HomeMy WebLinkAbout07-02-2018 BAC Minutes w/AttachmentCITY OF SEBASTIAN
CITIZENS BUDGET REVIEW ADVISORY BOARD
MINUTES OF REGULAR MEETING
JULY 2, 2018
1. Chairman Napier called the Citizens Budget Review Advisory Board meeting to
order at 6:00 p.m.
2. Pledae of Alleaiance 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. Paul Carlisle, City Manager
Mr. Kenneth Killgore, Administrative Services Director
Ms. Cynthia Watson, Human Resources Manager
Ms. Janet Graham. Technical Writer
4. Approval of Minutes
A. Minutes of June 4, 2018
Mr. Napier called for any additions or corrections. Mr. Hoffman mentioned two items on
Page 2, which he has discussed with Mr. Killgore, and Mr. Killgore is in agreement. The
first one is in the second paragraph, third line, where it says "s'624ad quarter," that
should read 'Y quarter." The second item is at the end of the fourth paragraph on
Page 2 where it says "September 2017," it should be "March 2018." Motion to accept
the Minutes as corrected was made by Mr. Hoffman, seconded by Mr. Frank, and
approved unanimously by voice vote.
5. Unfinished Business
CITIZENS BUDGET REVIEW ADVISORY BOARD PAGE 2
Meeting Minutes of July 2, 2018
a. Presentation of Draft Budget by Ken Killgore, Administrative Services
Director/CFO and Board discussion of the Draft Budget and Capital Improvement Plan.
Mr. Killgore presented a Power Point presentation describing the 2019 Budget and
Capital Program. He prefaced his presentation by asking the Board to remember that
this is still in draft form, and there will be some changes between now and September.
The draft has been posted on the City website. He stated that the first task is to set the
proposed millage. That will be on City Council's Agenda for the meeting on July 11th.
There will be a follow-up meeting of this Board on July 9`h where the Board can decide
the format they want to use in presenting their proposal to City Council on the 11th. He
discussed the Power Presentation in detail. SEE ATTACHED. He then asked for
questions or comments from the Committee.
IT,
• On the issue of the Fire Marshall, he inquired if that has been included in the
budget. Mr. Carlisle stated the current building official is certified as a Fire
Marshall, and there is a contracted Fire Marshall person on staff currently, which
is in the budget.
• On Page 5 of the proposed budget he asked what the RRD Management Fees
item represents. Mr. Killgore stated that refers to Riverfront Redevelopment.
• Regarding the Cemetery, he understood that when the recently purchased
additional property was cleared, the City was to recover part of the cost of
purchasing that property by selling the sand. Scott Baker, Public Utilities
Manager related there were two bids to remove the sand. One was $47,000.00
and the other was that Fisher proposed to remove the sand at no cost and to
install a service path in the area. So the agreement at the present time is with
Fisher to remove the sand and put in the road at no cost.
• On Page 95 regarding the Storm Water Utility Fund, there are negative
unrestricted reserves, and in looking at the 5-year history, it appears the City
keeps spending more money than it takes in. He inquired as to the reason for
that. Mr. Killgore referred him to Page 151 where there is a longer -term
projection on the Storm Water Fund, which shows a positive ending fund
balance.
• He described a news story out today that the restaurant at the Golf Course has
closed and questioned if that is accurate. Mr. Carlisle stated that the lease with
the tenant has been terminated, and that will potentially impact the revenues on
the golf course.
CITIZENS BUDGET REVIEW ADVISORY BOARD PAGE 3
Meeting Minutes of July 2, 2018
Mr. Herlihy:
• Regarding the Hurricane Fund Reserve, he is in favor of increasing it to $6
million. He also presented for consideration the example of, if in the future a
high-speed train has a serious accident in Sebastian that is very destructive, how
that would affect the reserve fund.
• On the subject of storm water, he questioned the salaries for the three top
employees in this department, and if the department has an excess of
management. Mr. Killgore stated that for all the City departments there are
working supervisors, and these three employees perform field work as well as
administrative work.
