[00:00:03]
ALL RIGHT. SO I'M CALLING THIS MEETING TO ORDER.
[1. CALL TO ORDER]
IT IS A SPECIAL.REGULAR. IT IS A MEETING TO DISCUSS.
MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? . ALL RIGHT. THE FIRST ITEM ON OUR AGENDA IS GENERAL PUBLIC COMMENTS.
I SEE NO PUBLIC, SO PUBLIC COMMENTS IS CLOSED.
WE WILL MOVE ON TO DISCUSSION OF 2024 BUDGET ASSUMPTIONS WITH FOCUS ON REVENUES.
[3. DISCUSSION OF 2024 BUDGET ASSUMPTIONS WITH FOCUS ON REVENUES]
MR. SIMPSON, WELCOME.AFTERNOON, MAYOR. VICE MAYOR, COMMISSIONERS.
MARK SIMPSON, FINANCE DIRECTOR.
WE ARE HERE THIS AFTERNOON TO DISCUSS SOME ASSUMPTIONS AS WE MOVE FORWARD IN THE BUDGET PROCESS.
YOU HAVE A BOOK IN FRONT OF YOU THAT'S BEEN PREPARED YEARLY THAT SUMMARIZES OUR VARIOUS SOURCES OF REVENUE, THE STATUTORY AUTHORITY AND DESCRIPTION, AS WELL AS SOME TRENDS TODAY.
THE FIRE ASSESSMENT FEE AND THE REST I WILL COVER BRIEFLY UNLESS YOU HAVE SPECIFIC QUESTIONS AND WOULD LIKE FOR ME TO STOP, PLEASE FEEL FREE TO DO SO AT ANY TIME.
AND IT IS ON PAGE TWO OF YOUR BOOK.
WE DO HAVE SOME PRELIMINARY ESTIMATES AS FAR AS OUR TAXABLE VALUES FOR FISCAL YEAR 24.
AND IT LOOKS LIKE WE COULD SEE AS MUCH AS A 16 POINT APPROXIMATELY A 16% INCREASE IN AD VALOREM TAX REVENUE IN FISCAL YEAR 24.
AT THIS TIME, THE RECOMMENDATION IS TO LEAVE THE MILLAGE RATE AT 7.5 MILLS, AND THAT WILL GENERATE A SUBSTANTIAL AMOUNT OF ADDITIONAL REVENUE FOR THE CITY, WHICH WILL BE NEEDED TO KEEP UP WITH INFLATION AS WELL AS HELP WITH OUR HOMELESS SITUATION.
UM, BEFORE I MOVE FORWARD, I WANTED TO MAKE SURE THAT THE PUBLIC AND WE HAVE NEW COMMISSIONERS THAT EVERYBODY KNOWS WHAT A MILLAGE RATE IS AND IT'S REALLY A PERCENTAGE.
UM, ONE MILL IS ONE TENTH OF 1%.
SO IT MIGHT BE EASIER IF I WERE TO DO A SIMPLE EQUATION FOR YOU TO DEMONSTRATE HOW HOW MILEAGE WORKS. IF MARIN WOULD LIKE TO TURN ON THE OVERHEAD PROJECTOR, I COULD.
SO. A PERCENT IS ONE OVER 100 OR 0.001.
SO FOR A HOMEOWNER THAT HAS A $250,000 HOME WITH A $50,000 HOMESTEAD EXEMPTION, THERE ARE GOING TO BE TAXED WITH A VALUE OF $200,000.
OUR MILLAGE RATE IS 7.5, SO IT WOULD BE TIMES.
YOU CAN'T DO THAT ONE IN MY HEAD.
THAT'D BE AN EVEN 1500 HUNDRED DOLLARS.
[00:05:06]
IT'S A PERCENTAGE.AND I'D LIKE TO MAKE A POINT IN ADDITION TO THAT, IS THAT SINCE YOU'RE STARTING AT A VERY BASIC LEVEL HERE, IF YOU'RE LIVING WITHIN CITY LIMITS, YOU'RE NOT ONLY PAYING THE CITY MILLAGE RATE, BUT ALSO THE COUNTY MILLAGE RATE.
SO THOSE ARE ADDED ON TOP OF EACH OTHER.
CORRECT. MOSQUITO CONTROL, PORT AND WATERWAY, ALL THE VARIOUS VILLAGES.
THIS IS JUST THE CITY'S MILLAGE FOR THE SERVICES WE PROVIDE FOR OUR RESIDENTS.
THANK YOU FOR BRINGING THAT UP.
IT'S REQUIRED AS PART OF TRIM COMPLIANCE, WHICH TRIM STANDS FOR TRUTH IN MILLAGE.
AND WE HAVE TO LEVY TAXES IN A VERY METHODICAL WAY.
AND THE FIRST STEP IN THAT IS TO ADOPT A PROPOSED MILLAGE RATE.
IT'S IMPORTANT TO NOTE THAT RATE CAN BE ADJUSTED DOWNWARD THROUGHOUT THE BUDGET PROCESS.
SO RIGHT NOW, FOR CONSERVATIVE PURPOSES, THE RECOMMENDATION IS TO LEAVE THE MILLAGE AT 7.5.
AND. UH, LIKE I SAID, THAT RESOLUTION WILL COME BEFORE YOU THIS EVENING IN YOUR BOOK.
YOU CAN SEE ON PAGE THREE WHAT A ONE TENTH MILL REDUCTION IN AD VALOREM TAXES WOULD DO FOR AVERAGE HOMEOWNERS AT VARIOUS TAXABLE VALUES.
AND IF WE WERE TO GO SO FAR AS TO LOWER THE MILLAGE RATE BY A HALF A MILL, WHAT THAT MIGHT DO AS WELL, AS WELL AS 2/10 OF A MILL. BUT YOU CAN SEE THE DRAMATIC CHANGE IN THE NUMBERS.
THE RECOMMENDATION IS THAT WE LEAVE IT AT 7.5 AND POSSIBLY SEE 17% OR ROUGHLY $3 MILLION IN GENERAL FUND DOLLARS.
SO I AM GOING TO SKIP FORWARD UNLESS THERE'S ANY COMMENTS ON THE MILLAGE.
GET INTO A BRIEF DISCUSSION ON PARKING FEES.
OKAY. I WAS GOING TO SAY I'M LOOKING AND LOOKING.
SO CURRENTLY THE VIC GARAGE IS A PAY ON ENTRY $15 MANAGEMENT FEELS LIKE THERE'S NOT ENOUGH ELASTICITY OF DEMAND TO WARRANT US STAYING AT $15 AND THAT A $20 PAY ON ENTRY FEE WOULD NOT REDUCE UTILIZATION AT THE GARAGE, AS WELL AS INCREASING THE FEES AT THE PAY ON ENTRY AT THE GARAGE.
AN ADJUSTMENT IS ALSO BEING RECOMMENDED FROM 5 P.M.
AND THE PHILOSOPHY BEHIND THIS WOULD BE THAT IF PEOPLE KNOW IT'S ONLY $5 AFTER FIVE, THEY MIGHT NOT DRIVE AROUND THE CITY HUNTING FOR ON STREET PARKING, PERHAPS RELIEVE A LITTLE BIT OF CONGESTION, PAY THE $5, HAVE THEIR MEAL AND.
REDUCE TRAFFIC AND FREE UP SOME ON STREET PARKING.
IF I MAY, MADAM MAYOR? OF COURSE. I WOULD LIKE TO SUPPORT THIS IDEA.
