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Home My WebLink Aboutcocc_council_mtg_minutes_20220719_budget_workshopCAPE CANAVERAL CITY COUNCIL BUDGET WORKSHOP MEETING City Hall Council Chambers 100 Polk Avenue, Cape Canaveral, Florida 32920 Tuesday July 19, 2022 5:00 P.M. MINUTES CALL TO ORDER: The Chair called the Meeting to Order at 5:02 P.M. Council Member Willis led the Pledge of Allegiance. ROLL CALL: Council Members Present: Council Member Mayor Pro Tem Mayor Council Member Council Member Kim Davis Mickie Kellum (via webinar) Wes Morrison Angela Raymond (via cell phone) Don Willis Others Present: City Manager City Attorney City Clerk Administrative/Financial Services Director Deputy Finance Director Capital Projects Director Capital Projects Deputy Director Community and Economic Development Director Community and Economic Development Deputy Director Deputy City Clerk Executive Assistant to the City Manager/Office Manager Human Resources/Risk Management Director Leisure Services/Community Affairs Director Leisure Services Deputy Director Public Works Services Director Public Works Deputy Director Brevard County Sheriff's Office Commander Brevard County Sheriff's Office Lieutenant Canaveral Fire Rescue Chief PUBLIC PARTICIPATION: None. AGENDA ITEMS: Todd Morley Anthony Garganese Mia Goforth John DeLeo Jenny Coldiron Jeff Ratliff Tim Carlisle Dave Dickey Zachary Eichholz Daniel LeFever Lisa Day Melinda Huser Molly Thomas Byron Prevost Jim Moore June Clark Byron Keck Scott Molyneaux Dave Sargeant 1. Proposed Fiscal Year 2022/2023 Budget and Five (5) Year Capital Improvement Plan: City Manager Morley provided an overview of the Proposed Budget including what the potential outcomes would be if the Tentative Proposed Millage rate of 3.5596 mills is not City of Cape Canaveral, Florida City Council Budget Workshop Meeting • July 19, 2022 Minutes • Page 2 of 2 approved by the City Council as described in the handout distributed by Administrative/Financial Services Director DeLeo (see attached). Discussion ensued and included how the Rollback Rate should not be an option, inflation, supporting Staff, difficulties in retaining and hiring employees, competitive wages, rising prices for goods and services required for City operations, a desire to approve the Rollback Rate and risks, eliminating projects, difference between the General and Enterprise Funds, eliminating or postponing projects, contingency, renewal and replacement funding, protecting Police and Fire budgets, American Rescue Plan Act (ARPA) funds are not designated for taxes or debt, and how the City auditors advised against its use for salaries, support for the Tentative Proposed Millage Rate, some Council desire to meet with Staff again to review potential budget cuts, potential cuts to the Community Redevelopment Agency (CRA) budget and desire to have earlier and Budget Workshops. Council reached consensus to hold a City Council Budget Workshop Meeting on Tuesday, August 16, 2022 at 5:00 p.m. ADJOURNMENT: There being no further business, the Meeting adjourned at 5:58 P.M. Wes Morrison, Mayor Mia Goforth, City Clerk July 19, 2022 City Council Budget Workshop Meeting Attachment FY 22/23 Budget Impacts - General Fund • To sustain the FY22/23 Budget the proposed millage (3.5596) will require a 2/3 approval vote. • Inflation now at 12.5% is impacting the cost of materials and affecting several operational costs. (Govt. says 9.1%). • As a result the Florida minimum wage laws, the City has to implement an internal Compression increase for each employee based on current salary range. • Additionally, the inflation cost is severely affecting the Cost of Living for City employees. This will require an additional $2 increase in each employee's salary, just to keep somewhat in pace with mounting inflation. • Depletion of Contingency. • Decreased R&R. Possible Outcomes if the Millage is the 3.5596 is not attained • Retention of Employees will become more difficult. • Hiring new employees will also become more difficult/pay not competitive. • General Fund will have a $545K deficit. ( If Rollback is passed) • CRA will be reduced by $216K. (If Rollback is passed) • A Majority vote 3/5 mil. 3.3704 results in a reduction of $233k in the GF and 100k in the CRA. • Rollback Rate is 3.1757. As the City continues to lose key personnel, it will be up to Council to deliver, by approving a combined Millage rate of 3.5596. Staff had wanted to present a Millage of 3.8819, however, to limit the effect on taxes, Staff reduced the millage to 3.5596 which required Staff to remove 523K in operational expenditures. This proposed millage of 3.5596 will require a 2/3 vote by council. Anything less than that will require more cuts to the general fund and the need to potentially use ARPA funds to cover the shortfall. City Council for too long have been stuck on approving rollback rate all the way back to 2018. This conservative approach and desire to appease the citizens of Cape Canaveral has finally caught up to us. Inflation and the deteriorating economy has accelerated and compounded the issue. This maybe Council's most consequential vote in a long time. Budget Cuts • Contingency adjusted down from $420K to $230K. • Renewal and Replacement replenishment decreased from $240K to $124K. • Deleted IT position projected for FY22/23- $71 K decrease. • IM reductions $100K. • Non -Departmental -$50K. • General Fund reduced a total of $523K. ARPA Summary • FY 22/23 Budget $262K Non Departmental. • CIP WW-22 Clarifier Replacement — $2.5M. • CIP SW-4 Center Ditch Improvement- $470K ($200k FY23/24). • CIP SW-9 Center Street Basin Improvements $680K ($170K FY23/24). • CIP SW-10 Thurm Blvd$25k ($850K FY 23/24). • Total ARPA FY 22/23 - $2,762,000. • Total ARPA FY 23/24 - $1,220,000.