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HomeMy WebLinkAbout07-08-2019 BAC AgendaMJ SEWTIAN HOME OF PELICAN ISLAND SEBASTIAN BUDGET REVIEW ADVISORY COMMITTEE AGENDA 6:00 P.M. MONDAY — JULY 8, 2019 CITY HALL 1225 MAIN STREET a. Call to Order b. Pledge of Allegiance c. Roll Call d. Approval of Minutes: a. Meeting of June 17, 2019 e. Discussion of the Draft Budget and Capital Improvement Plan: a. DR -420 Millage Certification and Rolled -Back Rate b. Adjustments to Initial Draft Budget c. Discussion by Members d. Discuss Next Meeting Date Monday, July 8, 2019 — If Needed e. Comments by Staff f. Public Comments g. Adjourn Agenda Attachments: • Minutes for Meeting of June 17, 2019 • Power Point Presentation • Initial Draft Budget and Capital Improvement Plan — Available at the following link: =D:HDublic.citvofsebastian.ora/PDFs/Budaet/FY1920/20190610 DRAFT FY20 Budoet CIP.odf ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENSE UPON WHICH THE APPEAL IS TO BE HEARS. (F. S 286.0105) IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMODAT/ON FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. CITY OF SEBASTIAN CITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING JUNE 17, 2019 I. Chairman Napier called the Citizens Budget Review Advisory Committee Meeting to order at 6:00 p.m. II. Pledae of Alleaiance was recited by all. III. Roll Call Present Mr. Larry Napier Mr. Ed Herlihy Mr. Bruce Hoffman Mr. Harry Hall Ms. Amber Cerda Ms. Andrea Ring (a) Ms. Nancy Veidt Mr. Keerthi Weragoda (a) Absent Mr. Michael Frank -- Excused Also Present Mr. Paul Carlisle, City Manager Mr. Ken Killgore, Administrative Services Director/CFO Ms. Cynthia Watson, Human Resources Manager Ms. Janet Graham, Technical Writer IV. Aooroval of Minutes A. Minutes of March 11, 2019 Mr. Napier called for any additions or corrections to the Minutes. Mr. Hoffman called the Board's attention to paragraph 5 on page 3 of the March 11, 2019 Minutes where it discusses $10,500.00. That number should be $10,500,000.00. Mr. Killgore agreed. A motion to accept the Minutes with the aforementioned correction was then made by Mr. Hoffman, seconded by Ms. Cerda, and approved unanimously by voice vote. V. Review of First Quarterly Resort -- Fiscal Year 2019 Mr. Ken Killgore, Administrative Services Director/CFO, reviewed the first quarterly report and the process, i.e., presenting the resolution covering the budget changes that have CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MEETING MINUTES OF JUNE 17. 2019 either been made during the quarter or need to be approved by City Council, and all the adjustments within budgets that were approved by the City Manager as well as those that were previously approved by City Council. Each fund is covered on the Executive Summary pages. After six months of being in effect, the revenues for the general fund are up 61.2 percent. Typically, on a 12 -month basis it would be expected to be 50%, so the City is above target on that. Regarding spending by departments, they are slightly over at 50.7%. The projection for reserves is that the City would have in excess of $5,000,000.00 at the end of this year at the current pace. All the hurricane reimbursements that the City was entitled to receive due to Hurricane Irma have been received. The amount of $143,000.00 is still due from Hurricane Matthew. There was some additional clarification needed on the original submission which required a complete review. He is still hopeful that that money will be forthcoming. The stormwater fund, golf course, airport, and building funds are outlined. The projected end -of -year balances are better than at the beginning of the year. The golf course is holding its own, and there are no concerns with the building fund. He next covered the departmental detail which covers all the funds that are accounted for. Additional information includes the capital project status report. There are still several projects from prior years, and he continues to be aware of the need to close those out at the earliest possible time. The quarterly investment report lists the funds as being in three major accounts. One is with a local bank, another with the State Board of Administration, and the third is with Florida Investment Trust. The funds with Florida Investment Trust initially did not show a good return on investment. Recently, however, there has been an upturn in their returns. He is hopeful that this trend will continue on this account. The balance of the reports shows the activity of the different departments in the City. He then called for questions or comments from the Board. Ms. Veidt: CITIZENS BUDGET REVIEW ADVISORY COMMITTEE o� *4jI PAGE 3 MEETING MINUTES OF JUNE 17, 2019 • Inquired into the status of the Clear Village software. She was under the impression that that question had been resolved. Mr. Killgore stated that the City no longer uses Clear Village and has begun using a different software program. There is a final settlement being worked out by the attorneys for the parties. He does not expect that the $17,000.00 figure in the report will have to be paid by the City, as the two claims will offset each other. • Clarified that project A-19-21 refers to the pickle ball courts and is labeled as "Park Amenities." Mr. Hoffman: • Regarding the General Fund Balance Forecast, he asked for clarification on "Assigned Funds." Mr. Killgore explained that some of the reserves are assigned, which basically cover what are required by the County standard requirements for reporting under those standards. Mr. Hoffman understood that the net unassigned funds are what's available for emergencies. Mr. Killgore said that was correct. He further explained the formula he used to arrive at the figure of $5,000,000.00 as being what would be needed in the event of two major hurricanes or other disasters back-to-back. That fund should be enough to carry the City through until insurance and FEMA monies would be received. Mr. Carlisle