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HomeMy WebLinkAbout2003-07-24 Budget Workshop City Commission Meeting Minutes MINUTES BUDGET WORKSHOP J U LY 24, 2003 10:00 A.M. 1. Call to Order: Mayor Anton called the meeting to order at 10:05 a.m. 2. ROLL CALL: Present: Mayor: Bob Anton Commissioners: Robert Chunn Pat Flury Bob Mikes City Attorney: Thomas Ansbro City Manager: Ivan Pato City Clerk: Charlene Johnson Absent: Commissioner: C.K. McElyea 3. Presentation and Discussion on the City Manager's Proposed FY 04 Operating Budget Appropriations: 10:00 A.M..: City Manager/Finance Director Summary Presentation City Manager Pato advised that the FY 03/04 begins October 1, 2003 and that the proposed budget is balanced at a millage rate of 6.59, a .20 mill increase over the present millage rate of 6.39. This represents a small 3.13% increase over the current rate and will generate approximately $383,880 in additional revenues. Based on the City's present average home value of $114,000 with the $25,000 homestead exemption, the increase represents approximately $18.00 per year more for the average homeowner. City Manager Pato explained that the City's taxable value increased by 10.21% when compared to FY 2003. The additional revenue generated between 5.86 mill and 6.59 mill is approximately $1,400,693. The FY 2004 General Fund Budget totals $28,243,767, a 4.51% increase over FY 2003. Personnel services including all fringe benefits requires an 11.8% increase, which is equivalent to almost $1.3 million dollars and the increase is required to comply with existing union contracts, which provides a 3.5% COLA and an increase in the employer's contributions to the Police & Firefighter's and General Employees' Pension Plans in the amount of $462,000. In addition, the budget includes approximately a 5% increase in Health Insurance premiums and a 15% increase in Workers Compensation premiums. The proposed budget provides six months of operational funding for the P.J. Meli Aquatic Center ,# MINUTES 1 JULY 24, 2003 BUDGET WORKSHOP scheduled for completion in January 2004. Funding for airport related expenses is O proposed at $92,000. City Manager Pato provided the following comments from recent newspaper articles on budget issues from surrounding cities: • Sunrise recently proposed fire assessment fees from $66.50 to $89.50 and tax rate to increase from 6.25%, recreation fees to increase from $30 to $55. • Cooper City moves towards an 8% increase in property tax rates from 6.19 to 6.69 millage. • Tamarac is raising fire assessment fees from $60 to $113 and tax bills to go up by $4.50 per month. • Fort Lauderdale looks at service cuts and a 12.8% tax increase. Lauderdale Lakes may pay more for city services (fire and trash) and property taxes to rise. • Hollywood puts caps on raises, hiring freeze and higher fire assessment fees are ahead. City Manager Pato advised that the City of Dania Beach is not exempt from the difficult issues faced by other cities. The proposed budget asks for an increase in the millage rate and some of the fees charged for services; the average homeowner will be asked to pay $4.72 more per month over what they currently pay today for taxes. He encouraged the City Commission to consider the increase in the millage rate in order to o provide sound financial stability, quality of life, security and effective City services and adequate reserves. The redevelopment of the City will take many years and it will take time to correct past practices. He asked that the City Commission keep an open mind as the budget is discussed and that he looks forward to the Commission's input, direction and questions. Strong management oversight, improved costs efficiencies and sound budget management methods will enable the City to carry forward a surplus, which is included in the proposed budget. The City faces difficult challenges, the rising cost of benefits and insurance and an uncertainty about the economy. City Manager Pato assured the City Commission that with a strong management team in place, the City is ready to deal with these difficulties. Highlights of the proposed budget (see attached letter): Personnel Services: 11.8% increase which is equivalent to $1,249,038 (increase is due to compliance with existing union contracts which provides for a 3.5% COLA for all employees). Pension Contributions: $462,251 for both General Employee Plan and Police & Firefighters Plan. Health Insurance — 5% increase and 15% for worker's compensation. Proposed Staffing: • Records Specialist position for City Clerk (funded by eliminating the existing Part-time Administrative Technician. MINUTES 2 JULY 24, 2003 BUDGET WORKSHOP • Continuation of funding of a temporary full-time position in the Building Division to address the additional workload on permits issuance and records management. • Change 100% allocation of Director of Public Works and his administrative staff from Water and Sewer Fund to General Fund (45%, Water Fund 30%, Sewer Fund 15% and Stormwater Fund 10%). ➢ Debt: $90,930 issuance of debt for the major capital outlay projects and funding for some program modifications. (Program modifications are new requests submitted by the departments that are above the current level of funding). ➢ Meli Park — Budget includes funding for six months period for the operation of the new P.J. Meli Aquatic Center scheduled for completion in January 2004. ➢ Centennial Celebration: resources will be derived from sponsorships and donations. ➢ Airport related expenses: $92,000 ➢ Revenue Sources for General Fund: ➢ Fire Assessment Fees: Increase from $87 to $92 per year ➢ Backflow Permit Fee: Approximately $34,000 needs to be properly recognized in the Water Fund since expenses are incurred in the Water Fund. ➢ Interfund Transfers: Analysis by Finance Department indicates a need to transfer $409,786 in FY 2004 from Water and Sewer Fund to General Fund to cover overhead costs incurred in General Fund. This is a $329,320 decrease as $740,000 was transferred in FY 2003. Capital Proiects Fund: $1,739,500 for six projects to be funded $345,000 from General Fund, $1,332,500 from loan proceeds and $62,000 from Recreation Impact Fees. This does not take into consideration projects funded through the enterprise funds. Stormwater Fund: $5.00 annual increase per equivalent residential unit (ERU), which is a $740,316 budget, an increase of 18% when compared to FY 2003. The proposed increase includes: 5% increase in personnel (and related costs) and a 9% increase in operating expenses. At present, negative retained earnings of $393,034 are projected by September 30, 2003. The FY 2004 budget addresses this issue by establishing a $100,000 contingency fund to replenish retained earnings. The resources for the infrastructure improvements to the southeast area in the amount of $625,000 is funded through the State Revolving Loan Program. The debt service will not be incurred until project is finished and no funding is provided in FY 2004. MINUTES 3 JULY 24, 2003 BUDGET WORKSHOP Water Fund: With the exclusion of the capital improvements programs for the Water storage replacement and the upgrade to the water plant, the Water Fund amounts to $2,361,174, a decrease of $141, 620 in operating expenses. A 5% rate increase is