08-20-2012 - Budget Workshop CITY COUNCIL OF EDGEWATER
WORKSHOP MEETING
AUGUST 20, 2012
6:00 P.M.
COUNCIL CHAMBERS
MINUTES
1. CALL TO ORDER, ROLL CALL
Mayor Thomas called the Workshop to order at 5: 00 p.m. in the Council
Chambers .
Present Mayor Michael Thomas
Councilman Justin Kennedy
Councilman Michael Ignasiak
Councilman Gene Emter
City Manager Tracey Barlow
City Clerk Bonnie Wenzel
City Attorney Aaron Wolfe
Excused Councilwoman Gigi Bennington
2. DISCUSSION OF FY 2012/2013 BUDGET
Powerpoint Presentation
City Manager Barlow made a staff presentation and turned the Workshop
over to Finance Director John McKinney.
Finance Director McKinney went through the attached Powerpoint
presentation by describing the General Fund Reserves, 2012 Property
Tax on a Residential Home in Edgewater, Tax Analysis, General Fund
Revenue Breakdown FY2013, General Fund Expenditures Breakdown FY2013,
Changes in Revenue FY2013, and Changes in Expenditures FY2013.
Mr. McKinney answered questions presented by Councilman Emter.
There was further discussion and concern expressed regarding the
increase in the pension costs over the next few years .
City Manager Barlow further commented on the General Employees Pension
being a closed plan, there being no new employees paying into it,
there still being 17 employees in the plan, and that long term it will
correct itself. New employees have a defined contribution plan as
opposed to a defined benefit plan.
City Manager Barlow spoke of the General Employees Pension Board going
through a transition of changing money managers and investors . Mayor
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Council Workshop
August 20, 2012
Thomas commented on seeing the problem a long time ago and identified
they have not ignored it. City Manager Barlow spoke of every
community struggling with this because of the market.
Mr. McKinney continued his presentation by describing the Special
Revenue Funds Revenue Breakdown FY2013, Special Revenue Funds
Expenditure Breakdown FY2013, Capital Projects Fund Revenue Breakdown
FY2013, and Capital Projects Fund Expenditure Breakdown FY2013.
Councilman Ignasiak commented on the focus being put on the parks and
the visual improvements .
Mr. McKinney continued his presentation by describing Enterprise Funds
Revenue Breakdown FY2013, Enterprise Funds Expenditure Breakdown
FY2013, and Internal Service Funds Expenditure Breakdown FY2013 .
Mr. McKinney and Personnel Director Donna Looney answered questions
presented by Councilman Ignasiak with regard to new federal
requirements, if they would have any affect or if the City had already
planned for that with regard to healthcare.
Mr. McKinney continued his presentation by describing the Citywide
Capital Outlay and answered questions presented by Councilman Ignasiak
and Councilman Emter regarding some of the vehicles .
Mr. McKinney then commented on the Citywide CIP with regard to Street
Resurfacing and General Construction Projects and with the assistance
of Environmental Services Director Dewees answered questions presented
by Councilman Emter with regard to Sidewalk Infill .
Mr. McKinney and City Manager Barlow commented on the Water & Sewer
Renewal & Replacement. Mr. McKinney then commented on the Stormwater
Capital, Future Land Acquisition, Citywide Debt with regard to Voter
Referendum Animal Shelter FY2013, Citywide Debt Reduction, and
Issuance of Debt for FY2013 .
City Manager Barlow informed Council they would have the final budget
hearings which would establish the final millage rate at 6. 50 on
September 10th and September 24th.
Councilman Emter commended staff for the process they had been through
in order to generate the budget. He was impressed.
Councilman Ignasiak commented on tightening their belts for a long
time and still finding room in the budget to do improvements . He felt
staff did a good job.
Councilman Emter asked where the tax rate put Edgewater in comparison
to some of our neighbors . They were right in the middle of everyone
right now.
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Council Workshop
August 20, 2012
Councilman Kennedy commented on changes made to Economic Development,
which would increase the City' s investment. He commented on looking
to the Chamber in the past at a cost of $10, 500 per year to carry the
economic development task for the City. He asked at what point do
they pull back on that. He questioned what the expectations were of
now having an in-house economic development department. He felt they
needed to measure what they get back out of the $10, 500 .
Councilman Ignasiak spoke of supporting the Chamber because it
combines all of the business interests on the lower levels in Volusia
of Edgewater and New Smyrna. He felt they should continue to support
the Chamber.
Councilman Kennedy explained if the City wasn' t giving them the
$10, 500 they would still accept a membership from a business in
Edgewater. He felt the Chamber should be self-sustaining and that at
some point they should start talking about weaning them off of it. He
questioned what the Economic Development/Special Events Coordinator
could do with the $10, 500 for Edgewater businesses .
Councilman Ignasiak agreed but felt it was something they needed to
look at but the timing wasn' t right. He felt they would send the
wrong message out to the businesses in the community.
