Loading...
HomeMy WebLinkAbout08232010WorkshopSEBASTIAN CITY COUNCIL FY2010/2011 BUDGET WORKSHOP MONDAY, AUGUST 23, 2010 5:30 PM AGENDA CITY COUNCIL CHAMBERS, 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor Gillmor called the Workshop to order at 5:33 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Present: Mayor Richard H. Gillmor Council Member Andrea Coy Council Member Eugene Wolff Council Member Don Wright City Council Absent: Vice -Mayor Jim Hill (excused contacted after meeting) Staff Present: City Manager, Al Minner City Clerk, Sally Maio Administrative Services Director, Debra Krueger Airport Director, Joe Griffin Building Director, Wayne Eseltine Finance Director, Ken Killgore Golf Course Director, Greg Gardner Growth Management Director, Rebecca Grohall MIS Director, Frank Losardo Police Chief, Michelle Morris Deputy Chief, Greg Witt Public Works Director, Jerry Converse Public Works Administrative Supervisor, Linda Kinchen Parks Superintendent, Chris McCarthy MIS Systems Analyst, Rob Messersmith 4. FY2010/2011 PROPOSED BUDGET an OF HOME OF PELICAN ISLAND A. Budget Presentation /Overview City Manager The City Manager gave a thirty minute power point presentation on the proposed FY 10 -11 Budget currently set at $22,463,859, and announced the first public hearing on the budget and millage will take place on September 13, 2010. The power point presentation is attached in its entirety to these minutes. City Council Budget Workshop August 23, 2010 Page Two The City Manager asked how Council wished to proceed at this point of the workshop. Mr. Wolff asked the City Manager to elaborate on his comments about sustainability issues and the City Manager responded that we need to look at personnel costs in general, that we cannot expect to continue with furlough days and no increases into the future, though the current economy lets us get away with it for now and for a couple more years. He said without future growth we will have to keep a keen eye on where we are in regard to raises, compensation and public safety employees, though in the short term for FY 2011 -2012 we are okay. Mayor Gillmor asked Ed Herlihy, Chairman of the Citizens Budget Review Advisory Board if he wanted to speak. Mr. Herlihy spoke on behalf of the Board, citing the recommendation for the higher tax rate to raise the $230,000 needed to get the City's maintenance situation under control. He said a long term concern is the police retirement situation regulated by FS 185, noting in 2020 the cost to the City to support it could be over $2M per year and we can't afford it. He said this year the City will receive just under $4M in property taxes and the pension could be close to half of the City's tax revenue. He noted the pension is an unfunded mandate from the State and it will take legislation to change it. Mr. Herlihy reiterated the Budget Board thought it important to raise the $230,000, then cited a trip to Virginia with his son who was seeking a home, comparing an 895 square foot house they looked at with an asking price of $525,000 and annual tax of $5100 with the City's low taxes and said, though we want to keep taxes low, we have to operate the City. He commended the City Manager and staff for a great job on the budget. Mayor Gillmor said he was not a fan of going through the budget line by line but it was up to Council. He said he had some questions, but most have been answered. Ms. Coy agreed line by line was not necessary, and said we will have two hearings. Mr. Wright suggested simply following the agenda, and said he had general comments but would hold until the end of the agenda under Council Comments item 6. Mayor Gillmor then called for public comment unless anyone on Council wanted to go line by line. It was the consensus of Council they did not want to do that. None. B. Department Questions (See Proposed Annual Budget Document) 5. PUBLIC COMMENTS Damien Gilliams, 1623 US 1, said he came prepared to address the agenda as it was advertised in the paper and on the City website and now Council is changing it, and asked if this is a new policy of the Mayor or was it the consensus of the board. Mayor Gillmor said it was the consensus of the Board. Ms. Coy said she supported it and Mr. Wright said he did not need additional input from Department heads because their information was in the packet, and the process had his support. The City Manager said the Department questions item was for questions from Council. 