HomeMy WebLinkAbout20150629BAC MinutesCITIZENS BUDGET REVIEW ADVISORY BOARD
MINUTES
6:00 PM MONDAY—JUNE 29, 2015
CITY COUNCIL CHAMBER, 1225 MAIN STREET, SEBASTIAN, FL
1. Chairman Herlihy called the Citizens Budget Review Advisory Board meeting to order at 6:00
p.m.
2. The Pledge of Allegiance was recited.
3. ROLL CALL
Present:
Ed Herlihy—Chairman
Dionna Farmer—Vice Chairman
Terry Taylor
Sergio Mota
Bruce Hoffman
Michael Frank
Not Present:
Tim Slaven (Excused)
Also Present:
Joe Griffin, City Manager
Ken Killgore, Administrative Services Director
Nancy Veidt, Accounting Services Manager
Jeanette Williams, Recording Secretary
4. AGENDA MODIFICATIONS: None
5. APPROVAL OF MINUTES: None
6. UNFINISHED BUSINESS: None
7. NEW BUSINESS
a. Presentation by Ken Kill ore, Administrative Services Director and Board discussion of the
City of Sebastian Certified Taxable Values received from the Property Appraiser.
The Administrative Services Director distributed a table showing examples of a property valued
at $100,000 taxed at the millage rates of 3.8556 and 3.6490. (See attached) He said the
difference between the rates is about $150,000 that would come to the City and he asked the
Board to come to an agreement on what to recommend to City Council.
In response to Mr. Mota, the Administrative Services Director said the riverfront CRA is a district
established by City Council subjected to incremental increases by the City and the County to
provide for growth and promotion in the district.
Citizens Budget Review Advisory Board
June 29, 2015
Page Two
6:15 pm
6: 57 pm
7.22 pm
b. Presentation by Ken Killgore, Administrative Services Director and Board discussion of the
City Manager's Draft Budget Recommendations for 2015-16.
The Administrative Services Director briefly went over the proposed budget noting it included
items to be funded five years out.
He then gave a PowerPoint presentation. (See attached) He noted on slide four, staff hopes to
receive the results of the health insurance RFP within a week or two but the negotiations might
not be finished until August; there will be three part-time janitorial positions eliminated, along
with a parks maintenance worker.
The Administrative Services Director confirmed for Mr. Hoffman that the local option gas tax
amounts allocated on slide seven would normally accumulate in the reserve fund.
He noted if the Discretionary Sales Tax (DST)funds run out, a rate increase may be needed in the
stormwater assessment to complete the installation of the quarter round. Chairman Herlihy
reported the County Commission plans to put the extension of the DST on the 2016 ballot.
In response to Mr. Hoffman, the Administrative Services Director explained that taxing portions
of cable package plans and technology changes are reducing incoming communication tax
revenues statewide. On slide eight, he predicts the City will gain $16,000 from the new City Gas
franchise.
On slide ten, the Administrative Services Director explained the Golf Course loan would be
amortized with principle and interest so the Building Department would benefit $8,200 from the
first year's interest.
On slide 15, he explained that recreational impact fees could not be used for the exercise
stations at Hardee Park because the fee is designed to build new facilities in new subdivisions.
Discussion followed that there was a pond built on Periwinkle Drive, there will be a Tulip Drive
pond built in 2017 and one at a location to be determined in 2019. (See slide 16)
While not part of slide 19, he pointed out that the CRA values have increased 15% but the
average home only increased 6% in value which indicates the homeowners did not fare so well
in the assessment.
On slide 21, the Administrative Services Director asked if $50,000 should be set aside every year
to have on hand for All Aboard Florida until it is resolved. Chairman Herlihy noted that
Governor Scott has vetoed the All Aboard quiet zone money.
c. Board discussion of key budget items and decisions regarding the Board's recommendations
to City Council:
Citizens Budget Review Advisory Board
June 29, 2015
Page Three
Chairman Herlihy went over the following list:
1) Sebastian Canal Repair.
He reported the engineering analysis is being completed and there will not be action
needed in the coming year.
2) Road Repaving.
The same amount will be funded.
3) Golf Course irrigation system. Costs and financing.
