Loading...
HomeMy WebLinkAboutMinutes 07-17-2000 Budget Workshop Meeting1 1 1 CITY OF CAPE CANAVERAL BUDGET WORKSHOP MEETING CITY HALL ANNEX 111 Polk Avenue, Cape Canaveral, Florida Monday, July 17, 2000 5:30 P.M. MINUTES Council Members Present Burt Bruns Richard Treverton Buzz Petsos Rocky Randels Council Members Absent Larry Weber Others Present: Bennett Boucher, City Manager Susan Stills, Assistant City Clerk Ed Gardulski, Public Works Director Andrea Bowers, City Treasurer (Arrived at 5:40 PM) DISCUSSION: 1. Discussion: General Fund Beautification Fund Mr. Boucher reported a one -half mill ad valorem tax. He also highlighted the landscaping grant from Florida Department of Transportation. Mayor Randels questioned a Worker's Compensation rate of 19.4 percent for the Public Works Director. Mayor Pro Tem Petsos queried that the subsequent rates were also exorbitant. Mayor Randels proposed an increase in Keep Brevard Beautiful (KBB) funding due the its activities throughout the City. Council discussed and clarified that the inmate workforce was coordinated through the Streets/ Maintenance Department and not Keep Brevard Beautiful. Mayor proposed a $500 increase, from $2,000 to $2,500 due to the elimination of State funding. Mr. Treverton asked for clarification on KBB's activities to which Mayor related the number of programs available. Mayor Pro Tem Petsos queried the redundancy in the number of programs and asked if that were the reason for the State cut. Mayor Randels responded that there are no funds for Keep Florida Beautiful this year. Mr. Bruns emphasized how the City's volunteers play an active role in maintaining the City and did not favor an increase. 1 City of Cape Canaveral, Florida City Council Budget Workshop Meeting July 17, 2000 Page 2 Mr. Treverton questioned a 16 percent decrease in the Landscaping Bid. Mr. Gardulski responded that the landscaping maintenance bids were consolidated. Capital Expansion Fund for General Government (Impact Fees) Mayor Randels explained that these fees are collected with the issuance of Building permits and set aside for certain purposes. He asked why in recent years a contingency fund was not maintained for Police, Fire or Recreation. Ms. Bowers explained that Police and Fire were overextended this fiscal year. She reported that the Fire Department is repaying for the fire truck and the Police for the mobile data terminals. Ms. Bowers stated that General Government has set aside. Mayor Randels then clarified that funds are owed from those departments. Mr. Boucher referred to projected growth and the memo Mr. Reid submitted to Council. Mayor Pro Tem Petsos stated his preference to commit the Impact Fee funds. Ms. Bowers responded that the projected growth would pay back the impact fees. Mr. Bruns queried the $6,400 expense from the Library Fund. Ms. Bowers responded that she would research the expense. Overview of the Total Revenue and Total Expenses of the Sewer Enterprise Fund Mr. Bruns queried the 43 percent increase and the Sewer Assessment Fees. Ms. Bowers responded that this is Sewer Impact Fees. Mr. Bruns questioned on what could the funds be used? Ms. Bowers responded that the money could purchase what is needed. Mr. Bruns asked if these funds could be used for Capital Expenditures. Mr. Boucher clarified that Non - Impact Fee eligible programs maintenance projects come from the Revenue Fund. Mayor Randels reported on the $362,122 in interest in comparison to the ad valorem taxes of $427,000 for Police and Fire. Mr. Bruns queried the City's rating in the Bond market. Mr. Boucher responded that the State Revolving Loan would provide an example of the City's credit rating. Mayor Randels reported that $47.42 was owed per capital in 1990 that was reduced to $16 in 1994 and that no bonds are owed to date. Ms. Bowers replied that Bond debt is zero. Mr. Bruns asked if the City could issue Industrial Development Bonds for a business expansion. Mr. Boucher responded that there is a state statute that outlines the process. Mayor Randels related that the Commercial Development Board had discussed urban development. However, the concern of the Council at that time was overall taxing for the benefit of a small area. Ms. Bowers related that Mr. Boucher had found an allowance in the Ordinance for a percentage increase. Mr. Boucher stated that a cost of living adjustment is the allowance if Council chooses to adopt the rate mode. Mr. Bruns stated his desire not to restrict to the May 1 date if rates could be set at a subsequent time. Mayor Pro Tem Petsos stated that the Condos were in question when setting a date and he also queried why Council would not proceed with the three - percent increase. Mr. 1 City of Cape Canaveral, Florida City Council Budget Workshop Meeting July 17, 2000 Page 3 Boucher explained that May 1 is the noted date for the Consumer Price Index (CPI) adjustment and is reflected in the rate model. Mr. Bruns responded that data is not available at this time to make an informed decision prior to May 1. Ms. Bowers stated that staff could provide data at an earlier date if required. Mr. Bruns clarified that the consensus was to set the rates in Tight of the Condo Associations annual meetings in order to accommodate them setting their association fees. Mr. Treverton asked if the verbiage regarding the CPI would incur an additional three- percent increase. Mr. Boucher stated that the current ordinance provides the flexibility to implement the rate. Mayor Pro Tem Petsos expressed concern with using the variable CPI instead of locking in the City's rate at three- percent over five- years. Council agreed by majority to use the adopted rate model to schedule the sewer rate fees. Sewer Enterprise Fund Mr. Gardulski stated that an additional person was added and noted the plant supervisor's participation in Reclaimed Water activity. He expressed that he would like to see more flexibility and collateral duties among the staff. Mayor Randels clarified