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HomeMy WebLinkAboutBudget Workshop Meeting - Friday, September 7, 2018 MINUTES OF MEETING DANIA BEACH CITY COMMISSION BUDGET WORKSHOP FRIDAY, SEPTEMBER 7, 2018 — 3:00 P.M. 1. Call to Order/Roll Call Mayor James called the meeting to order at 3:00 p.m. Present: Mayor: Tamara James Vice-Mayor: Bill Harris Commissioners: Chickie Brandimarte Bobbie H. Grace Marco A. Salvino, Sr. City Manager: Robert Baldwin City Attorney: Thomas Ansbro City Clerk: Thomas Schneider 2. Brief Presentation City Manager Baldwin noted the Commission has had the recommended budget for a month, and meetings have been held with individual Commissioners. He briefly spoke of the residential property summary provided to the Commission, as well as excess revenues in the building fund. Nicki Satterfield, Director of Finance, presented a PowerPoint overview of the proposed budget, which is attached to and incorporated into these minutes. She noted the presentation includes changes that were requested by Commissioners since the July budget meeting. 3. Discussion Commissioner Grace said the City has a very comfortable budget; there are some components that should not be funded just because we have the money to do so. She reviewed the following: we need SROs at Collins Elementary and Olsen Middle Schools, and she is okay with the two new fire safety officers, as well as the Fire Chief. She wants to make clear that when she leaves the Commission, the two Oasis homes will be built. She noted the Commission contingency is fine, and at her one on one, she had asked for an additional $3,000.00 per Commissioner on top of the 4% employee increase because the Commissioners deserve it. Commissioner Grace said there is nothing indicated for a 55-passenger bus for the larger groups to use for trips. Finance Director Satterfield noted the two vans are 15-passenger vans, and explained the costs associated with buying a 55-passenger bus. We looked at the option of contracting out with a charter company; if the Commission agrees, we will budget $25,000.00 for charter buses, which would provide at least 10 trips for each senior organization and for other recreation activities, for a total of 30 trips. The amount to charter would not be deducted from the groups' allocation; all three organizations will be treated the same. Commissioner Brandimarte thought we had agreed we wanted$75,000 for the buses. Finance Director Satterfield detailed the costs involved and past trips taken. Commissioner Grace asked about the three vehicles for Parks and Recreation, and their position requests. She also asked about Public Services' six new positions and why we need them. Finance Director Satterfield explained the need for three Parks and Recreation vehicles, and noted the athletic director is currently using his personal vehicle, which is not a good idea. Brad Kaine, Director of Public Services, explained we do a lot of cross-training, but there is still a lack of stormwater and sewer coverage for the entire City, and sometimes we have to subcontract the work out. Finance Director Satterfield explained the funding for these positions. Commissioner Grace questioned positions in the Community Development Department. Marc LaFerrier, Director of Community Development, said the Administrative Specialist would perform records management work and assist with public hearings. Commissioner Grace asked why employees cannot be cross-trained. Community Development Director LaFerrier said they are cross-trained, but development continues to increase and so does the workload. Commissioner Brandimarte asked if he had someone in mind to fill the position. Community Development Director LaFerrier responded it would be open and competitive. It would go through Human Resources and ultimately him, as well as the City Manager. Commissioner Brandimarte questioned the Permit Office Supervisor position. Community Development Director LaFerrier responded the structure of management and supervision has not changed since he has been with the City. There needs to be someone to assist with the overall management of all the permitting activities. Minutes