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HomeMy WebLinkAbout07-31-2017 BAC MinutesCITY OF SEBASTIAN CITIZENS BUDGET REVIEW ADVISORY BOARD MINUTES OF REGULAR MEETING JULY 31, 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. Sergio Mota Mr. Bruce Hoffman Mr. Harry Hall Ms. Andrea Ring (A) Members Not Present: Mr. Tim Slaven— Excused Mr. Michael Frank Ms. Victoria Flaherty (A) Also Present: Mr. Kenneth Killgore, Administrative Services Director Ms. Susan Mann, Recording Consultant 4. Approval of Minutes A. Meeting of July 10, 2017 Mr. Napier called for additions, deletions or corrections to the July 10, 2017 minutes. A motion to approve the minutes as presented was made by Mr. Herlihy and seconded by Mr. Hoffman. Mr. Napier stated that he had a question concerning the motion the Committee made to remove the last slide recommending that a homestead exemption fund be established. In reading the City Council meeting minutes, it stated that a fund was recommended by the Board. Mr. Herlihy stated that the presentation including the new last slide was sent to the Board, by Mr. Killgore, two days prior to the Council meeting and there was no response from any of the Members. Mr. Killgore stated the email he sent out explained that the last slide in the original presentation was removed and replaced with the one that was shown to Citizens Budget Review Advisory Board Page 2 Meeting Minutes of July 31, 2017 the Council with a "suggestion to be considered." He noted that the slide did not make reference to a special fund being recommended, but that it was only a suggestion. Following discussion regarding what was presented to the City Council Mr. Napier called for a vote on the motion. ROLL CALL: Mr. Herlihy —Yes Mr. Mota —Yes Mr. Napier —Yes Mr. Hoffman —Yes Mr. Hall —Yes Ms. Ring —Yes Motion Passed: 6 — 0 5. Unfinished Business Mr. Killgore reported that the City Council set the millage rate at 3.8 by a 3/2 vote; a motion setting the millage at 3.5, which is a rounded off rolled back millage, failed; and the budget is balanced at 3.4 mills. He stated that as a result of an RFP the employees' health insurance which was budgeted for a 10% increase will only be 2.3%. He estimated the savings would be approximately $70,000. He stated that this savings could be used to further reduce the millage or possibly establishing a fund to be used for pay increases for employees who excel at their jobs. He provided details on how the union contract is structured regarding pay increases. He stated that he would like to see an account established which is under the control of the City Manager, from which transfers could be made to the appropriate payroll account for the employee receiving the increases. He suggested that also a portion of the money could be used for wellness incentives. He explained, regarding the increased homestead exemption, that the year it is adopted the millage rate will be a roll forward rate and not a rolled back rate. He explained that the tax notices would have to reflect the increased millage rate with no explanation of why or reference of the lost revenue due to the homestead exemption increase. He stated that there would be a Council Budget Workshop at which he will make the same budget presentation that he made to the Committee. He reported that the 5 year capital lease on the golf carts was approved by the City Council; the status of the management of the restaurant should be determined shortly, the decision would be by staff with approval by City Council; the Golf Course rental expense is being reconciled with the Airport's rental income; there was no change to the Building Fund; the Pickle Ball Park funding is coming from the DST; the ball park lighting expense will all be in next year's budget rather than being split between two years. He stated that after the changes are made and it goes before City Council next week the website will be updated so the current proposed budget will be available to the public prior to the hearings in September. Mr. Napier asked for clarification on the savings on the employees' health insurance, if it was $70,000 or $7,000 as Mr. Hoffman commented. Mr. Killgore responded that the savings is $70,000. Mr. Napier stated that is a significant savings. Mr. Napier asked if staff is seeking a recommendation on the use of the savings. Mr. Killgore responded that there are a number of options being discussed. Citizens Budget Review Advisory Board Page 3 Meeting Minutes of July 31, 2017 Mr. Hoffman asked if consideration had been given to placing the funds in the Police Pension Fund. Mr. Killgore responded it had not been discussed. Mr. Hoffman stated that he would support a presentation being made to the Board on the Police Pension Fund. There was discussion regarding the fund in which Mr. Killgore provided details on the new Police Pension Ordinance which will go before the Council. He explained in detail the deductions from the employees' pay and the City's contribution a to the fund, how the formula was changed in 2012 and then changed back this year. He provided details on the State funding that was signed over to the City. He explained the provision for the COLA in the new Ordinance. Mr. Killgore stated that he will be happy to place a presentation of the Police Pension Fund on the next agenda if so desired or can provide information to individual Board Members. He stated that the Pension Board now has 5 different investment advisors rather than just one, but even with the diversification, the plan still has not achieved its investment goal. Mr. Herlihy asked if it would be beneficial to put the money into the pension fund. Mr. Killgore responded that the way it is designed from an actuarial standpoint the funds would not be significant to improving the position of the fund. Mr. Hall asked for details on the ball field lighting and what fiscal year it will be done. Mr. Killgore responded that originally the plan was to split it between FY2018 and FY2019, but then it was agreed that it will all be done in FY2018. 6. Public Input Mr. Napier called for public input; hearing none he continued with the agenda. 7. Staff Matters — Ken Killgore, Administrative Services Director — None 9. Board Matters A. Comments/Discussion by Individual Committee Members Mr. Herlihy stated that the Council opinion about establishing a "cushion" was split 3/2; concern was expressed that much more discussion is required before any decision could be made. Ms. Ring thanked staff for their explanation of the homestead exemption and how it applies to both homesteaded property and non -homestead property. She stated that at the Council meeting the Mayor explained that monies in the general fund cannot be segregated for a special use. Mr. Hall stated that in his opinion there has been much more constructive discussion about the budget this year; he supports the proposed budget and feels it is in line with the needs of the City. He asked if the 3rd quarter review will be conducted. Mr. Killgore Citizens Budget Review Advisory Board Page 4 Meeting Minutes of July 31, 2017 responded that he plans to present it at the August 14, 2017 meeting for the Committee's review and approval prior to his presenting it to the City Council. Mr. Napier stated that he wants to see the final budget before he comments. He expressed that he still supports budgeting more for roads and drainage. B. Discussion of Topics for Next Meeting on August 14, 2017 Mr. Napier stated that any Board Member can request a topic be placed on the next agenda and now is the time to make the request. Mr. Hoffman responded that he is satisfied with the brief discussion of the Police Pension Fund, but has concern about unfunded liabilities and would prefer to see money placed toward that rather than start a new program. Mr. Napier called for any other comments about the agenda topics; hearing none instructed Mr. Killgore to follow the same format for the next Agenda. 9. Adfourn — There being no further business Chairman Napier adjourned the meeting at 6:50 p.m. By_ V ! y�-�-�� Date: 5�lt Chairman arty Napier r� Approved as corrected on page 3, paragraph 1.