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HomeMy WebLinkAbout08-19-2024 BAC MinutesSEBASTIAN BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING AUGUST 19,2024 I. Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. 11. Pledge of Allegiance was recited by all. 111. Roll Call Present Mr. Hall Ms. Cerda Mr. Napier Not Present Ms. Reed (a) Excused Mr. Newhart Excused Mr. Middleton Excused Mr. McGinn (Zoom) Mr. Hoffman Mr. Killgore stated that at the last meeting Mr. Middleton was not listed in the roll call. He was not present, but he was excused from that meeting. IV. Approval of Minutes: Meeting of July 15, 2024 Everyone having had a chance to review the Minutes from July 15, 2024, Mr. Napier called for a motion. A motion to approve the Minutes as presented from July 15, 2024, except for the change as noted above regarding Mr. Middleton's excused absence, was made by Ms. Cerda, seconded by Mr. Hoffman, and approved unanimously via voice vote. V. Review and ADDroval of 3rd Quarter Financial Report Mr. Killgore stated that in the agenda packets there is the Agenda Transmittal Form that goes to City Council. Also in the packets is the City Resolution that they approve to authorize the budget changes that are listed on the exhibit. On the exhibit there are only three adjustments that actually need approval. There were expenditures out of the R & R account. The other changes that the Council and the changes that the City Manager has approval to authorize are also listed on the form. Mr. Killgore reviewed the General Fund Report. The revenues and expenditures are in very good shape. The forecasted General Fund balance by the end of this year is right CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MINUTES OF REGULAR MEETING AUGUST 19,2024 at the $8 million level, which is what was projected to carry forward predicated on the current year budget. Mr. Killgore reviewed the Stormwater Fund report and the three Enterprise Fund reports. The Airport Building Fund and Stormwater Fund have projected fund balances close to what were estimated. The Golf Course Fund is a bit short because we did not carry forward the amount of funds that was thought would be carried forward from last year. Mr. Killgore reviewed the rest of the reports. He said it is noteworthy to look at the balanc-eg-diat were siie-rit and encumbered -compared -to what were listed as -Total Project Budgets. Total Project Budgets were $25 million, which is approximately 67% of the amounts that were appropriated. Most of the remaining is for three projects involving street repaving and reconstruction and improvements at Riverview Park. Mr. Killgore stated that, regarding the Quarterly Investment Report, he did notice an error just before this meeting. At the bottom of the report where is listed Interfund Loans Due from the Golf Course, the October 21 s', 2023 balance was $430,000.00, not $465,000.00. Mr. Killgore stated that the balance of the reports was information provided by the various departments, and he called for questions/comments. Mr. Hoffman asked regarding the General Fund Balance Forecast. Was the Financial Disclosure Opposition the State's effort to put full disclosure on City Council and everyone? Mr. Killgore stated that is correct. Regarding the Interfund Loans Report, he asked if the City has any other loans outstanding to third parties. Mr. Killgore stated that there are a few lease -purchase types of arrangements, but there are no more loans with a bank for the building, etc. He stated those are totally paid off. Mr. Hall asked regarding closing out the IT server, whether the City Manager has approval authority for that level of spending._ Mr. Killgore -said the approval Ieve1-for the. --CiqManager is $15,000.00, and it has to be a budgeted item for his appropriation. Thus, if it is budgeted, the City Manager still has to go to City Council for approval for $15,000.00 or more. There was discussion among Mr. Hall, Mr. Killgore, and Ms. Brooke -Reese regarding this item. Mr. Napier spoke regarding the Unencumbered Fund Balance of $7,764,000.00. He asked what the City's reserve policy is. Mr. Killgore said the City has had a $5 million number that has been present for years. It is akin to a minimum cash balance. There have been some additions to it where about $340,000.00 was appropriated for long-term retiree payouts. The loan from the Golf Course is part of that fund balance as an asset, not cash. Mr. Napier stated that it his opinion that rollback would be a better number CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MINUTES OF REGULAR MEETING AUGUST 19,2024 to appropriate, and he thinks the City is building up the reserves without a plan to spend it. Mr. Hall agreed. Mr. McGinn is happy with the report, but he agrees that the Fund Balance is more than necessary. There was more discussion among Mr. Napier, Mr. McGinn, Mr. Hoffman, and Mr. Hall regarding this item, and Mr. Killgore said he will send the Committee members a report on this. VI. 2025 Budoet Update Mr. Killgore reported that City Council did set the proposed millage for 2025 at 3.9155, which is the same as the prior year. Staff is still working on the draft budget, and staff will present a budget package for the first public hearing on Monday, September 16th. September 25 th will be the final reading of the resolution setting the final millage and approving the budget, the capital program, and financial policies. He added that he is working on the financial policies, and he will send all the Committee members an informational copy when he sends the report to City Council. Mr. Napier said he thinks the financials look great, and the City is in good shape, and he is satisfied with the numbers. Mr. McGinn asked if any of the open items that appeared earlier in the summer have resolved themselves. Mr. Killgore said staff is working with the City's insurance broker on the insurance renewals. Also, there is the group insurance for the employees, which he thinks has been settled, Mr. Hoffman asked regarding interest income on the bank accounts, is that allocated. Mr. Killgore said yes. There being no further business, Chairman Napier adjourned the meeting at 6:37 p.m. By: Date: <? Aa 0 Harry Hall, 2fairman