also stated that the new Florida Emergency Management Director has committed to seeing that the funds are paid out more quickly, and the Governor has supported that idea. • Asked regarding the Stormwater Fund Summary whether the $500,000.00 as part of transfers to capital projects is a realistic number or is the $32,000.00 figure a more realistic number. Mr. Killgore stated that at the time the budget was done, the $500,000.00 was not detailed, so it wasn't specified. • Asked what has happened to the fuel sales at the airport. Mr. Killgore replied that the City contracted with the entity that provides other fuel services. That company now handles the business of providing and selling the fuel, and the City gets a percentage of their sales. • Regarding the golf course, he inquired whether the City owns the carts or leases the carts. Mr. Killgore explained that the City owns the carts at the end of the lease term. • As to the building fund, it lists Clear Village as a transfer out. Mr. Carlisle stated there are discussions going on between the parties. • Asked regarding the section which discusses departments under the general fund, what is Growth Management. Mr. Carlisle described that that is now Community Development. • Inquired why capital projects from two years ago, such as the septic -to -sewer project, can't be carried forward. Mr. Carlisle stated it is rolled forward, but some CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MEETING MINUTES OF JUNE 17. 2019 of the projects are encumbered. Mr. Killgore stated some of those projects are being consolidated. • Regarding the Florida Trust investment, he inquired whether there is an annual report that the Committee could look at. Mr. Killgore stated they do have a website that describes their style of investing, etc. He also gets monthly reports which show the City's account. He stated he would make those available if Mr. Hoffman would like to come in to City Hall to look at them. Mr. Herlihy: • Looking at the General Fund Reserve, he reviewed why those funds are maintained, and he even suggested that the amount might be increased to help cover a major disaster that might befall the City. Mr. Hall: • Regarding the subject of FEMA reimbursements, he inquired if there is a deadline for when the City must resubmit the documentation that is in question. Mr. Killgore stated that everything that has been asked of the City has been completed and submitted, and the process is now in the hands of FEMA. • In reviewing the capital expenditures, there are some entries that don't show any activity for the fiscal year as of yet. He asked if at the next meeting the Committee could get an update on some of these entries. Mr. Killgore said he would follow up on that. VI. Presentation of Draft Budoet by Ken Killaore. Administrative Services Director/CFO and Committee Discussion of the Draft Budaet and Caoital Imorovement Plan Mr. Killgore made a slide presentation of the draft budget, describing changes to the General Fund budgets, changes to General Fund revenues, Enterprise and other funds, and other considerations. He pointed out instances where there would be changes in personnel titles and responsibilities and how changes in personnel costs affect the budget. Operation costs were explained, including the $40,000.00 for election costs. Capital purchases are down $137,264.00. Transfers and contingencies are down $144,915.00. Revenue changes totaling $632,242.00 were explained. He is expecting the same revenue from ad valorem taxes by using roll -back rates. Projections for the golf course are 2.5% above last year. Projections for the airport were explained, including revenue P"h CITIZENS BUDGET REVIEW ADVISORY COMMITTEEt J PAGE 5 MEETING MINUTES OF JUNE 17. 2019 from the new pickle ball courts. The forecast for the airport is that the deficit will become positive by the end of 2020. The forecast for the building fund was reviewed, including reorganizing staffing. Special revenue and other funds were discussed, including the local -option gas tax and the parking -in -lieu -of fund. He also described how the discretionary sales tax revenue was being allocated. Mr. Carlisle stated that City Council has not yet decided how the repair/replacement of the sea walls will be handled. Riverfront CRA funds and recreation impact fee funds were reviewed as well as stormwater utility fund, law enforcement forfeiture fund, cemetery trust fund, and the stormwater utility debt -service fund. Property values and millage revenue projections were reviewed. He reviewed the history of the dollar value of tax -roll additions over the past eight years. Other considerations included unsettled personnel issues, including labor contracts and insurance premiums, which Mr. Killgore covered. Mr. Killgore then asked for questions or comments from the Committee. Chairman Napier stated that will be covered in General Discussion by the Members. VII. Review Budaet Calendar and Discuss Next Meetina Date (Monday. July 8. 2019) Chairman Napier asked if anyone has a problem with the July 8, 2019 date. It was the consensus of the Committee that the July 8 date was acceptable. VIII. General Discussion by Members MrHill• • Asked when the projection for the seawall project would be available. Mr. Carlisle described what has been done and what still needs to be studied before a decision can be made by City Council, and he does not have a timeline for that information. • Inquired regarding all the departments, are there any major items that were not approved to be in the budget. Mr. Killgore stated that for most of the major items, if they weren't able to be included for next fiscal year, they were moved out to future years or they were moved to be included in the DST funds. • Asked what the balance is in the law-enforcement trust fund. Mr. Killgore stated he thinks it is about $60,000.00 to $70,000.00. • Regarding park security cameras, the figure of $10,000.00 is listed. He asked if