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Home My WebLink About08162005 Workshop ~ HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL FY2005/2006 BUDGET WORKSHOP TUESDAY, AUGUST 16,2005 - 6:00 P.M. MINUTES CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. The Mayor called the workshop to order at 6:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Present: Mayor Nathan McCollum Vice-Mayor Brian Burkeen Council Member Andrea Coy Council Member Lisanne Monier Council Member Sal Neglia Staff Present: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio MIS Systems Analyst, Barbara Brooke Airport Director, Jason Milewski Building Director, Wayne Eseltine City Engineer, David Fisher Finance Director, Shai Francis Golf Course Director, Greg Gardner Human Resources Director, Jim Sexton Police Chief, Jim Davis Police Lieutenant, Bob Lockhart Police Lieutenant, Greg Witt Roads and Maintenance Superintendent, Jerry Converse Parks Superintendent, Chris McCarthy Cemetery Sexton, Kip Kelso City Council Budget Workshop August 16, 2005 Page Two 4. FY2005/2006 BUDGET A. Citizen Budaet Review Advisorv Board Report - Chairman Smith Richard Smith, Chairman of the Budget Review Advisory Board, thanked staff for their support, described the function of the Board, and reported on the Board's consensus. He stated it is a good budget but expressed concern for health insurance costs, and recommended against abolishing the skateboard park positions. He thanked Council for the opportunity to serve and announced that he was not eligible to serve next year, having completed his 6th one year term on the board. B. Budaet Presentation/Overview - City Manaaer The City Manager thanked Finance staff and other staff members who assisted him in preparation of the budget; and then presented a power point program (see attached). During the presentation he cited a proposed millage of 4.176 mills. He stated that if Council is determined to go to rolled-back rate of 3.6996 mills it could do so, but it would have to make additional cuts from what is proposed tonight. He cited reductions in health care coverage based on a recent bid received for Blue Cross Blue Shield coverage, and said that additional information will be provided to City Council at its August 24, 2005 regular meeting. He warned Council that the $373.21 proposed per employee for fiscal 2006 will most likely jump up next year. He offered information on four recommended millage rates and advised Council it must decide what policy it wants to follow to arrive at the millage of choice. (see figures in the attachments) He discussed issues "on the bubble" including an AN coordinator which could ultimately cost $26,000 by moving money funded for current contract services, and separating out money for equipment related to audio-visual in the amount of $65,000. In response to Mayor McCollum, the City Manager reiterated his four recommendations for millage by explaining the slide entitled "Health Care Costs Savings": He explained that the 4.176 millage recommended wouid have cost $350,000 cash from reserves which will balance out in future years with increased revenues. This proposal was based on projected health care costs, but now due to health insurance and comp reductions there is an additional $607,000 in the budget. He said Council could payout $347,295 in the budget, could take the $262,000 and put it in the bank or reduce taxes further or apply it to reducing millage even lower to 3.9325 but there will be no other money for any other programs. He went on to say that if Council wants to get to rolled- back they would will have to spend $262,000 to get to 3.6996. 2 City Council Budget Workshop August 16,2005 Page Three He reiterated that if Council stays at 4.590 mills there will be $1 million free dollars; if it goes to 4.176 there will be $466,000; if it goes to 3.9 it will balance out; and if it goes to rolled-back of 3.6 it will cost $262,000. He defined "spending" as taking funds out of unrestricted reserves or cutting from the proposed budget. In response to Ms. Monier, the City Manager advised that if you tax at 4.590 mills you generate $5.166 million; if you tax at 4.1 millage you generate $4.7 million; if you tax at 3.9 you generate $4.4 million; and if you tax at 3.6 mills you generate $4.1 million. TAPE 1- SIDE 117:05 p.m. Mayor McCollum said homeowners are seeing gas rates, utilities and various taxes going up and at some point people need help, and it is incumbent upon Council to give them a break this year. Mayor McCollum suggested discretionary sales tax funds (DST) be used to purchase anything allowed to help drop the millage; and the City Manager cited page 172 and said all purchases that can be made with DST money are already provided for. He used the City Clerk purchases as an example and said those two capital items do not qualify for DST funding. The City Manager said DST funds can be used for asphalt when in conjunction with a capital improvement project. Mayor McCollum called recess at 7:12 p.m. and reconvened the meeting at 7:20 p.m. All members were present. In response to Mayor McCollum, the City Manager said the two ways to get to rolled- back rate with the proposed budget and not affect current operations would be to eliminate all proposed positions and find another $10,000 which could come from tennis court expenses or Council could go to cash carry forward and spend about $262,000. He said however, Council will have to decide as a policy is rolled-back where we need to be, and is it worth it if next year we will have to look at increases. Mayor McCollum asked if any Council member is interested in increasing their $50 expense account at this time. There was nO interest in an increase from any council member. The City Attorney advised on the Save our Homes amendment and its effect on taxes. The City Manager said a taxpayer with a $150,000 home less homestead exemption, would pay approximately at 3.6 mills $462; at 3.9 mills $ 491; at 4.1 mills $ 522; and at 4.5 mills $573. 