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07-27-2007 - Budget Workshop CITY COUNCIL OF EDGEWATER WORK SESSION JULY 27, 2007 9:00 A.M. COMMUNITY CENTER MINUTES CALL TO ORDER Mayor Thomas called the Budget Workshop to order at 9:00 a.m. in the Community Center. ROLL CALL Mayor Michael Thomas Councilwoman Debra Rogers Councilman Dennis Vincenzi Councilwoman Harriet Rhodes Councilwoman Judith Lichter City Manager Jon Williams City Clerk Susan wadsworth Deputy City Clerk Lisa Bloomer City Attorney Carolyn Ansay Present Present Present Present Present Present Excused Present Excused 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 discuss the preliminary budget for fiscal year 2007/2008. City Manager Williams welcomed the Mayor and Council to their first budget workshop presenting the preliminary budget for fiscal year beginning October 1, 2007 and ending September 30, 2008. He then recognized the hard work of the directors, supervisors, deputy directors and employees in presenting a very good budget at this point in time recognizing all the challenges they have faced over the last year, specifically property tax reform. This budget has incorporated everyone's goals and objectives as a result of property tax reform and making sure the employees they have working today remain with them. It also 1 Council Workshop July 27, 2007 incorporated increases in annual wage adjustments and absorption of benefits. It was consistent with some of the Tier 2 objectives the Council identified in the Strategic Planning Report. It was a very well prepared budget that had received a lot of work on behalf of the departments. City Manager Williams then went through the attached Powerpoint by going over the Agenda, the Goal for Today, Major Challenges, Computation of Millage Rate, Projection Parameters, Council Consideration/Discussion with regard to the General Employee Defined Benefit Plan and the options of doing nothing at all or freezing the plan. Mayor Thomas assumed they were going to attack this problem first. City Manager Williams informed him they were. Mayor Thomas asked him if he had been able to discuss individually with each Councilmember. City Manager Williams stated he had some discussion preliminarily with a majority of the Council. This one item affects the entire budget so he felt it was necessary to bring this to the forefront so they could address it. City Manager Williams continued his presentation by commenting on terminating the plan and modifying the plan. Mayor Thomas stated the problem was when people retire and keep on working. At that point the employees are still accruing benefits and a percentage. That is the problem. City Manager Williams stated that is what he sees to be the largest problem, the additional accrual of the benefit above and beyond the normal retirement date. Councilwoman Lichter stated in terms of moderation they might be able to think of some perks to encourage earlier retirement. When she retired early from teaching, she was given $5,000 each year and was kept on the health program. She thought maybe that might be one other way to handle a modification. The point of working after you retire was totally new to her except here. When you retire, you retire and you find something else to do. She believed that some perks to encourage early retirement could be thought of also. Mayor Thomas stated he is a firm believer of not changing the rules in the middle of ballgame. He asked City Manager Williams if he had compared this City to other City 2 Council Workshop July 27, 2007 governments. He has never heard of being able to accrue percentages on your retirement after you retire. That was absurd to him. He was very familiar with the retirement plan because he had the option to DROP (Deferred Retirement Option Program) at 25 years. At that time he would have retired at 75% of his salary. He did not DROP and he worked 3 ~ more years so he retired at 83~% of his salary. He feels it is ludicrous for employees to keep accruing retirement benefits after they retire. He wasn't saying it was wrong for them to get their salary. He doesn't think that is right. City Manager Williams stated he has talked to the actuary and she has advised that they have many plans throughout the country that provide the provision for the retired work option but not the provision for them to continue to accrue the benefits. That was where the real cost came in. Mayor Thomas stated that was where they were losing the money. He doesn't want to terminate the plan. He would like to modify the plan. City Manager Williams stated the other quote they had that was on the dais to review would be to the extent that the participants would not be eligible before the age of 60 to retire. He feels this would have a major impact to employee morale. He then asked for Council questions? Councilwoman Rogers stated exactly what Mayor Thomas said is what she has said all along regarding this plan that people retire and get to receive the benefit and a current salary and accrue. As their salary increases that accrual amount increases as well. This has been a problem since as far back as she moved into the City. Every year it always seemed to be one of the big reasons why the millage rate was increased or adjusted. They went around with this last year at this time. She had asked if they could do some kind of calculations and accruals so they wouldn't have this big shock and she didn't see that that was done and here they are with a 100% increase. She asked if any accrual entries were done so they could prevent this large of a blow to their budget. City Manager Williams stated what they had done was reached out to Principal and told them they wanted estimates in writing so they have a better way of projecting what the costs would be to that plan. That was the information that they got directly from Principal. That was based off of their 2006 numbers and they had factored that in. From their perspective they have addressed some of those concerns. Accrual entries 3 Council Workshop July 27, 2007 they would not be able to do because it was the function of an actuary and the assumptions they use. Councilwoman Rogers felt way back when they could have estimated it in- house and they could have done something. They apparently did nothing and here they are. Property tax reform and all the other issues they have and now this. It doesn't seem to stop. It continues to grow and it is the only government that she was aware of that has this problem consistently. City Manager Williams asked for direction regarding how the Council wanted to proceed with modifying the plan. Councilwoman Rogers asked City Manager Williams if he had spoken to other governments to ask them what they do because they don't have the same problem as frequently and at this level that they do. City Manager Williams informed her nobody around them has this specific provision. It is rather unique in nature. Councilman Vincenzi stated they have been discussing this for a while and it has come up in public meetings. He is all for letting employees continue to work after they retire and for paying for increases in medical benefits and life insurance and absorbing that cost but this retirement benefit is ridiculous. He hasn't decided which option he would like to pursue yet. They have to look at it and see which one is going to be most suitable for the City in terms of freeing up those tax dollars that are being paid in an excessive manner and putting those tax dollars back to work in the form of capital replacement, filling positions that are vacant and things of that nature. He is all for reasonable increases in pay and reasonable increases in benefits. If they look at other government agencies they do 10%. They don't do 23% and they certainly don't do 44% or 45% retirement contributions. That is ridiculous and out of control. He thought they needed to discuss all of the options at further length. It looks to him like the modification would be the most reasonable because it had the least impact on the City and the least impact on the employees. He felt a 23% retirement contribution on the part of the City is still excessive. He felt that option looked to be the most reasonable to pursue at this time. It doesn't mean he wouldn't be looking for modifications in the future if things changed again. He thought modifying the plan with the option to 4 Council Workshop July 27, 2007 keep those benefits under control at a reasonable rate would be the thing to do. City Manager Williams stated with the modification that he feels was the most appropriate was scenario number one. He thought they may see over time that 23% decrease to the point that is maybe more appropriate with what is going on in the federal government. Councilman Vincenzi felt they also had to pursue other options. Money is tight. There was not a lot of money to throw around on incentive programs to retire. City Manager Williams stated on October 1st 2006 the required annual contribution was a little over $639,000. With the modification he was talking about it drops it 3% so they may see a 3% decline over the next several years which would bring back into line. Councilman Vincenzi stated in overall city contributions and asked why. City Manager Williams stated because they are no longer continuing to accrue that benefit. That is 100% of the problem. Councilman Vincenzi felt the way to do it was to get out of this gradually with the least impact to everybody. They don't have $7 million to terminate the plan. City Manager Williams informed Council there were 57 employees in the plan, most of them being the senior employees that have been with the City for a long time. Councilwoman Lichter asked how many employees were in the other plan. City Manager Williams hadn't broken that down by each plan. Councilwoman Rhodes thought the first thing to note was the reason that was at 48% was not because of the pension plan. It is because they changed the rules of the game. They had their assumption and they asked them to change that assumption. City Manager Williams stated to reflect what was actually going on with the plan. Councilwoman Rhodes stated they didn't come to them like Councilwoman Rogers suggested. They came to them and told them they owed them this money. They told them they didn't think their assumption was correct. Based upon what they think the assumption should be is why they have an increase of that amount. When these employees began working for the City this was their retirement plan. This is what they paid into all these years. Ever since this plan was written in the 1970's that clause has been in this plan; that they can retire and work and continue to accrue. By the same token she agreed with Councilwoman Rogers in the fact that she thinks once you retire your money goes into a Defined 5 Council Workshop July 27, 2007 Benefit Plan. She didn't think there was anything in the pension plan as it is written now that says it can't be that way and that they have to stay in that plan once they retire and start to collect that benefit. City Manager Williams stated there was no disincentive for them not to want to stay in the plan. Councilwoman Rhodes stated there was nothing in the plan that says they can't be moved to a Defined Contribution Plan after that. City Manager Williams stated there was nothing in there that says they can either. He felt they needed to approach that from a pure modification perspective. Councilwoman Rhodes stated so what City Manager Williams wanted to do was modify the plan by writing it into the plan that is now. City Manager Williams stated write into the plan that says an employee when they decide to exercise the option to retire work at normal retirement date, they no longer continue to accrue a benefit. At that point that puts options on the table. He felt they had some flexibility at that point in time but they have also provided a savings to all of the funds in the amount of $644,000. They have taken a benefit off the table in a sense it keeps everything intact. They change the rules of the game a little bit but not totally. They continue to accrue the benefits and go forth. He then spoke of freezing the benefit and having people that may be three years away from 25 years or age 55. If they freeze that is the benefit they have. He thought from that perspective those folks would like the opportunity to at least accrue benefits until they reach normal retirement date and then make some decisions at that point in time. To chop them off three years before they got there he felt would create some major morale issues. Councilwoman Rhodes asked about the people that already collecting and are still in the plan. City Manager Williams stated they would stay but the modification would include them as well. Councilwoman Rhodes stated they never had option when they retired. They didn't know it was going to happen to them. City Manager Williams agreed. Councilwoman Rhodes stated they didn't have option when they retired to go into another plan or decide to continue to work and not retire. City Manager Williams stated some of folks he has had conversations with recognize that would probably be in the best interest of everybody rather than