[City Council Special (Budget) Meeting on September 3, 2025.] [00:00:03] WELCOME TO THE CITY COUNCIL BUDGET MEETING. ON THIS WEDNESDAY, SEPTEMBER 3RD, 2025. MADAM CLERK, PLEASE CALL THE ROLL. COUNCIL MEMBER. BARTON HERE. COUNCIL MEMBER. CHRISTMAN HERE. COUNCIL MEMBER. KRAMER HERE. COUNCIL MEMBER. PENNIMAN HERE. COUNCIL MEMBER. PETRANOFF HERE. VICE MAYOR. HUTCHINSON HERE. MAYOR HEINEMAN HERE. THANK YOU. COUNCILMAN BARTON, PLEASE RISE FOR THE PLEDGE OF ALLEGIANCE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. SETTING THE AGENDA. MR. YOUNG. NO CHANGES. MAYOR. OKAY, COUNCIL. CHANGES TO THE AGENDA. MOVE TO APPROVE THE AGENDA. MOTION BY COUNCIL MEMBER CHRISMAN AND A SECOND BY VICE MAYOR. ALL IN FAVOR, SAY AYE. AYE. OPPOSED? THANK YOU. COUNCIL. JUST FOR THE RECORD, THERE ARE PUBLIC SPEAKING REGISTRATION FORMS IN THE BACK OF THE ROOM. IF YOU'D LIKE TO SPEAK ON THE BUDGET PRESENTATION THAT CAN BE GIVEN TO THE CLERK. WITH THAT BEING SAID, WE'RE GOING TO ANNOUNCEMENTS AND PRESENTATIONS. MR. YOUNG. THANK YOU. JUST TWO THINGS. FIRST, I WANT TO THANK MEMBERS OF COUNCIL, EVERYBODY IN THE STAFF FOR COMING TO THIS. THIS IS THE FIRST BUDGET FOR ME AS AS SITTING CITY MANAGER. SO I'M I'M HONORED IN THE WAY THAT MY REQUESTS WERE CARRIED OUT AND THE OBJECTIVES THAT WE SOUGHT HERE. I'M PROUD OF THE BUDGET WE'RE PUTTING FORTH AS THE OBJECTIVES THAT COUNCIL HAS REQUESTED. WHILE REMAINING FISCALLY RESPONSIBLE. AND THEN LASTLY, I JUST WANT TO SAY I WANT TO WELCOME STEFAN MUSIL AS THE NEW FINANCE DIRECTOR. HE WAS APPOINTED, AS, YOU KNOW TWO WEEKS AGO. AND THIS IS THE FIRST MEETING THAT WE'VE BEEN PRESENT AT SINCE THEN. SO WITHOUT FURTHER ADO, I'LL TURN IT OVER TO STEFAN. I WANT TO THANK HIM AND EVERY ONE OF THE DIRECTORS, AND AGAIN, ALL OF YOU. AND YOU CAN TELL BY THEM CHOMPING AT THE BIT. THEY'RE GETTING READY TO GET STARTED ON OCTOBER 1ST FOR YOU. SO WITH THAT, I'LL TURN IT OVER TO STEFAN. AND THANK YOU, EVERYONE. THANK YOU. AND CONGRATULATIONS ON BEHALF OF COUNCIL FOR YOUR APPOINTMENT. THANK YOU. IT'S A IT'S A TREMENDOUS HONOR. AND I'M I'M HUMBLED BY THE WHOLE THING. SO THANK YOU VERY MUCH FOR EVERYTHING. SO TO START OFF I GUESS WE WOULD BE STARTING WITH SIX A CORRECT FOR THE PUBLIC HEARING. SO WITH THIS PUBLIC HEARING I WANTED TO START WITH POINTING OUT THE ITEMS THAT WERE INCLUDED IN YOUR PACKET, BOTH FOR FOR THIS AS WELL AS SUBSEQUENT ITEMS. OKAY. I'M SORRY. NO. IT'S FINE. SKIPPED OVER. PUBLIC COMMENT. OH, SORRY. NO. ABSOLUTELY. PRESENTATION. AND THANK YOU FOR THAT. YEAH. MADAM CLERK, DO WE HAVE ANY PUBLIC COMMENT? NO PUBLIC COMMENT. THANK YOU. SORRY FOR THE INTERRUPTION, SIR. OKAY, PERFECT. ALL RIGHT, WELL, I'LL GET STARTED THEN WITH ITEM SIX. SO INCLUDING YOUR PACKETS, YOU HAVE TWO AGENDA MEMORANDA. ONE OF THEM IS SPECIFIC TO THE ANNUAL BUDGET FOR THE GENERAL FUND. AND ALSO SPEAKS TO YOU KNOW, THE MILLAGE RATE AND THE LIKE AND THERE'S A SECOND ONE SPECIFIC TO OUR SPECIAL TAXING DISTRICTS. SO THOSE BIG EAST, NAPLES BAY, AS WELL AS THE MOORINGS BAY TAXING DISTRICTS, THEY HAVE THEIR OWN MILLAGE RATES AND THEIR OWN BUDGETS. SO IN ADDITION, YOU HAVE ALL THE CERTIFIED FORMS FOR OUR TRIM COMPLIANCE PURPOSES. SO THOSE ARE ALL THE FOUR SERIES FORMS THAT YOU HAVE IN THERE. AND THOSE HAVE NOT CHANGED SINCE THE LAST TIME THAT THOSE WERE BROUGHT FORWARD DURING BUDGET WORKSHOP. WE HAVE THE FISCAL YEAR 2025, 26 PROPOSED BUDGET. AND IN ADDITION, THERE IS AN OVERVIEW OF SOME CHANGES TO THE PROPOSED BUDGET. AND THOSE WILL ALSO BE DESCRIBED IN THE PRESENTATION I'M ABOUT TO GIVE. AND LASTLY, THERE WAS A COPY OF THIS PRESENTATION. I WILL SAY THAT THE PRESENTATION DOES INCLUDE A FEW EXTRA SLIDES. AND THAT WAS IN RESPONSE