HomeMy WebLinkAbout09-16-2024 CC MinutesSEBASTIAN
(ENTEMNIA1 (REIEITION
1911.1911
CITY COUNCIL
SPECIAL MEETING
MINUTES
MONDAY, SEPTEMBER 16, 2024 — 6:00 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
Mayor Dodd called the Special Meeting to order at 6:00 p.m.
2. A moment of silence was held.
3. The Pledge of Allegiance was recited.
4. ROLL CALL
Mayor Ed Dodd
Vice Mayor Kelly Dixon
Council Member Fred Jones
Council Member Bob McPartlan
Council Member Chris Nunn
Staff Present:
City Manager Brian Benton
City Attorney Jennifer Cockcroft
City Clerk Jeanette Williams
Finance Director Ken Killgore
Asst. Finance Director Jennifer Smith
Building Director/Fire Marshal Wayne Eseltine
Community Development Director Alix Bernard
Community Development Manager Dorri Bosworth
City Engineer/Special Projects Director Karen Miller
Parks and Recreation Director Richard Blankenship
Contracts/Procurement Manager Jessica Graham
Public Works Director Lee Plourde
Airport Manager Jeff Sabo
Golf Pro Greg Gardner
MIS Manager Barbara Brooke -Reese
Police Chief Daniel Acosta
PUBLIC HEARINGS
Special City Council Meeting
1" Budget Hearing
September 16, 2024
Page 2
The City Attorney advised Council on the procedure in accordance with F.S.200.065 for
the millage and budget hearing and read the titles of Resolutions R-24-53 on the FY2024-
2025 tentative millage and R-24-54 on the FY2024-2025 tentative budget.
The City Manager announced that the FY 2024-2025 tentative millage of 3.1955 is
recommended, which in accordance with State Statutes is 7.02% higher than the computed
"roll -back" millage. These revenues will be applied to General Fund expenditures
projected for FY2024-2025.
A. Budget Overview of Tentative Millage and Tentative FY 2024/2025 Budget
The Finance Director gave a brief PowerPoint presentation covering the General Fund, the
Enterprise Funds, the Capital Improvement Program, and how the proposed millage will
affect property values. (See attached)
He said the budget was increasing 3.11 % over the amended 2024 budget due to pay
increases, new positions and a 2.5% increase in operating expenditures.
He went over the Enterprise Funds, Special Revenue Funds, and CRA Fund.
The certified taxable value increased 10.29% of last year, and 2.84% are additions to the
tax roll. He displayed a brief history of past tax roll additions.
He asked for approval of the tentative millage and budget resolutions.
In response to Council Member Nunn, the Finance Director said notwithstanding the state's
method of adopting a budget, the actual increase this year is about 7%.
Mayor Dodd opened the hearing at 6:14 p.m.
Grace Reed, Sebastian, said she thought the Finance Director, City Manager and staff did
a really good job with the budget. She noted that when people question what is being spent,
she has found the justification pages (starting on page 156) for all of the departments really
helpful.
There was no further comment and Mayor Dodd closed the public hearing.
B. Consideration of Resolution No R-24-53 Adonting the Tentative Millag_ a for
Calendar Year 2025
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY,
FLORIDA, ADOPTING A TENTATIVE MILLAGE OF 3.1955 MILLS FOR THE
CALENDAR YEAR 2024; PROVIDING FOR CONFLICTS; PROVIDING FOR
SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE.
Special City Council Meeting
I" Budget Hearing
September 16, 2024
Page 3
MOTION by Council Member McPartlan and SECOND by Council Member Jones to
approve Resolution No. R-24-53, set the millage at 3.1955 and set the second hearing for
September 25a'.
Council Member Nunn invited the public to obtain a copy of the budget if they are
interested in what the City is spending their money on.
