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HomeMy WebLinkAbout09-18-2017 CC Minutes 1st BudgetSSS ST_ -SAN HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL SPECIAL MEETING IST BUDGET HEARING MINUTES FY 2017/2018 Proposed Millage and Tentative Budget MONDAY, SEPTEMBER 18, 2017 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor McPartlan called the Special Meeting to order at 6:00 p.m. The Pledge of Allegiance was recited. ROLL CALL: Mayor Bob McPartlan Vice Mayor Andrea Coy Council Member Ed Dodd Council Member Jim Hill Council Member Linda Kinchen City Staff Present: City Manager Joe Griffin Interim City Attorney Cynthia Hall City Clerk Jeanette Williams Administrative Services Director Ken Killgore Airport Director Scott Baker Police Commander John Blackledge 4. PUBLIC HEARING/ADOPTION OF TENTATIVE MILLAGE AND FY2017/2018 BUDGET A. City Attorney Advises City Council on Procedure for Millage/Budget Hearing and Reads Titles of Resolutions No. R-17-28 Tentative Millage and R-17-29 Tentative Budget The Interim City Attorney cited F.S.200.065 which provides for discussion of the proposed millage rate necessary to fund the budget and if an increase is necessary, the specific purposes for the increase. She advised that the public is invited to speak and ask questions on both the millage rate and budget but Council should consider the millage rate before the budget. She read the titles of Resolutions No. R-17-28 and R-17-29. 14 The City Manager announced the proposed millage rate of 3.4000 mills which is 2.69% lower than the rolled -back rate. C. Budget Overview of Proposed Tentative Millage and Tentative Budget by CFO Ken Killgore (PowerPoint) The Chief Financial Officer displayed a PowerPoint presentation outlining the budget which is reduced by $177,305. (See attached) City Council Budget Hearing September 18, 2017 Page Two He briefly described the personnel changes, the capital projects, the three enterprise funds, and the special revenue funds. He said the final hearing would be held September 27 and he offered to answer any questions. D. Mayor Opens Public Hearing on Tentative Millage and Tentative Budget Vice Mayor Coy asked what would be the increase in funds if they went to the 3.4939 millage rate. The Chief Finance Officer responded it would be $105,024. E. Resolution No. R-17-28 -Tentative Millage for Calendar Year 2017 (Transmittal, R-17-28) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY. FLORIDA, ADOPTING A TENTATIVE MILLAGE OF 3.4000 MILLS FOR THE CALENDAR YEAR 2017; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. MOTION by Mr. Hill and SECOND by Mr. Dodd to approve R-17-28 adopting a tentative millage rate of 3.4000 which is 2.69% lower than the rolled -back rate. Vice Mayor Coy pointed out it would be better if they went to the rolled -back rate and put the $105,024 in abeyance so that when the additional homestead exemption comes through in a couple of years, residents won't be hit with an exorbitant tax increase. ROLL CALL: Vice Mayor Coy — Nay Mr. Dodd —Aye Mr. Hill —Aye Ms. Kinchen — Aye Mayor McPartlan — Nay Motion carried 3-2. F. Resolution No. R-17-29 FY 2017/2018 - Tentative Budget (Transmittal, R-17-29, Balances) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING 01 OCTOBER 2017 AND ENDING 30 SEPTEMBER 2018; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND/OR THE PRINCIPAL AND INTEREST PAYMENTS ON THE INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT SERVICE FUND, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AIRPORT FUND, AND BUILDING DEPARTMENT FUND AS PROVIDED FOR IN SCHEDULE "A", ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. MOTION by Mr. Hill and SECOND by Mayor McPartlan to approve R-17-29 adopting the proposed tentative budget for FY2017/2018. There was no public input. Mr. Dodd cited the local option gas fund deficit noted on page 118 and asked if there could be another way to finance the paving of Indian River Drive than with a deficit amount. The City Manager said the deficit ($39,966) is less than the reserve which is less than the 15% of expenses. The Chief Financial Officer added that there is actually $42,699 available. City Council Budget Hearing September 18, 2017 Page Three Mr. Dodd said he would rather show the budget reserve is less; than a credit balance. The City Manager said the financial policy requires the document to