2 City Council Budget Workshop August 23, 2010 Page Three Mr. Gilliams said then as he understands it we are done with the Department heads for the evening and they can go home. Mr. Wright explained the item says "Department questions" and it is for questions to the Department Heads from Council members and Council had no questions so they followed the agenda and moved on to Public Comment. Mr. Gilliams said then why don't we put off the whole agenda and stated we don't put it on TV anymore. He said he knew Council was going to raise taxes, that when property taxes go down Council looks for a reason to raise the millage rate and asked them to leave it alone and let people recoup. He said it is because they can't find any place to cut the budget, suggested contracting out the Planning and Zoning Department, said Council is not getting the job done and is cutting into reserves, that people are losing jobs and the process is not fair the way they are doing it. He said he can go through line by line and find cuts, said Council needs to get creative and find additional revenues like the State and other counties are doing. 6. COUNCIL COMMENTS /DIRECTION Mayor Gillmor asked if this budget, they are looking at, was put together before the last CIP Workshop, and the City Manager said it was. Mayor Gillmor said, for the record, on page 142, under Roads and Special Projects, the City hall parking /landscaping in the amount of $50,000 should not be there. The City Manager said the CIP projects within the budget will be modified prior to final CIP approval and the budget hearings. Mayor Gillmor asked for clarification that the money for the dog park is for creation of a new park within the grounds next to the dog park. The City Manager said the money is slated for other improvements in and around the dog park area. Mayor Gillmor said there has been concern we are putting more money into the dog park and is just for people with dogs, and that is not the case. The City Manager said it could be interpreted that way but was not the case, and the purpose is to improve the entire Keene Terrace Park with more amenities. Mr. Wright noted Keene Terrace Park is a seven acre park and the dog park is located only on one acre and the remainder of the park is not getting enough use. Mr. Wolff asked what generates building a restroom in a park, whether a formula or was it that three or four people called. The City Manager said there is no magic formula and in this circumstance it is based on public input and a request from the Parks and Recreation Committee. Mr. Wolff asked if the park is underused, why are we installing a restroom. Mr. Wright said he meant the other area doesn't get the use it would if we improved it. Mr. Wolff asked if there has been any communication with the community and people in adjacent homes, noting restrooms in parks have advantages and disadvantages. The City Manager responded staff will go through design and location phases, then to Parks and Recreation and Planning and Zoning, if needed, and then to City Council. Mr. Wolff said we may want to consider keeping the restroom near the dog park area for public safety. Ms. Coy asked if there had been any complaints about the dog park from the community, and the City Manager responded he had one. Ms. Coy noted that people who use the dog park point out their homes to her when she is there. 3 City Council Budget Workshop August 23, 2010 Page Four Mr. Wright asked about the budget for MIS broadcast equipment in relation to broadcasting over ATT UVerse. He expressed concern about the 3 to 5 year planning for data processing equipment, noting in economic times we can only rely on one year in a budget. He said we need to find out what equipment we need to tie into ATT for broadcasts through UVerse, so that before we make a final decision on computer and broadcast equipment we know their requirements. The City Manager said ATT sent a package with ten questions for staff to answer and staff had submitted answers back to them, and he will provide information to Council prior to the September 13 budget hearing. Mr. Wright noted ATT is picking up lots of new customers in the community and we will not be able to reach everyone. Mr. Wright cited page 160, the current airport budget, asking that since fuel sales recently changed, why