HomeMy WebLinkAbout07-17-2023 BAC Minutes w/AttachmentCITIZENS BUDGET REVIEW ADVISORY COMMITTEE
MINUTES OF REGULAR MEETING
JULY 17, 2023
I. Chairman Napier called the Citizens Budget Review Advisory Committee meeting to
order at 6:00p.m.
II. Pledge of Allegiance was recited by all.
III. Roll Call
Present
Mr. Hoffman Mr. Newhart
Mr. Napier Ms. Reed
Ms. Cerda Mr. Hall
Mr. McGinn (via Zoom)
Not Present
Mr. Middleton (excused)
Also Present
Mr. Ken Killgore, Administrative Services Director/CFO
Mr. Brian Benton, Interim City Manager
Mr. Joseph Perez, AV Technical Assistant
Ms. Testa, Recording Secretary
IV. ADDroval of Minutes: Meeting of Mav 15. 2023
Everyone having had a chance to review the Minutes from May 15, 2023, Mr. Napier called for a
motion. A motion to approve the Minutes as presented from May 15, 2023 was made by Mr.
Hoffman, seconded by Ms. Cerda, and approved unanimously via voice vote.
V Presentation of Draft Budget by Ken Killgore
Mr. Killgore announced that he modified the presentation and those changes have been made in
red. (See attached) He said he divided the presentation in to five sections; summary of general
fund budget, enterprise and other funds, capital improvement program, property values and
millage and other considerations. He asked that at the end of the night the committee vote on a
proposed millage recommendation to City Council.
Mr. Killgore said there is an 11.18% budget increase over the current year's amended budget.
He mentioned that the city is still waiting for the cost for group insurance, the strategic plan that
Council made a motion to move to the 2023 budget and the Senior Center roof project that had to
be moved to the 2023 budget.
Citizens Budget Review Advisory Committee
Minutes of July 17, 2023
Page 2
He said there was an error in the projected health insurance premiums; it should be 10% not 5%.
His reasoning for adding 5% is due to the addition of seven full-time positions and also adding
money for organizational efficiency program staffing.
He broke down the operating accounts; there will be additional election cost this year as opposed
to last year. Legislation has passed that says the city should not be funding special event
programs out of CRA funds. The liability and property insurance has gone out of control; the
city is expecting the premiums to more than double compared to this year.
The city looked at their insurance policy for the docks and are proposing canceling that policy
and self -insuring the docks. The city pays $60,000 in premiums every year. Mr. Killgore
explained that the city would put aside $3,000,000 of reserves; this money would be used in case
we don't get reimbursed from FEMA. By the year 2026 this account could be reduced down to
$250,000 and used to handle extraordinary repairs from storms that are not classified a national
emergency.
Mr. Killgore said the city assumed the revenue at a 3.0503 millage rate. If you take the millage
rate now of 2.9050 there would be 5% increase in the millage rate. The state required calculation
of the rolled -back which is a rate of 2.6275 there would be a 16.09% increase in taxes according
to the State. The City will be required to advertise in the newspaper the proposed millage rate
with an increase of taxes by 16.09%.
Mr. Killgore stated the Golf Course had a good year. The Golf Course is receiving the same
amount of rent from the restaurant and pays the Airport the same amount for rent. The Golf
Course continues to pay $36,335 principle and interest on the building fund loan and they are
projected to pay $80,000 toward the general fund loans next year. He said new golf carts have
arrived. The City has not paid for them yet but according to the purchase order there are
sufficient funds in the account today to pay for them.
Mr. Napier asked if the Pickleball Courts are on Golf Course property. Mr. Killgore explained
that the courts are on Airport property and rent is paid to the Airport.
Mr. Killgore reported the Airport has a new facility, Hangar D, which we will increase rental
revenue. The City is still paying on loans for Hangar A and Hangar B. The City is also grant
matching from DST funds for some major Airport projects.
Mr. Napier asked if the Airport will be reimbursing the DST fund once the grants have been
received. Mr. Killgore said that's not practical unless these are revenue producing projects.
Mr. Napier asked if the Public Works Facility pays rent to the Airport. Mr. Killgore responded
yes, it comes from the Public Facilities budget.
Mr. Killgore said the Building Department continues to have high permit revenues. They would
like to hire another Inspector because they are hard to find.
