Good morning.

I'm Director John King, Hart Board Chair of Vice Chairman.

Please silence all electronic devices for the duration of the meeting.

Welcome to the July 2026 Board of Directors regular meeting, which is now called to order.

The meeting format is hybrid with board members physically present at the Heart Administrative Offices at 1201 East 7th Street Avenue Florida Conference Room and participating via communication media technology.

Please join me for the Pledge of Allegiance.

And to the Republic for which it stands one nation under God indivisible the Liberty and Justice for all.

Yes, sir.

Um Director Cameron Cepeda.

Present.

Director Hobbs.

Present.

Vice Chair King.

Present.

Director Knight?

Present.

Director MacAlpatrick.

Director McCannick.

Director Miller.

Yeah.

Director Myers indicated she would be absent.

Director Nebrick.

Here.

Director Schiffer indicated he would be absent.

Director Smith.

Here.

Director Vieira.

Director Williams.

Present.

And Director Wolfsol indicated that he would be absent.

You do have a quorum, sir.

Thank you.

Next is public comment.

We will start with a statement from the board counsel, Mr.

Jeff Gibson.

Good morning.

Members of the public have a right to speak on any relevant issue during the public comment process.

However, certain items may be rooted in contract pending legal recourse or prohibited by this board's policy, which prohibits involvement by this board in the normal employer, employer employee relationship between the CEO and any other employee or employee union of heart.

While the public could address those matters, board members are advised not to discuss them during the public uh process.

Thank you, Mr.

Gibson.

The Hart Board of Directors welcomes comments from citizens about any issue or concern.

Your opinions are valued in terms of providing input to the board members when addressing the board comments shall not be directed personally uh against any board member or staff member, but rather directed at the issues.

This provides a mutual respect between board members, staff and the public.

The board has set aside 30 minutes, a 30-minute period for public comments as stated in the HARP board policy 210 uh parens 4A.

Um the chair will call on speakers by name in the order in which they requested to speak and have been received.

When addressing the board, please state your name, speak clearly.

Up to three minutes are allowed for each speaker.

Please refrain from discussing discussions on any matter brought up during public comment until after the public comment has been completed.

Are there any uh public I do not believe there's anybody in the public comment?

Thank you.

All right, moving along.

The next agenda item is approval of the meeting minutes from July 1, 2026, board of directors regular meeting.

Move to approve.

Second.

All in favor?

Can we wait one?

Can we wait one minute until we have one more board member?

Yes.

Thank you.

Uh June 1.

Yes.

Okay.

So uh now assuming we're all ready to vote.

Um in favor say aye.

Aye.

Any opposed?

Aye.

We have one opposed.

Uh the ayes have it.

Meetings are approved.

Minutes are approved.

I think it was a delay.

Okay, uh they're they're approved.

Um next is the consent agenda.

The litigation claims committee meeting on June 1 and joint strategy strategic planning and external relations and finance and audit committee met on June 15 to uh recommend approval of the agenda agenda items 4A through 4E.

Are there any questions for the staff about the consent agenda items?

Second all in favor?

Aye.

Any opposed?

Okay.

Uh the uh consent agenda is approved.

Next, uh the board action items uh for presentation resolution R2026-7-31 certifying the proposed ad valorem tax millage rate for fiscal year 2026.

Ms.

Shirley Shu Hurley, uh Chief Financial Officer.

You are recognized for the purposes of presenting this item.

Good morning, Director King, members of the board, Mr.

Dringwell.

This morning I will present the proposed advalorment tax millage rate for the fiscal year 2027 budget.

The action before the board is to approve the proposed mileage rate for certification to the Hillsworth County property appraiser as required and the Florida choose in mileage process.

Today we will cover the following areas.

First, the authorized historical and the proposed budgeted advalorment revenue.

Second, the mileage information that must be certified to the property appraiser.

Third, the next steps in the choosing mileage process, including the public hearing dates.

Finally, the resolution presented for the board consideration.

This table presented the authorities out of the budgeted revenue for each physical year from fiscal year 2018 through the proposed physical year 2027 budget.

First, the proposed mileage rate remain remains unchanged at 0.5 mils.

Second, the uh amount of the revenue generated by mileage rate depends on the taxable property value certified by Hillsworth County property appraiser each year.

For the physical year 2027, the proposed add of alarm levy is approximately 90.5 million, consistent with authorities' longstanding budget practice, HARTS budgets 95% of the levy.

The results in proposed budgeted at a valor revenue of approximately 86 million.

This represents an increase of approximately 3.1 million over the physical year 2026 budget or 3.7%.

As showing the table, this is the most moderated year over year increase during the period of presented here.

So this is a required choosing mileage comparison, even though the state and mileage rate remains unchanged from previous year.