Roll call: Vice Mayor Dixon - aye
Council Member Jones - aye
Council Member McPartlan - aye
Council Member Nunn - aye
Mayor Dodd - aye
Motion carried. 5-0
C. Consideration of Resolution No. R-24-54 Adootina the Tentative Budget for
Fiscal Year 2024/2025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN
RIVER COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGET FOR THE
FISCAL YEAR BEGINNING ON OCTOBER 1, 2024 AND ENDING SEPTEMBER 30,
2025; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING
EXPENSES, CAPITAL EXPENSES, AND FOR PRINCIPAL AND INTEREST
PAYMENTS ON INDEBTEDNESS OF THE CITY, IN THE CPT] S GENERAL FUND,
SPECIAL REVENUE FUNDS, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE
FUND, AIRPORT FUND, AND BUILDING FUND, AS PROVIDED FOR IN
SCHEDULE "A", ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE
CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR CONFLICTS;
PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE
DATE.
MOTION by Council Member McPartlan and SECOND by Vice Mayor Dixon to approve
Resolution No. R-24-54 adopting the tentative budget for Fiscal Year 2024/2025 and set
the second public hearing for September 25a'.
Roll call: Council Member Jones - aye
Council Member McPartlan - aye
Council Member Nunn - aye
Mayor Dodd - aye
Vice Mayor Dixon - aye
Motion carried. 5-0
D. Consideration of Resolution No. R-24-55 Adontine the Capital Improvement
Prop -ram for the Fiscal Years 2025-2030
Special City Council Meeting
I" Budget Hearing
September 16, 2024
Page 4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN
RIVER COUNTY, FLORIDA ADOPTING A SIX -YEAR CAPITAL IMPROVEMENT
PROGRAM FOR FISCAL YEARS ENDING 2025-2030; PROVIDING FOR
CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR SCRIVENER'S
ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE.
The City Manager briefly outlined each project listed on page 42 of the agenda backup.
There was no public input.
MOTION by Council Member Jones and SECOND by Council Member Nunn to approve
Resolution No. R-24-55 adopting the Capital Improvement Program for the Fiscal Years
2025-2030.
Roll call: Council Member McPartlan - aye
Council Member Nunn - aye
Mayor Dodd - aye
Vice Mayor Dixon - aye
Council Member Jones - aye
Motion carried. 5-0
E. Consideration of Resolution No. R-24-56 Adontine Financial Policies for Fiscal
Year 2024-2025
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY,
FLORIDA, ADOPTING FINANCIAL POLICIES GOVERNING VARIOUS AREAS OF
BUDGET AND FINANCE AS PROVIDED FOR IN A77ACIIMENT'W'; PROVIDING
FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING
FOR AN EFFECTIVE DATE.
Mayor Dodd said this is the first time the Council has considered changing the City's
reserve requirements as a matter of policy, and it would be changing the reserve
requirements for declared natural disasters from $5 million to $8 million. He asked the
Finance Director to explain how much damage was incurred by the last large storm and
how much was received in reimbursement from FEMA after that storm.
The Finance Director stated the most recent large storm was Hurricane Matthew which was
in 2016. He mentioned there was substantial dock work from that particular storm. The
City has an insurance policy to cover damage to docks, but the policy does not provide
much protection. The dock insurance policy is maintained in order to comply with FEMA
guidelines, but it is not enough to cover half of the actual damages to docks that are often
sustained in a storm. Excluding the dock work, he recalled there was approximately
$700,000 in debris cleanup.
Mayor Dodd expressed his appreciation for the breakdown of all of the reserve funds that
the Finance Director provided. If they agreed to keeping $8 million for natural disaster
Special City Council Meeting
l't Budget Hearing
September 16, 2024
Page 5
damages that would mean a total of $9 million in total reserves. Mayor Dodd said that is
a pretty hefty reserve and, in his opinion, perhaps more than necessary. He questioned
whether the Council should limit themselves by requiring the $8 million to be reserved for
storms since funds that are held in reserve cannot be allocated to other areas.
Council Member Jones was also unsure about committing to this high of a natural disaster
reserve as a policy. He said it might mean they would have to raise taxes on citizens to
generate funds to restore the required minimum reserve funds after a storm had come
through.
