BUDGET WORKSHOP AND THE CIP WORKSHOP, ALONG WITH THE FIRST READING OF THE BUDGET IS SEPTEMBER 3RD AND THE FIRST AND FINAL READING OF THE BUDGET FOR THE CRA, AND THEN THE SECOND AND FINAL HEARING ON SEPTEMBER 19TH.
ONE THING I ALSO WANTED TO POINT OUT IN RELATION TO THE MEETING COMING UP ON JULY.
WE WILL BE ASKING THE COUNCIL TO ADOPT A RESOLUTION IN RELATION TO THE FINANCING, WHICH WILL ALLOW THAT IF WE WISH TO, ANY OF THE CURRENT EXPENSES THAT WE'RE INCURRING, SUCH AS ENGINEERING, AND THOSE TYPE OF THINGS, THAT WE CAN GO BACKWARDS, AND WE CAN ACTUALLY INCORPORATE THAT INTO THE DEBT SERVICE IF WE WISHED.
IF WE DON'T DO THE RESOLUTION, THEN WE CAN'T DO THAT.
IT'S IMPORTANT THAT WE APPROVE THAT.
IT GIVES LATITUDE TO THE COUNCIL.
POLICY GUIDANCE GOING FORWARD, MAINTAINING THE PROPOSED FLAT MILLAGE RATE OF 2.3894 AS BEING RECOMMENDED, BUT WE'LL TALK MORE ABOUT THAT WHEN YOU SET IT AT TRIM.
THE 85/15 SPLIT OF THE AD VALOREM BETWEEN THE OPERATING AND THE CIP.
HEALTH INSURANCE, NO PREMIUM INCREASES, MAINTAINING THE HSA FUNDING FOR THE EMPLOYEES AT $840,000.
WE POSSIBLY HAVE SOME OTHER OPTIONS FOR THAT.
ALSO THE 5% INCREASE FOR THE NON-UNION EMPLOYEES AND THE RATE INDEXING OF 3% FOR WATER AND 7% FOR THE STORMWATER.
THAT REALLY CONCLUDES MY PRESENTATION FOR THIS EVENING AND IF YOU HAVE ANY QUESTIONS.
>> THANK YOU VERY MUCH. DO WE HAVE ANY PUBLIC COMMENT? [LAUGHTER]
>> GOOD EVENING. THANK YOU, SCOTT.
A LOT OF THE INCREASES THE TOWN HAS IS ALSO INCREASES OF EVERY OTHER GOVERNMENT AS I SEE IN DISPLAY.
I HAD A CHANCE ABOUT A HALF AN HOUR BEFORE I CAME HERE TO LOOK THIS OVER.
ON THE FIRE FUND, YOU DO HAVE TO TAKE OUT THE EMS ONCE YOU GO TO FIRE ASSESSMENT BECAUSE EMS IS NOT ALLOWED TO BE MINGLED IN WITH ANY FIRE ASSESSMENT.
EMS IS A GENERAL FUND OBLIGATION AND EVEN IF YOU SET UP A SEPARATE FUND, EMS WILL BE PAID FROM AD VALOREM GENERAL GOVERNMENT, AND ANY REVENUES GENERATED FROM EMS TRANSPORT. YOU WANT ME TO FINISH?
>> NOW, THERE'S GOING TO BE FURTHER ON FIRE ASSESSMENT, BUT I DID NEED TO POINT THAT OUT SINCE THIS IS A DRAFT.
ALSO, THE FIRE DEPARTMENT CURRENTLY HAS NO EARNED REVENUE, AND SO BECAUSE THERE'S NO EARNED REVENUE, USUALLY YOU SET UP A SPECIAL REVENUE FUND WHEN YOU HAVE EARNED REVENUES COMING IN FROM THAT SOURCE, AND THAT'S WHY YOU HAVE AN ASSESSMENT B FUND.
WE DON'T HAVE REVENUES COMING IN YET AS EARNED REVENUES.
THEY'RE JUST BEING TRANSFERRED FROM THE GENERAL FUND.
THEREFORE, I DON'T BELIEVE ESPECIALLY THE EMS SHOULD GO INTO A DIFFERENT FUND THAN GENERAL FUND.
WHEN YOU GO TO DO ANY FIRE ASSESSMENT FEE, THEN YOU'LL HAVE TO PULL OUT EMS AND IT'S NOT A VERY GOOD LOOK FROM YEAR TO YEAR.
NOW YOU'RE GOING TO HAVE TO CHANGE THAT STRUCTURE.
I'LL BE GLAD TO TALK WITH YOU ON THAT.
I'M VERY GLAD THAT THE TOWN HAS A LOT OF RESERVES.
A LOT OF CITIES HAVE BENEFITED FROM INTEREST RATE INCREASES.
[00:25:05]
THE MILLAGE RATE IS GOING UP, VALUES, WE'RE EXTREMELY FORTUNATE IN JUPITER TO HAVE WONDERFUL VALUES.I DON'T BLAME FINANCE FOR WANTING TO HAVE A LOT OF RESERVES.
THAT'S VERY COMMON FOR US FINANCE PEOPLE BECAUSE IN THE FUTURE, THERE'S NO GUARANTEE THAT WE'RE GOING TO SEE ALL THESE PLUSES.
I UNDERSTAND THAT AND COUNCIL HAS TO DECIDE WHAT ARE WE GOING TO DO WITH EXCESS FUND? ARE WE GOING TO PAY DOWN DEBT? ARE WE GOING TO SAVE IT? WHETHER I'M FOR OR AGAINST FIRE OR ANY OTHER DEPARTMENT, THAT'S NOT REALLY WHAT I CAME HERE FOR TONIGHT.
I CAME HERE BECAUSE I'M CONCERNED WITH US HAVING SO MUCH MONEY THAT THERE ARE A LOT OF DIFFERENT AVENUES THAT YOU CAN SPREAD THE WEALTH SO TO SPEAK.
BUT WHEN YOU HAVE A $77 MILLION BUDGET AND YOU HAVE $44 MILLION IN RESERVES, YOU REALLY NEED TO SHOW THE TOWN WHAT THAT'S BEING RESERVED FOR.
WHAT IS THE FIVE YEAR PLAN? I WANT TO KNOW WHY MY MILLAGE RATE WOULDN'T GO DOWN IF I HAVE THAT MUCH LEFT IN RESERVES.
I'M JUST SAYING IF I HAVE A CHECKBOOK OF $100,000 AND I CONSTANTLY HAVE 70,000 THAT I DON'T USE, I WANT TO HAVE A PLAN IF I'M NOT GOING TO INVEST IT SOMEWHERE ELSE OR PAY DOWN OTHER DEBT.
