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HomeMy WebLinkAbout02-13-2023 BAC MinutesCITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING FEBRUARY 13, 2023 I. Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. II. Pledae of Alleaiance was recited by all. III. Roll Call Present Mr. Hoffman Mr. McGinn Mr. Napier Ms. Reed Mr. Hall Mr. Middleton — late arrival Ms. Cerda IV. Introduction of Members (Name and ADDointee): • Harry Hall Mayor Jones • Bruce Hoffman Council Member Dixon • Terry McGinn Council Member McPartlan • Bill Middleton Vice -Mayor Nunn • Larry Napier Council Member Dodd • Amber Cerda At -Large Member by Vote of Council • Dave Newhart At -Large Member by Vote of Council • Grace Reed (a) Alternate Member by Vote of Council V. Selection of Chairoerson Mr. Hoffman made a motion to nominate Larry Napier as the Committee's continuing Chairperson. Mr. Hall seconded the motion. There being no other nominations, Mr. Napier called for a roll call vote. Roll Call Mr. Middleton — Yes Ms. Cerda -- Yes Mr. Hoffman -- Yes Mr. McGinn — Yes Mr. Napier — Yes Ms. Reed (a) -- Yes Mr. Hall — Yes Vote was 7-0 in favor. Motion passes VI. Selection of Vice-Chairoerson CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MINUTES OF FEBRUARY 13, 2023 Mr. Hall made a motion to nominate Amber Cards for Vice -Chairperson. Mr. Hoffman seconded the motion. There being no further nominations for Vice -Chairperson, Mr. Napier called for a roll call vote. Roll Call Ms. Reed (a) — Yes Mr. Napier — Yes Mr. McGinn — Yes Mr. Hoffman — Yes Ms. Cerda — Yes Mr. Middleton — Yes Mr. Hall — Yes Vote was 7-0 in favor. Motion passes. VII. ADoroval of Minutes: Meeting of September 12.2022 Everyone indicating they had reviewed the Minutes, Mr. Napier called for a motion. A motion accepting the Minutes of September 12, 2022 as presented was made by Mr. Hoffman, seconded by Ms. Reed, and approved unanimously via voice vote. Vlll. Review of Fourth Quarterly Report for Period Ending September 30.2022 Mr. Killgore apologized for the lateness of this report. He explained that staff holds off closing the books and preparing the report until staff Is pretty confident that it presents an accurate reflection after the auditors do their review. Mr. Killgore reviewed that the report includes what staff will be presenting to City Council: the agenda write-up, as well as the Resolution. He pointed out that on some of the copies of the Resolution at the bottom may say Mayor Jim Hill. That should be Mayor Fred Jones. He will correct that before he submits it to City Council. Mr. Killgore gave a rundown of all the budget adjustments that have been made for the quarter and pointed out and explained some of the items in this report. The next reports highlight the General Fund as well as the other major funds of the City. As to the General Fund, revenues came in strong last year at 107% of the budgeted amount, and departments only spent 92.8% He called attention to the General Fund Balance Forecast that shows what adjustments were made from the General Reserve Account as well as the R and R Account. Regarding the R and R Account, staff is authorized to spend up to $275,000.00. Last year there was only $160,811.00. He pointed out that back in October some adjustments were made to the City's starting pays that City Council authorized, and that amount had to come off this balance. Staff did not budget for the raises in the current year budgets —raises that are negotiated through the CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MINUTES OF FEBRUARY 13, 2023 bargaining units —so there will be adjustments out of this fund balance to cover the first year of those adjustments. There are still negotiations going on with the general employees' collective bargaining unit. He reviewed the Stormwater Fund Summary which showed that for the revenues this year staff was successful in budgeting almost to the dollar what the City would receive in stormwater fees. The spending was somewhat reduced from the lowest budgeted. It also ended up with available funds at the end of the year quite higher than what were anticipated. Mr. Killgore stated that Mr. Hoffman did point out an error on the Golf Course Fund. The amount shown for the Building Fund Payment actually was $36,085.00. The figure that was presented was one that represented only nine months. That difference was included in the Operating Expenses. Instead of $1,403,673.00, it will be $1,394,652.00 that was actually expended during the year, which would be approximately 97.5% of their budgeted expenditures. The Golf Course did have a very good year revenue -wise. Regarding the Airport Fund and the Building Fund, he stated that there were increases in the ending balances for those funds, and they were above what had been projected for the year. The Capital Project Status Report as of September 30, 2022 was reviewed. Mr. Killgore stated there are still some projects from the previous fiscal year, but there is nothing of particular significance except the Public Work Facilities Compound. Since then, that project has been completed and the building is now occupied. Some of the projects in fiscal year 2022 are mostly placeholders. There