of Budget Workshop 2 Dania Beach City Commission Friday, September 7,2018—3:00 p.m. Mayor James felt one side should be commercial and the other side residential. We also need more worker bees; everyone thinks they are a boss. With Broward County and C.A.P., we do not need all these supervisory positions. Commissioner Salvino spoke of being in business; on the business side of it, he understands the position of the Building department with City business growing. We are getting to the place of telling a director how to run his department; that comes from the City Manager. He felt the Commission is micromanaging. Commissioner Grace said it is her job and Commissioner Salvino's to figure out how the City is spending the taxpayers' money; we do not need to spend money foolishly. She noted she is not on board with the two positions. Everyone thinks they need an assistant, who needs an assistant. Commissioner Salvino commented he looks at the growth of the City, and departments need to accommodate this growth. He is not saying we are not watching taxpayer money; we are trying to provide better service to our residents. He supports the directors who are asking for additional staff. Commissioner Grace said the job needs a different title. She supports Permit Office Supervisor but not the Administrative Specialist position. Community Development Director LaFerrier noted the actual management structure has remained the same since he began, and he further explained. Mayor James asked what the Commission thought about making one side commercial and one side residential. Commissioner Grace said we want to do what is right by the department. Community Development Director LaFerrier added the help he is asking for is fully funded by the Building Fund. The amount of work the department is doing is stretching them. The development community is very pleased with the service they are getting. Commissioner Grace questioned the BSO radios. Finance Director Satterfield said the cost will be spread over a three-year period and BSO is sharing the cost. Commissioner Salvino commented everything included in the General Fund is not a problem to him. If there is a reason the money runs out for charter buses, he wants the Commission to fund the extra. He questioned using Oasis funding for the streets and noted we should let the Code Compliance Manager evaluate whether he needs the positions; we can still allocate the funds. Regarding Public Services,he questioned what the sewer employees do when there is no rainfall, or once the water pipes are fixed. Minutes of Budget Workshop 3 Dania Beach City Commission Friday, September 7,2018—3:00 p.m. Public Works Director Kaine explained the daily workload; there are approximately 900 drains in the City. Commissioner Salvino spoke of unfunded positions, and asked why a Code Compliance officer would be funded out of the General Fund. Finance Director Satterfield explained Code Compliance does not work in the Building Department; permit revenue is restricted for Building functions. The Fire Safety Officer, as well as inspector, comes out of the General Fund as fire fees go to the General Fund. Commissioner Salvino questioned the funding of the Chief Fire Safety Officer position. Community Development Director LaFerrier explained we were not sure how BSO would reorganize; it is hard to find and hire Building Officials and Mechanical Examiners and Inspectors. He would like the opportunity to budget funds that might allow hiring a Building Official or Chief Plans Examiner as a City employee. Commissioner Salvino questioned the Parks and Grounds Technician and Beach Manager under Public Services. Public Services Director Kaine explained the split responsibilities of Public Services and Parks and Recreation at the beach. Commissioner Brandimarte noted she supports the added positions in Public Services and Community Development, although she does not care for titles. Vice-Mayor Harris asked about leasing heavy equipment for Public Services rather than purchasing it. Public Services Director Kaine explained how it is more cost effective to purchase some of the equipment. Vice-Mayor Harris