I UNDERSTAND WHAT YOU'RE SAYING WITH THE LOANS AND THE COMMERCIAL PAPER, MAKES A LOT OF SENSE.
THAT IS THE WAY TO DO IT IF YOU'RE GOING TO DO THAT.
BUT I GUESS I AM GOING TO SPEAK ON THE FIRE BECAUSE I FEEL THAT WE DO HAVE ALL THIS MONEY.
THE EXPENSES JUST KEEP GOING UP.
THE FIRE DEPARTMENT EXPENSES ARE NO DIFFERENT.
I DON'T KNOW WHAT THAT FIRE ASSESSMENT FEE IS GOING TO BE.
I REALLY HAVE ASKED OVER AND OVER FOR THE METHODOLOGY.
WE NEED TO KNOW HOW WE'RE GOING TO BE ASSESSED.
THIS NEEDS TO BE STARTED ON ONE YEAR BEFORE YOU START DOING THE ASSESSMENTS.
I JUST WANT TO PUT THAT OUT TO YOU.
I BELIEVE THE FINANCE DEPARTMENT DOES A GOOD JOB WITH MINDING YOUR MONEY, BUT THE FIRE ASSESSMENT, WE NEED TO KNOW WHAT IT IS, OR WE CAN'T EVEN DETERMINE IF YOU'RE DOING THE RIGHT THING ON THE FINANCING FOR FIRE FOR US. THANK YOU.
>> THANK YOU. DO WE HAVE ANOTHER PUBLIC COMMENT?
>> GOOD EVENING. MY NAME IS CONSTANCE HOLMES.
I'M A JUPITER RESIDENT AT 205 3RD STREET.
I JUST WANTED TO PIGGYBACK ON EXPENSES AND ASK YOU TO PLEASE HOLD LEVEL THE WATER RATE AND THE STORMWATER RATE.
THAT AFFECTS EVERY SINGLE RESIDENT IN JUPITER.
IF WE HAVE ALL THIS MONEY BEHIND US, COULD WE PLEASE JUST NOT RAISE THE INCREASE OF 3% AND 7% ON THE RESIDENTS.
I KNOW IT SOUNDS LIKE A SMALL THING, BUT THAT'S MY REQUEST. THANK YOU.
>> THANK YOU. OPEN IT UP TO COUNCIL, QUESTIONS?
>> YES. FIRST OF ALL, EXCELLENT JOB TO BOTH OF YOU. VERY GOOD.
LOOKS GREAT, ESPECIALLY WHEN WE COMPARE THIS TO WHAT THE AUDITORS TOLD US THAT NOT ONLY ARE WE DOING GOOD, BUT WE'RE MATCHING WHAT WE'RE SAYING WE'RE DOING.
EXCELLENT JOB. TO THE LAST POINT, THE 3% AND THE 7%, WHAT WOULD THOSE ADD UP TO AN AMOUNT IF YOU COULD TRANSLATE THAT INTO A DOLLAR AMOUNT.
>> FINANCE DIRECTOR. FOR THE TYPICAL RESIDENT, THE STORMWATER FEE WOULD INCREASE BY 49 CENTS PER MONTH, AND FOR THE TYPICAL WATER RESIDENT, IT WOULD INCREASE BY $1.31 PER MONTH.
>> WHAT WOULD THAT ADD UP TO THE GROSS AMOUNT FOR THE CITY?
>> NO. IF YOU TOOK THE OVERALL AMOUNT, BY INCREASING THOSE 3% AND 7%, WHAT'S THE BULK AMOUNT THAT WE'RE TALKING ABOUT?
>> THE WATER RATE WOULD INCREASE TO $44.08 PER MONTH, TOTAL, AND THE STORMWATER WOULD BE $7.55.
>> STILL NOT QUITE WHAT I'M ASKING.
I'M SAYING THE WHOLE TOWN, WHAT'S THE OVERALL AMOUNT THAT WE'RE TALKING ABOUT? TOTAL REVENUE.
>> UNDERSTOOD, $900,000 FOR WATER AND 280,000 FOR STORMWATER.
[00:30:01]
>> TO KEEP THOSE AT ZERO, WE'D BE LOOKING AT AN OUTLAY OF MAYBE $1.2 MILLION?
>> I WAS JUST TRYING TO KEEP APPLES TO APPLES HERE IN MY MIND, WHAT WE'RE TALKING ABOUT TO ACCOMPLISH SOMETHING LIKE THAT WOULD BE ABOUT 1.2-$1.3 MILLION.
I GUESS THE TOWN WOULD ABSORB THAT FEE IF WE SAW THAT AS AN OPTION.
>> UTILITIES WOULD ABSORB THOSE FEES.
>> ALSO, THE EMS FUND, YOU WERE GOING TO TALK ON THAT SCOTT.
YOU WANT TO TALK ABOUT IT NOW, I GUESS, PLEASE?
>> WHAT LINDA IS POINTING OUT IS CORRECT.
IF THE COUNCIL WISH TO DO A NON-AD VALOREM ASSESSMENT, THAT ASSESSMENT COULD ONLY BE USED TO PAY FOR FIRE.
IT CANNOT BE USED TO PAY FOR EMS. WE DO HAVE LINDA IN THE ACTUAL BUDGET BOOK.
WE HAVE THEM SEGREGATED BY EMS AND FIRE.
WE DO HAVE DIVISIONAL DETAIL SPLIT OUT THAT WAY AND WE DO IT ON PURPOSE.
WE'VE STARTED THAT PROCESS EARLY BY SEGREGATING THOSE TWO TYPES OF SERVICES SO THAT WHEN WE START TO DO THE NON-AD VALOREM ASSESSMENT STUDY THAT'S REQUIRED, WE WILL HAVE ALREADY STARTED CAPTURING THOSE COSTS FOR THE CONSULTANT.
WE DO HAVE IN THE BUDGET TO START THAT PROCESS FOR THE NON-AD VALOREM ASSESSMENT NEXT YEAR, A WHOLE YEAR EARLY.
IT IS A VERY DETAILED STUDY THAT WILL BE REQUIRED.
IT WILL TAKE A NUMBER OF MONTHS.
BUT WHEN WE DO HAVE IT COMPLETE, IT WILL BE IN THE MICRO, MEANING, MR. MAY, WE COULD LOOK AT YOUR HOUSE, AND I COULD TELL YOU EXACTLY HOW MUCH YOU'RE GOING TO BE CHARGED BECAUSE IT'S BASED ON PARCEL, IT'S BASED ON THE PROPERTY.
WE'LL BE ABLE TO SEE ALL OF THAT.
>> WHEN DO YOU ANTICIPATE THAT?
>> WE'RE GOING TO START THE RFP PROCESS AFTER THE FIRST OF THE FISCAL YEAR.