AND MR. FRANKLIN, I'M PRETTY SURE THERE'S A WAY TO TRACK THAT, RIGHT? OKAY, COOL. SO JUST TO SEE IF THERE IS INCREASED USE IN THE PARKING GARAGE ONCE WE IMPLEMENT THAT CHANGE IN THE REDUCTION IN FEE STRUCTURE FOR THAT FOR THE EVENING
[00:10:08]
HOURS. AND THIS DOESN'T RELATE TO HOLIDAYS OR ANYTHING LIKE THAT OR EVENTS A PARTICULAR EVENT, RIGHT.THE WAY MR. FRANKLIN IS DESIGNED, IT IS THAT THIS 5 TO 9 P.M.
WILL NOT BE IN EFFECT WHEN WE'RE OFFERING SHUTTLING SERVICES.
SO NIGHTS OF LIGHTS, 4TH OF JULY, THINGS LIKE THAT.
IF THERE'S A SHUTTLE, THEN WE NEED TO INCENTIVIZE PEOPLE TO USE THE FREE SHUTTLE SERVICE.
SO THAT WOULD BE THE EXCEPTION TO THE RULE IS WHEN WE'RE SHUTTLING.
AND THE OTHER THING I DID NOT MENTION ON THIS IS WHEN.
WHEN WE HAVE MORE PEOPLE PARKING IN THE GARAGE.
IT MAY ALSO INCENTIVIZE THE USE OF THE CITY'S NEW CIRCULATOR, WHICH SHOULD BE RUNNING VERY SOON.
AND I'D LIKE TO KNOW WHAT ARE THE HOURS OF THE CIRCULATOR? THAT IS A QUESTION I CANNOT ANSWER.
I JUST WANT TO MAKE SURE THAT WE'RE REDUCING IT THE COST.
AND THEY GOT A CIRCULATOR AT LEAST TO USE INSTEAD OF PARKING ALL THE WAY ON THE SQUARE.
YEAH. I WOULD ALSO LIKE TO POINT OUT THE VISITOR INFORMATION CENTER GARAGE'S SO CALLED PROFITS ARE USED TO HELP CITY FUNCTIONS LIKE MOBILITY, HISTORIC PRESERVATION, ARCHEOLOGY.
AND WE HOPE TO ALSO USE ADDITIONAL REVENUES WITH OUR HOMELESS INITIATIVES AS WELL.
AND THE RECOMMENDATION IS THE $20 PAY ON ENTRY.
SO THAT GOES HAND IN HAND WITH OUR OTHER PARKING FEES THAT ARE IN THE GENERAL FUND ON STREET PARKING, PARKING FINES. THE CITY WOULD LIKE TO BEGIN CHARGING ON SUNDAYS AND ALSO INCREASE ENFORCEMENT HOURS UNTIL 9 P.M.
TO GENERATE ADDITIONAL REVENUE.
WE INCREASED THE RATES IN FISCAL YEAR 2018 FROM $1.50 AN HOUR TO $2.50 AN HOUR.
COMMISSION APPROVAL IS REQUIRED TO INCREASE THE FEES.
WE ARE NOT ASKING TO INCREASE THE ACTUAL FEES.
IT'S MORE THE HOURS THAT WE'RE GOING TO ENFORCE.
AND THAT IS ON PAGE 21 IN YOUR BOOK.
THAT WE WOULD LIKE TO SEE IS JUST FOR THE PARK NOW CARD.
AND WE WOULD LIKE TO RAISE THAT TO $1 AN HOUR WITH COMMISSION APPROVAL.
AND THE INTENT ON THAT IS TO BRING THE FEE IN LINE WITH THE PARKING GARAGE RESIDENT DISCOUNT OF $3.
ONE IS I NOTICED ON THE PARKING FINES, WE MAKE ABOUT $150,000.
AND THAT DOESN'T SEEM LIKE A WHOLE LOT OF MONEY WHEN YOU HAVE VEHICLES AND PEOPLE RUNNING IT.
NOW, I UNDERSTAND THE PURPOSE IS TO MAKE SURE PEOPLE ARE PARKING AND ALL THAT.
IT'S NOT JUST TO MAKE A PROFIT ON THE FEES.
BUT ISN'T THAT TRUE? WE'RE GOING TO HAVE EXTENDED HOURS FOR THE EMPLOYEES AND EXTENDED USE OF THE CAR.
THAT'S JUST ONE THING I JUST WANT TO MAKE A COMMENT ON.
THE OTHER THING IS THAT I'M NOT IN FAVOR OF RAISING THE THE $0.50 TO A DOLLAR UNLESS WE CAN HAVE SOME INCENTIVE FOR SAINT AUGUSTINE RESIDENTS VERSUS THE COUNTY RESIDENTS.
SO WE COULD RAISE THE FEE TO A DOLLAR FOR COUNTY AND LEAVE IT $0.50 FOR THE CITY.
THANK YOU. AND I WOULD POINT OUT THAT BACK IN 2016-17, OUR PARKING FINES WERE MORE LIKE 300,000.
AND THERE'S VARIOUS WAYS TO THINK ABOUT WHY THAT'S DECLINED.
SOME OF THAT IS SHORTAGE OF PERSONNEL AT TIMES AND THINGS LIKE THAT.
BUT OTHER REASONS ARE, QUITE FRANKLY, THAT WE'VE MADE IT EASIER FOR PEOPLE TO CONFORM WITH OUR METERS BECAUSE THEY'VE GOT AN APP ON THEIR PHONE, THEY CAN BE AT A RESTAURANT AND SAY, OH, MY PARKING IS ABOUT TO EXPIRE AND HIT A BUTTON AND PAY THEIR METERS.
[00:15:03]
BUT YOU CAN SEE IT HAS IT HAS BEEN REDUCED DRAMATICALLY SINCE 2016, ALMOST CUT IN HALF.I DON'T THINK WE SHOULD CHARGE PEOPLE ON SUNDAY.
AND THE REASON FOR THAT IS SUNDAY IS KIND OF A FAMILY DAY.
AND A LOT OF PEOPLE ARE COMING DOWNTOWN FOR CHURCH AND THEY'RE ALREADY GIVING TITHES.
AND THAT'S JUST MY PERCEPTION ON THAT.
WELL, IT'S NOT THE ENTIRE DAY.
IS IT 1 TO 9? OKAY. SO IT'S NOT IT'S NOT THE ENTIRE DAY.
SO THEY WOULD HAVE ALL MORNING FOR FREE.
AND APPARENTLY RUMORS MUST BE ALREADY CIRCULATING ABOUT THIS BECAUSE I GET TEXT MESSAGES FROM PEOPLE ALREADY SAYING, I HEARD THAT YOU'RE CHARGING FOR PARKING ON SUNDAYS AND WE'RE NOT YET.
SO APPARENTLY THE WORD IS ALREADY CIRCULATING.
I DONE IT. RIGHT BEHIND PARKING ON PAGE 22 IS THE ANALYSIS ON VACATION RENTAL PERMITS.
AND WE'VE BEEN UNABLE TO RECOUP OUR COSTS ON THIS OVER THE COUPLE OF YEARS OF THE PROGRAM.
IT IT IS TIME CONSUMING AND TIME IS MONEY WITH OUR PERSONNEL.
SO WHAT WE'RE PROPOSING IS A FEE INCREASE FOR THE VACATION RENTAL FOLKS.
AND YOU CAN SEE THE ANALYSIS ON PAGE 22 WHERE WE'VE GOT SOME VARIABLE COSTS AND SOME FIXED COSTS.
AND OUR TOTAL ESTIMATED COST OF RUNNING THE PROGRAM IS $303,000.
