Village Council Workshop

Village of Wellington 12300 Forest Hill Blvd Wellington, FL 33414 Action Summary - Final Monday, September 10, 2018 4:00 PM Village Hall - Conference Rooms 1E & 1F Village Council Workshop Anne Gerwig, Mayor Michael Drahos, Vice Mayor John T. McGovern, Councilman Michael J. Napoleone, Councilman Tanya Siskind, Councilwoman Village Council Workshop Action Summary - Final September 10, 2018 1. CALL TO ORDER Mayor Gerwig called the meeting to order at 4:00 p.m. Council Members present: Anne Gerwig, Mayor; John McGovern, Councilman; Michael Napoleone, Councilman and Tanya Siskind, Councilwoman. Council Members not in attendance: Michae Drahos, Vice Mayor. Advisors to the Council: Paul Schofield, Manager; Laurie Cohen, Attorney; Jim Barnes, Assistant Manager; Tanya Quickel, Director of Administrative and Financial Services; and Chevelle D. Nubin, Village Clerk. 2. PLEDGE OF ALLEGIANCE Mayor Gerwig led the Pledge of Allegiance. 3. REVIEW OF COUNCIL AGENDA Mr. Schofield presented the agenda for the September 11, 2018 Regular Wellington Council meeting for review. He announced that Consent Item 6D (Authorization to Renew an Existing Agreement to Provide General Liability, Property, Casualty and Workers' Compensation Insurance) needed to be moved to the Regular Agenda as item 8A. Mr. Schofield explained that the Mayor has a conflict as she serves on the Board of the Florida Municipal Trust and will need to recuse herself from this item. A. 18-2070 AUTHORIZATION TO AWARD CONTRACTS TO PROVIDE LANDSCAPE MAINTENANCE SERVICES FOR FACILITIES, PRIMARY ROADS, UTILITY SITES, CANALS AND EQUESTRIAN TRAILS Mr. Schofield introduced the agenda item. This was authorization to award contracts to provide landscape maintenance services for facilities, primary roads, utility sites, canals and equestrian trails to various vendors totaling $740,232.00. He explained that there is a $56,524.00 increase from last year which was principally due to irrigation that was added to the contract. He explained as part of their operations, staff annually looks at what things can be done better either internally or by contract. Mr. Schofield further explained that the budget that Council would be discussing shows three positions in that department being eliminated through attrition, but the net cost for those is $150,000. So, while this is increasing $56,000, they have a net savings of about $100,000. Village of Wellington Page 1 Village Council Workshop Action Summary - Final September 10, 2018 Councilman Napoleone asked about the big disparity in some of the contracts noting that in facilities GardenScapes is at $117,000 while Wellington Pro Lawn is at $200,000. He also noted that, on the roads, Wellington Pro Lawn is at $285,000 while GardenScapes is at $260,000. Mr. De La Vega said that, although they were large swings in price, staff felt very comfortable with Gardenscapes as they do the facilities and they know what it takes to get them done and the same with Wellington Pro Lawn and the roads. Mr. Schofield said that both companies were working well and they haven't had any discrepancies with them. Mayor Gerwig noted that the Minima at the traffic circle on Paddock was not doing well. She thought it might be time to change that out for landscaping that is a little heartier. Mayor Gerwig asked if any of the contractors were changing. Mr. De La Vega responded that no changes were being made. B. 18-2093 AUTHORIZATION TO AWARD A SOLE SOURCE CONTRACT FOR THE PURCHASE OF BADGER WATER METERS AND COMPONENTS Mr. Schofield introduced the agenda item. This was authorization to award a sole source contract to National Meter & Automation for the purchase of Badger water meters and components at a cost of $150,000 annually. Mr. Schofield explained that about 10 years ago, the Village switched to the Badger water meters and noted that they are a sole source vendor for this. He also noted that the contract is the same amount as last year and it is for annual repair and replacement. There was no Council discussion. C. 18-2096 AUTHORIZATION TO UTILIZE A NATIONAL COOPERATIVE PURCHASING ALLIANCE (NCPA) CONTRACT WITH MUNICIPAL CODE CORPORATION INNOVATIONS (MCCI), LLC FOR LASERFICHE DOCUMENT MANAGEMENT ANNUAL LICENSING, MAINTENANCE AND SUPPORT Mr. Schofield introduced the agenda item. This was authorization to utilize a National Cooperative Purchasing Alliance (NCPA) contract, as a basis for pricing, with Municipal Code Corporation Innovations (MCCI), LLC for Laserfiche document management annual licensing, maintenance and support at a cost of $42,425.50 annually. Mr. Schofield explained that this was the maintenance of the Village's Laserfiche system which is the primary tool used for records keeping and production. Village of Wellington Page 2 Village Council Workshop Action Summary - Final September 10, 2018 There was no Council discussion. D. 18-2097 AUTHORIZATION TO RENEW AN EXISTING AGREEMENT TO PROVIDE GENERAL LIABILITY, PROPERTY, CASUALTY AND WORKERS’ COMPENSATION INSURANCE Mr. Schofield announced that this was the item that would be moving to the Regular Agenda due to Mayor Gerwig's