07-17-2006 - Budget Workshop
CITY COUNCIL OF EDGEWATER
WORKSHOP
JULY 17, 2006
6:30 P.M.
COMMUNITY CENTER
MINUTES
CALL TO ORDER
Mayor Thomas called the Workshop to order at 6:30 p.m. in
the Community Center.
ROLL CALL
Mayor Michael Thomas
Councilwoman Debra Rogers
Councilman Dennis Vincenzi
Councilwoman Harriet Rhodes
Councilwoman Judith Lichter
Interim City Manager Jon Williams
Assistant City Attorney Nicholas Palmer
City Clerk Susan Wadsworth
Present
Present
Present
Present
Present
Present
Excused
Present
SILENT INVOCATION, PLEDGE OF ALLEGIANCE
There was a silent invocation and pledge of allegiance to
the Flag.
MEETING PURPOSE
The purpose of the budget workshop was to discuss the FY
2006/2007 Enterprise Funds and General Fund.
Interim City Manager Williams went through the attached
Powerpoint Presentation. He commented on advertising the
budget workshop to be all inclusive in terms of all the
funds. Tonight he wanted to try to deviate from that to
advertise the agenda to just strictly focus on the General
Fund. He spoke of the packet he provided with quite a lot
of detail and a budget for all funds they probably would be
changing. He informed Council the goal would be setting
the millage rate and he also listed some discussion points
they would be going over.
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Council Workshop
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Interim City Manager Williams stated he wanted to discuss
where they believe their current position is. He spoke of
providing to Council in the past monthly revenue and
expense income statement types of reports for the General
Fund as they have closed those periods. They have tried to
estimate their expenditures and revenues for July, August,
and September to project the fund balance at the end of
this fiscal year and give them a raw position of where they
believe they are financially. He further commented on
through June if this was the end of the fiscal year they
believe they would have an ending fund balance of
$4,284,555. However they do know that at this time of the
year their revenue streams start to falloff and their
expenditures continue to pick up and they have some
associated debt costs that will be coming due towards the
end of the fiscal year that typically impacts. Through
June they have collected 85% of their revenues or $9.9
million and they have incurred expenditures of 64% or $8.6
Million. If the year were to end that would provide
operating income of about $1.3 million. He then commented
on an above the line approach, operating revenues and
expenditures and below the line approach which looks at
other financing sources. He further commented on other
financing sources.
Interim City Manager Williams then commented on their
projections for revenues and expenditures. They have tried
to be very conservative in their revenue collections and
tried to be realistic in their expenditures projections.
They feel they have done a fairly good job at that and they
hope they have more revenue and less expenditures to change
that bottom line number.
Interim City Manager Williams stated at the end of the day
they believe for the period ending September 30, 2006 they
would be at $1.7 million or 12.96%. He commented on the
Charter restriction that stipulates they need to have a
fund balance of 15% to 25% so they have to take that into
consideration when they move into the FY2007 operating
budget. The 15% is being calculated on FY2006
expenditures. The shortfall in Fund Balance based on those
numbers is about $274,000.
Interim City Manager Williams then went over the Taxable
Value Survey they put together. He has described to
Council what he thinks some of the problems are in terms of
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tax revenue and services they provide and our neighboring
cities. It has been a desire of past councils to provide
services which are consistent with our neighbors to the
north but at some point it appears like it has a negative
impact. These taxable values by category are based off of
the FY2005 values that came off of the Property Appraiser's
website. They have highlighted the major areas, Single
Family Residential, Commercial and Industrial and they have
compared themselves to Deland, Holly Hill, New Smyrna and
Port Orange.
Councilwoman Lichter asked if they were to put Oak Hill in
there if we would be closer to them. Interim City Manager
Williams felt they would be ahead of Oak Hill.
Councilwoman Rhodes commented on the cities that were
compared providing the same services that Edgewater does.
Interim City Manager Williams compared Edgewater to New
Smyrna Beach in terms of single family residences and that
difference mainly coming from the beachside and the values
that those homes have to offer. He felt some of their
focus was expanding their commercial and industrial base.
That would help shift the burden from the residents. He
spoke of this being a long term goal.
Interim City Manager Williams then commented on the budget
having excess revenues over expenditures to the tune of
$1,772,000. He spoke of removing every piece of capital
expenditure that has been related to this budget to get to
that number.
Interim City Manager Williams then commented on the list of
Capital Expenditures Not Appropriated having a grand total
of $2,136,000. That is the amount of money they have
pulled out of this budget to get them to the $1.7 million.
They provided the list to describe what this budget does
not have in it, how they have gotten to it and where they
plan on going from there.
Interim City Manager Williams then commented on increases
and decreases in expenditures based off of the current
budget. This year's proposed expenditures are less than
last year's. He spoke of in the General Fund it being a
goal of previous Councils' to present each department on a
profit and loss basis and they have continued that same
goal through this budget. He then went over the General
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Government Revenue and Public Safety (Fire and Police). He
explained that in order to fund Public Safety they would
have to levy 5.885 mills in terms of ad valorem taxes.
Interim City Manager Williams then commented on Community
Development (Planning, Economic Development, Building),
Support Departments (Finance, City Manager, City Clerk,
Personnel), Parks and Recreation (Leisure Services),
Transportation (Streets), Legislative (City Council), and
Other Governmental Services.
Interim City Manager Williams then commented on personnel
costs and the impact of new positions. He commented on the
Plant Trainee and two Police Officer positions being
appropriated.
Interim City Manager Williams then commented on pension
plans. He had provided to Council a history of pension
plan contributions and how they are stated in terms of
dollars and percentage of payroll. He commented on this
area in and of itself being one of the most difficult areas
to budget for. He spoke of Principal preparing an
actuarial evaluation with associated presumptions based on
a whole bunch of factors. He spoke of working on a way to
accurately project where those costs will be and try to
hone that skill in.
Councilwoman Lichter asked how they get so off on that and
how that happens. Interim City Manager Williams commented
on assumption changes that came out of the actuarial
evaluation. They have been trying to control costs with
Principal for a number of years and they have entered into
an arrangement with Bogdahn Consulting to come in and look
at these pension funds. It is going very well. The timing
of those folks looking at the pension plan and the
assumption changes allowed the contribution to go down
drastically.
Councilwoman Lichter asked if that applied to all pension
plans. Interim City Manager Williams stated they are
evaluating the performance of all of our plans. That is a
tough thing to get your hands around at this point and it's
a tough projection to make.
Councilwoman Rogers stated Interim City Manager Williams
was saying there was a timing problem but when they talked
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she had made mention that he was aware of how Principal
calculates and she had suggested that they create some kind
of a spreadsheet so they can do some accruals and
adjustments on a quarterly basis so at the end of the year
they aren't having this timing difficulty. She didn't know
of any other city nearby that had this same problem
ongoing. This has been an ongoing problem for a number of
years. She spoke of in 2002 the millage was increased by
one point because of the pension shortfall and it was only
supposed to be an increase for one year. The next year it
didn't change and the next year she believed it changed by
~ a point. The excuse she was given for the reduction in
the millage rate was their property values went up so when
they were given back the ~ millage they were never given
back the 1 point that should have been given back to them
two years previously so right now they still have one point
of millage sitting there that was an increase that was
supposed to be solely for the shortfall it he pension.
They have a problem there and it needs to be resolved. She
expressed concern with the auditors, who we have had for
several years, not coming up with alternatives or
suggestions to fix this. To have the same excuse over and
over again, it doesn't settle well with her. Last year in
the summer during the budget she spoke privately with the
City Manager and he said they weren't going to have a
problem and that they had recovered and made all this
money. At the very end the millage didn't get the
reduction it should have because the pension was losing
money.
Interim City Manager Williams thought that was where they
saw that 42.67% come in. Based off of that trend he was
suggesting they be fairly conservative in those
projections. He didn't like having to approach Ken at that
point in time and describe to him that they missed the
budget by about $380,000 that year.
Councilwoman Rogers stated so this year if they've
recovered it's really not a great windfall, it is just
balancing the error that was made in last year's estimates.
Interim City Manager Williams commented on seeing a spike
on the chart around FY2005. He thinks some of the increase
in funding was directly related to the hurricanes and the
high amounts of overtime they incurred. He thought they
were seeing it level out.
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Interim City Manager Williams stated to go back and try to
address the necessary reasoning for the 1 mill increase
that that point in time, if his memory serves him
correctly, right around the time they made some benefit
changes to the pension plan, changing retirement from 30
years to 25 or from age 60 to age 55 which created an
unfunding liability on that plan and ultimately drove up
the cost of the annual required contribution. That is
probably one of the reasons for that mill increase. Part
of the problem associated with the General Fund pension
plan is it is a closed plan, which houses a lot of their
longer term employees that have been with them for greater
than 15 or 20 years. They are part of this consulting
effort looking at whether or not it is feasible and smart
to open that plan back up so they can spread those
liabilities out across newer employees and what the effects
would be on that cost. They have also requested some cost
estimates regarding other changes related to that plan that
they were going to look at after they close this fiscal
year and make it a part of next budget year's talks. They
are looking at some sort of model that they can accurately
project those calculations based off of fund performance
and where their payroll costs are going and trending from
that perspective.
Mayor Thomas stated the Police and Fire pension funds are
pretty secure and steadfast. The problem is the General
Employees pension fund. Interim City Manager Williams
stated it was secure. It's fully funded.
Mayor Thomas stated the employees, they have to find a
better way and once an employee gets in it and gets a
certain amount of years he doesn't want anybody messing
with or changing his pension plan. It scares them to
death. A pension plan is like an insurance policy. It is
a gamble. He thinks the State of Florida invests their
money. When an employee retires they keep paying that
employee and if they have a bunch of them die and a bunch
of them live to 100 they lose a bunch of money. He wasn't
sure which way to go. There is a problem there and they
have somebody looking at it. Interim City Manager Williams
commented on it being a sensitive subject when they talk
about employees' retirement. They have been talking about
it for years and they are making steps to figure out what
they are going to do but they haven't landed on any solid
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decisions of how they correct the problem. Mayor Thomas
stated there is no simple solution to that.
Councilwoman Rogers asked when the consulting group began
reviewing their plans. She estimated it was started at the
beginning of the year. She asked when they would be
complete. Interim City Manager Williams informed her they
have a meeting scheduled Friday with them to look at that
investment performance. One of the other things they have
to do is bring in a separate pension attorney and a
separate actuary to prepare an actuarial evaluation on the
numbers to ensure they can get the savings they need to
get. They have had a preliminary report from Foster &
Foster that suggests they could make some changes and see
some savings in terms of annual required contribution and
stated as a percentage of payroll. They are going to want
to do a full experience study and actuary study to
guarantee that they can generate those results. They did
some basic calculations and said they believed they could
do it. On his side of the table, he wasn't real
comfortable saying they've got it without a full analysis
of that plan and making sure there are some savings
associated with what they are suggesting in their
assumptions.
Councilwoman Rogers confirmed when Interim City Manager
Williams said closed fund he was referring to the Defined
Benefit Plan because no one else can get into that plan.
She asked approximately how many employees they had in that
plan. Interim City Manager Williams informed her
approximately 65 at this point. Councilwoman Rogers asked
how many were in the Defined Contribution Plan. Interim
City Manager Williams estimated between 100 and 120.
Councilwoman Rogers stated the Defined Benefit Plan is less
risk for the employees whereas the Defined Contribution is
more risk. The Defined Benefit Plan is more risk for the
City and less for the City on the Defined Contribution
Plan. She then asked how many employees they had that were
approaching retirement age on the Defined Benefit Plan.