TO THE MEETING BY THE CRA ON THURSDAY, WHICH OCCURRED AFTER THE TIME THAT THIS PACKET WAS DISTRIBUTED. AND FOLLOWING THAT, THERE WILL BE A SERIES OF ITEMS SPANNING FROM SEVEN A THROUGH SEVEN F EACH OF THOSE EACH OF THOSE ITEMS ARE RESOLUTIONS AND THEY'RE TAKEN IN A VERY SPECIFIC ORDER. SO ANY TIME THERE IS A MILLAGE RATE AND A CORRESPONDING BUDGET. THE MILLAGE RATE RESOLUTION IS APPROVED PRIOR TO THAT BUDGET, AND SO THE SEQUENCE WILL BE. GENERAL FUND. MILLAGE RATE. GENERAL FUND. BUDGET. [00:05:04] EAST NAPLES BAY MILLAGE RATE, EAST NAPLES BAY BUDGET AND LASTLY MOORINGS BAY MILLAGE AND BUDGET. AND WITH THAT, I'LL GO AHEAD AND KICK THIS OFF ON THE PRESENTATION. ALL RIGHT. AND SO THE PURPOSE OF TODAY IS TO ADOPT THE TENTATIVE BUDGETS AND MILLAGE RATES PER FLORIDA STATUTES. AND WANTED TO POINT OUT WITH THIS SLIDE THAT THERE WERE TRIMMED NOTICES PUT OUT AS THEY ARE EACH YEAR. AND SO THE TRIM NOTICES DO A COUPLE OF THINGS. THEY GIVE PROPERTY OWNERS AN IDEA OF WHAT THEIR TAXES WOULD BE IF THE, YOU KNOW, MAXIMUM MILLAGE RATE THAT WAS PROPOSED IS PUT INTO EFFECT. BUT IT ALSO DOES ADVERTISE THE DATE AND TIME OF THIS HEARING. AND AS YOU CAN SEE WITHIN THAT RED BOX ON THIS TRIM, NOTICE IT WAS PROPERLY NOTICED SEPTEMBER 3RD, 2025 5:05 P.M.. AND HERE WE ARE. AND THIS KIND OF GIVES A LITTLE RECAP OF THE, YOU KNOW, SEQUENCE OF EVENTS THAT LED US TO WHERE WE ARE TODAY. AND SO, YOU KNOW, THIS BUDGET PROCESS, IT STARTS, YOU KNOW, REALLY PRIOR TO MAY, AS WE START, YOU KNOW, BRAINSTORMING AND WORKING THROUGH WHAT THAT CIP IS GOING TO BE. WANT TO ALSO THANK ALL THE DEPARTMENTS WHO, YOU KNOW, THERE'S MANY PERSONNEL AT THE CITY OF NAPLES THAT PLAY AN ESSENTIAL ROLE IN PUTTING ALL THIS INFORMATION TOGETHER, AS WELL AS ALL OF YOU MULTIPLE MEETINGS YOU KNOW, BOTH ON AND OFF THE DAIS. SO WE HAVE THE MAY 19TH CIP WORKSHOP JUNE 18TH, MAXIMUM MILLAGE DISCUSSION, AUGUST 18TH BUDGET WORKSHOP. SEPTEMBER 3RD. HERE WE ARE. BUDGET HEARING. AND THEN SEPTEMBER 22ND BUDGET HEARING. TO LOOK FORWARD TO AT 5:05 P.M. AND THEN OF COURSE, OCTOBER 1ST WILL BE THE START OF THE FISCAL YEAR. I WANT TO GO THROUGH THESE BUDGET HEARING REQUIREMENTS. AND I ALSO DO WANT TO LIKE, JUST SAY THAT I'M GOING TO BE READING PRETTY EXPLICITLY WHAT'S ON THE SLIDES. AND A LOT OF THAT IS JUST INTENDED TO MAINTAIN COMPLIANCE WITH ALL THE STATUTES ON HOW WE ARE GOING TO BE ADOPTING THESE MILLAGE RATES AND THE BUDGETS FOR THOSE TAXING AUTHORITIES. SO THERE WILL BE A PERCENTAGE INCREASE IN MILLAGE OVER THE ROLLBACK RATE AND PURPOSE FOR THE INCREASE DISCLOSED FOR EACH OF THESE. WE WILL ALSO NEED TO HEAR PUBLIC COMMENTS REGARDING PROPOSED INCREASE. GENERAL PUBLIC SHALL BE ALLOWED TO SPEAK AND ASK QUESTIONS PRIOR TO ADOPTION OF THE RESOLUTION, AND THE GOVERNING BODY SHALL ADOPT ITS MILLAGE RATE LEVY PRIOR TO ADOPTING ITS BUDGET. TAX LEVIES AND BUDGETS FOR DEPENDENT SPECIAL TAXING DISTRICTS WILL ALSO BE APPROVED AT THE FIRST READING, FOLLOWING DISCUSSION AND ADOPTION OF LEVIES AND BUDGET FOR THE CITY. DURING THIS TIME, THE CITY IS TO HEAR COMMENTS REGARDING THE PROPOSED INCREASE AND EXPLAIN THE REASON FOR THE PROPOSED INCREASE OVER THE ROLLBACK RATE. WE WILL HAVE ADDITIONAL SLIDES TO DO JUST THAT. AND ADDITIONALLY, WE ARE REQUIRED EVERY FOR EACH TAXING AUTHORITY, LOVING THE NAME OF THE TAXING AUTHORITY, THE ROLLBACK RATE, THE PERCENTAGE INCREASE AND THE MILLAGE RATE TO BE LEVIED SHALL BE PUBLICLY ANNOUNCED PRIOR TO THE ADOPTION OF THE MILLAGE LEVY RESOLUTION. AND AFTER THIS PRESENTATION, STATUTORY REQUIREMENTS ARE REPEATED WITH THE RESOLUTIONS. IT'S A LOT OF THE INFORMATION IS EMBEDDED WITHIN THE TEXT OF EACH RESOLUTION, THE ROLLBACK RATE AND THE LIKE. SO TO