conflict. At this point, Mayor Gerwig announced that she would be recusing herself from this item because she sits on the Board for this organization through the Florida League of Cities. Mayor Gerwig then left the Conference Room. Mr. Schofield introduced the agenda item. This was authorization to renew an existing agreement with Florida Municipal Insurance Trust (Florida League of Cities) to provide general liability, property, casualty, and workers’ compensation insurance at an estimated net annual cost of $929,634. He noted that the number in the Council's packet was incorrect as it listed an increase of $142,000. He said that the original price the Village received was significantly higher than that, but they went to the Gehring Group and said they would not pay that. Mr. Schofield said that when it came back at $142,000, he was inclined to put this out for an RFP; however, they have since come back at $94,000 and he didn't think they would get a better increase than that. He said that they could potentially get a single years savings by going out for bid, but he believed they will not save in the long term. He noted that this doesn't include the premium readjustment. Mr. Schofield pointed out that part of this item relates to increases for all policies across the State of Florida for Hurricane Irma. In addition, he noted that the Village also had some exceptional experiences on the Workers Compensation and liability side last year. Ms. Quickel circulated a handout with the revised numbers. Mr. Schofield said that there is a significant savings from where they started to where they ended. He said that this gets this to a 12% increase and noted that he believed the original number was double that. Mr. Schofield reiterated that they could put this out for RFP and there will be several companies that bid on it, but they won't have premium returns and he did not believe they would do better than this in the long run. Ms. Zembrzuski, Purchasing, said that if they went out for bid, there may be some cost savings the first years, but after time, that won't be the case. Councilwoman Siskind asked if this was in line with what other municipalities are paying. Mr. Schofield responded affirmatively adding that it is those municipalities with the same claim experience as the Village. He indicated that he would speak with Council individually to Village of Wellington Page 3 Village Council Workshop Action Summary - Final September 10, 2018 review what the claims experience was last year. Councilman McGovern said that he understood that the increase was due to the claims experience; however, he was concerned that if they go back to what their claims were originally that there would not be a reduction. Mr. De La Vega believed that it would be down next year. He explained that if Council looks at the Workers Comp mod it was .64 that increased to .73 so at that number there is an increase in the Workers Comp policy. However, if they revert back to where they have been, next year's policy will show a savings, but if it goes up because there are more claims, then it will increase. Ms. Quickel added that the overriding factor was the impact of Hurricane Irma as well as for both property and casualty. She believed that Gehring will confirm that almost all of their clients across the State were seeing increases from that hurricane across the board. Councilman McGovern asked what Irma-related claims were here. Mr. Schofield said that it was because of Irma-related claims that they were increasing everybody's premiums to cover those expenses. Mr. De La Vega said that their return on premium credits were reduced because there usually is a pot at the end of the year that they disperse evenly amongst all of the members. At the end of the discussion, Mayor Gerwig returned to the conference room. E. 18-2264 RESOLUTION NO. R2018-41 (DEERIDGE FARMS VACATION) A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL, TO VACATE A 0.25 ACRE PORTION OF A 20-FOOT WIDE WATER EASEMENT LOCATED AT 12100 PIERSON ROAD (DEERIDGE FARMS), MORE SPECIFICALLY DESCRIBED HEREIN; AND PROVIDING AN EFFECTIVE DATE. Mr. Schofield introduced the agenda item. This was the approval of Resolution No. R2018-41 to abandon/vacate a 0.25 acre portion of a 20-foot wide water easement within Deeridge Farms. He explained that the Village does not have any use for this and also verified with utilities that they do not need it. He said that it is in line with the Village's policy to abandon easements that are not needed. Mr. Schofield said that if they ever require water service there that they don't currently have, the Village will then require them to provide an easement at that time. Mr. Basehart added that this was in the way of a maintenance building that the owner wants to build. Ms. LaRocque, Utilities Director, corrected that it wasn't in the way of the new building, but there is an existing distribution line on Deeridge Farms Village of Wellington Page 4 Village Council Workshop Action Summary - Final September 10, 2018 with a hydrant. She said that because it is located in a public easement, the Village is required