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CC07-21-2025Min_WS LONGWOOD CITY COMMISSION Longwood City Commission Chambers 175 West Warren Avenue Longwood, Florida WORK SESSION MINUTES July 21, 2025 1:00 P.M. Present: Mayor Brian D. Sackett Deputy Mayor Abby Shoemaker Commissioner Tony Boni Commissioner Matthew McMillan Commissioner Matt Morgan William Watts, City Manager Michelle Longo, City Clerk David Dowda, Police Chief Troy Feist, Fire Chief Chris Kintner, Community Development Director Chris Capizzi, Leisure Services Director Shad Smith, Public Works Director Craig Dunn, Information Services Director Magdala Ridore, Human Resources Director Nerys Hernandez, Records Coordinator Matt Hockenberry, Streets & Stormwater Division Manager Jammie Tackett, Public Works Administrative Office Manager Rex Grice, Finance Grants Coordinator Liane Cartagena, Community and Media Relations Manager Also Present: Clint Gioielli 1. CALL TO ORDER. Mayor Sackett called the meeting to order at 1:00 p.m. 2. REVIEW AND DISCUSS THE PROPOSED BUDGET FOR FISCAL YEAR 2025- 2026 Commissioner McMillan moved to suspend the rules. Seconded by Deputy Mayor Shoemaker and the motion was carried by a unanimous voice vote. Mr. Watts provided a brief overview of the budget. He thanked each of the staff members who worked on the proposed budget in the absence CC 07-21-2025/1 of a Finance Director. He highlighted Rex Grice, Liane Cartagena, Molly Ralston, Magdala Ridore, and Clint Gioielli. He extended special thanks to the City of Altamonte Springs, which lent its support and guidance. He said they have filled the Finance Operations and Budget Manager position and extended a conditional job offer. The new employee is scheduled to start in two weeks. By bringing the individual on board, they are not only adding a valuable asset to the city's finance and accounting operations but also strengthening the capacity for budget development and oversight. Mr. Watts planned to provide a summary of the information, answer any questions, and make the adjustments as directed by the Commission. Mr. Watts spoke about the budget details. The proposed budget totals $62,400,925 and includes all revenue sources, including grants and utilities. He said this is a decrease of more than 15% compared to the current year's adopted budget. The reduction is primarily due to the one- time use of the ARPA funds in the current fiscal year. He stated that the lack of a finance director means the proposed budget does not include funding for general or certain capital fund projects. The plan is to revisit those items later in the fiscal year, once a new finance director is in place and has had time to assess the city's financial position. He is proposing approximately$47 million in spending, which represents a decrease of about $11 million, or 18% compared to the current year's adopted budget. He said this year's budget was developed in the context of several continued economic pressures. First, while inflation is beginning to slow, it remains a significant cost driver. It currently sits at 2.9% down from 3.1% last year and 4%the year before. He said staff continues to experience rising costs in several key areas, including: • Contractual services • Building, equipment, and vehicle maintenance • Property and casualty insurance, which is increasing by 8.5% • Health insurance, which is increasing by 9.2% • Police and Fire defined benefit retirement plan, which now stands at 34.49%, nearly 9% increase year-over-year Mr. Watts reviewed challenges familiar to many local governments, specifically the required $15-an-hour minimum wage. It continues to put upward pressure not only on entry-level wages but also on salaries throughout the organization due to compression. He said recruitment and retention have been difficult, and there have been vacancies in some key roles, which puts a burden on remaining staff, including overtime, and leads to fatigue. He stated that ad valorem revenue is up 6.82% and there is no increase in the tax rate. He said this figure does not include CC 07-21-2025/2 any new multi-family development and reflects actual organic growth in the base. He said that dental and vision insurance rates remain unchanged. Staff is evaluating a mobile carrier and cell phone stipend program, which he anticipates will generate significant savings in the future. He said the Leisure Services Sponsorship/Vendor program has opened new partnerships and revenue streams to offset the costs of community events. The septic-to-sewer abatement program continues to grow, expanding services while bringing in new utility customers, supported by grant funding and low-interest state loans. He noted that as the program grows, they will need to return to the commission for a broader discussion on utility fee structures. He