that the nine - percent increase is for an operator. Mr. Bruns noted a decrease in overtime in anticipation of an additional person. Mayor Pro Tem Petsos asked if mileage is substantiated. Mr. Gardulski responded that purchasing supplies necessitates leaving City limits. Mayor Pro Tem Petsos queried Worker's Compensation. Ms. Bowers responded that Worker's Compensation was set too low in previous years. Mr. Bruns questioned the lost time accident rate. Mr. Boucher responded that the City's multiplier is under one and still enables a discount. Ms. Bowers stated that the City's rate is .85. Operating Expenses Mr. Gardulski stated that an additional $20,000 is needed for re- permitting the reclamation facility with the Florida Department of Environmental Protection (DEP). Mr. Gardulski explained that the report is comprehensive. Mayor Randels included that this report includes any changes dictated from DEP. Mr. Bruns stated that this is another un- funded mandate. Mayor Pro Tem Petsos questioned the doubled amount in Communications service. Mr. Gardulski outlined the components in the fee. Mr. Gardulski pointed out the 52 percent increase on sand for the sand filters. Council discussed that although the problem would be resolved, the engineers would be addressed for malfeasance in the design. Mayor Pro Tem Petsos queried lab supplies. Mr. Gardulski responded that this is due to additional testing. Mayor Pro Tem Petsos questioned the Reclaimed Water supplies increase from $6,000 to $7,000. Mr. Gardulski stated that the project is near completion. Mr. Bruns queried a decrease in water pressure. Mr. Gardulski stated that once Phase IV is looped and completed the problem would be resolved. He affirmed that the pressure has reduced from 70 to approximately 50 pounds. Mr. Bruns asked for a definitive 1 City of Cape Canaveral, Florida City Council Budget Workshop Meeting July 17, 2000 Page 4 amount of pressure. Mr. Gardulski stated that a hydrological study is needed to review the system overall after Phase IV is complete. Mayor Randels recommended knowing the amount of pressure at different locations. Capital Outlay Mayor Randels referenced $115,000 for the sand filter replacement and design of the maintenance building. Mr. Treverton questioned the design expense. Mr. Gardulski responded that Stottler, Stagg proposed the cost at an hourly rate that included compliance issues for the locations. Sewer Enterprise Fund — Non - Departmental Expenses Mayor Pro Tem Petsos questioned the $600,000 cost for Phase IV of the Reuse project. Mr. Gardulski responded that the cost is $566,207.47 that included a larger pipe size and two jack and boor lines under A1A. Mr. Gardulski responded to Mr. Bruns that a 16 -inch pipe would be installed from the plant to A1A and 12 -inch pipe beyond that point continuing to Atlantic Avenue to loop the system. Mr. Gardulski responded to Mayor Pro Tem Petsos that United Space Alliance, the Post Office and the lot behind the Radisson would benefit from the service. Mr. Boucher added that the study stated that the system could provide 60,000 gallons per day. Mayor Pro Tem Petsos expressed concem with an inadequate water supply. Law Enforcement Trust Fund Ms. Bowers stated that the total contract is $3,008 using funds from the Law Enforcement Trust first and the General Fund. Five Year Capital Purchases Mayor Pro Tem Petsos questioned why there was not indicated set aside funds for road resurfacing. Mr. Boucher responded that the funds could be held in an Escrow account. Mr. Gardulski projected $50,000 per year. Council agreed by majority to set aside funds in Escrow for street resurfacing. Mayor Pro Tem Petsos queried the amount set aside in uncommitted funds. Ms. Bowers reviewed the funds that are set aside for capital expenditures. Ms. Bowers reported $1,885,000 and of that $1 million is set aside. She related that $10,000 is set aside for grant research, $10,000 for new technology, $9,600 for City Hall remodeling, $61,000 for street resurfacing, $10,000 for sidewalks and $15,000 for ditch maintenance. She stated that these are unused set aside funds however they are earmarked. She responded to Mayor Pro Tem Petsos that these funds would rollover over if that is Council's determination. She concluded that that is the total prior allocation for projects and equipment of $151,564. She referred to the total 1 1 City of Cape Canaveral, Florida City Council Budget Workshop Meeting July 17, 2000 Page 5 depleted in the 1999/2000 budget as the items in bold print. She explained that some of that might not be used in that they are the appropriated fund balance and cash forward from the 1999/2000 budget. The funds are earmarked for capital expenditures for the current year. She outlined that the retirement of the bonds, the pick -up truck for the Streets department, half the cost of the generator for the Police department and the Mobile Data Terminals are inclusive in the loan from the General Fund to the Capital Expansion Fund. Ms. Bowers reported that the $406,471 is money available for this budget. Mayor Randels questioned if $221,000 of those funds were appropriated. Ms. Bowers responded that of the $406,000; $131,470 is appropriated for this budget. Mayor Randels restated Council's desire to set aside funding for street resurfacing. Ms. Bowers related that Council could use a portion of the fund balance to set aside in other items. Mayor Randels affirmed for Mr. Treverton that what is set aside can be reallocated. Council also agreed to set aside funds for the City Hall renovation project. Mayor Pro Tem Petsos concluded that a definitive figure could be discussed to set aside the road resurfacing and the City Hall renovation at the regular City Council meeting. Ms. Bowers responded to Mayor Randels that the tentative proposed millage would t `set at the August 1 City Council meeting There being no further - business, the meeting adjourned at 6:52 P.M. Susan Stills, ASSISTANT CITY CLERK