START, HERE'S SOME HIGHLIGHTS. GENERAL FUND RECOMMENDED MILLAGE RATE REMAINS 1.23 MILLS. OUR EAST NAPLES BAY TAXING DISTRICT MILLAGE RATE PROPOSED AT HALF A MIL, 0.50, AND THE MOORINGS BAY TAXING DISTRICT MILLAGE RATE IS PROPOSED AT 0.0125. ALL RIGHT. DEFINITION. WHAT IS THE ROLLBACK RATE? SO THE ROLLBACK RATE BECAUSE WE HAVE MULTIPLE TAXING DISTRICTS IS ACTUALLY AN AGGREGATE RATE. SO IT DOES CONTEMPLATE THE REVENUES TO BE YIELDED FROM NOT JUST THE GENERAL FUND MILLAGE RATE, BUT ALSO THE EAST NAPLES BAY AND MOORINGS BAY, AND IT IS THE AD VALOREM TAX RATE THAT WILL BRING TO THE CITY THE SAME AMOUNT OF TAX MONEY AS LAST YEAR, EXCLUDING THE VALUE OF NEW CONSTRUCTION. AND SO FOR THESE PURPOSES, THE AGGREGATE ROLLBACK RATE FOR THIS PROPOSED BUDGET WOULD BE 1.1832 MILLS. THE AGGREGATE MILLAGE RATE OF 1.2473 THREE IS 5.42% HIGHER THAN THE ROLLED BACK RATE. AND AS I MENTIONED EARLIER, THIS IS THE COMBINED RATE AGGREGATE OF TWO SPECIAL DISTRICTS AND THE GENERAL FUND FOR THE CITY OF NAPLES. [00:10:02] CITY OF NAPLES MILLAGE RATE ADVERTISED VIA THE TRIM NOTICE IS AT 1.23. THE PROPOSED MILLAGE RATE. I'M SO SORRY. I SHOULD HAVE EDITED THIS FROM LAST YEAR. MILLAGE RATE IS 1.23. OKAY. SO FOR THIS SLIDE SAMPLE TAX BILL AMOUNT TO CITY OF NAPLES PROPOSED VERSUS ROLLBACK RATE. THIS IS JUST AN EXAMPLE FOR A HOMEOWNER WHO HAPPENS TO HAVE TAXABLE VALUE OF $1 MILLION ON A PROPERTY THAT THEY OWN. THIS SLIDE JUST KIND OF DEMONSTRATES WHAT THE DIFFERENCE WOULD BE ON THEIR TAX BILL TO THE CITY OF NAPLES. BETWEEN THAT ROLLBACK RATE FOR GENERAL FUND BEING 1.1658 AND 1.23. AND SO AT 1.23 THAT THAT TAX BILL WOULD BE $1,230. AND THEN COMPARED TO A ROLLBACK RATE OF $1,165.80. AND THIS IS A SLIDE THAT PROVIDES AN OVERVIEW OF WHAT THE BREAKDOWN IS BETWEEN THE CITY OF NAPLES AND OTHER TAXING AUTHORITIES THAT PROPERTY TAXPAYERS ARE SUBJECTED TO WITHIN THE CITY OF NAPLES. SO YOU HAVE YOU KNOW, AN EXAMPLE HERE. IN THIS EXAMPLE, WE'RE LOOKING AT A $1.5 MILLION TAXABLE VALUE. AND THEN OF COURSE, WITH A HOMESTEAD EXEMPTION, BRING IT DOWN TO 1.45 MILLION. AND THAT WOULD BE BELOW WOULD BE THE BREAKDOWN OF TAXES TO BE PAID. YOU KNOW, FOR THAT HOMEOWNER YOU KNOW, UNDER THE VARIOUS MILLAGE RATES. KEY TAKEAWAY HERE FOR THIS SLIDE IS THAT FOR, FOR EVERY DOLLAR OF TAXABLE VALUE, ONLY $0.14 INCENSE ACTUALLY GOES TO THE CITY OF NAPLES. SO THERE IS A, YOU KNOW, LARGER, MUCH LARGER PORTION THAT GOES TO THE COLLIER COUNTY SCHOOL BOARD AS WELL AS COLLIER COUNTY ITSELF. AND THEN JUST REMAINING $0.03 FOR OTHER SMALLER DISTRICTS AS WELL. ALL RIGHT. CONTINUING WITH DISCUSSION, EAST NAPLES BAY MILLAGE RATES PROPOSED AT HALF A MIL 0.50. EAST NAPLES BAY BUDGET IS $406,200. THE MILLAGE RATE IS PROPOSED AT 0.0125 MILLS. THE MORETON BAY BUDGET IS $116,285. AND NOW, COMPARING THE MILLAGE RATE VERSUS THE ROLLBACK RATE AND GENERAL FUND YET AGAIN, THE MILLAGE RATE IS PROPOSED AT 1.23, THE ROLLBACK RATE 1.1658 FOR THIS YEAR, AND THE NET BUDGET EFFECT IS A POSITIVE MILLION $364,656 TO THE GENERAL FUND. THE PURPOSE FOR THE INCREASE. THERE ARE A COUPLE, BUT PREDOMINANTLY IT WAS SALARIES WHICH WERE NEGOTIATED INCREASES AND CORRESPONDING BENEFITS FOR FISCAL YEAR 2026. IN ADDITION, THERE WAS AN INCREASED PERSONNEL COUNT RELATED TO ENHANCED LEVEL OF SERVICE FOR POLICE. THAT CARRIED OVER FROM A TWO YEAR IMPLEMENTATION. THIS BEING THE SECOND YEAR OF IMPLEMENTATION OF THIS PUBLIC SAFETY ENHANCEMENTS. OTHER PURPOSES FOR THE INCREASE PROVIDING RESOURCES NECESSARY TO KEEP PACE WITH COSTS FOR GOODS AND SERVICES IN MOST EXPENSE CATEGORIES REQUIRED TO OPERATE CITY GOVERNMENT AT CURRENT SERVICE LEVELS, AND MAINTAINING SUFFICIENT FUND BALANCE RESERVES TO ACCOMMODATE FUTURE