HomeMy WebLinkAbout06262012BUD AgendaCITIZENS BUDGET REVIEW ADVISORY BOARD
AGENDA
6:00 P.M. TUESDAY — JUNE 26, 2012
CITY HALL
1225 MAIN STREET
SEBASTIAN, FLORIDA
Call to Order
2. Pledge of Allegiance
3. Roll Call
4. Approval of Minutes:
A. Meeting of June 12, 2012
5. Budget Overview and Update by the City Manager
6. Board Review and Comments on Draft Proposed Budget — FY 2012/2013
7. Other Discussion/Questions by Committee Members
8. Adjourn
Agenda Attachments:
Minutes for Meeting of June 12, 2012
Copy of City Managers Power Point Presentation of June 12, 2012
Fiscal Year 2012-2013 Draft Operating Budget and Long-term Projections
ANY PERSON WHO DECIDES TO APPEAL ANY DECIS/ON MADE WITH RESPECT TO ANY MATTER CONSIDERED
AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A
VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND
EVIDENSE UPON WHICH THE APPEAL IS TO BE HEARS. (F. S.286.0105)
IN COMPLIANCE WITH THE AMERICAN WITH DISABILIT/ES ACT (ADA), ANYONE WHO NEEDS A SPECIAL
ACCOMODAT/ON FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT
LEAST 48 HOURS IN ADVANCE OF TH/S MEET/NG.
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HOME OF PELICAN ISLAND
CITIZENS BUDGET REVIEW ADVISORY BOARD
MINUTES
TUESDAY, JUNE 12, 2012 - 6:00 P.M.
City Council Chamber, 1225 Main Street, Sebastian
Mr. Ed Herlihy called the meeting to order at 6:00 p.m.
2. The Pledge of Allegiance was recited.
3. ROLL CALL:
Present:
Dionna Farmer
Ed Herlihy
Tim Slaven
Gary O'Hara
4.
5.
Staff and Council Present:
AI Minner, City Manager
Ken Killgore, Finance Director
Donna Cyr, Recording Secretary
William Flaherty
Harry Marshall
Christine Vicars
Approval of Minutes: May 15, 2012 Regular meeting
MOTION by Mr. Marshall and SECOND by Mr. Flaherty to approve the May 15, 2012
minutes as written, motion passed on a unanimous voice vote.
Board Discussion of Upcoming Budget — FY 2012/2013: Estimated Taxable Values and
Budget Summary.
Mr. Minner, with the approval of the Chairman Herlihy, combined the two line items on
the agenda and gave his powerpoint presentation (see attached copy with typographical
changes made). He did note that the assessed value is $820,000,000 which is 6.6%
lower than last year which was $880,000,000.
Mr. Minner gave an overview of the five operating funds that make up the components of
the budget. He then gave an overview and flow of the budget process and what was
expected of the board members. Mr. Minner explained the strengths and shortcomings
of the initial forecast of the FY 2013 budget. He also gave details on the three
suggested tax options showing a breakdown of how Plan A, Plan B and Plan C would
affect the budget. He said that one of the reasons that we have been able to keep our
millage rate down is because of our transfer tricks. By moving Stormwater operations
money as well as some Local Option Gas Tax fund into the General Fund we have been
able to fund certain projects. He said that we are running out of funds for designated
road projects and there are no funds for the Go-Line.
Mr. Minner opened the floor to discussion and questions.
Budget Advisory Meeting
June 12, 2012
Page Two
6. Discussion/Questions by Committee Members:
Mr. Herlihy let the board know that the presentation will be replayed on channel 25 for
the public. He thinks it's really something the public needs to see. It will show them
where we've been, where we are and where we are going.
Ms. Farmer asked, regarding the paving project, are there any DOT grants to help pay
for these types projects? Mr. Minner said that there really aren't. The grants are for
Capital Improvement projects (new improvement projects). We received FDOT and FAA
grants for new road construction out at Airport Drive East. The project is to open up
Airport Drive East for economic development purposes. This would allow us to build the
new road, then we would open up 10 —15 acres of available land and create turn-key
property. It's turn-key because it will have roads, sewer, electric, etc. That way a
company can go in and build what they need. Mr. Minner did mention that there were
some roads in the south east side of the Highlands that needed attention and money
was set aside for those. Tulip is having problems but new parking is going to be put in
near BSSC and the road will be fixed at the same time.
