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HomeMy WebLinkAbout1743 - MINUTES - City Commission MINUTES DANIA BEACH CITY COMMISSION BUDGET WORKSHOP MEETING AUGUST 2, 2001 1. Call to order Mayor Flury called the meeting to order 10:10 a.m. 2. Roll Call: Present: Mayor: Pat Flury Commissioners: John Bertino C.K. McElyea Bob Mikes City Attorney: Tom Ansbro Acting City Manager: Jason Nunemaker Acting City Clerk: Charlene Johnson Absent: Vice-Mayor: Robert Chunn (excused) Others Present: Finance Director: David Keller It was noted that Vice-Mayor Chunn was excused as he had surgery on Wednesday and was unable to attend this workshop meeting. 3. Presentation and Discussion on the City Manager's Proposed FY 02 Operating Budget: a) Report on revisions from first Budget Workshop Jason Nunemaker, Acting City Manager, advised that the requested revisions have been made to the budget as directed by the City Commission at the July 26th budget session. The millage rate has been set at 6.1999. He suggested a review of the changes before discussing the City's revenues, proposed Capital Improvement Program and Enterprise Funds (Water, Sewer & Stormwater). b) Selected revenue overview ® Assessed valuation/millage rate MINUTES 1 AUGUST 2, 2001 WORKSHOP MEETING Dave Keller, Finance Director, advised that the millage rate was decreased from 6.815 down to the 6.1999 as the City's "not to exceed" millage rate and that Broward County has been advised. Mr. Keller presented an analysis of reductions in selected department accounts for Overtime, Telephones, Water, and Electricity for a total reduction of$64,200.00 and $14,771.00 from Main Street for a total reduction of $78,971.00. Mayor Flury mentioned that overtime was going to be reduced in the departments that were receiving new positions. Mr. Keller advised that a review was conducted for some of those departments and it was determined that some of the new positions would not offset the overtime amounts. Mr. Keller clarified that there are employees working in the Finance Department who are being paid from the water and sewer fund budgets. Main Street: Commissioner Bertino disagreed with reducing Main Street this year and suggested implementing the reduction next year so as not to create a hardship. Mayor Flury expressed a desire to see Main Street contribute something towards independent funding. The City Commission agreed to come back to this item after further budget review. Operating Expenditures: • Mr. Keller presented an analysis of operating expenditures from Parks & Recreation and Public Works showing a total reduction of $65,300.00. Commissioner Bertino expressed concern for the programs that need to continue. Randy Wilkinson, Parks & Recreation Director, advised that the budget cuts would not cause serious impact on any park programs. Mayor Flury clarified with Mr. Keller that the additional $65,300.00 for reductions were in addition to the line item reductions made to Maintenance of Buildings and Grounds, which was included in the $950,000 cut from July 261" Commissioner Mikes expressed concern with deferring too much maintenance into the next budget year and cautioned staff on the inability to predict some maintenance and repairs. Mayor Flury clarified that $300,000 in grant funding would off set some of the maintenance expenditures. Mr. Wilkinson was confident that routine maintenance would not be impacted at the parks, however, there would be no way to foresee major problems. Mr. Keller advised that the additional reductions, including Main Street, amount to $144,271 to the General Fund Budget. Jason Nunemaker, Acting City Manager, requested consideration of providing two (2) additional deputies for BSO at a cost of $142,390.00 to maintain the MINUTES 2 AUGUST 2, 2001 WORKSHOP MEETING existing service levels for all City's zones and the 105 zone for the newly iannexed area. Mr. Nunemaker stated that this would provide a minimum staffing level and that the 2.25 positions would not increase the millage and that the cost would be covered from the reductions presented in the amount of$144,271. Commissioner Bertino confirmed that six (6) deputies are currently covering the annexed area and that the City's zones would need to be realigned so as to provide the same level of service in all areas of the City. Chief Anton opposed any reduction in staffing and mentioned that Sheriff Jenne assured residents in the annexed area that they would receive the best possible law enforcement and police protection at the time of the annexation campaign. Mayor Flury agreed that the City Commission may have reduced the position request for BSO too low on July 26 and that the two positions should be placed back in the budget. However, she was offended by statements that there would a reduction in police services in any of the areas of the City and pointed out that reorganization is utilized all over the world. She also mentioned that reorganization provides employees with a broader perspective of their jobs and initiates better employees. Commissioner McElyea agreed that the BSO positions were cut too low at the last budget meeting and supported the two positions for this year with the hope • that additional positions could be added next year. Commissioner Mikes clarified that the City added additional BSO deputies over the past few years through a Federal Grant Program, which provided staffing over and above the requirement for maintaining the area. He requested that staff, provide a report on all new positions in all departments over the last five years as well as a public safety audit for Fire and Police services. Commissioner Mikes pointed out that double staffing for the 105 zone was