May 13, 2024 City Council Budget Workshop (2024-05-13)

MINUTES BUDGET WORKSHOP DESTIN CITY COUNCIL MAY 13, 2024 ANNEX COUNCIL CHAMBERS 6: 30 PM The Council of the City of Destin met in special session with the following members and staff present: Destin City Council Mayor Bobby Wagner Councilmember Johnny King Councilmember Jim Bagby Councilmember Kevin Schmidt Councilmember Dewey Destin Councilmember Teresa Hebert Councilmember John Stephens City of Destin Staff City Manager Louis Zunguze City Clerk Rey Bailey Public Information Director Tamara Young IT Director Andy Peters Public Works Director Michael Burgess City Engineer Ryan Scott Projects/ Grants/ Contract Manager Jeffrey Cozadd Finance Director Krystal Strickland Parks& Recreation Director Lisa Firth HR Director Jamie Haynes Parks& Recreation Asst Dir Ryan Reed Library Director Wen Livingston City Attorney Kimberly Romano Kopp PUBLIC COMMENTS WORKSHOP A. Fiscal Year 2025 Budget The city' s Finance Director Krystal Strickland provided an overview of the proposed budget for Fiscal Year 2025. She outlined a total budget of$ 53. 5 million for the upcoming fiscal year. Highlights included a general increase in property values by 8%, and a modest 3% increase in operating expenses 2025 Budget Process Visioning Session— February 29, 2024 Budget Workshop # 1 — May 13, 2024 Budget Workshop #2 —June 24, 2024 ( proposed cancellation) Budget Workshop #3 — July 8, 2024 Adoption of Tentative Millage Rate and Certify to Property Appraiser July 17, 2024 Adoption of a Balanced Budget: Public Hearing# 1: September 6, 2024 Public Hearing# 2: September 16m 2024

Prioritized Strategic Goals I. Financially sound city providing service excellence. II. Enhanced quality of life and safety for families. III. Economic development and revitalization IV. Effective, efficient, and aesthetically pleasing infrastructure. V. Improve mobility and connectivity. VI. A green and sustainable environment. VII. Offer livable wages & benefits to attract & maintain a high caliber, qualified staff. Council' s Critical Priorities Work with stakeholders to pursue the Destin City Center ( In Process FY24 Budget) Public Waterfront acquisition initiative ( Completed FY24 Budget) Underground Utilities ( FY25 Budget + In Process) Stahlman and US 98 pedestrian vehicle improvements ( In Process FY24 Budget) Pedestrian access concepts under the Marler Bridge ( In Process FY24 Budget) Two- lane Crosstown Connector ( FY25 Budget + In Process) Improve parking ( In Process) Annexation of unincorporated enclaves ( In Process) Operational Highlights— FY 25 Proposed Budget = $53. 5 million FY 2025 FY 2025 Uses by Category Operating Capital PROPOSED of Total Budget General Government 10, 560, 680 $ 10, 560, 680 20% Public Safety 5, 984,887 471,000 6,455, 887 12% Physical Environment 426, 227 4, 535,003 4,961, 230 9% Transportation 2, 619, 216 14, 580, 741 17, 199, 957 32% Economic Development 231, 034 231, 034 0% Health & Human Services 75, 355 75, 355 0% Culture & Recreation 5, 610,686 8, 478,846 14, 089, 532 26% Total Uses 25, 508, 086 $ 28, 065, 590 $ 53, 573, 676 Page 2 of 14

