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HomeMy WebLinkAbout05-17-2021 BAC MinutesCITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING MAY 17, 2021 Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. Pledae of Alleaiance was recited by all. III. Roll Call Present: Mr. Napier Mr. Hoffman Mr. Hall Mr. Herlihy Absent: Mr. Wilson — Excused Mr. Sullivan (a) — Unexcused tJ Ms. Cerda (at -large member) Mr. McGinn (at -large member) Mr. Newhart (a) Also Present: Ken Killgore, Administrative Services Director/CFO Cindy Watson, HR Manager Joseph Perez, AV Technical Assistant Janet Graham, Technical Writer (via Zoom) Approval of Minutes: Meeting of February 8, 2021 Mr. Napier asked if all Committee members had reviewed the Minutes of February 8, 2021. All indicated they had. Mr. Killgore indicated that there was an error on the first page where it lists under the Roll Call that Mr. Weragoda was present via Zoom. Mr. Weragoda had been a previous alternate but was not a member at the time of that meeting, and he should not have been listed on the Roll Call. His name should be struck from those Minutes. Mr. Napier called for a motion. A motion to accept the Minutes as presented with the change as noted above was made by Ms. Cerda, seconded by Mr. Herlihy, and approved unanimously via voice vote. V. Review of Second Ouarteriv ReDort — FY 2020-2021 Mr. Killgore reviewed the quarterly reports as presented and stated this agenda item will be presented to City Council at their meeting of May 26, 2021. Included is Exhibit A, Resolution No. R-21-07, which shows the budget adjustments that have been made during the quarter, some of which were approved by City Council during the first quarter. The only adjustments that are being submitted at this meeting for City Council approval are several disbursements out of the General Fund R & R account. He explained for the new Committee members that City Council years ago authorized setting aside an amount CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MINUTES OF MAY 17, 2021 MEETING of $275,000.00 for unexpected repairs or replacements that happened during the year due to equipment failure, etc., things that were not budgeted during the year. The City Manager has been authorized to proceed with those, subject to normal purchasing policies. Then those figures are reported to City Council with this quarterly report. There were some significant transfers during the quarter that were approved by the Council. One was to adjust for the Public Works Compound. The amount that had been budgeted needed to be increased for the value of the guaranteed maximum price contract that City Council approved. There was also an adjustment for the hangar project that is a grant program underway at the airport. Mr. Killgore pointed out an error on the General Fund page where in the top righthand comer it is stated "...503% of the budgeted amounts..." That figure should be 50.3%. He called everyone's attention to the bottom of that same page where the General Fund Balance Forecast is set forth. He reported that after March 31� City Council was presented with a large expenditure out of the General Fund Reserves account in the amount of $358,786.00. There was no other source of funding for that project, which was the Yacht Club seawall repair that was approved. So the projected expenditures have been adjusted to anticipate that amount will be in the City's total expenses by the end of the year. If so, that would bring the reserves down to $4,773,221.00, which is close to the $5 million target. The figure for revenues in the General Fund has been just slightly above the amount budgeted, or less than 1%. So that depends to a large degree on how much is spent by the General Fund departments. Generally, they spend approximately 97% of budgets overall. So some of that may be made up that way, but he would not be surprised if by year end the City has less than the $5 million target. He further reviewed the individual fund reports as well as fund summaries and the individual department reports. The Capital Project Status Report as of March 31, 2021 was discussed. He stated that he noted that there were some minor issues in the golf, airport, and building funds in the budget amount column. These are not significant and will not change his actual forecast that much. He estimated that all the funds will probably be better than were projected. In the Capital Project Status Report as of March 31, 2021, there are just a few large projects -- the construction of Hangar D and the relocation of the Public Works Compound. Those are the majority of the total projects and amounts. The Investment Report and Interfund Loans Report were reviewed, and total cash and investments in the narrative section should read $19,599,000.00 which is very healthy for this time of the year. He reviewed how low the percentage rates are at this time. The balance of the report are summaries provided by each department of their activities during the quarter. Mr. Killgore then called for questions/oomments by the Committee members. Mr. Newhart asked regarding the entry for Florida Trust where it says the percentage reads 3.3% if that figure should be .33%. Mr. Killgore explained that for the first quarter of the year the investments really did well; however, for this quarter they really fell. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MINUTES OF MAY 17, 2021 MEETING Mr. Hall asked what the projected fund balance is for the end of the year. Mr. Killgore explained that for the General Fund, he is estimating between $4.7 million to $4.8 million, somewhere in that range. Mr. Hall stated that his understanding is that it is projected that a budget may need to be presented that will make up for the difference in the coming year. Mr. Killgore stated that we will not know until the end of the fiscal year what that shortfall actually is. He thinks that during the presentation that would be on the table. In looking at the revenues and expenditures through the second quarter, he stated that it appears that this Committee's recommendation for this current budget for a higher millage rate is pretty much right on target, and it did allow for the contingency for the $358,000.00 for the Yacht Club's seawall. However, it still has us bellow the targeted $5 million for reserves based on staffs projection. Hopefully, things will turn around and the City will finish out the year without having to again take that into consideration. Mr. Napier said he noticed in looking at the summaries, the second quarter in the General Fund is the best of the three years shown. We have had a better-than-expected General Fund, and in the Special Revenue Funds, they are coming in better