proposed to begin funding for the debt service related to infrastructure improvements estimated at $10 million dollars scheduled to begin construction in the next five years. The Director of Public Services submitted program modifications for two temporary positions (Compliance Officer and Compliance Inspector) to assist with compliance requirements under the Federal, State and County Administrative Codes. The positions are proposed for funding from the permitting revenues that will be implemented. Sewer Fund: Without capital projects and depreciation expenses, the Sewer Fund will decrease by $275,008 when compared with FY 2003. This is attributed to the reduced amount of interfund transfers to the General Fund and a lower reserve required from the revenue derived from the 3 cents gas tax. A 5.5% rate increase is proposed to fund FY 2004 budget. Also included in the proposed FY 2004 budget is the necessary funding to perform a rate study which will address the financial condition and rate structures of both the Water and Sewer Funds. Commission comments: Commissioner Mikes pointed out that there are other perspectives on the budget based on his many years reviewing budgets for the City. He did not believe a tax increase was • necessary as he felt that some monies were being manipulated between the Enterprise and General Funds. It appears that there are more funds provided to cover the debt service for more infrastructure improvements and he wanted these costs covered through impact fees from developers who would be receiving the windfall profits from future projects. He disagreed with shifting the financial burden of the City onto the tax payers and pointed out that there is a seller's market for development property in the City. Commissioner Mikes stated that he will not support a tax increase and desired to see the enterprise funds returned to the proper funds. Presentation by Finance Department: Pat Varney, Finance Director, presented a power point presentation of the highlights of the budget (see attached). Director Varney advised that the FY 2004 budget includes funding of 3.5% COLA increase according to the union contracts. Pension contributions by the employer is calculated based on the actuary calculation which reflects $462,251 and insurance increased by 5% and worker's compensation by 15%. There is $75,000 budgeted for grant matching opportunities and a Contingency Fund of $454,877. Since the City has not adopted the capital elements of the Comprehensive Plan of which revenue from the three cents gas tax should be utilized for, a reserve is set aside in the FY 2004 budget. The Fire Reserve remains at $156,559. Director Varney advised that the interfund transfers from the Water and Sewer Funds to the General Fund are lowered by $329,320 when compared to FY 2003 according to the overhead cost allocation, which is based on an estimate. MINUTES 4 JULY 24, 2003 BUDGET WORKSHOP • Discussions: Main Street: Director Varney indicated that the FY 2004 budget includes a 213 cost reimbursement for the Economic Development Director's salary and fringe benefits, for a net cost of $16,301. City Manager Pato recommended that the director position be eliminated based on the recent actions by Main Street. The City Commission discussed the disappointments with Main Street programs and projects, and the recent development involving the termination of the director. The City Commission generally agreed to remove the director position and reduce the $16,000 funding provided by the City down to $10,000 for FY 2004. The City Commission generally agreed that an accounting is needed of the Main Street programs to determine the benefit to the City. Director Varney continued her presentation, indicating that the new debt issuance for FY 2004, excluding the enterprise funds, amounts to $1,423,430. The related new debt service payments for FY 2004 is budgeted on a 9 month basis. As for the enterprise fund, the debt issuance is through the State Revolving Loan Program in the amount of $3,094,000. However, debt service is not budgeted in FY 2004 as SRF does not require payment of the debut until the project is completed. Director Varney presented the following proposed FY 2004 rates in balancing the proposed budget: Millage Rate: 6.59 Garbage Rate: $236.76 (amount may change in August when the City receives the • actual increase from BFI) Stormwater Assessment: $24 per ERU Fire Assessment Rate: $90.00 Water Rate (increased by 5%) Sewer Rate (increased by 5.5%) Additional items utilized to balance the proposed FY 2004 Budget: Appropriate General Fund Balance $440,552 Appropriate Recreation Impact Fees $157,750 Appropriate 3 cents gas tax in the Sewer Fund $100,000 (The city must adopt a capital element in the Comprehensive Plan before this funding can be used. Other ways to reduce the millage rate: Appropriate Police Impact fees for debt service of 803 building Raise parking fees Reduce Contingency Fund Reduce reserves for Fire Assessments Increase appropriation of Fund Balance Increase Interfund Transfers Commissioner Mikes mentioned that there have been abuses with overtime costs in the Public Works Department in the past and he attributed the problem to the failure by the past department director to properly manage the department. Commissioner Mikes MINUTES 5 JULY 24, 2003 BUDGET WORKSHOP restated his position that the City can balance the budget with a focus on controlling capital improvements and through impact fees from major property developers. He was of the opinion that the City should conduct a more open and professional union contract negotiation process by conducting the business at commission workshop meetings and executive sessions, when needed. Commissioner Mikes felt that this would provide an opportunity to seriously negotiate labor contracts for better employee productivity and to eliminate backdoor deals of the past. He stressed the importance of being fair to employees and not to scare them into thinking that benefits are going to be taken away, but to consider the implementation of a second tier system for new hires to reduce benefit costs. Commissioner Mikes stressed the importance for the City to professionally negotiate the union contracts in the open so as to provide a stable work environment and reward people who are appropriately doing good work. Public Services Department: Michael Sheridan, Public Services Director, pointed out that the department name was changed from Public Works and is comprised of 10 divisions. Mr. Sheridan stressed the importance of assuring water qualities of the future, continue with the identified infrastructure improvements with the use of State Revolving Funds (water treatment plant, water distribution system, waste water collection system and stormwater system), replacement of the water storage tank to become compliant with the Department of Health, restructuring of the department to become more effective and productive, and to bring the City into compliance with Federal, State, City and Administrative standards • and codes. Director Sheridan advised that there are two (2) requested positions (Compliance Administrator and Compliance Inspector) that are funded in the budget book and that the department would like to purchase a software program