2025 Proposed Budget vs. 2024 Adopted Budget 2025 Expenditures by Activity 2024 PROPOSED $ change % change BUDGET' 2024 vs 2025 BUDGET General Government 5, 257,410 $ 5, 270,122 $ 12, 713 0% Public Safety 5, 579,013 5,984,887 405,874 7% Ops Physical Environment 645,415 426,227 219, 188) - 34% Change Transportation 2, 278,629 2, 619,216 340,588 15% Economic Development 409,945 231, 034 178,911) - 44% 3. 0% Health& Human Services 107,370 75,355 32, 015) - 30% Culture& Recreation 5, 352,220 5, 610,686 258,466 5% Debt Service 3, 364,660 5,290,557 1, 925,897 57% Capital Outlay 51, 893, 248 28,065,589 ( 23,827,660) - 46% TOTAL EXPENDITURES $ 74, 887,910 $ 53, 573, 675 $ ( 21, 314,235) - 28% Operational Highlights Percent All Funds 2024 2025 increase FY25 Expenditures by Type Budget Budget vs FY24 Personnel 10,473,643 $ 11, 823,990 11% Contract Services 5, 048,862 4,747, 947 6% Operations 3, 742,001 3, 645, 592 3% Debt Service 3, 730, 156 5, 290,557 29% Capital Outlays 51, 893,248 28,065,589 85% Total Expenditures 74,887,910 $ 53, 573, 675 40% Personnel Highlights Personnel is 21% of the total proposed FY 2025 Budget 3. 5% Cost of Living (March CPI) $ 273, 202 4. 0% Merit 312, 230 5. 0% Health Insurance Increase $80, 900 7. 73 FTE New Positions* 615, 720 fully loaded (fica, benefits, workers comp) Percent All Funds 2024 2025 increase FY25 Expenditures by Type Budget Budget vs FY24 Personnel 10, 473, 643 $ 11, 823, 990 11% Page 3 of 14

135. 63 FTEs FY 2025 FY 2025 BASE SALARIES 7, 805, 774 FTEs COLA 273, 202 Geri Gov 35. 20 MERIT 312, 231 Public Safety 24. 45 OVERTIME 98, 870 Stormwater 3. 00 SPECIAL PAY 96, 486 ITransportation 19. 00 FICA 134 988 Culture & Recreation 53. 98 RETIREMENT 902, 080 135.6251 INSURANCE 1, 939, 567 WORKERS COMP 189, 110 OTHER BENS ( RELO; ED; UNEMPLMT 71, 682 11, 823, 990 DISCUSSIONS: A discussion on merit increases ensued, focusing on whether it should be added to base salaries or provided as one-time stipends to control long-term costs. Councilmember King proposed that merit increases be provided as one- time stipends rather than being added to base salaries, to control long-term costs. He highlighted concerns about compounding costs and the importance of maintaining fiscal responsibility. Councilmember Schmidt supported this approach, suggesting that departments be given a budget to distribute as merit stipends based on performance. The council agreed to further explore this option and requested additional data on the financial impact of merit increases. 7. 73 FTE New Positions * 615, 720 fully loaded ( FICA, benefits, workers comp) Pay Plan E # HRS per PRIMARY DEPARTMEI.j EMP ID,_' Recommended Title Grade WEEK 0152442 CODE ENFORCE! W1 Code Compliance Officer I 105 40 0154160 PUBLIC WORKS W2 Lead Maintenance Technician 105 40 0154160 PUBLIC. WORKS W3 Maintenance Technician 103 40 0154160 PUBLIC WORKS W4 Maintenance Technician 103 40 0154160 PUBLIC WORKS W5 Maintenance Technician 103 40 0151932 IT W6 Systems Administrator Specialist 107 40 0151531 COM DEV W7 Planning Manager 112 40 0151212 CITY MGR W8 Content Creator 103 I 29 Page 4 of 14

