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08-08-1990 - Budget Workshop .' . ~ ...., CITY COUNCIL OF EDGEWATER WORKSHOP AUGUST 8, 1990 MINUTES Vice Mayor Russell Gold called the workshop to order at 7:00 p.m. in the Edgewater Library. He stated the purpose was for budget review for fiscal year 1990-91. ROLL CALL Mayor David Mitchum Councilman Dan Hatfield Councilmember Gigi Bennington Councilman Russell Gold Councilman Thomas Fish City Attorney Josel Alvarez City Manager Elly Johnson City Clerk Susan Wadsworth Chief Lawrence Schumaker Arrived Later Present Present Present Present Excused Present Present Present Vice Mayor Gold recessed the meeting at 7:01 p.m. to await the arrival of Mayor Mitchum. Mayor Mitchum arrived at the meeting at 7:02 p.m. and called the workshop back to order. Mr. Johnson stated the tentative millage rate that will be advertised is 4.89 but what is proposed is 4.60, and the rolled back rate is 4.5446. He explained you cannot go up on the rate without first class mailings to every residence in the City. He explained the reason for the proposed rate is a change in valua- tions but mostly because of growth in the community. He pointed out the impact fees for lights isn't in the budget and the increase in sanitary, which he'd told them about last year, is proposed at $1.60 for a recycling fee and it will be used strictly for recycling. He stated Council will review the water rate study. Mr. Johnson stated revenues are very conservative and some won't be 100% and some will be over 100%. Mr. Johnson stated page 13 shows the mi 11 age rate at 4.6 wou 1 d generate $1,344,196, which is at 95% due to delinquent taxes and other things. He noted taxable value went up $37 million. He pointed out property tax makes up 26.2% of the budget and this is the third year they're recommending a decrease in tax rates from the prior year. He stated page 15 is a breakdown of tax assessment rolls and page 16 is a summary of total revenues and expenditures of the general fund budget. He explained that doesn't include stormwater, refuse, or utilities and those are separate enterprise funds, plus the self insurance fund is an enterprise fund and accounted for separately. Councilmember Bennington asked how they arrived at the building permits figure on page 17 with workers comp and concurrency and the abundance of available homes for sale. Mr. Johnson replied they based it on the past three years when they underbudgeted. He said there's concern with the economy and the Middle East situation and with the market and if it doesn't change, they'll cut back on services or other things and capital items, but they feel the projection is close. He said there's also concern about the outcome of the DCA plan and before the two budget hearings they'll make an adjustment and ask Council to consider it. Councilmember Bennington pointed out this will directly affect the parks and recreation fees. City Council budget was reviewed. Mr. Johnson stated the budget was $69,485 and the proposed change is $86,022 and the major change is due to requests from outside agencies. He read the items under Promotional Activities. Councilmember Bennington stated she doesn1t think Volusia County Business Development should be increased now and should be $6,250, the same because we1re getting more from the Chamber than from them. She stated Chemical People is getting more and more dependent on the cities for support and they1re getting grants and she suggests it be the same as last year at $4,500. Councilmember Bennington asked how many are from Edgewater for the New Smyrna Beach Show Dolls and how do they benefit. Parks & Recreation Director Jack Corder replied several. Councilmember Bennington questioned the $150 to Florida League. Mr. Johnson said it's an ad for the publication once a year. Councilmember Bennington asked about the Citizens Information and Referral Service that she didn't even know was available < . '-' ~ City Council (Continued) and they want $250 more. She suggested it be $500, the same as last year. She stated she tried to spread out the Chamber of Commerce figure but it's easier to leave it in one budget. Mr. Johnson commented on the excellent job they're doing. Councilman Gold stated he had about the same things and he asked about the Independent Child Abuse Relief Enterprise. Mr. Johnson said it's I-Care. Councilmember Bennington noted they sent a lot of information with graphs about how many people are served. There was a question if it's the same as Citizens Information and Referral Service. Mr. Chip Kent, from the audience, said it's with United Way. Councilman Gold questioned if County or State welfare works in relation to this. Mr. Johnson replied Federal funds are