freeze it or terminate it. They recognize that wasn't the provision but they also recognize they were not going to pass up on the opportunity. Councilwoman Rhodes asked why would they? It was written into the plan and it's their right. City 6 Council Workshop July 27, 2007 Manager Williams felt they had to look at what the overall good of everybody was at this point in time and the consensus he was getting it wasn't exactly what they wanted but looking at what the options were it was the lesser of all evils. Councilwoman Rhodes didn't feel that freezing the plan or terminating the plan was an option. She agreed with retirement packages. She felt they should come up with incentives for people to retire. She knew they were doing that in other cities. City Manager Williams stated the problem they have is they don't have the cash to offer for those incentives and that's a problem and that is one of the considerations and discussion items they have to identify. They could offer incentives such as paying their medical insurance for five years but he didn't know how many folks may take that. If they go through and offer incentives to this table and 50% of this table takes it they have accruals they need to pay for and they don't have the cash to pay for that. That is the other problem they have to deal with. Councilwoman Rhodes agreed the modification was lesser of all evils when all things are considered. She wanted everybody to understand this jump isn't something Principal did to us. This is something they did. Councilwoman Lichter stated sometimes in life you don't get at the end what you expected all along. Things change. The Federal government, State and City changes things. She taught for 28 years and gave 7~% of her salary towards her pension thinking she would have her husband's social security to add to that. One and a half years before she finished teaching they changed the law federally and she gets no social security at all where she could have picked up another job and got some credits. The City takes social security out of her $7,200. Sometimes you don't get at the end what you expect. You have to make that adjustment. She gets Part A from a dead husband, Part B of Medicare she sends to the government. That wasn't what she expected in life. Modification is going to have to be the answer to this in some form. They have a very unique wonderful thing that at the right time was right but now is not right because they can't afford it any longer. Many companies are wiping out what people were supposed to get. They are trying to involve the employees that are in this plan with the planning involved in it. Things are not always what they plan and this is probably one of those things. When they said yes to this type of plan, that they could work 7 Council Workshop July 27, 2007 and retire, they meant it. Maybe the circumstances in this City were such that it wasn't that attractive to have people come here to work. They have some of the best people there can be and she felt they could understand a modification. City Manager Williams thought he understood the consensus was for modification. Mayor Thomas stated they had 57 employees enrolled in this plan. He asked how many people had retired and taken advantage of the benefits at this time. Personnel Director Donna Looney estimated 25 or 26. Mayor Thomas confirmed that these employees that have retired, are still working and still accruing benefits was the problem. He had discussed this with some of the employees. They told him they would be foolish if they didn't take advantage of it and he didn't blame them. He thinks they know this is an exorbitant benefit. When you retire, you retire and you retire at that percent. If they are still putting a percentage after they retire, he doesn't understand how that went into effect. They are still giving them another percent. The plan, the problem is the ones that have retired and are getting it and the ones in the future. They have to draw a line in the sand somewhere. They changed the program several times in his 30-year plan. They have to the good for the majority of the employees. He was worried about the morale. He is an employee pro person. He knows what they are going through. They don't make a whole lot of money but they have job security and good benefits. When it is costing the City and taxpayers money he can't go with that. City Manager Williams stated he had done some calculations on absorbing this increase and in comparison benefit package as a percentage of payroll and they're approaching 95% in some cases as a benefit package. He thought most of the employees knew there was time for change. It's human nature to take what is out there that is given to you. From his understanding there was a consensus to move forward with modifications. They had a very narrow window. When they concluded the meeting he needed to pick up the phone and reach out to the pension attorney and tell them to initiate the process for modification so it could be incorporated into the budget for next fiscal year. With those modifications they are going to begin to address some 8 Council Workshop July 27, 2007 of the items they have discussed in great length previously, specifically the replacement of capital which was one of the essential methods by which they deliver services today. Councilwoman Rogers stated she was in agreement with the modification but at the same time they need to do something about these calculations. Even though it is modified it wouldn't guarantee they won't be in the same boat next year. City Manager Williams informed her that was something they were going to have to continue to work on. The emphasis from last year to this year was getting the termination study and the freeze study and really going through the discussions with bringing on the Board Attorney and finding out what they can do. This is a very sensitive subject and a very tough subject to approach and talk about. To get to this point if everybody recognizes a modification is essential to keep this plan in place they have just climbed a very huge mountain. He applauded the employees for addressing a very tough decision objectively in trying to figure out what was best for everybody involved. He would move forward with those discussions and modifications. City Manager Williams continued his Powerpoint presentation by describing Council Consideration/Discussion regarding Contract Negotiations. Councilman Vincenzi commented on the medical insurance. Right now they have some employees covered totally plus dependents. City Manager Williams explained a lot of that prior to October 1, 2004, if you were on board you could get 100% paid for yourself and up to 50% paid for your dependent. If you were hired after October 1, 2004, they only pay 100% for the employee. Councilman Vincenzi informed City Manager Williams that was something he wanted him to look at. He didn't know if that was monetarily feasible or not. That was something that never sat well with him. He feels employers should definitely cover employees but they should also offer an option for dependent coverage too. He wanted him to run some numbers and figure out what an additional cost might be if they covered all employees and gave the option to cover dependents at well. City Manager Williams informed him that was not the norm they see in other cities. Councilman Vincenzi stated that was the norm in any place he has ever worked. City Manager Williams stated it is a 9 Council Workshop July 27, 2007 changing norm. All the cities in Volusia County are not covering dependent coverage because of the exorbitant cost. Councilman Vincenzi stated the benefit of that is first of all they offer a little more to the employee especially the employees with families. The second benefit is that it equalizes everybody and they have the same option for the same coverage. Instead of half the workforce being totally covered and the other half only the employees are covered. They were talking about morale problems and dissention among the ranks. That is a point of contention along with differences in salary and retirement benefits among half of the employees and the other employees don't get similar benefits. They talk about morale problems that result from actions they are going to take to cut back retirement benefits. He feels those problems create more morale problems than anything. He spoke of having two employees getting different pay and different benefits that are doing the same job. City Manager Williams agreed to come back with some numbers. Councilwoman Rogers stated they have been here before too. The executive sessions they had they talked about the same thing. She was hoping by this time they would have something more than talking about it again. Talking about it is doing nothing. They need some action. Since they were already past the pension discussion and City Manager Williams knew to talk about modifying the plan and what they were trying to do was equalize and put everybody on a level playing field. They need to do the same thing with the dependent coverage. They had already talked about it and nothing had been done. City Manager Williams stated they did do exactly what came out of the executive session. They made their proposal to one of the unions. Councilwoman Rogers stated that was one union and not as a whole. They want to make it more equivalent for everyone. No one likes to feel they are working and the guy next to them is getting more of a pension percentage or more of something else and it does cause problems and therefore the services provided are affected as well. Mayor Thomas asked if they were still talking to Brown & Brown on their insurance options. City Manager Williams informed him they issued an RFP for an Insurance Agent of Record. They set up interviews for Brown & Brown and Ascherl & Gallagher. 10 Council Workshop July 27, 2007 Mayor Thomas had a problem with the vacation/sick leave buy back. He thought they were spending a lot of money on that. He felt they needed to set up some type of sick leave bank or sick leave pool. He could see where they were losing a lot of money. He felt that was another exorbitant benefit. People don't realize. They bank so many hours and they think nothing is ever going to happen to them and when it does happen and they have to use six months of sick leave, then they need it. He thinks they need to look at that and some options. He doesn't want to take their benefits away from them and they should do it in a different fashion. Let them bank it to a certain amount of hours and pay them at the end of their career for a percentage of those hours. He felt they needed to really look at that. Councilwoman Rhodes stated Mayor Thomas felt the vacation buy back was exorbitant and what happens is when you take that away you are paying people to be good employees. Now they are telling them they don't want them to go to work. She felt that was a very fine line they have to walk. She doesn't think it should be one for one. She felt that should be modified and it should be two for one or three for one but she didn't think it should be taken away completely. That is income. They are talking about people's lives and that is income to them and they count on it to keep their families going. She thinks they have to modify it but not take it off the table completely. With the insurance, she felt they should partially cover families. She then commented on hurting the person that makes the least amount of money. It is easy for the City Manager to say $10 is not a big deal but when you are only making $15,000 or $16,000 a year, $10 is a lot. That is the person that gets hurt. If they want to hurt the people in the City making the most money she didn't have a problem but when the littlest guy feels it the most she had a problem with it. She gets aggravated. She doesn't want to have to pay $10 to someone she doesn't have to pay $10 to. The same thing happened with her husband's health insurance. They didn't have the $10 co-pay and now they do. She can afford it but her husband worked a lot of years so they didn't have to pay it. They don't get any more money but they get to spend more. City Manager Williams recognized what Councilwoman Rhodes was saying. What had to be taken into consideration was the fact that they are faced with an environment of declining revenues. 