DISCUSSIONS: The Code Compliance Director proposed adding one new code enforcement officer, highlighting the increasing workload due to short-term rental registrations, livery vessel registrations, and other responsibilities; stating that the additional staff member would help manage these growing demands. He also highlighted the unique challenges faced by the city and the need for adequate staffing to ensure compliance and enforcement. Councilmember King expressed concerns about the proposed increase, given the recent additions to the team. Councilmember Schmidt suggested exploring potential collaborations and data sharing with the county to streamline processes and reduce the need for additional staff. Councilmember Hebert questioned the necessity of the new position, given that the proposed legislation for short-term rentals had not yet been voted on. She emphasized the importance ofjustifying the need for additional personnel based on current and future demands. The Code Compliance Director acknowledged the concerns and agreed to provide more detailed information on the current workload, the impact of the proposed new staff addition, and the specific needs that the new position would address. The council agreed to revisit the discussion once more data was available. Operational Highlights — (Bring Median Maintenance In- House) FY 2025 PROPOSED BUDGET FY 2024 ( CITY MGR BUDGET LEVEL) FY 2026 FY2027 FY2028 PERSONNEL 298,302 $ 309, 020 $ 320, 150 $ 331, 690 CONTRACTS 336, 176 OPERATIONS 15,750 16, 230 16, 720 17, 220 CAPITAL EQUIPMENT 114,000 336, 176 $ 428, 052 $ 325, 250 I $ 336, 870 I $ 348,910 4 FTEs 114k in Equipment (Mowers, Truck, Trailer) DISCUSSIONS: The Finance Director introduces the proposal for bringing median maintenance services in-house, outlining the primary benefits of this move and emphasizing cost efficiency, improved quality and reliability, better oversight, quicker response times, staff development, and reduced pressure on Parks and Recreation Department. Cost Efficiency: By bringing services in-house, the city can avoid contractor profit margins and administrative overhead. All work would be performed by Page 5 of 14

city staff, not subject to contract cost escalations. Purchases of materials, equipment, or supplies would be tax-exempt. Improved Quality and Reliability: Direct accountability to management with daily contact with the lead maintenance technician, field services supervisor, and the Finance Department. Avoid ongoing issues with current median maintenance contractor, including problems with accountability and communications, which would be mitigated by bringing services in-house. Quicker response times and prioritization of the city were also highlighted. Succession Planning and Staff Development: Bringing services in-house would facilitate staff development and succession planning, allowing for the training of new staff members. The city would aim to provide staff with spray licenses and CDL licenses. Reduction of Pressure on Parks and Recreation Department: By taking over the maintenance of certain areas, the department would be able to focus more on park-related activities. Councilmember Stephens inquired about the wages and certification requirements for the new in-house team. The Finance Director confirmed that the lead maintenance technician would hold a spray license and that efforts would be made to train staff with CDL licenses and other necessary certifications. Councilmember Destin asked if the proposed crew could handle additional areas, such as Commons Drive if annexed. The Finance Director indicated she would need to verify current maintenance responsibilities but suggested the in-house crew could adapt to new areas as needed. Councilmember Schmidt asked about the specific zones covered under the proposal. The Finance Director listed several areas including Harbor Boulevard, Airport Road, Mountain Drive, and Main Street. Councilmember King expressed concerns about simply adding more personnel without addressing the core issues. He suggested the possibility of re-bidding the contract to find a more cost- effective solution. Councilmember Hebert highlighted the difficulty in hiring reliable personnel and the importance of getting a better understanding of long-term costs and benefits before making a decision. Councilmember Bagby emphasized the need for a detailed cost analysis over a three-year period to compare in- house and contracted services. He mentioned concerns about the ongoing expenses for equipment and maintenance. Page 6 of 14

