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HomeMy WebLinkAbout86238 - MINUTES - City Commission MINUTES OF BUDGET WORKSHOP DANIA BEACH CITY COMMISSION TUESDAY, JULY 29, 2008 - 8:00 A.M. 1. Call to Order Mayor Jones called the workshop to order at 8:09 a.m. 2. Roll Call Present: Mayor: Albert Jones Vice-Mayor: Anne Castro Commissioners: Bob Anton John Bertino Arrived at 10:19 a.m. Patricia Flury City Manager: Ivan Pato City Attorney: Thomas Ansbro City Clerk: Louise Stilson Also Present: Patricia Varney, Finance Director Nicki Satterfield, Assistant Finance Director Colin Donnelly, Assistant City Manager Dominic Orlando, Director of Public Services and Utilities Mary McDonald, Director of Human Resources and Risk Management Norris Colvert, Director of Community Development Jack McCartt, Fire Chief Michael Cassano, Deputy Fire Chief Kristen Jones, Director of Parks and Recreation Donn Peterson, BSO Chief Jeremy Earle, Community Redevelopment Director Mayor Jones noted these are trying times for cities with cuts from Amendment #1, which require us to make tough decisions. He remarked that it is during difficult times that leaders lead and now is the time to lead. Mayor Jones stated he is proud of this Commission because when he was previously on the Commission they did not want to lead, but this Commission is not afraid to lead. He noted some of the projects that have moved forward with this Commission. Mayor Jones also commended the City Manager, City Attorney, and staff for their hard work. He indicated that this body has been good to the citizens, but it is now time to lead for what is best for Dania Beach. Mayor Jones stated he wants the Commission to leave some room in the millage rate to allow latitude to forge ahead. 3. Presentation and discussion on the City Manager's Proposed FY08/09 Operating Budget Appropriations: City Manager/Finance Director Summary Presentation City Manager Palo made the following opening statement: "This proposed budget was put together in accordance with the direction you gave us during the strategic planning workshop we held March 15, 2008. To balance the proposed budget at the present millage rate of 5.4044 will require you to find additional cuts, ways to raise additional revenues or simply look to the reserves. This proposed budget is balanced at the millage rate of 5.6829 which the State allows you to set with a simple majority vote and in accordance with the Personal Income Growth rate of 4.15 %. The Governor, the Legislature and the taxpayers spoke loud and clear, they want taxes lowered and they said they were willing to accept the consequences associated with it; they are feeling the pain of high gas prices, an economic recession, double digit increases in their FPL bills, a drop in their home equity, and higher food and insurance costs. It is not our intent to ignore the will of the voters by balancing this budget at the 5.6829 rate; we do so because it allows us to maintain acceptable levels of services, because it does not compromise public safety, and because it keeps the City of Dania Beach fiscally sound. Under this proposed budget the people still get a tax cut and will pay less in taxes than they did last year. BUT WE MAY BE ONLY BUYING TIME! With the possibility of additional tax cuts, declining revenues, State mandated caps in your ability to raise revenues and further declines in real estate values, we have a responsibility today to keep our sights also on FY 2010; 1 believe our next Commission will face a much tougher time balancing next year's budget than the one you are addressing here today. We came prepared to have a discussion with you today about how we can produce a budget you can all agree on, our fund balance is now approximately $15M, regrettably we will not be able to meet the Commission's stated goal of$20M in reserves. We look forward to a thorough review and are ready to discuss any changes you wish to propose." Patricia Varney, Director of Finance, presented a PowerPoint overview of the proposed FY 2008-2009 Budget, which is attached to and incorporated into these minutes. Commissioner Flury noted this is a good budget, but she will not support an increase in the millage rate because she believes we do not need to do that. She will also not support the Minutes of Budget Workshop 2 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. elimination of the COLA or reduction of the monthly expense allowance for Department Heads, because it would demoralize the leadership of the City. Commissioner Flury did not have any issues with the revenues however, she is concerned with salaries. She questioned if we could fund less than the whole amount $1.3M for GASB 45, and if so, what would be the total liability. Finance Director Varney explained that if we reduce the funding for GASB 45 it would drop our net assets. Mayor Jones