HomeMy WebLinkAbout06-29-2020 BAC Agenda41T'4�
HOME OF PELICAN ISLAND
SEBASTIAN BUDGET REVIEW ADVISORY COMMITTEE
AGENDA
6:00 P.M. MONDAY — JUNE 29, 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.
a. Call to Order
b. Pledge of Allegiance
c. Roll Call
d. Approval of Minutes:
a. Meeting of March 16, 2020
e. Presentation of Draft Budget by Ken Killgore, Administrative Services Director/CFO and Committee
discussion of the Draft Budget and Capital Improvement Plan.
f. Agree on Next Meeting Date (Monday, July 13, 2020)
g. General Discussion by Members
h. Comments by Staff
1. Public Comments
j. Adjourn
Agenda Attachments:
• Minutes for Meeting of March 16, 2020
• Power Point Presentation of Draft Budget
• Draft Budget and Capital Improvement Plan — Available at the following link:
ttD://Dub cityofsebastian.oro/PDFs/2021 Budoet/20200624 DraftBudoetBook.Ddf
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 ACCOMODATION
FOR THIS MEETING SHOULD CONTACT THE CITYS ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS IN ADVANCE OF
THIS MEETING.
Please click the link below to join the webinar:
httos://us02web.zoom.us/i/897841 91571
Or iPhone one -tap : US: +13017158592„89784191571# or +13126266799„89784191571#
Or Telephone: Dial (for higher quality, dial a number based on your current location):
US: +1 301 715 8592 or +1 312 626 6799 or +1 929 436 2866 or +1 253 215 8782
or +1 346 248 7799 or +1 669 900 6833
Webinar ID: 897 8419 1571
International numbers available: ittos://usO2web.zoom.us/u/kN4mwInDa
CITIZENS 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 Aller)iance 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 Quarterlv 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 maybe 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 Budget 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 staffs 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 1 st. 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.
Vill. 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
XI. Next Scheduled Committee Meetina: June 15. 2020
XII. Adiourn
There being no further business, Chairman Napier concluded the meeting at 6:29 p.m.
M
A
Date:
2021 Budget and Capital Program
Presentation on Draft 2021 Budget
Budget Review Advisory Committee Meeting
Monday June 29, 2020
Prepared By:
Ken Killgore
Administrative Services Director/CFO
1
2020 Budget and Capital Program
o Changes to
General
Fund
Budgets.
o Changes to
General
Fund
Revenues.
o Enterprise and Other Funds.
oOther Considerations.
K
General Fund Personnel
Additions/Deletions
o No Full-time Additions
o No Full-time Deletions
o No Part-time Additions
o Part-time Deletions:
Leisure Services - Asst. Recreation Supervisor
Leisure Services — Maintenance Worker I
3
Draft FY2021 General Fund Budget
Versus Current FY2020 Budget
$ (11,060) Personnel Costs
(161,429) Operating Expenses
(125,228) Capital Spending
(4,691) Transfers to Other Funds
$ (302,,408) Decrease in Budget
M
Personnel Down $11,060
o Zero Provided for Pay Increases.
' Health Insurance Premiums Down 3%.
No Increase in Full -Time Employees.
> Decrease of 2 Part-time Employees.
$371600 Provided for Retirement Payout.
$51,632 Provided for Added Responsibilities.
o Zero Funding for Holiday Bonus or Incentives.
What's Included? —
Revenue Assumptions
o Franchise Fees and Utility Taxes Looking to be
Equal
to
2019 This
Year.
Assuming Collections
Improve
and 4.5%More
is Received for 2021.
o State Revenues - Y2Cent is 35% Less than Same
Month in Prior Year (April). Assuming This
Improves and 4.5% More Received for 2021.
o Assumed $50K Reimbursement for COVID-19.
0 33% Property Tax, 11% Franchise Fees, 18%
Utility Taxes and 18% State Revenues Equal 80%
of Total Revenues.
M.
