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HomeMy WebLinkAbout07-11-2022 BAC AgendaLift LT HOME OF PELICAN ISLAND SEBASTIAN BUDGET REVIEW ADVISORY COMMITTEE AGENDA 6:00 P.M. MONDAY — JULY 11, 2022 CITY HALL 1225 MAIN STREET a. Call to Order b. Pledge of Allegiance c. Roll Call d. Approval of Minutes: Meeting of May 16, 2022 e. Presentation of Draft Budget by Ken Killgore, Administrative Services Director/CFO 1. Power Point Presentation 2. Questions or Comments by Members 3. Discuss Setting Proposed Millage for TRIM Purposes f. Public Comments g. Next Meeting Date — Monday, July 18, 2022 to Review 3rd Quarter Budget Report h. Adjourn Agenda Attachments: • Minutes for Meeting of May 16, 2022 • Power Point Presentation of Draft Budget • Draft Budget and Capital Improvement Plan — Available at the following link: httiDs://www.citvofsebastian.ora/archive.asr)x?amid=&tviDe=&adid=135 ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENSE UPON WHICH THE APPEAL IS TO BE HEARS. (F. S.286.0105) IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. ZOOM INFORMATION Please click the link below to join the webinar: https://us02web.zoom.us/j/87591909095 Or One tap mobile: US:+13126266799„87591909095# or+19294362866„87591909095# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 312 626 6799 or +1 929 436 2866 or +1 301 715 8592 or +1 346 248 7799 or +1 669 900 6833 or +1 253 215 8782 Webinar ID: 875 9190 9095 International numbers available: https://us02web.zoom.us/u/kdNIoLJowl CITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING MAY 16, 2022 I. Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. Pledcie of Allegiance was recited by all. III. Roll Call Present Mr. McGinn (Zoom) Ms. Reed Mr. Hall Mr. Sullivan Absent Mr. Wilson -- Excused Ms. Cerda -- Excused Mr. Napier Mr. Mr. Hoffman Mr. Newhart Also Present Ken Killgore, Administrative Services Director/CFO Cynthia Watson, Human Resources Manager Joseph Perez, AV Technical Assistant Janet Graham, Technical Writer Due to the absences of Mr. Wilson and Ms. Cerda, Mr. Napier stated that both Ms. Reed and Mr. Sullivan, the alternate members, will vote due to the absences of the excused regular members. IV. A-,);roval of Minutes A. Meeting of February 14, 2022 Mr. Napier asked if all Committee members had reviewed the Minutes of February 14, 2022. All indicated they had. Mr. Napier stated that on Page 2, second line, where it reads "Mr. Hill nominated Mr. Hoffman," it should read "Mr. Hall nominated Mr. Hoffman." Mr. Killgore also referred to a typo on Page 3, second paragraph, where it reads "Mr. McGill" it should read "Mr. McGinn." Those two being the only corrections, Mr. Napier called for a motion. A motion to approve the Minutes of the February 14, 2022 meeting, as corrected above, was made by Mr. Hoffman, seconded by Mr. Newhart, and approved unanimously via voice vote. V. Review of Second Quarter Financial Report -- FY 2022 CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MINUTES OF MAY 16, 2022 Mr. Killgore stated that, as usual, his staff provided the agenda items that are provided to City Council regarding any second quarter amendments. It includes those amendments. He has also provided a corrected Page 3 of the budget report, for which he has provided a copy of this page. He pointed out that in the highlighted lines there was a mistake on the Budget Before Change in the R&R account. Mr. Hoffman pointed this out to Mr. Killgore. That line should read in the Budget Before Change the amount of ($4,820.00) as the beginning balance. He added that the first change that was made this quarter was to use $60,338.00 more to have a Budget After Change of $65,158.00. As to the other highlighted items further down on the page in the line which read Appropriated from R&R Account it has been adjusted on this new Page 3. Mr. Killgore reviewed the Quarterly Financial Report page -by -page (SEE ATTACHED). He pointed out that the revenues after six months of the year as collected is 61.1%. That is mostly because of the ad valorem taxes that come in earlier during the year. As to expenses, they are 53.9% for the same period. That is mostly because the City pays the contribution to the Police Pension Fund in one lump sum before December, and also the CRA contributions are made by the General Fund in the first quarter of the year. He mentioned that one reason the revenues are higher than projected in addition to the taxes being substantially collected is that the City has gotten all of its FEMA money from Hurricane Matthew. About a week after he received that payment, he got a notice from FEMA now that the City can collect another $1,900.00 if we can document some administrative time that was used on Hurricane Dorian. He and his staff will be communicating with FEMA to get the $1,900.00. Mr. Killgore reviewed that he has added a section to the report for the American Rescue Plan Act Fund. He stated that the City did receive what is described as the "first tranche" of the money, half of the amount that the City was entitled to. That was actually received a year ago. He got a notice last week to put in a request to collect the second half of those funds. The next quarter will therefore be showing another $1.6 million of the American Rescue Plan Act funds. There were public hearings and meetings with City Council to determine how those funds would be allocated. He has listed all those items on this quarterly report. He reviewed the remaining funds and how he arrived at those figures (SEE ATTACHED). Mr. Killgore stated that it will not be long until the City is essentially debt free as far as long-term debt. There are still a couple of lease/purchase items that appear within the annual budget appropriations. Finally, he reviewed the comments from the various departments as to what their activities and accomplishments were in the last quarter. He then called for questions/comments from the Committee members. Mr. Hall -- Asked for a description of the benefits of hiring an airport manager vs. the facilities directors' portion pay. Mr. Killgore stated that it was decided