said fuel costs are trending in the right direction, currently averaging $3.14 per gallon, down from $3.27 last year and $3.36 the year before. Mr. Watts reviewed the debt and financial position, stating that they have made significant progress on long-term debt. He said that the Transportation Improvement Note was fully satisfied this fiscal year, with a final payment of$788,000. The Capital Improvement Note will be completed next fiscal year with a final payment of$313,000, and another note will be paid off in fiscal year 2025/2026 with a final payment of $350,000. He also reviewed staffing and reserves, noting that staffing changes have been modest and strategic. He said they have gone from 174.5 to 175.5 positions, reflecting the addition of one new position in Finance. Mr. Watts noted that the general fund reserve was 27%which continues the recent history of healthy financial management. This reserve provides both stability and flexibility. Ms. Michelle Longo, City Clerk, presented the City Commission, City Clerk, City Attorney, and General Services budgets. The City Commission's budget is relatively small and does not fluctuate much. There has been an increase from last year, primarily due to health insurance increases. Overall, costs for services, supplies, and memberships have also increased, but she was confident in staffs ability to manage these effectively. The Florida League of Cities Annual Conference will be held in Hollywood in 2026, which will result in an increase in the budget if all commissioners attend. The cost per commissioner would be $2,551.10, which includes mileage, Registration Fee, Hotel, Parking, and meals. Discussion ensued regarding the increases in personnel expenses, health insurance benefits, and the $5,000 increase in account line 4900. It was noted that the health insurance numbers would be rechecked. Discussion was held regarding the cell phone stipend, and additional research will be conducted to ensure the correct amount is included in CC 07-21-2025/3 the budget. The annual commission donation was discussed, and it was noted that it was approved in the previous year's budget to be increased to $2,000 per commissioner and remained unchanged this year. There were no questions on the City Attorney's budget. Ms. Longo, City Clerk, presented the City Clerk's budget. The budget is relatively small and does not fluctuate much. The Clerk's office maintained its current staff level at two (2). There has been an increase in the budget from last year, primarily associated with a wage increase across the board for all General Government employees, along with the annual fee for the new records Management software—JustFOIA, which was approved in last year's budget. The slight increase in the operating budget from the previous year is primarily due to increased costs for contractual services, such as Archive Social, Iron Mountain, CemSites, Simplifile, Quadient (postage services), and CivicPlus. There were also slight increases in supplies and memberships. With an election in 2026, costs related to translation services and additional advertising will be incurred. These services are essential for operations, and the budget increase is a strategic decision to ensure staff can continue to provide the best service possible. This strategic approach to budgeting should provide reassurance that staff maintain careful financial management. She said staff has worked hard to stay within the allotted budget and made cuts where possible, which are reflected in the budget worksheets in the Budget Request book. Discussion was held on the maintenance costs for the cemetery, postage costs, and the amounts reflected as estimates for repairs and maintenance. Mr. Watts, City Manager presented the City Manager budget. He said the budget remains unchanged except for the wage increase for employees. Discussion ensued regarding the amounts reflected in the estimates, and it was noted to consider only the budgeted amounts. Ms. Ridore presented the Human Resources budget. She reviewed the changes made in the budget and went over the increase related to the liabilities line. Ms. Ridore presented the budgets for Finance, Purchasing, and Utility Billing. She reviewed the changes made in the budget, noting a slight increase in the proposed salary increase and employee development. The slight rise in the Purchasing division is related to a new position and CC 07-21-2025/4 employee development. For the Utility Billing division, there was a slight increase in the proposed salary increase. Mr. Craig Dunn, Information Technology (IT) Director, presented the Information Technology Budget. He talked about his management philosophy for IT and how it applies to his budgeting. Chief Dowda presented the Police Department's budget, which included slight adjustments