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HomeMy WebLinkAbout7.8.2026 City Council Minutes City of Clermont MIIlIL7TES CITY COiJNCIL BUDGET WORKSHOP July 8,2026 CALL TO ORDER The City Council met in a budget workshop session on Wednesday,July 8, 2026, in the Clermont City Council Chambers_ Mayor Murry called the workshop to order nt 9c04nr 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. City Manager VanWagner provided the invocation. AGENDA ITEMS Proposed Fiscal Y¢sr 2026-2027 Budget Discussion City Manager Van Wagner stated that the workshop would continue with the review of the remaining departmental budgets following the previous day's discussions_ He announced that Economic Development Director Norris had also been appointed to serve as the city's Community Redevelopment Agency (CRA) Director and then turned the presentation over to Economic Development Director Norris to begin the department's budget overview_ Economic Development Economic Development Director Norris presented the department's proposed budget, which includes funding for personnel and operating expenses_ He higbligbted the department's focus on implementing the Comprehensive Plan and Form-Based Code, engaging stakeholders, and advancing a Development Design Center to provide conceptual planning and design assistance that encourages high-quality development and supports informed decision making_ He also explained that the budget includes consulting services, including $160,000 for design assistance through the Development Design Center,as well as ongoing consulting costs such as the Wellness Way consultant, which supports planning and coordination efforts in the Wellness Way area, and the city's legislative lobbying services. No capital projects were requested for the upcoming fiscal year. Council requested actual prior-year expenditure data for comparison and raised concerns about the value of the Wellness Way consultant contract, including whether funds could be redirected to support the proposed Development Design Center_ Discussion also included establishing Economic Development as a standalone department rather than within the City Manager's Office. It was clarified that the department designation does not change reporting relationships, as all directors continue to report directly to the City Manager_ Economic Development Director Norris explained that the consultant funding includes multiple agreements, some partially reimbursed by Lake County, and is not solely dedicated to Wellness Way. 1 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8,2026 He also noted that the proposed budget reflects the elimination of the Urban Designer position, reducing the department from two full-time employees to one, and that year-to-year comparisons are difficult because Economic Development was previously included in the City Manager's budget,with some expenses absorbed by other departments due to the lack of a standalone budget. Council discussed the distinction between Economic Development and Community Development, with Economic Development Director Norris emphasizing that Clermont's focus is on long-term economic sustainability through supporting entrepreneurship, diversifying the economy, redevelopment opportunities, and preserving Clermont's quality of life. Council questioned the shift from an Urban Designer position to consulting services,and Economic Development Director Norris explained that the change followed the employee's departure and was intended to provide specialized expertise and cost-effectiveness while allowing staff to focus on other responsibilities. Council also discussed participation in LEAD and Lakel00, questioning the value of the city's $2,500 annual contribution to LEAD and noted that the city does not participate in Lakel00. Council expressed a desire for stronger results in attracting and supporting small businesses, increased community engagement, and a more defined economic development strategy. Council Member Strange suggested creating a strategic planning committee of local business leaders to provide input on economic development initiatives,and Council discussed incorporating economic development priorities, community outreach, and development of a long-term economic development strategy into the City Manager's annual evaluation and goals. Valerie Schuett, 931 W. Montrose Street—expressed strong support for a design center, stating it would inspire unique small businesses, help educate the community on quality development and design,reduce missed opportunities, and emphasized that small business ownership should not be equated with low income. Council Member Bain asked about the CRA budget process now that the Economic Development Director is serving as CRA Director. City Manager Van Wagner explained that the CRA budget is typically adopted in September but plans to bring it forward in August for a workshop discussion before formal adoption the following month. Development Services Development Services Director Henschel provided an overview of the Planning and Development Services Department, highlighting the annexation of more than 561 acres, ongoing work on the Form-Based Code, Comprehensive Plan, and Downtown Master Plan, and continued code enforcement efforts,which resulted in more than$73,000 in fines and liens while emphasizing the goal of achieving compliance rather than revenue generation. The department currently consists of nine full-time employees, including planning and code enforcement staff, and is proposing the reclassification of a City Engineer position to improve project efficiency and streamline development review.No capital projects are proposed for the department this year, and the budget includes carryover funding for the Comprehensive Plan, with actual expenditures expected to be lower. 