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Home My WebLink About09-14-2020 CC SP Minutesma SEgAST __N HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL SPECIAL MEETING 1sr BUDGET HEARING MINUTES FY202012021 Proposed Millage and Tentative Budget MONDAY, SEPTEMBER 14, 2020 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Dodd called the special meeting for the first budget hearing to order at 6:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL Mayor Ed Dodd Vice Mayor Charles Mauti Council Member Damien Gilliams Council Member Jim Hill Council Member Pamela Parris (via Zoom) City Staff Present City Manager Paul Carlisle City Attorney Manny Anon, Jr. (via Zoom) City Clerk Jeanette Williams CFO/Administrative Services Director Kenneth Killgore Police Chief Dan Acosta Police Lieutenant Tim Wood 4. PUBLIC HEARING/ADOPTION OF TENTATIVE MILLAGE AND FY2020/2021 BUDGET A. Citv Attomev Advises Citv Council on Procedure for Mills{{��e/Budget Headno and Reads Titles of Resolutions No. R-20-17 - Tentative Millaae and R-20-18 - Tentative Budoet The City Attorney advised the process to adopt the tentative millage and budget in accordance with F.S.200.065 and read the titles of Resolution Nos. R-20-17 and R-20- 18. B. City Manger Announcement that: "the Millaae Rate of 2.9399 Mills is 4.66% Above the "Rolled -Back Rate" of 2.8091 and only sufficient to maintain current soendina levels for General Fund with no Droviston for emolovee ware increases. shortfalls of State Revenues or Davment resulting from least actions. The City Manager announced the millage of 2.9399 mills is 4.66% above the rolled -back rate of 2.8091 and asked Council to also consider a millage rate of 3.1514 which would be a 12.2% increase over the rolled -back rate. He said the rolled -back rate of 2.8091 is not sufficient to maintain the current spending level for general funds and does not have provisions for employee wage increases, shortfalls from state revenue or payments resulting from legal action. Special City Council Meeting 1a Budget Hearing September 14, 2020 Page 2 r�.7u1 He pointed out that they can always go back down at the second budget hearing but they cannot go back up and asked Council to consider the 3.1514 millage rate. C. Budoet Overview of Tentative Millaae and Tentative Budget by CFO Ken Killqore (PowerPoint Presentation) The CFO presented his PowerPoint presentation noting the big area of concern is the state revenue sharing because it is uncertain the impact that the pandemic will have on payments for 2021. He slated the state did reduce the monthly collections to $20,000 from $60,000 so the City is already in the deficit. He said if there are any further cuts it would affect service levels. He went over the impact that three possible millage rates would have on a $200K home. (Slides 7 & B) He stated the Citizens Budget Advisory Board recommended the millage rate of 3.1514 and outlined some of the planned improvements in the capital improvement fund and the status of the enterprise funds. 6:19 pm D. Mavor Ooens Public Hearina on Tentative Millaae and Tentative Budqet John Christino, SE Sebastian, said he was afraid of the message they might send with a 12% increase because the businesses have been through a difficult year. He urged them to rind an alternative. Grace Reed, Sebastian, thanked the CFO, said no one wanted to see increase but given what is going on, it might need to happen. She said some of the projects will take place over a number of years but they are needed to keep the City nice. She was against going into the reserves and running the risk of not being able to recover from a disaster. Linda Kinchen, Sebastian, advocated for the increase because they will have to protect what is going on. She said in her thirty years of employment at the City and doing the budget she hasn't ever received a message to be cautious so an increase needs to be done. Sharon Herman, Sebastian, said the City can't afford not to have reserves because we don't know what is coming down the line. She said getting a little bit from everybody is easier than getting a lot down the line. Christopher Nunn, said they shouldn't touch the reserves; they must deal with the costs of things that are going to happen such as the legal fees. E. Consider Resolution No. R-20-17 Tentative Millaae for Calendar Year 2020 (Transmittal. R-20-17) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A TENTATIVE MILLAGE OF 2.9399 MILLS FOR THE CALENDAR YEAR 2020; PROVIDING FOR CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. Council Member Hill thanked the CFO, City Manager, and department heads for the outstanding budget. The City Manager stated the 2.9399 millage rate provided for a balanced, bare bones budget. 