HomeMy WebLinkAbout8-19-26 Budget Workshop Adopted MinutesMINUTES
Budget Workshop Meeting
Wednesday, August 19, 2026 - 6:00 PM
a 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)
Candace Kelly, Commissioner - Seat 4 (District 1306)
Jessica Ring, Commissioner - Seat 5 (District 1312)
Absent: Thomas Grant, Commissioner - Seat 3 (District 1307)
Also Present: Kevin Hogencamp, City Manager (CM)
Ladayija Nichols, Deputy City Clerk (DCC)
Bob Blanco, Human Resources Director (HRD)
CALL TO ORDER
Mayor Ford called the meeting to order at 6:03 PM.
1. PUBLIC COMMENT
None.
2. STAFF PRESENTATION
CM Hogencamp presented the item as detailed in the agenda packet, along with a
handout and slideshow, which are attached hereto and made part of this official record
as Attachments A and B.
8-19-26 Attachment A
8-19-26 Attachment B
3. COMMISSION DISCUSSION
Discussion ensued, and the Commission requested the following:
• Provide the payment schedule and interest rate information for the Selva Preserve debt.
• Report on the City's available line of credit and current drawdown status.
• Provide the total cost of department -head -level positions, including all funding sources.
• Publish detailed line -item budget information for all departments, including General
Government Support and Finance.
• Confirm the amounts budgeted and spent during the current fiscal year for Fletcher High
School Band and Mayport Middle School grants prior to the next meeting.
Mayor Ford took a brief recess from 7:15 PM to 7:20 PM.
Budget Workshop
August 19, 2026
Attest:
ADJOURNMENT
The meeting adjourned at 7:32 PM.
Ladayija Nichols, Deputy City Clerk
Date Approved: 0� ! Z-4
"isrd, May r
Budget Workshop
August 19, 2026
I EXECUTIVE SUMMARY & STRATEGIC DIRECTION
The Proposed Fiscal Year 2026-27 Municipal Budget for the City of Atlantic Beach establishes a balanced,
financially sound operational and capital framework. Operating under a maintained millage rate of 2.7499 mills —
among Florida's lowest municipal rates for full-service cities — this budget proactively addresses impending
structural revenue shifts while maintaining exceptional municipal services.
External Economic Headwinds
• Sunsetting Revenue Sources: Expiration of the Better Jacksonville Plan sales tax revenue framework.
• Legislative Homestead Pressures: Expanding state homestead exemption proposals, with modeled municipal
revenue reductions of–$1.08M in FY 2027-28 and–$1.80M in FY 2028-29.
• Cost Drivers & Interlocal Agreements: Persistent inflationary forces paired with evolving interlocal service cost-
sharing dynamics with Duval County.
I STRATEGIC INITIATIVES & OPERATIONAL ACHIEVEMENTS
FY 2025-26 Operational Wins
FY 2026-27 Key Priorities
• Environmental & Infrastructure: Enacted landmark
• Resiliency & Infrastructure: Execute
tree protection code; completed Aquatic -Hopkins
Stormwater Master Plan update with geological
infrastructure; converted water/sewer disinfection from
surveys; prioritize public ROW drainage;
gas chlorination to safer alternatives; launched Phase 2
establish routine ditch maintenance; launch
North Sherry Drive water main extension,
permeable block incentives.
• Technology & Analytics: Deployed enterprise ERP
software, Open AB public transparency portal, AB Trees
canopy tracking, and modern asset management
systems.
• Community & Culture: Completed Marsh Oaks
Community Center & garden; hosted Centennial events
and Turtle Crawl; established Farmer's Market & ABAA
partnerships; revitalized Veterans Memorial Park.
I FY 2026-27 BUDGET ADOPTION TIMELINE
• Environmental Stewardship: Enact Old -
Growth Champion Tree Protection Ordinance;
perform marsh shoreline restoration; maintain
dunes via sea oat planting.
• Public Safety & Mobility: Modernize Town
Center lighting; build Sherry Drive traffic
calming; update E -Bike Ordinance 2.0.
• Community Spaces: Update Parks Master
Plan; complete Donner Park splash pad &
baseball upgrades; launch full Marsh Oaks
operations.