2 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8, 2026 Council discussed the City Engineer position and the continued use of engineering consulting services. Deputy City Manager Matthys explained that the position was reclassified from a vacant Public Services position and moved under Development Services to allow Public Services to focus on infrastructure projects while Development Services handles development review. He noted that continuing engineering services will still be needed for specialized expertise, such as stormwater review, but the need for outside services will be reduced once a City Engineer is hired. Council also questioned the increase in operating expenses, and Development Services Director Henschel clarified that the increase is primarily due to remaining Comprehensive Plan and Form-Based Code project funding, which is a carryover expense and is expected to decrease once those projects are completed. Council requested an update on the anticipated timeline for bringing the Form-Based Code and Comprehensive Plan forward to the Planning and Zoning Commission and City Council. Development Services Director Henschel explained that both projects are progressing, with preliminary drafts being reviewed and comments provided to the consultant team. Deputy City Manager Matthys stated the current expectation is to begin hearings in the fall, likely around September or October, with the final contract deadline in November. Economic Development Director Norris noted that the Form-Based Code team is working to expedite the Northwest Quadrant portion by bringing forward an overlay version of the code in August, allowing developers the option to use the new standards while staff continue developing user-friendly graphics and mapping. A draft Comprehensive Plan is anticipated to be available for review in early September. Council also requested adequate time to review and provide input on the documents before any formal action is taken. Deputy City Manager Matthys stated that staff would be open to scheduling a workshop prior to a meeting to allow for additional discussion and review. City Manager Van Wagner encouraged Council members to meet with Economic Development Director Norris and provide feedback throughout the process to ensure concerns and recommendations are addressed before final drafts are presented for approval. Council discussed the Building Services Department, noting that revenues remain strong and operating expenses are projected to decrease due to efficiencies and reduced reliance on contracted services. Building Official McNulty explained that the department oversees permitting, plan review, inspections, and certificates of occupancy for new construction, renovations, and additions, ensuring compliance with the Florida Building Code. He noted the department's goal is to issue residential permits in less than seven days and commercial permits in approximately 20 days, while continuing to improve efficiency. Deputy City Manager Matthys highlighted that Clermont has become one of the fastest permitting jurisdictions in Central Florida, resulting in developers returning from private providers to use the City's permitting services,increasing permit revenue. Mayor Murry requested an update on development activity at 741 Pitt Street after observing site clearing and questioning whether the project had previously been denied. Development Services Director Henschel agreed to investigate the property's approval status and provide an update. 3 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8, 2026 Mayor Murry recessed the workshop at 10:29am. Mayor Murry reconvened the workshop at 10:36am. Procurement Services Procurement Manager Jimenez provided an overview of the Procurement Department, highlighting continued operational efficiency,recent updates to procurement and purchasing card procedures, achievement of national procurement recognition, and the department's management of the City's solicitations and contracts. The proposed budget includes no new positions, capital projects, or significant changes to operating expenses. Council discussed procurement staffing, confirming there are no new positions proposed and that the department continues to operate with four employees. Discussion also focused on the city's use of OpenGov to improve procurement processes and vendor notifications,with Council expressing support for expanding its use and consolidating software across departments to improve efficiency and reduce costs. Procurement Manager Jimenez also noted that the city promotes procurement opportunities to local businesses through the city's website, social media, and partnerships with the Chamber of Commerce to encourage greater local participation. City Clerk City Clerk Howe provided an update on the City Clerk's Office,highlighting records management accomplishments and increased service demands. The office disposed of 1,007 cubic feet of records meeting retention requirements, scanned 464,000 records into Laserfiche, and now maintains over 3.5 million digital images. Service demands increased, including a 25 percent increase in lien requests, 40 