Mr.

Schumacher, are you ready?

Mr.

Gray, are you ready?

Yeah, I'm ready.

All right, Council, let's get the work.

We'll go ahead and open this special meeting that's called today to uh review more of the budget.

Um I need a motion uh to approve the agenda.

So moved by Mr.

Creel.

I'll second.

Seconded by Mr.

Gray.

Any discussion?

All in favor.

Those opposed.

Motion carries.

Mayor's report.

There we go.

Uh we're gonna run over public works and uh water and sewer today.

Were there anything else you want to do, Council President?

All right, no mayor's report though, no formal mayor's report yet.

Okay, we'll get to the uh the policy agenda in a minute.

Uh council reports, no.

Any council report?

Yeah, yeah.

Mr.

Tuesday.

Do you have something you want to say, James?

Go ahead.

You go first.

Mr.

Crew.

Yeah, just real quick.

I know you had made reference to our previous meeting, but uh I'd got several phone calls over the weekend just about the brown grass.

I don't think we're spraying is it roundup or something?

Herbicide or something.

It's just a lot of concern over the dead grass as opposed to the edging and weed eating, just to raise concern with that.

That was all.

Thank you.

Mr.

Tuesday.

Uh yes.

With the installation of the new traffic light to that uh to the Gulf Coast Community College on Pass Road.

On the north side, you have uh Westview Drive, ingress and egress for the western part of Edgewater states, and then on the east side of Goose Point, you have fair fairway, fair fair view drive, which has a sign that says please something like do not block intersection because the traffic stacks up at that Eisenhower light at Pass Road.

The same thing is occurring as as was anticipated there with the new community college road.

And if we could get two more of those, do not block intersection signs, one at Westview Drive, as you approach West West View Drive, so motors can see that in the westbound lane, and then the other at Lakeview.

Lakeview Drive, I believe it is.

As I said, there's one at Fair Bay Fairview Drive.

There's already a sign there.

Then the next next spot where you'd need a sign is the very next road, which is Lakeview.

And then on the other side of Goose Point, you have Westview.

That would help, but because the people coming out, A, uh, they often have to wait just to turn right and enter traffic on Pass Road.

And less safe is if they're trying to get out and turn left when that traffic stacks up.

That's kind of a safety issue.

But it if we could get those signs up, it might help those folks get in and out and at least because it aids folks trying to turn down those roads too when the traffic stacked up.

That's all I got.

We turn those over to the police and also with public works.

They're putting those through the process at this point in time.

All right, thank you.

That's all I have.

Thank you, Mr.

President.

Thank you, Mr.

Tisdale.

Mr.

Schumacher.

No report.

Okay, the only thing I'd like is uh I know there's uh another little pause in the dredging.

If I could ask Ms.

Lobata to come up and just give a a brief summary of what was to be expected.

This is over in the Brazier Bayou area.

In our Brazier Bayou project, we met with the contractor today just for our our routine meeting.

And he let us know that he's done with all the dredging work from his big barge and he needs to bring his small barge in now.

Right now his small barge is uh doing some other work, so it'll be up to uh he said one to two weeks, but we're we're gonna go ahead and say two weeks max um to bring that in small barge in.

They you will see the residents will see uh hydrographic survey crew back out there.

He's gonna do a kind of intermediate survey just to see where they stand.

So they may see some people out there in the water doing some stuff, but um it'll be about two weeks pause in the dredging while he brings his new barge in from his other job.

Thank you for that update.

Next is uh citizens' comments.

Uh is there anybody out there that wants to make any comments?

There being none.

Citizen comments is now closed.

Uh we'll move on to the policy agenda if the uh clerk could read the subject matter.

Subject matter is to discuss a 2025-2026 municipal budget.

All right.

Uh now if I could ask Mr.

Weaver, um if we can we start with the uh legislative uh budget first and then we'll go into uh I think on the agenda is water and sewer.

Is that one of them?

And then the other one is public works.

Okay.

That that'll be the topics.

Uh we still have a lot of time today, council.

Uh we got we don't have a lot of time left to get this budget uh going.

We're running out of days, so if we want to swing around and and tackle some issues, I'll I'll ask for that uh after we conclude these three reviews.

So we'll start with the legislative budget.

Yep.

Kerry.

I do.

Why don't you give us a brief?

Well, what would you like to know?

Hang on.

Just hit some of the variances uh as you see it in the legislative and and kind of give an explanation.

Um the one big change we made is where I asked for the accounting auditing auditing and consulting monies to be moved.

Um Diana and them take care of the that, so I asked for that to be pulled out of our budget so they can pay for it because they work with that audit, not me.

So I asked for that to be removed.

So that's 1299.

That's I asked to be removed.

We moved it over to the executive.

I'm sorry, admin.

Uh the cost of the audit, we moved that over to the admin budget.

And we moved it from the legislative budget.

That's that's where you see that change.

Okay.

Thank you for that.

Any other balance?

Um, yes, and the postage postage has gone up again in July of 2025.

So we increased that to 8500 to allow at least one board meeting per council member per year.

So that's 8500.

And we did um a small increase in uniforms to get more shirts.

And I decreased advertising because we go with the smaller newspaper.

Machinery equipment.

I did reduce conventions and conferences because we did not use all the money last year, so I down that to 8700.

And that's about it.

Thank you, Carrie, for the uh overview.