Interim City Manager Williams thought just this year alone
there were 24 that were eligible under the Defined Benefit
Plan. Councilwoman Rogers asked how many employees were
still in the Defined Benefit Plan that could have retired
that are receiving and accruing benefits under the Defined
Benefit Plan. In the calculations the pension people would
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have realized that there would be people retiring so
eventually the City will not be as much at risk but if
those people haven't retired then the City's risk stays the
same and goes up as time goes on. There is a value in
that. She believed in their conversation he has used a
figure of $280,000 in terms of what the Defined Benefit
Plan is costing the City. Interim City Manager Williams
stated $280,000 didn't ring a bell. He knew that for this
budget year it was $600,000.
Councilwoman Rogers expressed concern with any new person
that is coming into the City's employment they are having
to go in under the Defined Contribution Plan. It's less
risk for the City. So the people that should have retired
that could have retired and it is great that they are still
here that they are still accruing and getting benefit from
that point forward under the Defined Benefit when in fact
if they would have had a new employee coming in it would
have been under the Defined Contribution so it's costing
the City more money so if those individuals still want to
continue working for the City those benefits retroactively
should have been put into the Defined Contribution Plan and
the auditors should have noted it in the financial
statements when they did their annual audits. She didn't
know what the standard was but there is a standard for
that.
Interim City Manager Williams informed her that the
$280,000 came back to him. What he thought he described to
her for those folks that exercised the option. If they
were to go to the Defined Contribution, for instance the
Defined Contribution Plan is 12% of payroll. If they
compare that to what that averages on the board right now
they are looking at roughly 24% so half of what they have
allocated in terms of dollars is probably where he came up
with that estimate. He hadn't actually calculated that
number to be exact and he still hadn't done that today but
that was the consideration they addressed when they spoke,
when those folks do exercise that option of retiring out of
that plan and then moving over to the Defined Contribution.
Councilwoman Lichter stated on a general look at the
situation, she didn't think they could measure in dollars
and cents the experience our older employees have in the
position they are in. They may be able to save some money
by incentives but that is a balancing act because they have
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a group that are pros. She spoke of taking early
retirement because the incentives were good enough and
helpful enough. There are some places that do offer those
incentives to have their more experienced people leave.
However, she wonders if it is worth it. They have a bunch
that are beyond compare.
Interim City Manager Williams stated a tremendous amount of
knowledge and experience that goes along with it.
Councilwoman Rogers stated she wasn't making any
suggestions that older employees should leave. What she
was trying to get at was the auditors should have made some
comments or notes and she feels they should have done
something that those workers that wanted to continue to
work, that is more than fine. That is a definite asset and
benefit to the City that can't be logged into a box and say
here's the value but the retirement benefits from that
point on should have been calculated under the Defined
Contribution Plan and the difference would have saved the
City a lot of money. She felt that should be looked at.
She didn't understand why the auditors didn't mention it in
their report.
Mayor Thomas asked if they were happy with the Police
Officers Pension Fund and the Firefighters Pension Fund but
they aren't happy with the General Employees Pension Fund.
Interim City Manager Williams commented on trying to
identify areas that they can improve that number while
satisfying the benefits they have there in terms of the
retirement. They have run into a little bit of a snag with
Principal and he thinks they have got the message that
these are the areas they want to look at, tell them how
much it is going to cost, tell them what the effects of
those changes are going to be and then they can try to make
a conscious decision based off of that information. It is
a sensitive subject when they start talking pension and
employees' retirement. They all get a little concerned and
upset about that.
Mayor Thomas stated they know there are problems there and
they are looking at avenues to fix the problem. It scares
him to death because Edgewater is a little city. He thinks
they have to be very careful with the pension fund and get
some good advice on what they want to do in the future.
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Councilwoman Rogers stated the extra 1 percent in millage
has been sitting there for a long time so if they have
recovered she would say it has a lot to do with that and
the fact that their values have increased. They have had
the same thing come back to them over and over again. How
long does it take to fix something? How long does it take
to learn from the mistake? Are you going to keep hanging
in there saying you are going to fix it because they really
haven't done anything? It looks like they have done
something this year but not really.
Mayor Thomas asked if Councilwoman Rogers was correct that
it went up one point to fix the pension fund and it never
came back down. Interim City Manager Williams was certain
she was correct. He thought what she was told was accurate
and he thought a portion of that was due to the changes in
the plan at that point which created some unfunded
liabilities and he thought that created the problem along
with the fact of trying to accurately and conservatively
project these costs. It's tough to make an assumption
today for next year and there are a number of different
variables that could affect that.
Councilwoman Rogers stated they have used the same methods
and they are still missing it so why can't they help them a
little sooner and give them some kind of a formula so he
could do a calculation and accrue something so they don't
have such a big variance at the end of the year. Interim
City Manager Williams informed her they were working on
that. The other factor that could affect that would be if
they have an active hurricane season and they incur a ton
of additional overtime costs.
Mayor Thomas commented on not being able to predict what
will happen in the future.
Councilwoman Rogers stated she doesn't see other cities
having the same problem over and over. She spoke of
finding out what they are doing. Interim City Manager
Williams felt part of that was associated strictly with the
fact that that plan is closed. He felt that was the one
major difference they may see in comparison to New Smyrna
but they would certainly look for methods to use to better
predict those costs and see how they go forward from there.
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Interim City Manager Williams commented on the gas prices
being a major weakness of the current budget. He spoke of
through six months of the fiscal year they had incurred
100% of the cost they allocated for the whole year. At
this point he was wondering whether $3.25 a gallon was an
appropriate cost and whether they should go back and look
at $4 per gallon due to oil costs continuing to rise and
fluctuate. That could potentially come back and negatively
affect where they are going with this budget. That also
drives the chemical costs for treating the Water Plant and
construction costs. That one key component drives a ton of
other factors that could negatively affect this budget that
they are trying to get their hands around and trying to
accurately and conservatively project.
Interim City Manager Williams continued his presentation by
discussing Major Increases/Decreases City-wide with regard
to salaries and insurance.
Interim City Manager Williams then went over the Payroll
Projections for all City departments. The total wages
which included benefits for personnel costs would be in
excess of $12.8 million.
Interim City Manager Williams then went over the Capital
Expense Priority List. He suggested they start making
provisions now for their future capital needs by
transferring $200,000 per year to be sent to the capital
projects funds. Out of the $1.7 million in excess revenue,
they would be left with $361,000 in excess revenue.
Councilwoman Rhodes stated the Reserve Fund is still not
15% as the Charter requires. She felt that should be top
on this list and it's not. Interim City Manager Williams
informed her it wasn't but they could appropriate that with
the excess revenue of $361,000 which would not provide for
any reduction in millage rate at this point.
Councilwoman Rhodes stated before any of this list is put
into effect the Charter needed to be met. That should be
his first priority and then he can go down his list and
decide his millage rate based on that. They do not have an
option with that. Maybe everybody else feels differently
but as far as she is concerned the Charter is to Edgewater
as the Constitution is to the United States. It is what it
is. They have to follow it and if they don't want to
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follow it they need to change it. She feels that needs to
be their first priority.
Interim City Manager Williams stated the purpose of him
putting up the priority list was to get some direction from
Council in terms of where they wanted to go. If they plug
in what he projects to be $274,000 that whittles down that
excess revenue that they can use for millage rate reduction
to be a little less than $100,000, $87,000 for millage rate
reduction. He had a slide that would identify in quarter
mill increments the costs associated with any reduction in
millage rate.
Councilwoman Rhodes wanted to know the number they needed
to meet 15% of their Charter requirement. Interim City
Manager Williams informed her they needed an additional
$274,000 to get them to the minimum of 15%. As part of
their operating processes for this fiscal year, about
August 15th they would cut off purchases within the City and
everything would have to get special approval to go
forward. Councilwoman Rhodes felt that was artificial.
Interim City Manager Williams informed her it was but what
he was hoping was that they could make a larger headway.
Councilwoman Rhodes stated but at the end of the year they
will have this fund that looks like it is 15% but it's not
because then they are going to have to make big purchases
afterwards. Interim City Manager Williams asked Council if
they are able to satisfy that requirement this year,
meaning hopefully our revenues come in more than what they
are projecting and their expenses are lower that they
achieve that minimum 15% then that money they make
appropriations for out of this list if there is no
reduction in millage rate that they use that to help fund
their future emerging capital needs or any excess above
minimum level of fund balance they use to start
transferring to try to proactively their needs in the
future. The goal being any time they exceed the minimum
they take that excess, keep it at minimum and start looking
at how they fund their capital needs and desires for the
future.
Councilwoman Lichter asked if this was the last opportunity
to add to the list. She spoke of being at the temporary
shelter on a daily basis and she knew they were working on
a plan to see what they could get for $500,000 but she
thinks there is one immediate need and it's less than
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$200,000. It's $172,000 for proper fencing and proper
areas to put the dogs outside. They are literally attached
to a fence that had holes in it. It may go on the bottom
of the list but she feels since the Pet Society has
insulated the building and done some work there that that
is almost a priority so they don't lose dogs.
Interim City Manager Williams informed her they could add
and take away from the list as they pleased tonight. He
thought the goal was to come out of the workshop with their
consensus on the millage rate. Councilwoman Lichter felt
they should keep that in mind. It may not be another year
before they have a building and they need a safe
environment at least.
Interim City Manager Williams expressed concern with
meeting the timeline established for TRIM compliance which
was why they were here tonight. At the first one they
described they may not meet to discuss this but they left
out of there trying to accommodate Council's wishes at
5.95. They have gone back and firmed up the numbers to the
best of their ability try to maintain a conservative
approach to their revenue projections. They sat down the
next day after they first met and described a 5% increase
in operating was the target for all departments to achieve
and sent it back to the drawing board for them. He also
asked them to prioritize their capital expenditures. They
came back to the table and realized very quickly that they
did not even through that process have the ability to
present Council a balanced budget which led them to the
approach that they have just taken by taking all of the
capital expenditures out of this budget and try to describe
to Council a priority list and then providing some excess
revenues to address the fund balance and/or a reduction in
millage rate.
Mayor Thomas asked at 5.95 if they would have to cut back
some services. Councilwoman Rhodes stated no they are
going to have to cut some capital. Interim City Manager
Williams stated at this point capital. Out of the list
what they deem to be not the most important is the only
place to cut at this point. Mayor Thomas asked Interim
City Manager Williams if he recommended 6.45. Interim City
Manager Williams informed him that was correct.
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Councilwoman Rhodes asked how many vehicles were being
leased. Interim City Manager Williams estimated ten
vehicles. Finance Director Brett Tanner was looking up the
information. Interim City Manager Williams further
commented on vehicles they identified that needed to be
replaced.
There was a brief discussion regarding looking at six
cylinder police vehicles.
Interim City Manager Williams informed Council they didn't
have the number of vehicles offhand but agreed to try to
get that for them as they went through the presentation.
He estimated between ten and fifteen.
Mayor Thomas asked Interim City Manager Williams if he had
included the 35.3% anticipated from property taxes.
Interim City Manager Williams informed him it was included.
Interim City Manager Williams explained one of the things
that negates that is if they were to look at the previous
budgets is that they have made plans for the development of
ParkTowne and the sale of that property. Through major
increases of construction costs and planning they have sold
everything they have provided infrastructure to and that
was a little over $1 million of projected revenue in 2006
which they did not make representations to sell property
for in 2007 so they had an increase of $1 million in ad
valorem taxes but they also lost $1 million from the sale
of ParkTowne. He spoke of having some contractual
obligations to put some infrastructure in place.