asked Director Varney what would be the consequences of not funding the total of $1.3M for GASB 45. Finance Director Varney explained we need $1.6M-$1.8M annually for a city our size, but an actuary study is required every two years. She indicated that the main consequence would be when trying to borrow money, and the liability will continue to grow every year if we do not fund it annually. Director Varney remarked that if we fund less, we would lower our net assets at the close of the fiscal year. Commissioner Anton questioned how this would affect us with SRF funding. Finance Director Varney explained it would not, however it may affect us in the future if we need to borrow other funds. Commissioner Flury pointed out that reducing the funding for GASB 45 by $100,000 would not make a difference. Vice-Mayor Castro would like to assess the capital projects that are completed, or near completion, in the Capital Improvement Plan. She indicated there may be some adjustments that could be made. Finance Director Varney clarified that the SE Traffic Calming funding will be derived from the Three Cents Gas Tax. Discussion followed among the Commission, Director Varney, and Public Services Director Orlando regarding the possible changes to be made to the SE Traffic Calming Plan in order to reduce expenses. Finance Director Varney advised she already recognized the savings in the Capital Projects. She noted the 53`d Court project funding was derived from the G.O. Bond and the Three Cents Gas Tax. Vice-Mayor Castro suggested the surplus G.O. Bond funds for recreation projects could be brought forward to use for Adler Park and other park projects in the 2009 budget. This would reduce costs in the General Fund budget. Minutes of Budget Workshop 3 Dania Beach City Commission Tuesday,July 29,2008-8:00 a.m. Commissioner Flury clarified with Director Varney that the surplus funds from projects that are completed would be allocated to the General Fund balance and the G.O. Bond for recreation projects. The Commission generally agreed to reduce costs from the following projects: -$250,000 from the SE Traffic Calming project -$53,000 from Adler Park -$172,000 from 53`d Court Commissioner Anton clarified for the record that the information shows the balancing of the budget of approximately $2M being derived from the General Fund balance. He also noted that our current Fund balance is over $18M. Mayor Jones questioned the funding for the SW Community Center. Finance Director Varney confirmed that G.O. Bond recreational funds could be used for the SW Community Center. She further clarified that Park Impact Fees could also be used to fund the SW Community Center. Departmental Budgets review/Revenue review City Attorney City Attorney Ansbro advised that he met with Special City Attorney Tim Ryan and Nick Lupo, Code Compliance Manager, and they are proposing to implement an administrative fee, in addition to the fines, as allowed by law. The fees would help defray the cost of staff overtime and legal expenses associated with processing code cases. Nick Lupo, Code Compliance Manager advised that, subject to Commission approval, they are proposing to charge $25 for stipulated/non-contested cases, and $50 for cases involving a hearing. He clarified these charges would only apply to cases brought before the Special Magistrate, not for every citation issued. Mr. Lupo pointed out that several other cities follow the same procedure. Commissioner Flury thought we should charge $50 for every non-contested case rather than add more costs to the ones who would be paying fines anyway. Vice-Mayor Castro confirmed with Mr. Lupo that those cases who comply are not charged. City Attorney Ansbro noted that another proposal would be to implement a uniform code citation to repeat violators. Mr. Lupo explained that the proposal is a uniform code citation process, similar to a traffic citation. It applies to minor violations that can be corrected within 24-48 hours, such as trash Minutes of Budget Workshop 4 Dania Beach City Commission TuesdaY� Y Jul 29 2008—8:00 a.m. cans not brought in after pick-up. He noted his department will first send a Courtesy Notice and if the violation continues they will implement a progressive level of fines beginning at $25. Tim Ryan, Special City Attorney for Code Compliance, confirmed that a $25-$50 fee would be charged for cases appearing before the Special Magistrate. He further noted that routine violators for minor cases that do not come before the Special Magistrate would fall under a schedule of costs presented by ordinance for Commission consideration. Commissioner Flury noted she agreed with staff recommendation on the first proposal for $25- $50 fines. However, she thought we were not yet ready for the second proposal because we are inconsistent. Attorney Ryan noted that we are trying to bring