HomeMy WebLinkAbout07-09-2009 Minutes WorkshopCITY COUNCIL BUDGET WORKSHOP MEETING
CITY HALL ANNEX
111 Polk Avenue, Cape Canaveral, Florida
THURSDAY
July 9, 2009
5:30 PM
MINUTES
CALL TO ORDER: The Chair called the Meeting to Order at 5:30 P.M.
ROLL CALL:
Council Members Present:
Mayor Pro Tem
Council Member
Mayor
Council Member
Council Member
Others Present:
City Manager
City Clerk
City Treasurer
Building Official
Recreation Director
GENERAL FUND
5:30 P.M. — 5:45 P.M.
Overview of the Budget
Bob Hoog
Buzz Petsos
Rocky Randels
Shannon Roberts
Betty Walsh
Bennett Boucher
Susan Stills
Andrea Bowers
Todd Morley
Robert Lefever
Mr. Boucher announced that the City Budget of $13.6 million.
• Property taxes were decreased 17 percent.
• Few increases in revenues; however, there was a minimal increase in the Local
Option Sales Tax Fund.
• City Council had the option to go to the rollback rate.
• No anticipated wage increases in this Budget for the employees; however, there
were no layoffs.
• Streets -Maintenance would be supported by the Community Service Program.
The Ridgewood Avenue project required much funding. The Sewer Fund is doing better
with a 6 percent rate increase. No increase was requested on the Stormwater Fund.
Mr. Ratliff was consistently seeking grant funding for Stormwater.
City of Cape Canaveral, Florida
City Council Budget Workshop Meeting
July 9, 2009
Page 2 of 8
Mr. Boucher informed that the City Treasurer worked to present a more narrative
Budget document to provide a better financial picture to the Council and the public.
Council could use the new format to review the services and then discuss and modify
how to proceed.
Mr. Boucher stated that no area of Parks and Recreation was cut in an effort to
continue Leisure Services during tough economic times. Mr. Boucher stated that there
were many projects that could be done if there were funding; however, this was a time
for the Council to consider the City's core services and projects.
Mr. Boucher explained that Budget discussion must conclude by July 28"' by
State Statute in order to set the Property Tax Rate before the appointed time of
August 4, 2009
Ms. Roberts wondered if the City Manager was seeking to use the tough economic time
to make any changes to the way City Management planned to amend and strive for
greater efficiency. Mr. Boucher replied that Management Staff planned to maintain
services while maintaining their Budgets. He stated that the City Council had the option
to make amendments in some areas such the number of Law Enforcement personnel.
Mr. Boucher stated his understanding from the Council to not eliminate any positions.
Ms. Roberts stated that she was seeking new initiatives and new, fresh ways of doing
more with less. Mr. Boucher informed that wages and benefits was an area of
consideration for levels of service. Ms. Roberts addressed anticipated levels of
planning and cost analysis related to levels of service. Ms. Roberts also addressed the
need to address the roles and responsibilities of Staff.
Ms. Walsh addressed with the overall revenue relative to the City employees and also
how she did not see a 5 -year plan for infrastructure maintenance. Mr. Boucher
responded that funding was allocated for the Ridgewood Avenue projects and other
projects that would unfold during the Budget discussion process.
Ms. Bowers explained how some of the Departments would explain their forthcoming
plans. Ms. Walsh recalled that she saw a 5 -year plan in the 2008/2009 Budget
document. Ms. Bowers replied that any Capital expenses for projects were coming
from Reserve Funds. Ms. Walsh stated that some of the projects slated for the 2009/
2010 year were not identified over subsequent years in the 5 -year plan.
Ms. Roberts stated her agreement with Ms. Walsh and the difficulty of making real-time
decisions with the information available at this time. Ms. Bowers explained that the
Departments were working toward depicting a 5 -year plan; however, the
Department Heads needed feedback from the City Council on what is expected from
them by way of planning. Ms. Walsh inquired about a possible balloon note. Ms.
Bowers ensured that there was no balloon note due.
City of Cape Canaveral, Florida
City Council Budget Workshop Meeting
July 9, 2009
Page 3 of 8
Mayor Randels referred to the previous year's Budget and pointed out how an
infrastructure projects appeared to be pushed back to later years; however, at this
point some projects were up to $1 million. Ms. Bowers stated that the Rate Study was
performed; however, the City Council chose not to take action. Mr. Boucher pointed out
that other cities were eliminating positions in order to take action on their projects.
5:45 P.M. — 6:30 P.M.
General Fund Revenuel Ad Valorem Taxes
Mr. Boucher referred to Page 2 and noted that Ms. Bowers depicted segmented
Revenues with a graph which was something new. Ms. Bowers stated that the
Revenues displayed were strictly for the General Fund. She explained that the City had
no projected General Fund Revenues. Ms. Bowers referred to Page 15 for a complete
listing of what would be purchased out of Cash Reserves. She noted that the $160,000
from Brevard County for the roadway paving was included.
