City Commission Regular Meeting

APPROVED:3f15/2018 City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis, FL 32727-0068 Meeting Minutes - Final* City Commission Workshop Thursday, February 22, 2018 6:00PM City Hall CALL TO ORDER: Mayor Morin - 6:00 p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 3- Linda Bob; Marie Aliberti ; and Robert Morin Absent: 2- Anthony Sabatini ; and Carla Gnann-Thompsen I. Workshop Item 18-0061 Budget Planning Workshop for Fiscal Year 2018-19 Mayor Morin announced the purpose of the workshop was to see if there are any priorities that the Commission would like to see added to the next years budget. He cited a number of programs that the Commission had previously discussed. Commissioner Bob commented on how the budgets have been prepared in the past and the presentations that were provided by the department heads. Vice Mayor Aliberti agreed on the need to have a better view of where the funds are expended. Ron Neibert, City Manager, explained that staff prepares the budget based on the goals and objectives set by the Commission. He explained how the budget is developed following submittal of departmental requests. He then stated that Assistant Finance Director Rob Visser would provide an overview of the current budget. Commissioner Bob noted that when she came on the Commission she went around and visited all of the departments to Jeam about them and their needs. She recommended that Commissioners do that during the budget preparation process. Rob Visser, Deputy Finance Director, reviewed the current year budget by department and fund. He presented an overview of the various revenue funds, explained how each fund legally may be used and where the revenues come from. He then provided a budget summary for the FY17-18 General Fund by department including an explanation of what each department is responsible for He then reviewed the FY17-18 Water and Sewer Funds, Street Improvement Fund, Stormwater Fund, and CRA Fund with discussion about the limited ability to transfer funds from the Water/Sewer Funds to the General Fund. He highlighted the funding for the FY18-22 Capita/Improvement Plan and a breakdown of the planned CJP projects. He reported on the anticipated cost increases for the FY18-19 budget cycle including the following: 1) 2% cost of living salary adjustment; 2) 5% health insurance increase; 3) To be determined percentage of Police and Fire Pensions; and 4) 10% general liability/workers compensation and property insurance increase. Mr Neibert explained all but the pension fund increases would be spread equally across all departments. City of Eustis, Florida Page 1 Printed on 31912018 City Commission Workshop Meeting Minutes - Final February 22, 2018 II. Commission Discussion The Commission questioned the statement that the pay ranges had not been adjusted in ten years stating that the City has provided some adjustments. Bill Howe, Human Resources Director, explained that in 2015 the Commission directed staff to work on getting the City's salanes within the top 25% compared to other cities. He stated that employees have received cost of living increases but the pay ranges have not been adjusted. He explained that the City worked on the internal equity first due to the number of existing employees that were not being paid as much as new hires. He noted that in the past few years the City's raises have not kept paced with the other local cities. He explained that in ten years the pay ranges haven't been increased and the starting pays have not been changed. The Commission discussed vanous salary and related revenue issues including the following: 1) The number of employees that qualify for assistance services; 2) The recent internal equity study and resulting salary adjustments; 3) The difficulty in hinng new employees willing to work for the City's salary levels; 4) Hinng contract employees for building inspection services; 5) The City cemetery and related personnel costs; 6) The possibility of selling the cemetery or increasing cemetery fees; 7) Staff prepanng a report to compare area pnvate and public cemetery fees; B) How much Jess the City pays in companson to other cities; 9) staff prepanng the external pay study; 10) Police Department sa/anes in companson with other cities; 11) The effect on the City from the Keating lawsuit and the City's resulting reputation for being anti-growth; 12) The possibility of increasing the cost of living increases and raising the millage rate to fund the increases; 13) Other ways of increasing revenues to fund raises including the addition of a fire assessment fee; and 14) There being no way to raise funds through the General Fund to pay for raises except by cutting personnel. It was noted that there was no way to cut personnel without reducing services. The Commission requested that a report be compiled showing possible salary increase levels and what level millage rate would be required to fund those levels. It was noted that there would be an additional homestead exemption on the November ballot and the City would have to address how to cover the resulting Joss in revenue. The Commission then asked about the street Improvement Fund, commented on the state of the streets within the City and the cost of the Lakeview Street project with Mr. Neibert explaining that the Lakeview Street project includes water and sewer improvements not just street. Rick Gierok, Public Works Director, explained that the street Improvement Fund does not pay for the street paving, that is paid for through the Sales Tax Fund. He explained that the City in the past had a company come in and do a Pavement Condition Index (PC/) to assess all of the City's roads and pnontize