IS A BREAKDOWN OF OUR CURRENT INVENTORY OF SHORT TERM RENTALS WITH THE NUMBER OF BEDROOMS. AND THE NUMBER OF BEDROOMS IS WHAT IS INFLUENCING THE VARIABLE COSTS, WHICH ARE THE TIME OF OUR FIRE INSPECTOR AND THE TIME OF CODE ENFORCEMENT. THANK YOU.
SO AS I UNDERSTAND IT, THE LOSS IS $53,144.
AM I RIGHT? IN MY MATH CURRENTLY? THAT'S WHAT THAT IS WHAT WE ARE PROJECTING TO LOSE.
IF WE RAISE THE FEES, THE PER UNIT FEE AND THE PER BEDROOM FEE, THE AVERAGE INCREASE WOULD BE 12.6% AS WELL AS A $100 LATE FEE FOR NOT FILING ON TIME.
AND THAT'LL GET US A LOT CLOSER TO COVERING THE FULL COST.
THE SALARIES ON THE TABLE ABOVE ARE OUR ESTIMATED FISCAL YEAR, 24 SALARIES.
THANK YOU. THANK. I'M THINKING OUT LOUD HERE, BUT I HAVE A QUESTION ABOUT WHETHER WE CAN REDUCE THE IMPACT ON OWNER OCCUPIED VACATION RENTALS BECAUSE SOME OF THOSE FOLKS REALLY NEED THAT ADDITIONAL INCOME IN ORDER TO BE ABLE TO STAY IN THEIR HOME.
AND YOU KNOW, FOR THE OUT OF TOWN OWNERS, THE INVESTORS BRING IT ON.
BUT FOR THE FOLKS WHO LIVE HERE.
IS THERE ANOTHER WAY TO GET AT THIS SHORTFALL AND MAKE IT A SOFTER LANDING FOR OUR ESPECIALLY OWNER OCCUPIED BUT VACATION RENTAL? I'M NO EXPERT ON THIS, BUT I WOULD THINK THAT THE BEDROOMS IN THE ONE BEDROOM CATEGORY WOULD MEAN THAT IT IS ONE BEDROOM AVAILABLE TO RENT.
IS THAT A FAIR ASSUMPTION? SO THOSE ARE PERHAPS THE FOLKS THAT YOU'RE REFERRING TO.
YEAH, THE LOWER NUMBER OF BEDROOMS. 1 OR 2 OR EVEN THREE.
BUT SEVEN OBVIOUSLY WOULD NOT BE OWNER OCCUPIED, I WOULD IMAGINE.
AND IF I COULD, WHEN WE DESIGNED THIS A FEW YEARS AGO, THAT WAS THE FEEDBACK WE GOT ON MAKING SURE WE LOOKED AT THE PER BEDROOM RATE BECAUSE IT ISN'T AS MUCH WORK ON OUR STAFF TO INSPECT A ONE BEDROOM OR A TWO AS IT IS TO DO A SEVEN.
[00:20:03]
AND THAT'S WHEN WE CAME UP WITH THE BASE RATE AND THE PER UNIT RATE.SO THAT WAS OUR THINKING AT THAT TIME.
WE CAN ALWAYS LOOK BACK AND SEE IF THERE'S ANOTHER WAY THAT WE COULD STRUCTURE THIS.
BUT I DO WANT TO RECOGNIZE THAT IT WILL HAVE AN IMPACT ON PEOPLE, ESPECIALLY AS WE ARE ALSO WORKING ON AFFORDABLE AND WORKFORCE HOUSING AND TRYING TO KEEP OUR RESIDENTS IN THEIR HOMES, YOU KNOW, THROUGHOUT THE CITY.
I JUST WANTED TO POINT OUT ONE OTHER THING ON THE QUESTION YOU HAD ABOUT SALARIES.
THIS IS SALARIES AND BENEFITS.
SO EVERYTHING FROM HEALTH INSURANCE, WORKERS COMP INSURANCE, IT'S NOT JUST THE SALARIES THERE.
I JUST WANT TO POINT THAT OUT. THAT WAS, I THINK, CLEAR IN THE BACKGROUND.
BUT YOU'RE RIGHT TO SAY THAT I DEFINITELY THINK WE HAVE TO BREAK EVEN.
YOU KNOW, WE HAVE TO RAISE IT.
THE BILLS THAT DID FAIL ALL THAT I RECALL AND MAYBE.
MISS MADAM CITY ATTORNEY COULD HELP ME WITH THAT.
ACTUALLY REDUCED THE THOSE BILLS ACTUALLY SUGGESTED TO REDUCE THE FEES TO I CAN'T RECALL WAS IT THEY CAPPED THE FEES AT $50 PER PROPERTY AND $100 FOR MULTIPLE OWNERS FOR MULTIPLE PROPERTIES.
I WANT TO SAY, DID YOU HAVE SOMETHING TO SAY? MS.. LOPEZ.
SO YEAH, WHILE YOU'RE UP HERE, I HAVE ANOTHER QUESTION.
IT SEEMS TO ME LIKE WHEN WE'RE DISCUSSING WHAT COMMISSIONER BRAUN BLONDER WAS SAYING ABOUT GIVING SPECIAL PREFERENCE TO HOSTED HOMES, WHAT WE CALL HOSTED HOMES, WHICH ARE THE OWNER OCCUPIED, DOESN'T AREN'T WE SORT OF BOUND TO TREAT EVERY AS I RECALL, THE LANGUAGE THAT I'VE EVER SEEN IS BOUND TO TREAT ALL PROPERTIES THE SAME.
ISN'T THERE ALWAYS LANGUAGE OR THAT? TYPICALLY, YES.
AND AGAIN, WE WOULDN'T BE ABLE TO CREATE A SCENARIO WHERE WE ARE SUBSIDIZING ONE TYPE OF OWNER AND THEN OVER CHARGING ANOTHER THAT WOULD CLEARLY VIOLATE THE EXISTING STATUTE.
BUT IF WE CAN, AS OUR ASSISTANT CITY MANAGER MENTIONED, AND I'M NOT A CPA, BUT THAT THERE IS A WAY TO QUANTIFY THE AMOUNT OF TIME DIFFERENTIAL BASED ON IMPARTIAL REASONS, IF IT'S YOU'RE JUST HAVING TO GO AND CHECK A ONE BEDROOM STUDIO, IT TAKES YOU A LOT LESS TIME THAN A LARGER STRUCTURE.
THANK YOU. THANK YOU FOR THE CLARIFICATION.
ALSO A QUESTION. I'M PRETTY SURE I KNOW THE ANSWER.
WE DO NOT AND CANNOT CHARGE COMMERCIAL RATES FOR ANY OF THESE FOR GARBAGE PICKUP AND THE LIKE.
YOU KNOW, WHAT WE'VE CREATED IS AN OPTIONAL VOLUNTARY PROGRAM.
BUT OTHERWISE, YES, BY LAW UNDER STATE STATUTE, WHICH I KNOW WILL BAFFLE THE PUBLIC IF THEY WERE HERE, A SHORT TERM RENTAL IS NOT DEEMED A COMMERCIAL USE. YEAH.
THANK YOU. YEAH, THAT'S CORRECT.
OKAY. I WOULD LIKE TO IF WE'RE FINISHED WITH SHORT TERM RENTALS, THE NEXT ITEM ON MY AGENDA WAS THE FIRE ASSESSMENT FEE, WHICH IS ON PAGE 12.
AS MOST PEOPLE KNOW AND IS FREQUENTLY BROUGHT UP.
WE HAVE A LOT OF PROPERTY IN THE CITY THAT ARE NOT ON THE TAX ROLLS AND THUS NOT OBLIGATED TO PAY AD VALOREM TAX, WHICH IS HOW WE PAY FOR POLICE AND FIRE AND OTHER ESSENTIAL SERVICES NOT COVERED BY USER FEES.
[00:25:02]
SO THE FIRE ASSESSMENT FEE IS A CRITICAL SOURCE OF REVENUE FOR US.IT IS CURRENTLY PROJECTED TO BRING IN 1.8 MILLION, WHICH IS NOT 50% OF THE COST OF PROVIDING THE FIRE SERVICES. WE CALCULATED THAT TO BE ROUGHLY 2,050,000.
AND SO WE DID QUITE A BIT OF ANALYSIS TO COME UP WITH SOME NEW RATES FOR RESIDENTIAL AND NONRESIDENTIAL FIRE ASSESSMENT FEES.
NEXT MEETING SO THAT WE HAVE TIME TO DISCUSS IT TODAY AND PREPARE THE NECESSARY DOCUMENTS.
NEXT, REGULAR COMMISSION MEETING IN A COUPLE OF WEEKS.
WE WILL BRING FORWARD THE RESOLUTION TO WITH YOUR CONCURRENCE TO RAISE THE FIRE ASSESSMENT FEE TO.
7.7 $0.06 PER SQUARE FOOT FOR RESIDENTIAL AND 13.91 CENTS PER SQUARE FOOT FOR NON RESIDENTIAL FOR FISCAL YEAR 24.
WE HAVE NOT RAISED THE FIRE ASSESSMENT FEE.
SO WE'RE GOING INTO BUDGET YEAR 2024 AND HAVEN'T RAISED THIS FEE IN SEVERAL YEARS.
IT'S TIME TO TO TRUE IT UP AND HELP OUR FIRE DEPARTMENT AND HELP OUR AD VALOREM TAX PAYERS AS WELL.
I WISH THERE WAS A LAW ENFORCEMENT ASSESSMENT FEE WE COULD CHARGE, BUT APPARENTLY THERE IS NOT.
AND THIS IS THE REALLY ONE WAY THAT THE CITY HAS BEEN ABLE TO, LIKE YOU SAID, MAKE UP FOR THE MANY PROPERTIES, INSTITUTIONS, CHURCHES, FLAGLER COLLEGE THAT ARE NOT PAYING AD VALOREM TAX.
SO THIS IS ONE OF THE WAYS, IN ADDITION TO THE FRANCHISE FEES AND WHAT YOU HAVE BEFORE YOU.
BUT THIS IS A LARGE WAY AND IT'S IMPORTANT THAT WE KEEP THIS TRUED UP.
AND YOU SAID YOU MADE THAT A GREAT WAY TO PUT IT.
I WOULD ALSO SAY THAT AS I READ IT, THAT'S ABOUT A PENNY INCREASE FOR RESIDENTIAL AND ABOUT A PENNY AND A HALF FOR COMMERCIAL.
I'M VERY MUCH SUPPORTIVE OF THIS INCREASE.
EXCUSE ME. I DO HAVE ONE CRAZY IDEA, BUT IT ALSO HELPS RESIDENTS AND PUTS THE COST WHERE I THINK THE INCREASE IN SQUARE FOOTAGE IS COMING FROM.
AND WE'RE BUILDING HOTELS AND WE'RE BUILDING, ETCETERA.
ONE OF MY THOUGHTS WAS TO AND THIS WILL PROBABLY GET ME IN TROUBLE WITH A LOT OF PEOPLE, BUT TO LOWER THE AD VALOREM TAX A BIT AND RAISE THIS TAX MORE TO MAKE UP THAT DIFFERENCE.
JUST A THOUGHT. I APPRECIATE THAT.
WE CAN CERTAINLY RUN SOME NUMBERS FOR YOU ON WHAT THAT MIGHT LOOK LIKE TO BREAK US EVEN.
HOW MUCH, HOW STATUTORILY, HOW MUCH MORE COULD WE RAISE THIS? I HAVE THAT DATA AND THERE'S THIS.
LOPEZ IS PREPARED TO HELP BACK YOU UP.
THERE'S PLENTY MORE ROOM TO INCREASE THE FIRE ASSESSMENT FEE STATUTORILY.
I KNOW THE RESIDENTIAL SIDE WAS SOMEWHERE AROUND $0.10 AND WE'RE ONLY RECOMMENDING, UH, 7.7.
YEAH. AM I IN THE BALLPARK? OKAY. AND SO I'M GOING TO FOLLOW THAT UP THEN WITH I'M NOT IN FAVOR OF REDUCING AD VALOREM, BUT I AM IN FAVOR OF INCREASING THE FIRE ASSESSMENT FEE ON COMMERCIAL IN PARTICULAR. STATUTORILY, THOUGH, AREN'T WE CAPPED AS FAR AS THE AMOUNT OF THE FIRE DEPARTMENT'S BUDGET THAT WE CAN RECOUP VIA THIS FEE? YES.
SO WE HAVE TO KEEP THAT SAME PERCENTAGE DIFFERENCE STEADY.
WE ALSO CAN RAISE FIRE ASSESSMENT FEE TO COVER MORE OF OUR FIRE PROTECTION SERVICES, BUT NOT FOR ANYTHING THAT IS DEEMED EMT, EMS SERVICE OR PROTECTION OF LIFE.
[00:30:01]
SO KIND OF LIKE YOU MENTIONED, THE POLICE.AND AGAIN, THIS 2016 STUDY REALLY HELPED BREAK THAT DOWN FOR US.
SO THERE ARE CERTAIN THINGS WE CAN CHARGE 100% AND THERE ARE CERTAIN THINGS WE CAN CHARGE 0%.
AND WE LOOK AT OUR TOTAL BUDGET FROM THAT STUDY.
IT'S A LONG WINDED ANSWER, AS I KNOW IF YOU HAVE QUESTIONS, MOST COMMUNITIES WERE AT 50% AND THAT MAY BE A QUESTION FOR CHIEF, BUT I THINK THAT WAS THE GOAL THAT WE ESTABLISHED, WAS TO GET TO 50% AND STAY AT 50%.
SO WE WE MADE AN INCREASE IN 2017 AND 2018 AND 2019 WHEN WE GOT TO 50.
AND SO WE'RE TRYING TO GET US BACK THERE.
BUT WE DO HAVE MAXIMUM RATES THAT ARE SET IN OUR CODE OR IN OUR ORDINANCE THAT WE DID AT THIS TIME.
I BELIEVE THE RESIDENTIAL, LIKE MR. SIMPSON SAID, IS AT ABOUT $0.10.
AND THEN I CAN'T REMEMBER WHAT THE NON RESIDENTIAL IS, BUT WE DO HAVE ROOM.
WE'VE GOT A COUPLE OF WEEKS BEFORE THE NEXT COMMISSION MEETING.
I'D KIND OF LIKE TO SEE SOME SCENARIOS ABOUT WHERE WE COULD MOVE ABOVE 50% PERHAPS, AND REALLY GIVE SOME RELIEF TO OUR EMERGENCY WORKERS, YOU KNOW, IN THE FIRE DEPARTMENT AND TO OUR SERVICES AND BE ABLE TO CONTINUE TO PROVIDE THE HIGH LEVEL OF SERVICE THAT WE'VE WORKED SO HARD TO ACHIEVE.
SO IF THAT ISN'T TOO MUCH TROUBLE FOR THE STAFF, THERE'S ANOTHER POINT I WANT TO MAKE, TOO.
IF I HEARD YOU CORRECTLY, MS. BREIDENSTEIN, YOU SAID THE STUDY WAS DONE IN 2016, RIGHT? THE YES.
