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SEBASTIAN BUDGET REVIEW ADVISORY COMMITTEE
AGENDA
6:00 P.M. MONDAY —AUGUST 16, 2021
CITY HALL
1225 MAIN STREET
a. Call to Order
b. Pledge of Allegiance
c. Roll Call
d. Approval of Minutes: Meeting of July 19, 2021
e. Power Point Presentation of Updates to Draft 2022 Budget Recommendations.
f. Vote on a Final Millage Rate Recommendation to the City Council and for Approval of
Staff's Proposed Budget/Capital Improvement Program.
g. Public Comments on Items Not Otherwise on the Agenda
h. Next Meeting — No Further Meetings Are Anticipated Until the Next Budget Cycle.
i. Adjourn
Agenda Attachments:
• Power Point on Update of Staff's Proposed Budget/Capital Improvement Program,
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CITIZENS BUDGET REVIEW ADVISORY COMMITTEE
MINUTES OF REGULAR MEETING
JULY 19, 2021
Chairman Napier called the Citizens Budget Review Advisory Committee meeting
to order at 6:00 p.m.
II. Pledoe of Alleaiance was recited by all.
III. Roll Call
Present:
Mr. Napier
Mr. Wilson
Mr. Hoffman
Mr. McGinn (at -large) (Zoom —late arrival)
Mr. Hall
Mr. Sullivan
Mr. Herlihy
Ms. Cerda
Not Present:
Mr. Newhart -- Excused
Also Present:
Paul Carlisle, City Manager
Ken Killgore, Administrative Services Director/CFO
Cindy Watson, HR Manager
Joseph Perez, AV Technical Assistant
Janet Graham, Technical Writer (Zoom)
IV. Aporoval of Minutes: Meetina of July 12, 2021
Mr. Napier asked if all Committee members had reviewed the Minutes of July 12, 2021.
All indicated they had. Mr. Hoffman called for adding (Zoom) after Mr. McGinn's name in
the roll call. He also referred to Page 5 where there is typed (inaudible dialog). He
reviewed that paragraph and asked that that phrase be deleted. Mr. Napier called for a
motion with the changes as above. A motion approving the July 12, 2021 Minutes with
the changes noted above was made by Mr. Hoffman, seconded by Ms. Cerda, and
approved unanimously via voice vote.
V. Presentation of 3rd Quarter Budget Reoort and Apuroval by the Committee
Mr. Killgore reviewed the agenda items that will be presented on July 28th to City Council
(SEE ATTACHED). Those included are the Resolution No. R-21-12 and a schedule of
the budget changes that were approved during the quarter by City Council. There were
a couple of large ones during this quarter. One was to fund the Stormwater Master Plan,
and the other large one was the replacement of the Yacht Club seawall. He reviewed the
actual receipts compared to the budget for this period. Revenues for the General Fund
were up 78%, and expenses were only 70.3%. So the City is doing fairly well as far as
hitting its budget targets. He pointed out that a lot of the projects in the Capital Projects
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2
MINUTES OF JULY 19, 2021
Status Report are 100% completed. There are three major items —the construction of
hangar D, the Public Facilities Compound project, and the Stormwater Master Plan.
Those three are driving the percentage of completion down, but he expects major
expenditures coming for those projects before year end. He reviewed the other reports
in the packet, and he then called for questions/comments from the Committee members.
Mr. Hoffman:
• Asked about the lock that was purchased in the amount of $1,225.00. That is the
repair for the Hardee Park restroom lock. Mr. Carlisle explained that these are
special locks with timers, and the Police Department can unlock them if they need
to or in an emergency situation. There has been a lot of vandalism in several of
our park restrooms. There is a standard time when they are open and closed.
These locks are unlocked during the hours of the park operations, which is sunrise
to sunset.
• Regarding the Yacht Club seawall, he asked if there is any way the City can get
the American Rescue funds to apply to this project. Mr. Carlisle stated it has to be
from the General Fund. The City cannot use American Rescue funds to replenish
General Fund dollars. He is not certain that that project is eligible for those funds.
Mr. Killgore said he does not think repairs or replacements are eligible for any of
those dollars. Mr. Carlisle stated he will look into it.