them. He indicated that the City has made substantive progress on that list in the past five years. He noted the City purchased its own paver so a lot is being done in-house at a reduced cost. He explained staff is updating its PC/ report and could have a report in the next few weeks. He commented on the amounts funded for improvements in the past five years and explained one of the problems with the Lakeview project is that the under-road is poured concrete and it is costing a Jot to get that removed. He indicated that, unless the City does a bond, they will not be able to get everything done at one time. He recommended giving him time to update the PC/ - Pavement Condition Index - and then he could provide a report on the City's street condition. The Commission discussed providing a Jot of publicity on what the City intends to accomplish in the next budget year and holding neighborhood forums to provide information about what streets would be done and when. Mr. Gierok explained that having the PC/ eliminates the arguments and shows how the City determines which streets to do and when. Mr. Neibert commented on the possibility of issuing a bond to do the roads. City of Eustis, Florida Page2 Printed on 31912018 City Commission Workshop Meeting Minutes - Final February 22, 2018 Mr. Gierok noted the majority of the Lakeview project is being funded through Water/Sewer Fund due to it being primarily a utility project. He explained that the Street Improvement Fund is used for street lighting, right-of-way maintenance and potholes. Mr. Gierok then reported on the progress with updating the streetlights to LED. He indicated it was initially held up by the hunicane. He stated that all of the new lights have been installed and they are now in the process of changing out the sodium lights with LED. He stated that the new completion date with Duke Energy is April 2nd. Mayor Morin requested information about the Magnolia/Bay intersection so he can approach the MPO to get assistance to abate the traffic problems through that area. Commissioner Bob asked Chief Calhoun about crime levels in City She requested reports to determine what is going on and what the City can do to address those issues. Mayor Morin stated his desire to see a rehab program for neighborhoods. He asked about revenues with Mr. Visser explaining that staff is still working on compiling those figures. He indicated they can probably expect a 1. 5% overall increase. Mr. Neibert stated Gas Tax revenues may increase if the County referendum passes. He explained the previous change in the formula by the County which significantly reduced funding to Eustis and Leesburg. He stated the City should see some increase if the referendum passes. He added that another issue with the ISBA was the other cities are being allowed to grow and getting more miles of roads which allows them to outpace Eustis even more. Mayor Morin asked about the anticipated increase in General Fund revenues for next year. Mr. Visser explained there are different sales tax revenues. He explained that the gas tax has been declining probably due to electric vehicles. He stated there would be an automatic 1. 7% increase in Water and Sewer. He added that staff is anticipating an overall 2% growth in revenues. Mr. Neibert confirmed that the ad valorem increase is expected to be about 3%. Mr. Visser stated staff would have better revenue estimates for the workshop in earty April. Mayor Morin commented on recreation fees and cited the possibility of the City paying for scholarships for children at the pool and splash pad. Mr. Neibert responded that he would have the Parks & Recreation Director send out a report on recreation fees and program expenses. He stated the City has a scholarship program and noted a recent meeting with an organization that provides scholarship money for swim lessons. He explained how the City raises funds for scholarships through fund raisers. Joe LaPolla, Parks & Recreation Director, reported there is approximately $6,000 to $8,000 currently in the scholarship fund. Discussion was held regarding the cost of using the pool and the possibility of expanding the scholarship program to cover pool season passes. Commissioner Bob asked to hear about how the scholarship program is administered with Mr. Neibert explaining that if a family qualifies then every child in the family receives a scholarship. Mr. LaPolla explained that all of the city recreation departments get together to make sure their scholarship programs are similar. Mr. Neibert then reported that the Library Director has eliminated rental fees for DVD's. He explained that giving up a small amount of rental fees enabled the City to get $10,000 from the state library. City of Eustis, Florida Page3 Printed on 31912018 City Commission Workshop Meeting Minutes - Final February 22, 2018 Mr. LaPolla reported on the recent 5K run to help raise funds for the scholarship program. He stated they have provided over $10,000 in scholarships over the life of the program. He added that 15 to 20% of the children in the summer program were on scholarship. III. Public Input- None IV. Commission Direction No further direction was provided at that time. V. Adjournment- 7:37 p.m. ~~~ROBERT R. MORIN, JR. City Clerk Mayor/Commissioner *These minutes reflect the actions taken and portions of the discussion during the meeting. To review the entire discussion concerning any agenda item, go to www.eustis.org and click on the video for the meeting in question. A DVD of the entire meeting or CD of the entire audio recording or verbatim transcript of the meeting can be obtained from the office of the City Clerk for a fee . City of Eustis, Florida Page4 Printed on 31912018