City Commission Workshop Meeting

APPROVED:4/20/2017 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, AprilS, 2017 5:00PM City Hall CALL TO ORDER: Mayor Morin - 5:05 p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 4 - Linda Bob; Carla Gnann-Thompsen; Marie Aliberti ; and Robert Morin Absent: 1 - Anthony Sabatini I. Workshop Item 16337 Budget Workshop for Fiscal Year 2017-18 Colleen Scott, Finance Director, explained the purpose of the workshop was to begin the budget process and obtain some direction from the Commission prior to budget preparation. She stated that property values are rising and the previous year the City realized a 4. 7% increase in taxable assessed value. She added that there is pending legislation under SB 1774 which would provide an additional homestead exemption. Ms. Scott reviewed the budget preparation calendar and explained that the fiscal year budget must be in place no later than October 1st. She reviewed the property tax revenues for the past five years with an anticipated revenue for 2017 of $6,391,245. She then noted the major revenue sources for the General Fund with an estimated total of $12, 100,000 for 2017. She cited the major General Fund expenditures and the Personal Services costs including adjustments from the recent pay study and a proposed 2% merit increase. She reported on the police and fire pension funds noting the upcoming actuarial review. She stated staff is estimating a cost of 51 .47% for the police fund and 49.6% for the fire fund. Ms. Scott then reviewed the life and health insurance expectations and stated she would have the actual increase in late April. She stated staff is estimating a 10% increase in the City's liability insurance for an increased cost of $98,999. Ms. Scott explained the Organizational and Event Support Grant program and provided a summary of the additional General Fund expenditures for FY2018 as follows: 2% merit increase - $257, 779; Police and Fire Pensions- $141 ,206; Health Insurance with an estimated 10% increase- $221,974; General Liability Insurance - $98, 999; and Grants - $50, 000 for a total of $769,958. Ms. Scott announced that Assistant Director Rob Visser would present the Capita/Improvement Plan at the May 4th meeting with the updated ad valorem and revenue projections to be provided June 1st and the draft budget to be submitted to the Commission on June 28th. II. Commission Discussion The Commission discussed the disparity in the significance of a 2% increase between lower paid employees versus higher paid employees with Human Resources Director Bill Howe explaining that that the City's equity study only addressed internal equity not external. He stated the City's intent to address the internal equity first with external equity to be addressed the following year He then noted that in a previous year exempt employees received a 3% increase with the non-exempt employees receiving a 4% increase. City of Eustis, Florida Page 1 Printed on 411012017 City Commission Workshop Meeting Minutes - Final April 6, 2017 The Commission discussed the proposed state legislation that could eliminate Community Redevelopment Agencies and noted that part of the concern was about CRA districts not utilizing the funding appropriately. A suggestion was made about the possibility of utilizing funds to improve homes in the CRA area with possibly some General Fund revenues being added to it. Further discussion was held regarding how the City has utilized CRA funds particularly for infrastructure within the CRA district. City Manager Ron Neibert explained that one major change would be to not allow CRA 's to incur debt which would reduce the City's ability to encourage economic development and create jobs. The Commission discussed the proposed increase to homestead exemption and commented on undeveloped land needing to be used for growth and homes and the lack of good paying jobs. The Commission questioned how a Commissioner would go about requesting a budget item be added and then discussed the possibility of the City budgeting funds for social services. Mr Neibert cited the need to determine if the Commission wants to create a plan first or allocate funds first. He suggested holding a workshop to discuss what types of programs could be implemented. Ms. Scott cited the City's grant program noting that no other city has a similar program. Mr Neibert recommended increasing funding to the City's grant program and allowing social service programs to qualify. Further discussion was held regarding using the grant program to support social services with Ms. Scott explaining the application process would begin May 1st and end May 30th. Mr Neibert suggested holding a workshop on the fourth Thursday in May to discuss and review the applications. Mary Montez, City Clerk, reviewed for the Commission the criteria for the grants noting that the basic criteria would include the types of social services the Commission had discussed. The Commission discussed the loss of the Headstart grant by the Lake Community Action Agency and issues with how the program is being implemented by the new provider The Commission questioned what could be done with Mr Neibert stating the City could contact HUD to express the Commission 's concern about the effectiveness of how the Headstart funds are now being utilized. III. Public Input - None IV. Commission Direction During discussion, the Commission recommended that staff consider the inequity of providing the same percentage increase for both lower and higher paid employees and to increase the amount of funding for the City's grant program to allow consideration of additional social service programs. V. Adjournment - 5:39 p.m. •These minutes reflect the actions taken and portions of the discuss ion during the meeting. To review the entire discussion concerning any agenda item, go to www.eustis.org and cl ick 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 Page2 Printed on 411012017