Does anyone have any specific items they'd like to uh discuss?

I'll start with Mr.

Shoemaker.

I don't.

All right, Mr.

Gray.

I have none from right now.

All right, Mr.

Tisdale.

I really have a broader question and it deals with increased costs, but I'll I'll ask Diana a few questions later on.

Not not right here, so we can get through these departments.

No biggie, just thank you.

All right, Mr.

Marshall.

Any items on the council report?

Uh yeah.

Uh I just out of curiosity, as far as the um memberships.

Well what will normally be in the membership?

We we had memberships to certain things back in the day.

I'm not real sure because we haven't used it in forever.

So in other words, if we say uh membership will be to an example of maybe MML, but there's no membership fee to MML, it's just a conference fee.

But that's not a membership, it goes through conventions and conferences, the MML fee.

Carrie, we do pay an amount to MML and it comes out of the executive budget, but I think it covers the whole city.

Oh, to MML.

I was not aware of that.

Okay.

Okay.

What about for the um do we do anything as far as finding as far as paying for membership into like the uh chambers or anything like that?

Those groups.

I'm not aware of any chamber membership.

Do they require or do I ask us anything like that?

Not to my knowledge.

I think if if I might, I mean, I I get notifications for things.

Uh, but I'm a past member.

I'm on the board of the Biloxi Bay Area Chamber of Commerce, but I think the Gulf Coast Chamber of Commerce, maybe it's an honorary thing.

I think we all get invitations.

I would assume we do for ribbon cuttings.

Right.

I get invitations, but um, but I don't know if we're members that I guess an answer.

Wouldn't that be something that we would want to look into, maybe as far as the council members are?

Become more active in developing things like that.

I know we're honorary members of both chambers, the coast and the Biloxi Bay Chamber.

I can ask Tina.

All right.

And Mr.

Marshall, by the way, uh believe we have a Biloxi Bay Area Chamber board meeting today.

I'll be there at five o'clock if you want to come in and sit by me.

Come on.

Why are you going to so many meetings, man?

How do you find the time?

Well, if you stay home, you have to do stuff.

Love my wife.

Thank you.

I'm good.

Five o'clock.

Mr.

Crew.

No questions.

Mr.

Neil.

I have none.

I think the council report was a pretty quick overview, and there's not any major changes.

So we'll move on to the uh next topic.

Which one you want to cover, Mr.

Weaver.

Which one you want to jump into?

Let's do the uh water and sewer.

And if I uh I have a request, if we can go through it about as quick as we did that one, I would appreciate it.

Sure.

Just want to remind everyone uh that water and sewer is an enterprise fund.

So any revenues that are generated or spent into this fund.

So just keep that in mind as you're reviewing it.

Go ahead, Mr.

Weaver.

And on this, of course, you know uh Councilman Glavin, that we're in that process till 2027 with a three percent raise on the billing, water billing and tour annually.

That was approved, I think in 24, and it's good until 27.

So in 27, we'll have to take a look.

I think you usually do it for four to five years when y'all approve those.

So that will be coming to effect as well, too.

So you'll see some increase in that about three percent.

The question about that.

So as that's phased in, and we've done that pretty much every four years for the last I think couple of terms.

Um are we uh is the revenue exceeding the expenses?

I would assume that it is, or is our revenue relatively flat?

Oh, we since it's a bus a business type, are we making a profit or are we losing money?

What's the we have been expending uh dollars on capital outlay buying equipment and whatnot?

Right.

So that has eaten a little bit into the profit.

Um we will lose the we'll lose fund balance again this year.

So no, the three percent is not enough to maintain the expenses we have been experiencing.

Okay.

And if if I recall correctly, not many none of you were on the board except for Kenny and I now, but originally, and Christy, you may remember this, as I recall at one point we were sucking money out of the general fund to the tune of about a million a year.

Or a million and a half a year.

So that was yeoman's work to change the water rates, and I just want to be sure we're we're we need to be making money as any business would.

Would it would it be prudent to whatever the schedule increases uh for uh that's scheduled to take effect October 1st?

Um any thoughts on should we increase that?

And if so, how much at this point?

It's just I hate for us to just dig our hole a little deeper each year, and then three or four years from now, we're we're you know, our fund balance is gone.

I understand, and uh we currently are looking at several different options on there.

So for me to tell you one way or another, Councilman Tisdale right now, I would be misspeaking from that.

But let's go ahead and get through this process, and then once we're able to do a deep dive on some of the issues that Mr.

Foreman and I have already taken a look at along with Ms.

Lavata, I think that's gonna help increase some of the funding on there.

And if we need to come back to you at that point in time, we will.

But currently, right now, I would request just a little extra time to make that determination.

Sure.

Uh no, I I understand that.

So you're aware, and everybody's looking at it.

And once we get through this budgeting process, we'll be looking at whether to increase something above and beyond what's what the scheduled increase is October 1st.

We'll just check and see.

Well, and another thing that we may want to take a look at is different parts and pieces, because we may not just want to look wholeheartedly at just the water rates or the water and sewer rates.

We may want to go back in and let's take a look at some of the TAP, some of the other things that we're doing.

Are we in line with those?

And that's what we're doing right now, is taking a look across the board.

Are we in line with everyone else that we're looking at the termination fees, all of those things that add up to that?

Okay.

