Board of Commissioners Budget Workshop Meeting #2

MINUTES BOARD OF COMMISSIONERS BUDGET WORKSHOP MEETING APRIL 16, 2025 4:00 P.M. The City of Madeira Beach Board of Commissioners held a budget workshop meeting at 4:00 p.m. on April 16, 2025 in the Patricia Shontz Commission Chambers at City Hall, located at 300 Municipal Drive, Madeira Beach, Florida. MEMBERS PRESENT: Anne-Marie Brooks, Mayor Ray Kerr, Vice Mayor/Commissioner District 2 David Tagliarini, Commissioner District 1 Eddie McGeehen, Commissioner District 3 Housh Ghovaee, Commissioner District 4 MEMBERS ABSENT: None CHARTER OFFICERS PRESENT: Robin Gomez, City Manager Clara VanBlargan, City Clerk Andrew Laflin, Finance Director/City Treasurer Thomas Trask, City Attorney 1. CALL TO ORDER Mayor Brooks called the meeting to order at 4:00 p.m. 2. ROLL CALL City Clerk Clara VanBlargan called the roll. All were present. 3. PUBLIC COMMENT Mayor Brooks said there was no public in attendance, so there would be no public comments. 4. DISCUSSION ITEMS A. FY 2026 Budget Workshop #2 City Manager Robin Gomez said the packet on the website has two items that are not part of the discussion. There is no capital item for the Snack Shack and no capital item for parking. The online packet will be corrected. I. 3 Year Historical Revenues & Expenses and Reserve Analysis (2022, 2023, 2024) April 16, 2025, BOC Budget Workshop Meeting Minutes Page 1 of 4 Finance Director Consultant Andrew Laflin reviewed the item and said the FY 2024 audit was issued at the end of March. He provided a three-year historical analysis of revenues and expenses for each of the City’s governmental and enterprise funds, including the General and Special Revenue Funds. The Debt Service Fund collects money through transfers from the General Fund and pays the debt service principal and interest for the 2013 outstanding construction debt for the City Center facility. Mr. Laflin explained the three-year historical overview of the Capital Outlay activity in the Enterprise Fund and the Fund Reserve analysis, which is the estimated end of FY 2025, to be projected available reserves. Mr. Laflin reviewed where they stand on their debt. The three debt issuances outstanding are: • Revenue Bonds, Series 2013 – Finance the construction of the City Center project • Revenue Bonds, Series 2019 – Finance roadway and stormwater improvements • Revenue Bonds, Series 2020 – Refund Series 2015 Stormwater System Revenue Bond in order to take advantage of a lower interest rate Vice Mayor Kerr asked if there were any refinancing opportunities within a grant writing program so they could get the interest rate of the other bonds lowered. Mr. Laflin said if they refund the 2013 Series soon, they could have an estimated annual cash flow savings of about $20,000 a year through 2043. It would be worth considering issuing a bank RFP to see their response. The interest rate six months from now is unpredictable. II. 5-Year Capital Improvement Plan Initial Discussion Mr. Laflin said it is a good depiction of what they feel they might want to spend over the next five years on a fund and department level. Vice Mayor Kerr said he did not recall discussing a basketball court enclosure. The City Manager said they have been looking for funding. Visit St. Pete Clearwater opened up some capital construction funding, which they are looking into for FY 2026. The estimated cost for an enclosure, a concession stand, and restrooms is about a million dollars. Mayor Brooks said she was curious about the restroom facility at Madeira Beach Fundamental because of the flooding and the portables there. She asked where they were with a design. Recreation Director Jay Hatch said it is preliminary. He said they had used one portable for over ten years for youth programs with 300-400 kids. With the damage from the flooding, they ran plumbing to put a portable on the field, so the connection they would need is there. The Mayor said the prefabricated buildings are simple and cost-effective. Commissioner McGeehen asked if there was a way they could not replace the veranda and stairs at City Hall. The City Manager said they looked at various options and that making repairs would be very difficult. The building is almost 11 years old, and they felt the replacement would be best. Director Wepfer said replacing it would be more cost-effective. April 16, 2025, BOC Budget Workshop Meeting Minutes Page 2 of 4 Vice Mayor Kerr asked if there would be any structural changes to the veranda and stairs. Director Megan Wepfer said they are unsure what is underneath the tile. Mayor Brooks asked Director Wepfer if she considered using tile or an epoxy product. Director Wepfer said the plan is to demo it, level it, and use an epoxy coating like what is in the restrooms. The City Manager said the majority of the capital projects are the road projects in the Stormwater Fund, and they would like to complete them in FY 2026, but some are budgeted over multiple years. Vice Mayor Kerr said that is where they need grants to come through. III. Personnel Listing & Costs by Department – FY 2025 Mr. Laflin reviewed the current personnel listing and FY 2025 salaries, taxes, and benefits. The City Manager explained why there are partial positions in some departments. It was due to the funding for the positions and the type of work they perform. The City Manager said they are looking at an approximately 5% salary increase for all positions other than those under the IAFF or collective bargaining agreement for the fire union members. They are also possibly looking at an 8% or 9% increase in medical premiums. The City Manager said the City's financial standing has been and continues to be fairly good. The storms' impacts appear to have been less than he expected. The tax refunds were an average of about 8% of the total property tax. The preliminary tax roll will be released at the end of May. The City Manager said there are 125 approved demolition permits, so when the property appraiser assesses properties on January 1, 2026, the impact should be less than what they originally anticipated. The revenue loss regarding property tax should also be less than they expected. IV. FY 2026 Budget Workshop & Adoption Timeline • Budget Workshop #3 – May 28, 2025 at 4:00 p.m. - Updated Capital Improvement Plan - Position Listing & Benefits Overview • Budget Workshop #4 – June 25, 2025 at 4:00 p.m. - Preliminary Budget Document • Budget Workshop #5 – July 23, 2025 at 4:00 p.m. - Ad valorem tax analysis - Preliminary Budget Book – Summary of Changes • Budget Workshop #6 – August 27, 2025 at 4:00 p.m. - Tentative Budget Book – Summary of Changes • Public Hearing #1 – September 10, 2025 at 5:45 p.m. - 1st reading and public hearing – Adopt FY 2026 tentative millage rate ordinance and FY 2026 tentative budget ordinance • Public Hearing #2 – September 24, 2025 at 5:45 p.m. April 16, 2025, BOC Budget Workshop Meeting Minutes Page 3 of 4