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HomeMy WebLinkAbout01-30-2017 BAC MinutesCITY OF SEBASTIAN CITIZENS BUDGET REVIEW ADVISORY BOARD MINUTES OF REGULAR MEETING JANUARY 30, 2017 1. Chairman Herlihy called the Citizens Budget Review Advisory Board Meeting to order at 6:00 p.m. 2. Pledge of Allegiance was recited by all. 3. Roll Call Present: Mr. Ed Herlihy Mr. Tim Slaven Mr. Larry Napier Mr. Michael Frank Mr. Sergio Mota Mr. Harry Hall Members Not Present: Mr. Bruce Hoffman — Excused Also Present: Mr. Kenneth Killgore, Administrative Services Director Ms. Susan Mann, Recording Consultant 4. Introduction of Members Mr. Herlihy noted that Mr. Napier is new to the Board and welcomed him. He introduced Mr. Frank, himself, Mr. Herlihy, Mr. Moto, Mr. Hall and Mr. Slaven as returning members of the Board. He stated that Mr. Hoffman has rejoined the Board and will be present at the next meeting. 5. Selection of Chairperson Mr. Killgore noted that the order of business at the first meeting is to elect a Chairperson and Vice Chairperson. He stated that Mr. Hoffman had sent an email nominating Mr. Herlihy for Chair, but since he is not present the nomination is not valid. He requested nomination for Chair. A motion to nominate Mr. Napier the Chairman was made by Mr. Frank, seconded by Mr. Hall and passed unanimously by voice vote. Mr. Herlihy passed the gavel to Mr. Napier Citizens Budget Review Advisory Board Page 2 Of 4 Meeting Minutes of January 30, 2017 6. Selection of Vice Chairperson Mr. Napier called for nominations for Vice Chairperson. A motion to nominate Mr. Herlihy the Vice Chairman was made by Mr. Hall, seconded by Mr. Frank and passed unanimously by voice vote. 7. Approval of Minutes August 1, 2016 Meeting Minutes A motion to approve the Minutes of August 1, 2016 as presented was made by Mr. Herlihy, seconded by Mr. Hall and passed unanimously by voice vote. August 8, 2016 Meeting Minutes Mr. Killgore explained that although the minutes of August 8, 2016 indicate the minutes of August 1, 2016 were approved they were not complete at the time of the meeting and this is the first time the Board has had the opportunity to review them. Mr. Napier asked if Mr. Herlihy had had the opportunity to review the minutes. Mr. Herlihy responded to the affirmative. A motion to approve the Minutes of August 8, 2016 was made by Mr. Herlihy, seconded by Mr. Slaven and passed unanimously by voice vote. 8. Review of Fourth Quarterly Report — FY2016 Mr. Killgore noted that the report before the Board is for the Fourth Quarter of FY -2016. He explained that in accordance with the procedure that has been followed in past years he will provide details on any changes that have occurred. He stated that the largest change was the funding for the early retirement program. He provided details on how the program was funded. He stated that the procedure was presented to the Budget Review Board and City Council and was approved. He explained that included in the Board's package are graphics regarding the various funds and that he did not plan to review each, but would answer any questions the members have. Mr. Napier asked about the balance carry forward and the millage rate. Mr. Killgore explained the millage rate and that it was designated to repay the retirement program. He explained that revenue for the previous fiscal year was 101% of budget and expenses were 98% of budget and provided details on how this impacted the balance. He noted that included in the information provided is a list of capital improvement projects. He explained that this is ongoing through the year with some being completed and some being added. He called the Board's attention to the report concerning investments and financial accounts. He explained that he had received approval to open an account at Florida Trust after October 15` in the amount of $500,000 which is Citizens Budget Review Advisory Board Page 3 of 4 Meeting Minutes of January 30, 2017 not shown in the reports being reviewed. The account was opened with the anticipation that the income received from it would be higher than the other accounts held by the City. He noted that the return on investment has been below their historic record resulting in reduction of the initial investment, but he believes that on the long term the performance will improve. Mr. Killgore explained the 4th Quarter Accomplishments by Department and advised the Board that if they wanted any changes in format or content to let him know and he would advise the departments. Mr. Napier asked if the City publishes monthly financial statements. Mr. Killgore responded that there are no financial reports provided to the public, but there are internal reports on a monthly basis that are available. Mr. Killgore stated that the normal procedure is for the Quarterly Report to be presented to the Board for review prior to presentation to the City Council. However, due to the timing he had presented the report to the Council for their approval. He noted that he has the preliminary fiscal year financial reports from the auditors which include the yearend adjustments and modifications. Mr. Herlihy asked about the usefulness of the Departmental Accomplishments report. Mr. Killgore responded that he does not know who reviews the information. He is aware that it is time consuming for the departments to assemble their portion of the report and would be happy to discuss the matter with the City Manager. Following discussion it was agreed that although it is not used by all members, the report would still be included with the reports provided to the Board. Mr. Napier stated that he would find monthly financials more useful then quarterly. Mr. Killgore responded that he will look into providing the data monthly and possibly revamping his reports to provide the information in a more useful format. Mr. Hall asked if it would be possible to get preliminary information from staff regarding the items that will be discussed during the budget preparation. Mr. Killgore responded that the Council had published a revised Budget Review calendar which provides details on how the process will proceed though the coming months. 9. General Discussion by Members — Thoughts and Ideas for Upcoming Budget Year. Mr. Herlihy stated that he provided a memorandum listing the items of concern and discussion by the Board. He reviewed each of the items with a brief explanation. He stressed the need to look at the capital items, such as the IT Department to prevent aging equipment from impacting the City's ability to provide the necessary services. Mr. Hall asked for an update on the safety related items in the capital improvements budget for roads. Mr. Killgore responded that he anticipated having a presentation by Citizens Budget Review Advisory Board Page 4 Of 4 Meeting Minutes of January 30, 2017 the City Engineer at the Board's next meeting to provide details on those projects, funding, grants, etc. Mr. Killgore stated that it is necessary to make every effort to maintain the reserves and cited the recovery expenses from the recent hurricane. He provided details on the repairs and stated that the City is looking into FEMA to help with some of them. Mr. Napier stressed the need to insure everything that can be insured at a reasonable cost. Mr. Killgore responded to Mr. Herlihy's question regarding total hurricane cost by stating that it is approximately $2,000,000 and the City was not hit with the full force of the storm, but some of it may be covered by insurance or FEMA reimbursements. He explained that is why he supports maintaining a reserve of $5,000,000 to cover the related costs if City were to suffer a direct hit. He provided details on the costs encountered by the City for the police department, public works, etc. Mr. Napier stated that he supports allocating a portion of the balance to hurricane recovery so as to separate it from the total available funds. Mr. Frank stated that he would reserve his comments until input is received from City Council and the City Manager. Mr. Moto and Mr. Slaven concurred with Mr. Frank's position. Mr. Napier thanked Mr. Herlihy for his report and stated he will review it with Mr. Killgore. Mr. Hall asked for an update on the equipment that was to be purchased to do the swale maintenance. Mr. Killgore responded that is has been on order for some time, but it is still being assembled by the vendor. Mr. Killgore stated that the City Engineer could provide more details on the status. Mr. Herlihy stated that a similar situation exists with the pot hole patching machine the City ordered and has not received. 10. Review Budget Calendar and Discuss Next Meetinq Date (Monday, February 13, 2017) Mr. Herlihy stated that he will not be available on February 13`h and asked if the meeting could be delayed until the following week. Mr. Killgore stated that he will determine what day would be available and will email the Board. 11. Adiourn — There being no further business Chairman Napier adjourned the meeting at 7:16 p.m. By: c.�c �. Date: Ce 4�L— Mairman Lfitry Napier /sm