Clermont Budget Hearing Transcript 9/10/26

0:00 So that conversation on Tuesday began in the context of the proposed assigned fund balance resolution and I believe it
0:08 was Mayor Murry who asked why is there no reference to meet in the middle on that um draft of the resolution and and
0:15 the answer to that was that because we do have the uh meet in the aspects of the meet in the middle projects um
0:23 included in the proposed budget for 2627.
0:27 So now looking at this document, this is a summary of the project as a whole. Um
0:34 we have segregated this within the capital project and between three different projects for varying reasons.
0:40 One is because uh including the because of the funding sources and there's restrictions attached to them. That is the primary one. We're talking about
0:48 grant money. We're talking about impact fee money. We're talking about general fund reserves. Um, so because of the restrictions that come with all those revenue sources, we've split these projects up indep independently.
1:00 So now if you look at the project about the the project column, you see what I'm referring to. We have one in the capital
1:08 budget set up for the 8th Street docks, another one for the amphitheater, a third one for the responder memorial,
1:15 and those are all within the general fund. And then down below, and I just noticed a typo. Uh it says 139 wreck
1:23 impact fee. It's actually fund 140 wreck impact fee, but we have uh portions of the 8th Street docks and the middle plaza/monument
1:32 project within currently within the impact fee fund. Now going over into the numbers, the first column there is
1:39 dollars that was actually spent last fiscal year, fiscal year 2425.
1:44 Um and then two columns of the current fiscal year information followed by what is proposed in uh both 27 and then in
1:54 the second year of our 5-year capital plan for 2728.
1:58 If you go up to the top section under the general fund, we're showing uh a green line over an expenditure line. Um
2:05 that being because of grant funding, we have already received $400,000 from the Livewell Foundation, which is specific
2:12 to the Amphitheater project. And you can see we're showing that as revenue in fiscal year 2425.
2:19 That agreement includes another $600,000, but it's contingent upon um work being completed. In fact, they're
2:27 they're awaiting uh completion of some uh some uh work um for that first aspect of that. But that's what the three green
2:35 lines are. Um if you go back up to the top, uh FD has given us I don't want to call it an award letter, but they've
2:43 given us a notification that um of awards of $1.5 million. and director
2:52 Foreman may may uh correct me, but I believe it's just generally stated meet inthe-middle project because it'll be accounted for within the general fund.
3:01 We're showing that tied to the 8th Street docks, but my understanding at this point in time is we have some flexibility as to how we actually categorize that grant revenue.
3:12 Um, I'm also hedging my remarks with that because we we have not yet executed a contract for that agreement.
3:20 Okay, we're on the radar. The funding looks promising, but that process has not yet been completed at the FDP FD level.
3:30 Long story short, if you look at the second to last column to the right, proposed FY2627,
3:38 um we're showing revenues from FD as well as livewell and expenditures. So, a
3:45 net expenditure of $1.1 million is included in the general fund for those three aspects of the overall meet in the middle project. And then following down
3:54 below, you'll see we have 100, excuse me, $665,000 in the proposed budget for the um the
4:01 plaza and monument portion of the project.
4:06 So proposed right now for fiscal year 27 is the total down here, the 1.765 million.
4:17 Yes, sir.
4:18 From all the various funds and sources and and streams.
4:21 Correct. And what we have tentatively proposed for fiscal year 28 would be an additional 275,000.
4:30 Correct. But please keep in mind that is what we have that's what the information that we have and some of that information is likely outdated. Okay.
4:39 As uh Mr. Van Wagner said the other day, we're still waiting for uh some estimates and some work design work to be completed. So these numbers will certainly change.
4:48 Okay. based off of what we're looking for. Is that what we were referring to is what's out uh right now for the RF whatever fill in the last letter uh that we're going to get back in in November.
4:59 Okay. Or in front of us or whatever invest
5:13 on that document. Thank you very much.
5:15 Can I add one thing, please? Absolutely. Uh there's also we're showing $750,000 coming in from the EPA. So the total
5:25 would be $3.25 million that we believe will be coming in grantwise.
5:33 Yes. Okay. And we're encouraging Well, Mr.
5:37 Foreman's already doing it, but we're encouraging everybody to keep looking for more and more and more. So So 750,000 EPA grant to bring up that 2.27 27 to add it to the 2.275 line.
5:48 Okay.
5:51 I have a followup, Mr. Bane, if you're Absolutely.
