HomeMy WebLinkAbout08-31-2020 BAC AgendaLnr LI
E�M
HOME OF PELICAN ISLAND
SEBASTIAN BUDGET REVIEW ADVISORY COMMITTEE AGENDA
6:00 P.M. MONDAY — AUGUST 31, 2020
CITY HALL
1225 MAIN STREET
THE MEETING WILL BE CONDUCTED IN THE CITY COUNCIL CHAMBERS, WITH
ENCOURAGEMENT TO WEAR MASK AND TO TAKE DUE CARE TO MAINTAIN SOCIAL
DISTANCING. IT WILL BE BROADCAST LIVE AS USUAL. THE PUBLIC CAN ACCESS THE
MEETING VIRTUALLY VIA ZOOM BY FOLLOWING THE DIRECTIONS SHOWN AT THE
BOTTOM OF THIS AGENDA. HOWEVER. THE PUBLIC IS ADVISED TO CHECK THE CITY
WEBSITE FOR UP-TO-DATE INFORMATION ON ANY CHANGES TO THE MANNER IN WHICH
THE MEETING WILL BE HELD AND THE LOCATION.
A. Call to Order
B. Pledge of Allegiance
C. Roll Call
D. Approval of Minutes:
a. Meeting of August 3, 2020
E. Update of FY2021 Budget Status by Ken Killgore, Administrative Services Director/CFO
F. Vote on Budget by Committee Members
G. Vote on Millage by Committee Members
H. General Discussion by Committee Members
I. Comments by Staff
J. Public Comments
K. Adjourn
Agenda Attachments:
a. Minutes for Meeting of August 3, 2020
b. Power Point Presentation
c. Draft Budget and Capital Improvement Plan — Available at the following link:
httr):Hpublic.citvofsebastian.orq/PDFs/2021 Budaet/20200624 Draft13udgetI3ook.ndf
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 1S MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENSE UPON WHICH THE APPEAL 1S TO BE
HEARS. (F.S.286.0105)
IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMODATION
FOR THIS MEETING SHOULD CONTACT THE CITYS ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS 1N ADVANCE OF
THIS MEETING.
Please click the link below to join the webinar:
httDs://us02web.zoom.us/i/82944517220
Or iPhone one -tap :
US:+13126266799„82944517220# or+19294362866„82944517220#
Or Telephone:
Dial(for higher quality, dial a number based on your current location):
US: +1 312 626 6799 or +1 929 436 2866 or +1 301 715 8592 or +1 346 248 7799 or +1 669 900 6833 or +1
253 215 8782
Webinar ID: 829 4451 7220
International numbers available: htti)s:HusO2web.zoom.us/u/kSnxTN3kn
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE
MINUTES OF REGULAR MEETING
AUGUST 3, 2020
Chairman Napier called the Citizens Budget Review Advisory Committee meeting
to order at 6:00 p.m.
II. Pledrie of AllecJance was recited by all.
III. Roll Call
Present:
Mr. Lewin
Mr. Hall
Mr. Napier
Ms. Cerda
Mr. Hoffman
Mr. Herlihy (via Zoom)
Absent:
Mr. Keerthi Weragoda (a)
Also Present:
Paul Carlisle, City Manager
Ken Killgore, Administrative Services Director/CFO
Barbara Brooke -Reese, MIS Manager
Janet Graham, Technical Writer (via Zoom)
IV. Aoi)roval of Minutes
A. Meeting of July 20, 2020
Mr. Napier asked if all Committee members had reviewed the Minutes of July 20, 2020.
All indicated they had. He called for a motion. A motion to accept the Minutes as
presented was made by Mr. Lewin, seconded by Ms. Cerda, and approved unanimously
via voice vote.
