HomeMy WebLinkAbout08222011Budget WorkshopHOME OF PELICAN ISLAND
SEBASTIAN CITY COUNCIL
MINUTES
FY2011/12 BUDGET WORKSHOP SPECIAL MEETING
MONDAY, AUGUST 22, 2011 - 5:30 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
1. Mayor Hill called the Budget Workshop to order at 5:30 p.m.
2. The Pledge of Allegiance was recited.
3. ROLL CALL
City Council Present:
Mayor Jim Hill
Vice -Mayor Don Wright
Council Member Andrea Coy
Council Member Richard H. Gillmor
City Council Absent:
Council Member Eugene Wolff (excused)
Staff Present:
City Manager, Al Minner
City Attorney, Robert Ginsburg
City Clerk, Sally Maio
Administrative Services Director, Debra Krueger
Building Director, Wayne Eseltine
Community Development Director, Joseph Griffin
Finance Director, Ken Killgore
Police Chief, Michelle Morris
Public Works Director, Jerry Converse
PW Administrative Supervisor, Linda Kinchen
Fleet Supervisor, Gregory Schmidt
Cemetery Sexton, Kip Kelso
MIS Senior Systems Analyst, Barbara Brooke -Reese
City Council Budget Workshop
August 22, 2011
Page Two
4. BUDGET COMMITTEE RECOMMENDATION — Mr. Ed Herlihy
Citizens Budget Review Advisory Board Chairman, Ed Herlihy, reported to City Council
on behalf of the Board, cited the number of times the Board met and reviewed data and
powerpoint presentations provided by the City Manager and staff, said when 77% of the
general fund is personnel it is hard to make recommendations, commended the City
Manager for management cost reductions, noting a Board member said there is no more
room for change or reductions in this budget, discussed the effect of health care
changes, noted that collective bargaining agreement negotiations continue, and that the
Police retirement is an issue that has to be brought under control.
Mr. Herlihy then briefly reviewed:
CIP — stating some projects are delayed due to lack of funds and the City Hall telephone
system replacement is much needed; and said the Board approved the CIP overall
Enterprise Funds:
Golf Course - need more rounds to increase revenues
Airport — is short of cash, looking for more tenants, and will pay off its debt in the near
future
Building Department — slight increase in activity, and stated there is 5 to 7 years before
cash is exhausted
He closed by saying FY `12 will be the tightest budget ever, the Board concurs with
staying at the current tax rate of 3.3041 mills, though they doubt it can continue and
there is little doubt going forward we will most likely need a tax rate increase.
Mayor Hill thanked the Budget Review Advisory Board for their hard work.
5. FY2011/2012 RECOMMENDED BUDGET
A. Budget Presentation /Overview — City Manager
The City Manager said Debra Krueger and Ken Killgore are invaluable assets to the City,
thanked Nancy Veidt for her hard work on the proposed budget, and commended
department heads for managing operation costs and for doing more with less, noting it is
hard to find any shortcomings in the budget out in the field, that all employees are doing
more with less and are quality people, streets are being improved, medians look good
and we continue to produce.
He gave a power point presentation (see attached), stating that a balanced budget has
been achieved by reorganization of City departments, not filling vacated positions, and
reduced health care costs, though there are shortcomings with continued furlough days,
no merit or COLA and lack of long term capital replacement, loss of CRA funds. He
reviewed the previously shared ABC Budget plans recommending going with Plan A
which represents the recommendations in the proposed FY 12 budget. He said Mr.
Wright had recommended he mark this chart in resolution format later to show the public
the direction in which we are going.
The City Manager discussed two capital issues for the Golf Course, repair of the
irrigation system at an estimated cost of $750,000 and Club House renovation at an
estimated cost of $2.25 M, suggesting consideration of a slight increase in play cost to
fund it only in peak season to fund the improvements.
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City Council Budget Workshop
August 22, 2011
Page Three
Mr. Gillmor suggested Mayor Hill offer his expertise on the Golf Course issues.
Mayor Hill said the irrigation system is a no brainer, because of its adverse effects on
play and costs for repair, but on the club house he had a different train of thought though
he would favor complete both projects simultaneously for less disruption to the Golf
Course.
Ms. Coy said the CIP shows the clubhouse in FY 16/17.
The City Manager recommended if Council is serious about this the item, it be
agendized to discuss some detail, poll and get some feedback from users of the Golf
Course, look at different financing sources, and task him with looking into it.
Mr. Wright said he would like to see some turnaround in the economy and reach some
specific goals like 70 K rounds played before we into another bond, would not want to
use general funds, perhaps schedule for five years out and if the economy changes we
can move forward. He said Council had talked in the past about increasing Golf Course
rates $1 and people were screaming, was not optimistic it would be looked upon
favorably and we have to be very careful with this.
Mayor Hill said he would not commit general fund revenues to this but does not limit
Council from looking at options, and Council could have the City Manager go forward
and bring back some kind of numbers and bring them back for Council to look at.
The City Manager recommended maintaining the 3.3041 millage rate.
Mayor Hill asked for public input at this time and there was none requested.
B. Department Questions (See Recommended Annual Budget Document)
There were no questions asked in regard to any department.
6. PUBLIC COMMENTS
See above.
7 CITY COUNCIL COMMENTS /DIRECTION
Being no further comment, Mayor Hill thanked all staff, the Budget Board, Management
team and Council on a proposed balanced budget with no increase in taxes.
8. Being no further business, Mayor Hill adjourned the Workshop at 6:07 p.m.
Approve at the September 14, 2011 Regular City Council meeting.
Jim H
ATTEST:
Sally A. Maio, MM — City Clerk
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