percent increase in cemetery sales, and 102 percent increase in public records requests since October 1, 2025. The department is not requesting additional staff and will focus on technology improvements, including Laserfiche Cloud and enhanced public records workflows. Council discussed future public records challenges and solutions to improve efficiency and manage increasing request volumes. Records Administrator Wilson highlighted upcoming Just FOIA enhancements, including automatic routing of Police Department requests, improved request forms, and AI-assisted redaction tools. It was noted that while AI will help streamline the review process,human oversight will still be required to ensure accuracy.The Just FOIA upgrades, estimated at approximately $6,000, are expected to improve processing efficiency but are not expected to eliminate the need for additional staff and are included in the proposed budget. Council discussed increased cemetery sales, future capacity, and the long-term sustainability of operating a municipal cemetery. City Clerk Howe reported approximately 375 remaining in- ground spaces, with an additional 700 spaces available through the fourth addition, estimating capacity for approximately 8 more years. Council discussed the need to evaluate future land acquisition,cemetery fees,and whether the city should continue operating the cemetery or explore alternative options. 4 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8,2026 Council expressed interest in learning industry best practices, including sustainability, pricing, expansion options, and potential use of consultants through a workshop to discuss the city's long- term cemetery strategy and options moving forward. Council discussed opportunities to improve public access to City information through agenda notifications and the publication of legal notices. Staff were directed to research whether agenda notification features can be activated through the city's agenda software and identify any associated costs. Council also discussed the potential benefits of publishing legal notices in the Clermont Sun to increase local outreach and potentially reduce costs, while City Clerk Howe explained that the city's 14-day notice requirement and publication deadlines have made that option difficult to implement consistently. Council expressed interest in exploring possible ordinance changes, evaluating publication requirements, and pursuing future legislative changes to allow municipalities greater flexibility in using digital platforms for legal notices. Staff will continue reviewing options and report back with any recommendations. Human Resources Human Resources Director Ohlinger highlighted the department's support for 528 authorized positions and 471 active employees. Since October 1, 2025, Human Resources has recruited and onboarded 92 new hires, a 25 percent increase over the previous year, supporting departmental reorganizations, and implementing new medical, dental, and pharmacy benefit programs. The department recently filled the long-vacant Human Resources and Benefits Manager position and reclassified the Benefits Coordinator position to a Benefits and Risk Coordinator to expand responsibilities for workers' compensation, liability, property, and auto claims. The proposed budget reflects a 9.8 percent increase,primarily driven by personnel costs. Council discussed the status of employee health insurance costs and budget assumptions. Human Resources Director Ohlinger explained that the city's self-funded health plan is still being evaluated, with only five months of claims data available and stop-loss insurance quotes expected in August, with updated projections anticipated to return to Council in September. The current budget includes a 7 percent insurance cost increase,although Council questioned whether a higher estimate would be more conservative based on the prior year's 9 percent increase. Human Resources Director Ohlinger noted that the health plan has performed better than projected, with five-year claims trends averaging approximately 3.5 percent growth and reserves exceeding the state-recommended target and discussed a potential one-month premium holiday to reduce reserves. She also noted that 11 additional firefighters are expected to join the plan in August, which could impact future claims. Council Member Strange spoke about the significant amount budgeted for insurance and the potential savings from exploring alternative healthcare models, including direct primary care or locally based healthcare options paired with catastrophic coverage. City Manager Van Wagner advised that they have been researching alternatives, engaging consultants,hospitals, and other resources,but have not yet identified a viable replacement option. Council requested continued exploration and a comparison of potential alternatives, including costs,benefits, and impacts on employees and the city. 5 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8,2026 Mayor Murry recessed the workshop at 11:59pm. Mayor Murry reconvened the workshop at 1:00pm. Communications Department Deputy City Manager Matthys presented the newly established Communications Department, which was approved by Council on June 23, 2026. The department will consist of four positions, with two positions being reclassifications of existing roles and two being new positions. The proposed structure includes a Communications & Engagement Director, Digital Content & Multimedia