11 Council Workshop July 27, 2007 The Council's goals are to make sure everybody stays employed. He wasn't saying that one provision would force them to start a reduction in forces but every dollar at this point in time was going to allow them to stay at their existing manning levels, continue to provide the services they are offering, making sure when somebody picks up the phone and dials 911 that they have emergency vehicles that can get to them that aren't breaking down. Those are the challenges they are faced with in this rapidly changing environment. Councilwoman Rhodes suggested they do it equally across the board. Don't make the person that makes the least pay the most. Make it equal. Councilwoman Lichter stated maybe every city in this State pays their Council people but they don't pay their Planning & Zoning people or their Economic Development people and many of them put in a lot of hours too. She doesn't think that to volunteer to serve her community that Council people should get paid. She also doesn't feel they should be given medical and the other benefits. She thinks it should be a service to the community. She would like to know how much they might save. When she found out the City has a life insurance policy on her she almost died just hearing it. She had no idea they had a life insurance policy on the Council. Councilwoman Lichter asked what they cost. City Manager Williams informed her the total budget for the Council was $57,068. Of that total pay was $39,288. The medical insurance the City provides was $14,106 and the dental was $800. Councilwoman Rhodes suggested having Council, if they want those benefits, pay for them. City Manager Williams informed her that was a policy decision the Council would have to make. Councilwoman Rhodes informed him that was her suggestion. Councilman Vincenzi commented on the Council benefits. He has been a proponent of that forever. He never takes advantage of medical benefits. He didn't even know about the life insurance but if he could do away with that he would today. He thought Donna Looney said they were considered employees of the City and the plan states that all employees have to be included under life insurance coverage. He suggested they be taken out of that category. They were not employees of the City as far as he was concerned. He felt they should get the straight $7,200 a 12 Council Workshop July 27, 2007 year. He puts in more time than that is worth but he suggested they give them the pay and do away with the medical, dental and life insurance. Councilman Vincenzi then commented on the annual leave/sick leave buy back. Originally he took a hard line on all that stuff until he saw the numbers in budget. He has revised his thinking a little bit. What he feels is they shouldn't be allowed to accrue unlimited annually, vacation pay. There should be a certain amount per year and then if employees want to cash in two weeks, three weeks at the most, okay that was a cash expenditure that the City might be putting out anyway because people take vacation. He felt a limited use of annual leave buy back was okay. Sick leave was a totally different category. That is for use when you are sick. They should accrue sick leave and not be able to sell any of that back. Mayor Thomas felt there needed to be modification to the annual and sick leave. He then commented on two people doing the same job and getting different salaries. He thought they needed to factor in that one guy may have 25 years in and a guy just starting out can't make the same that guy is making. Councilman Vincenzi stated that was understandable. He referred to the employees that were hired after October 2004 not getting the same as the employees that were hired before that. He felt that created animosity. He felt being in a job longer entitled them to more pay, seniority, things like that but not totally different spectrums of benefits. City Manager Williams commented on Councilman Vincenzi's commented regarding having unlimited accruals. He spoke of having a maximum amount of hours that an employee can bank. The accrual rate is based off of the longevity that an employee has been with the City. He agreed to go back and look at everything Council had identified with regard to the two for one or three for one. He was going to look at if they continue to provide benefit they could only cash it in at the hourly rate in which they accrued it. Councilwoman Rhodes felt that was making it more complicated than it had to be. It doesn't have to be that complicated. She questioned how they were going to go back and calculate it. City Manager Williams stated he wasn't saying they were going to do it, he was saying they were going to look at it. Councilwoman Rhodes felt it was a 13 Council Workshop July 27, 2007 waste of time to do that. She suggested having a buy back with a different ratio than one for one. City Manager Williams informed her they have some of that right now. Mayor Thomas called a ten-minute recess at this time. The meeting recessed at 10:05 a.m. and reconvened at 10:15 a.m. City Manager Williams reported to Council that they should have carpet very soon. They received notification that their insurance claim was going to be paid so they were moving forward with getting quotes. Mayor Thomas asked if anybody had noticed the new ceiling fans. Councilwoman Rhodes asked how much that cost the taxpayers. City Manager Williams informed her they cost $2,900. City Manager Williams continued his Powerpoint Presentation by describing Council Consideration/Discussion regarding Cash Reserves. Mayor Thomas asked City Manager Williams if he wanted consensus. City Manager Williams informed him sure and went on to explain the Charter specified 15% to 25%. They shall strive always to meet the minimum Charter requirement. They should incorporate at least a target in the operating budget to achieve every year. Councilwoman Rhodes asked if the $268,000 was over and above the 15% to 25% or if that was the 15% to 25%. City Manager Williams went by memory and estimated for FY 2006 they had $950,000 cash in the General Fund, which was below the Charter requirement. The Charter specifies 15% to 25% fund balance, which is not always made up of cash. They have to be very careful when they look at that. By targeting this as cash and striving to maintain a 15% to 25% General Fund Reserve of cash was very good but other items they had to consider into that was he would suggest setting up reserves for capital replacement, road resurfacing, sidewalks, etc. so that does not begin to draw on the cash reserves. Councilwoman Rhodes was trying to separate it out. She wanted that to be in one place and the capital fund to be in another place. Mayor Thomas stated what they were doing was having so many days of workable cash in case of a catastrophic disaster. City Manager Williams stated they pointed out to them as a City that they had about $1.15 million. Mayor Thomas asked how many days that was. City Manager Williams thought it was 19 days. That was certainly a concern. He informed Council they would have 14 Council Workshop July 27, 2007 an item before them in the near future to allow them to establish a line of credit to help buy insurance in the event they receive a catastrophic event. It was the consensus of Council to establish a minimum amount of excess cash to be achieved in any given operating period in the amount of $500,000 as was recommended by City Manager Williams. City Manager Williams continued his Powerpoint presentation by going over Council Consideration/Discussion regarding Emerging Capital. Councilwoman Rhodes asked what the Mayor's park was. Jack Corder informed her that was the site at the lake on Mango Tree Drive. Councilman Vincenzi questioned if that was what they would be naming it. Mayor Thomas informed him they were going to name it Wadsworth Park after Susan & Terry Wadsworth who combined had 60 years with City. Councilwoman Lichter asked if that was the property the school owned. City Manager Williams informed her that was across the street. Mr. Corder explained the current site was used for withdrawal for the reuse water. City Manager Williams continued his presentation by going over the capital items for the Fire Department, Police Department, Development Services Department, and Streets. The total proposed capital expenditures for the General Fund would be $1.4 million and none of that was funded at this point. Mayor Thomas commented on trying to replace a certain number of items each year. City Manager Williams informed him that was what they were trying to do. Mayor Thomas stated they were trying to spread the capital improvements out and get what they do need. City Manager Williams stated their needs at this point were a majority of their rolling stock he knew in the Police Department needed to be replaced. He thought they had three or four vehicles that were under 100,000 miles. Last year they didn't do any so they were starting to get into a little bit of a danger zone. Mayor Thomas suggested they could use his park that he wants so bad as a flex. City Manager Williams again informed Council that none of these items were in the budget. As it was proposed they had $268,000 with modifications to the Defined Benefit Plan. Then they could 15 Council Workshop July 27, 2007 start funding some of these items and try to address some of their needs. He then commented on one of the practices they wanted to incorporate into the budget process. They wanted to start appropriating money to do replacements in five years. Their goal is to amortize with an interest factor and set up reserve accounts to be able to address that. They could basically take issues like this completely off table. In five years they have the funding sitting there and they make minor appropriations each year to get there. They were looking at and trying to factor that philosophy into their existing budget. For those cities that have replacement funds in place they are very successful and don't become an issue at budget time. Mayor Thomas asked how they were going to get the $1.5 million. City Manager Williams didn't think they were going to get it. City Manager Williams informed him those were things that were not in this budget. With the modification to the Defined Benefit plan they would have excess funds in the General Fund of approximately $500,000. He suggested they take half of that money and start on this list. As the environment changes for the way we operate from this point forward they may be able to address some capital needs this year but next year they may take all of that money and address road resurfacing and every other year they would be addressing capital. They would play it by ear. City Manager Williams then continued his Powerpoint presentation by addressing Council Consideration/Discussion regarding Frozen/Vacant Positions. These positions were not funded in the budget as it was proposed. He spoke of being thin in a lot of areas. They were doing the best they could with the resources they had. Every department is maxed and they are still continuing to provide those services. City Manager Williams informed Council they could by unanimous vote keep the millage rate at 5.7 which would solve a lot of problems for them. Mayor Thomas asked how they could do that with the State mandate. City Manager Williams informed him they had the ability to do it. Councilwoman Rhodes informed him it would have to be unanimous vote. Councilwoman Lichter asked if there were certain positions where they could use people that are doing certain types of 16 Council Workshop July 27, 2007 community service like at the shelter. City Manager Williams stated he had been working with City Clerk Wadsworth in developing a volunteer program to draw on some of those resources that may exist in the community. They have to be cautious of the positions they may put people in. Administrative positions lend itself well to volunteers but when they have volunteers operating equipment they incur some additional liability. Councilwoman Rhodes asked about the prisoners picking up trash. Mr. Corder stated it had been a few years back but he had looked into that. The City would have to pay a minimum hourly rate for each prisoner plus they would have to send one employee up for training to oversee the prisoners. They would have to provide the vehicle to pick them up as well as provide them lunch. They would also have to responsibility and liability of overseeing them while they were in our hands. Councilwoman Rhodes commented on it not being cost effective and asked why New Smyrna was doing it. Mr. Corder believed that was the State or the County sending them out. Councilwoman Lichter stated she wasn't talking about prisoners because they had experience with them putting up the cages at the shelter. She was talking about community service, someone that had a lesser type of crime and had to work it off. They have some very good people at the shelter that are doing that type of thing. She asked if that was acceptable. Mayor Thomas stated she was talking about judge ordered community service. Councilwoman Rhodes asked if the Police Department still did that. Police Chief Taves informed her they used to have people come in and all they would really have them to do was wash police cars. They had gotten into using them at the shelter and they do a very good job. The problem was scheduling them. He further commented on them having so many hours to work off and it being difficult to run a business without being able to schedule the help. Finance Director Brett Tanner continued with the Powerpoint Presentation by going over the General Fund Revenue Comparison, the General Fund Revenue Detail with regard to Taxes, Licenses and Permits, Intergovernmental Revenue, Charges for Services, Fines and Forfeitures, Miscellaneous 17 Council Workshop July 27, 2007 Revenue and Other Sources and the General Fund Expense Comparison. City Manager Williams continued with the Powerpoint Presentation by describing the General Fund Summary. Councilwoman Rogers had