V. Presentation and Aparoval of Third Quarter Financial Rer)ort by Ken Killr-ore.
Administrative Services Director/CFO
Mr. Killgore gave a PowerPoint presentation (SEE ATTACHED) reviewing that this is the
third quarter report that he will be presenting to City Council on August 26th. If this
Commission has any comments or suggestions, those can be passed on to City Council
at that time. Included is the Resolution that adopts any changes that were made to the
budget during the quarter that need approval by City Council. There is one item from the
use of the R&R fund. Also reported are the adjustments that the City Manager made
during the quarter. There were a couple of additional revenue receipts. There was an
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2
MINUTES OF AUGUST 3, 2020
adjustment for the incentive awards that were given for the second quarter. There were
also a couple of items which were being adjusted between projects, both in the Recreation
Impact Fee Fund the CRA and Local Option Gas Tax Fund.
In reviewing the various reports, it was pointed out that above the General Fund Summary
in the narrative in the third line the 52% figure should be 74% of departmental funds
having been spent as of June 30th, and 72.2% of revenues have been received. The
General Fund Balance Forecast ties in with the projected numbers that were used for
additional revenues and ties to budget projection sheets that were used in the draft budget
for FY2021. A balance of almost $4.8 million is slightly below the $5 million target.
Considering the present circumstances, he considers that the City will be doing well to go
into the next year with that balance.
He has nothing new to report on the hurricane reimbursements. There still remains
approximately $140,000.00 due on Hurricane Matthew. Mr. Killgore reviewed the
Stormwater Fund and the three enterprise funds. The Fund Summaries provide detail on
each fund and each department in the City. He stated he included in this year's reports
the Interfund Loans, which show what transactions there have been over the year and
how those are being addressed in the budget. Also shown is what action will be taken in
next year's budget to be paying those down. The balance of the Quarterly Report are the
accomplishments that the various departments reported.
Mr. Killgore then asked for questions or comments from the Committee.
Mr. Lewin inquired regarding the Unassigned Reserve which shows a projection of $4.8
million instead of the $5 million that has been maintained up to this time. He asked if
there is any chance of reestablishing that $5 million, or is a new lower number being
targeted. Mr. Killgore responded that the lower number is being targeted at this point
unless something positive happens that has not been anticipated. He stated that in next
year's budget the City will be doing well just to keep that $4.8 million. It all depends on
whether the City has any additional unexpected allocations or any unexpected revenues.
Mr. Lewin asked if there is a minimum number that the City would be comfortable with.
Mr. Killgore stated the $5 million is a number that has been constant over the years that
is a safe amount. He did an analytical study regarding if a certain portion of that fund had
to be used because of hurricanes or other happenings that paid that reserve down. He
projected the timing of when there would be reimbursement from FEMA or other
insurance reimbursements and when the City could replenish it. The only way to
replenish the items that are not reimbursable in some fashion is to have more revenues
coming in during future years than are budgeted to spend.
Mr. Carlisle commented that the $5 million is not thought about just regarding storm
coverage, but the City also has to look at the liabilities such as retirement and payouts for
leave. Those things are also captured in those reserves. If there is a long-term employee
a D"T
F T
:Fig
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3
MINUTES OF AUGUST 3, 2020
who decides to retire, and the City has to pay out all of those funds, that has to come out
of those reserves. Those are unfunded liabilities. Mr. Lewin commented that, as that
number is lowered, the City's risk becomes greater. Mr. Carlisle stated that the only way
it can be raised is if the revenue sharing from the State can be increased or if taxes are
raised or through special assessments to offset General Fund expenditures.
Mr. Hoffman stated that from what he has read, the City lost approximately $427,000.00
in the first three quarters. He attributes the shortfall in the first three quarters to a drop in
the intergovernmental revenues. Mr. Killgore agreed and stated the biggest portion of
that was the state revenue sharing, which really hurt. Mr. Hoffman asked regarding the
franchise fees and utility taxes. Though they are down a bit, it is somewhat uncertain as
to when those show up; they do not flow evenly over a certain period of time. Mr. Killgore
stated that is correct. He stated that the City should hear sometime this month on the
state revenue sharing. Mr. Hoffman asked regarding the $800,000.00 from the General
Revenue Surplus, if there some way to annotate what makes up that $800,000.00. Mr.
Killgore stated he can do that. Mr. Hoffman stated that would be helpful.