show 15% of expenses. Mr. Dodd asked if there might be a better plan. The City Manager said the deficit is indicated because it is less than 15% of expenses. Mr. Dodd pointed out that would be available to spend after the budget is approved, which is dropping money into reserves and showing a deficit, which doesn't make sense. The City Manager said it really is a positive balance. Mr. Dodd said the discretionary sales tax shows a $737K balance and he asked other Council Members if they would like to allocate some of that for additional street and sidewalk repairs as opposed to holding it in abeyance. The Chief Financial Officer at end FY19/20 there is unrestricted balance of $30,111 and if it is spent now, other projects would have to be adjusted. Mr. Dodd said it would be better to do the street repair when there is a need than guessing how much it will be to move the Public Works Compound. Mr. Hill said if the money is taken away from staffs plan to move the Compound, Council should identify how that difference would be made up or take the Compound off the Capital Improvements Program. Mr. Dodd said without an engineering assessment, it is hard to tell how much the move will cost. Mr. Hill said there should be a real number to move the Compound, and if money is used to improve roads, there should be a plan. Vice Mayor Coy asked for the road improvement plan, noting the plan for the roads was not included in the budget document. The City Manager said a road improvement plan was completed for up to calendar year 2017 and another plan for the future will be coming. Mr. Dodd noted there is a line item on page 87 for street milling and repaving but it doesn't identify projects; he would like to see that amount increased with identified projects. He also said the ending balance for recreational impact fees increased with the move of the Friendship Park enhancements to DST and asked if other park projects could be addressed. Vice Mayor Coy asked that hurricane damaged trees be removed and new be planted at Easy Street with the funds. The City Manager offered to bring back a road and tree plan to the next budget hearing. Mr. Dodd cited the $270K available for Indian River Lagoon Cleanup on page 121 and asked what that could be used for. The Chief Financial Officer said that was available for the Septic to Sewer Program and would be earmarked in the stormwater fund. Mr. Dodd said on page 124, the Golf Course indicates a $590K deficit until 2023 which indicates the City is comfortable with the recurring deficit. He suggested doing away with the deficit value reporting prior to the next budget cycle. 6:50 pm Ms. Kinchen asked what was planned for the $250K for swale improvement grants. The City Manager responded this grant program would repair about 25-30 pipes that are currently impeding the water flow at key points. Vice Mayor Coy asked if the City could receive a commitment from the benefiting homeowners to keep their pipe open. The City Manager said that would be part of the understanding in receiving the grant. City Council Budget Hearing September 18, 2017 Page Four Ms. Kinchen asked that the wayfinding signs in stock be used first before spending additional money. The City Manager explained the arrows are in the wrong direction on those signs. Also in response to Ms. Kinchen, he said the FPL Shade Trees could not be used at the Airport. ROLL CALL: Motion carried 5-0. G. Mr. Dodd —Aye Ms. Kinchen —Aye Vice Mayor Coy — Aye Mr. Hill —Aye Mayor McPartlan — Aye Mayor McPartlan announced the final public hearing on the millage rate and budget will be held on Wednesday, September 27, 2017 at 6:00 p.m. 5. UNFINISHED BUSINESS A. Resolution No. R-17-27 FAA Airport Improvement Program (AIP) Grant: Taxiways 'D' and 'E' Construction and Authorize City Manager to Execute Appropriate Documents (Transmittal, R-17-27, Transmittal, Correspondence, Agreement) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AIRPORT IMPROVEMENT GRANT AGREEMENT WITH THE FEDERAL AVIATION ADMINISTRATION (FAA) FOR THE CONSTRUCTION OF TAXIWAYS 'D' & 'E' AT THE SEBASTIAN MUNICIPAL AIRPORT; PROVIDING FOR CONFLICT; PROVIDING FOR AN EFFECTIVE DATE. The City Manager read the title to Resolution No. R-17-27, described the required matches, and recommended approval. MOTION by Mr. Hill and SECOND by Ms. Kinchen to approve Resolution No. R-17-27 and authorize the City Manager