[1. CALL TO ORDER] [00:00:05] ALL RIGHT, GOOD AFTERNOON. THIS IS— I'M CALLING TO ORDER THE SPECIAL CITY COMMISSION MEETING ON PROPERTY TAX REFORM, AND WE ARE GOING TO HAVE A DISCUSSION THIS AFTERNOON. MADAM CLERK, PLEASE CALL THE ROLL. NANCY SIKES-KLINE HERE. BARBARA BLONDER. HERE. CYNTHIA GARRIS. HERE. JIM SPRINGFIELD. HERE. JON DEPRETER HERE. [2. PUBLIC COMMENTS FOR GENERAL PUBLIC COMMENTS (3 MINUTES PER INDIVIDUAL)] ALL RIGHT, GREAT. SO, WE WILL BEGIN THE MEETING WITH PUBLIC COMMENTS. AND I WILL READ THE RULES OF DECORUM HERE. ANY PERSON WISHING TO ADDRESS THE COMMISSION SHOULD FILL OUT OUT SPEAKER CARDS AND I WILL CALL YOU TO THE PODIUM WHEN IT IS YOUR TIME TO SPEAK. YOU WILL HAVE 3 MINUTES TO SPEAK AND SHALL COMPLY WITH THE RULES OF DECORUM. THAT IS, COMMENTS SHOULD BE ADDRESSED TO THE COMMISSION AS A WHOLE AND NOT INDIVIDUAL COMMISSIONERS. COMMISSIONERS WILL NOT NECESSARILY ANSWER QUESTIONS FROM SPEAKERS. NO PERSON MAY ADDRESS THE COMMISSION WITH PERSONAL, IMPROPER, OR SLANDEROUS REMARKS OR WITH BOISTEROUS BEHAVIOR. MEMBERS OF THE AUDIENCE WILL REFRAIN FROM ANY CLAPPING OR DISRUPTIVE DEMONSTRATIONS OF APPROVAL OR DISAPPROVAL OF ANY COMMENTS. AND FINALLY, I WOULD ASK THAT ANY— PARDON ME. ANY SPEAKER WHO USES THE OVERHEAD PROJECTOR TO PLEASE SUBMIT THOSE ITEMS TO THE CITY CLERK SO THAT THEY MAY BE ENTERED INTO THE PUBLIC RECORD. MADAM CLERK, DO WE HAVE ANY CARDS? DO WE HAVE ANY SPEAKER CARDS? ALL RIGHT, YOU'RE CERTAINLY WELCOME TO CONTINUE TO TURN IN SPEAKER CARDS AS LONG AS WE'RE CALLING OUT NAMES IF YOU'D LIKE TO SPEAK. THANK YOU. FIRST SPEAKER IS SUSAN GREGORY. WELCOME AND GOOD AFTERNOON. THANK YOU. GOOD AFTERNOON, COMMISSIONERS. FRUSTRATION AROUND PROPERTY TAXES IS REAL. THERE ARE REAL INEQUALITIES IN THE SYSTEM. I DO NOT NECESSARILY SUPPORT ELIMINATING HOMESTEAD PROPERTY TAXES. IN FACT, I'M CONCERNED THAT THE ELIMINATION WITHOUT STRUCTURAL REFORM WOULD SIMPLY SHIFT THE BURDEN MORE HEAVILY ONTO NON-HOMESTEAD PROPERTIES AND RENTERS. BUT I DO BELIEVE THE CURRENT SYSTEM IS INEQUITABLE, AND IF WE'RE GOING TO HAVE THIS CONVERSATION, WE SHOULD TALK ABOUT ALL OF IT. 58% OF THE CITY'S GENERAL FUND IS FUNDED BY AD VALOREM PROPERTY TAXES. THIS THAT IS A SIGNIFICANT STRUCTURAL RELIANCE. WE ARE A PROPERTY TAX FUNDED CITY WITH A TOURISM DRIVEN ECONOMIC INFLATION. TOURISM DRIVES ASSET VALUES, PRICE OF GOODS AND SERVICES, POLICE AND SANITATION COSTS, UTILITY DEMANDS. BUT HOMEOWNERS STILL CARRY THE LARGEST CONSISTENT FUNDING LOAD. ST. AUGUSTINE IS GEOGRAPHICALLY CONSTRAINED. WE CANNOT MEANINGFULLY EXPAND CITY DENSITY. WE CANNOT SIGNIFICANTLY GROW OUR TAX BASE. YET WE MUST PROVIDE SERVICES AND INFRASTRUCTURE FOR BOTH RESIDENTS AND MILLIONS OF ANNUAL VISITORS. TOURISM CONTINUES TO GROW. OUR POPULATION CANNOT. VISITORS USE NEARLY ALL THE SAME SERVICES RESIDENTS DO, MINUS SCHOOLS. LET'S ASK SHORT-TERM RESIDENTS AND TOURISTS TO SHARE IN THE COST OF THE SERVICES THEY USE. SORRY. I ALSO WANT TO TALK ABOUT THE MULTIPLE INEQUALITIES THAT EXIST TODAY. TWO IDENTICAL HOMES NEXT DOOR CAN PAY DRAMATICALLY DIFFERENT TAX BILLS SIMPLY BECAUSE ONE OWNER NEVER MOVED. A LIFELONG RESIDENT WHO DOWNSIZES AFTER DIVORCE, DEATH, OR A CHANGE IN LIFE CAN LOSE MUCH OF THEIR TAX ADVANTAGE. SMALL, LOCALLY OWNED RENTAL PROPERTIES HAVE ABSORBED DRAMATIC INCREASES IN NON-HOMESTEAD TAXES OVER THE PAST 5 YEARS, OFTEN FASTER THAN RESIDENTS CAN— THAN RENTS CAN REASONABLY RISE. AT THE SAME TIME, LARGE DEVELOPMENTS RECEIVE TAX INCENTIVES FOR AFFORDABLE HOUSING WHILE SMALL LANDLORDS WHO PROVIDE WORKFORCE HOUSING RECEIVE NO COMPARABLE ECONOMIC SUPPORT AT ALL. THE LARGEST SINGLE SHARE OF TAX GROWTH IS COMING FROM NON-HOMESTEAD RESIDENTIAL PROPERTIES. SMALL LOCAL LANDLORDS THAT SIT IN THE FASTEST GROWING TAX BUCKET ARE GETTING CRUSHED. ELIMINATING THE HOMESTEAD EXEMPTION DOESN'T FIX THE PROBLEM, AND THOSE SHIFTS HAVE CONSEQUENCES. WHEN NON-HOMESTEAD TAXES RISE, LANDLORDS HAVE 3 OPTIONS: RAISE RENTS, CONVERT TO SHORT-TERM RENTAL, OR SELL BECAUSE LONG-TERM RENTALS NO LONGER MAKE ANY SENSE. TENANTS ULTIMATELY PAY THE PRICE. SO IF HALF OF OUR GENERAL FUND DEPENDS ON AD VALOREM TAXES FROM A CONSTRAINED BASE, I THINK AS A CITY WE MUST ADDRESS THE MULTIPLE INEQUITIES IN THE SYSTEM AND ASK, HOW CAN WE RELIEVE THE TAX BURDEN FOR RESIDENTS? HOW CAN WE RELIEVE THE TAX BURDEN FOR NON-HOMESTEAD PROPERTIES THAT PROVIDE LONG-TERM RESIDENTIAL HOUSING? WHERE DOES THE ADDITIONAL REVENUE COME FROM GOING FORWARD, AND HOW DO WE ALIGN VISITOR USAGE [00:05:02] WITH VISITOR CONTRIBUTION? THE DEEPER ISSUE IN ST. AUGUSTINE ISN'T SIMPLY PROPERTY TAX, IT'S THE INEQUITIES IN TAXATION AND THE DISPROPORTIONATE TAX BURDEN. HOW DO WE SOLVE IT? THANKS. THANK YOU VERY MUCH. NEXT SPEAKER IS ROGER WHITE. MADAM CLERK. ROGER WHITE, 3 MURAT STREET, ST. AUGUSTINE. YOU'RE WELCOME TO SPEAK. OKAY, THANK YOU. YES, WE'RE CONCERNED ABOUT THE RAISING OF TAXES. MY QUESTION WOULD BE, HOW MUCH HAS THE CITY BUDGET INCREASED IN THE LAST 5 YEARS? WE NEED TO LOOK AT BOTH SIDES, NOT JUST THE INCOME, BUT THE OUTGO. SO THAT WOULD BE MY QUESTION TO YOU FOLKS, WHICH I DON'T THINK YOU HAVE THAT OFF THE TOP OF YOUR HEAD. BUT, PLEASE KEEP IN MIND THAT THE COST OF THE CITY HAS GONE UP. WHY? THANK YOU. THANK YOU VERY MUCH. NEXT SPEAKER IS DAVANIA BELL. THANK YOU. MY NAME IS DAVANIA BELL, AND I'M AT 38 FULLER WOOD. I'M IN THE FULLER WOOD NEIGHBORHOOD. CITY RESIDENTS AS WELL AS THE COUNTY RESIDENTS AND THE STATE OF FLORIDA HAVE FACED SKYROCKETING INCREASES IN OUR PROPERTY TAXES AND OUR HOMEOWNERS INSURANCE. AND WHILE MANY OTHER PLACES IN FLORIDA HAVE, HAVE,THEY'VE HEARD THE RESIDENTS STRUGGLING WITH THIS AND THEY HAVE UNDERSTOOD THE HARDSHIP AND THEY HAVE ROLLED BACK THE MILLAGE RATES SO THAT THEY DIDN'T CONTINUE YEAR UPON YEAR UPON YEAR RAISING TAXES. BUT SADLY, ST. AUGUSTINE CITY COMMISSION DID NOT DO THIS. THE CITY, GOVERNMENT DID NOT DO THIS. AND SO NOW YOU'RE SEEING THE COST OF THE PLACES THAT DIDN'T DO IT AND DIDN'T UNDERSTAND THAT THE TAXES WERE SUCH A HUGE BURDEN TO THE RESIDENTS AND THEIR SKYROCKETING GROWTH IN THE LAST 5, 6 YEARS HAVE BECOME SUCH A PROBLEM. YOU'RE SEEING A PUSHBACK FROM THE ENTIRE STATE. AND FROM MY NUMBER CRUNCHING, IT LOOKS LIKE THE CITY'S AD VALOREM TAX REVENUE HAS INCREASED BY 55% SINCE 2019. THAT'S HUGE. AND I DIDN'T— I WASN'T ABLE TO CALCULATE THE BUDGET INCREASE. I'M ASSUMING IT'S A SIMILAR INCREASE, BUT I HOPE THAT YOU WILL TALK ABOUT THAT. I AGREE WITH THE MAN WHO SPOKE BEFORE ME. WE NEED TO LOOK AT THE EXPENDITURES AND HOW MUCH THEY HAVE SKYROCKETED IN THE LAST 5 AND 6 YEARS. IT'S MY UNDERSTANDING THAT ONLY 1/8 OF THE REVENUE COMES FROM HOMESTEADED PROPERTY TAXES. 