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09-12-2005 - Special Budget ~ ..."", CITY COUNCIL OF EDGEWATER SPECIAL MEETING SEPTEMBER 12, 2005 7:00 P.M. COMMUNITY CENTER MINUTES CALL TO ORDER Mayor Schmidt called the Special Meeting to order at 7:00 p.m. in the Community Center. ROLL CALL Mayor Donald Schmidt Councilman James Brown Councilman Dennis Vincenzi Councilwoman Harriet Rhodes Councilwoman Judith Lichter City Manager Kenneth Hooper City Clerk Susan Wadsworth Paralegal Robin Matusick Present Present Present Present Present Present Present Present INVOCATION, PLEDGE OF ALLEGIANCE There was a silent invocation and pledge of allegiance to the Flag. MEETING PURPOSE The purpose of the meeting was to hold public hearings (1st Readings) on Ord. 2005-0-47, adopting final millage rate of 6.45 mills per $1,000 of assessed taxable value and Ord. 2005-0-48, adopting final budget for fiscal year 2005/2006. Paralegal Matusick read Ord. 2005-0-47 into the record. City Manager Hooper made a staff presentation. He informed Council tonight is the first public hearing of two for adoption of the final budget. They are going to talk about the millage and talk about the budget. The second public hearing will be held September 26th. City Manager Hooper stated when they last had a conversation about the budget in a Work Session they went through and described several issues and how they arrived at where they are and what they are planning to do from that point. He stated he described at that time we were half a million dollars out of '-" ...." budget. Several events have occurred since then. Each department head was challenged with a five percent reduction across the board, that got them about $400,000. He stated there is an overall reduction in travel. He has eliminated any over night, out-of-town travel. The only exception would be for those individuals that have certificates. There is a little bit for Council travel but Volusia Days has been eliminated to only one Councilperson attending. They have also reduced other types of travel. Promotional activities have also been reduced. He also spoke of a reduction in books. There will be no legal books purchased. Thirty thousand dollars has been cut from the Economic Development Board budget. He spoke of adding personnel to the Fire Department to reduce overtime. He spoke of sidewalk maintenance that will come out of the development or impact fees that will be brought forth by developers. He spoke of if we have a retirement of one of the sergeants in the Police Department, they will probably freeze that for a period of time to increase some revenue. There is a good discussion of an administrative function in the Police Department being unfunded. That is probably the one that will have the largest repercussion that has an actual layoff that would occur. Resurfacing they have brought down from $500,000 down to $303,000. Out of that money they are also doing Travelers Palm Drive in the amount of $168,000 before the end of the month so they just reduced into next year's budget by that same amount. City Manager Hooper then went over the budget message regarding Taxable Values, Problem Areas, Specific Budget Issues, Increase of Staff, Water and Sewer Enterprise Fund, Stormwater Enterprise Budget and Awarded Grants. (Attached) City Manager Hooper recommended another year at the current millage rate of 6.45 mils. City Manager Hooper then went over Page 5 of the Preliminary Budget for Fiscal Year 2006 regarding the Summary of Funds. Councilwoman Lichter asked City Manager Hooper where the Gas Tax is. City Manager Hooper informed her it is into the General Fund Budget. We use it for a lot of resurfacing and for maintenance. We get about $450,000 to $480,000 of the Local Option Gas Tax which comes back to us. They are eligible to use that for anything related to roadways. City Manager Hooper then went over Page 10 - Millage Rate Analysis of the Preliminary Budget. Page -2- Council Special Meeting September 12, 2005 '-" ..."" City Manager Hooper then went over Pages 13, 14 and 15 - General Fund Budget Summary. City Manager Hooper then went over Page 26 - Capital Expenditures. City Manager Hooper then informed Council the preliminary budget has the same current millage rate and the overall dollars have increased about $850,000 to the General Fund from taxes. City Manager Hooper commented on the Revenues have indexing, meaning October 1st these go up by a CPI number, which is about 3.4 and the other number for impact fees goes up about 4.2 or 4.3. Those numbers have been up as of April last year