City Commission Workshop - Budget, Sarasota (Sarasota County): July 27, 2026

Record text

Search the record text

No transcript is held for this meeting. Recording: Watch video

Minutes textCity Commission Workshop - Budget — Minutes

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -1- 07/27/26 MINUTES OF THE SARASOTA CITY COMMISSION WORKSHOP MEETING OF JULY 27, 2026 PRESENT: Mayor Debbie Trice, Vice Mayor Kathy Kelley Ohlrich, Commissioners Jen Ahearn- Koch, Liz Alpert, and Kyle Scott Battie (arrived at 9:04 A.M.), and City Manager Karie Friling, City Auditor and Clerk Shayla Griggs, and City Attorney Joe Polzak, (Zoom/Hybrid) ABSENT: None Prior to the meeting, a printed copy of the PowerPoint presentation entitled “Budget Workshop Fiscal Year 2026-27” was distributed to the Commission. 9:00:20 A.M. The meeting was called to order by Mayor Trice at 9:00 A.M. 9:00:45 A.M. Mayor Trice stated that Commissioner Alpert is present via Zoom. 9:01:00 A.M. 1. PRESENTATION AND DISCUSSION RE: PROPOSED FISCAL YEAR 2026-2027 BUDGET BY DEPARTMENT AND FUND (AGENDA ITEM I-1) Financial Administration Director Kelly Strickland and Budget Manager Tyler Harris, Financial Administration Department, came before the Commission. 9:01:09 A.M. City Manager Friling provided a brief introduction and stated that the City is in a significantly stronger financial position than a year ago; that through the Commission’s leadership and the hard work of City employees, the City has rebuilt Fund Balances, strengthened financial resilience, and is better prepared to respond to future challenges. 9:04:42 A.M. Ms. Strickland referred to a PowerPoint presentation displayed on the Chambers monitors entitled “Budget Workshop Fiscal Year 2026-27,” and provided a brief overview and referred to slides entitled “Where were we last year?” and “Recap – How did we get to where we are today?” 9:08:16 A.M. Ms. Strickland continued and referred to a slide displayed on the Chambers monitors entitled “Goals and Objectives for the Current FY 2025-26,” as follows: 1. Fiscal Stability & Reserve Restoration – Initiate Year 1 for the 3 year plan to restore General Fund Reserves to the 17% -25% policy target. 2. Maintain Service Levels 3. Workforce & Required Cost Drivers - Postpone Employee Cost-of-Living Adjustment (COLA) and benefit adjustments, while managing increased pension, health insurance, fleet and self-insurance expenditures. 4. Long-term Sustainability - Advance multi-year revenue and rate strategies, including enterprise fund stability, while monitoring declining revenue sources

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -2- 07/27/26 5. Capital & Infrastructure Priorities - Support essential capital obligations, including hurricane-related repairs. 6. Public Safety Commitment 7. Establish a Solid Waste Debris Reserve 9:09:54 A.M. Ms. Strickland continued further, provided a brief overview, and referred to a slide entitled Total Proposed City Budget, as follows: 2025-26 Proposed Budget 2026-27 Proposed Budget Increase (Decrease) Percent Inc./(Dec.) General Fund $108,372,282 $113,009,911 $4,637,629 4.28% Special Revenue 41,082,681 38,743,101 (2,339,580) (5.69%) Debt Service 7,551,424 7,553,314 1,890 0.03% Enterprise 104,486,332 118,189,415 13,703,083 13.11% Internal Service 32,341,082 35,301,415 2,960,333 9.15% Trust Funds (OPEB, Defined Contr.) 9,741,580 9,546,523 (195,057) (2.00%) Total $303,575,381 $322,343,679 $18,768,298 6.18% 9:12:06 A.M. Ms. Strickland provided a brief overview and referred to a slide displayed on the Chamber monitors entitled “Full Time Budgeted Positions (Table of Organization)” and stated that Staff is proposing a budget with 832 full-time positions for fiscal year 2026-27 (FY26/27), which is an increase of five positions. 9:13:00 A.M. Ms. Strickland continued to provide a brief overview and referred to a slide displayed on the Chambers monitors entitled “Other salary related Budget Considerations – Citywide,” as follows: • The General Employees’ Pension has a decrease of $239,000, which is a closed plan and is 81.6% funded • The Police Officers’ Pension had an increase of $221,000, which is an open plan, and is 91% funded • The Firefighters’ Pension had an increase of $341,529, which is a closed plan, and is 89.2% funded • The Other Post Employment Benefits (OPEB) had an increase of $939,000, which is for pre-1993 employees, and is 86.7% funded • Florida Retirement System has an increase of $1,675,378, which is an open plan, and statewide 9:14:30 A.M. Ms. Strickland continued further, provided a brief overview, and referred to a slide displayed on the Chambers monitors entitled “Budget Issues Proposed in FY2026-27,” as follows:

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -3- 07/27/26 General Fund Department Description Amount Governmental Affairs 1 FTE – Senior Buyer $95,119 Human Resources 1 FTE – Generalist 88,219 Planning & Development 1 FTE – Redevelopment Project Specialist (CRA) 27,799 Planning & Development Neighborhood Grants 40,000 Total General Fund: $251,137 Other Funds: Downtown Improvement District 1 FTE – Administrative Specialist $74,021 Building Fund 1 FTE – Administrative Assistant 80,060 Total Other Funds: $154,081 *If the Property Tax Reform is approved in November, the General Fund positions will not be filled 9:16:37 A.M. Ms. Strickland continued further and provided a brief overview of the General Fund and referred to slides entitled “What is the General Fund?” “Unassigned General Fund – Fund Balance (Reserve) History vs. Adopted Policy,” and “City of Sarasota General Fund Reserve Policy,” as follows: • The General Fund is the main operating fund used to account for and report all financial resources not accounted for and reported in other funds • The budgeted revenues of $114 million are higher than the budgeted expenditures of $113 million with a difference of $1.1 million due to the three-year plan to replenish the Fund Balance (Reserve) • The Governmental Finance Officers Association recommends the City have a Fund Balance of 17% to 25%, or two to three months of operations in case for unforeseen disasters • The lowest the City’s Reserve declined is to 10.9%, which occurred in FY24/25 as a result of using the Reserve in response to the hurricanes; that the highest Reserve was 31.9% which occurred in FY21/22 • As a coastal city, sufficient Reserves is important for potential storm damage; and to also be sensitive to the objectives of policy guidelines which the Commission has adopted to have at minimum two to three months or 17% to 25% of Fund Balance to expenditures • The City also has a revenue Stabilization Policy, which withdrawals can only be considered if the General Fund’s recurring revenues decline at minimum 3% below the City’s budget projections in the current year and also only one-third of the revenue can be recovered by using the Revenue Stabilization Funding during any one FY • The Revenue Stabilization Fund has $3.8 million • FY26/27 Fund Balance is projected to end at 17.1% which does not include the Revenue Stabilization Fund

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -4- 07/27/26 9:19:49 A.M. Ms. Strickland referred to and provided a brief overview of slides displayed on the Chambers monitors entitled “General Fund Budget Summary” and “General Fund Budget Summary with Revenue Stabilization Fund (RSF) Reserve,” as follows: General Fund Budget Summary FY2025-26 Estimate FY2026-27 Proposed Beginning Fund Balance 17,640,740 $19,014,048 Revenues 112,887,350 114,119,344 Expenditures (111,514,042) (113,009,911) Revenues Over/(Under) Expenditures (use of unassigned fund balance (Reserves)) 1,373,308 1,109,433 Projected Unassigned Fund Balance (Reserves) $19,014,048 $20,123,481 % of Unassigned Fund Balance (Reserves) to Operating Expenses* 17.1% 17.8% *The Fund Balance and Reserve Policy – 17% - 25% General Fund Budget Summary with Revenue Stabilization Fund (RSF) Reserve FY2026-27 Proposed FY2026-27 Proposed w/RSF Beginning Unassigned Fund Balance Reserves $19,014,048 $19,014,048 Revenue Stabilization Fund Reserves 0 3,852,155 Revised Beginning Unassigned Fund Balance (Reserves) $19,014,048 22,866,203 Revenues 114,119,344 114,119,344 Expenditures (113,009,911) (113,009,911) Revenues Over/(Under) Expenditures (use of unassigned Fund Balance (Reserves)) 1,109,433 1,109,433 Projected Unassigned Fund Balance (Reserves) $20,123,481 $23,975,636 % of Unassigned Fund Balance (Reserves) to Operating Expenses* 17.0% 21.2% *The Fund Balance and Reserve Policy – 17% - 25% 9:21:16 A.M. Ms. Strickland continued to provide a brief overview and referred to slides displayed on the Chambers monitors entitled “Potential Ways to Replenish Unassigned Fund Balance (Reserves),” “Layered Strategy to Manage Reserves,” “Long-Term Planning to Restore Reserves,” “Major Factors for the City’s Bond Ratings,” and “3 Year Plan to Replenish Unassigned Fund Balance (Reserves).”

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -5- 07/27/26 9:26:34 A.M. Ms. Strickland continued further, providing a brief overview of the General Fund Revenues, and referred to slides displayed on the Chambers monitors entitled “Forecasts for General Fund Revenue,” “City of Sarasota – Taxable Values,” “Annual Percentage Change in Assessed Taxable Value by Tax Year,” “What is a mill? A mill is a unit used to calculate property taxes.” 9:30:42 A.M. Ms. Strickland provided a brief overview and referred to slides displayed on the Chambers monitors entitled “History of Adopted City Operating Millage Rates,” “Ad Valorem Millage Rate – Total City Millage,” “How your current tax year Property Taxes are Divided (Tax Bill By Jurisdiction based on Current Millage Rates),” and “Total City and Overlapping Millage Rates.” 9:33:13 A.M. Ms. Strickland concluded the General Fund Revenues and referred to slides displayed on the Chambers monitors entitled “Major Revenues (other than Ad Valorem),” “Franchise Fees,” “Electric, Water & Bottled Gas Excise Tax,” “Communication Service Tax,” “Half Cent Sales Tax,” and “State Revenue Sharing.” 9:40:14 A.M. Ms. Strickland commenced providing a brief overview of the General Fund Expenditures and referred to slides displayed on the Chambers monitors entitled “What’s Included in FY2026-26 General Fund Proposed Budget” and “General Fund Increases in Non-Discretionary Costs $3,816,880,” as follows: What’s Included in FY2026-27 General Fund Proposed Budget • 3 New General Fund positions (1 FTE partially funded with Community Redevelopment Agency (CRA)) • Cost-of-Living increases for non-bargaining employees • Step increases for eligible employees  Collective bargaining is still in progress • Operating cost to maintain current levels of services General Fund Increases in Non-Discretionary Costs $3,816,880 • $2,156,931 Pension Costs • $624,274 OPEB • $939,942 General Employee and Retirement (FRS) • $371,529 Fire • $221,186 Police • $274,521 Health Insurance • $389,841 Insurance – Property & Self-Insured Liability Insurance • $995,587 Internal Service Fund Allocations City Auditor and Clerk Griggs left and returned to her seat at 9:42 A.M. 9:42:41 A.M. Ms. Strickland continued providing a brief overview and referred to slides entitled “How Does the Proposed General Fund Budget Address Year 2 of Fund Balance (Reserves) Restoration?” “General Fund Expenditures by Department,” and “General Fund Expenditures,” and stated that the Operating Budget has a proposed decrease by approximately $455,000 from FY25-26, which reflects the commitment of the directors to find savings to help cover the increases in other categories; that despite the task to reduce cost, service levels are unchanged; that in order to absorb the personnel and other non-discretionary increases,