1/8 OF THE CITY'S BUDGET IS PAID FOR BY HOMESTEADED PROPERTY TAXES, SO IT WON'T BE SUCH A HARDSHIP IF WE CAN LOOK AT THE EXPENDITURES AND BE JUDICIOUS AND FISCALLY, FISCALLY CONSERVATIVE AND RESPONSIBLE TO MAKE SOME CUTS. IT WOULDN'T BE SUCH A HARDSHIP IF THIS IS PASSED BY THE STATE. THANK YOU. THANK YOU. YES, I SEE ANOTHER SPEAKER CARD IS COMING, AND I JUST WANTED TO LET ANYONE KNOW THAT IF ANYBODY HAS COME IN, PLEASE FILL OUT A SPEAKER CARD. PUBLIC COMMENT WILL STAY OPEN UNTIL WE HEAR FROM EVERYONE. NEXT SPEAKER IS VICKI PEPPER. GOOD AFTERNOON, MADAM MAYOR, VICE MAYOR, COMMISSIONERS. MY NAME IS VICKI PEPPER. I LIVE ON HARPER VISTA CIRCLE IN ST. AUGUSTINE, AND I'M HERE TODAY REPRESENTING MYSELF AND AS A MEMBER OF THE INFORMAL INDEPENDENT CIVIC ACTION GROUP CARE, COMMUNITY ADVOCATES FOR RACIAL EQUITY. I DON'T THINK ANYBODY PARTICULARLY ENJOYS PAYING TAXES. I ESPECIALLY DON'T LIKE THE FACT I HAVE TO PAY PROPERTY TAXES NOT ONLY TO THE CITY AND SCHOOL DISTRICT, BUT ALSO TO ST. JOHNS COUNTY. BUT THAT SITUATION IS WHAT IT IS. I'M NOT HERE TODAY ABOUT CORRECTING THAT TAX INEQUITY TODAY, BECAUSE AS A RESPONSIBLE CITIZEN WHO BELIEVES GOVERNMENT HAS AN IMPORTANT ROLE TO PLAY IN PROVIDING FOR THE PUBLIC'S LIFE, LIBERTY, AND PURSUIT OF HAPPINESS, I RECOGNIZE THAT TO PROVIDE PUBLIC SERVICES, GOVERNMENTS NEED REVENUE SOURCES TO COVER THE COSTS. AND AS A COMPASSIONATE CITIZEN WHO BELIEVES IN BUILDING THE BELOVED COMMUNITY ENVISIONED BY DR. MARTIN LUTHER KING, I ALSO RECOGNIZE THAT SOME OF US ARE IN A BETTER POSITION TO CONTRIBUTE OUR TIME, TALENT AND TREASURE FOR THE GOOD OF OUR COMMUNITY THAN OTHERS. THE BELOVED COMMUNITY IS ONE IN WHICH NEIGHBORS LOOK OUT FOR ONE ANOTHER SO THAT ALL CAN THRIVE. MOST ISSUES AND PROBLEMS OUR COMMUNITY FACES ARE LOCAL, OR AT LEAST BEST [00:10:02] ADDRESSED LOCALLY. SO, AS A RELATIVELY NEW FLORIDA RESIDENT, THAT IS LESS THAN 15 YEARS, I'M DISMAYED TO SEE TALLAHASSEE PASSING MORE AND MORE LAWS UNDERMINING HOME RULE BY OUR LOCAL GOVERNMENTS. THE LARGEST REVENUE SOURCE ADMINISTERED AND CONTROLLED BY LOCAL GOVERNMENTS IN FLORIDA IS PROPERTY TAXES. WE'VE HEARD VARIOUS PROPOSALS, BUT A PROPOSAL TO PHASE OUT PROPERTY TAXES FOR ALL HOMESTEADED PROPERTIES SEEMS TO HAVE THE MOST TRACTION. GIVEN THAT NEARLY HALF THE PROPERTIES IN FLORIDA ARE HOMESTEADED, THIS IS LIKELY TO HAVE A VERY DRASTIC NEGATIVE IMPACT ON THE REVENUES AVAILABLE TO LOCAL GOVERNMENTS. ASSUMING THE STATE DOES NOT SEEK TO ELIMINATE SERVICES PROVIDED BY LOCAL GOVERNMENTS, THE SIGNIFICANT LOSS REVENUE WOULD NEED TO BE REPLACED, AND MOST LIKELY THE ALTERNATIVE SOURCE WOULD BE TO INCREASE FLORIDA SALES TAX SIGNIFICANTLY. WE SEE WE HAVE AT LEAST TWO PROBLEMS WITH THAT. FIRST, SALES TAXES ARE GENERALLY MUCH MORE REGRESSIVE THAN PROPERTY TAXES, WHICH MEANS THEY'RE MUCH HARDER ON LOWER-INCOME HOUSEHOLDS. SECOND, SALES TAXES ARE NOT ADMINISTERED BY LOCAL GOVERNMENTS BUT ARE COLLECTED AND DISTRIBUTED BY THE STATE. SO EVEN IF THE LOSS OF REVENUE COULD AND WOULD BE REPLACED, IT'D BE AT THE EXPENSE OF HOME RULE. THAT SAID, WE'RE CONCERNED ABOUT THE IMPACT OF HIGH AND RISING PROPERTY TAXES ON LOW-INCOME HOUSEHOLDS, AND ESPECIALLY ON SENIORS AND OTHERS ON FIXED INCOMES. AS YOU KNOW, ONE NEGATIVE IMPACT OF GENTRIFICATION IN LINCOLNVILLE AND INCREASINGLY IN WEST AUGUSTINE IS THAT LONGTIME RESIDENTS GET FORCED OUT OF THEIR HOMES BY AN INCREASING TAX BURDEN AS PROPERTY TAX— AS PROPERTY VALUES INCREASE. SO INSTEAD OF ELIMINATING PROPERTY TAXES AT ALL AGES AND INCOME LEVELS, WE THINK A MORE TARGETED APPROACH TO PROVIDE TAX RELIEF ONLY TO LOWER-INCOME HOUSEHOLDS, ESPECIALLY THOSE ON FIXED INCOMES, SHOULD BE CONSIDERED BY PROVIDING LOWER RATES OR EXEMPTIONS FOR LOWER-INCOME HOUSEHOLDS, OR PERHAPS SUBSIDY PROGRAMS WHETHER AT THE STATE OR LOCAL LEVEL. PLEASE CONSIDER EXPLORING THIS IDEA FOR THE BENEFIT OF OUR LOWER-INCOME RESIDENTS. THANK YOU. THANK YOU. LOOKS LIKE I HAVE ONE MORE ARD. THANK YOU. JEFFREY LEIBOVITZ. GOOD AFTERNOON, COMMISSIONERS. JEFFREY LEIBOVITZ, 157 MARINE STREET. THANKS FOR HAVING THIS HEARING. AS REAGAN USED TO SAY, GOVERNMENT DOESN'T HAVE A SPENDING PROBLEM OR DOESN'T HAVE A REVENUE PROBLEM. IT HAS A SPENDING PROBLEM. SO AS THE LADY SAID BEFORE ME, REVENUE HAS INCREASED FROM $32 BILLION TO $60 BILLION, 2019 TO '25. THAT'S A 53% INCREASE. AND I THINK SOME OF THE INFORMATION THAT'S BEING PUT OUT BY ADVOCACY GROUPS THAT ARE, YOU KNOW, NEVER SAW A TAX THEY COULDN'T GET AROUND AND BEHIND, ARE SAYING THAT THIS IS GOING TO AFFECT COMMERCIAL PROPERTIES AND RENTAL PROPERTIES. THAT'S NOT TRUE. WHAT WE'RE LOOKING FOR ARE PEOPLE LIKE ME, SENIORS WHO ARE HOMESTEADED, OKAY? AND WE NEED SOME RELIEF FROM TAXES. AS A LADY SAID BEFORE, SHE'S PAYING— SHE HAS THE PRIVILEGE, LIKE I DO, OF PAYING NOT ONLY COUNTY TAX, BUT CITY TAX. OKAY, NOT COMPLAINING, EXCEPT I LIVED HERE THROUGH THIS LAST NIGHTS OF LIGHTS, AND AS A TAXPAYER IN THE CITY, I REALLY DIDN'T GET MY MONEY'S WORTH. OKAY, I COULDN'T EVEN GET HOME A COUPLE OF NIGHTS BECAUSE THE TRAFFIC WAS SO BAD. AND THEN I WENT TO A MEETING RECENTLY OF ONE OF THE ADVOCATES FOR EXTENDING THE NIGHTS OF LIGHTS WHO WANTED TO HEAR FROM THE COMMUNITY, HE HEARD A LOT FROM THE COMMUNITY. AND I APPRECIATE YOUR WORDS, COMMISSIONER. HIS NUMBERS, WHERE'D THEY COME FROM? THAT EXTRA WEEK AND A HALF OF REVENUE. I THINK EVERYBODY KNOWS WHAT I'M TALKING ABOUT. SO REALLY WHAT I'M HERE TO SAY IS, AS A SENIOR ON A FIXED INCOME, OKAY, MY, YOU KNOW, REVENUE-GENERATING DAYS ARE WAY BEHIND ME, RIGHT? SO I HAVE TO LIVE WITHIN MY MEANS. THE CITY HAS TO LEARN TO LIVE WITHIN ITS MEANS, AND THOSE OF US THAT HAVE GOTTEN TO THAT POINT IN OUR LIVES WHERE WE'RE LOOKING FOR SOME RELIEF ON TAXES REALLY WOULD LIKE TO HAVE SOME. AND IT'S, I THINK, IT'S DISINGENUOUS BY SOME OF THESE ORGANIZATIONS TO PUT OUT MISLEADING INFORMATION AND THEN HAVE THAT PUBLISHED AS THE GOSPEL. IT'S NOT RIGHT. SO YOU KNOW IT AND I KNOW