spoke of the $200,000 for the Oasis project being held and using it for the CRA, particularly for the street outside for the Dania After Dark event. Mayor James said residents really look forward to the Oasis program improvements; a lot of people will feel neglected. She would not like to hold the $200,000 funds back; if you start doing that, it will happen again and again. Commissioner Brandimarte agreed with the Mayor; on V Street, all of a sudden it drops dead and looks bad, but she does not want to stop the Oasis project. Commissioner Grace agreed; she would not like for it to be discontinued. City Manager Baldwin has done a good job of moving Oasis around. We will find $200,000 for the CRA; we should keep the Oasis project. Minutes of Budget Workshop 4 Dania Beach City Commission Friday, September 7,2018—3:00 p.m. Vice-Mayor Harris noted his intention was not to neglect anybody from beautifying their neighborhood, but we have talked about beautifying and energizing the downtown. Mayor James felt security and metal detector should have been funded; we are not secure at all. She asked that the Director of Parks & Recreation make sure he looks at the athletic department funds due to playground equipment being in bad shape. Finance Director Satterfield responded equipment will be addressed in the Parks & Recreation Master Plan. Mayor James added there is there a safety issue with the parks' grounds; a lot of the Saratoga Apartments playground equipment is uprooted. Eric Brown, Parks &Recreation Director, stated playground equipment lasts for 10-15 years, and he will go out and evaluate the equipment. Community Development Director LaFerrier noted the Saratoga playground is being demolished due to new development. Commissioner Salvino asked about the timeframe to implement the Parks & Recreation Master Plan. Finance Director Satterfield responded there will likely be multiple components to the Master Plan, which will involve smaller type projects and some major renovations. The Commission will need to decide how far they are going to go with the plan. Mayor James asked Parks and Recreation Director Brown when he is going to tell us about his evaluation of the positions. Parks and Recreation Director Brown said he cannot today, but he will come back to the Commission after his evaluation of the overall department. He added we can look at the equipment right away. Mayor James asked which position in Public Services takes care of the lights. Public Works Director Kaine responded we only have two staff members whose primary responsibility is lights. Mayor James noted we only have 2 people responsible for parks and grounds maintenance; she asked that 2 additional positions be added. She wants to look at the cost to add them since the current employees are torn between locations to tend to. Finance Director Satterfield responded 2 full time positions would be $142,700. Commissioner Grace noted she understands what the Mayor is saying; we have 16 parks and she does not want to wait for debris to be removed. Minutes of Budget Workshop 5 Dania Beach City Commission Friday, September 7,2018—3:00 p.m. The consensus was to add 2 full-time Parks & Grounds Technicians. Mayor James noted she is not in favor of a Permit Supervisor in Community Development, but favors 10 more positions that will do the work. She had asked what would be the difference in level of service with a new Fire Chief, and was told there would be none other than ownership and we do not need that right now. She asked if we had an inspector who retired. Community Development Director LaFerrier said the retiree was a structural inspector and the position is not filled currently. Mayor James asked if we could add another position for structural inspector. Finance Director Satterfield said a Chief Plans Examiner and Inspector is what Community Development Director LaFerrier is looking for; funding comes from the Building Fund. Mayor James noted she is in full support of those positions. Gregory Holness, Deputy Fire Chief, spoke of the importance of having a District fire Chief position. Finance Director Satterfield reviewed each slide and the consensus