WE CAN LOOK AT THAT. YES, THERE WAS A LOT OF TIME PUT INTO THAT GETTING CALL LOGS FROM OUR FIRE DEPARTMENT AND REALLY ANALYZING WHAT TYPES OF CALLS WERE COMING IN AND WHO THEY WERE COMING FROM.
SO WE HAVE USED THAT PERCENTAGE.
AND AGAIN, WE'RE PRETTY CLOSE.
AT THE TIME, WE WERE PRETTY CLOSE TO OTHER COMMUNITIES THAT WERE SIMILAR TO US.
SO WE FELT GOOD ABOUT THOSE PERCENTAGES.
BUT IF IT'S TIME TO RELOOK AT THAT, WE CERTAINLY CAN BUDGET FOR ANOTHER UPDATE TO THAT STUDY.
YEAH, I THINK DRILLING DOWN INTO THAT IS I ABSOLUTELY AGREE.
LET'S TAKE A LOOK. LET'S TAKE ANOTHER JUST DRILL DOWN.
MM. MAYBE WE NEED SOME NEW ASSUMPTIONS.
ANY OTHER QUESTIONS ON THE FIRE ASSESSMENT FEE BEFORE I MOVE ON? THAT COVERS THE TOPICS I THOUGHT MIGHT GENERATE THE MOST DISCUSSION.
SO WITH YOUR CONCURRENCE, I'LL JUST KIND OF MOVE ON WITH THE REST OF OUR NORMAL RECURRING REVENUES AND HIT A FEW HIGH POINTS BEFORE WE HAVE TO ADJOURN FOR THE BOND CLOSING.
SO ON PAGE FOUR, YOU CAN SEE THAT OUR MAJOR PAIR OF FRANCHISE FEES ARE FPL AND THE SIGHTSEEING TRAINS.
YOU CAN SEE A LARGE SPIKE IN FISCAL YEAR 22 ON THE FPL FRANCHISE FEES.
THAT IS NOTHING MORE THAN AN ACCOUNTING ANOMALY WHERE WE COUNTED 13 MONTHS OF PAYMENTS.
BUT OTHER THAN FISCAL YEAR 22, THE TREND LINE IS PRETTY SMOOTH, SLIGHTLY UPWARD.
AND FOR FISCAL YEAR 24 AND 25, YOU CAN SEE THAT WE'RE EXPECTING TO RECEIVE 1.37 6,000,001.383 MILLION RESPECTIVELY FROM FPL FOR THEIR FRANCHISE.
ON ALL THESE PAGES, THE STATUTORY AUTHORITY IS REFERENCED AND OUR FISCAL CAPACITY IS REFERENCED.
AND IF YOU HAVE ANY QUESTIONS ON ANY OF THESE, PLEASE LET ME KNOW.
THE BIG SPIKE IN REVENUE YOU'LL SEE IS ON PAGE FIVE, WHERE YOU CAN SEE THE IMPACT OF TOURISM.
[00:35:04]
AND EVERY TIME I SEE A GREEN TROLLEY, THEY'RE USUALLY ALMOST FULL.YOU CAN COMPARE PRE-PANDEMIC LEVELS FROM FISCAL YEAR 18 AND 19 AND THEN LOOK AT OUR FISCAL YEAR 2023 PROJECTION.
IT'S JUST AN ASTRONOMICAL INCREASE IN THESE FEES.
AND DOES THIS INCLUDE EVERY TOURIST, THE GOLF CARTS, THE EVEN THE RENTAL OF THIS, THE SCOOTERS? IT IS ONLY FOR FRANCHISED SIGHTSEEING VEHICLES.
SO THAT WOULD BE THE GREEN TROLLEYS, THE RED TRAINS AND TOUR GROUPS WITH NONE OF THOSE TOUR GROUPS.
YEAH, JUST NO HORSES, NO GOLF CARTS FORCING CARRIAGES, A SEPARATE REVENUE LINE ITEM.
AND IT'S NOT ENOUGH AS FAR AS MATERIALITY FOR ME TO EVEN PUT IN THIS BUDGET BOOK, BUT I'D BE HAPPY TO DISCUSS ITEMS LIKE THAT AND THINGS LIKE THE SPECIAL EVENTS PERMIT FEE, WHICH AREN'T MATERIAL AND THEY AREN'T IN HERE, BUT ALL SOURCES OF REVENUE.
I'M CERTAINLY OPEN TO DISCUSS AT ANY TIME DURING THE BUDGET PROCESS.
THANK YOU. MR. SIMPSON, SINCE YOU BROUGHT UP THE SPECIAL EVENTS REVENUES, I THAT'S SOMETHING THAT I THINK ANYWHERE WHERE WE CAN ACTUALLY COVER OUR COSTS, WE SHOULD DO THAT.
AND I KNOW YOU ARE SHORT STAFFED AT THE MOMENT AND THERE ARE A LOT OF ANALYZES THAT COULD BE DONE, BUT WHERE THERE OPPORTUNITIES LIKE THAT, MY INFORMATION IS THAT WE'RE PROBABLY WAY UNDERSHOOTING ON WHAT WE CHARGE FOR THE FRANCIS FIELD EVENTS.
RIGHT. AND SOME CITIES MIGHT BE ALL INCLUSIVE AS FAR AS WELL.
AS FAR AS WHAT I'VE LEARNED TODAY, WE ARE CHARGING OR THEY'RE HAVING TO PAY THE FEES THEMSELVES TO FUND THE POLICE AND TO PAY THE GARBAGE TIPPING FEES.
DO YOU HAVE ANYTHING ELSE ADDITIONAL TO ADD? WE PASS ANY COST FOR AN EVENT ONTO THE EVENT HOLDER.
THEY ARE TYPICALLY PAYING FOR OUR POLICE OFFICERS ON THEIR OWN OFF DUTY RATES.
BUT FOR AS MUCH AS WE CAN, WE ARE PASSING ALONG OUR ACTUAL HARD COSTS.
YEAH, I WOULD APPRECIATE THAT.
THANK YOU. OKAY. SO ON GETTING BACK TO THE SIGHTSEEING VEHICLE FRANCHISE FEES.
SO I'M TRYING TO TEASE OUT WHAT YEAR.
THE WAY I READ IT, WE INCREASED THE FRANCHISE FEE WAS WAS IT 2018? EACH OF THEM ARE ON A SEPARATE CONTRACT AND ONE OF THEM WAS RENEGOTIATED RECENTLY, AND I BELIEVE MS. BREIDENSTEIN WOULD HAVE MORE DETAILS ON THOSE.
I'D HAVE TO LOOK BACKWARDS AND SEE WHEN EXACTLY WE LAST RAISED THAT FROM THREE AND ONE HALF TO FOUR.
IT SAYS HERE IN THE REPORT, OH, THANK YOU.
DID HE RAISE THE FRANCHISE FEE TO 4% OF SALES IN FY 2018? BUT YET.
WE AS PER THE AGREEMENT, WE ALLOW FOR A HALF A PERCENT INCREASE FOR EVERY THREE YEARS.
YET AT THE SAME TIME, I'M HEARING YOU NOT RECOMMEND AN INCREASE.
OH, I WOULD CERTAINLY RECOMMEND AN INCREASE BECAUSE.
THAT'S MY CLARIFICATION QUESTION.
ARE YOU RECOMMENDING A HALF A CENT FRANCHISE FEE INCREASE NOW? NO, I'M NOT, BECAUSE I DON'T KNOW EXACTLY WHEN THOSE CONTRACTS ARE UP FOR RENEWAL, BUT I DON'T BELIEVE ANY ARE UP FOR RENEWAL THIS FISCAL YEAR. BUT THIS FEE IS BECAUSE OF THE BURDEN ON OUR ROADWAYS, TRAFFIC CONGESTION AND AS ALL OF OUR COSTS ARE INCREASING, I WOULD CERTAINLY LIKE TO RECOUP SOME OF THOSE COSTS FROM THE PRIVATE OPERATORS THAT ARE PROFITING IN OUR CITY.
