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HomeMy WebLinkAbout01-29-2018 BAC MinutesCITY OF SEBASTIAN CITIZENS BUDGET REVIEW ADVISORY BOARD MINUTES OF REGULAR MEETING JANUARY 29, 2018 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. Larry Napier Mr. Ed Herlihy Mr. Bruce Hoffman Mr. Harry Hall Ms. Andrea Ring (A) Ms. Nancy Veidt Mr. Michael Frank Also Present: Mr. Kenneth Killgore, Administrative Services Director Ms. Cindy Watson, Human Resources Manager Ms. Janet Graham, Technical Writer 4. Introduction of Members Mr. Killgore welcomed Ms. Veidt as a new member of the Board. He stated the Board has one at -large vacancy as well as an alternate member vacancy. 5. Selection of Chairperson Mr. Napier called for nominations for Chairperson. Mr. Hall nominated Mr. Napier for another term. Mr. Herlihy seconded the nomination. Mr. Napier called for any additional nominations. Ms. Ring nominated Mr. Herlihy. Motion died for lack of a second. Motion for Mr. Napier to continue as Chairman was voted upon by voice vote. Vote was 6-1 in favor with Ms. Ring being opposed. Motion carried. 6. Selection of Vice -Chairperson Citizens Budget Review Advisory Board Page 2 Meeting Minutes of January 29, 2018 Mr. Napier called for nominations for Vice -Chairperson. Mr. Hoffman nominated Mr. Herlihy, seconded by Ms. Ring. Mr. Hoffman was nominated by Mr. Frank. Mr. Frank was nominated by Mr. Hall. No seconds were made except for Mr. Herlihy. Motion for Mr. Herlihy to serve as Vice -Chairperson was voted upon by voice vote. Vote was unanimous at 7-0 in favor. Motion carried. 7. Approval of Minutes A. Meeting of August 14, 2017 Mr. Hoffman brought up Item 5, Page 2, which states: "The Operating Budget has not changed with the millage..." I suggest we add the word "proposed" to the Minutes. Mr. Killgore asked for a correction to the Minutes to insert the word "proposed" as to the millage. Mr. Napier called for any other additions or corrections. There being none, the Minutes as amended are approved. 8. Review of Fourth Quarterly Report — Fiscal Year 2017 Mr. Killgore presented and explained a detailed report for the quarter ending September 30, 2017 (SEE ATTACHED), which is the end of the fiscal year. He began with a copy of the Resolution and the budget changes that were being recommended to Council. They have already been approved. He presented this report on January 10, 2018, to City Council. The budget changes at the end of the year consisted of cleaning up for projects that had been closed out or needed to be closed out. There were some recommendations at year end that included expenditures out of the Renewal and Replacement Reserve, a good part of which went for renovations of the clubhouse at the Golf Course. Initially it was thought that that would take some capital investment A $50,000.00 grant was gotten from the FAA because, being on airport property, it qualified under their provisions. Plus, $185,000.00 was allocated of DST money. Once it was discovered there was much more that needed to be done to bring it up to code, plus electrical work, etc., additional money was spent improving the inside of the clubhouse, including the restaurant. He stated only 95% of the General Fund budget was spent. Revenues were only 98% of projected. Citizens Budget Review Advisory Board Page 3 Meeting Minutes of January 29, 2018 Next he addressed Special Revenue Funds and that the DST revenues continue to grow. He stated we are in compliance with Debt Service provisions of our long-term debt. Regarding the Golf Course, the deficit was increased this year. A big part of that deficit was because of the loan for the irrigation system of $700,000.00 which was borrowed from the Building Fund. The Airport also shows a deficit, but the revenue outlook for coming years looks more like a realistic balanced budget. The Building Fund looks very good, although about $700,000.00 of about $1.3 million in reserves is not available. Regarding the Capital Project Status Report, we are doing better in regard to managing the projects and getting them completed before year end. Some of the significant remaining funds include monies that were allocated for the Indian River Lagoon and making some $247,000.00 for septic -to -sewer connections that are outside the CRA area. Another large project was the Barber Street restrooms, which were not completed by the end of the year, as well as the clubhouse reconstruction, which has mostly been spent. One project that came in at the end of the year andcasrt'f extended was the Oyster Point drainage. was The report on General Fund Cash Reserves explains what the reserves are. At year end we have approximately $4 million. Since year end on September 30, 2017, we continued to spend on the docks project as a result of Hurricane Matthew. We have made the final payment of $350,000.00 for the docks in fiscal 2018. We also paid the debris pick-up fee on Hurricane Irma of $364,000.00. So right now we have reserves of only about $3.3 million. Mr. Napier inquired if that amount is close to what the insurance policy requires. He asked Mr. Killgore to do a review of our insurance policies to make sure we have all our assets covered. Mr. Killgore stated the policy now reads that we would keep a balance of $5 million. He stated they covered the four docks, which premium is about $50,000.00 a year. He stated they did talk about changing that wording on adoption of the financial policies for this year. Regarding Hurricane Matthew, he stated that