ECONOMIC CONDITIONS, WHETHER CONTINUED INFLATION OR ECONOMIC CONTRACTION. AND IN ADDITION, A CONTINUED EMPHASIS ON STREET REPAVING AND OTHER INFRASTRUCTURE AND BUDGETING HAD RESULTED IN A LARGER SHARE OF TELECOMMUNICATIONS SERVICES TAX IN THE STREET FUND FOR THIS PURPOSE IN RECENT YEARS. THIS IS A CONTINUATION OF THOSE PAST PRACTICES IN FURTHERANCE OF GREATER EMPHASIS ON THE STREETS FUND EFFORTS. AND WHAT CHANGES HAVE BEEN MADE FROM THE PROPOSED BUDGET? OKAY. SO THIS SLIDE REPRESENTS THE CHANGES THAT EXISTED WITHIN THE PACKET THAT WAS DISTRIBUTED. OKAY. SO THIS IS THIS SLIDE IS UNCHANGED FROM THE PACKET THAT YOU WOULD HAVE RECEIVED. SO THAT INCLUDED A $200,000 PROPOSED MOVEMENT FROM FISCAL YEAR, THE CURRENT FISCAL YEAR 20 2425 INTO PROPOSED 2526. DUE TO DELAYS IN COMMENCING THE FIRE OR IN GETTING THE CONTRACTS COMPLETED FOR FIRE STATION TWO DESIGN. SO THAT $200,000 AMOUNT IS REFLECTED IN THIS THIS PACKET AS WELL AS FOR FUND FOR 70 OR STORMWATER FUND. THERE WAS A DISCUSSION YOU WILL RECALL AT THE BUDGET WORKSHOP AS WELL ABOUT MOVING FORWARD $3 MILLION FOR PROJECT 26 V, ONE FOR THE MULTI BASIN IMPROVEMENTS FROM FISCAL YEAR 2627 TO 2526. [00:15:03] AND SO THOSE REVISIONS ARE SHOWN ON THIS SLIDE. AND OVERALL THAT WAS A CHANGE OF $3.2 MILLION. WHAT CHANGES HAVE BEEN MADE FROM THE PROPOSED BUDGET? THIS SLIDE IN RED WAS NOT INCLUDED IN YOUR PACKET. AND THIS IS ONLY TO FORESHADOW WHAT WILL BE INCLUDED IN THE SECOND HEARING PACKET. AND THOSE ARE THE CONSEQUENCE OF THE CRA WORKSHOP BUDGET OR THE CRA BUDGET MEETING. SO IN HERE WE HAVE $925,000 OF CHANGES. THOSE CHANGES ARE DESCRIBED IN MORE DETAIL BELOW. AND THAT WILL MEAN THAT OUR CURRENT CHANGE OF 3.2 MILLION WOULD GROW TO 4 MILLION. 125 FOR THE FINAL PACKET. OKAY. AND THIS SLIDE HERE JUST KIND OF PROVIDES A VISUAL OF WHAT THE CHANGES TO THE CIP WOULD BE SPECIFIC TO THOSE CHANGES THAT RESULTED FROM THE CRA MEETING. OKAY. ALL RIGHT. NOW, WHAT CHANGES HAVE BEEN MADE FROM THE PROPOSED BUDGET. SO AGAIN, THIS SLIDE GOES BACK TO YOU KNOW, WHAT WAS INCLUDED IN YOUR PACKET. THERE WERE NO CHANGES TO REVENUES. AND THIS GETS BACK TO THE $3.2 MILLION. SO THE EXPENSE PROPOSED IN THE PROPOSED BUDGET OF 36,868,382 WAS INCREASED BY 3.2 MILLION FROM THOSE MOVEMENTS FORWARD AND BACKWARD OF COST TO 240,000,068 382 AS THE FINAL EXPENSE. AND THAT'S A CHANGE OF $3.2 MILLION. OKAY. AND THIS SLIDE AGAIN IS A FORESHADOWING. SO WHEN WE GET TO THE SECOND HEARING ON THE 22ND YOU'LL SEE THIS 4 MILLION 125 TOTAL AS THE TOTAL CHANGE FROM PROPOSED BUDGET. OKAY. ON THIS SLIDE, I WANTED TO DESCRIBE FOR THE PUBLIC'S BENEFIT WHAT THE HISTORY HAS BEEN ON TAXABLE VALUES. I KNOW WE'VE GONE OVER THIS SLIDE BEFORE. AND IN HERE YOU CAN SEE THAT THERE'S BEEN AN AVERAGE CHANGE OVER THE PREVIOUS 20 YEAR PERIOD OF 5.87%. 7%. AND THAT'S BEEN, YOU KNOW, YOU COULD SAY SOMEWHAT VOLATILE, YOU KNOW, CHANGE OVER THOSE 20 YEARS. YOU KNOW, THERE'S YOU KNOW, BEEN SOME YEARS WHERE THERE WAS ACTUALLY A DECLINE IN TAXABLE VALUES DURING THE GREAT RECESSION. AND SO YOU KNOW, FOLLOWING THOSE FOUR YEARS OF CONSECUTIVE TAXABLE VALUE DECREASE, THERE WERE, OF COURSE MANY MORE YEARS OF INCREASES SOME MODERATE AND THEN IN MORE RECENT YEARS YOU KNOW, AT HEIGHTENED LEVELS. BUT YOU CAN SEE BETWEEN 2024 AND 2025 A TAPERING OFF FROM 10.86% TO 7.82% FOR THE 2025 TAX YEAR. AND AS FAR AS MILLAGE RATE WITHIN THE CITY FOR THE GENERAL FUND YOU KNOW, FOR THERE WAS A PERIOD OF TIME, OF COURSE, WHERE IT STAYED BETWEEN A 1.15 TO 1.18 RANGE. AND OF COURSE, MORE RECENTLY, WITH LAST YEAR'S BUDGET BEGINNING WITH FISCAL YEAR 20 2425. WELL, THE CURRENT YEAR IT GREW TO 1.23 FOR THOSE PUBLIC SAFETY ENHANCEMENTS THAT WE DISCUSSED