Those will be the things that I'll ask a little leniency on right now for us to be able to come back to y'all and report and say, hey, our recommendation from the executive branch would be this.

Okay.

That's fine.

Fair enough.

Thank you, sir.

Thank you.

Uh anyone else want to speak on any of these.

So we are at this point.

What I'm hearing is that we're spending more than we're taking in.

Based upon some of the repairs and the capital investments that we're doing, yes, sir.

Now to tell you how much?

That's what I need to know.

It's about a million.

About a million dollars this year.

Okay.

So any rating.

So we'll have 3.2 to start the year out.

So I understand a million dollars is a lot of money.

That's where I also need a little leniency as far as let's determine which way we want to go.

Because I don't want to make a haste decision or provide you with hasty information that then will not actually do what we need to do.

So we're going to have to cover the million dollar shortage.

Not necessarily.

So to tell you that we're going to be a million dollar short, that's an assumption at this point in time.

So I don't think we'll end up being a million dollars short on there.

But I come back to you later on and ask you, let's re-evaluate the different fees.

That will probably be something once I get with the mayor, we'll take a look at those and then get back with y'all on there.

But I can't tell you right now that we're going to be a million dollars short because we have multiple other things that we're already doing to take care of some of that shortages.

Right now, we're a million dollars short.

Based off of an assumption, I can't base anything off assumptions, but what I can tell you is exactly what I just stated.

So if you want to go with a million dollar shortage, then yes, sir.

I'll go with that and we'll lock it in.

But if you're saying, Rick, what is the actual number that we're going to be short?

I can't tell you that number right now.

Okay.

What is your best estimate right now?

My best estimate probably be a million dollars, but we also invested in some generators two years ago that we are still due money from the FEMA for that.

So that's about 600,000.

That's outstanding that will help reduce that amount as well.

So there's a lot of pieces that come into play.

Um I'm trying to think if there's anything else.

We've also had an increase in water meters to get the power levels back to where they need to be for the new houses being built, and they're not cheap.

And we may not have that level next year, or we may.

I mean, those are some things that are still being reviewed.

All right, thank you.

Mr.

Quer?

On the uh when when we have a repair, do we do it ourselves in-house, or do we sub it out?

I mean, because that that don't take much to run it up.

You get a crew out there over the weekend trying to fix a 12 to 24-inch water main that busting.

That's going to depend upon what type of repair we're looking at as well, Mr.

Gray.

So to tell you what I can ask Tracy to come up and tell you what we can fix and what we can't fix, if that would be beneficial.

Right.

No, I mean, because I mean a million dollars, you have, I mean, I don't know how many mains we have bust throughout the year.

I mean, it could be that's where a lot of our money is going also to repairs and you know, big city, older pipes that we have.

I mean, everything's everything's up right now, so that could be a thing we may want to look into.

Repairs goes into public works expense, so am I correct on that?

Or and then the capital water and sewer handles.

It goes into which which account on here does it go into water production sewer division?

Okay.

I see it.

Thank you.

Quick question.

The under the um water production, the the negative 322, but that's that's a big amount.

Just just to update what line item are you?

Just on the front page where water production you you got a decrease of 322,000 416.

Oh 327.

Jamie, hold on.

A lot of accounts make that up.

Yeah, yeah, but a lot of numbers make that up.

Oh, okay.

All right.

It's mainly the split in the insurance premiums.

Okay.

Because we have to bill out to the enterprise funds.

About 300,000 of it comes from that alone.

Perfect.

Thank you.

Mr.

Schumacher, just two questions.

On the sewer division, it says uh there's an increase this year of 170,000, and on the sewage plants, an increase of 145,000.

Hold on.

I'm not certain where it is.

The 145 is our contract with HCUA.

It had an increase this year as well, and that is the only item that is reflected in there.

The 170 is all the 40653 accounts on the next several pages that account for that 170,000.

Okay, and the 145 you said is just the increase from Harrison County.

Okay, good.

Thank you.

Mr.

Neil.

Yes, only um 4652 repairs.

What's the M and E machinery and equipment?

Well, that's just repairs on all that.

Right.

All right, thank you.

All right.

So we we basically start out in the enterprise fund having I'm not gonna call it a surplus, but we have a balance of around three million.

Is that what you're said earlier?

And we may have to dip into that three million.

We're not going into the general fund, we would dip into that right balance in the enterprise fund if we do have a deficit.

When we add users, when we add houses and users, that starts to reduce certain cost, does it not?

Well, it it can increase cost with the water meters.

Um water meters say they again increase revenue.

Right, it will increase.

I I will I will let them speak more to that than me.

Okay.

Is that a pass through the water meters?

It's just that we have to have a certain inventory on hand so we can respond when we have houses that are built and need that, but is the expense of a water meter a pass through?

In other words, our cost is passed on to the house or the new resident.

I'm gonna ask you to repeat that.

We need to get that when they set up an account, then they pay for every every part that goes into the meter box to engage the box.

So we incur the expense up front, up front, and then eventually we're based on the new meters, then we recoup recoup that expense.

So we don't know there's a cost because we got to maintain a maybe a larger inventory as our population and new houses are being built and housing is being built.

Um we take a look at ultimately we recoup that.

Um but the the advantage of having increasing users is it starts to decrease that um expense from the Harrison County Utility Authority per house eventually.

Is that correct?