to better manage the cemeteries. Commissioner Flury suggested that the name of the position that is being transferred from the Parks & Recreation Department identified as Recreation Program Coordinator be changed. She cautioned Mr. Sheridan on the department becoming too top heavy with so many supervisors/managers. Commissioner Flury questioned why the interest on the Perpetual Care Fund had dropped so significantly from last year and where the money was used. Director Varney advised that the fund is a Trust Fund and that the interest rate was around 2.2% last year and is earning 1.3% this year. The Charter requires a Board of Trustees to be established to operate the funds and a proposed Ordinance amending the Charter removing the requirement and also a proposed Resolution establishing a board would be brought to the City Commission on August 12. The City Commission can decide on which document they desire to adopt to address the management of the Perpetual Care Funds. Ms. Varney advised that no money has been transferred from the fund. Commissioner Flury felt it was very important to put an effort into taking care of the cemeteries and to re-invest the Perpetual Care funds into the cemeteries. MINUTES 6 JULY 24, 2003 BUDGET WORKSHOP • Commissioner Mikes mentioned that with the airport expansion plans, the Melaleuca Gardens area could be lost. He asked whether or not Mr. Sheridan had investigated what the difference in water capacity might be should this section of the City be lost as a result of the airport expansion. Mr. Sheridan reported that he had not reviewed the issue as of yet. Commissioner Flury questioned the 10% overage on overtime in the Streets Division and Mr. Sheridan advised that the overtime was for watering the additional trees brought to the City through the SFWMD and to keep up with the Saturday dumping that must be monitored. Commissioner Flury mentioned that this is actually planned overtime and asked whether the 2 positions could be converted to part-time positions to reduce overtime costs. Mr. Sheridan advised that with the annexations since 1991 there has not been any increases in staffing in Pubic Works even though the size of the City has doubled. And, in fact, the department experienced a reduction of staff by 2 during the second annexation. Commissioner Flury felt that the over time costs in the department are excessive and that more contracted services should be utilized. Mr. Sheridan pointed out that the City was able to utilize the entire $128,000 from the 28tn year CDBG grant this year to pay for additional project improvements and the overtime costs for Public Works staff who were pulled from regular duties to help implement the grant program. He mentioned that the City benefited with the improvements to the City and that the overtime costs were reimbursed to the City from the grant. Director Sheridan explained that park maintenance will be moved entirely into his department from the Parks & Recreation Department for a more efficient way to handle the larger and smaller parks. There is some savings in the Streets Division as a result of the reduction in the costs for the re-paving program and grounds maintenance as some work is being done in-house. There has also been some savings with the establishment of a preventative maintenance program. Discussion followed on the need for staff members from all departments who have take-home vehicles to wash their own cars to reduce the detailing and car washing costs. Mr. Sheridan clarified that his department washes their own vehicles. Commissioner Mikes commended Mr. Sheridan for his professionalism that has been brought to the Public Services Department. Director Sheridan explained that he submitted program modifications for two temporary positions (Compliance Officer and Compliance Inspector) for FY 2004 that are not currently funded in the budget. The positions would assist with compliance requirements under the Federal, State and County Administrative Codes for Stormwater and the backflow prevention program. Director Sheridan explained that the Compliance Officer positions are currently contracted out and that he would like to hire the positions as full- time permanent in FY 2005. He also mentioned that the costs for the positions would be covered from the permitting revenues generated when the backflow prevention units are increased from 350 units to 4,000 units over the next year or two. Commissioner Flury asked Mr. Sheridan to see if he could retain contract services or handle the increase in the program with just one position this year and bring on the second position next year since notices have been sent out and people are responding to the backflow program. Mr. Sheridan clarified that the City must administer and perform the spot inspections MINUTES 7 JULY 24, 2003 BUDGET WORKSHOP and the only thing being done right now is the administrative entries. The City does not, currently, perform the inspection portion of the requirement, although, the statute requires it. City Manager Pato was under the impression that the two positions would be temporary full time positions and that he would not be adding permanent positions until he was able to determine if outsourcing is available and had the opportunity to negotiate the new union contracts. Director Varney explained that the program modifications reflect the true costs in 2005 with benefits and the offset from the revenue generated and that the positions would be temporary for FY 2004. It was determined that roughly $107,000 in revenue would offset the positions ($27,000 stormwater, $5,000 sewer and the rest from the water fund). Director Sheridan was not aware of any outsourcing opportunities because people do not want to take on the responsibilities due to the liability exposure and the people would have to be certified in backflow prevention and also repair of the backflow prevention devices. Plumbers currently do the work for homeowners but they do not do this work for cities and he knows of no organization providing the City services. Mr. Sheridan restated that once the City has the full impact of the project with 4,000 units, there will be around 800 units needing inspection per year over a 5 year period by a compliance inspector. Commissioner Chunn pointed out the need to cross train employees and to get people to work together as a team. Stormwater: Director Varney mentioned that the rate has to be certified to the property appraisers office by August 4th. Fred Bloescher advised that the $3.00 increase from the $20 to $23 per year rate for stormwater will raise the needed monies and he mentioned that vacant properties are currently not being charged. An ordinance change will be forthcoming to charge all properties not just developed properties, which should increase revenues significantly as there are over 1,000 vacant parcels in the City. The single residential units are one ERU and they will be charged the $23. There are some condominiums that have some very dense development and they are almost 100% impervious, which means they cannot retain any stormwater on site and it goes immediately to the City's system. He pointed out that the top 50 properties have been identified and, as an example, the Jai Alai site will increase to $17,000 in stormwater assessment. Of the top 50, there are 35 properties that there increase will be less than $2,000. He mentioned that he has evaluated around 1,000 to 1500 properties receiving some sort of mitigation because they have an on-site retention are that does not impact the City's system. Commissioner Flury asked how much money would be generated by leaving the fee at $20 and Mr. Bloescher thought it would generate some $670,000 to $680,000 and that the $23 increase would generate some $740,000 in revenues. Commissioner Flury was not clear on whether the City needs to increase the rate. Director Varney explained that • the City does need revenues of $735,000 to balance the FY 2004 budget and that she prepared a five-year projection from 2005 to 2010, which included the debt service. If MINUTES 8 JULY 24, 2003 BUDGET WORKSHOP the City retains the $20, the revenue will not be enough, and she pointed out that the 3 cent gas tax funds cannot be used as they were used incorrectly in previous years to balance the budget, which is roughly $100,000 less. Fred Bloescher clarified that the increase is only $3.00 a year for residential properties per year and Mr. Sheridan advised that it is the commercial properties that are impacting the City's runoff system. There are several ordinance changes forthcoming on the use of the funds. Director Sheridan advised that the only other changes to his department relate to each division being properly charged for administrative services and applications for the SRF funds that will need approval by the City Commission. Mr. Broescher advised that the water storage tank must be constructed in 2004 and should cost around $2 million dollars from SRF funds. The second phase will include waterlines and water plant improvements for a total $10 million dollar program. The City Commission generally agreed that they need to discuss the program further at a workshop meeting. 12:15 p.m.-Lunch Break 1:00 p.m. — meeting reconvened Administrative Services: • Mary McDonald, Administrative Services Director, pointed out some of the accomplishments of the department outlined on page 69 of the budget. Commissioner Flury inquired as to whether other cities are asking the School Board to pay for crossing guard expenditures. Ms. McDonald was not aware but agreed to look into whether there is a possibility. She mentioned that the City pays around $83,000 a year under Professional Services for school crossing guard services and the summer school program. City Manager Pato advised that Ms. McDonald's budget has no new request, however, legal fees for labor negotiation services has been budgeted under the Legal Department. Director McDonald reported that the Civil Service Board has finished the revisions to the Civil Service Rules and that she is working on completing the document for an anticipated workshop with the City Commission for mid-September so that the rules could be adopted by October 1, 2003. Department of Recreation and Community Services: Kristen Jones, Director, advised that the department will be opening the $1.4 million • dollar Patrick J. Meli Aquatic Center (see objectives on page 92). Director Jones advised that she is looking into the possibility of contracting out lifeguard and pool MINUTES 9 JULY 24, 2003 BUDGET WORKSHOP personnel services for the new swimming pool instead of hiring full-time employees, which will also transfer liability from the City. Director Jones advised that the grant monies to build the pool came from the Swim Central Grant and that she is receiving calls of interest from high school swim teams and the US Water Polo to rent the facility. She stated that these agencies provide their own lifeguards so there is no cost factor or liability for the City. Commissioner Mikes inquired as to the liability insurance provided by these outside agencies and stressed the importance that the pool be safe for the children at all times. Commissioner Mikes mentioned that Fort Lauderdale closed two pools and that the City must operate very carefully. Beach: Captain Glenn Morris explained that the northern section of the beach is the widest portion of the City's beach and that there are numerous rescues on that section of the beach. The surfers get too close to the pier and he would like to open up a First Aid stand for the area and would like to upgrade the part-time position to full time lifeguard as he is losing 2 part-time lifeguards who are going to another beach for full-time work and that another part-timer is being called to duty in Iraq. The beach renourishment project in projected in early Spring for 2004, which will increase the width of the beach by 50 feet on average to provide better enjoyment for the public. Commissioner Flury asked whether the amount budgeted for the Community Bus was for the bus service around the City. Director Jones advised that the cost is funded from ® the 5th cent gas tax fund and are designated for use for a community bus service program. Director Varney advised that the summer program is paid under the Professional Services line item and that $82,000 is projected for 2004 and that the cost was $90,000 for 2003. Also, approximately $8,000 in revenues is projected for the Meli Park pool this year. Director Jones advised that the I.T. Parker Community Center is currently reviewing an increase in fees for using the community center and that the fee structure has not been changed since the center opened in the mid-80's. She mentioned that there is a very strict procedure on requests for waivers and that the board is suggesting a 10% increase. Commissioner Flury and Commissioner Mikes felt that the costs would have to be increased higher than 10% to cover operating costs. Director Jones advised that all other fee structures are current and she anticipated more revenues to be generated this year from the park facilities. Parking Revenues: The City is currently charging $1.00 an hour and no increase is projected at this time. Commissioner Flury asked why parking violations in 2004 are going down by almost 40%. Director Jones advised that more collections are being obtained. Director Varney ® advised that year to date on the parking fines the City received $40,000, last year $45,000, and in 2001- $33,000 so she couldn't understand why $84,000 was budgeted MINUTES 10 JULY 24, 2003 BUDGET WORKSHOP ® for 2003. No one could answer the percentage of collection. Director Varney advised that Vern Johnson, Information Services, developed an "in-house" program for tracking parking collections and that the computer information was incorrectly input by parking staff so meaningful report data was not possible to attain. Commissioner Flury thought the collection rate is probably around 10% and she thought that the City is losing a minimum of around $100,000 a year. City Manager Pato advised that the City never adequately pursued delinquent parking citations. Commissioner Flury thought that the Broward County Clerk of the Courts could be utilized to collect some of the monies and that the City should be more aggressive in ticket enforcement. Commissioner Mikes recommended better signage on the beach to intensify the parking collections and discussion followed on the minimum time for parking stickers being 1 hour, which