>> TO THE MILLAGE RATE 2.3894, HOW DOES THAT COMPARE TO OTHER MUNICIPALITIES AROUND IT?
>> I WOULD SAY, IT'S VERY LOW COMPARED TO OTHER JURISDICTIONS.
WHEN WE DO GO TO HAVE OUR OWN FIRE, THAT WILL INCREASE BECAUSE RIGHT NOW WE'RE NOT TAKING INTO ACCOUNT WHAT'S BEING PAID FOR OUT OF THE MSTU, WHICH IS ANOTHER 1.65 MILLS. ON TOP OF THAT.
>> THAT MAKES SENSE. YOU HAD POINTED OUT THAT IT WAS A GOOD THING THAT MOST OF OUR BALANCES ARE BASED ON THE PROPERTY VALUES RATHER THAN THE PERMITS THAT THE NEW PERMITS ARE FLAT IN JUPITER.
COULD YOU EXPLAIN HOW THAT'S A REALLY GOOD THING FOR US? IT WOULD TAKE BASICALLY SOME SUBSTANTIAL MARKET DROP IN VALUE.
>> WHEN YOU LOOK AT THE OTHER JURISDICTIONS, AND EVERY JURISDICTION IS DIFFERENT.
PALM BEACH GARDENS, I'LL USE THEM AS AN EXAMPLE BECAUSE THEY'RE OUR NEXT DOOR NEIGHBOR.
THEY HAVE A LOT OF ROOM FOR EXPANSION.
THEY'RE ALLOWING A LOT OF THAT NEW CONSTRUCTION TO DEVELOP.
BUT WHEN YOU LOOK AT THESE INCREASES IN THE VALUES, THE PROPERTY APPRAISER WILL SPLIT THEM OUT BETWEEN WHAT IS ACTUAL INCREASES IN THE VALUES AND NEW CONSTRUCTION.
BECAUSE JUPITER WE'RE BUILT OUT, ESSENTIALLY, THOSE VALUES HAVE REMAINED PRETTY LOW, LESS THAN 1% A YEAR OVER THE LAST FEW YEARS.
THE MAJORITY OF OUR INCREASE IS BASED ON VALUE.
THOSE HOMES MAINTAINING THAT VALUE OR INCREASING IN VALUE OVER TIME.
THAT'S A GOOD SIGN FOR JUPITER, MEANING THAT WE'RE INSULATED.
YOU REMEMBER THE 2008 HOUSING RECESSION THAT OCCURRED, WE WEREN'T IMPERVIOUS TO HAVING AN EFFECT US, BUT WE DIDN'T GET AFFECTED AS MUCH AS OTHER JURISDICTIONS BECAUSE OF THOSE HIGH VALUES THAT ARE THERE, SO VERY FORTUNATE.
>> THAT I THINK HAS A LOT TO DO WITH THE GROUND TO JUPITER.
>> THE VALUES HERE ARE HELD WERE NATIONALLY, THEY WERE PLUMMETING, BUT WE ALL NOTICED THAT, WHO LIVED HERE, PROPERTY VALUES PRETTY MUCH HELD.
THERE'S A LOT OF CONCERN OUT THERE.
MAYBE THEY'RE SAYING THE SKY IS FALLING, BUT THERE'S A LOT OF PEOPLE OUT THERE SAYING THE REAL ESTATE MARKETS DUE FOR A BUBBLE BURST RIGHT NOW.
ARE WE IN A POSITION TO ABSORB A FAIRLY ROBUST BURST OF THE BUBBLE? [OVERLAPPING] ON HOW ROBUST.
>> I WISH I HAD THAT CRYSTAL BALL.
BUT I WILL TELL YOU, LISTENING TO THE PROPERTY APPRAISER AND LISTENING TO SOME OF THE OTHER PUNDITS OUT THERE, RIGHT NOW, EVERYTHING'S STEADY,
[00:35:03]
ESPECIALLY HERE IN FLORIDA, SOUTH FLORIDA, SPECIFICALLY, WE'RE MAINTAINING THOSE VALUES.IT'S LEVELING OFF. IT'S NOT CONTINUING TO GROW.
WE'RE SEEING A LEVELING OFF OF THOSE VALUES THAT WE DON'T SEE REDUCING.
NOW, IF WE HAD A LARGE SECTION OF CONDOMINIUMS, WHICH THEY ARE SEEING REDUCTIONS IN THEIR VALUES, AS INDICATED BY THE PROPERTY APPRAISER, OR EVEN SOME COMMERCIAL BUILDINGS, IF YOU WATCH THE COMMERCIAL MARKET, PRIMARILY IN THE LARGER JURISDICTIONS UP NORTH, LOS ANGELES, BIGGER CITIES, THERE'S A LOT OF VACANCIES, AND THAT WILL AFFECT THE OVERALL PROPERTY VALUES.
BUT HERE IN JUPITER AND FLORIDA, SPECIFICALLY SOUTH FLORIDA, WE'RE NOT SEEING THOSE VACANCIES, WHICH IS A GOOD SIGN AS WELL.
WE HAVE A LOT OF PEOPLE COMING IN FROM OTHER AREAS OF THE COUNTRY THAT ARE COMING IN AND BACK FILLING THESE VACANCIES. THAT'S A GOOD SIGN.
BUT ONE THING TO REMEMBER WHEN WE'RE JUST TALKING ABOUT VALUE'S THAT YOU REMEMBER THERE WAS A TWO YEAR PERIOD WHEN IT WAS OVER 12% INCREASE.
WELL, WE HAVE SAVED OUR HOMES AND THERE'S CAPS OF 10% ON SOME PROPERTY, COMMERCIAL.
WELL, WHEN YOU LOOK AT YOUR MARKET VALUE OF YOUR PROPERTY, YOU KNOW YOUR PROPERTY VALUE, YOUR MARKET VALUE IS UP HERE, YOUR TAXABLE VALUE WILL BE DOWN HERE.
THERE'S A GAP. WELL, EVERY YEAR, THAT GAP WILL START TO GET SMALLER, MEANING BY STATUTE, WE'RE ALLOWED TO START RECAPTURING SOME OF THAT MARKET VALUE EVERY YEAR.
THERE'S A PORTION OF THAT 8.8% THAT'S THAT RECAPTURE, AND THAT WILL BE HAPPENING OVER A NUMBER OF YEARS.
>> IT SOUNDS LIKE WE'RE INSULATED FOR A COUPLE OF REASONS.
IT'S THE HOME VALUES IN JUPITER ARE UNIQUE.
BUT WE'RE PROBABLY ANECDOTALLY, IT SEEMS A SMALLER PERCENTAGE OF OUR VALUE IS FROM COMMERCIAL PROPERTIES.
