City Commission Workshop Meeting

APPROVED: 8/6/2015 City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis, FL 32727-0068 Meeting Minutes - Final* City Commission Workshop Monday, July 13, 2015 5:45PM City Hall CALL TO ORDER: Mayor Holland - 5:53 p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 4- Karen LeHeup-Smith; Linda Bob; Bill Brett; and Michael Holland I. Workshop Item #1 15156 FY 2015-2016 Budget Workshop Colleen Scott, Finance Director, thanked the directors and staff for their work on the budget. She explained the difference between public and private budgets. She provided a general overview of the budget process and timeline. She explained the budget methodology and noted that the proposed budget now ties with the CAFR (Comprehensive Annual Financial Report). She explained that the budget is based on a 7.5810 millage rate with a collection rate of 98%. She commented on the change in the Local Option Gas Tax formula. She reviewed the following significant factors: 1) Revise collection level forecasts for property taxes to 98%; 2) Police pension cost increase from 39.64% to 45.36% for an additional cost of $160,000; and 3) Market pay/merit increase costs totally approximately $394,285. She reviewed the proposed merit increase and the costs per fund. She then stated the Beginning Fund Balance, Revenues and Expenditures with an Ending Fund Balance of $3,375,089. She reviewed the various revenue sources totaling $34,861,418 and expenditures totaling $38,061,352. She provided an overview of the General Fund including revenue sources and expenditures. She explained that a balanced budget balances the recurring operating revenues, expenses and reserves. She reviewed those for the four major funds - general, street improvement, water & sewer and stormwater. Ms. Scott then reviewed the Community Redevelopment proposed budget and planned projects. She provided an overview of the Capita/Improvement Plan with 56 projects planned for FY15-16 totaling $6,978,300. She stated that the proposed millage is the same as the current millage rate of 7.5810. She explained the estimated effect on a $150,000 home. She noted that only ifsomeone's property valuation increased would they experience an increase in tax. Ms. Scott then cited future challenges including the fire pension actuarial review scheduled for FY2016-17, increasing insurance costs, renewal of the penny sales tax and offering competitive employee compensation. She noted adjustments that need to be made to the draft budget as follows: 1) Add $10,000 to Library for shelving; 2) The fire station remodeling needs to be moved from the Fire Impact Fees to the Sales Tax Fund; 3) The street improvement fund contingency and interfund transfer were reduced but the net budget will remain the same; and 4) The FTE's for Finance, Fire, Recreation and Library need to be updated. Ms. Scott reviewed the next steps in the budget process as follows: 1) Direct staff regarding the millage rate with a meeting scheduled for Thursday, June 16th; 2) Provide guidance to staff regarding the market pay and merit adjustments; 3) Any other Commission considerations not mentioned; and 4) Any approved grant funding. Ron Neibert, City Manager, expressed support for the budget as proposed noting that staff did not have to make any adjustments to the previously approved capital projects. City of Eustis, Florida Page 1 Printed on 713112015 City Commission Workshop Meeting Minutes - Final July 13, 2015 II. Commission Discussion - Item #1 The Commission asked about possible grant funding with Mr. Neibert responding that he has met with staff and they are proceeding with grant applications through FRDAP and CDBG programs. He assured the Commission that staff will be seeking other grant funding possibilities. The Commission confirmed the department heads were involved with developing the departmental budgets. They asked if there were any major cuts in funding. Ms. Scott responded that the department heads kept all of their requests very basic; however, there were some requested additional staffing that was cut. Mr. Neibert explained that the initial draft budget was $900,000 out of balance. He further explained they were able to bring the budget into balance primarily through reallocating expenditures into more appropriate funds. III. Public Input Mayor Holland opened floor to public comment at 6:16p.m. Dianne Kramer, Development Services Director, asked for an explanation of merit increases. She stated what is in the draft budget is not what was previously discussed and explained it was previously decided to provide 4% to the non-exempt employees with a requirement that only those employees who "meet expectations" on their evaluations receive