TMay 2026: Departmental Request Reviews Conducted by City Management
City of Atlantic Beach — FY 2026-27 Proposed Budget
Page 1 of 6
Attachment A to
8-19-26 Minutes
June 2026: Public and Commission Input Solicited
June 29, 2026: First Budget Workshop
July 20, 2026: Second Budget Workshop and Strategy Publication
August 4, 2026: TRIM Notice Submitted (Millage Capped at Current Rate)
August 19, 2026: Third Budget Workshop and Fiscal Strategy Submission
August 24, 2026: City Commission Budget Discussion
September 3, 2026: Revised Proposed Budget Submission
September 9, 2026: Final Proposed Budget Submission
September 14, 2026: First Formal Public Budget Hearing
September 28, 2026: Final Budget Hearing and Official Tax Rate Adoption
WORKFORCE RESTRUCTURING & INTERNAL COST CONTAINMENT
• Net Position Reductions: Achieves a net reduction of 2 FTE positions in FY 2026-27 by eliminating the FIR Deputy
Director, Wastewater Plant Operator, and Building Maintenance roles (-$240,000 + benefits in savings), offset by
adding a Communications Specialist (-$60,000), A multi-year target envisions reducing at least 4 additional FTEs
through attrition by FY 2028-29 (-$450,000 + benefits).
• Compensation Moderation ("Greater Of" Formula): Implements the lowest net wage growth rate in a decade.
Increases the base minimum wage floor from $16.83/hr ($35,006.40/yr) to $18.00/hr ($37,440/yr) via a fixed
$2,433.60 annual boost. Staff earning under $121,680 receive a fixed $2,433.60 raise (2.43% to 6.95% increase),
while staff above $121,680 are capped at a 2.0% increase.
• Digital Workflow Optimization: Fully deploys BS&A Software and a -Plan Site Plan Review software to streamline
municipal permitting, planning, and administrative operations.
• Targeted Special Fund Alignment: Directs enterprise sources (e.g., Paid Parking Fund, Tree Protection Fund) to
absorb cost -recovery items, Beaches Town Center enhancements, and canopy preservation.
• Leave Liability Mitigation: Restructures compensated absence policies and PTO bank cash -out limits to curb long-
term leave liabilities.
TAX CONTEXT & PROPERTY OWNER VALUE ANALYSIS
Taxing Authority Breakdown based on a Median Homesteaded Assessed Value of $582,320:
Consolidated City of Jacksonville
7.9012
$3,161.32
44.9%
Duval County School Board
6.2550
$2,668.32
37.9%
City of Atlantic Beach
$1,100.45
15.6%
St. Johns River Water Management District
0.1793
$89.65
1.3%
Florida Inland Navigation District
0.0270
$13.50
0.2%
Total Combined Taxing Authorities
17.1124
$7,033.24
100.0%
City of Atlantic Beach — FY 2026-27 Proposed Budget
Page 2 of 6
Attachment A to
B-19-26 Minutes
Real -World Cost Reference: the City's annual property tax assessment of $1,100.45 on a median -assessed home
equals roughly $91.70 per month — comparable to the cost of a standard single- or multi -line monthly mobile phone plan.
I REVENUE ARCHITECTURE & SENSITIVITY SCENARIOS
Ad Valorem Revenue Breakdown (Baseline Revenue: $9,094,896)
• Homesteaded Properties: $4,929,434 (54.2%)
• Non -Homesteaded Properties: $4,165,462 (45.8%)
• Organic Valuation Growth: Yields —$633,506 in incremental revenue under the current millage rate.
Homestead Exemption Expansion Sensitivity Modeling
SCENARIOEXEMPTION ESTIMATED REVENUE IMPACT GENERAL FUND (GF) IMPACT
Current Homestead Revenue Baseline $4,929,434 Baseline (100%)
$150,000 Exemption Scenario -$1,060,000 -4.9% GF
$250,000 Exemption Scenario -$1,840,000 -8.5% GF
Full Exemption Repeal Scenario -$4,929,434 -21.2% GF
Note: Replacing a total loss of homestead revenue would require a 1.4904 mill increase, raising the municipal tax rate
from 2.7499 to 4.2403 mills.