JUST LOOKING AROUND, WE DON'T SEEM TO HAVE A LARGE COMMERCIAL PROPERTY.
WE'RE PREDOMINANTLY RESIDENTIAL IN JUPITER.
>> HOW IS THAT COMPARED TO OTHER MUNICIPALITIES?
>> WELL, GARDENS HAS A LARGER SECTION OF COMMERCIAL, I THINK, WHEN YOU LOOK AT THEM.
>> SO IT'S FAIRLY STRONG AND FAIRLY COMFORTABLE FEELING TO HAVE IT BASED ON VALUE RATHER THAN PERMITS.
THE RESERVES WE HAVE, THAT IS QUITE A BIT OF RESERVE AND FACE VALUE, I'D GO GREAT, A HUGE AMOUNT OF RESERVE.
BUT THOSE ARE SOME VALID POINTS THAT WERE BROUGHT UP EARLIER.
>> IT'S HARD TO SAY TOO MUCH RESERVE BECAUSE IT SAYS KEEP AS MUCH IN THE BANK ACCOUNT AS YOU CAN.
BUT IF WE COULD BUY THAT MILLAGE RATE DOWN OR IF WE COULD DO OTHER THINGS WITH IT.
>> SURE. WE'VE DONE THAT IN THE PAST.
NOW, SOME OF THIS HAS BEEN A VERY CONSCIOUS DECISION OF REDUCING THE AMOUNT OF PEOPLE THAT WE EMPLOY.
WE HAD A NUMBER OF VACANCIES AND AT THE END OF THE YEAR, WE HAVE TO BUDGET FOR THEM.
AT THE END OF THE YEAR, THOSE VACANCIES AREN'T FILLED.
THOSE VALUES, WHATEVER'S LEFT OVER CAN GO BACK INTO THE RESERVES.
THERE WAS SOME OF THAT THAT WAS CONSCIOUSLY DONE TO BUILD UP THE RESERVES. COVID OCCURRED.
THERE WAS A LOT OF SAVINGS THAT OCCURRED THERE.
THE COUNCIL IS VERY CONSERVATIVE, ALWAYS HAS BEEN VERY CONSERVATIVE SINCE I'VE WORKED HERE.
MAINTAIN A VERY LOW MILLAGE RATE AND SAVE WHEN WE CAN.
MY EXPERIENCE HAS BEEN WITH THE COUNCIL, ONLY BORROW WHEN YOU NEED TO.
WE'VE BEEN VERY GOOD AT BEING ABLE TO DO THAT.
IF WE CAN, WE TRY TO PAY OFF THE DEBT QUICKER.
THAT HAS BEEN THE MANTRA OF THE TOWN; TO MAINTAIN LOW DEBT SERVICE, AND ALSO BUDGET CONSERVATIVELY, AND IF WE CAN PAY CASH.
IN ORDER TO BE ABLE TO DO THAT, YOU HAVE TO BUILD THESE RESERVES.
WE'VE ALWAYS BEEN ABLE TO DO THAT.
WHENEVER SOMETHING COMES ALONG, WE'VE BEEN ABLE TO BUILD THIS BUILDING, THE PD BUILDING, OR LARGE PROJECTS WITH NO DEBT.
WE'VE DONE THAT SINCE I'VE BEEN HERE AND EVEN BEFORE.
>> WELL, WE'RE VERY FORTUNATE.
>> IT KEEPS THE AMOUNT OF DEBT VERY LOW.
BUT IT IS THE COUNCIL WISHING THAT TO BE DONE.
THEY BELIEVE IN A LOT OF DEBT.
IT'S JUST HOW THEY DO BUSINESS.
BUT THE COUNCIL, I'VE ALWAYS FOUND SINCE I'VE BEEN HERE HAVE BEEN VERY CONSERVATIVE, AND THE MARCHING ORDERS HAVE BEEN TRY TO BUILD IT WITHOUT DEBT IF WE CAN DO THAT.
BUT WE HAVE THE ABILITY, IF YOU REMEMBER DURING THE PRESENTATION FROM THE AUDITOR, WE HAVE $2.1 BILLION WORTH OF DEBT CAPACITY.
IF WE WANTED TO GO OUT AND BORROW,
[00:40:01]
WE COULD DO THAT. WE CHOOSE NOT TO.>> EXCELLENT. THAT'S A GREAT THING TO HEAR. ONE LAST POINT.
YOU WERE POINTING OUT THE POSSIBLE DECISION TO GO TO COMMERCIAL PAPER?
>> IF WE WERE TO DO THAT, IT WOULD IT BE LIKE A STANDARD LIKE A EQUITY LOAN ON A HOUSE WHERE YOU ONLY PAY INTEREST ON WHAT YOU'VE DRAWN?
>> SO THERE WOULD BE A HUGE SAVINGS IN DOING IT THAT?
>> THE RATES ARE COMPARABLE OR POSSIBLY EVEN BETTER.
>> I WILL TELL YOU, WE'VE BEEN WORKING WITH OUR FINANCIAL ADVISOR IN THE BANK THAT WOULD ISSUE THE PAPER.
WE RECEIVED A VERY FAVORABLE RATING FOR JUST A LETTER OF CREDIT THAT WOULD BE ISSUED VERY LOW RATE AND ALL IN RATE OF 4.4 IS WHAT WE'RE LOOKING AT CURRENTLY.
THAT WE'D BE BRINGING TO THE COUNCIL.
THAT'S A VERY LOW COMPETITIVE RATE. INCREDIBLE FOR THAT.
>> ACTUALLY, I THINK YOU SAID A AAA RATING.
>> YES, SIR. NOW, NEXT YEAR, WE WON'T HAVE ANY PUBLIC DEBT.
SO WHEN SOMEBODY SAYS, WHAT ARE WE RATED, WE REALLY WON'T BE RATED.
TECHNICALLY, WE WE'VE ALWAYS BEEN AAA.
>> NO DEBT TO RATE. THAT'S FANTASTIC.
GREAT JOB. EXCELLENT, THANK YOU.
AS I STATED WITH COUNSELOR DELANEY AND THE MAYOR NOT BEING HERE, I KNOW THIS IS MORE PRESENTATION FOR THE PUBLIC.
I'M NOT GOING TO GO INTO COMMENTS TOO MUCH OR QUESTIONS RIGHT NOW.
I JUST WANTED THIS TO GET OUT THERE TO THE PUBLIC SO THAT THEY COULD SEE IT AND THEN OBVIOUSLY COME TO US WITH QUESTIONS AND THINGS LIKE THAT.
I WOULD LIKE TO REQUEST THAT MAYBE IN OUR AUGUST MEETING FOR THE CIP AND THE CRA, TACK ON ADDITIONAL TIME TO GO THROUGH THIS, TO GIVE THE MAYOR AND COUNSELOR DELANEY A CHANCE TO MAKE THEIR COMMENTS AND STUFF LIKE THAT AS WELL.
