City Commission Agendas & Minutes

AGENDA BUDGET WORKSHOP MEETING FISCAL YEAR 2014/2015 BUDGET REVIEW TUESDAY, JULY 15, 2014 at 7:00 PM 1. CALL TO ORDER 2. ROLL CALL 3. CITY MANAGER OVERVIEW 4. PRESENTATION OF REPORT BY BUDGET REVIEW COMMITTEE 5. DISCUSSION 6. PUBLIC COMMENTS 7. ADJOURNMENT Any person requiring Auxiliary Aids and Services for the Meeting may call the ADA Coordinator at 390-2122 at least two working days prior to the meeting. If you are Hearing or Speech impaired, please contact the Florida Relay Services by using the following phone numbers: 1-800-955-8770 (Voice) 1-800-955-8771 (tdd).  Advisory Recommendations to the Mayor and City Commissioners of Wilton Manors, Florida on the City’s Proposed Budget for Fiscal Year 2014-2015 by the Budget Review Advisory Committee July 8, 2014      INTRODUCTION AND ACKNOWLEDGMENTS The Budget Review Advisory Committee (BRAC) hereby submits its Advisory Report for the FY2014-2015 Proposed Budget for the City of Wilton Manors, Florida. Our report is based on a review of the Proposed Budget as approved by the City Manager, data gathered during a series of meetings with City department heads and staff, and a general overall review of the budget document. The Committee's observations appear in Part and our specific recommendations are contained in Part II. In areas where no specific recommendations are made, we generally accept the budget as proposed. As a group of volunteer citizens, the City Commission-appointed members of BRAC could not have completed their chartered mission without the expert knowledge, explanations and cooperation of the City's senior management staff. We sincerely appreciate the assistance of all City staff members in this undertaking We hope that this report meets the needs of City Residents, the City Commission and oth int e ed PC} 'es as it sheds light on the annual budgeting process. " ?  Budget Review Advisory Committee Report on Proposed FY 15 Budget KEY HIGHLIGHTS of PROPOSED FY 14/15 BUDGET • Budget is $29.8 million, an increase of $2.6 million over FY 13/14. • Capital Improvement Plan reporting methodology changed from the prior year. • Mickel Park capital item is approximately $1.5 million or more than 50% of the budget increase. It is budgeted entirely in FY15 and assumes debt of $744,200 with an additional $182,099 in interest payments over 15 years. • The Unassigned Fund Balance is reduced to 17% of anticipated annual General Fund expenditures. • There appears to be an absence of a strategic budget item in FY for overall citywide security improvements or economic growth. PART I –OBSERVATIONS 1.  The FY 14/15 Proposed Annual Budget is $29,793,191  Increase of $2.6 million (10%) over FY 13/14.  Personnel costs are $11.5 million or $41% of total  Other operating expenses are $9.3 million or 33% of total.  Largest departments expressed as a percentage of the General Fund expenditures: FY 15 FY 14 Change  Police Department 39.0% 40.9% - 1.9 %  Leisure Services 30.1% 25.0% +5.1 %  Community Dev. 5.6% 6.0% - 0.4 % 2.  Fees/Taxes (non ad-valorem) 10-Yr Trends Fees/Taxes (non ad-valorem) 10 Yr. Trends - Percentage INCREASE over 10 Yr. Period 83% 47% 57% 72% 36% Sewer Water Water Fire Electric Charges Sales Utility Tax Assmnt Utility Tax  Taxpayer fees have steadily risen over 10 years and increases are expected to continue.  Consider these trends in relation to millage rates set by City.   3    Budget Review Advisory Committee Report on Proposed FY 15 Budget 3.  Ad Valorem Tax Revenue - Projected increase = $ 422,715 (Budget based on June 1 estimate of 9.38% increase in property value. (Final increase is 10.11%) Proposed Values FY 13/14 FY 14/15 June 1 Change value Gross Taxable Property $ 930,277,805 $ 1,017,574,148  $87,296,343 Value WM operating Millage Rate 6.2166 6.0987  -0.1179 Gross Revenue WM mil. rate $ 5,783,165 $ 5,957,644  $ 174,479 Debt Ser. Parks GO Bond 0.2381 0.2192  -0.2192 Debt Ser. City Hall GO bond 0.4772 0.4393  -.04393 Total Millage 6.9319 6.7572  -0.1747  Consider county property tax rates will also increase. 4.  Building Permit Revenue – Projected at $722,500. Increase of $235,000 or 54%.      The Metropolitan residential project is $206,800 or 88% of the increase.  