City Council Special (2nd Budget Public Hearing) Meeting

City of Naples City Council Chamber 735 Eighth Street South Naples, Florida 34102 City Council Special Budget Meeting – September 18, 2024 – 5:13 p.m. It is noted for the record that all documentation electronically appended hereto is also contained in the file for this meeting with the City Clerk’s Office. 1) CALL TO ORDER AND ROLL CALL City Council Members Present Teresa Heitmann, Mayor Terry Hutchison, Vice Mayor Staff Present: Jay Boodheshwar, City Manager Patricia Rambosk, City Clerk Others Present: Greg Myers Berne Barton Ray Christman Bill Kramer Linda Penniman Beth Petrunoff Matthew McConnell, City Attorney Gary Young, Deputy City Manager/CFO 2) PLEDGE OF ALLEGIANCE Mayor Heitmann led the Pledge of Allegiance. 3) SET AGENDA MOTION by Hutchison to SET THE AGENDA; seconded by Petrunoff and unanimously carried, all members present and voting (Barton-yes, Christman-yes, Hutchison-yes, Kramer-yes, Penniman-yes, Petrunoff-yes, Heitmann-yes). 4) ANNOUNCEMENTS AND PRESENTATIONS None. 5) PUBLIC COMMENTS Greg Myers questioned Council on raising the millage rate when a Level of Service Report had not been completed since 2016 which should have included the Stormwater Project. He further referenced a previous Council meeting on January 16, 2024 regarding the Stormwater Report and the City Manager’s reference to infrastructure in the next 20 years being $1 billion. He emphasized the importance of doing the work quickly that is data driven, agreeing with the Capital Improvement Plan (CIP) process. However, he disagreed with taxing the residents when a Level of Service Report analysis had not been done since 2016. 6) PUBLIC HEARINGS 6.A) A Public Hearing and Adoption of Final Millage Rates and the Final Budgets will be held in Naples City Council Chamber on September 18, 2024, at 5:05 P.M. City Manager Jay Boodheshwar introduced the item as the second and final public budget hearing on the FY 24-25 Budget of the City of Naples. Deputy City Manager / CFO Gary Young read the required language regarding notice of the meeting and reviewed other requirements of the meeting. Using an electronic presentation Deputy City Manager / CFO Young overviewed the following: the proposed millage rate advertised in the notice for the second hearing at 1.2300; the Budget schedule; the Budget Hearing Requirements; the definition of a rolled back rate; the final millage rate of 1.2300 for the General Fund, 0.5000 for the East Naples Bay Taxing District, 0.0125 for the Moorings Bay Taxing District, the Aggregate rolled back rate of 1.1126 recommended for

City Council Special Budget Meeting – September 18, 2024 – 5:13 p.m. 2 Roll call votes by Council Members are recorded in random order, pursuant to City Council policy. approval that day, and the aggregate millage rate of 1.2473 which is 12.11 percent higher than the Rolled Back Rate. He further explained the difference between the millage rate of 1.23 versus the rolled back rate of 1.0954 that will generate $4,618,472, noting that the purpose of the increase was for salaries and increased personnel to enhance the level of service for police, fire, parks and recreation and planning; provide resources necessary to keep pace with costs of goods and services to operate at current levels of service; maintain sufficient fund balance reserves to accommodate future economic conditions; and continue emphasis on street repaving and other infrastructure. Deputy City Manager/CFO Young then noted the changes that have been made from the proposed budget, including increasing the Public Safety and Quality of Life Enhancement Initiatives for police, planning, parks and recreation, fire and technology services from $2,058,756 to $2,162,216. Other changes in the budget noted by Deputy City Manager/CFO Young included an increase in revenue from $184,484,303 to $186,736,288, a change of $2,251,984 because of the millage rate increase from 1.17 to 1.23 which will go to the General Fund, the CRA and the Fifth Avenue South Business Improvement District (FASBID) and an increase in expenses from $206,611,371 to $208,822,792 for additional staff. He then overviewed the taxable value trend and millage rate trend, budget highlights including an increase of $11.6 million for the total gross budgeted expenditures; pension funding; and position changes which are approximately 80 percent focused on safety and quality of life. In conclusion, Deputy City Manager/CFO Young recommended that the City Council consider adopting the six resolutions. Mayor Heitmann thanked staff and Deputy City Manager/CFO Young for their commitment and expressed her trust that the budget was prepared in a fiscally responsible manner. Public Comment: None. Agenda Memorandum 2024-25 Budget Hearing Agenda Memorandum 2024-25 Taxing Districts TRIM Certified 8-1-24 TRIM DR-420 updated to 1.23 General Fund Millage Rate FY 2024-25 Proposed Budget Changes to Proposed Budget FY 2024-25 FY 2024-25 Approved Final Budget (Draft with Changes) Presentation 7) FINAL MILLAGE RATES AND BUDGETS 7.A) RESOLUTION 2024-15462 - A Resolution Determining and Fixing the 2024 Tax Levy and Final Millage Rate for the City of Naples, Exclusive of Dependent Taxing Districts, and for Providing Sufficient Funds for the General Fund Operations; Providing a Severability Clause, a Repealer Provision, and an Effective Date. City Attorney Matthew McConnell read the title of the Resolution. Public Comment: None. MOTION by Kramer to APPROVE RESOLUTION 2024-15462; seconded by Petrunoff and carried 6-1, all members present and voting (Hutchison-no, Penniman-yes, Christman-yes, Barton-yes, Kramer-yes, Petrunoff-yes, Heitmann-yes). Resolution 2024-25 General Fund Millage Rate 7.B) RESOLUTION 2024-15463 - A Resolution Adopting the Final Budget for the City of Naples, Florida Exclusive of Dependent Taxing Districts, for Fiscal Year Commencing October 1, 2024 and Ending September 30, 2025; Appropriating Funds for Operating Expenses of the City of Naples Florida for the General Operation of the Departments of the City, Including Utilities, and for the Interest and Principal on the Outstanding Bonds and Other Fixed Obligations of the City For and During the Fiscal Year; Providing a Severability Clause, a Repealer Provision, and an Effective Date. City Attorney Matthew McConnell read the title of the Resolution. Public Comment: Greg Myers, said that since the City failed to do the Level of Service analysis, he recommended that the City consider special assessments for all the projects that have been approved since the last level of service, noting particularly that the Naples Beach Club should be paying $100 million toward the Stormwater Management Outfall Project.