THAT WAY WE'RE NOT KEEPING THEM OUT OF THE CONVERSATION BECAUSE THEY ALWAYS HAVE VERY VALUABLE THINGS TO ADD, SO I'M JUST GOING TO LEAVE IT AT THAT TONIGHT.
>> IF YOU REMEMBER RIGHT, COUNSEL, WE ALSO AT THE BEGINNING OF THAT MEETING, WHEN WE'RE TALKING ABOUT THE CIP, FIRST THING WE DO IS WE TALK ABOUT THE OPERATIONS BUDGET AND ANY KIND OF CHANGES.
SO DEFINITELY WE WILL BE TEEING UP FOR THAT.
>> ALL RIGHT. A FEW QUESTIONS.
FIRST, WHAT ARE THE SOURCES OF REVENUE FOR THE GENERAL FUND?
>> THERE'S A NUMBER OF SOURCES OF REVENUE.
ONE THING THAT WE STARTED DOING LAST YEAR, WE'RE PROUD OF, IN FACT, DAWN WORKS VERY HARD ON IT.
WE CREATE A REVENUE MANUAL THAT'S PART OF THE BUDGETARY PACKAGE.
IT'S OUT ON THE JUPITER WEBSITE OR THE FINANCE WEBSITE FOR PEOPLE TO LOOK AT.
BUT FOR THE GENERAL FUND ITSELF, THE PRIMARY FUNDING SOURCE IS AD VALOREM DOLLARS.
IT ACCOUNTS FOR ABOUT 42% OF THE OVERALL BUDGET.
I'VE SAID THIS A NUMBER OF TIMES.
WHEN YOU START LOOKING AT THE AD VALOREM DOLLARS THAT GOES INTO THE GENERAL FUND OPERATING, THOSE FUNDS ARE PRIMARILY THERE TO PAY FOR THE POLICE DEPARTMENT.
POLICE DEPARTMENT, OUR AD VALOREM DOLLARS THIS YEAR, I BELIEVE IT IS $32 MILLION, CLOSE TO $33 MILLION.
THE POLICE DEPARTMENT BUDGET IS JUST OVER $30 MILLION.
THAT'S PUBLIC SAFETY, AD VALOREM, PUBLIC SAFETY.
THAT'S PRIMARILY THE WAY THAT WE LOOK AT IT HERE.
THE REST OF THE REVENUE STREAMS, THE LARGER IS SALES TAX, STATE SHARED REVENUE, INTEREST EARNING, WE TALKED ABOUT THAT THIS YEAR.
BUT THERE'S A NUMBER OF REVENUE STREAMS. SOME OF THEM RESTRICTED.
WE TALK ABOUT THAT IN THE REVENUE MANUAL ON HOW THEY'RE TO BE USED.
BUT ANOTHER ONE IS FRANCHISE FEES THAT WE RECEIVE FROM LIKE FLORIDA POWER AND LIGHT.
WE GET UTILITY TAX REVENUE FROM FLORIDA POWER AND LIGHT.
ALSO, WE HAVE ALLOCATIONS FROM THE ENTERPRISE FUND, FOR WATER, STORMWATER, THE BUILDING FUND.
THAT'S ALL FOR ADMINISTRATIVELY ADMINISTERING THOSE FUNDS, SO YOU SEE THAT IN THERE.
THERE'S A WHOLE HOST OF DIFFERENT REVENUE STREAMS TO HELP FUND ALL THE ACTIVITY THAT HAPPENS IN THE TOWN.
>> THANK YOU FOR THAT. THE WATER FUND, JUST BECAUSE WE GOT A QUESTION, I WANT TO MAKE SURE WE DISCUSSED THAT.
BUT THE STORMWATER FUNDS, THOSE ARE DIFFERENT FROM THE GENERAL FUND.
CAN YOU EXPLAIN THEIR DIFFERENCES AND SOURCES OF REVENUE?
>> SURE. I'LL JUST START WITH THE WATER ENTERPRISE FUND.
IT COULD NOT AND SHOULD NOT UTILIZE TAX DOLLARS TO PROP ITSELF UP.
IT HAS TO MAINTAIN WITHIN ITSELF.
HENCE WE'RE REQUESTING A 3% INCREASE IN THE WATER RATE.
WE HAVE A WATER MASTER PLAN THAT WE HAVE SET ASIDE SO MUCH MONEY EACH YEAR TO GO INTO
[00:45:02]
AN R&R FUND TO HELP PAY FOR FUTURE WATER PLAN IMPROVEMENTS THAT IN 2030, THIS IS PART OF OUR PLAN, THAT WE WILL HAVE TO DO A DEBT ISSUANCE TO PAY FOR IMPROVEMENTS AT THE PLANT, AND WHAT WE'RE HOPING TO DO BY THE TIME WE GET THERE IS PAY HALF OF THAT ISSUANCE IN CASH.THAT'S PART OF THAT INCREASE THAT YOU'RE SEEING THERE, ALONG WITH PAYING FOR THE OPERATING EXPENSES OF THE BUSINESS ENTERPRISE.
IT CANNOT USE TAX DOLLARS TO OPERATE.
THAT GOES FOR THE STORMWATER FUND, ALONG WITH THE BUILDING FUND.
>> WONDERFUL. COULD WE GO QUICKLY TO PAGE 10 ON GENERAL FUND REVENUES?
>> THIS TALKS TO THE RESERVES AND THE SOURCES OF REVENUE AGAIN.
I SEE UNDER INTEREST HERE, IT'S QUITE A GAP.
IT GOES FROM 3.2 MILLION ACTUAL 2022 TO 2023 ADOPTED, DROPS TO 973 UNDER A MILLION, AND THEN GOES UP AGAIN TO 3.9.
INTEREST HAS GROWN TO AN EXTRAORDINARY DEGREE, AND THAT'S EXCELLENT THAT WE'RE SEEING AN INCREASE OF 2.9 MILLION.
BUT ADOPTED FOR '23 AND '24, THAT SEEMS QUITE LOW TO ME.
>> CAN YOU SPEAK TO JUST THAT DIFFERENCE.
>> WE'VE DEPLOYED A DIFFERENT METHODOLOGY GOING FORWARD.
WE STARTED THIS AT THE END OF LAST YEAR AND DIVERSIFYING OUR CASH.
YOU DON'T WANT IT SITTING IN ONE PLACE.
WE'VE DONE DIVERSIFICATION INTO DIFFERENT MUTUAL FUNDS, WHICH WE HAVE SEEN THE BENEFITS TO THAT.
