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HomeMy WebLinkAbout06-29-26 Budget Workshop Adopted Minutes-Ltr MINUTES Budget Workshop Meeting Monday, June 29, 2026 - 6:00 PM City Hall, Commission Chamber 800 Seminole Road, FL 32233 ATTENDANCE: Present: Curtis Ford, Mayor - Seat 1 (At Large) Bruce Bole, Commissioner - Mayor Pro Tem Seat 2 (District 1308) Thomas Grant, Commissioner - Seat 3 (District 1307) Candace Kelly, Commissioner - Seat 4 (District 1306) Jessica Ring, Commissioner - Seat 5 (District 1312) Also Present: Kevin Hogencamp, City Manager (CM) Ladayija Nichols, Deputy City Clerk (DCC) Brittany Percell, Finance Director (FD) CALL TO ORDER 1. PUBLIC COMMENT The following speakers provided their comments: Sunny Wroten shared a handout with the Commission (which is attached hereto and made part of this official record as Attachment A). Brinkley Harrell 6-29-26 Attachment A 2. OVERVIEW OF FY 2026-27 OPPORTUNITIES AND CHALLENGES (CM HOGENCAMP CM Hogencamp presented as detailed in a slideshow and handout (which are attached hereto and made part of this official record as Attachments B and Q. He and FD Percell answered questions from the Commission. Discussion ensued. Commissioner Grant arrived at 6:14 PM. Commission Requests: • Staff to provide a detailed explanation of the current reserve balance and how it was calculated at the next meeting. • Public educational materials related to the property tax referendum to include a breakdown of the total property tax bill across all taxing authorities for context. Consider opportunities to reduce the FY 2026-27 budget by approximately $500,000 to help offset potential future impacts associated with the referendum. Budget Workshop June 29, 2026 • Staff to provide a consolidated salary summary for all department directors and deputy directors, including positions funded across multiple departments. 6-29-26 Attachment B 6-29-26 Attachment C 3. Q+A AND DISCUSSION Discussion ensued. ADJOURNMENT The meeting adj ourned at 7:10 PM. Attest: Ladayija Nichols, Efeputy City Clerk Date Approved: 7113 / 10 2 (o raita Curtis ord, May r Budget Workshop June 29, 2026 Attachment A to 6-29-26 Minutes Investing in Tomorrow's Innovators City of Atlantic Beach STEM Initiative Friends of Atlantic Beach Elementary School Grant Request Attachment A to 6-29-26 Minutes F p r_tjtivp Simmary The Friends of Atlantic Beach Elementary respectfully requests a $10,000 City of Atlantic Beach Grant to expand STEM programming for every student attending Atlantic Beach Elementary. Last year, the City's investment helped provide: • STEM resource classes • Robotics Team • Schoolwide STEM assembly Because of the City's support, every one of our approximately 500 students had access to engaging STEM experiences regardless of grade level or background. The total cost of these programs was: $13,029.54 The City contributed: $7,500 Parents and community donors funded the remaining balance because we believed every child deserves access to these opportunities. This year, we respectfully request the full $10,000 grant so we can continue and expand these successful programs while reducing the financial burden placed on families. Attachment A to 6-29-26 Minutes Why STEM Matters The careers our children will enter tomorrow are rapidly changing. I fkaw Whether they become: • Builders • Engineers • Doctors • Pilots • Programmers • Meteorologists • Scientists • Electricians; they will all rely upon STEM skills. Early exposure to science and engineering encourages curiosity, creativity, teamwork, communication, and critical thinking. These are the same skills employers consistently identify as essential for the future workforce. By investing in STEM today, the City is investing in the future workforce of Atlantic Beach. Attachment A to 6-29-26 Minutes Last Year's Results STEM Resource Class Every student in Kindergarten through Fifth Grade participated in hands-on STEM lessons every other week throughout the school year. These lessons introduced students to • Engineering • Coding • Scientific investigation • Problem solving • Teamwork Every child participated. i .......................................... ° LA n r ° f_ ' `` Attachment A to 6-29-26 Minutes Last Year's Results (Cont.) STEM Assembly Students participated in an interactive Wild Wonders Reptile Show featuring animals from all four reptile groups. Students experienced: • Live animals • Animal adaptations • Habitats • Scientific observation The program combined music, storytelling, humor, and hands-on participation, making science exciting and memorable. Attachment A to 6-29-26 Minutes Last Year's Results (Cont.) Robotics Team The City helped fund our after-school Robotics Team. Students: • Designed LEGO robots • Learned coding • Solved engineering challenges • Represented Atlantic Beach Elementary at the DCPS Computer & Science Robotics Expo These students proudly represented the City of Atlantic Beach while competing alongside schools throughout Duval County. Attachment A to 6-29-26 Minutes This Year's Vision Rather than simply repeating last year's success, we'd like to expand it. STEM Weather Experience This year we'd like to bring Rolling Weather LLC — The Planet Earth Challenge to Atlantic Beach Elementary. W. Students won't simply watch a presentation. They