City Commission Special Meeting

1 MINUTES City of Holmes Beach City Commission Special Meeting July 8, 2025, 2:00 p.m. Patricia A. Geyer Commission Chambers 5801 Marina Drive, Holmes Beach FL 34217 Present: Commissioner Oelfke, Commissioner Schaefer, Commissioner Soustek, Commissioner Whitmore, Chair Diggins Staff Present: Mayor Titsworth, City Attorney Augello, City Clerk Johnston, Chief Tokajer, Public Works Director/City Engineer Kamiya, Director of Development Services Minor, Treasurer Marcotte Also Present: Code Compliance Chief Thomas, Development Services/Building/EOC Coordinator Charron. _____________________________________________________________________ 1. Call to Order; Pledge of Allegiance; Moment of Silence Chair Diggins called the meeting to order at 2:00 p.m. 2. Roll Call 3. Comments by the Public None. 4. Unfinished Business None. 5. New Business 5.a 2024-2025 Budget Review Treasurer Marcotte presented the proposed 2025/2026 Budget. She noted when preparing the budget, the expenses paid year to date and past years were looked at to make sure everything the city needed was included and to eliminate expenses that could be deferred to a later budget. Notable changes were as follows: Notable changes were as follows: Revenues -  Revenues still need to be determined. There has been an 8.33% decrease in Ad Valorem Revenue this year based on property values provided by the Property Appraiser. The rollback rate of 2.1812 mills has been utilized to calculate the proposed budget. To date, the city has not received any of the State sources of revenues. They should be received by the end of July or early August from the Office of Economic & Demographic Research.

2  An increase of $250,000 in revenue for building permits is expected due to the ongoing increase in construction.  $1,267,374 in FEMA Disaster Reimbursement funds are expected so has been included.  Ad Valorem Tax - The assessed value provided to the City by the Property Appraiser represented a decrease of 8.33%, equating to a decrease of $490,357 in revenue. The proposed budget was prepared with the rollback rate of 2.1812 mills as opposed to the 1.99 mills in the current budget.  Franchise fee revenues are estimated to be approximately $42,000 higher based on FPL requesting an increase in fees over the next five years. There's no indication of any change for natural gas, and only a minimal projected increase in waste disposal.  Permitting fees - $250,000 is estimated based on this current year's revenues, along with the increase in construction.  Interest income project - Due to interest rates decreasing, the income project has been reduced by $194,000. Expenses -  The city will continue with the same number of staff as the prior year.  $60,000 was budgeted between the General Government and the Police Department for the cost of a replacement SAN (computer storage).  $160,000 was budgeted for new vehicles in the Building Department and Public Works.  Insurance costs for General Liability, Workers Comp, Auto, and Property have increased by 16%.  Carryovers and Reserves - Amounts the City is estimated to have on September 30, 2025. These amounts make up about $7,500,000 of the City's budget and are not part of expenses. They are restricted and are the required reserves. Director of Development Services Minor announced there are 1,671 current Vacation Rental Certificates (VRC) which are down by approximately 100 from this time last year. Some of the properties are no longer renting to allow time to fix their homes after the Hurricanes. He anticipated that the number of VRC's will rise. Commissioner Whitmore stated that she does not support the roll back rate recommendation. In support of adopting the current millage rate she would be presenting some solutions. 5.a.a Mayor/Commission  The cost of living has been included in the Mayor and City Commission salaries for 2025/2026  Additional costs have been added for IT services. Commissioner Whitmore asked what the $75,000 land purchase was for. Mayor Titsworth explained that the city tries to purchase as much land as possible for green space. One year there were no purchases, so the amount rolled over for the next year's budget. She announced that the city had just closed on another lot near Grassy Point.

