[a. Approve staff recommendation in response to request to reduce lot clearing fees in the amount of $9,002.31 against 1004 Avenue G, Fort Pierce, FL, Parcel ID# 2404-821-0001-000/4, owned by Leroy Belonce, by waiving the interest, penalties and a portion of the administrative costs in the amount of $5,656.58, leaving a balance due of $3,345.73 payable in 60 days.]

>> ITEM 11 A APPROVE STAFF RECOMMENDATION IN RESPONSE TO A REQUEST TO REDUCE LOT CLEARING FEES IN THE AMOUNT OF $9,003.31 AGAINST 1004 AVENUE G. FORT PIERCE FLORIDA OWNED BY LEROY BELONCE IN THE AMOUNT OF $5,556.58 LEAVING A BALANCE OF $3,345.73 PAYABLE IN 60

DAYS. >> THANK YOU FOR BEING HERE.

SO I REVIEWED THIS PACKET AS MOST LIKE I'M SURE YOU GUYS HAVE AS WELL. WHEN I LOOKED AT THE REDUCTION OF LIENS THIS IS NOT SOMETHING WE HAVE NOT DONE BEFORE WHERE WE HAVE OBVIOUSLY DONE THIS BEFORE.

A COUPLE THINGS STOOD OUT NUMBER ONE THIS SEEMS LIKE A CASE THAT'S BEEN ONGOING FOR SOMETIME AND IT APPEARED TO ME THAT SOMEONE PURCHASED A PIECE OF PERIOD OF TIME THAT HAD TAX LIENS ON IT, OKAY. SO DUE DILIGENCE PART THERE WAS NOT THERE. WE HAVE PROGRAMS IN PLACE HOPEFULLY THAT WILL BEGIN TO ADDRESS THAT AND GIVE THEM PATHWAYS. BUT WHEN I LOOKED AT THE BREAKDOWN ON THE WORK SHEET OF THE FEES I HAD A CONCERN ABOUT ONE OF THOSE FEES ON THERE.

TO ME IT APPEARED MORE ADMINISTRATIVE THAN A HARD COST. SO THAT FEE WAS THE FEE FOR $700, I THINK IT WAS ADMINISTRATIVE COSTS IS HOW IT'S TITLED IN THAT PARTICULAR POINT.

I AM OF THE TRUEATION THAT WHEN WE ARE MOVING THE HARD COSTS THAT THIS, IN MY OPINION, DOES NOT QUALIFY FOR THAT. NOW, THERE'S ANOTHER FEE THERE THAT TALKED ABOUT THE 20 LIENS COURT FILING COSTS THAT TO ME WOULD BE SOMETHING THAT'S PHYSICALLY TANGIBLE THAT'S DONE THAT IS A HARD FEE SOICH WOULD LIKE TO HAVE A DISCUSSION WITH MY COLLEAGUES ABOUT THAT AMOUNT AND CONCERN WHICH IS AROUND $700.

WHICH WOULD FURTHER REDUCE THE AMOUNT PAYABLE BY THAT AMOUNT SPECIFICALLY. TO LOOK AT IT.

>> I WOULD LIKE TO ASK MR. REYES A QUESTION.

WERE THOSE ADMINISTRATIVE COSTS SOFT IN YOUR MIND?

>> THEY ARE SOFT COSTS, YES, MA'AM.

>> OKAY, THANK YOU. >> ANY DISCUSSION.

>> MADAM MAYOR. JUST ONE QUICK QUESTION IS IT THE NUMBER OF LIENS AND OWNERS NAMED IS THAT THE LINE ITEM THAT WE'RE TALKING ABOUT?

>> IT'S EXACTLY $700. >> THE ONE I SAW FOR $700 THAT'S THE ONE I THINK IT'S SEVEN TIMES 100 ON THE FORM.

YEAH. >> CAN YOU DESCRIBE FOR ME THE AMOUNT PER LIEN AND DESCRIBE THE LIEN PROCESS TO

ME? >> GOOD EVENING MADAM MAYOR AND COMMISSIONERS. THIS WORK SHEET IS A NEW WORK SHEET WE'RE TRYING TO ADOPT DIFFERENT WAYS TO HELP GIVE THE INFORMATION TO THE COMMISSION IN A WAY THAT'S UNDERSTANDABLE WITH HOW WE ARE MAKING OUR RECOMMENDATIONS. THESE ARE ALL LOT CLEARING LOOENCE. THE OWNER PURCHASED THE PROPERTY BY A TAX DEED SOME 2005.

WHEN HE PURCHASED IT THERE WERE 16 LIENS ON THE PROPERTY. SINCE HE'S OWNED IT AN ADDITIONAL SEVEN LIENS WERE PLACED ON THE PROPERTY IN HIS NAME. WHEN A LOT CLEARING LIEN IS FILED IT AUTOMATICALLY RECEIVED $100 ADMINISTRATION CHARGE THAT'S PART OF THE PROCESS.

SO IF THE LOT CLEARING COSTS $250, THE LIEN IS PUT IN PLACE FOR $350 PART OF THE LIEN.

THEN IT ALSO ACCUMULATES INTEREST AND PENALTIES.

THAT ADMINISTRATIVE COST INTEREST AND PENALTIES ARE ALL SOFT COSTS. WHAT STAFF IS RECOMMENDING IS BECAUSE THIS GENTLEMAN, THESE LIENS WERE IN HIS NAME THAT THAT FULL ADMINISTRATION COST THAT WAS PART OF THE LIEN STAY IN PLACE.

>> SO THAT WAS THIS PERSON WHO INCURRED IT?

>> YES. >> YES, MA'AM.

>> THAT'S WHY STAFF IS RECOMMENDING THE FULL ADMINISTRATION CHARGES BECAUSE THESE LOOENCE WERE IN HIS NAME. WHEREAS THE -- LIENS WERE IN HIS NAME. WHERE AS THE LIENS THAT WERE IN EXISTENCE HE WOULD JUST BE RESPONSIBLE FOR THE

RECORDING FEES. >> WHICH IS 16 AT $20.

>> THERE'S A FUNCTION WITHIN CITY STAFF THAT HAS TO DO SOME PAPERWORK WITH THOSE AND PROCESS EACH TIME.

EACH TIME THERE'S SOME FUNCTION OF STAFF TO

PERFORM. >> YES, SIR, WHEN WE ISSUE A LOT CLEARING LIEN EVERY NOTE IS SENT CERTIFIED MAIL THERE'S CHARGES FOR THAT. THERE'S THE COST FOR THE INSPECTIONS, THE PHOTOS, THE FOLLOW-UP PLUS, THE FILING FEES. THERE IS ADDITIONAL ADMINISTRATION FEES THAT GO ALONG WITH PROCESSING A LOT

CLEARING LIEN. >> ARE THOSE COVERED IN THIS

[00:20:01]

LINE ITEM OR SMV ELSE? >> THAT'S WHERE THIS IS COVERED -- OR SOMEWHERE ELSE.

>> THAT'S WHERE THIS IS COVERED.

>> AGAIN BUT IT'S STILL A KOSTITSYN THAT'S OCCURRED WITH THAT, RIGHT? -- SOFT COST THAT'S OCCURRED WITH THAT MAYBE HOW IT'S DELINEATED HERE.

THIS IS A NEW FORM AND IT CAUGHT ME WHEN I LOOKED AT IT AND I'M LIKE, I THOUGHT WE WERE DOING SOMETHING DIFFERENT HERE, RIGHT. HARD COSTS HAVE ALWAYS BEEN EXPLAINED AS PHYSICAL WORK THAT WE HAVE TO CONTRACT OUTSIDE OF OUR PER MAT -- PERIMETERS AND CONTROL.

I HIRE SOMEONE THAT'S HARD COST THIS IS INTERNAL STAFFING HERE THAT DID DO A FUNCTION, HOWEVER, TO ME THAT'S MORE OF A SOFT COST BECAUSE THOSE ARE EMPLOYEES

OF THE CITY OF FORT PIERCE. >> YES, SIR.

>> COMMISSIONER PERONA. >> WHEN WE TALK ABOUT SOFT COSTS, AND WE TALK ABOUT ABATING THOSE COSTS ALL THE TIME IN MY MIND THOSE ARE COSTS THAT HAD NOTHING TO DO WITH THE PERSON WHO CURRENTLY OWNS THE PROPERTY.

