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HomeMy WebLinkAbout20150608BAC MinutesCITIZENS BUDGET REVIEW ADVISORY BOARD JUNE 8,2015 — 6:00 P.M. MONDAY CITY COUNCIL CHAMBER 1225 MAIN STREET, SEBASTIAN, FL MINUTES 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 Bruce Hoffman—Vice Chairman Michael Frank Sergio Mota Tim Slaven Terry Taylor Absent: Dionna Farmer (excused) Also Present: Joe Griffin, City Manager Ken Killgore, Administrative Services Director Jeanette Williams, Recording Secretary 4. INTRODUCTION OF NEW MEMBER Chairman Herlihy noted Mr. Mota greeted members as they arrived. S. AGENDA MODIFICATIONS - None 6. APPROVAL OF MINUTES: August 26.2014 & March 2, 2015 MOTION by Mr. Hoffman and SECOND by Mr. Slaven to approve the August 26, 2014 and March 2, 2015 minutes passed with a unanimous voice vote. 7. PUBLIC HEARINGS — None. Citizens Budget Review Advisory Board Meeting June 8, 2015 Page Two 8. UNFINISHED BUSINESS Chair's review/comment on Council workshop regarding boards and committees. 1) "Sunshine Law" reminders 2) Agenda review by members 3) Distribution of minutes 4) Member's interaction with staff. Board contact. In an effort to make the boards more uniform, Chairman Herlihy explained that City Council held a workshop session with all the boards. He said some of the workshop suggestions included following the Sunshine Law, sending out draft agendas prior to meetings to members for comment back to the Administrative Services Director, and distributing draft minutes as soon as possible so members can refer to them between meetings. He invited all members to contact the Administrative Services Director or the City Manager for any questions, at any time. b. Review Second Quarter Report — FY2015. Presentation by Ken Killgore, Administrative Services Director. Discussion/questions by Board to follow. The Administrative Services Director presented the second quarter report with budget comparisons to the Board and if they didn't have any objection, it would be recommended to City Council on June 24th He said the executive summary graphs indicate the general fund appears to look good with departments having spent 49.4% of their allocations, incoming revenues look satisfactory and he did not have any concerns. He pointed out it did not seem that departments will have surplus from their budgets for the remainder of the year, which he will watch and take corrective action to make sure reserves aren't tapped. He also pointed out the Golf Course and Airport indicate positive additions to their reserve balance for the last six months and the Building Department continues to pay back revenues that were borrowed during the recession. For the new members, he explained a lot of the special revenue funds are collected and transferred to construction funds for projects and he offered to meet privately with any member that might have questions on these funds. He said the State Board of Administration (SBA) continues to hold some of the City's investment monies with the rest accruing interest in a local money market account. Citizens Budget Review Advisory Board Meeting June 8, 2015 Page Three Questions Mr. Mota said he would like to meet with the Administrative Services Director but didn't have any questions at this time. Mr. Taylor complimented the credibility and professional layout of the report. Mr. Hoffman complimented the changes in the investment report; he asked for clarification on the departments not meeting expenses with what was budgeted for this year. The Administrative Services Director explained some expenses have been added and paid from the reserve so the departments seem to be right on target and if the reserve wasn't tapped, the expenses would be less than revenues. Mr. Herlihy noted things seem to be trending up at the Golf Course, which is a positive sign. MOTION by Chairman Herlihy and SECOND by Mr. Hoffman to approve Resolution No. R-15-15 which accepts the quarterly financial report and recommends it to City Council. The motion passed with a unanimous voice vote. 9. NEW BUSINESS a. Presentation/discussion of latest Indian River County assessed valuation for Sebastian and budget effect by Ken Killgore. The Administrative Services Director said to assist with budget preparation, the Property Appraiser's Office has given an estimate of the total taxable value indicating just over an 8% increase that would generate $267,000 more dollars in ad valorem proceeds. He cautioned that the planned personnel costs are $239,000 which makes the increase comfortable, but not that comfortable. There will still need to be some number crunching to do. Chairman Herlihy asked that the Administrative Services Director e-mail the board members with the Property Appraiser's certified valuation Monday. For the new members, Mr. Hoffman noted the 3% personnel increase this year was built into employees contracts; it is the second year of the three year negotiation. The Administrative Services Director added the 3% is just a number being used for budgeting purposes and the actual increases will have to be negotiated. Citizens Budget Review Advisory Board Meeting June 8, 2015 Page Four b. Presentation/discussion of proposed budget topics. Presentations by Joe Griffin, City Manager and Ken Killgore, Administrative Services Director. Board discussio nh uestions. Chairman Herlihy commented the following items are items the City would like to do or may have to do. The City Manager noted as he explains the items, a lot of the specifics have not been nailed down yet: 1) Sebastian Canal Repair. A contract has been awarded to make an engineering analysis that will take about 3-4 months. The City Manager said every compromised sea wall he has seen has been on private property—the question will be, should the community take on the expense and repair private property, which will be part of the analysis. 2) Road Repaving. The Fleming and Main Street project, which started last Thursday, added an overlay change order, which then prompted a request to widen the street; the change order and street widening will go City Council June 24`h. Repaving Vocelle from Fleming to Roseland along with Tulip Drive will be in the 2016 budget complimented by a 319 DEP grant. 