3 Commissioner Schaefer pointed out that the $95,000 amount to move the donated cottage did not occur due to the Hurricanes. 5.a.b General Government (Clerk/Treasurer/HR)  Professional Services - legal - has been reduced by $210,000.  Professional Services - the city will not need to budget the $92,500 due to no longer needing contractual services to update the Land Development Code.  $30,000 is added for half the cost of the SANS - computer.  $7,500 is added to replace the table and chairs in the Administration Conference Room.  City Treasurer Marcotte has not yet received the insurance quotes. The maximums have been included in the budget. Discussion followed relating to the Outside Agency Funding/Cultural. Commissioner Whitmore will check with the Chamber to see if they still have their passport program. If they do not, the City Commission will utilize that $5,000 and allot it to Wildlife, Inc. If the Chamber still has the passport program, Mayor Titsworth suggested increasing that line item by $5,000 so that amount could be provided to Wildlife, Inc. $5,000 has been budgeted for Keep Manatee Beautiful. Commissioner Soustek recommended increasing that amount. She reported on their ongoing Sea oat plantings on the beach. 5.a.c Police Department Step and merit increases have been included. Chief Tokajer announced that with hiring an additional officer he will have 13 officers, 20 total employees. The additional officer will allow for one Sgt. and three officers per shift. They will be able to fill in when someone is out for training, is sick, etc. and will help to avoid overtime. He noted he currently has one officer who is injured so that rotation shift only has one Sgt. and one officer for the entire City, which is unsafe. The additional officer will also allow for Marine Patrol and use of the 4X4 as time permits. Commissioner Whitmore stated she does not support hiring any additional officers. Capital Improvements - Includes Taser X10 Upgrade for $32,000, IT hardware of $1,500, and $30,000 for half of the SAN Computer Storage costs. The Marine Patrol - Repairs & Maintenance has decreased by $95,000 due to moving fuel to the Operating Supplies line item. Discussion continued relating to the Marine Patrol and usage of the new boat. The city recently assisted the Cities of Bradenton and Palmetto and have had the boat out watching the no wake areas which are a concern of Mayor Titsworth. There are currently five certified officers for the Marine Patrol and others will be certified in the future. Chief Tokajer noted that there have not been any jet ski accidents. Mayor Titsworth felt the boat should be manned and, in the water daily. However, Chief Tokajer stated to do so would require hiring additional staff just for the Marine Patrol. Commissioner Whitmore expressed her disagreement that an additional officer should be hired. She felt the City should not raise taxes this year and noted a lot

4 of people are living on tight budgets. In addition, no other department was adding a position. Mayor Titsworth stated that the Chief had been promised two additional officers during 2024/2025. She, however, only approved hiring one next year. Commissioner Schaefer asked if any insurance coverage had been increased across the board. Treasurer Marcotte stated excess flood insurance over the past year was the only thing added. She asked the auditors if that could be moved to storm resiliency and they agreed since it was a storm related cost it could be. She did not recommend budgeting for the insurance deductibles. Commissioner Oelfke noted there are more visitors in Holmes Beach every year, which puts pressure on the Police Department, so he does see a need for an additional officer. However, he also wants to see as much budget tightening as possible this year. He agreed to support the additional officer if it allows the overtime to be lower. Engine Maintenance - Mayor Titsworth informed after checking with mechanics, the $40,000 budgeted amount can be cut in half. Chief Tokajer will also be obtaining a quote. Additional items included:  Maintenance costs were reduced from $148,9000 to $54,000.  The new Taser contract is $32,000 annually which was reduced from $62,000 in the 2024-25 Budget.  No new vehicles will be purchased. New trucks replaced many of the trucks that flooded during the Hurricanes. The cost for a fully equipped truck with markings, lights and sirens is approximately $70,000. Chief Tokajer announced that crime was down 77% since he had been Chief in Holmes Beach. He will include the Marine Boat manhours in his monthly report. 5.a.d Building Department  Professional Services have been increased to accommodate the use of an outside Building Official on an "as needed" basis.  Professional Services - Planner was increased by $40,000 for Morris Depew - Land Development Code update which was moved from General Government.  $50,000 has been budgeted for a new vehicle for the new inspector. A new inspector was just hired as a replacement so it would not be an additional employee in that department.  The Public Works Department provides service to the Building Department for right-of-way inspections, Stormwater/drainage, and building assistance.  Insurance costs have increased. 5.a.e Public Works Department  Along with the other department budgets, there have been increases in retirement and health insurance costs.

