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HomeMy WebLinkAbout03032014BAC MinutesCn OF BAST HOME OF PELICAN ISLAND CITIZENS BUDGET REVIEW ADVISORY BOARD MINUTES 6:00 P.M. MONDAY — MARCH 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 Gary O'Hara Tim Slaven NOT PRESENT: Dionna Farmer — Vice Chair Bill Flaherty Bruce Hoffman ALSO PRESENT: Ken Killgore, Finance Director Jeanette Williams, Recording Secretary 4. APPROVAL OF MINUTES: A. MEETING OF FEBRUARY 3, 2014 MOTION by Ms. Vicars with a SECOND by Mr. Slaven to approve the February 3, 2014 minutes passed with a voice vote of 4 -0. 5. REVIEW OF FY2014 FIRST QUARTER FINANCIAL REPORT The Finance Director went over the resolution to be presented to City Council noting in Exhibit "A ", there is a $35,000 budget adjustment for an unfinished project from last fiscal year. He said the incoming general fund revenue is looking strong and noted that he does need to change the notation of $377,000 additional revenue received to $73,000 before forwarding the report to Council. Citizens Budget Review Advisory Board March 3, 2014 Page Two He said the special revenue fund collections are above last year's levels. Some of the capital projects funding has yet to be used such as the Presidential Streets improvements, the computer overhaul, the Main Street access road to the Airport and the hangar project, so they are unexpended funds at this point. He noted the working waterfront fish house is starting to pick up speed. He said everything is current with the long term debt payments. He explained that when they City's actuary was hired, it was discussed that a 95% participation rate would be used to calculate retirees' health insurance liabilities but only 5% was used resulting in about a $200,000 reduction to general fund and around $7,000 reduction to each enterprise fund. A "Prior Period Adjustment" was required and this makes it difficult to track changes in reserve balances. He also said in the next quarter, he would change how the purchase of the used golf carts that were traded for new carts was presented, so the golf course reserves would make better sense. The summary of all the funds looked strong; people are using less fuel so there was a reduction in the local option gas tax; DST monies have grown; we have received the County's transfer to the redevelopment fund; there was an increase in the recreation impact fee fund; and most of the storm water fees have been collected. For the debt service funds, because in December when the bonds were switched over to bank notes, we did pay more from the DST fund in order to take a year off the final maturity. For the enterprise funds, typically, it is a good quarter for the Golf Course but it was not as good this year. He noted the Building Department looks like it was dropping off, but the comparative years include the business tax revenues which have been moved back to the general fund. 6. BUDGET STATUS UPDATE BY THE FINANCE DIRECTOR Overall, the Finance Director said 24.3% of general fund department budgets have been spent; there aren't any obvious problems; investments include deposits in the State Board of Administration and the City's local bank account that is earning a third of a percent and is the best place for these funds now. He said the balance of the report included the department's accomplishments which included Administrative Services Department wrapping up the Comprehensive Annual Financial Report and submitting the operating budget document to the awards program. He noted the City received the award for the current document. Citizens Budget Review Advisory Board March 3, 2014 Page Three 7. OTHER DISCUSSION /QUESTIONS BY COMMITTEE MEMBERS In response to Mr. Slaven, the Finance Director said the City Manager department reflects the payout of vacation accruals to Al Minner and ongoing salary to Interim City Manager Joe Griffin. He noted salary isn't being spent for the Community Development Director /Airport Director positions at this time. Chairman Herlihy said at the last meeting, there was a misconstrued conversation that the Golf Course wasn't doing very well which isn't true as the revenue is a hair above 25% and there hasn't been much play during the winter. The Finance Director agreed this is normally the best time for the Golf Course but since there isn't a good cushion for any shortfalls, it needs to be watched closely. Chairman Herlihy pointed out there has been phenomenal activity on Indian River Drive at the two new restaurants, the newspaper reports that the sales tax collection is up, traffic has increased, so hopefully that will carry over to the Golf Course. MOTION by Chairman Herlihy and SECOND by Ms. Vicars to recommend Resolution No. R -14 -05 to the City Council passed with voice vote of 4 -0. 6:21 pm Chairman Herlihy said at the last meeting he talked about the general fund reserves, which historically the Board is against spending but $460,000 was added at the end of the last fiscal year and is now up to $5.3M. He asked if there are certain things that need to be done this year, would the Board consider recommending to Council to take $100,000- 200,000 for things that need to be done right away. He noted there is Council sentiment to hire an environmental advisor and do some lagoon research. Mr. O'Hara responded it would depend on how much and what for. He couldn't see doing a lagoon study when so many governments are doing the same thing. Chairman Herlihy explained that Council is trying to see if outflow into the river is clean and maybe filter what is running from the railroad track. He also pointed out there is some capital equipment that has been deferred. The Finance Director said he was not opposed to spending a portion provided there wouldn't be an ongoing expense to continually deplete the reserve and then nothing would be available for a bad experience. He also explained the DST monies will run out in 2019 unless reapproved by the voters. Those monies support the stormwater maintenance budget and capital improvement projects so the reserve will help with the transition of putting those expenditures back to the general fund. Any new ongoing expenses should have an identified funding source. Citizens Budget Review Advisory Board March 3, 2014 Page Four 6:30 pm In response to Chairman Herlihy, the Finance Director replied that while the City Hall bond would be paid off in 2017, we may no longer receive the benefit of funding other needs with DST funds. Chairman Herlihy reminded them the next meeting would be May 19tH For the next meeting, the Finance Director said the departments have received their capital improvement program and FY14/15 worksheets. He reminded them that they will see the 3% COLA increase for general employees that hopefully will be covered by ad valorem growth. The Finance Director pointed out that financial policy does require that 50% of the excess of revenues over expenditures go into an equipment replacement reserve which has not been done for years, but part of the new $487,000 will be carved out for equipment replacement. Chairman Herlihy asked that this be mentioned to Council. Chairman Herlihy said they may have meeting prior to May if it is appropriate and there are preliminary items to consider. 8. PUBLIC INPUT — None. 9. Being no further business, Chairman Herlihy adjourned the Citizens Budget Review Advisory Board meeting at 6:36 p.m. v By: !G, airman d Herlihy r Date