EARLIER. MR.. STEFAN, CAN I MAKE A CORRECTION? SURE. ON THIS PARTICULAR SLIDE, I DON'T I DON'T THINK THE STATE AWARD OF THE 4.2 MADE IT IN, BECAUSE IF YOU LOOK AT YOUR THE GENERAL FUND EXPECTED BALANCE. IT'S 19.3. SO I DON'T THINK IT'S RECOGNIZING THE 4.2. COULD YOU I JUST WANT TO CLARIFY. SO FOR THE RECORD SO THAT IT'S ON PAGE 21 OF YOUR BUDGET BOOK. OKAY. SORRY. NO THAT'S FINE. AND IT SOMEHOW APPEARS THERE IS THE 14.8. AND I THINK IT'S THE DIFFERENCE OF THE NEW GRANT NOT BEING BROUGHT THROUGH INTO THE. OH, JUST ON THAT THIS SLIDE INTO THIS SLIDE. YES, SIR. I'M SORRY TO HAVE TO. I JUST DIDN'T. NO, NO, NO. I THANK YOU FOR THAT BECAUSE IT'LL BE CLOSER TO 19.4 MILLION IN THE FUND BALANCE BY THE END OF 20 POINT 2026. AND I JUST WANTED TO REFLECT THAT. YES. NO, THANK YOU FOR THAT. YEAH. ALL RIGHT. YES. I WILL WORK ON THAT SLIDE FOR NEXT TIME AS WELL TO MAKE SURE THAT THAT'S CONSISTENT. [00:20:04] OKAY. AND SO FOR THIS SLIDE I WANTED TO GO OVER THE BUDGETED EXPENDITURES. SO WE HAVE $240.1 MILLION COMPARED TO THE FISCAL YEAR 24, 25 OF $208.8 MILLION, WHICH IS AN INCREASE OF $31.3 MILLION. AND THIS SLIDE KIND OF DETAILS BELOW HOW THAT BREAKS DOWN. THERE'S ROUGHLY A 130, YOU KNOW, 32 TO 35%, SO ROUGHLY A THIRD BETWEEN THESE DIFFERENT CATEGORIES OF PERSONNEL SERVICES, OPERATING EXPENSE AND CAPITAL EXPENSES. OKAY. AND PERSONNEL SERVICES. SO THERE WAS AN INCREASE OF 9.6 MILLION, OR 12.6% OVER THE 2425 ADOPTED BUDGET AND AN $8.6 MILLION INCREASE, OR 11.12%, OVER THE ESTIMATED ACTUAL. AND THIS CAPTURES THE EFFECTS OF INCREASES RELATED TO CONTRACT NEGOTIATIONS THAT WERE INTENDED TO DEAL WITH BOTH INFLATIONARY PRESSURE, WORKFORCE COMPRESSION AND OF COURSE, THE STAFFING SHORTAGES. AND THIS BUDGET DOES MAINTAIN PENSION RATES THAT ARE GREATER THAN THE ACTUARIAL REQUIREMENT TO ADDRESS THE UNFUNDED PENSION LIABILITY. ALL RIGHT. NOW, PENSION FUNDING. SO HERE WE ARE, INCLUDING IN THIS PROPOSED BUDGET CONTRIBUTION RATES OF 40% FOR POLICE, 40% FOR FIRE AND 15% FOR GENERAL. AND THAT IS A REDUCTION IN POLICE AND FIRE FROM THE PREVIOUS YEAR, BUT IS STILL A FULL A A GREATER THAN ACTUARIAL REQUIRED CONTRIBUTION AND AMOUNTS TO ROUGHLY $2.4 MILLION ADDITIONAL CONTRIBUTION ACROSS ALL FUNDS. AND THIS SLIDE DOES PROVIDE AN OVERVIEW OF THE PERSONNEL CHANGES. SO THIS BUDGET INCLUDES ONLY TWO ADDITIONAL POSITIONS. NET. AND THAT WAS CONSISTENT WITH THE IMPLEMENTATION OF THE PUBLIC SAFETY ENHANCEMENTS PROGRAM THAT WAS PROPOSED PREVIOUSLY. NOW THIS SLIDE KIND OF PROVIDES A CALCULATION OF THE OF THE AD VALOREM PROCEEDS, BECAUSE THERE'S SOME INTERPLAY BETWEEN THE GENERAL FUND AND THE COMMUNITY REDEVELOPMENT AGENCY. AND HOW THAT CALCULATION COMES TOGETHER, THIS THIS SLIDE CAN CAN PROVIDE A LITTLE CONTEXT TO THAT. SO IF YOU HAVE A MILLAGE RATE OF 1.23 YOU KNOW, THAT WOULD INCLUDE THAT THAT WOULD RESULT IN A TOTAL MILLAGE LEVY OF $50.937 MILLION. WHEN YOU YOU KNOW, REDUCE THE THAT BY THE AMOUNT IN THE CRA WHERE OF COURSE, THOSE, YOU KNOW, THOSE THAT THOSE FUNDS REMAIN WITHIN THE CRA FUND IT BRINGS THE GENERAL FUND PORTION DOWN TO 47.669 MILLION AND AT 95% COLLECTION, WHICH WE ALWAYS USE A 95% RATE AT THE CITY, BUT BRINGS YOU DOWN TO 45,000,304 152. AND AND THE REASON FOR THE 95%, OF COURSE, IS THERE'S A STATUTORY PREPAYMENT DISCOUNT OFFERED AND OF UP TO 4%. AND THERE ARE OTHER REASONS WHY WITH DELINQUENCIES, YOU MAY END UP GETTING LESS THAN THAT 100%, 95% IS CONSERVATIVE. PAST EXPERIENCE HAS BEEN THAT WE GENERALLY DO COLLECT A LITTLE MORE. BUT OF COURSE, YOU KNOW, RECENTLY WITH HURRICANE IAN, WE SAW THAT THERE WERE SOME IMPACTS FROM THAT THAT, YOU KNOW, WE DID SUBSEQUENTLY, YOU KNOW, WORK WITH THE STATE TO RECOVER SOME OF THOSE FUNDS. BUT