and Council will see that jump even more. He informed Council we are probably the only local city that has an annual indexing on rates and the most important is on the development fees. Councilwoman Rhodes asked about the shuffleboard clubhouse and shuffleboard courts with lights and having to get insurance. City Manager Hooper stated this is FEMA money coming back to the City to replace and we also have insurance coming back. There is about $500,000 worth of repairs and replacements the City is doing. Councilwoman Rhodes clarified if there were things they wanted to take off the capital expense list in order to lower the millage rate there would be no point in taking the shuffleboard items off. She spoke of the revenue being received for them and not being able to use the money for anything else. City Manager Hooper informed her that was correct. There is a portion that is not paid by FEMA. There is about $100,000 the City will have to pay. Mayor Schmidt asked if the difference can be covered by recreational impact fees. City Manager Hooper informed him no, those are replacements. Recreational impact fees are only for new and improved services, not for replacements. It is not eligible for impact fees. If they were expanding the number of courts they could take that out of it. They are putting back the same number of courts and the same square footage of a building. Councilwoman Rhodes then asked about the computer software for Building, Planning and Code. City Manager Hooper explained those are being paid for strictly out of building permit fees. Councilwoman Rhodes stated she is trying to find something that could help them reduce the millage rate. Page -3- Council Special Meeting September 12, 2005 '-" ...".; Councilwoman Lichter questioned the Library being a County establishment but questioned if the parking lot is ours to fix. City Manager Hooper stated it's two phases. The parking was ours to fix for an expansion. The one the City built across the street to the west is ours. The County maintains the building. We maintain the parking and drainage that is outside. He commented on the temporary fix done to the parking lot. Any money in the budget for repairs now would be to go back and dig it up and repair it. Councilwoman Rhodes stated the $105,000 even though it comes out of building permits that still figures into the total budget figure. City Manager Hooper explained you can't use building permits for anything other than the building department and the support of the building department. City Manager Hooper commented on it being difficult for the Council to find something to cut because the budget has been sliced to the bone. He then commented on the only thing Council has are reserves. If they wanted to go to the reserves, he feels this is futile at this point. That is the only thing Council could remotely cut without either major dipping into service or reduction of service to the public. There was a brief discussion regarding the mid-year budget review process. City Manager Hooper commented on this being an appropriation of funds listing how they would like to spend the money. Mayor Schmidt expressed concern with cutting $30,000 out of the Economic Development Board budget. City Manager Hooper commented on the money for trips for the board members from last year that was not used. He also spoke about setting aside dollars because we share the position with New Smyrna Beach for an Economic Development Director. Both of those to date have spent $10,000 out of the budget and that is what they went with. He has taken the money and put it in reserves. If something comes along and there is a need to spend money, that will come back to Council and they can take those dollars from the reserves. If it were budgeted in that department it can be moved anywhere through the General Fund. When they are putting it in reserves, it will come back to Council asking them to take it out of the general fund reserve before it goes to a different department. Page -4- Council Special Meeting September 12, 2005 -- ..."", Mayor Schmidt doesn't want to restrict them. City Manager Hooper feels they aren't doing that. If there is an opportunity or need to they can reallocate some of those dollars on a case-by-case basis. Councilwoman Rhodes asked why our impact fees don't earn any interest. City Manager Hooper informed her they earn interest but it is a fairly small amount. Finance Director Jon Williams explained we operate under a pooled cash system right now and at the end of the year they allocate interest. Councilwoman Rhodes asked if