IT. THERE ARE SEVERAL PROPOSALS ON THE TABLE. THEY'RE WORKING ON IT AT THE LEGISLATURE. I HAVEN'T BEEN FOLLOWING AS CLOSELY AS I SHOULD, THEY'RE ALL COMPETING. BUT ONE OF THE BIG, I THINK, BENEFITS IS PEOPLE LIKE ME AND PROBABLY SEVERAL LIKE YOU WHO HAVE HOMESTEAD EXEMPTIONS ARE LOOKING FOR RELIEF. SO I WOULD HOPE THAT YOU ALL WOULD SUPPORT THAT. AND AGAIN, WE NEED TO LIVE WITHIN OUR MEANS INSTEAD OF RAISING OUR TAXES. EVERY YEAR MY TAXES GO UP. YOU KNOW WHAT THAT IS? THAT'S AN UNREALIZED GAIN. I'M BEING TAXED ON AN UNREALIZED GAIN. [00:15:01] THAT'S NOT FAIR. IT'S NOT FAIR TO ME. IT'S NOT FAIR TO ANYBODY, ACTUALLY. AND SO THINK ABOUT THAT WHEN YOU'RE RAISING TAXES OR THINKING ABOUT RAISING TAXES. YOU'RE TAXING PEOPLE ON UNREALIZED GAINS. THANK YOU. ALL RIGHT. I HAVE NO MORE SPEAKER CARDS, AND I DID SEE A COUPLE MORE PEOPLE COME IN. DOES ANYONE WISH TO SPEAK? BECAUSE PUBLIC COMMENT WILL BE CLOSED. WE WILL NOT BE TAKING MORE PUBLIC COMMENT AFTER THE PRESENTATION, ALTHOUGH WE ARE ALL AVAILABLE TO CONTACT AT ANY TIME. SO, NO ONE WISHING TO SPEAK, PUBLIC COMMENT IS CLOSED. ALL [3. PROPERTY TAX REFORM PRESENTATION AND DISCUSSION] RIGHT, WE ARE BACK TO THE PRESENTATION. MR. CITY MANAGER, HOW DO YOU WISH TO PROCEED? I'D LIKE TO INTRODUCE MEREDITH BRIDENSTINE. SHE'S THE ASSISTANT CITY MANAGER, AND SHE'S GOING TO WALK US THROUGH THIS. ALL RIGHT, WELCOME. GOOD AFTERNOON. GOOD AFTERNOON, MAYOR, VICE MAYOR, AND COMMISSIONERS. MEREDITH BREIDENSTEIN, ASSISTANT CITY MANAGER, AND I'M HERE TO TAKE YOU THROUGH SOME OF THE NUMBERS THAT YOU ALL HAVE SEEN IN THE 2026 BUDGET, HOW THOSE RELATE TO PROPERTY TAXES, WHAT SOME OF THE PROPOSALS RELATED TO PROPERTY TAXES ARE CURRENTLY, AND HOW WE ESTIMATE THOSE WILL AFFECT THE CITY. AND AGAIN, THESE ARE JUST ESTIMATES. THESE ARE VERY PRELIMINARY PROPOSALS. THE FIRST SEVERAL SLIDES IN THE PRESENTATION ARE EXCERPTS FROM THE 2026 BUDGET BOOK. I JUST WANT TO KIND OF FRAME FOR EVERYONE, WHEN WE'RE TALKING ABOUT THE CITY'S TOTAL BUDGET, WHICH IS FOR 2026 $99 MILLION, THAT INCLUDES THE GENERAL FUND, THE CITY CRA FUNDS, WHICH WE HAVE 3 OF, THE UTILITY FUND, SOLID WASTE, STORMWATER, THE MARINA, AND THE VISITOR INFORMATION CENTER. SO, THIS ENCOMPASSES ALL OF THOSE VARIOUS FUNDS. THESE ARE THE REVENUES FOR THE CITY IN TOTAL, AND AGAIN, THE EXPENDITURES IN TOTAL $99.3 MILLION FOR FISCAL YEAR 2026. NOW I'M GOING TO DROP DOWN JUST TO THE GENERAL FUND. THIS IS WHAT THE PROPERTY TAX CONVERSATION REALLY IS CENTERED AROUND. ALL OF THE OTHER FUNDS THAT I MENTIONED ARE FUNDED BY THEIR OWN REVENUES, TYPICALLY USER FEES, BUT THE GENERAL FUND IS PRIMARILY FUNDED BY TAXES, AND OF THOSE, MOSTLY PROPERTY TAXES OR AD VALOREM REVENUE. FOR 2026, THE GENERAL FUND BUDGET WAS $51 MILLION. NOW, THE GENERAL FUND, AS I SAID, IS MOSTLY FUNDED BY PROPERTY TAXES. WE WANTED TO GIVE SOME HIGHLIGHTS TO YOU ABOUT WHAT WE'RE— WHY WE'RE DISCUSSING THESE THINGS. THERE ARE SEVERAL BILLS THAT ARE BEING PRESENTED IN THE LEGISLATIVE SESSION. ONE OR MORE OF THOSE COULD BE ON THE BALLOT IN NOVEMBER FOR THE VOTERS TO DECIDE. ANY POTENTIAL REFORM WILL AFFECT NON-SCHOOL PROPERTIES, AND RIGHT NOW THEY'RE ONLY TALKING ABOUT HOMESTEADED PROPERTIES. POLICE AND FIRE EXPENDITURES ARE EXEMPT FROM ANY BUDGET REDUCTIONS. WHAT WE'RE READING SO FAR IS THAT ANY PUBLIC SAFETY EXPENSE CANNOT BE REDUCED FROM EITHER THE 2026 OR 2027 BUDGETED AMOUNTS, WHICHEVER IS HIGHER. AGAIN, LIKE I SAID, PROPERTY TAXES ARE RECEIVED IN THE CITY'S GENERAL FUND. YOU MAY HEAR US CALL THEM AD VALOREM REVENUE. THOSE ARE INTERCHANGEABLE TERMS, AD VALOREM AND PROPERTY TAX. A LARGE PORTION OF THE CITY'S GENERAL FUND EXPENDITURES ARE PAID FOR. THERE ARE SOME OTHER REVENUE SOURCES THAT WE DO NOT HAVE RESTRICTIONS ON, BUT AGAIN, THE MAJORITY OF THAT IS AD VALOREM REVENUE. NOW I'VE LISTED THE 4 PROPOSED ITEMS THAT ARE CURRENTLY AS WE UNDERSTAND IT BEING DISCUSSED IN THE LEGISLATURE. HJR 201 WOULD ELIMINATE ALL NON-SCHOOL PROPERTY TAXES ON HOMESTEADED PROPERTIES ALL AT ONCE IN YEAR 1, THE YEAR THAT THIS IS PASSED, IF IT DOES. THE CITY OF ST. AUGUSTINE'S REVENUE FROM HOMESTEADED PROPERTIES CONSISTS OF $7.8 MILLION IN 2026. AS WE GO THROUGH THIS PRESENTATION, THAT $7.8 MILLION IS THE REALLY THE HIGHEST WORST-CASE SCENARIO WHEN IT COMES TO THE CITY'S BUDGET, SO THAT IS WHAT WE'LL BE TALKING ABOUT AS WE GO FORWARD, FOCUSING ON THAT, THE BIGGEST HIT TO THE REVENUE. ANOTHER PROPOSAL, HJR 203, PHASES OUT HOMESTEADED PROPERTIES OVER 10 YEARS. STARTING OUT WITH $100,000 PER YEAR, BUT EVENTUALLY GETTING TO THAT SAME $7.82 MILLION FIGURE THAT YOU SEE THERE, JUST OVER TIME. [00:20:01] LET ME JUST INTERRUPT YOU HERE. SURE. THIS HJR 203 PASSED THE HOUSE FLOOR LAST WEEK WITH A MODIF— AN AMENDMENT, AND THAT AMENDMENT WAS THAT IT, UM, THERE WAS NO STEP-UP, IN THE 2.52 REVENUE REDUCTION, IT'S JUST THE 7.8, IN THE FIRST YEAR, JUST ONCE IT'S IMPLEMENTED. SO THAT WAS THE AMENDMENT TO THAT. SO THAT'S BEEN CHANGED. SO, SINCE THIS HAS EVEN COME OUT, YES, OUR INITIAL THOUGHT ESTIMATE WAS IF IT WAS PHASED OVER, OVER TIME, WE'D HAVE AN INITIAL HIT OF THAT 2.25. OKAY, WELL, IT'LL BE THE 7.8 UNDER THAT PARTICULAR BILL. THERE'S NO SENATE MATCHING BILL, MY UNDERSTANDING TO THAT. I HAD A CALL THIS MORNING ON THAT, AND, THERE'S NO SENATE BILL ON THAT YET, BUT THINGS ARE HAPPENING FAST AND FURIOUS. SO JUST TO UPDATE YOU, RIGHT? THANK YOU. AND WE KNOW THAT THIS MAY CHANGE. THERE COULD BE ADDITIONAL ITEMS. SO, THIS IS WHAT WE ARE, ARE READING ABOUT THE MOST RIGHT NOW. HJR 205 WOULD ADD IN— WOULD EXEMPT HOMESTEADED PROPERTIES FOR THOSE AGE 65 AND OLDER. IN THE CITY, WE ESTIMATE THAT'S ABOUT $780,000 A YEAR, AND THAT'S BASED ON THE INFORMATION WE GET FROM THE TAX COLLECTOR EACH YEAR, THOSE WHO ARE CURRENTLY RECEIVING AN EXEMPTION FOR BEING AGE 65 OR OLDER. FINALLY, HJR 209 WOULD INCREASE THE HOMESTEAD EXEMPTION BY UP TO $200,000 FOR ALL NON-SCHOOL LEVIES. WE BELIEVE THIS WOULD BE IF IT WERE UP TO $200,000, SORRY, AN ADDITIONAL $200,000— THAT THIS COULD BE AN ESTIMATED $4.5 MILLION REDUCTION TO PROPERTY TAX REVENUE FOR THE CITY. ANY QUESTIONS ON THESE PROPOSALS BEFORE I MOVE ON? I DON'T HAVE A QUESTION, BUT, WELL, MAYBE I DO. SO YOU'RE SAYING IF WE ELIMINATE $7.8 MILLION, WE CANNOT REDUCE IT BY THE POLICE AND FIRE, CORRECT? WHICH IS 58% OF