was the proposed budget the same as the 2009 airport budget. The City Manager responded that Council has not officially transferred the fuel sales yet, therefore we budgeted for the airport as normal. He said FDOT has requested more information and justification on the leasing out the fuel sales and Sebastian Aero notified the City today that they do not want to move forward with that process right now, so fuel sales is on hold. The City Manager said Sebastian Aero does want to move on the t- hangar proposal which will come back to Council but should not affect the budget. Mr. Wright cited page 15, local option gas tax and asked what caused the spike, and the City Manager responded it was the bond payoff and bond refinancing. Mr. Wright said the graph in the presentation depicts to him that the Building Department is no longer an enterprise fund and we should look at a way to re- categorize it because it is a service we provide and not an enterprise fund. He further said it is always tough to not provide raises to employees, but we need to be cognizant of the fact that average wages in IRC in private employment are $30,000 to $35,000 and there are many schools, cities and hospitals, semi government groups we support with taxes who are making the highest salaries in the County, higher than private employees and the balance has gotten out of control and needs to be looked at carefully. He said he does not expect to see a turn around in the next couple of years. Mr. Wolff said this needs to be qualified because a teacher with a Masters earns about $33,000, and Ms. Coy responded only if one is lucky enough to get one of the full -time positions. Mr. Wolff said to say County institutions such as hospitals, school board positions make higher salaries needs to be qualified. Mr. Wright said you need to look at average salaries overall, for teachers, County Commissioners, municipal employees with substantial salaries, that starting salaries have gone up in the past few years and if we look at police salaries and retirement benefits we have to have a new reality and look at the ability of people to pay. He said people are having a tough time and we can't go back to giving out high salaries and benefits, that he doesn't see continued increases going forward, and that in many areas of the country constant increases are bankrupting cities. Mayor Gillmor cited page 152, Golf Course expenditures, and asked about promotions in the amount of $250 and advertisements in the amount of $5,000. The Golf Course Director responded promotions was for items such as hats and towels, and shirts for fundraiser give 4 City Council Budget Workshop August 23, 2010 Page Five aways, and $3000 of the advertising was for phone books, and the remainder for 7 or 8 coupon books, local hotel guides, radio ads, etc. Mayor Gillmor said we are one of the only public golf courses in Indian River County and it makes sense we would want to advertise to pump up attendance. Mr. Wolff asked the Golf Course Director if he had goals or new programs to get to 70,000 rounds, noting that is a challenge in this economy, and stating the Golf Director operates one of the finest golf courses in the County. The Golf Course Director said rounds will improve if we have good weather and if the economy improves a little bit, noting people tell him they are reducing play due to the economy. He said they have partnered with the non profit Indian River Golf Foundation and other programs to bring in new golfers on a local basis. Mr. Wolff suggested a live webcam on the course. Ms. Coy thanked the Citizens Review Advisory Board and all City directors involved in the budget process. She commented on the Go -Line, that as much as she wanted this service, she found out that Fellsmere and Sebastian are the only municipalities that provide funding for the County -wide service, and she was unsure as to why other cities are not paying. Mayor Gillmor asked the City Manager to display pg 190 of the proposed budget on the overhead, which shows millage rates have continuously decreased since the 1990s when the millage was 6.90 mills and now has been at 3.3456 mills for the last three years. He said for those who say we are raising taxes they should look at this, and said Council is not talking about increasing the millage. Ms. Coy said while talking to ATT why not ask them their plans for their ugly building