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HomeMy WebLinkAbout07-26-2023 CC Wksp Minutes0 1) 0 N HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL FY 2023-2024 BUDGET WORKSHOP MINUTES WEDNESDAY, JULY 26, 2023 — 5:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Jones called the Budget Workshop to order at 5:02 p.m. 2. A moment of silence was held. The Pledge of Allegiance was recited. 4. ROLL CALL Mayor Fred Jones Vice Mayor Chris Nunn Council Member Kelly Dixon Council Member Ed Dodd Council Member Bob McPartlan Staff Present: Interim City Manager Brian Benton Administrative Services Director/CFO Ken Killgore City Attorney Jennifer Cockcroft City Clerk Jeanette Williams Building Official/Fire Marshal Wayne Eseltine Community Development Director/CRA Manager Lisa Frazier City Engineer/Public Works Director Karen Miller Human Resources Director Cindy Watson Airport Manager Jeff Sabo Golf Pro Greg Gardner MIS Manager Barbara Brooke -Reese Police Chief Dan Acosta 5. FY 2023-2024 RECOMMENDED BUDGET 23.105 A. Budget Overview — Chief Financial Officer Ken Killgore The Chief Financial Officer displayed a PowerPoint presentation explaining the special revenue funding sources of the City to include: -American Recovery Act Funds which has to be spent on major infrastructure projects that will assist with the economic recovery from the pandemic City Council Budget Workshop July 26, 2023 Page 2 -Local Option Gas taxes have to be spent on transportation expenditures that can be operational and maintenance or for capital improvements such as street repaving -Discretionary Sales Taxes are restricted to infrastructure additions or upgrades -Community Redevelopment Agency funds are restricted to expenditures that will increase the tax base within that system. -Recreation Impact Fees are from residential properties and must be used on things that add to the park system -Parking in Lieu of Fund is for those developers that cannot make the parking requirements so they can buy into an amortization of the cost of future parking spaces -Stormwater fees are for the operation of the stormwater system -Law Enforcement Trust funds are intended for police operations and each disbursement must be authorized by the City Council -Cemetery Trust funds are used for operations and the expansion of the cemetery He said Special Revenue fund expenditures are typically assigned project numbers and accounted for in the Capital Projects Fund to better track the project cost. The general revenues account for the unrestricted funds that come into the City to cover operations. The Enterprise Funds such as the Golf Course Fund and the Building Department Fund are intended to be self -supported. He said there will be a workshop meeting to cover all of the aspects of the budget in more detail. Council Member Dodd said on page 185, there is $3M of the reserves to self -insure the docks and then in 2025/2026 it drops to $250,000, he asked if there was some event he was expecting. The Chief Financial Officer said his purpose was to counter an increase they have on the premium for the docks. The amount of coverage the City would receive if the docks were destroyed, we would only gain $1.2M so he was trying to have a $3M self-insurance account. Two years from now, it can be reduced to $250,000 from General Fund to take care of a storm without significant damage and then set aside the $3M in the Discretionary Sales Tax Fund. 5:14 pm Council Member Dodd thanked him for his presentation. The Chief Financial Officer explained that if FEMA previously repaired the docks we are required to keep the docks insured or else we would have to reimburse FEMA for the first claim. City Council Budget Workshop July 26, 2023 Page 3 Update from the Human Resources Director The Human Resources Director advised the City has been a member of the AARP Senior Community Service Employment Program since 2016 and it is program to help seniors get introduced into the workplace. For a person to qualify they must be 55 years or older, unemployed, live in Indian River County and meet the federal income guidelines of $18,225 or less. She said she has conducted a couple of interviews and those individuals need to improve their qualifications and come back in for a revaluation. For anyone interested, she provided the AARP Foundation's phone number, (321) 956-1444. She also advised that she is currently working on the City handbook and hopes to have it out before October 0. Council Member McPartlan noted that works out to about $200 a week which is a benefit for those only earning $1,500.00 a month. Council Comments Council Member Dodd noted the City is currently $4,000.00 behind the starting salaries for police officers and if we don't catch up we won't be able to hire and retain officers. He requested consensus to increase the salaries of the police and non -police union. Mayor Jones said he agreed, it was needed to maintain their level of service. There was a consensus to have the City Manager work on increasing employee salaries. With regard to the Police Department's request for an indoor firing range, Council Member Dodd asked if they could partner with another organization in building and operating a range because if they open it to the public, it will be a half million a year to operate it. He asked if they could push the project out a year to plan. The Police Chief explained they have pushed the project out to FY 2025/2026 to plan and intend to