This time we'll call in order the special budget meeting of the Clearwater City Council for Tuesday, September fifteenth, twenty twenty-six.

This time we'll move to item two point one on the agenda.

Set final millage up rate of five point eight seven seven three mills for fiscal year twenty twenty-six twenty-seven against non-exempt real and personal property within the City of Clearwater Pass ordinance ninety nine thirty-six-twenty six on first reading.

Good evening, Mayor and Council, Kaylee and Castle, budget director.

This is the first of two public hearings required by Ford of Statute to finalize the fiscal year twenty six twenty-seven operating and capital improvement budget for the benefit of residents present and watching.

For the benefit of residents present and watching, I have a presentation which gives a full overview of the budget you are approving.

The fiscal year 26-27 proposed budget for all city funds is 800 million two thousand four hundred and seventy-six dollars.

Our operating funds and special revenue funds are $609,571,576 of this total, and the capital improvement funds are budgeted at 190 million four hundred forty thousand nine hundred dollars.

In total, this represents a five percent increase from the current year, fiscal year 26 amended budget.

This slide further breaks out that last slide, the operating portion by fund type.

The general fund budget for fiscal year 27 reflects a 3% increase from the current year's amended budget, and of a few slides that will further discuss the general fund budget later in this presentation.

The utility funds total includes the budget for water and sewer, stormwater, gas, and solid waste and recycling operations.

In total, it's a 4% decrease from the fiscal year 26 amended budget.

The enterprise fund total includes the budget for the operations of the beach marina, the air park, the Clearwater Harbor Marina, and parking.

It is a 13% increase over the current year's amended budget, and this increase is mostly related to the full operations of the beach marina that are budgeted next year.

We've had some the construction years, and the budget was a little lower for the beach marina.

The internal service funds include the budget for information technology, utility customer service, building and maintenance, and fleet and radio communications, and also the central insurance fund, which supports the operations of risk management, employee benefits, and the employee health clinic.

It also includes the budget for all city insurances.

The budget in total for internal services is a 6% increase from the current year's amended budget.

Special revenue funds reflect a 23% increase from the current year, and this is primarily due to changes in penny for Penellis project funding.

And of course, capital funds are a 15% increase from the current year, and I have another slide that'll discuss that also later in this presentation.

This chart represents the change in uh taxable property values over the last 11 years.

Our 2026 preliminary values received from the Pinellas County property appraiser reflect an increase in property values of approximately 2.5% from 19.2 billion in 2025 to 19.7 billion.

In July, you approved the tentative millage rate for this year.

Uh that rate is 5.8773 mills.

Um the rolledback rate that you approved, which is 5.8773 mills.

And just a reminder what the rollback rate is, it's the millage rate that will provide the city with the same property tax revenue as was received in the prior year.

Using that rate, that proposed rate that you approved, property tax revenues are projected to be 110.8 million for fiscal year 27.

This represents an increase of approximately 1.6 million or 1.5% from the fiscal year 26 amended budget.

Of the 110.8 million projected, approximately 105.5 million will support general fund operations, and 5.3 million dollars is uh represents the road millage, which we set aside for the maintenance of city streets.

Revenues that support general fund operations reflect in total a 3% increase in comparison to the current year as discussed on the previous slide.

Our advalorum revenues are projected at 105.5 million, which is a 2% increase over the current year, and this revenue source represents approximately 46% of the total general fund.

Utility taxes and franchise fees combined account for 15% of total.

The category of other taxes includes business tax receipts and communications services taxes.

Intergovernmental revenues include sales tax, state revenue sharing, fire and EMS reimbursements, and other local funding and reimbursement revenues.

The budget for intergovernmental revenues are estimated to increase 2% over the current year.

Charges for service revenues represent approximately 9% of total general fund.

This includes fees at rec centers and the peer, as well as service charges between our operating funds.

We're anticipating a 4% increase in that revenue source.

Transfer in revenues include the payment in lieu of taxes from our proprietary funds and transfers for staff and admin costs from this the CRA and our special program funds.

These revenues are approximately 6% of total and are budgeted to increase.

These revenues are approximately 6% of total and are budgeted to increase, I'm sorry, to decrease by 1% in comparison to the current year.

And the all other revenue category accounts for 7% of total.

This includes building permit revenues, fines, interest earnings, and other small miscellaneous revenues.

General fund expenditures in total reflect a 3% increase across all operations in comparison to the current year.

The proposed budget for next year includes all personnel costs and increases in line with approved bargaining contracts.

It includes anticipated insurance increases, all operating expenses necessary to support existing service levels, debt service costs for imagined clearwater bonds, and capital funding for road maintenance and city facility improvement projects.

The police department budget is increased by 6%, which represents increases related to personnel costs related for wages with their contract as well as pension contributions.

The increase of 11% in the fire department is related to personnel costs, which include the addition of nine new medics as approved in their collective bargaining agreement, as well as costs associated with wages and pension increases.

The parks and recreation budget is decreased by 9%, and that's primarily related to reduction in transfers to capital in comparison to the current year.

And the non-department budget includes the cost for minor general expenses, property and liability for all general funds, the property and liability insurance for all general fund departments.

It also includes the transfer to the CRA for the city's share of ad valorem taxes and transfers to the capital fund for ongoing maintenance, all the projects for general government facilities.

This chart represents the total general fund budget by category.

Personnel costs continue to be our largest expense at 62% of total.

This represents funding for 1,172.4% full-time equivalent positions that support all of our general fund departments.

Operating expenditures represent the next largest category at approximately 15% of total.

The internal service represents chargebacks and costs associated with information technology, building and maintenance, fleet risk management, employee and employee benefits.

This represents 10.5% of the total general fund budget.

Interfund transfers is 11% of total.

This represents $17.3 million, which is transferred to the capital fund for repair and replacement costs, and $2.1 million for one-time major facility renovations and road construction projects.