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -6- 07/27/26 the Operating line items were tightened, and the General Fund Capital was eliminated for the year; that the overall increase reflects several other key cost drivers, including the 3% COLA for non-bargaining employees, along with mandated increases for pension contributions, property insurance, self-insurance needs tied to future legal obligations, and the reinstatement of the General Fund Fleet Allocation; that the proposed General Fund Expenditures total approximately $113 million, and the key point is the Sarasota Police Department (SPD) represents the largest share of about 48% of the total General Fund Budget, while the remaining expenditures are spread across essential functions such as Parks and Recreation, Public Works, Administrative Services, and other core operations. 9:46:01 A.M. Ms. Strickland continued further providing a brief overview of the Legislative Priorities and referred to slides displayed on the Chambers monitors entitled “Legislative Finance Related,” “HB1329 - Government Accountability,” “HB7031E – Taxation,” and “HJR-1F-Property Taxes.” 9:51:14 A.M. Ms. Strickland provided a brief overview of the Major Projects – Status and Future Plans and referred to slides displayed on the Chambers monitors entitled “Major Projects – Status and Future Plans,” as follows: • City Property and Facility Repair from Hurricane Damage – Ongoing – Capital Improvement Planned Projects have been reassigned for funding • St. Armands & Lido Key Undergrounding Utilities – Moving Forward; Debt Issuance and Special Assessment Process • McCown Towers Parking Garage – Moving Forward Pending Debt Issuance and Revenue Study • Bobby Jones Golf Course Clubhouse – Moving Forward Pending Debt Issuance (Use of Penny 4 funding source) • The Bay Park (Phase 3) – TBD/Subject to County Approval • Sarasota Performing Arts Center (SPAC) – Paused • Downtown Master Plan – Study – Paused • Water Transit – Paused • Affordable Workforce Housing Initiative –Paused • Various Neighborhood Lighting Districts - Exploring • Police Radio Upgrade – Must have in place by 2030 9:53:05 A.M. Ms. Strickland concluded, provided a brief overview of the proposed Millage Rates and referred to a slide displayed on the Chambers monitors entitled “Proposed Millage Rates,” as follows: City – Operating 2025-26 (adopted) 2026-27 (proposed) General Fund 3.2730 mills 3.2730 mills City – Wide Debt Service 2015 GO Bonds – Police Station .1348 mills .1305 mills Bond Rating – Moody’s Aa1, Fitch AA+ Special Districts Golden Gate Streetscape Special District Operating .6148 mills .6148 mills Debt Service .5899 mills .4977 mills Total 1.2047 mills 1.1125 mills Downtown Improvement District 2.0000 mills 2.0000 mills

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -7- 07/27/26 9:54:23 A.M. Questions posed by Commissioner Ahearn-Koch regarding whether the Reserve policy should be increased were addressed by Ms. Strickland, City Manager Friling, and Commissioner Ahearn-Koch spoke to the topic. 9:58:51 A.M. Commissioner Ahearn-Koch continued to pose questions, which were addressed by Ms. Strickland, Deputy City Manager Jennifer Jorgensen, City Manager’s Office, who came before the Commission, and City Manager Friling. 10:06:09 A.M. Vice Mayor Ohlrich thanked Director of Financial Administration, commended the administration, the Commission for passing, and Staff for implementing the three-year plan, and posed questions which were addressed by Ms. Strickland and City Manager Friling. 10:13:59 A.M. Questions posed by Mayor Trice were addressed by Ms. Strickland, City Manager Friling, and Deputy City Manager Jorgensen. The Commission recessed at 10:28 A.M. and reconvened at 10:40 A.M. 10:41:07 A.M. Mr. Harris stated that the City Departments, which make up the General Fund, will be presented one by one. 10:42:06 A.M. 1) City Commission – Page 113 Mr. Harris provided a brief overview of the proposed Budget for the City Commission and referred to a slide displayed on the Chambers monitors entitled “City Commission,” as follows: FY2025-26 Adopted Budget: $893,146 FY2026-27 Proposed Budget: $969,531 Overall Budget Increase: 8.6% 10:42:51 A.M. Questions posed by Mayor Trice were addressed by Ms. Strickland and City Manager Friling. City Auditor and Clerk Griggs returned to the Chambers at10:43 A.M. 10:44:33 A.M. 2) City Manager’s Office – Page 116 Mr. Harris provided a brief overview of the proposed Budget for the City Manager’s Office and referred to a slide displayed on the Chambers monitors entitled “City Manager,” as follows:

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -8- 07/27/26 FY2025-26 Adopted Budget: $804,521 FY2026-27 Proposed Budget: $1,192,517 Overall Budget Increase: 48.2% 10:45:32 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Mr. Harris. 10:47:05 A.M. 3) Communications – Page 117 Mr. Harris provided a brief overview of the proposed Budget for the Communications Office and referred to a slide displayed on the Chambers monitors entitled “Communications,” as follows: FY2025-26 Adopted Budget: $518,323 FY2026-27 Proposed Budget: $538,892 Overall Budget Increase: 4.0% 10:47:39 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Mr. Harris. 10:48:39 A.M. 4) Governmental Affairs – Page 119 Mr. Harris provided a brief overview of the proposed Budget and Budget Issue for the Governmental Affairs Department and referred to a slide displayed on the Chambers monitors entitled “Governmental Affairs,” as follows: FY2025-26 Adopted Budget: $1,435,122 FY2026-27 Proposed Budget: $1,618,987 Overall Budget Increase: 12.8% Budget Issue – Senior Buyer Salaries/Wages: $95,199 10:49:42 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Deputy City Manager Jorgensen and City Manager Friling. Commissioner Battie returned to the Chambers at 10:52 A.M. 10:52:33 A.M. Questions posed by Mayor Trice were addressed by Ms. Strickland, Deputy City Manager Jorgensen, and Mr. Harris. 10:55:31 A.M. 5) Human Resources – Page 127 Acting Director Dominique Anderson, Human Resources Department, came before the Commission.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -9- 07/27/26 Mr. Harris provided a brief overview of the proposed Budget and Budget Issue for the Human Resources Department and referred to the slide displayed on the Chambers monitors entitled “Human Resources,” as follows: FY2025-26 Adopted Budget: $2,009,362 FY2026-27 Proposed Budget: $1,772,993 Overall Budget Decrease: 11.8% Budget Issue – HR Generalist Salaries/Wages: $88,219 10:56:41 A.M. Ms. Anderson left the Dais. 10:56:51 A.M. 6) Development Services* – Page 135 *Includes Code Compliance Director Lucia Panica, Development Services (DS) Department, came before the Commission. Mr. Harris provided a brief overview of the proposed Budget for the DS Department and referred to a slide displayed on the Chambers monitors entitled “Development Services,” as follows: FY2025-26 Adopted Budget: $4,551,872 FY2026-27 Proposed Budget: $4,791,270 Overall Budget Decrease: 8.7% 10:57:52 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Panica and Ms. Strickland, and Ms. Panica stated that under Code Compliance, the City’s Vacation Rental Expansion to Downtown Neighborhood is to return before the Commission in August 2026 to request an additional administrative support position to assist with the program, which will be a Budget Amendment. Ms. Panica left the Dais. 11:01:25 A.M. 7) Facilities Management – Page 143 Director Verne Hall and Utilities Administration General Manager Mark Nicholas, Utilities Department, came before the Commission. Mr. Harris provided a brief overview of the Budget for Facilities Management and referred to a slide displayed on the Chambers monitors entitled “Facilities Management,” as follows: FY2025-26 Adopted Budget: $2,037,208 FY2026-27 Proposed Budget: $1,862,191 Overall Budget Decrease: 8.6% 11:02:20 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Messrs. Hall and Harris.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -10- 07/27/26 11:03:35 A.M. Question posed by Mayor Trice was addressed by Mr. Hall. Messrs. Hall and Nicholas left the Dais. 11:04:37 A.M. 8) Financial Administration – Page 146 Mr. Harris provided a brief overview of the Budget for Financial Administration, and referred to a slide displayed on the Chambers monitors entitled “Financial Administration,” as follows: FY2025-26 Adopted Budget: $2,435,336 FY2026-27 Proposed Budget: $2,448,184 Overall Budget Increase: 0.5% 11:05:27 A.M. Question posed by Vice Mayor Ohlrich was addressed by Ms. Strickland. 11:06:29 A.M. 9) The Office of the City Auditor and Clerk – Page 151 Mr. Harris provided a brief overview of the Budget for the Office of the City Auditor and Clerk and referred to a slide displayed on the Chambers monitors entitled “City Auditor & Clerk,” as follows: FY2025-26 Adopted Budget: $3,078,699 FY2026-27 Proposed Budget: $3,160,154 Overall Budget Increase: 2.6% 11:07:12 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by City Auditor and Clerk Griggs and City Manager Friling. 11:09:26 A.M. Question posed by Vice Mayor Ohlrich was addressed by City Auditor and Clerk Griggs, and Vice Mayor Ohlrich provided input. 11:10:21 A.M. 10) City Attorney’s Office – Page 162 Mr. Harris provided a brief overview of the Budget for the City Attorney’s Office and referred to a slide displayed on the Chambers monitors entitled “City Attorney,” as follows: FY2025-26 Proposed Budget: $1,850,100 FY2026-27 Proposed Budget: $1,905,603 Overall Budget Increase: 3.0%