• Regarding the move of the DPW facility to the airport, he questioned if that move
will cause that department to be less productive because of having only one
major road —Roseland Road —in and out of that facility, and there is room to
expand where that facility is now located. Mr. Carlisle stated there are other
options for getting equipment out from the proposed facility at the airport. He
also stated that a lot of the equipment is staged in areas where work is being
completed, and in moving the facility from its present location that will free up that
property, which would be much more valuable being put to other uses. Making
the move to the airport property opens up the possibility of getting water and
sewer to the airport so the City can start marketing the property in order to create
some industrial sites on the airport property. Ms. Veidt inquired as to whether the
City can sell the property which now houses the DPW. She also inquired
whether the contamination issue has been resolved. Mr. Carlisle stated the
ground water is becoming cleaner all the time, so he is not concerned about that
being an issue.
• Regarding the Building Department, he inquired if the slight increase in permit
revenue is because it is expected that the increase in construction will level off in
the coming year. Mr. Killgore stated the revenue projection could possibly be
increased, Mr. Carlisle stated the City wants to be conservative wherever they
can be.
• Regarding the MIS staff, he inquired if there is going to be an administrator
added. Mr. Carlisle stated that currently the MIS department has one person
who is responsible 24/7 to keep the system running, which is critical to the City's
operation, and that person needs to have backup available.
• He inquired if the millage rate for last year was 3.4%, and Mr. Killgore stated that
was correct. Mr. Napier stated that was a few percentage points below rollback,
CITIZENS BUDGET REVIEW ADVISORY BOARD
Meeting Minutes of July 2, 2018
PAGE 4
which meant a tax decrease. Mr. Killgore stated the plan is to go to City Council
with the same millage rate as last year of 3.4%.
Mr. Hall:
• Regarding the School Resource Officer, he asked how much money is projected
to be received from the School District. Mr. Carlisle stated currently the
reimbursement is 50% from the School District for the total cost of each officer.
The contract is currently in the process of being finalized at 50%.
• Regarding the $5 million reserve fund, he is of the opinion that this amount is
adequate for a city of this size for now.
Ms. Ring:
• She is of the opinion that the reserve fund should be increased to $6 million.
• Regarding the restaurant at the golf course, she sent a letter to City Council
about renting that building and stated it should be included on the Parks and
Recreation website that the facility is available for rent as a restaurant. She also
inquired about offering more sports activities at the golf course location such as
soccer fields or pickle ball fields. Mr. Carlisle stated the subject of the restaurant
will be discussed with City Council so that staff can have Council's direction as to
how to address that situation. He also stated that, as far as other sports
activities, there is very little land outside the fenced compound that would be
available, but her suggestions will be taken into consideration.
Mr. Napier:
• Regarding the reserves fund, is it being suggested to change it again, when it
was just changed to the $5 million, and is it fully funded at $5 million. Mr. Killgore
answered yes, it is fully funded. He discussed the history of how the $5 million
figure was arrived at and what was considered in arriving at that figure. He is of
the opinion that getting to a $6 million figure is possible over the next several
years.
• Regarding Discretionary Sales Tax and the Gas Tax Fund, he did not see those
items in the Special Revenue Funds, and he only saw it in the supporting
schedule. Mr. Killgore stated that since this is only a draft, those Items are listed
in the supporting schedules so as to project a sense of what Is being paid out of
those funds.
CITIZENS BUDGET REVIEW ADVISORY BOARD
Meeting Minutes of July 2, 2018
PAGE 5
• Regarding the millage rate, he inquired as to what the new rate will be. Mr.
Killgore stated he has the certified millage at 3.1514, which means that
properties will increase, on average, in assessed value by 7.95%.
Ms. Veldt:
• She addressed the fact that there were four positions added this year, and 12
more are proposed to be added next year, seems to be excessive. She wanted
to bring up the fact that for every one of those new positions the City assumes
that there will be full family insurance on those positions. Assuming that will
never happen, the numbers already projected for insurance are artificially high.
• Regarding the storm water fee increase, she is concerned about increasing the
storm water fee and that it is being used for what was proposed. Mr. Carlisle
stated he has challenged staff to come up with a true plan of where this money is
going to be spent, then DST monies can be used to fund it, and the whole storm
water plan needs some real tweaking. A systematic plan will be implemented so
it is known where every amount in the budget is coming from and where it is
going.