depleted and the County and State are doing some, but now they're coming to local governments. He noted some cities have social services departments. Councilmember Bennington stated she has personal use of some of this and the welfare system or HRS doesn't help. Councilman Fish said he'd like to leave it there. Mr. Johnson stated the insurance is projected at a 60% increase. Councilman Gold asked if Council can be exempt as he's not in need of it. Mr. Johnson stated the last time they checked they said we can't do it and it's coverage the same as all employees. He briefly reviewed situations with COBRA. He pointed out instead of budgeting the full 60%, they budgeted 30% and it will be adjusted if needed. Councilman Hatfield asked if it's different coverage for insurance for the Mayor. Finance Director Fred Munoz said it's dependent coverage. Councilmember Bennington questioned the Volusia Council of Governments increase. Councilman Gold said they're working on contracts for all cities. Mr. Johnson briefly explained the purchasing service established for cities and the County, adding they're looking at pools for insurance also. Councilmember Bennington asked what they paid last year. Mr. Munoz replied $3,100-$3,200. Councilmember Bennington asked if they increase it by population. Mr. Munoz replied it's 34 cents and it would be $3,328 at 25 cents. Mayor Mitchum asked about books and subscriptions. Mr. Johnson explained that1s the summary of Florida League and VCOG. City ManaQer budget was reviewed. Mr. Johnson explained the budget increased from $119,764 to a proposed $134,021 and it's largely due to the building remodeling and increased health insurance. He briefly reviewed the other items. He explained the plan is to build the facility on the new park site which would be the office for Parks and Recreation Department and a construction facility, then held move to the back area and build an office there, and personnel will be where he is now, and accounts payable section will move from the South side of the building and give the Building Department the additional space they need in that area. He added Fred will have an office freed up for Karen and the other part will be shared by the two ladies. He said this is walls and carpet and they'll use the furniture they have now. Councilman Gold asked about miscellaneous personal costs which isn't listed on page 162 and FICA taxes is listed separately. Mr. Johnson replied Council approved a $1,200 a year expense account and he turns receipts in. He said in all budgets that's money put in until contracts are settled and it's an estimate. Councilman Gold again said FICA taxes are separate. Mr. Johnson explained it's anything related to salaries or any increase is put in that category until the issue's settled and those employees don't come under the contract and it's proposed 5% COLA and merit based on 0 to 4%. Councilman Gold stated it's usually listed in total salaries and wages and this was separate. Mr. Johnson explained they're not supposed to put it in salaries until it's negotiated. Councilmember Bennington pointed out travel and per diem for Council is $1,300 a person and the City Manager's is $4,500, which is 69% of the total Council's amount. Mr. Johnson explained he was authorized to attend FCCMA and ICMA, his professional organizations, and didn't change it from last year, but his pro- fessional membership went up slightly is why the one is increased. Councilmember Bennington asked about the $1,300 under miscellaneous items. Mr. Johnson explained that's anything he sends Sue to for training and miscellaneous. 2 Council Workshop Minutes August 8, 1990 '-'" ....., Finance budget was reviewed. Mr. Johnson stated last year's budget was $198,795 and this year is $201,457 with one employee coming from this budget to the City Clerk's budget. He explained some employees have a lot of time in service with vacation and the one new position will be trained as back up. Leqal Counsel budget was reviewed. Mr. Johnson stated they had a request to consider for retainer to go from $2,000, which includes the Attorney and a staff person, to $2,500, and that his salary rate go from $35 an hour for City business to $50 based on surrounding attorneys, adding that the CIP rate is higher. He noted the outside attorney expense is less and if they have a lawsuit and need special counsel over and above, it will come out of his budget and it would be upon approval of Council. Planninq budget was reviewed. Mr. Johnson stated the 1990 budget was $201,261 and proposed is $297,705 and the only personnel change is an additional Code Enforcement Officer which is needed because it's hard for one individual to cover this area. He explained Pat is also safety