uniformity with cases appearing before the Special Magistrate. He felt the Commission may want to hold a workshop to discuss this matter in more detail. Vice-Mayor Castro suggested including this proposal in the One Code process, which would also allow for public input. City Attorney Ansbro proposed that the Code Compliance Unit assume some of the administrative paperwork handled by Attorney Tim Ryan, with the City Attorney's review. He was pleased to report that outside counsel costs have decreased significantly and that we are recovering costs for some projects in the Community Development Department. Commissioner Anton indicated that more legal services should be done in-house, and added that we would definitely need more funds for airport litigation. Commissioner Flury indicated the figures were inflated. She noted we could implement a system where Commission approval would be required for all outsourced legal matters. Furthermore, all Code matters could be done in-house with the addition of a paralegal. Commissioner Flury thought these changes may help balance the costs. Attorney Ryan noted there is off-setting revenue from Code. Vice-Mayor Castro suggested bringing the outside legal line item to $120,000, and if there are any problems we can re-visit the issue during Mid-Year adjustments. City Attorney Ansbro concurred with the recommendation made by Vice-Mayor Castro. The Commission generally agreed to move forward with the first proposal made by the City Attorney and the remainder of the proposals to be included in the One Code process. Minutes of Budget Workshop 5 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. City Manaeer Commissioner Flury questioned the thirty percent increase in gasoline in the Code Compliance Unit, considering they have eliminated one Code person and new fuel efficient vehicles have been purchased. City Manager Pato pointed out that we have two fuel efficient vehicles, but several older vehicles are still being used. Colin Donnelly, Assistant City Manager, advised that of the two new cars, only one is being used by Code. He explained that Code swapped a vehicle with Community Development so they could accommodate the big sets of plans better. Assistant City Manager Donnelly clarified the other new car is a take-home vehicle for the Code Compliance Manager. Finance Director Varney noted the costs are based on consumption with fuel at $4.50 per gallon, which is 28 percent higher than last year. It was the consensus of the Commission to reduce the cost of gasoline for the Beach Division by fifty percent. Vice-Mayor Castro recommended transferring the $30,000 reduction offered by CRA Director Earle to the Economic Development account. This amount would assist with the implementation of the Tourism Council and the Chamber of Commerce strategic partnership to promote economic development in the City. It was the consensus of the Commission to raise the Economic Development Fund to $50,000. City Clerk No comments. Community Development Commissioner Flury noted that the Professional Services line item shows we pay $700,000 per year for plan review. She questioned what would happen if we were in a full redevelopment mode. Commissioner Flury further asked about the plan review revenue decreasing by sixty percent. Norris Colvert, Director of Community Development, noted they will try to implement as many efficiencies as possible over the next few months, and his department will find a way to do better business and increase our revenues. LouAnn Cunningham, Planning Associate, clarified for Commissioner Flury that Community Development fees are cost recovery and these funds are used to pay outside consulting fees. Commissioner Bertino arrived at 10:19 a.m. Minutes of Budget Workshop 6 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. Ms. Cunningham advised that the sum of$700,000 relates to pending projects such as the EAR, Comprehensive Plan, the LAC consultant services, etc., which will soon be completed. Commissioner Flury questioned the cost of having the positions in-house as opposed to contracting with the County. Commissioner Anton noted that some years ago it was difficult to find a building inspector or a plumbing inspector so we decided to contract these services from the County. However, times have changed and we may be able to hire these positions to do the work in-house and save costs. Vice-Mayor Castro thought we should first evaluate the volume of work for those positions before hiring someone with full benefits. It was the consensus of the Commission for the Director of Community Development to do a cost benefit analysis of in-house positions versus contractual, for all the current contractual services for future years. Finance Vice-Mayor Castro would like to allocate funds to audit the Beach Watch Pier Restaurant. Finance Director Varney advised she