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CITIZENS BUDGET REVIEW ADVISORY O«
AGENDA
:00 P.M. MONDAY1
CITY COUNCIL CHAMBER, 1225, MAIN STREET, SEBASTIAN,
1. BALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. APPROVAL OF MINUTES: Meeting of June 4, 20,18
0. UNFINISHED BUSINESS:
Presentation, of DraftBudget wNAdministrative
Director/CFO and Committee discussion of Draft Budget w Capital
Improvement Plan,
a. Comments/Discussion by Individual Committee Members
w Discussion of Topicsfor -- n on • 2018
1111F.11,
Agenda Attachments:
Minutes for Meeting of June 4, 2018
Graft Budget and Capital Improvement Plan — Available at the following link:
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CITY OF SEBASTIAN
CITIZENS BUDGET REVIEW ADVISORY BOAR1
MINUTES OF REGULA
4R MEETING
JUNE , 2018
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,
Present:
Mr. Larry Napier
Ms. Nancy Veidt
M0&+-'r#0n)-i -.-n
• r. Ed'Herl�ihy
• r. Michael Frank
Ms, Andrea Ring
Absent:
Mr. Harfy Hall
Also Present:
Mr, Paul Carlisle, City Manager
Mr. Kenneth Killgore, Administrative Services Director
Ms. Cynthia Watson, Human Resources Manager
Ms. Janet Graham, Technical Writer
MIRM
1T,r. Napier called' for any additions or corrections to the Minutes. There being none, a
motion to accept the Minutes was made by Mr. Hoffman, seconded by Mr. Herlihy,
voted on and': approved unanimously by voice vote.
5. Review of Second Quarterly Report for Fiscal Year 2018-,2019
4
CITIZENS BUDGET REVIEW ADVISORY BOARD PAGE 2
Meeting Minutes of June 4, 2018
Mr. Killgore stated the report is in its standard format and will go to City Council for any
adjustments that are needed to the budget. In the Summary of Organization, the
Audio/Visual division was merged with the MIS division, making it one unit. Also
merged was the Engineering division with the Puiblic Facilities division. These mergers
were actually done in the first quarter but are now reflected in the budgets on this
quarter's report. One change that was made by City Council is the purchase of the
property at 1215 Indian River Drive that closed during this quarter. Also reflected is the
use of the funds in the Equipment Reserve account.
Regarding the General Fund, 61 % of the budgeted revenue has been received as of the
end of March. That included approximately $238,0100.00 of FEMA reimbursements for
Hurricane Matthew. He described a chart which he included for the third quarter to
reflect the status of Hurricane Matthew reimbursements compared to what was received
to date. Of the total claims that the City has made on Hurricane Matthew were
$1,582,0010.00; the City has collected $1,438,000.00 to the present. No
reimbursements for Hurricane Irma have been received. FEMA is now reviewing the,
claims, and then they will go to the State for a followup review. He stated that a big part
of the reimbursement was for the 4os.
He described the individual fund summaries which show that halfway through the yeal
47% of all department expenditure budgets have been used.
are a few adjustments to be made to the status of Capital Expenditure projects,
i.e. the two hurricanes. This report shows what the expenditures were as of the end of
September 2017.
The report on Cash Reserves shows a good part of the $275,000.00 budgeted has
already been spent for this year. Th,rough the end of March there is a balance of
$86,000.00 remaining in the R and R account. This is due to having to replace some air
conditioner units. There is also an update on the Cash Reserves for Emergencies, and
that is over the $5 million mark by about $93,000.00 as a result of receiving
reimbursements for Hurricane Matthew.
Me reviewed the repoon the cash in the bank as well as with the State Board of
Administration investment accounts.
The balance of the report is from all the departments describing their activities for the
quarter.
Ms. Veidt asked why personnel costs for Roads and Drainage are over budget ana
Stormwater is under budget. Mr. Killgore stated that some of it in Stormwater is
accounted for by vacancies yet to be filled, and he will look into the Roads and Drainagz
question.
