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HOME OF PELICAN 'ISLAND
CITIZENS BUDGET REVIEW ADVISORY BOARD
MINUTES
6:00 P.M. MONDAY — JUNE 30, 2014
CITY COUNCIL CHAMBER, 1225 MAIN STREET, SEBASTIAN
Chairman Herlihy called the Citizens Budget Review Advisory Committee to
order at 6:00 p.m.
2. The Pledge of Allegiance was recited.
3. ROLL CALL
Ed Herlihy
Dionna Farmer
Bill Flaherty
Bruce Hoffman
Gary O'Hara
Christine Vicars
ABSENT
Tim Slaven (excused)
ALSO PRESENT
Joe Griffin, City Manager
Ken Killgore, Finance Director
Frank Watanabe, Community Development Director
Michelle Morris, Police Chief
Nancy Veldt, Junior Accountant
Jeanette Williams, Recording Secretary
4. APPROVAL OF MINUTES: May 119-20114
MOTION by Ms. Farmer and SECOND by Mr. Hoffman to approve the May 19,
2014 minutes passed with a voice vote of 6 -0.
5. BUDGET OVERVIEW
The Finance Director introduced Nancy Veidt, Junior Accountant, who put the
budget package together; and thanked Joe Griffin, City Manager for his
assistance and advice. He said their goal was to recommend a millage rate to
City Council.
He presented a PowerPoint highlighting items planned for the next fiscal year
budget. (See attached)
Citizens Budget Review Advisory Committee
June 30, 2014
Page Two
He said the City's total taxable property value came in at $887M, with a 7.3%
increase from last year, making the average assessment increase 4.9 %. The
calculated rolled back rate would be 3.5446 and would add $107,529 in revenue.
A $100,000 homesteaded property would have to pay $180 in taxes at the rolled
back rate. If the same millage rate was kept at 3.7166, the $100,000 home
would see a $2.79 increase.
6. DISCUSSION OF COMMITTEE MEMBERS QUESTIONS /IDEAS
6:39 pm
The Finance Director reported any increase with the employee health insurance
over the amount budgeted could be covered by unused funds given to
employees on their benefit cards. He noted the health insurance contract was
going out to bid at the end of July.
Discussion followed on bringing back the City's newsletter which would be mailed
out twice a year to provide information for the residents.
It was noted the Environmental Specialist would be applying for a full gamut of
grants for the City, not just environmental and the Community Development
Director cited some recently received grants.
It was also noted the CRA would pay for the playground and sidewalk surfacing
in Riverview Park instead of the DST fund or recreational impact fee fund.
The City Manager agreed that there were many All Aboard Florida unknowns to
include the engineering, oversight contingency, legal liability, increased
maintenance, and insurance liability. He said he has seen $30,000 to $250,000
quoted to build a quiet zone which could be a burden on this community.
The Community Development Director said Indian River County has hired an
engineer and attorney for this process which is moving fast. He advised to look
at the safety factors for all five of the City's crossings even though the County
only owns the CR512 crossings, the crossings are so close the whole corridor
must be considered.
It was noted that monies should be spent on the Indian River Lagoon once we
know enough about its problems because the Lagoon makes the City a desirable
place to live.
The Finance Director further explained the accumulated, unused employee
benefit card balances provides a cushion for any possible premium increases.
Commentary followed on keeping the match for the COPS grant in the budget
even though the officer's equipment would need to be considered. There might
not be a need for the newsletter since Channel 25 and the internet are beneficial
in providing information to the residents. In the CRA budget, there hasn't been
any grant awards to the CRA's Sewer Connection Grant Program so the budget
amount will remain at $100,000 until the money is spent.
Citizens Budget Review Advisory Committee
June 30, 2014
Page Three
7:18 pm
One stated unrealistic goal for the Golf Course goal is to reach $1.6M in revenue
for next year but they have only 1'/2% increase budgeted in fees. It was stated
the Golf Course might draw interest as more people move to the City.
Chairman Herlihy asked the City Manager if he had an All Aboard Florida number
the Board could recommend to Council. The City Manager responded there will
be maintenance charges, and the construction of a quiet zone may be $30,000
but it would depend on how far Council would want to take it.