The City Manager pointed out that the Finance Director prepared spreadsheets showing
how well the City's finances would hold up by taking into account the varying percentages
(0%, 15%, 22%, and 33%) of damage that might be sustained after a storm. The increase
in the reserve from $5 million to $8 million was based on protecting the City's financial
status from going too far in the negative if there is a storm that damages up to 22 percent
of the City.
The Finance Director pointed out that paragraph D of Section VIII on Fund Balance
Policies (page 53 of the Agenda Packet) says that the target amounts should be established
and reviewed annually during the budgeting process. Paragraph D states that replenishment
of the natural disaster reserve target balance "will occur as soon as reasonably possible
without tax rate increases or further damaging the ongoing levels of service to the public"
but these decisions are still at the discretion of the City Council. This policy does not lock
the Council in, and he gave an example that replenishments to a fund could be made over
a few years.
Council Member McPartlan reminded the Council that the cost of everything has gone up.
He remembered another city that got hit so hard by a storm that they did not have money
to cover the damage, but said he could be happy with a natural disaster reserve of $7
million.
Council Member Jones agreed with $7 million reserve target.
Vice Mayor Dixon emphasized that she does not want the City to be caught wishing they
had left the reserve closer to $8 million. She agreed that costs have gone up and storms
have gotten stronger. She certainly does not want the reserve to be as low as $5 million.
Mayor Dodd asked for public input and none was given.
MOTION by Council Member McPartlan and SECOND by Council Member Jones to
approve R-24-56 Adopting Financial Policies for Fiscal Year 2024-2025 and setting the
storm damage reserve fund at $7 million.
Special City Council Meeting
I" Budget Hearing
September 16, 2024
Page 6
Roll call: Council Member Nunn - aye
Mayor Dodd - aye
Vice Mayor Dixon - aye
Council Member Jones - aye
Council Member McPartlan - aye
Motion carried. 5-0
F. Mayor Dodd announced that the final public hearing for the fiscal year 2024-2025
millage rate and the fiscal year 2024-2025 budget will be held on September 25, 2024 at 6
p.m. in the Council Chambers. Anyone who has questions or comments about the millage
rate or the budget is welcome to address the Council at that time.
19. Being no further business, Mayor Dodd adjourned the Special Meeting at 6:50 p.m.
Approved at the October 16, 2024 Regular City Council meeting.
Mayor Ed Dodd
ATTEST.-
J nette Williams, City Clerk
2025 Budget and Capital Program
Presentation on Tentative Millage and
2025 Budget
City Council First Hearing
Monday September 16, 2024
Prepared By:
Ken Killgore
Administrative Services Director/CFO
1
2025 Budget and Capital Program
Summary of General Fund Budget
Enterprise and Other Funds
Capital Improvement Program
Property Values and Millage
Other Considerations.
2
Draft FY2025 General Fund Budget
Versus Amended FY2024 Budget
$ 1,115,681 Personnel Costs1
98,312 Operating Expenditures2
(586,548) Capital Items and Projects3
$ 627,445 3.11% Budget Increase
1 8.5% Due to Pay and New Positions.
2 2.5% Increase.
3 Due to Several Items Transferred to
Project Funds for Better Tracking.
3
Draft FY2025 General Fund Budget
Personnel Up $1,115,681
Health Insurance Premiums Increase
of 12%.
Changing to HSA from a HRA Account.
Includes 5% Pay Increases.
Adding Four Full-time Positions.
(One of Those Is a Part-time Position
Being Changed to Full-time).
Draft FY2025 General Fund Budget
Personnel Additions/Deletions
Four Full-time Additions:
⚫Audio Visual Technician from Part-Time
⚫2 Maintenance Workers in Parks
⚫1 Recreation Coordinator in Parks
5
Draft FY2025 General Fund Budget
Operating Up $98,312
⚫Only a 2.5% Increase Overall.
⚫Almost Every Department Had Only a
Small Increase.
⚫Several Departments Operating Budget
Went Down.