NOW, GOING FORWARD, WE SHOULD HAVE IN 2024, THE CURRENT YEAR WE'RE IN, PROBABLY SHOULD HAVE BUDGETED MORE, BUT WE WERE WAITING TO SEE WHAT WOULD OCCUR WITH OUR STRATEGY THAT WE WERE INVOKING WITH THE MUTUAL FUNDS, AND WE HAVE DEFINITELY BENEFITED FROM THAT GOING FORWARD.
WE WANTED TO APPROPRIATELY BUDGET, AND WE WERE CONTINUING TO LOOK AT THOSE DIFFERENT STRATEGIES AND MEET WITH OUR INVESTMENT ADVISORS AS WELL.
>> THAT IS TRULY INCREDIBLE TO ME, ESPECIALLY LOOKING AT THE ACTUALS FOR '21 AND '22 OF $176,000.
>> WE'VE DEFINITELY BENEFITED FROM THOSE DIFFERENT STRATEGIES THAT WE'VE BEEN EMPLOYING, AND WE DO WANT TO CELEBRATE THAT BECAUSE LIKE WE JUST HEARD THAT OTHER JURISDICTIONS ARE ALSO TAKING ADVANTAGE OF IT.
WE WANT TO TAKE ADVANTAGE OF IT RIGHT NOW AS THE FEDS HAVE THESE RATES THAT ARE HIGH AS WE DO ANTICIPATE OVER THE NEXT 18-20 MONTHS THAT THEY'RE GOING TO START REDUCING THOSE RATES.
>> THEN AT THE BOTTOM OF THE UNASSIGNED FUND BALANCE SUMMARY, IT SAYS, NOTE 2004, 2005 HURRICANE COSTS WERE IN EXCESS OF $11 MILLION.
MY UNDERSTANDING WAS THE TOWN HAD A LOT ON ITS HAND IN 2004/2005.
WHAT WOULD THE 11 MILLION, OR CORRECT ME IF I'M WRONG, BUT I IMAGINE THE 11 MILLION IN TODAY'S DOLLARS BEING SOMETHING LIKE OVER $17.5 MILLION; IS THAT CORRECT?
>> THAT IS CORRECT. JUST TO REMIND EVERYBODY, THAT WAS TWO SEPARATE STORMS DURING THAT TIME PERIOD AS WELL.
>> WE ARE EXPECTING A PRETTY INTERESTING STORM SEASON.
>> WAS IT TWO STORMS OR THREE? FRANCES, JEANNE, AND THEN WILMA IN 2005.
>> I ONLY HEARD FRANCES AND JEANNE. THERE MAY HAVE BEEN?
>> I THINK THAT WAS A LOT SMALLER, THOUGH, BUT THERE WERE TWO RIGHT IN A ROW THAT WE GOT HIT WITH, FRANCES AND JEANNE.
>> CAN YOU MOVE THE SLIDES TO THAT JUST AS WE'RE GOING ALONG? ADVANCE THE SLIDES TO THE SLIDE WE ARE OM.
>> IT TOOK A NUMBER OF YEARS, BUT YES, WE RECOUPED QUITE A BIT OF IT.
>> JUST ONE LAST QUESTION, CAN YOU, FOR THE BENEFIT OF THE PUBLIC, EXPLAIN WHAT TRIM IS? IT SAYS ON JULY 16, THE COUNCIL WILL MEET TO SET TRIM.
>> IT'S CALLED TRUTH AND MILLAGE.
BASICALLY, WHAT THAT IS IS THAT'S WHEN THE TOWN COUNCIL SETS THE MILLAGE RATE THAT IT INTENDS TO ADOPT GOING FORWARD.
NOW, ONCE THAT RATE IS SET AND WE REPORT IT TO THE PROPERTY APPRAISER, YOU CAN'T GO UP.
SOMETHING IN SEPTEMBER, YOU DECIDE, HEY, WE WANT TO RAISE THE MILLAGE, CAN'T DO IT.
ONCE YOU SET IT TO TRIM, IT GOES OUT, IT GETS SENT TO THE PROPERTY OWNERS.
THEY GET NOTIFIED OF WHAT THE INTENT IS OF THE COUNCIL TO SET THAT MILLAGE AT ALONG WITH THEIR ESTIMATED TAX BILL.
THEY'LL RECEIVE THAT IN THE MAIL.
BUT AT THE SAME TIME, YOU CAN GO DOWN ON THE MILLAGE,
[00:50:01]
AND THAT'S HAPPENED IN THE PAST, BUT YOU CAN'T GO UP ONCE YOU SET THAT MILLAGE RATE.>> THANK YOU. MOVING ON TO DISCUSS. ANY DISCUSSION? ONE WAY TO FRAME IT MIGHT JUST BE THE LAST SLIDE.
IF WE GO TO SLIDE 19, POLICY GUIDANCE, ITEMS TO CONSIDER, I SAY THAT BECAUSE WE'VE ALL MET INDIVIDUALLY WITH STAFF IN OUR ONE-ON-ONES.
BUT THIS IS OUR FIRST TIME GETTING TO GET TOGETHER.
WHILE MISSING OUR COLLEAGUES, WE ARE GOING TO HAVE ANOTHER MEETING.
I THINK WE NEED TO DO THAT FOR THE BENEFIT OF OUR COLLEAGUES.
BUT ALSO, IF WE HAVE ANY INITIAL THOUGHTS, SOMETIMES IT HELPS TO JUST HAVE DISCUSSION BECAUSE AS WE WORK ON THIS OVER THE SUMMER, IT'S ESSENTIALLY ANOTHER POINT OF ITERATION.
IT CAN BENEFIT THIS COUNCIL TO ITERATE OVER TIME.
IF THERE ARE THOUGHTS OR ANYTHING YOU HAVE ON THESE POLICY ITEMS.
>> THAT'S A GOOD POINT BECAUSE WE CAN'T TALK TO EACH OTHER.
>> I PERSONALLY LIKE THE IDEA OF A PREMIUM HOLIDAY FOR EMPLOYEES.
MAYBE SKIP DECEMBER'S PREMIUM, GIVE EVERYBODY A LITTLE BREAK RIGHT AT THE BEGINNING OF THE CHRISTMAS HOLIDAY OR AT THE END OF THE YEAR.
PREMIUM HOLIDAY FOR EMPLOYEES, I THINK WOULD BE A GREAT IDEA.
>> JUST TO FOLLOW UP ON THAT REAL QUICK, SCOTT, THE PREMIUM HOLIDAY, WERE YOU TALKING ABOUT DOING SOMETHING LIKE THAT ONCE WE REACH THE $10 MILLION MARK?
>> WE COULD DO THAT GOING INTO NEXT YEAR.
