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HomeMy WebLinkAbout05172010Budget Workshop AgendaCITY OF SEBASTIAN CITIZENS BUDGET REVIEW ADVISORY COMMITTEE WORKSHOP AGENDA MONDAY MAY 17, 2010 6:00 PM CITY HALL 1225 MAIN STREET SECOND FLOOR CONFERENCE ROOM 1. Call Meeting to Order 2. Roll Call 3. Discussion Items Attached Memorandum Dated April 21, 2010 4. Adjournment Memorandum To: Budget Review Committee. CC: .Al Mintier, City Manager From: Ed Herlihy Date: 5/13/2010 Re: Meeting May 17, 2010 See you Monday night. Best regards, Ed Herlihy Please by to make our roundtable meeting at 6 PM on Monday, May 17 Attached is my memo from April 21" with sonie suggested topics. Please review them and bring your own topics for discussion. The new budget season is very close and we will. be busy through June and July. The better prepared we are, the easier the budget review process will be. Keep in mind that by early June, we will have an idea of where the assessed valuation is going, or how much it is shrinking. This will give us a better idea o.f the budget gap the City needs to fill. 7 Memorandum To: Budget Review Committee CC: Al Minner, City Manager From: Ed Herlihy Date: 4/21/2010 Re: Discussion items at next meeting Board Members: The Budcom will review the 2 °d quarter City budget on Monday, May 3 at 6 PM. I will ask for a "roundtable" setting on the floor of the Council Chamber so we are better able to hold a discussion. Please review the budget documents and bring your questions or concerns. On Monday, May 17 at 6 PM we plan a workshop session. I thought that it might be helpful if we spent some time discussing how we are going to approach the budget review process and some of the key factors that we should probably examine in detail. Keep in mind, these are my opinions only. We need input from the entire group to reach a consensus on how we will move forward. First, I thought it might be helpful to list some key points made by Ken Small from the Florida League of Cities at our March 3 meeting. 1. Sebastian property tax is well below state average. 2. Sebastian Police Department budget is about 110% of property tax levied. State average is 68 -70% 3. Sebastian has a low employee count. 4. Sebastian financial reserves (General Fund Reserve) very fair. Suggested reserve should be higher due to hurricane exposure. We need to talk up with taxpayers the Plant City story re sinkholes and effect on reserves. Briefly, during winter, heavy strawberry watering to keep frost away. This drew down ground water. Created big sinkholes. Had to use up City reserves to fix. No one expected this problem. Example of why keep reserves high. 1 April 21, 2010 5. Sebastian has good long range planning. 6. League projection that next two budgets are going to see more falling tax base (assessed valuation). Median sales price of homes still dropping. See Yahoo News article attached. Indian River County foreclosures are up drastically just as our real estate friends predicted last year. League also predicts that many commercial real estate loans are "resetting" and will go into foreclosure. 7. Sebastian needs to look at fee structure to see if raising fees is meaningful. With these items in mind and other important budget issues, I suggest we start reviewing how we are going to examine the following: 1. Discussion of possible property tax drop this year and effect on budget. 2. How do we examine the Police Department in light of its high budget versus property tax? 3. Examination of fee structures. 4. Cost of retirement programs: City and PD 5. Possible savings projected on upcoming union contracts. 6. Health care costs and amount employees contribute 7. Building Department and Growth Management costs 8. Discussion of General Fund Reserve versus tax rate. This is always a "tough issue How do we approach it and what do we recommend? Please review these thoughts and modify, change and add so we may all discuss how the Committee will operate this year. Remember, this is really going to be a tough year. Bring your ideas so we can plan for the next few months. Please mark your calendar for our meetings on Monday,May 3, 2010 at 6 PM in Council Chambers and Monday May 17, 2010, 6 PM in the 2 floor Conference Room of City Hall. This will be a "workshop" discussion. Best regards, Ed Herlihy Enclosure: 2 U.S. Cities In Free Fall Yahoo! Real Estate Page 1 of 4 Hi, Ed Sign Out Help YAHOO!. REAL ESTATE Find a Home Search for Homes U.S. Cities In Free Fall Francesca Levy, Forbes.com Apr 13th, 2010 Finance and Mortgage Neighborhood Info Guides and Advice My Real Estate Foreclosures Home Values Find a REALTOR® Sell Your Home Post a Rental Listing ARTICLE TOOLS; 1,2 Email article Printable view P IM article 61 Save to dei.icio.us Bookmark Economic indicators in these metros have gone from bad to worse, with no sign of recovery. Miami boasts a popular South Beach club scene, Art Deco Architecture, and perhaps