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HomeMy WebLinkAbout03-04-2024 BAC MinutesCITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING MARCH 4, 2024 Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. Il. The Pledge of Allegiance was recited by all. III. Roll Call Present Chairperson Napier Ms. Reed Mr. Hall Mr. McGinn Mr. Middleton Mr. Hoffman Members Absent: Ms. Cerda (excused) Mr. Newhart (excused) Staff Present Mr. Ken Killgore, Director of Finance Ms. Barbara Brooke -Reese, MIS Manager Mr. Joseph Perez, AV Technical Assistant Mr. Dominic Adams, AV Technical Assistant Mr. Nicolas Ladyman Help Desk Technician Ms. Catherine Walker, Recording Secretary IV. Aooroval of Minutes: Meetine February 12. 2024 Ms. Reed stated Page (2) Section (5) during the selection of the chairperson; Mr. Hoffman did make a motion to nominate Mr. Napier. The motion was seconded; however, it stated there were no further nominations. She stated that Mr. McGinn questioned whether there could be more nominations. She stated that there should have been nominations not a motion. She stated, Mr. Napier then called for a vote on that motion. The committee had a discussion in regards to rules and regulations on motions and nominations. The City Attorney then intervened and clarified the rules, regulations and procedures to amend or approve the minutes. CITIZENS BUDGET REVIEW ADVISORY BOARD MARCH 4, 2024 MOTION by Ms. Reed SECOND by Mr. McGinn to approve the February 12, 2024 with changes. Roll Call: Chairman Napier - nay Mr. Hoffman - aye Mr. Hall - aye Mr. Mc McGinn - aye Ms. Reed - aye Mr. Middletown - aye Motion carried. 5-1 V. Review of the FY2023 4th Quarter Budget Renort Mr. Killgore stated the report is for the quarter ending September 30, 2023. He said that the report explains the uses of the R&R fund along with the general reserves. He attached a proposed resolution for the City Council to adopt with an exhibit showing the budget changes in detail with an explanation of what they were and those that were authorized by the City Manager, or previously approved by the City Council, as well as four adjustments that were uses out of the R& R account. He presented a summary of the general fund showing the revenue collections and expenditures. He stated that the revenues were 106.8% greater than budgeted. He stated the revenues on the electric franchise and the utility tax receipts exceeded the budget. He reviewed other revenues including code fines, interest earnings collection from FEMA and an entry that is required by governmental standards to show $87,000 of deferred rent revenues. He clarified that the entry is "not cash in hand" and it is not available until future years. He reviewed the amount of reserves in the general fund and presented the exhibit of the breakdown. The breakdown consisted of the reserve balance as well as the R&R fund account balance. He stated that there are approximately 8.5 Million dollars in reserves at the end of the year. Mr. Hall discussed the reserve funds with Mr. Kilgore and asked if the funds are unencumbered. Mr. Kilgore said that the funds are in fact unencumbered funds. Mr. Hall then asked to clarify the in-house insurance and if the $3 million left over would be used to set up the in-house insurance. Mr. Killgore stated unfortunately, due to the state statutes there was no way to set up the in-house insurance. He explained the City therefore, only budgeted for the premium needed for the dock insurance policy. Mr. Kilgore stated that the electric franchise and utility taxes were higher than the amount budgeted. PAGE CITIZENS BUDGET REVIEW ADVISORY BOARD MARCH 4, 2024 He explained this year's budget did not consider receiving the same amounts as last year. He reviewed the American Rescue Plan Act funds and stated the funds are required to be committed prior to December 2024. He stated there is a possibility in the upcoming months of reallocating funds to projects that will be completed or committed in that period to comply with the act. He then opened a discussion for the board. Mr. Hoffman asked to clarify the $500,000 of revenue and if the $72,000 was an overpayment for FEMA. Mr. Killgore explained that the funds were a result of rate increases in the previous year that produced revenues faster than anticipated and stated that the summer months caused some inflation. He stated that the $72,000 was not an overpayment. The over payment from a past year is still being held in a liability account. Mr. Killgore gave a presentation of the storm water fund. He explained the exhibit for the ending balance of the storm water fund exceeded their expectations. This is partially due to unfinished projects in a capital project fund that will use those amounts. Mr. Killgore mentioned the golf course revenues were good and the airport revenues were also higher than past years. Mr. Killgore stated the building fund revenues were lower than expected. However, the building fund remains in a positive financial position. There was a discussion on the improved capital projects report. Mr. Killgore stated that City staff is focusing on improving the report as well as completing projects without undue delays. Mr. Killgore reviewed the accomplishments reported by all of the Departments and reminded the board that the report exhibited, is for the fourth quarter ending September 30, 2023. He stated that the first quarter report would be prepared for the next meeting. Ms. Reed pointed out that Resolution No. R-24-11 needed a change on the signature line, along with noting Fiscal Year 2023 4th Quarter accomplishments for the City Departments also needed a change. Ms. Reed reviewed exhibit "A" of Resolution No. R- 24-11 stating on the second page of the summary of changes, she asked if the contributions and donations are accounted in general funds. Mr. Killgore clarified the donations and contributions are accounted in the general fund, and that the City is anticipating additional donations. PAGE 3 CITIZENS BUDGET REVIEW ADVISORY BOARD MARCH 4, 2024 Mr. Hall asked Mr. Killgore to clarify the reserve balance and how the balance would be used. Mr. Killgore explained, typically the projected balance is for unexpected expenditures such as emergencies. He gave an example of hurricane expenditures or vehicle replacements as unexpected uses. He stated to refer to the budget documents specifically the financial policy that addresses fund balance and that the City, would not be reimbursed in the event of a hurricane emergency for 6 month to possibly up to 3 years in some cases. He stated that $5 million is a historical level and that the City has added additional amounts for the projection of employees retiring and receiving accrued leave payments. The City also analyzes the R&R account annually to replace the amounts that were spent. He said that the City would consider raising the reserve amounts for future increases in operational expenses, liabilities and capital projects. VI. Committee Training —Jennifer D. Cockcroft. Eso., BCS, Citv Attornev The City Attorney presented the Parliamentary Procedure Basics along with Ethics and Laws that apply to Citizen Advisory Boards. She clarified Roberts Rules that should be followed and gave some examples. The City Attorney asked if there were any questions that they would like to address. The Board discussed the procedures and rules on Roberts Rules. They reviewed nominations and motions and the City Attorney went over the procedure for nominations versus motions. There was a discussion regarding Parliamentary Procedure and requesting changes to the board agendas. The City Attorney explained the process on substantive changes and she gave some examples. The City Attorney also reviewed the Sunshine Law and presented examples. There was a discussion on public records and Sunshine Law among the Board. The City Attorney addressed social media, public and private webpages, and the difference of posting a favorable discussion, and what is unfavorable. She addressed ex parte communications and explained the rules and regulations. She then gave a presentation on key topics of ethics and law. VII. Next Scheduled Meeting Date (Mondav Mav 13, 2024) Mr. McGinn requested to participate via zoom. Mr. Hall requested an authorized absence for the May 13, 2024 meeting. PAGE 4 CITIZENS BUDGET REVIEW ADVISORY BOARD MARCH 4, 2024 VIII. Adiourn There 'n4NapNairman busi ss, Chairman Napier ad%'/our ed the meeting at 7:13 p.m. By: Date: �/ "/ ��7 rr y//{{ C-r Lax p-y ikptA(v, 2rVlCti\ PAGES