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.
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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 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.
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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.
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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
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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.