A primary topic of discussion was the proposed fiscal year 2027 budget. The council was presented with a total proposed budget nearing $46 million, with a portion expected to be funded by grants and shared revenues from state and county sources. The proposed millage rate of 1.6150 mills, which has been consistent for the past decade, was highlighted as being 66% higher than the rollback rate. This adjustment translates to an approximate $4 increase for homesteaded properties and about $7 for non-homesteaded residential properties. The budget also anticipates a general revenue fund balance increase of $133,000, which would allow the city to avoid drawing from reserves. Council members were urged to consider the implications of these financial decisions, particularly the impact of adopting the rollback rate, which could result in a loss of $94,000 in revenues for the city and $34,000 for the Community Redevelopment Agency districts.

Attention then turned to the infrastructure, with a concern regarding the seawall on One Harbor Boulevard. The seawall was described as unusable, prompting discussions about directing funds from other projects, such as the main street beautification project, toward its repair. The estimated cost for seawall repairs was cited at approximately $3.5 million, including a multi-use path under the bridge, though exact figures for just the seawall were unclear. The potential requirement to dip into the general fund balance was acknowledged, as this project could represent a financial commitment for the city.

The council also examined the city’s fleet management, considering whether to defer the replacement of a 2020 Chevy Silverado. It was generally agreed that the vehicle could remain in service for another year based on the typical replacement schedule for vehicles aged between eight and eleven years. The discussion expanded to the broader vehicle fleet, noting that the city maintains around 30 to 40 vehicles, with plans to replace nine based primarily on age rather than condition.

Another discussion point was the revenue generated by the code department, which reportedly exceeded its costs by approximately $1 million, largely due to a newly implemented short-term rental registration fee. This revenue, primarily from condominium registrations, has been allocated towards public safety expenses, including compliance costs and law enforcement contracts.

The meeting also addressed the funding of fireworks and holiday decorations. One council member proposed increasing the current allocation for fireworks. The current budget includes $53,000 for security, permits, and fireworks, with security costs at about $3,000. The possibility of using drones during events was also introduced, encouraging an open-minded approach to future event planning. Concerns about past decisions regarding holiday lighting budgets were raised, emphasizing the need for timely decision-making to avoid logistical challenges as the holiday season approaches.

Traffic concerns related to the cross-town connector project were discussed, with a particular focus on the need to extend the left turn lane from Airport to Commons. The current lane can accommodate only six vehicles, a capacity deemed inadequate given anticipated traffic increases due to the connector. There was also a call to reassess traffic light timing at the intersection to better handle future traffic volumes.

Discussions continued regarding the lighting situation along Harbor Boulevard and Highway 98, where frustrations were expressed about inconsistent lighting policies compared to neighboring areas. The council also inquired about the potential use of existing services at the Harbor Tide restaurant to facilitate holiday lighting on Harbor Boulevard, highlighting the need for ongoing communication with the local power company.

Another topic of interest was the status of public restroom construction, with questions about replacing prefabricated restrooms with a self-constructed building due to delays. Although the contractor had not missed any deadlines, the original schedule had been delayed, making changes to the restroom design impractical due to the lengthy amendment process.

Finally, the council discussed the sheriff’s department contract, which is set to increase by 5% for the upcoming year. Although the sheriff’s department had previously presented their contract during a budget workshop, some council members expressed uncertainty about the details.