Board of Commissioner Special Budget Meeting

THE CITY OF MADEIRA BEACH, FLORIDA PUBLIC NOTICE BOARD OF COMMISSIONER SPECIAL MEETING The Board of Commissioners of the City of Madeira Beach, Florida will meet at City Hall, located at 300 Municipal Drive, Madeira Beach, Florida to discuss the agenda items of City Business listed at the time indicated below. 2:00 P.M. Thursday June 27, 2013 AUDITORIUM A. CALL TO ORDER The meeting was called to order at 2:00 p.m. B. INVOCATION AND PLEDGE OF ALLEGIANCE: Commissioner Pat Shontz C. ROLLCALL MEMBERS PRESENT: Travis Palladeno, Mayor Terry Lister, Vice-Mayor Nancy Hodges, Commissioner District 2 Elaine Poe, Commissioner District 3 Pat Shontz, Commissioner District 4 STAFF PRESENT: Shane Crawford, City Manager (CM) Jay Daigneault, City Attorney (CA} Vince Tenaglia, Finance Director (FD} Dave Marsicano, Central Services Director (CSD) Aimee Servedio, City Clerk (CC) D, APPROVAL OF THE MINUTES E. APPROVAL OF THE AGENDA Motion was made by Vice-Mayor Lister to approve the agenda as presented and was seconded by Commissioner Shontz. ROLL CALL: Commissioner Hodges................YES Vice-Mayor Lister...........................YES Commissioner Poe..................... YES Mayor Palladeno......... ...................YES Commissioner Shontz..................YES F. PUBLIC COMMENT (limited to 3 minutes) G. CONSENT AGENDA-NIA H. UNFINISHED BUSINESS-NIA I. NEW BUSINESS 1. PRESENTATION OF THE BUDGET BY THE CITY MANAGER CM - The Budget is put together by the CM and FD and then it is given off to the BOC so they can tinker with it as they see fit. Over the years it has become less complex as a document in a good way. The CM is fine with the BOC changing budget items as they see fit and staff will not be upset. Their opinions will be based on the constituency. Page 2 - Message from the CM. Millage was at 2.2 in 2005 and has since decreased to a 1.79 figure in 2013. CM has gone on record that the City will most likely need to increase the millage rate in 2014 and/or in the subsequent years going forward. There were 2 user fee increases this year (storm water and parking} in lieu of a millage increase, but the costs of upcoming projects are beginning to materialize and there will need to be more revenue generated in order to fulfill these projects. Thus a small millage rate increase might have to occur for next year. There are funds in reserve, but a lot of those are specified for projects: roads, storm water, undergrounding, new city hall, Archibald Park, etc. All of these projects are going to be done at once. Madeira Beach only represents 10% of one's tax bill at the end of the year. Page 3 -A calendar of events. FD Tengalia was hired late in the process. NO reserves were used in balancing the operating budget of Madeira Beach (talking points to the citizenry). The reserves are used for capital projects. Also no aggressive revenue estimates were used to balance the budget either. The City is using real figures, conservative ones at that, to balance the operating budget. Some employees were shifted from the General Fund to other ones that better reflect the capacity of where they work. Parking and John's Pass have been moved to the General Fund and are effectively eliminated. Electric Franchise fee saw a 4% decrease, Utility Tax revenue saw a 17% decrease (around $50,000). 4.5% Assessment increase was included in the budget (around $65,000). Health Insurance costs are up 10% as based on a trend. This is happening across multiple municipalities and there is the possibility that the City will bid this out on the future. There is extra money in the budget that will allow the City Manager to bring in a consultant in order to complete a Salary Survey. The Marina needs to be commended and they are not properly compensated for their work. Furthermore, salaries of all city staff will be evaluated in this survey. CA Trask advised the City to create an Archibald fund for Parks Service and the rest of the money in the fund can be used for Parks and Recreation. Page 11 - Number Breakdown and Services provided. Page 14 -A narrative for every item spent in the budget. Vice-Mayor Lister - Happy to see the John's Pass Fund eliminated. It was a rift between John's Pass and the City. Wants to draw boundaries around John's Pass so Code Enforcement knows what John's Pass includes. CM