plans to use our current external auditors and they would charge for the audit on an hourly basis. She indicated that she would need to write a proposal and this may take some time. Director Varney asked the Commission if they would agree to have the Finance Department do the audit this year and use the funds for next year. It was the consensus of the Commission to add $20,000 to the Professional Services line item, to audit the Beach Watch Restaurant. Fire Department Michael Cassano, Deputy Fire Chief, explained that ADPI, the billing company for rescue ambulance services, and the Dispatch services with the City of Hollywood are some of the highest costs in their department. He noted that if we use the Broward Sheriffs Office Dispatch services, we would lose automatic local aid. Finance Director Varney explained that the Fire Reserve Fund was used for the construction of Fire Station #93. She further advised that in 2010 the Fire Department would need about $800,000 for Capital Projects, such as the purchase of new fire engines, medical transport rescue units, and other expensive equipment. Commissioner Flury questioned if the Fire Reserve Fund could be used to purchase the additional equipment needed for Fire Station#93. Minutes of Budget Workshop 7 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. City Manager Palo noted the $3 Fire Assessment fee was designated to build a fund for the construction of Fire Station#93. Deputy Fire Chief Cassano pointed out that their priority list is a bare bones list. He further commented that Fire Station #93 was supposed to be a redundant EOC: however, this is no longer the case. Vice-Mayor Castro suggested developing a list of items required and bringing it back to the Commission for future funding. It was the consensus of the Commission to use the Fire Reserve funds to purchase items for Fire Station#93. The Commission suggested looking at bidding out cleaning services for uniforms in the Fire Department and Public Services. Mayor and Commission No comments. Police - BSO Vice-Mayor Castro asked if there was any way to reduce costs internally, such as reducing staff. BSO Chief Donn Peterson responded it is the will of the Commission. He thought we offered good office hours and good customer service. Chief Peterson pointed out that cuts would be hard-felt and eliminating one CSA would not be a significant reduction because they are the lowest paid positions. He is concerned with sending people all around town for services (City Hall, 803 Sub-Station and Fire Station #93). Chief Peterson advised they recently volunteered to participate in a records scanning program which allows them to process public records requests. He clarified for the Commission that the contract specifies the hours the walk-up windows will be serviced. Commissioner Anton clarified for the record that if a person was the victim of a crime somewhere else and the case is handled in Dania Beach, the crime statistics will not appear in our record, but in the municipality where it occurred. He further noted he did not support cutting any deputy positions because this would affect the safety of our people. Commissioner Flury noted we need to negotiate a better contract with the Broward Sheriff's Office. She pointed out a standard five percent yearly increase was not right. Commissioner Flury thought we had to be creative and find a way to increase efficiency and minimize the expenses in this area. Vice-Mayor Castro noted she did not want to affect our safety by cutting positions, but it would eventually happen. She encouraged more community policing so that the citizens would feel more connected with the police. Vice-Mayor Castro suggested that officers get more involved Minutes of Budget Workshop 8 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. by introducing themselves to the neighbors or attending the Homeowners' Associations meetings. Commissioner Anton would like BSO to monitor cost assessments for accident responses. He also suggested investigating the cost of 12-hour shifts. Commissioner Anton finther requested an impact study on the cost of providing assistance to the airport and seaport, services for which we do not get any compensation. He thought these items could be taken into consideration when negotiating new contracts. Commissioner Bertino concurred with Commissioner Anton regarding the services our police and firefighters provide to the airport and seaport, and felt these inadequacies should be rectified. City Manager Pato asked the Commission to comment on red-light cameras. He noted many cities have introduced them and they seem to have a positive traffic calming effect at dangerous intersections. Commissioner Anton noted this was placed on hold at the request of the City Attorney because it has not yet been approved by the State. BSO Chief Peterson noted he