Loading...
HomeMy WebLinkAbout09152014 Special MinutesHOME OF PELICAN ISLAND SEBASTIAN SPECIAL CITY COUNCIL MEETING 1St BUDGET HEARING FY 2014/2015 Millage and Budget MINUTES MONDAY, SEPTEMBER 15, 2013 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. Mayor McPartlan called the Special Meeting to order at 6:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Present: Mayor Bob McPartlan Vice Mayor Jim Hill — arrived 6:01 pm Council Member Jerome Adams Council Member Andrea Coy Council Member Richard Gillmor City Staff Present: City Manager, Joe Griffin City Attorney, Robert Ginsburg City Clerk, Sally Maio Administrative Services Director, Ken Killgore Community Development Director, Frank Watanabe E -Records & Information Manager, Barbara Brooke -Reese PUBLIC HEARING AND ADOPTION OF PROPOSED MILLAGE AND TENTATIVE FY 2015 BUDGET (Transmittals, Draft Budget Available on City Website — Meeting Agendas or in City Hall) A. The City Manager announced the proposed millage of 3.7166 mills, which is 4.85% higher than the computed rolled -back rate of 3.5446 mills. The City Manager said the 3.7166 millage rate would add $147K extra dollars to the City treasury and the reduction in employee insurance costs would add approximately $57K for a total of $200K which can be used for street repaving. MOTION by Mr. Hill to approve staff recommendation, however the City Attorney advised the motion wait until after the public hearing. The Administrative Services Director gave a Power Point presentation (see attached) on the recommended budget, comparison of effect of the rolled -back, current and higher millage rates, and recommended a millage rate of 3.7166. He advised that the Budget Advisory Board would recommend 3.8556 mills, the effect of that number and recommended uses. He said staff recommends 3.7166 would address needed street resurfacing. Ms. Coy asked for the amount in our emergency reserves, and the Administrative Services Director responded at the end of last year there was just under $5M, and are projecting a surplus in the current year in an amount of roughly $5M. Special City Council Meeting September 15, 2014 Page Two Mr. Gillmor said staff recommends a millage rate of 3.7166 rate and the board recommends 3.8556, and asked as to the difference between the two amounts generated, where would the additional money go and what would it do for the City. The Administrative Services Director responded that the Board recommended $100K initially for street paving, and later added the $57K insurance savings to street work, $100K for lagoon, $50K for All Aboard Florida and $15K for the COPS grant. He said if Council wants to set up an account that captures the extra money, it would be appropriated to those specific accounts. Mr. Gillmor said based on watching budget committee hearings and hearing Mr. Watanabe stating that streets were in worse shape than he anticipated, the larger rate would raise more money for street repaving. The ASD said there would be about $122K in additional revenue. Ms. Coy tagged onto Mr. Gillmor's discussion, asking where in our current budget at 3.7166 rate as recommended by staff, have we budgeted any money for lagoon projects, and the response by the ASD was nowhere. Ms. Coy continued that at 3.7166, we are saying we are not allocating any money to do something for the lagoon, but the Budget Board is allocating $100K for lagoon sources, and it concerns her that staff recommended a millage rate with nothing for the lagoon, when there has been a consensus from this Council that they have made the lagoon a priority. The City Manager said we have budgeted for the Coolidge Road project, and plan for installation of a nutrient baffle box for that location. Ms. Coy asked how many others do we need off of the US 1 street, where we are looking at matching grants. The Community Development Director said there are ten outfalls into the lagoon, and there are five locations with baffle boxes. Ms. Coy said we need five more and asked how much one costs. The DCD said just to purchase the box is $50K, and then there are additional costs for maintenance and upkeep, and it needs a vac truck, noting ours is not in good shape. He said there is also a baffle box at