will experience weather science. Activities include: • Creating a live weather broadcast • Exploring snow science • Standing inside a water tomado • Interactive weather station • Making lightning move • Hands-on experiments • Seeing giant hailstones This immersive experience aligns perfectly with elementary science standards while making learning unforgettable. Attachment A to 6-29-26 Minutes This Year's Vision (Cont.) Continue STEM Resource Class Continue providing STEM instruction every other week for every student. Funding helps cover. • Instructor • Supplies • Materials • Classroom experiments • Engineering activities Without grant support, these opportunities become much more difficult to sustain. Attachment A to 6-29-26 Minutes This Year's Vision (Cont.) Expand Robotics Funding will allow us to: Continue Mrs. Russell's after-school Robotics Club Purchase robotics materials Support competition preparation Return to the DCPS Robotics Expo Represent Atlantic Beach once again. Attachment A to 6-29-26 Minutes Budget Program Weather STEM Assembly Robotics Team STEM Resource Class Total Program Cost Grant Request Estimated Costs $4,000 $1,000 $8,000+ Approx. $13,000+ $10,000 Additional funding will continue to come from parent donations and fundraising. Attachment A to 6-29-26 Minutes Community Benefits This grant impacts far more than a classroom. It provides: ✓ STEM access for every child ✓ Environmental education ✓ Future workforce development ✓ Community pride ✓ Opportunities regardless of income ✓ Positive partnerships between the City and its public school Attachment A to 6.29-26 Minutes Recognizing the City We would love to recognize the City's investment throughout the school year. If funded, we plan to: • Invite City Commissioners to STEM Day Invite City representatives to the Weather Bus experience • Invite City representatives to Robotics presentations • Recognize the City at school events • Feature the City on social media • Include the City's logo in STEM event materials (subject to City approval) • Publicly thank the City during school programs • Invite Commissioners to the Robotics Expo to watch Atlantic Beach students represent their community This partnership allows students to see firsthand that their local government believes in them and invests in their future. Attachment A to 6-29-26 Minutes Closing Statement The City of Atlantic Beach has always demonstrated its commitment to building a strong community. One of the greatest investments any community can make is in its children. With your support, approximately 500 students will experience hands-on science, engineering, robotics, coding, and environmental education that sparks curiosity today and prepares them for tomorrow. We respectfully ask the Commission to partner with Atlantic Beach Elementary once again by approving our $10,000 STEM grant request. Together, we can inspire the next generation of scientists, engineers, innovators, and leaders right here in Atlantic Beach. Thank you for your consideration and for investing in the future of our community. Atlantic Beach Elementary ... January 16 t STEM + Friday = FUN! Our 4th and 2nd graders were busy building, designing, and problem -solving during STEM class *&%. Check out the amazing creations and teamwork in action! WThank you also to the City of Atlantic Beach for the STEAM grant that helped fund this activity! We appreciate your support!V See less 6 Z - q I MM 0 AA i It�- Atlantic Beach Elementary is t.itl City of Atlantic Beach, Fla. ,. April 8 We are so grateful to the City of Atlantic Beach for their generous support of Atlantic Beach Elementary! 199 ;+ Thanks to their grant funding, our students are enjoying enriching STEM experiences—including an engaging STEM assembly, hands-on classroom activities, and expanded arts opportunities! A 1&0 These programs spark creativity, curiosity, and a true love of learning in the most meaningful ways. We truly appreciate the City's investment in our students, teachers, and school community—it makes a lasting impact each and every day! #ABE #CityOtAtlanticBeach #STEM #FABi See less A b Atlantic Beach Elementary QO January 13 * ,# Z We are SO excited for our upcoming STEM Assembly! - A We can't wait for our upcoming Wild Wonders Life Sciences Assembly, where students will experience an up -close, interactive animal show that makes learning unforgettable. This engaging program blends STEM learning vjith real-world connections, shokving how science, technology, engineering, and math work together to help us better understand animals and protect the natural world. Students will explore animal anatomy, adaptations, and ecosystems, see how technology is used in wildlife research, learn how engineers design habitats and care systems, and discover how math helps scientists measure, track, and study animals. It's an exciting, hands-on way to bring NGSS (Next Generation Science Standards) standards to life and spark curiosity in our Young scientists. We can't wait to see our Dolphins learning, exploring, and getting inspired! 1,14F Thank you to FABE for bringing this experience to ABE! WThank you also to the City of Atlantic Beach for the STEAM grant that helped fund this activity! We appreciate your SUPPOrtV See less /, " I k FRIDAY, JANUARY 23 Atlantic Beach Elementary January 23 - l• Best Day Ever • Poppy ••• This morning Wild Wonders visited ABE! Thank you to FABE for sponsoring an amazing STEM event for our students! 