WE'VE TALKED ABOUT BEING ABLE TO CHARGE FOLKS THAT HAVE CAUSED CODE VIOLATIONS BECAUSE IT DOES, EVEN THOUGH THE EMPLOYEES ARE CITY EMPLOYEES, THEY COULD BE DOING SOMETHING ELSE FOR THE CITY OF FORT PIERCE INSTEAD NOT ONE, NOT TWO, NOT THREE, NOT FOUR, NOT FIVE, NOT SIX BUT SEVEN TIMES DID THE SAME THING OVER AND OVER AGAIN.

YOU MAY CALL THEM SOFT COSTS BUT IN MY MIND THEY'RE PART OF THE HARD COSTS BECAUSE WE HAVE TO PAY THAT EMPLOYEE TO BE ABLE TO GO THROUGH THE ENTIRE PROCESS OVER AND OVER AND OVER AND OVER AGAIN TO BE ABLE TO GET SOME TYPE OF COMPLIANCE. IF THIS THING, I MEAN IT'S JUST, IN MY MIND, I CAN'T GET TO THE POINT WHERE I CALL THEM FLUFFY SOFT COSTS THAT WERE INCURRED BY SOMEONE ELSE THAT WE CAN SIT THERE AND ABATE.

THESE ARE PART OF THE COSTS OF THIS PERSON, WHOEVER OWNED THIS PROPERTY TRYING TO COME INTO COMPLIANCE OVER A PERIOD OF TIME AND CODE ENFORCEMENT DID EXACTLY WHAT THEY WERE SUPPOSED TO DO. I THINK WE SHOULD FORWARD THAT $700 TO CODE ENFORCEMENT FOR THEIR TIME,

TIME AGAIN AND TIME AGAIN. >> COMMISSIONER GAINES.

>> I HAVE READ EVERYTHING AND I'M LIKE ANOTHER COMMISSIONERS, SINCE I HAVE BEEN UP HERE I'VE SEEN COSTS BEEN WAIVED WHERE WE WAIVED THOUSANDS OF DOLLARS, THOUSANDS AND THOUSANDS OF DOLLARS OF COSTS AND IT WAS BECAUSE OF WHAT WE CONSIDERED AT THE TIME SOFT COSTS INTERNAL COSTS FILING FEES AND STUFF LIKE THAT AND SOFT COSTS. LIKE COMMISSIONER JOHNSON SAYS, MY UNDERSTANDING OF HARD COSTS WAS IF WE LITERALLY SENT SOMEBODY OUT THERE TO CUT THE GRASS, TAKE DOWN A BUILDING OR DO SOMETHING.

IF NOW WE'RE SAYING THAT YES, THAT'S HARD COST BUT NOW WE NEED TO LOOK AT THESE SOFT COSTS OF PEOPLE FILING FEES OR FILING REPORTS OR WHATEVER THAT ARE HARD CAUSEDVILLE A PROBLEM GOING BACK TO SOME OF THE OTHER THINGS WE'VE ALREADY WAIVED AND FORTH AND PICKING AND CHOOSING WHEN WE'RE DECIDING HARD COSTS OR SOFT COSTS.

SO I JUST NEED A CLARIFICATION OF WHAT'S GOING TO BE A HARD COST, WHAT'S GOING TO BE A SOFT COST AND I DON'T KNOW IF WE CAN JUST GET IT AND STICK TO IT AND WE GO FROM THERE. MY SECOND QUESTION IS, I UNDERSTAND THAT SOME OF THESE LIENS WERE IN HIS NAME AFTER HE BOUGHT THE PROPERTY DO.

WE KNOW IF IT WAS -- DO, WE KNOW IF HE IS ELDERLY THAT HE COULDN'T GET THERE OR ANYTHING LIKE THAT?

>> COMMISSIONER, I ASKED FOR MORE INFORMATION.

I E-MAILED WITH THE SISTER WHO IS PROCESSING THIS TRYING TO GET MORE INFORMATION AND I RECEIVED NOTHING. BECAUSE I DID TRY.

I PUT THAT IN THE NOTES OF THE WORK SHEET.

DY TRY TO GET MORE E-MAIL COMMUNICATION BUT I DIDN'T RECEIVE ANYTHING TO PROVIDE FOR YOU.

>> I THANK YOU FOR THAT. I KNOW LAST TIME.

I THANK YOU FOR THAT. THAT'S MY CONCERN COMMISSIONERS AND MADAM MAYOR, I JUST NEED A CLEAR DEFINITION OF WHAT WE'RE GOING TO CALL HARD COSTS AND SOFT COSTS IF THERE'S GOING TO BE TWO CATEGORIES OF SOFT COSTS WE NEED TO EXPLAIN THAT GOING FORWARD FOR EVERYBODY TO BE ON THE SAME STAGE.

>> IT SEEMS LIKE WE'RE CONFLATING A COUPLE OF ISSUES HERE. WHEN WE WERE TALKING ABOUT THE WAIVER OF COSTS FOR THE INFILL PROGRAM, FOR INSTANCE, WE BUILT A CASE THAT SAID IF IT WAS INCURRED, THAT THE

[00:25:03]

CURRENT PROPERTY OWNER COULD NOT BE THE PERSON WHO HAD THE LIENS. AND SO, SO I THINK WE'RE TALKING ABOUT WHEN WE SAY -- WE'VE ALWAYS WAIVED SOFT COSTS. I THINK WE'RE TALKING ABOUT TWO DIFFERENT THINGS. I THINK MAYBE THAT'S OUR MISTAKE. TALKING ABOUT SOFT COSTS VERSUS HARD COSTS AND MAYBE WE NEED TO HAVE A BETTER DEFINITION OF COSTS THAT ARE INCURRED BY PRIOR OWNERS VERSUS COSTS WITH THE CURRENT OWNER.

BECAUSE I SEE A DIFFERENCE THERE.

I SEE A DIFFERENCE THERE. >> MADAM MAYOR YOU ARE RIGHT IT CLARIFIES IT AT THAT POINT.

BUT TO LOOKING AT THIS AND JUST FOLLOWING THE LOGIC THAT'S WHERE, TO ME, IT'S ONE OF THESE GRAY AREAS THAT WE NEED TO FLUSH OUT AND DISCUSS.

WE NEED TO HAVE AN UNDERSTANDING.

>> I AGREE. >> BECAUSE THIS COULD SET A PRECEDENT. IT COULD BRING UP OTHER PATHS AND I'M NOT COMFORTABLE WITH THIS.

EVEN IF WE PULL THIS OFF MAYBE HAVE FURTHER DISCUSSION AND BRING IT BACK I'M NOT COMFORTABLE WITH IT BASED ON WHAT WE'RE SAYING AND OUR INTERPRETATION OF THIS. AT SOME POINT I WILL ASK THAT LEGAL MAY HAVE TO WEIGH IN ON THIS AS WELL.

I THINK WE NEED TO REALLY CLEARLY UNDERSTAND THIS BECAUSE THERE ARE PEOPLE THAT'S LISTENING TO THIS THAT HEAR THIS THAT HAVE BEEN THROUGH THIS PROCESS BEFORE. AND I DON'T WANT TO GO DOWN A PATH WHERE IT'S NOT REAL CLEAR ABOUT HARD COSTS, SOFT COSTS. YES, I'M DONE.

>> MR. MIMPS. >> MADAM MAYOR, MEMBERS OF THE CITY COMMISSION. YOUR DIRECTOR OF COMMUNITY RESPONSE WILL BE PRESENTING TO YOU A RECOMMENDATIONS FOR AN IMPROVED LIEN REDUCTION PROGRAM.

WE'VE TALKED ABOUT THIS -- >> LATER IN THE AGENDA,

RIGHT? >> NO.

NO. NO.

THIS IS GOING TO BE APRIL 11TH NEXT MONDAY.

AND AT THAT TIME, MRS. REYES IS GOING TO LAY OUT WHAT OUR CURRENT STATUS IS THEN METHOD AND MEANS TO IMPROVE THAT TO INCLUDE TRIGGERING MECHANISMS AND ALSO WAYS TO REDUCE UTILIZING OUR SPECIAL MAGISTRATE, WHAT COMES TO YOU THE APPEALS PROCESS, ALL OF THAT GOOD STUFF.

SO IT MAY BE ADVANTAGEOUS TO HAVE THIS DISCUSSION NEXT MONDAY AND IF YOU -- YOU KNOW I HATE PUTTING THINGS OFF, BUT IF YOU WOULD LIKE TO HAVE A TRUE DISCUSSION WITH HOW WE'RE GOING TO MOVE FORWARD IN THE FUTURE WE CAN TABLE THIS FOR APRIL 18TH AND THEN HAVE THE DISCUSSION APRIL 11TH AND BY THAT TIME WE WILL ALL HAVE A GENERAL CONSENSUS AS TO HOW WE MOVE FORWARD.