on US 1. Mr. Wright said the Art Festival group is going to contact them to improve the appearance of the building, however, Ms. Coy said she was not merely thinking of a sculpture because the building is just ugly and it would not hurt to get ATT to contribute. Mr. Wolff questioned the MIS Director about vendor mandated software upgrades and the MIS Director responded that occasionally vendors require upgrades to their software, though not frequently, and there is no way around it because they are sole source. Mr. Wolff asked about the $75,000 for broadcast upgrade and the MIS Director responded that it is planned for automation for servers and converters for broadcast communication and programming, and will have a shelf life of approximately five years. Mr. Wolff asked about the increase in Police Department Detective Division internet services and Chief Morris responded it is an upgrade of air cards for mobile laptops. Mr. Wolff cited page 52, and said City Council proposed budget shows an increase, and the City Manager responded that the proposed FY 11 budget is actually down from the current FY 10 budget, but up $25 from projected for FY 10. Mr. Wolff asked what City Council is doing as a Board to show unity with fellow City workers who are taking furloughs, and how Council could overhead and spending. He said he had asked the Finance Director to extrapolate on what effect a furlough would have on City Council pay and had been told it would amount to one of Council's paychecks. He asked Council to offer up a paycheck and put it back in the City coffers, and then offered his most recent paycheck back to the City. 5 City Council Budget Workshop August 23, 2010 Page Six Ms. Coy said that was very nice of Mr. Wolff, but she would have to think about it, noting she attends several additional committee meetings which costs money and sometimes she has to lose time at work, as do other members of Council, and asked what meetings Mr. Wolff has attended other than Council meetings. Mr. Wolff said any meeting he has been asked to attend he attends. Ms. Coy listed the meetings attends that are mandated. Mr. Wolff said he would like to see that in writing, and that she was trying to put him on the spot and she could simply ask the constituents if he was doing his job. Ms. Coy said this has been on her mind for years and she cannot remember any boards for which he was a primary member. Mr. Wolff said he did not recall her nominating him for anything. Mr. Wright asked that they both get back to topic. Mayor Gillmor said if we want to mirror what is done with City employees, a furlough day would amount to $15 out of a Council paycheck and if $15 will help the City he would be glad to donate his $15 back to the City. He said if members all throw in $15, we can buy the chili for the chili cook -off, which they put in themselves last year. Ms. Coy said this Council has not had a raise in a long time, and has not been reaping benefits of 3 or 5% increases and with what she is required to do, she is not throwing in a whole paycheck. She said it was commendable of Mr. Wolff to offer his paycheck, but she is not returning her paycheck because the little they receive in compensation barely covers what they are required to do. 7. Being no further comment, Mayor Gillmor adjourned the Budget Workshop 7 p.m. Approved at the September 8, 2010 Regular City Council meeting. ATTEST: f Sally A. Maio, MME/— City Clerk 6 DATE EVENT March 3rd Kick Off Revenue Review w/ Ken Small March May Department Head Submittals Mai September M inager /Admin Srvc Preparation/Refinement February St11 May 3rd May 1- t11 June 141i Jul' 12th Buftet C E st 23rd September 13th Sepptem 22nc1 Council Workshop Council lst Hearing Council 2nd Hearing'Final Adoption CITY COUNCIL FY 2010 -11 BUDGET WORKSHOP MONDAY, AUGUST 23, 2010 an/ HOME OF PELICAN ISLAND PREPARED BY AL MINNER CITY MANAGER BUDGET PROCESS Special Revenue Fund $5,074,010 22% FY 2010 -11 PROPOSED BUDGET $22,463,859 Airport Fund $395,070 2% General Fund 510,454,340 46% FY 2010 -11 BUDGET PRESENTATION OVERVIEW Building Department S465,740 2% Debt Service $1,460,410 7% •Special Revenues (CIPs) •Enterprise Funds •General Fund •Strengths and Weaknesses •Questions and Answers Golf Course Fund $1,332,789 6% Capital Improvement Projects 53,281,500 15% SPECIAL REVENUE, DEBT SERVICE AND CIP FUNDS CITY OF HOME OF PELICAN ISLAND SPECIAL