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HomeMy WebLinkAbout08042014BACAgendaCITIZENS BUDGET REVIEW ADVISORY COMMITTEE AGENDA 6:00 P.M. MONDAY - AUGUST 4, 2014 CITY HALL 1225 MAIN STREET SEBASTIAN, FLORIDA 1. Call to Order 2. Pledge of Allegiance 3. Roll Call 4. Approval of Minutes: A. Meeting of June 30, 2014 5. Anticipated Budget Amounts for Employee Group Insurance and Workers Compensation Premiums by Debbie Krueger, Administrative Services Director 6. Report on Current Status of Proposed Budget by Ken Killgore, Finance Director 7. Discussion of Committee Members Questions /Ideas 8. Update on Committee Recommendations to the City Council 9. Public Input 10, Adjourn Agenda Attachments: Minutes for Meeting of June 30, 2014 Ed Herlihy's Notes on July 9th Presentation to City Council Memo from Ken Killgore July 31St on Current Status of Proposed Budget PUBLIC INPUT FOLLOWS THE SAME PROCEDURES FOR PUBLIC INPUT AS THE CITY COUNCIL, WHICH IS IN ACCORDANCE WITH RESOLUTION R- 09-45. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENSE UPON WHICH THE APPEAL IS TO BE HEARS. (F.S.286.0105) IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589 -5330 AT LEAST 46 HOURS IN ADVANCE OF THIS MEETING. anaF 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 Veidt, Junior Accountant Jeanette Williams, Recording Secretary 4. APPROVAL OF MINUTES: May 19, 2014 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) 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. 2 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'/z% 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 7:55 pm Chairman Herlihy summarized the Board's recommendation: - $100, 000 for the Indian River Lagoon funding -$50, 000 for All Aboard Florida - $15,000 to match the COPS Grant -$100, 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. Millar 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. For a $100,000 home, a 3.9 millage rate would be an increase of $18.00. 3 8. PUBLIC INPUT — None. 9. Being no further business, Chairman Herlihy adjourned the Citizens Budget Review advisory meeting at 8:03 p.m. 0 Chairman Ed Herlihy Date 4 TO BUDGET COMMITTEE MEMBERS July 31, 2014 From: Ed Herlihy Included in this memo is a copy of my notes for the Budcom presentation to the City Council. As you know, the Council passed the higher TRIM rate that we suggested. Perhaps we can discuss this presentation and refine our list of specific items that should be budgeted. NOTES FROM BUDCOM PRESENTATION TO CC 7/9/14 BUDCOM REVIEWED INITIAL BUDGET WHICH WAS BALANCED ON PRESENT TAX RATE. PRESENTATION WAS EXCELLENT. BEST WE HAVE HAD. BUDCOM COMMENDS CITY STAFF FOR BUDGET PRESENTATION INCLUDING JOE GRIFFIN AND KEN KILGORE. DURING MEETING OF JULY I. BUDCOM CAME UP WITH SEVERAL IMPORTANT AREAS THAT WERE NOT FUNDED IN THE INITIAL BUDGET PRESENTATION. THESE ITEMS INCLUDE: 1. INDIAN RIVER LAGOON POLLUTION PROBLEMS 2. ALL ABOARD FLORIDA 3. COPS GRANT 4. ROADS A BRIEF DISCUSSION OF EACH ITEM: 1. THE LAGOON: CONSIDER COSTS TO START MITIGATION OF CITY DRAINAGE..BAFFLEBOXES, SEWER PLANNING /GRANTS, POTENTIAL LEGAL AND ENGINEERING COSTS. 2. ALL ABOARD FLORIDA: POTENTIAL COSTS FOR LEGAL, ENGINEERING, EIS EVALUATION AND REPLY, LOBBYING EFFORTS, JOINT EFFORTS WITH OTHER TREASURE COAST GOVERNMENTS. 3. COPS GRANT: THERE WAS NO FUNDING PROVIDED IF CITY RECEIVES THIS GRANT. NEED FUNDS TO MATCH GRANT. 