[Music] [Music] [Music] [Music] [Music] y [Music] [Music] [Music] [Music] w y [Music] [Music] [Applause] [Music] [Music] [Music] she I going to turn [Music] [Music] [Music] oh [Music] take take [Music] [Music] n [Music] [Music] okay where I get the signal please take your seats the meeting is about to [Music] begin please standby we are going on air in 5 4 3 2 1 good morning and Welcome to our finance and economic resiliency committee meeting we're going to have our second rendition of the budget Workshop thank you for being here commissioner vice mayor Dominguez commissioner bot and the chair of our committee Joe magazine I understand we have commissioner Fernandez and commissioner Rosen Gonzalez on the line as well and take it away Mr chair uh thank you as the mayor said uh Welcome to our June budget Workshop Retreat um we have with us our city manager our CFO our finance team and uh the mayor and commission so while this is a meeting of the finance economic resiliency committee uh this will be uh kind of an all Hands-On deck effort as we kick off uh and continue going through our budget season so uh I'll hand it over whoever would like to to kick things off whether it be the city manager or CFO I'll leave that to both of your Discretions good morning and thank you Mr chair thank you mayor and Commissioners uh it's a pleasure to be here this morning as a followup to our May 20th budget Retreat where we received a lot of feedback from the commission uh today reflects a pivotal moment in the budget preparation process as we will discuss the preliminary operating budget and give updates uh since the retreat we'll also discuss the millage rate and our capital budget on our preliminary basis uh I do want to highlight our finance and budget team represented here today by Jason Green and Tama Auto Stewart and their respective departments that work very hard to develop this budget and we have staff ready and available here to answer any additional questions that may come throughout the discussion today so without any further Ado I'll kick it over to Jason and T mik thank you good morning uh PJ you could bring up your presentation all right so good morning everyone uh what we wanted to do first is to give an update from the budget Retreat we spent a lot of time back in May talking about the operating budget and the prop you know what's coming up with the values as of June 1st next slide so when we met back in in may we had needed a 2.7% increase in our property values in order to have a balanced current service level budget uh on June 1st the property values actually came in at 8.8% increase so good news on our side good news overall for the county I just wanted to temper this 88.8% increase with a little note that of or increase or existing property values increased by 8.3% or new construction was 0.5 of that total increase of 8.8 as compared to Miami day County which new construction grew at 1.4% so we're trending a little behind Miami day County in overall construction which is on the slide here right so next slide so again when we met on May 20th uh we had a $6.5 million budget Gap we needed 2.7 million to balance the budget next slide and based on the 8.8 property value increase we are actually at a surplus of 14.4 so we close the gap and then we actually have some Surplus it is important to note though that this does not include any enhancements and any potential increases to the budget from our Union negotiations which are underway right now so I'm going to speak uh a little bit about our millage rates and a couple of um policy recommendations we're hoping to get some feedback from and we hope we'll get some uh you know positive on that so our initial preliminary 2025 millage rates uh look look like this it's flat across the board on the operating millage but the voted Debt Service which is tied to our general obligation debt that we issued in 2019 and 2023 because we have primarily kind of a flat uh debt structure approximate because we have that increase in in taxable value of our properties we actually need less millage to cover that existing uh Debt Service so there's a small decrease that is required uh on the voted Debt Service but we have a policy recommendation uh related to that so I'm going to pause on the slide for a little bit as I go through this so the first thing I want to mention as we mention often is we have a $1.2 billion in unfunded Capital needs uh over the next five years for our Capital program just looking at 2025 even with the existing funding that we have coming in we're looking at a $5.3 million uh deficit in our Capital ru replacement or crr which is funded with its own separate millage and $22.1 million unfunded in our Pago which is also covered with a separate uh millage so the first of our recommendations is the dedicated CR millage adjustment and our recommendation is that slight decrease in the voted Debt Service millage be transferred up into the crr uh millage this would generate an extra $1.3 million in funding for the capital r Reno placement uh program uh quite honestly over the long term this will be more than likely my recommendation anytime this happens in which there's a a decrease in that voted Debt Service to continue to enhance the level of funding towards their Capital program and I know as I as we spoke privately you know in briefings and such I think this goes to the pledge that I looked at that the city made to the residents back in 2018 in 2018 I wasn't your CFO I was just a resident of of South Beach uh and I heard about this $450 million Capital goo Bond and I I I knew this was kind of in my my area of expertise so I got out of my out of my condo and I said let me find out more about this and I attended several public information sessions at the Jewish Museum in South the fifth and at the New World Symphony I got to know and meet with several senior staff elected officials and I spoke to them about it including some concerns I had that in that funding were dollars set aside for things that I would look normally would be done through the normal course of action of a municipal government such as making sure our sidewalks are fixed our asphalt is resurfaced and things along those lines and I was told that time the general plan was that this geobond program would get us up the speed to get everything fixed to where it it should be over the next 10 years or so but the city would do its best to dedicate additional Financial Resources so that when that geobond program is over and it's time that the city's own funds other than the geobond would have to start fixing that what I look at as the basics of Municipal infrastructure your streets and your sidewalks and your sign panels and things along those lines would can I realize that I would be the one having to fulfill the promise that was made to myself but this goes towards that and along the uh with the second one there is what can we do uh to incrementally adjust upward the dollars the city puts toward its capital programs and hopefully uh this is one that we will get positive traction for I I did want to mention also that the these were both presented to the budget advisory committee and they were uh I believe it went out as an ltcu and that came back with a unan unanimous recommendation uh to to endorse uh the administration's recommendations here the second one is general fund interest income for capital projects the recommendation is to allocate uh a new a new Financial policy which we would take to commission as part of this budget document to be endorsed hopefully with the September budget to start allocating 25% of the city's interest income in the general fund this would uh be approximately $2 million that would be additional dedicated to go to the pgo this represents approximately the amount of increase that we're projecting between the 2024 $6 million budget and the $8 million projected income for 2025 the reason I'm recommending this not only because we need it in the capital program is that as your CFO I you know going through and examining the city's finances I'm trying to see things from my perspective that makes the city more financially resilient and interest income is an area that is actually very volatile interest uh income was only about a million dollars a year a few years ago when interest rates were close to zero we've had a runup and and and it's been great we we've generated significant interest income but just as it was great that it ran up it could run back down and if we're in a situation during a Rec you know the Federal Reserve will often actually will always uh lower interest rates to Spur economic activity and if we're in that kind of situation and I look at that as a when not if it will happen it's just I don't know when uh let's be prepared for that uh so the recommendations is we would start at 25% and then every year thereafter we would increase it by 5% so it's some distant future in in in 10 15 years or so we would get to 100% allocated to capital projects putting more dollars to work in the capital Pro project and taking a volatile Revenue Source out we don't want to be tying recurring uh salaries for people to something that all of a sudden I have a $7 million budget deficit uh that was of no one's fault of its own just because interest rates took a dive and we have to be in a situation to cut back service levels so while we're in a time when we have a good Surplus let's