The URL can be used to link to this page

Home My WebLink About09-17-2018 CC Minutes 1st BudgetCROF SASTIAN HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL SPECIAL MEETING 1ST BUDGET HEARING MINUTES FY2018/2019 Proposed Millage and Tentative Budget MONDAY, SEPTEMBER 17, 2018 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Hill called the Special Meeting to order at 6:00 p.m. 2. Council Member lovino led the Pledge of Allegiance. 3. ROLL CALL Mayor Jim Hill Vice Mayor Linda Kinchen Council Member Ed Dodd Council Member Albert lovino Council Member Bob McPartlan Citv Staff Present: City Manager Paul Carlisle City Attorney James Stokes City Clerk Jeanette Williams Administrative Services Director Ken Killgore Asst. Admin. Services Director Cindy Watson Police Chief Michelle Morris 4. PUBLIC HEARING/ADOPTION OF TENTATIVE MILLAGE AND FY201812019 BUDGET A. Citv Attornev Advises Citv Council on Procedure for Millaae/Budget Hearina and Reads Titles of Resolutions No. R-18-28 Tentative Millaae and R-18-29 Tentative Budget The City Attorney advised that F.S.200.065(7)(a)(1) requires City Council to tentatively adopt a millage rate for calendar year 2018 and budget year October 1, 2018 to September 30, 2019 at the first public hearing the budget is presented. Staff has recommended the tentative millage be set at the rolled -back rate of 3.1514 which will provide for wage adjustments, a net increase in positions to maintain current spending levels for operational expenditures, and fund certain equipment. The City Attorney read the titles of Resolution Nos. R-18-28 and R-18-29. Mayor Hill advised that items E and F would be handled as one public hearing but have separate motions with votes. B. Citv Manaaer Announcement that the Proposed Millaae Rate of 3.1514 Mills is Eaual to the "Rolled -Back Rate' The City Manager said staff is recommending a balanced budget at the rolled -back rate of 3.1514 and the only significant change was the removal of the Airport Director and the addition of a Leisure Services Director. Special City Council Meeting 1s` Budget Hearing September 17, 2018 Page Two C. Budaet Overview of Proposed Tentative Millaae and Tentative Budget by CFO Ken Killaore (PowerPoint) The Administrative Service Director presented a PowerPoint presentation outlining staffs recommendation. (See attached) D. Mavor Opens Public Hearing on Tentative Millaae and Tentative Budget Mayor Hill complimented the Administrative Services Director for his work on the budget and in working with the Budget Review Advisory Board. Council Member Dodd noted the CRA Septic to Sewer Program is in the wrong line on page 94. He said he appreciated the breakout of the leisure and stormwater departments. There was no public input. E. Resolution No. R-18-28 Tentative Millaae for Calendar Year 2018 (Transmittal. R-18-28) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A TENTATIVE MILLAGE OF 3.1514 MILLS FOR THE CALENDAR YEAR 2018; PROVIDING FOR CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. MOTION by Council Member Dodd and SECOND by Council Member McPartlan to approve Resolution No. R-18-28, the tentative millage rate. ROLL CALL: Vice Mayor Kinchen — aye Council Member Dodd — aye Council Member lovino — aye Council Member McPartlan — aye Mayor Hill — aye Motion carried 5-0. F. Resolution No. R-18-29 FY 2018/2019 — Tentative Budaet (Transmittal. R-18-29. Schedule A) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2018 AND ENDING SEPTEMBER 30,2019; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON 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 CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. MOTION by Council Member McPartlan and SECOND by Vice Mayor Kinchen to approve Resolution No. R-18-28, the tentative budget. Fa Special City Council Meeting 1 st Budget Hearing September 17, 2018 Page Three ROLL CALL: Council Member Dodd –aye Council Member lovino – aye Council Member McPartlan – aye Mayor Hill – aye Vice Mayor Kinchen – aye Motion carried 5-0. G. Mavor Announces that the Final Public Hearing on Millaae and Budget is to be held on Wednesday. September 26, 2018 at the Regular Citv Council Meetinq at 6:00 p.m. Mayor Hill announced the final budget hearing would be held September 26, 2018 at 6 p.m. 5. NEW BUSINESS A. Resolution No. R-18-30 Adootinq Amended Financial Policies for Fiscal Year 2018- 2019 (Transmittal. R-18-30) A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA, ADOPTING AMENDED FINANCIAL POLICIES GOVERNING VARIOUS AREAS OF BUDGET AND FINANCE AS PROVIDED FOR IN ATTACHMENT "A"; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title of Resolution No. R-18-30. The City Manager said the biggest change was addressing how the unfunded mandates would be managed and show the public that the City's liabilities aren't just storm related. Council Member Dodd asked to remove item F on the top