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -11- 07/27/26 11:11:47 A.M. 11) Planning Department* – Page 165 *Includes Sustainability and Resilience, which is funded 50% from Water and Sewer and 50% from Solid Waste. Also includes Economic Development Director Steven “Steve” Cover, Sustainability Manager Alia Garrett, and General Manager Ryan Chapdelain, Planning Department, came before the Commission. Mr. Harris provided a brief overview of the proposed Budget and Budget Issues for the Planning Department and referred to a slide displayed on the Chambers monitors entitled “Planning*” as follows: FY2025-26 Adopted Budget: $2,282,080 FY2026-27 Proposed Budget: $2,355,716 Overall Budget Increase: 3.2% Budget Issue: Neighborhood Grants Grants & Aid: $40, 000 Budget Issue: Redevelopment Project Specialist Salaries/Wages: $27,799 (net after transfer from CRA) 11:12:43 A.M. Mr. Harris stated that a correction will need to be made following this Workshop to increase the revenues by $20,220 to reflect a transfer from the Community Redevelopment Agency (CRA) Fund to cover the cost of the Full Time Employees (FTEs). 11:13:10 A.M. Question posed by Vice Mayor Ohlrich was addressed by Mr. Harris, and Ms. Strickland stated that tomorrow, at the July 28, 2026, Special Sarasota City Commission Meeting, the Commission will see a change in revenue to the General Fund for approximately $20,000 and an expense to the CRA. 11:13:46 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Mr. Chapdelain, City Manager Friling, Mr. Cover, and Ms. Strickland, and City Manager Friling, in regard to Citizens’ Academy, stated that she has written a note and will report back to the Commission tomorrow. 11:17:13 A.M. Vice Mayor Ohlrich continued and posed a question, which was addressed by Mr. Cover, and Vice Mayor Ohlrich spoke in favor of the Neighborhood Grants Program and stated that she would be disappointed if the City removed the Neighborhood Grants Program, and Commissioner Ahearn-Koch and Mayor Trice also spoke in favor of the Neighborhood Grants Program. 11:20:12 A.M. Questions posed by Commissioner Battie were addressed by Mr. Cover and Vice Mayor Ohlrich, and Commissioners Battie and Ahearn-Koch provided input. City Attorney Polzak left the Chambers at 11:22 A.M.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -12- 07/27/26 11:22:46 A.M. Mayor Trice requested discussion about the Budget Issue: Redevelopment Project Specialist, which Mr. Cover addressed. Ms. Garrett left the Dais. 11:23:49 A.M. 12) Housing and Community Development – Page 176 Messrs. Cover and Chapdelain remained at the Dais, and General Manager Cynthia “Cindy” Emshoff, Office of Housing & Community Development (OHCD), Planning Department, came before the Commission. Mr. Harris provided a brief overview of the Budget for the Office of Housing and Community Development (OHCD) and referred to a slide displayed on the Chambers monitors entitled “Housing and Community Development – General Fund*” as follows: FY2025-26 Adopted Budget: $29,833 FY2026-27 Proposed Budget: 10,244 Overall Budget Decrease: 65.7% *Administrative Cost that cannot be directly applied to the administration of federal grants. 11:24:19 A.M. Questions posed by Mayor Trice were addressed by Ms. Strickland and Ms. Emshoff. City Attorney Polzak returned to the Chambers at 11:25 A.M. Messrs. Cover and Chapdelain and Ms. Emshoff left the Dais. 11:25:46 A.M. 13) Special Events Office – Page 178 Special Events Manager James Wormley, City Manager’s Office, came before the Commission. Mr. Harris provided a brief overview of the Budget for the Special Events Office and referred to a slide displayed on the Chambers monitors entitled “Special Events,” as follows: FY2025-26 Adopted Budget: $457,850 FY2026-27 Proposed Budget: $481,621 Overall Budget Increase: 5.2% 11:26:25 A.M. Deputy City Manager Jorgensen provided a brief update and stated that the Special Events Office does receive electronic payments in order to be compliant with the Florida Legislative Bill, which mandates local governments to accept electronic payments. 11:26:36 A.M. Questions posed by Mayor Trice were addressed by Deputy City Manager Jorgensen, and Ms. Strickland and Vice Mayor Ohlrich provided input.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -13- 07/27/26 11:28:16 A.M. Question posed by Commissioner Ahearn-Koch was addressed by Mr. Wormley and Deputy City Manager Jorgensen. 11:29:04 A.M. 14) Unclassified Administration – Page 181 Mr. Harris provided a brief overview of the Budget for the Unclassified Administration Fund, and referred to a slide displayed on the Chambers monitors entitled “Unclassified Administration,” as follows: FY2025-26 Adopted Budget: $6,095,849 FY2026-27 Proposed Budget: $7,141,175 Overall Budget Increase: 17.1% 11:29:10 A.M. Mr. Harris stated that this is the City’s cost center, which is used for certain expenditures not related to any departments such as health and life insurance for retirees, information technology services, miscellaneous property insurance; that the most notable change in this budget is the Central Garage Services increased approximately $700,000, 702%, which is due to last year the allocation was dramatically reduced for those services to save money in the General Fund, and now, they are being restored to the more traditional level. 11:30:06 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Strickland and Mr. Harris. 11:32:23 A.M. 15) Police – Page 184 Finance Manager Ben Billingsley, Budget Coordinator Lisa Cooley, and Chief Rex Troche, Sarasota Police Department (SPD), came before the Commission. Mr. Harris provided a brief overview of the proposed Budget for the Sarasota Police Department (SPD) and referred to a slide displayed on the Chambers monitors entitled “Sarasota Police Department” as follows: FY2025-26 Adopted Budget: $50,621,923 FY2026-27 Proposed Budget: $53,304,510 Overall Budget Increase: 5.3% 11:33:19 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Mr. Billingsley, Chief Troche, and Ms. Strickland. 11:38:41 A.M. Vice Mayor Ohlrich spoke to the topic in which Chief Troche provided input, and Vice Mayor Ohlrich posed a question, which was addressed by Chief Troche.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -14- 07/27/26 11:40:21 A.M. Mayor Trice spoke to the topic and posed questions, which were addressed by Chief Troche and Ms. Strickland. 11:44:29 A.M. Commissioner Ahearn-Koch continued to pose questions, which were addressed by Mr. Billingsley, Ms. Strickland, and City Manager Friling. Chief Troche, Mr. Billingsley, and Ms. Cooley left the Dais. 11:48:02 A.M. 16) Parks and Recreation – Page 205 Director Jerry Fogle, Parks and Recreation, came before the Commission. Mr. Harris provided a brief overview of the proposed Budget for the Parks and Recreation Department and referred to slides displayed on the Chambers monitors entitled “Parks and Recreation” and “Non-Park Maintenance,” as follows: FY2025-26 Adopted Budget: $12,427,238 FY2026-27 Proposed Budget: $12,544,604 Overall Budget Increase: 0.9% AND 17) Non-Park Maintenance – Page 219 FY2025-26 Adopted Budget: $3,072,779 FY2026-27 Proposed Budget: $3,199,153 Overall Budget Increase: 4.1% 11:48:49 A.M. Questions posed by Commissioner Ahearn-Koch were addressed by Mr. Fogle, Ms. Strickland, and Mr. Harris, and Commissioner Ahearn-Koch spoke in favor of Staff providing the breakdown between City residents and others who use Robert L. Taylor Community Complex (RLTCC) and stated that perhaps the Commission should consider in the future providing a discount to City residents. 11:53:04 A.M. Questions posed by Vice Mayor Ohlrich were addressed by Mr. Fogle and Ms. Strickland. 11:55:57 A.M. Questions posed by Commissioner Alpert were addressed by Mr. Fogle. 11:56:42 A.M. Questions posed by Mayor Trice were addressed by Mr. Fogle.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -15- 07/27/26 11:58:49 A.M. Question posed by Commissioner Battie was addressed by Mr. Fogle and City Manager Friling. 12:00:12 P.M. Mr. Fogle stated that the Parks and Recreation Department has commenced using a software tracking system for usage in City parks for the last three years, not including Lido Beach or North Lido Beach; that there are 56 parks tracked, and in the last three years there were 24 million visits. Mr. Fogle left the Dais. 12:01:09 P.M. 18) Streets and Highway Maintenance – Page 222 Director Douglas Nikesh “Nik” Patel, City Engineer Sage Kamiya, and Finance Manager Public Works Lisa Harper Engineering, Public Works, and came before the Commission. Mr. Harris provided a brief overview of the Budget for the Streets and Highway Maintenance Fund and referred to a slide displayed on the Chambers monitors entitled “Streets and Highway,” as follows: FY2025-26 Adopted Budget: $5,739,923 FY2026-27 Proposed Budget: $5,638,805 Overall Budget Decrease: 1.8% 12:02:09 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Messrs. Harris, Kamiya, and Patel, and Mr. Harris stated that Staff will return back to the Commission with where the full-time position was moved within the program or whether there is a misprint. 12:04:09 P.M. Question posed by Vice Mayor Ohlrich was addressed by Ms. Harper. 12:04:48 P.M. Question posed by Mayor Trice was addressed by Ms. Harper and Ms. Strickland. 12:05:36 P.M. 19) Engineering Services – Page 229 Messrs. Patel and Kamiya and Ms. Harper remained at the Dais. Mr. Harris provided a brief overview of the Budget for the Engineering Division and referred to a slide displayed on the Chambers monitors entitled “Engineering,” as follows: FY2025-26 Adopted Budget: $3,548,795 FY2026-27 Proposed Budget: $3,631,564 Overall Budget Increase: 2.3%

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -16- 07/27/26 12:06:38 P.M. 20) Homelessness Response – Page 234 Homelessness Response Coordinator Shellie Legarsky, Homeless Response, City Manager’s Office, came before the Commission. Mr. Harris provided a brief overview of the proposed Budget for Homelessness Response and referred to the slide displayed on the Chambers monitors entitled “Homelessness Response,” as follows: FY2025-26 Adopted Budget: $1,162,597 FY2026-27 Proposed Budget: $1,229,158 Overall Budget Increase: 5.7% 12:07:16 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Legarsky and Ms. Strickland. 12:10:44 P.M. Question posed by Vice Mayor Ohlrich was addressed by Ms. Legarsky. 12:11:24 P.M. Questions posed by Commissioner Battie were addressed by Ms. Legarsky. 12:16:10 P.M. Questions posed by Mayor Trice were addressed by Ms. Legarsky. 12:17:38 P.M. Commissioner Battie continued to pose questions, which were addressed by Ms. Legarsky, and Commissioner Ahearn-Koch and Mayor Trice provided input. The Commission recessed at 12:19 P.M. and reconvened at 1:31 P.M. 1:32:04 P.M. Ms. Strickland provided a brief overview of Special Revenue Funds and referred to a slide entitled “Special Revenue funds – Funds used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes.” Commissioner Battie returned to the Chambers at 1:32 P.M. 1:32:59 P.M. Ms. Strickland stated that the discussion for the Penny Sales Tax, Multimodal Transportation Impact Fee, Five Cent Local Fuel Tax, and Tourist Development Tax will be postponed until the Capital Improvement Program (CIP) discussion.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -17- 07/27/26 1:33:59 P.M. 21) The Bay Tax Incremental Financing (TIF) Trust – Page 245 Ms. Strickland provided a brief overview of the Budget for The Bay Tax Incremental Financing Trust and referred to a slide displayed on the Chambers monitors entitled “The Bay Increment Financing (TIF)” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $6,189,042 Revenues: $3,354,425 Total Expenditures: $3,072,050 Ending Fund Balance: $6,471,417 FY19 Base Year Assessed Value: $850,422,231 FY27 Assessed Value: $2,039,492,977 1:36:57 P.M. 22) The City Bay Tax Increment Financing (TIF) Trust – Page 247 Ms. Strickland provided a brief overview of the Budget for the City Bay Tax Incremental Financing (TIF) Trust and referred to a slide displayed on the Chambers monitors entitled “The City Bay Tax Increment Financing (TIF) Trust,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $2,090,601 Revenues: $1,902,530 Total Expenditures: $0 Ending Fund Balance: $3,993,131 FY19 Base Year Assessed Value: $850,422,231 FY27 Assessed Value: $2,039,492,977 1:38:30 P.M. Questions posed by Vice Mayor Ohlrich were addressed by Ms. Strickland. 1:40:06 P.M. Question posed by Mayor Trice was addressed by Ms. Strickland. 1:41:15 P.M. Question posed by Commissioner Alpert was addressed by Ms. Strickland and Deputy City Manager Jorgensen. 1:42:26 P.M. 23) Golden Gate Point Streetscape – Page 249 Ms. Strickland provided a brief overview of the Budget for the Golden Gate Point (GGP) Streetscape Special District and referred to a slide displayed on the Chambers monitors entitled “Golden Gate Point Streetscape,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $353,062 Revenues: $319,274