5  Repairs and Maintenance includes all costs for maintaining the City Field, and all City property and assets. $15,000 for a fire/sprinkler system upgrade and $50,000 to restore the ball field have been included.  Operating Supplies - Reduced by $8,000 for memorial benches and another $15,000 for general supplies.  Islanders 4 Clean Water - Increased by $25,000 to include carryover from prior year's budgets.  Road Materials/Street Resurfacing - Reduced by $60,000. The additional cost was moved to the 5th Cent Gas Tax.  Parks and Beautification - Increased by $12,600 for the cost to replace 18 of the memorial benches.  Books/Memberships/Training - Increased by $9,000 to include locate training, heavy equipment training, and International Municipal Sign Association (IMSA) training for traffic signals.  Capital projects - Budgeting $100,000 for the irrigation well in the barn, to convert it to potable water.  Vehicle/Street Sweeper - Budgeting $110,000 for a dump truck. Contingency - Commissioner Whitmore felt the $190,000 budgeted contingency parking meters could be removed to go towards the $525,000 for decreasing the millage. Mayor Titsworth explained it was a contingency line item/place holder for an expense. If the County decides to implement parking meters, the city will have that amount to do the same. Storm recovery, Red Tide cleaning, algae Cleanup, etc. are also part of this line item. Regular Salaries and Benefits - Commissioner Schaefer asked how the Public Works 2025/2026 budget went from $1,012,047 (2024-2025 Budget) to $981,989 in 2025/2026. Treasurer Marcotte felt it would be that some of the long-time employees had been replaced by lower paid individuals. She will research. That line item may have also been padded in the event additional employees were needed. It was noted the Public Works Department is currently down three employees. Commissioner Schaefer said after discussions with Public Works Director/City Engineer Kamiya, he recommended an additional employee be budgeted for in 2025/2026. Extra effort could then be made on the beautification of the city, pocket parks, and the right-of-way highly trafficked area, and to make for a more polished City appearance. Public Works Director/City Engineer Kamiya stated he had a person who concentrated on the beautification but had since promoted her. Public Works Director/City Engineer Kamiya said the current staff is doable, but they have zero availability if a team member is out sick or on vacation. Repair and Maintenance - Commissioner Oelfke questioned the significant increase feeling the Debris Contractor would cover restoring the ball field.

6 Public Works Director/City Engineer Kamiya explained to keep things moving, the city agreed to do some of the work for them, take fencing down and replace it around ball field, replace the clay with sod, and add fill materials. The Debris Contractor has agreed to fund the city $30,000 outright, which includes the City's cost to do the repairs. The City Hall sprinkler system needs inclusive rehab. $15,000 has been budgeted for fire protection. Parking Meters - Chair Diggins asked if a revenue study was ever done if parking meters were installed. Public Works Director/City Engineer Kamiya explained that the City held a full RFP bid opening. Revenue could be recouped within a couple of years after implementation. Depending on the hourly rate, and number of spaces, revenues were estimated at $90,000 a year - part of that being repair and maintenance. The vendor would take care of the devices, tracking, and all accounting. The cost of the posts and signs would be the City's responsibility but is currently in the Operating Budget. Chief Tokajer felt installing parking meters would greatly increase the number of tickets written because people would not pay for parking or would be in the parking space for a longer period. He noted the Police Department currently issue a lot of parking tickets. Mayor Titsworth said she was always against paid parking on the beaches. Implementing paid parking, however, would show people where the empty spaces are located and help avoid people from driving around neighborhoods. She would only have paid parking to be implemented at the same time as the County would do so. Different times could be implemented such as paid parking only between 9:00 a.m. and 5:00 p.m. She agreed that paid parking would in theory replace the parking permit decals. In response to Commissioner Whitmore's question, Mayor Titsworth stated if the County implemented paid parking at the boat ramps, it would not trigger the city to do the same throughout the city. Irrigations, well and barn - Public Works Director/City Engineer Kamiya stated that the Mayor asked the Public Works what it would take to have our own water supply. The existing irrigation well was investigated, which provides irrigation for most of the City's property. It can be made as a potable well for staff and first responders for emergency purposes only. Details followed. Personnel - It was noted there have been four resignations in the Public Works Department in the past few months and it has been a year since the department was fully staffed. Mayor Titsworth stated that the starting pay, along with annual salary increases had been implemented but it was hard to find people who were willing to drive to the Island and do the physical labor. The salary in Holmes Beach is higher than others and the City also has FRS. Commissioner Oelfke said he hated seeing an additional employee added to the budget when the department has trouble hiring for the three open positions. Public Works Director/City Engineer Kamiya stated that day labor employees were being utilized. Mayor Titsworth asked City Treasurer Marcotte to add an additional Public Works employee as a placemark. 5.a.f Code Enforcement