City Council Special Budget Meeting – September 18, 2024 – 5:13 p.m. 3 Roll call votes by Council Members are recorded in random order, pursuant to City Council policy. MOTION by Christman to APPROVE RESOLUTION 2024-15463; seconded by Kramer and unanimously carried, all members present and voting (Christman-yes, Petrunoff-yes, Barton-yes, Kramer-yes, Hutchison-yes, Penniman-yes, Heitmann- yes). Resolution 2024-25 Budget Excluding Dependent Taxing Districts 7.C) RESOLUTION 2024-15464 - A Resolution Determining and Fixing the 2024 Tax Levy and Final Millage Rate for the East Naples Bay Special Taxing District to Provide Sufficient Funds for the Operations of the Special Taxing District; Providing a Severability Clause, a Repealer Provision, and an Effective Date. City Attorney Matthew McConnell read the title of the Resolution. Public Comment: None. MOTION by Christman to APPROVE RESOLUTION 2024-15464; seconded by Petrunoff and unanimously carried, all members present and voting (Penniman-yes, Hutchison-yes, Petrunoff-yes, Barton-yes, Christman-yes, Kramer-yes, Heitmann- yes). Resolution 2024-25 East Naples Bay Taxing District Millage Rate 7.D) RESOLUTION 2024-15465 - A Resolution Determining and Fixing the 2024 Tax Levy and Final Millage Rate for the Moorings Bay Special Taxing District to Provide Sufficient Funds for the Operations of the Special Taxing District; Providing a Severability Clause, a Repealer Provision, and an Effective Date. City Attorney Matthew McConnell read the title of the Resolution. Public Comment: None. MOTION by Petrunoff to APPROVE RESOLUTION 2024-15465; seconded by Christman and unanimously carried, all members present and voting (Petrunoff- yes, Hutchison-yes, Christman-yes, Barton-yes, Kramer-yes, Penniman-yes, Heitmann-yes). Resolution 2024-25 Moorings Bay Taxing District Millage Rate 7.E) RESOLUTION 2024-15466 - A Resolution Adopting the Final Budget for the East Naples Bay Special Taxing District for Fiscal Year Commencing October 1, 2024 and Ending September 30, 2025; Appropriating Funds for the General Operation of the East Naples Bay Special Taxing District, For and During Fiscal Year Commencing October 1, 2024 and Ending September 30, 2025; Providing a Severability Clause, a Repealer Provision, and an Effective Date. City Attorney Matthew McConnell read the title of the Resolution. Public Comment: None. MOTION by Penniman to APPROVE RESOLUTION 2024-15466; seconded by Petrunoff and unanimously carried, all members present and voting (Barton-yes Penniman-yes, Christman-yes, Petrunoff-yes, Kramer-yes, Hutchison-yes, Heitmann-yes). Resolution 2024-25 East Naples Bay Taxing District Budget 7.F) RESOLUTION 2024-15467 - A Resolution Adopting the Final Budget for the Moorings Bay Special Taxing District for Fiscal Year Commencing October 1, 2024 and Ending September 30, 2025; Appropriating Funds for the General Operation of the Moorings Bay Special Taxing District for and During Fiscal Year Commencing October 1, 2024 and Ending September 30, 2025; Providing a Severability Clause, a Repealer Provision, and an Effective Date. City Attorney Matthew McConnell read the title of the Resolution. Public Comment: None. MOTION by Penniman to APPROVE RESOLUTION 2024-15467; seconded by Petrunoff and unanimously carried, all members present and voting (Hutchison- yes, Penniman-yes Christman-yes, Barton-yes, Kramer-yes, Petrunoff-yes, Heitmann-yes). City Manager Jay Boodheshwar thanked the Mayor and Council for the enormous time spent on the budget process, noting it was a very thoughtful and priorities driven budget. He also thanked the work and time of staff especially to ensure that the appropriations were in line with the

City Council Special Budget Meeting – September 18, 2024 – 5:13 p.m. 4 Roll call votes by Council Members are recorded in random order, pursuant to City Council policy. expectations of the community for enhanced public safety and noted the additional work in the future regarding resiliency. Resolution 2024-25 Moorings Bay Taxing District Budget 8) ADJOURNMENT 5:47 p.m. ____________________________ Teresa Lee Heitmann, Mayor ______________________________ Patricia L. Rambosk, City Clerk Minutes prepared by: ________________________________ Patricia L. Rambosk, City Clerk Minutes Approved: 10-2-24.