than what was budgeted. He also opined that the City did not need to do the extra millage rate that was done last year based on the way these numbers are coming in. Mr. Killgore stated that the reason why the budget for revenues looks better is due to the increase in state revenue sharing. Mr. Herlihy commented that it is impressive to him that the City's budget for the first two quarters were right on target, and he commended Mr. Killgore and his staff regarding this. He also asked whatever happened to the extra check that was received from FEMA. Mr. Killgore stated it is still on the books. Similar to the Building Department situation, it was set up in the General Fund on the balance sheet as basically a refund payable. Mr. Hoffman asked if Mr. Killgore has heard anything more on the hurricane reimbursement. Mr. Killgore stated he has pretty much given up on it for now, but sooner or later there has to be an accounting. It will soon be five years from Hurricane Matthew. If the City were to receive those funds, it would bring the reserve fund up to close to the $5 million target. Mr. Hoffman also asked regarding the General Fund Summary where it lists Franchise Fees and Utility Taxes are only running about 38%. Mr. Napier stated that those figures are approximately 60 days behind in their reporting. Regarding the R & R Account -- the Hardee Park Restroom Lock in the amount of $1,200.00, he suggested that this figure is excessive. Mr. Killgore does not know how this amount was arrived at. Regarding park irrigation repairs, he asked why it is entered as a positive $2,730.00 instead of a negative number. Mr. Killgore stated that is an error. It should be a negative number, and he will correct that. As to the Stormwater Fund Summary, Mr. Hoffman stated it looks like we have done very well collecting the ad valorem taxes so far at 93%. Why would the stormwater fees only be 89%? He asked if some people choose not to pay the stormwater fee on their tax bill. Mr. Killgore explained that some people may be having a large part of their value reduced. Mr. Napier stated that residents pay a flat fee, CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MINUTES OF MAY 17, 2021 MEETING but commercial is different. In the Building Fund entry, Mr. Hoffman asked if the state has actually passed the law or enactment that we have to repay certain fees. Mr. Killgore stated that was actually passed before the end of the last fiscal year, sometime in July. He further explained that the City recognizes that it will have to pay it to someone. So he intends to refund it as soon as he gets guidance on how it is supposed to be calculated. Ms. Cerda wanted to echo Mr. Herlihy's comments that the report looks great. She does also want to vouch for the Hardee Park lock. It was pretty badly damaged. She does not know for sure, but extra repairs may have been needed. VI. Reports from Chief Financial Officer A. Received GFOA Budget Award on Budget Document — 17th Consecutive Year Mr. Killgore reported that for the 171h consecutive year the City got the Budget Award on this year's document. He reviewed that last year there were a few comments from the reviewers, but apparently the City satisfied those issues. He staled that the overall grading was a bit better this year. B. Preliminary Taxable Values Due Before June 151 (Final Before July 15t). C. Budget Presentation/Proposed Millage on July 281h (Final before July 151). Mr. Killgore reminded everyone as far as the City's budget cycle and the property tax estimate cycle, on June 16t we should get a preliminary estimate of our tax roll number. That will give us a general idea of where we need to be. Departments were due to turn in their budget requests last week, and he has almost all of those. Staff are updating their worksheets so that they can get to the point of the final presentations. He also reviewed that there was some news that we are due $3.3 million from the American Recovery Act. May 101h was the due date to give us the guidelines on how to apply for the money. He stated that the City will be getting the money directly from the US Treasury in two installments. One is supposed to come this month and the other a year from now. He stated he made the application on the first day that the materials were available. He has not been notified of any mistakes in the application, so he is waiting for the check to come in the not -too -distant future. Mr. Hoffman asked if the majority of those funds is for new expenditures or recovery of monies already spent. Mr. Killgore stated that the rules are supposed to encourage us to spend the monies on one-time things, mostly infrastructure, and they specifically stressed it is for water/sewer systems, etc. or something COVID-related They also mentioned stormwater, and we have some stonmwater projects on the table that we are hoping will be eligible for grant funds. He expects to be alerted to the interim rules that have been CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 5 MINUTES OF MAY 17, 2021 MEETING decided upon not too long after this month. These funds would not go into the General Fund budget; they will be entered into a special account. VII. General Discussion by Members Mr. Hoffman asked how the City's workforce is, given all the news about labor shortages. Mr. Killgore stated that in his department, the Procurement Manager/Contract Manager resigned with short notice. He believes they have had three applicants for this position, one of whom has an interview scheduled. The City Engineer position is open, and staff just started advertising for that about a week and a half ago. There is one interview scheduled for that. Wages compared to the market are something that staff are looking at as part of our process of union negotiations this year and what can be done. Ms. Watson stated that it is very difficult right now finding help, and that is true not only for the City. Mr. Herlihy asked that Mr. Killgore email the figures from the Property Appraiser when they are available. Mr. Killgore stated he would do that, and he explained what the preliminary report would cover. The certified report comes July 151, and he will email both of these reports to the Committee members. Mr. Hall asked if he could have a copy of the proposed budget that is due June 231". He will pick it up at the City Hall lobby. Mr. Killgore stated he would provide that. Vill. Public Comments Seeing no one in Chambers who wished to speak and hearing no one on Zoom who wished to speak, Mr. Napier moved to the next item on the agenda. IX. Next Meetina Date -- July 12. 2021 X. Admourn There being no further business, Mr. Napier adjourned the meeting at 6:49 p.m Bv:, a, Date: aNman9LarrySfA,.Napier 19