6. Public Inout
Michael C. Marsh, Vero Beach. He is an activist, and he has pushed several agencies
all over Florida for the police departments to go to body cams. He spoke with the
Sebastian Chief of Police about a year ago on this subject, and he wanted to commend
her for her open-door policy and the fact that she is in favor of body cams.
7. New Business -- None
8. Staff Matters -- None
9. Board Matters
a. Comments/Discussions by Individual Board Members
Mr. Herlihy inquired as to what is needed for the Board's presentation to City Council on
July 11t'. Mr. Napier stated he is of the opinion that all that is needed is a letter. Mr.
Herlihy stated it is his opinion that all that is needed is for the Board to state whether
they agree or disagree with the proposed budget.
CITIZENS BUDGET REVIEW ADVISORY BOARD PAGE 6
Meeting Minutes of July 2, 2018
Mr. Hall asked if all the members of the Board are in agreement with what is in the
proposed budget or if there is something else, such as the body cam suggestion, that
should be included for consideration. Mr. Carlisle stated that phasing the body cam
program in provides an opportunity to get all the software updated, etc., and he would
like to stay with what the Chief of Police has laid out in her budget plans. He explained
that as police vehicles are replaced the body cam system is part of that replacement
program, because the body cam is tied into the car cameras, the light systems, etc. So
as the vehicles are replaced, the body cam systems will be included in those
replacement vehicles. The Police Chief then gave a brief synopsis of how there would
need to be training for those systems, and she would prefer for them to be phased in as
new vehicles are purchased.
Mr. Napier stated he recommends letting the budget be presented to Council as it is,
and all Board members voiced their agreement.
b. Discussion of Topics for Next Meeting on July 9, 2018.
Mr. Herlihy suggested Mr. Napier work with Mr. Killgore in drafting a letter to City
Council for their meeting on July 11th. Mr. Napier and Mr. Killgore will do so.
10. Adjourn There being no further business, Chairman Napier adjourned the
meeting at 7:21 p.m.
Date: ?l11da-
0
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'* P p ( (OV &b /ks pr y"IE�D`12t)
Prepared By:
Ken Killgore
Administrative Services Director
1
2019
����Budge��t
r„
o Changes to General Fund Budgets.
o Revenues and Balancing Tactics.
o Enterprise and Other Funds.
o Property Va
o Other Consi
lues & Millage.
derations.
2
o Full-time Additions:
$ 83,686 MIS Systems Administrator
$160,362 Two School Resource Officers
$147,606 Two Police Sworn Officers
$104,602 Two Roads Maintenance Workers
$179,839 Three Parks Maintenance Workers
o No Full-time Deletions
3
o Part-time Additions:
$
12,500
Police COPE
Assistant
$
15,250
Comm. Dev.
Recreation Attendant
o Part-time Deletions:
$ (31200)
MIS
Audio
Visual Technician
$(40,000)
Two
Police
Temporary Officers
M
$ 5331196
(664,987
105,089
Personnel Costs
Operating Expenses
Capital Spending
(73,888) Transfers to Other Funds
(91,,252) Early Retirement Program
$ (191,,842) Net Budget Decrease
5
$ 676,095 10 Additional F/T Employees.
(15,450) 1 Less P/T Employee (Net).
234,368 Negotiable Pav Chances.
177,058
170,402
(700,270)
(38,312)
29,305
15% Medical Premiums.
Required Police Pension.
Stormwater Pay & Benefits.
Additional Compensation.*
Other (Insurance, PartialYear Pays, O/T).
* $68,312 to $30,000 for Recognition &Holiday Bonus.
($45,650 Was Used. 82% to Non -Exempt Employees.)
�n c �� u d e d
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
0��pera b��ari Cos t $664.,3981111117
$ (26,,500) Manager Search Consultant.
(27,680) Off-year for Election Cost.
(156,,700) Riverside Maintenance (CRA).
25,000 CDBG Consultant.
571000 Insurance Premium on Docks.
(507,387) Stormwater Operating Cost.
(28,F720) Net Decrease to Others.
28,000 Police Investigations Equipment.
36,000 Road Maintenance Pickup Truck.
7,000 Fleet Diagnostic Scanner.
64,000 Park Mowers and Pickup Truck.
36,000 Schumann Tennis Courts.