to wages. He reviewed the items that have seen an increase in cost. Chief Troy Feist, Fire Chief, presented the Fire Department budget, which included slight decreases in the operating expenses. Discussion ensued regarding Overtime Garcia, and Chief Feist explained how it works. Mr. Chris Kintner, Community Development Director, presented the Community Development and Building Services budget. There were slight reductions in the community development budget, due to the removal of the Public Art Program; there was no interest. He did review the programs that have seen success. He reviewed the building services budget, and there will be a decrease in contractual services with the hiring of a new building official. Mr. Chris Capizzi, Leisure Services Director, presented the Leisure Services budget. There was a slight decrease in the operating budget. He reviewed some of the projects they had completed in the current fiscal year. There is a slight increase in line 4400 for rentals and leases. A discussion ensued regarding the Pennies for Parks fund, the round-up of the utility bill program, and obtaining an update on the current balance. Mr. Capizzi reviewed the 131 fund, which involves the Parks and Recreation Advisory Board and has funds for events. He reviewed the increases for events, which included candy for the Halloween event. Mr. Shad Smith, Public Works Director, presented the Public Works budget. He reviewed the increases for operating line 3100, which includes survey work and grant services. For contractual services line 3400, there was an increase related to mowing. He noted monies were added for tree services and an increase in utility services. He reviewed the other various increases and decreases throughout the budget lines. CC 07-21-2025/5 Mr. Smith reviewed the Stormwater line, 406 fund, which remained relatively unchanged, and reviewed the areas with increased costs. He noted they have seen success with their Stormwater Booth, which has been at the events. For the Public Utilities Fund, the 401 Fund, and the 402 Fund, he reviewed the increases. Mr. Watts spoke about the Lewis House and asked for further direction from the Commission. He also discussed Fire Station #15. Discussion ensued regarding the Lewis House and its potential relocation to a property within the Historic District. Mr. Gioielli provided a history of the discussions that had taken place regarding the Lewis House. He also stated that Mr. Brian Roy had approached the city. Mr. Roy has remodeled other historic buildings in Longwood. It was discussed to place the Lewis House on the Hopkins property, which he is currently remodeling, that faces Wilma Street. A discussion ensued regarding Mr. Roy or Lyman High School's Engineering Program taking on the Lewis House as a project. Mr. Watts will reach out to both Mr. Roy and Lyman High School to discuss further. Mr. Watts addressed the Capital Improvement Plan (CIP) and noted that the budget was proposed with only the general fund. The CIP items were left for a broader discussion. Discussion ensued regarding the status of Fire Station #15. Mr. Gioielli provided a history of the plan for Fire Station #15. He said that it would be included in the budget. He reviewed the numbers and stated that staff had used a figure of$9.6 million and had asked the commission to approve a maximum not-to-exceed loan of$5.2 million, taking into account that there is $4.4 million in ARPA funds. He stated that the loan would be for$5.2 million, not exceeding$6 million, and would not require a referendum. He said that the $5.2 million is the maximum not to exceed if the city received zero dollars from FEMA. If the city received what they thought was going to be the $1.1 million, then they would not be financing $5.2 million; it would be $4.1 million. At the time, the staff was attempting to secure a grant of$2.2 million from FEMA. Mr. Smith provided an update on the status of the grant and noted that they are working with a consultant who is helping them. CC 07-21-2025/6 Discussion ensued regarding the general purpose of the building and options to include vacating the current tenant and demolishing the entire building at once, adding more tenants, or utilizing it for city staff. Mr. Watts will review the options and get a status on the FEMA Grant. He said that the discussion on the Water Treatment Plant is part of a larger conversation that involves the utility fee structure, and he is not yet ready to have that conversation. It will be about six (6) months, and that will be brought to the commission. 3. ADJOURN. Mayor Sackett adjourned the meeting at 2:45 p.m. Minutes approved by City Commission: 08-04-2025. Cd4 Brian D. Sackett, ATTEST: chel e Lon MC, RM, City Clerk CC 07-21-2025/7 I This Page Left Blank Intentionally. I I CC 07-21-2025/8