start making these you know I think good decisions hopefully so actually I'm going to pause here here quickly uh if there's any kind of questions comments on this those are are two major uh policy statements that we're hoping to get some feedback on and then we'll continue on with the presentation um thank you Mr CFO thank you Jason um agree with you we need to move in the direction of uh fiscal responsibility and Prudence if I could ask two questions uh one if you could give a quick overview um without going line item by line item of the $ 1.2 billion unfunded capital projects is there chunky items is it if you could give some sort of generalization if there's a few large items where is this unfunded needs coming from and I agree with you that we need to be fiscally responsible and start preparing for this uh however this is and I agree with your approach and methodology and I'm going to be supportive of this but really this is just a a rounding ER right putting a couple million dollars of interest expense towards uh a$ 1.2 billion unfunded Surplus so uh above and beyond shuffling around a few million dollars per year where can we start making a dent in that $1.2 billion where is that money ultimately going to come from because you know when we talk about five million perhaps Max $5 million of interest income expense now being shifted towards uh going towards this 1. .2 billion Surplus that's not making a dent in trying to get to that unfunded Gap so how do we above and beyond this start approaching that uh thank you it's it's a very good question a majority of this is going to be in our Enterprise funds and our goo Bond so a lot of that is going to be funded by Future Debt Service and it's going to be your water and sewer and your storm water are going to be big components of that they're they are paid based on user fees and through issuance of debt to do those major long-term generational capital projects we still have several hundred million dollar in general obligation bonds that a future commission will uh hopefully uh approve for us to actually issue the debt to do that in our program but it's programmed and until it's approved by commission issue the debt it's considered unfunded from that perspective we have a number of other Enterprise funds whether it's our Convention Center or our parking they have its own fee structure that should be able to cover a lot of that when you're looking at a smaller subsect which is your CR and your payo those are more in the tens or maybe hundred million dollar kind of range so though it may seem smaller amounts technically the $1.3 million increase in the crr is actually a 50% increase in what the city is currently dedicated and my thought is over a longer time maybe getting up to a $10 million year CR might be in in a good course I I appreciate that that that's actually incredibly helpful um would it make sense to essentially uh allocate this interest income towards unfunded Capital Surplus x what is covered by Enterprise funds yeah so that's why the recommendation on the millage is for it to go to the crr or capital r replacement that's going to be mostly you know you'll see that when we get to the capital budget mostly 40 recertifications keeping our existing assets fixed you're going to see HVAC you're see roofs you're going to see Windows things along those lines the pgo is the more analogous thing it could be more open up that's going to be new Replacements on playground equipment and things like that but what will happen what I'm looking at is in the future is what happens in 10 15 years uh when it's time to start budgeting a couple million dollars a year for asphalt or a couple million dollars a year for sidewalks because they're not going to be tens of millions a year there'll be in the millions per year I believe uh at that time we want to make sure that we slowly beef up and I think it's an incremental approach I don't think we have to be revolutionary at this point I think we need to be evolutionary but the decisions we make today do weigh in the scales of tomorrow please commissioner bot uh mayor Miner commissioner bot thank you um so two questions and I I don't I'm not um trying to poke holes in what's happened over the past years but it seems like a lot of this um a lot of the projects that we talked about in our in the briefing were delayed maintenance of or of our own City facilities we are I've heard it say I've heard it be said a number of times that you know we we take care of the public facing stuff first and deal with our stuff last which I appreciate but also would the cost be as high if we were kind of fixing things as they came up rather than waiting until the last possible minute and is this a I know you haven't been here for 20 years so you don't necessarily have the historical perspective but what how do we avoid getting ourselves into this situation going forward like it seems like a lot of the money that we need to find now is to play catchup on things that had we dealt with them sooner might not have been and not all of them but might not have been um as expensive that's the first question the second question totally unrelated do you and I don't mean to give you a pop quiz um but do we have a sense of when the Convention Center Hotel comes online how much that is going to help offset some of the the funds that we're in to need to do things going forward between increasing the type and scale of conventions that are booked and revenues coming in through from the hotel itself okay let me try and tackle that one question at a time uh the first the F the first question was related to um okay when we put together our Capital program there are and you will see there are unfunded you know unmet uh needs that are in our Capital program this year we do look at the dollars that are available we get the priorities from the individual departments the budget Department Blends those different priorities together and then we begin to allocate that are available you know starting at the most restricted dollars to the most open such as the Pago uh at the end of the day there are unfunded needs in our crr and pgo primary those are the primary sources of un metet needs in our 2025 capital budget when we put that together that is sent back out to departments so that they're able to look at it and see do we miss the Mark is there anything in there that is going to um critical needs and and we're going to go through the list of priorities when we get to the capital budget so you may be repeating some of what T is going to speak to later but we look at what are critical needs what are Public Safety from a perspective of the assets leaking roofs you know mold issues things along those lines that could impact uh the preservation of the asset and people's and staff's ability to enjoy the asset some are nicer to have if they were that they should get done but they don't necessarily have to we sent those out to departments four projects did come back uh asking that they weren't initially recommended for funding but they really thought they were important for various reasons and I won't go into the details of those project but there were there were a couple that they said they needed to do we did relook at it and actually we were discussing these new priority um new uh uh recommendations policy recommendations and us moving forward we freed up another $3.3 million we were able to fund those four projects as an example so I believe that the Departments have looked at that list and they are comfortable that the projects that we are uh requesting funding for are sufficient to meet their needs would it be nice uh to do a number of the other projects you'll see a lot of hundred, half a million dollar CR projects yes but they are not necessarily need to be done and I I you know I often joke about like the bathrooms in the finance department you know it would be nice to renovate the 40 or 50-year-old bathrooms but they're functional they're clean they're not unsafe uh we can we can get by as it were but I think making these steps today to increase those dollars incrementally over the years will help to address that I think I just I I just um I guess what I was getting at is why are we finding ourselves in this situation this year did it just not get prioritized in in years past the sort of it it was inside the family kind yeah it was always about it was always about available funding um and if you look back over the the history of the years of of what the Village that was dedicated towards those and I think the commission a number of years ago actually cut it during a recession or or such just because I I don't know that was just the the purview of the commission at the time uh there's almost never going to be a a situation where we probably have every dollar to do everything you want to do um but we feel that we are hitting the mark of what is absolutely required would we absolutely the commission said fund every one of those and let's in increase the mill or CR and the pgo yes that would be wonderful but I also understand it's probably not reasonable uh to expect that so we are trying to find mechanisms and Pathways to increase those dollars and I think a palatable way okay and then your other question on the Convention Center Hotel I believe there will be more of an update that it in July and I don't necessarily want to speak to that to that now okay yeah I would