to maintain it. She noted that it is very difficult to maintain and to get to. She said that as a function of the approval that came through, staff asked Deeridge if they wouldn't mind abandoning it and taking over the maintenance of that line which they agreed to do . Ms. LaRocque said that is beneficial to the utility and that the Village no longer had to go on their property. F. 18-2233 FIRST PUBLIC HEARING FOR PROPOSED FISCAL YEAR 2018/2019 MILLAGE RATE, BUDGET AND ADOPTION OF THE FY 2018/2019 CAPITAL IMPROVEMENT PLAN G. 18-2273 ORDINANCE NO. 2018-09 (FY 2018/2019 ANNUAL CAPITAL IMPROVEMENT ELEMENT UPDATE OF WELLINGTON’S COMPREHENSIVE PLAN) AN ORDINANCE OF WELLINGTON, FLORIDA’S COUNCIL, UPDATING THE WELLINGTON COMPREHENSIVE PLAN BY INCORPORATING THE ANNUAL REVIEW AND REVISIONS TO THE CAPITAL IMPROVEMENTS ELEMENT TO REFLECT THE 2018/2019 THROUGH 2023/2024 FIVE YEAR CAPITAL IMPROVEMENT PLAN FOR LEVEL OF SERVICE PROJECTS; AND UPDATING THE SCHOOL DISTRICT OF PALM BEACH COUNTY CAPITAL IMPROVEMENT SCHEDULE; PROVIDING FOR CONFLICT AND SEVERABILITY; AUTHORIZING THE MANAGER TO UPDATE THE COMPREHENSIVE PLAN; AND PROVIDING FOR AN EFFECTIVE DATE. Mr. Schofield introduced the two public hearing items. He said that the first one was for the proposed FY2018-2019 budget and adoption of the FY2018-2019 capital improvement plan. Mr. Schofield said that there was a second element which was the Capital Improvement Element update for the Village's Comprehensive Plan. He explained that the Village is required every year to update their Comprehensive Plan to include the School District's Capital Element/budget and those items that are currency related for the Village's Capital Improvement Plan. He noted that non-currency items don't get updated. Councilman McGovern said that the Village can't edit it or change it. Mr. Schofield said that was correct. He said that once they previously tried adopting it by resolution by the State would not accept that. In addition, they tried doing it in separate hearings, but it makes more sense to do all of the hearings together. He noted that one year there was an issue where they adopted the budget and then did the Comprehensive Plan Amendment for currency-related items and those did not pass. Mr. Schofield said if they do them together, they avoid that problem. Village of Wellington Page 5 Village Council Workshop Action Summary - Final September 10, 2018 At this point, Mr. Schofield turned the budget presentation over to Ms . Quickel. Ms. Quickel said that staff had a presentation for tomorrow night's Council meeting. She noted that the TRIM notices all went out with a millage rate of 2.55 so their presentation will focus on that. She said that staff will present options to change the millage rate to 2.50 mills. Mayor Gerwig asked how much of an increase will rollback with 2.50 mills. Ms. Christine Wadleigh, Budget Manager, said that it would be 7.21% increase. Mayor Gerwig said that they were expecting to start the meeting at 7:00 p.m. and then delay it until sundown. Ms. Quickel said that the notices that went out stated that the meeting starts at 7:00 p.m. so they will open it at 7:00 p.m. Mr. Schofield added that they would then just recess it. Mayor Gerwig said that their intention was to accommodate people who celebrated the holiday. She expected that if there was anyone at the table or in the room, she would expect them be there at 7:00 p.m. and at 8:00 p.m. Ms. Quickel pointed out that they usually don't have a huge turnout for the budget; however, it is advertised for 7:00 p.m. Councilman McGovern asked if it was staff's recommendation that if there were people there at 7:00 p.m. who wanted to speak as part of public comment that they would take their comment at that time. Mayor Gerwig believed that the best thing that they could do to accommodate the holiday, would be to open the meeting and then adjourn it for an hour . Mr. Schofield said they would recess the meeting for an hour noting that they have been very consistent about that having announced it at every Council meeting. He said that they will open the meeting and then he will suggest that they adjourn or recess for a while. Councilman Napoleone asked if there was a reason why they could not just start the meeting at 8:00 p.m. Councilman McGovern said that the notice went out as the advertising requirement was already out before the change. Mayor Gerwig said that she did not want the public to say that they had to get there early and now were not going to be heard. She felt it best to let everyone know their plans about what will happen at the meeting. Mayor Gerwig asked Ms. Quickel to do a quick review of the budget presentation. Ms. Quickel gave the following presentation: Village of Wellington Page 6 Village Council Workshop Action Summary - Final September 10, 2018 *The total budget for this year is recommended at $97.3 million which is a decrease from the $110.5 million that they currently have which is a reduction of $13 million which is primarily a decrease in capital projects as well as paying off debt early. *This budget was only for the governmental funds as