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HomeMy WebLinkAbout08122013BUD MinutesMy OF HOME OF PELICAN ISLAND CITIZENS BUDGET REVIEW ADVISORY BOARD MINUTES 6:00 P.M. MONDAY — AUGUST 12, 2013 CITY COUNCIL CHAMBER, 1225 MAIN STREET, SEBASTIAN Chairman Herlihy called the meeting to order at 6:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL: Present: Ed Herlihy Dionna Farmer Gary O'Hara Christine Vicars Harry Marshall Bruce Hoffman Absent: Tim Slaven (excused) Also Present: Debra Krueger, Administrative Services Director Ken Killgore, Finance Director Greg Witt, Deputy Police Chief Jeanette Williams, Recording Secretary 4. Approval of Minutes: a. Meeting of July 1, 2013 MOTION by Mr. Marshall and SECOND by Mr. Hoffman to approve the July 1, 2013 minutes passed with a voice vote of 6 -0. 5. Review of Third Quarterly Financial Report The Finance Director said the report will be submitted to City Council; the changes are noted in the exhibit to the resolution; the graphics indicate expenditures and reserves are in line; the City is on schedule with the special revenue and capital improvement projects; and because of our compliance with our repayment obligations, Fitch has upgraded the City's rating on the Stormwater Bonds. In response to Ms. Farmer regarding the Fitch rating, the Finance Director explained ratings indicate the City's risk factor and the upgraded AA rating, from last year's AA -, is an improvement. Citizens Budget Review Advisory Committee 2 August 12, 2013 6:26 pm Mr. Hoffman asked the Finance Director if he expected the reserve funds for the Golf Course and Airport to be negative at the end of the year. The Finance Director replied if the unpaid accruals of sick and vacation time were funded, there would not be enough cash. Mr. Hoffman pointed out in the stormwater utility fund, the operating expense is over $51,000, but there was none in the prior three years. The City Manager said this is the first year they will show the electrical expense for the pumps, one pump was replaced, and outside engineering assistance was needed to improve the City's NPDES Stormwater Pollution Prevention Plan. Mr. Hoffman asked if the 91 % was the end of the debt service fund. The Finance Director confirmed that it was. Chairman Herlihy congratulated the Finance Director for his expediency in providing the report and the improved bond rating. 6. Budget Update by the City Manager The City Manager said the two general fund pieces missing from his July 1 st presentation were employee health care and surplus monies for employees. He noted the health care renewals have come in as staff predicted but there has not been an agreement reached with the PBA and PEA. He offered to schedule another meeting with them when the union negotiations are done or answer any questions. 7. Board Review and Comments on Draft Proposed Budget Mr. Hoffman asked what impact the working waterfront lawsuit will have on the budget. The City Manager said that would not be known for quite a while; the City did file a motion to dismiss; right now the City Attorney's budget would cover the special counsel's expense; and if it does go bad, reserves will cover the expense. He did not recommend any change to the budget for the lawsuit. Ms. Farmer asked if the budget needs to be adjusted for the recommendation made by the MIS Auditor. The City Manager said not at this time, there will be a new position in the budget and then a better determination will be made on hardware /software changes. MOTION by Mr. Hoffman and SECOND by Mr. Marshall to accept the quarterly report as presented passed with a voice vote of 6 -0. 8. Memorandum on Discussion During Council Budget Workshop — Ed Herlihy Chair of Citizen's Budget Review Advisory Board Chairman Herlihy went over his list included in the agenda packet. There was no further interest in reducing the police car fleet. Citizens Budget Review Advisory Committee 3 August 12, 2013 The City Manager said Council authorized half of a revenue sharing formula with employees to improve benefits or wages noting the termination of furlough days would be 70% of that formula and would only happen if furlough days ended this fiscal year; however, at this point it is still under union negotiations. Mr. Hoffman said if that is accepted, would there a corresponding reduction in overtime. The City Manager explained police overtime will be reduced but because we were conservative with the state shared revenue projections, wiggle room would be available to cover the cost of ending furlough days but management still needs to receive a written response from the PBA and PEA. Mr. Hoffman encouraged a 10% reduction in overtime. The City Manager pointed out the mechanisms put into place to absorb the 4.2% health care increase worked this year. Chairman Herlihy said going forward property valuation will be about 3% which is more than they expected. Chairman Herlihy said the Golf Course was holding steady; the Airport is continuing to grow and hopefully someone will open up some industrial jobs. Mr. Hoffman asked if the Building Department accumulates a surplus, what will happen to those funds. The City Manager said at the start of recession in 2006, the City transferred $1.5M from the general fund to create a building fund, reduced staff, brought over the business tax staff for stabilization and now should pay back the general fund but at this point, the City needs to sit tight. 9. Committee Comments and Direction on Committee Report to the City Council Chairman Herlihy asked if there was anything to recommend to Council. Mr. Hoffman suggested they not Lill the Fese e fi nr! *that Council not reduce the reserve fund and preserve its current level. 10. Other Discussion /Questions by Committee Members Chairman Herlihy reminded them that Council will have their first budget workshop Monday, August 19tH 11. Public Input — None. 12. Being no further business, Chairman Herlihy adjourned the Citizens Budget Review Advisory meeting at 6:49 p.m. Y C CChair an Ed Herlihy / Date *Approved as amended in item 9.