REVENUES Discretionary Sales Tax $2,349,593 Local Option Fuel Tax $689,463 Recreation Impact Fee $475,000 Stormwater Utility Fee $1,138,977 Community Redevelopment Agency $298,942 53,000,000 $2,500,000 $1500,000 $1,000,000 $500,000 $600.000 $500,000 $400,000 $300,000 $200,000 5100,000 Discretionary Sales Tax >City Hall Debt Payment ($1,030,681) D 1 A Round Swale Improvements ($450,000) DAP Hangar II Loan ($295,000) Police car Replacement ($276,500) >MIS Broadcasting Equipment ($75,000) ➢Stormwater Master Plan ($50,000) >Munis Upgrade ($25,000) FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Recreation Impact Fees >Barber Street Sports Complex Field Expansion ($125,000) >Lift Station Riverview Park ($100,000) >Riverview Park— Street Parking ($100,000) >Bark Park Additions ($75,000) >Riverview Park Pavilion ($50,000) >Riverview Park Irrigation ($25,000) FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 $1,600,000 $1,400,000 $1200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 5300,000 $200,000 5100,000 FY2002 Stormwater Utility Fee FY2003 FY 2004 FY 2005 FY 2006 >Series 2003 Debt Payment ($438,877) Transfer to General Fund ($500,000) ➢Equipment Purchase ($200,000) FY 2007 FY 2008 FY 2009 FY 2010 Local Option Gas Tax FY 2011 ➢FY 2010 Refinancing Note ($264,463) >Street Lighting ($200,000) Transfer to General Fund ($175,000) ➢GoLine 2nd Year ($50,000) FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 DATE ISSLUED AMOUNT PROJECT RETIRE DATE PAY IENT BALANCE 2003 $11,621,000 City Hall 2018 $1,030,681 $6?15,000 2003 $5 Stonnwater 2022 $439,035 $3,785,000 2010 $2,- 162,000 Road Projects 2021 $26 -1,463 $2,294,000 1998 $2,435,000 Golf Course RETIRED $0 $0 0600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Community Redevelopment Agency FY2001 FY2002 FY2003 FY2004 FY2005 ➢Operating Expenditures ($39,259) ➢FSL Program ($30,000) Special Events ($36,468) >TRF to General Fund ($60,000) Billboards ($15,000) Parking Study ($30,000) Waterfront Renovations ($200,000) FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 DEBT SERVICE ENTERPRISE FUNDS $1,800,000 $1,600.000 $1,400 000 $1,200.000 $1,000,000 $800,000 $600.000 $400.000 $200.000 $0 QTY OF HOME OF PELICAN ISLAND ENTERPRISE FUNDS Golf Course FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 ENTERPRISE FUNDS Golf Course ENTERPRISE FUNDS Airport Golf Course General Fund ➢AP /GC /GF Relationship >Develop Plan Whereby /Airport Increases Cash by Reducing Personnel Costs ✓GC Maintains Rates and Quality Services through Reductions in AP Rent (GF Needs Additional Personnel ➢Plan Implementation Fails Due to Shortage of Revenue in GF >Continue to Examine in Future ENTERPRISE FUNDS ENTERPRISE FUNDS Building Department ➢Building Recession Continues ➢Total Elimination of 6 Positions 50% Reduction in Workforce Estimate Losses Through FY 2011 •FY 2007 $427,275 •FY 2008 $212,176 •FY 2009 $159,430 •FY 2010 $131,584 •FY 2011 $111,290 120 100 80 60 40 20 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 ($200,000) ENTERPRISE FUNDS Building Department RESIDENTIAL COMMERCIAL A 0 y Oh Oh 05 0 A 6 0 A S�' 0 0 0 0 O^ 0 0 0 0 0 0 0' p 0 9 p 0 0 0 0 8 i ,s? „..5> �y e; A 5 0� es.' c1 A z d" c\ c@ 5 e� d" cY a 5 p m v F 4 4> P4 PR O es P S d' v pA Cf e P OJ' C x� P a� e a F o e ENTERPRISE FUNDS Building Department FUND BALANCE SUGGESTED BALANCE FUTURE TREND FUTURE REQUIREMENT FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 120 100 80 60 40 20 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 ($200,000) ENTERPRISE FUNDS Building Department RESIDENTIAL COMMERCIAL A 0 y Oh Oh 05 0 A 6 0 A S�' 0 0 0 0 O^ 0 0 0 0 0 0 0' p 0 9 p 0 0 0 0 8 i ,s? „..5> �y e; A 5 0� es.' c1 A z d" c\ c@ 5 e� d" cY a 5 p m v F 4 4> P4 PR O es P S d' v pA Cf e P OJ' C x� P a� e a F o e ENTERPRISE FUNDS Building Department GENERAL FUND CITY OF HOME OF PELICAN ISLAND Budget Goals Goals: Low Tax Burden Maintain High Quality Services Continue to Invest in Quality Capital Improvements Provide for Employees with a Competitive Wage /Benefits (Economy's Effect) SETTING THE MILLAGE RATE REVENUE.EXPENSES CITY OF HOME OF PELICAN ISLAND Long Term Forecast at $3.3456 Mills 26,326 (149,1771 (150,895) (107644) (58,018) (6,575) 46,857 102,344 FY 10 FY 11 (-15X) FY 12 -5X) FY 13 FY 14 FY 15 (.3X) FY 16 (.3X) FY 17 (.34X) FY 18 (.9X) Estimated Reserve 5,096,901 5,039,206 5.039,206 4,890,02E 4,739,134 4,631490 4,573,473 