Y COMPREHENSIVE BUDGET SUMMARY BY FUND
General Fund (001)
$21,956,756
$21,820,934
-$135,822
-1.15%
Water Enterprise Fund
$11,808,183
$9,679,128
-$2,129,055
-18.03%
Sewer Enterprise Fund
$14,009,111
$11,131,888
-$2,877,223
-20.54%
Stormwater Utility Fund
$3,235,030
$3,340,215
+$105,185
+3.25%
Sanitation Fund
$2,637,572
$2,680,828
+$43,256
+1.64%
Building Code Fund
$758,451
$752,598
-$5,853
-0.77%
Other Funds i Reserves
$3,210,931
$7,544,409
+$4,333,478
+42.56%
Total Municipal Budget
$57,616,034
$56,950,000
-$666,034
-L16%
I GENERAL FUND DETAILED LINE -ITEM ALLOCATIONS
Total General Fund: $21,820,934
City of Atlantic Beach — FY 2026-27 Proposed Budget Page 3 of 6
Attachment A to
8-19-26 Minutes
Revenue Structure Expenditure Allocations
Ad Valorem Taxes
39.9%
Public Safety
39.3%
Intergovernmental
19.0%
General Government
30.6%
Internal Service Charges
9.4%
Public Works
15.69A
Sales and Use Taxes
7.0%
Parks and Recreation
11.8%
Fund Balance Reserve
6.0%
Transfers Out
2.0%
Licenses and Permits
5.1%
Human Services
0.7%
Transfers In
4.8%
$1,068,726
Human Resources
Charges for Services
3.7%
Information Technology
$988,700
Local Option Gas Tax
3.6%
Misc / Fines / Other
1.8`16
$1,691,985
Police - Patrol Division
Departmental Line -Item Breakdown
GENERAL GOVERNMENT
City Commission
$92,706
$92,421
City Manager
$659,903
$655,826
Finance Department
$1,543,194
$1,615,101
Legal Services
$173,644
$182,326
Planning and Zoning
$506,481
$566,836
Code Enforcement
$134,800
$134,907
City Clerk
$431,325
$451,236
General Government Support
$1,026,283
$1,068,726
Human Resources
$451,074
$385,668
Information Technology
$988,700
$988,700
PUBLIC SAFETY
Police - Administration
$1,545,172
$1,691,985
Police - Patrol Division
$4,453,785
$5,035,831
Police - Detective Division
$493,117
$521,301
Police - Dispatch Services
$563,106
$592,761
Police - Animal Control
$138,618
$145,245
Police - School Crossing Guards
$35,473
$49,213
Police - Crime Suppression Unit
$19,251
$24,296
Fire Control and Rescue Services
$1,019,866
$781,500
Ocean Rescue / Lifeguards
$468,165
$482,477
PUBLIC WORKS & INFRASTRUCTURE
Public Works - Administration
$760,539
$522,253
City of Atlantic Beach - FY 2026-27 Proposed Budget
Page 4 of 6
Public Works - Streets and Stormwater
Public Works - Building Maintenance
Public Works - Fleet and Equipment
PARKS & RECREAI ION
Parks Maintenance - Operations
Parks Maintenance - Landscaping
Recreation Division
Total General Fund Expenditures
Attachment A to
8-19-26 Minutes
$2,292,345
$1,561,598
$663,043
$698,983
$456,690
$457,990
$2,131,721
$2,199,387
$279,969
$243,487
$627,786
$670,878
$21,956,756
$21,820,934
FINANCIAL BENCHMARKS & STRATEGIC RESERVES
City governance mandates maintaining an unassigned General Fund reserve between 25% (3 months) and 50% (6
months) of total operating expenditures.
General Fund Reserve
$10,000,000
$10,000,000
–46% expenditure coverage (within policy limits)
Sewer Enterprise
$2,499,924
$2,550,000
Lift station resilience and treatment capital upgrades
Reserve
Water Enterprise
Water quality, treatment plant maintenance, system
$1,865,705
$1,920,000
Reserve
securi ty
Capital Projects Fund
$1,002,760
$1,050,000
Citywide multi-year capital improvements
Tree canopy expansion and champion tree
Tree Protection Fund
$617,495
$650,000
stewardship
Better Jacksonville
Legacy capital allocations (sunsetting sales tax
Fund
$484,994
$350,000
source)
Paid Parking Reserve
$330,573
$360,000
Town Center access, lighting, and mobility upgrades
Interlocal Alignment & Revenue Offsets
• COJ Interlocal Agreement: Retained Civic Consulting Group to evaluate service equity regarding the 3.2907 millage
differential deducted by Jacksonville under the 1982/1996 framework.
• FirefRescue Contract Savings: A 2 -year agreement reduced Atlantic Beach's contribution from $1.51M to $750,000.
These non-recurring savings ($750,000) are directed entirely to capital reserves.
• Alternative Revenue Modeling: Evaluating property -based Fire/EMS assessment fees, streetlight assessment
districts, expanded paid parking, and special roadway maintenance assessments.
