Special City Council/CRA Budget Workshop

MASTER City of Dunnellon Special City Council/ CRA Budget Workshop Date: July 16, 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: 35 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 Julie Danowski, Records Clerk Chief Ron Bray, Police Department— Absent 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 Wednesday, July 09, 2025. 1) FY2025- 2026 Proposed Budgets Mrs. McLean presented the proposed budget, beginning with the five- year capital plan. She recommended the general Police Department funds of 2026 be removed from the plan due to the new Sheriff' s contract and Council agreed. She suggested combining any surplus funds received from the sale of police items with the existing police building funds to create a single reserve fund for the Police Department. Roads and Streets were discussed next. Mrs. McLean stated updated project costs are coming in lower than expected and the budget will be adjusted to reflect actual bid amounts. A five- year road plan is in development and Vice- Mayor Inskeep noted it may be possible to repair all City roads in need with the available funding. A specific drainage issue on Vogt Springs Road was

Special City Council/ CRA Budget Workshop July 16, 2025 Page 2 of 3 brought up for review, with Mr. Ward indicating he would address the matter. Council discussed hazards in other areas, including open drainage and storm sewer concerns. Vice- Mayor Inskeep shared the CRA road project will use a template based on Kimley- Horn' s original bid specs and it will focus on reclamation without additional storm drain work. He advised construction will begin near the Fire Department on August 7th and is expected to be completed by September 21st Rolling Hills Road was recently added to the five- year plan. Mayor Green requested coordination with the County to complete the full length of the road. Vice- Mayor Inskeep said the City' s portion will follow current specifications and will not include widening because that would require costly engineering. Staff agreed to reach out to the County to encourage a joint effort. Parks were budgeted at $ 370, 000 but one unfunded line item, playground equipment for Ernie Mills Park, was identified as more appropriate for CRA. Council agreed not to add new park expenses unless they are supported by a fully funded grant. Vice- Mayor Inskeep stated there are funds being shifted to City Beach for improvements. Mrs. McLean reviewed revenues and expenditures next. She stated the proposed millage rate is 7. 0000, with the rollback rate at 5. 0309. Council discussed the range of options, including the potential to go below rollback. Mrs. McLean explained going below rollback could impact reserves or services. Vice- Mayor Inskeep noted current reserves are healthy and the budget does not rely on them. Council did not select a final rate, pending updated revenue figures. Delinquent tax revenues were briefly discussed. Council noted timing issues related to quarterly payments and categorization of tax sale proceeds. Council' s follow- up questions included confirmation of cemetery repair funding, an update on the possible FDEP stormwater fine, and from where impact fees can be received. Vice- Mayor Inskeep clarified Council is expected to review the budget independently and bring comments to meetings and Council agreed. Mrs. McLean closed her presentation by explaining revenue projections are based on a three- year average, except for ad valorem, and the updated capital numbers will be included in the report before the next meeting. 2) Council Comments There were no further Council comments. 3) Public Comment There were no public comments.

Special City Council/ CRA Budget Workshop July 16, 2025 Page 3 of 3 Adjournment The meeting was adjourned at approximately 5: 32 p. m. Penned signature of: Walter L. Green, Mayor Att st: Penned signature of: Amanda Odom, CMC, City Clerk