• As to the Fund Summaries, Miscellaneous Revenue is only about 41 %, and he
asked if there is something missing. Mr. Killgore stated that is kind of a catch-all
item. Some of that includes items that he enters into the budget for the sale of
fixed assets. It would also include interest income, which has not been good
because of the way rates have changed. Mr. Carlisle stated that if the City got a
$35,000.00 no -match grant for the airport, that is included in miscellaneous
revenues that we did not anticipate, and we have gotten a few of those. Also, he
stated there is the low -boy trailer that was just sold for $25,000.00. That does not
show up here. There are a few other pieces of equipment that will be going on
sale which are not listed here.
• On the Capital Projects Status report, he asked if we can close the projects from
2018. Mr. Killgore stated all three of those will be closed.
• Inquired of Mr. Killgore how the City determines how much money will be kept in
the checking account vs. the cash that is allocated to the State Board or to the
Florida Trust. Mr. Killgore said this is a historical carryover because about 15 years
ago the State Board sort of tanked on the City, and they actually froze some of the
City's assets with them because of market conditions. Since that time, the City
has only increased that account balance by interest income on those funds. He
has shied away from putting more money with them. That is one of the reasons
why he opened up the account with Florida Trust.
Mr. Herlihy:
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3
MINUTES OF JULY 19, 2021
• Congratulated Mr. Killgore and his staff for the good job they do in balancing the
budget.
Ms. Cerda:
• Stated that the third quarter looks great, especially with all the changes that have
been necessary going through the year.
Mr. Napier:
• Reviewed the report and is very pleased with it.
Mr. Napier asked if anyone on the Committee had any issue with the approval of that
report. Mr. Killgore stated that before getting into the Power Point presentation, Mr.
Carlisle may want to address some of the questions that came up at the last meeting. Mr.
Napier said he thought that was appropriate.
Mr. Carlisle reviewed that one of the first questions that came up in the Minutes related
to the drainage at the golf course. He stated that one of the challenges the City had was
that the Airport Master Plan Drainage was never finalized and approved by St. John's
Water Management District, which he explained. When the City went to get it finalized,
there was a structure that was not installed per plan, and they made the City modify it.
When it was modified, it made hole 10 completely unplayable when it rains. There is
another hole that has a drainage swale that comes across it where it is planned to be
worked on as well. It makes the course almost unplayable during the rainy season. The
City has submitted a permit modification to St. John's Water Management District to
enlarge that retention area to try to accommodate the additional flow and to try to come
up with an adjustment to the weir structure by expanding the retention area and reducing
the hold time. The equivalent nutrient adjustment should be the same and will allow hole
10 to be playable again. The other one —he said it may be hole 15--is the piping where
that whole fairway between the green and the cart path and the canal becomes
unplayable because of the water. He understands there has been a lot of money spent
on the golf course, and this is a project that was suggested to be done in house. Mr.
Carlisle stated the stormwater crew has enough to do, and it needs to be budgeted to
have it done. That is why that $20,000.00 was put in that budget.
Mr. Carlisle said the question was also asked about the $100,000.00 for sidewalks —
whether those are new sidewalks or replacements. He explained that it is a combination
of both. Part of that money is for trip hazards, and part of that money is that the City was
able to negotiate with the Railroad to put in sidewalks at Barber Street, Main Street, and
Schumann Drive across the railroad tracks. There are not currently sidewalks there. The
Railroad is only going to take them to the right-of-way. The City has to take them beyond
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4
MINUTES OF JULY 19, 2021
that. So some of those funds are going to be utilized to make those short connections.
He projects that the funds will be sufficient to get new sidewalks on one side of the
crossings but not on both sides. The Railroad is putting in all the safety requirements for
those sidewalks at no cost to the City.
Another question was by Mr. Hall and was regarding the intersection at Barber Street and
Pelican Island Place being a hazard. Mr. Carlisle said it is not a hazard. It may be
perceived that way, but the accident data is almost zero.
Mr. Carlisle addressed a question regarding pothole repair. It will be continuing. Mr.
Napier stated the pothole repair comes out of gas tax money, so the millage rate has
nothing to do with whether we patch potholes or not. Mr. Carlisle agreed. Mr. Herlihy
asked if it is intended to do paving in this budget. Mr. Carlisle said the City is not doing
any overlays in this budget. The reasons are several: (1) Material costs have gone
through the roof, and he would like to push it out as costs start to come down. (2) Our
plan gets reevaluated this third fiscal year. Three years is a lifetime in pavement cycles.
