The commission approved Resolution 26-06, entering a Local Agency Program agreement with FDOT to design sidewalks on South Gay Avenue; staff said the design is 100% state-funded and there was no public comment on the item.

Commissioners approved changes to the AWT multi-jurisdictional agreement required by DEP, including expanded industrial-user reporting and a newly explicit indemnification clause saying participating cities must indemnify Bay County for damages or fines arising from local enforcement failures.

Staff reported Callaway’s AWT allocation is ~2.1 million gallons per day and current usage ~1.61 million gpd (~75%); Bay County has petitioned DEP to increase plant capacity by 1,000,000 gpd, which staff said would reduce Callaway's percent utilization to roughly 63%.

After staff incorporated commission feedback, the board approved a developer agreement with Saint Joe that adds timing windows for site conveyance, inspection rights, environmental compliance language, assignment limits and default/remedy language; a public commenter pressed the city to clarify that a 25-acre gift would not replace developer on-site open-space requirements.

City manager reported sewer-plant expansion will add roughly 1,000,000 gpd, increasing Callaway's headroom and (by staff math) leaving capacity for about 6,500 additional homes; commissioners approved moving forward with a $17,000 server replacement to address aging hardware and reduce annual licensing costs.

The commission voted to certify a maximum millage of 2.7 for FY26‑27 (TRIM notice level). Officials said the figure preserves existing revenue assumptions while staff plans for multi‑year impacts should the state property‑tax amendment pass.

Callaway accepted Resilient Florida awards (50/50 match) totaling up to $2.9M for the Bertha Avenue spillway replacement and a similar award for lift‑station rehabilitation, and was also awarded a state master stormwater study grant; council approved grant acceptance and related project steps.

Commission awarded a materials bid to Ferguson for the Beulah Avenue water‑main improvement ($114,544.41), and approved a capital reallocation to buy a larger mini‑excavator, ground‑penetrating radar and a handheld locator rather than two bypass pumps — a move staff said will save contractor costs by enabling more in‑house work.

During public comment, a resident described a hazardous drainage ditch on Sakoshi Drive and asked for a permanent fix; another resident requested reimbursement after being billed for sewer service while on a septic system since 2019; a separate commenter accused a commissioner of an insulting remark, which the commissioner denied at the meeting.

Commission approved using water impact fees to replace a failing 2-inch galvanized loop with a 6-inch main, complete the loop and add two fire hydrants; staff said three quotes were received and work will be done in-house with materials purchased from Empire Pipe (lowest quoted amount ~ $17,427).

Auditors presented a clean (unmodified) opinion for Callaway's FY2025 financial statements, noting a $9.1 million increase in net position (including $2.25 million in federal loan forgiveness), healthy fund balances, and no audit findings; the city required a state single audit for $855,000 in state assistance.