just add to that uh back in 2019 we actually only had one dedicated millage rate for Capital and that was a capital renewal and replacement in 2019 we added a millage rate for pay go so we have tried to start addressing it because we have a millage rate as the property values increase that Revenue has been also increasing so we have been trying to make it work um without doing significant increases to the millage rate uh back to the presentation yeah if there's other questions we'll move up okay I if we could one second I think U Mr M did you want to chime in let's continue and then I'll I'll hold my thoughts okay thank you so if we follow these policy recommendations this is what the new general fund uh would look like so that would take that approximately $2 million of interest income uh out from the Surplus which would leave a remaining $12.6 million surplus available for uh various Appropriations and just you know to reinforce what uh to me a had said that this does not include any adjustments related to the new Union contract so this doesn't include any cost of living for any of the employees doesn't include any of the enhancements requested by uh the elected officials through their uh priority resolutions or through the administration and then this is what the millage would look like it's just a swap so the commission still would be voting on a flat total combined millage rate but it gives us a little bit more actually 50% more basically in the C roll replacement so just a quick update on the resort tax budget and the update is that there is no update uh next slide so this is the slide we showed at the May Retreat and it basically shows that our Resort tax budget is balanced it actually is balanced with a decline of $4.6 million from last year's budget or I should say this year's budget so our Resort tax revenues as you will see have been going lower than what we budgeted this year and last year's actual they're trending at about 5% lower than last year so we're hoping we're just at a new low and we've adjusted a resort tax transfer to the general fund in order to make this budget balanced uh so as we go through the operating budget when we get to the June uh F meeting the July F meetings we will not be recommending any enhancements uh because the budget is balanced so we'll pause here because this is the end of the operating update if anyone has any more questions or comments I did yes uh I want to be forward thinking and I think this is one of the probably more important things that I'm going to ask today things look great here for this year but if we can fast forward one year we have been we the city has been benefactors of two years of double digigit property value increases and this year close to double digits that is not a realistic run late run rate to expect to continue uh on top of that we have several I believe five Union contracts coming up um if you could just give some back of the envelope projections of I'm not even saying if we would agree to where the unions are coming in at if we would just have a I don't know have you run any projections of if our budget essentially is it a run rate and we agree to I don't know 2% increase 1% increase uh for compensation benefits for our unions what does our essentially Surplus look like next year right now where we have $14 million surplus uh if we would essentially keep things flat but add in a modest increase for uh the union contracts being renegotiated where are we at next year I don't want to get into details but I will give you this uh if we look at the cola which would be something that would go across the board uh as it impacts the general fund if we were at a 3% Cola uh that was in April 1st which uh was per the last contract but I know historically has been October 1st after I think two contracts prior and there's been some discussion about pushing that b but if we were at October if we were I'm sorry 2 yeah approximately $3 million would be the general fund impact at April 1st so we were at 14.6 we talked about 2 million for the capital leave 12.6 uh $3 million would just be a 3 point uh 3% Cola in April um there's been requests for higher numbers than that per month great no per year 3 million 3 million for the year would be the general fund impact for the um one hitting in April uh there's been requests uh that are higher in the 4% range there the requests that been to start in October uh and I think October to 4% was almost $7 million so just to give that as an example there's a request for 4% in October and that's close to $7 million that's just that alone that doesn't include anything else related to shifts or or steps or anything along those lines so just to get an idea it would be um helpful I think to have as much of that available to ensure that um you know we're able to get those five contracts across the finish line Y and just for all of us to remember that's not some onetime impact fee that's essentially an incremental addition every year to the budget so thank you Jason thank you okay I think we're going to get into the capital budget which is the meet of today okay so this is just a little overview of the capital plan so we do a 5year CIP Capital Improvement plan and this is the official policy statement for the city's um Capital expenditures it does show a 5year plan uh what we focus on in today's meeting and when we adopt the budget in September is a fy2 next year's plan so a quick timeline of our budget process so we started a budget process in December so in December our departments were asked to start working on their request for 25 they were submitted to the budget office in January and between February and June we have had close to 60 meetings between the Departments for the city manager the executive team reviewing both the operating and the capital budgets and we have come up with recommendations all our recommendations have been shared with every department and we've gotten feedback as Jason said we had a few departments ask us to try to prioritize some projects and we have those included in the recommendation that you'll see today so the purpose of our first meetings here were we've invited all the Commissioners is to have you give us your feedback earlier on in the budget process between now and July in August what we're going to do is take your recommendation build them into our budget we'll prepare a proposed budget book that you'll have when you come back from recess and then we'll have two public hearings in September to adopt the final budget so this goes on to a question that commissioner bot asked uh this is just for fy2 but just a overview of what our unfunded needs looks like uh look like of a total request of $105 million for fy2 only we are recommended funding $73 million and that leads an unfunded amount of about $ 32 million in all funds uh what we're going to focus on primarily are the capital renewal replacement funds the quality of life and the pay as you go funds those fund a lot of our general fund SL Resort tax type assets so you may be wondering what's the basis of the allocations that we're recommending uh the first priority is what are our high priority projects so we work with the Departments to prioritize the projects when they come to us and we try to fund as many high need projects and Jason will show as we go through the slides we have a lot of required for year recertifications that we have to get done and so we use our crr and payo dollars for those first uh that we have capital projects that have funding gaps so before we add funding for new projects we try to fund our existing projects and then we allocate matching funds as much as possible for projects that have a grant and then we allocate funding for our other funds parking transportation for example these are all special revenue or Enterprise funds and they have their own funding source when we go to the presentation you'll see that they are pretty much able to take care of their needs and we have recommended almost every project in those categories so what we have here is just a list of our Capital funding strategies uh number two and number three we spoke to a little bit earlier on the operating side of the update uh the first one is just to mention related to the golf courses traditionally golf courses are part of a city's general fund they are not money makers they're traditionally you know subsidized by the overall general fund uh it kind of happened during covid and during uh you know our inflationary increase period where rates were able to be increased and we've found over the past year or so that our golf courses are now generating a surplus within their cost center of the general fund there is an approximate $9 million Golf Course renovation project of the Mii Beach uh golf course the commission approved a $1 million allocation last year for design planning and permitting uh the rest 8 million for the construction what our recommendation is that the Surplus uh generated in 2024 uh on the Golf Course call center would just be able to be kept by the go golf course to renovate their to use for their own Capital project and we think that's a smart way to move forward um because again when they have obviously capital and capital r replacement needs and they're able to just the dollars they're generating they get to keep uh and spend for it so those 2.3 $2.4 million can go towards that $8 million that they need and we