the Council had approved the other budgets and rates for Utilities, Acme, Solid Waste and the Lake Wellington Professional Centre at their August 14, 2018 meeting. She noted that there was no change in Acme or Solid Waste, there was a 3.5% annual indexing for the utility rate and the rate for Saddle Trail was adopted as well. *There is a recommendation for the overall millage rate at 2.55 mills, an increase from the current 2.43 mills, which is a .12 millage increase. There is a change of $37.00 for an average home. *Approximately $3.3 million in reserves was being used to balance the overall budget which is $662,420 of the General Fund. With regard to the reserves, Mr. Schofield said that they would not be using the reserves that are required to maintain their credit. He said that they try to maintain a 29% or 30% of contingent reserves which this does not touch. He said these are reserves that they would have had for projects or other savings and those types of things. Mr.Quickel then continued with her presentation: *The overall governmental budget is basically the same which is standing at roughly $43+ million. The Building Fund has a slight increase which included the budget or expenditure for the demolition of two homes. The Road Maintenance Fund has a small increase of $16,536.00 and then they reflect savings from the debt payoff overall. *The revenues are budgeted at $62.4 million. At the 2.55 millage rate, the expenditures are budgeted at $62 million. *Approximately $662,420.00 was being used in reserves to balance the budget. *Out of the total budget, the millage rate brings in $20.2 million. *The changes overall in the Government budget (page 8 of the Power Point) shows a debt service payoff of $1.1 million which was approved in June. *There is a slight decrease in capital projects of $632,000. *The Village's personnel costs currently stand at a reduction of $ 194,000 that is the elimination of seven full-time positions, two supplemental positions, and 2,410 of part time. That was a net change in personnel with a savings of $594,000. Staff is budgeted for a 3% across the board increase for staff and up to a 1% merit for staff. *The Village's law enforcement contract is up 3% for a change of Village of Wellington Page 7 Village Council Workshop Action Summary - Final September 10, 2018 $278,000. *The departmental expenses are increased by $251,000 that includes expenses for surface water quality monitoring, pump station roof assessments and increases for chemical and aquatic weed control. *Council has previously discussed capital projects that stand at almost $16 million for all funds. *The Village's ongoing programs stand at $2.7 million *The One-time projects are at almost $5 million *Utility capital projects are at $8 million *The three large signature projects for this budget include the Forest Hill & C-8 project which is an overall project of almost $2.8 million. The budget includes the final funding of $567,000 included and the rest is in carryforward funding. *Greenbriar Park is underway which is budgeted between $10 million and $11 million. *The preliminary work for the Lake Wellington Waterfront is included at $1.2 million. This is just the first stage of funding. The funding of that project is estimated up to a possible $25 million. These funds are designated for demolition, preparation, surveying, permitting and design work. This project will come back to Council multiple times. *A workshop was held on capital improvement projects and these were the governmental projects. *$7.6 million in capital projects for funding was included for this year, but there also are carryforward funds which were included with the 2019 funding of $7 million for a total of $22,344,000. *$5.1 million was reallocated from completed or deferred projects in the carryforwards. Sales tax/surtax funding is identified for Greenbriar Park and the Lake Wellington Waterfront development. *For Utility CIP, there is $8.2 million budgeted this year with the carryforwards from prior years plus this year's 2019 funding. There is a total of $34.4 million capital projects underway in the Utility Department which brings the total CIP for Wellington to $56.7 million including carryforwards. The new funding included in all budgets is a little over $17 million which includes replacement assets and new assets. Mayor Gerwig requested information on how much was being spent on shade structures. Ms. Quickel said that she would provide that information. Ms. Quickel continued with the presentation. *Millage Options at 2.55 with the Preliminary TRIM rate approved at July's meeting were included in all of the notices that went out. The other rate was included in the PowerPoint. She said that each 1/10 of a mill generates approximately $79,000, 1 mill is approximately $790,000. Village of Wellington Page 8 Village Council Workshop Action Summary - Final September 10, 2018 Mayor Gerwig said that the Village's property values went up by about 6%. Ms. Quckel said it was 5% and directed her to page 13. Mr. Schofield explained that 5% would have included increases of property values plus the