Citizens Budget Review Advisory Committee
Minutes of July 17, 2023
Page 3
Mr. Killgore reported on the American Rescue Plan Act Fund. He said the money was allocated
to several projects. The money had to be allocated by the end of 2024 and totally spent by the
end of 2026. Mr. Killgore said the Schumann Drive project will now be paid out of DST money
and that money that was set aside for that project will be allocated to road work, providing this is
approved by the Council.
The Local Option Gas Tax projected collections is at 3.5% annual increases and this money will
be used for several projects including road preservation work and swale work. (See attached
page 15)
Mr. Killgore reported that the CRA Revenue Fund covers their operating expenses and projects
on the Working Waterfront as well as the Central Avenue Catalyst Master Plan in FY 27-28.
He reported the Recreation Impact Fee funds are scheduled out over the next five years for
various parks. The city will continue to budget $5,000 for each of the four zones for things that
may come up such as safety issues.
The Stormwater Utility Fund Mr. Killgore announced is in trouble. The personnel and operating
accounts are exceeding the revenue from the current fees collected. The city will have to look at
a rate increase either next year or the year after.
Mr. Hoffinan asked why the city is holding off on the rate increase until 2024/2025 if the
expenses are exceeding the revenue coming in now. Mr. Killgore said he looked at a six year
projection and if we continue to spend more than we are taking in by then the fund would go
broke. Mr. Killgore said the city needs to increase the fee by $2.00. Ms. Reed also questioned
this.
Mr. McGinn said stormwater problems are an emotional item for most residents in Sebastian and
he feels an increase would not be objected to if they knew there were going to be stormwater
improvements. Everyone is right it's probably better sooner than later.
Mr. Killgore advised that the only way to address the increase now is for the committee to have a
consensus making an amendment to setting the proposed millage rate for the general fund and
suggest Council consider a stormwater change.
The committee was concerned that there would not be enough time to put the change on the tax
bill at this point. Mr. Killgore said he is not sure if they are just asking for an increase if it takes
the same amount of time.
Mr. Hoffinan made a motion to recommend that Council not delay and move the $2.00 increase
to November 2023 property tax if that's possible.
Mr. Benton said from discussions with the tax collector's office he does not believe the
stormwater fees goes on the TRIM notice so if the committee would like to make that
recommendation to Council it would give him time to contact the Tax Collector and get the
Citizens Budget Review Advisory Committee
Minutes of July 17, 2023
Page 4
answer before the Council meeting next Wednesday. He suggested that they make a motion that
if the city is able to get it done then that would be their recommendation.
Mr. Hoffman said he still has his motion on the board and is looking for a second. Ms. Cerda
made a second to recommend that Council not delay and move the $2.00 increase to 2023/2024.
The Motion was approved unanimously via voice vote.
Mr. Killgore than briefed the members on the other City Funds. The members also discussed the
firing range item.
Mr. Killgore explained the breakdown in the certified taxable values. The city has 84 million in
additions this year and reassessments increased by 187 million which 15.05% above 2023. If the
roll -back is used the city would have a short fall of $846,224. If the same millage as last year
was used the city would have to use $747,517 of its reserves.
Mr. Napier said with the current millage of 2.9050 approximately $300,000 of reserves would be
used to balance the budget he wanted to know if the city projected what the carryover would be.
He said it looks like revenues are going to exceed expenditures.
Mr. Killgore said the carryover was going to be 9.6 million and his projection on the total
amount available and the amount in reserves is pretty close.
Mr. Killgore said in an18 year history of setting the millage rate, 61 % of the time was either at or
below roll -back rate.
Mr. McGinn spoke in support of recommending a 3.0503 millage.
A motion was made by Mr. Hoffinan and a second by Mr. Hall to recommend a proposed
millage rate for the TRIM notice of 3.0503 for Fiscal year 2023. The motion was approved via
voice vote 6 in favor and 1 opposed.
VI. Next Scheduled Meeting Date (Mondav, Julv 31, 2023)
VII. Adiourn
There being no fiu-ther business, Chairman Napier adjourned the meeting at 7:12pm.
a
By: A� , � Date: o?.