>> MADAM MAYOR I'M COMFORTABLE WITH THAT.

I THINK THAT'S WHAT I'M ASKING MY COMMISSION.

LET'S JUST BE CAREFUL HERE. THIS IS NOT THAT MUCH.

WE HAVE THAT CONFERENCE WORKSHOP.

WITH THAT MADAM MAYOR I MOVE THAT WE TABLE ITEM 11A TILL

A DATE CERTAIN APRIL 18TH. >> POSTPONE IT TO APRIL

18TH. >> I'LL SECOND IT.

>> ALL RIGHTY. ANY OTHER DISCUSSION.

CALL THE ROLL PLEASE.

[a. Legislative Hearing - Ordinance 22-011 - Final Budget Amendment of the General Fund 2020-21 Budget. SECOND READING]

>>> OKAY. NEXT WE HAVE ORDINANCE 22-011. AN ORDINANCE AMENDING THE 2020-2021 BUDGET OF THE CITY OF THE FORT PIERCE, FLORIDA BY INSERTING A SCHEDULE ATTACHED HERE TO DESIGNATED AS THE 2020-2021 FINAL BUDGET ASSESSMENT TO THE SAID SCHEDULE PROVIDES FOR INCREASES AND/OR DECREASES IN REVENUES AND APPROPRIATIONS IN THE GENERAL FUND AND PROVIDING FOR AN EFFECTIVE DATE.

THIS IS THE SECOND READING. >> THIS IS THE SECOND READING. ANYONE WISHING TO ADDRESS THE COMMISSION PLEASE COME FORWARD.

SEEING NO ONE I WILL CLOSE THE PUBLIC HEARING AND

ENTERTAIN A MOTION. >> MADAM MAYOR I MOVE THAT

WE APPROVE ORDINANCE 22-011. >> RELEASE A MOTION AND A SECOND. CALL THE ROLL PLEASE.

[a. Consideration of FPUA's FY2020-2021 Final Budget Amendment]

ORDERED ITEMS SO WE WILL BEGIN WITH THE CONSIDERATION OF FPUAS, FY 2020-2021 FINAL BUDGET AMENDMENT.

ALL RIGHTY MR. MIMS DO DO YOU HAVE ANY LEAD IN TO THAT. WELCOME, FPUA.

MR. JAFFER CISNEROS AND COMPANY.

>> MICHELLE HARRIS. >> EXCUSE ME.

THANK YOU, MADAM MAYOR HUDSON.

GOOD AFTERNOON COMMISSIONERS, MR. MIMS, MS. COX, MS. EARLY IT'S MY PLEASURE TO BE HERE TODAY.

BEFORE I GET STARTED I WOULD LIKE TO TAKE SOME TIME JUST TO THANK THE CITY COMMISSION FOR PARTICIPATING IN THE JOINT WORKSHOP. IT WAS A GREAT EVENT AND I THAT EVERYBODY FROM THEIATED COMMISSION PARTICIPATED ESPECIALLY AS WE TRY TO HELP THE CITY GROW.

THANK YOU AGAIN. TODAY MICHELLE HARRIS OUR

[00:30:01]

FINANCE MANAGER WILL BE JOINING ME TODAY TO PRESENT THE ITEMS TODAY. WE WILL PRESENTING AGENDA ITEMS 13 A AND B. THIS INCLUDES THE ACCEPTANCE OF FY 20-2021 BUDGET AND REPORT FOR FY 2021.

THIS IS AN YUG PRESENTATION BY STAFF TO THE CITY COMMISSION AS REQUIRED BY CHARTER TO APPROVE THE AUDIT OF ANNUAL COMPREHENSIVE FINANCIAL REPORT.

TO THE SEE MUST BE COMPLETED WITHIN 60 DAYS OF APPROVAL.

ADOPTED IN MARCH. A COUPLE IMPORTANT METRICS THAT I WOULD LIKE TO HIGHLIGHT ON PAGE 24, YOU WILL SEE THAT UNRESTRICTED CASH HAS DIPPED FROM OVER LAST YEAR FROM $24 MILLION TO $20 MILLION.

IF YOU LOOK OVER A TWO YEAR PERIOD IT DIPPED FROM $30 MILLION TO $20 MILLION. THIS IS ATTRIBUTED TO MORE CONSTRUCTION OF THE REPLACEMENT OF OUR AGE AND INFRASTRUCTURE AND CAPITAL EXPANSION TO HELP THE CITY OF FORT PIERCE CONTINUE TO GROW.

ON AGE 55, YOU WILL SEE -- ON PAGE 55 YOU WILL SEE DISTRIBUTION TO THE CITY WHICH WILL BE $6.524 MILLION AN INCREASE $88,000 OVER LAST YEAR.

IF YOU LOOK AT IT OVER A SIX YEAR PERIOD THE DISTRIBUTION TO THE CITY HAS INCREASED FROM $5.9 MILLION TO $6.5 MILLION. MICHELLE WILL HIGHLIGHT THAT AS PART OF HER PRESENTATION. PAGE 83, OUR DEBT SERVICE COVERAGE IS A $3.54 FACTOR THIS IS A RATIO OF NET OPERATING INCOME OVER DEBT SERVIE.

THIS IS AN IMPORTANT BENCHMARK USED TO MEASURE THE ABILITY TO PRODUCE SUFFICIENT CASH TO COVER OUR DEBT PAYMENTS. OUR OUTSTANDING DEBT CAN BE FOUND ON PAGE 892. AGAIN THANK YOU FOR YOUR TIME BEFORE I TURN IT OVER TO MICHELLE I WOULD BE HAPPY ANSWER ANY QUESTIONS THAT YOU HAVE.

>> WHAT IS YOUR CURRENT FINANCIAL RATING?

>> A+ AND A, MICHELLE IS THAT RIGHT?

>> THAT'S WHAT -- >> IT'S REALLY HARD FOR A COASTAL UTILITY, IF I REMEMBER, REALLY HARD FOR A COASTAL UTILITY TO HIT AN A LET ALONE AN A OR A+.

WHAT'S OUR DAYS IN CASH? >> I THINK THAT'S PART OF

MICHELLE'S PRESENTATION. >> AT THE END OF SEPTEMBER

30ING IT'S ABOUT 95 DAYS. >> AND BOND COVENANT LIKES

90. >> BEST PRACTICES IS 90.

>> GOOD JOB. >> EVERYBODY LIKES TO BE

MORE COMFORTABLE. >> SO, MICHELLE.

>> MS. HARRIS. >> GOOD EVENING MAYOR HUDSON, COMMISSIONERS MR. MIMS. I WOULD LIKE TO PROVIDE YOU WITH A REVIEW OF THE FINANCIAL OPERATING RESULTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30TH 2021.

THE INFORMATION BEING PRESENTED IS THE SAME IT'S AMENDING THE FINAL BUDGET FOR FPUA AS WELL AS THE ANNUAL COMPREHENS H.I.V. FINANCIAL REPORT.

THE FINAL BUDGET AMENDMENT REPRESENTS FINAL -- THE FINAL BUDGET BROUGHT AN INCREASE IN THAT POSITION OF $9.9 MILLION MAINLY AS A RESULT OF LOWER THAN ANTICIPATED COSTS ASSOCIATED WITH PURCHASES PER RETAIL AND PENSION EXPENSE. FINAL REVENUES CAME IN ABOVE THE AMENDED EXPECTATIONS BY 2% WHILE THE EXPENSES WERE LOWER BY 6.5%. SOME OF THE YEAR TO DATE CHANGES THAT WE EXPERIENCED IN FISCAL YEAR 2021 OVER THE PREVIOUS YEAR WERE OUR YEAR TO DATE OPERATING INCOME WAS HIGHER BY 2.2 MILLION. WHILE OUR OPERATING REVENUES WERE GREATER BY ABOUT 3.6 MILLION.

AN OFFSET OCCURRED THROUGH HIGHER EXPENSES FOR THE FISCAL YEAR. OPERATING EXPENSES AT A TOTAL OF 92.6 MILLION WERE GREATER BY 1.4 MILLION OVER PRIOR YEAR PRIMARILY AS A RESULT OF INCREASED EXPENSE FOR PURCHASE POWER. CAPITAL CONTRIBUTIONS ALSO ADDED TO THE TOTAL INCREASE IN THAT POSITION WITH AN INCREASE OVER LAST FISCAL YEAR OF 2.7 MILLION.

CLOSING OUT THE YEAR WITH THIS LOOK AT THE YEAR OVER YEAR CHANGES IN OUR FINANCIAL PICTURE WE HAVE ADDED 9.9 MILLION TO OUR NET POSITION.