has to be monitored consistently. City Manager/Information Services/Economic Development: City Manager Pato stressed his desire to continue with economic development at the county and state levels and that there are some challenging times ahead with current economic issues that the City is facing. Commissioner Mikes asked whether there is any funding for lobbyist support for airport matters to control some of the development with the airport to strengthen the City's position. City Manager Pato advised that funding has been provided on page 22. ® Website Development: Bonnie Temchuk, Assistant to the City Manager, explained that she has been doing some research on website design and maintenance and that the cost would be $50,000 plus more to cover weekly maintenance to keep up with the different programs coming as a result of the Centennial celebrations. Commissioner Mikes wasn't sure that the website was the best media to provide information to the different demographics or significant populations in the City as not all residents have computers and that a monthly newsletter might be a better alternative. City Manager Pato advised that the Dania Press costs are being reduced and that a newsletter will be implemented through his department for September. He commented on how cities have increased productivity through the use of websites to provide service information to the public. Commissioner Mikes advised that there are civic associations that have better websites than those of the cities through participation from citizens. City Manager Pato pointed out that the Griffin Lakes Townhomes will most likely require computerized services and that he is looking into the future growth of the City. Commissioner Mikes explained that a website may not reach more than 20% of the population and that the western section of the City is dealing with address issues as they don't know what city provides their services and with precinct problems for voting. Bonnie Temchuk could not say how many hits the City's website receives and advised that the City's website is also a marketing tool to bring more tourism and residential growth from other parts of the ® country. Commissioner Mikes thought that the Chamber of Commerce should be providing this type of information for the City. Commissioner Flury suggested that the MINUTES 11 JULY 24, 2003 BUDGET WORKSHOP City may be better served by providing partial funding to work towards a more active site in the future. City Manager Pato advised that $50,000 would be needed for the next year to get the website started and that he would reduce costs if possible and that the newsletter will be a start. Commissioner Mikes thought that the City needs a year or two of newsletters to get the residents from the western portion of the City more acclimated to the services provided by the City. Commissioner Flury suggested that the City provide a one-time and last time $5,000 contribution to Main Street. The City Commission generally agreed. Computer Replacements: Under the computer program from last year, the City is replacing 1/3 of the computers on a yearly basis as 33 were replaced last year and this year another 33 will be replaced. Commissioner Mikes asked whether this could be delayed for a year as the cost for the flat screens are coming down. Bonnie Temchuk advised that the computers that are being replaced are well over 3 years old and that the memories are not adequate to keep up with the programs that are being utilized and that the computers will have upgraded Pentium processors and larger hard drives. Ms. Temchuk advised that the City recycles computers so that new computers are not purchased for new employees and that Community Development is a primary department that needs to stay up with current technology to increase efficiency. Department of Community Development: City Manager Pato advised that a good presentation was presented to the Marina Mile Association from the Community Development Department. Laurence Leeds, Community Development Director, explained that Growth Management has been renamed and includes the divisions of Building, Occupational Licenses, Code Enforcement and Planning & Zoning. The department budget has increased from last year by 1.4%. Director Leeds stressed the importance of not hiring a lot of people just to lay them off later and that his intention is to only hire the people they need. The temporary full time employee will be a permit clerk and will not receive any benefits for insurance or pension. The request is to renew the position for one additional year and, after the year, the position would be reviewed to determine the feasibility of bringing it on permanent. Mr. Leeds advised that overtime has been trimmed in the department and now amounts to less than 1% of the budget. He expected the extra person will reduce over time costs. Impact fees: Mr. Leeds advised that he conducted a survey on what other cities charge for impact fees and that the information is available for the Commissioners. He mentioned that this information may or may not impact this budget and that the City is higher in some fees and lower in others for police services, potable water, sanitary sewer, fire rescue and local park impact fees. AML Commissioner Mikes inquired as to whether the criteria for designated park areas could be changed to enhance the fees. Mr. Leeds advised that the park fee requires a MINUTES 12 JULY 24, 2003 BUDGET WORKSHOP dedication of land to be used for a local park, however, in most instances, the properties being developed are under 5 acres and are so small that the acreage contribution is only % acre or Y2 acre, which is too small to be useful. The City has the option in these cases of obtaining the impact fees to be used for capital improvements for parks in other sections of the City. Mr. Leeds clarified that the City has no restriction as park impact fees can be collected from the west side of the City, for instance, and could be used on the east side to acquire parks and vice versa. The park impact fee is based on the number of units and the density of the development and the criteria for the formula is provided in the code. Commissioner Mikes asked whether the criteria could be changed and Mr. Leeds agreed that the fees could be used to enhance existing park acreage and not just for acquiring land. Mr. Leeds agreed that the ordinance could be changed, however, the City must consider the "rational nexus" between what ever the acreage figure is and what the City will charge and he had no problem conforming with Hollywood or Plantation acreage fees. Director Leeds pointed out that there is no offset for private recreation improvements and recommended that the City Attorney review the City's potable water and sanitary sewer impact fees for future development. City Attorney Ansbro explained that he has Attorney Nanci Stroud from his office conducting an impact fee study for all new developments to see if the City can obtain contributions for the City's beach, which could defray some of the beach costs. Mr. Leeds agreed that no matter where the developments are the impact fees could be spent for capital improvements or land anywhere in the City. Department of Finance: Director Varney mentioned her plans for restructuring