Councilman Emter commented on supporting the Chamber of Commerce. He
wanted to have a concept of what return there is for the $10, 500. He
suggested City Manager Barlow develop a process whereby there is some
communication to answer that question.
Mayor Thomas informed Mr. McKinney he did an excellent job. He asked
how much the City was still in debt. Mr. McKinney informed him they
had $1 . 9 million in the General Fund and $20 million in the Water &
Sewer Fund. He estimated the total debt to be $21, 950, 000 .
City Manager Barlow commented on Team Volusia with regard to putting
$10, 000 in economic development and identified he would not release
that money until it came back to Council for authorization. They have
secured the money if they want to join later but if not, they
reallocate that at mid-year.
3. ADJOURNMENT
There being no further business to discuss, the Workshop adjourned at
5: 55 p.m.
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Council Workshop
August 20, 2012
Minutes submitted by:
Lisa Bloomer, CMC
Attest: APPROVED:
City of Edgewater, Florida
Bonnie Wenzel, City Clerk Michael L. Thomas, Mayor
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Council Workshop
August 20, 2012
Proposed Budget Workshop
August 20, 2012
General Fund
Fund Reserves
General Fund Reserves
-Charter 16.38% $2,000,000 (Goal is 17 %)
General Fund Unassigned / Designated
-Designated City Hall
•$400,000
2012 Property Tax on a Residential
Home in Edgewater
W�Ilvv. vW-u
City of Edgewater (1)
2012 TAX BILL
Other
SE Volusia Hospital District
$ 77.12
10.0%
$780.04
Taxes
St. Johns River Water Management District
0.79
.10%
2007 - $1,084.78
$85.87
Florida Inland Navigation District
0.82
.11%
Difference
11%
East Volusia Mosquito Control
4.94
.63%
($304.74)
Port Authority
2.21
.28%
This graphic displays what a homeowner pays in ad valorem taxes on a homesteaded property in the
City of Edgewater with an assessed value of $63,992 less a $50,000 Homestead Exemption. Taxable Value
of $25,000
(1) Operating Millage of $6.50 and $0.06120 for Voted Debt Service Millage
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
City of Edgewater W Ad Valorem
®General Fund Budget
Tax Analysis
2013 - 6.50 2012 - 6.47 2011- 6.59 2010 - 6.36 2009 - 5.90 2008 - 5.20 2007 - 5.70 2006 - 6.45 2005 - 6.45 2004 - 6.95 2003 - 6.95
4
General Fund Revenue
Breakdown FY2013
Prior Year Appropriations 12%
st Allocation 7%
Debt Proceeds 2%
Licenses & Permits 1%
Miscellaneous 1%
Fines & Forfeitures 1%
Intergovernmental) %--�- °-
Charges for Service 2%
Taxes 30%
Sales and Use 43%
General Fund Expenditures
Breakdown FY2013
Non - Departmental City Council City Clerk
15% 1% °
Community Development
Finance 4%
5% Personnel
�2%
City Manager
Beautification 2%
2%
Leisure Services
10%
Streets
3%
Animal Control
1%
Fire / Code
25% -- _Economic
City Attorney Development
1% 1%
Changes in Revenue
FY2013
• State Share increased $ 10,252
• County EMS decreased $ 160,000
• Ad Valorem increased $78,674 at $6.50
• FP&,L Fees /Tax decreased by $35,000
• Use of unassigned reserves - $ 1,472,129
➢ F.I.N.D. - X347,129
➢ Budget Stabilization - $850,000
➢ US 1 Median Improvements - $ 175,000
➢ Road Resurfacing $ 100,000
Changes in Expenditures
FY2013
• Compensation - Step Plan plus 2%
• Health insurance and other benefits 3.8% Increase
• City Pension Contributions increased $825,544
• General -
• Police -
• Fire -
$222,535
$490,967
$112,042
Special Revenue
Fine & F
$3
Special Revenue Funds
Revenue Breakdown
Donations FY2013
$5,000 Grants
$5,000
Impact Fees
$33,000
Prior Year Appropriations
$599,250
Special Revenue Funds
Expenditure Breakdown
FY2013
Police
$57,500
Leisure Services
$130,000
Current Year Unreserved Scholarships
$452,750 $5,000
Capital Projects
Fund
Capital Projects Fund
Revenue Breakdown
FY2013
General Fund Transfer
$438,994
CDBG
$74,939