there is a proposed amount for 2006. Mr. Williams explained it is guess work at this point. It is better to tell the Council nothing and get a little bit at the end then to come in and shoot high and not have anything. City Manager Hooper referred to Page 21 and further commented on the Economic Development Board Budget. Mayor Schmidt opened the public hearing. The following citizens spoke: Mike Visconti, 316 Pine Breeze Drive, stated he is interested in the garbage collection. He suggested we go from two garbage pickups per week to one pickup per week with a standard container throughout the City. He feels this would save half of the budget in the long run. He spoke of only having one pickup per week in Stratford, Connecticut where he came from. He lives in Meadowlake and only brings his trash out once a week because he doesn't accumulate that much garbage. City Manager Hooper stated every time they have had the discussion about privatization that is one of the big issues. By far people want two pickups, they want the days they have and they want their own buddies as garbagemen. Councilwoman Lichter feels this is something the citizens seem very satisfied with. She didn't agree with him regarding senior parks only having one pickup. She lives in a community with over 500 homes and every Monday and Thursday there is plenty that is put in front of the homes. Councilwoman Rhodes mentioned holding a public hearing on it to see how the residents feel about it. Page -5- Council Special Meeting September 12, 2005 '-' ...., Domdnic Capri a , 606 Topside Circle, questioned why we are only receiving 80% of the funds from FEMA when it was passed that it be 90%, 75% FEMA, 15% State. City Manager Hooper explained the difficulty has been trying to reconcile all of the record keeping FEMA wants. They did make what he feels was a political statement, that it would go from about 80 to 90 at about the time we had the elections. It sounded good but the roadblocks to get you to 90% are impossible to achieve. Jon and his staff have been working, FEMA supplied some individuals to help them get there. He commented on a variety of issues FEMA has. The deal is going to be somewhere between 78% and 80%, which is what they are going to get back. Mr. Capri a stated he assumed the fact that we used our own people on garbage pickup. That was in last year's budget so why should that be a problem today. They had to spend that money in last year's budget anyway. City Manager Hooper stated you aren't just talking of not just their regular hours but the overtime as well. For the three storm events, we used our people very quickly to clear the roads and make way to get the power restored. The City got reimbursed for the first seventy-two hours. They had a choice, either am I getting reimbursed or opening up roads to the public and they did the obvious answer and opened up as many roads as quick as we could. Councilwoman Rhodes stated she didn't think that is what Mr. Capria is asking. She stated the money was spent on our people was spent in last year's budget so why is it affecting this year's budget. City Manager Hooper stated reimbursements. You spent it last year. It came out of the general fund reserves and depleted the $1.5 million down to zero so it impacts this year because you are trying to build it back up. Councilwoman Lichter feels maybe they should be asking for more from FEMA. City Manager Hooper stated we have. We have been appealing and going through the process of constant updating. He stated they have probably changed program managers five times. Every time it changes hands you start over. They change the rules. Councilwoman Rhodes feels they have to budget like we aren't getting any money from FEMA. City Manager Hooper stated this budget has what FEMA has signed off on and agreed. Page -6- Council Special Meeting September 12, 2005 -- """'" David Chess, 209 Oak Branch Drive, stated he was in Deland today and picked up a copy of the Deacon. It was interested to him to note DeBary's tentative budget which is $21 million and they decided not to roll back but they are at 2.5% millage rate and he thought this City Council should take a look at that and ask ourselves why we are at 6.45. Councilwoman Rhodes stated DeBary doesn't have half the services we do. That is part of it. John Cordeiro, 1515 Pine Tree Drive, stated he happens to have a copy of Deltona's budget and he is sure the Council has looked at it and he is sure they would have to be ashamed of themselves to see what Edgewater's budget is and see what Deltona's it. Deltona is going