Manager, Community Engagement Coordinator, and the 311 Center Supervisor, which will be moved under the Communications Department through the reclassification of a vacant position. The existing Public Information Officer position will be eliminated,with funding redirected toward the new communications structure. The department does not include any capital requests,with most of the budget consisting of personnel-related costs. Council discussed the proposed Communications Department budget, including software needs, staffing, and personnel cost allocations. Deputy City Manager Matthys explained that recommended communication software and engagement tools identified by True North Marketing were included in the operating budget. Council questioned the personnel budget amounts and the distinction between authorized positions, Full-Time Employees (FTEs), and currently filled positions. Deputy City Manager Matthys clarified that the Communications & Engagement Director and Digital Content&Multimedia Manager positions are being recruited,the Community Engagement Coordinator position will be evaluated before being filled, and the 311 Center Supervisor will be reclassified from an existing vacant position. Council Member Strange emphasized the importance of being mindful of increased personnel costs when creating new departments and requested that future budget documents clearly show how positions are funded across the General Fund and enterprise funds.Finance Director Borror agreed to provide additional detail and clarification on personnel allocations. Council spoke about the proposed 311 Center as part of the Communications Department budget, including its purpose, staffing model, future growth, and funding impacts. Deputy City Manager Matthys explained that the 311 Center would provide a centralized customer service resource where residents could call, email, or visit one location for assistance without needing to know which department handles their request.The program will begin as a pilot using existing staff from Utility Billing, Public Services, and Permitting, with cross-training, shared resources, and future technology enhancements to improve response times and consistency. It was clarified that the 311 Supervisor position is a reclassification of an existing vacant position and that no additional staffing costs are included during the pilot phase. Council Member Strange requested a clearer long-term plan outlining anticipated staffing needs, future costs, space requirements, and potential expansion. She emphasized the importance of understanding the full financial impact of creating a new department and requested clearer budget information showing position reallocations and funding sources. 6 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8,2026 Development Liaison Ertel clarified that there is no planned multi-million-dollar expansion associated with the current proposal and that the intent is to start with a low-cost approach using existing resources. Council Member Strange asked staff to provide a more complete overview of the 311 Center structure, long-term vision, anticipated staffing, and future budget impacts, and to ensure future budget documents clearly identify all positions and funding allocations. It was noted that the two Communications Department positions,Communications&Engagement Director and Digital Content& Multimedia Manager, are expected to be filled within the next 30-60 days. City Manager Deputy City Manager Matthys presented the proposed budget for the City Manager's Office,noting a reduction in staffing with no new positions requested. He stated that the budget is otherwise straightforward and invited Council to ask any questions. Mayor Murry opened public comments. J. Bryan, resident— thanked the Council for allowing public comment during the workshop and encouraged the city to consider using private-sector firms, particularly local businesses, for communications and content creation services. He stated that contracting these services could reduce costs while still meeting the City's communications goals. Mayor Murry clarified that the city had already completed a procurement process for communications consulting services, which resulted in hiring True North to conduct a communications assessment. Mr. Bryan acknowledged he had not been aware of that process and explained his comments were intended to encourage outsourcing future content creation positions, while Council noted the proposed positions were based on True North's recommendations. Valerie Schuett, Montrose Street - clarified that the proposed communications positions are different from the services that were previously solicited through the City's procurement process. Council discussed the potential for utilizing contracted services for certain communications functions, particularly digital content creation, to provide access to a broader range of expertise and potentially increase flexibility. Council expressed support in hiring the Communications and Engagement Director position first, allowing the Director to help determine the appropriate structure and staffing needs for the department, including whether additional services should be handled internally or through contracted providers. Council discussed a salary increase and noted that no adjustment was included in the proposed budget due to a lack of direction to do so. They spoke about potential options, including a smaller increase than the amount originally