Council members Destin and Schmidt both shared their skepticism about the proposal' s cost savings and highlighted the importance of maintaining high standards of service. Councilmember Schmidt specifically asked for more detailed cost projections and potential performance clauses for contractors. Councilmember Stephens requested an estimate of future contract labor costs and historical data on previous bids. The Finance Director explained the variability in bid responses and the challenges in predicting future costs without going through the bidding process, but she agreed to provide more detailed information to support the council' s decision- making process. Operational Highlights Public Safety Sheriff Contract increase $195k (6. 8%) 21fte Lifeguard Contract increase to $200k (100%; 2007) Code Compliance increase $251 k (35%) 15. 5+ 1 new FTE STR registrations FY 2025 PROPOSED FY2023 FY 2024 BUDGET( CITY DESCRIPTION ACTUALS BUDGET MGR LEVEL) FY 2026 Total 0152140 PUBLIC SAFETY 2, 701, 333 3, 021, 553 3, 320,460 3, 377, 800 Total 0152442 CODE COMPLIANCE 634, 911 1, 201, 013 1, 452, 400 1, 496, 934 Total 0152543 EMERGENCY MANAGEI 31, 995 43, 703 43, 096 44, 640 TOTAL PUBLIC SAFETY 3, 368, 239 4, 266, 269 4, 815, 956 4, 919, 374 DISCUSSIONS: Mayor Wagner introduced the proposal to increase the budget for lifeguard services from 100, 000 to $ 200,000, highlighting the importance of maintaining safety for the citizens and visitors. The council agreed on the importance of ensuring adequate lifeguard coverage, given the number of visitors to the city' s beaches. Councilmember Bagby requested detailed data on the current funding levels from the TDC and the specific needs that the increased budget would address. Page 7 of 14

Special Events ( Recreation)— Christmas Decorations - $ 140 k Percent 2024 2025 increase FY25 Program Cost Summary Budget Budget vs FY24 Contract Services 71, 000 206,000 66% Operations 69, 700 72, 100 3% Total Special Events Expenditures $ 140, 700 $ 278, 100 49% DISCUSSIONS: The Parks & Recreation Director presented a proposal for hiring a contractor to manage Christmas decorations, including installation, maintenance, and storage, at a cost of$ 140, 000. She highlighted the feedback received on the previous year' s decorations and the need for a more consistent and professional approach. Councilmember Stephens supported the proposal, emphasizing the importance of enhancing the city' s festive appearance. Councilmember Hebert agreed, noting the positive impact on community spirit and tourism. There was a suggestion to leverage Town Center and Harbor CRA businesses to share the cost. Technology Cost Trend Tech Expenses by Year telco; software; devices; IT dept) 1, 400, 000 1, 200, 000 1, 000, 000 800, 000 600, 000 400, 000 200, 000 S- 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Page 8 of 14

Renewal and Replacement 5- year plan FY 2025 Planned Expenditures by Asset Type Streets, Streetlights, Sidewalks 3, 745, 741 Facilities: Roof 717, 500 Facilities: HVAC 3, 844 Generators Outdoor Parks & Recreation 2, 137, 800 Parking Lots Vehicles 32, 000 Capital Equipment 158,000 Stormwater Total Planned Expenditures 6, 794, 885 Ending Bank Balance 1 $ 58,409 Highlights: Morgan' s Sports Center o Lighting (Safety - $ 1. 3 m) o Playground ($790 k) Community Center o Leaky windows and roof($ 717 k) Roads and sidewalks ( 3. 6 m as per RR Resolution) DISCUSSIONS: Mold and structural issues at the community center were addressed as well as the historical context of previous repairs and ongoing issues. Discussed proposal for new windows and roof sealing, but no current plans for a new roof. The need for hurricane impact glass and associated repairs were emphasized. Examination of past expenditures and future needs for road and sidewalk maintenance, and discussion on the allocation of funds from infrastructure and gas tax for these projects. Capital Improvement Program Highlights: Crosstown Connector - $ 10. 6 m Undergrounding - $2. 3 m Tarpon and Crystal Shores Parks—$ 4. 8 m Page 9 of 14