5:54 Um, Mr. Bore, are the 910,000, the 1 million, and the 400,000 identified as recurring or non-recurring?
6:08 It is all non-reoccurring.
6:10 Okay. because of the nature of them, their capital projects and their grant revenues associated with capital projects.
6:18 Okay.
6:21 Do you have any other No. Okay. That was Thank you. Sorry. No, absolutely. Brains processing.
6:26 All good. Okay. I think um let me just make sure that is the only other question I had at this time.
6:36 Thank you. Thank you, Miss Myers.
6:39 Good evening. I do want to say thank you to Scott and his team and all of our department heads for all of the work that you all have put in for this.
6:47 Please let your team members know that we appreciate the work that you do for the city and trying to keep the cost at a bare minimum. I recognize that and I
6:56 just want to say thank you for that. Um Scott, I had a question for you what you just said about meet me in the middle.
7:02 Um, did I hear you right when you said there's like $600,000 that we'll get, but we have to have some work completed or something in order to get that. Did I Did I hear that correctly?
7:12 I was referring to the uh grant that was awarded to the city from Livewell.
7:16 Live Well, that is specific to the middle amphitheater portion of the project. Okay. We have physically received $400,000.
7:25 Okay. Um the agreement includes periodic updates to project progress. Um there's
7:32 no specific milestones listed in there that I recall, but they are anxious to see some return for the funds they've
7:41 already given us. Um and there is it's a $1 million in total, but we physically only received 400 at this point.
7:49 Okay. Do you know how much time we have left to come into a a compliance so to speak of what they want or to have some milestones? Do you know?
7:58 I don't think it was any [clears throat] recall.
8:02 No, I have information on that if it's on last last time I I asked that question.
8:07 I think we didn't have a time limit on it. There was no time limit that I was told the last time I asked that question
8:14 if we had to get the project done in a specific amount of time. I was told no.
8:19 So I agree with that, but I'll add to it that because Livewell Foundation is a foundation, they have to distribute a certain portion of their corpus each year.
8:28 So for their purposes, they try not to overpromise, overextend.
8:33 But if a project isn't completed within the year, they then need to find another project to give to give that money to
8:41 that money to that year and they can roll our project forward. They just need to know what our timeline is. So we need to get moving or we need to tell them we need another
8:50 year so they can give the those particular dollars to another organization and then they would roll ours forward to the next year. So where the the feeling
8:58 of rub might come from is if we don't tell them and we say we're going to do it and then we don't do it. That's where it could be okay not good for them.
9:07 So Rick, when are we um going to be working on that? Do you know so we can get this ball rolling so to speak?
9:14 December. Right. Right now we're out to bid.
9:18 The bids will close in November. We'll need a little bit of time to get it prepared for you and we'll have it in front of you in December to see where we're at.
9:28 I wish I could.
9:28 It is what it is. Okay. [laughter] Thank you. And that concludes my questions and comments.
9:34 Keep in mind, yes. Uh and Mr. Peterson, uh let's stay on li on the meet in the
9:41 middle project. I know back when we had made uh changes in it to reduce the cost of the dock. Remember we we're going to
9:50 do like a half a dock and a half a semicircle. Have those are are these numbers reflected in the new
9:57 uh dock that we're going to be putting in or is this the original specs that we
10:04 had with the breakwater and the semicircle and the and the uplifts for the uh for the jet skis etc etc.
10:27 Good evening. Um the answer is that the funds that you're seeing would not fully fund the project.
10:37 As you know, you you spoke about um Powell Architecture going forward with planning a $9 million facility, right?
10:46 So there's not $9 million on paper in front of you.
10:51 So the money that's in front of you does not fully fund what is currently being planned.
10:57 So then what does it fund then?
11:00 It's it's partial funding. Live well the live well money funds that that seating but it's partial funding towards the project.
11:09 Okay. I mean, is this an anticipated the dock being built next year in 27? Are we
11:17 anticipating that or is that are we just is this just a partial money towards it?
11:22 So then maybe it could go to 28 or do we have a dollar? I mean it I just you know you're saying this a partial which means
11:30 the RFP is so the RFP is out. So that pays out when the when it's presented back to council in December, then a
11:38 better picture of how much the project is going to cost is going to be in front of a better picture. In December, we would know what the real number is. So it's
11:45 going to be like $5 million. This is showing like 1, you know, 1.165 and then at that point, council would determine whether they're going to So
11:54 there's an expected $3.2 million in grant funding coming in, okay, for the project as a whole.