Mr. Napier asked if the breakdown of that number is in the audit report. Mr. Killgore stated
it is set forth in general terms. If Mr. Hoffman wants more detail, Mr. Killgore stated he
would provide that.
Mr. Hall inquired as to the contract for the school resource officers, whether that is paid
on an annual basis. Mr. Carlisle said that is based on what the school sessions are. Their
sessions now run from August through May, and the payments are divided up in quarterly
payments based on that timeframe. Then the rest of the time the City utilizes those
officers for duties within the City. Mr. Hall also asked regarding the status of the false
alarms that are made and whether there are any fines being collected for the false alarms.
Mr. Carlisle stated it depends on how repeated an offender is whether there is an actual
fine involved. The first time a false alarm is made, there is only a warning.
Mr. Herlihy said he has a concern about revenue for next year. He states that at the
meeting at the end of August, if Mr. Killgore has gotten the report from the state and it is
horrible, that is something that this Committee must look at as far as the budget is
concerned.
Mr. Napier stated he is actually pleasantly surprised that it is not worse than it is.
The Committee unanimously approved the Third Quarter Financial Report via voice vote.
VI. Report on FY2021 Budget Process by Ken Killgore, Administrative Services
Director/CFO
A. Proposed Millage of 3.1514 by City Council
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4
MINUTES OF AUGUST 3, 2020
Mr. Killgore stated that City Council did approve the 3.1514 millage for the proposed
millage, and that will go on the tax notices. That is what they adopted as the trim notice.
As far as revenue projections, he has not seen enough significant differences from the
assumptions he has made at this point to change anything. There may be more
information by the end of this month regarding the revenues from the State.
B. Updates on Revenues and Labor Negotiations
Mr. Killgore stated that as far as labor negotiations, he is waiting until the parties involved
set a time to meet.
C. Presentation to City Council on August 26, 2020, 1st Public Hearing
on September 14, 2020
The presentation to City Council of the full budget will be on August 26. The first public
hearing will be different than the original date he had sent out. It will now be held on
September 14th.
D. Consider Need for Committee Meeting on August 31 st.
Because of the uncertainty at this time, he thought the Committee would like to meet on
August 31st to take a final look at the budget before the first public hearing. Mr. Carlisle
stated that Mr. Killgore went through the tax rolls and the new items. It was not felt that
there was enough of a discrepancy that would necessitate a meeting with the Property
Appraiser. Mr. Napier asked for the Committee members' opinions on the need for a
meeting on August 31 st. The majority of the Committee agreed to the meeting on August
31 st.
E. Comments by Committee Members
Mr. Hall is concerned with having the meeting on August 31 st, as that will be after the
presentation of the budget to City Council. Mr. Killgore stated the August 26th meeting
of City Council is only a workshop meeting. They would not necessarily be voting at the
August 26th meeting.
Mr. Hoffman asked regarding the City Council meeting on the 26th, since it is a workshop
meeting does it begin at 5:00 or 6:00. Mr. Killgore stated it will start at 6:00 p.m.
Mr. Hall commented that presenting the millage of 3.1514 gives City Council the
opportunity to make up any shortfall there may be in the Fund Balance and/or any labor
negotiations that have to be carried on.
ru"'RA:i9Y L '%fl
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 5
MINUTES OF AUGUST 3, 2020
Mr. Napier commented that staff did a great job in implementing this budget considering
the present situation regarding COVID-19.
Vill. Comments by Staff -- None
IX. Public Comments
Ken McDonough, Detective with the Sebastian Police Department. He is also the union
representative for Sebastian. He stated he and two other officers, Mark Mason and
School Resource Officer Daley, are present to represent the Police Department. Multiple
members of the Department would like to be here, but it was thought that with the virus it
would be more prudent to limit the number attending. Their purpose for being at this
meeting is to notify everyone that the Police Department is here to help everyone in these
unprecedented times and to help the City and its residents move on. The Committee
thanked Detective McDonough for his comments.
