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HomeMy WebLinkAbout02-14-2022 BAC MinutesCITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING FEBRUARY 14, 2022 Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:20 p.m. Pledae of Alleaiance was recited by all. III. Roll Call Present: Ms. Cerda Mr. Newhart Mr. Hoffman Mr. Napier Excused Mr. Wilson Mr. Sullivan (a) Mr. Hall Ms. Reed (a) Mr. McGinn Also Present: Ken Killgore, Administrative Services Director/CFO Cindy Watson, Human Resources Director Joseph Perez, AV Technical Assistant Janet Graham, Technical Writer (Zoom) IV. Introduction of Members (Name and ADDointee): • Larry Napier • Bruce Hoffman • Harry Hall • Terry McGinn • Rex Wilson • Amber Cerda • Dave Newhart • James Sullivan • Grace Reed Council Member Dodd Mayor Hill Vice -Mayor Jones Council Member McPartlan Council Member Nunn At -Large Member by Vote of Council At -Large Member by Vote of Council Alternate Member by Vote of Council Alternate Member by Vote of Council Chairperson Napier asked the new members to introduce themselves, those being Ms. Reed and Mr. McGinn. Both introduced themselves and gave a little background. Mr. Napier announced that alternate member Ms. Reed will be voting tonight in place of Mr. Wilson. V. Selection of Chairoerson CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MINUTES OF FEBRUARY 14, 2022,II Mr. Napier called for nominations. Mr. Hoffm nominated Mr. Napier for Chairperson, which was seconded by Mr. McGinn. Mr. nominated Mr. Hoffman, to which there was no second. There being no further nominations, Mr. Napier called for a vote. Per unanimous voice vote, Mr. Napier will serve as Chairperson for the new year VI. Selection of Vice -Chairperson Mr. Napier called for nominations. Mr. Hall nominated Ms. Cerda for Vice -Chairperson, which was seconded by Ms. Reed. There being no further nominations for Vice - Chairperson, Mr. Napier called for a vote. Per unanimous voice vote, Ms. Cerda will serve as Vice -Chairperson for the new year VII. ADOroval of Minutes: Meeting of August 16. 2021 Mr. Napier asked if all Committee members had reviewed the Minutes of August 16, 2021. All indicated they had. Mr. Killgore stated he has a correction. On the first page under the section "Not Present," Mr. Wilson as listed as unexcused. That was an error. Mr. Wilson did advise Mr. Killgore prior to the meeting that he would not be present. That should be listed as an excused absence. Mr. Napier called for a motion with the change as above. A motion approving the August 16, 2021 Minutes with the change noted above was made by Ms. Cerda, seconded by Mr. Mr. Newhart, and approved unanimously via voice vote. Mr. Hoffman asked that Mr. Killgore provide the Committee members with his opinion as to Mr. Napier's question that he asked at the August meeting on using impact fees for capital improvements at the golf course. Mr. Killgore stated that his personal opinion is that the golf course is a recreation facility along the same lines as Barber Street, Schumann Park, etc. Mr. Hoffman clarified his question by asking if those impact fees can be used for maintenance projects or only capital improvements. Mr. Killgore stated they can only be used for improvements that add to the capacity of the facility. Vill. Review of Fourth Quarterly Reoort Mr. Killgore reviewed the report (SEE ATTACHED) for the fourth quarter of the fiscal year ending September 30, 2021. He highlighted that revenues came in at 1.5% higher than budgeted, and expenditures were only 92.5%. As a result, there was an increase in the fund balance for last year. He reviewed the stormwater, golf course, airport, and building funds. He drew attention to the Stormwater Summary where there is listed "Funding Carryovers." He stated it was an error listing Canal Improvements, as that is not funded from stormwater fees. This would mean that the Net Available Funds would be approximately $934,000.00 versus the projection of $719,000.00. What were projected for the airport and the building funds were both higher than what had been budgeted. The golf course is in a better situation than it was at the start of last year. Also reviewed were CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MINUTES OF FEBRUARY 14, 2022 the capital projects as of September 30, 2021. He explained that there are three accounts where the City funds are kept, and he reviewed the balances in each. Seacoast National holds the majority of the funds, with lesser amounts with the State Board of Administration and the Florida Trust. Mr. Killgore asked for questions or comments from the Committee members. Mr. Ms6 ff— ,w • Drew attention to the Police Department report. The heading reads the period covered as 2020, and he suggested it should be 2021. Mr. Killgore agreed that it should have been 2021. That is just a typo. Mr. McGinn said it is also stated the same way in the first quarter of 2022. Mr. Killgore will make those corrections. Mr. Hoffman — • Referred to the General Summary on the first page. Regarding the intergovernmental funds of approximately $800,000.00, he asked if that is all COVID relief money. Mr. Killgore explained that when the budget for intergovernmental funds was established last year, the City had already been affected by reductions in state revenue sharing and sales tax. It was not nearly as bad as he had anticipated. • Asked for clarification regarding the entry of non -departmental expenditures being so far under budget. Mr. Killgore said he would review the details of