##VIDEO ID:Vt1OGVMjvHY## all right I this is Debbie Dutton I'm calling the audit committee to order we have to do any any more than that no we say who's pres okay well now we call now we're going to do the Pledge of Allegiance pledge allegiance to the flag the United States America to the rep for it stands Nation God indivisible withy and Justice all and now for the roll call uh this is Debbie Dutton present Mike CER present Barbara puffer present Dave sanberg present Scott Safford present okay uh Brian Thomas Jack Lon Mary and chiley are not ATT not attending this meeting does anyone move to approve the minutes did we everyone review the minutes someone want to move to approve them I I'll move Barbara puffer second second Dave seconds it y all in favor I I I all right public comment oh we've got somebody coming in now no I guess we don't have any public comments items we're moving to the agenda for items for discussion we've got the finance director's report okay excuse me good morning everyone morning um I'm Joe ank Finance director so this will be a pretty brief meeting I think um what I provided for you this morning are excerpts from the monthly Finance report that's provided to the town manager um it reflects the activities that occurred during the in the finance department during the month of December so we contining to work on year-end reconciliations the acrs um and doing all the calculations involved for unavailable revenue and unearned Revenue um we're working with our grants in order to compile a report and submit the expenditures for reimbursement that's really an ongoing monthly activity um the applic ation for the TDC Grant um is in the process of being compiled and should be um completed by the end of February um in the hopes of having it approved by the um the Town Council by March much effort has been put into tracking emergency expenditures and assembling the supporting documentation for FM and FEMA review for potential reimbursement um this is still we're still working on expenditures that occurred last year and it's just a very tedious process in which we um also work very closely with our Title Basin Consultants who are the experts in that area and they they help review everything before it goes to FM who also then reviews everything before it goes to FEMA so it's a long arduous process um and we still have a long way to go in that process um also because we don't have a contracts um manager procurement manager on staff yet um one of the functions of the finance department is to provide assistance in preparing contracts working with the attorney to do so for emergency and Non-Emergency expenditures as needed um and the review of utility billing rates continues um as time permits I think um this coming month that will be a primary focus um so I'll have probably have more to report at our next meeting I have um compiled um gosh several months ago this list of available funding and I've what I I'm doing now is just updating it and so anything highlighted in yellow reflects something that's changed so that you don't have to read through everything to understand where we're at so the $1 million grant that was provided by the Florida Department of Environmental Protection for the Redevelopment of the Bay Oaks Recreational campus that was originally approved to have a $1 million match from arpa funds but in order for that to actually um be qualify for arpa use we would have to have a signed contract for that project by De Deber 31st and we were expecting that that would be the case but unfortunately we started to see that as we approached December 31st that probably wasn't going to happen and so um the last meeting in December the Town Council approved to have an alternate funding um source for that $1 million rather than arpa and that would be to swap out um insurance proceeds so what we were doing originally was using insurance proceeds to help purchase the new town hall because that's what the insurance proceeds that's why we received them but now we're using $1 million of the arpa funds for the new town hall and we're using the insurance proceeds to fund this project this grant will expire um August 31st and so we still um are under um pressure to get this completed by August 3 first in order to utilize that Grant the other change is just the amount that we we've used on that um FM storm water grant has now um increased to $387,000 there's $134,000 remaining um the state revolving Loan program this is um a several year old program this is for storm water project um we've already drawn down $1.3 million to date leaving $8.9 million remaining the bridge loan um the only thing that I actually changed here is this is based on um actual draw Downs of lost Revenue so we knew exactly what we had for FY 23 and that's been drawn down we um budgeted an amount for FY 24 but that amount now because we've actually are in the process of completing FY 24 we know that that would be um closer to $2.4 million we originally budgeted 3.5 million so that'll be less that we need to draw down from the bridge loan because we have less lost Revenue than originally anticipated um and we still um have the budgeted amount for $2.9 million um of lost Revenue that we're expecting in FY 25 but if FY 24's performance is an indication we probably will be below that 2.9 estimated amount for FY 25 as well okay then on to the $3.6 million American Rescue plan all of um the projects um needed to have either been obligated meaning we needed sign contracts or the funds needed to be expended by December 31st of this past year so the things that have changed um since this was last reported is um those first three highlighted items at $720,000 um of propert to purchase a property adjacent to the no Town Hall we're using let me see if I have this right those three items have been replaced and swapped out for insurance proceeds um the elevator repairs the painting and carpeting no I'm sorry th this these are the items that actually did occur and we could use the funding for and so that that is what we were using insurance proceeds but now we're I think I may have misstated it before we were using insurance proceeds for the building but now we're using arpa funds so the 720,000 of it was for to help purchase the property that's adjacent to the town hall 100 almost 140,000 is for elevator repairs and then