of the Commission was to amend the proposed budget as follows: Yes on 1 new SRO Yes on 2 new Fire Safety Officers (approved at mid-year) Yes on new Fire Chief Yes on Oasis projects Yes on adding $50,000 to the $87,000 for Recreation positions = $137,000 Yes on adding 2 Parks & Grounds Technicians for Public Services= $144,000 Yes to eliminate Permit Office Supervisor and to add additional employees to do the actual work No to City Hall Medical Detector& Guard Finance Director Satterfield noted these changes equaled $226,000, and asked how the Commission wanted to fund them. Mayor James said we are at 25% reserves currently; it would not be detrimental if we were at 22%. Finance Director Satterfield stated it is matter of practice not to take operating expenses out of reserves because reserves should be a one-time grab. Reserves right now are about $13 million, which is 25%. She added the Commission has used a lot of reserves this year, and listed the uses. Mayor James felt we will not come close to using all of the branding money. Minutes of Budget Workshop Dania Beach City Commission Friday, September 7,2018—3:00 p.m. City Manager Baldwin noted that if nothing is cut, the additional funding would have to come from the reserves. Commissioner Brandimarte does not want anything to touch the reserves for a disaster; she is big on the hurricane fund. She thinks the new Fire Chief position can wait until the next budget and should come off the list. The Commission consensus was to fund the new Fire Chief mid-year if money is available then. 4. Adjournment Mayor James adjourned the meeting at 5:08 p.m. ATTEST: � q� CITY OF DANIA BEACH a y ytIn't, l r ,i • THOMAS SCHNEIDER, CMC TAMARA JA CITY CLERK /SHEO1� MAYOR Approved September 25, 2018 Minutes of Budget Workshop 7 Dania Beach City Commission Friday, September 7,2018—3:00 p.m. . - . ti x i a pia ' rValues � t P o ert Continued Growth! City Property Values City revenues providing increasingfor the fifth funds for communit y consecutive year Property Taxes 2008 values $ 3 , 319,056,469 ► 2008 receipts$ ] 7,937, 508 ► 2009 3514255595344 (-6.8%) ► 2009 $ 1657985253 ► 2010 2 ,939, 1895103 c -8.1%) ► 2010 $ 1657505836 ► 2011 21688,806, 173 ( -1.9%) ► 2011 $ 1558725847 ► 2012 25550J 209331 c .18%) ► 2012 $ 1 5 ,604,005 ► 2013 29671 ,6945774 (5.40%) ® 2013 $ 1611029658 ► 2014 2 , 791 , 734,052 (4.49%) ► 2014 $ 1697495846 ► 2015 2 ,968,0681927 (7.49%) ► 2015 $ 1718079820 ► 2016 3 ,21018031862 (9.90%) ► 2016 $ 1813875922 ► 2017 31851 , 792 ,288 (20.68%) ► 2017 $22 ,0855125 2,01 8 4, 126,098, 540 (7.12%) ► 2018 $ 23 , 5171978 Homestead Impact '\P} 2c)`v11i3 .w� �ii } +. 1 �NJ, 1 i .t�V,�I 1 Assessed Value- Exemptions= Esi-, . t�� in ._ Taxable Value • $100-$125k Assessed Value Pay Taxes $75-$100k Assessed Value Second Homestead Exemption $50-$75k Assessed Value Pay Taxes $25-50k Assessed Value First Homestead Exemption 0-$25k Assessed Value 4 "a n PROTECTING HOMERULE t7%/,w l <> Preliminary budget Actions Taken July 24 , 2018 • Taxes = maintain existing millage 5 . 9998 mills • "rolled back" millage rate - 5 .6675 mills • Voter Approved Debt millage . 1760 mills • Set 1 St Sept. Budget Public Hearing Wed. 9/ 12 /2018 @ 5 :01 p.m. at Dania Beach City Hall • Fire - Rescue Assessment (no change) $ 223 . 75 yr. (provides appx same revenue as last year; 69% of fire protection costs) • Stormwater Assessment ono change) $ 40 . 00 yr. • Residential Solid Waste (adj. of $9.96yr.) $ 3 5 8 . 44 yr. F inancial Status (cont ' d ) •:- City Tax Base - significant improvement- aided by investments in City neighborhoods , beach & gateway appearance , infrastructure and economic development & redevelopment Tax Base bv Classificatio 2017 2018 ► Residential 50. 7% 51 . 2% ► Hotels 7. 9% 8. 2% Commercial 23 . 9% 23 .0% Industrial 15 . 9% 15 . 9% Other 1 .6% 1 .6% ti` . Financial Status ( cont ' d ) 4.t+ City Tax Base (cont ' d ) Averaqe Side Famil indudin_g_ �andQs� Market Value Assessed Value ► 2014 $ 1747144 $ 137 , 590 ► 2015 $ 189 , 208 8.6% $ 1451579 5 .8% � 2016 $ 21 OY484 11 .2% $ 154 , 607 6. 2% ► 2017 $ 224 , 686 6. 