ACCORDING TO WHAT I'M READING HERE, WE COULD INCREASE THE FRANCHISE FEE BY HALF A PERCENT.
BUT I WOULD HAVE TO LOOK AT I WOULD HAVE TO LOOK AT WHEN THE CONTRACT, THE CONTRACT, WHENEVER THE CONTRACT COMES UP AGAIN, ARE THEY FIVE YEAR CONTRACTS OR TEN YEAR CONTRACTS? AND WHEN ARE THOSE CONTRACTS UP FOR RENEWAL? WELL, I'M JUST READING WHAT IT SAYS IS A HALF CENT INCREASE IN THE FEE EVERY THREE YEARS.
[00:40:05]
SO I'M.AND YOU'RE SAYING WE HAVEN'T HAD IT? RACE IN 2018.
AND IF IT WERE AVAILABLE, WE SHOULD BE ON A TARGET EVERY THREE YEARS.
I BELIEVE CAP IS BACK TO US ON THAT.
AND IF THIS IS NON-NEGOTIABLE WITH THE CONTRACTORS, WHY WOULDN'T IT BE BE PRUDENT TO GO AHEAD AND INCREASE IT BEFORE THE CONTRACT IS UP SO THEY KNOW AHEAD OF TIME IT'S NOT A NEGOTIABLE ITEM.
IT WOULDN'T HURT FOR US. IT WOULDN'T HURT FOR US TO RAISE.
I DON'T KNOW. I DON'T RECALL IF WE PUT THAT IN.
I DON'T THINK WE CAN WORK WITH THE ASSISTANT CITY MANAGER AND OUR CITY ATTORNEY AND GET THE LOGISTICS AND UPDATE YOU GUYS AT THE BUDGET WORKSHOP IN AUGUST. BUT THE PRELIMINARY ANALYSIS WAS THAT NOTHING WAS COMING UP IN THIS FISCAL YEAR WHERE WE HAD THE OPPORTUNITY FOR A RAISE.
THIS FISCAL YEAR, I WOULD JUST HAVE RAISE IT TO FOUR AND A HALF ON THE NEXT CONTRACT YEAR.
MISS LOPEZ HAS A POINT TO MAKE.
I THINK IT'S BUILT IN, BUT THE INCREASE IS PARSED OUT EVERY THREE YEARS.
SO WE COULDN'T RAISE EVERY YEAR, BUT WE COULD RAISE EVERY THREE YEARS.
SO IF IT WAS 2019 THE LAST TIME WE RAISED IT, WE SHOULD BE ABLE TO.
BUT WE'LL TAKE A LOOK AT THE LANGUAGE OF THE AGREEMENTS.
THAT'S WHAT MY RECOLLECTION WAS, THAT IT'S NOT RAISED AT THE TIME WE RENEW.
IT'S BUILT IN, BUT IT'S LITTLE ITTY BITTY RAISES EVERY COUPLE OF YEARS.
YOU MIGHT REMEMBER VICE MAYOR.
AND THEN, YOU KNOW, WE WOULD GO YEARS AND FORGET OR NOT DO IT.
I DON'T WANT TO MISS THE OPPORTUNITY.
YEAH. I WOULDN'T WANT TO SEE US MISS THE OPPORTUNITY.
AND THE WAY I AS I RECALL, IT USED TO BE WRITTEN AS YOU KNOW, YOU HAD TO DO IT IN THAT THIRD YEAR.
I DON'T KNOW, ANOTHER CRAZY SEEMED CRAZY.
BUT I THINK WE HAVE A BETTER CONTRACT NOW.
I DO HOPE WE HAVE CONSENSUS THAT IF THE ANSWER IS YES, LET'S DO IT.
OR IS IT OKAY IF WE GO BACK TO WHAT MR. SPRINGFIELD COMMISSIONER SPRINGFIELD SAID ABOUT WITH REGARD TO HIS QUESTION ABOUT THE GOLF CARTS AND THE, YOU KNOW, THE LITTLE MINI TOURS AND THE I DON'T KNOW WHAT THEY'RE CALLED.
ARE THEY ALL LICENSED TO OPERATE WITHIN THE CITY AS A COMMERCIAL VENTURE OF SOME TYPE.
WE HAVE A DRIVER FOR HIRE PERMITS.
WE ALSO HAVE TOUR GUIDE PERMITS.
WE HAVE A SEVERAL DIFFERENT RULES ON NUMBER OF SEATS.
AND WE ACTUALLY AT THIS TIME HAVE A CONTRACT OUT WITH THE CONSULTANT TO LOOK AT ALL THE DIFFERENT MODES WE HAVE OF DRIVER FOR HIRE, OF SIGHTSEEING GUIDES, THE SIZES, BECAUSE WE'RE SEEING THINGS WE HADN'T SEEN AT THE TIME THAT THE CODE WAS LAST WRITTEN.
LOOKING AT WHAT THOSE THINGS ARE, WHAT KIND OF SERVICE THEY'RE PROVIDING, SHOULD THEY ALL EITHER BE FRANCHISED OR SHOULD THEY HAVE A DIFFERENT TYPE OF PERMIT? ONE, THE MOST IMPORTANT THING THAT WE'RE LOOKING AT FROM MY PERSPECTIVE IS SOMETHING THAT IS EASY TO ADMINISTER, EASY TO ENFORCE, CLEAR THAT IT'S CLEAR FOR EVERYBODY WHO IS OUT THERE OPERATING AND WHO IS ENFORCING.
SO WE HAVE HIRED SOME OUTSIDE ASSISTANCE TO LOOK AT WHAT WE HAVE GOING ON OUT THERE AND HELP US CREATE A EASY TO UNDERSTAND AND EASY TO ADMINISTER, PROCESS AND PROGRAM FOR EVERYONE.
THAT'S GREAT. I LOOK FORWARD TO THAT REPORT COMING BACK TO US BECAUSE I THINK WE HAVE I MEAN, IT'S CLEAR THAT IN TERMS OF CONGESTION, THESE THINGS HAVE BEEN PROLIFERATING. AND IN TERMS OF SAFETY, I'M JUST I'M SURE WE SHARE EACH OTHER'S CONCERNS ON THAT, THAT THIS IS AN OPPORTUNITY FOR US TO REALLY MAKE SURE THAT WE, YOU KNOW, WE UPHOLD WHAT STANDARDS WE'RE REALLY TRYING TO ACHIEVE HERE IN TERMS OF QUALITY OF LIFE AND SAFETY.
[00:45:01]
WE AGREE. SO LET'S KEEP MOVING AND WE'LL LOOK FORWARD TO HEARING FROM THAT REPORT.LET'S KEEP MOVING BECAUSE WE'RE 15 MINUTES, LESS THAN 15 MINUTES OUT.
THE UTILITY TAX ON PAGE SIX IS RELATIVELY FLAT.
COMMUNICATION SERVICE TAX DID DECLINE FOR MANY YEARS BECAUSE PEOPLE DROPPED THEIR LANDLINES.
BUT AS EVERYBODY NOW HAS TO HAVE A CELL PHONE, YOU'LL SEE IT'S NOW PROJECTED TO ALMOST GET BACK TO ITS HIGHS OF APPROXIMATELY $1 MILLION A YEAR. SO ON PAGE SEVEN.
THE STATE REVENUE SHARING THEIR MAJOR SOURCES OF REVENUE.