WE'RE MOST LIKELY GOING TO MEET THE 10 MILLION.
IF THE COUNCIL WISH TO DO SOMETHING IN DECEMBER, WE COULD DO THAT AND WE COULD SHOW THAT REDUCTION AND HOW THAT WOULD AFFECT THE FUND BALANCE.
>> THAT'S FROM THE INSURANCE FUND?
>> SORRY, I JUST WANTED TO CLARIFY ON THAT, SO IF YOU HAD OTHER THINGS. ANYTHING ELSE?
>> CAN YOU JUST BETWEEN NOW AND THE NEXT TIME WE MEET JUST SHOW WHAT A DIFFERENCE IN INSTEAD OF A 5% INCREASE FOR THE EMPLOYEES A 6%?
>> BECAUSE I'D LIKE TO SEE WHAT THAT IS.
I'M ALWAYS IN THE BUSINESS OF REWARDING OUR EMPLOYEES, AND I KNOW THEY'VE DONE A LOT THIS PAST YEAR AND A FEW OF THEM HAVE GONE ABOVE AND BEYOND AS WE SAW WITH THE MERIT AWARDS WITH STUFF LIKE THAT.
I'D LIKE TO SEE WHAT THAT DIFFERENCE WOULD BE IF IT'S SOMETHING THAT WE CAN ACCOMPLISH.
I'M ALWAYS IN THE BUSINESS OF REWARDING HARD WORK. THAT'S ALL I WANTED TO SAY.
>> I WANTED TO SHARE A LITTLE BIT OF HISTORY ON THE BUDGET AND A COUPLE OF COMMENTS ON THESE ITEMS SPEAKING TO THE QUESTIONS.
WITH RESERVES AND THE RESERVE BALANCE, I THINK THE POINT I WANTED TO MAKE WITH THE STORM IS JUST THAT STORM COSTS ARE GOING UP, AND IT'S NOT JUST THE INFLATION THAT WE'RE FEELING LOCALLY.
WE KNOW OUR LOCAL LEVEL OF INFLATION IS HIGHER THAN OUR NATIONAL LEVEL OF INFLATION, BUT ALSO SUPPLY CHAIN ISSUES, ESPECIALLY AROUND STORM.
THAT COULD POTENTIALLY BE A VERY EXPENSIVE CLEANUP, AND AS YOU HAD SAID, WE WOULDN'T BE REIMBURSED FOR YEARS.
IT IS VERY IMPORTANT TO MAINTAIN THAT LEVEL OF RESERVE.
ANOTHER THING THAT'S GOOD ABOUT IT IS I THINK IF YOU DRAW ON THE SAVINGS ACCOUNTS THAT THERE'S VERY LITTLE BALANCE, YOU HAVE FEWER OPTIONS AVAILABLE TO YOU.
I KNOW THE TOWN IS LOOKING AT THE RECREATION MASTER PLAN, AND WE JUST HAD A PUBLIC FORUM FOR THAT.
THAT WILL LEAD INTO A SERIES OF RECOMMENDATIONS THAT WILL BE EXPENSIVE.
IT IS A HOLISTIC LOOK AT THE TOWN AND RECREATION, AND IT WILL REQUIRE COMMITMENTS EVENTUALLY AS PUBLIC SAFETY AND OTHER THINGS DO.
I THINK WHEN WE HAVE RESERVE, WE HAVE MORE OPTIONS AVAILABLE TO US, MORE FREEDOM TO LOOK MORE COMPREHENSIVELY AT THE TOWN.
WE WERE ABLE TO RESPOND TO WHAT WE HAVE BEFORE US.
WE WOULD HAVE BEEN BACKED INTO A CORNER WITH THE EXCEPTION OF WE HAD THE FREEDOM TO MAKE THE CHANGE TO SAVE OUR RESIDENTS QUITE A FEW TAX DOLLARS OVER TIME.
PART OF THAT ALSO IS WHEN I LOOKED AT OUR TAX RATE, OUR MILLAGE RATE, I LOOKED AT ALL OF THE OTHER MUNICIPALITIES, THERE WAS A POINT WHERE I WAS OBSESSED WITH BENCHMARKING.
IF YOU LOOK AT THE PROPERTY APPRAISER'S LIST AS SHE GOES THROUGH IT, YOU REALLY HAVE TO LOOK AT THE WHOLE PICTURE ALL TAXES AND FEES ACROSS THE BOARD, BECAUSE WE DO PAY A TAX TO THE COUNTY, WE PAY FOR THE LIBRARY.
WE DO, I LOVE IT, AND WE PAY FOR IT TO ANOTHER ENTITY.
WHEN YOU ADD THEM ALL UP, THE TOWN IS REALLY QUITE LOW.
[00:55:02]
ANOTHER MUNICIPALITY THAT DOES THAT IS PALM BEACH.THEIR FINANCIAL REPORTS INCLUDE THE COMPARISON ACROSS ALL TAXES AND FEES.
THEY WILL HAVE IT IN THEIR NEXT REPORT, WHICH IS AVAILABLE, OR I CAN TRY TO FIND IT AND SHARE IT WITH COUNCIL THROUGH STAFF.
THAT'S ONE WAY TO LOOK AT IT IS JUST HOLISTICALLY, ALL TAXES AND FEES.
THE MSTU FOR FIRE IS SEPARATE.
IT WILL BE ELIMINATED, BUT SOME MILLAGE INCREASE WILL REPLACE IT.
OVERALL, TAXES WILL DECREASE, AND WE'LL BE ABLE TO SHOW THAT BECAUSE WE'VE SEPARATED EVERYTHING OUT.
ANOTHER THING IS JUST THE HISTORY FOR NEWER MEMBERS ON WATER.
WE ACTUALLY DID NOT INDEX OUR RATES FOR A NUMBER OF YEARS, WHICH IS INCREDIBLE TO ME FOR A BUSINESS ENTERPRISE FUND THAT HAS TO STAND ON ITS OWN.
WHEN INFLATION TOOK OFF, WE WERE CAUGHT ON A BACK FOOT.
WE DO HAVE A CONSULTANT COME IN.
WE DO A WATER MASTER PLAN EVERY FIVE YEARS, AND IT'S VERIFIED.
AT THE TIME, WE DECIDED WE NEEDED TO CONTINUE INDEXING.
THE 3% IS ACTUALLY BELOW THE LOCAL INDEX, IS BELOW THE CPI.
WE'RE RAISING IT LESS THAN THE COSTS ARE INCREASING.
I JUST WANTED TO MAKE THAT POINT BECAUSE IT IS AN ENTERPRISE FUND AND NOT RELATED TO AVALORM OR THAT THING.
ON POLICY GUIDANCE, I AGREE, I THINK A FLAT MILLAGE MAKES SENSE.