THAT OF OUR GENERAL FUND, CORRECT? THAT LEAVES ABOUT $23 MILLION FOR US TO RUN THE REST OF THE CITY. SO THAT WHOLE $8 MILLION WOULD HAVE TO COME OUT OF THE $23 MILLION. WHICH WOULD LEAVE US $15 MILLION. THOSE ARE ROUND-OFF NUMBERS, BUT YES, OKAY. AND SO THAT IS A 60-41% DECREASE IN GENERAL FUNDING FOR STREETS AND EVERYTHING ELSE WE DO. OKAY, JUST WANT TO… YES. NOW WE DO HAVE, AND I'LL TALK ABOUT THIS AS WE GO A LITTLE FURTHER ON, WE DO HAVE SOME EXPENSES THAT WE TIE CERTAIN REVENUES TO. WE RECEIVE PARKING REVENUES FROM OUR PARKING METERS ON STREET. THOSE REVENUES WE REALLY MATCH TOWARDS STREET PAVING, TOWARDS OUR MOBILITY EXPENSES AND OUR PARKING EXPENSES, TRYING TO USE THE REVENUES THAT ARE GENERATED IN ORDER TO OFFSET THE EXPENSES THAT MATCH THOSE THINGS. WE ALSO RECEIVE SOME STATE FUNDS, LOCAL GAS TAX FUNDS THAT MUST BE USED FOR PAVING. SO, WE DO HAVE SOME COMBINATIONS OF REVENUES THAT MUST BE SPENT ON SPECIFIC THINGS. NOT ALL OF OUR GENERAL FUND EXPENSES ARE FUNDED BY AD VALOREM PROPERTY TAXES, BUT THE MAJORITY OF THEM ARE, AND WE'LL GET INTO THAT A LITTLE MORE AS WE GO. I'D BE INTERESTED IN KNOWING, WITH THE NUMBERS THAT YOU JUST TALKED ABOUT, THE $7.8 MILLION, HOW THAT TRANSLATES TO PER HOUSEHOLD, PER HOMESTEADED PROPERTY, WHAT THAT ACTUALLY WOULD WORK OUT TO, WHAT THE REDUCTION WOULD BE. OKAY, THAT MAY BE INFORMATION WE CAN GET FROM THE TAX COLLECTOR. I DON'T HAVE THAT BECAUSE IT WOULD ALL BE BASED ON WHAT SOMEONE'S ASSESSED VALUE, TAXABLE VALUE, IS AFTER THEIR HOMESTEAD EXEMPTION. I'M HOPEFUL THAT WE CAN GET THAT. I CAN REACH OUT TO THE TAX COLLECTOR AND PROPERTY APPRAISER AND ASK THEM AT LEAST FOR SOME AVERAGES. I THINK THAT—I DON'T HAVE THAT TODAY. INFORMATION FOR EVERYONE TO HAVE. OKAY. SO, THIS TALKS A LITTLE BIT MORE ABOUT WHAT WE WERE JUST MENTIONING. THE PROGRAMS AND DEPARTMENTS THAT ARE EXEMPT FROM ANY BUDGET REDUCTIONS ARE POLICE AND FIRE. OUR POLICE AND FIRE ARE MOSTLY FUNDED BY PROPERTY TAXES, THOUGH. THE PROGRAMS AND DEPARTMENTS THAT WILL HAVE TO BE REDUCED BY THE $7.8 MILLION IF HOMESTEADED PROPERTY TAXES ARE ELIMINATED INCLUDE— AND I'M GOING TO READ THESE OFF JUST SO ANYBODY CAN HEAR THEM— CITY COMMISSION, CITY MANAGER, CITY ATTORNEY'S OFFICE, COMMUNICATIONS DEPARTMENT, HUMAN RESOURCES AND RISK MANAGEMENT. RISK MANAGEMENT MEANS ALL OF OUR INSURANCE, NOT FOR EMPLOYEES, BUT FOR OUR BUILDINGS, FOR OUR VEHICLES, FOR OUR GENERAL LIABILITY. OUR PLANNING DEPARTMENT, FINANCE AND ACCOUNTING, [00:25:01] INFORMATION TECHNOLOGY, GENERAL SERVICES AND PURCHASING. THIS INCLUDES OUR GRANTS DEPARTMENT. HISTORIC PRESERVATION, WHICH INCLUDES ARCHAEOLOGY, FLEET MAINTENANCE, PUBLIC WORKS AND ENGINEERING— I HAVE HISTORIC PRESERVATION TWICE, SORRY- OUR GROUNDS DEPARTMENT, OUR EVENTS INCLUDES THE GALLIMORE CENTER, COMMUNITY SERVICES, FACILITIES AND PROPERTY SERVICES. THESE ARE ALL FUNDED FULLY OR PARTIALLY BY PROPERTY TAXES. THE THERE ARE NOT USER FEES OR OTHER REVENUE SOURCES THAT WE CAN USE TO MATCH TO THESE EXPENSES. WE DO HAVE SOME SMALL— WE HAVE ARCHAEOLOGY FEES, OF COURSE. WE HAVE SOME SMALL FEES THAT WE ARE ABLE TO, BUT THEY DO NOT FUND THESE DEPARTMENTS IN TOTAL. ANY QUESTIONS ON THIS LIST THAT I'VE PUT UP HERE? WHEN WE TALK ABOUT COMMUNITY SERVICES, FOR EXAMPLE, WHAT, WHAT WOULD THAT MEAN TO THE AVERAGE WHAT SERVICE WOULD THEY RECEIVE THAT WOULD BE MEANINGFUL TO THEM? COMMUNITY SERVICES INCLUDES OUR HOMELESS OUTREACH. IT'S ALSO THE DIVISION THAT OVERSEES OUR CRAS. OF COURSE, THE CRAS ARE A SEPARATE FUND. COMMUNITY SERVICES IS ALSO RESPONSIBLE FOR OUR MOBILITY TEAM AND PARKING DEPARTMENT OVERSEEING THAT. I WOULD SAY HOMELESS SERVICES, THE GALLIMORE CENTER, AND EVENTS— ALL OF THOSE ARE PART OF THE COMMUNITY SERVICES DIVISION. AND THE PLANNING DEPARTMENT, FOR EXAMPLE, WHAT, WHAT WOULD AN AVERAGE CITIZEN SERVICES RECEIVE IN THE PLANNING DEPARTMENT? PLANNING DEPARTMENT IS WHERE WE HAVE OUR PLANNING AND OUR BUILDING, ALSO OUR CODE ENFORCEMENT. HOWEVER, CODE ENFORCEMENT AND BUILDING ARE REALLY FUNDED BY BUILDING PERMITS AND VACATION RENTAL PERMITS, ALL THOSE THINGS. BUT WHEN YOU WALK INTO OUR PLANNING DEPARTMENT TO, TO REQUEST ANY KIND OF PERMIT. I KNOW, DAVID, YOU WORKED IN THERE FOR A WHILE. HELP ME OUT ON THE PLANNING DEPARTMENT. ANYBODY WHO WANTS TO OPEN A BUSINESS GOES THROUGH THE PLANNING DEPARTMENT. ANYBODY WHO WANTS TO GET A BUILDING PERMIT GOES TO THE PLANNING DEPARTMENT, SUBDIVIDE LAND. ALL OF THE— THEY, THEY BACK UP ALL OF OUR PLANNING AND ZONING BOARD WORK, HISTORIC ARCHITECTURAL REVIEW BOARD WORK. THAT'S WHAT THEY DO, ALL THE LAND DEVELOPMENT REGULATIONS. CODE ENFORCEMENT. YES, MA'AM. I KNOW, I KNOW SHE MENTIONED CODE ENFORCEMENT, BUT IF ANYTHING THAT CITIZENS ASK ME ABOUT, THEY MAY NOT CARE VERY MUCH ABOUT BUILDING PERMITS AND THINGS LIKE THAT, BUT THEY DEFINITELY CARE ABOUT CODE ENFORCEMENT. YES, MADAM MAYOR. YES. OKAY. IN A WAY, IT'S REALLY NOT A MISTAKE TO PUT HISTORIC PRESERVATION DOWN THERE TWICE.IT IS WHAT MAKES US. AND IT IS A FUNDAMENTAL OFFICE TO OUR, UM, TO OUR CITY, AS ARE ALL OF THESE, FOR THEIR, FOR THEIR, REALLY IMPORTANT WORK THAT THEY DO. IT, FOR EXAMPLE, PROTECTS YOUR DATA,PROTECTS MY DATA, AND MAKE SURE THAT WE DON'T FALL PREY, TO MANY OF THE SCAMS THAT ARE OUT THERE. AND THEN GROUNDS, I GET SO MANY MISTAKES, IF I MEAN, NOT MISTAKES, SORRY, I GET SO MANY COMPLAINTS, WHEN GROUNDS AREN'T KEPT UP. THAT IS SOMETHING EVERYBODY SEES. THE PARK, YOU KNOW, THE GRASS IS TOO LONG, COMPLAINTS. SO THAT WOULD BE REDUCED SIGNIFICANTLY AS WELL. I THINK EVERY ONE OF THESE OFFICES HAS THEIR REASON FOR BEING THAT'S LEGITIMATE. YES, AND MANY OF THESE YOU WILL SEE ALSO SERVE AS INTERNAL SERVICES FOR OUR OTHER FUNDS, AND INCLUDING OUR POLICE AND FIRE. MANY OTHER THINGS THAT YOU DON'T SEE HERE ARE OUR PAYROLL. WE HAVE CENTRALIZED, OF COURSE, FINANCE AND ACCOUNTING. PURCHASING, FLEET MAINTENANCE. EVERYTHING THAT YOU SEE HERE REALLY SUPPORTS ALL OF THE OTHER FUNDS AND ALL THE OTHER DIVISIONS IN THE CITY. THIS IS JUST A BREAKDOWN BY CATEGORY OF THOSE ITEMS THAT YOU SAW BEFORE THE SLIDE PREVIOUSLY. UH, PUBLIC SAFETY, OBVIOUSLY THE LARGEST ONE, WHICH WE CANNOT REDUCE. THEN YOU CAN SEE GENERAL GOVERNMENT SERVICES TRANSFERS TO CRAS IS ANOTHER ITEM TO THINK ABOUT. THOSE CRA DOLLARS ARE COMING FROM THE CITY'S PORTION OF PROPERTY