4 WThank you also to the City of Atlantic Beach for the STEAM grant that helped fund this activity! We appreciate your supportV See less - i • o ,- s •., _ v +19j 1 db Atlantic Beach Elementary March 6. 2025 *t 0 Our 5th grade First Lego League team attended the DCPS Computer Science & Robotics Expo today! ABE students showcased the innovative project they constructed this year. They presented their project to an FLL judge and participated in vendor STEM challenges. Our amazing team enjoyed the day and did well talking about their innovation project to the judge! We would like to thank the City of Atlantic Beach for the STEAM grant that helped fund this activity! See less M �" � ���� ■ �'�'t� cif a �� Attachment A to 6-29-26 Minutes Wild Wonders Animal Show "Animals and kids ... What's cooler than that??H" Confirmation and Invoice SSS T N -T Reptile R6habilitation Center, Inc. P.O. Box 614 �j�l'✓ Middleburg Florida 32050 Program Description: Wild Wonders is proud to present "The Reptile Show". It runs 45 minutes and includes 17 animals with reptiles from all classes. The show incorporates music, story, humor and hands-on experiences for the children. Children and adults will be encouraged to participate in the program. Children learn about animal behaviors, feeding, and adaptations in a fun and interesting way. It is a delight for children of all ages. Your Program: Starts: 8:30 and 9:30 am Shows Date: 1/23/2025 Place: Atlantic Beach Elementary Cost: $350 and $250 Total Cost: $600 Please make checks payable to: T -N -T Reptile Rehabilitation Center, Inc Notes: We take about 10' of space and if possible, a place to plug in. A table provided would be helpful but not necessary. Expect arrival 30 minutes before the show time to begin setting up. Payment must be made before or on the day of the show. We bring 17 animals that are self- contained. We are licensed and insured. Office Use Only Check: Credit: (add $4 dollars for every $100) Date Paid: Amount: Attachment A to 6-29-26 Minutes Bank o/America deposit products: FIC FDIC-Insured-Bockedbythe(oil folthondcreditofthe0.5. Government Friends Of AHarltic Beach Elementary Sc ; Profile & Settings ; Saved Items }� 8 Log Out BAN K OF A M ERI CA -1 � Business Advantage 360 Accounts Pay & Transfer Business Services Offers & Deals Tools & Investing Security Center Open an Account Help & Support Pay & Transfer 0 C*4 W� Transfer Zelles Pay Bills Wire/ACH between my accounts send or receive pay now or schedule U.S. or internati Activity Can't find what you're looking for? Go to your account details, or visit Y,hrr:, to view more activity. 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History Last 12 months Shana Woessner May timesheet - 33 hours Shana Woessner April and partial May wages, classroom supplies Shana Woessner 7 Early March timesheet: 36 hours Shana Woessner Late March - early April timesheet: 25.5 hours Shana Woessner Late Feb timesheet 22.75 hours Shana Woessner STEM supplies from Michael's and Amazon S 5 �5 v X'V qQr Y May 28, 2026 $00,00 You paid May 18, 2026 $1,519.55 You paid Apr07,2026 V2Qg0 You paid Apr07,2026 $510. 0 You paid Mar 16, 2026 $455.00 You paid Mat 03.2026 1-44 You paid Attachment A to 6-29-26 Minutes Shana Woessner STEM dans supplies, Jan (33 his) and Feb (38 his) tlrnesheets Shana Woessner November timesheet -36 hours Shana Woessner 9.9-11 7 timesheets and 8 amazon reimbursements Shana Woessner t classroom supplies and August -September timesheet Shana Woessner Reimbursement for various classroom supplies, Level 2 background check, 2 insurance policy, August timesheet: 34.75 hours Feb 17, 2026 "2,075 08 You paid Dec 05, 2025 $720.00 You paid Nov 08, 2025 $2-972.9 You paid Sep 10, 2025 $1,01-194 You paid Sep 01, 2025 $1,208.24 You paid Some history for canceled or failed domestic and international wires is only available for 6 months. 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Bank of America. N.A. Member FDIC. tguvl Housing Lender f, ® 2026 Bank of America Corporation. All Rights Reserved. Patent oatents.bankofamerice.corn Attachment A to 6-29-26 Minutes BANK OF AMERICA''/ Details Status To From Paid Zelle® payment Laura Russell 904-704-0237 Business Adv Fundamentals - 5738 Amount $400.00 Date May 28, 2026 Message 25-26 Robotics Program - 20 hours Confirmation # jgxgibghu Attachment_ 6-29-26 M!nL,Illlllllllllllllllpoillillill1w 11 rns UPS store 111469 1015 grLANTIC BLUD Htisntic Beach, FL 32233-3313 904-241-1649 Terminal...., p0S1469C Employea.... . 152047 pete-: 1120/2026 Cashier's 1101118 Time.: 01:16 PM Cn I lRe" H, ITEM 11A11E -------- - -- --.