City Commission Workshop Meeting

APPROVED: 4/16/2015 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, April 9, 2015 5:30PM City Hall CALL TO ORDER: Mayor Eckian- 5:31p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 5 - Karen LeHeup-Smith; Linda Bob; Bill Brett; Michael Holland; and Albert Eckian I. Presentation of Workshop Item and Commission Discussion 15071 Budget Preparation Workshop Dianne Kramer, Acting City Manager, explained the purpose of the workshop was to obtain direction from the Commission to assist with preparation of the draft budget for FY20 15-16. She began with a discussion on the 2013-14 Strategic Plan noting that it had not been updated recently. She commented that it should be one of the guiding documents in preparing the budget. She reviewed the goals and her recommended changes to the action items under each goal. The Commission noted there was an error in how the redlined area of the strategic plan appeared on their computers. It was suggested that there be fewer action items under each goal but with more specific targets to allow more accountability. It was also noted that some of the previously identified strategic parcels are not viable for development due to soil conditions that were not previously identified. Staff made copies with the redlining for the Commission with Ms. Kramer continuing her review of the revisions. She recommended that the Commission hold a workshop on the strategic plan after the new city manager begins. Ms. Kramer reviewed the financial policies noting that the Commission had previously set a maximum of 96% of anticipated ad valorem revenues for budgetary purposes. She noted the City has been collecting well above 96% over the past five years. She stated that is one of the reasons there is sometimes a surplus at the end of the fiscal year. The Commission suggested that the City could use a five-year average of collections for budgetary purposes with Ms. Kramer indicating she would revise the wording but that it would be worded to show that, regardless of the average, the amount utilized could never be more than 100%. Ms. Kramer then asked the Commission about Item #5, page 7, which stipulates the target millage rate to be used for budget preparation will be the roll-back rate. The Commission discussed the millage rate with a consensus to include wording to show that the Commission may allow the budget preparation to utilize rates other than the roll-back rate. Ms. Kramer then asked about Items #7 and #8 pertaining to water and sewer rates and the eastern water/sewer system. She asked if they wanted to retain the requirement under for an annual report on the eastern system with a consensus of the Commission for staff to resume providing that report. It was also agreed that the annual adjustment in water and sewer rates based on the Municipal Cost Index would be amended to reflect the City's actual practice of conducting periodic rate studies. Ms. Kramer then commented on paragraph E, page 8, regarding budget adjustments and recommended that Department Directors be given authority to make budget adjustments within their own budget other than for position vacancies. City of Eustis, Florida Page 1 Printed on 411012015 City Commission Workshop Meeting Minutes - Final April 9, 2015 The Commission discussed intradepartmental transfers being under the authority of the department directors with the possibility of having a dollar cap. Ms. Kramer noted that the budgetary objective matrix would need to be revised to coincide with the other changes. She recommended that the budgeted reserve be eliminated from the CRA Fund due to that fund being used primarily for appropriate capital expenses. She asked if the Commission wanted anything added to the policies. The Commission requested that the revised document be brought back to the Commission as an "other business" item before it is brought back for adoption. Colleen Scott, Finance Director, reviewed the estimated ad valorem revenues for FY2016. She explained how they reached the estimated revenue projections. Ms. Kramer noted that the previous year the City's increase in revenues was 3.88%. She reported that staff is currently working on the mid-year budget adjustment. The Commission discussed the possibility of retaining the current millage rate due to the needs in the City particularly road improvements. It was a consensus of the Commission for staff to utilize the current millage rate for budgeting purposes. Ms. Kramer reviewed possible priorities for the next budget year. She provided a review of the FY2015-16 merit increase estimates. She recommended a 4% increase for non-exempt staff and a 2% increase for exempt staff. She explained how the merit increases were awarded for FY2014-15 noting that only employees that received "meets expectations" on their annual evaluation received an increase . The Commission asked how close the City has come to the 75th percentile in comparison to surrounding cities. Ann Isaacs, Human Resources, stated that it would require an 8 to 9% increase in order to move the pay plan into the upper quartile. The Commission discussed the cost to provide a 3% merit increase for the exempt employees and the benefit to providing good sa/aries to retain those employees. It was a consensus of the Commission for the Finance Director and Acting City Manager to work toward the 4% increase for non-exempt and 3% for exempt. The Commission discussed the possibility of increasing the Commission sa/aries and the difficulty in getting qualified people to run for office. Ms. Kramer indicated she would provide additional information regarding surrounding cities and their governing bodies and suggested that, instead of raising the salary, they could provide some additional benefits such as travel compensation. She then commented on the Commission's desire to include road improvements. She stated that, in the event the penny sales tax is renewed, the roads are the most likely project to get bond money. She stated the need for a Deputy Fire Chief due to the additional fire station with an estimated cost of $93,000 including salary and benefits. The Commission asked about a Deputy Police Chief with Ms. Kramer explaining that they had been discussing doing a reorganization of the department with the hiring of the new Police Chief. Ms. Kramer then reviewed the following proposed items for the draft budget: 1) an increase in health insurance with an estimated increase of $60,000; 2) an estimated increase in pension costs of $50,000; and 3) an additional Recreation Specialist at a cost of $40,000. The Commission discussed adding a 112-time high tech. programming assistant for citizens or a tech. center. It was noted that the new elementary school will be very high tech and that the City could ask the .school Board to allow the use of their computer labs for an adult program of some type . City of Eustis, Florida Page2 Printed on 411012015 City Commission Workshop Meeting Minutes - Final April 9, 2015 Ms. Kramer continued with proposed items as follows: 1) subscriptions for new website software; and 2) additional tree services. She asked if the Commission had any additional concerns. The Commission asked about the state of the pool with Parks and Recreation Director Joe LaPolla reporting that it would be opening on Monday, April 13th. Ms. Kramer commented that all of the departments are still stretched and working to do as much as they can with what they have. She stated she has encouraged the departments to make sure the new City Manager is aware of what has been accomplished in trimming down the departments. The Commission asked about the workability of the new computer system with Ms. Scott reporting on the status. Ms. Kramer then presented a draft organization and event support grant policy. The Commission questioned the organization criteria that it must "provide a service that improves the quality of life for a majority of the citizens of Eustis". It was a consensus to remove the word "majority". Ms . Kramer explained her reasoning for that requirement. She reviewed those items and organizations that are ineligible. She stated that the plan is to distribute the information beginning May 1st with a deadline of May 29, 2015. She noted they would also be required to specify any desired "in-kind" services so they can be accounted for financially. She indicated the Commission may want to wait to determine the amount to allocate until they see the applications received. The Commission discussed whether or not to provide a "placeholder" amount with a consensus to include $30,000 for grants. II. Public Input Mayor Eckian opened the floor to public comment at 7:08p .m. No one came forward. III. Commission Direction Ms. Kramer reminded the Commission that increases for Police and Fire must be handled through the union negotiations. It was a consensus of the Commission for staff to proceed with the budget preparation as discussed. Mayor Eckian reminded everyone that there would be a regular Commission meeting on Thursday, Apri/16, 2015, and the Capita/Improvement Plan workshop would be following the May 7, 2015 Commission meeting. IV. Adjournment-7:10p.m. ALBERT G. ECKIAN 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 Page3 Printed on 411012015