Potomac. At this time, Mayor McPartlan opened the hearing, and the City Clerk noted that the Budget Board Chairman was set next to give a presentation. Mayor McPartlan apologized and called Mr. Herlihy to the podium. B. Budget Advisory Board Chairman Presentation on Board Recommendations Chairman Ed Herlihy gave a Power Point presentation on the Budget Advisory Board's budget recommendation (see attached), for an increase to the 3.8556 millage rate for additional funds for the Indian River lagoon - $100K, All Aboard Florida - $50K, COPS grant — $15K, and road repaving - $100K. He said Council will need money for matching funds for grants for baffle boxes, funds will be needed for the oyster bed project, funds will be needed for consultant services for AAF, and the COPS grant and roads speak for themselves. He said the Board recommended the additional $57K cost savings go to road paving. He said there 2 Special City Council Meeting September 15, 2014 Page Three have been suggestions we can take funds out of the general fund reserves, and said that is not what that fund is but rather it is our City's insurance policy. He noted last Monday night the DCD came before the Budget Board and said the roads were worse than he previously thought. Ms. Coy thanked Mr. Herlihy and the Board for their work on the budget, noting they had lots of extra meetings and started early. Mayor McPartlan thanked him and the members. C. Mayor Opens Public Hearing on Proposed Millage and Tentative Budget Mayor McPartlan opened the public hearing at 6:27 p.m. on the proposed millage and tentative budget. The City Attorney read Resolution Nos. R-14-20 and R-14-21 by title only, and noted any individual can address either the millage or the budget during their input. Mayor McPartlan said said he was looking at the roads that are in dire need throughout the City and pointed some out to staff, including Barber Street on the south side, noting we have been kicking the can down the road long enough on this, and we need to put more money into our roads. He said with the 3.7166, there is nothing in there for the lagoon as Ms. Coy said. Mayor McPartlan then made a motion to raise the millage rate to 8.3557. The City Attorney advised him that before he does that, he should open the public hearing, then close the hearing, and then make a motion. Mayor McPartlan called for public input. Albert lovino, Sebastian resident twelve years, said it was mentioned that there was $5M in reserves, and it is his understanding that it is used for emergencies, and if the lagoon is not doing well and needs baffle boxes, since the lagoon is natural why don't we use money for that and if we have roads that need repair, why aren't we using some of that money and where is it stated that we can't shuffle some of that money rather than raise people's taxes and go with the rolled -back rate. He said he was surprised there were not more people here asking Council not to raise taxes, noting the County is planning to raise taxes. He said he agreed the lagoon and roads need to be addressed, the City has done a good job in balancing the budget and not raising taxes. He asked if there would be a difference if a hurricane did happen and we had $4.9M in reserves and not $5M. He asked them to reconsider looking at the rolled -back rate instead of the rate brought forward by the Budget Board. Mayor McPartlan agreed there he wished there were more people here and at Budget Board meetings, said we had good members on the Budget Board, all meetings were televised, and asked Mr. Griffin to allude to what would happen if we go into our reserve, and how much money we had to pay out previously. The City Manager said it was explained extremely well at one of the Budget meetings by Mr. Killgore who said it is not about the first hurricane but the one that comes a week later, which can deplete reserves extremely fast. He said the City is somewhat shell-shocked and wants to retain that reserve. He went on to say we have street paving in the next budget for Fleming, Coolidge, Englar, and Tulip with the 3.7166 millage, which would add $200K to the budget, and we are purchasing a 3 Special City Council Meeting September 15, 2014 Page Four B. baffle box down