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HomeMy WebLinkAbout02032014BAC MinutesCITIZENS BUDGET REVIEW ADVISORY BOARD MINUTES 6:00 P.M. MONDAY — FEBRUARY 3, 2014 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. PRESENT: Ed Herlihy - Chair Christine Vicars — Vice Chair Dionna Farmer Bill Flaherty Bruce Hoffman Tim Slaven NOT PRESENT: Gary O' Hara ALSO PRESENT: Joe Griffin, Interim City Manager Ken Killgore, Finance Director Jeanette Williams, Recording Secretary 4. INTRODUCTION OF NEW MEMBERS Chairman Herlihy noted the changes they would see with the loss of City Manager Al Minner but noted the Finance Director would guide them through the process. Each member introduced themselves. 5. SELECTION OF CHAIRPERSO Mr. Hoffman nominated Mr. Herlihy and Ms. Farmer seconded his nomination. There were no other nominations. Mr. Herlihy will serve as the chairman. 6. SELECTION OF VICE - CHAIRPERSON Mr. Hoffman nominated Ms. Farmer. There were no other nominations. Ms. Farmer will serve as the vice - chairman. Citizens Budget Review Advisory Board 2 February 3, 2014 7. APPROVAL OF MINUTES: A. MEETING OF AUGUST 12, 2013 MOTION by Mr. Hoffman with SECOND by Ms. Farmer to approve the August 12, 2013 minutes as amended passed with a voice vote of 6 -0. 8. REVIEW FOURTH QUARTERLY REPORT — FY 2013 Ms. Vicars noted in the fund summaries report, under local option gas tax, miscellaneous revenue went from $2M to $9M to $2M and then last quarter it went to $46.00. The Finance Director Killgore explained the outstanding gas tax notes were refunded and indicated as miscellaneous revenues. He went on to report the fund balance in the general fund was $467,000 more than the previous year; noted he has concerns with the enterprise funds and asked the Board to lay any concerns they might have on the table as early as possible; and this year, he plans to speed up the delivery of the financial statements. Mr. Hoffman said last year ended with very good numbers, In relation to the Golf Course and Airport, if they were private enterprise, they would be discussing jettisoning the non - performing assets. He asked if the Golf Course did better the first quarter. The Finance Director said this time last year there was good play but over the last ten years, their budget has decreased. He noted the amount of play does not support their budget; they have cut back on personnel, and looked closely at their maintenance contract. He asked the Board for any ideas. In regard to the Airport, he explained that while grants help the City overall, when there are matching fund requirements, the Airport has taken money from its accounts, which diminishes overall funds. Recently, DST funds were used but the last full year of DST revenues will be 2018, unless it passes another public referendum. He pointed out that the Golf Course did pass a resolution to put their rate changes into capital funds but those funds are earmarked for their capital improvement needs. Chairman Herlihy said this is leading to raising the rates and the Finance Director cautioned that they need to stay competitive so they don't lose customers to surrounding courses. He said the Golf Course has even reduced their rent paid to the Airport, which shouldn't be reduced again. Mr. Hoffman asked if the City is compensated for use by the high school golf team. The Finance Director offered to get back to him with an answer. Citizens Budget Review Advisory Board 3 February 3, 2014 Ms. Farmer asked if businesses have moved into the industrial area section of the Airport. The Finance Director offered to get back to her with an answer. Ms. Farmer asked for the status of the MIS tech position recommended by the computer auditor. The Finance Director said the position was included in the budget and two candidates are currently under consideration. At a seminar the Finance Director attended last Friday, the speaker gave an interesting talk entitled Would You Invest In This Company, which was about the federal government and their amount of revenue vs. spending. He offered to share their numbers to anyone interested. Mr. Flaherty said while reviewing the budget he likes to be able to track expenses from inception to make sure they are reasonable. He cited the accomplishments / goals /objectives listed on page 101 of the current budget and noted a lot of work is being done but the text does not indicate the cost. He said it would be helpful to know how much things cost. He also indicated it was difficult to track the budget goals to the accomplishments that are associated with it. He cited page five of the agenda packet, where the Public Works Department has their 2013 accomplishments such as handicapped pier improvements and pot holes, he tried to get an idea of how much those things cost - -while the dollar amount doesn't have to add up, but it would give the Board a sense of where the money is spent and what is reasonable. The Finance Director said it would be a worthy effort; the capital projects have to be listed because they get the public's attention; the day -to -day activities can eat up resources and it would be good information to have. He said he would keep that in mind as they begin the process but cautioned the organization is short handed and the employees may be giving up something else to provide those details. He noted the Government Finance Officers Association (GFOA) has historically recommended that cities improve on making the information more useful. Mr. Hoffman seconds Mr. Flaherty's comments; the detail is excellent but it is difficult to find the path that flows from Council through the Manager and into the budget. He noted the Lagoon is a priority and asked how it will translate down to specific budget numbers, such as Mr. Gillmor's monitors if they become a priority. The Finance Director suggested that the City Manager may need to get some visioning from Council to work from. In response to Chairman Herlihy, the Finance Director said the total balance of surplus in the general fund was $5,469,458. Chairman Herlihy suggested there may be a point where there too much surplus, and if they have things critical to do, maybe they should do it, as this year's addition of $400,000.+ was something to consider. Citizens Budget Review Advisory Board 4 February 3, 2014 Chairman Herlihy asked if the auditors have found any problems yet. The Finance Director explained the 4th Quarter Budget Amendment was approved by City Council on December 11th which was beyond the 60 days time frame required by State Statutes. Rather than restating the budget and assume what Council approved was not legitimate and not have the statement reflect the amendments, he agreed to take a Management Letter Comment stating the City neglected to follow the State Statute by 12 days. Mr. Hoffman asked to review the two parts of the reserve fund. The Finance Director said the amount included: - garage inventories; items we pay in advance such as insurance - restricted funds such as the advance given to the Airport a few years ago that are not available to the City to spend -30% budgetary reserve required by the financial policy - uncommitted /free to spend If you take the 30% and the uncommitted, it is about 51% of next year's operating and personnel budget that is unassigned. Chairman Herlihy introduced the Interim City Manager, Joe Griffin. 9. REVIEW BUDGET CALENDAR AND DISCUSS NEXT MEETING DATE (MONDAY, MARCH 3, 2014) Chairman Herlihy said the Finance Director will be the point man and encouraged all Board members to attend all of the meetings especially the summer meetings. Mr. Hoffman noted there have been several lawsuits and asked if the Working Waterfront suit has that been dismissed or finalized and where would he find that in the budget. The Finance Director said when that was discussed by Council the City Manager said it would come out of the City Attorney's account and then from reserves. Chairman Herlihy said the last he heard, the case was dismissed but the Restaurant was given a short period to re -file, which they did and the City is asking to have that rejected. Mr. Hoffman suggested a presentation on the City's lawsuits like there was for capital improvements would be helpful. Chairman Herlihy noted the City Attorney provides quarterly reports to Council in their agenda packets which could be e- mailed to anyone interested by the City Clerk. 10. Being no further business, Chairman Herlihy adjourned the Citizens Budget Review Advisory Board meeting at 6:49 p.m. Chairman Ed Herlihy Date