6
Draft FY2025 Enterprise Funds:
Golf Course
Latest Draft has eliminated the projected
shortfall
⚫Adjusted revenues based on this year and
proposing rate adjustments in some fees
⚫$100,000 is Shown as a Repayment to
General Fund.
Same $30,000 for Restaurant Lease.
Airport Rent From $106,864 to $107,239.
$36,991 Principal and Interest on $700,000
Building Fund Loan.
7
Draft FY2025 Enterprise Funds:
Airport
Property Rental Revenue Expected to Increase With
Rental of Hangar D.
Loans From Discretionary Sales Tax Fund:
⚫Hangar A $285,000 –Balance $235,111 By 9/30/24.
⚫Hangar B $267,511 –Balance $210,111 By 9/30/24.
Grant Matching From DST Fund:
⚫In 2025, $197,520 For ½ the Construction of Taxiway
Golf and $45,000 For Design of the Terminal Apron
Expansion.
⚫Over the Following Five Years, $810,520 for the
Matching on ½ of Taxiway Golf, Construction of the
Taxiway Golf Apron, Taxiway Bravo Rehabilitation
and Construction of Terminal Apron Expansion.
8
Draft FY2025 Enterprise Funds:
Building
Permit Revenue Continues at High Levels
And Above Budget.
One Less Permit Technician is Budgeted.
Expecting $36,991 Principal and Interest
Payment on Golf Course Loans:
⚫$700,000 Loan Will Be $488,708 By 9/30/24.
⚫$559,684 Loan To Be Paid After the $700,000.
9
Draft FY2025 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.
⚫Have Switched Most of the Initial Projects
to Increased Cost of Road Work.
10
Draft FY2025 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.
11
Draft FY2025 Special Revenue Funds
Discretionary Sales Tax:
⚫Projecting Collections at 3.5% Annual
Increases for Future Years.
⚫Being Used for Road Reconstruction and
Associated Swale Work as Scheduled in
Current Paving Management Program.
⚫Also Funding: MIS Infrastructure, Police
Vehicles/Equipment, A/C Replacements,
Riverview Park Improvements, Major
Construction Vehicles/Equipment and
Matching Funds for FAA and FDOT Grants.
12
Draft FY2025 Special Revenue Funds:
Riverfront CRA Fund:
⚫Operating Expenditures:
Audit Fees, Administration, Working
Waterfront Improvements, 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.
Landscaping Will be Handled In-House
⚫Special Events Moved to General Fund.
⚫Working Waterfront Work Thru FY 26-27.
⚫Central Avenue Catalyst Site in FY 27-28.13
Draft FY2025 Special Revenue Funds:
Recreation Impact Fee Fund:
⚫Unspecified Improvements ($5K per Zone).
⚫Future Playground/Park Improvements:
24-25 Bryant Court Park.
25-26 Hardee Park and Schumann Park.
26-27 Community Center and Friendship Park.
27-28 Riverview Park.
⚫Projected 2025 Fund Balance is $102,376
Provided Revenue Estimates Hold True.
14
Draft FY2025 Special Revenue Funds:
Stormwater Utility Fund:
⚫Personnel and Operating Accounts Are
Exceeding the Revenue From Fees.
⚫Adding 5 Full-Time Maintenance Workers.
⚫Capital Includes:
A New Crew Vehicle.
Sliplining or Pipe Replacement.
⚫Expecting a Rate Increase in FY 24-25.
15
Draft FY2025 Special Revenue Funds:
Law Enforcement Forfeiture Fund:
⚫Used Only for Unbudgeted Items.
⚫Specific Items Need City Council Approval.
⚫Current Balance is $47,185.
Parking In Lieu Of Fund:
⚫Used for Providing Additional Parking.
⚫Current Balance is $116,514.
16
Draft FY2025 Trust Fund
Cemetery Trust Fund:
⚫½ of Sales on Operations and Maintenance:
Replacing Mowers, a Truck and Trailer.
Adding 2nd Well.
Reimbursing $150,000 to General Fund.
⚫½ of Sales Expendable on Expansions or
Cost Incidental to Adding Future Sites:
Funds Columbarium Niches in FY 26-27.