value of new construction. He explained that the total assessed value increased by 5% which is across all plus new construction. Mayor Gerwig wanted to see where the values increased in the neighborhoods. Ms. Wadleigh explained that the Village does not yet have the new tax roll yet to have that type of detail. Mayor Gerwig noted that her property value had dropped on her preliminary statement and wanted to see if they had that data Village-wide. Ms. Quickel said that they saw the 5% increase overall. Ms. Wadleigh said that they usually get it by the end of the calendar year when they can do an analysis. Ms. Quickel continued with the presentation. *A sample tax bill had been included in the PowerPoint that showed that for an average value home of $306,300, the 2.55 mils shows an increase of $37.00 and it also shows that Wellington's solid waste and Acme did not increase. *Information was included on other millage rates which showed 2.43 mills for homesteaded and non-homesteaded properties as well as the 2.55 mills, 2.50 mils and 2.47 mills. She said that the overall range was from $37.00 to $13.00 with the 2.5 mills being an increase of $22.00 *For discussion proposes, additional options to reduce the millage rate from 2.55 mills includes the elimination of three more full-time positions plus two supplemental and 2,410 part time hours. Mayor Gerwig said that they would not necessarily have to take it out of personnel, it could come from other categories. She said that they weren't saying if they don't raise the millage rate, then it would cost more people their jobs. Councilman McGovern asked for clarification whether it was people losing their jobs or positions they were not filling. Mr. Schofield explained that they will go back and see whether it is 10 positions or not. He said that Ms. Quickel likes to talk about 7, 2 and 1. He said that 2,080 is full time which are 10 positions which they were going to eliminate anyway. They are not letting anyone go as those are positions that are vacant that they were not filling. He said that the additional three positions are positions that are currently vacant. He said that a number of years ago, he advised that it was his intention to take the number of employees from 316 down to 300 and this accelerated that but they are not looking to lay people off. He said that these are Village of Wellington Page 9 Village Council Workshop Action Summary - Final September 10, 2018 positions that during operations have been reduced. He pointed out that there were three irrigation positions that were eliminated and those people were moved to other areas in the Village. Mr. Schofield said that somewhere within the next two budget years, those positions were scheduled to be eliminated, but they were just doing it earlier. Mayor Gerwig said that no personnel at Lake Wellington Professional Centre were being notified that they will be out of a job. Mr. Schofield said that was correct. He explained that they did not have to lay off people even when they made significant reductions in staff in 2008 and 2009 where almost 100 positions were dropped consisting of full time and part time. Mr. Schofield said that they will do the same thing here. Mayor Gerwig said that they need to reach a point at the Council meeting where three of Council can agree that a reduction in millage doesn't have to come through personnel cuts as it could also be done through cuts in capital improvement. She wanted everyone to know that reducing staff wasn't going to be her plan. Mr. Schofield said the employees know this because they have been telling them for years that they are reducing the number of staff. He said that as they are going through their ERP process, there will be a requirement for fewer people. Councilman McGovern asked if it was correct that there is no position currently held by any employee that they were eliminating. Mr. Schofield said that he wasn't going to say that, but he would say that there was no employee who would lose their job. He said that they may eliminate a position where the employee is then transferred to another one. He stressed that no one would be losing their job over this. Mr. Schofield said that as they go through the technology process, there are positions that will no longer be needed, but there will be others that will be needed so people will be moved into those positions. Mr. Schofield said that the Village employees stay here a long time. He said that they have a number of people retiring over the next three years so they will have far more vacant positions than they need to eliminate. Mr. Schofield said that during this period where they are making reductions, they will still be hiring. Ms. Quickel continued with her presentation. *Negotiations for health insurance renewal for next year have continued noting that there is a decrease of 1.4% in the annual premiums. She said that will still provide very good health insurance while still being able to remain with Cigna, the same network of doctors and there will be no change in payroll deductions, but it will be a consumer-driven plan with higher deductibles. She