is concerned with the liability the City could incur. It was the consensus of the Commission to wait until the matter is legalized by the State. Commissioner Flury noted we did not discuss the EMS rate increase in the Fire Department. She is not concerned with the increase, but asked how we bill those involved. Deputy Fire Chief Cassano noted we bill everyone, including people from out of state. It was the consensus of the Commission to accept the increased EMS rates. Public Services Commissioner Flury questioned why we were not using Perpetual Care Funds to replace the fence at the Cemetery. Finance Director Varney noted we are not charging enough for perpetual care. She explained that the interest earned on the Perpetual Care Fund is transferred to the General Fund. The Commission agreed that the interest earned on the Perpetual Care Fund should remain in the Perpetual Care Fund, not be transferred to the General Fund. Finance Director Varney pointed out that cemetery rates and perpetual care costs could be increased for future sales. She further cautioned the Commission that if we start taking money out of the Perpetual Care Fund to cover incidental expenses, there will be no money left in a few years. Minutes of Budget Workshop 9 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. It was the consensus of the Commission to discuss this matter at a future workshop. Lunch Mayor Jones recessed the Workshop at 11:55 a.m. Mayor Jones reconvened the Workshop at 1:03 p.m. Parks & Recreation Kristen Jones, Director of Parks and Recreation, confirmed for Commissioner Flury that the community bus service has kept the same level of service and routes have not been reduced. Commissioner Flury noted she would like to keep the July 4 h celebration in the budget, as well as the Martin Luther King, Jr., event, if funds are available. Director Jones noted that it rained this past 4`s of July and that the donation of$10,000, made by Neptune Fireworks on Dania Beach Boulevard, has been brought forward for an event in January 2009, which will be held in conjunction with the Dania Beach Chamber of Commerce. She clarified for the Commission that Neptune Fireworks is aware that their donation would be used to fund the Taste of Dania Beach event in January 2009. Vice-Mayor Castro would like to add the Dog Park to the list of items to be considered for possible funding. Commissioner Bertino indicated that Tigertail Park needs to be open to the public, and would like funding to keep it open. Director Jones noted Tigertail would be open during structured events only. She pointed out that if the hours of operation are from 9:00 a.m. to 5:00 p.m., we would need supervision and lifeguards. Mayor Jones suggested conducting a study on how much funds would be needed to keep Tigertail Park open to the public. Director Jones noted that she needs $15,000 for ADA compliance at C.W. Thomas Park. It was the consensus of the Commission to take the requested funding from the G.O. Bond. Vice-Mayor Castro questioned the cost of the Dog Dock Diving. She thought $50,000 was too high. Director Jones affirmed the cost was calculated in accordance with Dog Dock Diving standards. She clarified for the Commission that the Dog Park would be approximately $53,000; and the Dog Dock Diving are not included in the budget. She requested these items to be listed for consideration. Minutes of Budget Workshop 10 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. Director Jones explained the pool salt water conversion. She commented the City is expending an outrageous amount of money in chlorine and equipment for three pools. Director Jones also noted that this will eliminate the handling of chemicals around the children. The Commission concurred with the salt water conversion proposal. Commissioner Flury noted the revenue for I.T. Parker has decreased substantially. She thought we may have raised the fees too high. If there are no events at the facility, the employees should not be working increased hours. Commissioner Flury asked for the salaries to be adjusted while we try to improve the current situation. Kurt Ely, Chairman of the I.T. Parker Community Center Advisory Board, noted that they now insist that renters of the hall have insurance to protect the City. They also require a liqueur license if they are using alcohol on the premises. He indicated the insurance requirement is a reason for the loss of income. Mr. Ely indicated the Board will review the fee schedule and report back to the Commission. Commissioner Flury noted that we need to have a good relationship with the caterers which would help attract renters. Public Services Vice-Mayor Castro confirmed the following information with Finance Director Varney: • $172,500 will be removed from the 53`d Court Lighting program to fund lighting and sidewalk projects in 2009 • $350,000 