BUT THOSE NUMBERS WE GET FROM A STATE REVENUE ESTIMATING CONFERENCE LATER ON THIS MONTH.
SO ALL YOU SEE HERE ARE MY VERY ROUGH ESTIMATES.
I WILL FINE TUNE THOSE AND BRING THEM BACK TO YOU AT THE WORKSHOP IN AUGUST.
IT INCLUDES STATE REVENUE SHARING, HALF CENT SALES TAX AND LOCAL OPTION GAS TAX.
CAN I MAKE A POLITICAL COMMENT ABOUT THAT? DO WE GET A THANK YOU NOTE FROM THE COUNTY FOR THE EXTRA REVENUE THAT THEY GET? BECAUSE WE ARE A TOURIST TOWN AND WE ONLY GET CREDIT FOR OUR POPULATION AND NOT THE AMOUNT OF MONEY THAT'S BEEN IN TOWN.
I DO PERSONALLY FROM THE COUNTY BUDGET DIRECTOR, BUT IT'S NOT A.
WE BUDGET A HALF MILLION DOLLARS FOR THESE EVERY YEAR IF THEY COME IN EXCESSIVELY.
WE'RE REQUIRED TO USE THESE ON ENFORCING THE BUILDING CODE.
SO TO BUDGET TOO MUCH WOULD NOT BE GOOD ON OUR PART.
WE HAVE TO KEEP A RUNNING TOTAL OF OUR EXCESS BUILDING PERMIT FEES AND IT'S RESTRICTED.
THAT'S WHY YOU'LL SEE THE SPIKES AND THEN THE FLAT 500,000.
THIS YEAR WE'RE PROJECTED TO BRING IN 670,000.
BUT YOU CAN SEE THE LARGE SPIKES IN 22 AND IN 19, A LOT OF THOSE BUILDING PERMITS WERE THE RESULTS OF HURRICANE DAMAGE. AND THEN POST COVID, EVERYBODY WANTING TO ADD ON TO THEIR AS THEY STAYED HOME TO WORK.
THE RENTS ARE PROJECTED TO INCREASE BY 4.4%, WHICH WAS THE MAY TO MAY COST OF LIVING.
AND THAT'S STANDARD IN ALL OF OUR CONTRACTS.
IT INCLUDES OUR FIRST FLOOR RENTALS AND ALL OF OUR CITY HALL RENTALS HERE.
IT INCLUDES THE GALLIMORE CENTER, THE YACHT CLUB, ALL THE RENTALS AT THE CASA DEL HILDALGO, THE CULTURAL COUNCIL, AND OUR SUBMERGED LAND LEASES.
SO I WOULD LIKE TO CONCLUDE WITH OUR UTILITY RATES TODAY.
WE ARE PRELIMINARILY GOING THROUGH EXPENDITURE BUDGETS AND PERSONNEL REQUESTS, BUT FOR RIGHT NOW, FOR TODAY'S PURPOSES, THE RECOMMENDATION IS SIMPLY A 4.4% INCREASE ACROSS THE BOARD ON ALL OF OUR UTILITIES.
THESE NUMBERS WILL EVOLVE THROUGHOUT THE REST OF JULY AND WE WILL BRING YOU FIRMER NUMBERS BASED ON DIRECTION WE RECEIVED TODAY AT THE AUGUST WORKSHOP.
MADAM MAYOR, CAN I. YES, PLEASE.
ARE WE EXPECTED TO OPERATE IN A DEFICIENT DEFICIENCY IN ANY OF THESE FUNDS? THIS YEAR, THOSE FUNDS HAVE ALWAYS DONE SATISFACTORILY, WITH THE EXCEPTION OF SOLID WASTE.
AND SO WE ARE LOOKING TO HOPEFULLY BREAK EVEN THIS YEAR IN SOLID WASTE.
OKAY. THANKS. AND HOW ARE WE DOING ON OUR COMMITMENT TO LOWER THE SURCHARGE FOR CUSTOMERS OUTSIDE OF THE CITY LIMITS? THIS 4.4% INCREASE DOES CONTAIN A 1% REDUCTION IN THE SURCHARGE FOR OUTSIDE THE CITY LIMITS THAT'S BEEN BAKED IN FOR THE PAST COUPLE OF YEARS.
WE STARTED AT 25% AND WE'RE GOING TO LOWER IT.
[00:50:03]
SURCHARGE. SO YOU'RE RECOMMENDING 18 BECAUSE AS I THOUGHT I WAS 19, I THINK WE OUR GOAL WAS 19.BUT IF THAT'S WHAT IT IS NOW, IT'S 19 NOW.
WE LOWERED IT LAST YEAR WITH THE INTENT OF OR THE FISCAL YEAR THAT WE'RE CURRENTLY IN, WITH THE INTENT OF CONTINUING TO LOWER THE SURCHARGE 1% EACH YEAR UNTIL WE GOT TO SOMETHING A LITTLE MORE REASONABLE.
BUT IT DID START AT 25%, WHICH I BELIEVE WAS THE STATUTORY MAX AND WAS RECOMMEND RECOMMENDED BY OUR RATE STUDY ANALYSTS YEARS AND YEARS AGO.
RIGHT. JUST REMEMBER, WE'RE GOING TO KEEP DOING THAT UNTIL.
WHAT ARE WE SHOOTING TO GET TO? WELL, THE TERM REASONABLE IS DIFFICULT TO DEFINE, BUT REASONABLE.
I WOULD LIKE TO ENGAGE ANOTHER RATE STUDY AND HAVE PROFESSIONALS COME IN AND CALCULATE THE ACTUAL COST THAT IT DOES COST TO THE RATEPAYER TO PROVIDE THE SERVICE OUTSIDE THE CITY LIMITS.
THAT TO ME IS REASONABLE AS RECOUPING OUR COSTS.
AND, YOU KNOW, SOME OF OUR WATER LINES RUN PRETTY FAR OUT OF TOWN BASIS.
WE CAN'T JUST ARBITRARILY SAY SO.
IF I REMEMBER CORRECTLY, WE HAD THE SAME DISCUSSION LAST YEAR AND I WOULD LIKE TO SEE THAT.
YEAH. TO MAKE SURE THAT WE ARE COVERING OUR COSTS BUT BEING FAIR TO THOSE WHO SERVE.
I WOULD HAVE TO LOOK, BUT I DON'T THINK WE HAVEN'T HAD A RATE STUDY DONE SINCE.
I'VE BEEN THE DIRECTOR OF FINANCE, WHICH IS ONLY A FEW YEARS.
IT'S BEEN A WHILE. YOU'VE BEEN WITH US FOR HOW MANY YEARS NOW? JUST FOR FOUR.
I THINK IT MAY BE 2014 OR 15 AND THAT WE HAD A FIVE YEAR PLAN THAT WE FINISHED IN ABOUT 2020.
AND SINCE THEN WE'VE BEEN INCREASING BY THE COST OF LIVING.
BUT IT'S PROBABLY TIME TO MAYBE AN UPDATE.
THE COUNTY RECENTLY PASSED BACK IN JUNE, ACTUALLY VERY RECENTLY PASSED A RESOLUTION REDUCING THEIR FEES FOR WATER AND WASTEWATER BY FAIRLY SIGNIFICANT AMOUNT.
MR. SIMPSON, DO YOU CAN YOU SPEAK TO THAT AT ALL? IS THERE SOMETHING IN A RATE STUDY THAT WE MIGHT DO THAT MIGHT HELP US TAKE ANOTHER LOOK? I CONTACTED THE COUNTY DIRECTOR OF OFFICE OF MANAGEMENT AND BUDGET AND HE GOT BACK TO ME VERY BRIEFLY.