the increase. She stated this was due to the non-exempt positions being where the pay scales need the most adjusting. She stated that the increases for the exempt positions would be based entirely on merit with those receiving higher scores getting a higher increase and anyone not meeting expectations not getting any increase. CONSENSUS: It was a consensus of the Commission to retain the pay increases as previously discussed with a 4% possible increase for non-exempt employees and 3% for exempt. IV. Commission Direction - Item #1 Acting Mayor Holland noted the tentative millage rate would be set Thursday night and encouraged the Commission to contact the City Manager or Ms. Scott prior to Thursday with any questions. RECESS: 6:21p.m. RECONVENED: 6:31p.m. V. Workshop Item #2 15145 Organizational Support Grants Dianne Kramer, Development Services Director, explained there is $30,000 in the budget for organizational support grants with a separate $20,000 for Georgefest. She noted the application also required a detail of what in kind requests would be needed. She cited the list of proposed funding amounts based on staffs review of the applications. VI. Commission Discussion - Item #2 The Commission asked about the funding for the Lake Eustis Area Chamber of Chamber with Ms. Kramer explaining the separate funding for Georgefest and Economic Development funding for the Awards Gala and Taste of Golden Triangle. VII. Public Input Mayor Holland opened floor to public and organization comments at 6:34p.m. Susan Hooper, President of the Eustis Historic Museum, and Trustee Jim Rotella spoke on behalf of the Museum citing the need for additional staff and for the contents to be catalogued. City of Eustis, Florida Page2 Printed on 713112015 City Commission Workshop Meeting Minutes - Final July 13, 2015 Tim Totten, Amazing Race for Charity, commented on their partnerships with local businesses, their past donations to local organizations from the race proceeds and the 30% attendance increase from one year to the next. B. E. Thompson, Lifestream, noted they are the 501c3 for the Amazing Race and also stated he was present to answer questions regarding the Open Door facility and the Early Learning Coalition. Corrine Hill, Eustis High School Band Boosters Assoc., explained the funding for the band. She noted that the venue for the Jazz Revue is going to charge them $1500. She explained that the proceeds are also split with the middle school. She cited other expenditures and stated they must raise approximately $35,000 for the next school year. The following people spoke on behalf of the Bay Street Players - Nina Bodder, Mike Scarangela, and Robin Mathias. They cited the theater's contributions to the downtown area and the overall community. They explained how the theater supports other area organizations including the Little League and Saint Luke's Free Clinic and explained the need for funding for remodeling of the theater. Joan Bryant and Eileen Tramontana, Trout Lake Nature Center, commented on the number of visitors to the Center and benefits to the community. Jeff Freeburg, Lake County Folk Festival, asked about the allocation for police and public works and noted their previous year's invoice for police and fire in the amount of $700. He commented on the benefit to the downtown from the event. VIII. Commission Direction - Item #2 The Commission asked about the $1250 set aside for police and public works reimbursement with Ms. Kramer explaining that is simply to underwrite some of the costs to those departments. The recommendations in the matrix include the inkind requests. Mayor Holland reviewed the recommended funding list as proposed by staff. Interim Commissioner Gnann-Thompson announced she would recuse herself due to a conflict of interest. The Commission discussed the recommended funding list and cited the Amazing Race for Charity and the Bay Street Players (BSP) for their assistance to other organizations. It was recommended that the Band Boosters and other organizations contact those organizations for assistance. The Commission noted that the August "Eustis Live" event would be dedicated to Eustis Spirit and proceeds would be donated to the Eustis and Middle School bands. Christie Bobbitt, Chamber Executive Director, noted there are also opportunities during Georgefest for the band to raise funds. CONSENSUS: It was a consensus of the Commission to fund the support grants as recommended. The Commission expressed support for seeking grant funding to assist some of the other organizations including the Historical Museum. IX. Adjournment- 7:06 p.m. MARY' c. MONTEZ, ci ty1 ( MICHAEL L. HOLLAND, MayorlOmmissioner *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 713112015