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SEBASTIAN CITY COUNCIL SPECIAL MEETING & 1ST BUDGET HEARING
Adoption of Proposed Millage and Tentative Budget for Fiscal Year 2021-2022
MINUTES
MONDAY, SEPTEMBER 13, 2021 — 6:00 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
1. Mayor Dodd called the Special Meeting to order at 6:00 p.m.
2. A moment of silence was held.
3. The Pledge of Allegiance was recited.
4. ROLL CALL
Mayor Ed Dodd
Vice Mayor Jim Hill
Council Member Fred Jones
Council Member Bob McPartlan (Zoom, Arriving in Person at 6:33 pm)
Council Member Chris Nunn
Staff Present:
City Manager Paul Carlisle
City Clerk Jeanette Williams
Administrative Services Director/CFO Ken Killgore
Asst. Admin. Services Director Cindy Watson
5. PUBLIC HEARING/ADOPTION OF TENTATIVE MILLAGE AND FY202112022 BUDGET
A. Citv Attornev Advises City Council on Procedure for Millape/Budget Hearina and
Reads Titles of Resolutions No. R-21-17 on Tentative Millage and R-21-18 on
Tentative Budget
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-21-17 and R-21-
18. (See Attorney's script attached)
B. City Manacer Announcement that the Rolled -Back Millaae of 3.0043 Mills is sufficient
to maintain current soendinc levels for General Fund and is recommended for Citv
Council aooroval as the Tentative Millaae which is reauired to be adopted in
accordance with State Statutes
The City Manager stated it is staffs recommendation to adopt the rolled -back millage
rate at 3.0043 mills which is sufficient to cover the current spending levels for the
general fund and staff also recommends that Council approve this as the tentative
millage rate as required by Florida Statute.
Special Meeting/le Budget Hearing
September 13, 2021
Page 2
C. Budget Overview of Tentative Millaae and Tenataitve Budget by CFO Ken Killoore
(PPT)
The CFO stated tonight's public hearing is at the rolled -back rate and staff is
recommending adoption of the resolution. This will be advertised on September 25 in
the newspaper as a "no tax increase." He displayed a PowerPoint presentation to go
over the planned general fund expenditures, the enterprise funds, the special revenue
funds, trust funds, and capital improvement projects. (See attached)
Mayor Dodd asked If there would be a slide to explain the $18,000 shortfall at the Golf
Course. The CFO said the Golf Course has sufficient cash to cover the shortfall.
He went over the $106,000 being paid by the Golf Course to the Airport that was
questioned at the last meeting. (Slide 11) He said $100,000 goes back to $250,000
increase approved in R-00-48 which was later deemed not possible; the rent was then
reduced to $135,000 in 2009, followed by a reduction of $115,000 in 2013 and $115,000
in 2014, to the current rent of $100,000 until September 2045.
He said in 2016, the storage building was added at $6,000 with annual CPI increases
bringing its current rent of $6,135.
The CFO discussed the interfund loans on slide 12, outlining the loans for the irrigation
system and improvements to the greens. He said there was a $500,000 loan in 2013 to
purchase the golf carts and at the end of the period, the City still owed the finance
company $103,000. That was added to the new loan creating the $103,000 which
created the monies to work on the cart path bringing the loan up to $500,000 from the
general fund.
Council Member Nunn noted the loans will take 35 years to pay off and the irrigation and
greens won't last 35 years. He asked If there was a plan in place or is there a time
frame of how long they will last. The City Manager said there is no exact science but the
procedures Intemational Goff Maintenance used to install and manage the greens, they
should last.
He said Hangars A and B add to the revenue stream which helps the City where it is
today.
He said the stormwater utility and road paving improvement bonds are scheduled to
mature in 2022.
In closing, the CFO said staff is recommending the 3.0043 millage rate. The only
unsettled point is the labor negotiations. The final budget hearing is set for September
29 at 5:01 p.m.
Mayor Dodd asked what is 1% of the police labor dollar amount. The CFO said it was
probably about $40,000 citywide.
Council Member McPartlan arrived at this point. (6:33 p.m.)