to have a $4.2 million reserve and they are going to build a $1.2 million fire station and are going to supply it with $450,000 for equipment and nine new firemen. He thinks there is something wrong with the way the City is handling the taxpayers money. He feels they should take a trip to Deltona and find out. Their millage is only 4.15. There is something definitely wrong. Councilwoman Lichter stated when Florida Shores went in there were no roads and no sewers. When that got mandated to be done by the State the rest of us in our tax base are paying a 1/3 of that price. Each neighbor on both sides of the street in Florida Shores is paying a 1/3 for their roads to be paved and 1/3 for their sewers to be put in. The rest of the City are picking up the other 1/3. That is part of it. We aren't doing that with developments any longer. They are paying for themselves. The handshake or however that large development went in is part of the reason that is so. Mr. Cordeiro then commented on flood control and all of the canals in Florida Shores. He questioned this helping flood control. He stated they are all full of trees and branches and if we ever had a Katrina here Edgewater and Oak Hill would be history. He asked if there is any way the City can clean these out. Mayor Schmidt informed him the City is out there every day working on ditches. Mr. Cordeiro feels if they are all clogged up with trees and branches it is going to be a problem if we get a bad hurricane with a surge. Mr. Cordeiro stated even with the roads and sewers it still doesn't justify what Deltona does and what this City does. There is definitely something wrong here some people that are running the finances with the taxpayers money. Page -7- Council Special Meeting September 12, 2005 '-' ..." Councilwoman Lichter informed Mr. Cordeiro the Councilmembers are taxpayers too. Councilwoman Rhodes stated the millage rate was more before the current Council was here. City Manager Hooper stated there is a subsidiary incurring. It runs out and probably has another six or seven years and you will see some of this dropping off but there is a large subsidy and well worth it. Part of that is being paid for by the City overall for it's millage rate and Deltona doesn't have the same level of service. Debra Rogers, 510 S. Riverside Drive, stated initially the shuffleboard clubhouse had to be knocked down and cleaned up within seventy-two hours so we could get 100% money from FEMA. She heard later we are going to get 80% money because we aren't building the shuffleboard courts at Kennedy Park but at Rotary Park instead. She asked if that is the reason we are only getting 80%. City Manager Hooper stated it is a depreciated amount. Those shuffleboard courts were put in twenty years ago. FEMA reimbursed 100% of what was submitted within the seventy-two hours of what they were worth. Rebuilding costs a lot more. Ms. Rogers asked how many times they submitted the worksheets to FEMA before they kicked them back. Finance Director Williams stated we have submitted several variations of project worksheets. They compile the costs and submit them. They corne back and said you have classified this expense as an emergency protective measure. It's really not considered emergency protective measure and it's considered this and we are going to disallow it. So you have to go back through recompute and resubmit and if they find something else the process starts all over. Ms. Rogers asked if we have certain personnel on staff that are familiar with the FEMA forms so that in the future if this happens we don't have these kickbacks and the possibility of losing percentages. Mayor Schmidt asked if it was the FEMA people that were filling out the reports and turning them in for the most part. We gave them the information, they filled them out, turned them into their own organization and their organization would kick them back and ask for other information. Page -8- Council Special Meeting September 12, 2005 ...,. '" City Manager Hooper commented on the FEMA staff constantly changing. City staff attended classes. It was very discouraging. He spoke of being treated better than most other cities. We got a higher percentage than most of the other cities around that were able to get to those forms. We were able to land some things outside, some preventative measures. Ms. Rogers commented on the millage and the one percent increase in 2002. It was an increase, a large part of it had to do with the shortfall in the pension. Last year they were given back a half a point. We still have that half a point sitting