a question regarding the Intergovernmental Revenue. The FY2008 proposed was 1.9, and the 2007 budget was 2.2. Yesterday City Manager Williams indicated something to the effect that he had everyone go back more or less like a zero based. If they were at 2007 budget of 2.28 how did they get to a 1.9. They reduced and saved then when she looks at other sources they had a $900,000 budget in 2007 and a $535,000 budget in 2008 but yet they have received nothing for the 2007 actuals. City Manager Williams informed her the other sources was the transfer from the Water & Sewer Fund. The reduction from $900,000 to $535,000 represented they had reduced their dependency on the Water & Sewer Fund transfer. Councilwoman Rogers questioned Other Sources being only the Water & Sewer Fund. City Manager Williams stated and Refuse and Stormwater. Councilwoman Rogers stated for 2007 YTD Actuals they hadn't done any transfers from the Water & Sewer Fund. City Manager Williams informed her they do that at the end of the year. He informed her those represented year to date figures. He explained the difference between Intergovernmental Revenues was economics. Councilwoman Rogers stated on the expense side they had some line items for City Council and City Manager. If this was to start at zero, on the General Fund what was given to her yesterday at the very top there was a figure of $17,773. There was nothing to the left to tell her what that line item was and it was added to the bottom figure and it wasn't what City Manager Williams had presented to them. She asked what the $17,000 was for. Finance Director Tanner commented on in previous years having non-departmental and these things being put within a department. Councilwoman Rogers pointed out on the report there was nothing to the left to tell her what the item was. Finance Director Tanner commented on going through an accounting system change between those years and that was still there. Councilwoman Rogers asked about the 2007 year to date actual and it still being there. Finance Director Tanner informed her it was a misposting and that it had already been corrected. Even though it had been corrected it would still be the same. He commented on Other 18 Council Workshop July 27, 2007 Governmental Services increasing by $6,627. Councilwoman Rogers was confused because of the numbers being the same. City Manager Williams explained Finance Director Tanner did a journal entry moving that expense from that specific line item to the Other Governmental Services as a misposting so the total would be the same. They did this last night and he did the journal entry after the Council's reports were ran so there was a slight difference. It was accounted for under Other Governmental Services. Councilwoman Rhodes also pointed out her numbers were the same. Finance Director Tanner informed her it was a misposting and it would be corrected. He again commented on the accounting software change and the way they do their accounting has changed from prior years. It has been a three or four year process. City Manager Williams commented on it being a work in process. The numbers have already changed and would change until the last two public hearings in September. Councilwoman Rogers stated in other words with this software when they do a journal entry and it is out of balance it still allows them to print the reports. Finance Director Tanner informed her it was not out of balance. Councilwoman Rhodes thought they were saying it was balanced and was just moved from one line item to another. She questioned how 2005 could be wrong. How could they have a 2005 Actual that was not an actual? Finance Director Tanner informed her that was a real number in 2005. Councilwoman Rogers stated but there was nothing beside it. Finance Director Tanner stated that was what he was trying to say. Now they do everything in the departments. That was where the misposting came from. It got done in a non-departmental line code where it shouldn't have been done. City Manager Williams explained what was on the screen was done in Excel. He assumed when Finance Director Tanner pulled the information into Excel it deleted the line code or it didn't pick it up. He spoke of the system they have producing reports which were not real fancy, which they have gotten criticism over in the past. The staff spends a ton of resources in converting the information into Excel. He spoke of merging documents together to come up with a final product. Mistakes can be made. Human error is going to happen. Giving the staffing levels they have, if that was all they find wrong with this budget, he thinks that was excellent. Councilwoman Lichter was sure it would get corrected. Councilwoman Rhodes stated what concerns her more than anything is not the error. Everybody makes mistakes. She was concerned about 19 Council Workshop July 27, 2007 errors that were not found. Finance Director Tanner stated that concerns him and he tries to find everyone of them. That is a major concern. Councilwoman Rhodes asked what happens when they don't find it. She asked if the auditors find it. Does somebody find it? City Manager Williams asked if she had an error that she had found that she could specifically identify. Councilwoman Rhodes stated that is the whole point she was making. This is an error that was identified. Finance Director Tanner stated in his opinion it was not really an error. Councilwoman Rhodes wanted to know their system of checks and balances. They have the accounting program for the City. She asked if the reports she had were the reports that the City's accounting program prints out. Finance Director Tanner informed her yes. He said this was a presentation error, not an accounting error. They have double entry accounting and it is built in to balance. It has to balance. Councilwoman Rhodes wanted to know if there was any flaw in the accounting error that was allowing a balance sheet to not really balance. City Manager Williams double further commented on it being double entry accounting. When they do their journal entries and go to post them if they do not balance in the accounting world it will not allow them to post the journal entries and would spit out a report to let them know there was an error. Councilwoman Rhodes wanted the assurance that that was indeed occurring and what they are getting is coming out of that. City Manager Williams stated that doesn't say they won't have a misposting. Councilwoman Rhodes stated she was trying to eliminate the human error out of that part of it. City Manager Williams stated there were many software programs out there that would allow them to generate some of these budget books without a lot of staff time but they don't have the budget for it. Many of the other cities around Edgewater have budget directors. One of the uniquenesses in the City is they all wear multiple hats to help control costs. He commented on the challenges they face internally with operations. Councilwoman Rhodes suggested staff give Council the budget reports and don't do the pretty stuff. Councilwoman Rogers stated what they have now is the budget reports and there was not pretty stuff and there was a mistake. She then commented on accounting software programs. She works with several programs. Some are very weak and some are not. Ultimately where they are at is staff has recognized there are problems with the accounting software. They are using Excel to do what they want. She 20 Council Workshop July 27, 2007 suggested they look at an accounting program that would help the City and help staff so this doesn't happen again. Put it on list of capital items so that was something they could target and look at. That's a solution for the future. City Manager Williams suggested she come in and go through their accounting software with them. He spoke of the complexity of the program being unique. They have an integrated system which integrates the functions of the Building Department, Code Enforcement, billing for water, sewer and refuse, as well as having a cash receipts module. He commented on developing a rather large temporary holding account when the system was converted. There was some reliance on temporary accounts just as there is a cash over and cash short account. He would love to look at the Cadillacs of systems but their experience has shown them that a system of this magnitude is every bit of a half a million or more dollars. Councilwoman Rogers again suggested they put it on the capital wish list. They are trying to look at the numbers and they aren't up there running tapes and verifying so they have to rely on what is given to them and it was confusing. Councilwoman Vincenzi didn't have anything specific. There were some items he highlighted that he wanted to talk to City Manager Williams about either after meeting or Monday. Councilwoman Lichter commented on barely being able to read it without a magnifying glass. As far as having one mistake that was found, it's really not a mistake if it's found and they understand it. She was sure there wasn't a system in the world that was 1,000% accurate. She complimented them on what they had done if there was in all of this that is found and they know about it. suggested when they print the budget that they print two sides of the paper. only She it on Councilwoman Rhodes questioned who they do the transfer of information into Excel for. City Manager Williams informed her the citizens because as it was presented today it was tough to understand. For the folks that aren't diving into the numbers they try to make that much more user friendly and it is still complicated at best. 21 Council Workshop July 27, 2007 City Manager Williams stated they were going to go back to the drawing board and continue to refine the numbers and bring back a balanced budget with the direction they had received for the General Fund and address some of the items they had talked about. Mayor Thomas called a ten-minute recess. The meeting recessed at 11:00 a.m. and reconvened at 11:12 a.m. Finance Director Tanner continued the Powerpoint presentation by going over the Water & Sewer Fund Revenue Comparison, the Water & Sewer Fund Expense Comparison. City Manager Williams then commented on having a mixing of accounting methods. When they get to the final budget presentation, they will be adding line items for cash and in the Water & Sewer Fund they would add a line item to identify the cash they collect from the receivable known as the wastewater assessment that would be billed on the property tax bill. He spoke of trying to incorporate two accounting concepts into one document. Councilwoman Lichter asked if the personnel figure would change if they incorporated some of the things they talked about in the beginning. She then asked about the new meters that were put in. They were supposed to pay for themselves. She asked for a summary of what was going on with those meters. City Manager Williams commented on it being a performance based contract and how they got into that. Councilwoman Lichter asked if they were paying for themselves. City Manager Williams informed her at this time they were. He knew they were going through a sample right now and they were waiting on the final report. They had some issues to work out with Johnson Controls. They have identified some potential problems that they totally disagree with. Councilwoman Lichter stated so it was not a failure at this point like some people said. City Manager Williams informed her he would tell her it was a success. It was a large investment. They had unaccounted for reclaimed water. The meters are being read with more precision and accuracy. He commented on when they used to hand read the meters and the amount of rereads being phenomenal. They are now reading them with much more accuracy and they can identify misreads prior to the bill going out. He spoke of this being a proactive approach to the billing that they were doing. Deputy Director of Environmental Services Brenda DeWees stated they were in 22 Council Workshop July 27, 2007 the process of evaluating those meters right now. They have pulled a sample to determine whether or not they were functioning as projected. By next month they will evaluate that further. If they aren't doing as Johnson Controls said they would do they have to reimburse the City. City Manager Williams stated they were at a point from an operational perspective of having to add several more people to deal with the meters they were reading, which he felt was an indication of the investment they had made and the technology to help control their personnel costs. As the overhead goes up for technology, they do see a reduction in personnel costs because they can typically do more with less or maintain status quo. Finance Director Tanner continued the presentation by going over the Refuse Fund Revenue Comparison and the Refuse Fund Expense Comparison. Finance Director Tanner asked Ms. DeWees if she knew why operating costs were coming down every year. Ms. Dewees explained last year they projected additional expenses related to additional growth and with that not happening the cost for disposal of debris and that type thing has not been realized this year. Councilman Vincenzi asked