Certifying the proposed rate of 0.5 mil preserves the board's ability to consider a rate at or below that amount during the September public hearing process.

The timeline from the point includes three principal steps.

Today, July 20th, the board will consider approve the proposed fiscal year 2027 millage rate for certification to the property appraiser.

The property appraiser has certified the taxable values to HART.

Based on those certified values, HART will provide our proposed mileage rate, the rollback rate, and the date, time, the location of the first public hearing to the property appraiser.

On September 8th, the board will hold the first public hearing and consider adopting the tentative fiscal year 2027 millage rate and the tentative budget.

On September 21st, the board will hold a second public and final public hearing and consider adopting a final millage rate and annual budget.

Members of the public are welcome to attend both hearings, and the required notice will be provided in accordance with Florida choosing mileage requirements.

The action before the board is a resolution of Hill Sport Transit Authority of Hillsworth County, Florida certifying the proposed valorum tax village mileage rate to the fiscal year for the physical year 2027 budget.

The proposed millage rate is 0.5 mil, and the staff recommends approved the resolution.

Sir what time is the September 8th hearing?

Is that something that we the board needs to convene?

5 30 p.m.

Okay.

So city council is doing our hearing public hearings to that evening.

So I'm sure two of us won't be here, so that's why.

Any other questions?

We have a hearing on September.

Move for approval.

Second.

Okay.

All in favor?

Aye.

Okay, the ayes have it.

Motion passes.

Thank you, Mr.

Shirley Hugh.

Um, next will be a presentation by Ms.

Shirley Hugh on the uh FY27 revised proposed budget.

Ms.

Shirley Hugh.

Good morning again.

Um July 1st, the board approved a proposed FY27 budget built on the best revenue estimates available at that time.

On July 1st, the property appraiser certified a taxable value and the certified figure came in below that estimates.

This morning I will present what a certified value means for the budget and the adjustment staff has made in response and how the revised proposed budget remains balanced while protecting the service.

Our current writer have today, maintaining our reserve position and continuing our capital investment programs.

So this slides as a summary to show what changed things June 1st.

The July update come down to three main elements.

First, the new information, certified taxable value came in below the JU estimates.

FY27 at alarm revenue is 86 million, which is 1.9 million below the assumption in the June proposal.

So the advalorment revenue is still growing 3.7% over FY26.

It's growing less than early estimate anticipated.

Second, the service decision.

The service frequency enhancement included in June proposal are differed.

The FY27 budget protects the current service level.

Every route, spend and frequency recorders have today, continues.

Third, updated expense estimates.

Several expense lines have been adjusted to reflect the current experience.

Healthcare claims, wage and vacancy experience, and the current fuel prices.

Those adjustments reduce operating expenses by 1.7 million, and the budget also identifies a contingency of approximately 1% of operating expenses, which I will describe in expenses in detail.

The result at the bottom of the slides are balanced the total budget of 193.8 million.

The result at the bottom of the slides, a balanced total budget of 193.8 million, operating expenses grow of 0.8% over FY26, reserves in full compliance with board policy, and a malogy rate at statute cap of 0.5 million mil.

At the military rate of 0.5 mils, the statute maximum under our enabling legislation, the certified levy is 90.5 million, consistent with the board policy.

Hard budget at value revenue at 95% of the levy that produces 86 million.

The June proposal assumed 87.9 million.

The difference is the 1.9 million, and that difference is based for the revision I will present this morning.

Two points of the context.

First, the left bar, FY26 budgeted out of lorum was 82.9 million.

So FY27 still reflects the growth of 3.1 million year over year.

Second, because of the millage is at the stat is at the maximum, the response to the certified value comes through the expenditure side of the budget.

This slide walks operating revenue from the June proposal to the revised figure.

Interest income increased 416,000, reflecting the current 3.5% rate environment, our investment balance, and the streetcar reimbursements increase 242,000, reflecting the wage agreement covering Tempa historical streetcar operations.

Together, those recover about 660,000 of the edible arm reduction.

The revised operating revenue total is uh 132.9 million of a net change of 1.46 million from June.

So this slide showed our response on the service level, we decided to protect FY27's service at current service levels.

What June's proposal included service frequency enhancement supported of financial capacity at earlier revenue estimates provided.

And what this revised proposal does, defer those enhancements and carries current service level into FY27.

What it does not do, it does not reduce an existing route spend or frequency.

The service riders have today is service planned for FY27.

So the enhancements are deferred but not abandoned.

They remain the priority for the next available revenue capacity.

The table shows operating picture.

FY27 revenue hours approximately 740,000 are within about 1% of FY26 projection, which reflects the service actually operating today.

So the FY27 budget is built to current operation.

The budget effect of the service decision is the fair adjustment you saw on the prior slides.

Turning into the operating expenses side from the June proposal at $129.1 million to revised figure for $127.4 million.