As I understand it, so that should be lowered, it shouldn't stay the same expense.

That's what I've been told in the past.

Is that not correct, or do we know that answer?

I'll let you no, we usually we'll get a budget from them, and it's based upon usage and throughput.

And then we'll take that throughput and then pass that along residents.

Okay.

Anyone else?

All right.

We'll move on to the next subject.

Currently, right now, I'm still the temporary director on that, so we're currently saving that salary as we roll through.

We do have some vacancies in there that we're holding off on currently.

And what questions can we answer for you?

All right, I'll I'm going to start on this Mr.

Gray.

You have any questions?

No, skip maybe.

You come back, Mr.

Schumacher.

Just um I guess on the uh No, I don't have any questions right now.

I'm sorry.

All right.

Mr.

Marshall.

Come back to me.

Mr.

Tuesday.

Um, I know that we have a high vacancy rate in positions uh in public works.

And just based on the information I have about at any given point about 15 percent of the positions are vacant.

Does is that accurate?

I I know y'all don't count noses every morning, but would that be about accurate?

And I and I'm thinking roughly the the amount of money that was budgeted but unspent, just a quick calculation, Diane.

I could be off by ways here, but I'm looking at about 650,000.

I think that's a little more than I calculated.

Okay, and it may be.

I'm just at a quick thing.

It may be 550, it could be 100,000 less than that.

But my point being that there's there's money that we're budgeting for that's not being expended.

And but more importantly, there's a task that public work has to public works has to do every day, and it's it's manpower intensive, and they just I mean, with 15 percent of your 10, 15 percent of your workforce not showing up or not available, uh there's really no way you can catch up, much less get ahead.

Would that be an accurate statement?

I'm sure in in a in a city this size.

Um right, and uh uh for some reason I'm thinking the number that comes to mind is about maybe about sixty-one folks in public works these days.

Between sixty and sixty-five.

Would that be accurate roughly?

Or do you know?

Do you have a fee?

Just for public works.

That's about a good number.

I would say that's about accurate.

Yeah, I the last number I looked at was like sixty-one, and that's my number.

It didn't come from the administration, uh, other than the report I get from HR.

I I think people would be surprised to learn that in public works there are sixty-one people working hard to keep things going in the city.

That's a that's a tough job.

That's a big demand on 61 folks.

Uh with particularly with the aging infrastructure that we have.

But anyway, that's all.

I just I just wanted to make that point.

Um we need manpower.

Uh we've got the money budgeted to to be spent for manpower.

We just need bodies to come to work in the city of Biloxi and help get things done.

Many hands make light work, and when you're short, when you're short people, when you're short bodies, that means everybody's got more to do.

And usually you run out of hours during the day before you run out of people, but it's tough when you're running out of both.

That's all.

Thank you.

Thank you, Mr.

Neal.

I got something.

Yeah, on this uh on the street sweepers.

Um y'all sweeping a sweep streets right now with them.

I haven't seen one operating lately.

They have a contract, they come out at night usually, and uh sweep, they're set up uh on uh certain streets, and if somebody calls in and request, then they'll they just add the street to what they're doing.

I just take one straight away and add a straight.

So that's 75,000.

That's just in case we need them.

We do as I know they're still going out and sweeping.

Our expenses are vary anywhere from 55 to 60,000 a year.

Um, and then they'll do special pieces every now and again at the request of the city or the council, and that's where the extra 75 comes in.

But for the past couple of years, it's been anywhere from 55 to 60.

They must do late night.

They do at night.

Right.

Okay, thank you.

Mr.

Tuesday, you want to comment on that?

Yeah, uh just I could help you a little bit on the street sweep or whatever we budget.

We we've never spent that much, but I know that there are certain roads, boulevards, streets, whatever that the mayor wants swept periodically every month, maybe once a month or every quarter or whatever.

But as council members, you can always submit a road or two or 17 or whatever to the lady sitting right next to uh Christy.

What is your name?

I have three Johnson.

Oh.

Oh, John does.

Okay.

It used well, it used to be the old breed, the new breed now has the new John doing it in engineering.

But you you can make requests, just uh email them to John to John, and he'll add it to the list.

Um it would be and and I think that information is posted on the city's website at the beginning of each month or shortly thereafter.

So yeah, you have access to that.

So if you have uh and it also keeps whatever is swept up, keeps it out of the drains, which makes life a little easier in public works, not much, but a little bit.

Go ahead, Chris.

Tracy was saying that the street sweeper has to has been a road with curb.

It won't sweep a road that does not have a curb.

That's correct.

The brushes have nothing to push against.

Um there's no truth to the rumor that Elvis drives the street sweeper.

It's absolutely no proof to that, but it is true that they come around at night to sweep everything.

Thank you.

Thank you.

Go back to Mr.

Marshall.

You got anything, Mr.

Marshall?

Passing Mr.

Wayne.

Mr.

Wayne.

Yeah, I I got a couple questions.

How many people y'all say work for the city?

I mean, for public works.

About 61.

Here showing 72.

That's we got we got over and the and the the mayor give me a list of the uh vehicles.

We got over 101 vehicles, and only 70 71 people.

And that's a lot of vehicles to be having with only 71 people.

I mean, I maybe that's the way we can minimize some of the the gas, and you know, looking at it that way.

And and I'm sure all of them vehicles ain't on there.