Napi , Chairman
kk
2024 Budget and Capital Program
Presentation on Draft 2024 Budget
Budget Review Advisory Committee Meeting
Monday July 17, 2023
Prepared By:
Ken Killgore
Administrative Services Director/CFO
1
2024 Budget and Capital Program
o Summary of General Fund Budget
o Enterprise and Other Funds
o Capital Improvement Program
o Property Values and Millage
oOther Considerations.
z
Draft FY2024 General Fund Budget
Versus Amended FY2023 Budget
$ 1,479,084 Personnel Costs
3181803
Operating Expenditures
(72,076) Capital Items and Projects
$ 11725,811 11.18% Budget Increase
1 To Be Adjusted for Group Insurance.
2 Strategic Planning Moved to 2023.
3 Senior Center Roofing Moved to 2023.
3
Draft FY2024 General Fund Budget
Personnel Up $1,479,084
o Health Insurance Premiums Projected
to Be Up by 10% But Not Yet Known.
o Includes 5% Pay Increases.
o Adding Seven Full-time Positions.
oTwo of These Are Part-time Positions
Being Changed to Full-time.
o Includes $260,000 for Organizational
Efficiency Program Staffing.
Draft FY2024 General Fund Budget
Personnel Additions/Deletions
Seven Full-time Additions:
Deputy City Clerk
Accountant
Two Police Officers
Crime Scene/Evidence Technician
Evidence Technician — Now Part-time
Mechanic — Now Part-time
W7
Draft FY2024 General Fund Budget
Operating Up $318,803
$ 40,355 Additional Election Cost.
$ 52,750 Special Events From CRA.
$271,905 Insurance Premiums Increase.
($58,445) Dock Insurance Cancellation.
$ 121238 Change in Other Accounts.
* Should Have Been a ($62,762) Change. $75,000
Strategic Planning Was Included in the $318,803
But Not
Listed
as
Part of the Change.
It is Moved
Now to
FY 22-23,
so $318,803 Will Be
$243,803.
A
kk Draft FY2024 General Fund Budget
Capital and Transfers Down $72,076
2023 Capital/Transfers Were $597,236:
Capital Purchases and Projects $547,236.
Centennial Allocation $50,000.
2024 Capital/Transfers Are $525,160:
$ 88,500 Community Development Offices.
$ 40,760 Police Department Equipment.
$142,900 Roads Equipment and Sign Truck.
$ 75,000 Sidewalk Replacement.
$140,000 Facilities Work Van and Roofing.
$ 38,000 Leisure Services Mowers/Shed.
6, Draft FY2024 General Fund Budget
Use of Cash Reserves
Projecting About $9,611,654 by 9/30/2023:
$2751000 Renewal &Replacement Account
$7471956 Assigned to Inventory/Prepaid/etc.
$389,000 Employee Final Payouts
$3,000,000 Dock Self -Insurance Account
$5,199,698 Available for Emergencies
At 9/30/2026 Adjust Above Self -Insurance to
$250,000 for Minor Damage, Set $3,000,000
Aside in DST Fund for Major Damage.
Al
Draft FY2024 General Fund Budget
IL Revenue Assumptions
Property Tax At 3.0503 Millage Balances
Revenue to Expenditures (5.0% Above Current
2.9050 and 16.09% Above Rolled -Back 2.6275).
Franchise Fees and Utility Taxes are $695,127
or 14.5% Above This Year's Budget.
State Revenues are $2641670 or 7.0% Above
This Year's Budget.
35.7% of Property Tax, 10.7% of Franchise
Fees, 20.9% of Utility Taxes and 23.5% of State
Revenues Equals 90.8% of Total Revenues.
01
Draft FY2024 Enterprise Funds:
IL Golf Course
Enjoying Good Year. 2024 Budget Assumes
This Continues.
PF o Same $301000 for Restaurant Lease.
o Same $106,864 for Airport Rent.
o $36,335 Principal and Interest on $700,000
Building Fund Loan.
o $80,000 toward General Fund Loans.
a Expecting $160,360+ on Sale of Golf Carts
During FY2023.
10
Or
Draft FY2024 Enterprise Funds:
Airport
o Property Rental Revenue Expected to
Increase With Rental of Hangar D.
o Loans From Discretionary Sales Tax Fund:
Hangar A $285,000
Hangar B $267,511
- $2461523 By 9/30/23.
- $2411058 By 9/30/23.
o Grant Matching From DST Fund:
In 2024, $314,000 For Square Hangars and
$85,191 on 2nd Half of Rehab of Runway 05-23.
Over Following Five Years, $1,644,640 for the
Matching on Taxiway Golf, Terminal Apron
Expansion, NW Airport Access and Taxiway
Bravo Design.
11
Draft FY2024 Enterprise Funds:
Building
Permit Revenue Continues at High Levels
And Above Budget.
Adding an Inspector Position in the Event
Needed and Able to Be Hired.