-_ 111Y PRICE TOTA Computer Use 1-15 min. - _ - - -- _- -_-- Id fin Tax Copies 19 Tax 29 J $0.69 subtotal Shivrin9/Other Charges 524.01 Total tax $0.00 $1.80 Total ------ __ x25.91 Ceras Itens Designated NR are NOT eligible for Returns, Refunds or Exchanges. US Postal Rates Are Subject to Surcharge, 11111111111 IINI�ull�l��1�11�I I View fhe UPS Store, 111c.,5 V\00 notice ®k httDsJ/ UUM. thoups5tpi e, cot% I V mo -vMtH Win ei $250 gift. caul fell us hou vire doing for your chencil TO Da ani 1150 e $100 Ase 1 , CtI 6! fC CIarO Brit Card 0,801Aon�n ;int Csrcd! #r A cg� r oar rp tot., go Attachment A to 6-29-26 Minutes 9:55 •�� Cancel Place Your Order - Amazon.co... Items (14): Shipping & handling: Your Coupon Savings: Estimated tax to be collected: Order total: Paying with Visa 4318 Change payment method Select a payment plan Use a gift card, voucher, or promo code $103.60 $0.00 -$0.80 $7.68 $110.48 Delivering to Stephanie Trefry 66 DEWEES AVE, ATLANTIC BEACH, FL, 32233-5818, United States Change delivery address Add delivery instructions Free Pickup near this address ^ Soel • 2.5 mi See details Pickup here Arriving Jan 10, 2026 Ordertotal:$11048 Place your order By placing your order, you agree to Amazon's privacy notice and conditions of use. Attachment A to 6-29-26 Minutes M Gmail Fw: Ordered: 2 "Adecortalk Reptile Jungle..." and 12 more items Stephanie Trefry <stephanie_trefry@yahoo.com> Thu, Jan 8, 2026 at 10:29 AM To: Friends of Atlantic Beach Elementary <info@fabehome.org>, Lisa Edmunds <lisa.marie2424@gmail.com> I purchased these for 2026 STEM Assembly. We also will have to issue a check to Wild Wonders. Will get that invoice over. Stephanie Begin forwarded message: On Thursday, January 8, 2026, 9:56 AM, Amazon.com <auto-confirm@amazon.com> wrote: Your Orders Your Account Buy Again Thanks for your order, Stephanie! Ordered Shipped Out for delivery Delivered Attachment A to 6-29-26 Minutes Arriving Saturday Stephanie - ATLANTIC BEACH, FL Order # 112-4421611-9541850 View or edit order 50Pcs Amphibians Reptile Stickers... Quantity: 2 $590 102PCS Sea Turtle Stickers, Cute ... � 0.4f, N Quantity: 2 $599 102 Pack Lizard Stickers for Boys... .3" Quantity: 2 . . . . . . .. . . . . $699 ff4P.1?* Adecortalk Reptile Jungle Happy B... ,Sjpirj4D Quantity: 2 $899 4n Grand Total: Continue shopping deals $110.48 Yqskt 200PCS Lizard Stickers, Wat... Quantity: 2 - Quantity. 4 f $799 '77 50Pcs Amphibians Reptile Stickers... Quantity: 2 $590 102PCS Sea Turtle Stickers, Cute ... � 0.4f, N Quantity: 2 $599 102 Pack Lizard Stickers for Boys... .3" Quantity: 2 . . . . . . .. . . . . $699 ff4P.1?* Adecortalk Reptile Jungle Happy B... ,Sjpirj4D Quantity: 2 $899 4n Grand Total: Continue shopping deals $110.48 1 OOpcs Reptile Stickers for Kids Quantity: 2 $795 50Pcs Amphibians Reptile Stickers... Quantity: 2 $590 102PCS Sea Turtle Stickers, Cute ... � 0.4f, N Quantity: 2 $599 102 Pack Lizard Stickers for Boys... .3" Quantity: 2 . . . . . . .. . . . . $699 ff4P.1?* Adecortalk Reptile Jungle Happy B... ,Sjpirj4D Quantity: 2 $899 4n Grand Total: Continue shopping deals $110.48 0 Attachment A to 6-29-26 Minutes $36.95 $25.49 -10% $115.38 Mythinglogic Rolling Spo Leikar Button Up Pajamz Melissa & Doug Wooden ©2026 Amazon.com, Inc. or its affiliates. Amazon and all related marks are trademarks of Amazon.com, Inc. or its affiliates, Amazon.com, Inc. 410 Terry Avenue N., Seattle, WA 98109. The payment for your invoice is processed by Amazon Payments, Inc. P.O. Box 81226 Seattle, Washington 98108-1226. If you need more information, please contact (866) 216- 1075 By placing your order, you agree to Amazon.com's Privacy Notice and Conditions of Use. Unless otherwise noted, items sold by Amazon.com are subject to sales tax in select states in accordance with the applicable laws of that state. If your order contains one or more items from a seller other than Amazon.com, it may be subject to state and local sales tax, depending upon the seller's business policies and the location of their operations. Learn more about tax and seller information. Attachment B to 6-29-26 Minutes FY 2026-27 Opportunities and Constraints Budget Workshop #1 - June 29, 2026 Attachment B to 6-29-26 Minutes Current Year Millage Rate Comparison St. Augustine Ft. Pierce Daytona Beach Lake Worth Statewide average Fernandina Beach New Smyrna Beach Ft. Walton Beach Jacksonville Beach Neptune Beach Atlantic Beach $0.00 $1.00 $4.6849 $4.6370 $4.3282 $3.9947 $3.3656 $2.7499 $2.00 $3.00 $4.00 $5.00 $5.9300 $5.4945 $6.00 $7.5000 $6.9000 Attachment B to 6-29-26 Minutes Atlantic Beach Where Your Property Tax Millage Property Rate Tax* City of Atlantic Beach 2.7499 $750 Inland Navigation 0.0270 $7 Duval County School Board 6.3430 $1,889 Water Management District 0.1793 $49 City of Jacksonville 7.9012 $2,156 TOTAL 17.2004 $4,851 Dollars Go *Based on a median home assessed value of $322,82 , with a homestead exemption Final adopted millage rates per DR -403 Attachment B to 6-29-26 Minutes How the City Budget is Set Up A. The annual budget includes capital and operating expenses and all revenues for the fiscal year, across all City operations. B. The annual budget includes a Capital Improvement Program, identifying capital projects for a multi-year period. C. The fiscal year is October 1 through September 30. Attachment B to 6-29-26 Minutes How Your City Budget is Set Up D. The annual budget is MORE than just property taxes. E. Enterprise Funds — funds that pay for themselves (i.e., water, sewer, sanitation) F. Restricted Funds — funds can only be used for specific purposes (i.e., Building Division, Gas Tax, Visitor and Tourism) G. Unrestricted Funds — funds that can be used for any type of expense (the "General Fund") Attachment B to 6-29-26 Minutes GIF Compared to Total Budget Attachment B to 6-29-26 Minutes Ad