Um those vehicles may be like dump trucks or things like that too.

No, ma'am.

No, ma'am.

That's just the vehicles, the the trucks, the vehicles, you know, cars or SUVs of what we have.

And that that's what I counted.

Uh I think Parks and Rex had like 31, 32 vehicles.

So I mean, if we got a hundred more cars, I that's a lot for only seventy-two people.

Yes, maybe that's something else to look at.

Some of them may be inoperable.

A couple other things.

A lot of them sit at the garage.

Get to my paper.

And on the street sweepers, anyway, we can get a list of the roads that they do do.

I mean, because I know over in the the Saint area over there, whatever by calls it, the Saint neighborhood, St.

John, St.

George, them roads have not been swept in a long time.

And everything's going right into the drainage.

So I mean, they can get through there.

I mean, that that would be a big help, but I'm sure we all have some in there.

Um, I know I brought up to Mr.

Weaver about getting the uh stadium vaccine going back of the ATVs, the side-by-sides, that would be a big help for us if they're feasible, it would be something for us to look into.

Because if we got them, then we can put one man picking up trash and picking up leaves up.

That would be a big help, and you know, keep the drainage out also.

One other thing find my paper.

On the machinery equipment, the direct purchase.

We're looking at we we're gonna decrease it.

We're not buying any.

I know we have 2,025, 970, 778, and then 2026 only be 362 500.

Uh 608,278 dollars that we we're gonna decrease.

No, sir.

We're taking a look from here, and remember we discussed it, and we're looking possibly at either uh doing a bond or doing some leasing, and that will at least will decrease in that from the budget type side instead of outright purchasing at one year.

Right.

The things that we're taking a look at right now.

So we're really not decreasing anything.

We're trying to make sure that we have what we need, but we're also looking at different venues that we'll be able to bring to y'all as well, too.

Right.

That's all I have.

Thank you.

Anyone else?

Shoemaker?

Just a couple of things.

Okay.

Um 6830, account number 6830, machinery equipment transportation.

There's an increase of 93,000 this year.

Well, it's right.

It's right below it.

There's 93 budgeted for fiscal year 25, and there's 740 budgeted for next year.

Um we're still looking at whether things will be moved to the bond or to a capital lease or capital purchase.

Um, some of those items included in there are like big trucks that costs maybe 300,000.

But that's for us purchasing them or leasing those.

That this number right here reflects us purchasing it.

That's just purchasable.

Okay, okay.

And that's something we may have planned.

Right.

Well we'll purchase all of them, but the one we'll finance them over their useful life.

Right.

Okay, thank you.

Oh the increase on 6494.

There's electricity.

And just the it's like I don't know, almost 70,000 increase.

Is that just from the new building?

I'm assuming.

No, that has to do with adding street lights throughout the town as well as handling the bridge.

Oh, okay.

Okay.

I'm guilty of some of that for sure.

Street lights.

Um every every time we add a streetlight, it's almost like 15 a month.

Okay.

Okay, thank you.

And I think I've got one last question on the building maintenance.

6602.

Well, my apologies, then there's no number listed out beside it.

It's on that sheet that doesn't have any numbers listed out.

Front page.

On the front, very front page we have.

Maybe the summary sheet.

Property management.

Under property management division, I'm sorry, building maintenance.

Um the increase.

Right now, the budget includes six new positions that we're looking to bring some work in-house to stop outsourcing it, and we're still evaluating that to determine what can be removed from operating expenses that will be here.

But we still haven't made a determination yet if those six positions will stay in there or not.

Okay.

But right now they're included.

It's two plumbing positions, two HVAC, and two electrical.

Okay, fantastic.

Thank you.

You're awkward.

That's all I have.

Mr.

Marsh, are you ready yet?

Oh, yeah.

Um machinery, equipment, transportation.

I don't ever understand how.

Yes, sir.

That was exactly what we just got through talking about.

Was if we buy the equipment this year, that's what the expense will be.

So we removed it on one and we added it there.

So if we go into a capital lease, then we'll do it over finance it over time and pay it that way.

But if we have to purchase it at one time, that's the increase there.

Okay.

The I'm missing something then.

I see machinery equipment direct purchase.

Did I see machine equipment transportation?

Am I missing it?

Am I hearing it right?

Uh anything under transportation is a vehicle.

Okay.

Or an ATV.

Under the 6800, it could be all tractor, uh lawnmower, um, some type of computer equipment.

Okay.

So we're going to probably save money by doing what you say.

You have to repeat that again.

You say the way we purchase it is through leasing, how is that going to save money?

You think of?

I'm going to save money.

What it will do is it'll spread it out instead of having a one-time expense.

You pay that over multiple years, the life of that equipment.

And so from the budgeting standpoint, that's what we're trying to take a look at.

I've got to get this budget down as low as we possibly can to make sure that we're trying to match up expenses and revenues.

But I've still got to be able to provide transportation, machinery, everything else.

So what are some outside the box thinking that we're trying to take a look at?

And those are the things that we're looking at.

Same thing as we talked and we discussed even more with like the HVACs or air conditioners or chillers and all of those things as well, too.

We have a lot of roof and roof issues on different facilities that y'all know of as well.

So those are going to be things that we're looking to finance over multiple years instead of just taking that bite one time and that affecting that budget.

All right.

Good.