ELECTRIC OPERATING REVENUES INCREASED 1.7%.

BOTH CONSUMPTION AND OPERATING REVENUES WERE UP SLIGHTLY BOTH INCREASED BY 2%.

AS A RESULT OF HIGHER KUNCHGS WAS UP 2.8% FROM LAST YEAR. THROUGHOUT THE FISCAL YEAR THE AMENDED BUDGET, AMENDED BUDGET THE ACTUAL INCREASE FROM THE PRIOR YEAR WAS AN OVERALL ESCALATION IN KUMPTHS WASTE WATER OPERATING REVENUES WERE 5.4% AND UNITS BILLED WERE UP 5.5%.

AS I PREVIOUSLY MENTIONED WITH WATER SYSTEM WASTE

[00:35:05]

WATER PATTERNS WATER CONSUMPTION ALSO BRINGS AN INCREASE IN WASTE WATER BILLINGS.

HIGHER BY 7.9%. 9.2% GREATER THAN THE PRIOR YEAR RESULTING FROM HIGHER CONSUMPTION.

LIVING EXPENSE 6.5% BELOW WHAT WAS PROJECTED IN THE AMENDED BUDGET. THIS IS PRIMARILY DUE TO COST OF PURCHASE POWER THE ACTUAL COSTS WERE MUCH MORE FAVORABLE THAN WE EXPECTED. 3.7 MILLION BELOW PROJECTED BUT 1.4 MILLION HIGHER THAN LAST YEAR.

THE SLIDE SHOWS THE TREND ON THE CALCULATION ASOFF HER MENTIONED. THIS CALCULATION IS A RATIO OF ROLLING 12 MONTH AVERAGE TO OUR CURRENT DEBT SERVICE.

12 MONTHS ENDED OUR DEBT SERVICE RATIO WAS 3.45 TIMES COMPARED TO 3.16 OF LAST YEAR.

OUR BOND COVENANCE REQUIRE US TO BE AT 1.25 TIMES.

IN ADDITION AS MENTIONED UA RESOLUTION WE MUST MAINTAIN AT LEAST 45 DAYS OF CASH WE ARE ABOUT 95 DAYS SEPTEMBER 30TH. THE COMPILATION FOR THE DEBT SERVICE CAN BE FOUND ON PAGE 83 AS PREVIOUSLY STATED.

1.25 IS THE MINIMUM WE DON'T WANT TO BE ANYWHERE CLOSE TO THAT. THE DISTRIBUTION THAT ARE SUBJECT TO THE 6% DISTRIBUTION IS A LITTLE OVER 6.5 MILLION. THIS IS UP 2.9% OVER THE AMOUNT CALCULATED FOR LAST YEAR.

THAT CALCULATION CAN BE FOUND ON PAGE 55.

WE HAVE PROVIDED YOU WITH A LITTLE BIT OF A HISTORY SO YOU CAN SEE THE STEADY TRENDS YOU CAN SEE THE STEADY TREND GOING UP. THAT HAS ADDED TO THE INCREASE OF CITY DISTRIBUTION FROM YEAR TO YEAR. SO WE ARE HERE THIS EVENING TAKING APPROVAL OF TWO ITEMS. WE'RE FIRST REQUESTING APPROVAL OF FPUA FINAL BUDGET AMENDMENT FOR FISCAL YEAR 2021 AND WE'RE ALSO REQUESTING APPROVAL OF THE AUDIT FOR THE FISCAL YEAR ENDED SEPTEMBER 30TH, 2021, AS BEING THE UNMODIFIED OPINION OF THE AUDITERS THAT FPUA FINANCIAL STATEMENT FOR THE FISCAL YEAR-ENDING SEPTEMBER 30TH, 2021 ARE FAIRLY PRESENTED IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND ACCEPT THE FILING OF SUCH AUDIENCE WITH THE CITY OF FORT PIERCE THE SEAMS TO BE KEPT TOGETHER ON FILE PURSUANT TO THE CITY CHARTER.

I'LL BE GLAD TO ANSWER ANY QUESTIONS THAT YOU HAVE ON THOSE FINANCIAL STATEMENTS AND THE FINAL BUDGET

AMENDMENT. >> COMMISSIONER C. JOHNSON.

>> JUST A COUPLE COMMENTS AND QUESTIONS.

WE TALKED ABOUT THE BOND RATING AND WANTING TO BE ABOVE THAT YOU LIKE TO MAKE THINGS PRETTY PRACTICAL FOR PEOPLE TO UNDERSTAND. THE BOND RATINGS BASICALLY TIED ALSO TO YOUR SERVICE AND INTEREST CHARGES ON THAT PARTICULAR POINT ARE ALSO WHAT THAT DEBT TO SERVICE WOULD CALL SO YOU KNOW THAT'S IMPORTANT BECAUSE CAN YOU GIVE ME US A LITTLE MORE UNDERSTANDING OF WHERE THAT IS PEOPLE HEAR BIG NUMBERS ABOUT A LOT OF THINGS WE HAVE A LOT OF CASH IN RESERVE I WANT TO MAKE SURE THAT THE COMMUNITY UNDERSTANDS ALL OF THOSE THINGS FACTOR INTO THE COST OF DOING BUSINESS I NEED FOR YOU TO HELP ME UNDERSTAND THAT.

>> YOU WANT TO TACKLE THAT FIRST.

>> SO ARE WE TALKING ABOUT THE BOND RATING.

HOW IMPORTANT OUR BOND RATING IS.

>> IT'S ALMOST LIKE A CREDIT RATING FOR A BUSINESS SO THAT THE BETTER YOUR BOND RATING IS THE LOWER INTEREST

THE RATE THAT YOU CAN GET. >> RIGHT.

>> OR IF YOU HAVE TO BORROW. >> IF HAVE YOU BORROW THAT'S THE PART I THINK PEOPLE UNDERSTAND THE HIGHER THAT RATING IS THE LESS IT WOULD COST -- MAINTAINING GOOD CREDIT THAT'S WHAT THAT BOND RATING IS.

AS FAR AS THE OTHER ASPECT OF IT -- I JUST LOST MY TRAIN OF THOUGHT. WE WERE TALKING ABOUT THAT

BOND RATING. >> THE RATIO.

>> HOW MUCH MONEY IN CASH. YES.

>> THAT'S WHAT I THOUGHT YOU WERE TALKING ABOUT.

SO THE BOND RATING IS BASED ON SEVERAL FACTORS THE DEBT RATIO ARE IN OUR PLAN. EVERY BOARD MEETING THAT WE GO TO THAT ALL OF THOSE THE FOLKS IN NEW YORK THEY WATCH US EVERY DAY. SO HOW WE CONDUCT OUR BUSINESS, HOW WE FINANCIALLY ARE RESPONSIBLE DO WE, DO

[00:40:03]

THE THINGS WE'RE SUPPOSED TO DO IN OUR FINAL AUDIT REPORT ALL OF THOSE FACTOR INTO THE BOND RATING.

DEBT RATIO CALCULATION CAN VARY FROM YEAR TO YEAR.

>> I THINK IT WAS AROUND 2.75.

THOSE FACTOR INTO BEING ABLE TO BORROW MONEY AT A BETTER

INTEREST RATE. >> AND THE PART, TOO, AS FAR AS THE MONEY THAT WE HAVE TO RAIN WERE FOR OPERATIONS WE WON'T SAY TO THE BIG WORD BUT WE KNOW WE'RE ENTERED INTO A INTO A CENTER WHERE WE GET CERTAINLY EVENTS THAT OCCUR, RIGHT THAT COME THROUGH HERE NATURALLY.

AND THINGS HAPPEN, RIGHT. THINGS ARE EXPENSIVE BUT POLES WILL SNAP TRANSFERERS WILL BLOW.

I REALLY WANT TO MAKE SURE THE COMMUNITY UNDERSTANDS TOO, THAT MAINTAINING A STRONG CASH POSITION ALLOWS FOR US TO OPERATE FOR 90 DAYS.

TO HAVE HOW MANY? >> 45.