Special Meeting/1n Budget Hearing
September 13, 2021
Page 3
Council Member Nunn said the City has the second lowest tax rate in the last 10 years
and significantly for the first five years. (Slide 4) He thanked staff for their hard work in
keeping costs low.
D. Mavor Dodd opened the Public Hearing on Tentative Millaae and Tentative Budget at
6735 p.m.
Bill Simmons, Sebastian, said with regard to the addition of general fund personnel, how
is the leisure services position covered currently and why does the City need the
position. He also asked where the City stands on implementing the stormwater studies.
He noted with all the building that is going on, there will be an increase in the stormwater
runoff.
Sherrie Matthews thanked the CFO for answering her questions on the golf course. She
said in the early'80s they started how they reached the payment of $34,000, they used
the CPI and it would not increase more than 10%, it goes through and stops in 2015,
She asked even though the lease goes to 2045 and if there is a lull, will it stay at
$100,000 or will it increase annually with the CPI.
The City Manager said the annual cost of the new leisure services employee will be
$53,000; the employee would be taking on the events that have been handled by other
entities so the employee will be partially a supervisor of a crew and partially an event
coordinator.
The City Manager said the stormwater study is ongoing and will take a year and when
the 10 year CIP plan is developed, the City will adopt a funding mechanism.
He also explained the CIP was not attached to the $100,000 golf course lease payment
but it was attached to the storage building.
Vice Mayor Hill said staff has worked hard to provide a level of service to the customer.
He said the greens and irrigation will last as long as the City wants them to through
proper maintenance.
Vice Mayor Hill said the roads in 1998 where the original roads placed by the General
Development Corporation and the bonds provided the ability to pave the roads which
improved the quality of life.
E. Consider Resolution No. R-21-17 for Tentative Millaae for Calendar Year 2020
(Transmittal. R-21-17)
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA,
ADOPTING A TENTATIVE MILLAGE OF 3.0043 MILLS FOR THE CALENDAR YEAR 2021;
PROVIDING FOR CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING
FOR AN EFFECTIVE DATE.
MOTION by Council Member McPartlan and SECOND by Council Member Nunn to
approve Resolution No. R-21-17 adopting a tentative millage of 3.0043 for the calendar
year 2021,
Special Meeting/Is' Budget Hearing
September 13, 2021
Page 4
Roll call: Vice Mayor Hill - aye
Council Member Jones - aye
Council Member McPartlan - aye
Council Member Nunn - aye
Mayor Dodd -aye
Motion carried. 5-0
F. Consider Resolution No. R-21-18 for Fiscal Year 2021/2022 Tentative Budcet
(Transmittal. R-21-18)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER
COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR
BEGINNING ON OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; 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 FINDS, 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.
MOTION by Council Member Jones and SECOND by Council Member McPartlan to
approve Resolution No. R-21-18 adopting the Fiscal Year 2021/2022 Tentative Budget.
Roll call: Vice Mayor Hill
- aye
Council Member Jones
- aye
Council Member McPartlan
- aye
Council Member Nunn
- aye
Mayor Dodd
- aye
Motion carried. 5-0
G. Mayor Dodd announced that the Final Public Hearing on Millage and Budget would
be held at a Special Meeting at 5:01 p.m. on Wednesday, September 29, 2021.
Council Member McPartlan thanked Barbara for the ability to Zoom.
6. Being no further business, Mayor Dodd adjourned the Special City Council meeting at
6:51 P.M.
Approved
�atttthe
�October 13, 2021 Regular City Council meeting.
Mayor EdDodd - - -
ATTEST.' — - —
ugz&Wcaana
Janette Williams, City Clerk
2022 Budget and Capital Program
First Public Hearing for Adoption of
Tentative Millage and Budget
Monday, September 13, 2021
Prepared By:
Ken Killgore
Administrative Services Director/CFO
1
2022 Budget and Capital Program
o General Fund Budget is Balanced
With Rolled -back Rate of 3.0043,
Following Tonight's Public Hearing,
Staff Recommends Adoption of
Resolution No. R-21-17 Approving
3.0043 as the Tentative Millage.
o Will Advertise as No Tax Increase on
Saturday, September 25, 20210
2
L Property Values and Millage:
3.1514 Versus 3.0043
ASSESSED VALUES
TAXABLE VALUES
TAXES
OV CHANGE (3.4%) - 4.9%
...................................................................................