City of Atlantic Beach — FY 2026-27 Proposed Budget Page 5 of 6
Attachment A to
8-19-26 Minutes
EXTERNAL FUNDING & CAPITAL PROGRAM
Grant and Appropriation -Funded Projects
TIER 2 (50,'0-9%)
Minor Contraction
DESCRIPTIONPROJFCT
•
• 32 -hr flex work schedules • Draw down stabilization reserves
Lift Station Vulnerability Retrofits
$1,400,000
50% Match
Beach Walkovers (1st, 4th, 5th, 11th, 13th, 15th Sts.)
$1,080,000
0% Match
Aquatic Gardens Drainage and Ditch Widening
$1,000,000
0% Match
Stanley Road Area Stonn Sewer System
$650,000
10% Match
Stormwater Master Plan Comprehensive Update
$400,000
25% Match
Aquatic Gardens - Cutlass Drive Culvert
$400,000
10% Match
Marsh Oaks Septic -to -Sewer Transition (Phase 1)
$375,000
0% Match
Dora Drive Stormwater Retention Pond (Design/Build)
$250,000
-5% Match
5th Street Beach Walkover Project
$140,000
$80,000 Match
Sherman Creek Dredging (Howell Park to 11th St.)
$60,000
0% Match
Unfunded Operational Requests
• Complete Streets Projects: Sailfish Drive, Seminole Road, Dutton Island Road.
• Community Grants: Non-profit community organizational grants.
• Infrastructure & Facilities: 16th Street beach walkover construction; Russell Park racquetball court
rehabilitation.
• Fleet Expansion: 2 requested police patrol cars, 2 requested service trucks.
AMENDMENT 3: MULTI -TIERED ADAPTATION ROADMAP & PRIORITIES
iILR 1 (10io-1
TIER 2 (50,'0-9%)
Minor Contraction
Moderate Contraction
• Selective hiring holds
• 32 -hr flex work schedules • Draw down stabilization reserves
Travel and training freeze
• Re -bid external contracts • Defer non -vital capital projects
• Grant shift for capital Items
• Pause non -urgent maintenance • Expanded seasonal staffing model
Priority -Based Budgeting (PBB) Hierarchy
• Tier 1(Core Mandates): Police, Fire, Ocean Rescue, drinking water compliance, wastewater operations, emergency
preparedness.
• Tier 2 (Essential Support): Stormwater maintenance, core facilities, administrative operations, legal compliance.
• Tier 3 (Quality of Life): Recreational programs, community events, aesthetic landscaping, discretionary upgrades.
City of Atlantic Beach — FY 2026-27 Proposed Budget Page 6 of 6
W,ITY OF ATLANTIC BEACH, FLORIDA
Proposed FY 2026-27 Budget
Comprehensive Fiscal Sustainability Strategy & Operational Roadmap
WORKSHOP DATE MILLAGE RATE TOTAL BUDGET
August 19, 2026 2.7499 Mills $56,950,000
Attachment B to
8-19-26 Minutes
Executive Summary
Sustaining high-quality public amenities & essential services.
FY 2026-27 BUDGET OVERVIEW
IV Low Tax Rate Stability
Maintains millage rate at 2.7499 mills — among Florida's lowest municipal rates for full-service cities.
t-_1 Revenue Proactivity
Proactively addresses structural revenue shifts including sunsetting Better Jacksonville Plan sales taxes.
AL Legislative Preparedness
Prepares for state homestead exemption expansions (-$1.08M drop in FY 27-28; -$1.8M drop in FY 28-
29).
Attachment B to
8-19-26 Minutes
FY 2026-27 Adoption Timeline
[n May—lune 2026 Departmental reviews & public/commission input solicited.
Q� June 29 / July 20 First & Second Budget Workshops held.
QAugust 4 / 19 TRIM notice submitted & 3rd Budget Workshop.
,A, Sept 3 / 9 / 14 Revised & final proposals; 1st formal public hearing.
OSept 28, 2026 Final Budget Hearing & official tax rate adoption.
KEY LEGISLATIVE MILESTONES
Attachment B to
8-19-26 Minutes
Strategic Priorities & Wins
1p FY 2025-26 Wins
Enacted tree protection code & converted plant disinfection to safer
alternatives.
I" Deployed Enterprise ERP, Open AB portal, and AB Trees canopy tracking.
ACCOMPLISHMENTS & OUTLOOK
Q FY 2026-27 Priorities
Update Stormwater Master Plan & prioritize public right-of-way drainage.
Enact Old -Growth Champion Tree Ordinance & sea oat dune restoration.
Completed Marsh Oaks Community Center & activated Veterans Memorial Park. � Modernize Town Center lighting, Sherry Dr traffic calming, and LPR deployment.