would look at this funding this over multiple years so they can get that project uh to completion Jason could we just put that as a policy going forward until that entire uh Capital need is um exhausted so in the coming years anytime that the golf course runs a surplus uh the first dollars of that Surplus will essentially go towards that $8 million we could include that as part of the policy statement as part of the budget document uh obviously anything you know can can tie to a future commission but it does help so that if you do that then that would just kind of be the Baseline we wouldn't have to call it out on an annual basis and based of the funding it looks like it'll take two three four years probably to get that all done but that sounds like a good idea thank you yes Jason are there um are there other things um circumstances like this that we could sort of make this policy decision um to apply so that it becomes kind of a baseline for any uh not just specifically the golf course but any need that is unfunded that generates its own funds gets applied to that need I I don't believe so we will go back and and double check uh because that's why we have special Revenue funds and Enterprise funds where those assets are set aside specifically and the question would be must you know we want to do that with the golf course but we just never know how the future is going to go I think this is probably the primary asset where you would have this kind of thing but I will have the budget office take a look with the Departments to see if there's anything is and if there is we'll report back thank you thank you so here is a list uh it was requested um and we as we always represent a list of where are the priorities that the commission has approved so here's a list of the of the priority capital projects as you know capital projects are the domain of the FK they get referred down the firk to be discussed and they may or may not come back with a positive recommendation this is a list of around $10 million in capital projects they are all in the capital program uh though the ones with check marks were ones that uh we did specifically identify funding for and are recommending uh funding for those uh and all of those primarily did go through F and to commissioner or will be approved as a recommended budget priority at the June commission meeting I just really want to highlight the main one at the top the biggest dollar one The Pedestrian compact at sth East of Dunes um on that one there is a companion to that and the operating side $100,000 for a feasibility study we know that that may be a heavy lift to get that approved from a regulatory perspective so the administration's recommendation is though the project will stay in our Capital program we would push that out a year and we will um make the administration's recommendation on the on the operating side that we fund the $100,000 for the feasibility analysis uh instead of tying up $4 million in a capital project that we're not 100% sure uh whether would be needed so we do that and then you know the feasibility St will happen and probably one year from now we'll probably have that discussion on whether we want to move forward on it so that's the main one I wanted to point out on the slide here so now we're going to actually go into the list of projects so you're going to see several slides that show the projects that we're recommending this just mentions that within your agenda there's a large document in the middle that has a list of projects we're calling it attachment a it lists every single project that was requested over the five years and then it shows what we're recommending so what we're going to go through is what we are recommending if there are any projects that are the list that are not recommended that you'd like to give us feedback for this would be a great opportunity so we'll first go through the capital veneur replacement list so as was mentioned a couple of times now the crr it has a dedicated millage so as the property values increase so do the revenues and this everything that you see here includes the the we are expecting or you know assuming that you all will accept our recommend ation of that millage rate transfer to the crr if that's accepted there's $1.3 million included in the recommendations here that uh you'll see in the next slides uh this slide just basically shows what was a total request and what was unfunded so we recommended 3.9 of all the requests there was a total of 7.9 requested so even after funding almost 4 million there's still an unfunded need of 4 million so I'll show here the next two slides show the list of recommended projects to be funded with available Capital owner placement funds you're going to see a theme there J I'm sorry before we get into that uh I think commissioner Fernandez wanted to chime in uh I know he was the lead on the um packed uh path uh Mr City attorney are we able to recognize commissioner Fernandez I don't I don't know if that's accurate that last part oh sorry sorry I mean I I know we hads no sorry I know we had interest in that so perhaps uh that's why I wanted to interject there sorry Mr Mayor are you able to recognize him on Zoom good morning good morning commissioner Fernandez can you hear me we hear you loud and clear morning good morning yes great thank you and and uh and Mr Mayor you are right you you have been the long long time lead on the on the compact sand and uh and certainly 100% support your efforts to to get the funding so we can start the regulatory process on that um so thank you but I actually had my uh hand raised because I noticed that we had the Lincoln Road Street end railings um you know 10th Street 14th Street um fronting fronting the the bay um as funding for the next fiscal year as one of the recommended projects and I think that's important I just want to make sure that doesn't preclude us from starting on those projects this year is that correct the it yes the $150,000 for the Lincoln Road Street and railings 10th and 14th Street uh that is part of the 25 budget process so those dollars will become available uh to be from an expenditure perspective October 1st got it and and thank you for thank you for that answer and one of the other uh points I just wanted to ask uh for on on the record uh since I've been elected I've been trying to prioritize uh projects uh to to improve water quality around Park View Island given the recurring uh elevated level of nutrients uh that we have uh in in that area and I know this year we have a line item budget uh being recommended for for fiscal year 25 once again um is that all the funding that the department needs uh for for for for this year or is this a partial funding uh for uh for part viiew Island commissioner that was a a full funding request the that was the $2 million requested by the uh department and we're recommending fully funding that request thank you thank you Mr Mr chair Mr Mayor uh thank you for the opportunity to put these items into the record right thank you commissioner Fernandez PJ if we put the presentation back up perfect uh so this is the the first of two slides on the capital r replacement you're going to see a theme there and that's 40 and a 90e recertification so those are the Milestone uh ones for all of us that live in condominium buildings we're we're very familiar with this process uh where many of us are going through this and the city also has to do this this is about safeguarding the assets that we already own and ensuring that they are St safe and stable going forward um so this continues uh funding all over for certifications um and the one again main call out there would be you know our continuing um funding towards the 90 year recertification for the city his historic City Hall and that's a multi-year I think it's a $1 million allocation over a couple of years as they you know go through major Renovations for that project than commissioner thank you um the Smith Linsky recertification is that a a cost shared with the the business that occupies that space I no I don't believe so it is a the building is a city asset the city uh leases it to to to that tenant who you know pays rent okay and then here the second uh set of items that are recommended through the capital r r rep placement again these are not the um out front in your face items that you know residents are going to walk down the street and see but they are important again whether they're door replacement Refrigeration equipment HVAC renal uh things along those lines these are kind of the more mundane things but these are the things that we you know need to move forward with so this is about $3.9 million allocated towards uh the capital room replacement program so now we're going to jump into the P you go funding this is also a dedicated millage rate as was pre previously described it actually gener generates $4.8 million in revenues based on the property values next slide right so it generates 4.8 but we did have Fund in from PRI year so you may recall last year when we ended FY 23 we had $16 million of surplus that we transferred some of that over to AO funding so we had some leftover funds and then the recommended $2.3 million transfer from the golf courses are it's here as well as well as the $2 million from the interest income is built in so we were able to fund $16.4 million of projects from this fund there's still 20 million unfunded