on the lagoon. He said he totally concurs with Mr. Kilgore's analysis on the preserving the reserve fund. Mayor McPartlan asked at the rate we are going on repaving streets with what we are putting in now, is that sustainable. The DCD said that is a difficult question, noting he would be finishing maps in a couple of weeks, and described that deterioration caught early on can be repaired with slurry seal and overlay, but if you wait it may be total reconstruction, and those costs can be millions of dollars. He said it is difficult to say what the cost of repairs will be unless you do bore samples, noting we have a lot more roads showing cracking than we did in 2012. Ms. Coy said it is not only more costly but it takes more time to completely rehab a road, citing the current Presidential streets which is a total rehab. She said in regard to emergency funds she arrived on Council in March 2005 right after the hurricanes and remembers what we went through and all the emergency allocations to clean up little things, and that she was not for touching the emergency fund. Mr. Adams said we have been talking about extra funds that we have in the budget, noting at 3.7166 we still have $200K above a balanced budget, and although it is not earmarked for the lagoon or roads it can be used as such, noting there is already funding in the budget for roads at the current millage. Adopt Resolution No. R-14-20 - Proposed Millage Rate for Calendar Year 2014 - Final Public Hearing and Final Adoption Scheduled for 9/24/14 (Transmittal, R-14-20) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY , FLORIDA, ADOPTING A PROPOSED MILLAGE RATE OF 3.7166 MILLS FOR THE CALENDAR YEAR 2014; PROVIDING FOR CONFLICTS ; AND PROVIDING FOR AN EFFECTIVE DATE. MOTION by Mayor McPartlan and SECOND by Ms. Coy to raise the millage to 3.8556. Mr. Hill said the City Manager had a balanced budget at rolled -back rate with all financial obligations for our bargaining units and all City services being met, and the City Manager recommended before and today to adjust that rate to 3.7166 so we can add an extra $200K to do road paving, and there are projects already in the budget that help the lagoon. He said he would never favor creating funds for just in case, and found embarrassing the justification for creating slush funds and bloating our government. He noted next year the base line will be whatever you vote for now, and we are hearing we can do whatever we want with this extra money, and this is a slush fund and is completely against anything anyone on this dais said they would do, that we won't raise taxes unless all other options are exhausted. He said the rolled -back rate maintains the level of service this community has and pays our employees what they are obligated to be paid, the City Manager found we need a little more for road paving and he agrees with that. He said we are creating funds we can move around for whatever we decide to use it for, and there is no line that says these funds are for baffle boxes. He again said the City Manager said we don't need this money, and closed by saying he would never vote to create slush funds. 4 Special City Council Meeting September 15, 2014 Page Five Ms. Coy said she agreed with not creating slush funds, and if we follow the Budget Board recommendation to earmark $100K for baffle box grant matches or septic tank hookups, or matching grants for county project that might be coming up for the lagoon, and we budget $15K for COPs match and follow what the committee recommends, each and every one, she would not consider that slush but would consider it planning. She said if we don't spend money on the lagoon we must be missing something because there is plenty to do out there. She requested that this be allocated for a lagoon project and if we don't spend the money next year we can do rolled -back plus or put it back in to resurfacing. She said we have zero dollars for AAF and it would have to come out of reserves. She said she thought the Budget Review Board did a great job and gave great suggestions, adn if we don't use the money for roads it can go back in next year, or back into the tax base. She said she told someone today the two most important issues before