Loading...
HomeMy WebLinkAbout03-16-2020 BAC MinutesCITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING MARCH 16, 2020 I. Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. II. Pledge of Allegiance was recited by all. III. Roll Call Present Mr. Gilbert Lewin Mr. Harry Hall Mr. Larry Napier Ms. Amber Cerda Ms. Andrea Ring (a) Absent Mr. Keerthi Weragoda (a) -- Excused Mr. Bruce Hoffman -- Excused Mr. Ed Herlihy -- Excused Also Present Mr. Ken Killgore, Administrative Services Director/CFO Ms. Cindy Watson, Human Resources Manager Ms. Janet Graham, Technical Writer Mr. Napier announced that Ralph Holmes has withdrawn as a member of the Committee. Messrs. Hoffman, Herlihy, and Weragoda have been excused from this meeting. IV. Approval of Minutes A. Meeting of January 13, 2020 Mr. Napier asked if all Committee members had reviewed the Minutes of January 13, 2020. All indicated they had. He called for a motion unless there were any changes or corrections to be made. Hearing no changes or corrections, a motion to accept the Minutes as presented was made by Mr. Lewin, seconded by Ms. Cerda, and approved unanimously via voice vote. V. Review of First Quarterly Report -- Fiscal Year 2020 CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MEETING MINUTES OF MARCH 16, 2020 Mr. Killgore reviewed the City Council Agenda Transmittal Form, Resolution No. R-20-04, the Summary of Budget Changes for Quarter Ending December 31, 2019, and the various Fund Summaries and Department Reports (SEE ATTACHED). He explained there is still about $140,000.00 due the City from Hurricane Matthew and $34,104.00 due from Hurricane Dorian that have yet to be authorized. He will present these reports to City Council at its next meeting. He asked the Committee for questions or comments. Mr. Lewin addressed the First Quarterly Report. The largest single expenditure seems to be the Police Department, which is running approximately 33 percent of the year-to- date budget. The actual appears to be substantially higher than the previous year's actual for the same quarter. He questioned if this is something to be concerned about going forward. Mr. Killgore stated it is in line with what was allowed in the budget calculations in their collective bargaining agreement. They are allowed to cash in some sick leave, which is actually paid out in December. So that inflated their normal quarterly spending accordingly. There was also a police officer who entered the DROP program that was created in the Pension Fund. When that is done, the employee is treated like a regular employee who terminates with the City and is entitled to the payout of their accrued leave time. So with that large payout, because it was a long-term employee who qualified for the DROP program, he was basically paid his accrued leave time. Now he is in the DROP program, which gives him a five-year period during which he is going to resign, but no later than five years. He can start accumulating his retirement benefits, although he doesn't get his hands on his retirement monies, but he starts creating a balance that is earmarked in the Pension Trust Fund, which is earmarked as his funds, that he can receive as a lump sum once he actually does retire and leave employment. Mr. Lewin asked if that is only permitted during the first quarter. Mr. Killgore stated it is just coincidental that it happened this quarter. This was approved in the Pension Plan about three years ago as an additional benefit to the police officers. This happens to be the first officer who elected to sign up for it and commit to retiring no later than the end of the five years. Mr. Lewin asked if the year-to-date budget is still considered to be an acceptable one. Mr. Killgore stated yes, it is adequate for the remainder of the year, barring any excessive overtime due to hurricanes or something out of the ordinary. Mr. Hall addressed the entry of False Alarms. There are 56 false alarms listed and only $100.00 in assessments. Mr. Killgore stated that may be due to the fact that, although CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MEETING MINUTES OF MARCH 16, 2020 there is a penalty for false alarms, sometimes they do not kick in immediately. He will follow up on that and inform the members regarding that item. VI. Review of Presentation to Citv Council of Budqet Process Mr. Napier stated the Committee members can read that. Mr. Killgore stated questions or comments from the Committee members can be addressed to him by phone at his office or via emails. VII. Review of Fiscal Year 2020-21 Budget Obiectives Mr. Killgore stated the Committee can review it. This did go to City Council as an agenda item. There were no comments or suggestions by the Council. Mr. Napier asked if the Committee members had any questions or comments. Mr. Lewin asked when the budgeting process for next fiscal year will begin. Mr. Killgore stated the reports from department heads were due last week. He is in the process of working them into a document to schedule them out in order to see if projected revenues are adequate to cover them. That's the first step that the City Manager will start reviewing in May. The department heads will submit their operating account budgets in May. By the end of May the City Manager will endorse what has been put together as far as a working draft and make any changes that he feels are necessary before it is presented to the Council. The Council reviews it at a workshop in August. While that is going on, the Budget Committee is being informed on what the City Manager's recommendation is and whether the Committee wants to comment on it before it goes to the Council. In September, public hearings before City Council are held. At that time this Committee can either agree with what is recommended, or the Committee has the opportunity to state that they don't agree with staff's recommendation. Mr. Napier stated the estimated values will be presented around the first week in June. Mr. Killgore stated those are due by June 1st, and the County actually certifies and says those are the values the City must use by July 1st. The Budget Committee does not get a working document until June, and then they can see what has been developed based on what staff sees as revenues and what they are recommending for expenditures as well as the capital program. Mr. Hall suggested the outline of the budgetary process should be done every year. It is a good refresher, and he is glad to see it this year. He would also like to see the Budget Objectives as well. He also asked if, as City Council makes their recommendations for CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MEETING MINUTES OF MARCH 16, 2020 budget objectives that can be relayed to this Committee before they get their June update. Mr. Killgore stated he would generally alert the Budget Committee as to anything Council did that would affect the direction that is being taken. VIII. General Discussion by Members Ms. Ring is still concerned about the Minutes and the motion that was not in the previous Minutes that had to do with streets. Mr. Napier asked if she had anything to present to the Committee on this, and Ms. Ring stated she is relying on her memory. Mr. Napier stated that will be left up to the City Manager. Mr. Lewin asked if anybody has discussed the impact the virus situation will have on the budget. Mr. Killgore stated there has been much discussion on how to deal with it. There have been ongoing considerations about what the next steps will be. His immediate concern is not the immediate precautions that may be taken, but the long-term economic impact because of what is going on nationally as to cutting interest rates and probable recession. He stated the City may be on the cusp of either a tax increase or making tough decisions on what projects can be done. He stated there is much uncertainty as to what the budget going forward will be. Mr. Hall stated he likes the presentation of the review of the budgetary process. IX. Comments by Staff Mr. Killgore stated at the next meeting on June 15th is when there will be more detailed discussions of what the departments are asking. X. Public Comments — None Xl. Next Scheduled Committee Meetino: June 15.2020 XII. AJourn There bein7g no further business, Chairman Napier concluded the meeting at 6:29 p.m By: in19 Zt tn...,.. Date: jg