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -18- 07/27/26 Total Expenditures: $304,125 Ending Fund Balance: $368,211 1:43:49 P.M. Questions posed by Vice Mayor Ohlrich were addressed by Ms. Strickland. 1:44:37 P.M. Question posed by Mayor Trice was addressed by Ms. Strickland and City Attorney Polzak. 1:45:24 P.M. 24) Downtown Improvement District – Page 251 Business District Manager Julie Ryan and Director Steven “Steve” Cover, Planning Department, came before the Commission. Ms. Strickland provided a brief overview of the Budget and Budget Issue for the Downtown Improvement District (DID) and referred to a slide entitled “Downtown Improvement District,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $726,956 Revenues: $1,026,939 Total Expenditures: $1,324,518 Ending Fund Balance: $429,377 Budget Issue – Admin Specialist (Page 255) Salaries/Wages: $74,021 1:47:10 P.M. Mr. Cover provided a brief overview of the proposal to restructure the Economic Development Office, with the inclusion of the Budget Issue – Admin Specialist, as follows: • Going from three to five positions, with minimum or no impact on the Budget at all: - Manager of Economic Development and Real Estate - Redevelopment Specialist – funded 33% from the General Fund and 67% from the CRA - Redevelopment Administrator – 50% General Fund and 50% CRA - Real Estate and Operations Administrator 50% General Fund and 50% of the Leased Revenues 1:49:42 P.M. Questions posed by Vice Mayor Ohlrich were addressed by Mr. Cover and Ms. Ryan. 1:52:36 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Ryan, City Manager Friling, and Ms. Strickland. City Auditor and Clerk Griggs left the Dais at 1:57 P.M. and returned at 1:58 P.M.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -19- 07/27/26 1:59:42 P.M. Questions posed by Mayor Trice were addressed by Ms. Strickland. 2:01:46 P.M. Questions posed by Vice Mayor Ohlrich were addressed by Ms. Ryan, Mr. Patel, who returned to the Dais, and City Manager Friling. 2:05:27 P.M. Discussion ensued regarding restaurants, sidewalks, and alleyway stains versus cleanings, and City Manager Friling stated that Staff will follow up regarding the sidewalks and alleyways pertaining to stains, dirt, cleaning, and/or priming. Ms. Ryan and Messrs. Cover and Patel left the Dais. 2:13:11 P.M. 25) Building Services – Page 256 Ms. Panica returned to the Dais. Ms. Strickland provided a brief overview of the Budget and Budget Issue for Building Services and referred to a slide displayed on the Chambers monitors entitled “Building Services,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $15,585,323 Revenues: $10,849,900 Total Expenditures: $9,331,036 Ending Fund Balance: $17,104,187 Budget Issue: Administrative Assistant Salaries/Wages: $80,060 2:14:21 P.M. Questions posed by Vice Mayor Ohlrich were addressed by Ms. Panica. Ms. Panica left the Dais. 2:15:22 P.M. 26) Development Application System – Page 263 Ms. Strickland provided a brief overview of the Development Application System Fund and referred to a slide displayed on the Chambers monitors entitled “Development Application System,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $1,719,777 Revenues: $990,000 Total Expenditures: $1,387,102 Projected Ending Fund Balance: 1,322,675 Restricted Fund Balance: (1,008,642) Ending Unrestricted Fund Balance: $314,033

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -20- 07/27/26 2:16:21 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Strickland. 2:16:52 P.M. 27) Housing and Community Development – Page 270 Mr. Cover and Ms. Emshoff returned to the Dais. Ms. Strickland provided a brief overview of the proposed Budget of the Office of Housing and Community Development (OHCD) and referred to a slide displayed on the Chambers monitors entitled “Office of Housing and Community Development,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $26,832,734 Revenues: $1,550,983 Total Expenditures: $1,550,983 Ending Fund Balance: $26,832,734 2:17:29 P.M. Ms. Emshoff presented. 2:17:51 P.M. Question posed by Mayor Trice was addressed by Ms. Emshoff. Ms. Emshoff and Mr. Cover left the Dais. 2:18:28 P.M. 28) Gas Tax – Page 274 Ms. Strickland provided a brief overview Gas Tax Fund, referred to a slide displayed on the Chambers monitors entitled “Gas Tax,” as follows below, and stated that the Gas Tax Fund is used in the CIP, which can be used for infrastructure; however, the Gas Taxes have not be increasing and are staying steady or decreasing; that what is seen here are the operating expenditures which are allowed by the Gas Tax Florida Statute; that the transfer to the General Fund is for the streetlights, a portion of the transportation planner, and a traffic light signal position. FY2026-27 Proposed Budget: Beginning Fund Balance: $263,505 Revenues: $1,690,000 Total Expenditures: $1,731,548 Ending Fund Balance: $221,957 2:19:46 P.M. 29) Community Redevelopment Agency – Page 279 Mr. Cover returned to the Dais and Coordinator Business Relations Rochelle Gallant, Planning Department, came before the Commission. Ms. Strickland provided a brief overview of the proposed Budget for the Community Redevelopment Agency (CRA) and referred to slides displayed on the Chambers monitors entitled Community

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -21- 07/27/26 Redevelopment Agency” and “Community Redevelopment Agency – Estimated Taxable Value for FY 2026-27 (July 1, 2026)” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $969,654 Revenues: $835,505 Total Expenditures: $1,405,319 Ending Fund Balance: $399,840 (1) The Newtown CRA base year value was reset to the January 1, 2017, value of $143,659,391 by Ordinance 17-5227 on October 2, 2017. The Value of 1 mill = $18,092,683 City Auditor and Clerk Griggs left the Chambers at 2:21 P.M. 2:22:00 P.M. Question posed by Mayor Trice was addressed by Deputy City Manager Jorgensen. 2:22:43 P.M. Ms. Strickland provided historical overview of the Newtown CRA. 2:23:16 P.M. Question posed by Commissioner Battie was addressed by Ms. Strickland. 2:23:39 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Gallant. City Auditor and Clerk Griggs returned to the Chambers at 2:24 P.M. 2:25:09 P.M. Commissioner Battie spoke to the topic. 2:25:38 P.M. Ms. Strickland reminded the Commission that a correction will be made at the July 28, 2026, Special Sarasota City Commission Meeting with an increase to the revenues in the General Fund and increase in expenditures in this fund. Taxable Value for FY2025-26 Taxable Value for FY2026-27 Change from Prior Year Taxable Value of the City $19,486,149,429 $20,162,667,299 3.47% Newtown CRA(1) $345,620,850 $368,361,313 6.58%

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -22- 07/27/26 2:26:17 P.M. Vice Mayor Olrich requested Staff to provide information regarding the Title Assistance Grant Program and the Homefront Beautification Program, which Ms. Gallant addressed, and Vice Mayor Ohlrich posed question which were also addressed. 2:29:50 P.M. Commissioner Battie spoke to the topic, and Ms. Gallant provided input. 2:31:43 P.M. 30) Economic Development – Page 282 Ms. Gallant and Mr. Cover remained, and Ms. Ryan, returned to the Dais. Ms. Strickland provided a brief overview of the Economic Development Fund and referred to a slide displayed on the Chambers monitors entitled “Economic Development,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $762,425 Revenues: $950,000 Total Expenditures: $807,310 Ending Fund Balance: $905,115 • Citywide Trolley – The Bay Runner $665,000 • Legacy Business Recognition $15,000 • National Community Survey $30,000 • Economic Development Study $75,000 2:32:50 P.M. Question posed by Commissioner Ahearn-Koch was addressed by Mr. Cover and City Manager Friling, and Commissioner Ahearn-Koch voiced concerns about the Citywide Trolley being funded from the Economic Development Budget, in which Deputy City Manager Jorgensen and City Manager Friling provided input. 2:38:52 P.M. Question posed by Vice Mayor Ohlrich was addressed by Mr. Cover. 2:39:42 P.M. Questions posed by Mayor Trice were addressed by Commissioner Ahearn-Koch, Ms. Gallant, City Manager Friling, and Ms. Panica, who returned to the Dais and left, and Ms. Ryan, who left the Dais and returned. 2:43:59 P.M. Questions posed by Commissioner Battie were addressed by Mr. Cover and Ms. Strickland. Ms. Gallant, Mr. Cover, and Ms. Ryan left the Dais. 2:44:58 P.M. 31) Citizens with Disabilities – Page 287

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -23- 07/27/26 Ms. Anderson, returned to the Dais and ADA Coordinator Jake Brown, Human Resources Department, came before the Commission. Ms. Strickland provided a brief overview of the Budget for the Citizens with Disabilities Fund and referred to a slide displayed on the Chambers monitors entitled “Citizens with Disabilities,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $18,514 Revenues: $20,000 Total Expenditures: $34,258 Ending Fund Balance: $4,256 • Closed Captioning – The Bay Runner $32,000 • Beach Wheelchair Program $2,258 2:45:59 P.M. Question posed by Vice Mayor Ohlrich was addressed by Mr. Brown, and Vice Mayor Ohlrich spoke to the topic. 2:47:09 P.M. Question posed by Commissioner Alpert was addressed by Mr. Brown, and Commissioner Alpert spoke to the topic. 2:47:47 P.M. Question posed by Commissioner Ahearn-Koch was addressed by Deputy City Manager Jorgensen. 2:48:41 P.M. Mayor Trice spoke in favor of adding Americans with Disabilities Act (ADA) parking spaces and Commissioner Ahearn-Koch and City Manager Friling provided input. 2:50:40 P.M. Vice Mayor Ohlrich spoke in favor of moving closed-captioning from this fund to another funding source, and Commissioner Ahearn-Koch concurred. 2:51:26 P.M. City Auditor and Clerk Griggs spoke to the topic. Ms. Anderson and Mr. Brown left the Dais. 2:52:19 P.M. 32) Public Art – Page 289 Mr. Cover returned to the Dias, and Public Art Administrator Ciera Coleman, Planning Department, came before the Commission.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -24- 07/27/26 Ms. Strickland provided a brief overview of the Public Art Fund and referred to a slide displayed on the Chambers monitors entitled “Public Art,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $2,362,036 Revenues: $50,000 Total Expenditures: $1,970,563 Ending Fund Balance: $441,473 2:53:31 P.M. Mr. Cover presented. 2:54:28 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Mr. Cover and Ms. Coleman. 2:54:56 P.M. Vice Mayor Ohlrich requested to keep public art coming into District 3, and Ms. Coleman provided input. 2:55:17 P.M. Question posed by Mayor Trice was addressed by Ms. Coleman. 2:56:04 P.M. 33) Stadium Grant – Page 291 Ms. Strickland provided a brief overview of the Budget for the Grant Fund and referred to a slide displayed on the Chambers monitors entitled “Special Revenue Grant – Stadium,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $85,531 Revenues: $500,004 Total Expenditures: $500,004 Ending Fund Balance: $85,531 2020 Stadium Bonds Outstanding at 9/30/2026 - $4,934,000 2:56:52 P.M. Question posed by Commissioner Ahearn-Koch was addressed by Ms. Strickland. 2:57:45 P.M. Questions posed by Mayor Trice were addressed by Ms. Strickland. 2:58:31 P.M. 34) Tree Replacement Fund – Page 292 Ms. Strickland provided a brief overview of the Budget for the Tree Replacement Fund and referred to a slide displayed on the Chambers monitors entitled “Tree Replacement Fund,” as follows:

