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HomeMy WebLinkAbout7.7.2026 City Council Minutes Ciry of Cles nsonr M1N U"I ES CITY COUNCIL BUDGET WORKSHOP July 7, 2026 CALL TO ORDER The City Council met in a budget workshop session on Tuesday, July 7, 2026, in the Clenaont City Council Chambers. Mayor Murry called the workshop to order at 9:00 am with the following Council Members present: Council Members Strange, Bain, Myers and Petersen_ Other City officials present were City Manager Van Wagner, Deputy City Manager Matthys, and City Clerk Howe. Mayor Murry provided the invocation_ AGENDA ITEMS Proposed Fiscal Year 2026-2027 Budget Discussion City Manager Van Wagner outlined the budget workshop schedule,highlighted the city's financial position with approximately $24 million in reserves, and noted that while the operating budget is balanced, some capital projects would require reserve funding. He also emphasized there are no planned employee layofTs and encouraged Council to provide feedback throughout the budget presentations. Finance Director Borrow presented an overview of the proposed fiscal year budget, including the budget adoption timeline, projected revenues, personnel requests, capital improvements, and key financial highlights. He explained that while the proposed General Fund budget reflects a $6.5 million deficit, the City's structural balance policy reduces the ongoing deficit to approximately $1.5 million after excluding one-time revenues and expenditures, which he described as manageable given strong reserves and conservative revenue projections. He also reviewed the proposed rollback milinge rate of 4.36 mills, noting that under new state law any rate above the rollback rate requires a two-thirds vote of the City Council and that each 0.1 mill adjustment changes General Fund revenue by approximately $700,000_ The presentation also highlighted continued double-digit taxable value growth, enterprise fund rate adjustments, proposed staffing additions,and major capital projects_ Council requested a summary distinguishing fiscal year 2026 rollover projects from new fiscal year 2027 expenditures, including their original funding sources, and Finance Director Borrow confirmed that information would be provided_ Finance Director Borrow also reviewed the city's unassigned General Fund balance,explaining that after meeting the City's reserve policy, approximately $23.8 million remains available for future Council priorities, with current fiscal year revenues and expenditures projected to finish near balanced. He recommended assigning a portion of those funds for three future priorities, Emergency Medical Services transport, potential downtown land acquisitions, and a parking garage,through a resolution transferring funds from unassigned to assigned fund balance_ Council discussed the proposal as a means of improving transparency and communicating intended future uses while preserving flexibility for future Councils to amend the designations ifpriorities change. Finance Director Borrow clarified that the City's 25 percent reserve target is an internal financial policy rather than a legal requirement. 1 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 7,2026 Parks and Recreation Parks and Recreation Director Forman provided updates on department operations, highlighting continued revenue growth, increased sponsorships, improved financial performance for City events,and major capital projects,including Meet Us in the Middle®,Hancock Park,Bishop Field, and field improvements. He reported that Meet Us in the Middle® remains active with a future engineering update planned, staff continues coordination to preserve the $1 million Live Well grant, and the Victory Point playground project is on hold due to increased cost estimates of $400,000 to $500,000 while outside funding opportunities are explored. Council discussed potential funding strategies for the playground, including allowing Clermont Main Street to oversee bidding and construction while using a portion of the existing $250,000 budget as seed funding to leverage additional support. Council supported a discussion on the City's parks and recreation vision, including neighborhood park priorities, Community Redevelopment Agency (CRA) involvement in downtown projects, and development of a comprehensive five-year parks plan. Council directed staff to schedule a joint CRA workshop for August 11 at 2:00 p.m. and a Parks and Recreation workshop at 5:30 p.m. to engage stakeholders, discuss priorities, and align future investments with a comprehensive plan. Council also discussed a potential closed session on August 18 at 3:00 p.m.,pending availability of outside counsel. Parks and Recreation Director Forman presented the proposed budget highlights, including a conceptual playground rendering demonstrating the potential scope of a $400,000 to $500,000 investment, funding for a parks master plan, event analytics software, Hancock Park Field fence relocation, Palatlakaha Park irrigation design, and ongoing facility maintenance and capital improvements. He also reported that certain vacant positions will remain unfilled until after the November election pending the outcome of the property tax referendum. Council discussed staffing levels,personnel allocations,and requested clearer financial reporting to better distinguish expenses and revenues among parks, recreation, performing arts, and facility operations. Council also discussed the condition of the Palatlakaha Park ballfields and directed staff to pursue potential funding opportunities through the LiveWell Foundation and Lake County,recognizing the regional use of the facilities