Attachment B to
8-19-26 Minutes
Workforce & Cost Containment
M Net Position Reductions
Net reduction of 2 FTEs in FY 2026-27 (—$240k savings + benefits), targeting 4
additional attrition FTE reductions by FY 2028-29 (—$450k savings).
® Compensation Moderation
Lowest wage growth rate in a decade using "Greater Of' formula. Base minimum
wage raised to $18.00/hr ($37,440/yr). Staff above $121,680 capped at a 2.0% raise.
OPERATIONAL EFFICIENCY MEASURES
IM Digital Optimization
Enterprise ERP & e -Plan deployment; shifting cost -recovery items to Paid Parking &
Tree Protection Special Funds.
Attachment B to
8-19-26 Minutes
Property Tax Context MILLAGE RATE COMPARISON
Consolidated City of Jacksonville
7.9012
$3,161.32
44.9%
Duval County School Board
6.2550
$2,668.32
37.9%
City of Atlantic Beach
2.7499
$1,100.45
15.6%
St. Johns River Water Management District
0.1793
$89.65
1.3%
Florida Inland Navigation District
0.0270
$13.50
0.2%
Total Combined Taxing Authorities
17.1124
$7,033.24
100.0%
0 Real -World Value Comparison: Atlantic Beach's municipal tax of $1,100.45/yr equates to $91.70/month — equivalent to a standard monthly mobile phone plan.
Attachment B to
8-19-26 Minutes
Comprehensive Budget Summary
General Fund (001)
$21,956,756
$21,820,934
Water Enterprise Fund
$11,808,183
$9,679,128
Sewer Enterprise Fund
$14,009,111
$11,131,888
Stormwater Utility Fund
$3,235,030
$3,340,215
Sanitation Fund
$2,637,572
$2,680,828
Building Code & Other Funds
$3,969,382
$8,297,007
Total Municipal Budget
$57,616,034
$56,950,000
ALL FUNDS COMPARISON
-$135,822
-1.15%
-$2,129,055
-18.03%
-$2,877,223
-20.54%
+$105,185
+3.25%
+543,256
+1.64%
+$4,327,625
+109.0%
-$666,034
-1.16%
Attachment B to
8-19-26 Minutes
General Fund Breakdown ($21.82M)
Public Safety
General Government
$21.82M Public Works
Parks & Recreation
EXPENDITURE DISTRIBUTION
39.3% ($8.57M)
30.6% ($6.68M)
15.6% ($3.40M)
11.8% ($2.57M)
Transfers & Human Services 2.7% ($0.59M)
Attachment B to
8-19-26 Minutes
Reserves
General Fund Reserve — $10,000,000 — $10,000,000
Sewer Enterprise Reserve $2,499,924 $2,550,000
Water Enterprise Reserve $1,865,705 $1,920,000
Capital Projects Reserve $1,002,760 $1,050,000
Tree Protection & Parking Reserves $948,068 $1,010,000
CAPITAL PROTECTION
—46% expenditure coverage (policy: 25%-50%)
Lift station resilience & treatment upgrades
Water quality & plant security
Citywide multi-year capital improvements
Canopy stewardship & Town Center/Complete Streets upgrades
Attachment B to
8-19-26 Minutes
Grant & Capital Program EXTERNAL FUNDING & MATCHING
Lift Station Vulnerability Retrofits $1,400,000 50% Match
Beach Walkovers (1st, 4th, 5th, 11th, 13th, 15th) $1,080,000 0% Match
Aquatic Gardens Drainage & Ditch Widening $1,000,000 0% Match
Stanley Road Area Storm Sewer System $650,000 10% Match
Stormwater Master Plan Comprehensive Update $400,000 25% Match
Marsh Oaks Septic -to -Sewer Transition $375,000 0% Match
Attachment B to
8-19-26 Minutes
Revenue & Exemption Modeling
HOMESTEAD EXEMPTION IMPACT ANALYSIS
$150k Exemption Expansion -$1,060,000
$250k Exemption Expansion -$1,840,000
-4.9%
-8.5%
Full Exemption Repeal Scenario -$4,929,434 -21.2%
Attachment B to
8-19-26 Minutes
Amendment 3 Revenue Contraction Roadmap
Minor Contraction
Selective hiring holds
,-' Travel& training freeze
Moderate Contraction
,,' 32 -hour flex schedules
Re -bid external contracts
TIERED MITIGATION STRATEGY
of 3(10%4)
Severe Contraction
Draw stabilization reserves
,,' Defer non -vital capital projects
Grant shift for capital items -" Pause non -urgent maintenance %,' Seasonal staffing model