officer and investigates accidents involving City employees which helps keep the rates down. Councilman Hatfield stated he does an excellent job, but he questioned if a Safety Director shouldn't be a part of the Fire Department. Mr. Johnson replied he1s mainly the Code Enforcement Officer is why they leave it there and as they grow and if Pat retires, they'll probably make someone in the Fire Department the Safety Director. He added they'll fix up a used car and use it for a year or two. Councilmember Bennington questioned where they'd put the person. Mr. Karet assured her held find a place. Mr. Johnson stated miscellaneous personal costs are those related to the contract that's not yet bargained, and higher overtime is because they have to finish the land development plant and the rest depends on what we hear from DCA in the next few days. He said professional service is the possibility of a study committee for feasibility of a service area for future annexation, and the rest is for the GIS system. Planning & Zoning Director Mark Karet stated the breakdown for the study is $10-$20. Mr. Johnson explained it's 10 for the study and 20 for conversion. There was brief discussion of the GIS and ability to tie into other systems. Councilman Gold asked the cost for the annexation study. Mr. Karet replied 10. Councilmember Bennington asked why they have a planner and engineer. Mr. Johnson explained they have full time schedules of projects and can't do it in house because of day to day operations that have to go on. Councilman Gold suggested they wait. Councilmember Bennington said they won't be ready for it. Councilman Fish agreed to pull the other 10. Mayor Mitchum asked about the $20,000 for conversion. Councilman Gold asked about travel increasing. Mr. Karet replied it's the mail and they spend $350 a month. Councilman Gold stated travel and per diem is seminars. Mr. Johnson explained there are four people with training for code enforcement officers and safety conferences and professional things Mark and Lynne belong to. Councilmember Bennington asked about clothing allowance for three employees. Mr. Johnson replied it's $150 an employee per the union contract. Mr. Karet explained the person they1re adding will have uniforms provided. Councilmember Bennington asked about $1,000 more in office supplies. Mr. Karet explained there's mapping materials and other things. Mr. Johnson stated if the State finds us in non-compliance they'll tell us what the Comp Plan has to say. Councilmember Bennington asked where theylll put the equipment and a person. There was discussion regarding size of the table and other equipment and lack of space and need for a new complex. Councilmember Bennington referred to the $10,000 they cut from Planning and the way they put money aside in prior years for the Library so they'd have the money. Mr. Johnson said they may want to consider that when they get through and have the total amount. He added he was going to recommend Council establish a committee from staff, an elected official, and someone from the public to look for a future site for a City Hall complex, noting they're out of space and the Police building will be outgrown shortly. Police Chief Lawrence Schumaker stated they're about maximum now and within the next 4 to 5 years they'll have to look at building a facility to house 55 to 60 employees of the department. 3 Council Workshop Minutes August 8, 1990 ~ ...., City Clerk budget was reviewed. Mr. Johnson stated they1ve grown to over 150 employees and he's personnel director now but with federal guidelines and problems with hiring and liability, they need someone to handle personnel who deals with it daily and can handle it. He requested they consider a person as a Deputy City Clerk/Personnel Director so there wonat be another department head but will be support for Susan for back up so someone can be trained to handle it when she1s not here. He added one person was transferred out of Finance to work under the Personnel Director and under Susan and all personnel actions, insurance, hiring, firing, workers' comp and drivers' license backgrounds, physical and drug testings would be handled through that department. Councilmember Bennington asked if the organizational chart would have the others answer to the City Manager or to the City Clerk since she works directly for Council. Mr. Johnson stated Susan would work under his supervision for day to day administration and Council asked him to negotiate her contract, and this person wouldn1t be appointed by Council and only in her absence would function as a deputy. Councilmember Bennington asked if she'll fall under the City Manager, or the City Clerk and then the City Manager. Mr. Johnson replied