there because of the pension shortfall from 2002. What is going on with that, especially now that we have another shortfall in the pension. She believes this has a large part to do with this budget and the millage staying exactly as it was last year. City Manager Hooper stated the changes they are looking at are either ending the pension plan as we know it today, which is a very significant change of doing business, hiring consultants to look at better investments or making recommendations to change those plans. Those are the steps we are taking. Ms. Rogers asked in our current budget do we have numbers to pay for these consultants. City Manager Hooper informed her yes. Mayor Schmidt closed the public hearing. Councilman Brown feels the budget has been cut to the bare bone. He doesn't see where they can cut anymore on it. He likes the idea of having $2.68 million back into the reserves at the end of the year. He feels this is encouraging. Councilman Vincenzi stated he would be asking questions about the reserves in the next week or two. When the city meets with financial problems, it's difficult to maintain the services the way we have them and still keep taxes level or even reduce them. When that type of situation comes up, he feels what is needed is a little radical alignment. One of the things that everybody doesn't want to touch is trash collection but that is one area where people could save a lot of money and the City could save a lot of money. Especially in the coming years because we are expanding so much and that is one thing that will have to expand along with it. That is one of the easiest things the City can privatize out. He feels the City could get the right contractor for a significant reduction in cost and you could eliminate that department at $2 million per year. Page -9- Council Special Meeting September 12, 2005 ~ ~ City Manager Hooper commented on a summary done by Ponce Inlet. Pretty much the average around was $12 or $13. Ours is around $19. There is $2.2 or $2.3 million in the solid waste refuse fund. The savings wouldn't be to the City's tax fund because that is an enterprise fund but there would certainly be savings to the individual people. Councilman Vincenzi stated so they would see a little increase in taxes but they would see a reduction in other services. He feels this is something that needs to be looked at along with other areas as well. He feels the only thing that should not be touched is Police and Fire. They are needed for public safety. They are there and do a good job and they should get what they need to operate. Councilwoman Rhodes stated we did look privatizing garbage and this room was full of people in an uproar. They didn't want their garbage messed with. Councilman Vincenzi stated sometimes you have to make touch decisions. Councilwoman Rhodes stated but you represent a population and you have to do that to the best of your ability. Councilman Vincenzi stated you don't know that those 200 people represent the sediment of the people in Edgewater. You think you do but you don't know for sure. Mayor Schmidt asked City Manager Hooper to put this on his calendar. Councilwoman Rhodes stated in 1998 our millage rate was 6.44 mills. Right now our millage rate is 6.45. Over those years it's gone down and it's gone up and it depends on what is going on in the City, what we need in order to make things work, to provide the services that our citizens rely on and how much it costs to do that. More than anybody, she would really love to take this back to the 5.95 but she doesn't think it's feasible to do that. She feels they put themselves in a bind with the Charter if they do that because it comes out of our reserve funds and the Charter, which they swore to uphold, requires that we have those reserve funds. She feels they don't have a choice. Councilwoman Lichter commented on being a senior and having served this City, either on the Planning and Zoning Board or on Council, for the last fifteen years. She thinks this is the best they can do at the time. Page -10- Council Special Meeting September 12, 2005 .... .."", Councilwoman Lichter feels because you are budgeting it doesn't mean you have to spend it but at least it's there if we need it. The City was, when she moved here, not as attractive as it is now. That costs money. She feels the City has come a long way. She will be voting for this budget because she feels a lot of effort has gone into it. If she wants to go to the State meeting with the other representative she will pay her own way because she feels that is a very important