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HomeMy WebLinkAbout02-21-2017 BAC MinutesCITY OF SEBASTIAN CITIZENS BUDGET REVIEW ADVISORY BOARD MINUTES OF REGULAR MEETING FEBRUARY 21, 2017 1. Chairman Napier 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. Larry Napier Mr. Michael Frank Mr. Sergio Mota Mr. Harry Hall Mr. Bruce Hoffman Members Not Present: Mr. Tim Slaven — Excused Also Present: Mr. Kenneth Killgore, Administrative Services Director Mr. Frank Watanabe, City Engineer Ms. Susan Mann, Recording Consultant 4. Approval of Minutes A. Meeting of January 30, 2017 Mr. Napier noted that there was a typographical error in the minutes that could be corrected after the minutes were approved. He called for a motion. A motion to approve the minutes as corrected was made by Mr. Herlihy, seconded by Mr. Mota and carried unanimously by voice vote. 5. Review of First Quarterly Report— FY 2017 Mr. Killgore stated the significant changes by Council was the reduction of the millage rate to 3.800; repayment of half of the expense of the early retirement program, the other half would be allocated for road work; and the purchase of two dump trucks. He stated that he is pleased to report the Audited Financial Statements were received on February 17, 2017 which is a month earlier than in the past. He reviewed the major revenue sources and reported that they are higher than budgeted for this point in the year. He reviewed the major expenses and stated that there are some areas that are higher than budgeted; the expenses related to the hurricane contributed to those increases. He continued to review each of the other funds and provided details on income and expenses. He stated that Mr. Watanabe, City Engineer, will provide an overview of the capital projects he is involved with. Citizens Budget Review Advisory Board Page 2 of 5 Meeting Minutes of February 21, 2017 Mr. Watanabe provided a detailed review of the Capital Improvement Plan. He explained the start time, current status, funding source and estimated completion dates for each. He explained that because the City handles projects with design, permitting, etc. all together and some are grant related that is why some may seem to remain open for a longer period of time. Mr. Moto asked for an update on the grant application for the installation of a traffic signal at Joy Haven and Barber. Mr. Watanabe explained that since there is a school bus stop at that location he applied for a grant designed to increase safety for school children when crossing the street. The application was rejected because the intent of the grant is installation of sidewalks, not traffic signals. As a result of this he is exploring other grant opportunities. Mr. Hall asked for details on the funding sources available for the traffic signal. Mr. Watanabe responded that the grant to increase crossing safety is federally funded and is distributed by FDOT. He provided details on how the grant process works with federal, state and local agencies. Mr. Watanabe stated that for the two traffic signals the cost would be approximately $300,000. Mr. Hall made numerous suggestions on funding possibilities; Mr. Watanabe explained that many of the sources have their own designated uses for projects which are transportation related and the traffic signal does not fall into that category. He stated that he is working on securing grant money, but it may take some time. Mr. Herlihy asked what Mr. Watanabe projected the roads budget to be for the upcoming fiscal year. Mr. Watanabe stated that with all the rain the City has been getting is taking its toll on the roads. He explained that every effort is being made to inspect the roadways and perform repairs before a large resurfacing is needed. Mr. Napier stated that the CIP budget is very difficult to follow and suggested that there be a report showing the source of the funding for each project and the related expenses. He stated that it would be helpful if the projects placed on hold were so noted. He referred to the budget adjustments and asked what the $115,856 was. Mr. Killgore responded that it is a total of all transactions that affected the balance for the quarter. He explained that the Committee is provided a summary and not transaction details. Mr. Hall asked for details on how the annual computer replacement program for the Police cars is handled. Mr. Killgore responded that usually 7 to 8 vehicles are replaced per year to keep the fleet in good working order which results in a life of approximately 6 years. He stated that the computers are replaced approximately every five years, but with the rapidly changing technology it is difficult to predict how much to budget in the out years. He provided details on the replacement budget and process for the City's computers, software and other technology equipment. He stated that approximately $50,000 is allocated annually for IT equipment. He stressed the need to continue to budget for this because of the constant change in equipment and systems. He stated that the City has a consultant who reviews the City's IT equipment and provides guidance on what updates are needed. Mr. Herlihy explained that during the budgeting process it was decided to have a complete equipment update every five years. He Citizens Budget Review Advisory Board Page 3 of 5 Meeting Minutes of February 21, 2017 stated that if it is done partially every year there will be a variety of ages and versions of equipment and software being used which disrupts the continuity of computer operations throughout the City departments. Mr. Hall suggested the Board consider budgeting to replace approximately 20% of the personal computers annually, rather than all of them every five years. Mr. Killgore responded that the procedure in use currently was recommended by the experts in order to keep the equipment from falling so far behind technology. Mr. Killgore reported that the new investment account that he had set up a number of months ago which had shown a loss has now recovered. He explained that he is optimistic, but will watch it closely. Following a detailed discussion about the type accounts and the pros and cons of each, Mr. Killgore explained the reason he set up this third account was to diversify the City's holdings. Mr. Killgore reviewed the R&R fund and explained that a sizable expense is facing the City to replace the Police Department's air conditioner. Mr. Hoffman asked if Mr. Killgore is concerned about meeting budget on the local option gas tax. Mr. Killgore responded that the accrual posting is not done monthly and that causes the lag in the amounts. Mr. Hoffman expressed concern about the Building Fund being used for other expenses because if the permitting decreases the revenue will decrease too and this may present a problem. 