CITIZENS BUDGET REVIEW ADVISORY BOARD PAGE, 3
Meeting Minutes of June 4, 2018
Mr. Hoffman asked why on the Stormwater Utilities Fund the revenues show 91%
collected, yet Property Taxes are only at 66%, and why these two funds are not
reasonably similar to each other. Mr. Killgore stated the 91% figure includes franchise
fees, utility taxes, etc. Mr. Hoffman queried, on the R and R fund, the $39,000.00
expenditure for the police air conditioner replacement permit. Mr. Killgore stated that
should read "air conditioner/replacement permit," so the $39,000.00 includes the air
conditioner and the permit. Mr. Hoffman also commented on the Florida Trust account
at .38%. Mr. Killgore reviewed that $500,000.00 was deposited with Florida Trust about
a year and a half ago in order to diversify the investments, and the fund's with Florida
Trust are securities. He stated that at the time the money was invested was at a low
point in the interest market. There will be a meeting of the Investment Committee
regarding these matters.
Mr. Herlihy discu:ssed the problems with the golf course and the restaurant and the fact
that this matter needs to be addressed and attempts made to improve that situation. He
suggested that the matter be discussed when the Committee presents their
recommendations to City Council. He stated that a plan needs to be implemented for
the future of the golf course,
Mr. Niapier spoke as to the situation with the golf course. He does not agree that the
golf course is a serious problem, but the restaurant is a problem, He stated tha,'I
because of the lack of maintenance of the golf course, it will' be expensive to make the
improvements that are needed at present. He recommended that the rent to the airpor)
for the golf course be looked at. Mr. Killgore stated the current rent is $106,000.00.
6. General Comments by M'�embers:,
Mr. Herlihy brought up the preliminary assessed valuations, Mr. Killgore stated he will
discuss that under his staff report. Mr. Herlihy stated that, concerning the upcoming
budget, one of the items to be looked at is the vote on the homestead exemption, and
this will have to be addressed at sometime in the future. Mr. Hoffman is of the opinion
that the matter of the golf course should be addressed and perhaps the golf course
should be included in the General Fund. Mr. Napier stated the golf course puts money
back into the General Fund. Mr. Hoffman disagreed that the golf course will ever be
able to pay for its capital improvements, Mr. Napier asked Mr. Killgore about the
revenue from the golf course for the past year, and Mr. Killgore stated that the revenue
is fairly good. Mr. Napier recommended Mr. Hoffman study the on-line audit. Mr.
Killgore stated the amortization of the loan from the Building Department was scheduled
out on a 15-year basis, and there is no debt to the General Fund from the golf course.
Ms. Veidt stated regarding the Renewal and Replacement account, which is General
Fund money, a good deal of that has gone to the golf course over the past couple of
years, and none of that is being paid back. Mr. Napier stated, if the golf course uses
General Fund money, it should be paid back, that that is what enterprise funds are. Mr.
CITIZENS BUDGET REVIEW ADVISORY BOARD PAGE 4
Meeting Minutes of June 4, 2018
Herlihy stated the income from the golf course will be down for the next quarter due to
the inclement weather in May. He feels that the City should address the problems with
the golf course sooner rather than later.
7Announce Next Meetina Date- (Monday, July 2, 2018).
Mr. Killgore stated that at the July 2 Id meeting he will give a Power Point presentation
describing what is in the recommended budget by the staff. He stated there has been
an increase in the ad valorem taxes, the preliminary numbers being one billion, two
hundred fifty thousand dollars, which he estimates is a 7.3% increase, He reported that
staff is working diligently on the budget, and there have been meetings with most of the
departments, and Paul Carlisle, the new City Manager, has sat in on all those sessions,
and Mr. Carlisle has some good ideas for the budget going forward'.
Mr. Hoffman asked whether the City has any idea on, how the budget will be impacted
by the law passed by the legislature for school security purposes and whether the City
will be responsible for hiring additional resource officers. Mr. Killgore stated the City
has provided one resource officer in the past and will now be required to add two for a
total of three resource officers. Discussions regarding this matter have been had with
the School Board regarding their share of the cost which is 50%,
Mr. Herlihy asked whether a plan is to have a whole team for stormwater management.
Mr. Killgore stated staff is evaluating whether that will be possible. Mr. Napier asked if
there has been a report done on the cost of the stormwater drainage that needs to be
done. Mr. Carlisle stated that they are looking at the stormwater master plan and what
has been done. There are some projects on that plan that need to be updated or
revised, and he wants to have a comprehensive, systematic plan in place. He has
already met with some of the staff regarding this matter.
9. Adiourn: There being no further business, Chairman Napier adjourned the
meeting at 647 p.m.
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