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -25- 07/27/26 FY2026-27 Proposed Budget: Beginning Fund Balance: $490,221 Revenues: $121,000 Total Expenditures: $500,000 Ending Fund Balance: $111,221 2:59:32 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Strickland, and Mayor Trice provided input. 3:01:10 P.M. 35) Affordable Housing Trust Fund – Page 294 Ms. Strickland concluded and provided a brief overview of the Budget for the Affordable Housing Trust Fund and referred to a slide displayed on the Chambers monitors entitled “Affordable Housing Trust Fund,” as follows: FY2026-27 Proposed Budget: Beginning Fund Balance: $671,811 Revenues: $263,561 Total Expenditures: $615,400 Ending Fund Balance: $319,972 3:02:03 P.M. Question posed by Vice Mayor Ohlrich was addressed by Ms. Strickland. 3:02:48 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Strickland. 3:04:30 P.M. Questions posed by Mayor Trice were addressed by Ms. Strickland and Commissioner Ahearn-Koch provided input. 3:07:33 P.M. Ms. Strickland stated that the Special Revenue Fund has concluded. The Commission recessed at 3:09 P.M. and reconvened at 3:20 P.M. 3:21:12 P.M. Ms. Strickland provided a brief overview of the Debt Service Funds, stated that these funds are used to account for the accumulation of resources, which are restricted, committed, or assigned to the expenditure for the City’s principal and interest, and referred to slides displayed on the Chambers monitors entitled “Debt Service Funds” and “Bond Ratings.” 3:24:01 P.M. Questions posed by Commissioner Ahearn-Koch were addressed by Ms. Strickland.

Presentation and Discussion Re: Proposed FY 2026/27 Budget By Department and Fund -26- 07/27/26 3:25:12 P.M. Ms. Strickland continued providing a brief overview of the Debt Service Funds and referred to slides displayed on the Chambers monitors entitled “Governmental Debt Service Funds Funding Source & Purpose,” in which Vice Mayor Ohlrich provided a clarification, “Debt Service – Ad Valorem,” “Debt Service funds– governmental,” “Proprietary Debt Service Funds Funding Source & Purpose,” and “Debt service funds – Proprietary Funds.” 3:32:52 P.M. Question posed by Commissioner Ahearn-Koch was addressed by Ms. Strickland, and Commissioner Ahearn-Koch provided input. 3:34:06 P.M. Question posed by Vice Mayor Ohlrich was addressed by Ms. Strickland. 3:34:38 P.M. Commissioner Battie spoke to the topic. 3:39:25 P.M. City Manager Friling spoke to the topic and stated that the City must get past November 2026, and the Commission is applauded for last year, doing the hard work, and having the political courage to raise the Millage rate. 3:40:23 P.M. Commissioner Battie thanked David Bullock, former Interim City Manager, for guiding the Commission in navigating the budget and giving the Commission confidence to raise the Millage rates. 3:40:58 P.M. Mayor Trice thanked the Financial Administration Staff for their stamina. 3:41:14 P.M. 2. ADJOURN (AGENDA ITEM II) Mayor Trice adjourned the Sarasota City Commission Budget Workshop of July 27, 2026, at 3:42 P.M.

Agenda textCity Commission Workshop - Budget

Showing the first 24,000 of 291,819 characters. The full document is at the source.

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] SARASOTA CITY COMMISSION BUDGET WORKSHOP MONDAY, JULY 27, 2026, 9:00 A.M. DISCLAIMER: THIS FILE REPRESENTS AN UNEDITED VERSION OF REALTIME CAPTIONING WHICH SHOULD NEITHER BE RELIED UPON FOR COMPLETE ACCURACY NOR USED AS A VERBATIM TRANSCRIPT. ANY PERSON WHO NEEDS A VERBATIM TRANSCRIPT OF THE PROCEEDINGS MAY NEED TO HIRE A COURT REPORTER. 9:00:20AM [ SOUNDING GAVEL ] 9:00:20AM >>Mayor Trice: GOOD MORNING. 9:00:22AM I'D LIKE TO CALL THIS CITY OF SARASOTA COMMISSION WORKSHOP 9:00:28AM TO ORDER. 9:00:29AM I'VE TURNED OFF MY -- SILENCED MY CELL PHONE BEFORE I CAME 9:00:36AM IN. 9:00:37AM SO I'M GOING TO ASK THAT EVERYONE ELSE SILENCE THEIR PHONES. 9:00:40AM WE'VE GOT VERY IMPORTANT DISCUSSION TODAY. 9:00:45AM COMMISSIONER ALPERT IS JOINING US VIA ZOOM. 9:00:50AM THAT THE PRODUCT WE'RE USING? 9:00:55AM I JUST WANTED TO MAKE SURE I WASN'T GIVING SOME OTHER ENTITY 9:00:59AM CREDIT. 9:01:00AM I WILL TURN IT OVER TO CITY MANAGER KARIE FRILING FOR 9:01:08AM OPENING REMARKS. 9:01:09AM >>Karie Friling: GOOD MORNING, EVERYONE. 9:01:10AM MADAM MAYOR AND COMMISSIONERS, I JUST HAVE A FEW OPENING 9:01:14AM REMARKS AND WE'LL DIVE RIGHT INTO THE BUDGET. 9:01:16AM THIS MORNING, I'M PLEASED TO PRESENT THE PROPOSED FISCAL 9:01:19AM YEAR 2026-2027 BUDGET FOR THE CITY OF SARASOTA. 9:01:23AM THIS BUDGET REPRESENTS MORE THAN SIX MONTHS OF DEDICATED 9:01:27AM WORK BY OUR STAFF, GUIDED BY THE LEADERSHIP OF OUR TWO 9:01:30AM FORMER INTERIM CITY MANAGERS UNDER THE COMMITMENT OF 9:01:33AM EMPLOYEES ACROSS ORGANIZATION. 9:01:36AM IT ALSO REFLECTS THE POLICY DIRECTION AND DIFFICULT 9:01:38AM DECISIONS MADE BY THIS COMMISSION OVER THE PAST YEAR TO 9:01:43AM RESTORE THE CITY'S FINANCIAL POSITION FOLLOWING THE 9:01:45AM EXTRAORDINARY COSTS ASSOCIATED WITH THE 2024 HURRICANE 9:01:49AM SEASON. 9:01:49AM ALTHOUGH I RECENTLY JOINED THE CITY, I HAVE SPENT THE PAST 9:01:53AM FEW WEEKS WORKING CLOSELY WITH OUR FINANCE TEAM AND EACH 9:01:56AM DEPARTMENT DIRECTOR TO REVIEW THIS BUDGET IN DETAIL. 9:01:58AM I AM CONFIDENT REFLECT SOUND FINANCIAL STEWARDSHIP ALIGNS 9:02:02AM WITH THE COMMISSION'S PRIORITIES AND POLICIES SET AND 9:02:05AM POSITIONS THE CITY TO REMAIN FINANCIALLY STRONG WHILE 9:02:08AM CONTINUING TO DELIVER HIGH-QUALITY SERVICES OUR RESIDENTS 9:02:11AM EXPECT. 9:02:11AM THE CITY IS IN A SIGNIFICANTLY STRONGER FINANCIAL POSITION 9:02:16AM THAN IT WAS A YEAR AGO. 9:02:17AM THROUGH THE COMMISSIONERS' LEADERSHIP AND THE HARD WORK OF 9:02:20AM OUR EMPLOYEES, WE HAVE REBUILT OUR FUND BALANCES, 9:02:23AM STRENGTHENED OUR FINANCIAL RESILIENCE, AND ARE BETTER

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] 9:02:26AM PREPARED TO RESPOND TO FUTURE CHALLENGES THAT WE MAY FACE. 9:02:30AM AS THE COMMISSION IS AWARE, THE PROPOSED BUDGET MUST BE 9:02:33AM ADOPTED BEFORE THE END OF SEPTEMBER, WELL IN ADVANCE OF THE 9:02:35AM NOVEMBER VOTE ON THE PROPOSED CONSTITUTIONAL AMENDMENT 3. 9:02:39AM WHILE OUR FOCUS TODAY IS ON ADOPTING A BALANCED AND FISCALLY 9:02:44AM RESPONSIBLE BUDGET FOR NEXT YEAR, WE MUST ALSO RESPONSIBLY 9:02:48AM PREPARE FOR THE UNCERTAINTY THAT COULD RESULT IF THE 9:02:50AM AMENDMENT IS APPROVED. 9:02:51AM ACCORDINGLY, WE ARE MOVING FORWARD ON TWO PARALLEL PATHS. 9:02:54AM FIRST IS A BUDGET BEFORE YOU TODAY, A BALANCED BUDGET THAT 9:02:57AM CONTINUES TO STRENGTHEN THE CITY'S FINANCIAL FOUNDATION 9:03:01AM WHILE MAINTAINING THE LEVEL OF SERVICE OUR RESIDENTS AND 9:03:04AM BUSINESSES HAVE COME TO EXPECT. 9:03:06AM THE SECOND IS EVALUATING THE POTENTIAL LONG-TERM FINANCIAL 9:03:09AM IMPACTS OF THE PROPOSED AMENDMENT 3 AND DEVELOPING 9:03:12AM THOUGHTFUL RESPONSE STRATEGIES SHOULD THE MEASURE BE 9:03:16AM ULTIMATELY APPROVED. 9:03:17AM THESE EFFORTS ARE THREE AREAS. 9:03:19AM IDENTIFYING OPPORTUNITIES TO REDUCE COSTS WHILE MINIMIZING 9:03:22AM NEGATIVE IMPACTS TO ESSENTIAL SERVICES, EVALUATING REVENUE 9:03:25AM OPTIONS THAT COULD HELP SUSTAIN CURRENT SERVICE LEVELS, AND 9:03:29AM IMPROVING ORGANIZATIONAL EFFICIENCY AND BUSINESS PROCESSES 9:03:32AM TO DELIVER SERVICES THAT ARE EFFECTIVELY AND LOWER LONG-TERM 9:03:37AM COST. 9:03:37AM THE WORK IS BEING APPROACHED DELIBERATELY AND STRATEGICALLY. 9:03:40AM OUR OBJECTIVE IS NOT ACROSS THE BOARD REDUCTIONS BUT 9:03:43AM TARGETED, DATA DRIVEN RECOMMENDATIONS THAT PROTECT CORE 9:03:47AM SERVICES AND POSITION THE CITY FOR LONG-TERM FINANCIAL 9:03:50AM SUSTAINABILITY. 9:03:50AM SIMPLY PUT, OUR APPROACH IS TO USE A SCALPEL, NOT A 9:03:54AM SLEDGEHAMMER AS WE APPROACH NOVEMBER. 9:03:57AM THESE ANALYSES AND RECOMMENDATIONS WILL BE PRESENTED TO THE 9:04:02AM COMMISSION SEPARATELY AT A FUTURE WORKSHOP, SEPARATE FROM 9:04:07AM THE BUDGET ADOPTION PROCESS, ALLOWING EACH DISCUSSION TO 9:04:11AM RECEIVE THE ATTENTION AND THOUGHTFUL DELIBERATION THEY 9:04:17AM DESERVE. 9:04:17AM TODAY'S PRESENTATION IS PROPOSED FISCAL YEAR 26-27 BUDGET, A 9:04:20AM BUDGET THAT REFLECTS FISCAL DISCIPLINE, STRENGTHENS THE 9:04:25AM CITY'S FINANCIAL FOUNDATION AND CONTINUES OUR COMMITMENT TO 9:04:27AM PROVIDING EXCEPTIONAL PUBLIC SERVICES TO THE CITY COMMUNITY. 9:04:32AM WITH THAT, I'LL TURN IT OVER TO FINANCE DIRECTOR KELLY 9:04:35AM STRICKLAND TO BEGIN THE BUDGET PRESENTATION. 9:04:37AM >>Mayor Trice: THANK YOU. 9:04:42AM >>Kelly Strickland: GOOD MORNING. 9:04:43AM MY NAME IS KELLY STRICKLAND. 9:04:43AM I'M DIRECTOR OF FINANCIAL ADMINISTRATION. 9:04:45AM WITH ME I HAVE TYLER HARRIS. 9:04:47AM HE IS THE BUDGET MANAGER FOR FINANCE. 9:04:49AM TODAY WE ARE GOING TO GO THROUGH POTENTIALLY THE CITYWIDE 9:04:56AM PORTION OF OUR BUDGET AND THEN NARROW DOWN INTO THE 9:04:59AM DEPARTMENTS OF THE GENERAL FUND. 9:05:00AM TO START OUT WITH, WE'RE GOING TO TALK ABOUT THE CITY

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] 9:05:05AM BUDGET, WHERE WE WERE LAST YEAR AND WHERE WE ARE NOW. 9:05:10AM WE'RE GOING TO HAVE A DISCUSSION ON OUR REVENUES, A 9:05:13AM DISCUSSION ON OUR EXPENDITURES, THE LEGISLATIVE PRIORITIES, 9:05:16AM AND THEN WE'RE GOING TO GO INTO EACH INDIVIDUAL GENERAL FUND 9:05:20AM DEPARTMENT. 9:05:21AM WHERE WERE WE LAST YEAR? 9:05:26AM THIS SLIDE PROVIDES A SNAPSHOT OF MAJOR CHALLENGES THE CITY 9:05:30AM FACED LAST YEAR AND HOW THEY SHAPED OUR FINANCIAL POSITION 9:05:33AM GOING INTO FISCAL YEAR 26-27. 9:05:38AM WE DEALT WITH MULTIPLE HURRICANES AND SIGNIFICANT RECOVERY 9:05:42AM NEEDS. 9:05:43AM THOSE STORMS CREATED UNCERTAINTY AND DELAYED FEDERAL 9:05:46AM REIMBURSEMENTS, WHICH STRAINED OUR ABILITY TO PLAN AND FUND 9:05:50AM NORMAL OPERATIONS. 9:05:51AM RISING NON-DISCRETIONARY EXPENSES SUCH AS PENSION 9:05:56AM CONTRIBUTIONS, RETIREMENT OBLIGATIONS AND INSURANCE ADDED 9:06:00AM FURTHER TO THE PRESSURE. 9:06:02AM THESE COSTS INCREASED AUTOMATICALLY AND ARE OUTSIDE OF THE 9:06:07AM DEPARTMENT'S CONTROL. 9:06:09AM TO MANAGE THE FINANCIAL IMPACT, WE SUSPENDED OUR EQUIPMENT 9:06:13AM REPLACEMENT PROGRAM AND WE REDUCED FUNDING ACROSS SEVERAL 9:06:17AM INTERNAL ALLOCATIONS. 9:06:19AM THESE MEASURES WERE TEMPORARY, BUT NECESSARY TO STABILIZE 9:06:22AM THE GENERAL FUND. 9:06:23AM WE ALSO HAD TO POSTPONE THE EMPLOYEE COST-OF-LIVING 9:06:27AM ADJUSTMENT, UNDERSCORING HOW TIGHT THE FISCAL ENVIRONMENT 9:06:30AM WAS AT THE TIME, THE MILLAGE WAS INCREASED FROM 3.0000 TO 9:06:36AM 3.2730 WHICH HELPS SUPPORT ESSENTIAL NEEDS AND MAINTAIN 9:06:43AM SERVICE LEVELS DESPITE THE CHALLENGES. 9:06:45AM OVERALL, THE LAST YEAR REQUIRED DIFFICULT DECISIONS AND 9:06:48AM CAREFUL PRIORITIZATION ALL AIMED AT PROTECTING CORE SERVICES 9:06:53AM WHILE NAVIGATING SIGNIFICANT INTERNAL PRESSURES. 9:06:57AM FOR A RECAP, HOW DID WE GET WHERE WE ARE TODAY? 9:07:03AM LAST YEAR'S FINANCIAL CHALLENGES WERE DRIVEN LARGELY BY 9:07:06AM THREE MAJOR STORMS -- DEBBY, HELENE, AND MILTON -- WHICH 9:07:11AM CREATED ABOUT 50 MILLION IN COSTS WITH 16 MILLION DIRECTLY 9:07:16AM IMPACTING OUR GENERAL FUND. 9:07:18AM AS A RESULT, OUR UNASSIGNED FUND BALANCE DROPPED TO 10.9%, 9:07:22AM WELL BELOW THE CITY'S 17 TO 25 PERCENT RESERVE. 9:07:26AM THROUGH DISCIPLINED BUDGETING AND EARLY REIMBURSEMENT 9:07:29AM PROCESS, THE FUND BALANCE IS BEING BROUGHT BACK WITHIN THE 9:07:36AM POLICY RANGE. 9:07:37AM WE'RE EXPECTING THAT AT THE END OF THIS FISCAL YEAR WE WILL 9:07:41AM HAVE AN UNRESERVED FUND BALANCE OF 17.1%. 9:07:46AM OUR FEMA REIMBURSEMENTS AND INSURANCE PROCEEDS TOTALING 9:07:50AM POTENTIALLY 11.7 MILLION WERE KEY TO THAT IMPROVEMENT. 9:07:55AM SO WE DID RECEIVE THAT. 9:07:56AM LOOKING AHEAD, POTENTIAL PROPERTY TAX REFORM COULD REDUCE 9:08:01AM REVENUES IN THE FUTURE YEARS, MAKING CONTINUED RESERVE 9:08:05AM REBUILDING EVEN MORE IMPORTANT. 9:08:07AM OVERALL THIS SLIDE SHOWS HOW THE STORM IMPACTS, THE RECOVERY

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] 9:08:11AM EFFORTS, AND THE POLICY PRESSURES HAVE SHAPED OUR CURRENT 9:08:15AM FINANCIAL POSITION. 9:08:16AM OUR GOALS AND OBJECTIVES FOR THE CURRENT FISCAL YEAR 9:08:24AM 2025-26. 9:08:26AM LAST YEAR, OUR PRIMARY FOCUS HAD BEEN FISCAL STABILITY AND 9:08:30AM REBUILDING OUR RESERVES. 9:08:31AM WE BEGAN YEAR ONE OF THE THREE-YEAR PLAN TO RESTORE THE 9:08:35AM GENERAL FUND RESERVE LEVELS BACK TO THE 17 TO 25 PERCENT 9:08:39AM POLICY TARGET. 9:08:40AM WE MAINTAINED SERVICE LEVELS THROUGHOUT THE YEAR, EVEN WHILE 9:08:45AM DEPARTMENTS WERE ASKED TO OPERATE WITH TIGHTER BUDGETS. 9:08:48AM TO MANAGE THE WORKFORCE RELATED COST PRESSURES, WE POSTPONED 9:08:51AM THE EMPLOYEE COLA AND THE BENEFIT ADJUSTMENTS WHILE STILL 9:08:56AM ABSORBING UNAVOIDABLE INCREASES IN PENSION, HEALTH 9:08:59AM INSURANCE, FLEET AND SELF-INSURANCE COSTS. 9:09:02AM WE CONTINUED ADVANCING LONG-TERM STABILITY EFFORTS, 9:09:06AM INCLUDING MULTIYEAR REVENUE AND RATE STRATEGIES AND 9:09:09AM MONITORING DECLINING REVENUE SOURCES TO IDENTIFY EARLY 9:09:14AM CORRECTIVE ACTIONS. 9:09:15AM WE SUPPORTED ESSENTIAL CAPITAL AND INFRASTRUCTURE 9:09:19AM PRIORITIES, ESPECIALLY HURRICANE RELATED REPAIRS THAT NEEDED 9:09:23AM ATTENTION DESPITE CONSTRAINED RESOURCES. 9:09:26AM AND FINALLY, WE REAFFIRMED OUR PUBLIC SAFETY COMMITMENT, 9:09:30AM ENSURING THAT THE POLICE AND FIRE OPERATIONS REMAIN FULLY 9:09:34AM FUNDED EVEN AS WE BALANCE THE RISING NON-DISCRETIONARY COST. 9:09:40AM LASTLY, WE ESTABLISHED THE SOLID WASTE DEBRIS RESERVE. 9:09:43AM THAT WAS A REQUEST FROM LAST YEAR AND IN THE EVENT OF A NEW 9:09:48AM HURRICANE, WE HAVE A RESERVE ESTABLISHED THAT WE CAN USE FOR 9:09:51AM THE IMMEDIATE USE FOR CLEANUP. 9:09:54AM THIS IS THE CITY'S TOTAL PROPOSED BUDGET, AND YOU'LL SEE THE 9:10:02AM CURRENT BUDGET FISCAL YEAR '25-26 AND THEN THE PROPOSED 9:10:08AM BUDGET FOR '26-27. 9:10:10AM AS YOU CAN SEE, THIS BUDGET HAS OVERALL INCREASE OF 18.7 9:10:15AM MILLION. 9:10:15AM THE MAJOR CHANGES INCLUDE -- AND I REALLY STRESS THAT YOU 9:10:20AM LOOK AT EACH INDIVIDUAL FUND TYPE -- WAS THE GENERAL FUND. 9:10:24AM THE GENERAL FUND INCREASED 4.4 MILLION. 9:10:27AM THIS IS PRIMARILY DUE TO THE COLAs AND THE 9:10:30AM NON-DISCRETIONARY COSTS THAT WE HAVE. 9:10:35AM SPECIAL REVENUE DECREASED 2.3 MILLION. 9:10:39AM THAT'S SPENDING OF RESTRICTED FUNDING SOURCES SUCH AS THE 9:10:43AM MAJOR DECREASE WAS IN TOURIST DEVELOPMENT FOR LIDO BEACH 9:10:46AM PROJECT AND EROSION. 9:10:47AM THESE ARE COMPLETED PROJECTS. 9:10:50AM THE DEBT SERVICE DID NOT CHANGE. 9:10:54AM THE SAME PRINCIPAL AND INTEREST. 9:10:56AM WE HAD NO NEW DEBT SO THAT WAS PRETTY MUCH A STABLE 9:11:00AM EXPENDITURE THERE. 9:11:01AM THE ENTERPRISE FUNDS, THIS IS PRIMARILY AN INCREASE IN THE 9:11:07AM WATER AND SEWER FUND FOR PLANNED SPENDING ON CAPITAL 9:11:10AM IMPROVEMENTS. 9:11:11AM THEN YOU SEE THE INTERNAL SERVICE FUND.

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] 9:11:15AM INTERNAL SERVICE FUND ARE THE FUNDS THAT FUND THE CITY, SUCH 9:11:18AM AS THE FLEET SERVICES, WHICH IS THE GARAGE OR OUR 9:11:21AM SELF-INSURANCE FUND OR OUR INFORMATION TECHNOLOGY FUND, OUR 9:11:26AM EQUIPMENT REPLACEMENT. 9:11:27AM WE HAVE AN INCREASE OF 2.9 MILLION THERE. 9:11:31AM THAT IS PRIMARILY DUE TO THE INSURANCE COVERAGE INCREASE 9:11:34AM THAT WE HAVE IN OUR SELF INSURANCE FUNDS. 9:11:38AM AND THEN THE TRUST FUNDS. 9:11:40AM WE HAVE OPEB AND THE DEFINED CONTRIBUTION. 9:11:43AM WE HAVE 195,000 DECREASE DUE TO MEDICAL, DENTAL AND 9:11:52AM INSURANCE EXPENSE CLAIMS. 9:11:53AM THEY ARE SLIGHTLY LOWER BECAUSE THE RETIREES ARE SWITCHING 9:11:56AM FROM OUR PLAN TO A SEPARATE INSURANCE PLAN WHERE AT THAT 9:12:01AM POINT WE JUST PAY THE PREMIUMS AS OPPOSED TO THEIR ACTUAL 9:12:05AM MEDICAL COSTS. 9:12:06AM WE ARE PROPOSING A BUDGET WITH 832 FULL-TIME POSITIONS FOR 9:12:15AM FISCAL YEAR '27. 9:12:16AM THIS IS AN INCREASE OF FIVE POSITIONS. 9:12:19AM EACH ADDED POSITION REFLECTS A HIGHER LEVEL OF SERVICE FOR 9:12:23AM THE COMMUNITY. 9:12:25AM PART-TIME, TEMPS AND CONTRACT POSITIONS THAT ARE NOT 9:12:28AM INCLUDED IN THE CHART. 9:12:29AM GENERAL FUND POSITIONS HAVE DECREASED DUE TO THE 9:12:33AM REDISTRIBUTION OF EMPLOYEES FOR LISTING OF POSITION 9:12:42AM ADDITIONS. 9:12:42AM ON PAGE 95 OF YOUR WORKBOOK, THERE IS A LIST, A SUMMARY OF 9:12:51AM ALL FUNDS SECTION THAT WILL LIST OUT EACH POSITION IN EACH 9:12:55AM FUND. 9:12:55AM SO YOU CAN SEE THAT INFORMATION. 9:13:00AM THIS SLIDE IS A SLIDE ABOUT THE CITY'S PENSION OBLIGATIONS 9:13:09AM AND THE FACTORS THAT AFFECT OUR CHANGE OR NO CHANGE, 9:13:13AM INVESTMENT RETURNS, ALLOWANCE OF LUMP SUM DISTRIBUTION, 9:13:17AM LOWER CONTRIBUTIONS, ACTUARIAL REPORT IS DONE FOR EACH OF 9:13:23AM THESE PENSION PLANS TO DETERMINE THE AMOUNT OF OUR ANNUAL 9:13:25AM REQUIRED CONTRIBUTION. 9:13:27AM I WANT TO JUST POINT OUT A LITTLE BIT, THE GENERAL FUND 9:13:30AM EMPLOYEE PENSION HAD A DECREASE OF 239,000. 9:13:35AM IT IS A CLOSED PLAN. 9:13:37AM IT IS 81.6% FUNDED. 9:13:40AM THE POLICE OFFICER PENSION HAD AN INCREASE OF 221,000. 9:13:45AM IT IS AN OPEN PLAN, AND IT IS 91% FUNDED. 9:13:49AM THE FIREFIGHTERS PENSION PLAN HAD A $371,000 INCREASE. 9:13:54AM IT IS A CLOSED PLAN. 9:13:56AM AND 89.2% FUNDED. 9:13:59AM THE OPEB, THE OTHER POST-EMPLOYMENT BENEFITS, HAD AN 9:14:05AM INCREASE OF 939,000. 9:14:08AM THIS IS FOR PRE-1993 EMPLOYEES, AND IT IS 86.7% FUNDED. 9:14:15AM AND THEN IF YOU'LL RECALL IN 2009, THE CITY MOVED TO THE 9:14:20AM FLORIDA RETIREMENT SYSTEM. 9:14:22AM THE INCREASE OF CONTRIBUTION REQUIRED IS 1.7 MILLION. 9:14:26AM THIS IS AN OPEN PLAN, AND IT IS A STATEWIDE PLAN. 9:14:30AM THE BUDGET ISSUES THAT ARE PROPOSED IN THE CITY FOR FISCAL

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] 9:14:39AM YEAR 26-27, AND I WILL POINT OUT THAT THIS IS A CITYWIDE 9:14:44AM SLIDE, THE TOTAL BUDGET ISSUES WILL BE DISCUSSED IN DETAIL 9:14:47AM IN EACH PROSPECTIVE FUND OR DEPARTMENT DISCUSSION. 9:14:54AM THERE ARE THREE ADDITIONAL POSITIONS PROPOSED FOR THE 9:14:56AM GENERAL FUND. 9:14:57AM IF APPROVED, THE REDEVELOPMENT POSITION, REDEVELOPMENT 9:15:02AM PROJECT SPECIALIST POSITION WOULD BE PARTIALLY SUPPORTED BY 9:15:06AM THE CRA IN THE AMOUNT OF 57,000. 9:15:09AM SO YOU SEE ON THE SLIDE, THE COST TO THE GENERAL FUND IS 9:15:14AM 28,000. 9:15:16AM I WOULD LIKE TO BRING YOUR ATTENTION TO THE FUNDING FOR THE 9:15:23AM NEIGHBORHOOD GRANTS IN THE AMOUNT OF 40,000 HAS BEEN 9:15:26AM IDENTIFIED AS A BUDGET ISSUE. 9:15:28AM AS WE ENTER INTO YEAR TWO OF OUR THREE-YEAR PLAN TO RESTORE 9:15:32AM OUR FUND BALANCE AND RESERVES, THIS ITEM IS PRESENTED TO THE 9:15:36AM COMMISSION FOR FUNDING DECISION. 9:15:38AM THE GENERAL FUND BUDGET ISSUE IMPACT IS $251,000. 9:15:44AM THIS PROPOSED BUDGET ALSO ADDS AN ADMINISTRATIVE POSITION TO 9:15:49AM BOTH THE DOWNTOWN IMPROVEMENT DISTRICT AND THE BUILDING 9:15:53AM FUND. 9:15:53AM THESE FUNDS OPERATE INDEPENDENTLY FROM THE GENERAL FUND AND 9:15:59AM HAVE THEIR OWN DEDICATED REVENUE SOURCES. 9:16:02AM DURING THE SPECIAL MEETING, TOMORROW AFTERNOON, THE CITY 9:16:09AM COMMISSION WILL BE ASKED TO ADVANCE EACH OF THESE ISSUES TO 9:16:12AM BE INCLUDED IN THE PUBLIC HEARINGS TO ADOPT FOR FISCAL YEAR 9:16:17AM 26-27. 9:16:20AM I DO WANT TO NOTE THAT UNTIL WE KNOW THE RESULTS OF THE 9:16:25AM PROPERTY TAX REFORM VOTE IN NOVEMBER, THE GENERAL FUND 9:16:28AM POSITIONS WILL NOT BE FILLED. 9:16:30AM EXCUSE ME. 9:16:36AM [COUGHING] 9:16:37AM NOW I'M GOING TO MOVE THE DISCUSSION SPECIFICALLY TO THE 9:16:42AM GENERAL FUND BUDGET. 9:16:44AM THE GENERAL FUND IS THE MAIN OPERATING FUND USED TO ACCOUNT 9:16:51AM FOR AND REPORT ALL FINANCIAL RESOURCES THAT ARE NOT 9:16:54AM ACCOUNTED FOR OR REPORTED IN OTHER FUNDS. 9:16:58AM THE BUDGETED REVENUES OF 114 MILLION ARE HIGHER THAN THE 9:17:03AM BUDGETED EXPENDITURES OF 113 MILLION. 9:17:08AM THE DIFFERENCE IS 1.1 MILLION DUE TO THE THREE-YEAR PLAN TO 9:17:14AM REPLENISH THE FUND BALANCE. 9:17:15AM THIS CHART REPRESENTS THE ACTUAL PERCENT OF UNASSIGNED FUND 9:17:25AM BALANCE TO EXPENDITURES FOR THE PAST TEN YEARS. 9:17:28AM THE TWO LINES REPRESENT THE GOVERNMENTAL FINANCE OFFICERS 9:17:31AM ASSOCIATION RECOMMENDATION THAT WE HAVE 17 TO 25 PERCENT, OR 9:17:36AM TWO TO THREE MONTHS OF OPERATIONS IN CASE FOR UNFORESEEN 9:17:40AM DISASTERS. 9:17:40AM THE LOWEST THAT THE CITY HAS DROPPED IS THE 10.9, WHICH 9:17:46AM OCCURRED IN FISCAL YEAR '25, WHICH IS DUE TO THE USE OF OUR 9:17:51AM FUND BALANCE IN RESPONSE TO THE HURRICANES. 9:17:52AM THE HIGHEST THAT THE CITY HAS ENDED UP IS 31.9 PERCENT, 9:17:57AM WHICH OCCURRED IN FISCAL YEAR 2022. 9:18:01AM IN RESPONSE TO THE SEVERE DROP IN FUND BALANCE IN FISCAL

