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HomeMy WebLinkAboutMinutes 07-16-2013 Budget WkshpCITY COUNCIL BUDGET WORKSHOP MEETING CAPE CANAVERAL LIBRARY MEETING ROOM 201 Polk Avenue, Cape Canaveral, Florida TUESDAY July 16, 2013 4:30 PM MINUTES CALL TO ORDER: The Chair called the Meeting to Order at 4:30 P.M. ROLL CALL: Council Members Present: Mayor Pro Tem John Bond Council Member Bob Hoog Council Member Buzz Petsos Mayor Rocky Randels Council Member Betty Walsh Others Present: City Manager David L. Greene Assistant City Manager/City Clerk Angela Apperson Finance Director John DeLeo Community & Economic Development Director Todd Morley Planning & Zoning Director Barry Brown Leisure Services Director Gustavo Vergara Public Works Services Director Jeff Ratliff Public Works Services Deputy Director Lonnie Dunn Brevard County Sheriff Major Mike DeMorat Cape Canaveral Volunteer Fire Dept. Chief Dave Sargeant DISCUSSION: 1. Proposed Fiscal Year 2013/2014 Budget and Five (5) Year Capital Improvement Plan: Mayor Randels thanked everyone for attending the meeting. He noted the use of a binder instead of a bound book and the addition of a glossary and acronyms. City Manager Greene provided highlights of the Budget and Capital Improvement Plan noting: the overall budget is $28,289,312 with approximately 14 million dollars of Capital Improvements, some of which have been discussed as far back as the 1980's; deferred maintenance has caused a shift in expense; the established goals; the decline in taxable values over the years; the small improvements in taxable value for the fiscal year; the position allocations/justifications for additional staffing; the addition of the Community Redevelopment Agency and the need for redevelopment; the need to City of Cape Canaveral, Florida City Council Budget Workshop Meeting July 16, 2013 Page 2 of 4 improve the appearance of the City; how the Proposed Millage Rate compares to the surrounding communities and is one of the lowest in Brevard County; the use of reserves; the use of State Revolving Loan Funds for Capital Improvements; the payoff of existing Wastewater debt in relation to the anticipated loan payments; the General Fund contingency; employee benefits, insurance will be bid again this year; the City is not seen as a competitive employer because of the use of a defined contribution pension plan and the 10% contribution toward dependent health insurance coverage; the proposed 3% merit raise, a $250.00 employee appreciation bonus; no cost of living raise; tuition reimbursement and training dollars to increase employee skill set and sustainability; the use of a Renewal/Replacement Fund, which will be replenished yearly; an overview of the Special Revenue Funds; the increased transparency of the budget document; review of the Fire Station Project; the City Hall project; a proposed financing vs the investment returns; the North Atlantic Avenue Improvement Project and possible funding from Florida Department of Transportation/Space Coast Transportation Planning Organization, which may require delaying the project until Summer of 2014; the Enterprise Capital Fund, which depicts the capital expenses for the Wastewater and Stormwater Funds, the use of SRF Loans and the payoff of the existing Loans; the percentage breakdown of the budget by fund; and that the ongoing operational costs of the City are similar to prior fiscal years, with the majority of the increase in the budget being slated for Capital Improvements. Mayor Randels reviewed the following questions received from citizens and their answers: • Does the Budget contain a decrease in service? No, same level of service or higher. • Operational expenses over the past four to five years? Not much difference. • Millage Rate increase? No same as last year and previous year. • Cutting employees? No, a 3% merit raise based upon performance, a $250.00 Bonus with no furloughs or terminations, and adding additional employees. • Use of reserves for operations? No, financial stability is still there with the anticipation of Six Million Dollars at end of FY 13. • How are you going to increase property values? Working toward Envision Cape Canaveral by investing in Capital Improvements/Infrastructure. Mayor Pro Tem Bond noted the use of last year's Millage rate instead of the roll back rate will necessitate the advertisement to show a tax increase. Council Member Petsos indicated most individuals who contacted him had questions similar to those stated by the Mayor. He indicated most object to building a new City Hall, agreed to the Fire Station, but do not want to saddle others with debt for a new City Hall. Council Member Hoog indicated he has not received any phone calls; however, questions from people on the street include: When is North Atlantic Avenue going to be City of Cape Canaveral, Florida City Council Budget Workshop Meeting July 16, 2013 Page 3 of 4 renovated; the need for a Civic Center, how are we going to get it and where are we going to put it; and what will be done with the existing City Hall. He felt this is a good Budget; was fine with staying at the same millage rate as last year and complimented the additional transparency. It was agreed that Memberships/Training/Travel for the Legislative Department will increase to allow all Council Members to attend the Florida League of Cities Annual Conference as well as the Annual Legislative Meeting, should they so desire to do so and to remove the text noting Tuition Reimbursement for the Administrative Services Director on page 30, as the money was previously removed from page 31 . Council Member Walsh noted the hiring of a part-time Accountant for FY 12/13 and hoping to have it full time in 13/14; to which Mr. Greene replied by explaining the absence of an employee due to a medical situation, the need to meet the overall workload, improve the segregation of duties to reduce conflicts between the roles/responsibilities, the additional Capital Expenditures, which increases workload; and the need to improve sustainability. Mayor Randels read and explained the Program Objectives of the Community & Economic Development Department. Council Member Walsh indicated calls she received were related to the North Atlantic Avenue Project; the increase in Staff, cost of health insurance; and the financing for Capital Improvements due to the low interest rates. Council Member Hoog advocated for the addition of Staff in the Building Department due to the increase in permit activities; the need to allow for additional space to work and the efficiencies of our current Staff. He felt this was a good budget and urged for moving forward. Council Member Walsh also indicated questions she received included: the use of the roll back rate because property values have increased; the projected increase in health insurance costs. Mr. Greene explained the City needs to budget for insurance for all employees even though some employee may not utilize the service so as to ensure the money is available should that employee leave and the next employee need the benefit. City Manager Greene indicated the roll back rate could be used if that is Council's desire. He explained that although the City is approved to borrow 8 million dollars from the State Revolving Loan Fund, with lower construction prices the City should not have to borrow the entire amount. The addition of FDOT/TPO funds for the North Atlantic Avenue Project will put the City in a much better position to complete the Project without borrowing money. He also indicated the Budget Adoption will allow Staff to further study whether to borrow money or use reserves for the Fire Station and City Hall. City of Cape Canaveral, Florida City Council Budget Workshop Meeting July 16, 2013 Page 4 of 4 Mayor Pro Tem Bond indicated he could not question the purchase/replacement vehicles and had to trust Staffs recommendation; however, he was concerned over the proposed acquisition of Cherie Down Park. City Manager Greene indicated the proposed agreement has several deal breakers and unless they are removed, he could not recommend moving forward. The next meeting is August 20th at 4:30 p.m. It was suggested that Council Members meet with the City Manager prior to the next meeting. ADJOURNMENT: There being no further business, the Meeting adjourned at 5:55 P.M. Rocky Randels, Mayor Angela M. Apperson, MMC, Assistant City Manager/City Clerk SEAL of Cape Canaveral, Florida