AGAIN, GOOD REASON TO MAINTAIN CONSERVATIVE APPROACH ON THAT COLLECTION ASSUMPTION. AND, YOU KNOW, IN COMPARISON, NEXT TO THAT YOU CAN SEE WHAT THE ROLLBACK RATE VALUES WOULD BE. THAT WOULD BE, YOU KNOW, COME DOWN TO 42,000,939 496 FOR GENERAL FUND, HYPOTHETICALLY, WHICH WOULD BE A DIFFERENCE OF 2,000,003 64 656 OKAY. AND THIS SLIDE IS INTENDED TO AGAIN GIVE A LITTLE MORE CONTEXT OF THE REASONS FOR YOU KNOW, THE MILLAGE RATE BEING WHAT IT'S PROPOSED AT, PARTICULARLY FOR THE GENERAL FUND. AND SO THERE'S, YOU KNOW, THESE ARE JUST KIND OF THE HIGH LEVEL FACTORS AT A GLANCE. WE HAVE AN INCREASE OF REVENUE FROM WILL INCREASE PROPERTY VALUES OF 3,099,000. AND THEN WHEN YOU LOOK AT THE PERSONNEL SERVICES INCREASES DECREASE OF 6.16 MILLION. OTHER OTHER OPERATING EXPENSE INCREASES. YOU KNOW, AGAIN, RESULTING IN, YOU KNOW, $230,000 REDUCTION IN FUND [00:25:08] BALANCE 886,000 OF POSITIVE FUND BALANCE IMPACT FROM THE RISK MANAGEMENT FUND TECH SERVICES. IS THAT A HALF $1 MILLION IMPACT FROM INCREASES THERE? WE HAVE $395,000 OF REDUCED INTERFUND TRANSFERS TO THE EQUIPMENT SERVICES FUND. AND THAT'S BECAUSE THE FUEL ISLAND WOULD NO LONGER BE A FACTOR IN THIS PROPOSED BUDGET. AND A DECREASE IN VEHICLES COST OF $571,000. BUT THEN, OF COURSE YOU KNOW, THE MAIN THING THAT WE WERE PLANNING FOR FOR MANY YEARS, THE IRMA SETTLEMENT, SEAWALLS, AND SO THAT $4.5 MILLION IS REPRESENTED IN THIS PROPOSED BUDGET THERE'S AN ADDITIONAL $3.2 MILLION ANTICIPATED IN THE FISCAL YEAR AFTER THAT, IN FISCAL YEAR 2026, 27. AND SO THERE WERE GENERAL FUND RESERVE IMPACTS YOU KNOW, THAT WERE THANKFULLY DEFRAYED IN LARGE PART BY A STATE APPROPRIATION RECEIPT FOR $3.75 MILLION. YOU KNOW, TAKEN TOGETHER, THIS PROPOSED BUDGET, IT WAS A FUND BALANCE CHANGE FOR GENERAL FUND ANTICIPATED OF $2,694,713 OF SPEND DOWN. AND THIS SLIDE HERE JUST GIVES A BREAKDOWN OF THE GENERAL FUND BUDGET. AND WE TALK ABOUT THE GENERAL FUND, BOTH FOR THE, YOU KNOW, OUTWARD FACING SERVICES. OF COURSE, THERE ARE SOME FOLKS, YOU KNOW, LIKE MYSELF, WHO WORK MORE BEHIND THE SCENES. YOU COULD SAY BUT YOU KNOW, WE LOOK AT WHAT THE PURPOSE OF GENERAL FUND IS THERE FOR AND IT'S FOR SAFETY AND QUALITY OF LIFE. AND SO YOU KNOW, ABOVE, YOU CAN SEE THAT 78% OF THE GENERAL FUND BUDGET IS POLICE, FIRE AND PARKS, REC FACILITIES. AND THEN YOU COULD EVEN, YOU KNOW, CONSIDER PLANNING TO ALSO BE VERY MUCH A, AN OUTWARD FACING ELEMENT TO MAINTAIN THE QUALITY OF LIFE THAT RESIDENTS LIVE HERE FOR. SO, YOU KNOW, TAKEN WITH THAT, IT REALLY COMES TO MORE LIKE AN 80% FIGURE YOU KNOW, REMAINING PERCENTAGE OF EXPENSE WITHIN GENERAL FUND, YOU HAVE 3% RELATED TO SELF-INSURANCE COSTS, ANOTHER 4% OF THE BUDGET RELATED TO TECHNOLOGY SERVICES COSTS. AND. AND THEN BEYOND THAT, THERE'S ANOTHER 12% FOR ALL OTHER COSTS. ALL RIGHT. AND AND AGAIN, JUST TO KIND OF YOU KNOW, MENTION WHAT'S, YOU KNOW, TO COME JUST AFTER THIS PRESENTATION ENDS. WE HAVE SIX RESOLUTIONS. WE'VE GOT THE GENERAL FUND MILLAGE RATE, FOLLOWED BY THE CITY OF NAPLES BUDGET. AFTER THAT, WE WILL HAVE THE NAPLES BAY MILLAGE RATE. NOW ITEMS FOUR AND FIVE ARE KIND OF REVERSED ON THIS SLIDE, SO I APOLOGIZE. WHEN WE DID THE PACKET, WE ACTUALLY PUT EAST NAPLES BAY MILLAGE RATE RIGHT BEFORE EAST NAPLES BAY BUDGET AND THEN MOORINGS BAY MILLAGE RATE AND THEN LASTLY MOORINGS BAY BUDGET. AND AND THEN JUST LOOKING AHEAD, WE WE HAVE A FINAL PUBLIC HEARING SCHEDULED. AS I MENTIONED EARLIER ON THE BUDGET AND THE MILLAGE RATE FOR CITY OF NAPLES, JUST OVER TWO WEEKS FROM NOW, IT WILL BE ON MONDAY, SEPTEMBER 22ND AT 5:05 P.M. RIGHT HERE IN CITY COUNCIL CHAMBERS, 735 EIGHTH STREET SOUTH NAPLES. AND I GUESS WITH THAT THAT'S THE END OF MY PRESENTATION. ARE