if refuse included trash, landscaping debris, anything out by the street that needed to be taken away such as large appliances. A while ago they talked about some type of fee for excessive amounts. Mayor Thomas thought it was already incorporated. Mayor Thomas thought it was if it was bigger than 4 X 4 X 4. Ms. DeWees stated it was still in the ordinance that they have the ability to charge that in the event they have a major amount of debris. They have done that. They found that for people who once in a while have a larger pile that it was not cost effective. Mayor Thomas commented on Environmental Services being proactive with regard to tree trimmers coming in and they don't haul their debris and the owner has to drag it to the road. They have been proactive in going against that. Ms. DeWees stated all of their employees know that the licensed tree trimmers have to dispose of the debris on their own and the residents are pretty quick to call in. 23 Council Workshop July 27, 2007 Councilwoman Lichter stated there was a time in the last ten years when they looked at washing machines, dryers, stoves. It was decided they would dump them someplace else and it would be a worse mess when they found them so they just pick up them up when they are put out. Ms. DeWees stated they use to charge for that and things ended up in the canals and on vacant lots which became more of a problem. She believed a few years ago when it was looked at to charge for all of this, the direction she got from Council was people replace their refrigerator every twelve to fifteen years and that should be included in their normal refuse pickup charge. Mayor Thomas asked if the Capital Outlay was for the purchase of new equipment. Ms. Dewees explained that represented one trash truck which was a 1997 Ford trash truck with 121,000 miles. City Manager Williams explained it represented 2% of the total budget. Mayor Thomas asked if they were doing enough. City Manager Williams informed him right now fund was out of balance. Some of modifications they had talked about would go a long way to helping that. The Fund has done fairly well over the last few years. He thought it was one of the only Enterprise Funds that had made some money. One of the things they wanted to do with the excess in that fund was to set up an equipment reserve fund and be able to fund that from a long-term perspective. Mayor Thomas asked about debt service. City Manager Williams informed him that was amortizing capital that they purchased via debt. Last year they began talking about trying to reduce the fixed costs they have across the board in the City that they couldn't continue to purchase trucks and that kind of stuff via debt. They wanted to get into a situation where they were saving that money and then purchasing it when it was time to replace it. Councilwoman Rhodes stated a lot of her neighbors will place leaves and branches at the end of one of the retention ponds. She asked if it was preferable for them to do that so there was one pick up place or if they should keep it in front of their yards. Ms. DeWees stated it would seem more preferable to have one place to stop but it wasn't because they don't know who put it there or where it came from. They prefer they put it in front of the house because then they know it came from that yard. 24 Council Workshop July 27, 2007 Councilwoman Rogers asked what date the year to date actuals went through. City Manager Williams informed her July 24th. Councilwoman Rogers was looking at the 2007 budget, 2008 proposed. The year to date actual was low compared to the 2008 and yet they are posted through July 24th. The fact that they were saying zero based, the 2008 proposed was similar to the 2007 budget and the 2007 year to date was low. If they were zero based and the 2007 year to date was through July 24th, it just didn't pan out. City Manager Williams commented on there being some major differences. The challenges that this fund faces drastically is the turnover. He commented on how many folks they have gone through this year in that fund due to it not being a desirable job. Councilwoman Rogers informed him it was not just this fund. He initially said in the Water & Sewer Fund that the transfer doesn't happen until the end. Using that same theory it appears they use that theory for everything else as well because a lot of the postings aren't happening until the very end. She felt it should be current because they were doing most of the accounting on an accrual basis even though they have the cash and accrual and she understood that with the Refuse Fund. Finance Director Tanner commented on the transfers at the end of year and what could happen and what has happened. They may not have the cash to transfer. Councilwoman Rogers felt they were too close to the end to not have a year to date be more close to the 2007 budget and it looks like the 2008 proposed is a mirror of 2007. They said they did zero based and she was confused because that didn't make sense to her. City Manager Williams referred to the large difference in operating. Councilwoman Rogers stated she was saying overall everything was using the same methodology. City Manager Williams explained it to Councilwoman Rogers by doing what he considered to be simple math. There may be some area to work with this but he identified that the Enterprise Funds needed additional time to review. They have more work to do. There were quotes that come in daily. These were original projections. Councilwoman Rogers asked if he was referring to quotes for FY2008. She commented on the difference between the 2007 budget and 2007 year to date. They were still way off with the difference being $700,000. City Manager Williams informed her roughly $300,000 of that was personnel due to tremendous turnover. They were assuming in 2007 budget and 2008 budget they would be at 25 Council Workshop July 27, 2007 full crews throughout the year. He commented on the delay bringing new people on board. Up until recently they have been forced to operate with reduced crews. There are a lot of variances. Councilwoman Rogers felt there was too much on the table and they were almost at the end. Why aren't the year to dates closer to the 2007 budget because the 2007 budget was used to create the 2008 that's why. Ms. DeWees commented on it being the operating costs. A majority of the operating costs were disposal, landfill & trash disposal. They normally wait until May and June to have trash disposal done. That was not reflected in the year to date amount because they have not billed them yet. That was approximately $170,000 there. That amount did not include July's landfill disposal costs. The landfill costs are a majority of their operating costs. Mayor Thomas asked if they were adding a catastrophic event. He spoke of that taking a lot of money for the picking up of the yard debris. He asked if that was included in their projections. Councilwoman Rogers stated that would have been in 2004. Mayor Thomas stated August 15th was the peak of hurricane season. Ms. DeWees informed him typically they don't budget for an event. She spoke of the cost in 2004 being $3 million. She commented on having to raise the rates. They make sure the City's yard is cleaned out before a potential storm event. Mayor Thomas commented on most of yard debris being gone from Public Works. Ms. Dewees informed him they had not received the billing for that yet. City Manager Williams commented on there being 100 different methodologies for budgeting. He then commented on there being a flaw in this approach. They can go in and take year to date actuals and make assumptions for where they believe they are going to be at the end of the year. They could arbitrarily inflate that number and get it to there to justify the increase in FY2008 expenditures. A few years ago they took a different approach to budgeting to present let's go ahead with what they have recorded in the system and use that as a reference point and try to extrapolate out those numbers in case they get into a situation and go forward. This was a planning document. They were sitting here today making assumptions for fourteen months from now. That is extremely difficult to do. This is what they think will happen. There are so many variables out there they couldn't even begin to anticipate everything. He then commented on the fuel prices. They are constantly looking at evaluating different methodologies to come forward with 26 Council Workshop July 27, 2007 in preparing the budgets. He then commented on zero based budgeting and trying to be conservative. Every year as part of the audit they go back and compare budget to actuals and they make modifications for next year's budget and try to accurately present what was going to take place. Mayor Thomas commented on having a near miss catastrophic event. He spoke of getting reimbursements from FEMA from the 2004 hurricanes. If they get a near miss they are going to have to pick up the full blunt of that. City Manager Williams informed him that was why they were going to be seeing a request to approve a line of credit for $1.5 million coming before them. They won't draw on it but it would be there as an insurance policy to go forward. He spoke of personnel being the number one problem in this department. He spoke of identifying incentives to make a less desirable job more desirable. He spoke of implementing the task system last year which was controversial but it was an incentive that says if they get done with their route at 12:00 p.m. then they go home and get paid for 8 hours. He spoke of the gentleman on the back of the garbage truck making $8.30 an hour. Since he was hired after 2004 he had to carry 100% of the dependent costs. That is something that really hasn't cost the City any money because they have asked them to go out and make sacrifices. They are continuing to try and identify areas. Mayor Thomas asked how that was working. Ms. DeWees informed him on Monday, Tuesday, and Wednesday there really wasn't any benefit. She spoke of it being a benefit to them in the heat of the summer. Thursday & Friday was when they get the greatest benefit. It allows them to go out and get another part time job to supplement their income. Mayor Thomas stated they are trying to do everything they can to give them incentives. He realized it was hard to get those employees. City Manager Williams commented on all the cities looking at wage classification comparisons. They are participating with cities to come up with a system. At some point they may have to invest money to have a wage classification study done in the future. Finance Director Tanner continued the Powerpoint presentation by commenting on the Stormwater Revenue Comparison and the Stormwater Expense Comparison. Councilwoman Lichter asked if the cleaning and maintenance of the canals were in this category. Ms. DeWees informed her they were. Councilwoman Lichter asked if they were 27 Council Workshop July 27, 2007 still having problems with people throwing things in the canals, if they had a fine system set up and if they could catch any of what was going on. Ms. DeWees commented on it being difficult. Unless the Police Department actually sees them doing that they can't do anything about it. They end up having to maintain them. She spoke of the biggest challenge being children. They are very proactive in making bridges. Councilwoman Lichter felt an article which they haven't put in one of their communications with the public might make that known. She felt that was something they probably hadn't gotten across. Mayor Thomas asked what the Capital Outlay was for. Ms. DeWees commented on the items that were included under Capital Outlay. Mayor Thomas asked about the menzis. He understood those were very expensive. We have two. He asked how those were doing. Ms. DeWees stated one was only a couple of years old and was doing well. They have a life span of about five years and the other one was about ten years old. They have been fortunate with the operators they have had on it and the maintenance issues to keep it running. The cost of those are very expensive. She believed they allocated to replace that machine and were looking to replace it in 2010. Mayor Thomas asked Ms. Dewees to explain to Council that with the way our subdivisions are made that is the only thing that can go down and clean those canals out. Ms. DeWees explained it was because of the backyard easements and people putting up sheds and fences. They have an easement through there but they don't have any access. Councilwoman Rhodes stated that goes against Code. They have to leave the easement. Mayor Thomas commented on the City being very lenient on that. Ms. DeWees stated the magnitude of what was existing out there right now was phenomenal. Even if they were to make them move it outside of the easement, the canal may be in the middle of the easement. Mayor Thomas felt those employees needed to be applauded. He saw them working on the canals and he felt they do a phenomenal job. He wanted Ms. Dewees to tell them he has noticed that. Mayor Thomas asked about the debt service. City Manager Williams explained that was on the books because of previously purchased