use current certified staff to instruct the training and take care of the facility. He said the problem they are running into is when Sebastian would like to schedule training at one of the other facilities, they must schedule around that organization's schedule. Each officer must have access to a range to train as often as they can to make sure they are proficient. He said they could consider opening it to the public to make money to cover costs. Mayor Jones asked if they went to rolled back taxes, they would be looking at a $846,000 shortfall. The Interim City Manager said that was correct. Council Member Dodd asked if there could be money added this year and next for the Natural Resources Board to support their Sustainable Sebastian elements. The Interim City Manager said there is $15,000 for Low Impact Development plantings in the budget for this year and more could be added if they feel it is necessary. Council Member Dodd said in the Capital Improvement Program (CIP), the working waterfront expansion involves expanding the dock space and asked if there was anything City Council Budget Workshop July 26, 2023 Page 4 for the Hurricane Harbor building. The Community Development Director said she did put $50,000 under consultant in the CRA budget to look at that site to determine what we want to do. Council Member Dodd asked if they should put aline item in the CIP for the building. The Community Development Director said since the CRA Master Plan is presented, they would move forward and include the entire site to pursue grants and legislative appropriations for this site adding up to $120,000 (for a total of $170,000 for the site). Council Member Dodd said he would like to recognize that in 2024/2025 and then 2025/2026, they will be spending a half a million/million for that building but it isn't recognized in the five year plan. The Interim City Manager cautioned that is included in the working waterfront expansion but they haven't decided what is going to happen with the building. Council Member Dodd asked if the $1.5M is sufficient to cover dock space and what they need to do with building. The Community Development Director said they were hopeful and noted they will be pursuing other grant dollars. Council Member Dodd asked the City Engineer if the money for the street work includes the swale work and repair. The Interim City Manager explained it is in the street reconstruction and the street repaving but won't be shown as a separate cost. Public Input Nathan McCollum said in the PowerPoint presentation, it was mentioned that the stormwater fee would need to be increased but it did not mention how much. The Interim City Manager said staffs recommendation was to increase the fee next fiscal year but the Citizens Budget Review Advisory Board made a recommendation to raise the fee this fiscal year $2.00. Mr. McCollum asked if the budget included the income of the 3% franchise fee for Waste Management. Council Member Dodd explained that the City is not collecting that for the next 15 months; after that Council would need to discuss if the franchise fee should be paid in October 2024. Grace Reed said later in the Council meeting she will have comments regarding the millage rate. 6. Being no further business, Mayor Jones adjourned the Budget Workshop at 5:57 p.m. Approved at the August 23, 2023 Regular City Council meeting. Mayor Fred Janes ATTEST. nette Williams, C� f'!e`+-k_ - 2024 Budget and Capital Program High Level Overview Presentation for City Council July 26, 2023 Prepared By: Ken Killgore Administrative Services Director/CFO 2024 Budget and Capital Program Overview -Objectives Adjust Staffing for Needs and More Efficiency Shorten Time for Completing Projects Catch -Up on Road Improvements ,Initiate CRA Master Plan Improvements �-Insure Cash Reserves are Well Funded >Continue High Play at Golf Course Continue Airport Improvements/Grants z 2024 Budget and Capital Program Overview -Challenges Stayi ng Competitive with Labor Market Making Effective Additions to Staff -Make Changes to Shorten Procurement Time Increases in Cost of Contracts and Purchases Out -of -Control Rise in Insurance Premiums Implementation of Garbage Billing Balancing Stormwater Revenue to Expenses 3 2024 Budget and Capital Program Overview - Positives y Labor Agreements Commit to 5% Increases Present Cash Reserve Levels are Adequate No Long-term Debt IF'CIP Funded With DST, LOGT, ARPA and Grants A Escalating Consumer Purchases and Prices Have Also Increased Key Revenue Sources. y Historic Increase in Tax Roll Additions �= Golf Course Play Remains High �= Airport Construction and Rentals are Robust 9 2024 Budget and Capital Program Overview —Solutions (Draft) rStrategic Plan and Changes to Procurement Process ®Organizational Efficiency Program Funded Full -Time Positions: Deputy Clerk, Accountant, 2 Police Officers, Crime Scene/Evidence Technician and Building Inspector (Plus 2 Police Officers Next Year) Funded Part -Time to Full -Time: Evidence Technician, Mechanic and Assistant Golf Pro Contract Out Swale Work to Catch -Up Road Work -Establish Cash Reserve to Self Insure City Docks 5 2024 Budget and Capital Program Overview —Cautions and Concerns Current Economy May Be Unsustainable and We Need to Plan for Those Potential Economic Effects. Should Insure Future Cash Reserves Can Be Maintained By Balancing Revenues to Spending. Stormwater Fee Will Need to be Increased Funding Residential Garbage Cost: Will Pay