Dunedin City Commission Budget Workshop #2 - August 6, 2025

The City Commission held its second FY2026 Budget Workshop on August 6, 2025, from 9:00 AM to 3:18 PM at City Hall. The workshop covered a follow-up from the first workshop, the Board of Finance annual report, updates on the General Fund, Risk Fund, and Health Fund, the pay plan, PTO policy, and proposed funding for civic partners and non-profit organizations. The meeting concluded with commission direction, including discussion of Mardi Gras.

Public Comments & Testimony

• Linda Ault (Dunedin Youth Guild): Reported that the guild has provided over $500,000 in scholarships and funded nine educational field trips for 490 students in the past year, using the $5,000 award. Concerns about rising transportation costs.
• Steve Beaty (Dunedin History Museum): Stated the funds are "priceless" for the museum, which is expanding and creating mobile exhibits to attract younger residents.
• Cameron Ilan (Dunedin Film Festival Inc.): Expressed appreciation for the first-time grant, which will go toward building a theater for the festival's eighth year.
• Camille Hebting (NAMI Pinellas County): Highlighted that the funding supports a monthly suicide loss support group at the Dunedin Community Center, noting Pinellas County's suicide rate is 20.3 per 100,000 residents, higher than the Florida rate of 16.9 and the national average of 14.1.
• Christina Garcia (Dunedin Cares, Inc.): Reported that the organization fed over 29,000 people and distributed over 619,000 pounds of food in 2024, with 70-80% of recipients being Dunedin residents.
• Steve Beaty (on behalf of Dunedin Cares): Clarified that food insecurity affects various situations and that many community partners donate.
• Susan Glor-Scheib (Tampa Bay Ukulele Society): Requested funds for the 9th Annual Tampa Bay Ukulele Day (March 27-29, 2026), noting the society has over 4,000 members. Funds are earmarked for venue rental and community events.
• Joan McHale (Scottish American Society): Reported that last year's grant supported a Highland Dance Camp and donations of approximately $16,000 for bagpipes, drumming, and dance. Plans include a Heritage Day during Tartan Week.
• Rev. Whitney Burton (Episcopal Church of the Good Shepherd): Described the Pack-a-Sack program providing weekend meals to 135 students weekly across two elementary schools. The program has run for 17 years and is volunteer-run; funds would go directly to food purchases.
• Lindsay T. Marshall (Dunedin Scottish Highlander Band Booster Club): Stated the club supports the instrumental music program at Dunedin High School, which began in the 1960s. The grant would help expand outreach and reduce financial barriers to participation.
• Andrea Nalls (Dunedin Fine Arts Center): Reported serving over 40,000 students and campers, awarding $60,000 in scholarships (85% to Dunedin residents), and launching 30 new classes.
• Vinnie Luisi (City Historian): Announced that 2026 marks the 100th anniversary of the City of Dunedin and the 250th anniversary of America's birth, with the museum planning community-wide celebrations.