7 Legal - The Special Magistrate line item has been reduced. Many cases have been settled such as Bali Hai and the Treehouse cases. Vehicles - The $50,000 for a new truck has been removed. Director of Development Services Minor announced they plan to get an additional year out of the oldest truck and will purchase a new one in 2026/2027. Salaries - Commissioner Schaefer noted that based on a 4.8% salary increase, Code had not increased that much, and he asked why. Mayor Titsworth explained that a higher paying employee had transferred to a different department. She noted not everyone gets the same pay increases, but each will receive the Cost-of-Living Adjustment (COLA). Commissioner Schaefer asked why FICA increase was different in each of the departments - GG 0%, PD 8%, BD - 7%, PW 3.7% decrease. Treasurer Marcotte stated the FICA is based on the percentage of the salaries plus the overtime and should be 7.65%. She will check the formulas throughout to make sure they are all correct. 5.a.g Storm Water Cashflow Analysis Explanation was provided about how the Stormwater rollover was in the negative at ($1,962,283) as the estimation of where it will be on September 30, 2025. This reflects the amount spent but not yet being reimbursed - expenses there but revenue not yet in. Public Works Director/City Engineer Kamiya explained that the amount budgeted is based on the current Stormwater Assessment Fee and includes projects the City can afford based on that current amount. If the Stormwater fee is increased there are a lot more projects that can be addressed. Estimates have been made relating to any potential grant funding. Any amounts that the City received prior to September 30, 2025, will be applied so the negative amount thus reducing the ($1,962,283). He noted it can be a challenge asking for grant monies to fit the project. However, more than one grant has been requested for the same projects. An example of separate requests would be one for Federal funding and one from the State. If granted both one could be used for the project while the other used as matching funds. Mayor Titsworth announced that she hopes the City will receive its portion of the Community Development Block Grant (CDBG) funding soon for Stormwater. Public Works Director/City Engineer Kamiya stated those $400,000 funds would be used for 27th and 28th Street tide valves. Discussion continued relating to the Stormwater Assessment fee that will be discussed at the next City Commission meeting. Options based on the Stormwater fee amount followed. Expenses - Maintenance - $425,000 to do work in-house. It also includes the monthly vacuum truck costs. Flooding complaints/inspections - Public Works Director/City Engineer Kamiya stated there is about a month's worth of flooding complaints that the Public Works must investigate. The worst case is to use the $425,000 to do maintenance identified by the complaints. He would like the complaints to turn into large complaint fixes.

