City Commission Workshop Meeting

APPROVED:4/19/2018 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 5, 2018 5:30PM City Hall CALL TO ORDER: Mayor Morin - 5:37 p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 4 - Linda Bob; Carla Gnann-Thompson ; Marie Aliberti; and Robert Morin Absent: 1 - Anthony Sabatini I. Workshop Item 18-0081 Budget Planning Workshop for Fiscal Year 2018-19 Robert Visser, Deputy Finance Director, explained the purpose of the workshop was to discuss early big-picture revenue and expenditure estimates so that the Commission can provide further direction and consideration of the City's priorities. He reviewed the budget dates leading up to the adoption of the budget in September and the year-end figures from FY20 16-17. He cited the ad valorem revenues and millage rates from FY14-15 actual through the FY18-19 estimate. He reported that the estimated taxable value will be received from the Property Appraiser around June 1st. II. Commission Discussion Mayor Morin commented on the reduction in the number of new home starts with Ron Neibert, City Manager, stating the City's cu"ent issue is that most of the available lots have been built on which is why staff is proposing various incentive programs to assist with development. Commissioner Bob asked for a report on the status of developments that are under way. Lori Barnes, Development Services Director, reported on the status of several subdivisions currently under construction and issues that had slowed them down. She stated there is a 351ot subdivision pending out on E. Orange Avenue between Glover and Cardinal. Commissioner Bob asked about the property near Trout Lake with Ms. Barnes stating that staff has heard about a number of proposed projects but no applications have been submitted. Mr Visser provided an overview of the City's major revenue sources from FY16-17 actual through FY18-19 estimated. Mr Neibert noted the Lake County Commission voted to put on the 2018 ballot a 5 cent increase in the gas tax. Mr Visser continued the revenue overview and then presented the major expenditures by department including personal services noting possible COLA increases ranging from 2% to 5% and what would be required to cover those increases. Mr Neibert clarified that the figures shown only reflect covering the COLA shortfalls with increased ad valorem revenues; however, there are other possible ways of funding the increases which will be discussed as the City goes further through the budget process. City of Eustis, Florida Page 1 Printed on 411212018 City Commission Workshop Meeting Minutes - Final April 5, 2018 Mayor Morin questioned the difference between Fund Balance and Reserve with Mr Visser explaining that the Operating Reserve is a part of Fund Balance. Mr Neibert further explained there is $500,000 of the Fund Balance that is restricted as it was generated by building permit fees which by statute are restricted to building department expenses only. He stated there is $2.5 million unobligated in Fund Balance. He further explained that the City's fiscal policy requires the City have a minimum in reserves. Colleen Scott, Finance Director, explained that prior to 2008 the City lost approximately half of its fund balance due to the economy crash. Mr Visser reviewed the expected life and health insurance cost increases with Commissioner Bob asking what are the deductibles. Bill Howe, Human Resources Director, explained that there are five different plans the employees may choose from with different deductibles. He offered to provide information sheets to the Commissioners showing the premiums and deductibles. Commissioner Bob commented on the effect on those employees at the lower end of the salary ranges. Mr Neibert noted that when the City receives a premium increase the employee shares in that through a pro rata increase. He added that no changes have been made to the insurance benefits in the last three years. Mr Visser reported on the Public Safety pensions and anticipated increase in costs. He stated that the FY18-19 estimates won't be available until May. He then reviewed the General Liability costs. He summarized the General Fund expenditures including COLA increases, pensions, health insurance, genera/liability insurance and community grants. Mr Visser then announced that the Organization and Event Support Grant application period would open on May 1st and reviewed the basic requirements for an organization to qualify. He stated the next step would be the May 3rd C/P workshop and reviewed the remaining budget meeting dates. III. Public Input- None IV. Commission Direction Mayor Morin commented on the issues facing the City for the F¥2018-19 budget year He cited the high cost of personal services but with low employee wages. He stated that the Commission would need to evaluate how any ad valorem increase would affect the residents; however, he is not opposed to considering a millage increase to assist with community programs as well as employee salaries. He cited the possible increase in the homestead exemption with an approximate $400,000 reduction in ad valorem revenue. He encouraged residents to communicate to the Commission what they are thinking. Commissioner Bob cited the need to improve the quality of life particularly for the children in the City. She commented on the status of the local schools. V. Adjournment - 6:09 p.m. ~ c~ MAR:'gJMONTEZ, City Clerk *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 Page2 Printed on 411212018