4. ADDED ROADS PROJECTS: WE ALL KNOW THAT CITY IS BEHIND ON ROAD PAVING. PRESENTLY THERE IS OVER 1 MILLION DOLLARS IN PROPOSED STREET PAVING THAT IS NOT FUNDED. NEED TO CONSIDER SPEEDING UP THE PAVING OR CITY WILL NEVERCATCH UP. BUDCOM PROPOSED ADDED FUNDS FOR EACH PROJECT: 1. IR LAGOON 100,000 2. AAF 50.000 3. COPS 15,000 4. ROADS 100,000 TOTAL 265,000 TIIIS WOULD REQUIRE A MILLAGE RATE OF 3.8556 TO RAISE THIS the $265,000. WHY RAISE THE EXTRA FUNDS? THESE PROJECTS ARE IN THE "PUBLIC INTEREST ". WE ALL KNOW ABOUT THE IR LAGOON PROBLEMS. THE LAGOON IS "IN OUR FRONT YARD" SO TO SPEAK. EVERYONE WANTS IT FIXED. IT WOULD SEEM FROM ALL MEDIA REPORTS THAT THE VAST MAJORITY OF TREAURE COAST RESIDENTS DO NOT WANT ALL ABOARD FLORIDA. SEBASTIAN IS JUST A SMALL PART OF THE FIGHT BUT THE CITY NEEDS TO KEEP EXPRESSING ITS DESIRE NOT TO HAVE HIGH SPEED TRAINS. WE NEED TO HAVE FUNDING IN RESERVE TO PROCEED WITH OUR FIGHT. ASSUMING THE CITY RECEIVES THE "COPS" GRANT, WE NEED FUNDING FOR OUR PORTION. IT SHOULD BE INCLUDED IN THE BUDGET. LASTLY, ROADS. THE BUDCOM BELIEVES THAT THE CITY NEEDS TO SPEED THE PROCESS OF FIXING OUR ROADS. WE NEED TO CONSIDER ADDED FUNDING IN FUTURE YEARS. IN SUMMARY, THE BUDCOM IS ASKING THE COUNCIL AT THIS MEETING TO SET THE UPPER END OF THE MILLAGE RANGE AT 3.8556. THIS WILL ALLOW THE COUNCIL TO DECIDE WHETHER TO FUND ANY OR ALL OF THESE PROPOSED ITEMS DURING BUDGET DELIBERATIONS IN THE NEXT FEW MONTHS. ONE LAST ITEM ... THE GENERAL FUND RESERVE. KEN KILGORE MADE A PRESENTATION RECENTLY TO THE BUDCOM JUSTIFYING OUR PRESENT RESERVE OF 5.1 MILLION. THE BUDCOM BELIEVES THAT THE ANALYSIS DONE BY KEN WAS EXCELLENT AND MADE A GREAT CASE TO KEEP THE FUND AT THIS OR HIGHER AMOUNT. PLEASE DO NOT USE THE G.F. RESERVE FOR ANYTHING OTHER THAN ITS ORIGINAL INTENT..INSURANCE IN CASE OF A DISASTER. KEN WILL NO DOUBT SHARE HIS ANALYSIS WITH YOU IN THE NEAR FUTURE. WE REALLY BELIVE THAT THE CITY NEEDS TO KEEP THIS CASH RESERVE AS AN INSURANCE POLICY AGAINST NATURAL AND MANMADE DISASTERs. THANK YOU AND ?'S CO OF SERA��!%N ROME OF PELKAN ISLAND To: Budget Review Advisory Committee From: Ken Killgore, Finance Director Copies: Joe Griffin, City Manager Debra Krueger, Administrative Services Director Date: July 31, 2014 Subject: Current Status of Proposed Budget As you probably know, the City Council set the proposed millage at 3.8556 with a 3 -2 vote, as recommended by the Budget Review Advisory Committee. This would allow $265,000 of new funding that could be allocated as a $100,000 contingency for the Lagoon, a $50,000 contingency for All Aboard Florida and a $15,000 contingency for matching the potential COPS Grant and roughly $100,000 to Road Resurfacing. Since our last meeting, Staff has received the results of the RFP on employee health insurance. As anticipated, those premiums will be less than currently allocated in the proposed budget. Debbie Krueger will be briefing you further on this matter at our August 41' meeting, as well as the additional allocations we need based on the results of renewal quotes on our workers compensation and liability insurance. Assuming City Council will concur with Staff's recommendations, the net amount that can be reduced from the General Fund expenditures budget is a little more than $57,000. City Council will vote on these items at their August 11th Budget Worksession Special Meeting. Should the City Council adopt the same 3.7166 millage as last year, we would have $146,582 more in tax revenue, plus about $57,000 potential reduction in insurance expenditures, for a total of $203,582 that could applied to the items mentioned above. I wanted to share this with you in advance of the meeting, since the Committee will be discussing your final recommendation to the City Council. I look forward to the meeting and should you have any questions, please do not hesitate to give me a call or send an email. Ken Killgore Finance Director City of Sebastian (772) 388 -8205 kkillgore (d,)cityofsebastian.org.