Contractor 100% of Residential Fees Up to 4% Tax Discount + 2% to Tax Assessor + 2% to Tax Collector + Delays in Payment (Franchise Fee?) 0 2024 Budget and Capital Program Overview —The Good News ®Draft Budget is Balanced With Less of a Millage Increase Than Expected. Addressing Goal of Completing Projects Faster Paving Management Plan is Fully Funded Projects in the CRA Master Plan Can Proceed Capable of Funding Larger CIP Projects Using DST, LOGT, ARPA and Grant Funding 2024 Budget and Capital Program Overview —Final Note and Questions A Vote to Set the Proposed Millage is on the Regular Meeting Agenda for Tonight's Meeting Form DR-420 Must be Filed With the Property Appraiser by Thursday, July 27tn Final Adopted Millage Can Not Be Higher Questions? Sources Uses of City Funds oSpecial Revenue Funds: American Recovery Plan Act — Infrastructure Projects. Local Option Gas Taxes —Transportation Operation and Capital. Discretionary Sales Taxes — Infrastructure Additions/Upgrades. Community Redevelopment Agency — Increases to Tax Base. Recreation Impact Fees — New Facilities or Improvements. Parking In -Lieu -Of —Additional Parking Facilities. Stormwater Fees — System O&M and Improvements. Law Enforcement Trust — City Council Approved Police Items. Cemetery Trust — %2 of Fees on Operations and %2 on Expansion. o Capital Project Funds: Receives Transfers to Specific Projects. I Sources Uses of City Funds o General Fund: Unrestricted Revenues — Property Taxes, Franchise Fees, Utility Taxes, Fines, State Revenues, Licenses/Permits, Rents, Charges/Reimbursements for Services, etc. (Unrestricted). Government Expenditures —Administrative Staffing, Law Enforcement, Public Works, Facilities Maintenance, Leisure Services, Cemetery and Community Development. o Enterprise Funds: Activities Intended to be Supported by Fees and Charges for Their Operation. Golf Course (Fees) — Airport (Rents) — Building (Permits). 10 Z. HUMAN RESOURCES 1tn-.---= BUDGET PRESENTATION AARP Program Neogov Software - Onboarding, Performance Management and Integration AARP Foundation Senior Community Service Employment Program assists low income senior citizens (55+) to get back into the workplace. AARP ACSEP is a federally funded training program created to provide a Sr. with training opportunities and other assistance. Through the program, the Sr. is placed on a temporary assignment in a non-profit agency or municipality within the community in order to help them update their skills and equip them with new skills. Their assignment with the host agency is approximately 18 hours per week and is compensated at Florida's current minimum wage enabling them to earn additional income. Federally or State funded. No wage cost to employer. Current minimum is $11.00/hour September 30, 2023 Minimum $12.00 While on assignment, CareerSource Staffing Specialists are available to assist in finding a better paying opportunity utilizing relevant experience and skills. Qualifications 55 years of age or older Currently unemployed Meet federal income guidelines - $14,548 per single person up to 125% or $18,225. Must be a resident of Indian River County Register at CareerSource/Employ Florida Are not working 15 hours or more as an unpaid worker in an enterprise operated by the Sr, or a member of the family. Agreement The City of Sebastian signed an Agreement to work with the AARP Foundation in 2016 however, there are not many participants in Indian River County. Agreement has been re- established. If interested in the program, please call 321-956-1444 ONBOARDING Complete and sign all forms online allowing for multiple contributors and ensuring safe circulation of form tasks. Neogov provides the federal 19s and W4s. Engage with pre -hires during pre -employment. Electronic storage of all pre -employment forms, orientation forms, policies, and exit interview surveys. Hold all stakeholders accountable for their role in onboarding, promoting, rehiring and offboarding employees. Seamless transition from applicant to new hire that provides a unified and completed recruitment process. PERFORMANCE MANAGEMENT Automate the evaluation process and eliminate paper evaluations. Currently paper forms. ■ Ability to track employee performance and provide constructive feedback to build a more capable workforce. ■ To drive employee development. ■ Empowers employees and managers with a means to track accomplishments and share feedback to promote a better working relationship. ■ Empowers employees to self -initiate processes on their own. Reduce time it takes for managers to complete a meaningful evaluation for their direct reports. The system automatically creates the evaluations and alerts users when it their turn to complete a task. It saves HR time by not having to print and/or prepare and route evaluations as well as puts an end to chasing forms. ■ There is an approval workflow to maintain efficiency. Identifies employees that are eligible for promotions. Identifies skill gaps within specific departments or teams that need training. Gain more useful data from evaluations. COST Currently use Neogov Software for Recruitment. Admins can report on all tasks, print forms in bulk, pull any form data to excel , and use a free integration with E-Verify for 19 verification Integration - Export the data from Neogov to our HRIS system which is ADP Onboarding, Performance Management and Integration 3 Year Agreement is for 3 Years - $48,610.00; One-time set-up and training fee $4,500