6. Two Alternate Member Council Appointments to the Committee Mr. Killgore explained that the Council is planning to add two alternate members to the Committee of seven. This would result in a total of nine members so if one of the regular members were absent there would be an alternate to vote in their place. Mr. Herlihy noted that a motion was needed to approve the 15t Quarter 2017 Budget. A motion to approve Resolution R17-06 was made by Mr. Herlihy seconded by Mr. Hall. Mr. Napier clarified that the motion was to approve the transmittal of the report to the Council. Mr. Herlihy responded that was correct. Mr. Napier called for a vote; the motion passed unanimously by voice vote. 7. Budget Goals and FY 2018 Capital Improvement Plan A. City Council Meeting of February 8, 2017 — Motion Approved "not one penny more than we have to — to maintain our quality of life — will be budgeted in the next budget." B. Email from Joseph Griffin to City Council on Capital Reserves and Events. Mr. Killgore stated that the two items listed above are provided for information purposes only. He stated that the motion passed by the Council was meant to provide direction to Citizens Budget Review Advisory Board Page 4 of 5 Meeting Minutes of February 21, 2017 the Board. He explained that the emails were an effort to clarify why some numbers were different. Mr. Napier stated that the motion seemed open ended. Mr. Napier and Mr. Killgore had a detailed discussion of the procedure for identifying the source of funds for various projects. Mr. Killgore stated that during the past budget year much progress had been made in correcting the allocation of funds to the appropriate accounts. He noted that the general fund is primarily for operating expenses. Mr. Killgore stated that during the budget process he works closely with each department identifying their needs; then with the City Manager for his input; then the budget comes to the Board for their review and input; then it goes to City Council for their approval. Mr. Herlihy asked when the building would be paid off. Mr. Hoffman responded that it would be in April and asked what those funds would be used for. Mr. Killgore responded that since he did not know if the DST would go beyond 2019 he had not budgeted for it. Mr. Napier stated that it was renewed for another 15 years. Mr. Killgore stated that in light of the renewal there would be funds for capital projects that qualify. Mr. Killgore explained that operating expenses are what affects the tax rate. There was a detailed discussion about the best use of the additional funds that would be available and various ideas were expressed. Mr. Killgore stated that when looking at capital projects consideration must be given to upkeep of that item after the initial expense was paid. Mr. Napier suggested establishing a contingency fund to cover unexpected expenses. Mr. Killgore responded that the City does not have a contingency fund because those monies would be used, but not always for the purpose they were set aside for. Mr. Hall asked if the June 12th date to receive the recommended CIP and operating budget is firm. Mr. Killgore responded that the dates shown are not firm, but are estimates based on previous years. Mr. Napier stated that the final information from the County is usually not available until the later part of June. Mr. Hall stated that he is concerned the Board receives the budget in time for them to review what staff has requested, discuss what their thoughts are and receive input from the public. 8. Public Input —None 9. Staff Matters — Ken Kilgore Administrative Services Director Mr. Killgore stated that he wanted to brag again about completing the Comprehensive Report earlier this year. He stated that staff will be providing the Board a monthly report by account as requested by Mr. Napier. Mr. Napier responded that receiving the report quarterly will be fine with him. He requested that it be provided after the adjusting entries are made. Mr. Napier requested a hard copy of the current year's budget. Mr. Killgore responded that he would provide one to any Board Member that wants one. Citizens Budget Review Advisory Board Page 5 of 5 Meeting Minutes of February 21, 2017 10. Committee Member Matters A. Comments/Discussion by Individual Members Mr. Herlihy reminded the Board that in previous years the Board has prepared a Power Point Presentation on the Budget for the Council. He explained that he prepares the presentation, sends it to Mr. Killgore who forwards it to the other Board Members. The Board Members send their comments or changes to Mr. Killgore who forwards them to him for input. Mr. Hall requested that the Board approve continuing to make a Power Point Presentation of the Budget to the City Council. The consensus was unanimous to continue. Mr. Herlihy stated he would prepare it. Mr. Herlihy suggested having a meeting earlier than the one scheduled in June if Mr. Killgore or the City Manager thought it would be beneficial. Mr. Killgore agreed that if there is any information that would be helpful or if alternates are selected a meeting could be scheduled. A discussion of the voting/discussion arrangements for alternates was conducted. Mr. Herlihy stated that during the previous budget review process there were three meetings at which there was not a quorum, which is the reason for appointment of the two alternates. Mr. Frank stated that he believes that waiting until the Board has more firm information from the County and from the City Manager is the best approach. Mr. Killgore responded that he is available should the Board have any questions. Mr. Napier agreed with Mr. Frank's position to wait until more firm information is available. B. Proposed Topics for Next Meeting Mr. Napier called for input about topics, hearing none he suggested discussions continue as were conducted this evening. Mr. Herlihy cautioned the Board to be aware of the Sunshine Law. He suggested directing all emails to Mr. Killgore who will forward them to the other Board Members. A detailed discussion concerning the Sunshine Law was conducted. 11. Committee Member Next Meeting Date (Monday, June 5, 2017) 12. Adjourn — There being no further business Chairman Napier adjourned the meeting at 7:48 p.m. By: , rt>. i%�.4 --- Date: 'ChairmarM-arry Napier /sm