equipment as well as debt related to the road improvement project in Florida Shores. Mayor Thomas asked year to date how much stormwater had gone into the Indian River Lagoon. Ms. Dewees informed her they had 28 Council Workshop July 27, 2007 no control measures for that. Mayor asked how many gallons they were allowed to dump into the Indian River Lagoon. Ms. DeWees informed him there was no limit on that. She thought he was talking about the discharge from the Wastewater Plant. Mayor Thomas asked if they were complying with State regulations where the stormwater goes through a percolation or cleansing before it hits the river. In order to have an estuary they have to have salt water & and a certain amount of fresh water. What scares him was the stormwater that goes off the road and carries the gas and oil into Indian River estuary. He asked if they were complying with state regulations and percolation of the stormwater. Ms. DeWees explained they have a very extensive permitting process through the State. She then commented on federal and EPA mandates with regard to the Clean Water Act. They have a five year permit and were in their fourth year. Every year they add additional compliance measures. Through the LDC they are ensuring these developers are putting ponds in place to address that. Councilwoman Lichter commented on some of the conservation meetings she has attended in terms of water. She felt a city needed a lot of money to follow through with stormwater being used for conservation purposes. Ms. DeWees commented on Cocoa Beach Village having a large parking area that went into the Indian River Lagoon and they turned it into a park. Under the park the stormwater is collected and transported to a Wastewater Plant and used for reuse water. It's a very expensive process. City Manager Williams then commented on challenges. They have been gigged every year in the annual audit that this fund was having declining net assets. He needed from Council their feelings towards a rate increase. Right now they charge $6 per month for a single family residential unit and for the commercial units there is a break. He spoke of the ordinance being written many years ago when most commercial units required onsite compensating storage. He believed it was also brought forward as an economic development incentive. The philosophies have changed over time. Most folks charge a flat rate for an equivalent unit. He again mentioned having to address an increase in rates. Mayor Thomas asked how much. City Manager Williams commented on there being several different methodologies, one being making everybody pay the same for an equivalent 29 Council Workshop July 27, 2007 drainage unit which would place a pretty large burden on the commercial residents. In order to continue to address the issues they have with the Stormwater Master Plan, they were going to have to consider that. He commented on the results of the Stormwater Master Plan coming down the pike and there being some proposed capital expenditures for improvements to that system as well as some other expenditures that Council was going to have to entertain as to whether or not the City was going to take a proactive approach to addressing the results of that plan. Mayor Thomas asked if they had a choice. City Manager Williams didn't think they did unless they were going to consider trying to fund this out of the General Fund. He spoke of the stormwater system requiring some pretty heavy maintenance and some pretty specific equipment and they needed to fund it correct. Mayor Thomas wanted figures. City Manager Williams informed him one of the easiest things would be to take the discount they provide to the commercial folks and charge them $6 per equivalent drainage unit. He suggested they put everyone on a level playing field and then charge per equivalent drainage unit. Councilwoman Rogers felt to increase the rate they needed to look at this more. Councilman Vincenzi stated he would be happy to entertain the notion but he needed more information such as figures and how many commercial entities would be affected and how they feel about it. If they need a rate increase obviously they would put it forth whether the Council says yes or no anyway for them to discuss it in public. City Manager Williams felt it boiled down to recognizing the need of the system. They aren't funding it now so it was falling on the backs of the other funds. City Manager Williams explained Enterprise Funds are businesses. The cost of doing business is recaptured through user fees. The Fund has not kept pace with inflation. He spoke of an increase being highly controversial. In a traditional business environment they are going to raise their rates unless they were going to charge taxes in the General Fund to fund it back over to the Stormwater Fund. Councilwoman Lichter stated under this department there are many aspects. One aspect makes money. Perhaps what makes money should be what pays for the stormwater. She wanted to know what City Manager Williams meant in terms of where 30 Council Workshop July 27, 2007 he lives and where she lives where they have paid for that infrastructure and are still paying stormwater. She asked if he was talking about the public and houses or just business. Business is having a tough time as it is making ends meet at the moment. City Manager Williams commented on Environmental Services being an umbrella and under it are business units. This is a separate business. Councilwoman Lichter felt they would need facts, figures and talking. She came to the meeting not quite with that type of thing in mind. She knew when City Manager Williams didn't think Animal Services was going to take care of and balance itself which it was almost doing at this moment, he upped the price of a kitty cat or puppy dog. She imagined if they were going in the hole with something he might do that kind of thing in terms of business. City Manager Williams stated with the animal shelter they had no resolution formally adopting those rates but they were going to have to adopt those rates. Councilwoman Lichter stated they were trying to make it an Enterprise Fund which couldn't happen overnight but they were working at it. City Manager Williams wasn't asking them to vote on this now. He had to bring these items back to Council because for the last four years there had been a comment in the CAFR. At some point if they don't address the issue the issue is going to address it for them. Councilwoman Lichter asked if they got a big grant to do something for the stormwater. Ms. DeWees referred to the Miscellaneous Revenue and that being the grant money coming in for Eastern Shores. She mentioned this being a matching grant as most grants are. Councilwoman Lichter asked if they had the money for the match. Ms. DeWees informed her they did this year. Councilwoman Rhodes stated City Manager Williams quoted a figure of $300,000 or $400,000 additional revenue for increasing the stormwater for commercial. City Manager Williams believed it was about that. Councilwoman Rhodes asked what an equivalent drainage unit was. City Manager Williams explained they take the impervious surfaces and divide it. Ms. Dewees stated 2,027 square feet equaled one drainage unit. Currently there are businesses that have their own retention ponds that were getting a discount. Councilwoman Rhodes felt it shouldn't just be commercial. It all should be equal. She also agreed they needed more information. She wanted to see what the hit was going to 31 Council Workshop July 27, 2007 be to the businesses. They are trying to encourage economic development, not discourage it. If it is too huge maybe they could come up with another option. She agreed that something needed to be done. This Fund needed to be funded. Whatever they have to do they are going to have to do. Mayor Thomas explained where the stormwater runoff goes. He felt they needed to address this because a major portion goes to the Indian River Lagoon which is their future and the ecosystem which he felt was going to be the future of this City. He then commented on eventually running out of water. He felt it needed to be addressed but that they needed more information. City Manager Williams commented on the results of Stormwater Master Plan having some pretty major implications throughout the City. Finance Director Tanner continued the Powerpoint presentation by going over the Animal Services Fund. He described this as a new Enterprise Fund. This was the first year so there were no revenue or expense comparisons. He then described the 2008 Proposed Revenue. Councilman Vincenzi stated this year after the Animal Shelter was built that the Other Sources would go way down. Finance Director Tanner informed him that was a one-time transfer. Councilwoman Lichter commented on having animal control people for all these years and they didn't go under this category. They are Police officers in a sense. They are doing what is required by State Statutes. Whether they have a Shelter or not they need animal control people. City Manager Williams explained when they presented this to Council under the Enterprise Fund they clearly told them they would be transferring the money from the General Fund. They were funding it out of the General Fund but they were controlling all of the expenses in the Animal Services Fund. Finance Director Tanner then went over the FY 2008 Proposed with regard to the Animal Services Expense Comparison. Councilwoman Lichter referred to the Capital Outlay for the animal shelter itself and asked if they took off the interest made on the $500,000 over the last three years. 32 Council Workshop July 27, 2007 She asked where the interest was. Finance Director Tanner informed her right now they had $530,000 to build it with. Councilwoman Rhodes stated they had 2006 actuals and asked how come they didn't have 2007 year to date. Why was the money spent in 2006? City Manager Williams explained she was looking at the miscellaneous data. Councilwoman Rhodes asked what kind of memory card costs $371 for a camera. City Manager Williams informed her it could be a type-o. All the departments had access and did their own entries. They would go back and research that. Councilwoman Rhodes told him to research all the rest of them too. City Manager Williams commented on this department originally being budgeted in the General Fund and was moved into a separate fund in order to do a better job of tracking and projecting the proposed expenditures. He was pleased they were only $11,000 away in this Fund. He knew they had more work to do on the Enterprise Funds. They planned on devoting that interest from this point forward. Councilwoman Rogers commented on the interest and asked about the design fees they had already expended that were directly attributed to this. She asked if it was because it was in a different fiscal year. City Manager Williams informed her yes. Councilwoman Rogers asked if it was the same thing with the interest revenue. City Manager Williams thought the important thing was they all know at this point the challenges they are faced with. He spoke of needing every dollar to build this facility. There have been a lot of comments made about whether or not they were going to move forward. They understand it has been a long time coming. He knew the residents were impatient. They have certain procedures and protocol they have to follow to build this facility. It will happen. Every time it seems like they get moving down a path, somebody comes along and says they have people willing to make donations and it slows the process down. They are listening to these folks and taking them seriously when they come forward and they are evaluating all aspects of this project to get the biggest building they can for their buck. They have to draft an RFP with the emphasis that it would be a design build facility. They have to create an avenue within the RFP that would allow contractors to come forward and offer up those donations. He spoke of having no way to bind the people who were making the donations. He suggested they make provisions for that donation. 