Ms. Farmer asked if we have an enterprise zone and offer any economic development
incentives to new businesses. Mr. Minner responded that we do offer some incentives
like our tax abatement program and speeding up our permitting process and our parking
payment in-lieu-of on-site requirement program. As for an enterprise zone that's more of
a co-operation with the State. We are working with Vero see if we can get the enterprise
zone shifted around.
Mr. Flaherty had no questions at this time.
Mr. Marshall asked if we could borrow money at the 1.94 rate and use for capital
improvements. Mr. Minner said we really don't have the money to pay a new loan back
because we would have to take the money from our operating fund. Mr. Marshall said
he would consider a millage increase if the money was used to pay back a new loan.
Mr. Minner said he would check into that.
Ms. Vicars asked if the powerpoint could be emailed to the board members. Mr. Killgore
will take care of that. Ms. Vicars also asked what rules on the reserve requirement we
are following. Mr. Minner said we follow Government Finance Officers Association
(GFOA) which suggests that you keep 25% of your total expenditures. We try to keep
about 30% instead of the 25% because of being a coastal community.
Ms. Vicars asked about the City's vacation and PTO policy. Mr. Minner said that the City
changed the policy last year where all new hires will not get paid out for sick leave but do
get paid out for vacation up to a standard. Mr. Killgore will get the policy on the City's
vacation and sick leave for current employees. Ms. Vicars also asked what the median
home value was in Sebastian. Mr. Minner stated the County report didn't say but his
best estimate was around $125,000.00
Mr. O'Hara asked about the advantage of annexation of the south west corner of CR510
& CR512. Mr. Minner explained the Inter-service Boundary Agreement (ISBA) history
regarding the Vero Lake Estates area. Mr. Minner said there really wasn't an advantage
to annexation of large scale established residential property because financially it
doesn't pay and it can change the political dynamics. He did say that commercial
Budget Advisory Meeting
June 12, 2012
Page Three
property was a little different. Mr. Minner did say that letters were written to the owners
regarding that piece of property telling them that the City of Sebastian was interested.
There is not an interest in annexing that property by the family. Mr. O'Hara asked about
north on Indian River Drive and Mr. Minner said he didn't think there was any real desire
for them to annex.
Mr. O'Hara asked how many police cars we were buying in the next budget and if there
were any police cars purchased this year. Mr. O'Hara said that there are 64 police
vehicles of which 38 are police cars and 10 volunteer cars and he feels this is a lot of
cars. Mr. Minner said we are in the process of selling vehicles. Mr. O'Hara asked if
police vehicles are being taken home and was told they were. He also asked if
volunteer cars were taken home which he was told they weren't. Mr. Minner said this is
something that can be brought up with the Chief at budget time.
Mr. Slaven asked if foreclosures had any affect on the budget. Mr. Minner said they
really didn't because we were still getting property taxes paid by the banks Mr. Minner
said we are still collecting between 96% - 98% of the taxes and we budget for 95%. But
the decline in house values has had an affect on the revenue.
Mr. Slaven asked about the Go-Line. Mr. Minner said we budget $50,000 each year for
the Go-Line buses. Mr. Slaven asked if we are not allocating funds to the program will it
still come to Sebastian. Mr. Minner said it probably will. He said he wasn't sure how
Senior Resources will respond to this.
Mr. Herlihy mentioned that the reserve fund at 30% is ideal but we are running around
45% and the Budget Committee has always stood firm with the reserve. Zillow a real
estate statistical firm says that the median house value for Sebastian is $116,000. Mr.
Herlihy also reminded that the next budget meeting is Tues., June 26th at 6pm.
7. Being no further business, Mr. Herlihy adjourned the meeting at 7:38 p.m.
Citizen Budget Advisory Board Chairperson Signature Date