Interim City Manager Williams continued his Powerpoint
Presentation by commenting on Economic Development with
regard to ParkTowne.
Councilwoman Lichter asked if what they were talking about
was a switch in the plan for ParkTowne, the selling off of
property. She asked if the intent was to develop it in
full. Interim City Manager Williams informed her it was
but he thought some of the concerns there were the major
increases in construction costs that have come back to
negatively impact this and maybe planning on their behalf.
Lichter asked if they had some new industries interested
and they haven't been able to provide for them. Interim
City Manager Williams informed her the one area impacted
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the most was along Base Leg Drive. They have a few
industries that have bought property towards the end of
Base Leg Drive that want to build a new facility that
employs about 30 people that if that infrastructure is not
put in place and the process isn't started very soon they
will probably see those folks leave town.
Councilwoman Lichter stated that was the one area they
seemed to be low when they compared themselves to New
Smyrna and Port Orange and the other cities that were
coming in with more revenue.
Interim City Manager Williams stated there were a variety
of businesses in there. Boston Whaler was the largest
employer in ParkTowne with the second largest being Viking
Industries. They also have some smaller warehouse type
businesses.
Councilwoman Lichter asked if it would be under short term
to provide for this area that wanted to come in now.
Interim City Manager Williams informed her the businesses
that wanted to come in now were under the short term plan.
They also have a concrete plant that is interested in some
property at the end of the cul-de-sac that would probably
provide 12 to 15 jobs somewhere in the range of $30,000 to
$35,000. Getting access to that property is contingent
upon them coming in. Councilwoman Lichter asked if that
was included under the short term as well. Interim City
Manager Williams informed her it was.
There was a ten-minute recess at this time.
Interim City Manager Williams reported to Council that
there were a total of eleven vehicles associated with the
$223,000.
Interim City Manager Williams continued his Powerpoint
Presentation by going over the schedule in quarter mill
increments of what the cost would be to roll back from the
stated 6.45 that he was suggesting.
Interim City Manager Williams informed Council if they
wanted to address individual departments they could bring
up the department heads and talk to them regarding their
proposed expenditures and or they could ask questions of
him.
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Councilman Vincenzi stated the thing he really couldn't
understand and didn't agree with was the fact that there is
a 35% increase in revenue and he didn't understand where
all of that stuff was going or why the millage had to stay
where it is. He has expressed a desire to lower it to
5.95. There are problems in the budget that needed to be
addressed, some that could be addressed now and some that
could not and a plan needed to be worked out to address
those issues.
Councilman Vincenzi then expressed concern with overtime.
Interim City Manager Williams informed him they looked at
overtime and they typically try to allocate overtime as a
percentage of payroll and have looked at past years
overtime and have landed on those percentages. One of the
issues he has addressed with Tracey and they are looking at
how they can maybe make some changes and the effect of
those changes as well. Councilman Vincenzi commented on
the Police and Fire Departments being the two departments
that might be justified in scheduling or budgeting overtime
because emergencies do happen.
Fire Chief Tracey Barlow commented on some of the overtime
issues this year alone being contributed to the unexpected
wildfires they were seeking reimbursement on.
Fire Chief Barlow then commented on the Fire Department
schedule being different in how it is regulated by the Fair
Labor Standards Act, which is Federal law that they all
have to abide by. He further commented on staffing
requirements. They could either add significantly more
people or they could work the same individuals more hours
and pay them overtime. They did a study back then and
determined it was cheaper to work them longer hours and pay
them overtime. He then spoke of the overtime paid out for
holidays.
Councilwoman Rhodes questioned the firefighters being paid
overtime on holidays. Her husband when he works on
holidays, he isn't paid overtime. He is given the time in
his personal leave bank. She asked why they can't do that.
Fire Chief Barlow informed her personnel policy dictates
what and how employees are paid. Those could be changed
through negotiations with the employee management committee
or the unions.
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Council Workshop
July 17, 2006
Councilman Vincenzi asked where the Fair Labor Standards
Act came in. Fire Chief Barlow informed him that was a
Federal law that regulates that they can only work
employees so many hours in a four week cycle at straight
time and then they have to pay them overtime for every hour
thereafter. They can work 212 hours in a 28 day cycle and
then everything above the 212 hours they have to pay them
overtime.
Councilwoman Rhodes stated so if they cut their hours they
would have to hire more personnel. Fire Chief Barlow
informed her that was correct. If they went back to the
traditional 42 hour work week, then they would have to add
that many more personnel to cover a fourth shift.
Councilwoman Rhodes she asked if the holiday thing was
negotiated through the union. Fire Chief Barlow informed
her it was through the personnel policy. Interim City
Manager Williams informed her the Fire department was not
union at this point and they had established an employee
management committee that they negotiate with in trying to
establish benefits.
Councilwoman Rhodes asked if that was the personnel policy
for all departments, including Police. Personnel Director
Debby Sigler informed her unless the specific subject is
addressed in the union contracts.
Interim City Manager Williams stated internally they were
still evaluating non-traditional schedules and approaches,
brain storming and thinking out of the box of how they can
deal with this overtime and looking at staffing and which
is the best way to proceed as well.
Councilwoman Rhodes stated she wasn't suggesting that be
done. She was suggesting it doesn't have to be done that
way. She firmly believes the Fire Department in order to
keep good employees they have to pay them or they are going
to go somewhere where they are going to get paid a living
wage at least. If one of their benefits is that they get
overtime on holidays, great because her husband works for a
city and they could not live if he didn't make overtime.
She didn't have too much of a problem with that.
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Council Workshop
July 17, 2006
Councilwoman Lichter asked if it seemed that in general
they profit better from the Fire Department not being in a
union than being in a union. Councilwoman Rhodes stated
that is up to them. They negotiated a better rate without
a union than the Police did with a union. Fire Chief
Barlow stated from a department director standpoint it sure
gives the department director more flexibility and
creativity of not being bound in some fashions by a union.
He spoke of programs he does such as motivating and
encouraging training outside of compensation as well as
using what they can as comp time as much as possible. With
limited staffing he is encouraging some of that.
Councilman Vincenzi questioned the overtime in the Fire
Department being distributed evenly across the board. Fire
Chief Barlow commented on tracking that they have created
that is online that helps keep that balance that only
Lieutenants have access to to make changes but anyone can
see it.
Mayor Thomas asked if it was overtime on holidays or double
time. Interim City Manager Williams informed him they get
paid for the holiday and then they get paid time and a half
if they are working that shift.
Councilwoman Lichter asked Fire Chief Barlow if they had
improved at all in their rating for the insurance. Fire
Chief Barlow informed her we were rated at five. In 1998
when he was hired as Fire Chief they went from a seven to a
five. His goal this year was to get to a three.
Councilwoman Lichter felt that would be quite an
accomplishment.
Councilwoman Rhodes asked what the guys make average for
base pay. Fire Chief Barlow informed her they had an
employee start today that was making $9.96 per hour.
Mayor Thomas commented on a book he got from VCOG that he
gave Interim City Manager Williams that compared our
salaries to every salary in this County.
Councilwoman Rhodes felt the Police Officers and
Firefighters for a city of our size were paid pretty well.
She felt they needed to do that to get good people. Fire
Chief Barlow commented on a majority of their members
living in the community. It's not just a job to them, it
18
Council Workshop
July 17, 2006
is taking care of their community. He commented on
recently trying to enhance their marine operation and
rescue. They are still a combination department and have
volunteers and reserves. They are trying to be as creative
as possible.
Mayor Thomas stated they need to know how good they've got
it. He worked for thirty years for the State and never
received a dime of overtime. The State does not pay
overtime. They gave them comp time at straight time.
Interim City Manager Williams commented on being quoted in
the past as saying that they are the most expensive.
Personnel costs are but they are our greatest asset.
Councilwoman Rhodes stated or greatest liability depending.
Councilman Vincenzi asked Interim City Manager Williams to
explain vacation and sick leave buy in, which he did at
this time. He thought this would probably be something
they would look at negotiating when they come down to the
next round of negotiations. Councilman vincenzi felt this
was something that needed to be negotiated. That is a nice
little feature and benefit but vacation time is vacation
time and sick time is sick time. To cash it in for money
to him that is an excessive benefit.
Councilman Vincenzi mentioned some of the issues being
short term and some of the issues being long term problems
that needed to be addressed.
Councilwoman Rhodes stated they also have to consider the
impact of the incentives for employees to come to work.
There are a lot of places that offer that incentive. She
wasn't disagreeing with Councilman vincenzi but she felt
they needed to consider the other side of the coin.
Mayor Thomas commented on employees that use their sick
time as quick as they get it and other employees that never
use it. There are pros and cons to that.
Councilwoman Rhodes commented on it making a difference if
you have 20 people doing a job and one person calling out
compared to having 100 people doing a job and one person
calling out. She felt maybe they needed to look at that
different. What are they going to pay in extra to
19
Council Workshop
July 17, 2006
compensate for the employees taking the days instead of
cashing them in?
Councilman Vincenzi felt whoever negotiated these things
and he wasn't pointing the finger at anybody but he
probably wasn't here anymore. It was very generous and
that is nice to treat people that work for you very good
but there is a limit because you don't have as much money
as you would like to have.
Personnel Director Debby Sigler explained every year when
it becomes time for union negotiations it hasn't been done
in the recent past but Council has a right to sit with
Interim City Manager Williams and give the Council the
figures. The Council gives Interim City Manager Williams
the guidance they want and tell him what items they want
him to negotiate a way or give to the employees.
Councilwoman Lichter asked if they could also talk to
Interim City Manager Williams one on one before that time
with some ideas. Ms. Sigler informed her yes. In a group
with just the Council and Interim City Manager Williams
without violating the Sunshine they have a right to sit and
talk about employee benefits because it is something they
are going to negotiate in the open. Interim City Manager
Williams would go back to the table and negotiate for
Council.
Ms. Sigler commented on the last time they negotiated union
contracts the cash in of vacation and sick time changed
quite a bit. It was renegotiated with the intent of
costing less and it ended up costing more.
Councilwoman Lichter asked how many years ago that was.
Ms. Sigler informed her it was just a couple of years ago
for this contract. Councilwoman Rhodes stated but they
approve the union contracts. They are aware of it.
Councilman Vincenzi commented it being interesting that it
was renegotiated with the intent of costing less and it
ended up costing more.
Councilwoman Lichter asked for an explanation on the
vacation. She asked what the extra vacation time was
besides days that are off. Interim City Manager Williams
commented on the employees being allowed to accrue vacation
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Council Workshop
July 17, 2006
time up to a certain level. After that point they either
lose it or they have to cash it in. He thought they were
starting to see instead of losing it they are cashing it in
and that is a negotiated item.
Councilman Vincenzi asked how much they could accumulate
before they start losing it. Ms. Sigler informed him it
was different in the City's policy and procedures manual,
it was different in the FOP contract, and it was different
in the PEA contract. Interim City Manager Williams stated
if he had to estimate on average it would probably fallout
between 400 and 520 hours. Councilwoman Rhodes stated but
they earned it. They actually worked. Ms. Sigler stated
instead of taking it off they cash it in.
Councilman Vincenzi stated that was another point of
contention. They earned it and they have the right to use
it but it is costing the City. Councilwoman Rhodes stated
but they don't have the right to have it taken away from
them. Councilman Vincenzi stated if he were to renegotiate
it he would not allow cash in. He spoke of banking it up
to whatever the limit is and then they can't accumulate
anymore was fine with him.