17
Capital Improvement Program
$42.6 Million Over 6 Years.
$10.9 Million Next Fiscal Year.
$2.4 Million Next Year Will Be Funded by
Grants, Which is 22%.
Largest Items for Next Fiscal Year:
⚫$ 3,110,000 Street Work.
⚫1,000,000 Improve Riverview Park.
⚫1,220,000 Stonecrop Drainage.
$ 5,330,000 Total of Largest Items
18
Property Values and Millage:
Certified Taxable Values
Total Certified Taxable Property Values
Increased $214,576,057 or 10.29% Above 2024.
⚫Additions Account for $59,143,508 or
2.84% of the Increase.
⚫Reassessments Were $155,432,549 or
7.45% of the Increase.
Rolled-Back is 2.9859. Used 3.1955 (Which is
Last Year’s Millage) for Draft Budget.
To Use Rolled-Back Millage Would Require Using
$462,686 of Reserves.
19
Property Values and Millage:
Taxable Value Additions
Dollar Value of Tax Roll Additions:
2024 59,143,508 2018 15,998,366
2023 84,817,696 2017 35,951,704
2022 47,981,095 2016 25,763,700
2021 32,716,715 2015 25,492,245
2020 33,685,698 2014 19,914,805
2019 23,351,814 2013 9,435,090
20
Different Millage & Affecting Factors
($462,686 Shortfall Without 3.1955)
21
Millage 3.1955 2.9859 3.1955
Percent vs. Rolled-Back 0.00%7.02%
Property Tax Revenues 6,395,718$ 6,591,283$ 7,053,969$
Incremental Difference 195,565$ 462,686$
Incremental Revenues 195,565$ 658,251$
Factors Affecting Added Revenues:
From Additions 169,533$ 181,433$
From Reassessments 445,542$ 476,817$
From Millage Change (419,509)$ 0$
Incremental Revenues 195,565$ 658,251$ Budget Shortfall 462,686$ $ 0
Same As
Last YearRolled-Back
DR-420
Last Year
Property Values and Millage:
Prior Year Versus Rolled-Back or Same Rate
3%On Homestead:10%On Others:_
3.1955 2.9859 3.1955 3.1955 2.9859 3.1955
ASSESSED VALUES $350,000 $360,500 $360,500 $350,000 $385,000 $385,000
TAXABLE VALUES $300,000 $310,500 $310,500 $350,000 $385,000 $385,000
TAXES $959 $927 $992 $1,118 $1,150 $1,230
CHANGE FROM ROLL-BACK ($32)$33 $32 $112
ASSESSED VALUES $400,000 $412,000 $412,000 $400,000 $440,000 $440,000
TAXABLE VALUES $350,000 $362,000 $362,000 $400,000 $440,000 $440,000
TAXES $1,118 $1,081 $1,157 $1,278 $1,314 $1,406
CHANGE FROM ROLL-BACK ($37)$39 $36 $128
ASSESSED VALUES $450,000 $463,500 $463,500 $450,000 $495,000 $495,000
TAXABLE VALUES $400,000 $413,500 $413,500 $450,000 $495,000 $495,000
TAXES $1,278 $1,235 $1,321 $1,438 $1,478 $1,582
CHANGE FROM ROLL-BACK ($43)$43 $40 $144
22
Millage Setting 19 Year History
At or Below Rolled-Back 11 Years -57.9% of the Time
23
Other Considerations
Prices Continue to Increase But How Long
Will Current Economic Levels Continue?
Setting Proposed Millage for the Trim
Notices at 3.1955 Will Be Advertised as an
7.02% Tax Increase.
Exceeding the Proposed Millage Is
Expensive and Delays Budget Adoption.
24
Conclusion
Staff Request You Approve the Tentative
Millage Resolution for Fiscal Year 2025
at 3.1955.
Staff Request You Approve the Tentative
Budget Resolution for Fiscal Year 2025
for All the City Funds at $44,981,122.
This Should Be Following Tonight’s
Public Hearing.
25