by South Lake County youth. Additional discussion included continued maintenance needs at the Veterans Memorial stage and Bishop Field projects. Assistant Director of Public Services Maiworm presented proposed investments to improve community connectivity through sidewalks, trails, and multimodal transportation, including additional funding for neighborhood sidewalk projects and collaboration with a local cycling advocacy group to identify priority improvements. Council supported the initiative, emphasizing safer connections to schools,parks, and neighborhoods, and encouraged staff to pursue grants and partnerships, including exploring the creation of a Community Foundation fund to accept private donations that could leverage additional grant funding for connectivity projects. Council also discussed the potential impact of recent state legislation on special events and was advised that current city events are not expected to be affected, while noting the need to review the organizational structure for parks-related funds and functions before the next budget cycle. 2 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 7,2026 Police Department Police Chief Graczyk highlighted the department's eighth consecutive reaccreditation, implementation of agency-wide crisis intervention training, deployment of new Axon body cameras with translation capabilities, expansion of a-bike patrols, enhanced community engagement programs, completion of the department's strategic plan, and acquisition of vehicle barrier systems through a state partnership at no cost to taxpayers. Police Captain Corbett also discussed the significant increase in public records requests, noting that the Police Department receives more requests than any other City department and continues to experience year-over-year growth,particularly for body camera footage, creating additional workload for staff.The proposed budget includes two additional police officers, one Community Service Officer to support fraud investigations, a records specialist to address the increase in complex public records requests, and a shared communications coordinator to support the Police, Fire, and Parks and Recreation departments. Chief Graczyk also discussed capital needs, including vehicle replacements, facility improvements,and future public safety infrastructure,with a focus on addressing the aging vehicle fleet, exploring alternative funding sources, and reviewing vehicle replacement criteria based on mileage and use. Council discussed Police Department policies, public records processes, and the impact of increasing records requests on staff resources. Discussion focused on ensuring department policies align with the City's mission, strategic plan, and budget priorities, with a need to review existing policies and determine any updates needed.Council also discussed the continued increase in public records requests,particularly body camera footage,the time and resources required for review and redaction, and the importance of balancing transparency with responsible use of taxpayer-funded resources. Direction was provided to City Attorney Waugh and Police Chief Graczyk to develop a policy addressing public records requests, while continuing to explore technology solutions, improved processes, and potential policy updates to better manage requests and maintain compliance with state law. Council also requested clarification regarding impact fee revenue differences between Police, Fire, and Parks and Recreation funds. Mayor Murry recessed the workshop at 11:38am. Mayor Murry reconvened the workshop at 1:00pm. Finance Director Borror provided follow-up clarification on topics discussed earlier in the workshop, including impact fee calculations, which differ among Police, Fire, and Parks based on factors such as commercial applicability, square footage, and number of bedrooms. He also noted that future Councils may amend fund balance resolutions as needed and reported that approximately $10,000 in anticipated General Fund revenue has been generated from public records requests this year. Mayor Murry opened public comment. 3 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 7,2026 Dani Page, Tuscany Ridge—questioned the need for additional positions, the replacement of the armored vehicle, facility expansion, and take-home vehicle use. She suggested exploring cost- effective alternatives and requested additional justification for proposed expenditures. She also supported public records software improvements and proactive release of frequently requested body-worn camera footage to enhance transparency and reduce workload. Mayor Murry closed public comment. Police Chief Graczyk stated he would compile information to address the questions raised, including vehicle usage,take-home vehicle policies,and other department requests. It was clarified that replacement vehicle numbers were based on mileage and operational needs, and that take- home vehicles are limited by residency distance requirements and department policy. Discussion included GPS tracking,fuel mileage reporting,and insurance considerations.The Chief also noted that the armored vehicle has been used for several incidents, including a homicide, service calls, and hurricane response, and agreed to provide usage data. Fire Department Fire Chief Ezell provided an overview of operations, budget priorities, and future planning, highlighting increased call volumes, continued maintenance of the ISO Class I rating, accreditation efforts, staffing updates, recruitment initiatives, department accomplishments, and the proposed addition of an administrative assistant position to support growing operational