The largest adjustment is personnel, down $2.8 million.

And update of estimates to current experience in the three areas, healthcare is adjusted down to adjusted down $1.5 million based on the actual claims and experience.

Wages are adjusted approximately 900,000 and fringe benefits approximately 400,000, both reflecting the current staffing experience.

Legal service contracts, insurance, and marketing areas adjusted downward a combined 380,000, also aligned with current experience.

Two categories increase, fuel and parts increase 230,000 to reflect the current prices, and operation other increase 1.26 million, the majority of which is identified contingency of approximately 1% of operating expenses.

And operation other increase 1.26 million, the majority of which is identified contingency of approximately 1% of operating expenses.

The contingency is disclosed at a stated amount.

So every use leaves a record is reported through our normal processes.

Budget and identified contingency is a recommended practice in public finance.

Staff considers it prudent to do it this year.

The revised FY27 operating budget as a summary is still a balanced budget.

Bring operating revenue and expenses together.

Now we're moving on to the capital budget side.

And it's prudent to classify uh we want to explain why the capital increase the while operating decreased, because the two budgets are funded differently.

Of the 66.4 million, 58.3 million is federal and state grant funding.

So those funds are awarded for specific capital purpose and not uh widely available for day-to-day operations.

The increase since June primarily reflect a prior year, FTA state of good repair grant redirected to heavy maintenance facility projects, along with updated cost of a bus purchase and the streetcar rebuilt in the vehicle category.

So the one category decrease the bus transit infrastructure reflects a technology that have was delivered uh and paid in FY26.

On reserves, uh we'd like to give the board a complete picture, including what totals and what composed of.

The border policy net 60.10 requires an operating reserve equal to 90 days of operating expenditure.

The required is 31.4 millions, and the projected operating reserves on October 1st is 40.9 million, approximately 117 days.

The food table is on the right, and the composition of the 59.1 million in total reserves, 31.4 million in required by board policy.

The local um and the 11.1 million capital match reserve is committed in FY27 to provide the local match on the grant funded capital programs that reserve declines during the year by design because that's the purpose to uh provide the match of the funding.

The self-insurance and the federal liability reserves approximately 7.2 million, are sized annually based on the independent actual report and the cushion above all required requirements is approximately 9.4 million.

Stepping back to the complete budget, the June proposal totaled one, the uh the June proposal totaled 193.4 million.

The revised proposal totaled 193.8 million, a difference is approximately 400,000.

The total is essentially the same budget of the board reviewed six weeks ago.

What changed is composition of operating is 1.7 million lower, reflecting the updated estimates, and the capital is 2.1 million higher, reflect the grant funding available.

Now I'm happy to take board's questions.

Thank you for your presentation.

I think it's quite remarkable how uh you're able to uh level off the route frequency uh for 27 levels for 20 uh 26.

Even though we're looking at a projected 1.5 million uh ridership decrease, if I'm correct, based on the uh CED here.

Slide five.

Um so I just want to commend you on your uh well thought out presentation.

Secondly, I wanted to address slide six here.

Um, for the personnel cost, 2.8 million.

So what's the reason for the uh substantial drop-off in the health care um and then also two with the uh personnel wages as well.

Are you anticipating cuts change in provider?

Um no, because we are self-insured.

The health care claims are based on our best estimates.

And with based on last two years of what really happened, so we adjusted it downwards of our compared to our original estimates.

Okay, thank you.

Director Never Thank you, and thank you for this um overview.

My question isn't meant to go down a rabbit hole, but uh a couple of months ago you uh looked into the differences between Florida Prime and Florida class and some of our other investment um options as it relates to the reserve.

Uh we have 40 million in reserve, roughly 8 million more than the minimum required.

And I just wanted to ask the question to what and I think you you budgeted 3.5 percent.

Um it would be uh helpful to understand what term we have those monies invested and to what extent we can benefit from higher yields, at least on the amount of money that's over our minimum reserves.

Yeah, uh we current return we have with uh Florida Prime is actually 3.8 with some exchanges, 3.84 percent.

And we budget at 3.5 is because we have to budget it in um the rate of fluctuation.

Uh I can't assume the current uh yield will maintain uh the same, so that's why it budgeted at 3.5.

No, and I wouldn't ask you to budget differently than that.

I understand why you budget below what you might be currently yielding.

I think my question is more to the point of um if there's any other active management is the wrong word, but um I know that uh at least with Florida class, there's different vehicles that are available.

Some of those vehicles yield higher than say the daily one, and uh sometimes it can and does make sense to tie up the money for a longer term uh in exchange for a higher yield.

And I think my question is to what extent do we here at heart have an opportunity uh to review those options and to the extent that they are available to us uh according to our policies, are we taking advantage of them?

Yes, I agree.

Thank you for that.