Sebastian today are the lagoon and AAF. Mayor McPartlan said the two highest attended meetings are AAF and lagoon. Mr. Gillmor said he appreciated the Budget Board and all they did, watched them on TV, there was lively discussion, there were folks adamant against increasing the millage but the suggestion that there are slush funds in the budget, he did not see that. He said we just passed a budget resolution that moves around thousands of dollars, because every quarter we have a budget amendment, and a budget is just a picture of what may be happening next year and none of us has a crystal ball, and he did not see how you can mail everything down to the penny and a budget is just a suggestion of where we put our money and we do a pretty good job. He said we could probably get unanimous consensus at 3.7166 but that would not put money toward the lagoon. He said Board member Bill Flaherty said he didn't know of one person who lives in Sebastian that would begrudge $5 more for the lagoon or AAF, and we are looking at roughly ten cents a week to get the extra money. He said he supported 3.8556 mills and said we need to budget $200K toward the roads. Mayor McPartlan said Council has been extremely fiscally responsible over the past decade and has not created any slush funds. Roll Call: Ayes: McPartlan, Coy, Gillmor Nays: Hill, Adams Passed: 3-2 C. Adopt Resolution No. R-14-21 - Fiscal Year 2014/2015 Tentative Budget (Transmittal, R-14-21) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2014 AND ENDING SEPTEMBER 30, 2015; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON THE BONDS AND OTHER INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT SERVICE FUND, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AIRPORT FUND, AND BUILDING DEPARTMENT FUND AS PROVIDED FOR IN SCHEDULE "A", ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR SEVERABILITY ; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. MOTION by Ms. Coy to approve Resolution No. R-14-21 tentative budget. 5 Special City Council Meeting September 15, 2014 Page Six The City Attorney advised that the motion include as amended by the Budget Advisory Board's specific recommendations relating to MOTION restated by Ms. Coy to adopt Resolution No. R-14-21 tentative budget 2014- 2015 to include the Citizens Budget Review Advisory Board recommended additions. SECONDED by Mayor McPartlan Roll Call: Ayes: Coy, Gillmor, McPartlan Nays: Hill, Adams Passed: 3-2 Mayor McPartlan announced that the final public hearing on the millage and budget will be held on Wednesday, September 24, 2014 at 6:30 pm at our regular meeting. The City Attorney said the City Manager should now identify the budget that was approved by City Council. The City Clerk added announce percentage of millage over rolled -back rate. The City Manager announced the new proposed millage rate of 3.8556 which is 8.77% higher than the rolled back rate of 3.5446 mills. 5. Being no further business to come before Council, Mayor McPartlan adjourned the Special Meeting at 6:55 p.m. Approver, t fhe Sep���, 2014 Regular City Council Meeting. By: Bob McPartlan, Mayor ATTE T: Sally A. Maio, City ' lerk 6 First Public Hearing FY 2014-15 Millage and Budget Presentation to City Council First Public Hearing on Millage and Budget Monday, September 15, 2014 Prepared By: Ken Killgore, Admistrative Services Director First Public Hearing FY 2014-15 Millage and Budget • Staff Initially Balanced the Budget Assuming 3.5446 Rolled -back Rate • Presented to: • Budget Review Advisory Committee • Parks and Recreation Board • Planning Board • City Council (Special Meeting 08/11/14) 9/25/2014 1 First Public Hearing FY 2014-15 Millage and Budget • With 3.8556 Millage: • Adds $265,038 Above Rolled -back Rate • Can Cover Committee's Recommendations • $100,000 Homestead Property: • $185.83 in 2014 vs. $195.67 in 2015 • $9.84 or 5.3% More (1.5% Limitation) • Non -Homestead Property: • $371.66 in 2014 vs $404.45 in 2015 • $32.79 or 8.77% More First Public Hearing FY 2014-15 Millage and Budget • Staff Recommends the 3.7166 Millage to Address Needed Street Resurfacing • The $1 Million Previously Reported Need is Really a Much Higher Amount • Delays Will Result in Additional Cost 9/25/2014 