33 Council Workshop July 27, 2007 Councilman Vincenzi stated he has gotten a bad rap over the years about being against this. He isn't against the animal shelter. He was against the way it was presented. All he ever wanted was accountability. Now it looks like they are getting accountability and he was all for it. The sooner they could move ahead with it the better. City Manager Williams informed him they were their doing best. Mayor Thomas asked what happened to Ms. Saunders. City Manager Williams stated he didn't know. She quit and was no longer with the City. Mayor Thomas felt that was too bad. Mayor Thomas asked who was running the shelter now. City Manager Williams stated they had an Animal Control Officer by the name of Johnnie Dail who was overseeing the operations and doing a wonderful job. One of his favorite qualities was that he was a retired member of the armed services. He can deal with personalities very well that they encounter on a daily basis. They were making some changes to the current facility. Councilwoman Lichter stated it looked much better and that the animals were very content. One of their problems was they get people that walk in from Edgewater County and want to bring animals. Volunteers don't understand this is an Edgewater City Facility and they don't have a map to know which was County and which was Edgewater. They have to look at their drivers' license or voter registration because they can't take in animals other than Edgewater animals. They have New Smyrna people coming to them due to them being in a sense low kill. They are turning people away that aren't Edgewater people. They have to. City Manager Williams stated he was going to go back and start the modifications to the Defined Benefit Plan. They would probably be calling an emergency meeting of the General Employees Pension Board. From there they would be calling for an overall meeting of the members of the Defined Benefit Plan. He felt Council would probably be getting some phone calls. It was highly controversial at best but necessary. They would continue to refine the numbers. He then questioned how many more situations they wanted to have before the final two budget hearings. If he had his preferences he would like to meet a couple of days before the final budget hearings to do a final presentation. 34 Council Workshop July 27, 2007 City Manager Williams informed Council starting next Thursday he was going to be out of town on vacation. Mayor Thomas asked what the millage goal was that they were shooting for. City Manager Williams informed him 4.89. ADJOURNMENT There being no further business to discuss, the meeting adjourned at 12:27 p.m. Minutes submitted by: Lisa Bloomer 35 Council Workshop July 27, 2007 \, 1J "' City of Edgewater FY 2007-2008 BUDGET WORKSHOP r' L-- Agenda · Goal · Major Challenges · Computation of Millage · Projection Parameters J · Council ConsiderationlDiscussion I · General Fund , ' . · vi ater and Sewer Fund · Refuse Fund , · Stonnwater Fund , · Animal Services Fund , , I \, , f ~ Goal for Today: Council consensus authorizing staff to advertise tentative millage ~ate'for the Fiscal Year beginning October i, 2007 and end~l!g jSeptember 30, 2008 which is pursuant t~ Truth in Millage 0fRIM) compliance as set forth by Florida State Statute Major Challenges · Property Tax Reform* · Declining State Revenue · Sluggish Economy . I · COlltract Negotiations · Cash Reserves , · Capital Replacement* · Maintain Current Level of Services* , \ *Represents Priority Objectives outlined in the Strategic Planning Report 2 , I " ComplltatiQn of Millage Rate · Majority vote allows millage of 4.89 = $5,563,624. r . FY2007 mIllage of 5.70 = $5,953,676. · Two-thirds vote allows millage of 5.37 = $5,807,90l. · Unanimous vote allows millage of5.70 = $6,160,189. . l Proj ecti GnP arameters · Annual Wage Adjustment ?%. · Health Insurance increase 14%. . · Fir~fighters Pension Employer conVibution 16.8%. · Pollce Officers Pension EmpJoyer contribution 26.7%. · General Employees Pension Emplgyet: contribution 48.is%. 3 .. Council Consideration/Discussion · General Employee Defined Benefit Plan. · Contract Negotiations. · Cash Reserve. · Emerging Capital. · FrozenN acant Positions. Council ConsiderationlDiscussion General J;mployee flef1J1ed Benefit Plan · FY 2008 Annual Required Contribution $1,222#,000 or. · ASIa percentage of payroll 48.25%. · 91 % increase over FY2007. . , ' 4 "\ Council ConsiderationIDiscussion Cont. General Employee Defined Benefit Plan ARC $1,400,000 --""""'~- __. -"-,..--- $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Annual Required Contribution Council ConsiderationIDiscussion Cont. I General Employee Defined Benefit Plan · Why the increase? · Assllmption projections have not accurately reflected the actual experience of the plan. \ '- 5 " Council ConsiderationIDiscussion Cont. General Employee Defmed Benefit Plan · For example, in FY 2006 the ARC decreased from FY 2005 as a result of the following changes in assumptions: A.~RunlJltion Changes \Vhilt' (:omplt-tang thix vahlaliull~ Wl': Icvicw{.J !llt -actuari~1 a:iS~DlptJOns. 'nuS. report mclude... tilt: fnllouing :J.ssu:npl;on dlanges: }> FThe mOTI:dit)' t9hlc hllS bf.PfI llpd:uetl1o (he RP 20(t\) Combihl'd Mor~hlY Tahlt:' projocled to 1.005. ~ \~.'c adiuskd the ~ilhdrllw~1 aS$umpuon {O reflect p:tst expcflOlH and the expected tUt1l0V('r for furun~ y('ar~. ~ 'W'e ha\'c lIs$lJrned a tClircr1lf..1U It:!:c IJlhcr than YVUJ plau':!j norm,,1 n.'lin.'1J1c:l( a~~c. 111is aSl;umptio;1 rx-Ut'f frf](,C'"If nm MllK'3tions ror future rcrircmenl agc$. Council ConsiderationIDiscussion Cont. General Employee Defmed Benefit Plan · Specifically, Retirement ^/.:c AfUVC~: Ill% ~r age SS 51f% 31 age 60 7W. M age (.1 HiO% b;; 21\C 6'1 N"tln~l rttittm(~! m>e as defined ill . ",1 Summary Ilf Plan PlOvj~iot1~ Jrla(:livl~: NnrlllalrCliItllJtll12r.e 6 .. Council COQsideration/Discussion Cont. Genera! Employee Defmed Benefit Plan · Exp~rieJ1ce has shown that in fact 100% of the eli~ible participants retire at "Normal Retirement Date," and continue to work as well as accrue a benefit, which is why we seeithb drastic increase in ARC. . Council ConsiderationlDiscussion Cont. I! . ' ~.. General Employee Defined Benefit Plan · Another contributing factor to cost, is the pIal} provision which allows the recipient to coritiriue to accrue a benefit. For eJ5.ample, 'Annual salary -1-' ; $ Years oi Serlice Mu~iplier .... ' Annual Benefit ' $ ,- --'--' . ,- Perce~t In~~e Ann~!1y , SQ,OOO -' ! 25 2% 25,000 $ T 5I,~~_$ 26, 2% . 27,300 $ 9.2'0% 55,1251$ - 2ft -..... ~ 2% :.t. ~ 29,768 $ '9.04%" 0' /t-_o"::' ~ _. 'A 57,~1. $ ~,7~5. $ 63~~~. 28. 29 30 20,(," 2% .- 2% ..... ._i....____ ...... 32,414 $ 35,250 $ 38,288 '''8:89% 8.75%' 8.62% -1 . 7 , Council ConsiderationIDiscussion Cont. General Employee Defined Benefit Plan · Options: 1. Do nothing at all. 2. Freeze the Plan. 3. Terminate the Plan. 4. Modify the Plan. Council ConsiderationIDiscussion Cont. O',:: t General Employee Defined Benefit Plan · Do not~ing · Costs continue to increase. · Thr~atens the City's ability to continu~ to prdvide the current level of services. 8 Council ConsiderationlDiscussion Cont. u General Employee Define9 Benefit Plan · Freeze the plan · Emplqyee receives accrued benefit up to the point of freeze and is moved over to the , defin~d contribution plan. · Major impact to employ~~~ mgral. · Estimated cost over a 5 yr period $1.5 million. Council ConsiderationlDiscussion Cont. General Employee Defined Benefit Plan · Terminate the plan · Employee receives accrued benefit up to the pOV1t of plan termination and is moyeo over to fIfe,defined contribution plan. · Major impact to employe.~ mpral. · Estimated cost to terminate $7.2 million. \ 9 Council ConsiderationlDiscussion Cont. General Employee Defined Benefit Plan · Modify the~plan to allow particip(}.nts to continue to work/retire, but not accrue additional benefits. Once the employee decides to retire, they would tran~iti0n to the defined contribution plan. · Moderate impact to employee moral. · Estiiiuited Savings of $644,000. Annual'Saiary Years otSeNce - --~--_.'-'-'-- ~~Iti~ier Annual Benefit --_.~- Percent Increase Annually · ~ 5O&OO~ $ 52,500 $ 25 26 2% 2% $ '" 25.000 $ 27,300 $ ...:.:., ~'"l1lllit~~0ll .... , J.2~~1 55,125T$ n~ 2% 29,768'T f ~~%i . 57,881$ 60,775 $ 63,814 .. ---.-2~ '. -29 30 2%' 2% 2% - 32;41:1 $ 35,250~ $ 38,288 ,"', .- --..+." .- - .. 8.89% 8.75% 8.62% Council ConsiderationlDiscussion Cont. General Erpployee Defin~d Benefit Plan · Modify the plan to the extent that participants are not eligible to retire before reaching age 60. I . · MajOr impact to employee moral. I · Estimated Savings of$579,OQO. \. 10 Council ConsiderationIDiscussion Cont. General Employee Defined Benefit Plan Questions? Council ConsiderationIDiscussion Cont. . '1 COl1traet Negotiations · Bargaining units have been notified to initjate negotiations. · All contracts shall be for 1 year. , · Major considerations: Anbu~l~ wage adjustment Annual buy back of accf4als Medical Insurance 11 Council ConsiderationIDiscussion Cont. Cash Reserve "j! c, · General Fund Budget as proposed provides for excess revenues over expenditures by $268,092. Enterprise Funds need additional time to review. · Contract Negotiations and Modifications to the General Em~loy~e Defined Benefit Plan may increase qr decrease excess cash. . " · Suggest Council consider establishing a minimum amount of excess cash to achieve in any given operating period. Manager rec'omm,ends $500,000. Council Con~id~rationIDiscussion Cont. Emerging Capitql · Current General Fund Budget does not appropriate funds for capital replacement. · Modifi~ations to the General Employee Defined Benefit Plan may potentially be the source of necessary funding. \ · For example, if Council modified"the plan as recominended, $222,264 would be available to the General Fund fo; capital related expenditu~es. " " .. .\ 12 Council ConsiderationIDiscussion Cont. Emerging Capital ~eiera' Fu~~ -c.~pltal lt8m~ I Leisure Services John Deere" 997 Com. z- Trak Diesel '12: Mower Sh-Ufneb08rd- Clubhouse . ShtfriebCtrti--COUrts'-W/LiQhts ~~~.9~~-~.~~~_ -. Engineering Fees JRO!a..yP"~P'''rking ~oi M.ayrs Park ..Iii ..... _. _ _ . ' f~FE"1A rl3~~~ ~..t'~~a.~ fa_~H_ity _ _I Net LeisUre ~ervlces Capital expense.' '- - -- ~ ~ .. 0'0 ... ."- _ I Fire oGpaitment tMonfto/ Upgf.idil~ior ETCbv12 Lead UHFNHF Radio for S55 '.~inina Manikin :800 Mhz Base Station for Admin I - 't .. ~ Sets Fire Tum Out Gear Ambuiancs"Stretcher :R~pl~?e~~ 'E~S..Suction Units . ReplacemantTransport/Fire Capable Rescue Truck ; D-~5 ~~~I~i~:: _ i!..- ~~ ""' Community Sene. Truck uiility" "rn.ick (F-35~,'- 4~4BR). I _ . ~ _ !,I!:e ~J>artm..!.!ll.-CaJ~I~1 !'xpense' 12,487 i 120,OqO" 217,606 i .. 96,006 24:ll991 50,000 50,000 569.487 1 (243.6/5)1 325,8121 ... $17.000 1 ~ :$3.000 ~$3.oo0 ;.' $1.5QO i \ $5.600 $4,100 ~$3,000. $2PO:000' $40,006 . -$24,000 $32,000 . 333,200 .j, Council ConsiderationIDiscussion Cont. EmefgiJ;1g Gapital pon~ ~p.rtin.n_t r"-p.itiolvet,icIH (impalas) UghtS . Cage' Window e.,.. S.~pino'~.l~ _ ~st"I!~.E."oni~ '~"1. ~. ~e~~~I.t!' _(~~~~)_ 16856 3000 126 410 " 350 600 1 ~ Vehicle * 21 ,9~~ i 3 . Patrol VehicktS' 65,828 ~ 1~,~ , 2 - C. I. 0 Vehicles: 27,972 '. ;5. Portable Radios (53,500.00leact'l) 17,500 PoliO. !1-pa,."ent capltale~pe.n_~ . . c..ptUl for O..eloprlMllt SelVa. Truck fOr inSpector :: ~ 8n.1s o.p.rtrMnt ..Road lIte--Surfl,eing i Si.dewalk Repair -i-Dump Truck \ Tf.~C~ M~ (~) R~o...~~~c.e_'7'!nt . Th!lmC!..e~~c 1n5~~er ~ To.~.1 G~ne"'l rund ~pl~lltam. 5500.000 00 -550,000.00 $60,000.00 ,. ~1'(S:~' ]5,060 .-....~ Shets ---!!!:!!!.. . 1,414,310 13 Council ConsiderationlDiscussion Cont. Frozenr{r acant Positions The following positions. by department. are authorized in the 2007 budget but currently have been frozen or eliminated. City Manager Finance Police Fire Assistant City Manager Accounting Technician Finance Clerk I Administrath'e Assistant . Plans Permit Clerk Police Ollicer (3) \ Firefighter (3) Reserve Firefighter Equipment Operator Maintenance Worker Grants Administrator I Must"Um Curator Maintenance Worka Service W orkO" Sclvice Worker Main~ance WaTka Anim;t Savices Administrator Building Street Leisure Services "- Field Operations Refuse Stormwater Animal Services General Fund II \ \ 14 General Fund Revenue Comparison 2005 Actual .2000 ACiual 12007 Budget !200fVID 12008 Proposect T~es } -7~~~76~.f 8~?~:~~?n.9j~,806 T$ 8~~~J$ 8!~~:'~~9 Licenses and Permits . $ 592,707 $ 417,158' $ 558,129 i $ 200,358 i $ 222,000 ' 'Inie-rgo..emrmlntal Re..enUe J'$ 2,300,389-$ '2,197;785 I $ 2,282:634:$ 1,487,052 $ 1,946;213' I - .._-._- ------.-. ............. '" .._-.- ~- _.." - ----...--.,- -.........- i Charges for SeNce : $ 366,825 ; $ 630,449 $ 512,906 $ 384,800 $ 449,889 : - .--.----.-.,' _. _.- l' -". '-'--'---'.'--4--' ----..-- - ---..---- ,.-.- .' -- .-_.- 'Y~~~_~~i~~~~~~s ~.~ 1.0~,~?l'.f'.t .132!~~f~ 22~~O? ~!.~~~~~~ _..!~,1?~_; .Misc re..enue ; $ 418,922. $ 1,484,111 $ 247,800: $ 80,926: $ 100,276: ..___...._.. .. ...._ __._....J_._ _._____. "'___'-' .. --.. .. ; Other Sources $ 1,420,500 I $ 663,991 $ 900,000, $ .. ! $ 535,928 ; Tota I i $ 12,494,776 $14,110,994! $14,107,3821 $ 10,454,4181 $ 12,065,175 Comparison Cont. -Total Proposed Revenue for FY 2008 -$12,065,175 $10,000,000 $9,000,000 $8,000,000 $7,000,000 16,000,000 5,000,000 4,000,000 3,000,000 $2,000,000 $1,OOO~eoo ~ . 2005 Actual o 2006 Actual . 2007 Budget El 2007 YTD 111 2008 Proposed "il 0'" ',,>-'" 1>",0 .~0 ~0'" ..'lit' ~ ",,"" .--li -,,---oS -, q0 ~0 <;:,0- ~r {;:-o ~ ....0... <<0 'lJ e<::' r/? 0 ~",0'" t$'~ ~CS \ ~ ~ ,cJ' 0",,0 c.; <(~0 v ...0~ ,<::' ,:;,0 cJ'''' ""rS' ~ (,...0 /",0 ~.. . &,0 15 Comparison Cont. General Fund Revenue Detail -Broad Revenue Category "TAXES" -Total $8,740,699 TAX REVENUE 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 ~:~~~:~~~ ~ ~~c _ . ~ (ii, ';a1I,ItJ.,..~ o~~ o<fi'~ {i7~~ t-.p~ <i'<P If-'cr c:~~'" <tfP'" ~~~ ,c!-"i; ~"i; ~"i; ..,~ ..,i" 4' _~o n~.;;yO \",;' rI' vo~ A>a ~ ~" 9' 5>' 1/-" v .". U ...1' ~ -c (J" ~ r.o;:, A",'t' ,$-,'t' ~~ ",SJ dY' ",,,0 6" &~ -*"!7 ",-S' #J ~<$" ,#'<; ~,'t' ~-1P ~.$q ~-1P &~ n'i" ~~" 0; -# ~~ $'~ ",-S' *'~. ..,0 ~# . 2005 ActUBIs . 