Les Tyler, the city’s finance director, presented an update on the general fund for 2025, emphasizing a 7% property tax growth estimate and a 10.2% growth in the city’s assess value. Despite this, a budget shortfall of $1.2 million for 2026 was noted, raising concerns among commission members. The need to adjust for the county’s budget and negotiations with the fire union, along with increases in labor costs and property insurance, was discussed as contributing factors to the budget discrepancies.

Commission members were concerned about the impact of vacancies on the city’s operations and finances, with 33 full-time equivalents currently vacant. The city manager confirmed that staff shortages contributed to uncompleted functions and a surplus of approximately five million dollars. The discussion included projected increases in health and operating costs, with confidence expressed in the projected numbers. Questions were raised about the decrease in Duke Energy’s rates and the projected health and operating costs, as well as the effect of vacancies compared to the previous year.

The commission also debated the 3.5% salary increase for non-union employees and the higher anticipated increase through union negotiations, with the aim to conclude by the end of summer. Additionally, the Duke Energy rate reduction, which went into effect in January, and the recent reduction were discussed in relation to the city’s electric services tax and franchise fees. The decrease in Penny sales tax revenue was also a point of concern, with the county responsible for allocating the percentage based on population.

The conversation turned to specific projects for 2025, including the Sterling skate park repairs and Causeway restrooms. The skate park was identified as needing major updates, and concerns were raised about the projected completion of the restroom updates. A suggestion was made to consider completing all necessary work together to avoid duplication. Confusion arose about a one-time expense for the PSTA Jolly Trolley in 2025.

The commission moved on to discuss property tax levels and the record levels of tourism bed tax, emphasizing the need for a more accurate property tax update at the next meeting. The significance of the bed tax and Penny tax, and their correlation with the average daily rate of a hotel, was explained.

The business plan process was addressed, noting 40 business plan initiatives and 127 capital improvement projects, totaling $41.2 million in all funds for fiscal year 2025. The city is expected to issue debt to fund projects like Solid Waste vehicles, the Midtown parking facility, the Highlander Aquatic Complex, and Wastewater projects. Additionally, 167 initiatives and CIP projects are aligned with achieving the city’s six epic goals. The Community Development department’s request to update the 2011 Citywide bike and pedestrian plan, with a proposed budget of $60,000, was discussed, with the potential for a grant to cover the costs.

The Parks and Recreation Department outlined their priorities, including refurbishing the Highlander tennis courts and replacing the manifold at the Kuana spray ground. Commissioners inquired about the details of these projects and the addition of shade structures at the tennis courts. A community member expressed satisfaction with the Recreation Department’s responsiveness to maintenance issues and long-term plans for tennis facilities.

The Gladdys Douglas Preserve development, golf club improvements, and Sterling Park repairs were also topics of discussion. The cost and necessity of certain projects, such as the $1.4 million phase two development of the Gladdys Douglas Preserve and $500,000 for driving range improvements, were debated. The commission expressed the need for careful planning and consideration of the impact on other initiatives.

Public Works presented their top three priorities, including repairing or replacing failing and aging infrastructure, assessing infrastructure, and implementing efficiency assessments. The connection between these assessments and ongoing asset management planning was discussed, with the commission seeking clarification on current system capabilities. The allocation of funds for the American Rescue Plan and drainage improvement projects was debated, with a focus on the balance between maintenance and new solutions.

The commission received updates on the deep well injection study, focusing on alternatives for meeting future legislation on effluent discharge. upgrades to lift stations 10 and 8 were addressed, each with an estimated cost of $1.25 million. Additionally, the wastewater treatment plant electrical system upgrade, with a budget of around $19 million, was discussed in light of bidding challenges and securing necessary funds.

The commission debated the timeline for the assessment and potential renovation of a bridge and the organizational structure of the Clearwater ferry service. Updates on park and trail renovation projects, including roof replacement and trail renovations at Hammock Park, Scottdale Trail, and Weaver Park, were provided.

The challenge of securing electrical supply for the wastewater treatment plant due to supply chain limitations and delays was a issue. The commission discussed rebidding the project with base bids and additive alternates to make progress within the budget. Concerns about the vulnerability of the plant to sea level rise and storms led to talks about the need to elevate electrical components.

The meeting also covered the allocation of funds for broadband infrastructure, the functionality of online permitting, and the status of the city’s cable channel. The use of ARPA funding for broadband infrastructure and the impact on other capital projects were debated, as well as the delay in restoring the cable channel.

The replacement of 800 MHz radios for city departments, estimated at $510,000, was discussed. The commission is still determining the exact number of radios needed. Additionally, the proposal to remove certain business plan initiatives from the draft business plan, including the classification and compensation study, the golf cart infrastructure plan, and the Belltrees study, was debated, emphasizing the need for transparency and tracking.