requested, but clarified that any change to Council compensation would require additional action through the appropriate ordinance process rather than being included solely as a budget item. 7 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8,2026 City Manager Van Wagner discussed the importance of allowing Council travel and training funds to be used for purposes beyond traditional conferences, such as legislative advocacy and other opportunities that benefit the city. Council discussed the need for a formal policy outlining appropriate uses, approval processes, and allocation of travel and training funds. Mayor Murry requested that City Manager Van Wagner consult with City Attorney Waugh regarding the legal considerations and requirements for establishing guidelines or a policy on the use of these funds. IT Department IT Director Fountain presented the Information Technology department budget, highlighting efforts to improve efficiency, enhance cybersecurity, and evaluate citywide software systems to reduce duplication and eliminate unnecessary products. He reviewed major accomplishments, including the transition to Microsoft 365,modernization of the phone system,third-party security audits, and consolidation of access control systems. IT Director Fountain noted that IT has supported significant city growth with minimal staffing increases and requested one additional position combining audiovisual support and desktop support needs. He also discussed the use of consultants for specialized services, ongoing fiber infrastructure projects, and explained that budget increases are primarily related to contractual services, technology costs, and rising equipment prices. Council Member Bain discussed the need to upgrade the audio system in the Council Chambers due to ongoing concerns regarding sound quality from residents and meeting participants. He requested moving funding for the project from Fiscal Year 2028 to Fiscal Year 2027 to improve accessibility, transparency, and experience for both in-person and virtual attendees. IT Director Fountain explained that the project had been deferred due to budget considerations but stated he was willing to revisit the timing if directed by Council. The discussion also included potential solutions to improve accessibility for individuals with hearing impairments. Council discussed the ongoing software audit and asked whether any anticipated savings had been incorporated into the proposed budget. IT Director Fountain explained that the audit is still in its early stages and that no projected savings have been reflected at this time. In addition to reviewing software, staff are establishing a governance committee to evaluate technology needs and purchasing decisions. He estimated that a preliminary summary of the audit findings could be provided within 60 days,and Council reached a consensus to receive an update in early September to help inform future budget discussions. Council also discussed the proposed Council Chambers technology and audio upgrades, asking whether the project could conflict with the software audit. IT Director Fountain advised that the improvements are primarily hardware enhancements that would modernize the aging chambers,improve functionality and acoustics,and remain compatible with future technology needs. Council expressed consensus to move forward with the Council Chambers project as proposed. Mayor Murry asked whether Council wished to discuss the Legal Department budget and noted that City Attorney Waugh was not present. City Manager Van Wagner advised that there were no changes or discussion items related to the Legal Department budget. 8 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8, 2026 Mayor Murry recessed the workshop at 2:58pm. Mayor Murry reconvened the workshop at 3:08pm. Police Chief Graczyk stated that the replacement of 18 police vehicles totaling approximately$1.4 million includes 15 marked and three unmarked spare vehicles that have exceeded their intended service life and are experiencing significant mechanical,electrical,and equipment issues.He noted that patrol vehicles accumulate substantial idle hours, which contribute to wear beyond recorded mileage, and emphasized that repairs are made when cost-effective,but replacing vehicles is more economical once repair costs outweigh their value. Council discussed the department's vehicle replacement schedule, with staff explaining that the City follows a planned seven-year fleet rotation while also considering mileage and overall condition. Vehicles are evaluated in coordination with Public Works and City mechanics to determine which should be surplused each year, allowing newer vehicles to move into the spare fleet. Council Member Strange clarified that the increased Police Department budget reflects a change in funding source, as vehicle replacements are now budgeted within the Police Department rather than the infrastructure fund, providing a more accurate representation of departmental expenses. Police Chief Graczyk provided an update on the armored rescue vehicle(MRAP), explaining that the vehicle is a multi-purpose asset used for high-water rescues, emergency response, and high- risk incidents. Staff noted it has been deployed 23 times since 2023 and,while not frequently used, provides critical capabilities during dangerous situations and regional emergencies. Council discussed the vehicle's age and maintenance needs,and staff advised they continue to pursue grant