Valorem Reduction A. House and Senate both APPROVED resolutions B. Bills of focus is for: 1. $150,000 homestead exemption on January 1, 2027 2. $250,000 homestead exemption on January 1, 2028 3. Exemption indexed to Consumer Price Index (CPI) on January 1, 2029 4. Requires a schedule for the full elimination of homestead property taxes C. Residents with less than 5 years residency only qualify for 50,000 exemption D. 5 Year residency waived starting Jan. 1, 2030 E. Non -homestead max annual increase reduces from 10% to 5% on Jan. 1, 2027 B to AAttachmentvute"l"alorem Revenues GIF —Atlantic Beach Attachment B to 6-29-26 Minutes Options Available A. Millage Increase — state law requirements B. Service Reductions — only services funded by GF C. Impose New/Increased Fees — parks/rec, fire, etc. D. Special Assessments —capital projects (i.e., street resurfacing) E. Combination of A, B, C and/or D Attachment C to 6-29-26 Minutes FY 2026-27 Budget Strategy Report: Opportunities and Constraints To: Honorable Mayor, Members of the City Commission, and the Atlantic Beach Community From: Kevin Hogencamp, City Manager Date: June 29, 2026 Subject: Fiscal Year 2026-27 Budget Strategy Report Executive Summary As we approach the Fiscal Year 2026-27 budget cycle, the City of Atlantic Beach stands at a critical financial crossroads. Managing structural revenue shifts requires a balanced, dual strategy: aggressive internal cost containment and targeted, modest adjustments to user fees. Furthermore, comprehensive policy development is a key responsibility that we are undertaking during this cycle to establish clear, repeatable frameworks --for matters ranging from lift station development to selecting a new city manager --for future governance. By taking proactive, measured steps now, we can stabilize our fiscal foundation, absorb upcoming revenue losses, and ensure the uninterrupted delivery of high-quality municipal services to our residents. Atlantic Beach at a Glance (FY 2025-26 Baseline) To frame our upcoming strategic decisions, our current fiscal baseline and community profile are outlined below: Metric Total Municipal Budget Core General Fund Current Millage Rate Population / Households--] [Median Household Income Median Home Value (202 3) Baseline Value $57,616,034 $21,636,755 2.7499 mills 13,353 residents / 5,750 households $103,288 $565,500 Attachment C to 6-29-26 Minutes Where Your Dollars Also Go (Enterprise and Special Funds) • Water and Sewer Funds • Stormwater Fund • Sanitation Fund • Building Code Enforcement Fund Fiscal Benchmarks: Healthy Fund Balances (Projected — Sept. 30, 2026) A significant positive highlight for the City is our strong financial positioning across several targeted accounts. These healthy fund balances insulate the city and ensure capital reserves remain viable: • Water Fund: $1,865,705 • Sewer Fund: $2,499,924 • Capital Projects Fund: $1,002,760 • Tree Protection Fund: $617,495 • Better Jacksonville Fund: $484,994 • Paid Parking Fund: $330,573 Guiding Structural Documents Our approach to the upcoming fiscal year is strategically anchored by the following core planning frameworks: • Capital Improvement Plan • Stormwater Master Plan • Connectivity Plan • Adaptation and Resiliency Plan General Fund Revenue Summary In the City of Atlantic Beach, property taxes traditionally make up the single largest slice of General Fund revenues (roughly 40%). To balance the rest of the operational budget for daily services like public safety, street maintenance, and parks, the city relies on several other primary funding mechanisms: 1. Intergovernmental & State -Shared Revenues These are taxes collected by the State of Florida or Duval County and distributed back to the municipal level based on local populations. Local Option Sales Taxes: A portion of the discretionary sales surtax collected within the county. State Revenue Sharing & Municipal Home Rule Taxes: Formulas that reallocate state -collected sales and motor fuel taxes back to local governments. Half -Cent Sales Tax: A state -shared revenue program designed to provide local tax relief and support municipal operations. Attachment C to 6-29-26 Minutes 2. Franchise Fees and Utility Service Taxes The city levies fees on utility providers for the right to operate within the public right-of- way, alongside discretionary taxes on consumption. • Franchise Fees: Charged to electricity (FPL), gas, and solid waste providers. • Public Service 1 Utility Taxes: Levied on purchases of electricity, water, metered or bottled gas, and fuel oil. • Communications Services Tax (CST): Applied to telecommunications, satellite, and cable TV services. 3. Licenses, Permits, and Fees Revenue generated directly from regulatory activities, local commerce, and specific land - use functions. Building, Electrical, and Plumbing Permits: Fees collected during the inspection and approval process for local development and renovations. Local Business Tax Receipts (LBTR). The fee paid by businesses operating within city limits to maintain their business tax license. Zoning and Plan Review Fees: Collected by the community development department for specialized land -use approvals. 