the best Cuban food in the country. But residents don't have much else to celebrate. More than three years after the economy started its downward slide, the Miami metro area, like a handful of Sun Belt cities, still hasn't begun to recover. Median home prices in Miami have fallen 38% since its market peaked in the second quarter of 2007; the city's 11% unemployment rate is above the national average and has grown more than most of the 40 cities we surveyed. List: 10 U.S. Cities In Free Fail Cities in the "Sand States" of Florida, California, Arizona and Nevada, where overbuilding was rampant, are also in trouble, claiming nine of the top 10 spots in our list of cities in free fall. In Las Vegas. Riverside, Calif., and Phoenix, median home prices have fallen 50 44% and 37% from their respective peaks. Jobs are vanishing. Though country-wide, employers added 162,00 jobs last month, Riverside gained 13% fewer jobs in February 2010 (the latest numbers available by metro) than it did the same month three years earlier. Tampa, Fla., saw a 10% drop, and Los Angeles added 9% fewer jobs over the same time period. These cities are also slow to absorb their glut of unsold foreclosed homes, keeping recovery at bay. "These were highly speculative housing markets," says Jonathan Miller, president of Miller Samuel, a Manhattan -based real estate appraisal firm. "In the markets that have unloaded a lot of foreclosed housing stock there's still a lot more coming." Behind the Numbers To find the country's cities in free fail, we rated its 40 largest Metropolitan Statistical Areas (MSA) on six metrics. We ranked each MSA on the percent its median home price has fallen since its individual peak, using data provided by Local Market Monitor, a housing market data tracker. To get an estimate for the number of new homes being built, we used data from the U.S. Census Bureau, which tracks how many building permits are issued. Roughly 98% of these permits become new home starts. We looked at the percent change in new budding permits between February 2007 and February 2010. We also wanted to know how many people were moving in and out of these metros, since a growing population buoys a local economy. We used the Census Bureau's most recent population estimates to rank each metro on its net population change between July 2006 httn:/ /realestate.vahoo.com/promo /us- cities -in- free fall Search atilt Mail [Web Search ADVERTISEMENT For Professionals START PLANNING YOUR RETIREMENT AND GET UP TO $500 Searching for a new home? Preview locai listings from the Yahoo! homepago. Search Arlington Mortgage Rates Location Loan Amount Loan purpose Loan Type More at YI Real Estate Browse Homes For Sale Find Foreclosure Deals Search Rental Properties Buy vs, Rent Calculator Calculate how much home Insurance you need Find the value of any home What would my loan payments be? Loan Information Arlington, VA Purchase Fixed Top Rated Articles by the Experts Short -sale success strategies by Oian Hymer Mon, Mar 29, 2010 Sizing up purchase deposits by Oian HymerTue, Mar 16, 2010 Snow removal with a smile more... 4/16/2010 U.S. Cities In Free Fall Yahoo! Real Estate and July 2009. To judge each city's productivity we also ranked each metro on its per capita gross domestic product in 2008, the most recent year available, using data from Moody's Economy.com. Finally, we ranked the metros on the percent change in unemployment between January 2007 and January 2010 and the number of jobs they added between February 2007 and February 2010, with data from the Bureau of Labor Statistics. We averaged these rankings to arrive at a final score. Sunshine State Stagnancy Florida cities dominate our list, with Tampa, Orlando and Jacksonville joining Miami. Florida's real estate market keeps falling even as some herald the start of a rebound. The state's comparatively sluggish foreclosure process keeps those homes from getting easily flushed out of the market. Because every foreclosure must be approved by a judge, the procedure takes a minimum of five months to complete. in states with complex foreclosure laws, the recovery is clearly being delayed," says Mike Simonsen, CEO of Altos Research, a Mountain View, Calif. -based real estate research firm, who adds that lengthy foreclosures may be driving away real estate investors in these cities. A Trouble Spot in the Northeast Picturesque Providence. R.I., is the only New England metro on our list. Economically, its struggling far more than other dties in the region. Although Providence saw a slower three year increase in unemployment than some other major metros, it still has a high unemployment rate, at 14 The city also added 9% fewer jobs in 2010 than three years earlier. Workers are getting the message and leaving town. Providence is the only city in our top 10 to see a net loss in population. Grim News for the Golden State California cities are struggling too. Riverside, Los Angeles