THERE ANY QUESTIONS? I'LL BE HAPPY TO ENTERTAIN THOSE. THANK YOU FOR YOUR PRESENTATION. COUNCIL. ANY QUESTIONS OR COMMENTS ON THE BUDGET? SEEING NONE. MADAM CLERK, DO I HAVE A PUBLIC COMMENT? NO PUBLIC COMMENT. OKAY, WELL THANK YOU. TO ALL THE DEPARTMENTS WHO WORKED VERY HARD AT BEING FISCALLY RESPONSIBLE FOR THE TAXPAYERS DOLLARS IN PRESENTING THIS BUDGET. WE CAN NOW MOVE ON TO ITEM SEVEN A. SEVEN A ABSOLUTELY. A RESOLUTION DETERMINING AND FIXING THE 2025 TAX LEVY AND THE TENTATIVE MILLAGE RATE FOR THE CITY OF NAPLES, EXCLUSIVE OF DEPENDENT TAXING DISTRICTS AND PROVIDING SUFFICIENT FUNDS FOR THE GENERAL FUND OPERATIONS, PROVIDING SEVERABILITY CLAUSE OR REPEAL PROVISION AND AN EFFECTIVE DATE. THANK YOU. OKAY, SO I WOULD JUST BE LOOKING FOR A MOTION TO APPROVE. ANY DISCUSSION? COUNCIL ON SEVEN A. NO PUBLIC COMMENT. MADAM MAYOR, I MOVE APPROVAL OF SEVEN A MOTION BY VICE MAYOR AND SECOND SECOND BY COUNCIL MEMBER [00:30:04] PETRANOFF. MADAM CLERK, PLEASE PULL THE COUNCIL. VICE MAYOR. HUTCHINSON. YES. COUNCIL MEMBER. PENNIMAN. YES. COUNCIL MEMBER. KRISEMAN. YES. COUNCIL MEMBER. MARTIN. YES. COUNCIL MEMBER. KRAMER. YES. COUNCIL MEMBER. PETRANOFF. YES. MAYOR. HARTMAN. YES. THANK YOU. COUNCIL PASSES UNANIMOUSLY. MOVING TO SEVEN B. MR. MCCONNELL. YES. THANK YOU. MAYOR. RESOLUTION ADOPTING THE TENTATIVE BUDGET FOR THE CITY OF NAPLES, FLORIDA, EXCLUSIVE OF DEPENDENT TAXING DISTRICTS FOR FISCAL YEAR COMMENCING OCTOBER 1ST, 2025 AND ENDING SEPTEMBER 30TH, 2026. APPROPRIATING FUNDS FOR OPERATING EXPENSES OF THE CITY OF NAPLES, FLORIDA FOR THE GENERAL OPERATION OF THE DEPARTMENTS OF THE CITY, INCLUDING UTILITIES, AND FOR THE INTEREST AND PRINCIPAL ON THE OUTSTANDING BONDS AND OTHER FIXED OBLIGATIONS OF THE CITY FOR ENDURING THE FISCAL YEAR, PROVIDING A SEVERABILITY CLAUSE, A REPEALER PROVISION, AND AN EFFECTIVE DATE. THANK YOU. ANYTHING ELSE TO ADD TO THAT? COUNCIL. ANY QUESTIONS? COMMENTS? I HAVE NO PUBLIC COMMENT ON THIS. NO COMMENT. HAVE A MOTION. I MAKE A MOTION TO APPROVE ITEM SEVEN B. MOTION BY COUNCIL MEMBER KRAMER AND A SECOND BY COUNCIL MEMBER PETRANOFF. MADAM CLERK, PLEASE CALL THE COUNCIL. COUNCIL MEMBER. PENNIMAN. YES. COUNCIL MEMBER. KRAMER. YES. VICE MAYOR. HUTCHINSON. YES. COUNCIL MEMBER. CHRISMAN. YES. COUNCIL MEMBER. MARTIN. YES. COUNCIL MEMBER. PETRANOFF. YES. MAYOR. HARTMAN. YES. THANK YOU. PASSES UNANIMOUSLY. GOING TO SEVEN C. MR. MCCONNELL. YES. THANK YOU. MAYOR. RESOLUTION DETERMINING AND FIXING THE 2025 TAX LEVY AND TENTATIVE MILLAGE RATE FOR THE EAST NAPLES BAY SPECIAL TAXING DISTRICT. FOR PROVIDING SUFFICIENT FUNDS FOR THE OPERATIONS OF THE SPECIAL TAXING DISTRICT, PROVIDING A SEVERABILITY CLAUSE, REPEALER PROVISION AND AN EFFECTIVE DATE. COUNCIL. ANY COMMENTS? QUESTIONS? DO I HAVE PUBLIC COMMENT? MADAM CLERK, NO PUBLIC COMMENT. THANK YOU. I HAVE A MOTION COUNCIL MAKE A MOTION TO APPROVE ITEM SEVEN C SECOND. I HAVE A MOTION BY COUNCIL MEMBER KRAMER AND A SECOND BY COUNCIL MEMBER BARTON. MADAM CLERK, PLEASE PULL THE COUNCIL. COUNCIL MEMBER. PETRANOFF. YES. COUNCIL MEMBER. KRAMER. YES. VICE MAYOR. HUTCHINSON. YES. COUNCIL MEMBER. YES. COUNCIL MEMBER. CHRISMAN. YES. COUNCIL MEMBER. MARTIN. YES. MAYOR. HARTMAN. YES. THANK YOU. COUNCIL PASSES UNANIMOUSLY. MR.. THANK YOU. BEFORE I MOVE ON TO 70, MADAM CLERK, WHEN THEY WHEN THE MOTION READS THE ITEM, I'M ASSUMING THE MINUTES WILL INCLUDE THE TITLE. THANK YOU. THANK YOU. I KNOW WE'RE ALREADY THROUGH THREE, BUT IF THE MOTIONS COULD ACTUALLY SPECIFY WHAT WE'RE APPROVING, I'D APPRECIATE THAT. A RESOLUTION ADOPTING THE TENTATIVE BUDGET FOR THE EAST NAPLES BAY SPECIAL TAXING DISTRICT FOR FISCAL YEAR COMMENCING OCTOBER 1ST, 2025 AND