Enterprise Funds:
Golf Course
Assuming 4.5% More Revenue than 2020.
o $30,000 for Restaurant Lease.
o $106,135 for Airport Rent.
o Paying $38,366 Principal and Interest on
$700,000 Building Fund Loan.
Paying $35,000 Toward General Fund Loans.
o Forecasting Long-term Reduction in Deficit.
Enterprise Funds:
Airport
Added Revenue from Property Rentals.
Covering Personnel and Operational Cost.
Paying off $150,000 General Fund Loan.
Paying Scheduled Amortization of Loans from
Discretionary Sales Taxes.
DST Funds for Matching Requirements on
Grants for a Taxi .Lane and to Establish Sewer
Service on West Side of Airport.
Enterprise Funds:
Building
o Budgeting Minor Decrease in Revenues.
o Adding Administrative Assistant.
o Covering Personnel and Operational Cost.
o Making Improvements to Front Counter.
Expecting $38,368 for Principal and Interest
on Golf Course Loan.
X
Special Revenue and Other Funds:
Special Revenue Funds
o Local Option Gas Tax:
31% Less than Same Month Prior Year (March).
Assuming Collections Improve and Equal 2020.
$400,000 Allocated for Road Resurfacing.
$100,000 Allocated for Sidewalks.
$811000 Allocated for Roadway Signs.
$176,000 Allocated for Equipment.
$243,340 for Payment on Notes. ($591,000
Outstanding at 9/30/2020. Matures in 2022.
10
Special Revenue and Other Funds:
Special Revenue Funds
Discretionary Sales Tax:
37% Less in April vs. Same Month Prior Year.
Assuming Collections Better & Up 4.5% 2021.
Allocations to MIS and Police Vehicles.
$500,000 for Road Reconstruction Work.
Harrison St. Plaza/Design of N. Central Plaza.
Tree Protection Plan.
Canal Restoration.
Slip Lining
Economic Development Hangar.
May Defer Projects If Collections Not Adequate.
11
Special Revenue and Other Funds:
Special Revenue Funds
Riverfront CRA Fund:
4%Increase in Taxable Values.
Landscaping/Parking Improvements and
Repairs at Working Waterfront.
Special Events and Sign Grants.
Expecting No New Sewer Connection Grant
Funds Needed for 2021.
Allocation of CRA Manager Cost.
Y2of Landscaping Contract.
12
Special Revenue and Other Funds:
Special Revenue Funds
o Recreation Impact Fee Fund:
Fully Allocating the Available Collections.
Unspecified Improvements ($5K per Zone).
Additional Park Signage.
Completing Barber Street Bleachers.
Playground Improvements (Including All
Inclusive Features).
Future Projects Dependent on Collections.
13
Special Revenue and Other Funds:
Special Revenue Funds
Stormwater Utility Fund:
Fees Covering Ongoing Personnel and
Operational Cost.
Includes Equipment Replacements.
$1001000 Allocated for Roadway Swales
and Culverts Work.
Y2of Landscaping Contract.
$200,000 Allocated for Developing an
Updated Stormwater Master Plan.
14
Special Revenue and Other Funds:
Special Revenue Funds
Law Enforcement Forfeiture Fund:
Used Only for Unbudgeted Items.
Specific Items Need City Council Approval.
Current Balance is $321700.
Parking In Lieu Of Fund:
Expecting $57,835 Year End 2020 Balance.
$3,000 in 2021 on Crab Stop Agreement.
15
Special Revenue and Other Funds:
Special Revenue/Trust Funds
o Cemetery Trust Fund:
Y2of Sales Expendable on Expansions or
Cost Incidental to Adding Future Sites.
Funding Columbarium Niches.
Y2of Sales on Operations and Maintenance.
oAllocation for Equipment, Driveway
Resurfacing and Grounds Improvements.
oTransferring $85K to General Fund, Then
$90K in Future Years.