FEMA has not reimbursed any money so far. He is ready to submit the documentation that FEMA has requested, and FEMA has advised that it will be another 30 days before the City gets a check from them, but he expects that it will be more like a couple months. On the Investment Report, our monies are divided among three funds. Earnings are trending a bit higher but still less than 2%. Citizens Budget Review Advisory Board Page 4 Meeting Minutes of January 29, 2018 The remaining reports are the department reports. Mr. Killgore asked for questions from the Board. Ms. Veldt stated she is concerned about the amount of the Equipment Facilities Repair Fund of the General Fund Reserves that is being spent on the Enterprise Funds. She would not like to see that continue in the future since that is General Fund money. Mr. Hoffman stated the Golf Course can't generate enough money to fund its capital improvements. He asked where the revenue from the sale of the used golf carts went, and Mr. Killgore stated it's in the Golf Course revenue under Miscellaneous. Mr. Hoffman also inquired about storm water fee revenue. Ms. Veidt stated the vacant lots do pay, but less than lots with houses on them. Mr. Hoffman inquired why the MIS Department expenses were so low last year, only 71% of their budget. Mr. Napier suggested they had an unfilled position. Mr. Killgore stated that one position was vacated early in the fiscal year and was left vacant for some time. In the Capital Projects report, Mr. Hoffman inquired about several projects that were completed in 2012-13-14, whether they will be removed from the report. Ms. Veidt stated that once the projects are closed, they will drop off the report. Mr. Hoffman questioned regarding the Indian River Lagoon project that has $247,000.00 left, whether that money is being taken out of Capital and being transferred with the other monies that are going to the septic, or will it be left in this report. Mr. Killgore explained that it is not a capital project; it is really a grant, and in this year's budget it has been earmarked for additional septic -to -sewer programs throughout the C ity. Mr. Herlihy inquired if we still have money set aside for the All Aboard Florida railroad crossings. Mr. Killgore said no. He also inquired of Mr. Killgore if the audit is done. Mr. Killgore stated he still has some information to provide for the auditors, but he should be on schedule to deliver a report at the second meeting in March. Mr. Herlihy stated that the City has agreed to spend $750,000.00 to buy a piece of property on the waterfront, so that is going to change the budget for this year. Mr. Citizens Budget Review Advisory Board Page 5 Meeting Minutes of January 29, 2018 Killgore stated the proposed funding for that was the majority out of DST funds, $500,000.00 out of DST and $250,000.00 out of the CRA. Mr. Hoffman stated that he understood that monies were going to be shifted from the Public Works garage compound. Mr. Killgore stated yes, that is correct. Mr. Hall stated he has no concerns with the budget. Mr. Napier is satisfied with the budget. He requested Mr. Killgore to review our insurance to make sure that all of our assets are insured. 9. Board Matters A. Comments/Discussion by Individual Board Members — Thoughts and Ideas for Upcoming Budget Year Ms. Ring mentioned that there is a pump in the canal system that is not working, and that pump should be working to help with drainage. The situation is brought up to the Natural Resources Board continually. Maybe it can be addressed in next year's budget. Another item is, when the Boy Scouts did the oyster mat project, they took money from having a baffle box installed. She stated maybe some of the money in the Indian River Lagoon project could go towards getting another baffle box. She gets input that we are not maintaining the baffle boxes. The Natural Resources Board want us to address the chemicals situation —what chemicals we are putting into the canal system. Mr. Hall stated for the last two fiscal years we have discussed the intersections at Barber and Joy Haven and Concha. There is no street lighting in that area and no lighting for pedestrians on the bridge. Mr. Herlihy stated that City Council got a new pavement assessment. He will get a copy to Ken, and they will get it out to the rest of the Board for their study. This is a matter that the Board needs to pay strict attention to when going through the budget into June and July in order to make appropriations for this year. Scott Baker is now heading the DPW as well as the Airport. Citizens Budget Review Advisory Board Meeting Minutes of January 29, 2018 Page 6 Mr. Hoffman then stated he felt the Board should not discuss next year's budget, as City Council will be discussing it at the 14th meeting. Hopefully, this Board will get priority and direction from Council as to what their thoughts are. Mr. Napier stated we should be spending $1.5 million a year on roads until we get caught up. We will wait until we get a tentative budget back and are able to study it. Mr. Herlihy stated the area on Barber Street east of Schumann Drive needs to be addressed as to potholes, the sharp curve on Barber Street, etc. Ms. Ring stated there is a hotline for potholes which is 581-1111. 10. Review of Budoet Calendar and Discuss Next Meetino Date (Mondav, February 12, 2018. 11. Reports from Staff -- None 12. Adjourn -- There being no further business, Chairman Napier adjourned the meeting at 7:05 p.m. ByDate: 3l3 AS AME�1b�D