will be reduced from the SE Traffic Calming project • $500,000 will be taken from the Neighborhood Improvements program Discussion followed between the Commission and Director Varney regarding the fluctuating cost of gasoline. City Manager Pato thought Director Varney's approach was the correct one. He further noted that we keep track of mileage for our vehicles. Commissioner Bertino questioned if it would be better to work the Public Services crew on a 4- day workweek. City Manager Pato noted the cities that are working 4-day workweeks have not been able to determine if there is a cost saving. Water Fund Commissioner Flury questioned why the old water tank needed to come down. Minutes of Budget Workshop 11 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. Director Orlando responded that for safety reasons the tank should come down as soon as possible. He noted that once the project is put out to bid, we will know the cost of the tank removal. Commissioner Flury questioned the consultant fees for the Public Services projects and whether Director Orlando had reviewed the budget for the proposed projects. She noted that all Public Services projects come in under budget, and asked if there was a creative way to show this in the budget. Director Orlando confirmed he reviewed each one of the Capital Improvements projects. He noted that every time there is an opportunity to do something which would result in a savings, he will definitely do it. However, he cannot predict it in advance. Sewer Fund Director Orlando noted sewer monthly rates could go up $30-$90 with the closure of sewer outfalls. Stormwater Fund Commissioner Flury questioned the Contingency Fund shown under this item. Finance Director Varney advised that although we have not increased the fees, the revenues have gone up. She indicated that funds would be used in the 2010 budget. Marina Fund Colin Donnelly, Assistant City Manager, noted our fees are below other municipal marinas. Commissioner Flury commented the new suggested rate of$575 for the stationary dock is high. Assistant City Manager Donnelly was pleased to report that we still have a waiting list. He further explained the proposed improvements to the Manna. It was the consensus of the Commission to implement the new rates. Community Redevelopment Aeencv Finance Director Varney confirmed with the Commission that $30,000 will be deducted from the CRA budget and transferred to the Economic Development Fund. Human Resources and Risk Manaeement Mayor Jones questioned the training and per diem budget. Minutes of Budget Workshop 12 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. Mary McDonald, Director of Human Resources and Risk Management, explained these are programs addressing diversity in the workplace, ADA and EEOC issues, which are designed to make us aware of certain legal requirements. She further noted these programs are intended to educate our leaders and managers to avoid possible litigation. Vice-Mayor Castro asked if these programs would protect the City from future liabilities, otherwise she did not see the advantage of allocating funds for this type of training. Director McDonald advised she will check with the attorneys currently providing these programs and report back to the Commission. Commissioner Anton commented on the increase in personnel cost for employees entering the DROP plan. He would like this issue to be discussed during the upcoming Union negotiations. Commissioner Anton further indicated that we need to find a way to cap salaries without hurting the employees. Director McDonald advised that Dania Beach salaries are competitive, or low, compared to other cities in Broward County. She explained that performance evaluations are 0-5 percent. Once an employee reaches the maximum pay range they do not get an increase in their salary, but we give them a lump sum bonus in recognition of their performance. Director McDonald also stated that a commendable employee may receive a merit increase plus a bonus for outstanding performance, although we have very few people under this category. She noted that other cities have moved to a performance based salary increase, as opposed to step increases. Vice-Mayor Castro noted that under the current plan an employee could receive a five percent merit increase, a COLA, and a possible lump sum bonus, which is too much. She thought we needed to reconsider our merit system. Commissioner Flury noted the City Commission, City Manager and City Attorney are not eligible for COLA, but thought the Department Heads should receive the COLA. City Manager Pato responded that it was his decision to not budget a COLA for the Department Heads. He indicated that he brought the issue of COLA to the Commission on several occasions because we cannot afford to continue to do both, merit increase and COLA. City Manager Pato further