Uh we actually do uh less than a month ago, we just conducted a comprehensive research.

At that time, uh Florida Prime still remained uh uh the best choice at the time.

And we also actively interviewing and talking to other providers of other uh other available um investment opportunity out there.

So the balance of liquidity and safety would be our top concern for that measure.

And just to make sure that I'm being clear, I'm not um asking for uh an effort to change um where it is that we hold our reserve money, and even though I think it's uh proper that we review options and we we select the best one.

I'm simply asking the question that says within whatever vehicle we choose, in this case I believe it's Florida Prime.

I believe they have different um options within that uh program.

Some of those options yield higher versus the daily.

The numbers are big enough that it could make a difference.

You know, it's you know, one percent difference on our yield is a half a million dollars per year, which is not insignificant.

So I just want to surface that question uh to the extent that there's any opportunity there uh within the constraints that we have.

So thank you.

I agree, thank you.

Are there any other questions?

Yeah, uh Ms.

Williams.

Thank you.

Thank you for the presentation.

It was very very good and laid out well.

I just have one question in regards to uh revenue miles on page five.

It looks like we projected 10 million miles initially, and then we're going down to nine million miles.

Can you explain uh what that means to us and if there is an impact to our overall, I guess, algorithm as we relate to dollars that we receive uh going forward in comparison to what PTSA received, and so I want to understand that as well.

Thank you.

Yeah, yeah.

I will start addressed uh what a potential impact related to the formula split, and then the rest of I may defer to uh my colleagues from the planning um discuss further if needed.

Um so the the impact of our split of the uh formula grant is depends on um the allocation of um other agencies right now, for example, as uh PSTA and PASCO and by comparison.

So if we all decrease, then it doesn't uh it doesn't tell us directly what the percentage will decrease from that split.

And so it's still uh based on a competitive position.

And if they continue to grow, or we also grow, but if they grow aggressively, we grow modestly, it will still pack us.

And and to answer your question in a short term, yes, it's possible that would impact that federal funding.

And is what what are we doing differently that costs us to protect lower revenue miles based on the budget than what we saw previously?

Um in June proposal, we proposed an enhanced uh service.

Uh right now we deferred all those sneehounced frequency.

Thank you.

I am a bit concerned that we're intentionally taking steps that could potentially hurt us going forward for the uh based on the formula, not understanding what the plan is for the others, but I understand we can only control what we do, correct?

Yeah, and yet that is a proactive uh management from the um the revenue capacity we have right now.

Thank you.

If there are no further questions, yes, uh Mr.

Chair.

Please go ahead.

I have a follow-on, yes, to uh uh Director Williams.

So I think I want to reframe her question because I think I see where she was going with that.

It wasn't fully addressed the correct way, I believe.

So if we if we look at our our budget comparison of FY26 to 27 is a 3.7 increase in the budget.

However, um, to address Director Williams, yes, we are seeing a reduction in the revenue miles and hours, um, even though we were a projected increase.

So I to her point, yeah, why is there such a drop-off in the revenue mile projection, even though there is an increase in projected revenue at the moment, but along with of the other adjustments that were made uh for allocation purposes?

Yeah, that's a very fair uh challenge there.

Um, if you look at it at a valar revenue alone, um it is still a slight increase, but it was uh current pricing environment, especially the inflation.

Um so we seem this is prudent to have uh reserves cushion, especially when we're facing the at alarm uncertainties.

We will address later in in this meeting.

And so the management believe aware not aggressively increasing services at this time until we have a further clarity on that uh if there are no further questions questions.

Thank you, Ms.

Uh uh Shu Hurley for your presentation.

Mr.

Drainville, you are recognized for this chief executive officer's report.

Uh thank you, Chair, and good morning again, board members.

Uh sign off for some financials on the federal side.

Hart was pleased to welcome lead in lead general engineer Gaying Li of the Federal Transit Administration Region for this past Thursday for a full-day visit focused on Hart's facilities, capital needs, and grant portfolio.

This visit included an executive welcome at Ebor, a tour of the Sri Car operations, and an in-depth tour at the 21st Street Heavy Maintenance Facility, providing Mr.

Lee with a first-hand view of the facilities condition, operational importance, and the future investment needs.

The day concluded with the working session with budget and grants, Director Melanie Williams, the grants administration team, and financial leadership to review current grants, open items, project status, and FTA related questions.

We appreciated Mr.

Lee's engagement and his interest in understanding both the projects and the needs they are intended to address.

Moving on to FDOT and the state, the budget and grants team successfully submitted two FDA discretionary applications under the commuter assistance program or CAP, which supports projects that enhance commuter mobility and reduce single open C vehicle trips.

The first was a BTI digitalization and work order mapping.

The purpose is to replace paper-based work orders with a digital system for managing bus stop and shelter maintenance.