the 140,000 is for painting and carpeting for the new town hall so if you add those three together that's the million dollars um that previously was going to be funded by um insurance proceeds then the additional items that were added um at the end of the year in order to make sure that these funds are utilized were for things for which we don't have other funding and that would be the 47,500 for palm trees for Time Square they were damaged um by the hurricane Helen and Milton and FEMA do not um reimburse us for landscaping expenses um there's a jet vac machine that was of 648,000 is to go towards that expenditure and that Machinery will be used to clean the storm water drains and this is in lie of hiring Earth view to do it for us as a service um and they had previously been charging us $350 an hour hour so those expenditures um are incurred rather quickly when we're hiring them to clean out the storm drains and this so this would enable us to save expenses in that regard and also allow us to um have our own maintenance program so that we could continually be cleaning the drains and make sure that they would be ready and clean um in the event of another hurricane storm surge so what does that do just second out all the sand is that what that do it's yeah y yeah it's going to be ready I think June or July we special order it yes it's it's going to save us so much money I mean right now Earth view is 350 bucks an hour and we have to call them so it's like what Monday they're going to show up it might be Monday in February so if we have this we can actually do preventive maintenance which is going to be fantastic we can get the drains cleaned out before the storms and and just it it's going to save us a bunch of money right sorry so all of these were either incurred or acred basically last year is that what you're saying yes um so the palm trees that that's already happened I think I think in December that took place um the Jet Pac it's unordered but we have a signed contract the mountainous walkway lighting we're supposed to have a signed contract I don't think that that um has actually occurred you know has the work has not been done yet Coastal Engineering Canal debris assessment so that assessment um work has already been done and this was a way to pay for that assessment um this some drmp that's like an architectural engineering firm they're the ones who put together the plans for the Bay Oaks Rex Center campus which is part of that $1 million Grant uh with the $1 million match so they're the ones who put the plans together and we needed to pay for that outside of the Grant and that's what the 55,000 was for um we also needed to replace one of the Public Works trucks that were destroyed in the hurricane there were actually I think three or four trucks destroyed we received Insurance monies back but of course it's not enough to pay for all of them in full and this is so one of them we're using the arpa funds to pay for and then the $72,000 of North Tower Landscaping um it's required by Our Land Development code and this is at the North Water Tower to go around the fencing and other um things that are there okay um the town hall so we received the $8 million from the state as an a grant um to purchase the new town hall we used um roughly $7 million of it for the building itself and then we used the remainder of the grant to purchase the property adjacent to the new town hall and we did receive that final reimbursement so now we've actually been fully reimbursed by that $8 million from the state what is the targeted date to move or do you have one yet um we're close obviously the last two storms knocked us back a little bit um there's still an issue with the elevator um we're hoping to have the first floor open but because of ADA requirements we're kind of wait waiting on the elevator we're I think February it's probably Target dat I think um the latest I I think the the fe uh February end of February you know would be probably conservative estimate I think yeah we were hoping to be in there by Jan by by the first of the year but those last two storms knocked us back a little bit yep but they're working on I mean every day you see people down there so the goal is to be in there as soon as possible so as soon as we can I know will'll be packing it up and moving in there you'll let us know when the meeting is not here yes Joe when uh with all the controversy uh and it's controversy is the wrong word with all the difficulty with elevators throughout the island how confident are you that you're getting one well I'm not directly involved but from my understanding is this is the same elevator maybe Scott you know more Yeah so basically a lot of the problems with the condos they're they have specific elevators and th those parts are really hard to get this elevator is one of the more General elevators that is Parts can be obtained from different sources so it's a lot easier to repair this elevator than than others but we there is a whole big problem with with the bottom there's so much water intrusion that's that's the the main issue right now but um we believe we have have the part sourced and um it's not like other other elevators that are just one off and you can only get parts from one One Source well even the library still has a problem right yeah it's not they they don't have a general elevator that's that's a specific brand and they can only use parts from that specific brand does that make sense yes so so we're in a little bit better shape and I think we were also able to use the same um repair service as the original owner had already contracted so we were kind of ahead of the game by being able to utilize the same one that they had already started the process for rather than start the process over and then get to the end of the line again that's correct so okay so then I think the last thing oh is the um 7,547 185 Revenue replacement Grant from the state um it's it was approved by Town Council at the last uh meeting and now we understand I think in about one more week is when we'll actually receive that funding and so the last meeting I presented to you the plan of how we were going to use that so basically it's going to be used to repay the bridge loan that we have from the state and by putting setting this money aside um as payment for the bridge loan it would be able to