3 City Council Budget Workshop August 16, 2005 Page Four In response to Mr. Burkeen, the City Manager said there is about $30,000 of working room to compromise on the options for coming back to rolled-back rate. Mr. Burkeen noted that travel and per diem has almost doubled in the majority of the departments. The City Manager said this is an area that has to be watched but cutting in this area will not bring a vast overall savings, and continued education is an important issue to consider. c. Deoartment Questions 2. City Manaaer - No questions. 3. City Clerk/Council Mr. Neglia asked what the savings would be for the part-time recording secretary. The City Clerk said she did not have the exact figures, and the Finance Director said staff believes there would be a savings in salary and benefits for staff that currently attends meetings. 4. City Attornev - No questions. 5. Finance/MIS Mayor McCollum said it was a goal of Council during building of the new city hall to have an audio-visual person to broadcast committee meetings. He asked if it was possible to combine the MIS position and audio-visual position into one. The City Manager said the MIS position is needed; and the AN position is needed and the AN position will have more of an impact with the public. Mayor McCollum said if the scope is narrowed to just broadcasting meetings and not going out into the community and producing programs this could be accomplished. The City Manager said it would be cheaper to have the AN position than the MIS position. The Finance Director said the MIS position is needed. Mayor McCollum again stated he would lean toward the AN position. Ms. Coy said she would like to go for both positions and possibly look at cuts elsewhere, because $26,000 for the AN position is not a lot, otherwise she would agree with combining the position. It was decided to address this issue later on. 4 City Council Budget Workshop August 16,2005 Page Five 6. Human Resources - No questions. 7. Police Deoartment Ms Coy said she was very impressed with what Sebastian is able to accomplish with fewer officers as shown in the presentation, but expressed concern for putting an officer in the MACE unit earlier this year, and suggested reducing the requested officers from three to two and pulling the MACE officer back if needed. Chief Davis said the three officers in the proposed budget would put the City at 1.9 officers per 1000 residents, noting he had originally asked for twelve officers. He said calls for service have increased, and to maintain the same level of service an increase in personnel is needed. He said there are times that there are more calls coming in than there are officers to respond. Mayor McCollum expressed concern for increased personnel costs such as uniforms, etc. on top of the approved 8.5 % increases. Ms. Monier said she agrees with increased personnel, but said the marine patrol is a little on the iffy side in this community and asked if we really need a new truck to pull the boat. The Chief said it was the garage that recommended not using the vehicle currently being used; and it was noted that DST funds were being used to fund the truck. Mr. Neglia asked if perhaps a vehicle trade can be made with the canine jeep, and use the vehicle as the canine unit. Mr. Neglia asked what we do with radios we replace, and the Chief responded that there is replacement schedule, most are eight years old and they are moved down the line to other personnel. The Chief said a redman suit is a protective suit made of rubber, and is used for defensive tactic training and to teach youngster to fend off attackers. The City Manager said radios and vehicles when no longer useful are taken to auction and taken off the fixed assets list. 8. Enaineerina/Stormwater The City Engineer said when Engineering Administration moves to the Airport it will pay a lease to the Airport. 5 City Council Budget Workshop August 16, 2005 Page Six 9. Roads & Maintenance/Parks/Cemeterv It was noted that the increase in utility expenses was based on gas cost increases, and some minor increases in facility costs and the fund was under budgeted last year. Jerry Converse explained the equipment purchases, based on lessons learned from last year's storms. The City Manager explained the role of the proposed Recreation Leader. Discussion took place on tennis court revenues and whether there is a real need for tennis court attendants. Ms. Coy noted there is a deficit in the amount of $108,000 per year and recommended paving them over with asphalt using DST funds. The City Manager reported that since June 13th $1,203 was collected in tennis court revenues. He said Council is probably looking at a difference of $55,0000 for overall expenses for the tennis courts. The Parks Superintendent said recreation programs make money in the wintertime, and suggested annual memberships. The City Manager said we might be able to look at using recreational impact fees for fencing at Riverview Park, and the gymnastic roundabout. Mayor McCollum said there might be another $75,000 for survey fees for Laconia Street extension that can be cut, based on Council's action at next week's meeting. 10. Growth Manaaement The Finance Director said there was only enough budgeted last year for the director to attend training and there has been enough provided at this time for other staff members. 11. Buildina Department The City Manager said the Environmental Committee had recommended an Environmental Inspector and that although he did not recommend it he included it on the unfunded position list. The Finance Director said the 3% administrative fee for collecting the county impact fee is shown in the budget and will be split between the Building Enterprise fund and the General fund. It was noted it is shown on page 159. 