to execute the appropriate documents. ROLL CALL: Mr. Hill —Aye Ms. Kinchen —Aye Mayor McPartlan — Aye Vice Mayor Coy — Aye Mr. Dodd —Aye Motion carried 5-0. L3 Appropriate Documents (Transmittal, R-17-23. Transmittal, SJPA) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC TRANSPORTATION SUPPLEMENTAL JOINT PARTICIPATION AGREEMENT (SJPA) WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION REFLECTING AMENDED AMOUNTS FOR THE CONSTRUCTION OF TAXIWAYS 'D' &'E' AT THE SEBASTIAN MUNICIPAL AIRPORT; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. City Council Budget Hearing September 18, 2017 Page Five The City Manager read the title of Resolution No. R-17-23, stated this supplemental agreement reflects the state's contribution to the project and recommended approval. MOTION by Mr. Hill and SECOND by Vice Mayor Coy to approve Resolution No. R-17-23 and authorize the City Manager to execute the appropriate documents. ROLL CALL: Motion carried 5-0. Ms. Kinchen —Aye Vice Mayor Coy — Aye Mr. Hill —Aye Mayor McPartlan — Aye Mr. Dodd —Aye To comply with the statute, the Interim City Attorney restated that the proposed millage rate does not exceed the rolled -back rate computed. Vice Mayor Coy thanked the City employees who are working very hard to pick up the hurricane debris and FPL for helping those that received power but she planned to meet with them regarding their restoration plan because she didn't receive power until last night. She said her street was also delayed last October when Hurricane Matthew took out power. She asked the City Manager to invite FPL to the first October meeting to discuss their restoration plan. Mayor McPartlan reported that he spoke to MPO Executive Director Phil Matson regarding the way CR512 floods during major storms which will be brought up at a future meeting. He also said the Department of Children and Families is gearing up their emergency food stamp program to help individuals and families. He would forward information to the City Manager and thanked him again for dispersing information during and after Hurricane Irma. 6. Being no further business, Mayor McPartlan adjourned the special meeting at 7:09 p.m. Approved at the October 11, 20177 Regular City Council meeting. Mayor -Bob McPartlan ATTEST Jehfiette wlliam®4R711uPE C1ty Clerk 2018 Budget and Capital Program Presentation on Draft Budget and Capital Improvement Program City Council Special Meeting Monday, September 18, 2017 Prepared By: Ken Killgore Administrative Services Director and CFO General Fund Summary $ 682,998 Personnel Costs (6,762) Operating Expenses (164,035) Capital Equipment (503,812) Transfers to Other Funds (185,774) Contingency $(177,385) Net Budget Decrease 9/20/2017 it General Fund Overview o Millage at 3.4000 - $4,099 More in Ad Valorem Revenue Than Last Year But 2.69% Lower Than Rolled -Back. o Adding 3 Full -Time Positions and 1 Part-time. o Reserves Are Fully Replaced for the Costs of the Voluntary Early Retirement Program. 3 Other Considerations o Referendum for an Increased Homestead Exemption. 1st $25K Exempt 2nd $25K Taxed 3,d $25K Exempt 4th $25K Taxed 5th $25K Exempt o Helps on Property Over $100K per SOH. o Roll -back Disregards Extra Exemption. o Offsetting Millage Increase Will Shift Burden to Rentals and Commercial. 4 9/20/2017 2 Other Considerations Ballot Nov. 2018 - Effective Jan. 1, 2019 — FY2019-20 (Dollars in Millions) 3.400 Mills Now Total Homestead Others Tax Proceeds $3.797 $1.625 $2.172 of Proceeds 100.0% 42.8% 57.2% 3.7911 Mills - $120 Added Exemption - 11.5% Increase Tax Proceeds $3.797 $1.375 $2.422 % of Proceeds 100.0% 36.2% 63.8% 3.8277 Mills - $130 Added Exemption - 12.6% Increase Tax Proceeds $3.797 $1.352 $2.445 % of Proceeds 100.0% 33.1% 66.9% Personnel Cost Up $682,998 o 3% Allocated for Employee Pay (CFPEA & CFPBA Tentatively Agreed). o 2.3% Higher Medical Insurance Premiums versus 10% Allocated. Suggesting allocation for pay increases for employees demonstrating extraordinary performance or assuming significantly more duties and responsibilities. 