Okay.

Got a couple of questions.

Uh sanitation services looks like an increase over the previous budget of 273,000.

Uh why is that?

That is our HCUA contract, and we also pass that along to our citizens, and I believe it's on next week's agenda.

There will be a um resolution presented to increase the amount to $25.50 per household.

We're passing it to our citizens through which account?

Garbage.

It appears on your water bill, but it comes the water bill trans the water department collects it, but it gets transferred to the general fund.

Okay.

So this will be a pass-through ultimately, it's a pass-through.

Well, some things are our responsibility.

Um dumpsters are also included in that number, and we actually allocate millage to catch the shortfall on that.

So I'm going to ask a related question.

So if this is the increase in the expenses and we're passing it through to the uh residents, did we add it to a revenue line in our revenue?

It's been added.

This this has been added.

Okay, just just making sure.

Um other cost and services, other com sorry, other contracted services, an increase of about almost 80,000.

6649.

Are you answering that?

You you can handle it.

Express services that's doing all the extra weed eating and lawn mowing costs between 45 to 57,000 a month.

We didn't start off with them in the beginning of the fiscal year for fiscal year 25.

But if we're planning to continue to use them through fiscal year 26, then that's where that expense came from.

Okay.

Is that enough?

Is that enough?

Did we budget enough?

Yeah, I don't think so.

I I agree with you.

I think we need to spend a little bit more in that area to get the results.

I think everybody wants, and I you gotta fit the round peg in the square hole at the end of the day.

Um Kenny, typically, if this account runs short, we will do a budget amendment transferred from payroll for the bodies that were missing to do the job to offset the expense.

Okay.

All right, fair enough.

Um we talked about electricity.

I'm gonna switch gears to the electrical that's an increase over the budget last year, 91500 is what is that related to the additional electrical expense?

That is to fix the lights on the bay branch, correct?

For the Bullet C Bay Bridge and Okay.

That's all I have.

Gentlemen, anything else?

Just on the express services.

So that's just people, that's just manpower.

That's there's other stuff in that account.

Sometimes patch and replace outsource items like DNA underground.

There's a lot of items in there.

It's just not temp labor.

Okay.

All right.

I was making sure I'm in the wrong business.

Yeah, no, there's a lot of stuff in there.

All right.

Um, do we want to tackle anything else?

Isn't coming to the point of the agenda?

Y'all want to go into anything else?

Do you all want to try to drill down?

Are y'all ready to discuss any adjustments today?

I like that.

All right, Mr.

Tisdale wants to ask some general questions.

Go ahead, Mr.

Tisdale.

Diane, I know that we've had increased costs, for example, uh personnel cost with uh PERS is increase their contribution.

Would you, and I made a list of other things that that I've heard or wondered about.

One is PERS.

How much just PERS alone with what the state is now requiring contributions about how much of did that add to our payroll cost?

This city, roughly.

Roughly just it doesn't have to be exact.

You have to give me a minute.

Okay.

It's a big file.

No, and that's why I ask, I mean, all these all these other costs come into play.

I'm thinking I heard there's an increase in postage.

We don't spend a ton of money on postage, but we do spend some money, so that cost is going up.

I'm thinking utilities.

I just know that this is the first year we've hit three, had three months with over half a million dollars in uh utilities.

That's gas, electricity, and and so forth, just looking at the docket.

Um so that's that's gone up a little.

Uh uh, and I don't know what the future holds.

Thinking just the cost of vehicles when I started in this role as a councilman, I think you could get a new truck in the low 20s.

And now what we've heard is they're gonna be 60,000 or 70,000.

Uh I know software costs have gone up.

I hadn't been tracking them all, but I tracked a few, and over the years, um that that's added up.

The the cost of water meters, I heard, even though that's a cost that's passed on, still you gotta come up with the money in a timely fashion.

Uh the fuel seems to be relatively stable, but if it goes up a nickel a gallon, that's uh that's a big number for the city.

Then the I'm curious about the tariff impacts, and that's kind of an uncertain market now, but I'm thinking anything that's made in a different country or has components.

I'm not an expert on tariffs, trust me.

I just would think that there's going to be an impact, not just to us, but to anybody who's buying supplies and materials that happen to be made in uh other um countries.

But the the reason I mention all that are these these are costs somewhat beyond our control.

I mean, for example, in Purus, the state says here's what we're gonna do.

It's going up what three percent this year, and it's gonna go up.

It gets up a half a percent.

A half a percent, so it's gonna go up a little each each year, and we've got we've got to come up with those bucks.

And then um just over the over the course of twelve years, inflation being what it is, just if it's pick a figure, if it's a percent and a half a year, usually two percent give or take, but if it's a percent and a half a year, that's eighteen percent.

The cost of every generally the cost of things uh have gone up about eighteen percent.

Um Diana is still calculating it's okay.

320,000, just bingo, so starting this year we're when do we start that?

Did we start that July 1st?

It starts on July 1, and we just did our second increase.

So we're two years in and we have three years to go.

Right.

Okay.

Um the general fund balance to begin 2025, and how much of that fund balance have we burned through this year?

Right now I have it estimated at about 13 million our starting balance.

Okay, for this fiscal year, current 2020.

26.

No, no, for 26.

What what did we start in this fiscal year 25?

Do you know?

Okay.

Um Mr.