of page 23 of the agenda packet until they could see more mechanics because if the general fund balance falls below $3.51M, he asked would they throw surplus money at it or raise taxes. He noted this was pulled from the policy last year as well. Council Member Dodd said he didn't have any issue with leaving in the unfunded liabilities as long as the "IX. Use of Surplus Policies" section is changed to insert after number 9, item A --the fund balance targets at the discretion of City Council may be used for the following purposes and the first goal would be adding to the general revenue reserve and then after that, the police pension fund and so forth. He said before more money is put into any of the goals, he would like City Council to see statistics and a breakdown as to why there would be surplus so it is not an automatic action that will take place. Council Member Dodd also noted the special revenue fund surpluses were dropping from 15% to 5% on page 25 and asked if there were surpluses in those accounts greater than 5% and if there were, have the surpluses been accounted as expenses—and if there's not, is the 5% sufficient. The Administrative Services Director explained the 15% has been a long standing budgeting technique to leave a cushion and he chose to bring it down to 5% should there be a drop-off in collections or an additional expenditure that might come up. Special City Council Meeting 1 st Budget Hearing September 17, 2018 Page Four Council Member Dodd confirmed the 5% "Capital Outlay Reserve" (page 24) was the same special revenue funds outlined on page 25 and with that he made a MOTION to approve R-18-30 amending the financial policies incorporating his requested changes. Council Member McPartlan made a SECOND to his motion. ROLL CALL: Council Member lovino — aye Mayor Hill — aye Council Member Dodd — aye Motion carried 5-0. Special Announcement Council Member McPartlan — aye Vice Mayor Kinchen — aye Vice Mayor Kinchen reported the First Responders Cook -off was held the past Saturday where the Sebastian Police Department won second place overall by the judges, first place for the audience choice, and first choice for ribs by the judges. On behalf of the Sebastian Police Department she gave a special thank you to the Sebastian Police Explorers, the COPE Unit, the City Manager, Jeff and Stephanie Chandler along with the Outrigger Family, Mark and Valerie Winer, Woody Woodrum, and City Clerk for making the event successful. 6. Being no further business, Mayor Hill adjourned the Special Meeting and Vt Budget Hearing at 6:25 p.m. Approved at the October 10, 2018 Regular City Council Meeting. &J 4, HCl )Jn'e'tte WKilliar s;, MMC — City Clerk CI 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. Public Hearing Dates o Final Hearing on Millage and Budget at Regular Meeting on Wednesday, September 27th. o Questions/Comments? 1] 18 9/20/2018 G 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. • Increasing Annual Transfer to General Fund to About 75210 of General Fund Spending. Special Revenue and Other Funds: Special Revenue/Trust Funds o Law Enforcement Forfeiture Fund: • Used Only for Unbudgeted Items. o Cemetery Trust Fund: . Headstone Straightening Project in 2018. • Y2 of Lot Sales Are Set Aside for offsetting Operating Expenditure. • 1/2 of Lot Sales Are Set Aside for Providing Additional Internment Sites. 15 16 9/20/2018 C- Special Revenue and Other Funds: Special Revenue Funds o Discretionary Sales Tax: • Computer Upgrades and PC Replacements Scheduled for 2019. • Replacement of Police Vehicles. OF • 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. 13 Special Revenue and Other Funds: Special Revenue Funds o Riverfront CRA Fund: • Repairs at Working Waterfront. • Special Events. V • 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. 14 9/20/2018 7 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. 11 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. 12 9/20/2018 M Enterprise Funds: Golf Course o Assuming More Revenue Due to Capital Improvements and Upgrades to the Restaurant. f 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 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. 10 9/20/2018 5 Personnel Cost (Continued) o General Fund Position Changes: Audio Visual Technician (Temp). o Community Development Director/CRA Manager. c 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. c 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. 0 9/20/2018 M 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% s 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. 6 9/20/2018 3 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. Other Considerations o Referendum for an Increased Homestead Exemption. 1St $25K Exempt 2nd $25K Taxed 3rd $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 9/20/2018 2 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 z 9/20/2018 1