He wants to make sure that the City's dollars are being spent in the best manner possible,
getting the most done. (3) Last year accelerated paving was done ($900,000.00 on
paving and reconstruction). (4) If the stormwater does not get done, all the work that
was done on the paving will be for naught, as it will create premature failure. The crews
are working six days a week trying to get that stormwater work done. So we need to get
the drainage caught up.
As to the stormwater positions, one of the things that is being highly stressed in the
Integrated Pest Management Plan is mechanical removal of aquatic pests. There is a lot
of overtime being spent on it to try to get it done. Costs prohibit us from using contractors.
That is why the two additional individuals are being budgeted in the Stormwater
Department.
Regarding the crime analyst, that position comprises supervising the records clerks. She
does the crime analyses, and she runs the front lobby windows. From time to time she
is responsible for training and travel. She is also the accreditation manager, which is very
important. He explained in depth the necessity for this position. Mr. Napier said he has
always considered new personnel a function of the management team in conjunction with
the department heads and City Council. He does not think that is the purview of this
Committee. Mr. Carlisle agreed.
Regarding the events coordinator position, Mr. Carlisle said may people do not realize
that events are growing substantially in the City. Part of this person's position is going to
be not only as events coordinator; they are going to be part of the airport maintenance.
The City has a part-time position out there. This person is going to fill that part as well,
and the airport is going to pay for that portion of the salary.
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 5
MINUTES OF JULY 19, 2021
There being no further comments or questions, Mr. Napier, he moved to the next item on
the agenda.
V. Consideration of Power Point on Committee's Recommendation to Citv Council on
the Proposed MillaGe for FY 2021-22 and ADnroval by the Committee
Mr. Herlihy stated that based on the last meeting and discussion, the Committee
collectively agreed we were going to do this. We have done it in the past, and then we
stopped doing it. His opinion is that the Council needs to hear what this Committee
considers and where we are coming from that finally ends up in what our recommendation
is on the millage. That is certainly something that is discussed among ourselves, probably
tonight, where we are going on the millage. We approved the TRIM millage which we
historically have done, and that was the top number as recommended by staff. Whether
we recommend rollback or not is something that is still before us and where we want to
go. So that question is up in the air as far as the Power Point is concerned. Mr. Carlisle
has made some comments that will prompt some changes in the Power Point, most
especially one item that has to do with personnel. As long as we are satisfied that Mr.
Carlisle has covered that, we can advise Council that we considered it, and Mr. Carlisle
explained it all to us. The biggest thing is where we want to go as far as the millage is
concerned. Regarding putting this before Council, they need to hear what our thoughts
are, what we have discussed, and what we are recommending that City Council does.
Mr. Napier stated that City Council members watch these budget meetings, and they
know everything we talk about before they even get the Minutes. The majority of them
watch this meeting intently. Mr. Herlihy stated there is another point that has been made
in the past that not only do we talk to the Council, but we will be telling the public.
Historically, an awful lot more people watch a City Council meeting than watch Budget
Committee meetings.
Mr. Herlihy made a motion to present the Power Point with modifications to the City
Council in its meeting of July 28th. What he explained is that this Committee would modify
that Power Point and circulate it again to the Committee before it becomes the final
product. Mr. Hoffman suggested the Power Point be put on the monitor so that it could
be gone through page by page. That was done, and there was discussion of each item
on the Power Point
There was'a lengthy discussion among the Committee members, City Manager, and Mr.
Killgore regarding the question of presenting the Power Point. Mr. Napier stated there is
a motion on the floor by Mr. Herlihy to approve the Power Point, and a second was
needed. Mr. Hoffman seconded the motion of Mr. Herlihy, following which there was
more discussion among the Committee members, Mr. Carlisle, and Mr. Killgore regarding
the items on the Power Point.
After much discussion, the Committee was asked to vote on whether the Power Point
CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 6
MINUTES OF JULY 19, 2021
should go forward to be presented to City Council. A voice vote was taken, and the result
was 4 ayes and 4 nays, resulting in a tie. The motion does not pass.
Mr. Napier asked if the millage rate still needs to be discussed. The TRIM was already
approved at the last meeting. He asked if the Committee has recommended the millage
rate to City Council for operating other than what goes on the TRIM. Mr. Killgore
suggested the Committee should wait until its August meeting to address that subject.
There was consensus among the members that the millage rate should be discussed at
the Committee's meeting in August.
VII. Public Comments
Vill. Next Meeting Date -- Monday, August 16, 2021 for Updates on Major Chanqes
to the Capital Improvement Proqram and Operating Budget
IX. Adiourn
There being no further business, Mr. Napier adjourned the meeting at 7:20 p.m.