one. Mayor Schmidt thanked Finance Director Williams for all of this hard work. He spoke about a few years ago when they said to the voters we needed 6.95 mills and went up a full mill that year and they said if they give that to the City we will spend it wisely and get it back to the citizens over the next few years. He would love to sit next to Councilwoman Rhodes and say 5.95 this year. He said when they asked for the extra mill they also didn't ask for three hurricanes. He asked if they split the difference from where we are now to the rest of the mill, can a budget be worked out with a 6.2 millage rate. Councilwoman Rhodes asked what that would give them in the reserve fund. City Manager Hooper stated it is about $140,000 to $150,000 out of the reserve account. He would like to get Council to approve this tonight, tell him they want him to look at that and bring back to Council at the second hearing and let them know if they wanted to do it at that number here is what would occur. He reminded Council, they can not raise the number but they can always go down. CounciLwoman Rhodes moved to set the miLLaqe rate at 6.45, and CounciLwoman Lichter incLuded approvinq Ord. 2005-0-47 and Ord. 2005-0-48, second bv CounciLwoman Lichter. Mayor Schmidt confirmed that City Manager Hooper would be bringing back figures for a proposal of 6.2 mills. Mayor Schmidt asked Councilwoman Rhodes if it was okay to include that in her motion. Councilwoman Rhodes agreed. The MOTION CARRIED 5-0. ADJOURNMENT Mayor Schmidt called a ten-minute recess before the Regular Meeting. Page -11- Council Special Meeting September 12, 2005 ~ The meeting recessed at 8:02 p.m. Minutes submitted by: Lisa Bloomer Page -12- ....", Council Special Meeting September 12, 2005 ...... ....., THE CITY OF EDGE WA TER POST OFFICE BOX 100. EDGEWATER, FLORIDA 32132-0100 INTER-OFFICE MEMORANDUM EDGEWATER, FLORIDA TO: Mayor and City Council I j ~Lk FROM: Ken Hooper, City Manager JI.'r C.M. NO: 2005-129 DATE: September 9,2005 SUBJECT: FY 2005-2006 Budget Attached is the proposed City of Edgewater budget for the fiscal year October 1, 2005 through September 30, 2006. Staff is pleased to present a general fund budget that is balanced and is consistent with the Charter requirements concerning unrestricted reserve fund balance. Several assumptions and issues concerning this proposed budget should be described. 1. TAXABLE VALUE The acreage of the City of Edge water is expanding through voluntary annexations. The City has experienced a growth rate of approximately 200 new housing units for FY 2004-2005. The City is also experiencing growth of commercial/industrial development. The US 1 corridor is undergoing in-fill development and is expected to receive redevelopment pressure as the vacant property is developed. With the completion of the widening of SR442, development pressure has increased particularly around the 1-95/SR442 interchange. Taxable values for the City have increased 20.72% during the current fiscal year. This is a significant increase in value. The City has averaged a 9.38% increase in taxable values during the period 1998-2005. The increase in taxable value is expected to increase with the development of Park Towne Industrial Center, US1 corridor, I-95/SR442 interchange and the area west ofI-95. Annexations and land use changes have created the potential of 10,000 new housing units and 1.5 million square feet of commercial development over the next decade. The increase in taxable values includes new construction and increased value to current properties/structures. New growth for the proposed budget is 250 new housing units and 25 acres of industrial property located at ParkTowne Industrial Center. (Note the 20.72% increase for FY2005/06 does not include any development or sales in ParkTowne Industrial Center as they will be included in next year's taxable value.) eM 2005-129 I:\liz_ docs\memo\FY2005-06 Budget "., ...., FY 2005-2006 Budget September 9, 2005 Page 2 In summary, the City has invested in infrastructure (Airpark Road and ParkTowne) and is witnessing the results in increased taxable value. This will continue to escalate as ParkTowne is developed. Based on improvements to the Land Development Code, the City is gaining taxable values in new subdivisions that are modem, self-supporting and paying their fair share for the cost of growth. The City of Edge water has the highest impact fees (growth driven revenue) in V olusia County. The City of Edgewater passes the cost of development review, engineering inspections and certification directly to the developer. 