WE WOULD DOUBLE THAT. GREAT SOUND FINANCIAL POSITION TO BE ABLE TO SEPARATE THAT'S THE POINTED PEOPLE SEE LARGE NUMBERS WE GOT ALL THIS AND THAT AND IT

CAN GO REAL QUICK. >> IN A COUPLE MONTHS IT CAN

GO FROM 90 TO 67. >> WHAT'S OUR FLOW ON THAT THE RANGE IT CAN TAKE A COUPLE MONTHS TO GO FROM YOU KNOW IT DEPENDS ON HOW MUCH WE'RE SPENDING OR HOW MUCH THE COST OF POWER IS QUICKLY DIP INTO THAT CASH BURN THAT

90 DAYS FOR THAT FORMULA. >> SOMETIMES WE'RE A LITTLE LOWER. IN APRIL AND OCTOBER WHEN WE MAKE OUR BOND PRINCIPLE WE HAVE A LITTLE BIT WE DO THE CITY DISTRIBUTION WE'LL HAVE A LITTLE DIP BUT THOSE ARE EXPECTED. AND THAT CAN IMPACT THAT I THINK PEOPLE THAT DON'T DO THIS EVERY DAY YOU GUYS DO IT'S THE DETAILS THAT I CAN APPRECIATE WATCHING.

LAST QUESTION YOU MENTION ABOUT THE GROWTH OF SUDDEN CATEGORIES MAYBE GAS, ELECTRICITY WHATEVER.

DO YOU TRACK THAT WE DO LOOK AT A NUMBER OF INCREASE -- EACH YEAR ACTUALLY WE DO A MONTHLY COMPARISON AND YEAR TO DATE ROLLING COMPARISON. EVEN THOUGH WITH ARE STILL MOST OF THE COUNTRY RECOVERED FROM COVID IN FLORIDA. WE WERE SEEING EIGHT TO 10 WATER METERS A WEEK FOR A LONG STRETCH SIX OR SEVEN MONTHS. I REMEMBER ONE OF THOSE K.P.I.S THAT I WAS TRACKING THAT YOU KNOW YOU COULD SEE THAT WE WERE HAVING GROWTH THAT'S PROBABLY A DIRECT DIRECTION OF THE NUMBER YOU SEE IN DIRECT CUSTOMERS.

>> TO HELP ME, RIGHT, HELP THE COMMUNITY IT WOULD BE HELPFUL IN THE FUTURE IF YOU CAN FIND OF MAYBE INDEX THAT SO WE HAVE SOME TYPE OF IDEA OF WHAT PERCENT OF NEW IT CAN BE PERCENT SO THAT I'M GETTING A FEELING AND BEING ABLE TO KMUTH WHAT'S -- TO COMMUNICATE WHAT'S DRIVING.

THIS SO I NEED TO TRY TO UNDERSTAND WHAT'S DRIVING

THAT. >> AND SOME OF THAT IS ALSO IN THE BUDGET. BUT NOTHING WRONG WITH

REPEATING IT, RIGHT? >> EXACTLY.

>> BECAUSE THAT'S DEEP IN THE BUDGET ON PAGE 87.

>> BUT IN THE BUDGET PRESENTATION SOME OF THAT GROWTH PROJECTION BUT THAT'S GOOD SUGGESTION.

>> IF I'M NOT LOOKING AT MY OWN BOOK I'M NOT LOOKING AT SOMEBODY ELSE'S BOOK I FIND THIS EXCITING I KNOW

MICHELLE DOES. >> WE'RE GLAD YOU FIND IT EXCITING WE'RE VERY GLAD. COMMISSIONER PIRANHA.

>> PART OF THE SUCCESS STORY THIS -- PERONA.

>> PART OF THE SUCCESSER TO THE BIG PLAYER WAS FMPA YOU WERE SURPRISED WHAT YOU FORECAST THROUGH YOUR BUDGET AND EVERYTHING ELSE ALL THE E-MAILS THAT CAME THROUGH IN OUR DISCUSSION ON THE ADVISORY BOARD HOW GOOD WE HAVE KEPT THE LINE ON THAT AND THAT RELATES TO BOTTOM LINE COSTS TO OUR RESIDENTS HERE.

OUR RATEPAYERS. IT HAS PUT US IN A POSITION RIGHT NOW WHICH WE NEVER TALKED ABOUT BEFORE IS HOW WE RELATE TO OUR LOCAL COMPETITION MAYBE YOU NEED TO TELL ME HOW CLOSE WE ARE GETTING TO THAT POINT.

>> WE ARE GETTING, MICHELLE ACTUALLY IS WORKING ON THAT.

>> WE JUST GOT THE NUMBERS TODAY FROM FMEA.

WE JUST GOT THE LATEST FROM RATE COMPARISON THROUGH

FEBRUARY. >> OK, GOOD.

[00:45:02]

>> WE'RE GETTING CLOSE. >> IT USED TO BE A LONG WAY AWAY. THE STORY THERE IS THAT FMPA WHO IS OUR WHOLESALE ELECTRIC PROVIDER 10 YEARS AGO A LITTLE BIT DIFFERENT STORY WE WERE ON THE OTHER END. NEW MANAGEMENT, NEW ADMINISTRATION THE MEMBERS HAVE ALL PITCHED IN AND HELP SUPPORT THIS AND NOW IT'S GETTING TO BE THE MOST COMPETITIVE FORCE I THINK IN FLORIDA WHEN IT TALKS TO WHOLESALE ELECTRIC. WHAT THAT MEANS IS CHEAPER RATES FOR OUR RATEPAYERS WHEN IT'S ALL OVER WITH.

THEY NEED TO BE IDENTIFIED AS ONE OF THE BIGGEST ONE OF YOUR WASTE WATER AND GAS WENT UP.

MY LAST QUESTION IS SINCE NATURAL GAS IS ON THE RISE AND THAT'S PRETTY MUCH A PORTFOLIO OF GENERATION IS MOSTLY NATURAL GAS NOW, I MEAN, HOW DO YOU SEE THIS

PLAYING OUT FOR NEXT YEAR. >> GO AHEAD.

>> WELL, I THINK MANY DIRECTORS PRIOR TO ME HAVE TOLD YOU THAT THEY PROBABLY THEY'RE HORRIBLE AT PREDICTING GAS PRICES. I'M GOING TO TELL YOU THE SAME THING I'M REALLY BAD AT PREDICTING GAS PRICES BECAUSE THEY CHANGE FROM DAY TO DAY.

OVER A SPAN OF A WEEK IT WENT FROM $4.70 TO $5.80.

SO THE BIG SHIFT THAT'S A DAY TO DAY NUMBER.

SO THEY ARE PREDICTING THEY ARE PREDICTING THE FLORIDA GAS UTILITY FOLKS ARE PREDICTING THAT THAT NUMBER WILL STABILIZE FOR THE SUMMER.

BUT IT'S STILL GOING TO BE OVER OUR BASE RATE.

>> IT WILL STABILIZE HIGH. >> THEY ARE PREDICTING IT WON'T STABILIZE HIGH BUT WE LOOK AT THAT FROM MONTH TO MONTH. BECAUSE OUR P.C.A. POWER COST ADJUSTMENT IS ALWAYS A MONTH BEHIND RIGHT, WE'RE ADJUSTING IT FOR WHAT WE PAID TO -- SO I WISH I COULD GIVE YOU A BETTER ANSWER. SO LET'S PUT IT IN TERMS OF ELECTRIC COSTS TO LAST YEAR WE HAD -- WE HAD SOME LOW NATURAL GAS COSTS WE ARE ABLE TO PROVIDE WHOLESALE IF IT'S LOW WHOLESALE ELECTRIC COSTS TO FPUA YOU GUY PASS THAT ONTO YOUR CUSTOMERS. SAME THING IS GOING TO HAPPEN NOW THAT NATURAL GAS COSTS ARE ON THE RISE.

MOST OF YOUR GENERATIONAL IS NATURAL GAS.

YOU ARE GOING TO HAVE TO FORECAST PROBABLY A LITTLE BIT HIGHER COSTS FOR THIS NEXT YEAR.

>> LAST YEAR WE WERE AT MINUS 12.

>> MINUS 12 IN THE LAST YEAR.

RIGHT NOW WE'RE AT A PLUS -- DIRECTLY RELATED TO COST AND GENERATION OF POWER COSTS SO WE'RE LOOKING AT, WE'RE LOOKING AT BRINGING THE P.C.A. DOWN OVER A PERIOD OF SIX MONTHS, I THINK. -- DIRECTLY RELATED TO WHAT THE PROJECTIONS ARE FOR GAS. BUT IN FAIRNESS, ALL ELECTRIC PROVIDERS ARE ALSO EXPERIENCING THE SAME THING.

SO THOSE COSTS ARE GOING TO BE TRANSLATED THROUGH EVEN

THEIR CUSTOMERS ALSO. >> YEAH, THAT COST IS BEING CARRIED BY ALL UTILITIES THROUGHOUT THE COUNTRY.

>> EVERYBODY -- ANYBODY ELSE?