6 City Council Budget Workshop August 16,2005 Page Seven The Building Director said there are five cell phones in use in his department. 12. Golf Course No questions. 13. Airoort The Airport Director responded to questions about his position requests. 6. PUBLIC COMMENTS Adrina Davis objected to eliminating skateboard park positions. In response to Ms. Coy, the City Attorney said the City is subjecting itself to more liability by retaining attendants. Mr. Davis expressed concern about increased vandalism, and lack of supervision. Mary Ann Kreuger, said she was supportive of the budget, of meeting broadcasts, the Police Department, school resource officers, and marine patrol, but asked Council to give consideration to the Environmental Inspector. Mayor McCollum said the City is expending approximately $200,000 on the schools with the school resource officers. 5. COUNCIL COMMENTS/DIRECTION Mayor McCollum noted items that remain to be addressed are the MIS/AV position, police officer position requests, tennis court and Friendship Park attendants, skateboard park attendants, and the $75,000 for Engineering which will have to wait for next week. MIS and AN Position Mayor Mccollum - combine positions into one and have MIS focus on meeting broadscasts and not worry about other public programming at this time Ms. Monier - combine positions with AV as priority and rest of time focus on MIS MIS duties Mr. Burkeen - agreed with Monier and McCollum Ms. Coy - would like to see both positions but could agree with combining Mr. Neglia - agree with combining AN and MIS positions and if it doesn't work outlook at it again next year 7 City Council Budget Workshop August16,2005 Page Eight Police officers Mayor McCollum - can only support one position Mr. Burkeen - agree with Chief's recommendation for all three positions as req uested Mr. Neglia - go along with two positions beginning in October Ms. Coy - two full time positions this year Ms. Monier - agree with three positions as requested Mayor McCollum said he would be willing to go with two full-time positions starting in October. The City Manager said he will come back with an AN position, no MIS, and two police officer positions. Mr. Burkeen asked if he would throw in the numbers for the other police position and he said he would but they would not be in the official numbers. Mayor McCollum corrected him noting that Council's consensus was for a combined AN/MIS position. It was noted that the current proposed budget already has the numbers for the Y, police officer position. Ms. Coy said she needed more information on the tennis courts and skateboard park. She asked for an approximate cost to asphalt the tennis courts with DST funds. The City Manager said it would be approximately $40,000. The City Attorney said he would have to check to see if DST funds could be used for this. Mr. Burkeen suggested cutting other positions to save funds. It was noted that $75,000 discussed earlier would be from local option gas tax and would not affect the millage. Ms. Monier advised that Council stay with the proposed 4.1 so that there are additional funds in the budget to provide swale maintenance and other projects and services. The City Manager said there would be $2.1 million in unrestricted funds if everything stayed on course at the end of fiscal 2006. He reminded Council that if we go to rolled-back this year, rolled-back rate will be even less next year. He advised Council that if it goes with 3.9 with the Alv and police officer change, there would be about $40,000 to spare, which can be thrown into contingency. He said the estimate for a swale contract will be approximately at least a half million dollars so the $400,000 in there now might be a little low. Mayor McCollum said he would not support drawing money from reserves to fund going to rolled-back rate; and he supported a millage rate of 3.9325 mills. 8 City Council Budget Workshop August 16. 2005 Page Nine Mr. Burkeen reiterated his suggestion to eliminate the other requested positions. Mr. Neglia asked if there was the possibility of coming up with other savings to get to rolled-back rate. The City Clerk said the combined AN/MIS position would free up about $8,000 in her contractual services line; if the part-time recording position is not funded, overtime costs in other departments will have to be increased; and noted that the City auditors had strongly recommended the third MIS position. The City Manager said Council could still stay at the 3.9 with a full-time MIS and a full time AN position and two officers, with subtle little changes to the proposed budget because of the $40,000 left over. It was also suggested that the AN position could be a contractual services agreement rather than a city position. Ms. Coy - 3.9325 Mr. Burkeen - 3.6996 Mayor McCollum - 3.9325 Ms. Monier - 4.176 Mr. Neglia - 3.9325 There was a majority for 3.9. The City Manager said he will start crunching numbers based on Council discussions. Mayor McCollum asked what the city would pay back in interest if it had to borrow money on a short term loan, and the difference between what would come in on a 3.6 and a 3.9 millage. The Finance Director said she did not think it wise to borrow money to balance the budget. Ms.Coy asked for a consensus of Council to submit a nomination for Sally Maio as the Florida League of Cities Cities of Excellence Award for City Clerk of the Year, and she will work with the City Manager and Human Resources to submit all the documentation. On MOTION by Mr. Neglia and SECOND by Ms. Coy, the item was added to the agenda for action on a voice vote of 5-0. 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