In response to Mr. Mota, the Administrative Services Director said the City is developing
specs for an RFP to select a vendor.
Mr. Taylor asked if the $600,000 coming from the DST funds were allocated in a
different area in past years. The Administrative Services Director cited page 149 of the
proposed budget document, where there is a history of some of the projects that have
been completed.
He also explained the maintenance fee that is charged to the Golf Course pays for
services provided such as accounting, human resources, and managerial services. All of
the enterprise funds pay the fee. The part time positions in the cart house count as one
half of a position, working a variety of schedules.
4) Lagoon funding including Lagoon "Committee". baffle boxes, oyster project, water
quality testing and other possible Lagoon projects.
It was the Board consensus to leave the funding where it was.
5) All Aboard Florida funding and anticipated expenditures for "quiet zones", legal and
engineering costs.
Chairman Herlihy asked if they should fund more than $50,000. It was the consensus of
the Board to fund $50,000 again for quiet zone installation and let it build up each year
if not used.
6) Public safety funding for more staff/equipment. Administrative Services Director to
provide updated information on draft budget recommendations.
Chairman Herlihy noted three of the Council Members said public safety was in their top
priority and asked the Board if they wanted to fund additional police officers entailing a
millage increase.
Citizens Budget Review Advisory Board
June 29, 2015
Page Four
The Administrative Services Director said the entry level officer would cost $60,000 plus
$50,000 for the vehicle. He said two officers would require an increase of the millage
rate to 3.93.
7:44 pm
It was the consensus of the Board to stay with staff recommendation and not add any
officers at this time.
7) "Quarter Round" drainage and ditch cleaning project funding.
These items were outlined in the PowerPoint presentation.
8) CRA enhancements and projects including sewer connectivity funding.
The same amount will be funded.
9) City staff funding and possible expansion.
This item was outlined in the PowerPoint presentation.
10) Other budget topics Board Members may introduce.
In response to Mr. Hoffman, the Administrative Services Director said in the working
waterfront drainage, there is amount to match a grant for a baffle box train system.
Mr. Taylor asked if the vacant positions in the MIS Division would be filled. The
Administrative Services Director explained the Audio Visual Division was moved to the
City Clerk's office and the positions would not be filled.
d. Board general discussion of 2015-16 City Budget including millage rates, various capital
projects, recommendations to City Council, form of recommendations to Council.
Chairman Herlihy noted the proposed budget, based on same millage rate as last year, is
balanced; the rolled back rate would unbalance the budget and he asked the Board what rate
they would like to recommend to City Council.
MOTION by Mr. Hoffman and SECOND by Mr. Frank to recommend 3.8556 to City Council
passed with a voice vote of 6-0. Chairman Herlihy said he would prepare a draft presentation
for the Board to review at the next meeting.
8. PUBLIC INPUT: None
9. STAFF MATTERS: None
Citizens Budget Review Advisory Board
June 29, 2015
Page Five
10. BOARD MATTERS
a. Comments/discussion by individual Board Members.
Mr. Mota wished everyone a happy 4`" of July.
b. Discussion of topics for next meeting.
11. Being no further business, Chairman Herlihy adjourned the Citizens Budget Review Advisory
Board meeting at 7:50 p.m.
Chairman Ed Herlihy t�
The table below are examples using a homestead property taxed on a value of $100,000 last year.