opportunities and funding sources for a future replacement while including the item in the budget for planning purposes. Police Chief Graczyk provided an overview of the proposed$155,000 police department remodel, noting that additional workspace will eventually be necessary at headquarters. He stated that while the remodel is needed, he would understand if it were deferred and emphasized that the priority should be ensuring adequate funding for Station 5 and a future southern substation to support growth in the Wellness Way area. Finance Department Finance Director Borror provided an update on the Finance Department's accomplishments, current operations, and proposed budget initiatives. He highlighted continued policy updates, including an upcoming utility billing and collections policy tied to the rate study, maintaining the City's GFOA Distinguished Budget Presentation and Audit Awards as well as achieving the "Triple Crown", creating a condensed budgeting brief for residents, improvements to utility billing, the transition to resident access with autopay, completion of the banking transition, and implementation of a tiered job classification model to support employee retention. The Finance Department currently has 19.5 full-time employees and is requesting 1.5 additional positions for a total of 21 full-time employees. 9 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8,2026 He reviewed department workload, including more than 16,000 accounts payable to transactions annually,over 42,000 utility billing calls,and continued growth in water and sewer customers. He also discussed proposed budget initiatives, including software enhancements such as accounts payable automation and an Al assistant to support future customer service and 311 efforts, as well as the consolidation of citywide financial expenditures within the Finance Department. The additional positions requested include a part-time utility billing position to support the customer service center pilot program and a finance position focused on accounting support, compliance reporting,performance management, and enhanced financial analysis. Council Member Strange asked about the "Triple Crown" designation, and Finance Director Borror explained that it refers to achieving three GFOA recognitions: the Distinguished Audit Award, the Popular Annual Financial Report Award, and the Distinguished Budget Presentation Award. He noted that the City has achieved the first award,recently submitted for the second, and is working toward the third, which would demonstrate excellence in financial transparency and reporting. Borror explained that a citywide strategic plan would strengthen the City's ability to achieve the budget award by connecting Council priorities and performance measures to the budget process. Council discussed the importance of developing strategic goals aligned with the City's comprehensive planning efforts, and City Manager Van Wagner stated he would work with staff to develop a plan and return to Council either individually or through a future workshop. Finance Director Borror reviewed the Finance Division's fiscal summary, noting that the department does not have significant capital expenses,such as vehicles or equipment.He explained that the projected 28 percent increase in operating costs within the General Fund is primarily due to the addition of two software modules and the consolidation of certain citywide operating expenses into the Finance Department, with corresponding reductions in other departments. He also noted that the 10.4 percent increase in personnel costs is directly related to the proposed additional positions. Council discussed the overall Fiscal Year 2027 budget, millage rate, and next steps for budget adjustments. Council members expressed that the city is in a strong financial position but emphasized the importance of fiscal responsibility and evaluating opportunities to reduce the proposed millage rate. After discussion regarding the proposed 4.36 mills and the impact of reducing the rate, Council reached consensus to establish 4.29 mills as the maximum millage rate for the upcoming budget process, while allowing staff to identify potential reductions and return with options before final budget adoption.Discussion included clarification of the reported budget deficit, including the difference between the $6.5 million projected deficit and the approximately $1.5 million structural deficit after accounting for one-time items and carryover projects. Council requested additional information separating ongoing operational costs from carryover funds and asked staff to prepare a revised budget scenario at 4.29 mills with recommended reductions. Finance Director Borror informed Council of the new state requirement to prepare and publicly present a 10 percent budget reduction exercise and will seek clarification from City Attorney Waugh regarding the requirements and timing. 10 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 8, 2026 Council emphasized the need for a plan regarding unrestricted fund balances, capital projects, and communicating how available funds will be utilized. Staff will work to evaluate potential reductions and return with recommendations, including discussion of the 10 percent reduction exercise and if it needs to be done at a workshop. ADJOURN: With no further comments, this budget workshop adjourned at 4:20 pm. A r 0 s APPROVED: Tim Murry, Ma r ATTEST: Tracy Ackroyd Howe, MMC City Clerk 11