Interim City Manager Williams stated a lot of these items
they are discussing in terms of the benefits and so forth
they are currently identifying and looking for or
brainstorming for ideas to help address those issues. If
they take something away they are going to look at
something to provide to help lessen that burden with the
goal in mind to provide some savings and to find some
balance. In comparison to other cities he thinks one of
the things they have been brainstorming on presently is
associated with the health insurance. He spoke of reaching
out to Florida Health Care about establishing a wellness
program and if there would be any savings on the insurance
premiums and how they could implement that. He also spoke
about trying to find non-traditional approaches to help
address those issues and trying to look at some solutions
that have some savings but ultimately do not affect the
budget as it was presented tonight.
Councilwoman Lichter asked if the vacation time carries
over from year to year so at the end of your career you
might have a lot of vacation time that you could take.
Interim City Manager Williams stated or they can cash it
21
Council Workshop
July 17, 2006
in.
able
time
time
Councilwoman Lichter commented on the employee being
to be away from the job for an extensive period of
that they built up over the years. She asked how much
the employees get per year of vacation time.
Interim City Manager Williams informed her a new employee
walking in the door gets 96 hours of vacation time and 96
hours of sick time and then they are allowed to carryover
and accrue to a certain point. The vacation is not
available until after they have been with the City for a
year and he believed the sick wasn't available until after
they satisfy a probationary period of six months. They are
allowed to build and accrue. One of the things they are
looking at is how they can address that during the next
round of negotiations and some brainstorming and comparison
of other cities and how they deal with it. It has
definitely made the list for discussion but it doesn't
provide a positive impact in terms of the budget and a
reduction as such.
Councilwoman Rhodes thought a lot of time those things are
done especially in contract negotiations in lieu of
increased wages. Interim City Manager Williams thought
that was a practice of the past. For years Edgewater has
struggled in terms of being comparable to other cities as
far as salary goes so they compensated with benefits. Over
the last five years a strong emphasis has been placed on
bringing salaries up to match the surrounding cities.
Councilwoman Rhodes commented on a new firefighter starting
under $10, which she felt was not a high wage. That's not
a living wage, that's a poverty wage. If that firefighter
can go down the road five miles and make twice as much
money why wouldn't they do it?
Councilman Vincenzi referred to the Capital Expense
Priority List and asked if it was in any priority order.
Interim City Manager Williams stated they developed the
priority list from the capital items that were removed and
not placed in any specific order in terms of preference.
Councilman Vincenzi stated these are things he would like
to have but are not on the let's do it list. He asked if
road resurfacing was in the budget right now. Interim City
Manager Williams informed him it was not on this budget at
all. The budget he has given Council tonight does not
22
Council Workshop
July 17, 2006
have that at all. He was suggesting they put $250,000 into
road resurfacing.
Councilman Vincenzi asked if the budget here right now was
at what millage rate. Interim City Manager Williams
informed him 6.45. Councilman Vincenzi asked if that was
without the list of items. Interim City Manager Williams
informed him that was correct. That gives them excess
revenues of $1.7 million. If they added back all the
priority items they would be left with $361,000 in excess
revenues that they can use to roll back a quarter of a mill
which does not address fund balance. Councilman vincenzi
asked how he planned on doing any of these items. Interim
City Manager Williams stated they pulled out all of the
capital items and presented them with a budget that has
personnel cost, operating cost and debt cost. Out of that
they said it was almost realistic to say they weren't going
to allocate any money for computers for instance. There
were no plans for that. They recognized in there they
aren't addressing any of their capital needs in terms of
vehicles. Councilman Vincenzi stated again that none of
the priority list was in there. Councilwoman Rhodes stated
the money is in there but the capital items are not. That
is what they have to play with in the budget at 6.45 mills.
Councilman Vincenzi stated so they are figured in. Interim
City Manager Williams explained right now as the budget is
proposed all capital items have been taken out of it and it
gives them a total dollar amount of $1.7 million that they
can go back and if Council chose to give it all back in the
form of a millage rate reduction they wouldn't have any
capital. What he has done is he has said it is easy for
him to suggest they take out all the capital but he wanted
to be able to come back to Council with a priority list and
if they put that back into the budget they would only be
left with $361,000 in excess money that they could use for
a millage rate reduction. That $1.7 million in excess
revenues was at 6.45 mills. He then described going with a
lower millage rate and having less excess revenue and the
balance left over being used to address this priority list.
Councilwoman Lichter pointed out that the 15% minimum for
the reserves wasn't put at the top of the list and that has
to be in there.
Councilman Vincenzi commented on the shuffleboard court
items on the priority list in the amount of $337,000. He
asked how much of that was FEMA money. Interim City
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Council Workshop
July 17, 2006
Manager Williams informed him $247,000 was FEMA money.
They have had negotiations with FEMA that once they have
those costs in place and they have finished the project
whether or not they could ask for further assistance they
have said they would look at it but there was no guarantee.
If they pull off the shuffleboard court they would need to
pull off the $247,000 because they won't get that. That
was why they identified that as a priority.
There was further discussion regarding the shuffleboard
courts and clubhouse and the money that would be received
from FEMA once the project was complete.
Councilwoman Rogers asked if the $30,000 for additional
engineering was for the shuffleboard. Interim City Manager
Williams informed her that was correct. The old
shuffleboard court was identified to be in a flood zone and
they had to move it out of the flood zone and they were
able to do that by making that request with FEMA. As a
result of that they were forced to go through additional
permitting.
Councilwoman Rogers stated roughly they have got the
figures from the shuffleboard court, racquetball court,
parking lot, and additional engineering was coming in at
$513,000. She recalled back when this was initially
knocked down it had to be knocked down and cleared away
within three days so they would get their money from FEMA.
As time went on the percentage of what they were going to
get back got reduced. Something that really wasn't brought
out and a lot of seniors seemed to be mixed with the fact
that they weren't able to have their shuffleboard court
anymore on the water and would have to deal with Rotary
Park. If the shuffleboard court would have been rebuilt
where it was they would have recovered more money. She
believed they would have recovered 100% so this in fact has
cost the City money.
Interim City Manager Williams stated with this particular
project and after the damage that was incurred they as
staff viewed it to be an emergency protective measure in
getting that situation corrected across the street. During
that time frame FEMA described a 72 hour period for
emergency protective measures and debris removing that they
could get 100% reimbursement. They saw it as a hazard and
were taking emergency protective measures to rid the City
24
Council Workshop
July 17, 2006
of any potential hazards. That was probably where the
confusion came into play in terms of the allocation or
reimbursement of cost. FEMA goes through a kick off
meeting and then they get their project managers that come
on site and they start sitting down and describing the
damages that have occurred and it starts a debate as to
your perception of the actual events that transpired. In
this case they were hanging their hats that it was an
emergency protective measure and should have been
reimbursed at 100% and they said it wasn't going to happen
and would be categorized under buildings. Councilwoman
Rogers stated so the City made a judgment and lost 20%
which was $100,000 because of that judgment. She spoke of
the mention of it being in a flood zone and that being the
reason they decided not to rebuild it there but somewhere
else. It would have always been in a flood zone from what
she would understand because it was on the water's edge so
that wouldn't be a surprise. It was in a flood zone when
it was built. It just doesn't equate. They have lost 20%
of the value, $100,000, and she is looking at the FEMA
revenue of $247,000. Initially they were at $500,000 and
should have FEMA revenue of $400,000 so where did the other
$150,000 go?
Interim City Manager Williams thought that was a result of
representations made back when those hurricanes came
through and those were the cost estimates of just replacing
that facility at that point in time and then they have the
increases in construction and so forth and the additional
costs associated with engineering that have driven those
costs up. Councilwoman Rogers stated so they got FEMA
revenue of 50%, not 80% like they were told a while back.
Interim City Manager Williams explained when it was
written, it was written to be at 80%. What they have done
is requested of FEMA that once they get this facility built
that they can seek those additional moneys and try to
recoup some of that. He was informed they could resubmit
but there was no guarantee. He thinks since then they have
had Hurricane Katrina come across and had its impact with a
number of other disasters that the reality of getting that
money may not be. They can pull that item directly off the
list but what they need to be aware of was if they do that
there is an associated revenue source that goes away and
they are okay with that.
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Council Workshop
July 17, 2006
Councilwoman Lichter stated if she remembered correctly
FEMA kept changing their employees and the price kept
changing. Our citizens did have the opportunity to go in
with New Smyrna Beach and it was thrown out. Our
shuffleboard players, wanted and they felt they deserved
and that was why the decision was made and they were a good
lobby group. FEMA did not come through with things because
every time a different representative came to the City and
they kept changing people and the amounts of money
involved.
Interim City Manager Williams stated that was one of the
challenges that they face when going through that process.
They are still trying to wrap that process up today.
Councilwoman Rhodes asked how much FEMA reimburses if they
do it in the first 72 hours. Interim City Manager Williams
stated 100% for emergency protective measures and debris
removal. That is where they tried to take the approach.
Councilwoman Rhodes stated that was removed within 72 hours
and that was the purpose of doing that. They did
everything they could in their power to maximize their
income from FEMA. Interim City Manager Williams stated
they argued from many different angles. He commented on
this being a difficult process.
Councilwoman Rogers stated so when they rebuild this there
is some terminology when they are doing insurance for
buildings, replacement versus actual cost. What is the
City's policy now that they are going to start looking for
in the terms? Are they going to look for something that
says replacement or actual cost? Interim City Manager
Williams stated he didn't know that they had specifically
addressed that. Obviously they want the terminology
whether it is actual cost as long as it is representative
of today's cost. Councilwoman Rogers stated they wanted it
to be replacement cost because replacement costs will
always higher than actual cost. Interim City Manager
Williams stated but in terms of that semantic and
understanding with the insurance company their position is
whatever amount of money gets the most money and addresses
the cost to rebuild that facility today. Councilwoman
Rhodes pointed out they needed to weigh that as well
because then it would cost them more for the insurance to
have the replacement cost. She didn't know that they
needed to pay for something to be replaced before it has
26
Council Workshop
July 17, 2006
ever been lost. Interim City Manager Williams explained
they currently have replacement costs but they want
whatever gives them the most amount of money in those
events.
Councilman Vincenzi then commented on Economic Development
with regard to ParkTowne. He asked Interim City Manager
Williams to explain that again, which he did at this time.
Councilwoman Lichter asked how it ties in with the millage
rate, the budget and everything else. Is it a different
source of money that they would go for for economic
development or is it from tax money? How are they going to
go about that? She feels they should at least clean up the
area they started and they have people interested. She
thinks in the end money will make money. Now they are
talking about selling off the rest of the property. She
feels they should finish off what was an excellent project
and they are so low in economic development compared to
other cities.
Interim City Manager Williams explained that comes out of
the excess money they have available in the General Fund.
When they look at the $1.7 million they are saying out of
that they are going to add a fixed cost for 15 years in the
form of a principle and interest payment to fund those
improvements. That is where that money comes from.
Councilman vincenzi asked what the improvements included.
Interim City Manager Williams informed him it included all
of the infrastructure related to Base Leg Drive and
Driveway A.
There was further discussion regarding putting in the
infrastructure on Base Leg Drive and Driveway A and the
cost associated with that and what would happen if they
didn't make the improvements.
Councilman vincenzi commented on why he felt there had to
be changes in ParkTowne. One reason was because a lot of
the businesses that are going in, some of them are new but
a lot of them are existing in Edgewater and are just
relocating so they aren't adding anything. Interim City
Manager Williams commented on a business that is relocating
from a leased facility on Air Park Road and expanding their
employees from 15 to 30.