The total cost is 200,000 with a 50 percent match.

And the second was the route maintenance fleet expansion.

Uh purpose to purchase five vehicles to expand route maintenance capacity, enhance Hart's ability to inspect, maintain, and repair bus stops, shelters, transit and transfer centers, and park and ride facilities.

The total is 350,000 with a 50 percent match.

The budget and grants teams also successfully submitted an application to the Uber Transit Innovation Fund.

This application requested 55,000, including a 5,000 local match to support a pilot evaluating evaluating additional on-de and on-demand service models for ADA compliant paratrans and microtransit.

On June 25th, Hart's procurement team in partnership with the disadvantaged business enterprise or DBE department attended the National Institute of Governmental Procurement Trade Show to strengthen industry relationships and promote upcoming contracting opportunities.

Throughout the event, the team met with representatives from leading businesses and suppliers across a variety of industries to discuss current and future procurement opportunities with HART.

These conversations provided valuable insight to innovative products and services while fostering new connections with companies interested in doing business with this agency.

At the Children's Board of Hillsborough County.

The business will learn how to do business with Hart, learn how to obtain small and disadvantaged business certification, learn about upcoming procurement opportunities, and network with local government agencies and more.

On to safety, on Monday, June 22nd, the safety department conducted a joint tabletot exercise.

The Hart team was joined by representatives from the Transportation Security Administration or TSA, emergency management partners, and the key stakeholders from PSCA, St.

Petersburg Police and Fire and Rescue, as well as the U.S.

Coast Guard.

The exercise was designed to evaluate Hart's preparedness response coordination and decision-making capabilities during a simulated transportation security incident.

The scenario focused on a credible threat affecting transit operations and required participants to assess existing plans, policies, communication protocols, and interagency coordination procedures.

Through facilitated discussions, participants examine roles and responsibilities, incident command, structure, resource allocation, public information strategies, operational continuity, and recovery considerations.

And then community engagement.

So the community engagement team continued with some youth presentations, visiting Roy Haynes Park Center on Monday, July 6th, the Montin Luther King Center enrolling park K through eight on Tuesday, July 7th, the Cordelia B.

Hunt Center on Wednesday, July 8th, Apollo Beach Center on Thursday, July 9th, and Emmanuel P.

Johnson Center on Friday, July 10th.

Some of youth presentations continue to be well received by students and staff as they will become more familiar with how public transform transportation benefits the residents in Hillsborough County.

To increase awareness about the recent uh Route 38 frequency approvements, the community engagement team conducted an extensive outreach campaign throughout the corridor, connecting with residents, riders, businesses, and educational institutions.

Staff visited numerous locations and rode the route multiple times, engaging with more than 100 riders directly to answer questions, distribute service information, and gather feedback.

Riders frequently shared their appreciation for the shorter transit wait times and more convenient trips to work, school, and child care.

And that concludes my report.

Thank you.

Are there any questions or comments from the board?

Okay, moving right along.

Um I have a few announcements to make regarding the upcoming board meeting schedule.

Um first, due to the very light agenda for the August 3rd board meeting, taking into consideration staff uh presented uh all budget items uh at this meeting.

We will be canceling the August 3 meeting.

Staff will send cancellation notices later today.

As for the September budget hearings, uh the first budget uh hearing is uh scheduled for September 8th at 5 30 p.m.

The second and final hearing on Monday, September 21 at 5 30.

As you all know, quorum is imperative for us to approve the FY27 budget.

Please review your schedules and communicate to your staff ahead of time if you have any uh unavoidable cut unavoidable conflicts.

Also, uh July is the month that we have to file our ethics uh disclosure forms with the state of Florida Ethics Commission.

If you have not already done so, please attend to that at your earliest opportunity.

That's uh the uh chair's report for today.

Um next, we recognize the uh board counsel for uh his presentation.

Thank you.

Thank you.

Good morning.

I have two items uh this morning.

Number one is uh the CEO's contract, and number two, at the board's request, we have a presentation regarding the uh property tax initiative.

So, first uh the CEO's contract.

Um, Mr.

Drainville's contract expires on in September.

Uh we had previously had discussions about the options that this board has.

Number one is to reopen the negotiation.

Number two is a one-year extension, and number three is a two-year extension.

Uh so I would uh turn it over to the board for discussion on its desire uh in moving forward.

Uh anyone have a uh Mr.

Clarendon.

I motion to extend uh Mr.

Drainville's uh contract by two years with the current section.

All in favor, please say aye.

Aye.

Any opposed?

Passes unanimously.

Congratulations.

May I say something, Mr.

Chair?

Yes, thank you.

No, I I always think that when we when we deal with Mr.

Drainville's contract, it's always good just to uh uh uh just speaking on behalf of my own self just to talk about what a great job I think Mr.