2(K)6 Actuals 02007 Budget 02007 Y-T-Q .2008 Proposed 16 & Revenue Detail Cont. -Broad Revenue Category "LICENSES AND PERMITS" -Total $ 222,000 LICENSES AND PERMITS 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 o !---l~-.a,-' . _......-":t. ~"'4:- ,yt<' ~l(y ~l (;-~ ,/' (;-~v ~-!' ~ ,I'~ &~c} &~.,,,, ".s' ~.p..::: ...~ ~~ ",oSv "'v~ ~.:/ ".I' p~ .....v AV Q~ ~v ~., ~ ~~ ,.~ q"/ qv {l ~<i! ~4Y .s-' #' ".y v..,<i! ~ .2005 Actual. .2006 Actual. 02007 Budget o2007Y-T-O .2008 Proposed Revenue Detail Cont. -Broad Revenue Category "INTERGOVERNMENTAL REVENUE" -Total $1,946,213 INTERGOVERNMENTAL REVENUE 1,200,000 1 ,000,000 600,000 ill II 2CXl5 Actuals .2006 Actuals o 2001 Budget [J 2007 Y-T-D . 2006 Proposed 600,000 400,000 200,000 ....~ o f<<4> ,q;-</j <t>#' 4<'" {yf ...iT ~Q ....;,~ /' ~",,,,,,, ...c- ,;,~4<~ #<1' f<<"'~ "v<# <:>"'V ;".-S-'" iT# cfirl"'" &*" v{f ~# <{Y~q; N~4" ~",-i<-~ ",-1"-<>'" ",q}"'~ "'...#' <,v"'''''' ...~ #"'Vr.#~<yv# ,$" ..".- ~ -9>"" V f<<~ .... *"' 'C' <,'<> ",'" ...... ~o- dJ "'~ cP'" ,:s ,s:.~ '" ",eJ'F 0 cP.,g ... 17 Revenue Detail Cont. -Broad Revenue Category "CHARGES FOR SERVICES" -Total $1,946,213 CHARGES FOR SERVICES 400000 350000 300000 250000 200000 150000 100000 50000 o lI~', . 2005 Actuels .2006 Actuels 02007 Budget o2oo7Y-T-O .2008 Proposed ~ ~ ~ ~ ~ ~ & ~ ff ~ ..., <<<() _" ~u ~<< !<-~- '(- .i<-~ , ~ ~q,v ~'" ((}:fP .,<8' f<>c.::5 ",<0 ~v"- 4? f A.:~ .. 1,& ~ <I:' ,>V"- ~q; ..<<f' ",<8' !f--<?'" f.'''''' ~v<tP ~.f" ~<() <P <<~ <;:-'l:-"- ,s-4> .pO gY"~ ..<I:' 0<< ~O f,p-u oG Q:-4P ~",,- 0<<7 vO u <fF Q'" Revenue Detail Cont. -Broad Revenue Category "FINES AND FORFIETURES" -Total $ 70,170 FINES 140,000 120,000 100,000 80,000 60,000 40,000 20,000 o tli._ ~- J1l ~ ~ # ~ ~ ~ # # ~ # ~ &~ ,{:-' &'" ",'Y"" <tI" \"...,,:r "",~ -,#" _"",~ ".:t?' .s-d' ...". 6' w .... '" ",<<> d" dY ~~ ,"" '" .,' 0 <p p"" ,;,& ~'" ,If. ",'l> #' {<,."'" ,c'J" ~<tf' ~",,<<- <3-- <p 4"" 6-<<> -"*'~ "'~ c:r ,,'" 0 ",-'" #4' ,,0 ~ "",ss cP.s- <p"'o ",,, ,,0.... #'~ >5'"""" <p ~. ,I .2005 Actuels .2006 Actusls D 2007 Budget D 2007 Y-T-D .2008 Proposed 18 Revenue Detail Cont. - Broad Revenue Category "MISC. REVENUE" -Total $ 100,276 Misc. Revenue i:mr!(~z~.~_,~~,~Jt~~] ~0'O ~~~ " "", v'O ~v~ ~v~ ~~ v<# ~~' ~,?-v v~v s\""' s"" ~~ ~~ 4-~ ~~ _<<-~ +-~ 'O,'i:j v-<::-o~ ~o~ v~<<; 0~ ,Q-<<J ~.;s 4'",. ~~~ _,,<<J ~<Q ~~v .$:-'i:j .$:-'i:j ~'<? o~ _c.,<<J ~ 'Or~' ~' ~~ ~~ ~ v ~ ~ & & ~ ~ Revenue Detail Cont. -Broad Revenue Category "OTHER SOURCES" -Total $ 535,928 Other Sources ~i~ f1-~F~ -.::, , ~ # ~,~, _6 . '":1,., ~\S _\'?- V ~\S ~~. ~\S 0-<'" ~,;>-"" 'It !G.. .~' ~ "'~ ". ",Xt ~~ -<.."<"' "I~ .;::,Cj /'is'' /'"LO ~v ...V -- ~v ~ ^ ~v "x oy " " ~'" :-: ,~v _\'?- <<-v '":1.(( fv<<- .Qv ~ .Qv (yv f<'V .~"" 4- ~yo 0~ ~yo ~ ~~~ 0"" ~~ (v~ OV fv~ o~ ~ ~~ -<.."<"' ~~ <? ~~ ~~ 11 2005 Actuals . 2006 Actuals o 2007 Budget 02007 Y-T-D .2008 Proposed -.- "1 . =. . 2005 Actuals , . . 2006 Actuals , 0 2007 Budget . 02007 Y-T-D ~ . 2008 Proposed r"~1 19 GENERAL FUND EXPENSE COMP ARISON . . - -.. ACCOUNT DESCRIPllON ~ r_ '" .. _......... _ Personnel Sel\ices .; .~, '-,_. - ._.- Operat~ng _ ~pit~1 ?~I~y Debt Sel\ice .......... - _.~ Transfers .... ,..-......- ........-.. .. GENERAL FUND r~~I-~t~~ ~, ~~~i.j6i~3L 2OO;'~~~i;;i _2~~~~~~~1. 2008 ::~~ . _.~,!93,0,!~ _2,280,~?2 2,642,860; ~,70~,3~: i,311,7~ , 783,599 1,300,261 {3o.fB48: 488,816i 522,208 952,110: -'-1,004:007 1,300;5001 454:16.~ .'. _~~~~.~ -31,017:- - -737,8011 453.4291 6,6271 409,698 11,400,873; 13,025,973: 14,107,882 9,082,409: 11,837,680 COMPARISON CONT. 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 , 1,000,000 . , o ' ser/l~ l'elSOl\l\eI l . 2OO51>ctuals . 2006l>ctuals o 2007 Budget 02007 Y-T-D . 2008 Proposed o~(3\il\9 .~ ()Il\l3'i call' . oeb\ serl~ \lal\slelS 20 COMPARISON CONT. Operating 20% Debt Ser.ice Transfers 4% 3% Personnel Ser.ices 69% COMPARISON CONT. ACCOUNT DESCRIPllON CITY COUNciC ciTY MANAGER ciTY CLERK. FINANCE' PlANNING ECONOMIC DEVELOPMENT t Bun:.biNG .......... . ...-! PERSONNEL 1 otHER GOV. SERVICES PdLICE-ADMIN POLICE OPERAllONS FIRE ADMiN FiRE OPERAi16Ns COMMUNiTY'SERVlcES COMMUNrTY SERvicES STREETS DEPARTMENT lS ADMIN LS dP-ERA llONS GENERACFUND -j 2005 Actuals .2006 Actuals - -58.20g..... 372;412 21>9;587. 69o;56il' 253.294: '12.416' 314.698; 227.948 T 1.468.442: . 335;084 2.5189.446: 3"~8~~_ 1,978.685' 233:896 -0.- 450.736~ 540,0001 ",' ~q.f 909.5071 11.400.873 : 2007 Budge 2007 V-T-O '2008 Proposed 54.448"'62.885 43.167 "65."1'78 ~~.~.~~1 -!.5!:J.7,27: 521.~0~ 429,895 27~,~.38: 30\~5~j _18~~~~. 3.?~..E'~3 ?~~~.~, ~7.~261 ~5f.~7, ~7.358 284,331, 358.462; 268.683 373.296 -f{49S" -1s.30et '14,727' 12,386 304.514 ~ 338:483! -227,491] 31'8;998 229.741 214.446~ 135:539 265.040 - . -- ~.- . -. I .-- ,... - .' .,. -.,... 2.273.625 2.210,635 939,320: 1.379.472 462.220, 5'00)38 393.130:561,792 2.996~38"5; 3.17\940 2.368.259 2,i172,084 341.2331 ~~~~?1f 368.]~~ _~2~~~~ 2,~~.9.3.38i 2.~56.107, 1,7~7,378 2.~, ~~,6 21,6,457, 204.630 142,111 217.872 198,70S1 261-:-33st 179.691 "0 546,556' 657.7641 175:121- 326,596 592:465~ 593.319\ 434.469 462,700 .......- _.. ,.... ..f - -- ,. ,-- ... 868.285. 1.475,921i 624,011 876,262 13,025,973: 14,107,882; 9,082,409 11,837.680 21 COMPARISON CONT. 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 o .2005 Actuals .2006 Actuals 02007 Budget o2oo7Y-T-D .2008 Proposed if & ~ ~ 0 ~ S N ~ ~ ~ ~ b b b A ~ b ~ OV "'~ ~cr ~~ "Y <'I-~- ~'<J ~f() -~ 0' I {J~- (;v (;v It ,f 0'C OV # (;V # ~ R~~Vrl# f'-"""",,, ~-S' ~.p..., ~ (j ~" $' ~, q-J' rvSJ ~ ,0' o,lt; {-'" .if ~'" rvtt o,lt; t!f (l v., .if (} ~ (j {if qVl ,I' flV o~- ~ oq ,<!. ,<!. ~ o~' (} ~Q ~ ,& #,,~,,~ A" ~ ~*~ oV ~,/,I rv"'- O~o o~' q (;0 (;0 o,~ ",0 COMPARISON CONT. ctf.M.NTY SER./K:fS 1.84% S1llfETS OO'ARThfNT 2.76'l 1 \ \ " art 00l.N:l 0.55% CITY ",,"'GER CITY Q.fJlK 3.63'> 2.61% FlllSOtoNI. 2.2.% OllfR 0001. SffiVW 11.65% PCU::E 0Im\ 'OONS 2..26'l 22 Gen~ral Fund Summary · Total Revenue $12,065,175 · Tot~l Expenditures $11,797,083 · Total Increase Fund Balance .:-fCash" $268,092 General Fund Summary Cont. · Total Proposed Expenditures have been reduced from FY 2007 Budget by 16.38%. . Personnel Sen.;ces . Operating . Capital Outlay . Debt Sen.;ce . Transfers 23 . Questions? ::. Water and Sewer 24 WATER & SEWER FUND REVENUE COMPARISON ._~.-_... -..n__...... ,~._ -12005 Actuais~ - -2000 Actuals 2007 Budget ;2067V:;=-0 ;2008 Proposed ACCOUNT DESCRIPllON CHARGES FOR SERVICES 1 ~,337,_O~---, 6,774,576 7,436,0881 5,122,962 7,015,060 ~.... .... ~ .'.- .., -~ --- .r ---4-54:11-6' ---'---1 MISC. REVENUE 426,669 401,290 64,000, 1,299,579 _n _... . .._ ~._._ -- -i _... -. .. --\. 2,oi2;9641 _ ___.__J -~..~ OlliER SOURCES 898,817: 1,068,295 01 1,519,000 ___ ._. _,_____ _ h .- 9,301,6561 5,186,962 9,833,639 WAlER & SEWER FUND 7,662,582; 8,905,673 .- - COMPARISON CONT. · Total proposed revenue FY2008 · $9,833,639 8,000,000 3,000,000 '.-, 7,000,000 6,000,000 t \..'\1 ~, ,-, .J . 2005 Actuals : . 2006 Actuals : 0 2007 Budget 02007 Y-T-D o 2008 Proposed I . '_'1 tl 5,000,000 4,000,000 2,000,000 i 1,000,000 \. 1liI" " \ \ o 0i6.RGE5 R:R SERVCES MSC. REVEN..E 011-fR SCll.R:S 25 . COMPARISON CONT. OTI-ER SOLRCES 15% MISC. REVEN..E 13% WATER & SEWER FUND EXPENSE COMPARISON ACCOUNT DESCRiPTiON ,i005 Actuals ,2006Actualsi200i Budget 1007 Y-T-D 12008 Proposed' ......._. ...___.. __ _.~. _.___....~ __.. ......_._, _'__.._n.__" ..._... +. .__..____ Personnel SeNces 2,480,440, 2,541,145, 2,734,663: 2,080,161' 3,151,797 ---.... - '---"f'" ..-.------., . '-" -t -.._~ ... -_... ,.. Operating 3,305,744, 3,913,658 2,238,504' 1,507,187 2,225,148 --, '. ',. --, -~. --..--- ' ->-~ .... '~:i ----~--... Capital Outlay 1,426' 28,698 279,700 3,995 139,618 .____.. .' .... _ _ ....__ . ...., _ ___ __J .. __. .... 'Debt SeNc.e 1,439,142 1,431,874 2,292,806 2,667,341 4,127,028 .. ____.__ ___..._. ....... _..-- "- n.' c1 -, Trans~rs_ ___... _ 1,064,725, 1,024,802 1,360,000 24,5161 712,195, WATER & SEWER FUND 8,291,477, 8,940,177: 8,905,673 6,283,200 10,355,786' 26 ~ 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 o COMPARISON CaNT. 11 Personnel Services Capttal. Outlay Debt Service Transfers Operating COMPARISON CaNT. Transfers 7% Personnel Ser.ices 30% Debt Ser.ice 41% \ Capital Outlay 1% Operating 21% .il ~ . 2005 Actuals . 2006 Actuals o 2007 Budget 02007 V.T.D . 2008 Proposed 27 , Questions? Refuse '" 11III".' w _ \. 28 REFUSE FUND REVENUE COMP ARISON ACCOUNT-DEsCRIP~6N or-ioos-Actuals - . -----" .-...--.... ------ INTERGOVERNMENTAL REVENUE 1,224,518. ~HAR~~- ~qR S~R~I~ES - -- f,072~~21. _ i -.:1 MISC. REVENUE i 13,438; REFUSE"lillUlY FUND- 3,310,738! 2006Ac!ua~_.._:2607- Bu~~~f~oofY-i-D I 114,010 0; 0 --- -"--'- _...-~ -.-....; 2,240,262, 2,397,000 1,776,434 _d__:;r ___ _, ......._..4. ._. ._- 3,707, 2,000 517 2,357,979! 2,399,000: 1,776,951' 2008 P reposed o 2.480,000 1,000 2,481,000 COMPARISON CONT. tmroOVERlf>9ITAL REV~UE 0% MISC. REVENUE 0% \ CHARGES FOR SERVICES 100% 29 ~ REFUSE FUND EXPENSE COMP ARISON ACCOUNT DESCRIPllON :2005 Actuals '2006 Actuels '2007 Budget '2007 Y-T-D '2008 Proposed: :PersonneISei\1ces - -. 96~!i50T---964.424'- ----iJi7;059;---790,931; 1,158,532; :9ie~ting_ 1.956,92~ 1,68~!660;- 1,1~3:-3~if -790.39~i 1:0_~1;~~~ \~~J>.i~al.outlay _ _ QJ 0: 6,000 0 43,000 ,Debt Sel\1ce 10,1651 21}i4! 101.5751 89,5155' 159,670, ~TransreiS -294,0150: - -0; - i,(foO;- O~ 213,773 REFUSE Dfii.llY FUND 3,245,044 2,067,328 2,399,000; 1,670,826: 2,596,340: COMPARISON CONT. 2,500,000 2,000,000 'i a 500,000 ~ .. .2005 Actuals .2006 Actuals o 2007 Budget 02007 Y -T-D . 2008 Proposed 1,500,000 1,000,000 o ~-,. ~.~_~.J , Personnel SeNces Operating Cap~al Outlay Debt Ser.1ce Transfers 30 COMPARISON CONT. Debt SenAce 6% Transfers 8% Cap~al Outlay 2% Personnel SenAces 45% Operating 39% Questions? \ \ 31 Stormwater STORMW A TER REVENUE COMP ARISON ACCOUNT DESCRlPTlON . ..- ....-------_.------ LICENSES AND PERMITS . _..._._.~~_w__.___ t CHARGES FOR SERVICES ~. MISC.-REVENUE - - --..- --~'--'--." t OlHER SOURCES - ___0__._-0.-. _. ... _ _._...____ tt STORMWATER MANAGEMENT 2005 Actuals o 862,727 ~..._.... - 91,908 -. 0 954,635' 2006 Actuals '2007 Budget 2007 Y - T-D ' 2008 Proposed 24,1981 30,000 15,050] 20,000; ~~fn- -@~~~ -.. ~.~I?! ~o'@J 12,757 75,000 106,244: 230,250: .. _.~ ." ----1 _........~ .. -~- 1,270,469, 508,403' 130,825 0 2,199,841 1,513,403 934,9361 1,170,250 32 COMPARISON CONT. 1400000 1200000 100000o 800000 ~- "f. 11'1 c'l II 2005 Actuals . II 2006 Actuals o 2007 Budget D2007Y-T-D o 2008 Proposed i 600000 400000 200000 o ER\;I\1S 'JIceS E.'J€.~l.le ~seS ,..~o I' GE.S rO\l. S~ . \;IISC. ?: \..\c€ . 0"Ip.?: . II ~A l1li \l. sOI.l\l.CeS 01\,\e COMPARISON CONT. MISC. REVENUE 20% SOURCES 0% LICENSES AND PERMITS 2% CHARGES FOR SERVICES 78% 33 . - STORMW A TER EXPENSE COMP ARISON ACCOUNT DESCRIPTION --- - - .~- '." · Personnel SeNces ~. - .-- -- ......-- · ~e:~~t_ · Capital Outlay ~.~ .--._---- · Debt Ser\1ce · TransferS .. St6RMWA1ERMA~GEMENT: : 2005 Actuals , 2006 Actuals 2007 Budget 200fv -T~D 2008 Propose<f .. ____.,_.~._.._~'- __..___4. ~"___.._" '._4. ,__._~. ..u____, '433,553 393,217; 453,312- 303,086 461,297, .., .~.--1' ______.J. ____.. ...." --.--_.- -'____1 396,~3,_ 536,81~j 322,647" ~74,ll:i~ 254,~ 0: 0, 341,47f 161,184' 139,000 .~_-"'''l --.- .......,....____.. ".~--.:,... ~-._,._- ~,-...,....... 101,785' 87,085 395,973 212,183 408,531 11'2,952, --.0' --""0; -- '0: o. 1.045,273' 1,017,117 1,513,403: 851,296 1,262,829 COMPARISON CONT. 600,000 300,000 '~~:r-w- 500,000 o . 2005 Actuals ~' r..' .2003Actuals . 0,' . 0 2007 Budget , o2007Y-T-O ~ .2008 Proposed 400,000 a ~ r~""; 200,000 100,000 . Personnel . Operating . \ Capital . Debt Ser.ice . Transfers ". Senices Outlay 34 . .' COMPARISON CONT. . Debt SeNce 32% Transfers 0% Personnel SeNces 37% . Operating 20% Questions? 35 . ~ t \ , . . ANIMAL SERVICES FUND ANIMAL SERVICES FUND REVENUE COMPARISON -ACCOlTNf DESCRiPllON 12005ACtuals r-2006 Aclliiiis -"I 2007 Budget f200iv-r-D I . 2008 ProPOSed-' ~:;~CES .l_______~I--.---.~ .____..!!' ---.-l---.~ LICENSES AND PERMITS i 0 0 0 0: 5,691 ~I~~G:~;~F~~RVICE~___~ -...---.--- ~~-'''-'~I ~t=-------~ MISC. REVENUE ~ol____1-~_~__~~_. 1,732 OTHER SOURCES I 0, 01 01 01 591,090 ANIMAL SERVICES. 01 01 0 01 711,120 36 . , . ~ " CaMP ARISON CaNT. 700000 ~~~~j~~l 600000 "".', 11 500000 , " . 2005 Actuals r . 2006 Actuals 400000 o 2007 Budget 300000 , ~, 02007 Y-T-D 200000 ", . 2008 Proposed 100000 .. ,,"... ., i - '." -- 0 - H .-, , S~R"\C~S NO \,~RtJ.\,~e &. fORf~\i'S R So\JRC~S ~NS~S '" f\N~S Oi'\1€: \.\ COMPARISON CaNT. TAXES 5%~ LICENSES AND PERMITS 1% CHARGES FOR SERVICES 7% FINES & FORFEITS 5% , ~ MISC, REVENUE .~ 0% 37 . ,~ . ANIMAL SERVICES EXPENSE COMPARISON !\~CO~~ DES"cFifp"t[off. Actuals [SERVICES :Pe;SoririeTse~ces 0 iOperatiiig if :Gilpriili 5Uifay '.0' ii:lebt ser\ice - 0 Transfers 0 ANIMAL SERVICES 0 ,2006 Actuals i(xrTsuOOET :2007 Y-T-D 00 o 0 ii- --' -6- 0: 6' o 0 o 0 i20llBPropoSed : , 0, 114,901 "l 0: _~9,!!.l!~: ~ 505,350 '6: 32,495! -I 0: 0: 01 722,311 i COMPARISON CONT. 600000 500000 ~ (J~ '- ,- A'll" 400000 300000 200000 100000 0 Personnel Ser.ices ~ ill .~ ,'.. . Aduals . o 2006 Aduals 02007 BUDGET .2007 y,T-D 1il200a Proposed " i3 :.,i: Operating Capital Ou~ay Debt Ser.ice Transfers 38 . '" .. '" COMPARISON CaNT. Capital Outlay 70% Persomel Services 16% Debt Service 4% Operating 10% Questions? 39