said that they propose for Wellington to pay Village of Wellington Page 10 Village Council Workshop Action Summary - Final September 10, 2018 those higher deductibles which will still result in the overall decrease of 1%. Mayor Gerwig questioned how they could pay more for something yet it decreases. Mr. Schofield said that they are looking at a significant increase in their premiums and explained that the way to reduce them is to provide higher deductibles. He said that they can offset that cost to the employees by increasing the contribution to their health care spending account so that the amount of money that the Village is spending and the employees is spending is roughly the same or smaller. Mr. Schofield stated that because of the way the insurance system works where higher deductibles are paid up front, it reflects in the premium they are paying . He said that as a result of that, there will be a couple of things that will change which they will review with employees. Mr. Schofield explained that a number of years ago, the Village was paying about $3 million for health insurance which is roughly about doubled that now. He pointed out that the Village cannot continue to absorb those kinds of increases and that their ratepayers can't continue to absorb, and as employees, they have the health care plans, and they will adjust to the things that they have to. Mr. Schofield said that it will be a little more complicated for employees as they are going to have to manage their health care spending accounts better and there will be some changes that will not be allowed to be funded under the HSA. He explained that they will probably not approve purely cosmetic procedures or dental procedures because they want to ensure employees have the money in their account to take care of health care issues. He said that the real difference between the current policy and the one they are recommending is the health care levels are funded at significantly lower levels than what staff will be proposing under the new plan. He said currently, if the yearly HRA money is unspent employees can roll it over; however, if it is unspent for the next year, they will sweep that into the cost of next year's premiums. Mayor Gerwig questioned the HRA paying co-pays for the dentist. Mr. Schofield said that they were not supposed to pay that expense out of the account, but they have never stopped it from being done. Ms. Quickel continued with her report: *There is normally a 5% to 10% increase for health insurance, but to achieve a 1.4% decrease and still have a very good insurance plan, they believe it is a great choice for Council to consider. *Ms. Quickel said that they will be reducing the outside services funding for the Legal Department budget by $50,000. *The three changes that were outlined can make the millage go down to the proposed 2.50 mills if Council wished to consider those changes. Village of Wellington Page 11 Village Council Workshop Action Summary - Final September 10, 2018 With regard to the cut for the Legal Department, Ms. Cohen said that they have been under budget for a number of years. For example, in 2017 they budgeted $857,000 and the actual expenditures were $782,000 which was for the total budget. For outside legal services, they budgeted $280,000 and the actual was $200,908. She said that there was some room for that to be reduced. Mayor Gerwig asked what happens to the money that was not spent. Ms. Cohen said that it would go back into the General Fund. Councilman McGovern asked if it went back as a carryforward. Ms. Quickel and Mr. Schofield indicated that it just goes back into the General Fund. Mr. Schofield added that it goes back into the General Fund, but when they see the unassigned reserves, that is where that number will come from where they saved money on a project or saved money on an expenditure. Councilman McGovern asked how much money was in unasssigned reserves. In response, Ms. Quickel said that she believed it was $16 million. Ms. Cohen then presented to Council the expenditures for outside legal services for the current year. She said that they had budgeted $ 290,000 and through September 5, they were at $161,000. She said that they have been fairly efficient with what they are doing with outside services . She said that those numbers included the $50,000 payment to Mr. Friedman. They have been very careful about what is spent. She said if they have unforseen litigation and they don't have the money budgeted, they would have to do a budget amendment. Councilman McGovern said that they are talking about money they are using out of reserves to make the budget work, and asked where that money was actually coming from. Ms. Quickel said that it would come out of unassigned reserves. She said that the balance of the unassigned reserves after the 2.55 millage budget is projected to be approximately $18 million. Mr. Schofield said that two years ago, staff was telling Council that in their current service model that they would be out of reserves by 2021. However, as they have made that change with the model being proposed to Council in this year's