Discussion Items

• Follow-up Memo from Budget Workshop #1: Finance Director Les Tyler addressed questions, including clarification that a request for a sustainable transportation position was not for an additional FTE. The Mardi Gras review will not be completed before budget adoption; a new Business Plan Initiative for reviewing special events will start after the new year. The General Fund no-storm scenario shows an available reserve of 17.7% in FY2026 (proposed budget: 15.7%). Storm activity over 4-5 years results in a net expense of $917,000. The FEMA reimbursement for the pier (87.5%) improves the city's position by $632,000 long-term.
• Sailing Center/Boat Club: City Manager Jennifer Bramley reported that a Letter of Interest will be presented on September 4, 2025, proposing a 3-year fundraising period for a new sailing center at the former boat club location. The building will be elevated with space for a public restroom and outdoor shower. The city has approximately $140,000 (including $63,000 from ARPA/General Fund and $29,000 from insurance) already set aside for design and review. The Boat Club will fundraise and build the facility, then turn it over to the city as a publicly owned building.
• Board of Finance Annual Report: Vice Chair Catherine Harvey presented recommendations: balance the budget, increase reserve levels (currently low at 15.7% target), improve carryforward and capital planning (suggesting projects be budgeted in the year of payment, not front-loaded), revisit the lengthy project list, standardize value engineering for projects exceeding budget by 10%, budget for a 3% merit increase (not 3.5%), and have employees absorb half of the health benefit increase (currently budgeted at full 14% increase). Chair Christopher Krampert requested an ex-officio Board of Finance member for the Golf Club advisory board.
• General Fund Update: Tyler highlighted revenue adjustments (assessed value increase adding $74,831, interest earnings up $100,000, half-cent sales tax up $100,000) and expense adjustments (health cost updated from 11% to 14% adding $98,000, risk fund update adding $15,000). The FY2026 available reserve is 15.7%, above the 15% target. The shortfall in outer years is $5.8 million (up from $2.1 million last year), driven by lower property tax revenues, flat/declining other revenues, and increased personnel costs ($1.3 million over 5 years), operating costs ($4.9 million over 5 years due to fleet replacement, sheriff cost increase of $456,000, and property insurance up 9%), and capital projects ($5.4 million over 5 years including Weybridge Woods Bridge Replacement $2.5 million, Fisher League Complex Lights $837,000, and Highlander Aquatic Complex $8.3 million offset by a $7 million loan). The Penny V referendum is now expected in 2028 (not 2027), delaying potential revenue. Tyler outlined a plan to reduce operating costs, review user fees, and consider service reductions. City Manager Bramley emphasized the budget is balanced and without deficit, with a deep investment in critical infrastructure.
• Risk Fund Update: Total FY2026 expenses are approximately $400,000 more than FY2025, due to property/liability claims up 24%, workers' comp claims up 11%, and property insurance premiums up 9%. Director Smalling noted some premiums are still estimates; the 18% figure for property insurance is conservative, expecting closer to 15%. Discussion included the process for named vs. unnamed storms, the role of the Gehring Group (paid a maximum of $95,000 per year for risk consulting), and the total insured value of $100 million based on a schedule of values. Commissioners requested a workshop with Gehring Group representatives to review insurance details.
• Health Fund Update: The FY2026 increase is approximately 14%, driven by medical claims. Senior Benefits Consultant Sean Flemming attributed cost drivers to cancer and diabetes, with medication costs (e.g., oral chemotherapies, GLP-1 drugs) rising 5 to 10 times. The city has stop-loss reinsurance (individual deductible $130,000, proposed increase to $140,000 with $47,438 premium savings). Staff recommended the city absorb the full 15% increase (approximately $48,000), departing from the Board of Finance recommendation for employees to share half. City Manager Bramley argued that absorbing the increase avoids giving and taking away from employees given merit increases, and that the city will communicate the benefit and plan for future years. Commissioners agreed unanimously.
• Pay Plan: Director Smalling proposed increasing the promotional policy from 6% to 10% for the first grade and from 12% to 14% maximum, exclusive of career ladder programs. No new FTEs are added; the golf course requests four additional cart range attendant positions (no fiscal impact). The change in FTE count shown on page 73 (from 415.99 to 430.59) is due to reclassifying variable-on-demand employees working at least 20 hours/week as part-time with prorated benefits. Commissioners requested a clarifying note. Staff also proposed increasing paid parental leave from 6 to 8 weeks, including birth, adoption, and foster care. Commissioners supported the changes.
• PTO Policy: Staff researched a potential Paid Time Off program but noted significant transition costs and potential expense. City Manager Bramley recommended setting the issue aside for at least a couple of years due to the budget deficit. Commissioners agreed to hold off.
• Civic Partners and Aid to Non-Profit Organizations: Staff recommended $222,000 total: $37,000 each for Dunedin Cares, Dunedin Fine Arts Center, and Dunedin History Museum, and $106,000 distributed among 22 non-profits (including 11 new applicants). $5,000 was set aside for future awards. Commissioners expressed support for the recommendations, noting the value of the organizations.
• Mardi Gras Discussion: Commissioners discussed the Chamber of Commerce's proposal for the city to take over the event. Concerns included fiscal constraints, employee workload, and the need for a holistic review of all events. City Manager Bramley committed to a speedy review and will present a timeline. Commissioners emphasized not rushing but also not procrastinating. No decision was made; the review will be brought back.

Key Outcomes

• Consensus direction to approve the Aid to Organizations Subcommittee's recommendations for FY2026 Budget ($222,000 total).
• Consensus direction to absorb the full 15% health insurance premium increase for FY2026.
• Consensus direction to approve the proposed pay plan changes, including the promotional policy update, reclassifications, and increase in paid parental leave to 8 weeks.
• Consensus direction to set aside the PTO policy discussion for at least a couple of years.
• Direction to staff to proceed with the Mardi Gras analysis and report back with a timeline.
• Direction to staff to clarify FTE counts in the budget document for the first public hearing.
• Direction to schedule a workshop with the Gehring Group to review risk and health insurance details.
• The FY2026 Budget will proceed to first reading in September, with a balanced budget and no deficit for the upcoming fiscal year.