Ms. Bowers referred to Page 96 for a breakdown of how she calculated the cost for
the Ridgewood Avenue project. Mayor Pro Tem Hoog asked if the decorative street
lighting amount was decreased because they would only be installed at major
intersections. Ms. Bowers affirmed. Ms. Bowers pointed out that the costs on Page 93
were not identified in the calculations on Page 96. Ms. Bowers stated that since a Bid
Proposal did not go out yet for the project, the costs shown were educated guesses at
best.
Mr. Boucher asked if there were any questions related to Ms. Bowers cost estimates.
Ms. Roberts expressed her appreciation for the new format of the Budget document.
Ms. Bowers replied to Ms. Roberts that she would add to the document as the
Department Heads gain feedback from the Council on which projects were a priority.
The Department Heads at this point, however, needed a specific target.
Ms. Roberts reminded of the importance of a City Council Goals and Objectives
Meeting. Ms. Bowers pointed out that there were generic overall goals such as:
providing good customer service; however, there was no overarching goal.
Mr. Boucher referred to the Property Tax sheet which the City Treasurer drafted saying
that this is the place where City Council needed to be concerned. He noted that the
City Council increased a higher level of service for both Law Enforcement and Fire and
Emergency Management Services. If the City Council did not choose to employ the
rollback rate, then other Departments might incur some impact. Mayor Randels
clarified that if the City desired to perform the same service, then it could not be done
for the same $600,000.
Ms. Roberts noted that the burden of proof, legislatively, was now on the Property
Appraiser's office instead of with the owner. Ms. Roberts also observed that the City
r was still a donor City to the County. Ms. Bowers informed that the Final Valuations
City of Cape Canaveral, Florida
City Council Budget Workshop Meeting
July 9, 2009
Page 4 of 8
would arrive some time around July 16th or July 17�h. Mr. Boucher referred to how
the take rollback would help the Council to arrive at the same amount of revenue.
Mayor Randels noted that the City's taxable property values were reduced from 1.46 to
1.31. Mr. Boucher explained that the Council could establish the tax rate at the rollback
rate of 3.69 mills. Mayor Pro Tem Hoog asked what the 3.69 would mean to the voter
approved Referendums for: Law Enforcement, Fire and Emergency Management
Services, Beautification, and the Library Ad Valorem taxes. Ms. Bowers stated that the
numbers, however, were coming in before resident appealed their appraised value. Ms.
Roberts noted the possibility of a collective of residents appealing their property tax
rates.
Ms. Bowers confirmed that getting more was not an option at this point. Ms. Walsh
stated that if the City Council decided to go with the rollback rate then the City
needed to proceed with a full-scale informational plan that addresses all aspects of the
City's services. Ms. Roberts agreed that the City would need to explain to the resident's
what was planned for any anticipated Revenue. Ms. Bowers stated that the City's Ad
Valorem was the lowest in the County; and how City Staff does much with little. Mayor
Pro Tem Hoog emphasized that the residents want to know how their tax dollars are
being used and what they see on the Tax Bill is not all City revenue.
6:30 P.M. — 7:15 P.M.
Legislative, Administration, Legal,
Garbage, Business 8 Cultural Development and
Non -Departmental
Mayor Randels referred to Page 19 through 27. Mr. Nicholas noted a correction, "that
the City Council was established in 1970." The City Treasurer took note. Ms. Roberts
addressed Management related issues and requested to add, strategic policies in the
Legislative description. For the record, Ms. Roberts recommended an increase in the
City Council salaries as an incentive to those candidates who choose to run for City
Council. Mayor Pro Tem Hoog expressed his disagreement given the economic times.
Ms. Roberts referred to the organizational Membership list and requested to know the
cost of memberships and who represented the City in that organization. Ms. Walsh
asked if the list at hand was in its entirety. Ms. Roberts asked for a more detailed
breakdown of the Legislative memberships cost to know what the Council would like
to continue, discontinue, or join. Ms. Bowers would provide that information.
Mayor Pro Tem Hoog asked if there were any benefit to the City being a member of the
Navy League and the Civilian Military League. Ms. Bowers replied that one of the
memberships was a fairly expensive. Mr. Boucher suggested that City Council trade
out the Civilian Military League membership for aNational League of Cities
membership. Ms. Walsh agreed. Mayor Pro Tem Hoog emphasized knowing the
benefit of the City's belonging to any organization.
City of Cape Canaveral, Florida
City Council Budget Workshop Meeting
July 9, 2009
Page 5 of 8
Mayor Randels informed that under Legislative Capital; Mayor Pro Tem Hoog and Mr.
