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CASSELBERRY CITY COMMISSION Minutes of Judy 15, 2024 — Budget workshop Page 2 of 3 4. REVIEW AND DISCUSS PROPOSED BUDGET FOR FISCAL YEAR 2025 Presentation: City Manager Randy Newlon gave a PowerPoint presentation covering in detail the projected revenues and proposed expenditures for the Fiscal Year 2025 City Budget including revenue and expenditure comparisons, personnel related matters, debt service, and proposed capital improvements program projects. The total proposed budget for Fiscal Year 2025 is $75,424,300, representing an overall increase of approximately $4,533,293 or 6.39% from the adopted budget for FY 2024 of $70,891,007. Debt service is proposed to be $6,510,029, an 8.63% decrease. The proposed budget includes an approximate 4% increase in salaries effective October 1, 2024 which would apply to all general employees, directors, and the City Manager, but would not apply to the City Commission. Sworn officers would receive a 4% increase at the same time in accordance with the Police Union contract. Total staffing was increased from 232 to 233, which included 226 full-time and 7 part-time employees. The City Manager requested that the millage rate be set at 2.9000 mills for FY 2025. He stated that there would also be a separate voted debt millage rate (voted debt service) of 0.6633 mills for FY 2025 that would need to be set by the City Commission, which was associated with the issuance of the voter approved General Obligation Bonds to renovate, improve and construct parks and recreation facilities. Mr. Newlon and the City Commission expressed appreciation to Finance Department staff for their preparation of the proposed budget and to all other City staff for their input. Discussion: Discussion ensued regarding various aspects of the proposed budget and related subjects, including: increases in property values and the City's tax base; inflation and its impacts on the current budget and the proposed FY25 budget; potential decrease in Local Option Gas Tax revenues and slight increases in Telecommunications and Public Service Tax revenues; comparisons of millage with surrounding cities; contingency reserves; feasibility of budgeting for a new Public Information Manager position; increases in water and sewer rates; need for continued investment in the water and sewer utility and desire not to deplete funding available for needed improvements; potential need for a new utility rate study due to inflation; ongoing capital improvements; feasibility of an increased surcharge for utility customers outside City limits; potential need to add a budget line item for continued improvements to and maintenance of Brightwater and the need to schedule a workshop on the issue prior to the September public hearings; and the proposed voted debt millage rate and options for the FY 2025 proposed millage rate. Each ofthe Commissioners expressed a comfort level with the City's financial status and its ability to withstand the challenges of the current economy and to move past some potentially lean years towards even greater stability as projected over the next ten years; and also support for setting the millage rate for Fiscal Year 2025 at the rate of 2.9000 mills and the voted debt millage rate at 0.6633 mills. CONSENSUS: City Commission consensus was to set the tentative millage rate at 2.9000 mills and the voted debt millage rate at 0.6633 mills. The City Commission will set the tentative millage rate at the July 22, 2024 regular meeting. Once the tentative millage rate is set, the City Commission may reduce the millage rate at the public hearings but cannot exceed the tentative millage rate set at the July 22, 2024 meeting. The first public hearing for the millage rate and budget for Fiscal Year 2025 is scheduled for September 9, 2024. The final public hearing and adoption of the millage rate and budget for Fiscal Year 2025 is scheduled for September 23, 2024.