in the department at no cost to the City by promoting Nicki Satterfield from Budget Analyst to Assistant Finance Director. In addition, the Accounting Manager position would be eliminated and two (2) Accountant positions would be created to handle the day to day accounting functions of the department. Director Varney stressed the importance of developing an Investment Policy to bring better investment income to the City and reconciliation of properties with the Broward County Property Appraisers Office to ensure that the City is obtaining all Telecommunications taxes due the City. The other issue is to evaluate user fees and permit fees for preparation of FY 2005. Commissioner Mikes asked whether the City is represented with the Broward County Property Appraisers Office when large developments challenge property assessments. Director Varney advised that the county is reluctant in reducing property values as well as any reduction of value would also affect the County. The property owners must prove the requested adjustment. Director Varney commented on the need to identify the properties that are tax exempt for fire assessments and she agreed to bring the information back to the City Commission. MINUTES 13 JULY 24, 2003 BUDGET WORKSHOP BSO — Police Services: Chief Bryan Cowart advised that this year's proposal provides the same level of police coverage as previous years at substantially reduced costs to the City. Over the past 5 years, BSO has reduced crime in excess of 52% since 1997. BSO oversees projects such as vehicle impoundment, alarm ordinances, street lighting outages and shopping carts that are littered throughout the City. The level of staffing for BSO District 2 is 75 total personnel (1 Chief, 2 Lieutenants, 8 Sergeants, 53 Deputies (including 1 motor deputy, 1 drug detection canine deputy and 1 detention deputy which oversees the inmate work crew), 5 CSA's and 5 clerical staff. Chief Cowart advised that the drug dog and handler are becoming more productive and revenues have increased for the Law Enforcement Trust Fund, Nuisance Abatement and Vehicle Impoundment seizures. Chief Cowart commented on the frustration of dealing with the problem of drug crimes in the City and how the absentee landlords contribute to the problem. He advised that the Dania Beach Housing Authority cooperates with the Section 8 housing as well. Commissioner Chunn mentioned that people are coming from many sections of the country to take advantage of the Section 8 housing programs provided in the City and that he is working with a program in Miami to help drug addicts. Discussion followed on the prostitution problems in the City of Dania Beach. Commissioner Flury mentioned that there is a street closure recommendation that she would like Chief Cowart to bring to the August 12th meeting as the procedure only requires direct input from BSO. Chief Cowart advised that the Fire Department is reviewing the request. Commissioner Flury clarified that the contractual figure for the BSO contract for FY 2003 was $7.015 million dollars and is $7.044 million dollar for FY 2004, which does not include the 3.5% vacancy factor. Director Varney advised that the contract does not include the vacancy factor but the budget amount does include the 3.5% vacancy factor, which is why the amount is reduced to $6,797,462 for FY 2004. Mayor Anton advised that BSO includes a 3% lapse factor into the BSO contracts and there are other factors that can be used to make adjustments in the City contracts such as vehicle usage and that the costs for a deputy includes the salary, vehicles, radio, uniform and training. City Manager Pato advised that by comparing the costs of services for FY 03, minus the vacancy factor, and the cost for 2004, minus the vacancy factor, the City is achieving roughly a savings of $158,000. City Manager Pato advised that he has not negotiated anything other than the amount for FY 2004 and not the entire 5- year contract. Commissioner Flury pointed out that there was a significant increase from 2002 at $6.3 million and that there was an increase in FY 2003 at $6.9. City Manager Pato advised that the FY 2004 includes a decrease of roughly $158,000 with no change ® in manpower. MINUTES 14 JULY 24, 2003 BUDGET WORKSHOP Discussion followed on the security issues at Port Everglades and Fort Lauderdale- Hollywood Airport. Chief Cowart advised that BSO District 2 would send resources in the event of emergency and that generally he does not handle calls for the Port or airport. Chief Cowart advised that the Broward County Aviation has increased security staffing at the airport. Commissioner Chunn commented on the number of people who come to Dania Beach for the Section 8 housing program with the Dania Housing Authority and mentioned his concern that there are so many drug influences coming into the City. Chief Cowart pointed out that Dania Beach has 64 sworn deputies. Mayor Anton advised that Cooper City has 57 sworn deputies, 20 non-sworn for a full compliment of 77 with a FY 2004 operating budget of $7.433 million dollars and that Hallandale Beach has 95 sworn officers and 45 civilian personnel for a total of 140 for police services. Discussion followed on the diverse crime in Dania Beach as a result of the City's location, demographics and close proximity to the Port and airport compared to a residential community like Cooper City. Mayor Anton mentioned that the City has not addressed the additional deputies, fire and code enforcement staffing that was promised to the residents in the newly annexed area and that he hoped that these issues would be addressed in future budgets. Commissioner Mikes stated that the City has done a better job than Broward County did ® when they were managing the area for all services. Fire Rescue Services: Chief Ken Land advised that overtime has been around 3% of the budget and that his department is going to try to stabilize the costs in the upcoming collective bargaining contract process. The fire assessment reserve is $156,000 this year and the fire assessment figures to be brought in this year are over $2 million. Chief Land advised that the City Attorney is reviewing the possibility of collecting an Interim Fire Assessment fee like the Town of Davie is doing where new construction is charged on the buildings during the year instead of when the property is brought on the tax rolls. Fire inspections have generated $110,000, transport fees is $410,000, fire impact is $40,000, fire detail is $96,000 and it's a net to the City of $16,000 as it cost the City $80,000 to handle, fire alarm fees are $12,000, which amounts to around 40% of the operating costs. The population increase has been around 61% over the last 3 years and personnel has only gone up 2% and the runs have increased 41% and the budget this year will increase by 8% as a result of contractual agreements, workers compensation, health insurance and pension. Chief Land reminded the City Commission that the City has paid very little towards pension over the past 8 years because the investments in the Police & Fire Pension Fund were so good. Commissioner Mikes pointed out that the Fire Department does a good job, however, ® he thought that the department may be top heavy and suggested a 2-tier system on