Recreation Impact Fees
$130,000
Capital Projects Fund
Expenditure Breakdown
FY2013
US 1 Median Enhancements
$175,000
Citywide Sidewalk Infill
$41,300
Hawks Park Walkway Lighting
$20,000
Street Resurfacing
$202,694
Hawks Park Improvements Hawks Park Restroom &
$74,939 Concession
$110,000
Rotary Park Redesign
$20,000
Enterprise
Funds
Enterprise Funds
Revenue Breakdown
FY2013
Prior Year Appropriations
$2,815,666
Transfer In
$1,348,427
Charges for Service
$12,233,420
Debt Proceeds
$6,347,283
Enterprise Funds
Expenditure Breakdown
FY2013
Stormwater Capital
$775,500 Stormwater
$1,655,030
Refuse
$3,012,390
Public Works Complex
$958,853
Water & Sewer
$8,207,400
'-.— W &S Rate Stabilization
W &S R &R 562,789
$7,339,776 Water Development
$433,200
Sewer Development
$299,858
Internal Service
Funds
Internal Service Funds
Expenditure Breakdown
FY2013
Workers Compensation MIS
$300,000 $381,198
Fleet
$830,803
Employee Group
Insurance Loss Fund
$2,173,245 $382,506
Citywide
Capital Outlay
Citywide Capital Outlay
DESCRIPTION
Bushhog Mower (2)
$
6,400
112 Ton Pickup Truck
$
17,800
Police Interceptors (2)
$
63,961
CID Vehicle
$
23,476
Menard Park Pavilion Roof Replacement
$
7,000
John Deere Gator (3)
$
18,798
John Deere Mower 6ft Cut
$
23,000
Replacement Phone System
$
5,800
1/2 Ton Truck
$
17,800
3/4 Ton Truck (2)
$
41,324
General Fund $ 225,359
Citywide Capital Outlay
DESCRIPTION
Admin Building Underpinning
$
15,000
PLC 5 Elimination
$
15,000
Meters for Wells 10 -15
$
9,000
Lift Station Replacement Pumps
$
40,000
Vac Truck Nozzle Replacement
$
4,000
Service Truck Crane
$
15,950
Fence for the front of the landfill
$
15,000
Rear Loader Refuse Truck
$
131,620
Equipment Trailer
$
21,060
4 x 4 Backhoe
$
88,770
Enterprise Funds $ 355,400
Laserfiche Server $ 24,000
Network Server (2) $ 9,000
Rotary 2 post heavy duty lift $ 16,403
Internal Service Funds $ 49,403
Citywide
CIP
Street Resurfacing
*Sea Hawk Court
-Finch Drive
-Rhode Island St.
-Riverside 442 to US 1
-Monroe Ave
-Ocean Ave - RR to Flagler
-Ocean Ave - West
-Manholes, Valves & Contingency
Total
X31,192
$ 7,278
$23,538
X64,747
$24,558
$ 7,370
X35,008
9 003
$202,694
General Construction Projects
-Road Resurfacing
$202,694
-Hawks Park Restroom /Concession $110,000
-Hawks Park Improvements
-Hawks Park Walkway Lighting
-Sidewalk Infill
-Rotary Park Redesign
-US 1 Median Improvements
Total
$ 7
74,939
$201000
$1755000
$643,933
Water 8a Sewer R &R
•WWTP Renewal 8v Replacement Project
•WWTP Inspection Services
•WTP Lime Silo Design
•WTP Polymer Station Replacement
•WTP Roof Replacement
•WTP Paint Chemical Feed Room
•WWC Lift Station 1 Rehab
$6,347,283
$ 431,600
$ 20,000
$ 30,000
$
000
25X0
$
100, 000
$
175,000
-Reclaimed Water Improvements $ 210,893
Total $7,339,776
Stor water Capital
•G2 -07 Hart Ave $4001500
•G2 -03 Pearl St. Pipe Crossing $ 175,000
•E2 -02 19th St. Pipe Crossing $200,000
Total $775,500
Future Land Acquisition
-Public Works
-Site has not been selected
-Money set aside for future purchase
-Funded by
-Refuse
•Stormwater
-City Hall
-Site has not been selected
-Money set aside for future purchase
-Funded by General Fund
$958,853
$400,000
Citywide Debt
Voter Referendum
Animal Shelter
FY2013
• Voter Referendum - Required Millage $0.0612
• Debt Service of $34,419
Citywide Debt Reduction
General Fund
• 2005 - $%857,233
• 2006 - $8,883,985
• 2007 - $776187910
• 2008 - X6,070,152
• 2009 - $4,649,000
• 2010 - $3,141,380
• 2011 - $21563,625
• 2012 - $ 1,925,066
Enterprise Funds Reduction
• $37,001,425
• $34,625,837 • $3,348,836
• $31,720,482 • $47170,430
• $2878417268 • $4,427,972
• $251958,775 • $4,303,645
• $23,796,360 • $3,670,035
• $21,837,783 • $2,536,332
• $ 19,122,471 • $3,353,871
Total Reduction
$25,811,121
Issuance of Debt for PY2013
•General Fund - $187,361
- Financed New Vehicles
• Water /Sewer - $6,347,283
- Renewal 8, Replacement WWTP