Expecting $36,335 Principal and Interest
Payment on Golf Course Loans:
$700,000
Loan
Will Be $522,610 By
9/30/23.
$559,684
Loan
To Be Paid After the
$700,000.
12
Draft FY2024 Special Revenue Funds
American Rescue Plan Act Fund (ARPA):
Originally Allocated to Gardenia Ditch,
Schumann Drive, Concha Dam., Employee
Retention Payments and Road Work.
Must Be Obligated by December 31, 2024
and Totally Spent by December 31. 2026.
Improvement Projects Need Plans and
Permitting Which Require Some Time.
Requesting City Council to Switch
Schumann Drive to DST Fund in FY24-25.
13
Draft FY2024 Special Revenue Funds
Local Option Gas Tax:
Projecting Collections at 3.5% Annual
Increases for Future Years.
Being Used for All Road Preservation and
Associated Swale Work as Scheduled in
Current Paving Management Program.
14
Draft FY2024 Special Revenue Funds
Discretionary Sales Tax:
Projecting Collections at 3.5% Annual
Increases for Future Years.
Being Used for All Road Reconstruction and
Associated Swale Work as Scheduled in
Current Paving Management Program.
Also Funding: MIS Infrastructure, Police
Vehicles/Equipment, A/C Replacements,
CRA Projects, Splash Pad Replacement,
Schumann Drive, Stonecrop Upstream, Canal
Restoration and Other Stormwater Work.,
Matching Funds for FAA and FDOT Grants.
15
IL
Draft FY2024 Special Revenue Funds:
Riverfront CRA Fund:
Operating Expenditures:
Audit Fees, Administration, Landscaping,
Waterfront Renovations, Other Facility
Maintenance, Submerged Land Leases,
Consulting Fees, Travel and Education Cost,
Legal Ads, State Fee, Association Dues and
Landfill Fee on Fisherman's Landing.
Special Events Moved to General Fund.
Working Waterfront Work Thru FY 26-27.
Central Avenue Catalyst Site in FY 27-28.
16
Draft FY2024 Special Revenue Funds:
o Recreation Impact Fee Fund:
Unspecified Improvements ($5K per Zone).
Future Playground/Park Improvements:
23-24 Creative Playground.
24-25 Bryant Court Park.
025-26 Hardee Park and Schumann Park.
026-27 Community Center and Friendship Park.
027-28 Riverview Park.
Projected 2024 Fund Balance is $116,667
Provided Revenue Estimates Hold True.
17
Draft FY2024 Special Revenue Funds:
Stormwater Utility Fund:
Personnel and Operating Accounts Are
Exceeding the Revenue From Fees.
Capital Only Includes:
Walk Behind Concrete Saw.
Sliplining or Pipe Replacement.
Expecting a Rate Increase in FY 24-25.
Draft FY2024 Special Revenue Funds:
o Law Enforcement Forfeiture Fund:
Used Only for Unbudgeted Items.
Specific Items Need City Council Approval.
Current Balance is $52,350.
o Parking In Lieu Of Fund:
Used for Providing Additional Parking.
Current Balance is $95,331.
19
Draft FY2024 Trust Fund
Cemetery Trust Fund:
Y2of Sales on Operations and Maintenance:
oReplacing Mowers, a Truck and Trailer.
oReplace Pump and Adding 2ndWell.
oAllocation for Grounds Maintenance.
oReimbursing $130,000 to General Fund.
Y2of Sales Expendable on Expansions or
Cost Incidental to Adding Future Sites:
Funds Columbarium Niches in FY 24-25.
20
Capital Improvement Program
o $59.7 Million Over 6 Years.
o $25.8 Million Next Fiscal Year.
o Largest Items for Next Fiscal Year:
$ 510001000 Firearms Range(If By Grants).
533,1423 Street Repaving.
110780,0163 Street Reconstruction.
111#50011000 Canal Restoration (2nd Part).
115701000 Construct Square Hangars.
1,703,823 Runway 05-23 (2nd Part).
$2210871409 Total of Largest Items
o $1818741632 Funded by Grants — 85%.
21
Property Values and Millage:
Certified Taxable Values
Total Certified Taxable Property Values
Increased $272,728,446 or 15.05% Above 2023.
Additions Account for $84,8171696 or
4.68% of the Increase.
Reassessments Were $187,031,447 or
10.37% of the Increase.
Rolled -Back is 2.6275. Used 3.0503 (Which is
5%Above Last Year) for Draft Budget to Avoid
Using $846,224 of Reserves.