stated that there isn't one and a designation for that area would be beneficial. FD - The operating and maintenance expenses for John's Pass are still listed as a line-item, but they are now included in the General Fund. Vice•Mayor Lister - The Fantasy Planet building is coming up for renew on its lease this year and he would like to put in some suggestions for it. He would like some money to work with in order to redo that building. Commissioner Shontz - She asked about the type of lease. CM said that it's a triple net lease (they pay the rent, taxes, maintenance, and insurance), but if there were any capital changes (for example: adding a garage, tower, balcony, etc.) the City must pay for that. Commends the department heads for their fiscal acumen. CM - Revenues and expenditures are flush. The City can do things on the cheap, but the City would rather do things on the "quality" and get what you pay for. If the City does want to accomplish everything it desires, the citizens would be looking at a millage rate increase. Without having final numbers, it was hard to justify an increase and thus that is why the user fee was utilized. It's a responsible budget. The department heads did a great job with putting together a responsible budget.  Commissioner Shontz - Asked about how the new company that has been charged with cleaning the bathrooms at John's Pass and City Hall has been doing and CM responded favorably. Glenn Duncan is very efficient. CM - Anything over 3% increase for CM isn't politically palatable. Department heads need to be in the $80,000-85,000 range, which means that FD Tengalia needs to be caught up. On top of that, the department gets a 3% ina-ease as well as the Fire Employees. The former CWA employees have put their faith in the CM & BOC to be fair to them. An impartial group will give them judgment. Those employees wilt get a 3.5% increase and it shows that the City is moving in the right direction. CWA will get a retroactive 3.5% (The difference) retroactive to 10/1 /12 as of July 2nd. After 7/2 they will get 3% increase until 10/1/13. On 10/1/13, they will get the 3.5% increase, on top of the increase for FY 2013, for FY 2014. That is all in the 2014 budget. This is fair compensation for city employees. The citizens are more receptive of the City Government and community members are more wining to help in the present day. FD Tengalia-The City will be do a better job managing investments in the future. He used the last year's figures for that Furthermore, only half of the estimated debt service will hit in this budget year. So $175,000 will be done in 2014. CM - Madeira Beach will do a better job in overseeing it's portfolio. The CM and FD will not be the arbiters of that; the BOC will have a tremendous amount of input. Mayor Palladeno - Would like a copy to be in the Library and it can be accessed on the home page of the City's website. Big-C meeting included TDC money for beach project. Talked with Mayor Lawrence of Indian Shores and how they could procure some of these funds. Groins project, restrooms, and showers can be included. If showers are the ones that are getting funds, the City might just bite the buHet on the Groins and use the money for the projects that are actually being funded. J, REPORTS/CORRESPONDENCE • CITY COMMISSION • crrv ATTORNEY • CITY MANAGER • CrrYCLERK K. ADJOURNMENT Meeting was adjourned at 2:38 p.m. Date Approved: 7 / 0 Gt I/ l3 ~ ~~~ Tlllllis Paladeno, Mo,or Any person who decides to appeal any decision of !he City Commission with respect to any matter considered at ttiis meeli~ will need a record of the proceeding$ and for such pu,poses may need to ensure that a verblllim recortl of the proceedings is made, which record includes the testimony and evidence upon which the appeal Is to be based. The law does nol require 1he City Clerk to vanscnbe verbatim minutes; lherefom, the applicant must make the necessary ammgements wi1h a private repoTter or pnvate repclting finn and bear the resulting expense. In accordance wi1h 1he Americans with DISabUity Act and F.S. 286.26; any per.;on with a disability requiring reasonable aaximrnodalion in order to participate in !his meeti~ should call 727-391-9951 or fax a written request to 727-399-1131. POSTED: June 20, 2013 THIS MEETING IS TELEVISED LIVE ON CHANNEL 16 3 Special Budget Meeting June 2ih, 2013