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Council Workshop
July 17, 2006
Councilman Vincenzi questioned why Mr. Massey had to sell
one lot. He knew why he wanted to sell it. Interim City
Manager Williams thought it was wise business practices on
his behalf. Councilman Vincenzi commented on Mr. Massey
selling the end lot because they can't put a little road at
the end. They have to develop the whole thing or nothing
so that opens up all those other properties. To him that
is a really good businessman but does that obligate the
City to do everything all at once. Interim City Manager
Williams felt it did because it clearly states in his
contract that they would build that road and put that
infrastructure in place.
Councilman vincenzi asked where the original concept of
selling land in order to pay for the infrastructure come in
with this piece of property. Interim City Manager Williams
thought the interest there was to provide the tax base from
an industrial development perspective in that they may not
necessarily totally recoup the cost from the development
and it would be a payback period over a period of time in
terms of additional tax revenue. They would have machinery
there that they would pay additional taxes on. Obviously
they are providing an employment perspective for the
residents to potentially go to work. From that perspective
the sole intention of selling the land for the cost to
purchase and develop, there was a period of time the City
was willing to take to satisfy that payback.
Councilman Vincenzi had a problem with that.
Councilwoman Rhodes asked if they could use impact fees.
Interim City Manager Williams stated they could recoup
their cost from road impact fees but he thought they would
have to incur that debt. Obviously as those facilities
develop and they get those impact fees they can help use
that to eliminate the principle portion of that debt.
Councilwoman Rhodes found in the budget that they have
$285,000 in road impact fees. Interim City Manager
Williams informed her they could use that money that is
sitting there in fund balance to help fund that.
Councilwoman Lichter asked if there was any renegotiating
with him in terms of the road.
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Council Workshop
July 17, 2006
Councilman Vincenzi felt this had to be a partnership and
that John Massey had to be a working partner, not just one
that wanted to develop his land so he will sell his last
lot and the City has to put in the road and the
infrastructure so he could sell the rest of it. If he is
really interested in developing that area he should be
willing to work with the City too. Interim City Manager
Williams thought he was willing to. He thought they had
some other considerations in place.
Councilman Vincenzi knew it was a tough situation because
the City is obligated to do something. Maybe that was
something he could talk to Mr. Massey about. Interim City
Manager Williams stated he has looked allover that park
and tried to pursue opportunities where he could exchange
that particular piece for a piece that was on a developed
piece so they could maybe look at what Councilman Vincenzi
was talking about but he keeps hitting a brick wall.
Councilwoman Rogers asked what the total acreage was
initially of ParkTowne. Interim City Manager Williams
informed her he thought the total was a little under 400
acres.
Councilwoman Rogers asked what they had sold so far.
Interim City Manager Williams informed her roughly 30
acres. A large portion of it was representative of the
FIND and then they have to factor out stormwater retention
ponds, rights-of-way and different things of that nature.
Councilwoman Rogers asked if FIND was the area where the
dredging material was stored. Interim City Manager
Williams informed her that was correct.
Interim City Manager Williams pointed out on a map the area
they were suggesting they develop an RFP and either they
could take the approach that they try develop the RFP for
the full ninety and get the infrastructure development out
of there and enough proceeds to payoff the debt that is
associated with the purchase of the property or they could
develop the RFP for half of that property and in turn they
would develop the infrastructure and then they would sell
the remaining lots and then use those proceeds to help
recoup some of those costs and get them out of debt.
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Council Workshop
July 17, 2006
Councilwoman Rogers stated the City incurred debt for this
property as well as the City used some of its own funds.
She believed that was about the time the reserve started
getting somewhat depleted. Interim City Manager Williams
thought part of that depletion occurred with the fire
station and the YMCA and some other projects.
Councilwoman Rogers stated when the properties that have
been sold were sold profit was made. What did they do with
that profit? Interim City Manager Williams informed her it
went back into the General Fund. Councilwoman Rogers
questioned it not going towards the debt for this property.
Interim City Manager Williams stated in a sense it does.
When they look at the General Fund they have the sale of
industrial park property a revenue line item that's
depicted on the June income statement that they provided to
Council. They had very good sales this year, a little over
a million dollars. The associated debt for that property
is about $505,000. That expense is in the General Fund
along with that revenue source that's there. Councilwoman
Rogers stated this was the attempt of the City to become a
developer and develop this property and make a profit and
it hasn't and her concern was why this wasn't listed as
auditor notes in the past reports.
Councilwoman Rhodes stated the intent was never to make a
profit. Their intent was to put the infrastructure in and
have a turnkey operation and it would cost whatever their
costs were as well as the cost that they paid for it. It
was never meant to make a profit. It was just meant to
make it easier for people who wanted to have a business to
come to this City rather than go somewhere else and have to
go through the whole permitting process. Councilwoman
Rogers stated but they keep losing money because of this.
She then referred to the property tax revenue generated.
It has cost the citizens in an attempt to attract
businesses here.
Interim City Manager Williams thought until the project was
totally complete they may not necessarily get a comment in
terms of whether or not this is a profitable or non
profitable adventure obviously because they are trying to
describe a situation that will satisfy the initial goal of
the project to create a situation where they can attract
economic development and help shift that tax burden.
30
Council Workshop
July 17, 2006
Councilwoman Rogers expressed concern with the new
developments such as Hammock Creek and Reflections and the
fact that they are going to have commercial properties.
Businesses are going to be very attracted to that land
because of the proximity to 1-95. They are going to be
dealing with some situations trying to unload this knowing
that property is out there and it's actually perhaps more
desirable because of the proximity to 1-95. Interim City
Manager Williams informed her that was more commercial and
not industrial. Councilwoman Rogers stated there is going
to be industrial in Hammock Creek as well. She rephrased
it to be commercial and/or industrial. Her concern is that
this is not been what it was intended to be and it is still
pulling on the City. Right now looking at a possible debt
service of $350,000 and she would believe that would be a
calculation for a year. Interim City Manager Williams
informed her it was an annual debt payment. Councilwoman
Rogers stated for fifteen years. Once they start this
commitment they are there for 15 years because of the debt
service. Interim City Manager Williams didn't think they
had a choice. There are contractual obligations for this
development and that development of that infrastructure
there. That is why they identified it as a short term
solution. They are looking to develop an RFP for the
remaining portion.
Councilwoman Rogers stated while Interim City Manager
Williams is dealing with the developers and they are
looking at land, City Hall, schools, etc. she would think
of something creative that would help offset what they are
dealing with on this piece. They are coming in and having
lands that are commercial and industrial zoned and they are
going to be attracting businesses and pulling them from the
opportunity we have here so because they are doing that,
more property, more competition. They are going to have to
suffer unless they can get the developers to help them.
Interim City Manager Williams informed her they certainly
would.
Councilman Vincenzi then commented on the transfer of
$200,000 for capital projects. It seemed awfully general
for an awful lot of money. Interim City Manager Williams
explained what they identified for Council they had $1.1
million in vehicle expenditures. He commented on how they
have satisfied those needs over the last few years by lease
or debt issuance. He spoke of starting to think down the
31
Council Workshop
July 17, 2006
road and referenced funding a new City Hall in the future.
They were suggesting this starts funding their emerging
capital needs which also goes along with an impact on the
way they will be doing business in the future with regards
to growth management and SB 360 and their Capital
Improvement Element.
Councilman Vincenzi commented on this bothering him because
he doesn't see any specifics attached to it. He would be
much happier with it and much more willing to go along with
it if he knew there was a plan in place. He spoke of
throwing out ideas for a number of years and the idea of
collecting money every year for capital projects but then
the potential is always there to put it towards other
things that come up. Interim City Manager Williams
commented on the Comp Plan that will identify a five year
process and what those emerging capital expenditures are
and associated for. This process starts the planning and
clearly identifies their intention to address those needs
as they start to emerge each fiscal year.
Councilwoman Rhodes stated this year they have $1.7 million
in capital projects. Take out the $200,000 which leaves
$1.5 million. If they were to put $200,000 away every year
for seven years they would not have to use ad valorem taxes
to pay for the capital that they need now. Councilman
Vincenzi felt that was a good concept and he understood it
very well. Councilwoman Rhodes stated Interim City Manager
Williams was asking them to implement that. Councilman
Vincenzi stated he wanted a plan. He wanted to know where
the money was going to go. Interim City Manager Williams
explained the capital Projects Fund which is developed and
in place right now and it is part of the budget process.
Councilman Vincenzi asked if that was a fund that was there
for investment until it is to be used on a project or if it
was a fund that was there that they could tap anytime they
wanted for anything that comes up. Interim City Manager
Williams informed him it was a Capital Projects Fund, which
was considered a Special Revenue Fund, and it falls under
the auspices of a governmental fund which is similar to the
General Fund. They could designate each year a portion of
that fund balance reserved and place restrictions on it or
designations of what the money could be spent on. He felt
by doing this today it sets the stage for saving for
32
Council Workshop
July 17, 2006
tomorrow to try to eliminate them getting debt and
incurring those costs associated with that debt.
Councilman Vincenzi felt some of the items on the list were
not capital expenses. Interim City Manager Williams
informed him the State identifies anything over $1,000 is
categorized as a capital expenditure.
Councilman vincenzi stated he is all for putting money away
for capital projects if they really are a capital project.
He wanted to know what the money would be used for and he
wanted to make sure that it is used for that purpose.
Interim City Manager Williams stated he was willing to go
that route and it would be part of the budget process and
they can land on a percentage of that balance that is going
to be over there.
Councilwoman Rhodes felt he was telling the Council he was
leaving it up to them to describe what the money was to be
used for. Interim City Manager Williams stated what he was
suggesting to Council was every year during this process
there is going to be emerging needs that is tied to that
capital element.
Councilwoman Rhodes asked how two police officers ended up
in the capital expense priority list when they have never
done it that way before. Interim City Manager Williams
stated that was his fault. He further commented on it
being a poor designation on his part.
Councilman Vincenzi referred to the contractual obligation
to build Base Leg Drive and Driveway A costing $3 million.
He then asked if they have ay contractual obligations for
the continuance of ParkTowne Blvd. at $6 million. Interim
City Manager Williams felt they would have a contractual
obligation to get the gentleman access to those properties
that have been sold. There were no plans in place to sell
any more property.
Councilman vincenzi expressed concern about where they were
going to get the money to do ParkTowne Blvd. He asked if
they would get stuck paying $6 million to do that road.
Interim City Manager Williams explained they wouldn't make
any representations or sell any property beyond a certain
point. The idea behind the plan and retaining half of what
33
Council Workshop
July 17, 2006
is left out there is there are some negotiations ongoing
with Volusia County Economic Development for about 15
acres. That proposal would probably provide a large
employee base for a lot of people in this area. Until that
comes to fruition it is just speculated at this point in
time.
Mayor Thomas commented on the increasing gas prices. He
would rather have Plan B in effect which he thought Interim
City Manager Williams was trying to do. He would love to
give the citizens of Edgewater a tax break but if fuel does
go up more, they will expect their trash and debris to be
picked up and they still need to provide those services.
He felt it would be better to be prepared. He thinks what
they need to do was give Mr. Williams some direction on
where they wanted to go.
Councilwoman Lichter stated they can always go down but
they can't go up. Interim City Manager Williams explained
the theory was once they advertise that TRIM millage they
set it at 6.45. If they find something in there that would
generate some savings going into the last budget hearing
that would allow them to work down the millage, they could
propose that and come back down but they cannot go back up.
Councilwoman Lichter would rather go higher and come down.