>> THANK YOU FOR THE INFORMATION AND VERY GOOD JOB ON KEEPING US IN TUNE AND IN CHECK OF THE SURROUNDING ENVIRONMENTS. IF I LOOK AT THE BUDGET FOR THE CITY OF FORT PIERCE, FOR INSTANCE WE HAVE ENTERPRISE FUNDS I CONSIDER FPUA TO BE THAT PSEUDOFUND EVEN THOUGH IT'S BY -- FOR WHAT I LIKE TO ANALYZE FOR THE BUILDING DEPARTMENT I LOOK AT BUILDING PERMITS PULLED NUMBER OF C.O.S THAT WERE ISSUED CERTIFICATE OCCUPANCY IT WOULD BE NICE TO KNOW THAT INFORMATION FROM YOUR SIDE OF COURSE IT TIES RIGHT IN WITH OUR JOINT PLANNING AND OUR STRATEGIC PLANS FOR THE GROWTH OF THE CITY HOW DO WE GROW THE SYSTEM AND HOW DO WE GROW THE CITY OF FORT PIERCE FLASH TO THE SYSTEMS THAT FPUA HAVE.

SAY ALL THOSE THINGS TO JUST REMIND EVERYONE I BRING IT UP EVERY YEAR WHEN WE TALK ABOUT THE BUDGET WITH FPUA JUST BE MINDFUL WHEN THE CAPITAL IMPROVEMENT PLAN THAT YOU HAVE IN PLAY BECAUSE WE'RE VERY AGGRESSIVE AND WE'RE GOING TO HEAR IN A FEW MINUTES ABOUT THE REVENUE THAT THE CITY IS EXPERIENCING HOW THE

[00:50:01]

SURTAX REVENUE HAS CHANGED HOW WE HAVE A WHOLE BUNCH OF PROJECTS ON THE LIST. THAT IMPACTS YOU.

>> YES, IT DOES. SO FOLKS LIKE MY FELLOW COMMISSIONERS HAVE TALKED ABOUT AND THE MAYOR EXPERIENCES EVERY TIME YOU HAVE A BOARD MEETING YOU KNOW IT'S LIKE OH, CITY IS DOING ANOTHER PROJECT OR D.O.T. IS DOING ANOTHER PROJECT THAT'S ANOTHER EXPENSE COMING TO THE FPUA. SO WHILE THERE'S CASH SITTING THERE YOU KNOW IT'S NOT ONLY FOR THE RAINY DAY BUT IT'S BECAUSE WE'RE PROJECTING CAPITAL IMPROVEMENTS AND WE'RE TRYING TO REPLACE OR EXPAND THE INFRASTRUCTURE. SO WE LOSE SIGHT OF THAT SOMETIMES. JUST IN WHOLE BECAUSE IT'S SO EXPENSIVE AND IT IS EXPENSIVE NO DOUBT ABOUT IT.

BUT IF WE'RE GOING TO GROW AND MAINTAIN RELIABLE SERVICES YOU KNOW WITH THE CITY, SERVICES AND FPUA THEN IT'S JUST SOMETHING THAT WE HAVE TO BE MINDFUL OF IN MAKING SURE THAT OUR BANK ACCOUNT LOOKS GOOD AT THE

END OF THE DAY. >> I THINK YOU'RE ABSOLUTELY RIGHT. I THINK NEW CUSTOMERS IS ALWAYS GOOD BECAUSE THE MORE CUSTOMERS YOU GET THE MORE YOU ARE ABLE TO STABILIZE YOUR RATE.

BUT JUST AS IMPORTANT YOU HAVE TO DO R&R IN OUR SYSTEM YOU'RE NOT GETTING ANY ADDITIONAL REVENUE BY DOING THOSE PROJECTS. SO YOU HAVE TO BE RESPONSIBLE AND I THINK THAT'S EXACTLY WHAT YOU'RE HITTING ON IT WE'RE DOING OUR BEST TO BE AS UPON AS POSSIBLE TO TACKLE THOSE R&R PROJECTS.

>> I THINK YOU HIT IT ON THE HEAD RIGHT THERE BECAUSE YOU KNOW THE MORE WE CAN EXPECT THE SYSTEM THE MORE REVENUE THAT COMES IN WITH NEW CUSTOMERS THAT WE DON'T HAVE TO THINK ABOUT R&R REPLACE AND REPLACEMENT R&R 30 OR 40 YEARS, 50 YEARS LET'S JUST CALL IT.

BECAUSE WE KNOW WE HAVE INFRASTRUCTURE IN THE CITY OF FORT PIERCE FROM 20S, 30S AND 40S.

>> LONG TIME AGO. >> THAT'S 1900, BY THE WAY, NOT 20. NOT THE 21ST CENTURY THE

20TH CENTURY. >> OVER 100 YEARS OLD.

THAT'S RIGHT. IT'S JUST UNIQUE TO ANALYZE IT AND LOOK AT IT AND THEN MAKE SURE WE'RE MOVING FORWARD IN A VERY POSITIVE DIRECTION.

SO I'M ENCOURAGED BY WHAT YOU HAVE.

I'M I ALWAYS TALK ABOUT THE CAPITAL IMPROVEMENT PLAN.

I THINK IT'S VERY CRITICAL TO WHAT KIND OF FORECASTING THAT WE CAN PREDICT THAT WE CAN MAKE DECISIONS ON THAT WE CAN STRATEGIZE ON. SO I APPRECIATE IT.

THERE WAS SOME OTHER COMMENT I HAD IT WAS SOMETHING TO DO, I KNOW WHAT IT WAS. THE DEBT SERVICE.

I THINK BOTH OF YOU SAID IT WAS 3.54 I SAW THE GRAPH.

ALL RIGHT. THANK YOU.

>> ANY OTHER DISCUSSION. ANYTHING ELSE?

>> SO, I THINK I WILL ENTERTAIN A MOTION FOR ITEM A CONSIDERATION OF FPUA FINAL BUDGET AMENDMENT.

WE HAVE TO ACCEPT THAT WE NEED A FORMAL ACTION ON

THAT. >> YES, MA'AM.

>> ALL RIGHTY. SOMEODY LIKE TO MAKE THAT

MOTION. >> MADAM MA'AM 20202021.

>> SECOND WITH COMMENT. CAN WE WAIVE THE 30 DAY.

THIS IS NOT THE ONE. >> THAT'S ON THE OTHER ONE.

>> I GET A THEM MIXED UP. WE SHUFFLE THIS THING ALL

THE WAY THROUGH. >> I HAVE IT SET TO GO ON

THIS ONE. >> I THOUGHT IT WAS THIS

ONE. >> NO.

IT SHOULD BE ON THE OTHER ONE.

>> OKAY. >> OKAY, WE'RE GOOD.

APPROVING THE AUDIT. SO SHALL WE, SHALL WE CALL THE ROLL

[b. Acceptance of the Fort Pierce Utilities Authority Comprehensive Annual Financial Report for FY2021]

>> THEN ITEM 3 B IS ANNUAL FINANCIAL REPORT FOR

FY-2021. >> WOULD YOU LIKE TO MAKE THAT COMMOTION. YES, MA'AM.

-- FINANCIAL REPORT FOR 2021 AND WAIVE THE 30 DAY WAITING

PERIOD. >> SECOND.

>> CALL THE ROLL PLEASE.

>> WE'LL CUT THAT CHECK RIGHT AWAY.

>> TOMORROW. YOU WILL SEE IT.

THANK YOU SO MUCH. >> THANK YOU VERY MUCH FOR

[c. Presentation and acceptance of City Audit on all funds for fiscal year ended September 30, 2021, as prepared by DiBartolomeo, McBee, Hartley & Barnes, P.A]

BEING HERE WITH US. >> NEXT WE HAVE THE PRESENTATION AND ACCEPTANCE OF THE CITY AUDIT AND ALL FUNDS FOR FISCAL YEAR-END OF SEPTEMBER 30, 2021.

AS PREPARED. >> MR. MIMS DO YOU HAVE ANY

LEAD-IN TO THIS. >> SURE, I'LL SAY THG SOME TIME. WE DO HAVE A REPRESENTATIVE OF OUR CITY AUDITER HE IS GOING TO GIVE YOU AN OVERVIEW OF HIS AUDIT IN COLLABORATION WITH OUR DIRECTOR OF FINANCE. AND I DO BELIEVE THAT WE HAVE SOME VERY, VERY STRONG AND GOOD NEWS FOR YOU WITH REGARD TO THE FINANCIAL STATUS OF THE CITY OF FORT PIERCE. SO MARK, LET HIM TAKE AWAY

[00:55:03]

THIS TIME. >> WEATHER WELCOME

MR. BARNES. >> MADAM MAYOR,

COMMISSIONERS, THANK YOU. >> I AM MARK BARNES.