The taxable value may only be increased by the
change in the consumer price
index of 1.6%:
Revised Assessed Values
$944,059,027
New Millage of: 3.8556
$25,492,245
New Millage of:
3.8556
New Millage of:
3.6490
FY 2014-15
FY 2014-15
FY 2015-16 With
FY 2014-15
FY 2015-16 With
With 3.8556
3.8556 Millage
With 3.8556
3.6490
Taxable Value $100,000
Millage
3.8556 Millage
$100,000
Millage
3.6490 Millage
Taxable Value
$100,000
$101,600
Taxable Value
$100,000
$101,60
Homestead Exemption
50,000
50,000
Homestead Exemption
50,000
50,000
Net Taxable Value
$50,000
$51,600
Net Taxable Value
$50,000
$51,600
Millage
3.8556
3.8556
Millage
3.8556
3.6490
Taxes for Year
$192.78
$198.95
Taxes for Year
$192.78
$188.29
Fax Increase
$6.17
Tax Increase (Decrease)
($4.49)
The table below shows an example of a property without the homestead exemption and a value of $100,000 last year, assuming it increased at the
average rate of reassessment, which was 6.67%:
FY2015 Final Taxable Value
$885,009,868
Revised Assessed Values
$944,059,027
New Millage of: 3.8556
$25,492,245
New Millage of:
3.6490
FY 2014-15
FY 2015-16 With
FY 2014-15
FY 2015-16 With
With 3.8556
With 3.8556
Millage
3.8556 Millage
Millage
3.6490
Taxable Value $100,000
$106,670
Taxable Value
$100,000
$106,67
Millage 3.8556
3.8556
Millage
3.8556
3.6490
Taxes for Year $385.56
$411.28
Taxes for Year
$385.56
$389.2
ax Increase
$25.72
Tax Increase
$3.68
The table below summarizes the city-wide change in taxable values from last year:
Percent
6.67%
2.88%
9.55%
Amount
FY2015 Final Taxable Value
$885,009,868
Revised Assessed Values
$944,059,027
New Construction and Additions
$25,492,245
FY2016 Taxable Value
$969,551,272
Percent
6.67%
2.88%
9.55%
Millage of:
able Value
iestead Exemption
Taxable Value
age
as for Year
4.0000
4.0000
FY 2014-15
FY 2015-16 With
With 3.8556
FY 2015-16 With
Millage
4.0000 Millage
$100,000
$101,600
50,000
50,000
$50,000
$51,600
3.8556
4.0000
$192.78
$206.40
New Millage of:
4.0000
FY 2014-15
FY 2015-16 With
With 3.8556
Millage
4.0000
Taxable Value
$100,000
$106,670
Millage
3.8556
4.0000
Taxes for Year
$385.56
$426.68
ax Increase
$41.12
Millage of:
axable Value
Homestead Exemption
Net Taxable Value
Millage
Taxes for Year
pax mucase
3.9300
FY 2014-15
With 3.8556
Millage
$100,000
50,000
$50,000
3.8556
$192.78
FY 2015-16 With
4.0000 Millage
$101,600
50,00
$51,60
New Millage of:
3.9300
FY 2014-15
FY 2015-16 With
With 3.8556
Millage
3.9300
Taxable Value
$100,000
$106,67
Millage
3.8556
3.9300
Taxes for Year
$385.56
$419.21
Tax Increase
$33.65
V,
2016 Budget and Capital Program
Initial Presentation
Budget Review Advisory Committee
Monday, June 29, 2015
Prepared By:
Ken Killgore
Administrative Services Director
2016 Budget and Capital Program
o What's Included in General Fund?
o Revenues and Balancing Tactics.
V o What's Left Out?
o Enterprise and Other Funds.
o Property Values & Millage.
o Other Considerations.
z
What's Included —
General Fund Summary
$250,622 Raises and Added Positions
153,352 New Operating Expenses
- 111,289 Less Equipment Purchases
- 18,941 Less Transf
-Other Funds
$ 273,744 Total Budget Increase
3
What's Included? —
Personnel Cost Up $250,622
o Pay and Benefits
3% Allocated for Pay Increases (Negotiable!).
15% Higher Medical Insurance Premiums (RFP).
o Net Position Changes Past Year
+ City Hall Half-time Call Line Assistant.
+ Administrative Services Part-time Accounting Clerk.
+ Police Administration Part-time Logistics Specialist.
- Roads Maintenance Supervisor.
+ Stormwater Maintenance Worker III.
o Position Changes for 2016
+ City Clerk Full-time & Audio Visual Part-time.
- Administrative Services Human Resources Specialist
0
What's Included —
Operation Cost Up $153,352
O Election Cost $26,250.
O Police Department O&M $22,022.
o Facilities Services Janitorial $28,824.
O Non -Departmental $65,582:
$16,701 Riverfront CRA
i $13,323 Telephone and Electric
. $20,000 Time Clocks
$13,000 PBA Tuition Reimbursements.
$ 2,558 Net for Other Accounts.
o All Other O&M Accounts $10,674.