to take some of the CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MINUTES OF MAY 16, 2022 activities that the facilities director's position was handling before his retiring and disseminate them among other staff members. He further described the additional payouts that the facilities director was entitled to at his retirement. Those payouts will affect this year's budget. He added that the prior facilities director's duties were then disseminated among other staff members, and now the airport manager focuses only on the airport. Ms. Reed -- Reviewed that at the last meeting Mr. Hoffman had asked for some clarity regarding the non -departmental funds. She also reviewed that Mr. Killgore was to send out to the Committee members the details of that entry because they were so far under budget. She did note that through quarter 4 they had spent 75% of their budget. At the end of quarter 2 of this year they are already a little over 69% of their budget. She asked for a clarification of non -departmental line items. Mr. Killgore apologized for not having sent that information out. He explained that those line items might be city-wide items and not anything specific to one department such as consulting fees, workers' compensation insurance, etc. He will be sure to send that information out to all the Committee members. Mr. Hoffman -- • Asked if that would be where the compensation study is, as a non -departmental entry. He also asked if the compensation study has been finalized. Mr. Killgore stated it has been presented, but the City has not actually taken any action on it, as it is considered to be a negotiating item when the next union contract is negotiated. He added that the expense for that study was taken as a non - departmental item. That would also explain why those expenses are up. • Regarding hurricanes, does the City still have the $80,000.00. Mr. Killgore stated it is still in the liability account. When the state asks for it, he will turn it over to them. • Regarding the golf course, he inquired whether the City is going to do the drainage ditch work. Mr. Killgore stated he has not had any direction to cancel the project. • Stated that it is his understanding that the City will not know for another three or four months whether there will be a general fund payment made. Mr. Killgore said that is correct. • Regarding the capital projects entries, he wonders why the City cannot finish off some of these projects such as park signage from 2019. Mr. Killgore said for the last several years funds for the signage have been allocated. He explained the $30,000.00 item is for additional signs that were not in the original project. Mr. Napier interjected that the capital budget has a five-year life. There was discussion regarding those projects and how long they are to be maintained in that account. • Regarding the stormwater utility final payment, he asked if that was paid just this month. Mr. Killgore stated yes, and it qualified for DST. Regarding the paving projects, those funds come out of the local option gas tax. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MINUTES OF MAY 16, 2022 Mr. McGinn -- Regarding the increase in golf course revenues, he was told that one of the reasons for the increase in golf course usage was that Grand Harbor closed some of their golf courses, which overloaded Sandridge, and that drove the Sandridge people to Sebastian. During the last City Council meeting, there was discussion about the paving because they are going to pave part of US1 near Main Street. He asked if that will be a new capital budget item. Ms. Reed interjected that at that Council meeting it was discussed regarding digging up the decorative crosswalks and replacing them with regular painting in the crosswalks at an estimate of $300,000.00 that is not in the budget, but it is not until 2023. So there do not have to be any decisions made on that at this time. She further explained this. Mr. McGinn asked if that will be added to the capital budget in 2023. Mr. Killgore stated that it is his impression that that was a Council direction, to provide it in 2022-2023. So that would be in this year's capital program shown as a project for the following year. There was extended discussion regarding this item. Mr. Napier -- Commented on the increase in revenue at the golf course. He noticed a lot of DST money being used in the airport fund. He asked if the airport has to pay back that DST money. Mr. Killgore stated there has been direction by the City Manager that when it is an airport project — to match a grant for an airport project that is revenue producing, like a hangar facility -- then the City will start paying back those advances for those revenue -producing items. Mr. Napier opined that those funds should be left under the capital improvements at the golf course rather than using recreation fee money. He stated that he feels the golf course and the Barber Street complex are the two main recreation amenities in the City. Mr. Hoffman agreed. VI. Announce Next Meetinra Date: Monday. July 11, 2022 Mr. Killgore does not anticipate a change to this schedule. All agreed to this date. VII. General Discussion by Members • Mr. Hoffman asked regarding the American Rescue Plan Act where there is an entry for "Contingency." Mr. Killgore stated that nothing in the regulations says the City has to budget every dollar. They do say we have to spend it before 2024. • Mr. Sullivan asked what the time limit is for the American Rescue Plan funds. Mr. Killgore said the City has to obligate the funds before December 2024 as far as he knows, but we have till 2026 to actually disburse the money. Mr. Killgore said there CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 5 MINUTES OF MAY 16, 2022 were protracted meetings/discussions about how to spend the money, such as public hearings, where he made Power Point presentations, and he will provide that to Mr. Sullivan. Vill. Public Comments -- None IX. Adiourn There being no further business, Chairman Napier adjourned the meeting at 6:40 p.m. By: Chairman Larry Napier j9 Date: