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HomeMy WebLinkAbout06122012BUD��Q ��� S�-'� �� 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 A�proval 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 Upcominq Budaet — 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 bv 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. � � ,;_ � � y l � tizen Budget Ad isory Board Chairperson Si ature Date