WE PERFORMED THE CITY'S EXTERNAL AUDIT.

AND WE PERFORM THE AUDIT FOR SEPTEMBER 30, 2021 PERIOD.

WE HAD ALL OF OUR OPINIONS IN THE REPORT WERE UNMODIFIED THAT'S ON THE BASIC AUDIT.

THAT'S ON YOUR INTERNAL CONTROL AND THAT'S ON YOUR PROGRAMS. SO WE HAD NO FINDINGS.

>> UNMODIFIED. >> IT'S A GOOD THING.

RIGHT. >> CLEAN OPINION.

>> CLEAN OPINION. >> THAT WORD HAS CHANGED NOW

TOWN MODIFIED. >> SO WE FINISH THE AUDIT AND WE'VE PREPARED THE ANNUAL FINANCIAL REPORT WITH THE HELP OF THE CITY. WE DO PART OF IT.

>> AND BRING IT TO YOU ALL FOR YOUR APPROVAL.

IT'S A LOT TO GO THROUGH EACH YEAR IT GETS BIGGER.

NORMALLY I COME AND PRESENT A VERY SMALL 10 PAGE DOCUMENT TO KIND OF GIVE A GENERAL OVERVIEW AND ANSWER ANY QUESTIONS YOU MAY HAVE. SO, WITH THE PRESENTATION IF I MOVE FIRST ON PAGE THIS IS YOUR BALANCE SHEET FOR THE ENTIRE CITY. SO THIS IS YOUR ENTERPRISE FUNDS FUNDS SPECIAL REVENUE ALL THROWN TOGETHER JUST SO YOU CAN SEE IT ON ONE-PAGE AND THE ITEMS THAT WE HIGHLIGHTED WERE THAT THE CASH YOUR CASH INCREASED BY 9.6 MILLION. YOUR DEBT, YOUR LONG-TERM LIABILITIES WENT DOWN BY $11.5 MILLION.

WHICH IS REALLY GOOD. AND I DID GO BACK AND LOOK YOU KNOW YOUR LONG-TERM LIABILITIES ARE $65 MILLION 10 YEARS AGO THEY WERE $97 MILLION.

SO. >> I REMEMBER.

>> THAT'S GONE DOWN CONSIDERABLY.

>> AND THE OTHER THING ON THIS PAGE I DIDN'T HIGHLIGHT IT BUT JUST TO POINT OUT IF YOU LOOK AT YOUR NET POSITION IT'S $20 MILLION. LAST YEAR IT WAS $10 MILLION. SO YOU HAD A $10 MILLION SWING. SO BASIC LIVE YOU'RE UNPRESTRICTED NET ASSETS YOU KNOW THAT UNRESTRICTED PORTION DOUBLED FOR THE YEAR.

AN EXCELLENT YEAR. ANY QUESTIONS ON THE BALANCE SHEET? SECOND PAGE IS YOUR GOVERNMENTAL FUND REVENUES. I HIGHLIGHT THAT YOUR TAXES HAVE BEEN GOING UP CONSISTENTLY.

NOT YOUR RATE BUT THAT'S JUST BASED ON INCREASED MARKET VALUES AND NEW CONSTRUCTION ASK YOUR INNER GOVERNMENTAL REVENUES YOUR FPRA REVENUE CONTINUES TO GROW REALLY FOR THE SAME REASON.

SO YOUR REVENUE WAS AT $54 MILLION, $54.7 SO YOU KNOW I'M ALMOST AT $2.5 MILLION INCREASE IN REVENUE.

ALONG THE BOTTOM WE JUST KIND OF SHOWED THE REVENUE THAT YOU SHOW THE REVENUE PER INDIVIDUAL PER HOUSEHOLD. SO YOU CAN SEE THAT HAS GONE UP, OBVIOUSLY, -- ANY QUESTIONS ON GOVERNMENTAL FUND REVENUES. PROCEED.

IF YOU LOOK AT 2020 YOUR TOTAL EXPENSES $.4509 MILLION THEY MOVE TO $50.5. SO YOUR REVENUE WENT UP BY $2.5 MILLION. YOUR EXPENSES WENT UP BY $600,000. THAT'S PART OF THE REASON BETTER THAN EXPECTED, BETTER THAN EXPECTED YEAR.

ANY QUESTIONS ON THE GOVERNMENTAL FUND EXPENDITURES. JUST A GENERAL COMMENT ON THAT. WHAT JUMPED OUT TO ME THOUGH AS OUR POPULATION WENT UP BY $2,000 THAT'S ALWAYS SOMETHING I LOOK AT TOO BECAUSE THAT'S MORE PEOPLE THAT WE'RE SERVING IN THE CITY OF FORT PIERCE, AND THAT'S A BIG JUMP BUT A SMALL INCREMENTAL EXPENSES.

>> YEAH. >> THAT'S HOW I KIND OF LOOK

AT IT. >> IT'S A VERY GOOD POINT.

>> AND ALSO, IT WAS 2019, 2020 THAT WE DIDN'T HAVE THE STAT EVERYBODY CUT EXPENSES BY 2.50%.

SO WE -- I'M VERY GLAD THAT YOU RECOMMENDED THAT AND THAT THAT COMMISSION WENT ALONG WITH THAT BECAUSE I THINK THAT SHOWS THAT THAT WAS A PRUDENT THING TO DO BECAUSE OF THE PANDEMIC THAT'S WHY WE DID THAT.

SO, I THINK THIS IS REFLECTIVE NOW IN OUR GOOD

POSITION. >> I THINK IT WAS THE CITY MANAGER THAT WE WERE TALKING ABOUT SOMEONE WOULD HAVE

[01:00:04]

SAID AT THE BEGINNING OF THE PANDEMIC IT'S GOING TO LAST FOR 3-YEAR OR TWO ASK HALF YEARS WE WOULD HAVE THOUGHT WE ARE ALL JUST GOING TO BE IN A HORRIBLE POSITION.

AND YOU'RE ACTUALLY IN A BETTER POSITION THAN BEFORE THE PANDEMIC. SO THAT'S PRETTY EXCITING.

MAYOR IF YOU CAN GO BACK ONE.

COMMISSIONER C. JOHNSON SOMETHING I LIKE TO ALWAYS DO WHEN I CALCULATE OR LOOK AT HOW MUCH MONEY IS COMING IN PER PERSON AND HOW MUCH MONEY IT WILL SPEND ON PER RESIDENT, RIGHT. SO IF YOU CALCULATE THOSE QUICK NUMBERS IT'S AT 1100 SOMETHING DOLLARS.

THE LAST TIME WE DID A COMPARISON TO THE CITY OF PORT ST. LUCIE AND ST. LUCIE COUNTY THERE WERE OVER 2,500 PER RESIDENT AVAILABLE BUDGET TO SPEND PER RESIDENT IF YOU LOOK AT THEIR BUDGET. SO WE HAVE A VERY -- WE DO A LOT WITH A VERY MINIMAL AMOUNT PER RESIDENT.

IF YOU LOOK AT IT PER RESIDENT RATE.

>> OR DOUBLE. >> I DON'T KNOW WHAT THEIR NUMBERS ARE THIS YEAR, BUT I CAN TELL YOU THREE YEARS AGO I GOT OUT MY NOTES IT WAS $957.

SO WE'VE INCREASED WE'VE MADE SOME GAINS AND SOME

HEADWAY AS A CITY. >> GOOD POINT.

LOOK AT THE COUNTING NEXT TIME.

>> PAGE FOUR IS COMMUNITY REDEVELOPMENT.

AND IT HAD PRETTY MUCH VERY CONSISTENT WITH THE PRIOR YEAR REVENUE WENT UP, REVENUE WENT UP SLIGHTLY AND EXPENSES WENT UP SLIGHTLY SO THE MAIN THING THAT THE REDEVELOPMENT DISTRICT DOES RIGHT NOW AS YOU WELL KNOW IS PAY DOWN DEBT. SO YOUR OPERATING EXPENSES INCREASED BY A COUPLE BY 200,000.

YOU WERE ABLE TO GIVE A LITTLE MORE MONEY TO THE SUNRISE THEATER AND SOME OTHER TRANSFERS.

SO YOU KNOW, IT WAS ALMOST 100% DEBT SERVICE A FEW YEARS AGO. SO NOW THAT'S, THAT'S COMING DOWN A LITTLE BIT. SO IT'S MAYBE, MAYBE MAYBE $5.5 MILLION IS DEBT SERVICE.