3) Golf Course irrigation system. Costs and financing. The Golf Course represents a 40 -year investment with the City that provides recreational diversity. The irrigation system will be changed out by borrowing $700,000 from the Building Department and spending $600,000 from the DST fund. 4) Lagoon funding including lagoon "Committee," baffle boxes, oyster project, water quality testing and other possible lagoon projects. The Indian River County Coalition was formed to obtain a seat on the Indian River Lagoon Council which is an offshoot of the National Estuary Program. The Council is comprised of representatives from Volusia, Brevard, Martin, and St. Lucie Counties. Indian River County opted out of the Council so the Coalition (of Sebastian, Fellsmere and Vero Beach) was formed to ensure participation on the Council. To participate, the three cities must share what would have been Indian River County's cost of $50,000. (Sebastian's) Mayor Gilimor will be representing the three cities on the Council and try to obtain grants and projects for all of Indian River County. Citizens Budget Review Advisory Board Meeting June 8, 2015 Page Five He reported a $24,000 grant (requiring a $24,000 City match) was received for the oyster mat projects, the permits have been submitted; and two baffle box projects have been submitted. He suggested $100,000 might be an appropriate number to request again next year from City Council. 5) All Aboard Florida funding. Costs for "quiet zones." legal and engineering costs. He said last year there was $50,000 funded for anticipated legal expenses but at this point only the environmental impact study has been submitted so he was unsettled as to how much to budget. He cautioned that if quiet zones are needed, the cost and maintenance would be a big expense, it might be time to squirrel away funds and they should request $50,000 again. 6) Public safety funding for more staff/equipment. He said he has heard crime is way down, so he was reticent to call for more staff but would like to incorporate the purchase of 4-5 new vehicles into the fleet cycle. 7) "Quarter Round" drainage and ditch cleaning project funding. He said the stormwater budget is $1.2M with $500,000 earmarked for quarter round and other stormwater maintenance. He explained this past year, the quarter round installation was placed in abeyance so the big residential ditches could be cleaned out; areas that haven't been touched in years can be trenched by the armadillo drill; and once the ditches are clear, installation of the quarter round will continue. 8) CRA enhancements and projects including sewer connectivity funding. He said individuals and the Veterans Posts have taken advantage of the CRA Sewer Hook Up Program this year, it would be prudent to continue with $100K allocation again for next year. 9) City staff funding and possible expansion. He said the City Clerk's office has requested the addition of staff but he didn't see the need for any more staff in other divisions. 10) Other budget topics members may introduce. Chairman Herlihy suggested they digest what was presented, and decide what recommendations the Board will make to City Council this year. He noted a quick addition of the numbers comes up to $550,000 which can put a hefty dent in the tax rate. He noted the assessed valuation doesn't leave room to do anything else. Citizens Budget Review Advisory Board June 8, 2015 Page Six Comments Mr. Taylor asked where the staff total is in the budget amendment. The Administrative Services Director said the total of the individual fund department, the sum of personnel services time 3% would be the number. He said 3% includes salaries, health insurance and pensions. He reminded the Board that revenues for the Lagoon, All Aboard Florida and roads are now recurring funds and what they need to decide on is the other "wants and needs." Mr. Mota said the drainage and ditch cleaning is a big project and he commended staff's foresight to tackle the problem, including All Aboard Florida, before they become bigger problems. He agreed with the Chairman's comment on salaries. Mr. Hoffman pointed out if the seawall assessment takes 3-4 months it might not be part of the upcoming budget unless they preemptedly add something and asked if that should be a concern. The City Manager explained his instructions from Council were to conduct an investigative analysis and if something unforeseen happens, have a plan to deal with it in the short term. He said when the analysis comes back, not knowing what it will call for, it will take at least a year to get a project started. Mr. Hoffman stated they will work with what they got; but is concerned that the Golf Course won't be able to pay back the loan for the irrigation repair. He agrees the irrigation needs to be done but the income isn't there and the use of $600-700K DST funds will reduce resources for the second priority which is roads. Chairman Herlihy said they could discuss finding another way to fund the repair at the next meeting titling it "Golf Course Irrigation Financing" on the agenda. In response to Chairman Herlihy, the Administrative Services Director confirmed the recurring funds for the Lagoon, All Aboard Florida and CRA Sewer Hook Up Program would not affect any increase in millage rate. Chairman Herlihy asked that the $100,000 for roads would get renewed. The Administrative Services Director said the funds should get renewed. Chairman Herlihy asked if it could be increased to $200,000 to cover both proposed projects (Vocelle and Tulip Drive). The Administrative Services Director said it may be too early to be alarmed since the local option gas tax is increasing and there will be $100,000 of recurring funds. Citizens Budget Review Advisory Board June 8, 2015 Page Seven C. Board general discussion of upcoming budget, including millage rates, various capital proiects, recommendations to City Council, form of recommendations to Council. Chairman Herlihy said last year the Board made one all-encompassing recommendation to Council and he suggested the Board give Council some options to pick from this year. Mr. Mota said that would be the best course of action. Chairman Herlihy said he would put that on the agenda for next time. 10. PUBLIC INPUT — None. i I �y /_\ y MITA l_\ 19:13:011 i' STM 12. BOARD MATTERS a. Comments/discussion by individual board members -None. b. Discussion of topics for next meeting Chairman Herlihy said he made some notes and will get with the City Manager and Administrative Services Director before the next meeting. The next meeting will be Monday June 29th, if Board members think of something before that time they could e-mail the Administrative Services Director and he will distribute it. Mr. Mota commended the Police Chief for the low crime rates noting she will receive an award from the North County Republican Club for all of her work. He also thanked Council Member Jim Hill for appointing him, Ted Pankowicz for recommending him, and his grandparents for the character he displayed tonight at the meeting. 13. Being no further business, Chairman Herlihy adjourned the Citizens Budget Review Advisory Board meeting at 7:16 p.m. BZ �� We �� Dat Chairman Ed Herlihy Date