so I'll just do this first one this is a series of slides on our pigo and the reason I just want to mention here is the very first four projects in here a little less than a million dollars of that payo is actually CR R projects that CR ran out of money and we transferred them over here to pgo pigo has the most you know uh least restrictions on its usage so again we have for recertifications towards uh those buildings and then we have just a number of other kind of as commissioner Bob was saying kind of behind the scenes uh things that are more uh going to be seen from the employee side whether it's you know a fire alarm uh electric charging stations you know an awning for a fireboat but then as we move into the next you'll be able to see something a little different yes so well this slide actually continues the behind the scene um improvements for example smart card access for or actual facilities to make our buildings more secure um City Hall main entrance papers some restroom Renovations so we're actually trying to do some internal behind the scene items here next slide and the next three slides get into more of the forward facing assets that the residents will enjoy uh one of the main project we have here is almost a million dollar for the Flamingo Park playground replacement we also have $648,000 at Scott Rico for the rink Refrigeration which is necessary to keep that uh facility going um we also have the Bell ale dog park artificial turf so right now there's actual sod and they're going to convert that to Turf and add some irrigation systems and the last one you see there is a golf course that we're recommending transferring their Surplus to I just wanted to go back because I I I F failed to I forget to to mention a couple of ones that I know that were commission priorities and who they were and I may get I may miss a few so uh bear with me but the the last one on this list the the half a million dollars towards the master plan development design work for the Maya Beach Drive improvements was uh touted by commissioner Fernandez and move through uh committee and I believe it was recommended or is in the process of being recommended as a priority uh at the commission level uh the Venetian Causeway entrance sign was another one that was a a commission priority we did find the funding available for that one and then on here as s can mentioned the B do Park I know commissioner Dominguez championed that and that was also voted on to be a commission uh priority so um it's I'm a little bit surprised that um a feasibility maybe it's because it's a different scope of work so please educate me um to do a feasibility feasibility study um of the compacted sand east of the dunes is $100,000 which seems like it's a pretty major undertaking to do just the study of it um the the project to reimagine Miami Beach Drive um is five times the cost of that which to me seems a lot less of a complicated thing to do so could you educate me on that I I want them both to be funded I'm not saying one's more important than the other but the it seems like there's a lot more work involved in one than there is in the other and the funding is seems LED let me try to address that commissioner um the the $100,000 towards the feasibility study for the compacted stand I I believe and and someone will run up and tug at my jacket if I'm off a little bit on this is something that's going to be more between the consultant and the state regulatory agencies that probably will not have a very much in the way of public involvement because it's just about is this technically feasible from a regulatory perspective which is a a little more straightforward Professional Service the other one is not a feasibility but it's a master plan and talking with the Department there it was until they really scope it out and get with the consultant on it to get a more refined number it was just we think it should be somewhere in this line when you do Master plans that involve numerous public involvement meetings uh and we know in our city we we we do do that a good bit that can get drag out the price so that that half a million dollars will probably not be exact number but that was just the blanket number that was requested okay thank you thank you here we go and and just one last one here is again commissioner fernes mentioned earlier uh the first one on here is another commission priority uh uh which I believe is also commissioner Fernandez uh which was the the Lincoln Road Street and railings yeah so this list just continues with a lot of our city facilities I'll just mention the Citywide Bridges this is an annual funding that we try to fund to make sure our bridges are safe uh we added funded for Citywide pickle ball and paddle uh paddle courts and then Northshore par Youth Center baseball scorecard so again several forward- facing projects and this is the last slide we're adding actually a new dog park at 35th Street and more security enhancement Citywide towards this campus and all the other campuses within our portfolio and just the Highlight in here is uh the half a million towards the over thewater Indian Creek pedestrian pathway where that I believe includes both the feasibility analysis and the actual design and permitting work uh and the $2 million towards which uh I'm sorry The Pedestrian the over thewater pedestrian pathway I believe was also a commissioner for is a priority that uh is going to commission for endorsement I think in June uh and the Waterway marker at signs I believe was commissioner Suarez uh had uh advocated for this project this was an existing project that was already in our Capital program and we were able to identify fundings uh for that so now we'll speak uh to another funding source for capital projects which is a resort uh tax quality of life funds those come in equally North Beach South Beach and mid Beach historically uh South Beach has more needs uh than the dollars are available where mid Beach and North Beach usually don't expend every single one of their dollars which is nice in the sense that it does get to fund everything that they that that they can in those Resort tax eligible areas so here in South Beach is a list of uh the projects that we're recommending uh for funding you're seeing life guard stands you're seeing the 10th Street Auditorium uh restroom uh roof replacement on 14 Street Ocean rescue and a number of projects uh at South Point Park and then the first one I mention is you're going to see an all three areas of the city is an ongoing multi-year project for beachwalk ballards uh along throughout the city and this continues that funding uh this wraps up the South Beach as you can see it's a total of $2 million being uh recommended allocating every dollar available uh and again this this just continues uh with some more South Point uh Park lighting project which I know is is one that that i' I've heard about that was of interest and bass Museum window replacements as an example and then here we have mid Beach mid Beach is $1.5 Million worth of projects that were requested we're able to fund every one of those projects approximately $850,000 remains which is good news for two perspectives one if any of those projects goes over budget we know that there's the dollars available to fund those CH orders or those scope changes and two uh the dollars available for next year so when there's a there's another big project coming along we know there's ex excess dollars there and again along here you're seeing the ballards again you're seeing uh mid Beach RightWay landscape areas which is going to be in your Resort tax eligible area lifeguard stands along those lines and then North Beach I think has two slides uh you're going to again see the Beach Walk ballards there's a number of projects uh that were recommend ending at the the Bandshell whether they're roof uh repairs electrical improvements uh the tennis center up there the Shane rowing Center and same here more Shane roow rowing Center uh some landscaping and uh Alleyway uh restoration there oh I'm sorry let me go back forgot one last Point 2.3 $2.3 million uh being recommended funding towards these projects that'll leave $2 million unallocated so again that makes it available uh for Resort tax eligible area especially for these projects if they need to have additional scope or have change orders to towards them so now we'll go into the parking funds and again they have their own dedicated fund fund sources uh several garages you're going to see four slides and these are primarily renewal and replacement of their existing assets there are no new parking facilities being added this year to the budget and uh what you if we'll go through the slides uh at the end you'll see there's a total of $10.5 million in renewal replacement that's being recommended so the parking fund is doing well um postco they're projected to have over $6 million in surpluses this year but we want to keep in mind that they have a lot of assets that they have to maintain so we want to keep an eye on making sure their fund balance is solid we'll speak a little bit about Transportation related projects so there's approximately $6 million uh recommended there that we are recommending funding for these include a number of bike Lanes uh traffic cing pedestrian zon shared use paths things along those lines so we're hoping to get um I think we hit the mark on getting these projects funded