demands. He reviewed progress on Fire Station 5, planning for Fire Station 6, Fire Station 2 renovations, future Fire Station 3 design services, training facility improvements, Emergency Medical Services (EMS) transport planning, firefighter safety initiatives, technology enhancements, apparatus and equipment replacement needs,and potential workforce development partnerships. Council discussed opportunities for Police coordination at the public safety training facility, replacement options for the fire boat, and the potential renovation of the waterfront Fire/Police facility, including possible shared use with Police and Parks and Recreation. Council also discussed the value of the waterfront location for emergency water rescue operations and alternatives related to dock and facility improvements. Council discussed the importance of long-term capital planning for fire facilities, including establishing recurring funding for future renovations and evaluating options to reduce reliance on debt financing. Fire Chief Ezell reviewed proposed capital investments, including training and rescue equipment, reserve apparatus outfitting, and a multi-role specialty support apparatus to maintain emergency response capabilities. Council directed staff to provide clearer budget information separating one-time capital expenditures from ongoing operational costs to better communicate the budget impacts to the public. Staff clarified that EMS transport funding included in FY 2027 was previously identified funding and does not represent new General Fund expenditures. Council expressed support for continued EMS and quick response unit planning and directed staff to further evaluate options for improving response times, particularly in growing areas, while providing a cost-effective approach to future service delivery and station planning. 4 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 7, 2026 Mayor Murry recessed the workshop at 2:33pm. Mayor Murry reconvened the workshop at 2:43pm. Public Services Assistant Public Works Directors Maiworm and Griffin provided an overview of operations, highlighting completion of the wastewater treatment plant expansion, acquisition of property off Old Highway 50 for alternative water storage through state appropriations,continued road and pier improvements, hurricane resiliency efforts, and a state funded program covering eligible clean sanitation vehicle replacements. They reported that three additional clam trucks will increase hurricane cleanup capacity, reviewed impact fee implementation, and noted pending approval of approximately $15 million in state funding assistance structured as a loan with grant forgiveness. Budget priorities included additional staffing for fleet, sanitation, and utilities, future transfer station planning, and capital needs such as roads, sidewalks,trails,vehicles, and facility repairs. It was clarified that most projects would be supported through enterprise funds or restricted funding sources rather than the General Fund. Council discussed long term capital planning, future water treatment needs for the southern service area, estimated at $30 to $40 million, and the importance of balancing growth, infrastructure investment, and affordable utility rates. Council was advised that the utility rate study will help evaluate funding strategies, including grants, impact fees,rates, and debt financing. Council discussed the potential development of a city owned transfer station to improve operational reliability, control future costs, and reduce dependence on outside facilities. Staff explained that the concept remains under evaluation, with potential locations, design options, costs, and operational efficiencies to be further analyzed. Council also reviewed recycling costs, processes, and public concerns, with Assistant Public Works Director Maiworm clarifying that recyclables are transported to a municipal sorting facility in Orlando and that the city budgets approximately$700,000 annually for recycling services. Council requested additional information on recycling outcomes and potential efficiencies. During Water and Sewer Enterprise Fund discussions, Council directed staff to identify meaningful cost savings opportunities rather than specific line-item reductions and requested that the utility rate study consultant incorporate Council's goal of reducing utility costs while planning for future debt obligations and infrastructure needs. Council Member Myers left the workshop at 3:37pm. Council also discussed irrigation rates, conservation practices, and utility affordability. Regarding the Joint Planning Area (JPA), it was clarified that the JPA does not require the city to provide utility service solely because capacity exists;capacity letters confirm the ability to serve,but actual utility agreements require City Council approval. Council requested additional legal clarification regarding JPA requirements, utility service authority, and potential impacts from state legislation that may limit municipal authority related to utility service and rates outside city boundaries. 5 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 7, 2026 Mayor Murry announced that Congressman Daniel Webster would visit City Hall on Wednesday, July 8, at 8:30 a.m., and invited Council Members to attend. City Manager Van Wagner reminded Council that the budget workshop would begin at 9:00 a.m. on July 8, starting with the Economic Development Department. 6 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 7,2026 ADJOURN: With no further comments,this budget workshop adjourned at 3:59 pm. i' APPROVED: Tim Murry, Mayor ATTES Tracy Ackroyd Howe, MMC City Clerk 7