4. Charges for Services & Shared Programs Direct payments for city -provided activities or local operational agreements. Arts, Recreation and Cultural Activity and Rental Fees: Revenues from community center usage, park facilities, and specialized recreation programming. Interlocal Agreements: Formally structured, cost-sharing programs with neighboring beach communities or the county (such as the managed Paid Parking Program revenue split at Beaches Town Center, which supports right-of-way infrastructure and beach area amenities). 5. Fines, Forfeitures, and Miscellaneous Revenues Smaller, auxiliary streams that naturally fluctuate year to year. Traffic Fines and Local Code Violations: Revenue from municipal code enforcement and local civil infractions. Investment Earnings: Interest generated from the city's managed cash balances and operational reserves. Grants and Administrative Transfers: Minor project reimbursements or overhead charge -backs from the city's proprietary (utility) funds to the General Fund for shared administrative costs. Attachment C to 6-29-26 Minutes City Commission FY 2026-27 Strategic Priorities Our financial planning remains anchored by our commitment to preserve community character, create a strong sense of belonging and safety, and promote active lifestyles through green spaces and parks. To deliver on these promises, we continue to invest prudently in our workforce. While fiscal restraint is paramount this cycle, the budget maintains essential support structures --such as competitive compensation -and -benefits packages, targeted tuition reimbursement, training, certification support, and assistance with rising healthcare and fuel liabilities --to retain the talent necessary to run our city efficiently. I. Resiliency and Infrastructure Focus: Addressing drainage needs, functional integrity, and long-term sustainability. • Stormwater Master Plan Update: Formalize a strategic management framework that includes: o Basin and Geological Surveys: Conducting technical drainage basin evaluations and geological -level surveys (distinct from property boundary surveys). o Infrastructure Prioritization: Emphasizing publicly funded infrastructure improvements over property rights restrictions. o Right -of -Way Optimization: Utilizing city rights-of-way to expand drainage capacity and ditch networks. • Systematic Maintenance and Equipment: Develop and publish a recurring maintenance cycle for cleaning drainage ditches, restoring the functional capacity of retention basins, and utilizing specialized machinery like the city Streetsweeper to prevent debris accumulation. • Comprehensive Rate Studies: Procure professional rate studies for water, sewer, stormwater, solid waste, and recreational facilities to ensure fee structures align with actual maintenance and public service costs. • Permeable Technology Incentives: Create a program to incentivize the use of permeable materials by residents to reduce neighborhood runoff, specifically highlighting the integration of the Turf Block Program. II. Environmental Stewardship Focus: Protecting the tree canopy and preserving vital maritime ecosystems. • Old -Growth Tree Protection and Management: Develop and adopt a robust ordinance specifically designed to protect "champion" trees, supported by a comprehensive, updated Tree Inventory. • Marsh and Shoreline Restoration: Prioritize marsh preservation and the protection of vulnerable shorelines by initiating two high -impact environmental restoration projects. • Dune Stabilization and Access: Sustain critical erosion -mitigation efforts through investment in Dune Walkovers and strategic sea oat planting. Attachment C to 6-29-26 Minutes III. Community Spaces and Programming Focus: Enhancing recreational assets and connectivity. • Parks Master Plan Update: Modernize the citywide Parks Master Plan to reflect current usage trends and community demographics. • Donner Park Upgrades: Leverage grant and private funding sources for baseball field and other improvements. • Marsh Oaks Community Center: Dedicate specific programming and operational resources to maximize the utility of this new facility. • Neighborhood Amenities and Maintenance: Fund dedicated Community Garden upkeep, park facility improvements, and park maintenance. IV. Public Safety and Mobility Focus: Improving visibility, traffic flow, and modernizing local legislation. Town Center Illumination: Install upgraded street lighting within the Town Center to enhance pedestrian safety and visibility. Traffic Calming and Infrastructure: Implement the Sherry Drive traffic calming project, utilizing targeted tool deployments like Speed Bumps and Right -of -Way Parking Demarcation to manage residential traffic flows. E -Bike Legislation (Version 2.0): Craft updated regulations to address evolving safety trends and usage patterns for electric bicycles. V. Organizational Excellence and Partnerships Focus: Maintaining high service standards, community engagement, and regional advocacy. • Employee Recruitment and Retention: Implement strategies to hire, train, and retain a high-quality professional workforce. • Volunteer Optimization: Focus on better utilizing our community's talented volunteers to enable us to do more great work across all municipal initiatives. • Civic Engagement and Infrastructure: Modernize city infrastructure beginning with a Citizen Polling initiative to gather community feedback, paired with modest facility updates like replacing the aging Commission Chamber Chairs. • Educational Advocacy: Continue proactive engagement with Duval County Public Schools regarding boundary and budget issues to ensure the long-term viability of Atlantic Beach Elementary. 