City Commission Workshop Meeting

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 11 , 2016 5:30PM City Hall CALL TO ORDER: Mayor Holland ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 5- Linda Bob; Carla Gnann-Thompson; Karen LeHeup-Smith; Robert Morin ; and Michael Holland I. Workshop Item #1 16148 Budget Workshop for Fiscal Year 2016-2017 Colleen Scott, Finance Director, stated the cover photo of the budget was of the new splash pad and congratulated City staff members for their work on the project. She explained the budgetary process and statutory requirements and announced the formal acceptance of the CIP would be considered at the July 21st meeting with the formal budget hearings to be held September 8th and 22nd. She reviewed the budget methodology and timeline noting that the City received the GFOA budget award last year and staff anticipates receiving the award for the current year as well. Vice Mayor LeHeup-Smith joined the meeting at 5:34 p.m. Ms. Scott explained the budget methodology, the ad valorem revenues, the Local Option Gas Tax formula and the balanced budget concept. She stated the significant factors affecting the budget preparation included the following: 1) Police pension additional cost of $45, 000; 2) Fire pension increase of $80,000; 3) Market pay/merit increase of approximately $251 , 700; 4) Health & Life Insurance increase of $103,800; and 5) General Liability, Worker's Comp. and Property Insurance increase of $114,399. Ms. Scott provided an overview of the FY2016-17 budget, explained the total City revenues and expenditures and provided an overview of the General Fund revenues and expenditures. She explained the recurring operating revenues, expenses and reserve levels and stated all are well budgeted except for Street Improvement. Ms. Scott stated the budget was prepared utilizing the proposed millage rate of 7.5810. She explained the anticipated revenues based on the current rate, roll-back rate and the maximum rate. She reviewed the cost to residents based on a $150,000 property. She stated future challenges include the fire and police pension actuarial reviews, increased insurance costs and staff compensation. She stated that the next steps are to set the tentative millage rate at the July 21st meeting along with the hearing dates. She confirmed the Christmas bonus is included in the budget and noted that the Lakeview Street project was being delayed until the next fiscal year. II. Commission Discussion The Commission asked about the Lakeview improvement project with Rick Gierok, Public Works Director, explaining the difficulties and status of the project. He stated the project will go out to bid in the current year with the intent to begin work in the new fiscal year. The Commission asked about the status of the development that was approved off of Lakeview. Lori Barnes, Development Services Director, explained that The Cove at Crooked Lake had requested and received an extension due to issues with St. John's. She stated their extension would expire in December and they would need to begin work or request another extension. City of Eustis, Florida Page 1 Printed on 711512016 City Commission Workshop Meeting Minutes - Final July 11,2016 III. Public Input- None IV. Commission Direction The Commission asked about staffing for the Police Department with Ron Neibert, City Manager, noting there are current shortages and the department is actively recruiting for applicants. It was noted there are three current vacancies and the department was notified they will have another vacancy due to a resignation. The Commission commented on increased criminal activity and the need to make sure they have sufficient staffing. Mr Neibert noted there was a 6% increase in the property valuation for the next year; however, that was offset due to increased costs. He noted that he is looking at options for decreasing some of those costs. He commented on a number of large developments being completed that are not yet on the tax rolls but should increase the tax rolls in the following year The Commission asked about Care Here wanting to partner with the City with Bill Howe, HR Director, explaining the City tried to work with the City of Mount Dora for use of their clinic but that was only for employment physicals and worker's camp. He indicated he had spoken with the School Board about using their clinic and they were not interested. Commissioner Morin asked to see a comparison of millage rates with Ms. Scott indicating she would forward that information to him as it had already been presented to the Commission. CONSENSUS: It was a consensus of the Commission for staff to proceed with the budget process as submitted. V. Workshop Item #2 161 49 Acceptance of Capital Improvement Plan (CIP) 2017-2021 Robert Visser, Deputy Finance Director, reviewed the current year capital projects either underway or completed. He then reviewed the major projects for FY2016-17. He explained the overall FY17-21 projects by funding source and year VI. Commission Discussion The Commission asked what is happening with the funds from the Lakeview project since it is being deferred to next year Mr. Neibert explained that part of the funds are still in the account and part of the funding for the project will come from bond proceeds so the funding will be in place when construction starts next fiscal year The Commission asked about the skatepark with Mr. Neibert explaining that it is being partially funded by a grant. Mr Neibert noted the previous Commission discussion regarding the proposed "maker space" project at the library. He stated that he and Mr Gierok had reviewed the proposal. He explained the maker space cost is estimated at $160, 000; however, it could not be done without completing the remainder of the project which would be approximately $300,000. He stated the proposed maker space is less than 600 sq.ft. which he said would not be sufficient to make it worth the cost. He explained staff's belief that there may be some grants available for maker space creation. He commented on the possibility of increased property values due to pending annexations. He asked to delay the project one more year to allow time to fine tune the project. The Commission discussed the need to open up the space to the public and not commit to the "maker space" until know they are going to be able to do it to its full potential. City of Eustis, Florida Page2 Printed on 711512016 City Commission Workshop Meeting Minutes - Final July 11 , 2016 The Commission questioned the cost of the project and whether or not the library space could just be opened up. Mr. Neibert explained what was included in the project and the difficulties with the construction and reconfiguration issues including relocation of bathroom and kitchen facilities and leveling the flooring to omit the step down which presents a tripping hazard. He stated staff's belief that there is a better way to reconfigure the space. The Commission commented on the need to make sure the project does not get forgotten and the need to expand the children 's library to provide more programming space. VII. Public Input- None VIII. Commission Discussion CONSENSUS: It was a consensus of the Commission for staff to proceed with formal acceptance of the Capita/Improvement Plan as proposed. IX. Adjournment - 6:05 p.m. MICHAEL L. HOLLAN D 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 711512016