6:31 pm Special City Council Meeting 1a Budget Hearing September 14, 2020 Page 3 He said he has never been an advocate for raising taxes but these are extraordinary times and they have to pay for this government. He said they have to be responsible because if they get into the reserves, next year will be more difficult because the base line will be in a different spot. He said they should go with the tentative 3.1514 rate at this meeting because if they find at negotiations, the employees are willing to go without a raise, they could go down. Vice Mayor Mauti agreed with Council Member Hill given the unknowns and pandemic, noting they can always go down. Mayor Dodd said they have been at or below rolled -back for the last three years; he said the state revenues are going to be decreasing which they have no control over; and he too, agreed they should go with the 3.1514 millage rate. Council Member Parris agreed with Mayor Dodd and Council Member Hill. 6:38 pm 6:53 pm In response to Council Member Gilliams, the City Manager advised the CARES Act funding cannot be used for budget shortfalls; franchise fees are anticipated to be slightly above projections; the ad valorem taxes are projected to increase due to growth; the utility services taxes are projected to increase; and the state revenue sharing is down. Council Member Gilliams said he sees increases in revenue and the message they are sending is that they can't find where to trim the budget; he was not in favor of raising taxes 12.2%. MOTION by Council Member Hill and SECOND by Mayor Dodd to consider Resolution No. R-20-17 putting the tentative millage rate 3.1514 which is a 12.2% increase above the rolled -back rate. Mayor Dodd noted the funding that Council Member Gilliams discussed such as the federal government's CARES Act monies and the discretionary sales tax dedicated for a project cannot be dropped into the general fund. He said the worst thing they could do because of COVID-19 is misinterpret that fact that the state is going to give less money than what we are receiving because then they will need to dip into the reserves that will lead to raising taxes next year. They have to keep the City operational and he will support the resolution. Council Member Hill stated the City Manager sets the budget based on what Council has requested him to put into the budget to provide a level of service to the community. Council Member Gilliams said he did watch the budget meetings, and the chairman of the Citizens Budget Advisory Review Board recommended that they should not raise taxes. Council Member Hill noted four other members agreed with what Council was doing. Roll call: Council Member Gilliams - nay Council Member Hill - aye Council Member Parris - aye Mayor Dodd -aye Vice Mayor Mauti - aye Motion carried. 4-1 Special City Council Meeting 1° Budget Hearing September 14, 2020 Page 4 F. Consider Resolution No. R-20-18 - FY 2020/2021 — Tentative Budcet (Transmittal. R-20-18. Schedule A) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020 AND ENDING SEPTEMBER 30, 2021; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT SERVICE FUND, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AIRPORT FUND, AND BUILDING DEPARTMENT FUND AS PROVIDED FOR IN SCHEDULE "A", ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. 6:59 pm Mayor Dodd noted there are summarizations of the budget in their backup. Council Member Gilliams said he hoped the community will come out at the second budget hearing. He asked the City Manager to meet with the department heads to look for additional funds. The City Manager stated that he has met with each department head and cut many of the departmental budgets as it is. Mayor Dodd said it is always possible to argue that you can cut something; they have to allow the City Manager to run the City. Vice Mayor Mauti said he would go along with the budget offered by the City Manager. Council Member Hill said he agreed with the Mayor; even though he is a "don't raise taxes kind of guy," he knows this budget is better for the City of Sebastian. MOTION by Council Member Hill and SECOND by Mayor Dodd to approve Resolution No. R-20-18. Roll call: Council Member Hill - aye Council Member Parris - aye Mayor Dodd -aye Vice Mayor Mauti - aye Council Member Gilliams - nay Motion carried. 4-1 G. The Mavor announced the Final Public Hearina on Millaoe and Budcet will be held on Monday. September 28. 2020 at a Soecial Citv Council Meeting at 6:00 P.M. Mayor Dodd announced the final public hearing on the budget would be held on September 28'h in the Council Chambers. There was no one to speak regarding the hearing. He invited the public to look at the budget on the City's website. 5. MOTION by Council Member Hill and SECOND by Mayor Dodd to adjourn the special meeting, first budget hearing at 7:07 p.m. Special City Council Meeting 1', Budget Hearing September 14, 2020 Page 5 Approved at the October 14, 2020 Regular City Council Meeting. Mayor Ed Dodd ATTEST.., - - nede clams, MMCC- r'ty Clerk _ _ _