3 First Public Hearing FY 2014-15 Millage and Budget • Special Revenue Funds: • Riverfront CRA - Using for Hurricane Harbor, Quality Maintenance, Special Events, Facade/Sign Program, Sewer Connection Program, Presidential Streets, Park Tables & Benches • Parking in Lieu Of - Using to Add Parking • Law Enforcement Forfeiture — Police Items Cemetery - Depleted from Property Purchase First Public Hearing FY 2014-15 Millage and Budget • Golf Course: • Largest Expense is Maintenance Contract • Bank Note Payments for Equipment and Carts • 5% of Revenue Placed in Capital Fund Airport: • Paying Legal Advance and DST Hangar Loan • $20,000 for Economic Development Advertising Building: Vehicles & Payback of Business Taxes 9/25/2014 5 First Public Hearing FY 2014-15 Millage and Budget • City HaII/Police Station Bank Note: • $3,750,000 Balance — 2018 - $1,013,315 Payment • Stormwater Bank Note: • $2,910,000 Balance — 2022 - $439,929 Payment • Paving Bank Note: • $1,896,000 Balance — 2022 - $242,783 Payment • Golf Bank Notes: • $24,347 Balance — 2015 - $20,011 Payment (Equipment) • $252,826 Balance — 2017 - $57,076 Payment (Carts) First Public Hearing FY 2014-15 Millage and Budget QUESTIONS? 9/25/2014 7 FINAL BUDGET REVIEW AND RECOMMENDATIONS ORIGINAL BUDCOM RECOMMENDATION RAISE ADDITIONAL FUNDS $265,000 PROPOSED TAX RATE 3.8556 • I.R LAGOON • ALL ABOARD FLORIDA • C.O.P.S GRANT • ROADS $100,000 $50,000 $15,000 $100,000 9/26/2014 1 CITY COUNCIL RESPONSE - VOTED TO SET T.R.I.M. AT 3.8556, RAISING $265,000 COUNCIL RESPONSE: DEVELOP SPECIFIC SUGGESTIONS FOR EACH PROPOSED ITEM. INDIAN RIVER LAGOON 7 UNAPPROPRIATED BAFFLE BOXES COSTS: • 7 BAFFLE BOXES @$5o,000 $350,000 • ESTIMATED INSTALLATION $350,000 TOTAL $700,000 • USE $ioo,000 FOR GRANT/SEED MATCHING FUND. FIND GRANTS! 9/26/2014 2 ALL ABOARD FLORIDA SUGGESTED APPROPRIATION $5o,000 SPECIFIC USES: • HIRING EXPERTS/LEGAL/ENGINEERING CONSULTANTS • EXPERT EXAMINATION OF E.I.S. DOCUMENT • "QUIET ZONE" APPLICATION/FUNDING • CROSSING SAFETY • INVESTIGATE CITY LIABILITY AND COSTS PROJECT SPECIFIC FUNDING C.O.P.S GRANT MATCH ADDED ROAD PAVING $15,000 $100,000 These items have specific funding designations. 9/26/2014 3 BUDGET SURPLUS RECOMMENDATION BUDGET SHOWS NET SURPLUS OF $57,000 AS A RESULT OF LOWER BENEFIT COST AND INCREASE PROPERTY, CASUALTY, WORKMEN'S COMP PREMIUMS. BUDCOM RECOMMENDS $57,000 BE PLACED IN THE ROAD PAVING ACCOUNT BUDCOM SUMMARY KEEP FINAL MILLAGE AT 3.8556 RAISE $265,000 USE $265,000 FOR SPECIFIC ITEMS: • I.R. LAGOON PROJECT • ALL ABOARD FLORIDA CONSULTANTS • C.O.P.S. GRANT • ROAD REPAVING ADD $57,000 SURPLUS TO ROAD REPAVING 9/26/2014 4 BUDCOM RECOMMENDATIONS THESE ARE RECOMMENDATIONS FROM THE BUDGET COMMITTEE FOR THE CITY COUNCIL'S CONSIDERATION. 9/26/2014 5 SEBASTIAN BUDGET .. REVIEW COMMITTEE FINAL BUDGET REVIEW AND RECOMMENDATIONS 'INAL BUDCOM MMENLA'ION RAISE ADDITIONAL FUNDS $265,000 PROPOSED TAX RATE 3.8556 I.R LAGOON $loo,000 ALL ABOARD FLORIDA $50,000 C.O.P.S GRANT $15,000 ROADS $100,000 SPONSE VOTED TO SET T.R.I.M. AT 3.8556, RAISING $265,000 COUNCIL RESPONSE: DEVELOP SPECIFIC SUGGESTIONS FOR EACH PROPOSED ITEM. INDIAN RIVER LAGOON 7 UNAPPROPRIATED BAFFLE BOXES COSTS: 7 BAFFLE BOXES @$5o,000 $350,000 ESTIMATED INSTALLATION $350,000 TOTAL $700,000 USE $100,000 FOR GRANT/SEED MATCHING FUND. FIND GRANTS! ALL ABOARD FLORIDA SUGGESTED APPROPRIATION $50,000 SPECIFIC USES: • HIRING EXPERTS/LEGAL/ENGINEERING CONSULTANTS • EXPERT EXAMINATION OF E.I.S. DOCUMENT • "QUIET ZONE" APPLICATION/FUNDING • CROSSING SAFETY • INVESTIGATE CITY LIABILITY AND COSTS DROJECT SPECIFIC FUNDING C.O.P.S GRANT MATCH ADDED ROAD PAVING $15,000 $100,000 These items have specific funding designations. BUDGET SURPLUS RECOMMENDATION BUDGET SHOWS NET SURPLUS OF $57,000 AS A RESULT OF LOWER BENEFIT COST AND INCREASE PROPERTY, CASUALTY, WORKMEN'S COMP PREMIUMS. BUDCOM RECOMMENDS $57,000 BE PLACED IN THE ROAD PAVING ACCOUNT BUDCOM SUMMARY KEEP FINAL MILLAGE AT 3.8556 RAISE $265,000 USE $265,000 FOR SPECIFIC ITEMS: • I.R. LAGOON PROJECT • ALL ABOARD FLORIDA CONSULTANTS • C.O.P.S. GRANT • ROAD REPAVING ADD $57,000 SURPLUS TO ROAD REPAVING BUDCOM RECOMMENDATIONS THESE ARE RECOMMENDATIONS FROM THE BUDGET COMMITTEE FOR THE CITY COUNCIL'S CONSIDERATION.