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HomeMy WebLinkAbout09072006 Special CfJ'( a ~~~ ="~V HOME OF PELICAN ISLAND MINUTES SEBASTIAN CITY COUNCIL SPECIAL MEETING THURSDAY, SEPTEMBER 7, 2006 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA PURPOSE: FIRST PUBLIC HEARING AND TENTA T1VE APPROVAL OF MILLAGE AND FY 2006-2007 BUDGET 1. Mayor Burkeen called the Special City Council Meeting to order at 6:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Present: Mayor Brian Burkeen Council Member Nathan McCollum Council Member Andrea Coy Council Member Sal Neglia Council Member AI Paternoster Staff Present: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams Finance Director, Shai Francis Police Chief, Jim Davis Human Resources Director, Debra Krueger Growth Management Director, Rebecca Grohall MIS Systems Analyst, Barbara Brooke Special City Council Meeting September 7,2006 Page Two 4. 1st PUBLIC HEARING AND TENTATIVE ADOPTION - PROPOSED MILLAGE AND TENTATIVE FY 2006/2007 BUDGET 06.100a A. RESOLUTION NO. R-06-18 - Proposed MillaQe Rate for Calendar Year 2006- Final Public HearinQ and Final Adoption Scheduled for September 20. 2006 (Finance Transmittal. DR 420 Certification of Taxable Value. R-06-18) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A PROPOSED MILLAGE RATE OF 3.0519 MILLS FOR THE CALENDAR YEAR 2006; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Manager stated that the budget presented tonight is as modified by Council at the August 16, 2006 budget workshop and that the millage proposed is at 3.0519 mills which is the rolled-back rate. Mr. Neglia suggested removing the reference to a mooring field in the amount of $20,000 from the capital improvements FY 2007 (page 137). The City Manager noted this is recreation impact fee funds and not ad valorem. Mr. Neglia asked about the Airport Manager position and the City Manager said an offer had been made with a starting rate of $61,000 and background checks were being conducted. Mr. Neglia suggested that reference be to "Historical Schoolhouse or City Hall" when referring to the project for the old city hall building. The City Attorney said there is a specific designation in the land marking and in the grant. In response to procedural questions, the City Attorney advised that the budget should be discussed first and once Council decides what changes should be made, it would then recompute the millage, adopt the proposed millage resolution and then adopt the tentative budget resolution. Ms. Coy asked if we are done with environmental issues relating to the Barber Street realignment project and the City Manager said we are not and Ms. Coy said perhaps this project could be held in abeyance. Ms. Coy asked why the "planner" cannot be referred to as "environmental planner" and the City Manager explained that part of the planning duties are separate from planning and will be partly funded from the Building Department. Ms. Coy asked where the "new park" would be and the City Manager noted this is for FY 2009 and has not been designated yet. Discussion took place on a proposed dog park and the City Manager suggested taking the $20,000 removed for a mooring field this year and designate it for a dog park. It was the consensus of Council to do this. 2 Special City Council - 1 st Budget Hearing September 7,2006 Page Two Mr. Paternoster recommended budget amendments to the FY 2007 budget as set out in the City Manager's memo that was prepared and e-mailed to all Council members at Mr. Paternoster's request on Friday August 25,2006 (see e-mail and memo attached) and then detailed it for Council: He cited his reasons for this as a large number of construction permits, and increased population and no increases in the number of workers in the last several years. He said in speaking personally with the City Manager it is not a true statement that the level of service will not suffer. Mr. Paternoster said increases for 22 supervisors will amount to $1,517,500 and we need to allocate funding to bottom end employees who are asked to respond to citizen concerns and for which there are the same number as there were five years ago. Mr. Paternoster asked the City Manager if he would say that 3.05 mills provides for a strategically prudent budget. The City Manager responded that he provided a budget that responds to the desires of Council to decrease taxes, to continue services and to get more bang for the buck and that in the past two years we have done more for less money because growth has paid. The City Manager went on to state, however, if Council continues this process of hitting rolled back, there would eventually be a diminishing point of return, but that he currently was not receiving complaints about unmaintained parks and increased crime. He further stated 3.0519 mills is a strategic budget but there could be a better