7% $ 1667418 7.6% ► 2018 $ 245 ,457 9.2% $ 177, 553 6.6% Approximately 38% of all city properties are homesteaded er remaining 62% are non-homestead , commercial, industrial budget Focus *:• SUStdlt"1dblllty — staffing levels , benefits , debt service , contract costs *.** Infrastructure — completion and maintenance of planned & funded Capital Projects �- Stormwater runoff infrastructure %- Water & Sewer system repairs & replacements Beach Area improvements • Phase I . . . completed • Phase II . . . annual funding -$ 1 , 172,675 accumulated from Parking r Roadway repaving , sidewalk improvement, bus shelters, alleyway improvements o:=Appearance - $ 200K Funding for Oasis project to be identified Parks & Roadway landscape general maintenance budget Focus ( cont ' d ) *:* Pu bl ic Safety - );P-, Additional Public Safety Personnel Working to establish sustainable BSO contract for Fire Rescue service costs �e- Expand neighborhood street lighting systems through grant funding ➢ Continued annual City funding for legacy Police & Fire Pension plan Pension Plans Police Pension Plan $ 780K (increase of $66/C) S3.3M Unfunded Liability S2.9M 55.8 o Funded 59. 6 0 Fire Pension Plan $ 5 . 46M (decrease of $57K) 523.5M Unfunded Liability $19.4M 63.So Funded 77.00 7 8 Active, 62 Retiree/Drop, 7 0 Disability (Combined Police & Fire) General Pension Plan $ 1 . 79M (increase of 29K) $6.86M Unfunded Liability $6.22 74.89,o Funded 77. 60 79 Active, 73 Retiree/Drop, 0 Disability Florida Retirement System $ 801 K (increase of 704K) 860 of employees covered by FRS (7 77 FRS Employees) $29.6B City's Share (S4.3M) 83.2%Funded 83.90 OPEB (Post- retirement) Health Care Liability (FY79 $275K) $72.7M Unfunded Liability =+ $74.3M Separate cost from pension and separate annual funding - restart funding in FY79 Pension Plans Three Basic Guidelines r Retirement Cost should be recognized during working years Total Pension Liability - this is an estimate Impacted by both actuarial & management estimates, pension investments, economy r Elective bodies now choose how & when to provide funding Funding for FY 2018/2019 r Propose budget provides for continued funding annual pensions requirements from operating - $9. 1 M Funded as dollar amount or percentage of pay. Proposed budget provides for establishing a pension reserve. Reserves are recommend to be equal to 25% of annual required contributions (1 quarterly payment). Estimated reserve should be $ 2 .275M. Commission Approved $ 1 M FY 2017. Reserves being allocated to Pension Reserves in FY 18/ 19 = $ 1 M General F What ' s Included .? Ll No x crease to operating property tax rate Li Use of $200k und,62.51gnated hind balance for Grapple Truck Public Safety Contract Cost $ 2 6. 2 M — Police services $ 13. 1 M to $ 1 3.9M -6.7% — Fire Rescue services $ 1 1 AM to $ 1 2.3M -7.4% INCLUDES One (1 ) New SRO Deputy $ 1 58K Two (2) New Fire Safety Officers (approved at mid-year) $ 303K One (1 ) New Fire Chief $ 225K City Manager/City Commission New Oasis Project $ 200K � Commission Contingency $ 1 08K Aids to Private Organizations $ 35K Chris Hixon Foundation Scholarship $ 5K Chamber Funding (Increase $ 35K to $40K) $ 5K General Fund What ' s Included ? Parks & Recreation ► 2 Transport Vans $ 70K ► 3 F- 1 50 ' s $ 84K ► 1 Wave Runner $ 14K Dania Beach Seniors $ 2 5 K Gracefully Aging $ 25K ► MLK Funding $ 1 5K ► Athletic Program Funds (Football, Baseball, Soccer, Etc.) $ 100K ► Community Bus-West Route (Requires County ILA) $ l OOK General What ' s Public Services Construction Maint. Division Solar Light Maintenance $ 70K Public Services Streets Division ► Roadway Repaving $ 325K Alleyway Repaving $ 70K Sidewalks (Citywide & 50/50) $ 1 1 5K Misc. Asphalt/Pothole/Bridge Repair $ 115 K Bus Shelter & Bus Bench Maintenance Contract (Approved Mid Year) Solar Lighting CDBG $ 141 K Public Services Fleet Division Two (2) F-250 (Streets Division) $ 60K One (1 ) Mack Dump Grapple Truck(Streets Division) $202K Three (3) F-250 (Parks & Grounds Division) $ 90K Funded Position RequestsO 0 New Positions) All Funds Est. $743K Recreation Recreation Assistant - PT (To Aid Athletic Director - Gen Fund) $ 2 0 K 2 PT Park Rangers (Requested by Commission - Gen Fund) $ 6 7 K Public