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Home My WebLink About07132006 DRAFT~~ HOME OF PEt1CAN ISIAND 1225 Main Street, Sebastian, FL 32958 (772)589-5330 CITY OF SEBASTIAN CITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES July 13th, 2006 @ 6:00 p.m. 1225 MAIN STREET, SEBASTIAN 1. The Citizens Budget Advisory Review Committee Meeting convened at 6:00 p.m. 2. Richard Smith led the Pledge of Allegiance. 3. Roll Call: Adrina Davis Rick Villars -Absent John Oakes Richard Smith Thomas Burke Staff Members present: AI Minner, City Manager Shai Francis, Finance Director Mary Rosenthal, Acct. Clerk I/ Recording Secretary 4. Announcements: a. Election of Chairman John Oakes made a motion for Richard Smith to be named the Chairman. Adrina Davis seconded the motion and all members were in favor. b. Election of Vice Chairman Richard Smith made a motion for John Oakes to be named the Vice Chairman. Thomas Burke seconded the motion and all members were in favor. 5. ~groval of Minutes of July 20, 2005 Meetina: Richard Smith made a motion to accept the July 20, 2005 minutes; Adrina Davis seconded the motion all members were in favor. 6. New Business: AI Minner gave a power point presentation on the FY 2006/2007 proposed budget overview. In this over view Mr. Minner discussed a range of topics including property taxes, roll back rate, reserve levels, general fund revenue projections, major expenses in the general fund, special revenue debt services CIP fund review and enterprise funds. Centerpiece of this years proposed budget is to try to achieve roll back. The current millage rate is 3.9325; the projected roll back rate is 3.0519 due to the assessment increase. Variables: a. CWA collective bargaining agreement, in the process of negotiating with our CWA union (Public Works Employees) on a new contract, the contract expires on Sept 30, 2006. b. Health care cost at a 15% fee increase. Equals about 11% net cost increase. John Oakes raised the question to we have more than just one RFP (Request for proposal for health & dental insurance) or just Blue Cross Blue Shield. AI Minner responded that our broker is looking across the market at some other firms. Thomas Burke raised the question of health care cost being as high as a 25% increase and wanted to know a rough estimate of what that would net out to. AI Minner responded that our current cost this year is $985,000, projected cost are 1.1 million that's a 15% increase, I would add another 10% to that equating to another 100,000 to 200,000 thousand dollars. John Oakes stated that there was no increase in health care cost last year. AI Minner responded "that is correct there was a decrease on health cost last year". Mr. Minner discussed the health care for employees. We pay 100% of health care. Thomas Burke stated for public clarification -the city is paying 100% of health care coverage, but the employees still have to pay co-pays, and out of pocket costs. Mr. Minner gave options to balance the budget i.e., a temporary freeze on the contingency reserve policy, use reserve funds, no equipment purchases at this time and no more positions other than the ones agreed upon (2 patrol officers and a part time code enforcement secretary. Mr. Minner discussed the maintenance of the swales including clearing debris, mowing developed areas as well as undeveloped lot swales and spraying the bottom of the ditches three times a year, to keep the vegetation down to help the flow line, this will be a special aquatic spray that is eco-friendly. Thomas Burke noted that this was a directive from the City Council to get the swales maintained. Mr. Minner said that yes this has been a goal of the city to get all the swales in good shape. Mr. Minner stated that the County said no to the 911 system, but we need a New console dispatcher system. The question was raised that if we will still have same dispatch system, why do we need new console to keep it operating as it is now. What is wrong with the one we have. Chief Davis explained that this would be a redundant system (doubling the system) Summary of the budget by Mr. Minner: WE will see some type of millage reduction, good revenue trends, the total general fund expense only increased 2% that's this year compared to our estimated expenditures, we have a solid plan for the ditches and swales in the future, there will be more discussion on major capital projects but we have strong sources to do that, which all equals healthy revenues in your special revenue funds. Richard Smith asked if the GIS system that growth management is requesting going to be incorporated into the building department. And will the GIS help with record keeping in building department. He would like to see more departments under same system. Mr. Minner agreed that and stated that he would see if the building fund could share in the cost of the GIS. Richard Smith recommended an efficiency survey be done to see if more departments can get under this same umbrella. Mr. Minner discussed personnel changes; Debra Kruger has taken the position of Human Resources Director, and will bring some of her finance responsibilities over with her. Other significant changes are the passing of Terry Hill, Jim Sexton and Jason Milewski leaving. I think there are some efficiencies we can wrap together. Merging the airport into public works and have someone manage the airport and public works. Jerry Converse the interim director of Public Works and Linda Kinchen have done an excellent job since Terry's passing. We need to take time to decide what is best for the organization before filling this position. Chief Davis answered questions concerning the Captains position stating that we are considering the position but it would be later in the year. For a budget adjustment we left this position opened since FY 2004/2005. Thomas Burke stated his concerns about the gas and oil expenditures increases not being adequate, the budget is showing about a 5 to 10 % increase and the rumors are $4.00 per gallon. Where is that money going to come from, obviously the PD would be one of the departments affected. Mr. Minner stated that he was confident with the numbers and felt that if conservation guidelines needed to be implemented to help with keeping the expenditures from rising. Thomas Burke questioned the 11,500 dollars budgeted for electric when the engineering department moves to the airport. Mr. Minner explained that he applied the new City Hall FPL utility rate on the airport administration building. John Oakes discussed the employees working in dispatch and the need to hire some part time people to take the stress off of the full timers. He asked that this be strongly considered. Mr. Oakes also would like the chairman to consider positions for the police department; he feels that we need to narrow the gap ratio of officers to residents to get closer to the national average. Members Recommendations to Council: Richard Smith made a motion to recommend to the City Council the adoption of the 2006/2007 budget presented by the City Manager with the understanding that certain modifications will need to be made for the CWA negotiations and health care cost which will impact the millage rate and that our recommendation concerning the GIS system, police patrol, dispatcher positions and gasoline expenditures be reviewed by the City Council and that they ultimately consider these recommendations. Adrina Davis seconded the motions and all members were in favor. 7.) Adjourn Mr. Smith made a motion to adjourn the meeting at 7:30 P.M. All were in favor. Richard S. Smith, Chairman Citizens Budget Review Committee Approved at the Citizens Budget Review Committee Meeting 2006 / ~ ~' :~? ~^ /- ~ ~ L(-~ ~~ ,-~- ~~-L ~~~ ~~. ,_