and now res uh resiliency projects resiliency is going to be primarily your water sewer storm water uh you know I spoke a little bit about that earlier when uh commissioner magazine was asking about you know ongoing program uh the commission approved in May an $85 million uh Declaration of intent to issue we will come in July with uh a budget amendment to appropriate those $85 million there's a very large Pump Station I want to say 28 that is alha procurement that might be in the 30 plus million doll range that will go towards that and that's why you're not really seeing much in the way of Water and Sewer because technically the 25 work program is part of that issue and so we're going to deal with it through the budget amendment we just have here storm water uh we have some existing bond dollars really unallocated dollars whether through interest income uh and we're recommending these projects this goes towards that critical needs program that the commission approved uh recently and here's just a few more including some projects that were closed out and made more dollars available now when T is going to go through here is other funds we have numerous other funds uh with small pieces and she's going to go through those yes so this is the last set of slides that we'll go through and this just list we have hundreds of funds and we mainly talk about the general fund and the payo and the crr but we have several other funds so what we do at the end of each Year's audit is that we look at the available balances that are sitting in these funds and what we try to do is appropriate them to all the projects to make sure every penny is spent and allocated um each year so again this is a long I think it's about four slides that we'll go through more 40-year certifications um the unit ad build an elevator uh upgrade a lot of projects at City Hall we're trying to again take care of our own internal assets and the list continues so we are funding using up funds from old RDA bonds uh the convention center actually has a dedicated funding source for their own ual replacement so we are funding as many projects as are needed within the convention center as well and again so the we if you look at the slide we have goond dollars from $1 19.99 and the reason we have these funds is that we have projects that have Appropriations that are not all spent so while the dollars sit to be spent they're earning interest and if a project is also closed it falls back to the fund balance so what we're doing is it's small amounts but we're scooping them up and allocating them to projects that have needs right now and again the list goes on more Convention Center projects um total of 22 million and yeah final slide um I'm going to let Jason talk about the first one but the rest are primarily our internal service um departments they also have some 40e certification and replacement of our vehicles equipment and some roofs so the last project I just want to highlight just for you know everyone's attention is the uh commonly known as The Betsy Perez home that was purchased uh by the building department uh I know there was various discussions of that but we still have it um you know being purchased by the building department at the $6.5 million there is going to be extensive work that's needed to be done there'll be um some structural work with the foundation and electrical you know to anything for its municipal use there's going to be a major cost to that we knew that and that's okay the building department has uh surplus funds that are available to uh rent at design that project so we're requesting you know $1 million through the building fund to begin that process to design and to got renovate that into a municipal institutional use and that is the end of that part and then I'll let T speak about the um the budget process and where we'll wrap up thanks so the second F meeting will be on July 12th uh we have a placeholder for the 19th but on the 12th what we plan to do is to go over our recommendations on the operating so today we just did a brief update uh we'll go into the operating in detail if there are any recommendations that come from today's meeting on the capital uh we will incorporate and give an update if if everything that we discussed today is final then there really would be no update on Capital uh and again we're hold on 19th as a placeholder we haven't had a third meeting in a couple of years but if we do need to have the third meeting we could to just finalize both the operating and the capital budgets on July 24th we'll set the maximum millage rate that is a regular commission meeting and then during the recess we'll be actually preparing the operating and capital budget books so that when you come back and you're ready to adopt the budget in September we have two public hearings you'll have all the information to review prior to those votes and then our new fiscal year starts again on October 1 and the process starts over and that's where we we have commissioner bot and then uh Mr City attorney if you can recognize after commissioner bot the commissioner this on the line sure um so how do we deal with projects that we don't know their status yet um where we might need some additional funding for next year and uh for next year's budget but we don't know what the status of that project is specifically the possibility of moving the fire station from the site where it's contemplated to um to the edge of Flamingo Park it's a difficult question um if it ends up that we have to come up with $20 million and I believe the roundabout would be basically a new $15 million project a Parks project to uh renovate and shift the uh Stadium at Flingo Park and then another 5 million to be added to um the fire station itself and I think I believe that's the roundabout numbers of that uh we do have a capital reserve fund uh which does have some funds available that would be eligible more than likely for the fire station component the 15 million for a brand new project for the stadium renovation uh there are no dollars that are identified at at this time so my understanding is that not all of those funds would be required for 2025 so we wouldn't be looking at um finding $15 million for next year magically you would probably need some design money to design that project um so we would have to identify how much that money is one area that could be uh made available um and I believe that you know we'll have our answer in in August and then September is part of the general fund Surplus that stands at 10.6 12.6 million right now you know there's many many many uh needs you know for that that may seem like a larger number but there are many needs whether it's the union contracts or other enhancements this will be a commission policy decision but that is another you know currently uh you know untapped Source uh that could be utilized I don't know what the design cost would be probably in the $12 million range I would suspect but I'm literally just off the top of my head so can I make a request please that between now and the next meeting we have those costs identified and laid out as to what would hit the budget next year um versus years going forward so that we can make an informed decision um I don't want what could be an excellent policy decision to be um cut down because of inaccurate um numbers um especially when it leaves the chambers and starts getting bandied about by residents and the fear-mongering of we need $20 million next year that we don't have that's not an accurate representation so I want it to be on the record loud and clear how much it's going to be next year and then for years going forward and you know how much it is um could be funded already versus you know whatever whatever the issues are I would like them to be laid out because that is a huge project um and I don't see it anywhere so if we could add that in that would be great sure we we will look into that and get back on what the estimated design cost would be for the the brand new park project um if I could just add Jason uh the fire station item has been on the commission agenda for a couple meetings and to the extent that we're able to uh do a rough estimate and have any information available for the commission meeting if and when the item is called we would provide that before the next uh budget briefing so um the item on the commission uh is an update of all the locations it's almost an obsolete item now because we're down to two locations right the the one that it was designed for and the one on the western edge of Flamingo Park so given that that's the case you know it's either going to be one or the other so I don't think it's um too heavy a lift to figure out the costs that would be um incumbent on the pro or attached to the project to move it to the Flamingo Park site um so that we can just Factor it in you know if it's $5 million next year it's a very different thing then people thinking that it's $20 million next year all of a sudden so that's that's the conversation to had and um I I can't even remember I think I had asked that um commission item to be pulled off the agenda anyhow um because it's obsolete in its entirety um because we only have the two sites left so I I think that we could isolate the discussion to the two sides if the commissioner would allow for that okay that's fine and just ah heads up I do plan on calling it at the commission meeting on Wednesday