11:59 That would offset that. So that's what we're looking at. Okay. And then and then council would determine at that point if that's the only funding that
12:07 comes in what additional funding the city wants to provide. Okay. Thank you.
12:13 Y I mean that answers my question on that.
12:17 I think we keep on it always comes up even at meetings is you know the when the when the when you know people are
12:24 coming to us asking when and you know and and I understand the pressure is on you then and you're saying November we should have some kind of an answer
12:33 the bids will be completed in November and I'll have it in front of you in December.
12:37 All right. Thank you very much. Thank you. Thanks. And thank you for your good job on that.
12:44 Any thank you. Uh, Mr. Scott, I really didn't have any
12:52 question until you said something about that 1.5 million. Okay. And it's not um allocated anywhere in there. No, no
13:00 particular way we can use it. So, can any portion of that or do you know if any portion of that can be used towards the veteran memorial memorial portion of the uh project?
13:11 I'm sorry, mayor. $1.5 million.
13:14 Yeah. Well, well, the one point I think you said we got a grant from 1.5 million. Oh, thank you. Thank you. Yes, the FD.
13:21 Yeah, probable potential. I'm being careful with my adjectives on this one.
13:26 [laughter]
13:27 Um, again, sir, uh, on the report that was provided to us by FD, it is very
13:35 generically written as meet us in the middle. Okay.
13:39 Until we have a contract, which we do not have. uh that is when the scope of the use of funds will be outlined and determined. Okay.
13:47 Okay. But right now you're saying there's no no scope of how the uh funds can be allocated and there's possibility
13:54 we can use part of it in each all three phases of depending on how the contracts. Yes sir. That potential does exist.
14:01 Okay. Well, that's good to know.
14:04 [laughter]
14:05 And all thank and I just I want to also uh add uh a big thank you to the staff and to your staff and you as well um for
14:13 the work you all been doing with this budget. I know every every minute is changing. It's been a revolving moving target for you every day. So, and to be
14:22 able to be able to present this and bring it to us like this is great. So, thank you for all your hard work. So, appreciate appreciate that. Thank you, sir.
14:29 All righty. uh statements.
14:32 Miss M council member Strange.
14:38 Thank you. As I sit here today, I look at a budget that and the general fund is 64 $63 million.
14:50 Half a million would get us to 4.21.
14:53 Uh I think you all know where I stand on that issue. So I'll be voting for 4.21 mil. And I believe our staff can find
15:00 half a million dollars. Uh before I'm asked what I want to cut or what I want to add. I'll remind everyone that's the city manager's job, not my job. I'm
15:08 happy to take a scalpel to it if that's what we want. I would suggest the easiest thing is to assume that the grant writers that we've hired this year are going to do their jobs and that
15:16 we'll find a half a million dollars. So, the easiest thing I think for staff would be to add that to the revenue side under the grants. Um but I'm open to
15:24 whatever the city manager suggests at the final budget hearing. Um, I won't vote above a 4.21. I think we can do it and I'm committed to it.
15:38 Yes, sir.
15:39 Thank you, mayor. Um, regarding the I'll speak budget first and then millillage budget. I did have
15:48 some concerns about deficits, whether they're structural, our definition of structural, uh, some other definition.
15:56 But when you look at revenues and expenses and when expenses outpace
16:03 revenues, that concerns me. And when that happens for multiple years in a row, that concerns me even more,
16:11 particularly when we are potentially facing some challenges moving forward.
16:17 And so, um, I want to applaud the city manager and the finance director
16:26 and team and staff for getting to where we are today in this document. that if
16:33 we make the motion to approve with the following recommendations as this chart indicates in this memo um of a actual uh
16:42 recurring um um number of of 51,000 um to the positive.