Petsos were due for new computer purchases. Mayor Pro Tem Hoog replied that he
did not desire a new laptop. Ms. Roberts asked why the Staff could not perform
computer set-up internally. Ms. Bowers reminded that the City has no on -board IT Staff.
Mr. Boucher stated that they could revisit discussion on IT assistance.
Ms. Roberts stated that she was seeking more detail related to Legislative: Professional
Services, Travel and Per Diem, and Awards and Recognitions. Ms. Bowers referred to
Page 23 for the related narrative of the designated account. Ms. Roberts asked if the
Web Site was accounted under the Legislative account. Mayor Randels explained that
a previous Council agreed to have a Web Site.
Ms. Bowers explained further that the Web Site was a promotional for the City and was
therefore attributed to the City Council. Ms. Walsh asked about the City Elections
pointing out that $10,000 was budgeted in the previous year and asked if this could be
done in some other fashion, perhaps to stagger the term years. Mayor Randels referred
to the estimated bill for the November 2009 Election of $12,000.
Ms. Roberts clarified that Ms. Walsh meant to stagger the Elected Officials terms for a
longer than three year period of time. However, Mr. Nicholas pointed out that an
election would occur anyway due to State referendums and asked who pays for the
election if the City did not have something on the ballot. Ms. Bowers replied that the
Supervisor of Elections Office could provide that answer.
Mayor Randels asked if there were any questions related to Page 22. Ms. Walsh noted
that there could be a step-up plan. Mayor Randels stated that the Charter Committee
could address, City Council Compensation. Ms. Roberts addressed training for the City
Council such as, Institute of Municipal Elected Officials which Ms. Walsh recently
attended. Mr. Boucher reminded that the Council needed to tell Staff which functions
they planned to attend and who planned to attend it. Mayor Randels informed that
the total Budget for the City Council was $60,057 with a reduction of $25,000 based
on the completed Oral History Video project.
Ms. Roberts asked if the entire Promotional budget for the City and the City Council was
included in the $2,000 in the Legislative budget. Mr. Boucher explained that the
Promotional items for the City Council were the ceremonial tokens of appreciation to
designated individuals and organizations. Mr. Boucher asked if there was any thing
else that the Council would like to see included in its budget.
Ms. Roberts requested to revisit the Space Coast Economic Development Council and
National League of Cities memberships. Ms. Roberts also requested a workstation and
a lateral file drawer for City Council member's documents which could be kept as
convenience records on-site at City Hall. Ms. Walsh asked if City Hall has wireless
capability. Mr. Boucher affirmed. Mr. Boucher pointed out that further planning was
necessary to set up an area for the Council. Mr. Boucher stated that he could purchase
City of Cape Canaveral, Florida
City Council Budget Workshop Meeting
July 9, 2009
Page 6 of 8
furniture and buy a workstation to set-up the vacant room in City Hall by the end of
July for City Council's use.
Mr. Boucher recapped anticipated change to the Legislative account:
■ List of Memberships and description
• City Council Salaries
■ Capital cost for computers
■ Location for City Council in City Hall
Ms. Walsh clarified that City Council salaries could be changed through the Charter
Committee review. Mr. Nicholas reminded that some provisions in the Charter could be
changed without a Referendum.
Mayor Randels referred to Pages 29 through 36. Ms. Roberts inquired about the
Human Resources capabilities. Mr. Boucher responded that he was testing the market
for either a full-time position or seeking a Human Resource consulting service. Ms.
Walsh referred to the Administrative Staff saying that amount to a Staff of 4.5 people
total.
Mayor Pro Tem Hoog referred to Mr. Petsos' questions on Page 31 and asked why
there was a 50 percent increase in overtime. Mr. Boucher replied that this related to
additional City Council Meeting attendance for the Recording secretaries. Ms. Roberts
sought a work -flow analysis of Board Meetings as they relates to overtime. Mr. Boucher
replied that he would obtain the number of Workshops that City Council held in the
previous year. Ms. Walsh brought up if the legal fees were included in the accounting
structure. Mr. Boucher stated that the Legal budget discussion would occur later.
Ms. Roberts questioned why there was no Major Accomplishments section for the
City Council. Ms. Bowers responded that Council Members did not submit one. Mr.
Boucher clamed that he would return to the Council with information related to the
Human Resources services. Ms. Bowers clarified that overall salaries did increase by
1 percent due to merit increases. Ms. Bowers emphasized that the Council was looking
at current salaries that had increases prior to the new Budget year of 2009/2010.
Ms. Roberts asked if the position for the Acting Deputy City Clerk would be changed to
that of Assistant City Clerk. Mr. Boucher replied that it could if Ms. Goforth planned to
go that career path.
Ms. Walsh pointed out the cost of $50,000 for Audit services. Mayor Pro Tem Hoog
asked if the City could re -bid the service. Ms. Walsh noted a 15 percent increase. Ms.