16
Special Revenue and Other Funds:
Debt Service Funds
Stormwater Utility Debt Service:
Includes Required Bank Note Payments
Which are Paid by Discretionary Sales Tax.
$782,000 Outstanding as of 9/30/20.
Final Maturity on 5/01/22,
17
Capital Improvement Program
o $27.6 Million Over 6 Years. $5.8 Million
Next Fiscal Year. $23.2 Million Last Year.
o Largest Items for Next Fiscal 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.
Property Values and Millage:
Certified Taxabb.-10 Values
o Rolled -Back Millage is 2.8090. Budget Assumes
Same 2.9399 as This Year, A 4.66% Increase.
o Total Certified Taxable Property Values
Increased $99,290,047 or 7.18%Above 2020.
Additions Account for $33,685,698 or
2.44% of the Increase.
Reassessments Account for $651604,349 or
4.74% of the Increase.
o Last Year's Millage of 3.1514 Would Increase
Revenues by $300,917 Over the 2.9399 Millage
Currently Assumed in 2021 Budget Draft.
19
Property Values and Millage:
Taxable Value Additions
Dollar Value of Tax Roll Additions:
2020 3316851698 2016 251763,700
2019 2313511814 2015 2514921245
2018 1519981366 2014 19,914,805
2017 35,0951,1704 2013 91435,090
Tax Roll Additions Yield $95,071 of Added
Revenue for 2021 at the 2.9399 Millage).
20
rj
Property Values and Millage:
3.1514 Mills Versus 2.9399
ASSESSED VALUES
TAXABLE VALUES
TAXES
1. 0322% On Homestead:
2.9399 3.1514
$200,000 $202,064
$150,000 $152,064
$441 $479
CHANGE (8.6% - 17.9%) $38
...............................................................................................
ASSESSED VALUES $250,000 $252,581
TAXABLE VALUES $200,000 $202,581
TAXES $588 $638
CHANGE (8.5% - 18.0%) $50
ASSESSED VALUES $3001000 $303,097
TAXABLE VALUES $250,000 $253,097
TAXES $735 $798
CHANGE (8.6% - 17.9%) $63
l0% On Others:
2.9399 3.1514
$200.0000 $220,000
$200.0000 $220,000
$588 $693
$105
$250,000 $275,000
$250,000 $275,000
$735 $867
$132
$300,000 $330,000
$300,000 $330,000
$882 $1,040
$158
21
3.9000
3.8000
3.7000
5ME
a
3.5000 m
e
3.4000
3.3000 S
a
3.2000 m
e
3.1000
S
a
m
e
City of Sebastian
Yearly Millage Setting
L
Final Less Than A L Final Above e
Roll -back b e Roll -back S
S
o s V
v s
e
Final Same
as Roll -back
Final Less Than Proposed
Final Same As Proposed
Final Less Than Proposed
2.9000
�
--
2.8000
- -7- -
r
___I
_ _
2007 ,
2008 2009
2010
2011
2012
2013
2014
2015 2016 i�2017
2018
' 2019
2020
Rolled- Back
3.0519
3.2121 3.3646
3.8038
3.9019
3.7311
3.5646
3.7398
3.5446 3.6290
3.6700 3.4939
3.1514
2.9399
Proposed
3.0519
3.0519 3.3646
3.8038
3.5940
3.3041
3.7166
3.7166
3.8556 3.8556
3.8556 3.8000
3.4000
3.1514
Final
3.0519
2.9917 3.3456
3.3456
3.3041
3.3041
3.7166
3.7166
3.8556 3.8556
3.8000 3.4000
3.1514
2.9399
Other Considerations
o Labor Agreements Negotiations.
o Hurricane Season.
o Legal Settlements.
o Additional Experience of Virus Effect
Revenues — Might Adjust Revenue Estimates.
o Assumed Better Revenues by October 2020.
o Balanced by Optimistic Revenue Estimates,,
Cutting Pay Increases, Cutting Operating
Accounts and Funding Capital Items with
Other Funds or Deferring Them to Next Year.
23