Bay County staff reported that all projects listed for the first five years of the county surtax program are complete except Magnolia Beach Road Phase 2, and they have set aside funds to cover a possible FEMA reimbursement “clawback” ahead of a federal court hearing later this month.

Keith Bryant, a staff member, told the committee that Magnolia Beach Road Phase 2 has advanced to the construction board this morning and that, otherwise, first‑five‑year surtax projects are finished. "I'm happy to report that that project went to the board this morning for construction," Bryant said.

The update came during a routine project briefing in which staff also described grant‑related delays and high sidewalk costs. "Sidewalks are going up for over $200 a linear foot," Bryant said, adding that some sidewalk work is actually multi‑use paths and that older sidewalks are being rebuilt to meet Americans with Disabilities Act standards. He said the county is required to correct ADA deficiencies when undertaking projects under Florida law.

Bryant said nearly all projects in the next five years are in design or under construction except a newly identified turn‑lane project at County Road 388 and U.S. 231. He also described a multi‑party funding arrangement for the Star Avenue project: Bay County contributed $2 million, Panama City $2 million and the Florida Department of Transportation provided about $20 million for a roundabout and realignment at Star Avenue and Titus. Bryant estimated the Star Avenue roundabout and realignment will take about 18 months once construction is underway.

On finance, Miranda, finance staff, told the committee the surtax has generated "over $143,000,000 for the life of the surtax," though two months of FY 2025 remittances were still outstanding because the state typically sends payments about 60 days after businesses remit taxes.

Miranda said county officials have created a lockbox of FEMA‑related funds because of litigation over reimbursed disaster costs and that staff will attend the in‑person federal hearing in Washington, D.C. "We have $11.1 million set aside for that FEMA lockbox in FY '25. We have also placed over $8 million in the FY '26 budget for the lockbox, and then there will be another $8 million in FY '27 should we not get a favorable decision," she said. She later confirmed the federal hearing date: "The hearing is Oct. 28." The committee did not vote on the lockbox; Miranda described the set‑asides as budget actions taken in anticipation of a court ruling.

Committee members asked about construction costs, and Bryant said some cost lines are easing. "We are seeing some of our utility costs come in under the estimated construction cost," he said, noting a water storage tank project and two deep‑well injections at North Bay came in below estimates.

Members also raised project delivery issues tied to railroad crossings and contractor mobilization. Bryant said dealing with railroad coordination can add complexity because railroad approval of crossings supersedes Department of Transportation scheduling.

The committee was briefed on budget and expenditure detail pages that staff provided in the meeting packet and were told the FY 2024 audit had only just been completed. Miranda said staff had been conservative in budgeting — the county budgets at 95% of projected receipts — and that, absent an adverse court ruling, FY 2025 revenues should finish close to FY 2024 levels.

The committee had no other substantive business. Members were reminded of the next scheduled meeting on April 7, 2026.