noted that the employees' idea of a COLA is that it is an entitlement. He reiterated that he previously stated that he would not receive a COLA. Commissioner Flury remarked we are only talking about $50,000, which we can definitely afford to take care of leadership. She remarked that if the COLA is removed for the Department Heads, it should be removed for everyone in the City. Commissioner Bertino noted COLA only keeps people equal to where they should be if the cost of living rises. Vice-Mayor Castro asked that the Compensation Comparison be recomputed to show where we are with the top of the range. Minutes of Budget Workshop 13 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. Commissioner Anton was undecided on whether or not we should cut the COLA. Vice-Mayor Castro is concerned that revenues are not keeping up with COLA and merit increases. She would prefer to keep jobs and pay employees less, because during these difficult times it is hard for people to find a job. Mayor Jones agreed to keep either a merit or COLA. It was the consensus of the Commission to budget COLA for Department Heads, provided all other employees receive one. City Manager Pato noted he wants to schedule a Shade meeting on Wednesday, August 6, prior to the CRA meeting to discuss Union negotiations. Commissioner Flury wanted to discuss the salary line item and GASB 45. She asked the Finance Director to review the revenues on a year-to-date basis. Finance Director Varney noted she will show the spreadsheet to the Commission. Commissioner Flury questioned the GASB 45 funding. She asked whether we could fund less than $1.3M and what difference a $100,000 reduction would make to our debt service. Finance Director Varney reiterated it hurts our bond rating. She commented she tried to split the $1.3M among every fund so it does not directly affect the General Fund. It was the consensus of the Commission to wait and see what the reductions discussed today bring, before reducing the GASB 45 funding by $100,000. Mayor Jones noted he will contact someone who may be able to give him some general information regarding a possible reduction and how it would affect our bond rating and share it with the Commission. Finance Director Varney summarized that the reductions taken today show a savings of $1,013,609. These reductions include: • Keeping the COLA for Department Heads • Reducing the Part-Time salaries for I.T. Parker Center • Adding $20,000 for the Beach Watch Restaurant audit Finance Director Varney also noted that the Projects to be funded are: • $10,000 for the July 4a'event • $10,000 for the Martin Luther King, Jr., celebration • $53,000 for the Dog Park • $50,000 for the Dog Dock Diving Minutes of Budget Workshop 14 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. Commissioner Flury suggested that the balance of $56,052.00 be placed in the Contingency Fund to cover any miscalculations or incidental costs. 4. Adiourmnent Mayor Jones adjourned the Workshop at 3:26 p.m. eRpWARUSF�Rf CITY OF DANIA BEACH r LOUISE STILSON, CMC ALBERT C. JONE CITY CLERK MAYOR-COMMIS STONER 1 Approved: August 12, 2008 ` D Minutes of Budget Workshop 15 Dania Beach City Commission Tuesday,July 29,2008—8:00 a.m. City of Dania Beach A Challenging Time FY 2009 'f Proposed Budget General Fund Budget FY 08 FY 09 . Personnel 41% 43% . Police 23% 25% . Fire 23% 25% . Debt Payments 2.6% 2.3% • Capital Projects 9% 6.7% A Budget Highlights (General Fund) Personal Service (Personnel) . 3 FY 08 vacant positions not funded Technical Support Supervisor Code Compliance Officer >. Maintenance Worker . 3 staffed positions being eliminated Budget Highlights (General Fund) Personal Service (Personnel) • Total Pension Contributions: FRS, pick-up and actuary calculations: $2.6 million • City's Pension Plan funded based on actuary calculation $ 1 .2 M . • Compared to FY 2008: Police/Fire +$57K General Employees - $40K Budget Highlights (General Fund) Personal Service (Personnel) • No COLA for City Commission, Department Heads and City Attorney: -$34,000 • Available funds should union contracts rectified : $275,000 salaries & fringe • Health insurance: + $91,385 (7. 1%) • OPEB Funding : $ 1 . 