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Home My WebLink About09-15-2025 CC MinutesC11Y 01' SESASTI� �N HOME OF PELICAN ISLAND SPECIAL MEETING FIRST PUBLIC HEARING ON THE MILLAGE AND BUDGET MONDAY, SEPTEMBER 15, 2025 — 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor McPartlan called the special meeting to order at 6:00 p.m. 2. A moment of silence was held. 3. The Pledge of Allegiance was recited. 4. ROLL CALL Mayor Bob McPartlan Vice Mayor Fred Jones Council Member Ed Dodd Council Member Chris Nunn Staff Present: City Manager Brian Benton City Attorney Jennifer Cockcroft City Clerk Jeanette Williams Finance Director/CFO Brian Stewart Building Director/Fire Marshal Wayne Eseltine Community Development Director Alix Bernard Parks and Recreation Director Richard Blankenship Public Works Director Lee Plourde Airport Manager Jeff Sabo Human Resources Director Cindy Watson Golf Pro Greg Gardner MIS Manager Barbara Brooke -Reese Police Chief Daniel Acosta 5. PUBLIC HEARINGS The City Attorney advised Council on the procedure in accordance with F.S.200.065 for the millage and budget hearing and read the titles of Resolutions R-25-31 on the FY2025-2026 Tentative Millage and R-25-32 on the FY2025-2026 Tentative Budget. The City Manager announced that the FY 2025-2026 tentative millage of 3.4455 is recommended, which in accordance with State Statutes is 14.29% higher than the Special City Council Meeting 11 Budget Hearing September 15, 2025 Page 2 computed "roll -back" millage. These revenues will be applied to General Fund Expenditures projected for FY2025-2026. A. Budget Overview of Tentative Millaae and Tentative FY 2025-2026 Budget The Chief Financial Officer gave a brief PowerPoint presentation covering the General Fund, the Enterprise Funds, the Special Revenue Funds, the Capital Improvement Program, and how the proposed millage will affect property values. (See attached) He said the budget was increasing due to pay increases and a 4.9% increase in operating expenditures. He went over the Enterprise Funds and Special Revenue Funds. The certified taxable property values increased 8.4% which add 2.55% to the tax roll. He displayed a brief history of past tax roll additions. He asked for approval of the tentative millage and budget resolutions. In response to Council Member Nunn, the Chief Financial Officer said the tentative millage rate provides for a raise of 7.8% up from last year. Mayor McPartlan opened the public hearing. Grace Reed, member of the Citizens Budget Review Advisory Board, stated that while she voted for the millage increase, she asked if Council would consider taking some funds out of reserves to go to the rolled back rate. The City Manager advised that the budget as presented includes a dip into reserves for the retirement contribution and the 401(a) payment for those employees who are not vested in the CWA retirement account. He said the City's budget is very heavy on the personnel side as opposed to one-time expenditures. He explained that if reserves are used for recurring expenses, it immediately sets up the City to be in the hole for next year. Council Member Dodd said there are a lot of factors involved and they can't depend on FEMA if a big storm comes through. If there is an emergency, there isn't any room in the proposed budget other than the reserves. He commended staff for reducing the budget from the TRIM notice amount. He supported the 3.4455 millage rate. Vice Mayor Jones said the proposed budget is sensible and every dollar is accounted for. Special City Council Meeting 1" Budget Hearing September 15, 2025 Page 3 Council Member Nunn said it sounds enticing to pull from savings to pay monthly bills but when it needs to be taken every month, that is where the City would be with a rolled -back millage. He supported the 3.4455 millage rate. Mayor McPartlan said the two-day budget workshop was tremendous amount of work in getting the millage rate down and he appreciated the dollar bill slide in the PowerPoint which was an excellent way to show the residents the different agencies budget percentages. B. Consideration of Resolution No. R-25-31 Adopting the Tentative Millaae for Calendar Year 2025 Council Member Nunn said it is known that once the millage rate is set, no one ever goes down and he congratulated staff on reducing the rate. MOTION by Council Member Nunn and SECOND by Vice Mayor Jones to approve Resolution No. R-25-31 adopting the tentative millage for Calendar Year 2025. Roll call: Vice Mayor Jones - aye Council Member Dodd - aye Council Member Nunn - aye Mayor McPartlan - aye Motion carried. 