HomeMy WebLinkAbout09192011Budget HearingOWO
HOME OF PELICAN ISLAND
SEBASTIAN SPECIAL CITY COUNCIL MEETING
BUDGET HEARING
MINUTES
MONDAY, SEPTEMBER 19, 2011 — 5:30 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
1. Vice Mayor Don Wright called the Special Meeting to order at 5:30 p.m.
2. The Pledge of Allegiance was recited.
3. ROLL CALL
City Council Present:
Vice -Mayor Don Wright
Council Member Andrea Coy
Council Member Richard H. Gillmor
Council Member Eugene Wolff
City Council Absent:
Mayor Jim Hill (excused)
Staff Present:
City Manager, Al Minner
City Attorney, Robert Ginsburg
City Clerk, Sally Maio
Administrative Services Director, Debra Krueger
Community Development Director, Joseph Griffin
Finance Director, Ken Killgore
Police Chief, Michelle Morris
4. 1ST PUBLIC HEARING AND ADOPTION OF PROPOSED MILLAGE AND TENTATIVE
FY 2011/2012 BUDGET
A. City Manager Announcement of Proposed Millage Rate of 3.3041 Mills Which is
11.44% Lower Than Rolled -Back Rate of 3.7311 Mills and Budget Overview
The City Manager announced the proposed millage rate of 3.3041 was 11.44% lower
than the rolled -back rate of 3.7311 mills. Stating that he had provided a power point
presentation several times over the past couple of months to various boards and City
Council, he felt it unnecessary to do so tonight. He gave a brief overview of the
budget stating the total budget was $19,876,053 and the general fund was
$9,921,464, and the proposed millage represented a tax decrease for most. He
credited management staff, particularly Debra Krueger, Ken Killgore and assistance
from Nancy Veidt. He briefly discussed PBA and PEA contract progress, which he
expects to be ratified but may not be able to be provided to Council for approval prior
to the end of the fiscal year; the health care changes, and the non - departmental
contingency added from PBA in the amount of $61 K, which he hoped we would not
need to tap into and be able to carry over into FY 2013.
Special City Council Meeting
Budget Hearing
September 19, 2011
Page Two
City Council members agreed the budget had been reviewed several times and were
pleased the City was able to maintain the millage and go below rolled -back rate.
The City Manager suggested Council consider a resolution on September 28th that
would memorialize the long term forecast and Sebastian's intentions for budgeting going
into the future. He also reiterated the importance of the increase in the City's rating from
Fitch which was based on budget steps taken this year.
In response to Mr. Wolff, the City Manager said general fund reserves represent almost
50% of the general fund budget, noting Government Finance Officers Association
(GFOA) recommends 25 %, and as to how that affects future budgets, the City Manager
said it bodes well, because although we far exceed the accepted GFOA principle which
would be $2.5 M, that amount of money would be quickly used in an emergency
situation, and he did not think that having the reserve we currently have in place would
call for a reduction in tax this year. He said in an effort to keep taxes down for the last
several years, they have had to dip into reserves annually in the amount of
approximately $100,000 to balance the budget, noting the way we are budgeting today,
it is reasonable to be 2 -3% over.
Mr. Wolff asked about the forecast for the City's investments, and the City Manager said
they are pretty much the same, though they have been buying some securities,
staggering some investments, and are happy with the diversity of their portfolio. He said
currently some of the yield is less than 1% but they continue to be secure.
B. Mayor Opens Public Hearing on Proposed Millage and Tentative Budget
The City Attorney read Resolution Nos. R -11 -19 and R -11 -20 by title.
Vice Mayor Wright opened the floor for public input.
Damien Gilliams thanked the City Manager and Finance Department; asked if the Golf
Pro position had been eliminated; asked why the Working Waterfront projections are not
in the budget, asked if there is a copy of the budget at the local library, questioned
language that indicates that we will not be able to maintain the current millage in future
years, asked why we are not seeking other revenues such as grants or creating a grant
department, recommended recycling or sanitary funds, a commercial recycling program,
other state revenue funds, Department of Justice grants, roll -off containers from Waste
Management, propane taxes, natural gas lines for the City, create passports like the post
office does, and increase rents and royalties for City properties. He said in difficult times
you have to go the extra mile and think outside the box. He added that in the resolution it
states that certain changes are approved by the City Manager and they should come
before Council. He mentioned SHIP and CDBG grants.