earn interest until the bridge loan is due which is about another eight or nine years I think it's 2035 and I'm sorry I could be wrong but it's roughly that I I should have brought my other notes from last meeting but the the term of the bridge loan was extended to a full 10year term and I think we're already past the first year so it's like roughly another nine years before it's due so we'll have nine years of interest that we can acrew and by having it the amount set aside fully set aside side that frees us from the um restrictions from using any of our other operational savings or additional incomes that come in so we would have that those monies available to do other projects as we see fit whereas before all of that needed to go back into repayment of the bridge loan how do it determine where it'll be invested well it's that's we I haven't even done that yet but right now we have a very good arrangement with our bank they're paying us like close to 5% of interest on all of our accounts so um even if it's there temporarily or for a while it I don't know that we could do much better than that if you remember last year some of our we were getting like 0.1% I'm asking yeah I think we we've cleared everything up now we're back at five for just for everything yes and the bridel is 0% right it is unless um until it comes due and then if we don't make the payments when they're due then we have to pay 10% okay so I think um other than that then I just have the financial statements and what I printed out for you is just like the basic one so I've got the balance sheets um and this is just to give you a snapshot of where we are um I think everything looks fairly good I I'm not seeing any red flags anywhere in particular um the only thing that may seem odd is if you look at um the American Rescue plan act it shows an ending fund balance of minus1 million but that is because we haven't actually earned the revenue and it's that's that $1 million that's tied to that $1 million grant for B Oaks so as soon as that those funds are spent then we'll have earned that million dollars and then it'll move from unearned which is a few lines above there to earn and so then that'll take care of that negative fund balance so I know it it's odd and requires explanation um beach access is similar although not necess not as large of a negative balance but that is because we're we have to spend the funds first before um we're reimbursed by TDC and Beach access fund is the TDC Grant fund and so what to the extent we are spending the money we're borrowing money from the general fund in terms of the cash and then when we're reimbursed we repay the general fund and then as we get caught up with the reimbursements that negative balance will also um disappear um then the statement of cash flows I think this is you know relatively new statement this year but it gives you an idea of what's happening with our ca cash flows um for operations um you can tell in the emergency fund that's where quite a bit of the spending is occurring as well as in capital then I think the next report I wanted to show you is the one we're we calculating the um lost Revenue estimates so it's really too early in the year to tell but so what I've done in order to to um calculate this we're comparing we're com the last revenue is C is the calculation of comparing current Revenue to what we had the revenue before the storm and so that's what that fy22 actual is and so what I've tried to do is take that actual and then convert it into um like prate it into a two-month um portion simply by dividing by 12 and multiplying by two and then comparing that to the two months worth of Revenue we've received so far through November so that's October November revenue and then that difference um is what would either would count towards lost Revenue if it's something that was affected by the hurricane and so by that last column gives you all of the um variances um that were impacted by the hurricane and that gives you that $493,000 lost Revenue total so far year to date and then the next report would be revenues and expenses by object code and I sorted it um in descending order of variance so you can see we've we've collected so far um a large amount of Code Enforcement Revenue um and interest Revenue so this is um greater than budgeted um also um adorm taxes that's mostly we should end up where we budgeted but it's more of a timing issue that we're ahead right now where more has come in at this point in the year than what otherwise would have come in um parking facilities revenue is is down but you know part of that is October November that's really like kind of pre-season so we're not collecting as much then um okay so expense wise I've done the same thing where we've got the positive variances um in descending order so as you can see there's um we are holding um for wages 270,000 positive and that's to result of vacancies and all of this I should um just remind everyone we're talking about general fund um here and all the general fund departments and then way down at the bottom of that list there's expense for personal leave buyout so this would be um vacation that has accured that is people are not going to be taking and so we offer a buyout according to the Personnel hand book I think um 80 hours was the limit this time around and so people have opportunity to do that and so 40,000 was paid out and that's kind of offset by that savings um by the vacancies so overall we have um a savings of 656 th000 and then we're are head um in Revenue 665,000 so that we have a favorable variance so far this the first two months of the year that $1.3 million code enforcement that's obviously a one time it is um there must have been sizable recovery yes it was three of them good okay every budy down at uh parking guy made a quarterly payment he stroked a check so and the next um report is the same um variance report except it's some some total by department so so with the saving and the wages is good yes but that means you have a lot of open positions is there anything that you feel is being delayed because we you don't have the resources to do it is there any major projects that that's impacting or that's always a double-edged sword it's good you save the money with lower wages but that usually means something isn't able to happen at PACE that you want probably