4-0 C. Consideration of Resolution No. R-25-32 Adoptina the Tentative Budaet for Fiscal Year 2025-2026 MOTION by Vice Mayor Jones and SECOND by Council Member Dodd to approve Resolution No. R-25-32 adopting the tentative budget for Fiscal Year 2025-2026. Roll call: Council Member Dodd - aye Council Member Nunn - aye Mayor McPartlan - aye Vice Mayor Jones - aye Motion carried. 4-0 D. Consideration of Resolution No. R-25-33 Adoptina the Capital Imrarovement Program for the Fiscal Years 2026-2031 The City Attorney read the title of Resolution No. R-25-33. The City Manager said the list is included in the packet for Fiscal Years 2026-2031 with the total cost at $12,479,308. He advised there have been a couple of adjustments to come in line with the draft budget, for example, the sidewalk repairs were pulled out of the General Fund and put into Local Option Gas Tax which reduced the amount for road preservation. Also, the Special City Council Meeting 11 Budget Hearing September 15, 2025 Page 4 airport is showing a deficit next year because they have a healthy reserve and Council had requested their matching dollars needed for grant applications to come out of their reserves instead of the Discretionary Sales Tax Fund. MOTION by Council Member Dodd and SECOND by Council Member Nunn to approve Resolution No. R-25-33 adopting the Capital Improvement Program for the Fiscal Years 2026-2031. Mayor McPartlan invited public input but no one came forward to speak. Roll call: Council Member Dodd - aye Council Member Nunn - aye Mayor McPartlan - aye Vice Mayor Jones - aye Motion carried. 4-0 E. Consideration of Resolution No. R-25-34 Adot)tina Financial Policies for Fiscal Year 2025-2026 The City Attorney read the title to Resolution No. R-25-34. The City Manager said the policies contain one change indicated in red in Section 6, on page 47. The Chief Financial Officer said staff has asked to increase the capitalization thresholds on capitalizing the fixed assets to get them in line with other cities, counties and other governments who are most at the $5,000 limit for equipment. This will not affect the tracking of the item. MOTION by Council Member Dodd and SECOND by Vice Mayor Jones to approve Resolution No. R-25-34 adopting the Financial Policies for Fiscal Year 2025-2026. Mayor McPartlan invited public input but no one came forward to speak. Roll call: Council Member Nunn - aye Mayor McPartlan - aye Vice Mayor Jones - aye Council Member Dodd - aye Motion carried. 4-0 F. Mayor McPartlan announced the final public hearing on the FY 2025-2026 millage and budget would be held on September 24, 2025 at 6:00 p.m. 6. Being no further business, Mayor McPartlan adjourned the Special Meeting at 6:41 p.m. Special City Council Meeting 11 Budget Hearing September 15, 2025 Page 5 Approved at the October 22, 2025 Regular City Council meeting. A�4Yon01� Mayor Bob McPa ATTEST nette Williams, City Clerk 2026 Budget and Capital Program Presentation on Proposed 2026 Budget and Tentative Millage City Council First Hearing: Monday September 15, 2025 City Council Second Hearing: Monday September 24, 2025 West, Prepared By: Brian Stewart, CPA Chief Financial Officer 2026 Budget and Capital Program • Current Factors •Summary of General Fund Budget • Enterprise Special Revenue and Other Funds • Capital Improvement Program • Property Values and Millage 2 1 Current Factors Personnel o Health Insurance Premiums up 7%. o Property, Liability & Workers comp down $327,206 across all funds o Police Contract come to Council on 9/24 Supervisors Union Negotiations ongoing o Non -Union employees Pay Increases at 6%, Maintenance Worker positions new pay grades and additional adjustments o No new Positions in this budget 0 1 position transfer/re-classification from Maintenance Worker II (Roads) to Heavy Equipment Mechanic (Garage) o New Retirement Plan General Fund Summary General Fund Increases (Decreases) $ 992,013 Personnel Costs' 207,274 Operating Expenditures2 (584,896) Capital Items and Projects $ 614,391 3.2% Budget Increase ' 6.9% Increase due to pay. z 4.9% Increase. a 7 Draft FY2026 Enterprise Funds: Golf Course o Projected expenses over revenues of $155,442 Revenues projected conservatively even with new rates $100,000 is shown as a repayment to General Fund o Restaurant lease remains at $30,000 o Airport rent remains at $107,483 o $37,397 principal and interest on $700,000 Building Fund loan o $200,000 for Cart barn replacement moved into FY26 5 Draft FY2026 Enterprise Funds: Airport o Projected expenses over revenues of $78,332 o Property Rental Revenue Expected to Increase With Rental of new Square Hangars. o Loans from Discretionary Sales Tax Fund: Hangar A principal remaining $213,495 @ 9/30/2026 Hangar B principal remaining $213,408 @9/30/2026 o Grant matching from Airport Fund (Change from Budget WS): $50,000 for the design of the Taxiway Golf; $27,750 for Construction of the Terminal Apron Expansion; $50,000 for the design of the NW Access for expansion o Grant matching From DST Fund: $197,520 for the Construction of Taxiway Golf Over the Following Five Years, $1,010,000 for the matching on the construction of Taxiway Golf; Runway 10/28 Rehab; Security Fiber Network Upgrades; Construction of NW Access for expansion; Design taxiway Alfa Rehab; Taxiway Bravo Rehab. 6 3 Draft FY2026 Enterprise Funds: Building o Projected expenses over revenue by 456,172 o Permit revenue starting to level off. o Expecting $37,397 Principal and Interest Payment on Golf Course Loans: $700,000 Loan Will Be $428,522 By 9/30/25. $559,684 Loan To Be Paid After the $700,000. Draft FY2026 Special Revenue Funds oAmerican Rescue Plan Act Fund (ARPA): Originally Allocated to Gardenia Ditch, Schumann Drive, Concha Dam, Employee Retention Payments and Road Work. Must Be Obligated by December 31, 2024 and Totally Spent by December 31, 2026. Improvement Projects Need Plans and Permitting Which Require Some Time. Road work completed in FY25, Gardenia Ditch and Schumann Drive Projects ongoing. a El Draft FY2026 Special Revenue Funds o Local Option Gas Tax: Projecting Collections at 1.0% Annual Increases for Future Years. Being Used for All Road Preservation and Associated Swale Work as Scheduled in Current Paving Management Program. Funding Road condition assessment in FY26 Railroad Crossing Maintenance Sidewalk Work (Moved frorn GF) Draft FY2026 Special Revenue Funds o Discretionary Sales Tax: Projecting Collections at 1.0% Annual Increases for Future Years. Being Used for Road Reconstruction and Associated Swale Work as Scheduled in Current Paving Management Program. Also Funding: MIS Infrastructure, Police Vehicles/Equipment, A/C Replacements, PD Roof Repair/Replacement Work, Main Street Boat Ramp Dredging, Vehicle and Equipment Shelter at PW Compound, Major Construction Vehicles/Equipment and Matching Funds for FAA and FDOT Grants. o 5 Draft FY2026 Special Revenue Funds: o Riverfront CRA Fund: Operating Expenditures: oAudit Fees, Administration, Working Waterfront Improvements, Other Facility Maintenance, Submerged Land Leases, Consulting Fees, Travel and Education Cost, Legal Ads, State Fee, Association Dues and Landfill Fee on Fisherman's Landing. ol-andscaping is Handled In -House Fisherman's Landing and Working Waterfront Projects Thru FY 26-27. Central Avenue Catalyst Site in FY 27-28. 11 Draft FY2026 Special Revenue Funds: o Recreation Impact Fee Fund: Unspecified Improvements ($SK per Zone). $80,000 in playground Improvements budgeted in FY26 Projected 2026 Fund Balance is $207,787 Provided Revenue Estimates Hold True. 12 0 Draft FY2026 Special Revenue Funds: o Stormwater Utility Fund: Personnel and Operating Accounts are exceeding the revenue from fees by $75,933. Capital Includes: oMini Excavator olero Turn Mower oSliplining or Pipe Replacement. 13 Draft FY2026 Special Revenue Funds: o Law Enforcement Forfeiture Fund: Used Only for Unbudgeted Items. Specific Items Need City Council Approval. Current Balance is $53,582. o Parking In Lieu Of Fund: Used for Providing Additional Parking. Current Balance is $127,540. 