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] 9:18:05AM YEAR '25, THE CITY ADOPTED A BUDGET IN FISCAL YEAR '26 THAT 9:18:10AM INCREASED REVENUES OVER EXPENDITURES FOR A THREE-YEAR PLAN 9:18:13AM OF RESTORING THE FUND BALANCE BACK TO THE REQUIRED POLICY 9:18:17AM LEVEL OF 17 TO 25. 9:18:21AM AS A COASTAL CITY, IT'S VERY IMPORTANT TO MAKE SURE THAT WE 9:18:23AM HAVE SUFFICIENT RESERVES FOR POTENTIAL STORM DAMAGE. 9:18:27AM HOWEVER, WE SHOULD ALSO BE SENSITIVE TO THE OBJECTIVES OF 9:18:30AM THE POLICY GUIDELINES WHICH THE CITY COMMISSION HAS ADOPTED 9:18:34AM TO HAVE AT LEAST TWO TO THREE MONTHS, OR 17 TO 25 PERCENT OF 9:18:38AM FUND BALANCE TO EXPENDITURES. 9:18:40AM THIS IS ALSO A RECOMMENDATION OF THE GOVERNMENT OFFICERS 9:18:45AM FINANCE ASSOCIATION. 9:18:46AM THE CITY ALSO A REVENUE STABILIZATION POLICY. 9:18:57AM WITHDRAWALS FROM THE REVENUE STABILIZATION FUNDING CAN ONLY 9:19:00AM BE CONSIDERED IF THE GENERAL FUND'S RECURRING REVENUES 9:19:04AM DECLINE AT LEAST 3% BELOW OUR BUDGET PROJECTIONS IN THE 9:19:07AM CURRENT YEAR AND ALSO ONLY ONE-THIRD OF THE REVENUE CAN BE 9:19:14AM RECOVERED BY USING THE REVENUE STABILIZATION FUNDING DURING 9:19:18AM ANY ONE FISCAL YEAR. 9:19:20AM NO MORE THAN 25 PERCENT OF THE REVENUE STABILIZATION FUND 9:19:24AM BALANCE CAN BE WITHDRAWN PER YEAR, AND USE OF THE REVENUE 9:19:28AM STABILIZATION FUNDING MUST BE APPROVED BY THE CITY 9:19:30AM COMMISSION. 9:19:31AM I JUST WANT TO POINT OUT THIS FUND HAS $3.8 MILLION IN IT. 9:19:38AM SO WHEN I GIVE YOU THE NUMBERS OF WE ARE PROJECTING WE ARE 9:19:42AM GOING TO BE AT 17.1% AT THE END OF THIS YEAR, WE DO NOT 9:19:46AM INCLUDE THE REVENUE STABILIZATION FUND. 9:19:48AM THAT IS ON TOP OF IT. 9:19:49AM THIS SLIDE GIVES YOU A LOOK OF WHERE WE ARE AND WHERE WE 9:19:59AM ESTIMATE WE'RE GOING TO BE AT THE END OF FISCAL YEAR '27. 9:20:03AM SO OUR FUND BALANCE, WE'RE PROJECTING TO GROW FROM 17.6 9:20:11AM MILLION TO 19 MILLION. 9:20:14AM OUR REVENUES AND EXPENDITURES ARE RISING SLIGHTLY WITH AN 9:20:17AM ENDING FUND BALANCE OF 1.1 MILLION. 9:20:20AM AND OUR RESERVES ARE INCREASING TO 20.1 MILLION, IMPROVING 9:20:25AM OUR RATIO FROM 17.1 UP TO 17.8, WHICH IS WITHIN THE CITY'S 9:20:31AM POLICY. 9:20:31AM AGAIN, I JUST WANT TO POINT OUT FISCAL YEAR 27 IS YEAR THREE 9:20:38AM OF OUR PLAN TO RESTORE OUR RESERVES. 9:20:40AM IF WE ADD IN THE 3.8 MILLION REVENUE STABILIZATION, YOU CAN 9:20:49AM SEE THAT THAT INCREASES OUR BALANCE SIGNIFICANTLY. 9:20:56AM INCLUDED THE BEGINNING RESERVES RISE TO 19 AND THEN THE 9:21:01AM ENDING RESERVES ARE AT 23. 9:21:06AM THIS BOOSTS OUR RESERVE FUND BALANCE FROM 17 TO 21.2, 9:21:12AM PLACING US SOLIDLY WITHIN OUR POLICY RANGE. 9:21:16AM POTENTIAL WAYS TO REPLENISH THE UNASSIGNED FUND BALANCE 9:21:24AM RESERVES, AND I USE THE WORD FUND BALANCE SIMULTANEOUSLY 9:21:28AM WITH RESERVES. 9:21:29AM THEY ARE ONE AND THE SAME. 9:21:32AM FIRST OF ALL, OUR RESERVES CAN BE REBUILT BY REDUCING OUR 9:21:35AM OPERATING COSTS. 9:21:37AM BUT THAT MAY AFFECT THE SERVICE LEVELS.

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] 9:21:40AM SO ANY REDUCTIONS MUST BE CAREFULLY CONSIDERED. 9:21:44AM SECONDLY, WE CAN INCREASE REVENUES THROUGH SEVERAL OPTIONS. 9:21:47AM ADJUSTING THE MILLAGE RATE, RAISING FEES FOR SERVICES, 9:21:51AM EXPLORING SPECIAL ASSESSMENTS, OR IDENTIFYING OTHER REVENUE 9:21:55AM OPPORTUNITIES. 9:21:56AM THIRD, FEMA REIMBURSEMENTS WILL PLAY A MAJOR ROLE. 9:22:02AM WE RECEIVED 9.8 MILLION SO FAR. 9:22:04AM THE TOTAL STORM RELATED COSTS ARE MUCH HIGHER SO CONTINUED 9:22:08AM REIMBURSEMENTS ARE ESSENTIAL TO RESTORING OUR RESERVES. 9:22:11AM THE OVERALL TAKEAWAY, WE ARE UTILIZING A MULTIPRONG, 9:22:17AM MULTIYEAR APPROACH USING EXPENDITURE CONTROLS, REVENUE 9:22:22AM ENHANCEMENTS AND FEDERAL AND STATE REIMBURSEMENTS TO REBUILD 9:22:25AM OUR RESERVES TO POLICY LEVELS. 9:22:27AM WE HAVE A LAYERED STRATEGY TO MANAGE THESE RESERVES WHEN A 9:22:37AM DISASTER HITS, WE'RE DEPLOYING OUR RESERVES. 9:22:41AM NOW WE HAVE THE SOLID WASTE DEBRIS REMOVAL THAT WE CAN USE 9:22:45AM FOR OUR CLEANUP RIGHT OFF THE BAT AND IT DOESN'T AFFECT OUR 9:22:48AM GENERAL FUND. 9:22:48AM SHORT TERM, WE CAN FILE FOR FEMA CLAIMS. 9:22:55AM WE CAN AWAIT APPROXIMATELY 75% FEDERAL REIMBURSEMENT AND 9:23:00AM POSSIBLY ANOTHER 12.5 STATE REIMBURSEMENT. 9:23:06AM MEDIUM TERM, WE APPLY FOR GRANTS FOR OUR RECOVERY PROJECTS. 9:23:09AM LONG TERM, WE MAKE BUDGET ADJUSTMENTS TO RESTORE OUR 9:23:13AM RESERVES TO THE POLICY LEVELS. 9:23:14AM WE HAVE BUDGET AMENDMENTS AND CUTS. 9:23:17AM WE CAN REDUCE AND DELAY NONCRITICAL CAPITAL PROJECTS. 9:23:20AM WE CAN HAVE A HIRING FREEZE TO REDUCE EXPENDITURES. 9:23:25AM OUR BUDGET IS PRIMARILY PEOPLE. 9:23:28AM WE CAN REDIRECT REVENUES TEMPORARILY TO REPLENISH OUR 9:23:34AM RESERVES. 9:23:35AM WE HAVE INSURANCE PROCEEDS. 9:23:36AM WE ARE INTERFUND BORROWING. 9:23:38AM AS YOU REMEMBER THE SLIDE I SHOWED WHERE WE HAVE OUR GENERAL 9:23:42AM FUND, WE HAVE SPECIAL REVENUE, WE HAVE OUR ENTERPRISE FUNDS, 9:23:47AM AND WE HAVE OTHER FUNDS THAT ARE RESTRICTED FOR SPECIFIC 9:23:53AM SOURCES, BUT IF IT MEETS THE SOURCE POTENTIALLY WE HAVE A 9:23:56AM SOURCE THERE. 9:23:56AM WE CAN DO SHORT-TERM BORROWING AND WE CAN INCREASE OUR 9:24:02AM REVENUES. 9:24:02AM OUR PLAN PHASES IN THE RESERVE REPLENISHMENT OVER THREE 9:24:15AM FISCAL YEARS. 9:24:17AM WE'LL SPEND LESS THAN BUDGETED. 9:24:18AM WE'LL BUILD RESERVES THROUGH SURPLUSES, AND WE'LL MAKE 9:24:21AM TARGETED CONTRIBUTIONS, INCLUDING POTENTIAL AD VALOREM 9:24:25AM ADJUSTMENTS IF NEEDED. 9:24:26AM WE'LL ALSO DELAY OR REPRIORITIZE PROJECTS TO FREE THE 9:24:31AM CAPACITY FOR RESERVE REBUILDING. 9:24:33AM THE GOAL IS TO HIT THE POLICY DRIVEN FUND BALANCE TARGETS 9:24:37AM CONSISTENTLY. 9:24:38AM THIS IS A LONG-TERM APPROACH, AND IT DEMONSTRATES TO MOODY'S 9:24:41AM AND FITCH THAT WE'RE COMMITTED TO MAINTAINING HEALTHY 9:24:44AM RESERVES, SUPPORTING STRONG BOND RATINGS AND LOWER BORROWING

file:///C/Users/JJohnson/Desktop/26-07-27-CommissionBudgetWorkshop.txt[7/27/2026 7:49:10 PM] 9:24:49AM COSTS. 9:24:50AM REMEMBER, OUR RESERVE POLICY CALLS FOR 17 TO 25 PERCENT, 9:24:53AM ROUGHLY TWO TO THREE MONTHS OF OPERATIONS, PLUS THE REVENUE 9:24:58AM STABILIZATION FUND OF 3.8 MILLION GIVES US AN ADDED 9:25:02AM PROTECTION AGAINST REVENUE DIPS. 9:25:04AM OUR BOND RATINGS REMAIN STRONG BECAUSE OF OUR HEALTHY 9

Meeting record textCity Commission Workshop - Budget — Closed Captions