5
What's Included? —
Capital Outlays Down $111,289
o Audio Visual - $40,000 Cameras,
$2,000 Acoustical Panels.
o MIS - $20,000 Server Replacements.
o Police - $2,000 Projectors, $4,000 Shredder,
$5,000 Rifles, $5,000 Tasers, $6,500 Evidence
Cabinet, $2,500 Surveillance Camera.
o Parks & Recreation - $26,000 Enclosed Trailers,
$5,000 Open Trailer, $25,000 Pickup, $15,000
Exercise Stations, $3,000 Tennis Wind Screens.
o Facilities - $40,000 PW Compound Restrooms.
N
What's Included? —
InterFund Transfers Out Down $7,000
FY2015 Transfers Out
o $207,000 To Local Option Gas Tax:
$100,000 From Millage Increase and $57,000 Savings From
Health Insurance for Street Resurfacing.
$50,000 From Millage Increase for All Aboard Florida.
o $100,000 From Millage Increase to Stormwater
Fund for the Lagoon.
FY2016 Transfers Out
o $200,000 To Local Option Gas Tax:
Street Resurfacing.
o $100,000 to Stormwater Fund:
$50,000 Lagoon Coalition and Oyster Mats.
$50,000 to Stormwater Operations & Maintenance.
Revenues and Balancing Tactics
0 3.8556 Millage - 96% Collection Rate.
0 4% Growth of Utility & State Revenues, Added
Propane Franchise/Utility Fees.
o $104,086 Final on Repayment Plan from
Building Department on Business Taxes.
o $50,000 Adjustment to Stormwater Transfer.
0 2nd of 4 Year Repayment of $200,nnn Loan to
Airport to Cover Legal Expenses.
o Cut or Deferred Equipment/Facility
Replacements Requested "Just -in -Case".
o Qualified Items to Special Revenue Funds.
What's Left Out?
No Contingency for Negotiations
Resulting in More Than 3% Pay Raises.
No Contingency for More Than 15%
Health Insurance Increases.
> No Police Positions Restored or Funding
to Match COPS Grant (If Approved).
No Provision for Share of Seawall Issues.
I
Enterprise Funds:
Golf Course
o Assuming 4% Operating Revenue
Increase ($79,531) Over 2015 Budget.
o Increase in Budget for Cart Attendants
& Addition of Temporary Assistant Pro.
o No Change in $100,000 Airport Rent.
o No Longer Funding Greens Equipment.
o $700,000 Loan from Building Fund and
$500,000 Payment by ®ST Fund will
Allow Project to Replace Irrigation
System and Bathrooms - Using Golf
Course Capital Account for Repayment
to the Building Fund.
ILI
Enterprise Funds:
Airport
o Fuel Sales Down - Lower Prices
o Rental Revenues Down - Loss of Tenant
o Pays 20% for Public Works Director and
25% for Environmental Specialist to Serve
as Airport Manager and Administrator.
o Also Pays 25% for Maintenance Worker.
o Allocating $14,035 toward Economic
Development Advertising Cost.
o Repaying 1/4 of General Fund Loan and
Loans from Discretionary Sales Taxes.
11
Enterprise Funds:
Building
o Operating Revenue Estimates About 3%
Higher than 2015 Budget But Almost
Same at 2015 Estimates.
o Will Receive About $8,200 on $700,000
Y Loan to Golf Course.
o Replacing Vehicles and Equipment.
o Budgeting $68,357 More Than Revenue
Due to Last Payment on Business Taxes
Back to General Fund.
12
Special Revenue and Other Funds:
Special Revenue Funds
o Local Option Gas Tax:
Using $50,000 for All Aboard Florida.
Covering Street Lights and Bank Note.
Pays for R/R Crossing Work, Sidewalk Repair
& Construction, Sign Replacement, Road
Striping and Indian River Light Pole Repairs.
Vocelle to be Repaved in 2016, Indian River
Drive & Barber in 2017, Bay Drive & Bevin in
2018, $200,000 Per Year in Later Years.
o Parking In Lieu Of Fund:
Using $25,000 for Indian River Drive Parking.
Expect About $44,000 Balance by Year End.
Receiving $19,730 Per Year on Agreements.