budget, it looks like that number goes to 2025. He said that he could guarantee that by the 2021 budget they will see a stable reserve balance through 2030. Councilman McGovern asked what would the millage rate be in order to make that commitment. Mr. Schofield said that they can maintain a Village of Wellington Page 12 Village Council Workshop Action Summary - Final September 10, 2018 millage rate of 2.50 for at least five years into the future. He said that they could get them to 2.43 but that is not sustainable over five years without cuts. He said that when they do things like add Greenbriar Park at $ 10 to $11 million that will add $800,000 per year in annual operating expenses. Mr. Schofield said that they are looking at general inflation increases noting that the historic rate over the last 100 years has been right at 3%. Councilman McGovern said that Ms. Quickel said the unassigned reserves was at $16 million, but at the end of this budget year it would be at $18 million. Ms. Quickel said that she had to correct her previous comments. She said that the unassigned reserves as of 9/30/18 would be at $16.8 million. She said that they are projecting that at the end of 9/30/19 with 2.55 mills, it would be $16.1 million. Councilman McGovern referred to the proposed raises for employees of 3% cost of living and 1% merit. Ms. Quickel clarified that it is up to 1% merit. Councilman McGovern asked how many employees did not get the 1% merit last year. Ms. Quickel said that she did not know that number off hand, but would get back with that information. Mr. Schofield believed it was a relatively small number, but would get the exact number . He said that what happens is the smallest percentage that anyone got if the performance was satisfactory was 1/2%. With regard to Ordinance No. 2018-09, he explained it updates their Comprehensive Plan to include the School District's Capital Element/budget and those items that are currency related for the Village's Capital Improvement Plan. He noted that non-currency items don't get updated. 4. WORKSHOP None 5. ATTORNEY'S COMMENTS None 6. MANAGER COMMENTS Mr. Schofield reported that there were three storms sitting off of the coast, and although none look to be problematic for Florida, this is the time they evaluate all of the Village's emergency procedures. He also noted that this is the type of thing that the Emergency Management staff looks at every day. He said that they could forego talking about it until something threatens the Village; however, he wanted to welcome Ms. Coates back to work. He asked how the babies were doing. In Village of Wellington Page 13 Village Council Workshop Action Summary - Final September 10, 2018 response, Ms. Coates said that they were doing great. She thanked Council for the Parental Leave Policy and expressed thanks to Mr. Schofield, Mr. Barnes and Ms. Quickel for their support during her pregnancy and during her leave. She indicated that she was glad to be back. Ms. Coates said that she always had her eye on what was happening in the tropics and if she needed to be in, she would have absolutely been here. Ms. Coates advised Council that there was no immediate threat with the storms in the Atlantic. She distributed information to Council which was something she gets weekly, and daily if there is a potential threat or an update from the State. She said they work with meterologists from the State as well as the National Weather Service who she can contact in case there was a more specific threat in our area. Ms. Coates said that they are keeping an eye on the storms and will keep everyone safe and informed. Mr. Schofield reminded Council that he would see them at 8:30 a.m. the next morning at the Patriot Memorial. 7. COUNCIL COMMENTS Mayor Gerwig said that she had a resident drop off a coloring book from the early 1980's of Wellington which captured different events. She said that she will share it with the Historical Society when they have a permanent place. She said that she also has a folder from Bobby Stribling with some interesting background which Bobby obtained from her father-in-law's files after he passed away. Ms. Cohen said that presently the Historical Society's storage area is in her office. Mayor Gerwig said that she is keeping her own depository including the Acme Drainage Plan which she had brought in. Mr. Schofield said that they still could not figure out why there was a hole. Mayor Gerwig said that she was waiting for someone to tell her why Sections 20 and 21 were originally omitted. Ms. Cohen noted that the Historical Society was having their Mixer on September 20th, Mayor Gerwig advised people that they do have a depository if they have any historical information. Mr. Schofield reminded everyone that the Lakeside event was scheduled for Saturday. He extended his apologies as it is his wedding anniversary Village of Wellington Page 14 Village Council Workshop Action Summary - Final September 10, 2018 and he would not be able to attend. 8. ADJOURN There being no further business to be discussed by Council, the meeting was adjourned at 4:52 p.m. Village of Wellington Page 15