Drainville is doing.

He's a good person, and I I was here during the transition with the the prior uh CEO, and uh and I've seen Mr.

Drainville handle many issues, including in Tallahassee with individual board members and so forth.

And and I and I I I know I don't I think I speak for everybody, but I'm not gonna say that, but I I just think he's doing a great job, and I always just like to encourage him.

He's a good person.

So God bless you.

I think we all agree.

Oh, yes, please.

It's all right.

And a second is not I think we all agree.

All right, moving right along.

Um Mr.

Chair, just for clarity, because uh the item of Mr.

Drainville's contract wasn't on the agenda.

I'm going to ask that it be placed on the agenda for the next board meeting, just as a uh just to be safe, if you will.

We'll take care of it.

Thank you.

And then we can we can vote again.

Uh my second item is we have uh uh Mark uh and Miss McLean um here to discuss the uh property tax initiative, and so I would um I would ask Ms.

McClain uh I'll turn it over to Miss McLean so that she can then move forward on that.

Um at and this is um at the board's request at the last meeting, a more in-depth conversation about what the tax initiative would mean for HARC.

Okay.

Thank you, Jeff.

Uh good morning, uh Mr.

Chair and board members.

Um, as had been requested uh previously, we had a a brief discussion of what uh was coming up with regard to the property tax initiative um during the legislative session, and um uh director Vera asked that we have a more um fully discussion and presentation once it was determined what the legislation was going to be, and we are in that uh position right now.

So we have uh the esteemed Mr.

Mark Delegal, um, who is uh one of our consultants and lobbyists for um uh legislative affairs to do uh a very brief short and um very um well-rounded explanation of where we are, and then we can have further discussion if you would like.

Mark, take it away.

Good morning, and thank you.

Um my job today is to scribe what's on the ballot um and how it changed from the last time we had we got together uh for what the governor proposed, where the litigation uh stands, and what the numbers could mean for heart.

Uh I'm not here to tell the board how to think about the policy, that's the board's call, and ultimately the voters.

So uh just to where we are.

Um the governor announced his plan on May 27th.

There was a special session from June 1st through June 3rd.

The legislature passed a joint resolution on June 2nd.

Um it did not need and did not get a gubernatorial approval.

Um it goes straight to the ballot.

Um it will appear as amendment three on November 3rd.

It needs 60 percent, and it will take effect on January 1 of 2027.

Um there is litigation over this.

Uh I'm gonna go into describe what it does, but just to tell you the the current status, there's litigation, and the litigation um is around the issue of the title of the amendment, which is Save Our Homes from Excessive Property Tax, and then the summary that goes with um the amendment and what will be before the voters when they go into the polls and and read it.

So there have been three lawsuits filed, all of them in Leon County Circuit Court.

They're all they have all been consolidated before Circuit Judge David Frank.

Um the ballot will be on the the amendment will be on the ballot.

Um what is the subject of the litation is the appropriateness of the title and the summary.

So the um notably the one lawsuit was initially filed uh by a group uh out of South Florida.

That same lawyer filed a second lawsuit.

Uh uh I can only uh um speculate as to why he did two.

Um but the I would say the real lawsuit uh uh but they're all together, is filed by former state senator Jeff Brandis from Pinellis County, and um Al Lawson, who's a former United States Congressman and former state senator from Tallahassee.

They're represented by Steve Barannick uh from Tampa, and they've got a co-counsel in Tallahassee who's more of a litigator of Steve and his firm are are are uh appellate lawyers.

The hearing um is gonna be on July 29th in the afternoon.

And again, let me be emphatic about this.

Uh the litigation is not going to throw this thing off the ballot.

What it is going to do is determine whether or not the ballot title and summary are accurate.

What will happen, this is my opinion, but it's it's um what the lawsuit is saying is that it will it was it's about whether it's accurate.

If it is if the judge rules that it is not, it will go to the attorney general and he will have an opportunity to rewrite it and then submit it back to the court, which I suspect is what's probably going to happen.

I've read the lawsuit by Mr.

Baranick's firm and it's quite strong.

And um, but again, this will be on the ballot.

So the governor's proposal, I think when we met last time, he had made his proposal.

It it was adjusted.

Um what he proposed was taking the essentially the 50,000 homestead exemption up to 150 in 2027 and then up to 250 in 2028.

He proposed to apply the exemption across all taxing entities, specifically schools.

The legislature didn't agree with that, and it carved schools out, so they will remain able to tax homestead um as they were before.

There was also what is called a backfill provision.

It created with one sentence a trust fund uh to uh for the state legislature to fund local government core services.

Um that was removed.

Uh doesn't mean they can't the legislature still could do it, but the the constitutional amendment does not mention it anymore.

And then the last thing is there was some language that uh dedicated uh $5.5 million for a promotional leaflet, so to speak, in inside everybody's tax bill, and um that um was removed.