promoted by BSO and not the City of Dania Beach and that more staffing does not always answer all of the crime problems. He mentioned that the City must address over spending in the Fire Department and that reserves should be left in the budget to provide the new city manager the opportunity to review staffing city-wide when the position is finalized. Chief Anton understood the City's financial situation this year and confirmed that BSO would do everything in its power to provide the best possible service in all areas of the City. He clarified that the 105 zone has been staffed with six (6) deputies for many years. The City Commission agreed to provide a total of 4 deputy positions for BSO at a cost of $77,785 per deputy including salary, car, benefits and training. Code Liens: MINUTES 3 AUGUST 2, 2001 WORKSHOP MEETING • Dave Keller, Finance Director, presented a letter from Attorney Timothy Ryan indicating that the City may be able to bring in additional revenue of$115,640 for foreclosure cases on Code Liens in the upcoming fiscal year. The City Commission agreed that this is only a projection and that the City cannot count on the revenue until it is actually received. Mr. Keller advised that no adjustments were made in the budget. Mayor.Flury_requested that staff provide a report on the total amount of collections. a Fire/EMS Non Ad Valorem Mr. Keller advised that the City has also received the first figures from Government Services Group on the Fire non-ad valorem services and that the revenue projections were close to the budgeted figures. He clarified that the increase in the annual non ad valorem assessment from $81.00 to $87.00 (7.41% increase) would be distributed equally among the residential, industrial and commercial factors. The purpose for the increase would cover the debt service to build the western fire station. Mr. Keller advised that overall the ad valorem assessment is supposed to be assessed for the provision of fire service, however, the City is allowed to assess a portion of emergency response when fire equipment is used. • Commissioner Mikes suggested that the rate be increased to $90.00 to cover costs for one (1) additional BSO deputy. Mr. Nunemaker cautioned the City Commission on raising the rates so as not to significantly increase the commercial rates. He explained that Fire service is driven substantially by the commercial and industrial areas and not the residential areas. Discussion followed on a court ruling that required the City to remove the EMS services from the assessment. Mr. Keller stated that a $1.00 increase in the rate would provide $25,728.00 in revenue to the City. The City Commission generally agreed to leave the $87.00 rate for Fire ad valorem assessment. • Water/Sewer rates Dave Keller, Finance Director, advised that the budget provides for a 4% increase in water and sewer rates as an increase has not be implemented since 1998. Over the last three years, the Water Budget has grown by 12.3% or approximately 3% per year and the Sewer Fund has grown by 17.5% or approximately 4% per year, which has been close to the CPI. 40 MINUTES 4 AUGUST 2, 2001 WORKSHOP MEETING Mr. Nunemaker mentioned that there were supposed to be 3 years of 4% increases to fund capital improvements in late 1998 as determined by a Hartman & Associates Study. Current water capacity is approximately 2.5 mgd and the City needs to expand to over 4 mgd. Mr. Keller advised of his intention to conduct a Cost Allocation Study to determine the actual overhead costs for the Water and Sewer Departments. Discussion followed on water.coming from Broward County for the newly annexed area. Bud Palm, Public Works/Utility Director, explained how difficult it would be to sever the water systems from Broward County and the City's inability to provide the infrastructure to handle the service. Discussion followed on all sewerage being treated through the City of Hollywood Regional Plant and the City being part of the Large User Agreement. Mayor Flury confirmed that the rates from Hollywood have increased from $1.27 to $1.50 (18% increase over the last two years) and that the City's increase is much lower (3-4%). Jason Nunemaker, Acting City Manager, reported that a financial study is being conducted on the Large User Agreement and that Pembroke Pines, possibly Miramar, may pull out of the agreement due to the costs of the expansion of the Regional Plant. The City of Dania Beach needs to maintain integrity of the . agreement because the City gets the economy of scale of all the users. He did not recommend support of Pembroke Pines pulling out unless the financial study turns out to indicate a benefit for Pembroke Pines to give up its 8 mgd capacity and the plant expansion would not be needed. The current capacity of the plant is 42 mgd and a 51.5 increase is being considered. Mr. Nunemaker agreed to provide information as he receives it. c) Capital Improvement Projects Mr. Keller presented a list of Capital Improvement Projects and advised that debt service for the projects is included in the budget. Commissioner Bertino suggested that debt service might be reduced since most of the projects would not be completed during the full year and that the construction costs could be accomplished on a draw down basis at different quarters of the year. Mr. Nunemaker explained that the funds would accrue interest and remain invested until they were needed and that funding methods could be pursued. Mr. Keller explained that in general the City would want to encumber the whole amount of the project upfront as the interest that is earned could help offset the MINUTES 5 AUGUST 2, 2001 WORKSHOP MEETING debt service payments. Or, the City