the person is hired as an employee and has general rules and day to day supervision is by the City Clerk and disciplinary action would come through her. Councilman Gold stated he feels they have enough staff in City Hall in high paying positions and doesn't want to tax further and doesn't think they need a personnel director now. Mr. Johnson said he feels the person will pay for her own salary with State and Federal changes. Councilman Gold suggested they set it for 200 to 250. Mr. Johnson pointed out most cities have it. Councilman Gold stated he's not in favor of it. Mr. Johnson explained election workers are in this year's budget and there was no election last year. He said they have very little overtime but sometime they have to back up other boards when a secretary is out. He explained the machinery and equipment is related to the Personnel Director and the reader printer is the date processing system and a laser printer. He pointed out Susan will put out the information brochure and when they get the newsletter out shelll be printing it, and they1ve been trained on desk top publishing. Mayor Mitchum asked the breakdown for Personnel Director with salary and equipment. Mr. Munoz replied $23,254 base salary, approximately 3% merit increase of $698, $1,832 for FICA, pension of $2,395 and workers comp of $182 for a total of $28,361. Councilmember Bennington pointed out if you add the equipment of $1,176, it's $29,526. There was discussion about the need to have the position now with all the other things planned. Mr. Johnson stated held rather do without the Code Enforcement Officer than Personnel Director because personnel matters have become major dealing with the three contracts, and if you add the car and gas and uniforms it would be very close. He added he's in an arbitration hearing on the 20th and there are grievances. Mayor Mitchum asked if they could put the Safety Director in the Fire Department and Pat full time Code Enforcement Officer. Councilman Hatfield said instead of going with six new firemen, slow that down a little. Mr. Johnson said they looked at ten additional employees which is reasonable with the growth. Counc i lmember Benn i ngton agreed they need a Code Enforcement Off i cer and a Personnel Director. Councilman Hatfield said they may have other cuts and can put a tentative on it. Mr. Johnson said the additional costs involve legal advertisements with ordinances and other things, and all the work LDRA is doing has to be codified. Councilmember Bennington pointed out some costs from Planning and City Clerk will be made up by revenue from selling things. Mr. Johnson explained it doesn1t generate it up front. Other Government Services budget was reviewed. Mr. Johnson stated this is a catch all in accounting and the only salary is the lady who cleans City Hall. He briefly reviewed the other items. Councilmember Bennington stated there are a lot of maintenance agreements for copiers. She asked why they don't have just one brand. Mr. Johnson replied City governments are required to purchase the lowest bid item they can and they don't always come in the same, sometimes it's Pitney-Bowes, and one time it1s Mita, and others. Councilmember Bennington stated it's not cost effective. There was brief discussion regarding VCOG1s purchasing pool. Mr. Johnson stated the biggest item is street lights and it will probably go up this year. 4 Council Workshop Minutes August 8, 1990 ...,. ....., Other Government Services (Continued) Councilman Hatfield asked about coffee and other miscellaneous. Mr. Johnson said it's a small cost and something they've done. Councilmember Bennington asked if it's coffee for the advisory boards. Councilman Hatfield said it's good for the Police Department that works late nights. Counc ilmember Benn i ngton noted Finance has mi sce 11 aneous supp 1 i es of $900 on page 38 but not all departments have this. Mayor Mitchum asked about $2,400 for mis- cellaneous supplies. Mr. Johnson replied it's operating supplies. Mr. Munoz said the item for July was coffee supplies, operating supplies was petty cash of $479 and Burns Janitorial for cleaning materials, and machinery and equipment is to convert machines. Councilman Fish asked what type of guarantee they'll get from SMI. Mr. Johnson explained they may not be the ones doing it but now they're the only ones licensed to do the IBM the City purchased. Councilmember Bennington questioned what's included in the maintenance agreements. Mayor Mitchum called a recess at 8:35 p.m. and called the workshop back to order at 8:42 p.m. Self-Insurance budget was reviewed. Mr. Johnson stated the balance is a little over $1 million and they didn't appropriate anything in the current budget and the interest