So at the end of the day, here's what the amendment uh does, and just summary, it goes up to 250,000 homestead exemption.

It has a path to full elimination, which essentially says by law, the legislature can grow the size of the exemption.

Um for a special district, that has to be done by referendum to grow it.

Uh the legislature doesn't have the authority to do it uh automatically as to special districts.

There's a non-homestead assessment cap.

So what that is is all non-homestead property, so just think about uh apartment all the way from apartments to to industrial items.

There's a cap, much like save our homes that the the assessed value uh could not go up more than 10% a year on non-homestead, it's 3% for homestead.

That was in the in the amendment, it's reduced to 5% per year.

So it's a limit on growth, not a reduction.

Um let me uh just mention this, and Shirley is best equipped to get into the details, but by my rough calculation, back of the envelope, pretty pretty good walking around sense.

This will have the impact of reducing um the uh Avalworm collections if it passes by about 20% once it takes full effect.

So after and that's a combination of both uh the the um the homestead exemption going to 250, and also the uh suppress growth over time.

So the homestead's probably in the neighborhood of 15 percent, and then the growth is in the neighborhood of five to seven.

So I use 20 just as kind of a walking around number.

Um but again, Shirley will have more details, and she's I've been privy to a to a uh uh uh uh arithmetic uh calculation that she's uh done.

So this is uh the um the one last thing I would say is again I already said it, but just to make sure you know, when the governor came out with his uh proposal, he wanted the exemption to apply to schools, and the legislature didn't agree with that.

Um and you may have seen in the um in the uh uh public the governor has stated that this is not the proposal that he put forward.

He would be voting for it, but but um he um he's not what he asked for them to do.

Um as far as just one other thing, the campaign.

There are some groups out there that have been set up uh to vote no on three uh is is uh one of them, I believe.

Um so they're out there uh looking to campaign.

The governor has said he's not going to campaign for it, he is going to vote for it.

There does not appear to be any organized effort to pass it right now from standpoint of a buck-up uh committee that's set up.

So I'll close by just recapping the hearing to decide the ballot title and summary is on July 29th.

There'll be a ruling the um and then the voters will get a chance to decide on November 3rd.

And I'm happy uh to come back um with an update um uh uh at the next meeting uh after the hearing and tell you what happened there.

You'll probably read it in the newspaper, so you'll see it or get it in many emails.

So that's uh that's where we're at.

Thank you.

Are there any questions?

Yes.

Thank you, Chair.

I like uh CEO to kind of like elaborate a little on how it would pros a con what notice following it.

How would it affect hot?

So I I can say Shelley has prepared like a very high overview of what the financial implications would be.

But I would ask, I would request the board that uh that my staff and I come back to committee with a presentation of what the actual financial impacts would be and what service would look like.

Uh and just if it passes what the actual uh what would happen to higher so any other questions?

Uh Mr.

Willis.

Yes, sir.

Thank you, Mr.

Chairman.

Yeah, and thank you for that.

Uh Mr.

Delegal.

I appreciate your thoughts.

I um, you know, the I if I recall the major issue in the 2022 ballot initiative with the um the sequel to all for transportation was the um uh according to then circuit cut judge uh Mo was the issue of the description of the of the of the what voters are voting on, stating that if I recall um that this will benefit and they and then they set in the battle language certain communities like West Chase Carrollwood, et cetera.

Um and and I guess the idea is that that was poll tested, if you will, and that if you're gonna have a ballot initiative, it's gotta be plain vanilla, no sprinkles.

And when I see something said safer homes, it's a lot of sprinkles, you know.

I mean, you might as well call the ballot initiatives who among us likes ice cream the 4th of July and and firefighters, you know what I mean.

So I I and to see Mr.

Brannick on there, who I have tremendous respect for, he's an amazing appellate attorney.

I've known him for many, many years.

He's a uh a good person as well, along with people like uh uh former judge Chris Altenburn, Rick Asfar and others, one of our best appellate attorneys here in the uh local Tampa area.

Um, and and in terms of you know my views on this, I'm I'm glad that we have transparency on what will happen to local governments uh if this thing would pass, including entities like Hart that are are our main issue when we went up for that full body scan, so to speak, in Tallahassee.

One of the biggest things that our friends in Tallahassee said, and these were uh uh many of our Republican friends stating that we need more revenue, it's a revenue issue.

And so this actually goes to the opposite.

I've always said just from a policy perspective that on property taxes, they take amended, don't end it perspective, which is you know, taking a look at at over three or to five years getting up to a hundred thousand dollars, I'm fine with that.

Uh, and then having an inflation adjustment afterwards.

Uh, and in fact, that does, I think, on not heart, I think heart's different, but like for city at Tampa Hillsborough County local governments, it actually does a good job in forcing us, city council member to rein in things a little bit, right?