we had been spending a lot of time on this item month after month so the last couple months I wanted to let it consolidate get to the point where we can make a decision so I will be calling it next Wednesday Mr chair we have commissioner Suarez on the line PJ if you could please allow him to speak good evening can everyone hear me yes just a quick question uh Jason you said said that it's a million dollars design feas for the old Betsy Perez house I'm sorry okay commissioner to answer the question of is a million for the design uh no it's a $1 million for the overall project that would involve design permitting and construction uh until we really get into what the design and permitting uh would look like we would then update the construction cost but we thought let's allocate $1 million uh for now to get that going and that may be sufficient to do both the design uh and the construction thank you there any other questions thank you commissioner any other comments Rick anybody on the line no Commissioners no no further Commissioners that's yeah and Jason are there other projects um similar to fire station that have cost overruns right so when we talk about things especially that were uh uh perhaps uh allocated in the Geo bonds for instance um Byron car oil theater comes to mind uh we won't even get into the 72 Street Garage and things like that um but for some of these large uh the Filmore right where we dedicated in 2021 2022 a certain amount because of inflation or for other reasons uh cost delays these projects are going to come in at perhaps materially higher uh price tags when they are uh eventually executed where does that money come from is that the same money that we need to essentially find each year to essentially be able to top up those projects yes and you'll see that uh during the year when you have uh budget amendments uh one of the sources is the capital uh Reserve uh fund which is by commission policy the year-end Surplus in the general fund is transferred into that and that helps to fund ongoing projects that are in the construction phase so that when we have we have an estimate of the project being 20 million and then uh the bids come in and it's $24 million where do you get the four million doll from it could come theoretically from that if the commission so chose it could it could also come from um I'm sorry it come from the basis of a project is already ongoing and that's really the primary reason for the capital reserve is a project is already in construction and you get a change order because of let's say an unforeseen condition in the ground or or something along those lines it would be funded along those lines so so there is a fund to cover the expenditures for ongoing projects that need additional dollars now projects that um are still in the imagining phase or in the design phase those are going to come from your poo dollars or they may hopefully they're in an Enterprise fund that would be able to have you know additional uh debt dollars to help cover those things but those that are funded traditionally through your Pago sources that is one of the you know the difficult things uh to find those dollars and if I could ask uh in addition to commissioner BOS request for a next budget meeting if we could have an overview of some of those projects that perhaps are in the design phase and could uh be facing cost overruns because you we're going to have a lot of competing interests for uh somewhat limited and finite amount of money and uh we can't be looking at things on a year-by-year basis we have to plan you know multiple years in the future so um I just want the full menu of things where if we say okay we're going to go this path it is going to come at the expense of perhaps some other things so at least so we can have a full picture of some of these projects and you know perhaps material funding gaps if if I may I think that's that's a good idea and what we can do there is we will uh work with the departments on projects that are going to be primarily funded through a pgo source which is you know one of the like the most unrestricted ones so we'll try to identify the projects where there are unknowns in the sense that we have a project this is a budget and we suspect that there will be a budget Gap but we just don't have it yet so it's not in our numbers and they can highlight a few of those and we can have a slide or two kind of listing out uh ones that we are putting on the radar that may end up having funding gaps uh in the next uh year or two or so thank you please Mr City we have com from the public we have a couple members from the public um PJ please let Mr Mitch novic speak hi good afternoon everybody Mitch noic I'm a 36e resident and my company will be celebrating its 35th year in business in a couple of weeks when I hear that Resort tax revenue is declining when I'm reminded we have 800 new hotel units being built now at the convention center and when I hear Utility Billing rates will be rising again I get nervous I will say our budget has doubled over the past Dozen Years years we have 500 more employees in that time we also have had over way over a dozen Utility Billing rate increases in the last Dozen Years I would ask you to focus keep your eye on the money uh Jason made a good presentation I just have a couple of uh inquiries $400,000 for police rollup garage doors I don't know if that's a typo maybe it should be 40,000 or a little more 800,000 for AC replacement at historic city hall and then another 500,000 for AC renewal at historic City Hall I don't know what renewal means in in this context uh I would uh just urge you to proceed with caution and again Jason made a nice presentation today thank you thank you Mr novic could we please allow Mr Roberts to speak thank you very much um I also want to commend Jason he's a resident uh he lives south of P he has a family and and he's he's extremely professional and um uh nice to people and I I respect him immensely and Mel has done an extraordinary job considering that she was thrown into the role uh rather quickly so thank you for your efforts both of you um I do have issues and the biggest issue um I think Mitch talked about a dozen years but over the last two years um our budgets including sewer um has increased from 7 approximately 700 million to 1 billion that's a 40% increase in 2 years um that's you know uh triple the inflation rate uh in that period of time um and I'm concerned that that uh that rise will continue in future years and it will it will impact the city substantially when the downturn happens because um ADM rates will have to go up and um sewer rates are are are just going through the roof and um residents can't afford that uh it affects uh renters it affects home owners it affects um you know the hotels um so you know we're going to we're going to face the day where we're going to be in a serious problem and um I would hope that from 10,000 F foot perspective rather than um getting into the weeds that we limit uh growth in budgets to overall the 1 billion to um CPI plus whatever additional new construction value there is 1 or 2% a year um so that uh we keep our budgets within uh the um the 2024 going forward um after inflation um and and uh it really concerns me um how spending is done and the last thing I want to talk about is yes Mitch brought up $400,000 doors uh we talked about um the cameras at the conventional CER closeting thank you Mr Roberts we also have um Jeffrey Burk out thank you uh Commissioners Jeff burkhow 590 Lake View Drive I'm here today representing the Nautilus area Orchard Park and Lake View homeowners associations in 2014 and 15 we negotiated a covenant with the developers of the property that was then known as the Miami Heart Institute and is now known as The Ritz Carlton Residences a condominium the developer proferred a covenant to the city commission and the homeowner associations at the time of project approval in order to accommodate the new residential development the commission accepted this Covenant the Covenant became part of the zoning conditions governing the project and they include numerous issues including limiting the number of docks at the project to 24 but the ability to go up to 41 if certain conditions were met such as securing a regular law enforcement Patrol of Surprise Lake for four times a day on weekends and holidays and the thought was developer you get 24 docks as a matter of right if you want to exceed that number then help us mitigate the impact of the additional docks and the traffic on the lake we recently learned that the developer had exceeded the limits of the Covenant the city hadn't enforced it and they built 36 docks without complying with the Covenant condition misss since then we've been in discussions with the city Administration uh the richz Carlton and condo representatives and police department staff to see how we could collectively secure the regular Marine Patrol that was required by the Covenant the police department has told us that they don't currently have the resources on a regular or overtime basis to provide the patrol so the three homeowner associations are here today to ask you to budget funds for additional Marine Patrol and the boat which will service the entire city and also provide the regular Patrol required by the Covenant accepted by the city as part of the project approval the Ritz Carlton Representatives have