1 million Al�Budget Highlights (General Fund) Operating Expenses . BSO Contract: + $444,366 (5%). Funded only $369,366, net of $175,000 vacancy credit. . Property Insurance: - $ 121,441 (- 16%) . Reduction of $100 expense allowance for City Commissions, City Manager, City Attorney and all Dept. Heads: - $ 17,340 Budget Highlights (General Fund) • Economic Development: - $30,000 • ADA Consultant: - $ 17,500 • Contractual Grant Writer: - $25,000 (eliminated) • Lobbyist: - $22,500 • Study may deem necessary during the year: - $20,000 • Summer Program for 1 Center: - $65,069 Budget Highlights (General Fund) • Gasoline : + $63,000 • Electricity: + $ 140, 110 (new fire station and add'I lights due to annexation) . Election expenses : + $ 110,000 . Electronic Agenda Maker: + $ 14,000 'I 4gi Budget Highlights (General Fund) Other Uses • Aid to Private Organizations: $14,908 • General Fund Contingency: $600,000 (to fund for unforeseen circumstances, shortfall of revenue, compensation for restructuring, etc.) • Fire Reserve $170,347 • Reserve for Comprehensive Plan (3 cents gas tax): $175,200 • Contribution to CRA Fund : $550, 113 (+$405, 113) 41, Budget Highlights (General Fund) Capital Outlay: $50,414 . Fire Station 93 : $ 17,800 :• Training Projector: $2,300 Tablet PCR: $5,000 Exercise Equipment: $8,500 :. AED for new station patient treatment area: $2,000 . Salt water conversion pool systems (3) : $32,614 Budget Highlights (General Fund) Comparisons to FY 2008 : Personnel Expenses net of GASB 45 funding : - $ 16,751 Operating Expenses: - $ 172,751 (- 1%) o. Capital Projects Fund . Public Services Facilities . New Fuel Station . Dugout for C. W. Thomas Park . Adler Park Playground Equipment . Court Resurfacing 3 Capital Projects Fund E. . Neighborhood Improvements . Citywide Lighting Program • Cemetery Improvements . ADA Sidewalk modifications • Self Contained Breathing Apparatus $2,480,732 �� � Revenue Sources . Ad Valorem tax revenue: 5.4044: $16,194,890 5.6829: $17,029,446 . Difference between 5.4044 mill and 5.6829 mill is approximately $835K . All State revenue projections are at 95% . Fire Assessments at 95% collection rate Revenue 4 Fee Increase dW . Business License Tax = $25K . EMS Transport = $80K . Beach Parking Permit = $7,280 (seniors + $5; non resident seniors + $20; resident + $10) Marina Fund . Total Budget: $368,330 . Fee increases (1/2009) : + $79,000 Floating dock: from $230 to $350 Permanent dock: from $430 to $575 . Inter-fund Transfer to General Fund : $34,512 FAU impact a Building Operations . Total budget: $ 1,392,532 Net of GASB 45 funding : $ 110,751 (8.9%) increase . Revenue derived balances the budget, no fee increase is proposed Community Redevelopment Agency MW . $550, 113 . Operating budget as submitted by CRA Director . Personnel Expenses include COLA, merit increase and no reduction in expense allowance. Tree Preservation Fund . Total Budget $37,000 . Routine Maintenance r; Budget Highlights (Enterprise Fund) • Elimination of one position • Inter-Fund Transfers from Water and Sewer funds to General Fund is $512,358 a 5% increase • Sewer rate increase and true up by City of Hollywood : $704,630 (current year short $300,000) Budget Highlights (Enterprise Fund) . SRF Debt Service: - Water Tank High Service Pump - Water Main Looping Phase I & II - Water Tank Removal - Force Main - Inflow/Infiltration Total Debt Service for FY 2009: $751, 122 Budget Balance at . . . . . . . . . . . . . r FY 2001 Proposed Annual Rates . Millage Rate: 5.6829 . Voted Debt Svc: 0. 1400 . Garbage Rate: $244.80 (+$2.88) . Fire Assessment (Res): $92.00 (-$1.57) What saving does it means to our residential owners (property tax, sanitation & fire assessments) Upon approval the average homesteaded property with an assessed value of $127,362 : 5.4044 - $ 113 . 15 5.6829 - $ 90. 54 Difference: $22.61 per year; $1.88 per month What saving does it means to our residential N` Owners (property tax, sanitation & fire assessments) Upon approval the average residential property with an assessed value of $174,464: 5 .4044 - $ 195 . 51 5 .6829 - $ 69 .39 Difference: $36. 12 per year; $3.01 per month Facts on City's service on residential _ utility accounts with less then 3 units . Total number of units within the City: 11,639 . Units serviced by City"s water: 3,912 . % of units served by City's water: 33% ` e FY 1009 Proposed Annual Rates • Water: 15% (Eliminate 30% surcharge) • Sewer 27% • Storm Water Rate: $23 per ERU What does it mean to our residential utility �' _ customers? Based on an average use of 6,000 gallons per month per household : FY 08 FY 09 Impact Water: $29.28 $28.38 - $0.90 Sewer: $33.40 $42.41 +$9.01 Net Impact: +$8. 11 @ month 4si�� m Other sources for balancing the budget: . General Fund: Police Impact Fees: $42,000 Administrative Impact Fees: $50,000 . Water Fund: Retained Earnings: $ 30,178 Impact Fees: $250,000 Debt Service: $639,699 . Sewer Fund: Retained Earnings: $301,310 Debt Service: $111,453 How are our reserves? • Unreserved GF fund bal : $15,514,783 . Fire Impact Fees: $ 30,029 . Admin . Impact Fees: $ 73,971 . Rec. Impact Fees: $ 287,781 . Police Impact Fees: $ 111,471 . 3 cents Gas Tax: $ 46,612 How are o u r reserves? • Water Unreserved Ret Earnings: $2,643,746 . Water Impact Fees: $574,244 . Sewer Unreserved Ret Earnings: $626,666 . Sewer Impact Fees: $649,018 **(unreserved retained earnings is prior to depreciation expenses) s Budget Hearing Dates . First Public Hearing : September 16, 2008 . Final Public Hearing : September 24, 2008