Board of Commissioners Budget Workshop Meeting

BOARD OF COMMISSIONERS MEETING MINUTES BUDGET WORKSHOP MEETING May 15, 2018 Page 1 of3 A budget workshop meeting of the City of Madeira Beach Board of Commissioners was held at 2:00 p.m. on May 15, 2018 in the Patricia Shontz Commission Chambers at City Hall, located at 300 Municipal Drive, Madeira Beach, Florida. Mayor Black called the meeting to order. MEMBERS PRESENT: Maggi Black, Mayor Deby Weinstein, Vice-Mayor/Commissioner District 1 Nancy Hodges, Commissioner District 2 John Douthirt, Vice-Mayor/Commissioner District 4 MEMBERS ABSENT: Nancy Oakley, Commissioner District 3 CITY STAFF PRESENT: Jonathan, Evans, City Manager Ralf Brookes, City Attorney Clara VanBlargan, City Clerk Walter Pierce, Finance Director 1. CALL TO ORDER Mayor Black called the meeting to order at 2:00 p.m. 2. ROLLCALL City Clerk Clara V anBlargan called the roll. 3. PUBLIC COMMENT There was no public comment made. 4. BUDGET CALENDAR REVIEW Finance Director Walt Pierce reviewed a calendar with scheduled budget meeting dates that he distributed at the meeting. 5. FISCAL MANAGEMENT A. DEBT Director Piece said he and the City Manager have met with departments heads regarding their budget requests. He and the City Manager gave an overview of the City's debt and fund balance, the actuals of the 2016 budget, 201 7 budget, current 2018 budget and its fiscal impact, and key 2019 budget dates, and addressed questions and concerns from the Commission. Commissioner Douthirt asked that someone from the budget committee give an update at the July 22 nd meeting. BOARD OF COMMISSIONERS MEETING MINUTES BUDGET WORKSHOP MEETING May 15, 2018 Page 2 of 3 B. FUND BALANCE POLICIES Finance Director Pierce explained the fund balance policy. He said purchasing obligations are carried over as encumbrances from the previous year. The unassigned fund balance dropped from $5.4 million to $5.1 million. At the end oflast year, they had settlements and commitments that were not budgeted. Fortunately, the overall fund balance in 2016 was $10 million and that has increased to $10.6 million. The general fund helped build a dock at the marina for about $600,000. The booking of this asset to the general fund did help the general fund. That money in limbo did not help last year and was not part of the financial system. He is in the process of finding out how the Commission can use the $452,000 BP funds. The ratings would not be hurt because they are committed to be used. The City Manager said they discussed setting aside money in the last meeting for improvements in Johns Pass. The BP money was what staff was thinking of using. By the next meeting, they will have more information on how BP settlement money can be used, which is intended to make improvements. The City Manager and Director Pierce answered questions from the Commission. 6. 2018 YTD OPERATIONAL/ CAPITAL/ PERSONNEL REVIEW Commissioner Douthirt commented that the $2.2 million that is sitting in the fund could be capped and no money would have to be put in that fund next year. He asked if staff kept the same percentages as stated in the current policy and how much would be added to the fund next year. Director Pierce said it would grow on an average of over $100,000. The City Manager said it would be about three cents on every dollar. The policy can be cleaned up, but they do not want to stock pile money when it can be utilized for other purposes. The City Manager said there is always a delicate balance. If the City proposed increasing property taxes to cover costs, citizens will see that the City has a healthy fund balance and they would rather have this be spent down instead of the millage rate going up. 7. FY 2017 BUDGET TO ACTUALS Finance Director Pierce said parking enforcement was exceeded. It is budgeted at $1.6 million and increasing to $1.7 million in revenue. Recreation exceeded revenue by $151,000. The FEMA revenue did not come in at what was budgeted at $1.3 million and they only incurred $555,000 in revenue. Public Works, fire and recreation came in under budget. In total the City had $483,000 more than revenue over expenditures. The beginning fund balance in 2017 was $10.2 million and grew to $10.6 million. The City Manager and Director Pierce answered questions from the Commission. 8. FISCAL IMPACTS BOARD OF COMMISSIONERS MEETING MINUTES BUDGET WORKSHOP MEETING May 15, 2018 Page 3 of3 Finance Director Pierce said moving forward they would like to get a snapshot of the general fund and they used five months of data from February to project the rest ofthe year. They kept revenues fairly constant and based on the level of expenditures this indicated how departments would fare. The City Manager said this will help keep departments on track and curb mass spending that occurs towards the end of the fiscal year. Director Pierce said better controls will be placed to stop mass spending. The City Manager said if an item is purchased at the end of the year but does not get to the department until after the fiscal year, it will then cut into the next fiscal year. The City Manager and Director Pierce answered questions from the Commission. Director Pierce announced the upcoming BOC budget meeting dates. He said a more detailed budget calendar will be provided to include the budget committee meetings and the upcoming workshop. The City Manager said they will be sitting down with each Commission member separately to ensure that the budget includes their comments and philosophies. 9. ADJOURNMENT Mayor Black adjourned the meeting at 4: 12 p. m. ATTEST: Clara VanBlargan, MMC, MSM, City Cler I