City Commission Workshop Meeting

APPROVED: 8/3/2014 City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis, FL 32727-0068 Meeting Minutes - Final* City Commission Workshop Monday, July 14, 2014 5:15PM City Hall CALL TO ORDER: Mayor Bob ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE I. Workshop Item 14161 FY 2014-2015 Budget Workshop Jim Myers, Finance Director, reviewed the recommended budget for FY2014-15 as follows: All Funds- Beginning Fund Balance- $37,891,851; Revenues- $32,431, 128; Expenditures- $36, 144,478 with an Ending Fund Balance of $34, 178,504. He provided a breakdown of the sources of the City revenues and the expenditures by purpose. He then reviewed the total City Reserves by Fund Type. He provided an overview of the General Fund including Beginning Fund Balance- $6, 153,543, Revenues- $14,126,545, Expenditures- $14,718, 169, Required 90 Day Reserves- $3,496,748 and Ending Fund Balance of $1,032,434. He explained it does not include the Debt Reserve of $1,032,434. He then explained the General Fund revenue sources and expenditures and reviewed the recurring revenues and expenditures, required reserves and the difference between the actual and required reserves for the General Fund, Street Improvement Fund, Water & Sewer Fund and Stormwater Fund. Mr. Myers provided a breakdown of the Street Improvement Fund revenues and the CRA Fund including TIF payments, projects for FY2014-15, and current year projects. He reviewed the Capital Improvement Plan for FY2014-15 noting there are 51 budgeted projects totaling $6,059,349. He then explained the challenges in preparing the FY20 14-15 budget including the following: 1) pension cost increases for police and fire; 2) new fire substation costs including one additional firefighter and operating costs; 3) additional economic development expenditures; and 4) potential increases in insurance. He stated there is nothing in the recommended budget for additional employee compensation. He provided a review of the cost for pay adjustments for each fund at 1%. He then provided a comparison ofthe reserves from FY2008-09 through FY2014-15. Mr. Myers then explained the possible alternatives for setting the millage rate including the amount of revenue each would generate. He also provided an explanation of the amount of taxes levied on a property valued at $150,000 under the current millage, roll-back rate and maximum rate that could be levied. Mr. Myers then stated that the direction needed from the Commission included the following: 1) millage rate considerations; 2) continuance of the market pay and merit adjustment and at what rate; and 3) any other Commission considerations not mentioned. Dianne Kramer, Acting City Manager, noted that the transfer from the Water/Sewer Fund was increased. She added that the vacant positions are currently budgeted as a credit under one-time expenditures but that it is actually a credit to the recurring expenditures. Regarding the Street Improvement Fund, she stated that transfers from the other funds could be increased and one area that could be outsourced is tree services. City of Eustis, Florida Page 1 Printed on 711612014 City Commission Workshop Meeting Minutes - Final July 14, 2014 II. Commission Discussion The Commission discussed the following budget considerations: 1) possibly reducing the budget slightly so that the millage rate could be correspondingly reduced; 2) leaving the millage at the current rate; 3) increasing the millage rate to 7. 6264 in order to prevent any reductions in services; 4) temporarily increasing the interfund transfer to $250,000 rather than increasing the millage rate; 5) the possible effect on the City if the Spring Protection Act is passed; 6) anticipated costs for upcoming major capital improvements for the utilities; 7) including a statement in the budget that the level of transfers would be re-evaluated each year; 8) the cost of borrowing to undertake future projects; 9) a comparison of millage rates within the County and the millage rate's effect on property values; 10) continuing with the employee pay adjustment plan but not through a millage increase; 11) evaluating any new positions; 12) evaluating the facility rental revenue versus the personnel and operating costs for those facilities; and 13) the cost for new positions in addition to the salary. The Commission discussed the rental facilities, the cost for custodial services and the need to ensure that users clean the facilities after use, and the possibility of charging higher deposits and not returning them if the facilities are not properly cleaned in order to reduce personnel costs. Discussion was also held on whether or not the rental of the facilities is well advertised. The Commission discussed the Commission Departmental Budget including Promotional Activities, Travel & Per Diem, and Books, Publications & Subscriptions. CONSENSUS: It was a consensus of the Commission for the budgeted amounts for line item #3040, #3048 and #3054 to be reduced if possible. The Commission cited the large increases in pension costs and the decrease in gas tax revenues and asked if it would be worthwhile for Ms. Kramer to meet with other managers and the County Commissioners to try and get a different formula enacted for the 3rd and 4th cent of the gas tax. The Commission discussed how long it may take for the cities to recover the taxable property values particularly in light of the 3% cap. They also discussed the need to maximize the amount of property on the City's tax rolls. The Commission discussed the increase in electric rates from Duke Energy, how one of the Lake County departments was able to reduce its cost for gasoline, the number of police patrol vehicles to be purchased, budgeting for personnel to attend annual conferences or meetings, whether or not the City should take over some of the tasks for George fest such as the entertainment and fire works, the possibility of expanding the number of City events, and the amount of funding in the CRA budget for additional improvements to Palmetto Plaza and the lack of use of the area. III. Public Input- None IV. Commission Direction Ms. Kramer asked the Commissioners to inform her if they have other specific items they want her to look at. The Commission discussed proposed funding for The Open Door with the preference being suggested that funding should be for agencies that provide a service to the City. Ms. Kramer asked for confirmation from the Commission to proceed with the employee pay plan as long as the recurring revenues and expenditures are still balanced. Discussion was held regarding a 1.5% increase to address the pay scale adjustments and merit increases to range from 0 to 4%. CONSENSUS: It was a consensus of the Commission for the Acting City Manager to proceed with the pay plan adjustments as discussed. City of Eustis, Florida Pagel Printed on 7/ 1612014 City Commission Workshop Meeting Minutes - Final July 14, 2014 CONSENSUS: It was a consensus of the Commission to keep the millage rate at the current rate for the FY14-15 budget year. Ms. Kramer asked the Commission to confirm tentative dates for the review of the City Manager applications and interviews with finalists. CONSENSUS: It was a consensus of the Commission to schedule August 5th at 4:00p.m. for the review of the applications with interviews tentatively to be held either Tuesday, September 16th or Tuesday, September 23rd with the understanding that the interviews would be held throughout the day. V. Adjournment C ity C lerk Mayor/Commiss ioner *These minutes reflect the actions taken and portions of the discussion during the meeting. To review the ent1re discussion concemmg 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 verbat 1m transcript of the meetmg can be obtamed from the ollice of the City Clerk for a fee. City of Eustis, Florida Page3 Printed on 711612014