Councilwoman Rhodes felt it needed to be set at 6.45 and
they needed to go from there.
Councilwoman Rogers referred to Page 43 - Water & Sewer
Fund of the Budget Preparation Worksheet. The 2006 YTD
actual was $2.4 million. The revenue proposed for 2007 was
$3.5 million. She was looking at the bottom after the
expenditures are taking out they have a net income of
negative $680,000. She was trying to understand why $1
million from the fund transferred to the General Fund and
that creates the loss in this area. If she looks at other
funds within Environmental Services she is seeing these
negatives. Then she wondered where all the money was
going. She spoke of increases in Other Contractual
Services, Utility Services, and Insurance. She asked for
help understanding.
Interim City Manager Williams informed her YTD was through
June 30th so that didn't look through the end of the year.
34
Council Workshop
July 17, 2006
He then commented on the reason for the property and
casualty insurance increase.
Interim City Manager Williams commented on one item they
didn't describe tonight. When they originally proposed the
budget to Council at the first workshop they proposed
rolling back the annual transfer from the Water & Sewer
Fund from $1 million to $600,000. They have gone back and
looked at this and said they really had to address that and
were going to continue that transfer to be $1 million for
this year and set it as a long term goal to try to ratchet
back that annual transfer, which was in relation to the
auditor's comment. This is something that the General Fund
has relied on that they set out and had very good
intentions of addressing but due to circumstances beyond
control at this point they can't address it this year.
They can set it as a long term goal. They have placed a
majority of emphasis up until this point on getting a
General Fund presented that they can establish a millage
rate by and their intention is to use the next two budget
workshops for their Enterprise Funds.
Councilwoman Rogers stated what she was getting at was the
utility services, the increase and then the other
contractual services increase. Interim City Manager
Williams informed her they would identify the sources of
those increases and bring them back. Councilwoman Rogers
stated that is $250,000 and according to the schedule
that's a difference of a quarter mill right there. If that
is perhaps an overstatement, then that is a quarter right
there. The fact that they have increased the transfer is
creating a loss in that fund. Interim City Manager
Williams informed her it would be a balanced fund when they
come back to Council. There are some revenues associated
with assessments that were not projected.
Councilwoman Rogers wasn't for going with a millage rate of
6.45. She would be set with a minimum of 5.95. She would
rather see it go to 5.45 because of the 1 point increase in
2002 due to the pension and now if the pension has been
making money that was only supposed to be for one year.
Councilwoman Rhodes thought she specifically said at that
meeting she remembered somebody else saying it would only
go up for one year. She said she would never promise that
because she has never yet seen something go up for one year
35
Council Workshop
July 17, 2006
and come back down. Councilwoman Rogers stated she spoke
to Ken Hooper about that and it was supposed to be that one
point would be in there for one year and that wasn't on the
record.
Councilman Vincenzi stated he would go for 5.95.
Councilwoman Rhodes stated it may end up being that.
Councilman Vincenzi stated he has never seen it come down.
Interim City Manager Williams needed guidance from Council
in terms of the priority list.
Councilwoman Lichter agreed with 6.45 and hopefully it
would go down.
Councilwoman Rhodes wanted to know what the Council would
like to cut in order to make the 5.95. Councilman Vincenzi
stated Interim City Manager Williams mentioned a lot of
capital items but that wasn't the only place they could
make cuts. He spoke of there being a lot of areas in the
individual departments that could be scrutinized and cut a
little here and a little there and they could probably make
their goal.
Mayor Thomas asked if there were any incentives they could
give to the City employees because they know where the fat
is. Interim City Manager Williams explained for the most
part they have presented a budget to Council that describes
a decrease substantially in proposed expenditures across
the board. The rest of the budget was personnel costs,
operating costs and debt costs. He spoke of Council being
concerned with the level of benefits they are providing but
he didn't think it was Council's position for him to open
up those negotiations and target any of those benefits.
Mayor Thomas asked Interim City Manager Williams if he said
that the difference between 6.45 and 5.95 would only save
each house $3 per week. Interim City Manager Williams
stated roughly $3.23 a week.
Councilwoman Lichter commented on being more worried about
what they don't know. She wants to go down if they can go
down but she wasn't going to chance that because they want
the services.
36
Council Workshop
July 17, 2006
Mayor Thomas asked about reducing it a quarter of a mill.
Interim City Manager Williams informed him a quarter of a
mill would cost revenue wise $261,000. On the priority
list they have $363,000 they are saying is available.
Councilwoman Rhodes stated that had to go in their reserve
fund.
Interim City Manager Williams stated if it is $261,000 that
they are going to cut out of there they are going to have
to start dipping into the priority list and go from there.
Very easily they could say they weren't going to transfer
to the capital projects. He thinks that has a
demonstration of being reactive and they need to take a
very proactive approach to that because if they don't
satisfy some of those needs now next year the vehicles are
going to be in worse shape and they are just perpetuating
that problem. At some point they are going to either have
to stop providing that service because they won't have the
equipment to be able to get out there and do the job.
Councilwoman Lichter commented on when the roads were done
in Florida Shores and the City going with the cheapest way
and the roads having to be resurfaced sooner. They think
they are saving money at the moment but they really aren't
because it ends up costing more a few years later.
Mayor Thomas commented on a lot of the citizens telling him
they don't want growth and they don't want condos and that
pays for itself. If they are going to be a residential
community then they are going to have to pay the bill.
Interim City Manager Williams stated if they stopped the
growth as it is right now and they went with the annual
increase of 3% or cpr that negotiated contract and
increases in cost to provide services would outpace that
and eventually they would be forced into a situation where
they would have to start laying people off and cutting
services.
Councilwoman Rogers commented on when Police Chief Taves
came to them for the additional funds for the radios.
She made a comment about being able to forecast if possible
those kinds of needs for departments and going for them
with a grant. A lot of these items that are $20,000 and
under she would say there's got to be some grant money out
37
Council Workshop
July 17, 2006
there so this would be a good priority list for their grant
writer to start looking for something in this area. She
asked if they were doing that.
Interim City Manager Williams felt they exhaust every
measure they can in finding grants. He spoke of what they
did years ago when they converted the system. They solicit
every possible source of free money or somewhat free money.
He spoke of having to have a backup plan.
Interim City Manager Williams again referred to the Capital
Improvement Element that is part of SB360 that they are
required to submit in December 2007. Any capital
expenditure they are going to have within a five year
period, the first three years have to have dedicated
sources and grant funds are not considered dedicated
sources.
Councilwoman Lichter commented on the directors being very
industrious in finding grants.
There was further discussion regarding grant opportunities.
Councilwoman Rogers was looking at the 35.3% property value
increase. That is an additional $2 million in revenue.
Interim City Manager Williams was telling them they need
that and yet they have approved developments and they have
gotten grants and they are still suffering. She feels
there is more they can do.
Interim City Manager Williams asked Council where they
would like him to start. Councilwoman Rogers suggested
with the one fund that he is going to balance that is off
by $700,000. Interim City Manager Williams informed her
they have identified that they would be coming back to
Council. He also informed her that doesn't affect the
General Fund. Councilwoman Rogers stated but yet there is
a transfer to the General Fund so therefore she felt it
does indirectly.
Interim City Manager Williams stated if he takes that
$400,000 then they have no money left over for any
contingencies or fund balance unless they start dipping
back into the priority list. He spoke of management letter
comments they received that suggested they place more of an
emphasis on balancing the General Fund without such large
38
Council Workshop
July 17, 2006
transfers to the General Fund. They set out with that
intention.
Interim City Manager Williams commented on it being prudent
upon them to be somewhat conservative in trying to estimate
the variable costs. They were trying to describe a
solution to prevent the continuance of adding fixed costs.
They are trying to drive the fixed costs down that way they
have more money to place towards their variable costs or
they can get it back in the form of a tax reduction. They
will continue to look. It was prudent to set the millage
rate at 6.45.
Councilwoman Rogers stated since they have two more budget
workshops in August what is the time frame right now.
Interim City Manager Williams went over the budget meeting
schedule.
Councilwoman Rogers stated by law
they have to adopt their millage.
they have to set the millage by.
Williams informed her by law they
the Tax Appraiser's office on the
August 4th.
September 30th is when
She asked by law when do
Interim City Manager
have to have it back to
proposed millage rate by
Councilwoman Rogers stated so they didn't have to set the
millage by the next Council Meeting. Interim City Manager
Williams informed her they did because they wouldn't have
another meeting. Councilwoman Rogers stated they could
have a meeting. Interim City Manager Williams stated at
workshops there is no official action to take.
Councilwoman Lichter asked if he needed this from them this
meeting. Monday night they are going to vote.
Councilwoman Rogers stated she wasn't going to be there
Monday. She was told she could write a memo to Interim
City Manager Williams and have him read it on the public
record. She has also been told that they can set the
millage prior to that and that it didn't have to be at the
next Council meeting. Interim City Manager Williams
thought they would have to advertise it if they were going
to take official action. Councilwoman Rogers asked how
many days in advance they had to advertise. Interim City
Manager Williams thought it was 30 to 45 days.
Councilwoman Rogers stated they have already advertised
39
Council Workshop
July 17, 2006
that they would set the millage rate on the 24th which
wasn't officially a meeting date for July.
Interim City Manager Williams stated they originally
targeted the 10th as that date but due to differences of
opinion they decided to move it but they knew when they
moved it they were narrowing their window. TRIM compliance
is out of his control. He again reminded Council if they
set it at 6.45 they could come down. If they take the
action of 5.95 he is going to go back. in the list and he is
going to start taking it out. From the consensus he has
gotten tonight is they don't want him messing with benefits
and he can't mess with debt, then they start getting into
the issues he thought he had addressed in terms of not
thinking about the future.
ADJOURNMENT
There being no further business to discuss, the workshop
adjourned at 9:35 p.m.
Minutes submitted by:
Lisa Bloomer
40
Council Workshop
July 17, 2006
,
CITY OF EDGEW A TER
FY 2007
Budget Workshop
AGENDA
· WORKSHOP GOAL
· DISCUSSION POINTS
..
GOAL
· COUNCIL CONCENSUS FOR
SETTING THE MILLAGE RATE
DISCUSSION POINTS
General Fund-Income Statement and estimated fund
balance FY2006
Taxable Value Survey
Excess Revenue over Expenditures
Capital Expenditures not Appropriated
General Fund Revenue & Expenditures by Function
Impact of New Positions
Comparison of General, Police and Fire Pension
Plans
Major increases
Payroll Projection Worksheet
Priority List
Economic Development - (Parktowne)
Ad-valorem Tax Revenues at Millage Rollback Rates
2
General Fund Statement of Revenue,
Expenditures and Changes in Fund
Balance-Budget and Actual For the
Period Ended June 2006
--..-----.----------~1_-~~.N~ ~:::::_J~~~~~!l
REVENUES-:,-."u'~'-""'~__"_N_'_'''''-''''-'-'.'-'-'--'~ . l
~~:~'~"~'~~'Nr;-p ERM"ifS.....----.....- ...~I;..~IQ';.~~~t.f};.~-~~.~.~~.}j... ....... ..._~~~..
iNti:H{G6\n~"RNM'E'NfAI""REVENUE'S"'-' . .-6"7%....
c-HA................... '. 244, 68 jiis";oo2" 159%
F.iNi:fs.)~j;jD".F-6Fi"Fi:fifuREfs. .......-...t 155,600 ~ 15S~600 t 102,856 "66%"" - .