TAXES AND THE COUNTY'S PORTION OF PROPERTY TAXES. ANY REDUCTION IS ALSO GOING TO MEAN A REDUCTION TO THE CRAS, AND WE HAVE NOT SPECIFIED THAT HERE. WE HAVEN'T CALCULATED EXACTLY WHAT THAT WOULD BE, BUT IT'S JUST ANOTHER ASPECT TO THINK ABOUT. CULTURE AND RECREATION— MOSTLY THAT'S MADE UP OF GROUNDS. OUR EVENTS, PHYSICAL ENVIRONMENT— THAT'S HISTORIC PRESERVATION, ARCHAEOLOGY. SO JUST KIND OF AS A PICTURE TO SEE THE CATEGORIES. THESE ARE SOME OF THE GENERAL FUND DEPARTMENTS THAT WE DO NOT CONSIDER FUNDED BY PROPERTY TAXES BECAUSE WE HAVE SOME OTHER WAY OF PAYING [00:30:01] FOR THOSE. BUILDING PERMITS— WHEN FOLKS COME IN TO GET A BUILDING PERMIT AND PAY THAT FEE, THOSE REVENUES HAVE TO STAY WITHIN THE BUILDING DEPARTMENT. IN ORDER TO OPERATE. WE TALKED ABOUT STREETS, MOBILITY, AND PARKING. WE USE PARKING REVENUE, ON-STREET PARKING REVENUE, AND PARKING TICKETS TO PAY FOR THESE ITEMS. CUSTOMER SERVICE, ALTHOUGH IT DOES ACCEPT PAYMENTS FOR THINGS OTHER THAN UTILITY BILLS AND STORMWATER BILLS AND SOLID WASTE BILLS, THAT'S THE MAJORITY OF WHAT THEY DO. SO THOSE INDIVIDUAL FUNDS ACTUALLY TRANSFER TO THE GENERAL FUND. TO MAKE UP FOR THE CUSTOMER SERVICE. SO, WE LEFT THEM OUT BECAUSE THEY'RE REALLY SERVING A PURPOSE THAT, YOU KNOW, PROVIDES HELP FOR THOSE ENTERPRISE FUNDS. ANY QUESTIONS ON THIS? THIS GRAPH TAKES ALL OF THOSE DEPARTMENTS THAT WE MENTIONED, ALL THOSE THAT ARE FULLY OR PARTIALLY FUNDED BY PROPERTY TAXES, AND IT BREAKS IT DOWN BY THE 2026 BUDGET. YOU CAN SEE HERE THAT POLICE AND FIRE ARE THE MAJORITY. THAT'S THE ONE THAT WE CAN'T TOUCH. THE REST OF THESE WE HAVE LISTED BY BUDGETED AMOUNT. SINCE I PUBLISHED THIS, I HAD A QUESTION ABOUT NUMBER OF EMPLOYEES IN EACH OF THESE, SO IF I COULD, I'D LIKE TO TAKE THIS SAME GRAPH AND SHOW YOU ALL THIS IS THE SAME GRAPH OVERLAID WITH THE NUMBER OF EMPLOYEES IN EACH OF THESE DEPARTMENTS. YOU CAN SEE IT MAKES SENSE. THEY REALLY TRACK— OUR EMPLOYEES ARE REALLY THE MAJORITY OF WHAT IT IS THAT WE'RE DOING HERE AT THE CITY, THE SERVICES THAT WE'RE PROVIDING. SO, IF WE TAKE THE TOTAL NUMBER OF EMPLOYEES THAT ARE FUNDED FULLY OR PARTIALLY BY PROPERTY TAXES, THAT'S ABOUT 118 EMPLOYEES. AND I WILL PROVIDE ALL THIS TO EACH OF YOU. IT'S PRETTY SMALL. I THEN TOOK THAT $7.8 MILLION DIFFERENCE THAT WE'RE TALKING ABOUT POTENTIALLY. I TOOK THE AVERAGE SALARY AND BENEFITS SO BENEFITS, OF COURSE, ARE HEALTH INSURANCE, FICA AND MEDICARE, OUR PENSION CONTRIBUTIONS. DIVIDED THAT 7.8 BY THE AVERAGE SALARY AND BENEFITS, AND THIS WOULD RESULT IN A NEED TO REDUCE 73 OF THE 118 POSITIONS THAT YOU SEE HERE, EVERYTHING FROM FACILITIES AND PROPERTY SERVICES STARTING HERE ALL THE WAY OVER BECAUSE WE COULD NOT TOUCH THE POLICE AND FIRE. ANY QUESTIONS ON THIS GRAPH? AND THANK YOU FOR THE SUGGESTION TO SHOW IT WITH EMPLOYEE NUMBER AS WELL AS JUST THE BUDGETED AMOUNT. YEAH, SO I HAVE A QUESTION. SO, YOU HAD SAID 117 EMPLOYEES WERE FUNDED BY PROPERTY TAXES? 118, EITHER, SORRY, 118, EITHER FULLY OR PARTIALLY. PLUS POLICE AND FIRE. THAT $118 DOES NOT INCLUDE POLICE AND FIRE. SO, THE 73 THAT HAVE TO BE REDUCED WOULD COME OUT OF THE 118? YES, IF THE FULL REDUCTION WAS PEOPLE. OBVIOUSLY WE KNOW THERE ARE SOME CONTRACTUAL SERVICES, BUT AGAIN, THE MAJORITY OF OUR, THE MAJORITY OF OUR BUDGET, OVER 50%, IS OUR, ARE OUR PEOPLE. AND I CAN BREAK THIS DOWN, AND THIS WAS YOU KNOW, WE CAN BREAK THIS DOWN ANY WAY YOU'D LIKE IN MORE DETAIL. THAT WOULD LEAVE US WITH 45 EMPLOYEES IN THESE LISTED DEPARTMENTS. HOW MANY— I CANNOT SEE THE NUMBER OF THE POLICE AND FIRE. WHAT IS THAT NUMBER? THAT IS 107. OKAY, THANK YOU. ANY QUESTIONS ON THIS GRAPH? ANY OTHER QUESTIONS, Y'ALL? COMMENT? THERE'S AN— I'M SORRY. GO YEAH, I DO, OKAY. ARE, ARE THESE GENERAL QUESTIONS OR SPECIFIC? SO FAR, SO RIGHT, SO FAR, AS WE HAVEN'T GOT TO THE END OF THE— I'M ALMOST FINISHED. I'M ON THE LAST SLIDE. I'LL WAIT TILL THE END. OKAY, I'LL JUST WAIT TILL THE END. THERE, THERE ARE MORE GENERAL ONES. PLEASE HOLD ON TO THOSE AND THEN WE CAN COULD I SAY SOMETHING NOW? CAN YOU GO BACK TO THE GRAPH WITH THE REDUCTIONS IN STAFFING? YES. MARIN, IT SEEMS LIKE WE MIGHT BE FROZEN. ARE WE STUCK? I DON'T KNOW THAT I NEED IT. I JUST WANT TO MAKE A STATEMENT THAT IF WE WERE [00:35:01] TO REDUCE OUR— THOSE OFFICES DOWN TO 45 PEOPLE, THE WAIT TIME FOR ANYTHING LIKE A BUILDING PERMIT OR ANYTHING ELSE TO GET DONE WOULD INCREASE MORE THAN A LITTLE BIT OF SIGNIFICANTLY. I HAD TOO MANY THINGS OPEN AT ONCE. SORRY, THIS IS BACK TO THAT. IF YOU— AND SO THAT MY COMMENT APPLIES TO THAT GRAPH IS I DO GET LOTS OF COMPLAINTS ABOUT HOW GOVERNMENT MOVES SO SLOWLY, AND IT WILL MOVE LOTS MORE SLOWLY. OKAY, THE LAST, LAST SLIDE. THE LAST SLIDE IS SOMETHING THAT I MENTIONED IN THE VERY BEGINNING, AND IT WAS JUST AGAIN, REMINDING EVERYONE THAT THERE ARE SEVERAL FUNDS AND PROGRAMS THAT THIS DOES NOT APPLY TO. SO, I JUST WANT TO CLARIFY THAT AGAIN. THIS DOES NOT HAVE ANYTHING TO DO WITH YOUR WATER, YOUR SEWER, WITH YOUR GARBAGE AND RECYCLING BEING PICKED UP, WITH THE VISITOR INFORMATION CENTER, WITH THE PARKING GARAGE, WITH THE MARINA. BUT I WILL HAVE A CAVEAT THAT ALL OF THOSE INTERNAL SERVICES THAT WE TALKED ABOUT ARE WHAT SUPPORT THESE. SO, IT IS STILL GOING TO BE A DIFFICULT CONVERSATION AS EVERY ONE OF THESE RELY ON, AGAIN, HUMAN RESOURCES, PURCHASING, FLEET, ALL THE OTHER, THE ASPECTS THAT COME INTO IT. SO, BUT SPECIFICALLY, THESE HAVE THEIR OWN REVENUE SOURCE, SO WE'RE NOT TALKING ABOUT THEM WHEN WE TALK ABOUT REDUCING PROPERTY TAXES. SO, I CAN GO BACK TO ANY SLIDE YOU ALL WOULD LIKE. THIS IS REALLY AN OVERVIEW ON THE CITY BUDGET. WHAT'S FUNDED BY PROPERTY TAXES JUST IN OUR CITY. IT'S NOT A COUNTYWIDE CONVERSATION, JUST LOOKING AT OUR 2026 BUDGET AND OUR 2026 AD VALOREM REVENUES AS THEY ARE TODAY. THANK YOU. ALL RIGHT, JOHN, YOU HAVE— COMMISSIONER, JUST, JUST GENERAL QUESTIONS. FIRST ONE IS, IF I HAD TO GAME THIS, I'D SAY IT'D PROBABLY BE SOME KIND OF SPLIT. YOU GET SOME REVENUE AND THEN YOU WOULD HAVE SOME CUTS. SO WHAT'S TO THIS CONVERSATION OF RAISING TAXES ON— IF THE HOMESTEAD ONES ARE CUT, CAN THE CITY, INDEPENDENTLY OF ANY REVIEW FROM THE STATE, JUST RAISE TAXES ON HOMESTEADED PROPERTIES SEPARATELY AND COMMERCIAL PROPERTIES? OR IS THAT SOMETHING WE CAN OR CAN'T DO? I'M SEEING ISABEL SHAKE HER