and Sacramento are suffering because of the knocks they took after their inflated housing markets began to plummet. Unemployment in the City of Angels has nearly tripled in three years, to 12 Riverside's unemployment has also ballooned, to 15 Meanwhile Sacramento saw a 75% drop in new building permits. These are troubling signs for Cali metros, but not surprising. The end of the state's home -price climb triggered more than just a housing slump. "9n California, so many jobs were concentrated in construction," says Michael Fratantoni, vice president of research at the Mortgage Bankers Association, the professional association for real estate financiers. "Jobs building single family homes wound up not being sustainable, and there were a lot of job losses." The long -term consequences of the housing crash in these cities are still playing out, and new factors that complicate a recovery keep cropping up. "Places like Phoenix and Riverside may take even longer to recover because people might just pick up and leave to go to places doing better," says Fratantoni. "It may make more sense to leave, rather than wait for jobs to return." Top 5 Cities in a Free Fall 1. Miami -Fort Lauderdale- Pompano Beach, FL Net Population Change, 2006 -2009: 1.47% Per Capita Gross Domestic Product $42,645.52 Change in New Building Permits, February 2007 February 2010: 77.46% Change in Unemployment, January 2007- January 2010: 202.70% Change in New Jobs Added, February 2007 February 2010: 9.68% Change in Median Home Price from Market Peak: -38% 2. Tampa Clearwater, FL Net Population Change, 2006 -2009: 2.33% Per Capita Gross Domestic Product: $42,562.92 Change in New Building Permits, February 2007- February 2010: 44.18% Change in Unemployment, January 2007- January 2010: 235.90% Change in New Jobs Added, February 2007 February 2010: -9.87% htto:/ /realestate.yahoo.com/promo /us- cities -in- free fall Loan amount Annual interest rate Term of Loan (months): Desired table display Powered by CalcXML See all calculators 51 (0-30) %j (1 -360) 360 yearly Page 2 of 4 L Submit Reset by Paul Bianchina Fri, Feb 19, 2010 Asbestos: how inspectors avoid trouble by Barry Stone Tue, Mar 23, 2010 L u See All Expert Advice 4/16/2010 U.S. Cities In Free Fall Yahoo! Real Estate Page 3 of 4 Change in Median Home Price from Market Peak: -32% 3. Riverside -San Bernardino Ontario, Calif. Net Population Change, 2006 -2009: 4.40% Per Capita Gross Domestic Product: $32,403.49 Change in New Building Permits, February 2007- February 2010: 65.69% Change in Unemployment, January 2007- January 2010: 177.78% Change in New Jobs Added, February 2007 February 2010: 12.94% Change in Median Home Price from Market Peak: -44% 4. Jacksonville, Ft. Net Population Change, 2006 -2009: 3.83% Per Capita Gross Domestic Product: $16,035.65 Change in New Building Permits, February 2007- February 2010: 66.09% Change in Unemployment, January 2007 January 2010: 227.03% Change in New Jobs Added, February 2007 February 2010: 7.74% Change in Median Home Price from Market Peak: -23% 5. Phoenix Mesa Scottsdale, AZ Net Population Change, 2006 -2009: 7.85% Per Capita Gross Domestic Product: $40,870.16 Change in New Building Permits, February 2007 February 2010: 83.61% Change in Unemployment, January 2007 January 2010: 148.65% Change in New Jobs Added, February 2007 February 2010: -10.01% Change in Median Home Price from Market Peak: -37% Click here to see the full list of Ten U.S. Cities to Free Fall Showing page 1 of 1 ARTICLE TOOLS: p`/.Email article *m Printable view 4ijr IM article fii3 Save to del.Kio.us Li.; Bookmark Next step: Search fo r a home.,. Search L o c ati o n City State or ZIP Price to Sponsored Links Live Forex Practice Account Practice Forex Trading in Real M arket Conditions with a Free Trial. www.GFTforex.cam 4.0% Fixed Rate Refinance 3160,000 Mortgage for $6331m o. Free. No Obligation. Get 4 Quotes. Mortgage Refinance. LendG o.com Mortgage Rates Hit 3.54% APR Obama Urges Homeowners to Refinance as Mortgage Rates Drop Again. www.SeeRefinanceRates.com Buy Stocks for $4 No Account or Investment Minimums. $50 Account Bonus! Don't mas out. www.sharebuil der.com Listing Type (what's this Homes for Sale Beds Any Baths Any Add Real Estate to Yahoo! Toolbar Browse by State or City Homes for Sale Apartments for Rent Home Values Mortgages Real Estate Agents Foreclosures Refinance Mortgage- Home Equity Loans Top Cities: Atlanta real estate Austin real estate Chicago real estate Denver real estate Houston real estate Las Vegas real estate Myrtle Beach real estate Orlando real estate Phoenix real estate San Antonio real estate San Diego real estate San Francisco real estate Seattle real estate Tucson real estate Top States: Arizona{ California Colorado Florida 1 Georgia Hawaii Illinois 1 Indiana 1 Maryland Massachusetts Michigan Minnesota 1 Missouri I Nevada Hide Options s httn:/ /realestate.yahoo.com/promo /us- cities -in- free -fall 4/16/2010