Special City Council/CRA Budget Workshop - Amended (backup revised item #1a)

City of Dunnellon 1IA.S E Special City Council/ CRA Budget Workshop Date: September 03, 2025 Time: 4: 30 p. m. Place: City Hall, 20750 River Dr., Dunnellon, FL 34431 Call to Order and Pledge of Allegiance: Mayor Green called the meeting to order at approximately 4: 34 p. m. and led the Council in the Pledge of Allegiance. Opening Prayer/ Moment of Silence: Mayor Green invited any citizen wishing to volunteer to open with prayer. No one stepped forward and a moment of silence was observed. Roll Call Walter Green, Mayor, Seat 1 Vacant, Councilperson, Seat 2 Tim Inskeep, Vice- Mayor, Seat 3 Valerie Hanchar, Councilwoman, Seat 4 Rex Lehmann, Councilman, Seat 5 Staff Present Mandy Odom, City Clerk Schonna McLean, Finance Officer Chad Ward, Public Works Manager William Ary, Community Development Manager Michelle Leonard, Assistant City Clerk Legal Counsel Andrew Hand, Shepard, Smith, Kohlmyer & Hand, P. A. - Absent Proof of Publication The agenda was posted on the City' s website and City Hall bulletin board on Monday, August 27, 2025. Mayor Green called for public comments and there were none. 1) FY2025- 2026 Proposed Budgets Mrs. McLean reported she had received the updated insurance costs and made the corresponding revenue adjustments. She mentioned recent changes to employee classifications were reflected in the budgets for Public Works and Finance. At the rollback rate, she stated the City would realize a $ 79, 469 surplus in the General Fund reserves. She further explained the Community Redevelopment Agency ( CRA) has one project currently underway, with no new projects planned for the coming year, resulting in an expected $ 283, 998 surplus designated for future road improvements.

Special City Council/ CRA Budget Workshop September 03, 2025 Page 2 of 3 Councilman Lehmann asked about short- term rental revenues. Mrs. McLean replied so far, in the current fiscal year we have collected approximately $ 4, 000 to cover administrative and credit card costs. Vice- Mayor Inskeep stated Council overhauled the budget in 2023. In the two years since, the City has adopted the rollback rate producing a surplus each year. He advised Council this demonstrates both the accuracy of the budget and the ability of department heads to manage it effectively. He explained the proposed budget is balanced without relying on reserves, and the current reserves are healthy. He added funds have already been set aside for road projects and clarified the road work in this budget does not draw from reserves. He reviewed each year of the five- year capital plan and stated we are on track to repair the road infrastructure without having to increase taxes. Vice- Mayor Inskeep asserted the City should not take more from the taxpayers than is necessary and therefore recommends setting the millage at the rollback rate minus the surplus. Councilwoman Hanchar asked about the implications of a lower millage rate. Mrs. McLean said reserves could allow the City to go slightly below rollback for one year, but she advised against doing so in the future. She said the MCSO contract costs are still pending but are expected to be near current projections. Mayor Green supported lowering the millage rate if feasible, saying it would send a positive message to citizens and businesses. Councilwoman Hanchar cautioned against citizen perceptions if the millage rate is lowered followed by a need to raise it again. Vice- Mayor Inskeep stressed the importance of explaining decisions clearly to the public. Mrs. Odom praised the reduction from a steady 6. 5 millage over a five- year period down to 4. 685 as a major achievement, and Councilman Lehmann said the City is well- positioned to address other priorities in this coming budget year. Council members commended Mrs. McLean for her efforts. The Council agreed the plan maintains strong reserves, ensures road funding, and reflects fiscal responsibility while easing the tax burden. 2) Council Comments There were no further comments. 3) Public Comment There were no public comments. Adjournment The meeting was adjourned at approximately 5: 16 p. m.

Special City Council/ CRA Budget Workshop September 03, 2025 Page 3 of 3 i. 4 thea, i Penned signature of: Walter L. Green, Mayor Attest: 1/ 6(7) Penned signature of: Amanda Odom, CMC, City Clerk