will accumulate and claims will be paid out of it. Councilman Gold asked about professional services. Mr. Johnson replied it's legal fees for defending a claim and any consultant or evaluation and this year they're having the entire insurance plan looked at and are in the process of getting proposals. He said the accounting and auditing is part of the audit. Councilmember Bennington asked what was spent this year. Mr. Johnson replied $9,673 as of the end of May. He explained the review committee consisting of himself, the City Attorney, and an insurance agent, with any claims over a certain amount to be approved by Council. Mr. Munoz clarified through July it was $16,727, and as of the end of June they had $1.1 million. Mayor Mitchum asked the interest on that. Mr. Johnson replied it varies according to how it's invested and most is through the State insurance pool and is done at the end of the year. Mr. Munoz stated it's basically C.D. rate. Councilman Hatfield asked if an umbrella policy will come out of this fund. Mr. Johnson replied yes, and up to a certain amount the fund would pay and anything over would come from the umbrella. City Enaineer budget was reviewed. Mr. Johnson stated most of this budget is equipment and books, publications, and subscriptions. He said it's reference books and membership to professional engineering. He pointed out workers comp is high but he argued with the State about it and engineers are a certain rate. Councilmember Bennington asked about travel and per diem and books, publications and subscriptions, with air fare for travel. She asked where the seminars are. Mr. Johnson replied that's the estimate for Public Works. Mayor Mitchum asked why they need all these seminars. Councilmember Bennington asked about books at $500 each. City Engineer Gates Castle clarified it's several books. Mr. Johnson explained there are no reference books and he needs materials for his job and they'll get it as cheaply as possible. Councilmember Bennington asked why an engineer who doesn't supervise anyone has to go to a management seminar. Mr. Johnson replied he works administratively with Utilities and Public Works and after this year, he'll have personnel. Mr. Castle pointed out he's very selective about what seminars he attends and if he doesn't think it's worthwhile, he won I t go. Mr. Johnson stated he requ i res Department Heads to take some courses and had set up three training sessions this year for Department Heads, Supervisors, and Assistants, and as a professional, he has to take so many hours a year. Councilman Hatfield stated reference books are one time only. Mr. Castle pointed out it's going from nothing to building up a library. Council- member Bennington stated she has no problem with seminars and training and reference books for a library but questions $2,000 for seminars and $2,000 for travel and per diem with books in addition. Mr. Johnson referred to what they've been paying for a hired engineer and what they have now with Mr. Castle's abilities to assist with Carl, Terry and Planning. Councilmember Bennington explained she didn't mean held abused it. Mr. Johnson pointed out training will be on the CADD system. Councilman Hatfield stated some of these seminars are one time but there will be others to take their place. Councilmember Bennington said there will be updates each year. Mr. Johnson noted if it doesn't cost this amount, they won't spend it. Councilman Hatfield stated what they budgeted this year to next year is reasonable. 5 Council Workshop Minutes August 8, 1990 '- ~ Maintenance budget was reviewed. Mr. Johnson stated there are no additional personnel. Councilmember Bennington asked if this is buildings and grounds. Mr. Johnson replied yes. He stated workers comp is up because of the workers comp law and vehicle repairs are up because the vehicle's older. He commented on the good job they do, noting they'll do the work if City Hall is remodeled. Councilman Hatfield asked how operating supplies will drop. Mr. Johnson replied there's a breakdown on page 60 of the items. Councilman Hatfield asked about uniform freight under transportation. Mr. Johnson said for anything they ship the freight comes under transportation. Councilmember Bennington asked about replacement of the yellow van. Publ ic Works Director Carl Overstreet replied it's in the budget to paint it white. Mr. Johnson stated at the next meeting they'll cover those scheduled for the 9th and possibly those for the 15th if they can. Councilman Hatfield moved for adjournment. Councilman Fish seconded the motion. Meeting adjourned at 9:05 p.m. Minutes submitted by: Lura Sue Koser ~ ~ ~ ATTEST: ~~~~~ CITY CLERK / this ~ () day of , 199 6 Council Workshop Minutes August 8, 1990