HEAD. WE COULD RAISE THE MILLAGE RATE, WHICH WOULD ONLY AFFECT COMMERCIAL PROPERTIES AND NON-HOMESTEADED RESIDENTIAL PROPERTIES. SO YOU COULD RAISE THE MILLAGE RATE? YES. CORRECT. CAN YOU SEPARATE THE MILLAGE RATE BETWEEN A HOMESTEAD AND A NON-HOMESTEADED PROPERTY? NO, IT WOULD JUST RAISE THE MILLAGE RATE. IT WOULDN'T APPLY TO THE HOMESTEAD, CORRECT? THAT'S CORRECT. OKAY, UH, EVERYBODY SHOULD BE AWARE THAT'S A REAL POSSIBILITY IF THIS HAPPENS. THERE WAS SOMETHING ABOUT THE TOURISM REVENUE TO INCREASE THE LOST REVENUE. I MEAN, WE ARE— FIRST OF ALL, WE ARE A UNIQUE CITY THAN OTHER ONES. WE HAVE 7 MILLION VISITORS A YEAR, WHICH IS WHAT SOME OF THE MONEY WE SPEND ON. IS THAT EVEN A REMOTE POSSIBILITY IN ANY WAY, SHAPE, OR FORM? WELL, WE'VE ALWAYS TALKED ABOUT APPROACHING THE LEGISLATURE AND ASKING THEM TO ALLOW US TO HAVE A FOOD AND BEVERAGE TAX LIKE THERE IS IN MIAMI-DADE COUNTY. YEAH, THAT'S A FUNCTION OF STATE GOVERNMENT TO ALLOW US THAT TAXING AUTHORITY. WE CANNOT CREATE NEW WAGE JOBS. YOU CAN'T DO IT. SO YOU'D BE GOING TO THE SAME PEOPLE THAT ARE CUTTING TO ASK THEM TO. THAT'S RIGHT. OKAY. I THINK IT'S LIKELY THAT IF NON-HOMESTEADED PROPERTIES DO GET RAISED TO MAKE UP SOME OF THE DEFICIT, THE RENTAL PRICES— I MEAN, IF IT DOES, YOU WOULD EXPECT THE SUPPLY AND DEMAND THING THERE. 55% INCREASE IN OUR REVENUE SINCE 2019. IS THAT ACCURATE? I WONDER IF SOMEBODY SAID THAT. LET'S SEE WHAT I DO HAVE HERE. SINCE 2022, THE GENERAL FUND BUDGET HAS INCREASED 42% OVER THE LAST 5 YEARS, OKAY, FROM $36 MILLION TO $51 MILLION. THAT'S BASED ON THE PRICE OF PEOPLE'S HOUSES BEING APPRAISED. I'M SORRY, THAT'S BASED ON THE REAL ESTATE VALUES. YES, WE HAVE NOT INCREASED THE MILLAGE RATE. I KNOW, BUT THAT'S JUST NATURALLY OCCURRING BECAUSE THE MILLAGE RATE'S STAYING THE SAME. OKAY, BUT THAT'S ALSO NEW HOUSES THAT ARE BEING BUILT, CORRECT? JUST THE INCREASE OF— OKAY, SO I'M JUST TRYING TO GET THESE OUT SO THAT WE HAVE A CONVERSATION WHAT'S GOING ON. A LITTLE COMMENTARY. NUMBER ONE IS JUST TO REMIND EVERYBODY, IS EVERYBODY, ALL OUR COMMISSIONERS HOMESTEADED? YEAH, SO JUST TO LET EVERYBODY KNOW, PERSONALLY, WE WOULD BE GETTING [00:40:01] THE CUTS. I DON'T— WE HAVE TO THINK ABOUT BEYOND OURSELVES. WE HAVE TO THINK ABOUT SOMETHING BIGGER THAN OURSELVES. SO INDIVIDUALLY, IF I WAS OUT THERE, I MIGHT THINK THAT, BUT OBVIOUSLY OUR CHORE IS A LITTLE BIT BIGGER, AND MOST LIKELY BE A SPLIT, AND WE'RE A LITTLE BIT DIFFERENT. AND OTHER THAN THAT, I'M GOING TO WAIT TO SEE WHAT HAPPENS. I THANK YOU FOR YOUR PRESENTATION AND I WANT TO HEAR WHAT MY COMMISSIONERS SAY. I'D LIKE SOME VERIFICATION ABOUT SOME OF THE THINGS SOME OF THE SPEAKERS SAID. FIRST OF ALL, IT WAS REPEATED THAT MOST OF OUR TAXES DON'T COME FROM RESIDENTIAL AD VALOREM, ONLY A PORTION DOES. AND YOU DON'T LOSE YOUR HOMESTEAD WHEN YOU MOVE ANYMORE. SO, IF YOU DO MOVE FROM A HOMESTEAD TO ANOTHER ONE, YOU GET TO CARRY SOME VALUE WITH YOU. AND IF YOU'RE DOWNSIZING, LIKE SOME— MOST PEOPLE ARE DOING IF THEY'RE A WIDOW, THEY WOULD BE ABLE TO CAPTURE MORE THAN THEY NEED. THE INEQUITY OF THE TAX LAW WHERE, YOU KNOW, HOMESTEAD VALUE, THAT'S A STATE LAW. IT'S NOT SOMETHING THAT WE CAN CONTROL. WE CAN'T CHANGE THE WAY PROPERTY TAXES EXCEPT THE MILLAGE IS, IS DESIGNED. AND ONE OF THE THINGS THAT'S IMPORTANT ABOUT THAT IS THAT IT'S VERY TRANSPARENT. WHEN YOU BUY A HOUSE, YOU KNOW THE VALUE AND YOU KNOW WHAT YOUR TAXES ARE GOING TO BE. SO, IT'S NOT LIKE A SALES TAX OR ANY OTHER TAX. IT'S, YOU KNOW, EXACTLY WHAT YOUR TAX IS GOING TO BE. IF THE PROPERTY VALUES DO NOT GO UP MORE THAN 1%, YOU DON'T GET AN INCREASE IF YOU'RE HOMESTEADED. ONLY WHEN IT GOES UP. IF IT GOES 5%, YOU ONLY GET A 3% INCREASE. THAT'S ALL CORRECT. SO, IT'S NOT THAT IF YOUR HOUSE VALUE INCREASES BY 50% AND YOU'RE HOMESTEADED, YOUR TAXES INCREASE BY 50%. THEY ONLY INCREASE BY 3%. THAT'S THE PROTECTION OF BEING HOMESTEADED. IT WAS SORT OF IMPLIED THAT I BOUGHT A HOUSE AND IT'S GONE UP 50% AND NOW MY TAXES HAVE DOUBLED, AND THAT'S NOT TRUE IF YOU'RE HOMESTEADED. IT IS TRUE IF YOU'RE NOT HOMESTEADED, AND THAT'S WHERE THE REAL PROBLEM BECOMES WITH RENTALS AND WITH APARTMENTS, THAT THEIR TAXES DO GO UP BY VALUE AND THEY HAVE TO PASS THAT ON, UNFORTUNATELY. YEAH, AND I AGREE WITH JOHN THAT, YOU KNOW, WE WERE ALL HOMESTEADED, AND AS VICKI SAID, NOBODY LIKES TAXES, OR SOMEONE SAID. UNFORTUNATELY, IT IS THE WAY GOVERNMENT WORKS. I HAD A CONVERSATION WITH SOMEONE AND WE WERE TALKING ABOUT BUDGET AND INCOME AND GOVERNMENT FINANCE IS DIFFERENT THAN PRIVATE FINANCE. PRIVATE FINANCE— IF I HAVE A PIZZA SHOP AND I WANT TO SELL PIZZAS, I DETERMINE HOW MUCH IT'S GOING TO COST AND THEN I CHARGE THE CUSTOMER. IT DOESN'T WORK THAT WAY IN GOVERNMENT. AND OF COURSE, YES, WE COULD CUT THE BUDGET, AND WE HAD TO IN '08. EVERYBODY DID BECAUSE OF THE REDUCTION. BUT WE ALSO KNEW THAT THAT REDUCTION WAS TEMPORARY, AND SO WE REDUCED IT BY ENOUGH TO MAKE IT WORK UNTIL WE WERE BACK IN REVENUE. AND THAT CAN BE DONE. WE CAN CUT, BUT WE CAN'T CUT $8 MILLION OUT OF $51 WITHOUT REALLY HURTING SOME KIND OF SERVICES. SO I'M HOPING THAT WE CAN COME UP WITH AN ALTERNATIVE FUNDING SOURCE IF THIS HAPPENS, OR SOME VERY SELECTIVE CUTS THAT WON'T AFFECT THE SERVICES. THE ELEPHANT IN THE ROOM, WHICH I'M NOT AFRAID OF TALKING ABOUT AN ELEPHANT BEING THE BIGGEST GUY HERE. POLICE WILL GO AWAY OR FIRE WILL GO AWAY. THAT'S THE BEST SOLUTION, IS THAT WE CAN CONSOLIDATE WITH THE COUNTY. WE'RE PAYING COUNTY TAXES. WE'RE ALREADY PAYING FOR THE SHERIFF'S DEPARTMENT. WE'RE ALREADY PAYING FOR THE FIRE DEPARTMENT, THE COUNTY.. BUT IF WE HAVE TO CUT A MAJORITY OF OUR MONEY, THERE'S A GOOD CHANCE THAT WE WOULD SAY WE NEED TO CONSOLIDATE OUR SERVICES AND MAYBE POLICE OR FIRE IS THE WAY WE GO. COMMISSIONER GARRIS? OKAY. IT'S ALREADY BEEN SAID THAT WE CAN'T MESS WITH FIRE OR POLICE. SO, WE WOULD DEFINITELY NOT BE MAKING THE CUTS IN THAT PARTICULAR AREA. AND THAT IS SOMETHING THAT WE'LL HAVE TO LOOK INTO FURTHER AND TALK TO OUR ATTORNEY TO SEE IF THAT'S A POSSIBILITY. BUT THE THING IS, WE'VE HAD SOME PEOPLE, [00:45:03] LIKE ONE OF THE LADIES THAT'S HERE TODAY, UM, DAVONNA BELL, AND SOME OTHERS THAT HAVE COME BEFORE US AND ASKED US ABOUT THE MILLAGE EVERY TIME WE'VE HAD A BUDGET MEETING. AND I WOULD UNDERSTAND HOW THEY