rate; and that he created this budget based on Council's desire to go to rolled-back rate, and would have not brought it here if he thought there was fiscally unsound or not prudent. He said that taxation is clearly legislative, but that Council will hear from them if he does not agree with something. He said in his professional opinion, we are not there yet but his comment comes with a warning that we need to be cautious. Mr. McCollum said it was unfair to put the City Manager on the spot with these questions and should be a discussion among all five members. The City Manager said if he had a vote on Council he would have added some other legislative policies but that it is his job to try to feel out from input and sources that he has a compromise to five people who have different ideas and goals. Mr. Paternoster said he was mistaken by thinking it was the City Manager's job to prepare a budget for City Council who then would make the determination from that point. He again said he would recommend a 3.43 millage rate in keeping with his recommendations for budget amendment. Mayor Burkeen commended the City Manager for bringing a fiscally responsible budget and reminded everyone that when you bring on additional personnel there is a 20 year commitment, and that mediation will be non-binding. 3 Special City Council- 1st Budget Hearing September 7,2006 Page Four Carolyn Corum requested a motion by Council to put aside $50,000 this fiscal year for a dog park because there is currently a balance of $350,000 in recreational impact fees. She was advised that Council had put aside $20,000 this year for a dog park in place of a mooring field. Neil Lagin, School Crossing Guard, requested an increase in pay for Crossing Guards since they had not had an increase from their current $7.00 per hour. He cited Indian River County and Vero Beach salaries of $11.64 and $12.03. The City Manager said Crossing Guards are paid for three hours rather than the 2.5 hours they work. He said if Council wanted to increase up to $12.00 at their actual hours worked they would have to increase the budget by $12,000. The City Attorney advised that any changes be made in later motions. Eugene Wolff, Wimbrow Drive, recommended removing the $400,000 funded for Barber Street realignment because there is no hard data to show that it is necessary. The City Manager noted this is DST funds. Carolyn Corum agreed stating that if you straighten the road people will drive faster and hit scrub jays. MOTION by Mr. McCollum and SECOND by Ms. Coy to adopt Resolution No. 0-06-18 adopt the rolled back (proposed) millage. The City Manager stated this would be a millage rate of 3.0519. The City Attorney advised that whatever millage rate Council adopts, it will not be able to exceed it in the future for this year. Mr. Paternoster made a motion to amend the motion to recommend incorporating $12 per hour for crossing guards at their actual 2.5 hours ($19,000 additional in the budget per the City Manager calculation), a total of three new police officers, hire three new maintenance I workers, allocate 4% COLA and 3% step to CWA and exempt employees, return money to contingency so we don't have shortfall, put $230,000 back in stormwater for millage rate of 3.4301 plus for the crossing guards. He asked the City Manager why the salary for the Public Works Director was still in the budget and the City Manager said he had not brought someone on to date but it is best to plan for the position. Mr. Paternoster's motion to amend died for lack of a second. The City Manager corrected the proposed millage to cover Mr. Paternoster's recommendations and school crossing guard increases to 3.4428 mills. 4 Special City Council - 1 st Budget Hearing September 7,2006 Page Five The City Attorney advised that Council could change the budget at the next hearing, but it could not increase the millage once it votes on the proposed millage tonight and would have to find additional funding by cutting elsewhere in the budget. ROLL CALL vote on the motion to adopt Resolution No. R-06-18 passed 4-1 (Paternoster - nay) 06.100b B. RESOLUTION NO. R-06-19 - Fiscal Year 2006/2007 Tentative Budget- Final Public Hearing and Final Adoption Scheduled for September 20. 