Mattie Kelly Outfall at Joe' s Bayou $ 1. 2 m New Vehicles and Equipment - $330 k DISCUSSIONS: Some discussions on major capital projects listed above, with emphasis on completing current projects and planning future ones within budget constraits. City of Destin Department of Public Works& Emergency Management New and RR Requested Vehicles/ Equipment for FY25 Department Budget Proj>r Item Estimated Cost New or R& R Comments Code Comp CEVEH Ford Bronco Sport AWD 32, 000. 00 New additional officers Code Comp CEVEH John Deere Gator 5 18, 000 00 New additional gator for beach Community Center CCVEH Ford Transrt Van 150, low- rise 5 40,000 00 New current Transrt Van( mid- rise) to be re- assigned to Parks Parks REQ 35' Towable Boom Lift 5 40, 000. 00 New Tree Tnmmrng, Painting, Christmas Decorations, etc. Parks RRV57 Ford F150 4x4, single cab short bed S 40, 000. 00 New 111 J Parks RRV57 Ford F150 44, single cab short bed S 40, 000. 00 New Public Works PWMM John Deere 2920M Ztrak 48" 20,000. 00 New for new median maintenance crew Public Works PWMM John Deere Z920M Ztrak 48" 20,000. 00 New for new median maintenance crew Public Works PWMM John Deere Z920M Ztrak 60" 24, 000. 00 New for new median maintenance crew Public Works PWMM Ford f150 4x4, single cab short bed S 40,000. 00 New for new median maintenance crew Public Works PWMM Trailer for equipment 10, 000. 00 New for new median maintenance crew Public Works 154183? Misc. equipment( weed eaters, blowers, etc.) 5 6,000. 00 New for new median maintenance crew Subtotal NEW 330, 000. 00 DISCUSSIONS: The Public Works Director provided an overview of new vehicle and equipment requests for various departments. There were some discussions on the necessity of each request, including a Ford Bronco for Code Compliance and a John Deere Gator for Beach Patros; as well as consideration of alternative solutions, such as renting equipment or opting for smaller, more cost- effective vehicles. Where We Are Now Fund balance projections— no fee change FY2025 PROPOSED FUND BALANCE SUMMARY BUDGET FY2026 FY2027 FY2028 FY2029 All FUNDS PROJECTION PROJECTION PROJECTION PROJECTION PROJECTION Nonspendable( Town Center CRA+ prepaids) ' 2, 062, 544 1,862, 544 1, 562,544 1, 162,544 1, 211,624 Restricted( FL Statute& Debt Covenants) 5, 411, 760 5, 509, 107 6, 181,442 9, 779,532 11,766,069 Committed( Council Resolutions& Motions) 22, 755,874 23,762, 748 23,537,302 24,458,757 23,523,440 Assigned( contracts/ PO balances) 3, 250,000 2, 500,000 1, 500,000 2,416,667 2, 138,889 Unassigned 9,129,462 6, 563,947 5,961, 5% ( 1, 170,542) ( 4,246,863) Ending Fund Balance 42, 609,640 40, 198, 346 38, 742, 884 36, 646,958 34,393, 159 Page 10 of 14

Challenges to General Fund Balance 1. Building Permit Fees Too Low FY2025 PROPOSED 111 FLORIDA BUILDING CODE FUND BUDGET FY2026 FY2027 FY2028 FY2029 RESTRICTED; PUBLIC SAFETY) PROJECTION PROJECTION PROJECTION PROJECTION PROJECTION 111- 32 Licenses and Permits 921, 400 946, 670 972,660 999,460 1, 026,970 111- 36 Investment Income 4, 900 4,900 4,900 4, 900 4,900 TOTAL REVENUES 926, 300 951, 570 977, 560 1, 004, 360 1, 031, 870 111- 52 Public Safety 1, 166,430 1, 205,572 1, 249,870 1, 295, 860 1, 343, 620 TOTAL EXPENDITURES 1, 166,430 1, 205, 572 1, 249, 870 1, 295, 860 1, 343, 620 Excess( deficiency) of revenues over expenditures 240, 130) ( 254, 002) ( 272, 310) ( 291, 500) ( 311, 750) 111- 58 Transfers Out 80, 000) ( 82, 400) ( 84, 870) ( 87,420) ( 90,040) Total other financing sources( uses) 80,000) ( 82, 400) ( 84,870) ( 87, 420) ( 90, 040) 111 Net change in fund balances 320, 130) ( 336,402) ( 357, 180) ( 378, 920) ( 401,790) 111 Fund Balance( deficit), Beginning 43, 407 ( 276, 724) ( 613, 126) ( 970,306) ( 1, 349,226) 111 Fund Balance( deficit), Ending 276,724) ( 613, 126) ( 970,306) ( 1, 349, 226) ( 1, 751, 016) 2. Developer and Impact Fees Too Low The cost of making Growth Necessitated Improvements is not fully covered by the fees collected. Impact Fee Eligible Projects constructed/ funded Sources used/ to be used FY 2024 10,764,481 Impact Fees 2, 044,000 FY 2025 9,852, 400 Taxes 5, 811, 861 FY 2026 1, 599, 000 Grants 11, 846, 586 FY 2027 770,000 Loans 3, 003,434 FY 2028 Parking Fees 1, 050,000 FY 2029 770,000 23, 755, 881 23, 755, 881 3. Increase recreation cover 25- 30% of operations Recommended Cost Recovery Areas STR Registration for Condos( 4200+) Building fund: Building Permit Fees Community Development: Developer and Impact Fees Recreation: User Fees( Boat Ramp) Net Positive Environmental Benefit ( NPEB) for Harbor Water Quality, i.e. Testing, Pump Ops and Maintenance: Consider annual op fee Page 11 of 14