Other projected building permit revenue is $28,200 or 12% of the increase.   5.  NEW Railroad Issues - Budget includes $10,000 to fund RR related issues. 6.  Mickel Park (MP) Repurposing = Projected funding requirement is $1,470,000.  The cost of this project is a budget spike as it is proposed as a one-year City spending priority.  Budget uses most of all accumulated and projected culture/recreation and public safety impact fees.  Original budget projection was $400,000 over 3 fiscal years (FY2014-2016).  The MP cost plan provided to the BRAC did not list the implementation steps and timeframes.  Incorporate an overall park security strategy in the total cost plan and timetable.  Funding sources are $725,800 from general funds (49%) plus a loan of $744,200 (51%). MICKEL PARK REPURPOSING – CITY RECOMMENDED FUNDING PLAN Total Funding Potential Up-Front Funding Sources FY 13-14 FY 14-15 by Source General Fund Reg. Appropriation 100,000 100,000 200,000 ✔ Water & Sewer Fund 100,000 100,000 200,000 ✔ Culture & Rec Impact Fees 55,000 175,000 230,000 ✔ Public Safety Impact Fees 40,000 40,000 49% Grants Recd. to date ($ Rec’d after paid) 55,800 55,800 51% Bank Loan 744,200 744,200 Accumulated Funds 350,800 1,470,000 1,470,000 7. Financial Plan Management  Unassigned Fund Balance (UFB) reduced to 17% from 20% Excess UFB = $438,000 will be added to the General Fund.  UFB is proposed to be 17% minimum in subsequent years also.  Change to the 5-Year Capital Improvement Program (CIP) reporting methodology  Misc. Grant Fund deficit of $157,568 from 2001. Transfer $25,000 to reduce.   4    Budget Review Advisory Committee Report on Proposed FY 15 Budget 8.  Pay and Benefits  Health Insurance $ 89,356  All Employees pay raise 3% $ 185,590  Merit Pay 0%-3% $ 83,450  WM Pension contrib. required $ 38,958 2.4% increase  FRS Pension contrib. required $ 145,319 19.3% increase  Vacation Pay Buyout $ 69,700  Sick Pay Buyout $ 62,700 Totals $ 675,076 9.  Staffing – 3.65 FTE’s budgeted with resulting total annual cost of $200,485. 10. Budget Review Advisory Committee (BRAC) Items  Guidelines supplementing Res. No. 1744 were prepared, approved and previously issued to provide guidance on handling of BRAC requests.  Timing of BRAC committee member appointments and length of terms were amended to more closely coincide better to overall City budget process.   5    Budget Review Advisory Committee Report on Proposed FY 15 Budget PART II - RECOMMENDATIONS RECRUITMENT, RETENTION and TRAINING #1 – Rename “COLA increase” to “pay adjustment” or “general increase” to more accurately characterize this item. A maximum of 3% is budgeted for FY 15. #2 – Do not reduce or reprogram training funds allocated for citywide training needs. CAPITAL, SECURITY and TECHNOLOGY #3 – Mickel Park – Budget the Mickel Park costs over the estimated construction period. The estimated construction period includes bidding time, plans design/permitting process, grant approval, and related conditions. This period is essentially from project approval by the City Commission until “ribbon cutting”. #4 – Retain the new accounting/reporting methodology for long-term capital items to ensure consistency over the coming Fiscal Years. #5 – Develop and employ budget planning tools such as development of a: a) Master Plan for citywide park security. b) Master Technology Plan c) 5-Year Capital Asset Replacement Plan (CARP). d) 5-10-15-20 Year Major Initiative Plan (MIP) = (bike paths, sidewalks, train station, parks expansion, etc.) e) 5 Year Railroad Reserve Fund Plan and increase FY 14/15 funding to $25,000. #6 –Do not fund License Plate Recognition System - ($26,630). STAFFING #7 – Fill all positions requested this year except for MP rec. leader. Recommend filling: 1 PT police investigative aide $ 35,596 1 FT Librarian II $ 77,027 1 Convert PT Maintenance worker to FT $ 35,506 2 PT Rec Leader I Rec Operations $ 39,283 Total FY14/15 funding $187,411 OTHER FUNDING #8 – Non-Departmental a) CAAB – Fund $14,500. Neighborhood associations are independent from City government and should not receive taxpayer funds ($3000 requested). b) Fund the charities as requested on the condition their representative(s) make a formal request at a public City Commission meeting.   6