28,500 A/C Recovery -Generator -A/C Unit.
36,000 Cemetery Pickup Truck.
(166,411) Capital Funding in FY2018.
o Contingency Reduced $91,252:
"Repayment" of Funding Made from Reserves
to Cover Payouts to the Early Retirees from
the Early Retirement Program in FY2016.
Allocated so the Final "Payback" to General
Fund Reserves Would Be Set Aside.
A
o $25,000 for Repayment of Airport Loan for Legal
Expenses (Balance Will be $40,000).
o $55,000 from Cemetery Trust.
o Qualified Items to Special Revenue Funds.
o Moved Stormwater Division to Stormwater Fund.
o Moved Riverfront Landscaping to CRA Fund.
10
o $106,,000 for Airport Rent.
o Paying $38,368 Principal and Interest on
$700,,000 Building Fund Loan.
o Assuming FY 2022 Replacement of Carts.
o Forecasting Long-term Reduction in Deficit.
11
o Operating Rentals Projected Higher Due
to Income from Shade Hangars.
o $10,,000 Allocated for Economic Development
Advertising.
o Repaying $25,,000 of General Fund Loan.
o Paying Scheduled Amortization of Loans from
Discretionary Sales Taxes.
o Forecasting Long-term Reduction in Deficit.
12
o Operating Revenue Estimates Level.
o Expecting $38,368 for Principal and
Interest on Golf Course Loan.
o Adding aFull-time Building Inspector
and Part-time Clerical Assistant.
13
$420,,200 Allocated for FY 2019 Road
$100,,000 Allocated for Added Safety
Elements to Indian River Drive.
Work.
$243,,177 Allocated to Payment on Notes.
o Parking In Lieu Of Fund:
Expecting $54,097 Year End Balance.
No Additional Agreements are Projected.
14
Dispatch Radio System and Generator.
CavCorp Boat Parking Paving Completion.
Added Work at Working Waterfront.
Roads Division Heavy Equipment.
Relocation of Public Works Compound.
Stonecrop Stormwater Drainage Project.
Seawall Repair/Replacement.
Matching on Several Airport Projects.
15
Street Signage.
Riverview Park Tree Protection.
Allocation of CRA Manager Cost.
Landscaping Contract.
o Recreation Impact Fee Fund:
All Inclusive Playground, Pickle Ball Courts and
Bark Park Shade Structure.
Unspecified Improvements ($5K per Zone).
Park Signage.
16
o Stormwater Utility Fund:
Revenues Based on $10 per E.R.U.
Now Includes All Operating Expenditures.
One Position Added (Others Already Moved).
Includes All Equipment Replacements.
Stonecrop Project Covered by DST Fund.
$500,000 Available for Projects in FY 2019.
Then $100,000 Per Year for Projects.
17
o Cemetery Trust Fund:
1/2of Sales Expendable on Expansions or
Related Cost Incidental to Adding Future Sites.
1/2 of Sales for Operations and Maintenance.
o Transferred Only Interest Income to General
Fund in the Past.
oTransferring $55,000 per Year to General Fund.
Payment Covered by Discretionary Sales Tax.
$1,541,000 Outstanding as of 9/30/18.
Final Maturity on 5/01/22.
19
o Taxable Property Values Increased
$107,676,794 or 9.34% from the Prior
Year Final Taxable Value.
o Additions of $15,,998,,366 Are Less Than
Last Years at $35,951,701.
o Increased Assessments Are $91.,678.,428 of
the Increase or 7.95%.
o Roll -Back is Probably Close to 3.2000 Mills.
20
IRrqperty Va���ues and
Dollar
2018
2017
2016
2015
2014
2013
2012
V �be Add��' b��aris
Value of Tax Roll Additions:
1519981366
3519511704
2517631700
2514921245
1919141805
914351090
714621986
21
o Unsettled Personnel Issues:
Wage Opener Negotiations Not Complete.
Premiums for Employee Health Insurance
Have Not Been Set - 15% Allocated.
o Increased Homestead Exemption May
Cause Up To $200,000 Reduction in Ad
Valorem Revenues Next Year.
o Hurricane Reimbursement Delays Have
Underlined the Need for Adequate
Reserves - Should Consider an Increase.
22