Chairman Herlihy noted the City now has a portable water monitoring device and
asked if more baffle boxes should be budgeted for the Indian River Lagoon. The
City Manager said there are six outfalls that might need a $40,000 - 50,000 baffle
box. He also pointed out the Sewer Grant Program cannot move forward until
the County has installed the sewer line.
Chief Morris reported if the City received the COPS grant, the amount would be
$199,000 and the City's match would be $50,000 for three years plus the minimal
expense for uniforms. She went on to explain some parts of the squad cars are
turned over to new cars but generally the light bars and ICOP cameras usually
only have a five year life span.
The City Manager offered to find out why the Garage buys vehicle parts outside
of the City.
7. FINAL COMMITTEE RECOMMENDATIONS TO THE CITY COUNCIL
Chairman Herlihy summarized the Board's recommendation:
- $900, 000 for the Indian River Lagoon funding
-$50, 000 for All Aboard Florida
-$15, 000 to match the COPS Grant
-$ 900, 000 for road resurfacing
-keep the general fund reserve as is
Discussion followed on annexing surrounding areas land and Chairman Herlihy
pointed out a couple of years ago, a study determined it would not be beneficial
to annex Roseland into the City. Members felt they did not have the standing to
make such a suggestion to City Council.
Millage Rate
The Finance Director advised that by keeping the same millage rate, it would
cover the additional items they would like to see except for road paving. He
advised that if they requested a rate increase, a specific project should be
identified and they would need about a 3.9 millage rate to cover everything being
recommended.
Citizens Budget Review Advisory Committee
June 30, 2014
Page Four
7 :55 pm
For a $100,000 home, a 3.9 millage rate would be an increase of $18.00.
8. PUBLIC INPUT— None.
9. Being no further business, Chairman Herlihy adjourned the Citizens Budget
Review advisory meeting at 8:03 p.m.
By 9/t" 11i !
irman Ed erlihy Date
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2015 Budget and Capital Program.
• What's Included in General Fund?
• Revenues and Balancing Tactics.
• What's Left Out?
• Enterprise and Other Funds.
• Property Values & Millage.
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-m"ersonnel Cost Up $292,894
o Pa y and Benefits
3% Employee Pay Increases.
15% Higher Medical Insurance Premiums.
o Position Changes During 2014
+ Cemetery Maintenance Worker I was budgeted.
- Airport Operations Specialist II was budgeted.
+ Building Permitting Technician was budgeted.
• Environmental Specialist /Grant Writer.
• Police Commander.
• Dispatcher from Part -time to Full -time.
o No Position Changes for 2015
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What's Included? —
Capital Outlays Down $20,403
o City Clerk - $7,000 PC and Camera.
o MIS - $35,,000 Server Replacements &Backup.
o Police - $19,200 Night Vision Equipment,
Vests, Ballistic Shields & Drying Cabinet.
o Roads &Maintenance - $10,000 Trailer.
• Fleet - $3,000 Air Compressor.
• Parks & Recreation - $34.000 Trailers & Pickup.
o Facilities - $2,000 Break -room Appliances.
Revenues and Balancing Tactic4
0 96% Collection of Ad Valorem Tax.
0 4% Growth of Utility &State Revenues.
o Shorter Repayment Plan from Building
Department on Business Taxes.
o Initiated 4 Year Repayment of the Loan
to the Airport to Cover Legal Expenses.
o Cut Equipment or Facility Maintenance
Items Requested "Just -in- Case ".
o Moved Qualifying Expenditures to the
Special Revenue Funds.
What's Left Out?
• No Maintenance Type Positions Restored,,
Continue as Reactionary vs. Proactive.
• No Police Positions Restored or Funding
to Match COPS Grant (If Approved).
• No Contingency Funds for Actions
Regarding All Aboard Florida.
• No Contingency Funds for Actions
Regarding the Indian River Lagoon.
o No Funding for Street Resurfacing.
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Airport
• Revenues Up Slightly - Although Golf
Course Rent Reduced by $15,000.