14 7 Draft FY2026 Trust Fund o Cemetery Trust Fund: Y2 of Sales on Operations and Maintenance: oReimbursing $150,000 to General Fund. of Sales Expendable on Expansions or Cost Incidental to Adding Future Sites: oFunds Columbarium Niches in FY 26-27. oReplacing Admin Building in FY26 $660,000. 15 Capital Improvement Program o $46.2 Million Over 6 Years. o $12.5 Million Next Fiscal Year. o $4.0 Million Next Year Will Be Funded by Grants, Which is 31.9%. o Largest Items for Next Fiscal Year: $ 3,147,500 Street Work 1,110,000 Terminal Apron Expansion 987,600 Taxiway Golf Construction $ 5,245,100 Total of Largest Items 16 9 Property Values and Millage: Certified Taxable Values o Total Certified Taxable Property Values Increased $193,311,991 or 8.4% Above 2025. Additions Account for $58,569,929 or 2.55% of the Increase. Reassessments Were $134,742,062 or 5.86% of the Increase. o Rolled -Back is 3.0148. Proposed Millage is 3.4455 (Increase of .25 Mills from Prior Year) which is less that the advertised TRIM 3.5455. o To Use Rolled -Back Millage Would Require Using $1,038,827.39 of Reserves. Property Values and Millage: Taxable Value Additions Dollar Value of Tax Roll Additions: 2025 58,569,929 2020 33,685,698 2024 59,143,508 2019 23,351,814 2023 84,817,696 2018 15,998,366 2022 47,981,095 2017 35,951,704 2021 32,716,715 2016 25,763,700 18 164 Millage Rates by Taxing Authority Breakdown of Ad Valorem Taxes on Tax Bill �nr•:t:�rrw:utir.erhaur•.�ur•.1t_�t?.� . .�17e o ... z Ikl z Iudnm an'( I County IRC Schools I C ity of Sebastian 3u.lc 34.8c 1 20.8C Other Taxing Districts Taring DiM ne, PAlis 011age % 3.7C Indian R�.County 5.9645 36-V4. IRCSchools 5.7530 34.8% Hospital District Cityo(Sebastian 3.4455 20.8% 4,6( Hospital District 0.7850 4.6% OtherTaring Distncis 0.6109 3.7% Millage Rate Options Increase %Change Increase MILLAGE RATE OPTIONS Net Tax Collection (Decrease)from From Roll- (Decrease) in GF Roll -Back Back Rate Reserves Roll -Back Rate 3.0148 $7,271,550.51 $0.00 0.00% (1,038,827.39) Prior Year Rate 3.1955 $7,707,390.10 $435,839.58 5.99% �602,987.80) 3.3305 $8,033,003.51 $761,453.00 10.47% (277,374.39) tBudget -1/4mill Inc. 3.4455 $8,310,377.90 $1,038,827.39 14.29% TRIM Notice Rate 3.5455 $8,551,573.02 $1,280,022.51 17.60% 241,195.12 3.5955 $8,672,170.58 $1,400,620.07 19.26% 361,792.68 1/2 mill increase 13.6955 $8,913,365.70 $1,641,815.19 22.58% 602,987.80 20 10 Property Values and Millage: Millage impact on various Home Values Millais@ With Homestead i3%1 Without Homestead (84%) arious Home values 350,000.00 400,000.00 450,000.00 350,000.00 400,OD0.00 450,000.00 202STaaAmount@ 3.1955 958.65 1,118.43 1,278.20 1,118.43 1,278.20 1,437.98 2026Tax Options 2026Increase (Decreaselover Roll -Back Rate Rolled Back Rate 3.0148 127.08) (31.59) (36.10) 25.39 29.02 32.64 PdorYear Rate 3.1955 28.76 33.55 38.35 93.95 107.37 120.79 Other Rate Options:3.3305 70A7 82.22 93.97 145.17 165.90 186.64 Proposed Rate 3.4455 106.01 123.68 141.35 188.80 215.77 242.74 3.5455 136.91 159.73 182.55 226.74 259.13 291.52 3.5955 152.36 177.75 203.15 245.71 280.81 315.91 3,6955 183.26 213.80 244.35 283,65 324.17 364.69 21 Millage Setting 20 Year History At or Below Rolled -Back 11 Years - 55% of the Time 3.WXi 36= 31W] 3.3W] 3 0.1J] 26� i 3.<WJ 3.]W! 2.0000 I I SMY 2M M 2010 3011 5012 2013 3014 ID15 30]6 Ill? 3019 2011 2020 W21 2033 =3 2. M35 W26 ORaNtr9 & 301 1222 JIM 3W 3.901 3131 35W 19D 3.5Y 3.629 16" 1493 3151 2939 IM JON 2.6p 2.627 290 3014 ■MY 3M1 2.991 3.345 9315 130 3 ills 3216 1655 3&55 3000 Ji 1131 2.939 1151 30% 2.905 1199 1395 3a15 22 11 Other Considerations o Police contract coming for consideration on 9/24 and Supervisor Union Negotiations Still Ongoing o Prices Continue to Increase But How Long Will Current Economic Levels Continue? Unknown Future Impact of Tariffs o Setting the Proposed Millage for the Trim Notices at 3.4455 Will Be Advertised as a 14.29%Tax Increase o Current proposed budget millage is .1 mills less than TRIM Notice 23 Conclusion o Staff Request You Approve the Tentative Millage for Fiscal Year 2026 at 3.4455 and set the Second Reading for September 24tn 24 12