Weaver, you had mentioned, you know, matching up the budget expenses and revenue.

How are we matching up right now at this point in time today?

Typically what we have is we always call it a budget hole.

The question is how big is the budget hole?

Do you have an estimate on the I mean, and that's right now we still need to cut probably about two two to three million dollars, is what we're looking at to be on the safe side.

Okay.

And uh so possibly from that Diane and I are gonna be working with the mayor next week intensively on taking a look where we can get those cuts from across the citywide.

Right.

And and I'm thinking in the past, I think maybe we've cut vehicle purchases.

Do you really need vehicles?

And sometimes you do, but not necessarily.

On the other hand, every time we turn around, we're we need more vehicles in the police department because we really don't keep up, I think with I don't know, I always thought of it as crop rotation, a fifth in and a fifth out, roughly, because they're road hard and put up with, as they say.

Um are there places where we can cut expenses?

Do you do you have any thoughts on where we can cut expenses?

Yes, sir.

And without the discussion with the mayor, uh I'm not really open to comfortable talking with that right now.

Right.

I just discussed many things, and what I've already talked to you about is bracing that and taking a look at the leasing program in comparison to what we've been doing as far as purchasing, and also possibly a bond for some of our other facilities, such as the roofs, the uh HVAC, the chiller systems, some of those larger, longer life items.

Any figure or uh uh an estimate or a range of working at right now and uh Christy's getting some prices, so for me to give those to you right now, I I wouldn't know what my plus or minus would be on there.

So prefer just to hold off until the next week or two to be able to give that to you.

All right, so I'm gonna say the M-word.

If we look at a millage increase, I know there's a timeline on publishing.

If we elect uh if we choose to that's gonna be between your your council and the mayor to make that decision.

Right.

But I know that but but my question is I know there's a timeline there, publishing requirements.

Do we know what that date is when we have to have some, should we choose to go that route?

Does anybody have that date?

Peter, do you have a date by any chance?

Got about three weeks.

So in the next for the benefit of the new council members up here, you know, pay it pay attention to everything that's going on.

But I'm I'm also thinking that uh maybe at our next budget meeting, which will be a week from the day following the regularly scheduled council meeting, it might be a good idea to have whatever the mayor's decided in the huddle with his staff.

It might be a good idea that to kind of roll it out so we know where we are and still have time to make a decision on whether or not a millage increase is necessary.

Um that's all that I have.

Thank thank you, Diana.

Thank you, Mr.

Weaver.

I I got a couple of questions I want to follow up on some of Mr.

Tisdale's comments.

Um as it relates to the general uh cut in expenses.

This budget um assumes full employment in all departments.

So in we've never adjusted it um to relate what we theoretically, or not theoretically, what we practically think will be the actual uh numbers.

Because at any any given month we could run as high as 70 or more vacancies.

So I think that's one area.

If you took 50 positions and assume that they're not gonna be filled without the within the year, uh you're you're well close to two million dollars when you count the benefits and everything that's related to it.

So you're getting close to that number if we're willing to put that on here.

Now, if we do achieve full employment, which we would want to do, it's gonna require figuring it out.

It's gonna require a budget amendments to cover the the increased cost.

And we're gonna have to either cut other areas or are we gonna have to um see some improvement in and some revenues that maybe we uh maybe that will come a little in higher than expectations.

But uh certainly um for the 12 years that I've been serving on this council, we've never achieved full employment.

And I don't know uh how we can practically say we would be a hundred percent of of these numbers going forward.

It would be great to see it.

We all try to get there every year, but uh it's generally runs um Mr.

Chisdale, you probably could back this up.

It generally runs anywhere from 40 to more employees uh that are unfilled positions.

Roughly generally, if you looked at about 4 percent of whatever we budget total for salaries, about 4 percent is budgeted but not expended.

That may vary, it could be three and a half or two point seven percent one year, but generally it's between two and a half and four percent.

So I would start there and then we we'd figure out the other I like your lease proposal, Colonel.

I like your lease proposal uh for for equipment and uh I mean some will argue in the long run.

Uh it it may not be beneficial, but hey, we're not in the long run.

We're in today.

And uh, but I like your idea of leasing equipment and vehicles.

So that's all I have.

Mr.

Gray.

Uh one thing for uh public works clear.

Y'all are doing a great job.

So don't let us don't think we're being negative on y'all.

I mean y'all doing everything that we ask y'all to do.

Y'all doing a great job.

We're just trying to figure out all together how to cut budgets, because everybody wants a pay raise.

And the way it's looking, if there's nothing to give, we can't give.

So that's what we're trying to do.

So I mean, y'all guys just hang on there and let's try to get something done, because we all agree y'all need more money.

And but you know, we got to figure out a way to get it for y'all.

That's that's all I just wanted to share that with y'all.

Thank you.

Mr.

Tuesdale.

Yeah, to switch to revenue, Diana, just uh really commenting on the numbers that you gave us just for the benefit of the world that watches these uh workshops.

But in looking in at revenue, total property taxes with what we're proposing or looking at in fiscal year 26.

That's an increase of right at about 5%, maybe a little little more, not much.

And then under licenses and permits, an increase of about three, three and a half percent somewhere in there.

For franchise tax, that's less, it's a third of one percent roughly.

And then total intergovernmental, which includes gaming tax, and the gaming tax we're looking at basically has been flat for the past couple of years and predicted to projected to remain flat.