DISCUSSIONS: Presentation on cost recovery strategies to ensure future financial stability. Analysis of current fee structure and their impacts on the general fund balance, and identification of areas where building permit fees and developer fees are too low. Where We Could Be: Fund Balance projections- Adjust Building Permit Fees+ 52% FY 2025 2024 PROPOSED BUDGET ACCOUNT DESCRIPTION PROJECTION ( CITY MGR LEVEL) FY2026 FY2027 FY2028 FY2029 P LI I L D I N G PERMIT FEES 739, 402 1, 216,000 1, 252, 500 1, 290, 100 1, 328,800 1,368, 700 Total 111300 BUILDING FUND RI 896, 419 1, 342, 300 1, 380,070 1, 418, 960 1, 458, 960 1, 500, 170 Total 11152441 BUILDING FUND 1, 277, 716 1, 166,430 1, 205, 572 1, 249, 870 1, 295, 860 1, 343, 620 NET OPERATING( REV- EXP) 381, 297) 175, 870 174,498 169, 090 163, 100 156, 550 TRANSFER OUT TO CD TECH FUN 67, 556) 121,600) ( 125, 250) ( 129, 010) ( 132, 380) ( 136, 870) Total BUILDING FUND TXFRS OU 82, 444 121, 600) ( 125, 250) ( 129, 010) ( 132, 880) ( 136, 870) 111 Increase( decrease) in Fund 298, 853) 54, 270 49, 248 40, 080 30, 220 19, 680 111 Fund Balance, beginning of 342, 260 43, 407 97, 677 146, 925 187, 005 217, 225 111 Fund Balance, ending of yei 43, 407 97, 677 146, 925 187, 005 217, 225 236, 905 TARGET=$ 275K( 3 MOS OPS BAL) Fund Balance projections- Adjust Building Permit Fees+ 52% Before FY2025 PROPOSED FUND BALANCE SU • BUDGET FY2026 FY2027 FY2028 FY2029 ALL FUNDS PROJECTION PROJECTION PROJECTION PROJECTION PROJECTION Nonspendade( Town Center CRA+ prepaids) 2 543 1662 544 15662, 544 1, 162, 544 1, 211, 624 Restricted IR Statute& Debt Covenants) 5, 411, 76. 509. 107 6111,442 9,779, 532 11,766,069 Committed( Council Resolutions& Motions) 22755, 874 23, 782 23,537, 302 24,451,757 23, 523, 440 Assigned( contracts,/ PO balances) 3, 250,000 2500,000 1 ••.. 2,416,667 2, 138, 889 n0ss2en 3J25_-_ 55. 2.- 3; 61 596 ( 1, 170. 5: 1 ___. 263' Ending Fund Balance 42, 609, 640 40, 198, 346 38,742, 884 36, 646, 958 34, 393, 159 FY2025 PROPOSED FUND BALANCE SUMMARY BUDGET FY2026 FY2027 FY2028 FY2029 ALL FUNDS PROJECTION PROJECTION PROJECTION PROJECTION PROJECTION Nonspendade( Town Center CRA+ prepaids: 2, 062, 544 1562, 544 1,562, 544 1, 162, 544 1, 211, 624 Restricted IFC Statute& Debt Covenants) 5, 436, 160 5534, 157 6, 198, 752 9,730, 912 11, 688,989 Committed( Council Resolutions& Motions) 22, 797,474 23, 847, 198 23,665, 192 24, 632, 807 23, 744,320 Assigned( contracts/ PD balances, 3, 250, 000 2500,000 1, 500, 000 2, 416, 667 2, 138689 055•pleo 9, 479, 462 7,296,947 7. 101, 596 411. 436 " ' - After Ending Fund Balance 43,025, 660 41, 042, 146 40,020704 38, 317, 451 36,601,959 Recommended Cost Recovery Areas NPEB: 2006 to 2023- Average collections per year=$ 24 k Average Expenses/ year=$ 60 k Page 12 of 14