16:50 So I think that that's admirable work that was done and creative work and I appreciate that. Regarding the 4.29
16:57 millillage um it is lower than the roll back rate. We have uh made a commitment to our residents that we would have a
17:06 millage rate. Um we've identified what that is. Um, and I'm comfortable sticking with that given that we know
17:13 what we've what we are looking at at that number and not anticipating or
17:19 projecting or having uh really no say or or public meeting on what additional um
17:28 uh cuts we would make to get to a different number. I think that we can have targets going into because most
17:35 likely we're going to have this conversation starting in January next year. um that we can start uh and maybe each of us give a number and we have
17:43 budgets presented um and start running scenarios based off those numbers based off those things and we can really look
17:51 at specifically what it is that we want to do with a number and not just have a number. Um you know budgets are not
17:59 always every priority or every initiative that gets funded which is why you vote for it. Sometimes you get the projects, sometimes you don't get the
18:08 projects. Sometimes you get the positions, sometimes you don't get the positions, but we have to look at what's in the best interest overall for the
18:15 city. And I think our department heads have communicated and worked with our city manager on what we can do within these parameters. I think our finance
18:24 team has prepared something for us that we can approve and work within the next year. And I'm happy to vote for both resolutions as presented. Thank you.
18:34 Thank you, Council Member Myers.
18:37 Um, again, thank you all for your hard work. I know that you all work tireously getting these numbers down. I thank you,
18:44 Scott, for you and your team of playing with the numbers constantly, moving things around. Um, and thank you for
18:52 getting things decreased more. Um, where I'm at is, um, I'm quite fine with 4.29.
19:00 Um what concerns me is the possible, you know, um vote in November with the um
19:07 tax on the the property tax and I just don't want to make it too low and then they vote for it and now you all have to
19:15 find more money yet again. So, um where I'm at is 4.29. Thank you. Thank you, Council Member Peterson.
19:24 I want to thank you also because uh you know, we gave you a difficult task to get to 4.29. 29 and you were able to do that and thank you for that and thank
19:33 you for the staff and everything you guys are doing. Uh I understand, you know, we made a pledge when we ran to
19:40 give the taxpayers back the money that we took from them in previous years because of a higher millage rate. And
19:47 with that said, I mean, if we were to go to 4.21, it would cost us 500,000. And it's it's amazing how when we had to
19:56 shave like 1.2 two was we were able to get that off by looking at the budget a little tighter and you know as as these
20:03 numbers get larger and larger and larger you know it's you know I think it's not as big a number anymore compared to the
20:09 overall scheme and I would I would support you in that number if if our city manager can uh can grab that and
20:18 fix that along with our finance director. Thank you.
20:25 Okay. Thank you. Okay. Well, uh I think we've moved that number two or three times through this project pro uh budget
20:34 process and I think the last meeting we really had we set it at 4.29 and that's what we advertised out there 4.29. At
20:41 this point, I don't feel like we need to put no the staff through any more problems and exercises trying to find
20:49 another reduction. Uh um according and the thing is yes, we we've asked them to do this two or three times and they've
20:56 come up with the cut. But now we asking them to go back and cut another half a million. What else they they going to have left to cut? I think
21:04 we got a very lean budget and what you've cut so far. Uh I think where we we asked you to do it the last task of getting it at 4.29 and you was able to
21:13 do that and actually found find us a little extra money. I think that's fantastic. Uh I commend you all again.
21:19 Um and because we have a little extra, I don't think we need to go back and and start going through another exercise of trying to cut cut more. Uh let's go
21:28 ahead and stick with what we have and move this process forward is where I'm at. I'm good with the 4.29. Okay. And at
21:36 that with that being said, I entertain a motion.
21:43 I'll move. Are we talking Are we going to order here? If so, I'll move resolution number 2026-033r.
21:52 Yes. 4.29. Yeah. As as presented.
21:56 Yes. Okay. We have a motion on resolution number 2026-033R which is the uh final mill rate of 4.29.
22:08 Any further discussion? Hear none. All in favor let it be known by saying I. I. All oppose. Nay.
22:15 And the chair vote I as well. Motion passes 3 to2.
22:22 I annotate a motion on resolution number 2026-034.
22:29 I'd like to move resolution number two 2026-034.
22:35 Let me write find my verbiage here. Um as following the recommen recommendations
22:44 in the September 10th memo to city council. Does that work for our motion to include that? Oh, I know our city attorney's not here, but
22:52 I just Does that encapsulate you guys understand what I mean by that? Okay. Oh, a second.
22:58 I have a motion in a second to approve resolution number 2026-03 with added verbiage.
23:09 Yeah. With the with the recommendations in this memo. Okay. Memo. Any further discussion?
23:16 Hearing none. All in favor, let it be known by saying I. I. All oppose. Nay.
23:20 And the chair will eye as well. Motion carries three to two.
23:26 All right. Is there anything else that need to come before the council?
23:30 Nope. Anything else need to come before the council? Nothing else. I call to be during this meeting.