Julia Titus, a ten year retired resident, talked about how she and her siblings were raised
to work hard and they would get their fair share, said she built her dream home in 2001
on one acre of land in Sebastian when she retired as a professor from Stonybrook in NY.
She said she loves Sebastian but now finds she cannot pay her taxes and asked that
taxes be flatlined. She said seniors are having a particularly bad time, have a choice to
2
Special City Council Meeting
Budget Hearing
September 19, 2011
Page Three
eat or pay taxes and some of her neighbors are eating dog and cat food. She asked
Council to consider a moratorium on taxes.
Vice Mayor Wright said Council is not raising taxes but rather keeping the millage the
same as last year.
Ms. Titus said people are leaving town, and if we keep raising taxes she will need to
run away.
Vice Mayor Wright advised her that Sebastian only controls its own tax and not the rest
of the taxes on her tax bill. He cited an example of a $200,000 house which, if this
millage is passed, would reduce City taxes from last year's cost of $469 to $419. He said
Council and staff have made a huge effort to keep the millage the same.
Vice Mayor Wright asked the City Manager to respond to concerns about future millage
rates. The City Manager said despite the 11% drop in assessed values this year we
have been able to hold the millage at the same rate, next year the assessed values are
expected to be decreased by 6% and we hope to keep the millage the same again, and
by FY 2014 there is an anticipated 3% decrease and we may have to recommend going
to the rolled -back rate to attain the same revenues.
Vice Mayor Wright said we depend on other agencies for revenues as well and it is hard
to predict what they will be, so we may have to make some adjustments in the future.
The City Manager also noted that changes made by him are approved by Council in
amendments.
In response to Vice Mayor Wright, the City Clerk said budget packets are available on
the City website and in City Hall for review.
Mr. Gillmor thanked the team that put this all together, the Budget Committee, Debra
Krueger, Ken Killgore, Department Heads, and noted that all city staff have made
sacrifices and all make it the beautiful City that it is.
C. Adopt Resolution No. R -11 -19 — Proposed Millage Rate for Calendar Year
2011 — Final Public Hearing and Final Adoption Scheduled for 9/28/11
(Administrative Services Transmittal, R- 11 -19)
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA,
ADOPTING A PROPOSED MILLAGE OF 3.3041 MILLS FOR THE CALENDAR YEAR 2011;
PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
MOTION by Ms. Coy and SECOND by Mr. Gillmor to approve Resolution No. R -11 -19
proposed millage for calendar year 2011.
Result of Roll Call:
Ayes: Wright, Coy, Gillmor, Wolff
Nays: None
Passed 4 -0 (Hill Absent)
3
Special City Council Meeting
Budget Hearing
September 19, 2011
Page Four
D. Adopt Resolution No. R -11 -20 — Fiscal Year 2011/2012 Tentative Budget —
(Administrative Services Transmittal, R- 11 -20)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER
COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGETFOR THE FISCAL YEAR
BEGINNING OCTOBER 1, 2011 AND ENDING SEPTEMBER 20, 2012; MAKING
APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL
EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON THE BONDS AND
OTHER INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND, SPECIAL
REVENUE FUNDS, DEBT SERVICE FUNDS, CAPITAL IMPROVEMENT FUNDS, GOLF
COURSE FUND, 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.
MOTION by Mr. Gillmor and SECOND by Mr. Wolff to approve Resolution No. R -11 -20
fiscal year 2011/2012 tentative budget.
Result of Roll Call:
Ayes: Coy, Gillmor, Wolff, Wright
Nays: None
Passed 4 -0 (Hill Absent)
E. Announce Final Public Hearing on Millage and Budget will be held on
Wednesday, September 28, 2011 at 6:30 pm
It was announced that the final public hearing on millage and budget will be held on
September 28, 2011 at 6:30 pm.
Mr. Wolff thanked the public who offered input.
5. Being no further business, Vice Mayor Wright adjourned the Special Meeting at 6:10
pm.
Approved at the September 28, 2011 regular City Council meeting.
ATTEST.
Sally A. Maio, MC — City Clerk
4