this entry and send an email to everyone explaining that. • Asked if the golf course will ever repay the General Fund. The answer was yes, but there is no definite timeline. Mr. Killgore stated the golf course is steadily paying down the amount that was borrowed from the Building Fund. IX. Review of First Quarterly Reoort Mr. Killgore reviewed the report (SEE ATTACHED) and plans to present it to City Council at Council's meeting of February 23' . He pointed out that there have been some adjustments made to the budget mostly in order to carry forward funds from the unfinished projects from last year, and he explained each one. There was discussion regarding contribution to the Police Pension Fund. Mr. Killgore updated the reimbursement for Hurricane Matthew. The amount of $99,972.00 has been approved out of the $143,000.00, and that was collected at the beginning of this fiscal year. The balance of $43,000.00 has progressed to the last step of actually processing the payment to the City. There is $80,000.00 that was paid to the City by mistake on Hurricane Matthew which he is holding in the General Fund as a liability account. He anticipates that sometime in the future it will need to be returned. X. Review Budcet Calendar and Discuss Next Meetina Date — Mav 16. 2022 CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MINUTES OF FEBRUARY 14, 2022 Mr. Napier asked for questions/comments on the budget calendar. It was the consensus that the proposed budget calendar was acceptable. XI. General Discussion by Members Mr. McGinn — • Asked what the CRA stands for. Mr. Kiligore stated it is the Community Redevelopment Agency which basically covers the area of the City between the river and US1 except for one small area along State Route 512 (Sebastian Boulevard). • Asked if the project regarding Fisherman's Landing is on schedule. Mr. Killgore stated that that project will be done with all budgeted funds, so it is on schedule. An engineering report is still needed on the Crab E Bill's building. Mr. Hall — • Inquired regarding the balance of funds. Mr. Killgore clarified what is included, and he feels comfortable in taking $35,000.00 off that balance and making a payment on the money that the golf course owes. He also stated that the City is projected to stay above the $5,000,000.00 In reserves. • Inquired as to how much the difference was between the 4% and the 3% increase in wages. Mr. Killgore said the extra 1 % was approximately $78,000.00. Mr. Hoffman — • Asked regarding the American Rescue funds, if that will impact the current year's budget or next year's budget. Mr. Killgore reviewed that there have been a couple workshops for the public on that. He has not yet gone back to City Council with some of the suggestions that came out at those meetings. The only possibility that it will impact the City is that some of the projects that have already been budgeted, such as stormwater, the DST funds could be shifted out of the American Rescue funds. He does not see it as being anything that would negatively affect the General Fund. It may actually help as far as the capital program. • Stated that he thought Mr. Killgore had stated last year that the City was going with the new constitutional amendment to increase the minimum wage to $15.00 an hour. He asked if all the employees of the City were taken up to $15.00. Mr. Killgore stated that is a gradual plan, and it did not have to be done all at once. Ms. Watson stated that currently it is $13.46, and the City has a few years to get to the $15.00 mark. Mr. Killgore recalls that he had said it would be a gradual increase to get to $15.00. Ms. Watson stated the City is waiting to receive the compensation study from the consultants. Whatever that study shows, the City will then implement the plan. Mr. Hoffman said he had apparently misunderstood. • Asked regarding the contract discussions. He recalls that they were not settled as of this Committee's last meeting. Mr. Killgore stated that this is the last year of the three-year contract. So the City will need to negotiate in this fiscal year for the CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 5 MINUTES OF FEBRUARY 14, 2022 contract beginning next year. Mr. Killgore stated that will be for both the police and the other City employees. Asked how the audit is going. Mr. Killgore stated he just corresponded with the auditors today, and they are promising that within a week or two the audit will be complete. Mr. Hoffman asked if that includes the CRA audit. Mr. Killgore said there is a separate audit for the CRA, and there will continue to be a separate audit according to the statute. Ms. Cerda — • Asked Mr. Killgore regarding his review of the fourth quarterly report. He stated he had something to present regarding the Florida Trust. Mr. Killgore said on page 1-13 of the agenda packet of the December report regarding investments, he noted that Florida Trust for October -November -December the Florida Trust account actually lost an annualized rate of 2.38%. This is the smallest piece of the City's investments. Florida Trust invests in government securities that are longer term. He stated he is concerned about that and will be tracking it. Over the last three years, an annualized return from the original $500,000.00 to what it is now would have been a positive 2.19%. XII. Public Comments -- None XIII. Adjourn There being no further business, Mr. Napier adjourned the meeting at 7:10 p.m. By: r7b��u.�y. Lt). 7/l �_n.�.. Date: .,/2I)d— 19 '7 �c �faJ� W�`I-�l °W C'�2CTlCniS