AND THE EXPLANATION WAS, IS BECAUSE THEY HAD ACQUIRED THE PONTEVEDRA UTILITY.
AND THE ONLY THING I CAN SURMISE IS THAT THEY'VE BEEN ABLE TO REAP SOME ECONOMIES OF SCALE BY INCREASING THEIR CUSTOMER BASE DRAMATICALLY AND THAT'S HOW THEY WERE ABLE TO LOWER THEIR RATES.
I WOULD LOVE TO BE IN A POSITION TO LOWER OUR RATES.
IT REALLY DOES DEPEND ON THE LEVEL OF SERVICE WE WANT TO PROVIDE.
AND I'M SPEAKING FOR THE UTILITIES FOLKS, AND I SHOULDN'T BE.
BUT I THINK THAT'S AN IMPORTANT CLARIFICATION BECAUSE IF SOMEBODY ASKS ME, FOR EXAMPLE, WHY WE COULDN'T DO THE SAME THING, WE HAVEN'T YOU KNOW, WE HAVEN'T ACQUIRED A, YOU KNOW, ANOTHER TREATMENT PLANT AND WE'RE NOT LIKELY TO DO SO IN THE NEAR FUTURE.
SHORT ANSWER WOULD BE ECONOMIES OF SCALE THAT TO.
ANY OTHER QUESTIONS OR ITEMS OF CONCERN OR THINGS THAT YOU WOULD LIKE AS WE DEVELOP THE REVENUE BUDGETS? I JUST WANT TO SAY, AS FAR AS THE RATES AND STUFF, THERE'S SO MANY HOUSES POPPING UP IN THE CITY AS WELL AS OTHER PLACES THAT WE CAN CATCH FOR WATER AND SEWER THAT WOULD JUSTIFY IF WE WERE ABLE TO LOWER IT, WOULDN'T IT? THAT WOULD ADD SOME ECONOMIES OF SCALE.
CERTAINLY BIG DEVELOPMENTS LIKE ANTIGUA.
HOWEVER, THEY BOUGHT AN ENTIRE UTILITY THAT WAS THE SIZE OF PONTEVEDRA.
SO THAT'S MASSIVE ECONOMIES OF SCALE.
BUT YES, THERE'S MORE CUSTOMERS COME ONLINE.
[00:55:04]
IT'S THE EXISTING INFRASTRUCTURE THAT NEEDS THE CONSTANT REPAIR, THE RENEWAL AND REPLACEMENT.ANY OTHER QUESTIONS? COMMENTS? SOUNDS LIKE WE HAVE OUR WORK CUT OUT FOR US.
WE HAVE SOME SPLAINING TO DO TO THE COMMUNITY ABOUT WHAT WE NEED TO LOOK AT AS FAR AS PARKING FEES TO HELP US REDUCE CONGESTION AND FUND CONTINUE TO FUND HISTORIC PRESERVATION AND ARCHEOLOGY.
UM, I THINK CAN REMEMBER THE OTHER ONE.
I'M SURE IT'S MOBILITY AND THEN ADD OUR ADD HOMELESSNESS INTO THAT WHICH WE KNOW IS GOING TO BE AN EXPENSIVE ENDEAVOR AND THAT WE'LL NEED REVENUE TO DO THAT.
SO WE APPRECIATE YOU BRINGING THOSE OPTIONS FORWARD.
I DON'T KNOW HOW LONG IT'S BEEN SINCE WE'VE RAISED OUR PARKING FEES.
I THINK YOU MIGHT HAVE GONE OVER THAT, BUT IT'S BEEN QUITE A WHILE AND I CERTAINLY APPRECIATE YOU TAKING THE BOLD STEP OF BRINGING OUT THAT WE SHOULD EXTEND PARKING HOURS INTO THE EVENING, INTO THE EARLY EVENING AT LEAST.
SO I DO REALLY APPRECIATE THAT.
AND WE'LL SEE WHAT WE CAN DO MOVING FORWARD.
I CERTAINLY THINK IT'S A GOOD IDEA AND OVERDUE.
ANY OTHER COMMENTS? I DID A LITTLE ADMINISTRATIVE MATH.
I'M NOT A CPA, BUT I'M ALWAYS INTERESTED IN WHAT PERCENTAGE PEOPLE PAY.
AND I CAME OUT TO ABOUT 13% OF THE OVERALL MONEY THAT WE COLLECT IS AD VALOREM TAX FOR RESIDENTS.
AND SO SOMETIMES RESIDENTS FEEL LIKE THEY'RE PAYING 100% OF IT.
AND SO I'D JUST LIKE TO LOOK AT THE IMPACT.
AND OF COURSE, THE BUSINESS AD VALOREM IS 14 OR 15%.
SO YOU'RE LOOKING AT AROUND 30%.
33% IS PAID BY AVALON, AND THE REST ARE FEES AND COSTS FOR SERVICES, DIRECT COSTS.
JUST TO COMMENT, THAT'S ALL I HAVE AND ALL OF OUR OTHER BUSINESS FUNDS, JUST FOR EVERYBODY'S EDIFICATION, THE UTILITIES, THE MARINA, THE VISITOR INFORMATION CENTER, THEY PAY THE ADMINISTRATIVE OVERHEAD TO THE GENERAL FUND FOR US TO PROVIDE THEM SERVICES.
THERE'S NO FREE RIDE FOR THE BUSINESS FUNDS.
SO THAT'S AN IMPORTANT THING TO NOTE AS WELL.
I'D LIKE TO I APPRECIATE THOSE NUMBERS.
A LOT OF TIME HOMEOWNERS THINK THAT THEY'RE PAYING THE LION'S SHARE AND IT'S REALLY THE BUSINESSES.
SO THERE'S ALSO THE SAVE OUR HOMES ACT.
MADAM MAYOR, THAT WAS JUST I YEAH, WE COULD HAVE A WHOLE MEETING ON SAVE OUR HOMES ACT AND BENEFITS THE RESIDENTIAL HOMEOWNER TO YOUR POINT.
RIGHT. AND THAT WAS THAT HAD A HUGE IMPACT ON MUNICIPALITIES.
AND THEN I DON'T KNOW WHAT THE IMPACT, OF COURSE, IS ON THE PORTABILITY, BUT MAYBE ANOTHER.
NO, THAT WAS KIND OF AN IMPACT.
THE PORTABILITY ASPECT IS DIFFICULT TO QUANTIFY.
I BET YOU I COULD WORK WITH THE PROPERTY APPRAISER'S OFFICE THOUGH.
THEY HAVE A DYNAMITE STAFF THAT IS QUICK TO RESPOND.
BUT THE IMPACT OF PORTABILITY BECAUSE THAT'S RELATIVELY NEW.
SO ANYWAY, SO THANK YOU VERY MUCH.
ANY OTHER COMMENTS? QUESTIONS? OTHERWISE, WE'LL CALL THIS CALL ADJOURNMENT ON THIS AND MOVE ON TO WE'RE GOING TO ADJOURN THIS PORTION OF THE MEETING AND MOVE ON TO WE HAVE A BOND CLOSING AT 4:15.
ALL RIGHT. WE HAVE 15 MINUTES.
I THOUGHT WE HAD NO, I DON'T THINK IT'S A PUBLIC IT'S JUST.
NO, IT'LL BE DONE IN THE CONFERENCE ROOM BEHIND US.
YOU CAN INVOLVE THE COMMISSIONERS.
SO. WE WILL BE ADJOURNING THIS MEETING.
YES, MA'AM. FOR THE BOND SIGNING.
THANK YOU VERY MUCH.
* This transcript was compiled from uncorrected Closed Captioning.