benefits in the future to reduce costs. MINUTES 15 JULY 24, 2003 BUDGET WORKSHOP • Discussion followed on EMS fees which are $350 per transport. Deputy Chief Cassano advised that the department collects around 55% of the transport fees and that Tamarac has an 80% collection rate because most of the residents have insurance, which is different in Dania Beach. Chief Land thought a collection agency might be helpful. Bruce Caruso advised that the City will have to adjust fees to keep up with Medicare reimbursement and he mentioned that the City does not charge a DOS (Death of Scene) which is to pronounce a person dead at the scene. Other cities charge the $340 DOS fee, which is approved by Medicare. The other area where money could be collected relates to the insurance settlements and a policy would need to be created. The City Commission generally agreed that they would not want to collect on the DOS responses. Discussion followed on the high number of uninsured residents in Dania Beach. Commissioner Mikes stressed the importance of the department not responding to calls for people who actually need a doctor. The City Commission generally agreed that a workshop needs to be conducted on transport fees. Fire Rescue Assessments: Chief Land advised that the department responds to a high number of calls to nursing homes in the City. Director Varney presented information on a formula to be used to calculate the • assessments and recommended a rate increase from $87 to $90 on the residential category. She explained that GSG did not use demand percentage of call volume in the past to bill the nursing homes and, instead, assigned a dollar amount the same as the commercial category, and that the City has actually been subsidizing the nursing homes. She mentioned that the City will lose some $110,000 in revenues if they calculate the assessments for nursing homes based on the commercial rate. However, prior to FY 2000, GSG used 2.099 formula times the Commercial rate, and if the City utilizes this method, the City stands to lose some $85,000 in revenue. Director Varney advised that the loss of $85,000 in revenues is in the bottom line figures and will not impact the proposed 6.59 millage rate. After checking with five cities, most cities are using GSG (Government Services Group). All those cities are not utilizing the same method that the City is using for fire rescue assessments. She mentioned that Pembroke Pines uses GSG and that their commercial rate is $316 for less than 2,000 square feet while their institutional rate is $989.00. The City of Tamarac also uses GSG and there commercial rate is $523 and the nursing home rate is $267. Ms. Varney advised that most of the cities had a higher rate for nursing homes than their commercial rates. Director Varney mentioned that she noticed that the Graves Museum located on Federal Highway is filing bankruptcy and that they currently owe some $18,000 for fire assessments. She inquired as to whether the City Commission had waived the fire assessment fees for the museum. The Commission generally agreed that no fire • assessment fees had ever been waived for Graves Museum and that there may have been some permit fees that were waived once. MINUTES 16 JULY 24, 2003 BUDGET WORKSHOP City Attorney Services: Representative Tim Ryan, Special Counsel, advised that his primary service to the City relates to representing the Code Enforcement Board and municipal prosecutions in County Court. Attorney Ryan advised that his office has been conducting more title searches and have become aggressive in foreclosure actions on unpaid Code Enforcement liens. Attorney Ryan reported that there has been a significant improvement in neighborhoods in the northwest, southwest and newly annexed areas. Currently, there are five cases in Circuit Court for foreclosure and six cases that are in various stages of appeal in Circuit Court and one in the District Court of Appeal in regards to Code Enforcement actions. Attorney Ryan requested an increase in the hourly rate from $125 to $140 for his services based on the fact that the low fee has been in place since 1997 or earlier. The rate increase is in response to the performance that the office has achieved administratively and in the litigation arena. Attorney Ryan advised that he presented a statement of fees on collected lien revenues over the first 9 '/2 months in this fiscal year, which amounts to $150,379. Commissioner Flury advised that the City budgeted $160,000 for the year. Attorney Ryan pointed out that there is flexibility in this regard and that by the end of the fiscal year, the City could gain more as there is a case on appeal from the 4th District. If the City is successful, it could receive $110,000, and, if unsuccessful, the City could receive $14,000. In addition, there are smaller cases in the appellate process. • Commissioner Flury stated that Attorney Ryan's costs are basically a wash because of the collections and she had no problem with the rate increase from $125 to $140. Commissioner Flury recommended that the Code services continue with Attorney Ryan and that Attorney Thomas Ansbro be brought into the City as a full-time "in-house" attorney to remove the high costs of the firm. She felt that cities use "in-house" attorneys and that the City just needs to provide an office and a secretary. She wasn't sure how the benefits would be handled, but thought that the City could save money. There would be convenience to staff as the attorney would be here at City Hall and she thought the City could save some $100,000 as almost $300,000 is budgeted. City Manager Pato advised that the obstacle is that there is no physical space available in City Hall to house a City Attorney. Commissioner Flury thought that the Nyberg/Swanson House could be utilized with the changes from Main Street. City Manager Pato advised that discussions have involved the use of the Nyberg/Swanson House for historical purposes and that the space in BSO will be used by the Fire Inspections division. Commissioner Flury thought that the City can save $100,000 and thought an office could be leased at around $6,000 a year. Commissioner Flury stated that City Attorney Ansbro is currently serving two masters, the city and his firm, and it creates problems. Commissioner Flury wasn't sure if this is even feasible as she wasn't sure how Attorney Ansbro felt about the issue. City Attorney Ansbro agreed that this is awkward, however, his heart is with the City Commission of Dania Beach and he • expressed his desire to serve the City Commission. MINUTES 17 JULY 24, 2003 BUDGET WORKSHOP • Commissioner Mikes mentioned that there are advantages and disadvantages with "in- house" legal services and that the easiest type of work is the Code Enforcement cases as most of the work is repetitive. The city attorney position involves a variety of legal matters and one attorney will not be able to do it all and specialized services will also be needed. Commissioner Mikes mentioned that in the past the attorney got too close to certain issues and he thought it might be easier for attorneys in a firm to say "no" to a Commissioner or Mayor. Attorney Ryan agreed that some of the work he does is routine, however, he clarified that the litigation work is not routine as