COULD FEEL THAT THESE TAXES ELIMINATED WOULD BENEFIT THEM BECAUSE ACCORDING TO THEM, THE CITY TAXES IS HIGHER THAN THE COUNTY TAXES. UM, NOBODY WANTS TO HEAR ABOUT JOB CUTS AND NOBODY WANTS TO HEAR ABOUT IT AFFECTING OUR CITY OPERATING THE WAY IT CURRENTLY IS. AND STAFF DO NOT WANT TO BE ELIMINATED, ESPECIALLY IF THEY'RE NOT VESTED, BECAUSE THEY WON'T HAVE THE BENEFIT OF WORKING TO BECOME A RETIRED A VESTED EMPLOYEE. BUT THE REALITY IS SOMETHING IS GOING TO COME OUT OF THIS STATE ISSUE BECAUSE THEY'RE PUSHING REALLY HARD FOR THIS. AND WHAT WE NEED TO CONSIDER, GETTING MORE STATE FUNDING. AND IF THAT DOESN'T WORK, THEN THERE'S ALWAYS, UM, IN OTHER STATES, LIKE WHEN I LIVED IN RHODE ISLAND, THERE WAS A STATE TAX THAT HELPED THE CITY FUNCTION, THE STATE FUNCTION. AND I DON'T KNOW IF THAT'S SOMETHING THAT WE SHOULD PURSUE OR FIND OUT ABOUT. SO INSTEAD OF PAYING TAXES THAT ARE UNSUSTAINABLE BY TAXING PEOPLE WHEN THEY GO TO THE GROCERY STORE AND TAXING PEOPLE FOR THINGS THAT THEY DON'T NORMALLY— AND THAT WAY ALSO, NOT ONLY WILL THE RESIDENTS GET TAXED, THE VISITORS WILL GET TAXED AS WELL WHEN THEY COME TO VISIT OUR CITY. WE'RE JUST GOING TO HAVE TO FIND SOME RESOURCES TO COMBAT WHATEVER DOES OCCUR FOR THE BEST INTEREST OF THE CITY SO THAT WE ARE NOT CRIPPLED AND THAT WE CAN FUNCTION PROPERLY. THANK YOU. I JUST HAD ONE MORE POINT TO ADD, AND THAT IS TO ADDRESS THE STATEMENTS BY A COUPLE OF FOLKS WHO SPOKE ON PUBLIC COMMENT ABOUT INEQUITIES. WE DO HAVE INEQUITIES. WE HAVE INEQUITIES IN THE CITY. WE HAVE INEQUITIES IN OUR SCHOOLS. WE HAVE INEQUITIES ALL THROUGHOUT THE COUNTRY. THERE'S NO QUESTION ABOUT THAT. ONE OF THE WAYS WE ADDRESS THOSE INEQUITIES IN THOSE COMMUNITIES THAT NEED THEM ADDRESSED THE MOST ARE THE COMMUNITY REDEVELOPMENT AGENCIES, AND PULLING 5% OUT OF THAT BUDGET WOULD CRIPPLE THEM. UH, AND SO I, I REALLY WANT TO BE CLEAR THAT THOSE— THAT'S AN EFFORT TO, TO REMEDY THOSE INEQUITIES THAT ARE FELT BY OUR MOST VULNERABLE POPULATIONS. AND I JUST, I'M FEARFUL THAT THAT WILL GO AWAY. ALL RIGHT, I HAVE A QUESTION. CAN YOU PERHAPS TALK A LITTLE BIT ABOUT HOW THIS MIGHT AFFECT OUR ABILITY TO BOND? AND PERHAPS EVEN, OR IF YOU CAN'T ANSWER THAT, PERHAPS WHAT YOU CAN SEE HOW THIS WOULD AFFECT OUR DEBT. BECAUSE WE DO HAVE BONDS AND WE DO HAVE— AND WE DO WISH TO— I KNOW THAT THERE'S— WE ARE GOING TO NEED A NEW BOND FOR THE NEW FIRE STATION ON THE ISLAND THAT WE PURCHASED PROPERTY TO DO, AND THE NEIGHBORHOODS ARE— THE NEIGHBORHOOD THERE AND THE ISLAND IS EXPECTING THAT. IN FACT, THAT'S— I THINK THAT'S SOMETHING THAT THE COUNTY IS EXPECTING TOO, BUT ANY THOUGHTS ON THAT? SO OUR CURRENT DEBT THAT WE HAVE IN THE GENERAL FUND IS SECURED BY NON AD VALOREM REVENUES. IF WE WENT FOR A BOND THAT WAS SECURED BY AD VALOREM, IT WOULD HAVE TO BE ON THE BALLOT. AT THIS POINT, ALL OF OUR GENERAL FUND BONDING IS WITH NON AD VALOREM, SO ALL THE OTHER REVENUE SOURCES THAT WE HAVE, OUR LENDERS HAVE SEEN THAT WE ARE STRONG ENOUGH THERE TO BE ABLE TO PAY BACK THE DEBT. HOWEVER, WHEN WE LOOK AT ALL OF OUR EXPENDITURES AND WHAT OUR TOTAL REVENUE SOURCES ARE, WE HAVE TO JUST THINK ABOUT, DO WE HAVE THE MONEY TO PAY THE BILL? IT'S ONE THING IF OUR LENDERS SAY, OH, YOUR CREDIT'S GREAT AND IT LOOKS LIKE YOU HAVE ENOUGH REVENUE TO COVER THE BOND PAYMENT. WE HAVE TO MAKE SURE WE HAVE ENOUGH REVENUE TO COVER THE BOND PAYMENT AND ALL OF THE OTHER COMMITMENTS THAT WE HAVE. FOR CITY OPERATIONS. SO YES AND NO. WE DON'T HAVE SPECIFIC TIES TO AD VALOREM REVENUE WITH OUR BONDING, BUT WE DO HAVE TO MAKE SURE WE CAN PAY THE BILL AND ALSO PAY ALL THE OTHER BILLS THAT WE HAVE COMMITTED. SO I HOPE THAT, THAT ANSWERS THE QUESTION, AND I'M SURE THAT ALL CITIES ARE GOING TO BE IN THAT SITUATION AS THEY'RE WANTING TO LOOK FOR NEW BONDS BECAUSE THEY'RE HAVING TO SHUFFLE WHAT THE REVENUE SOURCES ARE. WELL, I WONDER ALSO, ONE OF THE PROGRAMS THAT HAS BEEN SO IMPORTANT TO US HAS BEEN THE SEPTIC TO SEWER PROGRAM IN WEST AUGUSTINE, AND WE'VE BEEN CHIPPING AWAY AT THAT FOR SO LONG TO BRING SEWER SYSTEM TO WEST AUGUSTINE. AND I WONDER HOW THAT MIGHT AFFECT OUR ABILITY. [00:50:01] WE'VE BEEN PLOWING ABOUT, WHAT, HALF A MILLION DOLLARS OF OUR OWN OUT OF THE— YES, AND THE STATE HAS BEEN HELPING US WITH THAT ANNUALLY. UM, UTILITY REVENUES ARE GENERATED FOR THE MOST PART THROUGH THE FEES THAT WE RECEIVE FROM OUR CUSTOMERS, NOT THROUGH AD VALOREM. SO THAT THEORETICALLY WOULD NOT AFFECT THAT PROGRAM, BUT THERE ARE OTHER ASPECTS OF THE ORGANIZATION THAT ALSO SUPPORT THE UTILITIES DEPARTMENT. FOR EXAMPLE, FLEET. SO IF WE HAVE TO REDUCE THE PEOPLE WHO MAINTAIN THE TRUCKS, THEN THE, OUR UTILITIES COMPANY WHO DRIVES THOSE TRUCKS MAY HAVE TROUBLE GETTING AND RESPONDING TO THEIR WORK ENVIRONMENT. SO, I'M JUST SAYING THAT IT'S NOT BLACK AND WHITE. THERE WILL BE IMPACTS TO THE SYSTEM IF THERE ARE AD VALOREM REVENUE REDUCTIONS. ALL RIGHT. AND THEN MY OTHER QUESTION IS KNIGHTS OF LIGHTS. WE HAVE A TREMENDOUS AMOUNT OF… WE FOUND OURSELVES IN THE POSITION OF HAVING TO ASK FOR EXTRA MONEY THAT WE NEEDED TO SPEND TO ACTUALLY ACCOMMODATE THE PEOPLE THAT WE DON'T ADVERTISE. WE DON'T DO, YOU KNOW, WE DON'T DO THE ADVERTISING. IT'S THROUGH THE VISITORS INFORMATION AND THE VISITORS CONVENTION BUREAU THAT DOES THE ADVERTISING. SO WE DON'T HAVE ANY CONTROL OVER THAT. BUT WE DO HAVE THE OBLIGATION TO CARE FOR OUR GUESTS WHEN THEY ARE IN THE CITY. SO WE HAVE A TREMENDOUS AMOUNT OF EXPENSE, AND I THINK WE'VE ALL GONE OVER IT AD NAUSEAM. BUT WE FIND OURSELVES IN THE POSITION OF BEING VERY DEPENDENT ON THE BED TAX, BUT IT DID NOT MAKE US WHOLE. THE BED TAX THAT WE GOT LAST YEAR DID NOT MAKE US WHOLE. IN FACT, WE'RE A LITTLE BIT DEEPER IN THE HOLE THAN WE THOUGHT WE WOULD BE. AM I RIGHT? WE'RE JUST OVER, I THINK, $350,000 OF GENERAL FUND EXPENDITURES THAT WERE NOT— ARE NOT REIMBURSABLE BY TOURISM DEVELOPMENT DOLLARS. HOW MUCH DID WE SAY IT COST? I THINK YOU HAD A NUMBER, ABOUT $1.2 MILLION. $1.2. AND IF WE DON'T GET THE MONEY FROM THE BED TAX, THEN THAT $1.2 WOULD BE ON US. CUSTOMARILY THEY GIVE US $200,000 FOR RIGHT, NIGHTS OF LIGHTS WILL BE ASKING FOR MORE MONEY, I PRESUME, FOR THE UPCOMING SEASON. BUT YOU'RE RIGHT, IF WE DO NOT RECEIVE BED TAX REVENUES, THEN WE WOULD HAVE TO MAKE UP THE DIFFERENCE IN OTHER WAYS, AND