4,566,898 4,613,755 Assess Value 9162.421,127 974,525,138 925,798,881 925,798,88 953,572,848 982,180,033 1,011645,434 1.041.994797 1,073254,641 MiOage Rate 3.3456 3.3456 3.3456 3.345E 3.3456 3.3456 3.3456 3.3450 3.3456 Taxes 3,760.487 3,122,353 2,952,485 2,952.485 3,040,760 3,131,682 3,225.333 3,321,793 3,421,147 Utility Service Tax 2,484,200 2,607270 2,672,452 2,739,262 2,807,745 2,877,938 2,949,887 3,023,634 3,099,225 State Shared Revenue 1.838,715 1.836.540 1,882,454 3929,518 1.977.753 2,027.197 2,077,876 2,129,823 2,183,069 Franchise Fees 1,378,974 1,450,085 1,486,337 1,52349E 1,561,583 1,600,623 1,640.638 1,681,654 1.723.695 Other Revenue 1,385,300 3438,092 1,650,000 1,650,000 1,650,000 1.050.000 1,650,000 1,650,000 1.650.000 TOT GEN FUND REVENUE r 10.847.676 10.454,340 $13643,727 10.794.759 11,037.840 0 11287340 11.543.734 11.806.904 0 12.077.136 Personnel 8,282,240 8,170,190 8,205,915 8205,915 8 8,205,915 8,402,857 8,599,799 8,803467 9,007,863 Operations 2,461134 2,266,350 2,306.989 2,306,98E 2206,989 2.306.989 2,306,989 2,306,989 2.306,989 Capital 77,976 17,800 75,000 75,000 75,000 75.000 75,000 75,000 75.000 Health Cate Cost Increase 55.00000 57,750.00 60,637.50 63.669.38 66,852.84 70,195.49 73.705.26 End Furlough Days 150,000.00 300.000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 COLA/Meritlncrease 196.941.96 196,94196 201,668.57 206,395.17 211.23522 TOT GEN FUND EXPS 10.821.350 10.454.340 10.792.904 $13945,654 11.145.483 4 11.345,457 11.550.309 11.760.047 11.374.792 SETTING THE MILLAGE RATE REVENUE.EXPENSES CITY OF HOME OF PELICAN ISLAND Long Term Forecast at $3.3456 Mills 26,326 (149,1771 (150,895) (107644) (58,018) (6,575) 46,857 102,344 DATE EVENT F rch 3rd Kick Off Revemie Review wI Ken Small March May Depaifiillent Head Submittals September City Miina '/Arnim Srvc Preparation/Refinement February 8th May 3rd May 17th June 14th July 12th Bucl2et C st 23rd September 13th September 22nd Council Workshop Coilncil -1st Hearing Council 2nd Hearing/Final Adoptions General Fund At A Glance 15% Decrease in Total Taxable Property New Total Assessed Value $974,525,138 Big Three Revenue Sources 86% of General Fund Property Taxes $3,122,353 Utility Taxes $4,057,355 State Shared Revenue $1,836,540 REVENUES BIG THREE 86% General Fund Expenses CITY HOME OF PELICAN ISLAND MAJOR EXPENDITURE HIGHLIGHTS •Total General Fund $10,454,340 •Personnel Costs $8,170,190 78% •Operating Expenses $2,266,350 22% •Capital Expenses $17,800 <1% •Renewal and Replacement Fund $0 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $3,500,000 $3,000,000 52500,000 $2,000,000 51,500,000 51500500 $500,000 $0 $0 Major Revenue Sources "Big Three" 86% of General Fund Property Taxes Utility Franchise Taxes State Shared Taxes 1 H ti ti ti ti ti ti ��h ti %fib ti '1+� 53,005,949 Operating Expenses (Down 26% $739,599 Since FY 06) $2,984,066 $2,824,350 $2,808,158 52,468,634 FY 2005 $4,222,022 Includes Storm Expenses $2,266,350 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 160 140 120 100 80 60 40 20 0 Full -Time Employees 19% Reduction Since FY 2007 FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 Personnel Modifications •Hiring Freeze Continues (w/ Exceptions when Necessary) •Merit and COLA Increases Frozen >PEA Contract Negotiations Summer 2010 TA >PBA Contract Negotiations Summer 2010 TA >Management •12 Furlough Days All Employees ($300,000) •5 Positions Reduced through Attrition ($275,000) •Health Care Contribution ($75,000) ➢$25 Per Month PEA and Management ➢$50 Per Month PBA (Retirement Contribution 24 Budget Strengths and Weaknesses CITY OF HOME OF PELICAN ISLAND Budget Plan Weakness "The Shell Game" Local Option Gas Tax Transfer $175,000 Should Be $50,000 Future Maintenance 2010 Refinancing Bond Stormwater Fund Transfer $500,000 Should Be $395,000 Stormwater Improvements $230,000 or 3.5940 Mills +0.2484) to Balance Special Revenue Funds Airport /General Fund /Golf Course Relationship Renewal Replacement No Budget Budget Plan Strengths Reasonable Fees and Taxes (Continued Tax Reductions) Continuation of Services w /Out Significant Public Impact Aggressive Planned Capital Program Good Long Term Planning Detailed, Transparent Budget Review Process Weighed Carefully Budget Ramifications Tax Policy Operation Expenses Revenue Options Long Term Sustainability QUESTIONS AND ANSWERS CITY OF HOME OF PELICAN ISLAND FY 2010 -11 BUDGET PRESENTATION