Bowers clarified that this was inclusive of three years and an extensive audit due to
changes in the Government Accounting Standards Board requirements. Mr. Boucher
requested to have their Engagement Letter by month's end in order for the Council to
make an informed decision. Ms. Bowers stated that Health First provided its high end
renewal estimate; however, Health First is the most highly competitive in the market.
City of Cape Canaveral, Florida
City Council Budget Workshop Meeting
July 9, 2009
Page 7 of 8
Mr. Boucher informed that the League has also reduced their Property/ Liability
insurance premium.
Ms. Roberts asked if there were a benchmark comparative related to the other
municipalities Pensions. Mayor Randels explained that the City does a Defined
Contribution whereas others municipalities give a Defined Benefit. Ms. Roberts
mentioned the need for comparative analysis information. Mr. Boucher noted a
potential impact in costs related to outsourcing Human Resources versus performing
the job in-house.
Mayor Randels referred to Pages 82 and 83: Legal. Ms. Roberts requested to see a
Major Accomplishments list from the Legal Department. Ms. Walsh inquired about
Specialized Legal Services. Ms. Bowers replied that it referred to Legal representation
beyond what the Insurance carrier covers. Ms. Roberts expressed her concern about
using an Attorney to draft the Employee Handbook at a charge of $130 per hour.
Ms. Bowers stated that these are the trends related to existing properties. Ms. Walsh
asked about the Franchise fees. Mr. Boucher replied that the fees were in the roll -offs
and were about $30,000.
Mayor Randels referred to Pages 86 and 87. Ms. Roberts recommended moving the
Space Coast Economic Development Council membership of $3,500 to the Legislative
budget since it relates to the Council functions. Ms. Roberts also suggested obtaining a
discounted rate. Mr. Boucher replied that they would discuss it at a later time. Ms.
Roberts emphasized the need to find out what the City Council intended to do relative to
this Board.
Ms. Walsh referred to the training for this Board and asked if other Board's also had
training funds. Mr. Boucher affirmed. Ms. Roberts asked if Staff received input from
the Boards on their budgets. Mr. Boucher explained that he spoke with Ms. Joanne
Muncey regarding tactical planning. Ms. Bowers informed that Staff attended local
training opportunities.
Mayor Randels referred to Pages 88 through 95. These were expenses non -related to
a Department or a General Fund. Mayor Randels asked how things would be
maintained. Mr. Boucher explained that the Council was on the other side of an
economic boom. Ms. Walsh pointed out that the planning related to future endeavors
collecting money over the years for contingencies. Ms. Bowers clarified that funding
was set aside. She re -stated that although revenue analysis was performed, no action
was taken.
Ms. Bowers stated that each year a 5 -year plan was performed; however, each year the
plans change. Ms. Roberts pointed out that the City planned in 5 -year and not longer,
for instance, 20 -year plans. Ms. Roberts stated that the Council relied for Staff for the
benefits analysis to help them make decisions. Ms. Bowers replied that Staff was
City of Cape Canaveral, Florida
City Council Budget Workshop Meeting
July 9, 2009
Page 8 of 8
working toward the type of analysis that Ms. Roberts anticipated; however, providing the
information would be performed incrementally.
Ms. Roberts reminded of the importance of the Beach Re -nourishment and Sand Fence
projects. Ms. Walsh also reminded that the Sand Fences were completed it was a
matter of obtaining the permits for their installations.
7:15 P.M. — 8:00 P.M.
Special Revenue Funds
Police Education Fund
Fire Protection Fund
Ms. Bowers clarified that money was collected for the next fire truck purchase. Impact
fees were also available Ms. Walsh pointed out that if the Impact Fee funding was not
used in 7 or 8 years in had to be turned back in. Mr. Boucher assured that a truck
would be purchased.
Mayor Randels referred to the Library Fund for maintaining the building and landscaping
the grounds. Ms. Bowers informed that General Fund Insurance was over -budgeted
last year. Ms. Bowers stated that there was Contingency money left over and she put
$13,000 aside for getting books since the Library funding was cut at the County level.
Mayor Pro Tem Hoog reminded that money was also needed to refurbish the Meeting
room. Ms. Walsh asked if there were Library Impact fees. Ms. Bowers stated that there
was funding in Impact Fees to refurbish the room.
Mr. Boucher informed that the number would change as he was seeking Library Impact
fees. Mayor Randels informed that there was a balance of $82,000 in Library Impact
Fees.
Ms. Walsh asked about the Communication Services tax. She also asked about the
Department of Revenue Land Development database. Mr. Boucher ascertained that
Ms. Bowers monitors that database.
ADJOURNMENT:
There being no further business, the Chair adjourned the Meeting at 8:00 P.M.
Susan Stil(s, C C; Int rim -CITY CLERK
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