'~fPACT.FifESJS.FtECiACA"s-seSSME:"t:jis-f . ....-5.:(50(n:::~::~:::~:::~:!:~~::L~.::::~~~:~~:~~~~: 118%
!HX~..~~~..~.f{t...iHC?~~$.._...__...H_...._._..__................_..l......_..._...._~~.!.~g2. .__.__...__.~~!.~~.l_._.M..._.....~~~.~.?_~. .............'.6.2.,;.;
~~CELLAN~~~_~~_~_~___.~__~._I~_~__~~50 -~--~:3.~._~~-~~---_:!.~!t-"=~.~~!!~.,.~~-
.......__.....__._._.....~.j.~TAL..RefvEfNu~..~..~..~~~~~1 $ 11.698,136; $ 11,686.136 i $ 9.982.264. 85%
General Fund Statement of Revenue,
Expenditures and Changes in Fund
Balance-Budget and Actual For the
Period Ended June 2006
:~ -.:--::::~ ~-:-~ ~:--~ .:- - -.-.:.:-~~ :::~;-.: ~~::; .: -~~~~~--i~{~U:i~
'EXPENOfruRE"s:------.--- ---- ----------- .--- ----- ;--- ----=1--------.
i2fPi~~~~R-..---.----...------. 63,938 ._....=~~i~~=~~:~m=j~~
713,390 ; 514,360 72%,
333,271 ; 202,863 61%;
--4~~t~ ---:~:;~~r:=Jf~ _.-::-~~!
-'---'-281:-977 ----28f9iir..-166:-~=--595J
ES 2,248,347 2,226,951 ; 886,099 40%;
m"-_-=~@:3i9 -:=~~:j3~L:=3:iii:~: ==~6%!
E OPERATIONS 2,900,939 2,927,939; 2,332.719 80%;
!;:~d~~~\i:~~~~.:::='=::::'~-:::.~!,ill~iU"-::~,m:t!F:i~ifiif.---.-~~i
:??:h~~:::::::5~B;~~I:::::}~9~:i:~7.: ::::!?'&1
S 587,238 587,238; 175,931 30%;
CUL fuRE1RE"CREAniro~~~~~jj2~=i~i{;t~~l:.1i~~~:~F~i!:l~i~.~~']t~i
TOTACE>'PENDitURES-
$ 13,451,124 $ 13,451,124; $ 6,646,124
64%!
3
General Fund Statement of Revenue,
Expenditures and Changes III Fund Balance-
Budget and Actual For the Period Ended June
2006
. _ ...T~f.l!<:;aB~~. ... TRNAL
i BUDGET .. TEiUDGET-
ACTUAL
AMOUNTS
OTHER RNANCING SOURCES (USES)! i
i.~;;;NSFERSiN---~~=:::~~=~==__"':==I~ 1~o6o:<io~I.
F3~~Y_E.F3.~.9lJT_____. (685,797)1
LOAN PROCEEDS
.............................-.............--.....--........................--.._--.....
SALE OF LAND HELD FOR RESALE
1,012,000
636,340
.__(3.,~~1)
.._H.._...._.........__.}.. ..._...hm.._.............__..
1,438,785 I 1,438,785
... -.-....--..---...--.l...-......-...... .......-...-..
1,g~.s.,??~
NET OTHER FINANCING SOURCES
i 1,752,988 i 2,450,785 1,718,477
1---------1--------
! O+----. 685,797 3,052,617_
,___ . _____1:.__.___.__.._....... ...__!,?_~!,~.~.~.
j
NET CHANGE IN FUND BALANCE
FUND BALANCES-BEGINNING
..h....... .......__.__.___.._...._....._.....___..._...._...h..........
.._FlJt::'p_~_~_~.~_~_~:~~lt:I~_ j $ 685,797 $ 4,284,555
~~~~;~~~~;f+t-k+~~~
~i5%~TFi~c;,ly,;;~20(i6Ei~~p;d- ---------------.----j------- --.! 12.96%
Taxble Value By Catagory
Average Taxable
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
iJSFR-
. Commercial
o Industrial
Deland Edgewater Holly HU New Port
Smyrna Orange
Municipality
4
General Fund
..-....... ......_. .._~...._......__.. .m_.~.~......._. "..__.__.
m m .. . ~evenu:s& Expenditures byFunc~on
..---.................-................-.......-............-
i . j _. .. ... . i .:.~::~j"~Pf~~ .-.. -I.... ~i.;:~~=..l~~tii~!l-..
.~rT~bll-Ge-~erar-Fund-R;ve.;ue._.... 14,6n,21Ji 535,292! 3.79%1'"
..i!otar-<;:e.n.eraTFu.jl.d-................-... ........ :;1.2n:-B92.9n:.44,.2!...-.-......_-.-.._::...-_::_~.._~_...~_.-_:.._'...5-.._~.l_._:::~_..-_._..;._=:_....9..-_".'''.._.../1 ...... ..... ......... ............
....~T~..~..~.....=~~.~.~.~~.~~I!~~.~..._.. - l.
.~~===-:......m_.__ -......-.--....--...:~:==+~-.:-:--.-.-.::J::--.=--.-.-.t_::::-.i~-:_=::::-:--
Capital Expenditures Not
Appropriated
[:~:~~~~!~J:=..__.._._."'l'.._.__.._..__.._.._.._.__....._.__....-....--....- .._....__.._-_..._~._.__.-...._._.__.. ..-..-nT---'--"-"'-''''---'
----..--.tPHYSiCALiMPROVEMENtsi6..6EV:SVCS~.jjUiG:.--------- .$--.- ..(000.
----------:=::..::::IT.~(:P.l:;!!.~~Ii==-~::_==:=:=::=-....-----___m:::::=:=:::~::::-. $ 4,000
;
U-PGRADE BlDG;ofFiC-e:N"eW DOORS Ere --
-RANGE-ifSTX- COMM-OiiifY-OEiiELOp.ME-NT 5ill/06
,EiiiTldjng----..-----.------.-.------------..-----------
f2~t~~..:~:::.~~~-=..:::.-~~:r....-.----.-...-.....-...-.....--.--.--..-...-.-...-......-...-._............._.._...__._.._.__
r-----uoo
r---.---fa,ooo
$ 22,000
'PHONE-SYSSTAsS":sffeisURE PUBWKS--------------------..- -r-.-------<<:oOO.
:_;~~~~~~~~~~;:~~~~F~~~CEMENTS) I.: - 3~::
,EMAIlARCHIVINGHARDWARElSOFlWARE - -- --- -- -- $ --- ----2"0:000
::::=:-:::f~~i~~~~~~~i~i~~E--_~-: :~_ -- - ~-:- ~~ ~- r-~--- ~~~~:~
..---------.-...---.-..-.--.r--------3)OO.
-...-.----......-....---.......-.....-..-.. ..$._..__..........--r~OOO.
.............-.-.........--...-........-...-.......-...- ".-.. .S-..-..............S;50j)".
,:fG-BIC FIBER-ffiANS-CENERS.-----.-..----..-..------s---------...-..1)00
,UPGRADE SOUND VIDEO COUNCIL CHAMBERS $ 15,000
,TotalOGS $ 175,000
5
Capjtal Expenditures Not
Appropriated
,
i ~mm~H~~;
, s miii:7io!
r'_"'~~ .~~.~..'v, ..~ '.~'rf'~"-"1"~{'f!~~o~'l
. .0.....0.0.. m. ......' S ..... .....1(57306 1
....6N'iA5iil/ii6-.".-"-.._..-"._-:::~-.. ......-.-.:;..:....m..........~::::.l
~i~/dG~~~...............-............. ................:.-.-.=-.-.-.Tr=.=.~~~
5/11106 -----,1----",000
....TUHFNHF RADlo7~t~~~PI.~~~~-'~.~~"- ............~~.~.]E~........::H~I
.". ._......_.._.....~.... . .........1AUwpuCse-p-Aii.E-NTC6MPRES.SOR---................ . ......... ..__..j~~'~'_'_"'H'" .~..~~~.~~~_~
___ .....Tl'ir.1ii,.iieclof"....-....-..-.-.....-.....-..... ; S 57,4951
; ...__...._._._(!.~~~~!!!.._._._._..___.._...... II 372,495 I
:.a:iiimal Servlcu ~ 1 t
l__.___._____ '800 ~HZ RAD!2..F.2~~_~~~~.===~.=~.-.===J$--~5001
.._mJ!.?.~!.~.~j.~~.I...~~.~.~!.~.:.~ '" : $ 3,600 :
Capital Expenditures Not
____~WE~J2Q~te4___..___
Str.:~..-.....-.j%i~{~~[f1s~!i~f~~~~===.=:=======-:=::=~=~I====:II]~
; RADIO ; $ 1.500 [
.....-.-.-.:_3i~Q~=:::.::=-.=:-.::::::==-.-.-.=:-.:::.::.::::::::::::l':=:=~5?~~-'!
Repairs 1 $ 50,000 1
-.-.-.-..--.-...----............---....-.-..-...-.-.............--.-.-'1'"$"--'-"'--'--"5.00if1
iTotal Strut j $ 571,500 j
1 i
.~::=::::l~~~~~~i~~i.~~~dY._~~~~T~e-.p:ai~=::=::::===:.:~=IE=~=~~:.~~j
;(3) FORD 250 4)(2. WI TOW PACKAGE. LS 5111106 I $ 50.000 ;
L....--.:::::::=~~:l~~~~~~~~~~~~~~~~~=::::~ ..... ..mm..-:.~=:=~=FF-.:.~=;;lOOO.
.mmm. S . .....- .m..n..-....... , ;
RACQUETBALL COURTS ------..-n---96,Oo01
ROT"AA'("PARK"BASKEiiiAi:CcouilTREP[ACEMEif(' .... .-m"i".I:i:0001
t.-- ..~::~:~~~=: ROT~1~~BKf~RK_~~~2!:~:~=~~:~=::~:~=~~~~~:::~~:::~:::::~::::~~=::~~::~]I~:::~~:=:~:~:~~~~l
; m........__......._. J<?!1!!!!!'.!'f.l!'_~~.s..~.3.\\'i:lf.l.e.e.~.~.l:>!"5.!l'.E.~~.e.!..B0.Pe.~.....i..~.. ..m~.~~3..7..j
JOHN DEERE 757/60. Z.TRAK MOWE WIMULCH KIT ; $ 7,665;
.m ................._m_._. DARoT';:-ij'ifp(j[i:WP"E"iiJRFTENDER'wiECEctRiC"coiiiRbC'-"i-..-..m.-"1"4:8501
.. m .... ._.~_"_~'_H.._._...___._.._...._...__..~__._.....__m..........---..........-...-... .._............~...-...... ............m..~.l
~....
t I 698.152 [
._.....J.~.~I~_~!~=:~-~=~~_~~~~~~=~:~~.:.
..........-..-.-1 !
........_....._..J.!....__.~,.~~~..!1.~..i
mmmm.....m....... $ (363,339)1
m___m'_.' ...lI._..m!,1Z~?!..1J
. m ......................._.~....._
. . .'
. .
. .
. .
___..,v".~.W_'_.H~'_ _~_..."_..A__. m_"",,,
6
...... ..... ...... ..... ..... "Ge'n'~';';i-'F~'~d ...
'~.~.~~.~.~,!'.~'.(~'P.~,~'.iijtu,:.~ ~_y_~-~.~~'~t!.~n ~ --.
'-'2:"'61,236'
..........."3:(40(,........
........6.;752;054..:...:1::::
. . """2":926)2',-
",ins.i94
.......35,400--..
.. '6.(900'"
o ...
f
1,000,000
12,753,769
. .~:"""":~~~.~~~g~:::: ......+-. ....~;~Ptil;/~.....
