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HomeMy WebLinkAbout08-06-2018 BAC MinutesCITY OF SEBASTIAN CITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING AUGUST 6,2018 1. Chairman Napier called the Citizens Budget Review Advisory Committee Meeting to order at 6:00 p.m. 2. Pledge 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 Absent Mr. Michael Frank -- Excused Also Present Mr. Kenneth Killgore, Administrative Services Director/CFO Ms. Cynthia Watson, Human Resources Manager Ms. Janet Graham, Technical Writer 4. Approval of Minutes A. Minutes of July 9, 2018 Mr. Napier called for any additions or corrections. Mr. Hoffman mentioned an item on Page 2 under Section 5(a) in the second paragraph, third line, where it is written 4.3 it should be 3.4. Mr. Killgore agreed. Motion to accept the Minutes as amended was made by Mr. Hoffman, seconded by Mr. Herlihy, and approved unanimously by voice vote. 5. Unfinished Business A. Budget Update by Ken Killgore, Administrative Services Director/CFO CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MEETING MINUTES OF AUGUST 6,2018 Mr. Killgore stated there was an updated draft of the proposed budget posted to the City's website on August 3. He then reviewed the changes that have been made since the previous draft. The negotiated price for the employees' group insurance has been finalized, which was, at a 5% increase. That enabled the amount of $118,000.00 to be set up in an account titled a "Special Projects Contingency Account." This account was created because of concern about the monies being spent on storm water and roads, etc., so that this may be of assistance depending on what is decided during the final budget approval process, and/or depending on activities during next year where there is a need for add'itional funding. He also announced that there have been negotiation meetings set up for next week. Other than, that, there are no changes. As far as the general budget is concerned, regarding the Local Option Gas Tax, the Railroad notified the City that the Schumann Drive railroad crossing is slated for some extensive repairs--$59,000.00. That still leaves $401,100.00 for road work plus $100,000.00 for Indian River Drive improvements. The amounts that were allocated for sidewalks and signage, etc. were reduced slightly so as to balance the Gas Tax Fund budget. Regarding the enterprise fund and the storm water fund, adjustments were made for health insurance costs, but there have not been any adjustments for any wage changes. He proposed that, unless the Committee has any significant changes from what has previously been discussed, this would be the Committee's last discussion on the budget unless there are any major differences when he makes his presentation to City Council this coming week. I kTA = Mri rou r] ft, M.-i Asked for clarification of the difference between the "Special Projects Contingency Account" and the R&R account. Mr. Kil'lgore explained that the R&R account is for unexpected items that come up such as repair or replacement of items or equipment. Special Projects is for supplementing monies that might be needed for road work or storm water improvements. Mr. Hoffman inquired if it has been specifically delineated for those projects, or is this something that can be changed. Mr. Napier interjected that City Council has the CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MEETING MINUTES OF AUGUST 6,,2018 option of designating it so that it can only be used for what it is designated for, and it could not be changed unless Council changes it. Asked regarding the Building, Department, if there has been a decrease in the number of permits issued, etc., why is there a need for an additional one and a half employees. Mr. Killgore stated that the Fire Marshal responsibility is being handled by a Building Department official; thus, he is not always able to be out in the field when needed. Plus, there are the annexations that are being considered by City Council that will be needing inspections, etc. So with these changes, there will be ample work to support the additional personnel, Mr. Herlihy: • Inquired whether it is finalized that the Fire Marshal position will be the responsibility of the City. Mr. Killgore stated yes, that is the City's position. • Asked for clarification of whether the number of building permits is decreasing, as there seems to be a lot of building going on in the City, Mr. Killgore said that when the budget projections for the next year were made, there was not expected to be a large increase from the current year projections. Lvlmiml Commented on, the "Unrestricted Fund Balance." He inquired whether there was an influx of FEMA funds. Mr. Killgore stated that in April 2018 the City received approximately $1.4 million in FEMA recoveries from Hurricane Matthew, which has brought the fund up to almost $5 million. The City is still months away, however, from receiving any additional monies from FEMA, Ms. Ring: Regarding the "Special Fund," she asked if City Council can spend the fund on whatever they deem necessary, regardless of what this Committee recommends. Mr. Killgore explained that this new account is only staff's recommendation, and it is Council's option whether or not to change it. 6. Public Input -- None 7. New Business A. Review of Third Quarter Financial Report CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MEETING MINUTES OF AUGUST 6,2018 Mr. Killgore stated it has the same format as in past quarters, and he is asking for input on ways to improve the format so as to make it more user friendly. He reviewed the information in the report and described that there, were additional appropriations needed in the Police Department. There were also additional payouts to the prior City Manager for his leave time, etc. He is still waiting for FEMA funds regarding Hurricane Matthew of about $142,000.00 and regarding Hurricane Irma which should be around $600,000.00. He is projecting the department expenditures will total about 97% of projections for the year. Revenues have come in slightly over budget. As far as projects, he is projecting that a minimal number of projects will be carried forward to next year. He then asked for questions or comments from the Committee. 78 =11 ME Regarding the Adjustments section of the report, he would' like to see more detailed information as well as a total amount for a certain department if there are several entries for that department. Mr. Killgore stated he will address that. Mr. Herlihy: • Regarding Exhibit A for the third quarter resolution, it indicates a fairly large payout for the former City Manager, and Mr. Killgore stated there was. • Mentioned several projects that were over budget, and he wondered if that should be a concern. Mr. Killgore stated that when that is shown, it is because those projects are partially funded with grant funds, and he is generally not concerned. INANSWIM1111MI • Regarding the police pension fund, he inquired if the return objective has been lowered to the 7% level. Mr. Killgore stated it is down to the 7.3% level. The fund has been diversified, and he is expecting improvement because of that. • Questioned if next year"s budget should be increased for the police pension fund. It is Mr. Killgore's opinion that, as we get closer to meeting the investment assumptions, it should be fine to keep the same methodology. • Regarding the golf course, he is concerned about the direction the reserve fund is trending, and he believes it should be included in the General Fund. Ms. Veidt: • Questioned what percent of the golf course budget has been spent, Mr. Hoffman stated administration expenses are listed at almost 110% as of June 30. Ms. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 5 MEETING MINUTES OF AUGUST 6,2018 Veidt asked why that would be so high. Mr. Killgore stated there have been some additional expenses that showed up after the project was closed out. He stated the R&R distribution has not been added in, and that needs to be shown. He will look further into it. Ms. Veid:t asked if the project is over budget, and Mr. Killgore answered the Administration Account may be over, budget, but the project itself is not over budget. Mr. Napier: • Inquired as to when the earnings assumption was made on the police pension fund, what figure was set, Mr. Killgore stated last year it went to 7.3%. 8. Staff Matters -- None. 9. Committee Matters A. Comments/Discussion by Individual Committee Members Ms. Veidt asked if the Committee members have suggestions for Mr. Killgore, can they just email hm. Mr. Killgore stated he would appreciate any members coming to him or emailing him with their suggestions. He is not expecting to change anything this year, but is looking to setting it up for next year. Mr. Hall stated it has been a pleasure working with everyone on this year's budget, and if he is on the Committee next year he would like to get their views about different ways of working on the budget. Mr. Napier thanked the staff and the Committee for their hard work regarding the budget. 10. Adiourn There being no further business, Chairman Napier adjourned the meeting at 7:40 p.m. BY: Date: A