M
A
Date:
2022 Budget and Capital Program
Update on Draft 2022 Budget
Budget Review Advisory Committee Meeting
Monday August 16, 2021
Prepared By:
Ken Killgore
Administrative Services Director/CFO
1
MW
2022 Budget and Capital Program
o Review of General Fund Budget.
o Enterprise and Other Funds.
.� Capital Improvement Program.
o Property Values and Millage,
o Closing Comments.
z
Draft FY2022 General Fund Budget
Versus Amended FY2021 Budget
$ 489,,997 Personnel Costs
101,755 Operating Expenditures
5,669 Capital Spending
(379,462) Transfers to Other Funds
$ 217,959 Increase in Budget —1.6%
Excluding Transfers — 4.6% Increase.
3
Personnel Up $489,997
3% for Wages/Benefits Contingency.
o Health Insurance Premiums Up 4,5%0
0 3 Additional Full -Time Employees.
MIS — Help Desk Tech./Admin. Asst.
Police — Crime Analyst
Leisure Services — Events Coord./MWIII
Operating Increased by $101,755 and
Interfund Transfers Down $379,462
o Operating Expenditures Up Due to
$72,000 Projected Election Costs.
o $379,462 Decrease in Transfers Out .
o General Fund Now Balanced:
Monthly State Revenue Sharing
Payment Up - $94,962 More Revenue.
One -Half Cent Sales Tax Also Better.
W.
Enterprise Funds:
Golf Course
$431235 or 2.9% More Revenue than 2021,
Same $301000 for Restaurant Lease.
o Same $106,065 for General Fund Services
and Same $1061135 for Airport Rent.
'2 Same $38,366 Principal and Interest on
$700,000 Building Fund Loan.
o Same $351000 toward General Fund Loans.
o Expecting Additional Year on Golf Carts.
o Forecasting Long-term Reduction in Deficit.
Enterprise Funds:
Airport
o Rentals Cover Operating Cost and Loan
Payments to DST Fund (Discretionary Sales Tax).
o DST Funds Used for Grant Matching:
Square Hangars in 2022; Runway 05/23 in 2024;
Shade Hangars, Golf Apron Utilities, Taxiway Golf
and Airport Road West in 2025.
o Airport Funds for Grant Matching:
Security Cameras, Runway 10-28 Markings,
Taxiway Alpha Aprons and Taxiway Golf Apron
Design in 2023; TaxiwayAlpha Aprons in 2025;
i
and Aircraft Wash Rack n 2026.
o DST Will be Paid Back for Grant Matching
Provided on Revenue Producing Facilities.
Enterprise Funds:
Building
o Decrease from Projected 2021 Revenues.
o Continuing Open Full-time Building Inspector
Slot and Contracting for Inspectors.
o Covering Personnel and Operational Cost.
Project to Modify Front Counter (Safety).
o Expecting $38368 Principal and Interest
Repayment on Golf Course Loan.
Special Revenue Funds:
Local Option Gas Tax
Collections 6.3% vs.4.7% Higher than Same
Months of the Prior Year.
$100,000 Allocated for Sidewalks.
$41870 Allocated for Traffic Analyzers.
oHolding Off on Road Improvements, Pending
Update to Road Assessment Study.
0$242,801 for Payment on Notes. $3581000
Outstanding 9/30/2021. Matures 12/01/22,
9
Special Revenue Funds:
Discretionary Sales Tax
" Collections Still Running 13.1% Higher than
Same Months of Prior Year.
Allocations to MIS and Police Vehicles.
; Funding Balance of GMP Contract on
Construction of Public Works Compound.
o Stormwater Slip Lining/Pipe Replacements.
Matching Funds for Canal Restoration Grant.
Construction of Two Square Hangars.
10
Special Revenue Funds:
Riverfront Community Redevelopment
-� Working Waterfront Deck, Landscaping and
Historical Signage,
Special Events and Sign Grants
- No New Sewer Connection Grant Funds.
Percentage of Community Director's Pay.
About Y2of Landscaping Contract.
o $225,000 To Harrison Street Park Plaza.
o New State Mandate Requires Separate Audit.
11
Special Revenue Funds:
Recreation Impact Fee Fund
a Fully Allocating the Available Collections.
Unspecified Improvements ($5K per Zone).
o Additional Park Signage.
o Barber Street Backstops.