Tame our excesses.

But the quarter of a million dollars, man, that's that's stretching a single into a home run, and I hope voters put them out at second.

So that's just my view.

But thank you.

Any other comments or questions?

Uh Mr.

Naby.

I just wanted to um uh uh dovetail on on director Knight's question, and I know that you asked for this to go through committee, and I would support that given opportunity to do some analysis and do a presentation.

Uh and I'm not gonna make a prediction as to whether or not it passes or not, but under the assumption that it does pass and that these um uh financial constraints are uh introduced to our future year budgeting.

Um I would just like to make two statements.

Which is that if it does pass and we do face what could be up to a 20% decrease in our budget now, then it would be incumbent upon us as an agency to be forward-looking and solve some of those problems in terms of how do we maintain service, how do we maintain service to a footprint of people uh efficiently, and how do we adjust our budget so that we're uh not just being draconian in removing 20 percent of the service on the the the portions of the public that need it.

Uh that is part of a much bigger um thought process that I have as it relates to the future of transit um in this region and may maybe outside of this region.

Um and then the other point that I'd like to make, and again uh dovetailing uh on this particular issue, and then going back to our budget um discussion.

Um it is critical, in my opinion, that we um manage uh the yield that we get on our money to the greatest extent possible.

You know, 100,000 here, a million dollars there adds up to real money for heart, and uh we should be vigorous in exploring ways to appropriately uh within our constraints to maximize our yield.

And I uh with with that preamble, I want to say that in addition to the reserves, um, I would ask that um some high level back of the envelope math be done on our operating accounts.

We have cash accounts, our revenue is lumpy.

Some of it comes in in grants, some of it comes in the form of ad ballorant taxes.

Uh the nature of ad ballor m is most of that comes in in January, I believe, after people pay their bills in November to get the four percent discount.

And so I don't have good visibility on it, but I'm with the assumption that we have a large amount of cash uh in January that then depletes through September, and um it's unclear to me to what extent we get yield on that money, and if we don't, we need to find ways to, because that could add a couple million dollars to our interest as well.

So those were the two points, and thank you.

I said Director Hobbes.

Thank you, I appreciate it.

Uh thank you so much, uh Mr.

Delegal, I appreciate you.

And uh quick question.

You may have mentioned it a little bit, but I kind of may have missed it.

Do you know any current polling numbers on the amendment?

And we're currently sitting in the public so um my comment on that is I have not seen a poll held a poll, uh, but I have uh some of you may know my wife is the uh executive director of the Florida Association of Counties, so this is a hot topic in our household.

Um the numbers anywhere from 58 to 68 percent um that I've I've heard uh in favor of a right now.

Um as you know, the well, this one way to run read the poll is to read the ballot language to the person you're asking, and that one just simply doing that uh can push it up in the 60s.

Uh, if you start talking to the voter about uh what they might happen with respect to services, that's when the numbers are dropping.

Yeah, yes, sir.

Thank you, Mr.

Chairman.

Uh and maybe Mr.

Delegal, you know this has and and and gosh, that this might sound ignorant.

Since we increased the threshold to 60 percent, has anything passed for a constitutional amendment?

I know the mayorus marijuana pro choice all failed.

Uh yeah, I want to say some have passed.

Okay.

Uh but last year you're right, amendment three and four did not pass.

Okay.

Minimum wage increase passed.

Okay, with over 60 percent.

Uh it it did well, it's implemented, and I do believe it was a constitutional amendment.

It's also the you know, foundation on which many of these budgets are increasing.

So it does tie into this conversation.

So I do believe that was an amendment.

Yes, sir.

And it was, but the the legislature changed the threshold to 60 percent.

So I don't know.

Yeah, and I'm sorry, that since they changed it to 60, and my point is it's hard to coalesce around something in 60.

Um, but this still could pass, by the way.

But I I don't know if that qualified so.

But yeah, I will say two years ago there was another property tax reduction amendment that most people don't even remember.

Uh it was only for veterans and military members, and that did not pass.

So any other questions or comments.

Thank you, Mr.

Gibson.

Thank you, Mr.

Mr.

Delargal.

Thank you.

The um Heart Board Committee reports are in section 10 of the packet reports from the Hart Board of Representatives are in set section 11 of information reports are in section 12.

Is there any old business?

Any new business?

I just want to take a few moments to um thank um Danielle and Lena.

She's not here today, but they have done a phenomenal job no matter what we ask and no matter what it takes to get these set meetings pulled together.

It's always very fluid, and whomever stands behind them and others that we don't recognize on a regular basis.

I just would like to call that out and say thank you for the work that's being done.

I think we all agree.

This concludes our regular business.

Um regular business for today.

This meeting is now adjourned.

Thank you.