General Government Revenue:
"';-Ad:va'ior~m'" ..-....... ...-.......-........
.-T6ih~i.'i.a~.... ... ...-.-.- .........-..,-_......
:lnlefgoyernmentallevenues
:lnVestmenf'lnc-ome'.... ...........
. :~,ij-$c-eii'ar;eoiis
. :La'nd -ii"ei"d.iOi..s'aie.....
...!tians.;eii........
... ~ .::"f~~:a.U~!~6~:~:~:f.~~~:~~~!:::...: ...~.
.........4
..!...........~':~:~.........
12.470,507
-;--
::T'"
.. .:::~::r:::.:.::.~~:~~~~~I:::-:-:~=:r~
FY 2006 .
....:~~~~:w~t::::~~~?~:I==:..-
478,4241 9,74%1
....._M...~.~.5.~.~L......H~~~~~.~.i_...._
6,791~ 1.05%:
..... ...-~.,.2)O'5~.H....:2f75%:....._....
638,470, 10.47%:
~,~~.~;.!~_?L.~.....~.... ~.?~~~~~I~.~i~.~~.~...~!..\.~~~~...;
p~ti.,c._~~ili~.(f!!!-=~!.!.~.fHC?~l~CA_.
I Revenue S J8 145 j S
~1:~7~~~;~:.--:1::::::~:i.~:iL::~
. ................\ $ 6,098,277: S
....-1 $ (5,7t3, 132)] S
.:.=:::::::::-:-:::L___________L________i_
~H~~.~.~..~~_'?~!.~.~.~.~~..ty.~.~~~_~.:~.~~?~!.~.~.~M~.~_~~.~..!!':!.!!.~.Q.!M~~.~!.'!_~_.~:~.~.~I.._
---.----..---.---------.----General Fund -------------.---....-----.------
.... ....'..~.~.~.~.~..~.~:~~~~~~~.~...=~.'~.~.~...~~y.~~~~~~!~.~~~Ifu~~~~~.y.}.~~~~~.=..~.~~~~.~ ,..---.....--,.,.---.-...-...-..-.,-....
..............._..._._.........._M"_.._._.M:~ .:::::~~,_M.~.~~~~l=::. -....~::~~p.:~.~p.~~~~~:~~
FY 200& FY 2007
1$
734 000
=l::~..~=--=.::~:~:~:::~~::~~::=:=_~~::~~l:::=::~:~~::==::
..~.~~~~.t.m'~.~c~r~..p;';;~nei)"t....__.M.....
I Rr.oenU8 ~ S
..i!~~;:~:~~{fgr.:..:...~~:~_~.~~t:~..~...
==:::~~~~;~= ::::I=::wf~~!~:~~~~~~:~j~~:~::=~==:~::==~J
11 000 $ 11000
1,204,140 t,242,537
....49ifsoo ....-. 4S(4"n
.-------0 ..---.-0
i'--' "'~~'------'O --" '--'---"'-'-6
""t $ 1 695 038 $ 1697009
1._=:==~=_...._..._..._==I.$___._.._.._'_~:~:::J~__...._m',:6~;~~-.:=;.'-_~Z~=______1___..________
-----:~~:J----OOO%j---------
..-..~.-.... .3(39.t;_....M-.f19%r.~-..-........_...,..__..-
....~.:..~::~~j::::~:~~~~~:~.r..._..
7
General Fund
. ...R~ven~es~~pe~:ajiur~jbyFunc.li~n
... ...
Pa~ks and R~cfealion:
{~~;~E:f~:&~~::~f:::::~:':._,. ..h.._...........: S
~.t---P-ersoMeTEll~p;ndi;:;~e$ ,
~.P._~~~r.~:~:.~:~P~.~~(u.~~~ ... . ......_...;...
! Capilal Expeooolures I
P' f""'Oetit"S'e~ce-" --. i
::::::1:::::~!~~~::~~~~~~U!~,:~::~ .. i
,Total "pooo,,,,,, ...... :.:::: I $
.... ..-...............N~~.~~~.~..~I~~H~!.. ! $
J
.......m...m...L.
..... ...~~.dg:~r.
. Fy"2006
......hp;:op.o.~d
. FY 2001
Increasel .. ':%'i'~c;e'a'seT"
Decrea~Dcrl!a5oe
ml"~ hM. . m"_"~"-"-~:~~'~~:g!C:::: ::-1 .....j)_!C?P.~~d "-T;;c,"e'i$;,
;.~~~;::~n, (S...bl _. . _. . _ FY 2006 : FY 200T.~.:;.'"
:::::rt~l~ f!ewnue __ _ _ _ _ _ _' S .00,719 I $ 4-49,298
-t-fersoMeI E)(pendlures A._~1,969~ 226,499 _
Op.,.o"o E,p,OO'",.. F::::::::=:.:=~;r.ogj=:=.........~':'~~~'.
: $ 587,238 r S 311,592:
....y. .........~.~~..~~.~~.~.~.~~_~.~!. ....: S 1156.519)! $ 137,706 ~
i
...r.. mmmmmm ........-. .........
._..L...._
e'cr'ease"i:ji loss"
General Fund
Revenues & expenditures by Functlon
.... h~p~~~:: .... .... "i"nCi';'asei' ':'/.lncfusel:
FY 2007 ; D~~i-~"'se 'l" oc'~~ase"T.. .
. $ . j --.-..--....-..O:..--.-----..-..T
52.765 53 485 -'''1:'36% '
I 11,173 . 5.01'" ,
=~!i~cr:::~~~~~~
BUdget
FY 2006
m'l'" .. ... .-,-.-.. --P...- Bu'dget" ....::...'.'l.:..:..:...~i~7~~.::~~..+ i'n-c'rease"" "W~incr'e'asef
I!!!~=~~~:>~~;~f{t;;~
8
lInpact of New Positions
Nu~ber of! .~
"'p'oSi'U-o-ns"'TD~'scr'iptj"o'n'"
1 ! Fire Inspector
~- ~.2- -- ~~.T~'.~_:!.!.~.~._~~~~~.nit
1 : Plant Trainee
.1......-. Tpermit"c'oo;d'inator
-.-----r--.----
2 i Police Officers
__.L
L..
I
Total
JDepartmentl ....EX.p.~.n;;-..
ropo~_",_._2.?3.9._i-,_:!.6,682,~ 7,
ropoaled: 2240 , 55,358.16
~~~ij:~*!r=r{!.~~t~
____1-___L____
Ilnnual Required Contribution Stated In Dollars
S1,000,000
tit $800,000
" S600,OOO
0: $400,000
o $200,000
SO
Ascal
Vear
2001
Fiscal
Year
2002
Ascal
Year
2003
Rscal
Vear
2004
Asca' Yelllr
Ascal
Year
2005
Fiscal
Vear
2006
Fiscal
Year
2007
Annual Requlrod Contribution Stated as Percentage of Pa}1'"oll
o
i- 50.00%
a. 40.00%
Ci 30.00%
k 20.00%
ti 10.00%
~ 0,00%
Q. Fiscal Year Ascal Year Fiscal Year Fiscal Year Fl&cal Yur Fiscal Yur Ascal Year
2001 2002 2003 2004 2005 2006 2007
m General %
o Police %
.Flre%.
Ascal Year
9
Major Increase
, .
. - or'" 0 ..,,,_.._._u_. -,_ ,_~.~... _. ..~___.. -'-"-1'---- ."'^...-_...._.__._.____.~..__ ~"_~__"_N_'''''';'_.__.._.__,.__~.__
~.~~~.r!~~...._...._.___._.__lge~~~~.'.!PIO~~~~-~~F.~-~~~!:~~.J----- 5. 60_0(~
IPollce Officers i 5.000/.
--------------j- -~--
---..-.----____..__...........__L._________.____..L__.___..
I_~.s_':l!~.~~~_.___._ .... ........ ~_~_~~t_h..~:':.r.a..~~.!i~~!:'__?.~__ .._..__.L_.!.~:_s.Q!.o
._______ Property and Casualty ___L_~5%
---
10
......... g~. p',~.~_I,___~.?< P~.ry.~...f>>..d~~.~.~!Y.._~.!,~...
; T 9_!_~~m~.~_~~.~..~.__.~..e\.en ue
iFema Re\enue
: T ota'" 'R'e'~~ n'~'~'"
. ...,,,..............
$
.............-..t $'"
$
1.772.771,
24'0)46;
2,019,817
5yr '';ase Vehicles $223,000 . $ 'm(52.~9'39!j
Shuffleboa'rdclubhouse" ... "$' (120,000);
.h.uffleboard "~o'urt~_'wi"t"h"_-ii-~ih(s .- "j"'$' ....-(2.1"7.:.066).;
(Raquet...bal'I...cou.rts..........._... .....- $ (96000)'
[.~~~)~~~:...~~..:.~~~.~.~.=.~~:__~_~__. . - ._,~.... H^_., .. '" ~. Ai" -- :-~~~'~~~~~~~;'i
t.~~~~.!.~_9.D.~.~...~.0.Q!~~~~~.~Q .... ... .... ... 'n__'~",,,,_, .............1.-$- ..u.. "(30~o66)1
l.~.~~~<?~.~.~._!?..~~l~P..~.~_~~,.J=.~,~_~!::~9.~~~....'2~~~~_~..~m_m~__~...~..._,.~~._~~j~~.Q.!..3...~.~ij
,Road Resuriacing est, 14.000 If , $ (250.000); "
!~.!~~..:::'.~~-~.':pa,iL~==:=.::-=.=.=:.::-..::-=:~-:-~==::::-1:t.::::==.::::E~~C!C!)}
j2 police officers with equip I $ (109,829)1
~ili~~~~~ff!~~0~tl~~il
~ii~;~:~:,~~~~~;=~:~.~-~:::.=~~:~-:.~f~t.=~0:~~ii1ii11
:t~~.':.=.:::.::..m ...... .... .... '. .....-........l $ (1,658,627)
;
tEX-cess-R;.v-;;:.~~~-~--~., .~._"'
;_ ......~....__........._m
$
361,190 i
Economic Development
(Parktowne)
· Short Term - Contractual obligation
to build Base Leg Dr. and Driveway
A. Estimated cost $3,000,000.
· Long Term - Continuance of
Parktowne Blvd. Estimated cost
$6,339,000.
11
Economic Development
Continued
. Short Term Plan - 15 year finance.
Estimated annual debt service payment $350,489.
. Long Term Plan - RFP for half of the remaining
acreage where as the City will convey ownership to
the successful applicant in exchange for infrastructure
development. The remaining acreage owned by the
City shall be sold.
Parktowne
Conceptual Development Plan
12
, ,
'Ad-valorem Tax Revenue at Millage Rollback Rates.
i~:_~.:;~-~~:o~~-~_]~~.~:~_::_'_-~-_:I:~~iI ~a:c_~=F.~=~-'=':~.~:_'..J
: Millage Rate! Roll Back t Rate ! Difference;
:~==:=_?:~_?===l==.==Q:.:?E::=f.::==i3'::2:@.(J.:::I~c:::-?~~.,.1.?Tj
i 6.45 ; 0.50 ! 5.9500 ,$ 522,253 i
,:=-~=~~Is.::::::::::[:=:()=!~:-:.r:::~~~!~():~::I.J:.'::?~~;~i~1
: 6.45 i 1.00 ; 5.4500 $ 1,044,505 i
L:::::Ji;~I=:~:~:L:::=:~u.iL:]:::=~::Sii?Q::t!:i~~~;5~I]
13