SO YOU DO HAVE A LITTLE MORE MONEY IN HERE TO SPEND NOW SO THAT'S GOOD. I BELIEVE THE BONDS ARE PAYING OFF IN 2020 MAYBE. IT'S NOT THAT MUCH LONGER.

IT WILL BE HERE QUICK. >> IT WILL BE HERE.

>> ANY QUESTIONS ON COMMUNITY REDEVELOPMENT.

I'LL MOVE INTO THE ENTERPRISE FUNDS.

ALWAYS HAD A GOOD YEAR. I USUALLY LOOK AT THESE AT THE BOTTOM OF THE SCHEDULE I'LL LOOK AT THE NET CASH FLOWS FROM OPERATION THAT WAS $1.2 MILLION YOU WERE ABLE TO TRANSFER OUT FUNDS, HAVE TRANSFERS OUT OF $736,000 PAGE SIX OF STORM WATER THEY HAD A FAIRLY GOOD YEAR AS WELL. ONE OF THE REASONS FOR THAT WHICH DO YOU HAVE A $646,000 FEDERAL STORM WATER GRANT THAT CERTAINLY HELPED THE BOTTOM LINE SO YOUR NET INCOME WENT FROM $1 MILLION TO ALMOST $1.6 MILLION.

SO, STORM WATER HAD A GOOD YEAR THE GOLF COURSE STAYED VERY CLOSE TO THE PRIOR YEAR VERY CONSISTENT.

DOWN AT THE BOTTOM THE NET CASH ROSE AFTER TRANSFERS IS A NEGATIVE $419,000. BUT $200,000 OF THAT IS DEBT THAT YOU HAVE THAT'S BEING PAID BY OTHER FUNDS.

JUST SO WE GOT THE BIG PICTURE.

REALLY THE GOLF COURSE YOUR ACTUAL GOLF COURSE LOSS WAS ABOUT $200,000 FOR THE YEAR. I CAN REMEMBER IT BEING MUCH HIGHER. THE LAST FEW YEARS HAVE BEEN MUCH BETTER. QUESTIONS OR COMMENTS ON THE GOLF COURSE? OKAY PAGE EIGHT, PAGE EIGHT THE MARINA. THE MARINA HAD A VERY GOOD YEAR. REVENUE WAS UP, FUEL SALES WERE UP 750,000, DOCKAGE UP $375,000 AND YOUR OTHER REVENUES WERE 300,000. WHEN YOU LOOK AT THE BOTTOM NET CASH ROSE FROM OPERATIONS $556,000 YOU WERE ABLE TO TRANSFER OUT $250,000 SO YOU WERE ABLE TO RETAIN $306,000. IF YOU LOOK AT THE YEAR BEFORE THAT'S A $750,000 SWING SO THAT'S A GOOD YEAR.

A LOT OF THAT IS CONSTITUTED WITH CONSTRUCTION.

>> ABSOLUTELY. ABSOLUTELY.

[01:05:05]

GAS TANKS DOING ANY FUEL SALES.

MARINA PAGE 8, PAGE 9 REALLY NOT A LOT TO TALK ABOUT.

THE SUNRISE THEATER WAS CLOSED.

I KNOW THAT Y'ALL GOING TO BE DISCUSSING IT.

SO YOU DID RECEIVE WHICH HELPED WHICH HELPED KEEP IT OPEN BUT BEYOND -- QUESTION OR COMMENT ON SUNRISE.

PAGE 10 IS BUILDING DEPARTMENT.

AND THE REVENUES WERE UP $2 MILLION AND I THINK TALKED WHEN I TALKED MET WITH ALL OF YOU THAT THE BIG THING HERE IS THAT THAT'S -- IT'S GOING TO CREATE OTHER REVENUE IN THE CITY. IT'S ONE DEVELOPMENT IN THE CITY SO THAT'S ALWAYS, THAT'S ALWAYS A GREAT INDICATOR IT'S A VERY POSITIVE NUMBER.

BUILDING DEPARTMENT QUESTIONS.

THAT'S ALL I HAVE. ANY FURTHER ZBHES THIS IS VERY, VERY GOOD NEWS. YOU GET TO REPORT IT.

>> I DON'T THINK, I KNOW I HAVEN'T, I HAVEN'T SEEN A YEAR THIS GOOD. IT'S JUST FANTASTIC.

AND I THINK CUTTING COSTS GOING UP $600,000 IT'S JUST AMAZING KEEP THAT IT TIGHT. IT'S AN EXCELLENT JOB.

SEAN MITCHELL THEY HAVE THEIR ANNUAL REPORT OUT.

THEY HAD PRETTY GOOD REPORT. SAME THING IT'S PRETTY GOOD REPORT. ANYTHING ELSE?

>> I BELIEVE YOU DO NEED -- PREPARED TO MAKE A MOTION.

>> MADAM MAYOR I MOVE TO ASSIST THE CITY AUDIT REPORT

PRESENTED TONIGHT. >> IS WILL A SECOND.

>> THERE'S A -- THERE'S A MOTION AND A SECOND.

CALL THE ROLL PLEASE.

>> THANK YOU VERY MUCH. MAKE SURE IT'S AS GOOD NEXT YEAR. [LAUGHTER]

[d. Resolution No. 22-R18 - Amending the Rules of Procedure for Condemnation and Demolition of Structures.]

>> THANK YOU. NEXT WE HAVE RESOLUTION 20-R 18 AMENDING THE RULES DEMOLITION OF STRUCTURES PROVIDING FOR SEVRABILITY CLAUSE I DO HAVE NOT A PRESENTATION TODAY THE RULES OF PROCEDURE ARE APPROXIMATELY FIVE YEARS OLD DURING THAT TIME OUR CODE OF ORDINANCES CHANGE ANY REFERENCE TO THAT NEEDED TO BE AMENDSED -- WE DID AMEND THOSE TYPES OF CHANGES.

WE DID SOME REAL LIFE CONCERNS AND CHANGES ITEMS THAT WE ADDRESSED PROCEDUREWISE THINK WERE NOT NECESSARILY IN THE RIGHT ORDER WE MOVED SOME ORDERS AROUND. GENERALLY HOUSEKEEPING BRINGING NO MAJOR CHANGES. THAT THE COMMISSION IS GOING TO BE SURPRISED ABOUT. MA'AM, ALL RIGHTY.

ALL RIGHTY. I WENT THROUGH THERE WASN'T -- THERE WAS AN ALIGNED VERSION OF IT.

SO I WASN'T SURE WHAT HAD CHANGED.

ESSENTIALLY IT WAS THE CODE -- AND THE BIG CHANGE FOR THAT ISY NOTIFY THEM AT THE VERY BEGINNING.

SO THEY'RE NOTIFIED ON BASICALLY STEP ONE AND TWO.

THAT'S THE BIGGEST CHANGES. >> ANY QUESTIONS OF STAFF.

>> WANT TO MAKE A MOTION. MADAM MAYOR I MOVE THAT WE ADOPT RESOLUTION 22-R-79 SECOND MOTION.

>> CALL THE ROLL PLEASE.

[14. COMMENTS FROM THE PUBLIC Any person who wishes to comment on any subject may be heard at this time. Please limit your comments to three (3) minutes or less, as directed by the Mayor, as this section of the Agenda is limited to thirty minutes. The City Commission will not be able to take any official actions under Comments from the Public. Speakers will address the Mayor, Commissioners, and the Public with respect. Inappropriate language will not be tolerated.]

>> NEXT WE HAVE COMMENTS FROM THE PUBLIC.

>> ALL RIGHTY. SO THIS IS A TIME FOR THE PUBLIC TO ADDRESS THE COMMISSION, HAVE YOU THREE MINUTES PLEASE STATE YOUR NAME AT THE BEGINNING AND

[01:10:01]

MS. COX WILL GIVE YOU A WARNING BUZZER AT THREE SECONDS. HAVE YOU THREE SECONDS LEFT.

MS. MARJORY. WELCOME.

>> HI. MARJORY SNOOIL YOUR ADDRESS,

PLEASE. >> WHAT'S MY ADDRESS.

1529 AVENUE D. >> I JUST MOVED BACK TO THE CITY AND I LOVE IT. EVERYTHING AND I CAN BE PART

OF IT. >> GLAD TO HAVE YOU BACK.

GLAD TO BE BACK. MORE THAN GLAD.

>> OUT WEST. >> ANYWAY.

I CAME TO THE MEETING THE LAST MEETING YOU HAD AND I FORGOT TO TELL YOU THAT WE WERE HAVING A FESTIVAL.