told us they are agreeable in concept to paying their fair share of that funding we recognize that you have a lot of competing projects in needs but we ask you to help us on this on this proposal and this request so we don't have to initiate proceedings with the city manager to ask that those permits for the excess slips be revoked thank you Mr bur thank you Mr bur thank you if I because this is the first time this is coming on my radar so it was the richz Carlton that essentially they had a bilateral agreement with the homeowners association or this was through through the city this was through the city and the homeowner associations the city and the homeowner associations are the beneficiaries of the Covenant and can enforce the Covenant it was part of the project approval when the project was rezoned and the comp plan was amended in 2015 so essentially the developer exceeded what was agreed to and now that is straining our city resources because incremental resources are needed uh to a they respond to Residents concerns because of the incremental commercial even spaces well it's not really commercial it's it's uh there's 12 more slips that are utilized for by the residents they're owned uh by individual residents uh we don't want to impact those residents who bought their slips thinking they had good title to them uh but quite frankly the Developers screwed up the city screwed up in allowing them to build 36 slips and the rits and the condo association screwed up and the homeowners associations are bearing the impacts and it needs to be mitigated and we're trying to work this out without going into litigation and asking for permit revocation proceedings and the developer that you mentioned screwed up that was the Ritz Carlton it was lionart that was the uh the developer they were the developer and uh they entered into management agreements with the rich Carlton that still manages the agreement and then they cond condominium the property and now it's controlled by the condo association Madam city manager thank you so much so this is my understanding that staff has been in various discussions uh including our Police Department I think our planning department as well and some of our enforcement departments uh I have not yet been briefed on the status of these discussions and would be happy to provide an update to the mayor and City commission as to uh what the findings have been and what course of action we would recommend so happy to continue the discussion and if it deemed necessary uh we would include on the enhancement request uh through the budget process uh should we need additional services please may ask a question please commission um forgive me for being dumb about this but if a developer um overstepped his bounds um and is responsible for the security for all intents and purposes that he um agreed to why is it not incumbent on the developer to fund that enhanced security that's an excellent question um the developer is out of the picture uh we're talking to the people who now own the and control and manage the 36 slips they may need to turn around and make a claim against the developer uh I'm just not you know I I don't know ultimately who responsibility it is we're just trying to fix the situation now because it it seems like somebody um in in honest mistake or knowingly um overbuilt took their money and left and now we're asking residents to use their tax dollars to um provide enhanced security for private property which doesn't seem to I don't know maybe that's how things happen normally it doesn't seem to make sense to me um if there needs to be enhanced security then it would seem like the condominium um could provide that as part of their condo fees I I'm not sure this is not my my Lane but this just seems wildly weird to me so let me just tell you what I've heard informally from the administration is that for the first year the additional Marine Patrol and a boat would cost approximately 500,000 subsequent years it would cost approximately 400,000 in round numbers because there's no more need for an additional boat and that the fair share attributable to the condo association or Ritz or the developer uh for the four times a day for weekends and holidays would be 225% of the total approximately but I that's informal and I'm trying to get that in writing from the administration I mean four times a day in a very quiet area seems like a lot I mean I I I live uh overlooking the water I'm very lucky to to do that and I and I directly over the water and I see a fireboat go out once in a blue moon but I don't see people patrolling the marina at my condo four times a day that's you're right and during the week it is very quiet during the weekend what we see are the commercial traffic from uh from the the jet ski operators and the tourboat operators Etc that go through uh Surprise Lake from the inra coastal Coastal to bis game Bay and back so there's a significant significantly more traffic on weekends and holidays during the week we don't need it so when um Madam city manager when you work with the staff to present an update um you know I from a holistic standpoint I know we could use an additional uh boat patrolling all of our water way um it it seems like um this is very specific and I I just want to understand how that works in the context of our entire city and what the other boats do like what the ratio is of time spent in particular neighborhoods of our existing vots um and commissioner it's not necessarily that that would be the recommendation I do want to have an opportunity to evaluate and assess the facts and if uh the administration felt it was warranted then we would bring that forward in some shape or form and provide the additional details but I'm not saying that that would be the recommendation I'm also really curious I mean it's not like they overbuilt by one dock it's what were the 50% by 50% yeah that that seems like a pretty major thing for a code compliance not a code a building uh person who's signing off on a project to miss um so I'm really curious as to how we find ourselves in this situation and I know it was done years ago before most well when was it completed I would say it was completed uh four or five years ago so before most of us or all of us um were were in charge if you will not that any of us are actually in charge but we like to maintain that illusion um but I mean that's that's a huge I mean it's like oops we just added an EXT story to our building through the chair I me the the Covenant actually allows to go up to 41 um but there were certain conditions as Mr burkow said earlier so they they were allowed 24 without those conditions and then they could go up as high as 41 with specific conditions which Mr brookal has brought up here right but they they haven't satisfied the the conditions correct they built but they didn't satisfy the condition they subsequently installed the required signage after we discovered the issue and pointed it out uh we've been working collaboratively with them since then to try to get additional Marine Patrol whether on a regular or overtime basis it you know the police department has been clear they don't currently have the resources so that's why I'm here today yeah thank you Mr bro I I mean even more troubling when you mentioned the developer is now out of the picture because we want to help the residents in these neighborhoods they're such a strong fabric of our community uh but it just it's very tough to go and say well developer essentially took advantage of our entire community and now that cost is being borne by some of our residents in north beach or South Beach uh when he is essentially you know kind of uh Cut and Run um so Madam city manager if we can get an update uh and we look to help the community but hopefully it's not at the expense of our taxpayers sir Mr chair M Mr Mayor can I hand the re over to you yes unless there's anything else uh first of all I wanted to thank commissioner magazine for your leadership in the uh as the chair of the finance and budget committee um I you're doing a great job so I appreciate you uh leading us through and Jason and tamaa not just at these meetings and Jason's Jason's pointing at Tama giving her the credit which shows you what a great teamwork that you both have um there's a lot that goes on behind the scenes and there really is not much more important we talk about public safety and the quality of life but this is where it happens having the fiscal responsibility the stewardship of our taxpayers funding and the trust that they have and we have a smart resident base they follow they know uh and very much appreciate the work that's put in by our whole commission and and the administration to get us to this point and hopefully we'll we'll uh will soon be finalizing the budget as well thank you thank you uh mayor members of the the commission I I think we have uh the feedback and and interest that we uh need to move forward we will be meeting again on July 12th to kind of go through this again with the July 1st uh n final numbers update on the operating budget and then going through uh all of the enhancements uh from from the operating side and I think you asked for a couple of data points and we will make sure to have those uh a couple slides in that presentation also U but if nothing else I think we are good thank you for all the staff's work that's going into this thank you okay