2006 (Finance Transmittal. R-05-19. Schedule A) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2006 AND ENDING SEPTEMBER 30, 2007; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS OF THE BOND AND OTHER INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT SERVICE FUND, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AND AIRPORT FUND, AND BUILDING DEPARTMENT FUND AS PROVIDED FOR IN SCHEDULE "A" ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. Mr. McCollum thanked Council for what it did and though he agreed with Mr. Paternoster on some of what he said, he has not heard any complaints from residents that we need more Public Works employees. He said he fully agrees on the increase for crossing guards. and we can go through the budget and find the funding to fund the increases. He suggested rather than directing the City Manager just letting him come back with a recommendation. The City Manager said it will probably be okay with the crossing guard increases and recommended keeping it at $28,000. Mr. McCollum said it is good to give the citizens a break this year. The City Attorney advised that by consensus Council could direct the City Manager to adjust the budget accordingly. Mr. McCollum further recommended allocating the additional funds and changing the mooring field to pet park. Ms. Coy totally agreed with the two changes and hitting rolled-back is a major achievement. Mr. Paternoster said he does not agree whole-heartedly and we need maintenance people out on the steet, that rolled-back rate is great but should be done with a little more responsibility. He said he thought his was better. Mr. Neglia said we did the right thing here tonight, and we have negotiations coming up with the employees and they'll do fine. 5 Special City Council - 1 st Budget Hearing September 7,2006 Page Six Mayor Burkeen said if we had an opportunity to pass along a rolled-back rate we should and it is a great accomplishment. Mr. Gilliams commended Council for getting a debate going and taking the time to go through the budget. He recommended against the planner position due to the fact that Planning and Zoning is considering cutting back their meetings, and the funding for that position could have been moved around to public safety and utility personnel. Judy Morrell, School Crossing Guard, thanked Council for the increase. On MOTION by Mr. McCollum and SECOND by Ms. Coy, Resolution No. R-06-19 was approved on a roll call vote of 5-0. 5. Being no further business, Mayor Burkeen adjourned the Special Meeting at 7:15 p.m. Approved at the September 27, 2006 Regular City Council Meeting. ~ .. ;;;5Z:--1. Brian Burkeen, Mayor ATTEST: ~~) (2)/1- Sally A5. MMC - City Clerk 6 Page 1 of 1 Sally Maio From: Alfred Minner Sent: Monday, August 28,20064:48 PM To: council Cc: Rich Stringer; Sally Maio Subject: Council Memeber Request On Friday, AI Paternoster asked for some specific information about the proposed FY 07 millage rate and what it could be provided some different spending plans. Because Councilman Paternoster's request was pretty specific and concerned a potential legislative policy, I put this into memo form and submitted to him. I am now sending a copy of this e-mail to you of the Council members. Should you have questions on the matter, please feel free to contact me at your convenience. AI Minner City Manager City of Sebastian 9/12/2006 TO: FROM: RE: DATE: AI Paternoster, Councilmember AI Minner, City Manager BUDGET INFORMATION REQUEST Friday, August 25,2006 At the Wednesday, August 16, 2006 Budget Workshop, the Council requested a proposal to add one new position (Environmental Specialist/Planner) and use other funds, as deemed appropriate, to balance the budget at the projected rollback millage rate of $3.0519. However, during those discussions, other potential modifications included adding a "third" Police Officer and additional Public Works Maintenance Worker I positions were considered. Yesterday you requested additional information concerning the FY 06-07 Budget proposal to consider adding the following items: ADDITIONAL ITEM AMOUNT REQUIRED $5,000 $63,178 $119,745 $50,400 $39,600 $277,923 Balancing the Budget with Full Contingency (Higher Balance Rate First Step 3.244) On Additional Police Office (3 Total New Positions) 3 Public Works Maintenance Worker I Position 7% Increase (4% COLA, 3% Merit) for CWA 7% Increase (4% COLA, 3% Merit) for Exempt TOTAL INCREASE The increase of $277,923 requires an increase millage rate of $0.1852. Remember too your request considers a "balance budgef. To balance the budget, $230,000 additional was transferred from the Stormwater Fund under the "No Pay-Back Option" and the contingency was reduced by $80,000. Therefore the additional $0.1852 mills must be added to the "original" balancing figure of $3.2449 mills. In short the millage rate to balance the budget with these additional items is $3.4301 vs. the rollback rate of $3.0519. Note that this proposal would return $230,000 to the Stormwater Fund. This money could stay in the General Fund and reduce the $3.4301 millage rate by $.1533 ($3.2765, ironically almost the original balancing rate $3.2449). Secondly, you also request a comparison of tax savings for the "Paternoster Tax Proposal". Below is that chart assuming a taxable house value of $200,000. TAX RATE HOUSE VALUE TAXES $665 $534 $600 SAVINGS 3.9325 $194,175 3.0519 $200,000 3.4301 $200,000 Note that the difference between $3.0519 and $3.4301 equals $66 $131 $65