13
Special Revenue and Other Funds:
Special Revenue Funds
o Discretionary Sales Tax:
Ongoing - City Hall Bank Note, Computer
Upgrades and Police Vehicles. Picked Up
Stormwater Bank Note This Year.
2016 - Tulip Drive Roadway and Crossing,
Police Roof, City Hall Painting & Parking Lot,
Baseball Field Lighting, PD Evidence Garage,
PW Equipment Shelters, Working Waterfront
Drainage & Enhancements, Colombariums,
Excavator Matching, Half of Schumann
Sidewalk and Golf Course Improvements.
2017 - Barber Street Bridge, Half of Schumann
Sidewalk, Bevan Ditch and �/4 Round Program.
Later - 1/4 Round Program and Match for Airport
West Access Road.
14
Special Revenue and Other Funds:
Special Revenue Funds
o Riverfront CRA Fund:
Usual Public Lighting, Hurricane Harbor Repair
and Maintenance, General Fund Maintenance
Charge, Special Events, Plus Continuing the
Sign and Sewer Connection Programs.
2016 - Also Has Half of Riverview Park
Sidewalks and Match on Landscaping U.S.#1.
2017 - Half of Riverview Park Sidewalks.
o Recreation Impact Fee Fund:
2016 - Bikepath on Brushfoot, Equipment
Building and Community Center Work.
Bleacher Shields Requested by Parks and
Recreation Board Are Not Included.
15
Special Revenue and Other Funds:
Special Revenue Funds
o Stormwater Utility Fund:
$100,000 Transfer From General Fund.
Bank Note Payments Made by DST Fund.
Continues Stormwater Park Electric Charge,
Road Crossing & Sideyard Pipe Work,
Vehicle/Equipment Replacements.
Completes 2015 Ditch Maintenance Program.
Adjusts Transfer to General Fund for Operation
and Maintenance Expenditures.
Stormwater Pond Scheduled for 2019.
Adds 1/4 Round Program in 2019.
Increase From $5 to $6/Month in ERU Rate
May Be Necessary in 2017.
C
Special Revenue and Other Funds:
Special Revenue/Trust Funds
o Law Enforcement Forfeiture Fund:
Used Only for Unbudgeted Items.
o Cemetery Trust Fund:
1/2 of Sales is Non -Expendable but Interest
can be Used for Maintenance.
1/2 of Sales is Expendable on Expansions or
Adding Capacity. Bought Property in 2013.
Planning Storage Building in 2016 and
Redoing South Roadway in 2021.
17
Special Revenue and Other Funds:
Debt Service Funds
o Discretionary Sales Tax Debt Service:
Includes Required Bank Note Payments.
Refunded City Hall and Police Station Bonds.
$1,722,000 Outstanding as of 9/30/15.
Final Maturity on 4/01/17.
o Stormwater Utility Debt Service:
Includes Required Bank Note Payments.
Refunded Stormwater Improvement Bonds.
$2,630,000 Outstanding as of 9/30/14.
Final Maturity on 5/01/22.
18
Property Values and Millage:
Property Values
o Property Values Increased to a Total
Taxable Value of $969,551,272.
o This is $59,049,159 More Than Last Year,
an Increase of 9.55%.
o New Taxable = $25,492,245 This Year
Versus $19,914,805 Last Year.
o Average Reassessment Increased 6.67%.
19
Property Values and Millage:
Millage
o 3.6490 Rolled -Back Rate
Adds $95,845 From Additions & CRA Offset.
$100,000 Homestead Property - $193 in 2015
vs. $188 in 2016 (1.6% Limitation).
$100,000 Commercial Property - $386 in 2015
vs. $389 in 2016 (6.67% Value Increase)
o Same 3.8556 Millage
Adds $293037 From Additions & CRA Offset.
$100,000 Homestead - $6.17 (3.2% More).
$100,000 Commercial - $25.72 (6.67% More).
20
Other Considerations
o Unsettled Issues:
Premiums for Employee Health Insurance
Have Not Been Set - 15% Allocated.
Wage Opener Negotiations Not Done.
COPS Program Matching Application.
All Aboard Florida.
Sea Wall Issues.
o Normally Set Proposed Millage Higher to
Allow Flexibility in Dealing With Other
Matters That Result from Budget
Discussions and Hearings.
21