ENDING SEPTEMBER 30TH, 2026. APPROPRIATING FUNDS FOR THE GENERAL OPERATION OF THE EAST NAPLES BAY SPECIAL TAXING DISTRICT FOR THE FOREIGN DURING FISCAL YEAR COMMENCING OCTOBER 1ST, 2025 AND ENDING SEPTEMBER 30TH, 2026. PROVIDING SEVERABILITY CLAUSE OF REPEALER PROVISION AND AN EFFECTIVE DATE. I'LL MAKE A MOTION TO APPROVE. DO I HAVE PUBLIC COMMENT ON THIS? NO PUBLIC COMMENT. THANK YOU, MADAM CLERK. COUNCILMAN CHRISMAN. I'LL MAKE A MOTION TO APPROVE THE RESOLUTION TO ADOPT A TENTATIVE BUDGET FOR THE NAPLES BAY SPECIAL TAXING DISTRICT FOR FISCAL YEAR 2526. MOTION BY COUNCIL MEMBER CHRISMAN. SECOND SECOND BY COUNCIL MEMBER PETRANOFF. MADAM. CLERK. COUNCIL MEMBER. KRAMER. YES. COUNCIL MEMBER. KRISTIN. YES. COUNCIL MEMBER. PETRANOFF. YES. COUNCIL MEMBER. MARTIN. YES. VICE MAYOR. HUTCHINSON. YES. COUNCIL MEMBER. PENNIMAN. YES. MAYOR. HARTMAN. YES. THANK YOU. COUNCIL PASSES UNANIMOUSLY. MOVING TO SEVEN F MR. MCCONNELL, 77. YEAH. NO PROBLEM. RESOLUTION DETERMINING AND FIXING THE 2025 TAX LEVY AND TENTATIVE MILLAGE RATE FOR THE MOORINGS BAY SPECIAL TAXING DISTRICT FOR PROVIDING SUFFICIENT FUNDS FOR THE OPERATIONS OF THE SPECIAL TAXING DISTRICT, PROVIDING A SEVERABILITY CLAUSE, REPEALING PROVISION, AND AN EFFECTIVE DATE. THANK YOU. DO I HAVE PUBLIC COMMENT? NO PUBLIC COMMENT. OKAY. NO. NO COMMENTS FROM COUNCIL. I HAVE A MOTION. I'LL MAKE A MOTION TO APPROVE THE RESOLUTION. THAT WOULD DETERMINE AND FIX THE 2025 TAX LEVY AND TENTATIVE MILLAGE RATE FOR THE MOORINGS BAY SPECIAL TAXING DISTRICT. SECOND. THANK YOU. HAVE A MOTION BY COUNCIL MEMBER CRISMON AND A SECOND BY COUNCIL MEMBER BARTON. MADAM CLERK, PLEASE PULL THE COUNCIL. COUNCIL MEMBER. KRAMER. YES. COUNCIL MEMBER. MARTIN. YES. COUNCIL MEMBER. PENNIMAN. YES. VICE MAYOR. HUTCHINSON. YES. COUNCIL MEMBER. [00:35:04] PETRONELLA. YES. COUNCIL MEMBER. KRISTIN. YES. MAYOR. HARTMAN. YES. OKAY. THANK YOU. COUNCIL PASSES UNANIMOUSLY NOW SEVEN F. MR. MCCONNELL. THANK YOU. A RESOLUTION ADOPTING THE TENTATIVE BUDGET FOR THE MOORINGS BAY SPECIAL TAXING DISTRICT FOR FISCAL YEAR COMMENCING OCTOBER 1ST, 2025 AND ENDING SEPTEMBER 30TH, 2026. APPROPRIATING FUNDS FOR THE GENERAL OPERATION OF THE MOORINGS BAY SPECIAL TAXING DISTRICT FOR AND DURING FISCAL YEAR COMMENCING OCTOBER 1ST, 2025 AND ENDING SEPTEMBER 30TH, 2026, PROVIDING A SEVERABILITY CLAUSE OR REPEAL PROVISION AND AN EFFECTIVE DATE. NO DISCUSSION. COMMENTS. MADAM CLERK. THANK YOU. NO PUBLIC COMMENT. I'LL MAKE A MOTION TO APPROVE A RESOLUTION ADOPTING THE TENTATIVE BUDGET FOR THE MOORINGS BAY SPECIAL TAXING DISTRICT FOR FISCAL YEAR 2526. MOTION BY COUNCIL MEMBER CHRISTMAN. SECOND. I HAVE A SECOND BY COUNCIL MEMBER KRAMER. MADAM CLERK, PLEASE PULL THE COUNCIL. COUNCIL MEMBER. MARTIN. YES. COUNCIL MEMBER. KRISTIN. YES. VICE MAYOR. HUTCHINSON. YES. COUNCIL MEMBER. PETRONELLA. YES. COUNCIL MEMBER. PENNIMAN. YES. COUNCIL MEMBER. KRAMER. CRAMER. YES, MAYOR. YES. THANK YOU. COUNCIL. IT PASSES UNANIMOUSLY. MR. YOUNG, I KNOW THIS MIGHT HAVE SEEMED ROUTINE, BUT I'M ALSO VERY PROUD THAT YOU PRESENTED THIS BUDGET TO COUNCIL. AND THE COMMUNITY WILL BE VERY PROUD BECAUSE IT DOES INCLUDE THEIR PRIORITIES OF PUBLIC SAFETY, QUALITY OF LIFE AND RESILIENCY. SO IT'S AN HONOR TO APPROVE THIS BUDGET. AND THANK YOU TO THE DEPARTMENT HEADS, BECAUSE IF WE DIDN'T HAVE YOU TO IMPLEMENT THIS BUDGET THE COMMUNITY WOULD NOT EXPERIENCE ALL THE WORK THAT'S PUT INTO CREATING THIS BUDGET. SO GO AND IMPLEMENT THE BUDGET WITHOUT ANY FINAL COMMENTS. MAYOR. THANK YOU. OKAY, COUNCIL. THANK YOU. AND WITH THAT OUR NEXT MEETING IS SEPTEMBER 22ND, 505. YES. WE'RE ADJOURNED. THANK YOU. * This transcript was compiled from uncorrected Closed Captioning.