To Use Same 2.9050 Millage As Last Year Would
Avoid Using $747,517 of Reserves.
22
� Property Values and Millage:
Taxable Value Additions
Dollar Value of Tax
Roll Additions:
2023 84,817,696
2017 35,951,704
2022 471981,095
2016 25,763,700
2021 321716,715
2015 2514921245
2020 331685,1698
2014
191914,805
2019
2313511814
2013
91435,090
2018
15199811366
2012
714621986
Additions
Yield in 2024:
$213,944
at 2.6275,
$236,540
at 2.9050 and
$248,371
at 3.0503.
23
Different Millage & Affecting Factors
($846,224 Shortfall Without 3.0503)
DR-420
Last Year
Millage 2.9050
Percent vs. Rolled -Back
Property Tax Revenues $ 5,066,772
Incremental Difference
Incremental Revenues
Factors Affectinq Added Revenues:
From Additions
From Reassessments
From Millage Change
Incremental Revenues
Budget Shortfall
Rolled -Back
2.6275
0.00%
$5,258,880
$ 192,108
$ 192,108
Same As
Last Year
2.9050
10.56%
$518141289
$ 5551410
$ 747,517
Equal to
Expense
3.0503
16.09%
$6)1051104
$ 2905815
$ 846,224
$ 2137944
$
2363540
$
2481371
$ 4717768
$
510,978
$
547,682
$ (493,605)
$
(0)
$
505172
$ 192,108
$
747,517
$
846,224
$ 846,224
$
98,707
$
-
24
Property Values and Millage:
Rolled -Back and 3.0503 Versus Prior Year 2.9050
ASSESSED VALUES
TAXABLE VALUES
TAXES
1. 03% On Homestead:
2.9050 2.6275 3.0503
$200,000 $206,000
$150,000 $156,000
$436 $410
CHANGE FROM ROLL -BACK ($26)
ASSESSED VALUES $250,000 $257,500
TAXABLE VALUES $200,000 $207,500
TAXES $581 $545
CHANGE FROM ROLL -BACK ($36)
ASSESSED VALUES
TAXABLE VALUES
TAXES
$300,000 $309,000
$250,000 $259,000
$726 $681
CHANGE FROM ROLL -BACK ($45)
10% On Others:
2.9050 2.6275 3.0503
$206,000 $200,000 $220,000 $220,000
$156,000 $200,000 $220,000 $220,000
$476 $581 $578 $671
($3) $90
$257,500 $250,000 $275,000 $275,000
$207,500 $250,000 $275,000 $275,000
$633 $726 $723 $839
$52 ($3) $113
$309,000 $300,000 $330,000
$259,000 $300,000 $330,000
$790 $872 $867
MA
($5)
$330,000
$330,000
$1,007
$135
25
r-
Millage Setting 18 Year History
At or Below Rolled -Back 11 Years - 61.1% of the Time
(2024 is 5% Above 2023 and 26% Lower Than 2015)
4.0000
3.8000
3.6000
3.4000
3.2000
3.0000
2.8000
2.6000
2.4000
2.2000
2.0000 u u u u u u w w J L-Lm IJm u u u u u u u
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1
p Rolled -Back 3.0519 3.2121 3.3646 3.8038 3.9019 3.7311 3.5646 3.7398 3.5446 3.6290 3.6700 3.4939 3.1514 2.9399 2.8090 3.0043 2.6834 2.6275
■ F i n a I 3.0519 2.9917 3.3456 3.3456 3.3041 3.3041 3.7166 3.7166 3.8556 3.8556 3.8000 3.4000 3.1514 2.9399 3.1514 3.0043 2.9050 3.0503
26
Other Considerations
o Group Insurance Cost Not Yet Settled.
o Adding 7 Positions (2 Are Part -Time to Full -
Time) to Maintain Service Levels.
o Earmarking Funding for Organizational
Efficiency Program.
o Prices Continue to Increase But How Long
Will Current Economic Levels Continue?
o Setting Proposed Millage for the Trim
Notices at 3.0503 Will Be Advertised as an
16.09% Tax Increase.
o Exceeding the Proposed Millage Is
Expensive and Delays Budget Adoption. 27
Conclusion
Staff Request You Recommend To City
Council That The Proposed Millage For
Fiscal Year 2023 Be Set At 3.05038
This Should Be Done With a Motion to
Adopt the Proposed Millage At 3.05038
a-4