that figure is for all the parks, and what kind of cameras, etc. are being used. Mr. Killgore stated it is his understanding that the figure was for two sites—Hardee 4 CITIZENS BUDGET REVIEW ADVISORY COMMITTEE a PAGE 6 MEETING MINUTES OF JUNE 17 2 019 Ha�� Park and Schumann tennis u s. Mr. Carlisle stated they will be monitored by the police department. Mr. Hill Iso asked if the use of security cameras might be expanded to other areas. Mr. Carlisle stated that is being studied. The pickle ball courts will definitely have cameras installed. Going forward, as new areas of needs or areas with problems are pointed out, those needs and problems will be addressed. The focus will be on where cameras are needed so that funds are not spent needlessly by installing them in every park. Ms. Ring: • Regarding the seawalls, she suggested a map with color coding be devised, as she is not aware of the location the entire canal system in Sebastian. Ms. Cerda: • Inquired regarding skate park attendants and who is liable for anything that happens at the skate park. Mr. Carlisle reviewed that, after doing extensive research on the skate park, it was discovered that the cost for the attendants to be there was significantly higher than the income from the users of the park. Going forward, the users of the park would sign a waiver and get a sticker, which they can get at City Hall or the Community Center, absolving the City of any liability. • Asked for explanation of the fact that the deficit for the airport fund is expected to be a positive by the end of 2020. Mr. Killgore called attention to the budget document, almost at the very end, where it discusses the airport fund. It shows the deficit balance at the end of last fiscal year, projections for this fiscal year, and projections that by the end of 2020 it should be a positive of almost $5,000.00. Mr. Herlihy: • Regarding personnel, the addition of a DPW employee is listed. There is also a Facilities Maintenance Director, 40% of that cost listed as being paid for by the airport. He questioned where in the airport budget that is set forth. Mr. Killgore stated it is listed in the airport budget as administrative services provided by the general fund. Mr. Carlisle explained that, with the stormwater director leaving, that position will be reallocated to cover both roads and stormwater. Technically, another person is not being added; the duties of that person will be split among stormwater and roads and fleet maintenance. Mr. Hoffman: • Regarding the non -departmental expenses, he asked why the cost of internet services has decreased so much. Mr. Carlisle explained that that cost has been moved from non -departmental to MIS. • Inquired why the revised budget for personnel services increased $80,000.00. Mr. CITIZENS BUDGET REVIEW ADVISORY COMMITTEEPAGE 7 MEETING MINUTES OF JUNE 17, 2019 Killgore explained that, regarding group insurance policies, the City provided a credit card to each employee to use towards the deductible for their health insurance and other insurance costs. These charges are then deducted out of this account, and there has been a higher amount of charges in the last year, but there is a cap on what each employee spends. Mr. Weragoda: • Regarding the capital budget, he inquired if the costs of traveling, etc. are charged to the capital budget. Mr. Carlisle explained that the costs of traveling, etc. are charged to the particular department involved. Ms. Veidt: • Under the non -departmental listing, she inquired what is the $20,000.00 for group insurance. Mr. Killgore stated he would have to follow up on that. • Her other concerns regard personnel costs, which she said Mr. Killgore is going to look into, and the fact that the golf course is still showing a deficit up to 2024-25. Also, the MIS costs appear to be increasing greatly. Mr. Napier: • He is pleased with the budget, particularly as it is being funded at rollback, and he appreciates the hard work that went into it. IX. Comments by Staff Mr. Killgore stated the City is working on developing a better methodology regarding goals and objectives. He said the City applies for the budget award every year, and he has been advised that the City did receive it for last year's budget, which is 15 years in a row that it has been received. X. Public Comments Pamela Parris, 512 Gerald Street, Sebastian, Vice President of the Sebastian Property Owners Association requested further explanation of the $40,000.00 fee for the election. Mr. Carlisle explained that in an election year, if it's not a general election or a county- wide election, the City is responsible for all costs of the election, including the poll workers, public notices, staffing, mailings, etc. Damien Gilliams, 1623 US Highway 1, Sebastian, President of Sebastian Property Owners Association. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 8 MEETING MINUTES OF JUNE 17, 2019 • Suggested a respiratory unit be provided in each patrol vehicle so that the officers could use that unit to benefit them when battling fires. • Regarding the spraying of the canals, he would like to see $500,000.00 allocated for stormwater maintenance. As to the sea walls that need to be replaced, one- half of the Highlands has been done, and the other half still has to be done. Mr. Napier stated that that issue has begun to be addressed in this budget. • Reviewed the removal of sugar sand from the cemetery property. A figure of $375,000.00 was mentioned as the value of the sugar sand, and there is nothing in the budget that lists the sale of the sugar sand. Mr. Napier advised that is an administrative matter, and not under the purview of this Committee. • He is asking that a wellness program be looked into in order to help bring insurance premiums down. • He suggested an exit survey program be instituted for employees who leave the employ of the City. XI. Adiournment There being no further business, Chairman Napier adjourned the meeting at 7:33 p.m. LIM A Date: