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HomeMy WebLinkAbout08-31-2020 BAC MinutesCITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING AUGUST 31, 2020 Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. II. Pledge of Alleaiance 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. ADDroval of Minutes A. Meeting of August 3, 2020 Mr. Napier asked if all Committee members had reviewed the Minutes of August 3, 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 Update of FY20-21 Budaet Status by Ken Killoore. Administrative Services Director/CFO Mr. Killgore reviewed a slide presentation (SEE ATTACHED), discussing the updates that he has made since this Committee's last meeting. He stated there have been no significant changes to the sources or expenditures regarding the General Fund. There has been a forecast from the State, and he will discuss those figures in depth later in this presentation. There have been no major changes to any of the other funds of the City. He reviewed that later in the meeting the Commissioners will be asked to vote on the millage that will be presented to City Council as well as on the proposed budget. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MINUTES OF AUGUST 31, 2020 Regarding the State Revenue Sharing Funds that the City receives, the revenues for July and August 2020 were 20% less than last year for the same time period. The State also posted their estimates for all the municipalities and counties. Mr. Killgore stated that in looking at those figures he found that they were only 10% less than they were for last fiscal years projection. He feels that those figures are very optimistic. He stated that just looking at the last two months, the revenue sharing is actually 20% less than for the same months last year. Mr. Killgore went over the quote that is on the State's website where the State is putting qualifiers on those figures and advising the cities and counties to be cautious and conservative in their budgeting for the upcoming fiscal year. Mr. Killgore stated the thing that concerns him is how the state used the June and July payments and cut them by about two-thirds. He questions if the same might happen next year. Mr. Killgore is not recommending any shifts in the other revenue sources that were set forth in the draft budget. The budget is balanced at the 2.9399 millage rate, which is the same amount as this year. He listed the uncertainties with the FY20-21 budget such as the effect of the pandemic on the City's revenues as well as labor negotiations, the hurricane season, and possible litigation costs. This budget has no wage increases for the City's employees. He does not recommend using the City's reserves. Also covered was the revenue forecast for the utility fees, franchise fees, etc. The rollback millage of 2.8091 was discussed and how that would affect real estate taxes. If this millage is adopted, that would mean an adjustment of $186,240.00 would be needed to balance the current draft budget, with no room for negotiations or unknowns without using reserves. Secondly, Mr. Killgore explained that if the City adopted the 2.9399 millage, which is the same rate as the current year, it would mean a slight increase in real estate taxes. The draft budget is balanced based on the 2.9399 figure. He stated with the unknowns it would be difficult to operate at the 2.9399 rate. Thirdly, Mr. Killgore reviewed that using the millage of 3.1514, which was used the year before this, would necessitate an increase of approximately 12.2% in real estate taxes. If this figure is used, it would allow for a $300,917.00 contingency for reductions in revenues, as well as room for labor negotiations or unknowns without using reserves. The status of budgets for other funds was discussed by Mr. Killgore, including street repaving/reconstruction, stormwater master plan, canal restoration, new taxi way at the airport, and sewer services at the airport. The Enterprise Funds were discussed, including the golf course, airport and building funds, personnel, and operating costs, and expected airport grants. Mr. Killgore called for discussion among the Committee members regarding his presentation. Mr. Herlihy read aloud from a newspaper article published in Tallahassee which states that Florida economists slashed $5.4 billion from expected state revenue over the next CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MINUTES OF AUGUST 31, 2020 two years. Mr. Herlihy shares Mr. Killgore's concern regarding revenues. He stated the proposed budget as it now exists is fine with him, but he is concerned about no pay raises, upcoming labor negotiations, and any possible upcoming legal expenses. Mr. Lewin expressed that maintaining City services is important. He is concerned with vulnerability as to revenues, but he is satisfied with the budget as presented. Mr. Hoffman approves of the budget as presented, but he is concerned about the state revenue projections. Mr. Carlisle explained that the City used their own revenue projections. They did not use the state's projections but studied the City's revenue history over recent years in balancing the budget. Mr. Hall believes that retaining the present level of services is important. He is in favor of the budget as presented. Ms. Cerda also agrees with the budget as presented. She appreciates all the work by City staff that went into drafting the budget. Mr. Napier approves of the budget as it is presented. VI. Vote on Budcet by Committee Members There being a consensus of approval of the draft budget, all Committee members agreed that it be presented to City Council for approval. VII. Vote on Millace by Committee members Mr. Napier stated that presently the budget is balanced at the 2.9399 millage rate, and he is of the opinion that this millage rate should be used. He suggested that the $300,000.00 difference should be taken from the reserves to be used in this budget. Ms. Cerda is of the opinion that the 3.1514 millage figure should be used. Mr. Hall feels that a buffer is needed, so he is in favor of the 3.1514 millage rate. Mr. Hoffman feels the 3.1514 figure should be used to provide some flexibility. Mr. Lewin is cognizant that many people will be affected in a negative way by the increase in taxes, but he is in favor of the 3.1514 millage rate. Mr. Herlihy is in favor of the 3.1514 millage rate. He is strongly against using the General Fund Reserve. There was discussion among the Committee members and City staff as to whether there should be public comments before the motion was voted upon. it was decided that public comment was not needed at this point, as it is listed on the Agenda following Comments by Staff. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MINUTES OF AUGUST 31, 2020 A motion recommending the 3.1514 millage rate to City Council was made by Mr. Herlihy, seconded by Ms. Cards, and approved via voice vote. The vote was 5-1 in favor. Motion passes. VIII. General Discussion by Committee Members The Committee Members expressed their appreciation to Mr. Killgore for his work and diligence in crafting the proposed budget. IX. Comments by Staff Mr. Killgore thanked the Committee members for their input and the time they have spent on reviewing the budget. He also thanked Mr. Carlisle, the City Manager, for his input. Mr. Carlisle echoed Mr. Killgore's sentiments regarding the work the Committee members put into reviewing the budget. X. Public Comments Andrea Ring, Sebastian, commented on the Committee adhering to Roberts Rules of Order. XI. Adiourn There being no further business, Mr. Napier adjourned the meeting at 6:44 p.m Bv: Date: 2-14(Z/ Chairman Larry Napier jg