THAT WOULD POTENTIALLY BE AD VALOREM REVENUES. AND THAT'S, SO THE IMPACTS WE DON'T FULLY UNDERSTAND TO NIGHTS OF LIGHTS. AND I MEAN, THAT IS SOMETHING— THERE'S NOTHING THAT IMPACTS OUR RESIDENTS MORE HEAVILY THAN TOURISM. CORRECT. AND AGAIN, THAT LIST OF DEPARTMENTS THAT YOU SAW WOULD BE IMPACTED, THAT INCLUDES EVENT MANAGEMENT, THAT INCLUDES ALL THE SERVICES THAT MAY— THAT GO TOWARDS MAINTAINING THOSE EVENTS, NOT JUST NIGHTS OF LIGHTS BUT FOURTH OF JULY, ALL OF OUR PARADES. EVERYTHING THAT OCCURS HAS AN IMPACT, AND IT'S JUST VERY DIFFICULT TO QUANTIFY WHAT THAT WOULD BE ONCE WE START REDUCING STAFF AND PROGRAMS. THERE WILL BE LIKE A SPIDER WEB CIRCULATING THROUGHOUT ALL THE DEPARTMENTS, YOU'LL SEE A REDUCTION IN SERVICES, I THINK. OKAY. ALL RIGHT, THEN. SO MY UNDERSTANDING IS THE, IF THIS BILL 203, I BELIEVE THIS BILL, IF IT DOES PASS, WHICH WE KNOW SOMETHING IS GOING TO PASS. WE'VE BEEN TOLD SOMETHING IS GOING TO PASS, WHETHER THIS YEAR OR NEXT YEAR, I DON'T KNOW. BUT WE— IN MY UNDERSTANDING, THAT THE EFFECTS OF THIS WOULD BE US PREPARING FOR THE YEAR 2028? CORRECT. IT WOULDN'T GO INTO EFFECT UNTIL 2027. SO THE FOLLOWING FISCAL YEAR, THE FOLLOWING FISCAL YEAR THAT WE WOULD HAVE TO ACTUALLY START LOOKING AT CUTS. YES, MA'AM. AND I WANT TO JUST EMPHASIZE THAT THE HOUSE BILL HAS BEEN INTRODUCED AND PASSED, BUT THERE'S NO COMPANION SENATE BILL AT THIS POINT. THAT'S CORRECT. THAT'S CORRECT. SO, BUT WE KNOW THAT THE GOVERNOR HAS EXPRESSED HIS DESIRE FOR THIS. SO, JUST HEARING WHAT WE HEARD IN TALLAHASSEE WEEK BEFORE LAST, I'M ASSUMING— I'M JUST TAKING THE WORST-CASE SCENARIO AND SAYING WE NEED TO BE PREPARED. SO THERE'S SO MANY QUESTIONS. I FEEL LIKE THERE'S MORE QUESTIONS MOVING FORWARD THAN THERE ARE ANSWERS RIGHT NOW. SO WE'LL JUST HOPE FOR THE BEST AND HOPE THAT OUR RESIDENTS UNDERSTAND THAT WE'LL DO THE BEST THAT WE CAN MOVING FORWARD. WE'LL USE THE MOST PRAGMATIC APPROACH IN ALL THINGS, [00:55:02] LIKE WE ALWAYS DO. AND UNFORTUNATELY, ONE OF THE THINGS I THINK THAT NEEDS TO BE UNDERSTOOD TOO IS THAT THE CITY, WHEN IT COMES TO GENERATING REVENUE, THERE ARE VERY FEW— WE DIDN'T TALK ABOUT THIS, BUT THERE ARE VERY, VERY FEW THINGS THAT WE CAN DO TO INCREASE REVENUE. ONE, WE CAN'T RAISE— WE CAN RAISE THE MILLAGE RATE. WE CAN'T DO ANYTHING ABOUT THE SALES TAX. THAT WOULD BE A COUNTY FUNCTION. NOW THE COUNTY IS GOING TO BE IN THE SAME POSITION AS WE ARE. IT'S NOT JUST US IN THE CITY, BUT THE COUNTY WILL ALSO HAVE THE SAME PROBLEMS MOVING FORWARD. SO THE WHOLE STATE, ALL OF US. WHAT ARE THE OTHER— I WOULD LIKE KNOWING GOING FORWARD, WHAT ARE THE WAYS THAT WE CAN RAISE REVENUE BESIDES THINGS LIKE PARKING FEES. AND MAYBE THERE ARE SOME THINGS LIKE— I KNOW IN THE ARCHAEOLOGY FEE, FOR EXAMPLE, WE DO CHARGE AN ARCHAEOLOGY FEE. I DON'T KNOW IF IT COVERS ALL OF THE COSTS OF ACTUALLY PROVIDING THAT SERVICE, WHICH IS MANDATORY, BY THE WAY. IT IS A REQUIREMENT OF THE CODE. YES, AND THE FEES THAT WE COLLECT ARE TIED TO THE SERVICES WE PROVIDE, SO WE CAN'T OVERCHARGE CHARGE SOMEONE FOR AN ARCHAEOLOGY PERMIT AND USE THE ADDITIONAL REVENUE FOR SOMETHING ELSE. BUT THEY DON'T— MY UNDERSTANDING IS WE DON'T CHARGE THE FULL AMOUNT OF THE COST OF RUNNING THE ARCHAEOLOGY DEPARTMENT. THE ARCHAEOLOGY DEPARTMENT IS NOT FUNDED BY THE FEES. IT IS SUBSIDIZED THROUGH GARAGE REVENUES RIGHT NOW. AND THAT GOES TOWARDS WHAT I WAS JUST TALKING ABOUT. YOU KNOW, THEY HAVE TRUCKS THAT HAVE TO BE MAINTAINED AND SERVICED. THEY HAVE OTHERS, THEY HAVE LEGAL FEES THAT THEY HAVE WHEN THE CITY ATTORNEY HAS TO MAKE A DETERMINATION WITHIN THEIR DIVISION. THEY— OUR ACCOUNTANTS LOOK AT THEIR BUDGETS, SO THE FINANCE DEPARTMENT IS INVOLVED WITH ARCHAEOLOGY LIKE THEY ARE WITH ALL DEPARTMENTS. THERE'S NO SINGLEIZATION OF ONE DEPARTMENT. WE CAN'T JUST PULL OUT ONE DEPARTMENT AND SAY THIS IS EXTRANEOUS, WE CAN GET RID OF THIS ONE. EVERYONE IS TIED TOGETHER, AND IF WE START MAKING CUTS TO ONE, IT WILL AFFECT ALL DEPARTMENTS. I JUST WANT TO MAKE EVERYONE AWARE OF THAT. AND IF I COULD, WE WILL HAVE— EACH YEAR WE HAVE A BUDGET MEETING FOCUSED ON REVENUES, AND WE SHOW WHAT EACH OF OUR REVENUES ARE AND WHAT LEGAL ABILITY WE HAVE TO INCREASE THOSE, IF THERE IS ANY. SO WE WILL TALK ABOUT THAT MORE IN DEPTH IN THE FUTURE. ONE OF THE THINGS THAT WE ARE CURRENTLY REVIEWING IS OUR FIRE ASSESSMENT FEE. IT'S BEEN A FEW YEARS SINCE WE'VE COME TO YOU ALL WITH THAT. WE DO HAVE SOME OPPORTUNITY THERE. ALSO, ANY USER FEE, AS LONG AS IT IS COVERING THE COST OF THE PROGRAM THAT WE'RE CHARGING FOR, WE LOOK EACH YEAR AT OUR SHORT-TERM RENTAL PROGRAM TO BE SURE THAT WHAT WE'RE CHARGING IS COVERING THE COST. WE ANALYZE THAT EACH YEAR. SO WE DO HAVE SOME OPPORTUNITIES. IT'S JUST THERE ARE SO MANY THINGS THAT THERE IS NOT A DIRECT TIE TO REVENUE, AND THAT IS WHERE PROPERTY TAXES, THAT'S WHAT THEY FUND. SO THE BEST WE CAN SAY IS MOVING FORWARD, WHEN THIS HAPPENS, IT WILL BE— OUR SOLUTIONS WILL BE A COMBINATION OF INCOME INCREASES AND PROBABLY THROUGH THE FEES AND CUTS. YES, I THINK THAT'S FAIR. AND ANYTHING THAT WE HEAR THAT THE STATE MAY BE DOING OR MAYBE SUGGESTING FOR INCREASED REVENUE— WHEN WE TALK ABOUT SALES TAX, JUST TO REMIND EVERYONE, WE RECEIVE SALES TAX NOT BASED ON SALES INSIDE CITY LIMITS. WE RECEIVE BASED ON SALES INSIDE COUNTY LIMITS AND OUR PERCENTAGE OF THE POPULATION. SO AS THE COUNTY GROWS, IT'S WONDERFUL, OUR PERCENTAGE OF THE POPULATION DECREASES. SO SALES TAX DOES NOT NECESSARILY FILL THE GAP THAT SOME MAY THINK IT DOES. SO THE PORTION OF SALES TAX THAT WE RECEIVE IS NOT TIED TO HOW MUCH WE CREATE? CORRECT. IT IS ONLY TIED TO OUR POPULATION, WHICH I JUST CHECKED THE NUMBERS, THE 2025 ESTIMATES FROM UNIVERSITY OF FLORIDA. HAVE US AT $16,400. SO WE CAN CONSIDER OURSELVES DONORS TO THE STATE TAX, TO THE SALES TAX. SO WE'RE— NO WAY IS THAT EQUITABLE. NO WAY IS THAT EQUITABLE IN ANY FORM OR FASHION. OKAY, [01:00:02] WELL, THANK YOU VERY MUCH. I THINK THIS HAS BEEN A REALLY GOOD EYE-OPENER, AND IT CERTAINLY HAS BEEN— I'VE LEARNED A LOT, AND IT'S GOING TO— THAT $7.8 MILLION IS GOING TO BE A TOUGHIE MOVING FORWARD. AND LIKE I SAID, WE'LL— EVERYTHING'S ON THE TABLE FOR CONSIDERATION. SO THANK YOU. THANK YOU. ANYONE ELSE HAVE ANYTHING TO ADD? WE'RE ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.