could borrow slightly less amounts and achieve the total amount with interest earnings over a longer period of time. The City has been listed fora Swim Central Grant from Broward County for some $1.1 million and the distribution of the grant money has not been worked out yet with Broward County. Therefore, Mr. Keller explained that $1,150,000 has been provided as part of the CIP for park improvements. ...Mr. Nunemaker recommended a master plan of improvements for the parks and Commissioner Mikes recommended obtaining public input. Mr. Nunemaker explained that $250,000 was provided for a Public Works Administration Building, vehicle coverage and storage, and access to the Boisey Waiters Center as well as access to the locked parcel proposed for expansion of the plant. Commissioner Mikes and Mayor Flury thought that the debt service was projected too high. Discussion followed on the need to hire a temporary Design and Construction Coordinator, on a temporary basis, to monitor the projects to ensure timely completion. Mr. Nunemaker explained that CDBG grant funds could not be used for the street closings because the area is not located in the block grant target area, however, the street closings proposed for Dania Beach Boulevard and NW 2"d Street would be funded from the 27th Year CDBG funds. Commissioner Bertino • mentioned the need to investigate the possibility of using CDBG funds for a community center that could include Public Works Offices on the Public Works complex over the next two years. Mr. Nunemaker suggested pursuing Boisey Waiters for the community center and funding from FRDAP (Florida Recreation Development Assistant Program), BBIP (Broward Boating Improvement Program) and FIND (Florida Inland Navigation District) funds. He mentioned that Enterprise Funds might also be used for the expansion of the Public Works Compound. Commissioner Bertino advised that the City could borrow the $4,525,000 and pay the $363,375 debt service as long as the interest rate is higher than the interest rate to borrow the money. Another option would be to get a lending institution to structure a loan on a construction draw basis over a period of time so that interest would not begin until the draw started. Commissioner Mikes recommended that the Charter be reviewed on the City's debt limit. The City Commission generally agreed to reduce the debt service from $4,525,000 to $4,000,000 and to have staff adjust the figures on the projects. d) Other Funds Appropriations ® Water ® Sewer • © Stormwater MINUTES 6 AUGUST 2, 2001 WORKSHOP MEETING • Mr. Keller advised that electricity costs could be reduced in the Sewer Fund by $14,000 and telephone by $3,000 and Electricity by $5,000 in the Water Fund. Mayor Flury clarified that these amounts are not really reductions as the amounts were over stated with the proposed budget. Commissioner Bertino requested a revised Personnel Sheet showing employees and total cost by department with all benefits that would also include BSO deputies. Commissioner Mikes requested a report on the cost per capita for public safety services (BSO & Fire) based on pre-annexation and costs after annexation for a better comparison with other cities. It was agreed that the City should be compared to cities similar to the City's demographics and infrastructure. Mayor Flury recommended adjustments in the Enterprise Funds to make the figures closer to the YTD usage figures. Revenues: Mr. Keller explained that the Ad Valorem amount of$10,355,681 is a combination of the assessed valuation of all taxable properties in the City and the millage rate set by the City Commission. Now that the millage rate has been • changed from 6.815 to 6.1999, the amount would decrease by approximately $950,000.00. Commissioner Bertino recommended an audit to be conducted to ensure that the City receives all the tax revenues from the newly annexed area based on some of the problems that developed with the last two annexations. Mr. Nunemaker advised that Governmental Services Group is going to provide all of the , properties by folio numbers so that the City can provide the list to the County to ensure that the City is obtaining all revenues. Mr. Nunemaker mentioned that all of the properties have to be provided to the utility companies as well. Mr. Keller stated that many of the revenues were overstated in last year's budget and that he made necessary adjustments based on the 2000 actual figures. He reminded the City Commission that a User Fee Study is currently being conducted to determine a better projection on some of the revenues. Discussion followed on providing a Sinking Fund to maintain the I.T. Parker Center as suggested by Commissioner Bertino and the possibility of negotiating the Harbour Towne Marina lease to include repairs. Commissioner Bertino asked staff to check with the Florida League of Cities on taxes that may be forthcoming to the City from life insurance policies. He mentioned that there is a firm that checks sales tax discrepancies where cities MINUTES 7 AUGUST 2, 2001 WORKSHOP MEETING have be over charged and that he would provide the information to Acting City Manager Nunemaker as soon as he receives it. Commissioner Mikes pointed out that the City's highest costs is for personnel and that reserves are needed to also cover costs that may be pre-empted by State and Federal law and regulating agencies. The City Commission generally agreed to leave the millage rate at 6.1999 and to decide next week on whether or not another budget workshop was needed. 4. Adjournment. This meeting adjourned at 11:40 a.m. PAT FLURY, MAYOR CHARLENE J ON ACTING CITY bttRK APPROVED: August 14, 2001 MINUTES 8 AUGUST 2, 2001 WORKSHOP MEETING