• Charged 1/3 Pay for Community
Development Director and
Environmental Specialist for Services as
Airport Manager and Administrator.
o Eliminated Charge for Maintenance
Services Provided by General Fund.
o Using DST Funds for Matching Funds on
Airport Hangar Project.
Enterprise and Other Funds:
Building
o Revenues Estimated Less in 2014 Than
2013 Actual - 2015 Budget Less Than
2014 Estimated.
• Will Adjust $1,366 Use of Reserves and
Show Balanced Budget.
• Replacing One. Vehicle in 2015 and Two
Others in 2016.
o Speeding Up the Repayment of Business
Taxes During the Recession Years.
Special Revenue Funds
• Local Option Gas Tax:
_ Street Lights and Bank Note Payment Using
Most Funds.
2014 has $75K for Englar Overlay.
Projecting Just $100K by 2016, $100K by
2018 and $120K by 2020 for Overlay Work.
• Parking In Lieu Of Fund:
Expect About $29,390 Balance by Year
End, after Parking on Indian River Drive,
Receiving Almost $14,000 Per Year From
Current Agreements.
o Law Enforcement Forfeiture Fund:
Used Only for Unbudgeted Items.
Enterprise and Other Funds:
Special Revenue Funds
o Discretionary Sales Tax:
Ongoing - Bank Note, Computer Upgrades,
1/4 Round, Police and Stormwater Equipment.
2014 - Golf Restrooms, Presidential Streets,
Fish House Work, Airport Drive East, Hangar
Project and Tulip Reconstruction.
2015 - City Hall /Police Roofs, Police Parking,
Yacht Club Pier Deck, Pedestrian Bridge,
Fleming and Cooledge Reconstruction, etc.
Later - PD Air Conditioner, Building Painting,
Baseball Lights, Riverview Park Playground,
Barber Bri ge, Potomac Ditch, Bevan Ditch,
Stormwater Pond and Airport Drive West.
Enterprise and Other Funds:
Special Revenue Funds
o Riverfront CRA Fund:
Usual Public Lighting, Hurricane Harbor
Repairs, General Fund Maintenance Charge,
Special Events, Plus the Sign and Sewer
Conection Programs.
2015 Includes Park Tables and Benches,
Trees /Shrubs /Mulch for Medians and Park
Sidewalk Replacement.
o Recreation Impact Fee Fund:
Reviewed By Parks & Recreation Board.
2015 Community Center and Skate Park
Work. Bleacher Shields and Equipment
Building in 2016.
Enterprise and Other Funds:
Special Revenue Funds
o Stormwater Utility Fund:
Includes Bank Note Payments, General
Fund Payment for Swale Maintenance and
the Stormwater Park Electric Charges.
Also Has Replacements of Smaller Vehicles
not Qualifying as DST Eligible.
o Cemetery Trust Fund:
1/2 of Sales is Non - Expendable but Interest
can be Used for Maintenance.
1/2 of Sales is Expendable
Adding Capacity. Bought
Planning Storage Building
South Roadway.
on Expansions or
Property in 2013.
and Redoing
Enterprise and Other Funds:
Debt Service Funds
o Discretionary Sales Tax Debt Service:
Includes Required Bank Note Payments.
Refunded City Hall and Police Station Bonds.
$2,730,000 Outstanding as of 9/30/14.
Final Maturity on 4/01/17.
o Stormwater Utility Debt Service:
Includes Required Bank Note Payments.
Refunded Stormwater Improvement Bonds.
$2,982,000 Outstanding as of 9/30/14.
Final Maturity on 5/01/22.
Property Values and Millage:
Property Values
• Property Values Increased to a Total
Taxable Value of $887,726,024.
• This is $60,429,840 More Than Last
Year, an Increase of 7.3 %.
• Additions = $ vs. 9,435,090.
• Average Reassessment Increased 4.9 %.
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Other Considerations
o Unsettled Issues:
Premiums for Employee Health Insurance
Have Not Been Set - 15% Allocated.
PBA Wage Opener Negotiations Not Done.
COPS Program Matching Application.
All Aboard Florida.
Indian River Lagoon.
o Normally Set Proposed Millage Higher to
Allow Flexibility in Dealing With Other
Matters That Result from Budget
Discussions and Hearings.