Dredging estimate=$ 500 k every 5 years ( on schedule w/ FWB to save on mobilization fees)=$ 100 k/year for collections. 160 k/year collection target. Est. 1500 slips in harbor = Propose $ 105/ year operations assessment on slips ( instead of one- time % of" construction costs") STR Registration for Condos ( 4200+) o Visitors use our parks and roadways o A$ 100 registration fee/year would raise$ 420, 000 Recreation: User Fees o Add back the Joe' s Bayou Boat Ramp pass for residents($ 40 k/year) o Update 2014 Recreation Cost recovery Policy Ad Valorem at Different Mi11ne Rates Ad Valorem Taxes Payable per Household Two scenarios to demonstrate the difference 1/ 10th of a mill creates 1. 6150 1. 7150 Variance Property Taxable Value 100,000 161. 50 171. 50 10. 00 360,754 582. 62 618. 69 36. 08 400,000 646. 00 686. 00 40. 00 600, 000 969. 00 1, 029. 00 60.00 City of Destin median taxable property value on all properites = $ 360, 754 Funding to the City at the two Different Millage Rates 1. 6150 1. 7150 Taxable Value x Millage x 95% = total ad valorem collections 8, 609, 159, 898 = $ 13, 208, 604 or $ 14, 026, 474 var= $ 817, 870 GENERAL DISCUSSIONS: The Finance Director recommended canceling the June 24th budget workshop due to a lack of new information and proposed reconvening on July 15th with updated data. Council members generally agreed to wait until July 1 5th for more substantive discussions. Page 13 of 14

Councilmember Destin expressed opposition to drastic fee increases, particularly for building permits and recreational fees, and emphasized the importance of not overburdening residents. Councilmember Bagby reemphasized the need for detailed cost analysis for proposed expenditure, such as the purchase vs. rental of equipment. Councilmember Schmidt advocated for a thorough review of the recreational fee schedule and supported differential rates for residents and non-residents. Councilmember Hebert suggested considering a reduced fee structure for families in financial need. Councilmember Stephens voiced opposition to the boat ramp fee increase and proposed exploring alternative revenue sources, such as business tax receipt adjustments. The council briefly discussed a funding request from the Destin aquatic center for$ 25, 000, which wea historically supported by the city. The possibility of inviting the center' s representative to present at a future council meeting has been suggested. The workshop concluded with a consensus on the next steps, including the July 15`h workshop to discuss further updates and refinements to the budget and fee proposals. ADJOURNMENT Having no further business at this time, the meeting was adjourned at 9: 40 PM. r K411Ws t Bobby Wag • , • ayor y i: ATTEST e erk Page 14 of 14