8 If there were enough funds, he would install roadside drainage throughout the City everywhere on every side of the roadways. Commissioner Whitmore stated there was a need for Stormwater drainage vs. infiltration and asked why the City was not replacing the areas with grass versus the 57 rocks. Public Works Director/City Engineer Kamiya acknowledged that in some areas grass was being placed. However, some of the coverage is based on the Southwest Florida Water Management District's (SWFWMD) contract. He noted that the last contract he inherited when coming here focused on water quality that included a version of swales with infiltration or solely infiltration. Discussion followed relating to the grass versus 57 rock and about underground water storage. 5.a.h Capital Improvement Program - Storm Water Public Works Director/City Engineer Kamiya explained the Seawall maintenance and replacement and the GIS, design and construction costs. He explained that over the last three years, the City has made Stormwater improvements with the funding the City currently has, which now just barely maintains. The American Rescue Plan Act (ARPA) $1 Million on Stormwater is for half of the City. If the City wants to make sure all pipes are not 75 years old and not broken tomorrow, then a lot more work will be needed. He noted that every time he is in the process of maintaining or improving, he finds something else that needs attention. He noted that the Banks Engineering Survey/Study in 2015 was based on available information, but he keeps finding more buried pipes and ones that are not being used. As a result, one could assume the system is sufficient, but it is not being kept up with what the environment is doing based on the number of rain events and storms recently. Commissioner Schaefer again stated the Commission needs to look at increasing the Stormwater Assessment fees if they want to do more improvements. Especially since there has been zero increase in the past five years. Additional discussion followed relating to the proposed Budget and millage and how it will affect the projects. 5.a.i 5 cent LOFT (Local Option Fuel Tax) Cash Flow Analysis Public Works Director/City Engineer Kamiya announced that he has set aside money in the budget for bicycle and pedestrian improvements. Initially he was going to add a sidewalk on 6th Avenue but the owners in that area did not want it, so the money was rolled over. His proposal was for bike and pedestrian improvements but also sidewalks. Resurfacing - Annually the State is required to inspect all bridges within the State. The Key Royale Bridge qualifies. 5.a.j Capital Improvement Program 5 Cent LOFT - FY 2023-2028 This fund is only for projects in the rights-of-ways. 5.a.k Half Cent Discretionary Tax Cash Flow Analysis This fund is utilized for street resurfacing, signs, street markings, etc. Over $200,000 was spent this past year on sidewalks in 12 different areas of the city.

9 Additional funds would allow Public Works to continue down the list of sidewalks and be able to do an additional 12. There are also some sidewalks and curbing that need to be replaced. 5.a.l Capital Improvement Program Half Cent Discretionary - FY 2023-2028 It was confirmed that the County pays this monthly. Further details followed. 5.a.m Reserves/Carryover Treasurer Marcotte explained that the listed Reserves/Carryover was the best educated estimate of the amount the City will have in the bank for each of these categories on September 30, 2026. This amount is projected to be over 15 months in advance. She is also starting with the best educated estimate of the City's starting point of September 30, 2025, and noted there are many different factors that cause this amount to be a moving target. The budget discussed has been prepared at the rollback millage rate of 2.1812 mills. Operating Fund - Unrestricted cash - money available daily to pay all the City's expenses and payroll. Assigned for Contingencies - Amount set aside over the years for the Emergency/Hurricane fund. Treasurer Marcotte pointed out that the Auditors had suggested a minimum contingency of 25% of the expenses for coastal communities. Utilizing the City's expenses numbers, based on the project budget, results in a need of $3.4 million. $3.5 million has been budgeted for 2025-2026. Legal Services - Will continue reserving $100,000 for Legal Services. Grassy Point - Approximately $40,700 will be left for enhancements from the Billie Martini donations. 5th Cent Gas Tax, Storm Water, and Half Center Discretionary Funds - These are based on the Capital Improvement Project (CIP) funds and what will be left at the end of the fiscal year assuming all projects are completed, and funding is received. These funds do not have anything to do with the City's Operating Funds and are kept separate, unless they go negatively. Storm Water will be ending with a negative balance this year. These will need funding from the City's Unrestricted Reserves until a future date when the funds are available to reimburse the General Fund. Vehicles - A few vehicles will be needed in coming years. Each department has discussed their current and future needs, and those amounts will be set aside as reserve to increase annually as needed until the purchases are necessary. 6. Questions and Comments 6.a Questions and Comments from Mayor and City Commission Mayor Titsworth felt the Stormwater Assessment Fee does need to be addressed. 6.b Questions and Comments from City Attorney None. 6.c Comments from Staff None.

10 6.d Questions and Comments from the Public and Press Sun Newspaper Reporter Joe Hendricks was informed of the following future Budget meeting dates:  The Stormwater Assessment fee will be discussed at the July 22, 2025, Regular Meeting.  The 1st Budget Hearing is scheduled for September 11, 2025, 5:01 p.m.  The Final Budget Hearing is scheduled for September 25, 2025, 5:01 p.m. 7. Adjournment Chair Diggins adjourned the meeting at 4:27 p.m. _________________________ City Clerk _________________________ Minutes Approved