X. Adiourn
There being no further business, Mr. Napier adjourned the meeting at 6:35 p.m.
M
Chairman Larry Napier
J9
Date:
2021 Budget and Capital Program
Budget Committee
Final Recommendations on
2021 Budget And Millage
Prepared By:
Ken Killgore
Administrative Services Director/CFO
1
2021 Budget and Capital Program
oUpdate on General Fund Revenues:
Received State Forecast.
No Significant Changes to Other
Sources or Expenditure Line Items.
oNo Big Changes to Other Funds.
o Requesting Vote by Members on
Recommended Millage and Budget.
z
General Fund Update on Current
Revenues and 2021 Projections
oJuly & August Revenue Sharing 20%
Less Than Past 12 Months.
o Extremely Optimistic State Forecast:
Down Only 10% From Current Year.
Reassuring But This Year's Events
Scream BE VERY CAUTIOUS!
3
Posted on State"s Website With
August 20, 2020 Official Estimates
"Although these estimates were based on
the best information available at that time,
local government officials should be very
cautious and conservative in their budgeting
for the upcoming fiscal year. There is still
much uncertainty as to how the effects of
the global pandemic will impact state and
local revenues in FY 2020-21. ""
0
Update On Other General Fund
Revenue Sources
o Current Year Estimates Seem Close to
Amounts Used in Draft Budget and
Reserves Expected At Near $5 Million.
o Much Uncertainty With 2021 Forecast
Due to Unknowns About Pandemic and
One -Time Revenue Sources:
FEMA Recoveries $143,666.
Payment of Airport Loans $150,000,
Major Staff Concerns
With General Fund Budget
o Zero Provided for Employees.
Expenditure Cuts = Lower Service Levels.
o Temptation to Rely on Reserves.
o Unknowns:
Labor Negotiations, Hurricane Season
and Legal Settlements?
Future Effect of Pandemic On Revenue?
Assumed Better Revenues In 2021?
Options on Millage
o Levy Rolled -Back Millage of 2.8091 — 0%:
$200K Homestead Decreases $14 or More.
$200K Non -Homestead Increases $30 Max.
$1861240 Adjustment to Balance the Current
Draft Budget; No Room for Negotiations or
Unknowns Without Reserves.
o Levy Same 2020 Millage of 2.9399 — 4.7%:
$200K Homestead Increases $6 Max.
$200K Non -Homestead Increases $59 Max.
Draft Budget Balanced; Little Room for Labor
Negotiation or Unknowns Without Reserves.
Options on Millage
o Levy Proposed Millage of 3.1514— 12.2%:
$200K Homestead Increases $38 Max.
$200K Non -Homestead Increases $105 Max.
Allows $300,,917 Contingency for Reductions
in Revenues; Room for Labor Negotiations or
Unknowns Without Using Reserves.
Increases Revenue Base for Future Years and
Alleviates Concern of One -Time Revenues.
Status of Budgets for Other Funds
Special Revenue Fund Budgets Drive
the Capital Improvement Program.
$27.6 Million Over 6 Years. $5.8 Million
Next Fiscal Year. $23.2 Million Last Year.
$900,000 Street Repaving/Reconstruction.
$200,000 Stormwater Master Plan.
$500,000 Canal Restoration.
$569,264 New Taxi Way at Airport.
$1,000,000 Sewer Services at Airport.
0
Status of Budget for Other Funds
oEnterprise Funds:
Golf Course, Airport and Building Funds
Are Paying Interfund Loans.
Personnel and Operating Costs Are
Within Amount of Projected Revenues.
Airport Expecting Grants That Will Fund
Major Capital Projects and Support the
Economy in 2021 Alone:
0$5691264 New Taxi Way at Airport.
0$1,000,000 Sewer Services at Airport.
10
Recommendation to City Council on
Proposed Millage and 2021 Budget
oVote on Budget:
Questions to Staff and Discussion by
Committee Members.
Vote on Budget Recommendation.
oVote on Millage:
Questions to Staff and Discussion by
Committee Members.
Vote on Millage Recommendation.
11