9/20/2017 3 Personnel Cost (Continued) o General Fund Position Changes: Audio Visual Technician (Temp). Community Development Director/CRA Manager. Additional Police Officer and 2 Part-time Police Officers. Removed City Engineer Position. Changed 1 Maintenance Worker to 2 Part-time in the Roads & Maintenance Division. Added 2 Maintenance Workers in Stormwater Division. Reduced 1 Part-timer in Facilities Maintenance. Reduced Gymnastic Assistants Part-time from 10 to 8. Part-time Cemetery Maintenance Worker to Full-time. o Net Change of 3 Full-time, 1 Part-time. All Other Expenditures o Operation Cost Down $6,672. o Capital Purchases Down $164,035: Shifted to DST and Recreation Impact. Deferred Replacements — Use R&R. o Transfers Down $503,812: Primarily for Street Repaving and the Indian River Lagoon Account. 8 9/20/2017 0 Capital Projects Update o Incomplete Projects - Actively Underway: $ 10,804 G. F. - Payroll Automation $ 35,135 R. 1. - Community Center Parking $ 12,313 DST - Audio Visual Equipment $ 15,002 DST - MIS Servers (User Licenses) $ 55,875 DST - Police Evidence Garage $ 14,750 DST - Working Waterfront Phase 2A $139,683 DST - Golf Clubhouse $150,000 DST - Oyster Point Drainage (Baffle Box) $ 23,928 SWT - Oyster Mats o Projects On Hold - Not Yet Committed: $125,500 R.I. - Football Field Restrooms $ 31,461 SWT - Pipe Sliplining $ 50,000 SWT - Road/Sideyard Piping Enterprise Funds: Golf Course o Assuming More Revenue Due to Capital Improvements and Upgrades to the Restaurant. o $6,000 Increase in Airport Rent. o Paying Principal and Interest on Building Fund Inter -fund Loan. o Cart Lease Approved 6/28/17 9 10 9/20/2017 5 Enterprise Funds: Airport o Rentals Projected Higher Due to Income from Hangar C. o $10,000 Allocated for Economic Development Advertising. o $10,000 Allocated for Entrance Signage. o Repaying $25,000 of General Fund Loan and Scheduled Amortization of Loans from Discretionary Sales Taxes. Enterprise Funds: Building o Operating Revenue Estimates Reduced. o Expecting $31,744 for Principal and Interest on Golf Course Loan. o No Additional Loans are Assumed. 12 9/20/2017 0 Special Revenue and Other Funds: Special Revenue Funds o Local Option Gas Tax: • Allocating $451,000 for Repaving Indian River Drive next year. • Allocating $320,000 for Repaving Pleasant View, Rollinghills and Schumann in 2019. • Allocating $250,000 Each Year After. o Parking In Lieu Of Fund: • $13,775 on Last Year of Agreements. • Expecting $71,442 Year End Balance in 2018. 13 Special Revenue and Other Funds: Special Revenue Funds o Discretionary Sales Tax: • Computer Upgrades and PC Replacements Scheduled for 2019. • Replacement of Police Vehicles. • Pickle Ball - 4 Courts in 2018, 4 in 2019. • Shoreline Work at Working Waterfront in 2019. • Matching on Stonecrop Drainage in 2018. • Police Radio System Upgrade. • Relocation of Public Works Compound. • Stormwater Heavy Equipment. • Matching on Several Airport Projects. • New Irrigation System at Cemetery. 14 9/20/2017 7 Special Revenue and Other Funds: Special Revenue Funds o Riverfront CRA Fund: • Repairs at Working Waterfront. Special Events. Sign Grant Program adjusted to $40,000. Septic -to -Sewer Connection Program after 2018. ($230K Allocated in 2017, Plus $240K Earmarked for Lagoon.) • Updating CRA Master Plan in 2018. • Annual Funding for Riverview Park Trees. • Funds for Wayfinding Signage in 2018 and Street Signage in 2019 and 2020. 15 Special Revenue and Other Funds: Special Revenue Funds o Recreation Impact Fee Fund: Barber Street Ballfield Lighting in 2018. • ADA Playground in 2018. o Stormwater Utility Fund: • Stormwater Park Electric, Pump/Baffle Box Filters, Replacing Equipment, Road Crossing & Side Yard Piping. • Increasingg Annual Transfer to General Fund to About 75% of General Fund Spending. 16 9/20/2017 9 Special Revenue and Other Funds: Special Revenue/Trust Funds o Law Enforcement Forfeiture Fund: p Used Only for Unbudgeted Items. o Cemetery Trust Fund: ® Headstone Straightening Project in 2018. 1/2 of Lot Sales Are Set Aside for offsetting Operating Expenditure. 1/2 of Lot Sales Are Set Aside for Providing Additional Internment Sites. 17 Special Revenue and Other Funds: Debt Service Obligations o Discretionary Sales Tax Debt Service Fund: Final Maturity was 4/01/17. o Stormwater Utility Debt Service Fund: Includes Required Bank Note Payments. $1,912,000 Outstanding as of 9/30/17. , Final Maturity on 5/01/22. o Paving Note: ® Included in Local Option Gas Tax Fund. $1,263,000 Outstanding as of 9/30/17. Final Maturity on 2/01/22. 18 9/20/2017 Al Public Hearing Dates o Final Hearing on Millage and Budget at Regular Meeting on Wednesday, September 27th. o Questions/Comments? 19 9/20/2017 10