some of the decisions that are made at the Code Enforcement Board setting can have include ramifications of over $100,000. City Attorney Ansbro pointed out that there are many issues such as labor, telecom, real estate and land use that are specialized of which he has not expertise and he couldn't say whether the City could save money. Attorney Ryan pointed out that cities with populations from 25,000 to 45,000 that do have "in- house" attorneys do have routine relationships with other law firms that handle specialized services and the cities just budget for both legal services. Commissioner Flury pointed out that when an Attorney serves two masters, there is an incentive to move issues to the specialized attorneys and that the costs for outside services would have to be reviewed. Commissioner Flury suggested leaving the legal figures as is other than the Professional Service line item so that the City Manager could discuss the matter with the City Attorney and bring back a proposal. City Manager Pato clarified that if he is not able to save any money whether or not the City Commission would still want to move forward with an "in-house" attorney. Commissioner Flury agreed that it would still be beneficial to have the attorney serving the City and that there would be conveniences with the attorney being on site. City Manager Pato agreed to bring back a proposal working with the figure under Professional Services. Commissioner Flury asked why the fire inspection fees have gone down 12% and Chief Land advised that another inspector is being added because there is so much work and that the figure must be an error in the budget. Director Varney advised that there is only $87,000 in revenues so far and the City Commission asked Chief Land to come back with a revised inspection fee amount for the budget. City Commission: City Manager Pato explained that he reduced the Travel & Training per diem based on historic use of the account and thought of using a portion to fund the request by the City Clerk, however, as other revenues were recognized, the figure was put back to $20,000 on the line item 4010. Commissioner Mikes mentioned that as of January 2004, the City Commissioners will lose some income as a result of abolishing the insurance Opt-out program. He wanted to know if a COLA increase was provided for Commissioners last year. City Manager Pato advised that he was surprised that COLA was not provided. Commissioner Mikes mentioned that Term Limits is kicking in and there is a need to increase salaries for the Commission to encourage citizens with an average income to run for office. Commissioner Mikes mentioned that this City is not an easy City to run and he MINUTES 18 JULY 24, 2003 BUDGET WORKSHOP suggested that the money that the City Manager removed for Travel & Training be divided 5 ways and put into salaries in January. Commissioner Chunn mentioned his difficulty in trying to pay for things out of his own pocket to help people and how he has used his own money and missed a lot of work to represent the City. He agreed that the salaries should be increased to provide people with the opportunity to run even if they are not retired. Commissioner Mikes mentioned that there are people who cannot serve because they just can't afford it and that there was self-serving and corruption in the past and that there is a need to allow people to be independent. City Manager Pato agreed to move the numbers around and also suggested that a formula be put in place to address salary increases automatically for the commissioners each year. Commissioner Mikes agreed that this is a good idea and that this would reduce the number of people who would be conflicted. City Clerk: City Clerk Johnson requested that the City Commission consider upgrading the existing part-time Administrative Technician to a full-time Records Specialist/Coordinator to assist with records management citywide, that the minutes for the City Commission be outsourced to provide a normal processing of the continuous work, and that scanning • services be provided for the document imaging program. City Clerk Johnson advised that the document imaging program will be purchased by September 30, which was funded from the Capital Improvement Program for 2003. Commissioner Chunn stated his support of the City Clerk's request as he knows how much work has to be done in the department and that work is always having to be taken home to get things done. Mayor Anton agreed that there are legal restrictions on how to manage records and that staff is needed in the department. Mayor Anton was hopeful that the City Clerk would be able to train a #2 person with this additional staff so that the work load can be accomplished and the department would function in the event anything happened to the City Clerk. The City Commission generally agreed with the requests. Other Funds: Director Varney presented a summary of the other funds in the budget and explanation on next year's grant programs. The CIP program is provided on page 139. Commissioner Mikes asked that the City Attorney move forward on preparing an ordinance increasing the recreation fees and inquired as to whether there are any funds from impact fees that can be used to reduce costs for park projects. Director Varney advised that $157,000 was appropriated from park impact fees for Frost Park and I.T. MINUTES 19 JULY 24, 2003 BUDGET WORKSHOP Parker and beach improvements. The park impact fees fund balance will be $165,000 as of October 1st after the appropriations. Commissioner Flury confirmed that the Perpetual Care Funds can only be used by the cemeteries. Commissioner Mikes questioned whether the City can obtain better investment earnings on the Perpetual Care Fund. Director Varney advised that since the City does not have an investment policy, the City can only invest funds according to Florida Statute, which is mostly CDs or State Board of Administration. She indicated that she does not want to tie the investment to longer term CDs as interest rates may be on the verge of rising, and the City will lose out higher earnings in the future should interest rates rise. Commissioner Flury asked that staff review the following items in the budget to see if the City reduce costs: Electric is up 14% Travel is up 30% Overtime should be looked at as a percentage of the labor budget Main Street adjustments Parking revenues Approve only one (temporary without benefits) position for Public Services Director Varney advised that all the program modifications are not included in the line • item budget figures and that she wanted the City Commission to see all of the benefit costs for 2005 should the positions be brought on full time. The City Commission disagreed with adding benefits if the position is not being brought on full time in this budget year and to include the benefits costs next year should the position be brought on full-time. Director Varney advised that the City Commission will receive a revised budget prior to the upcoming September 11 preliminary budget hearing and September 24 final budget hearing. 4. Adjournment. This meeting was adjourned at 4:40 p.m. Bob Anton Mayor-Commissioner Attest: Charlene Johnson, City Clerk • APPROVED: August 12, 2003 MINUTES 20 JULY 24, 2003 BUDGET WORKSHOP