Playground Improvements ($50,000 to Easy
Street and $501000 to Filbert Park).
o Approved by Parks and Recreation Board on
July 26, 2021.
12
Special Revenue Funds:
Stormwater Utility
o Adding Two Maintenance Worker I Positions.
o Fees Cover Operational Cost and Some
Equipment Replacements.
o $115,000 Roadway Swales/Culverts Work and
$100,000 to Match Grant for Work on Concha
Dam in 2022,
o Future Funds to Roadway Swales/Culverts;
Tulip and Bayfront Road Crossings; and to
Stabilizing Ocean Cove Slopes.
13
Special Revenue Funds:
Other Special Revenue Funds
Law Enforcement Forfeiture Fund:
Used Only for Unbudgeted Items.
Specific Items Need City Council Approval.
Current Balance is $32,818,
Parking In Lieu Of Fund:
Expecting $70,287 Year End 2021 Balance.
$9,600 on 807 Indian River Drive Adds
$1,140/Year for 10 Years. $61400 on 1623
US#1 Adds $11788/Year for 46 Months.
14
Other Funds:
Cemetery Trust Fund
o Y2of Sales Expendable on Expansions or
Cost Incidental to Adding Future Sites.
Funding Columbarium Niches in 2025,
Y2of Sales on Operations & Maintenance.
Allocation for Signage, Fencing and
Grounds Improvements.
$90K Transfer to General
$6051656 Expected 2021
Perpetual Maintenance.
Fund in 2022.
Balance for
15
Other Funds:
Stormwater Utility Debt Service
o Includes Required Bank Note Payments
Being Paid by Discretionary Sales Tax.
o $395,000 Outstanding as of 9/30/21.
o Final Maturity on 5/01/22,
Only Need to Fund $233,403 in FY2022,
16
Capital Improvement Program
o $54.2 Million Over 6 Years. $20.2 Million
Next Fiscal Year. $5.7 Million This Year.
o Largest Items for Next Fiscal Year:
$5,334,024 Public Works Compound.
$11,500,000 Canal Restoration.
$400,000 Concha Dam Wall.
$720,000 Construction of Square Hangars.
o $11,876,000 to be Funded by Grants.
o Going to P&Z Board on August 19th,
17
Property Values and Millage:
Certified Taxable Values
o Rolled -Back Millage of 3.0043 is Adequate to
Balance General Fund Budget.
Total Certified Taxable Property Values
Increased $9916871448 or 6.71% Above 2021.
Additions Were $3217161715 or 2.20%.
Reassessments Were $6619701733 or
4.51%.
Property Values and Millage:
Taxable Value Additions
Dollar Value of Tax Roll Additions:
2021 32,171604715 2016 251763,1700
2020 33,4685.1698
2015 25,492,245
2019 231351,814
2014 19.1914.8805
2018 15,998.0366
2013 9.0435.0090
2017 35,1951.0704
2012 7.0462,986
Tax Roll Additions Yield $95,342 of Added
Revenue for 2022 at the 3.0043 Millage.
19
Property Values and Millage:
ASSESSED VALUES
TAXABLE VALUES
TAXES
3.1514 Versus 3.0043
1.04% On Homestead:
3.1514 3.0043
$200,000 $202,080
$150,000 $152,080
$473 $457
10% On Others:
3.1514 3.0043
$200,000 $2201000
$200,000 $220,000
$630 $661
CHANGE (3.4% - 4.9%)
.....................................................................................................................................................................................................................................................................
($16)
$31
ASSESSED VALUES
$250,000
$252,600
$2501000
$275.1000
TAXABLE VALUES
$2001000
$202,600
$250,000
$275,000
TAXES
$630
$609
$788
$826
CHANGE (3.3 % - 4.8%)
...................................... ...............................................................................................................................................................................................................................
($21)
$38
-ASSESSED VALUES
$300,000
$303,120
$3001000
$330,000
TAXABLE VALUES
$2501000
$2531120
$300,000
$330,000
TAXES
$788
$760
$945
$991
CHANGE (3.6% - 4.9%)
($28)
20
Closing Comments
o City Council Scheduled to Review Budget
and CIP for All Funds August 25,, 20216
Staff Recommendations Will Be:
Approval of the 3.0043 Rolled -back Rate
as the Final Millage.
Approval of Budget and CIP at the
Currently Adjusted Amounts.
Questions or Concerns?
21