Services Project Associate Engineer (25% Gen/25% WA/25% SW/25%STW) $ 1 24K Y Regulatory Compliance Officer (20%WA/40%SW/40%STW) $ 1 06K r Treatment Plant Operator B (Water) $ 90K Utilities Mechanic II (Sewer) $ 83K Utilities Maintenance Worker II (Stormwater) $ 72K Maintenance Worker I to Facilities Maintenance Technician (Paygrade 16 to Paygrade 22: estimated Cost includes bel7efits) $ 1 6 K Community Development Permit Office Supervisor (Building) $ 98K Administrative Specialist 1 (50% Gen/50% Bldg) $ 67K 'A/l costs are estimates inclusive of,benefits Position Title Change Requests (2 Positions) A► ll Funds Community Development Code Compliance Manager to Code Compliance & Parking Manager (Paygrade 30 to Paygrade 32; No fiscal impact; Title change to reflect duties) Lead Code Compliance Inspector to Lead Code Compliance & Parking Supervisor (Title change only to reflect duties) General Fund What ' s Not Included ? r BSO - Relocation to City Hall $ 500,000 Y City Hall Security Metal Detector & Guard $ 437000 BSO Radio Program (to be phased-in) $ 885 ,000 r Recreation Master Plan Improvements unknown Comp & Class Implementation unknown r NEW EOC Building unknown r City Hall Renovations unknown BSO Substation 803 Bldg Full-time Staffing unknown BSO Marine Officer $ 1 75 ,000 r BSO Sergeant $ 1 75 ,000 BSO Deputy $ 1 58,000 IT Parker Office Renovations unknown r Traffic Calming w/ MPO and DOT unknown Beach & Pier Lighting unknown Solar Traffic Lights $ 50,000 ea. 'BALL COSTS ARE EST/MA TES ONL Y Unfunded Position Requests (8 Positions) All Funds Est. $723K Community Development Code Compliance Officer (Gen Fund) $ 88K >- Chief Fire Safety Officer (Gen Fund) $ 84K Asst. Comm . Dev. Director (50% Gen/25% Bldg./25`/` Parking) $ 1 3 1 K Public Services Parks & Ground Technician (Gen Fund) $ 72K Beach Manager (50% Gen/50% Parking) $ 1 08K Admin . As - PS (45% Gen/30% Water/1 5% Sewer/] 0% STW) $ 78K Utilities Mechanic II (Sewer) $ 82K Treatment Plant Operator A (water) $ 80K ;'-;Afl costs are estimates inclusive of benefits 0 11100111110M.-oftwomm., Enterprise Wate r No rate change since 20 71 Existing - Waterline NW1 st Avenue Waterline FY 18 $ 74K ➢ Existing - Watermain NW 1st street (Stirling to city Hall) FY 18 $432K ➢ Existing - Melaleuca Watermain Replacement FY 18 $ 250K ➢ Funding provided for Water Plant - Lime Slaker FY 19 $ 235K ➢ Water Distribution Improvements FY 19 $ 160K ➢ John Deere Backhoe (25% of Total cost$] 32K) FY 19 $ 33K ➢ Security - Approved at Mid Year FY 19 $ 101 K ➢ Water Resource Issues & CS Reservoir ➢ Rate Study in Progress for future consideration a"4 Enterprimse Sewe r No rate change since 207 v Working to complete SCADA System FY 17 $ 500K Working to Complete Lift Station Rehab FY 18 $ 1 . 1 37M Sewer Pump Replacements (Pumps 3 & 4) FY 19 $ 120K y Sewer Distribution Improvements FY 19 $ 305K y John Deere Backhoe (25% of Total cost$ 132K) FY 19 $ 33K Rate Study in Progress for future consideration Enterprise Stormwater No rate change SE improvements Phase II -SRF Loan Pre FY 18 MOM SW area & Taylor Lane -Pre FY 18 $61 SK Stormwater Improvements (sw 43rd Ter, 40th ct., 49th St) FY 18 $ 1 .2M y Citywide Small Drainage Improvements FY 19 $ 1 20K y John Deere Backhoe (25% ofTotal cost$ 132K) FY 19 $ 33K Enterprise F Parking $ 200K surplus to support Beach Improvements (Rev. slight decline 2%) Small/Mid Size SUV $ 28K Includes Expanded Security Hours Approved Mid Year $ 77K Pier Westrec Management y Self supporting pier operation (little/ no reserve) r Surplus to be used for Pier L/Term maintenance (rev. up 4%) y Beach Restaurant & Pier Rehabilitation $275K FY 19 - Funded through Restaurant Rental Revenues Beach Continues improvements to appearance Phase I complete r Phase II - Funding level currently $ 1 , 1 72 ,675 - Electrical Relocations & Lifeguard Bathroom Renovations Marina - Westrec Management Self supporting marina operation - including annual loan repayment v Occupancy and slip rental revenues continue to be steady; demand remains solid Slip rental rates to increase October 1 st appx $25 mo. to stay in line with market conditions and comply with debt and grant provisions.