And then gaming device fees, um, that's gonna be flat for next year, literally no increase.

And then the sales tax rebate, we hear about that every month, and it looks like it's going up, or projected to go up about 400,000, 400,000 dollars, which is a less than a three percent increase.

The total, and there are other revenue streams under this uh heading of total total intergovernmental, but the total of intergovernmental is going up about half of one percent.

Um I'm gonna skip grants because it varies from year to year.

And then uh charges for services is expected to go up around $300,000, about seven percent.

Fines and forfeits, big deal.

And I had a question here in fiscal year 25 this year.

Uh total fines and forfeits were 1.1 million, almost 1.2 million, which is a big number because typically we're around 570.

What accounted for that this year?

Secure X.

Okay.

Right.

Um, right.

Everything was put on pause, might be a better word from what I understand.

So that's what was projected, but that didn't materialize.

Uh so we're back to around 570,000.

That's we're pretty consistent there over the last several years.

And then uh we have rents on some properties, and that's expected to go up about three quarters of one percent.

And uh the only reason I I mention all that is these percentages and numbers, they're not gone up a whole lot.

On the other hand, the costs over the years have just uh I don't know what's the inflation rate, roughly like uh mentioned earlier, maybe two percent, it varies.

And they're there are different uh costs of living tables you use and all that good stuff, but I'll just I'll just leave it there.

So our revenues roughly flat, and if it's up any, it's maybe a cup of coffee or two and not much more.

And yet our expenses continue to rise, uh increase, particularly PERS is a good example.

You have no choice.

Here you go, start paying it.

So that's all.

Thank you.

All right.

Anyone else have anything to add?

Anyone else?

We're not ready to make those adjustments yet.

Do you want to hold off on that?

Or you want to talk about it today?

Any of the departments?

Adjustments.

Do we go back into some of these categories and we can start talking about uh making those cuts, or are y'all not ready for that?

If I could make a suggestion, and then that is like I said, huddled with the mayor and what whatever the administrative team comes up with.

I'm sure you're gonna have some suggestions.

You're much more familiar with the numbers than we are, and you you've got resources there that you can pull into play and discuss with with directors and employee, whoever else you have to speak with.

So uh perhaps uh at our next workshop, maybe you have some recommendations on cuts to make and in addition.

I think we're we're gonna be talking about non-departmentals, right?

That'll be coming up an initial meeting where folks make requests, and then the following meeting, I guess we will have a determination on what we're gonna find.

What we all right let me unpack some things here.

First of all, Kerry, when is the we got to make this final decision on the budget?

What's the last date for it to be approved?

September 9th.

Okay.

September 9th is our deadline.

That's that's ground zero for us.

So we got a lot of work to do from now.

This uh September 9th is coming real fast.

Real fast.

Right, right in the face.

So we gotta ramp it up on the uh non-departmentals.

Uh I want to change that up a little bit this year and uh inform them that they'll have a limited time, not this unlimited time, because we spend on one departmental uh one um uh non-departmental, we'll spend an hour uh up here burning up some time.

So we want to put a clock on it, four minutes sounds reasonable to me, and then we can have a uh questions and then try to wrap it up and get to the next one and see how fast we can wrap that up.

Question on the court departmental.

Is there a is there a deadline for them to submit that or is uh I I don't know.

Have we set a deadline?

What is the deadline for them to submit?

That's what I was wanting to do.

June 30th is the fictitious deadline.

If they get something in, we haven't even reviewed them yet.

So if they get something in, and by the time we get to the non-departmentals, then we've given them leeway, and that's that's been the case.

So we had received an email with the um with the outlines thus far that people have submitted.

Do they update that as they come in?

And if they have, can they resubmit?

Okay, all right.

I have it provided.

Yeah, the letters.

Yeah, that's what I was asking.

Is if as those come in, can we get updates as they trickle in?

Okay.

Okay, great.

Ask her to send you the latest and greatest.

So yeah, yeah.

Okay.

So the message to everybody, uh, we're we're kind of at a little bit of a slow pace here.

We've got to ramp it up.

Uh I was hopeful, you know, today I was expecting maybe we'd go in to you know, circle back around, but if uh the administration could be ready at our next uh meeting, um we we've got to spend a lot of time.

I mean, this might be midnight oil type of stuff, literally, um, so that we can thoroughly get into this.

Uh these have been just reviews of of each of the departments, but we've got to get into the nitty-gritty, start making some hard decisions and tough decisions working with the administration uh so that we can get it done.

So any other closing remarks.

Uh I'm gonna need a motion to uh schedule our next budget workshop.

I need a uh proposal.

I'll make a motion.

All right, Mr.

Browne.

Second.

After the next meeting.

Our next regular meeting you want to do it before or after?

After you want to do it after following our content, after?

Okay.

So on the 19th, is that correct?

1930.

Do I have a second to Mr.

Groys?

Second by Mr.

Tisdale.

Any additional discussion?

By anyone?

All in favor?

Those opposed, motion carries.

Chair entertain a motion to adjourn.

So move moved by Mr.

Tisdale.

Second.

Second by Mr.

Shoemaker.

Any discussion?

All in favor?

Those opposed?

You adjourn.

It went faster than I thought of it.

Okay.

I'm from the military.

You don't want to raise your hand, bother too.