is some work that they have initiated this year such as the square hangars, etc. Mr. Hall called attention to the projects that are zero completion. He understands that they have bidding, etc. before they are started. He asked specifically about the ballpark and projects like that. Mr. Killgore explained that Mr. Benton, Director of Leisure Services, does quite well in staying on top of those projects. The Quarterly Investment Reports were then discussed. Mr. Killgore stated that some of the City's Investments are with Seacoast National Bank, some are with the State Board of Administration, and some are with Florida Trust. The Interfund Loans Report and the Debt Due to Outside Parties Report were discussed, especially talking about the golf carts. Mr. Killgore reviewed the Fund Summaries for the fourth quarter of 2022 and the General Fund Departments report for the Quarter Ending 9-30-2022. He then called for questions/comments from the Committee members. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 4 MINUTES OF FEBRUARY 13, 2023 Mr. McGinn asked regarding the Miscellaneous Revenues, which is a rather large number, a general description of what is contained in that report. Mr. Killgore said that is the way the accounting system is set up, where the account numbers roll up into the categories that are shown on the detail report. He further explained how the system is structured. Mr. Hall stated it appears that the year ended very well regarding the unrestricted fund balance. He asked, since then, has anything come up that will impact that other than labor negotiations. Mr. Killgore stated there have been discussions that concern him — everything from acquisition of properties to other projects that have not been provided for otherwise. Nothing has really come to fruition regarding that. He further explained the Discretionary Sales Tax Fund. Those funds were used to build the Public Works Complex. Presently, there are some future years when the City does not really have major projects allocated out of those funds. He further discussed what makes up the $5 million in reserves and how that money could possibly be negatively affected. To answer Mr. Hall's question further, Mr. Killgore stated there were increases for certain departments for new hires to be brought on at a higher rate. That was before the agreements were actually negotiated. He estimated that amount at $100,000,00 plus. Mr. McGinn commented that, at the rate that interest rates are going up, it will not take too many surprises if the City has to go to debt. He also spoke regarding finding a new City Attorney, and the recruitment fee alone is $35,000.00 before you get to the attorney's salary. Mr. Killgore stated that unexpected costs such as finding a new City Attorney, economic downturns, etc. are what the reserves provide —a cushion for those unexpected events. There was general discussion regarding the annexation and what that will entail as well as the new building that is going on and how those things affect the budget. Mr. Hoffman asked if the City is finished with hurricane settlements. Mr. Killgore said there are claims being filed for the two hurricanes this year. He said the $80,000.00 is still sitting in a liability account. He added that sooner or later FEMA will come in and want to audit those reimbursements. Mr. Napier added that FEMA may not make the City pay it back; they may net it out against a future allocation. Mr. Hall asked where that $80,000.00 is kept. Mr. Killgore said it is on the General Fund balance sheet as a liability. Mr. Hoffman asked regarding the expenditures from last year. The City only spent 92.8% according to the numbers. He asked how that compares to prior years —it seems low. Mr. Killgore stated that it is lower than in the past. Some of that was staff vacancies during the year. Mr. Napier opined that the departments have managed their budgets very well. He added that every single department in the General Fund is under budget. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 5 MINUTES OF FEBRUARY 13, 2023 Mr. Hoffman asked what the plan is for the old City maintenance yard. Mr. Killgore stated that there have been issues with the fuel tanks. It is on the radar for the State to help fund the cleanup with a share paid by the City. The latest estimate was approximately $90,000.00 that the City would have to pay towards a cleanup. There have been favorable reports on the groundwater testing and the wells that have been in place. The wells in that area are still being monitored and reported. Mr. Napier said this is a great report, and the City finished the year really well. He said that there was approximately $350,000.00 over the budget left in the General Fund. He opined that that was the difference between rollback and the mlllage rate that this Committee actually recommended. IX. Review of Budget Calendar and Discuss Next Meetina Date (Monday. March 12. 2023 Mr. Killgore said it will be necessary to have a meeting on March 131h. He will amend the calendar and send the amended calendar out. X. Ad ourn There being no further business, Chairman Napier adjourned the meeting at 6:49 p.m. By: u). — Date: ChaMnan Larry Napier jg