ASSESSED VALUES
TAXABLE VALUES
TAXES
CHANGE (3.3%) - 4.8%
...................................................................................
...ASSESSED VALUES
TAXABLE VALUES
TAXES
CHANGE (3.6%) - 4.9%
1. 04% On Homestead:
3.1514 3.0043
$200,000 $202,080
$150,000 $152,080
$473 $457
($16)
....................................................................
$250,000 $252,600
$200,000 $202,600
$630 $609
($21)
....................................................................
$300,000 $303,120
$250,000 $253,120
$788 $760
($28)
10% On Others:
3.1514 3.0043
$200,000 $220,000
$200,000 $220,000
$630 $661
$31
.............................................................................................
$250,000 $275,000
$250,000 $275,000
$788 $826
$38
.............................................................................................
$300,000 $330,000
$300,000 $330,000
$945 $991
$46
3
Taxation History
Rolled
-Back or
Under 5
of 10 Years
Rolled -Back
Actual
2012-131
3.5646
3.7166
Above Rolled -Back
2013-14
3.7398
3.7166
Under Rolled -Back
2014-152
3.5446
3.8556
Above Rolled -Back
2015-163
3.6290
3.8556
Same as Prior Year
2016-174
3.6700
3.8000
Above Rolled -Back
2017-18
3.4939
3.4000
Under Rolled -Back
2018-19
3.1514
3.1514
Same as Rolled -Back
2019-20
2.9399
2.9399
Same as Rolled -Back
2020-215
2.8090
3.1514
Same as 2018-19
1 Actual was Lower than Rolled -Back the Previous 5 Years.
z and
General
Fund Supplemented
Roads &Storm Water.
4 Early Retirement Program. 5 Drop in
State Revenue
4
Tentative 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
Covers Wage Contingency, Health
Insurance, 3 Positions and Election Costs.
W7
Enterprise Funds:
o Golf Course: Revenue $18,709 Short
Due to $25,000 of Work on Parking Lot
and Ditch #15,
o Airport: Using DST and Airport Funds to
Match FAA and FDOT Grants.
o Building: Contracting for Inspections and
Modifying the Front Counter.,
Special Revenue Funds
o Local Option Gas Tax: $100,000 Sidewalks,
Holding Off on Road Improvements Pending
Road Assessment Study.
o Discretionary Sales Tax: MIS Purchases,
Police Vehicles, Balance of Public Works
Compound, Stormwater Slip Lining/Pipe
Replacements, Matching Funds for Canal
Restoration, Construction of Square Hangars.
o Riverfront CRA Fund: Working Waterfront,
Harrison Street Park Plaza, Mandated Audit.
Special Revenue Funds
o Recreation Impact FeE
Barber Street Backstops,
Filbert Park Playgrounds.
Fund: Park Signs,
Easy Street and
o Stormwater Utility Fund: Two Positions,
Roadway Swales/Culverts, Match on Concha
Dam Work, Future Funds to Tulip & Bayfront
Road Crossings; and Ocean Cove Slopes.
o Law Enforcement Forfeiture Fund:
Unbudgeted Items.
Special Revenue/Trust Funds
o Parking In Lieu Of Fund: $70,287 Balance.
o Cemetery Trust Fund: Signage, Fencing and
Grounds Work , Columbarium Niches in 2025.
o Stormwater Utility Debt Service: Bank
Note Final Maturity on 5/01/22.
wt
Capital Improvement Program
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 P & Z Board on August 19th,
10
AIRPORT LEASES TO GOLF COURSE
$100o000 FOR GOLF COURSE AREA:
o Exhibit "A" of Resolution R-15-30 Adopted 9/23/2015
Established this Rate and Extended Lease to 9/30/45.
R-00-48 Increase Rent to $250,000 by 2010. Reduced in
2009 to $135,000; 2013 to $115,000; and 2014 to $100,000.
o Available on Laserfiche Under Below File Names:
Contracts/Agreements —Property Leases —Airport —
Sebastian Municipal Golf Course — R-15-30 Amendment.
$6o135 FOR GOLF COURSE STORAGE BUILDING:
o Adopted
9/28/2016
at
$6,000
Plus
Annual
CPI
Increases.
o Available
on Laserfiche
Under
Below
File
Names:
Contracts/Agreements —Property Leases —Airport —
Sebastian Municipal Golf Course — 2016 Lease.
11
INTERFUND LOANS
DUE BUILDING FUND FROM GOLF COURSE:
$700,000 Irrigation System in FY2018
V, 20 Year Amortization to FY2038.
1% Below Treasury Bond, Adjusted to .9% for 2022.
Now $36,,085 per Year, $584,909 Balance.
o $559,684 Other Repairs (Greens/Clubhouse)
No Payments Scheduled, Pay it After $700,,000 Loan.
DUE GENERAL FUND FROM GOLF COURSE:
$500,000 for Cash Flow Loan (Carts +Cart Paths).
Paid $35,000 in 2021, To Pay $35,000 in Future.
12
INTERFUND LOANS
DUE DISCRETIONARY SALES TAX FROM AIRPORT:
$285,000 Hangar A Construction Loan.
30 Year Amortization from 9/24/08 to FY2038.
4%Interest, $260,742 Balance.
$267,511 Hangar B Construction Loan.
30 Year Amortization from 8/11/10 to FY2041.
4%Interest, $257,765 Balance.
13
DEBT DUE TO OUTSIDE PARTIES
STORMWATER UTILITY BANK NOTES:
�. Initially $5,630,000, Bonds Refinanced in 2014.
o $395,000 Remaining, Matures May 1, 2022.
Being Paid by Discretionary Sales Tax Fund.
PAVING IMPROVEMENTS BANK NOTES:
o Initially $2,296,000, Bonds Refinanced in 2012.
o $358,000 Remaining, Matures December 1,2022.
Being Paid by Local Option Gas Tax Fund.
14
DEBT DUE TO OUTSIDE PARTIES
GOLF CARTS:
$259,152 Starting FY2017-18.
60 Month Lease/Purchase, $50,801 Next Year.
o Final Payments in FY2021-22.
Paid by Golf Course.
VxRail —POLICE DEPT. HARDWARE/SOFTWARE:
$215,975 Starting FY2019-20.
0 5 Year Lease/Purchase, $43,195 Each Year.
Final Payment in FY2023-24.
�. Paid by Discretionary Sales Taxes.
15
Closing Comments
o Staff Recommends Approval of the
3.0043 Rolled -back Rate as the
Tentative Millage.
o Only Unsettled Issue is Labor
Negotiations (Have 3% But Pending
Results of Negotiations).
o Final Public Hearing is Also a Special
Meeting on Wednesday September 29th,
16
CITY ATTORNEY'S SCRIPT FOR THE SEPTEMBER 13, 2021 MILLAGE AND
BUDGET HEARINGS
Thank you Mr. Mayor, Vice Mayor & Council Members:
This is the first of two (2) Millage and Budget Hearings. Tonight you are dealing with tentative
millage and tentative budget. During the next Budget Hearing tentatively set for September 29,
2021, subject to Council approval, you will be considering the final millage rate and final budget.
This Hearing is JAW F.S. 200.065 — Method of Firing Millage. In Subsection (2) (c) which
reads in part:
"Prior to the conclusion of the hearing, the governing body ofthe taxing authority shall
amend the tentative budget as it sees fit, adopt the amended tentative budget, re -compute
its proposed millage rate and publicly announce the percent, ifany, by which the re-
computed proposed millage rate exceeds the rolled back rate computed pursuant to
Subsection(]). That percent shall be characterized as the percentage increase in
property taxes tentatively adopted by the governing body."
Further, Subsection (2) (d) reads in part:
"Within 15 days after the meeting adopting the tentative budget, the taxing authority shall
advertise... its intent to finally adopt a millage rate and budget" along with the final
hearing date .... In no event may the millage rate adopted pursuant to this paragraph
exceed the millage rate tentatively adapted pursuant to paragraph (c) ".
Further, Subsection (2) (e) (1) indicates that in these Hearings:
"The first substantive issue discussed shall be the percentage increase in millage over the
rolled -back rate necessary to fund the budget, ifany, and the specific purposes for which
ad valorem tax revenues are being increased. During such discussion, the governing
body shall hear comments regarding the proposed increase and explain the reasons for
the proposed increase over the rolled -back rate. The general public shall be allowed to
speak and to ask questions prior to adoption of any measures by the governing body. The
governing body shall adopt its tentative or final millage rate prior to adopting its
tentative orfinal budget."
So while I am reading them together, the law requires that you must consider the millage rate
first before the budget.
Again, as a reminder that the same rules for public input IAW Resolution 21-34 applies to this
special meeting. Thus, public input is limited to 5 minutes [Section 8 (B) (1)]. Also, Section 8
(B) (3) states that personal, pertinent and slanderous remarks, political campaigning and
applauding are not permitted and may result in sanctions imposed by the Chair including
expulsion from the meeting."
So tonight you will be considering Resolutions No R-21-17 & R-21-18
Read titles of two resolutions:
Read R-21-17 — Tentative Millage
RESOLUTION NO. R-21-17
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER
COUNTY, FLORIDA, ADOPTING A TENTATIVE MILLAGE OF 3.0043
MILLS FOR THE CALENDAR YEAR 2021; PROVIDING FOR
CONFLICT; PROVIDING FOR SCRIVENER'S ERRORS; AND
PROVIDING FOR AN EFFECTIVE DATE.
Read R-21-18 — Tentative Budget
RESOLUTION NO. R-21-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE
TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING ON
OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; 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.
Nothing further Mr. Mayor!
Required Documents
• Copy of Current Signed Lease
Agreement
• Late Rent/ Delinquency Notice
• Copy of Drivers License, Copy
of Birth Certificate, or other
Government Issued ID
• Unemployment Documents
• "CDC Non -Evictions Form
• IRS W9 Form
• Application Waiver, Certifications,
Authorizations, and Consent for Data
Collection Form
Florida Rural Legal Services
www.fris.org
Indian River County
www.ircgov.com
Apply for Rental Assistance
https://bit.ly/3AM8PEf
Apply for Free Legal Services
https://bit.ly/2 VgNjXR
Contact the IRC Heart A
at: 877-HEART95
Mediation
Program
Florida Rural Legal
Services, Inc and Indian
River County Heart Grant
Partnership �-
Aj Is your tenant behind in rent due
to the loss of income resulting from
COVID-19?
• Have you fallen behind in rental
payments due to COVID-19?
4
i'inrr A,S IS
�1
\.1nn�% ua.aw•ra
\��RirafuuY,
LJ /
How am I Eligible?
1. Tenant is past due on rent for a payment due on or
after March 1, 2020. \
2. 'Rnant needs assistance with limited future rents.
(See vines)
3. Household suffered recasts reduction due to
COVID-19.
4. Household meets gross annual income not to exceed
140% Area Median Income.
Qualifications to Apply?
\ 1.
Resident of Indian River County including the
City of Fellsmere. Town of Indian River Shores,
/
Town of Orchid, City of Sebastian, City of Vero
/
Beach.
2.
Experienced economic hardship due to
COVID-19 via:
. Temporary furlough
\
. Elimination of position
. Reduction of work hours
. Self-employment with temporary closure/ loss
of business
. Being laid of
. Place of employment has dosed
. Others considered on a case by came basis
How Does It Work?
1. Tenants apply to the County for rental assistance.
2. Upon qualification, tenants and landlords are
encouraged to attend mediation session to discuss
alternative resolution to eviction.
3. Following a successful mediation, landlord will
receive past -due mnt(s) and is guaranteed future
rents in a total amount not exceeding $10,500.
(Amount must be justified). Tenant will receive a
new 6 month lease to remain at subject Property.
4. Filed Eviction matters will be closed and tenant
remains in home
S. Mediations will be held at the Indian River
County Courthouse beginning at 8:30 am on the
second and fourth Friday of the month.