2. PROBLEM AREAS a. Hurricanes 2004/2005 - The City of Edgewater spent approximately $5.5 million in debris removal and structure repair/replacement due to the three (3) hurricanes. FEMA will reimburse the City approximately $4.0 million and the City has depleted approximately $1.5 million from its general fund reserves. The proposed budget contains $1.5 million as an appropriated general fund reserve. The City issued approximately 2,000 building permits for roof repairs and other structural repairs due to hurricane damage. The City has taken strong preventative measures (generators, swale cleaning and weather-proofing) to reduce future storm damage. Our citizens were rewarded with a very proactive storm response effort. b. Pension Plans - The City has in place four local-plan pension plans for the employees. · Police Pension (Defined Benefit) · Fire Pension (Defined Benefit) · General Fund (Defined Benefit) · General Fund 40lA (Defined Contribution) All Defined Benefit Plans are based on the principal that when an employee retires from City employment, the employee will be entitled to a retirement benefit package that is based on the number of years of service, a fixed multiplier and an average of the employee's most highly compensated salaried years. The funding necessary to maintain a functional benefit plan is derived from investment earning of the funds within the plan, a contribution by the participating member and the City provides the balance of the revenue to keep the plan fully funded. In theory, the earnings from investing the fund balance of the planes) should provide most of the funding with the employees contributing a range of2.5 to 6% and the City contributing approximately 15%. This has worked successfully for several years until investment earnings dropped substantially following the 9-11 stock market drop. To keep the defined benefit plans fully funded, the City currently must contribute 42% of annual salaries for the general employees' plan, 29.79% for the police plan and 16.4% for the fire plan. eM 2005-129 I:\liz _ docs\memo\FY2005-06 Budget .,.... ..""" FY 2005-2006 Budget September 9,2005 Page 3 The defined contribution plan is not based on market (interest earnings) conditions. The City contributes 12% of the employees salary to the defined contribution plan and the employee can contribute based on their individual financial conditions. The employt:e also selects how their retirement funds are invested. The City's management team will be reviewing options to better control this escalating expense. Bogdahn Consulting, an independent consulting firm, has been retained to review the three (3) defined benefit plans. c. Investment Income - The City invests its funds in conservative/sound revenue producing accounts. During the recent "slow-down" of the economy since the 9-11 event, the rate of return has steadily dropped to approximately 1.5% or less. Prior to 9- 11, the City gained an earning of 6-8% on its investments. This is a substantial loss of annual revenue which effects the general fund. c. Insurance Rates - Health insurance for the employees and their spouses continue to rise. The annual increase for the proposed budget is 5%. This has a significant impact on the City's budget. d. Fuel Costs - The cost of fuel continues to rise and will cost approximately 25% more for FY2005/2006. e. Construction Costs - The cost of infrastructure improvements (roads, utilities, parks, resurfacing and concrete) continues to rise at a rate of approximately 2-3% per month. 3. SPECIFIC BUDGET ISSUES Capital ExpenditureslReplacementslReserves · attached list 4. INCREASE OF STAFF There is a need to expand the garbage pick~up by the addition of another route. This will require the addition of 1 driver and 2 pick-up personnel. This addition of a new route will require a new garbage truck. In 2005 City Council approved the creation of an Animal Services Administrator, Residential Building Inspector, three (3) additional firefighters, Administrative Secretary for Environmental Services, Maintenance Worker for Leisure Services, Community Service Officer and Wastewater Collections Service Worker. 5. WATER AND SEWER ENTERPRISE FUND By the beginning ofFY2006, the reclaimed rate system improvements (Phase I) and the radio read meter installations program will be complete and operational and will provide for increased revenue by accurately metering both potable and reclaimed water usage. The new budget includes construction of two (2) new potable water production wells and the acquisition of approximately 18 acres from V olusia County to serve as a storage and eM 2005-129 I:\liz_docs\memo\FY2005-06 Budget ~ """" FY 2005-2006 Budget September 9,2005 Page 4 repumping station for both potable and reclaimed water, as well as provide a site for the new animal facility. Improved lime sludge handling facilities and disinfection system improvements are budgeted for the Alan R. Thomas Water Treatment Plant. 6. STORMW A TER ENTERPRISE BUDGET Based on annual revenues and expenses, this fund is also programmed to be a deficit and will require the use of general fund reserves to balance the fund. Currently 50% of the stormwater utility fee is dedicated to the debt service for drainage improvements within the Florida Shores subdivision and 50% of the stormwater utility fee is used for the city-wide stormwater maintenance program. The City will continue with its Master Stormwater Plan this year but without an increase in storm water revenue, no funds will be available to implement the master plan. Where benefits to regional stormwater problems can be demonstrated, the SJRWMD and FIND offer matching grant funds. The City is currently using a SJRWMD grant to fund the current segment of the Master Stormwater Plan. During FY2005/2006, the City must expand the city-wide master stormwater plan to include the recently annexed areas. The cost of the stormwater plan is passed on the new development. Additional funds for capital stormwater infrastructure projects are available with matching funds and the City has a grant application pending with the. SJR WMD for the Eastern Shores (Rowe) Industrial Park area.. 7. AWARDED GRANTS The City has received approximately $3 million in grants from federal, state, County and special districts during FY2003-2005. (See attached for specific awards.) In summary, the proposed general fund budget is sound and we have proposed reimplementing programs (resurfacing and vehicle replacements, funded reserve balance) that were eliminated or reduced during FY 2002/2003 and FY 2004/2005 due to hurricanes. I recommend another year at the current millage (6.45 mill) and predict that revenue will continue to increase during FY 2005- 2006 allowing the option of a reduced millage rate for FY 2006-2007. KRH:ejm Attachments eM 2005-129 I:\Iiz_docs\memo\FY2005-06 Budget "-" GENERAL FUND CAPITAL EXPENSE UPGRADE BLDG/OFFICE-NEW DOORS ETC CITY HALL - TELEPHONE SYSTEM, HANDSETS, WIRING ETC FILE SERVER - FIRE DEPT ANTIVIRUS FOR CLIENTS, MAIL SERVER, SERVERS (RENEWAL) OFF SITE WEB SITE AND DOMAIN NAME 2 CISCO CATALYST 3750-24TS-S SWITCH @2900 5 SLR-I00 TAPES @ 100 2 FIBER OPTIC NETWORK TRANSCEIVERS @169 MISC. (CABLES, NETWORK CARDS, HARD DRIVES) SERVER RACK COMPUTER SOFTWARE - BUILDING, PLANNING & CODE 2005 FIRE GRANT (TANKER TRUCK) CITY MATCH -FIRE 4 CROWN VICTORIA POLICE CRUISERS 12 PASSENGER VAN FIRE FORD EXPLORER ANIMAL SERVICES F150 TRUCK COMMUNITY SERVICES F150 TRUCK BUILDING TOTAL FOR 5 YR LEASE FORD EXPLORER 4X4 POLICE TOTAL LEASE REPLACE 7 800 MHZ RADIOS Stair Chair UHF/VHF Radio for S-55 & R-57 Emitters for D-55, S-55, R-57 Monitor Upgrade for ETC02 FireCom System for New E-55 & R-57 FIRE GRANT 2005 CARRYOVER (FIRE GEAR) 800 mhz Radios (replacement) BUSH HOG MOWER MOWING TRACTOR MECHANICS TOOL BOX SHUFFLEBOARD CLUBHOUSE WSP RESURFACE (4) TENNIS COURTS SIDEWALK REPAIRS (APPROX. 50 LOCA nONS) LIBRARY PARKING LOT REPAIRS SHUFFLEBOARD COURTS W/LIGHTS RACQUETBALL COURTS JOHN DEERE 2653A 3WD REEL MOWER/EXTRA SET BLADES FORKLIFT SET TOTAL ....., 3,000 50,000 5,000 1,000 400 5,800 500 338 2,000 1,500 105,000 20,000 LEASE LEASE LEASE LEASE LEASE 54,104 19,720 2,000 2,700 1,200 12,500 2,900 2,730 3,500 2,700 17,600 2,000 120,000 14,000 8,000 6,000 217,000 96,000 29,525 1,060 809,777 '-' ""-tIll LEISURE SERVICES DEPARTMENT GRANT AWARDS FIND (03) Kennedy Park & Pier PORT DISTRICT (03) Dredge/Boat House/Dock ECHO (03) ECHO (05) CDBG (02/03) CDBG (03/04) Hawks Park Phase III Hawks Park Phase III-A ParkTowne Industrial Center Stormwater Improvements CDBG (04/05) Road Resurfacing (Riverside/Shangri-Ia) CDBG (05/06) FRDAP (05) Stormwater Improvements Hawks Park Phase III PEOPLE FOR DRUG FREE YOUTH (05) Day at the Park PEOPLE FOR DRUG FREE YOUTH (05) Hats for Baseball TOTAL FIND - Florida Inland Navigation District PORT DISTRICT - Ponce De Leon Inlet & Port District ECHO - Volusia County FRDAP - Florida Recreation Development Assistance Program CDBG - Community Development Block Grant (Federal) J:il$'c ~/'~ SEp () (I ~ y~() C/J-y .((}(}j' 114 t1I. '40~-9 $ 60,885 $110,165 $386,294 $ 83,175 $104,196 $105,564 $101,726 $ 96,639 $141,617 $ 4,000 $ 2,300 $1,196,561