1. Strategic Opportunities: Capital Project Wins Operational Efficiency and To maintain a balanced budget without compromising essential infrastructure, the City must leverage internal efficiencies, capitalize on recent state funding successes, and ensure that fee -supported services recover their actual operational costs. Attachment C to 6-29-26 Minutes Major Infrastructure Grants and Capital Projects Governor DeSantis has officially signed the state budget, securing $1,062,500 across three critical Atlantic Beach infrastructure priorities, alongside an exceptional ranking for our resilience initiatives. We continue to maximize these opportunities through strategic advocacy and professional grant consulting partnerships. • Sherman Creek Dredging and Bank Stabilization: $650,000 in state funding approved. We also have a separate $1 million Federal FY 2026-27 community funding request active in the legislative queue to advance further phases. • Dora Drive Stormwater Mitigation Pond: $212,500 in state funding approved. This project is engineered to protect 92 structures from 25 -year flood events. The city intends to leverage this $212,500 state appropriation as our 25% local match for a FEMA Hazard Mitigation Grant Program (HMGP) design and survey grant. The total projected funding for FY 2026-27 is expected to reach $850,000, fully covering design costs. • Marsh Oaks Septic Tank Elimination: $200,000 in state funding approved to further our phased septic -to -sewer conversion efforts. • Resilient Lift Station Project (Phase I): The Governor signed the Resilient Florida implementation program at full funding ($160 million). Because Atlantic Beach's Phase I project ranked second on the statewide list, our grant writers report we are safely in line for a $1.34 million state matching share. This will fund vital floodprooflng for five of our most vulnerable lift stations: Mimosa Cove, Lakeside, Palm Avenue, 11th Street, and Camelia Street. An official award announcement is expected any day. • Sea Gardens Lift Station: Advanced in the infrastructure pipeline to further safeguard the local sewer network against environmental vulnerabilities. • Stanley Road Stormwater Pipe Enlargement: This project (stretching from Stanley to Donner) is HMGP-funded. We are currently awaiting final approval of our design documents and construction estimates from the state to unlock construction funding. The contract execution is anticipated within FY 2026-27. Veto Update: The Governor vetoed our requested $195,000 appropriation for the Sailfish Drive multiuse path. Accordingly, administration will revisit this connectivity project with the Commission during an upcoming budget workshop to determine if alternative funding paths are viable. Operational and Communications Improvements Digital Communication Efficiencies: In partnership with BS&A, we successfully launched our new a -Plan Site Plan Review Software. Modernizing public information distribution and internal workflows significantly reduces print and administrative overhead while increasing development review transparency. General Communications Improvements continue across departments to digitize workflows. Fee -Supported Service Alignment: Transitioning specialized municipal services into self-sustaining models, reducing their reliance on general tax revenue. Strategic Communications Expansion: To further build upon these digital milestones, the city will develop and implement a formal, Strategic Attachment C to 6-29-26 Minutes Communications Plan. This initiative will anchor our operations around proven best practices within the municipal communications arena. To achieve the transparency and reach our community expects, the city will invest in both dedicated human resources and updated communications technology. This framework will ensure proactive public messaging, streamline resident feedback loops, and foster greater civic engagement. 2. Internal Cost Containment ("Belt -Tightening") Faced with tightening margins, surging fuel prices, and climbing health insurance premiums, the administration is leading by example with aggressive internal cost -control measures. These decisions are difficult but necessary to avoid immediate property tax spikes. Workforce Restructuring: For the first time in more than a decade, the City will reduce its FTE count. This careful restructuring optimizes departmental workflows and lowers long-term salary and benefit liabilities. Conservative Compensation Adjustments: The upcoming budget proposes the smallest employee salary increase in more than 10 years. While retaining top talent remains a priority, this step reflects the immediate need for organization -wide fiscal restraint. PTO Bank Optimization: We are implementing a strategic restructuring of our PTO bank policy. By adjusting accrual limits and cash -out structures, the City is actively mitigating long-term compensated absence liabilities. 