um Frankie Andy Jeff could answer that better than I because they're actually more you know in tune to the daily operations um the things I might be aware of I I know they're struggling with um Public Works there's just never enough help there so I'm sure it's impacting what they're able to do um I'm thinking even in the finance department we're we're behind um in in the audit and doing analysis but we do have um the senior count position we made an offer to a person they accepted it so they're in the process of a background check so that should be filled um we have that contracts some procurement person that's kind of slowed us that opening that we've had that slowed us down because it's it's it's difficult to pull all the information for the contracts together we're all doing our best there but so what we're seeing happening now is like things are coming to town council with um a retroactive approval right because we're just not able to get it through the system fast enough um so that's where you see some of that um I think Beach Rangers um being able to to do the work on the beach is is impacted I think even um with traffic control um just having enough people on staff to to man all all that's needed to be done there so they're offering over time I understand um they're going to see if they can get temporary help so these are the things I've heard I think that have been mentioned the town council meeting I don't know is there anything else one one of the biggest things is obviously the the traffic down at at the base of the bridge and unfortunately state law where that light is we can't use our own people we have to use the sheriff's department but we're going to use our people where that old light used to be on Fifth Street and then I'm sorry where Time Square is you know when you come over the bridge and then we're using our people um at the corner of crescent and fifth where you have to make that yeah just to get people going yep um it's going to require some overtime but we have I believe three or four people that are trained traffic people unfortunately we can't be at at that light where a lot of the congestion is so um we we know for the next 90 days we're going to we're going to need to use the sheriff's department down there it's going to be an expense they're they're way more expensive than than our guys it's it's just we we have to have we just it's we have to and and otherwise people are working overtime and um of course um that has an effect as well it's good in the short term but in the long term you burn people out and ex exactly yeah there there there's a lot of lot of cussing going on you wouldn't imagine but it's people people are losing and we're working with fot right now to get the they didn't even know that alternating light's not working I mean I know we all know they apparently did not so lights Bridge lights you know there's lot few things but so overall you've started off in a pretty good position I mean we you've got revenues or in good shape an added benefit of the code enforcement and windfall there and on the expense side your first two months have been on the favorable side too so good yeah I think we'll see parking Revenue go up um we're also working um we had an issue where where somebody's trying to do a development and they needed parking in our our rideway and we found out that our average it's either $50 or $100 a year for each spot so we're we're working on a program to revise that not not kill them but right what we're trying to figure out what the average parking spot generates and then charge them that for next year so our parking Revenue should go up so what is that number we having a pool I don't have that number yet I'm still waiting for the number of parking spaces in order to calculate that but we should should get that shortly it's silly that you know somebody's paying $50 a spot for the whole whole year I mean it's good for them but it's just not good management for us no so and then the last um page of my financial report would be um where all the cashes um so actually the the interest rates have come down to more like 4 and a half% in the latest um month reporting um we've we've finally now we've have redeemed all of those certificates of deposits that were at those ridiculously low rates so that'll come off of the report next month um we still have the bonds at fmit I'm not really sure the history of that or why it's there so I think that would be the next thing we have to focus on and what we can do better there um and then otherwise at the bottom we have um the loans and this most of this is um the state revolving loans that we have for the tier one project so that's all I have unless if you have any questions so is the audit is that on track well I it's been quiet I mean they they they've not been hounding us for information we're we're diligently working behind the scenes I think the two things that are are going to slow us down like they do so far the last couple years are getting through all those emergency expenditures but I think now that we have a senior account um about to start soon that we'll we'll have more help in getting through that and then we've got um we've have to finish that analysis of the utility rates and then once we have those two major pieces done we we should be on track to finish on time I mean that you in the very first year I was here right after Hurricane in we were late about four months um with that official deadline but our deadline line is June 30th so we should still be on track to meet that and your software you said they've reached out and you're trying to get that you got the contract signed and we we have the contract signed we received the first question here so now we'll be um we're just about to hear from our implementation manager who will start help us through the next step so yeah we're just in the very beginning of it so overall you think we'll live to fight another day oh I think so it's very encouraging I mean to see the progress despite all of the challenges it's it's very encouraging and of course we appreciate the help that we've received from the state and from FEMA because without that it it would have been not possible all right do we have any other member items or reports looks like the next meeting is in one month on February 10th at 9:00 a. I I'm move to adjourn second