WE DID LOWER IT LAST YEAR BY 3%, IS THAT RIGHT? WE HAVE A TRADITION OF AVALORM TAX DISTRIBUTION OF 85/15, WHICH I LOVE.
I KNOW IN TOUGH TIMES IT HAD BEEN PROPOSED 90/10, BUT I THINK GIVEN OUR CAPITAL PROJECTS, WE WANT TO MAKE SURE WE CONTINUE TO INVEST IN THEM AND THAT'S APPROPRIATE.
I AGREE WITH HEALTH INSURANCE, AND I AGREE WITH HSA.
ON THE 5%, I THINK I'M PRETTY FLEXIBLE THIS YEAR.
IT'S A PRETTY STANDARD YEAR AS YOU SAID WITH THE EXCEPTION OF THE FIRE RESCUE WHICH WE DISCUSSED.
I WOULD SAY THAT WE PROBABLY NEED TO KEEP THE UTILITY RATE INDEX AS WE WERE CATCHING UP ON INDEXING GOING FORWARD, AND WE ARE SEEING HIGH INFLATION LOCALLY, THAT THERE'S NO WAY TO MEET.
I WORRY ABOUT THE COMPOUNDING EFFECTS OF THAT OVER TIME IF WE FALL BEHIND.
>> WE'VE ACTUALLY LOOKED AT THAT.
IN FACT, WE TAPPED INTO OUR RATE CONSULTANT RECENTLY TO GO BACK THAT HELPED US WITH THE MASTER PLAN.
WE MAKE SURE OUR ASSUMPTIONS ARE HOLDING TRUE, AND HE'S FELT VERY COMFORTABLE WITH THE 3% AS WELL.
TO VALIDATE WHAT STAFF HAS ALREADY SEEING AND HE DID THAT AS WELL.
WE WORKED WITH AMANDA AND THE ASSISTANT UTILITY DIRECTOR AS WELL, LOOKING AT THE CAPITAL PROJECTS.
WE FEEL VERY COMFORTABLE WITH THE 3% RATE INDEX.
>> BUT OUR MILEAGE RATE WILL LOWER BECAUSE IT IS MILEAGE WITH DEBT OBLIGATION.
WHAT IS THE PAYING OFF OUR OBLIGATION EARLY OR WHAT WERE YOU SAYING ABOUT OUR DEBT OBLIGATION?
>> THE GENERAL OBLIGATION BOND?
>> YES, AND IT'S EFFECT ON OUR MILEAGE RATE.
>> RIGHT NOW, YOU PAY A SEPARATE MILEAGE RATE FOR DEBT SERVICE.
IT IS A GENERAL OBLIGATION BOND, IT'S BEEN IN PLACE FOR THE LAST FIVE YEARS.
NEXT YEAR WILL BE THE LAST YEAR THAT THE CITIZENS HAVE TO PAY.
NOW, WE'VE HAD A DEBT SERVICE FUND AS LONG AS I'VE WORKED HERE, AND IT GOES BACK YEARS WITH THE OPEN SPACE THAT WE'VE HAD.
EVERY YEAR, IT ACCUMULATES A LITTLE BIT MORE, OUR RESERVES.
SMALL AMOUNT, BUT OVER TIME IT HAS ACCUMULATED RESERVES.
WE WANT TO USE THAT DEBT SERVICE RESERVES FROM THAT LAST YEAR TO PAY DOWN THAT LAST AMOUNT TO GIVE THE CITIZENS A REDUCED RATE ON THEIR DEBT SERVICE MILLAGE.
>> THANK YOU. ONE LAST THING I WANT TO MENTION AND I AGREE.
WE'VE WORKED REALLY HARD TO TAKE CARE OF OUR EMPLOYEES OVER THE LAST FEW YEARS, ESPECIALLY WITH HOW INFLATION HAS HIT ALL OF US.
BUT I DO WANT TO MAKE SURE THAT WE'RE LOOKING ALSO AT OUR EXECUTIVE STAFF AND OUR TOWN MANAGER.
HE DID NOT RECEIVE THE INFLATION SUBSIDY THAT STAFF RECEIVED IN THE PAST.
HE'S ACTUALLY BEEN COMPENSATED LESS AS A PERCENTAGE OF WHAT HE'S PAID AND THESE BONUSES AND THINGS LIKE THAT.
[01:00:03]
NOW THAT HIS PERIOD OF PERFORMANCE IS DONE, I DO WANT TO LOOK AT SOMETHING BECAUSE WE'VE ASKED A LOT OF HIM THE PAST TWO YEARS AND WE'RE REALLY GRATEFUL.I'M VERY GRATEFUL FOR ALL THAT HE'S PUT INTO HIS EFFORTS.
SOME OF THEM LARGELY UNDER A MICROSCOPE.
I JUST WANT TO MAKE SURE THAT WE'RE APPRECIATING ALL OF OUR STAFF.
THOSE ARE MY COMMENTS FOR NOW.
ARE THERE ANYTHING ELSE FOR THIS WORKSHOP?
IF YOU HAVE INTEREST AT 6%, SAY, WHATEVER IT IS, AND YOUR PAY STAYS THE SAME, IT'S AS THOUGH YOU GOT A PAY CUT.
BASICALLY, WE'RE GIVING THEM A PAY CUT; NOT HIM, THEM.
THERE'S COLLECTIVELY PEOPLE WE'RE TALKING ABOUT THAT HAVE DONE A GREAT JOB, AND WE'RE GIVING THEM A PAY CUT WITH AN INCREDIBLE YEAR OF PERFORMANCE.
I WOULD LIKE TO ADDRESS THAT DEFICIENCY AS WELL.
WHEN WE GET TO OUR OTHER MEMBERS, WE CAN COME UP WITH SOMETHING CREATIVE TO DO THAT.
I WOULD LIKE TO JUST SAY ONE LAST FINAL WORD THOUGH ABOUT THE WATER RATE STORMWATER.
NOW THAT IT'S CLARIFIED THAT THOSE ARE STANDALONE, WE REALLY CAN'T USE FUNDS FROM OTHER SOURCES TO PAY THOSE.
THE 3% TO 7% JUST PROVIDE A LITTLE CUSHION, SOME SOLVENCY FOR THOSE TWO DEPARTMENTS IN CASE SOMETHING HAPPENS.
THAT MAKES MORE SENSE THAT THOSE RATES WOULD BE REQUIRED JUST TO KEEP US A CUSHION.
WE DO HAVE A GIANT PILE UP HERE, BUT WE CAN'T USE THAT FOR THIS STANDALONE SERVICE.
THAT MAKES SENSE. I'M MORE COMFORTABLE WITH THAT.
>> THE TIME IS 7:01 AND THIS MEETING IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.