3. Modest and Targeted Fee Adjustments To relieve pressure on the General Fund, the City will implement modest, localized fee increases, ensuring specific services are supported directly by users rather than broad tax subsidies. Annual Utility Indexing (Water, Sewer, and Stormwater): Implementing predictable, annual adjustments to utility and stormwater rates. These incremental increases directly fund crucial Capital Improvement Projects (CIP), ditch maintenance, road paving, aging infrastructure replacement, and environmental compliance. Recreation Permits: Adjusting fee structures for recreational programs and facility usage (such as the newly completed Aquatic Dog Park pavilion) to better align with the rising operational and maintenance costs of parks and public spaces. Building Permits: Updating the building department fee schedule to reflect the actual administrative and logistical costs of plan reviews, code enforcement, and field inspections. Attachment C to 6-29-26 Minutes 4. Looming Challenges: Structural Revenue Shifts and Regional Pressures The primary drivers of our current fiscal constraints are external, structural, and contractual. We must proactively plan for shifting tax exemptions and sunsetting regional revenue sources. Long -Term Revenue and Environmental Vulnerabilities • Coastal and Climate Resilience: As a coastal city spanning three square miles with two miles of ocean beach, we face escalating infrastructure protection and mitigation costs. We must safeguard our stormwater systems and maintain robust emergency reserves against severe weather events. • Homestead Exemption Pressures: Ongoing legislative expansions and structural shifts in homestead exemptions continue to limit property tax revenue growth, decoupling municipal revenue from real-world inflationary pressures on service delivery. • The Sunset of the "Better Jacksonville Plan" Revenue: The impending loss of the Better Jax sales tax revenue represents a major structural shift. This sunsetting regional revenue source has historically offset significant capital and infrastructure burdens; its expiration leaves a financial void that must be actively managed. • City of Jacksonville (COJ) Interlocal Agreement: Renegotiating or adapting to the shifting terms of our interlocal agreement with Duval County may impact shared revenue distributions, county -provided services, and cost-sharing metrics. Operational and Contractual Hardships Potential Hiring Freeze: If revenue lines do not stabilize following the Better Jax elimination and prospective property tax realignment, the city may be forced to implement a comprehensive hiring freeze. This presents a challenge for maintaining optimal service levels in high -demand departments. Partnership Obligations (Boys and Girls Clubs): Maintaining this critical partnership with the Boys and Girls Clubs of Northeast Florida remains a high priority. Managing our funding obligations and operational expectations within our joint agreement requires careful recalibration to ensure community benefit matches fiscal capacity. Compounded Utility Pressures: While utility fee increases represent an opportunity to stabilize the enterprise funds, they simultaneously present a political and community challenge. Communicating the necessity of concurrent annual increases for water, sewer, and stormwater utilities to residents will require absolute transparency regarding infrastructure needs. 5. Key Decisions to Make The City Commission will need to provide definitive policy and funding direction on the following localized items during upcoming workshops: Attachment C to 6-29-26 Minutes 1. 16th Street Walkover: Determining structural parameters, budget allocations, and execution timelines for access maintenance. 2. ARCC Grant Funding: Finalizing the application, deployment, and matching allocation strategy for upcoming grant project cycles. 3. Donations to Nonprofits: Establishing the baseline funding levels and evaluation criteria for municipal resource contributions to local community organizations. 6. Forward -Looking Strategic Outlook To put our property tax rate in perspective locally: under Atlantic Beach's current rate, the homesteaded owner of a $500,000 home pays about $1,070 a year in property taxes directly to the City. For an entire year of police protection, storm drainage, paved roads, ditch maintenance, and clean, equipped parks, the cost is equivalent to a premium boutique fitness subscription --about $89 a month. To maintain this exceptional return on investment for our residents, our upcoming budget presentations to the Commission emphasizes a three -pronged approach: Protect Core Infrastructure: Ensure enterprise funds (Water, Sewer, Stormwater) remain self-sustaining through predictable annual adjustments, avoiding massive, back-loaded rate shocks to residents. We must also begin work immediately on the next FDEP Resilient Florida cycle before the September 1 deadline. Optimize Intergovernmental Partnerships: Aggressively defend the city's interests during upcoming interlocal agreement discussions and regional revenue transitions (COJ). Exhaust Internal Efficiencies: Demonstrate to taxpayers that the city is exhausting all internal "belt -tightening" options -- including workforce restructuring and minimized salary growth -- before seeking broad-based millage rate adjustments.