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07-15-1992 - Budget Workshop ~ ...... . ...." CITY COUNCIL OF EDGEWATER BUDGET WORKSHOP July 15, 1992 Minutes CALL TO ORDER Vice Mayor Louise Martin called the Workshop of the Council to order at 4:00 p.m.in the Community Center for the purpose of reviewing the proposed fiscal year 1992-1993 Budget. ROLL CALL Mayor Tanya Wessler Councilman Kirk Jones Councilperson Louise Martin Councilperson NoraJane Gillespie Councilman Michael Hays City Manager George McMahon City Attorney Krista storey City Clerk Susan Wadsworth Police Chief Lawrence Schumaker Excused(arrived later) Present Present Present Present Present Present Present Present City Manager McMahon stated he would like the Council to adopt a tentative millage rate before the conclusion of the budget meetings. The rate he is recommending is 4.6 mills, which is the current tax millage rate. This represents a 1.9 percent increase over the rollback rate. The budget that we have this year is one of the most austere budgets the City has ever had. He explained the difficulties he had in preparing this budget to reach the necessary objectives of providing services to the City. He stated this is a very conservative budget. He complimented Fred Munoz for the many hours he has put in on this and the fine job he has done. Mr. McMahon pointed out that construction has a major impact on any City budget, and the building trend is currently down. He also commended the City for taking the steps they did regarding the present infrastructure. If this had not been done, we would probably be faced with a moratorium on future growth. The new utility improvements will allow for such future growth. He spoke of the intent to improve the quality of life to the community and explained a new quality management plan will be introduced in the very near future. Mr. McMahon explained that the taxes collected by the City next year will not be enough to support one aspect of the City's operation. He went over some of the personnel reductions, adding that he does not like lay-offs, however, any vacant positions will be looked at very carefully before they are refilled. He went over some of the particulars involved in the management/personnel plan which will be presented next week. Water and Sewer has had an increase in the budget because of the debt service which has to be included. Stormwater Fund is decreased but this should not be misleading as a direct reduction of expenditures, its a deferment of the G2 Project. He can not recommend this project at this time; he will not recommend to proceed with a project unless we can afford to spend the money. To clear up the misunderstanding of the $3.00 Stormwater service fee, he explained this is primarily a maintenance fee. This money simply will not support capital improvements. The equipment overview will include replacement of a Refuse truck. He stated enterprise funds should operate technically and profitably as a business, the taxpayers benefit from the profit because that becomes your retained earnings. This would be how equipment like this can be purchased. The equipment included in the General Fund budget are an enclosure for a Fire truck, computer replacement in the Finance Department, and three Police vehicles. Mr. McMahon corrected an error regarding the debt service reported; along with the balance on the twenty-six acres there is a lease- purchase for a fire vehicle. '-' 'W1f Mr. McMahon requested Council to begin with a department other than their own and go over it when the Mayor is in attendance. Special Road Maintenance (DOT) City Manager McMahon pointed out the city is not receiving a fair share of reimbursement from the State, however, we are getting a much better maintained right-of-way by having a city crew take care of' it. This is of benefit to the community. Jack Corder, Parks & Recreation Director, answered questions regarding this budget. He explained the need for the budgeted mowers, operating supplies, repairs (not only due to wear and tear, but also due to vandalism). Special Recreation Facilities Mr. Corder continued answering for the budgeted figures in this area. The summer recreation program was discussed; it was pointed out this being the first year for such a program, there are not definite figures at this time. There was discussion at this time about Library maintenance and repairs. Parks & Recreation Mr. Corder explained the items included in the figure budgeted for Machinery and Equipment. He went over the figures for leasing the storage space and some equipment rental. He justified the overtime expenses due to all the special events. He also discussed the number of full time, part time and seasonal employees in his department and their responsibilities. Public Works Street City Manager McMahon pointed out this overall budget is down 4.47%. There is no equipment added. Carl Overstreet, Director of Public Works, explained the items covered under operating supplies, other contractual services, and repairs and maintenance. He answered questions regarding the need and condition of all six garbage trucks. He went over the work routine. councilperson Gillespie made known her wishes to do without purchasing another garbage truck this year, and maybe have more overtime. Mr. Overstreet explained that purchase does not affect the General Fund, where overtime does. Refuse There was more discussion regarding the Refuse trucks. Mayor Wessler arrived at this time and the Council brought her up to date on the discussion. Mr. Overstreet explained the work that is going to be underway regarding the transfer station and its operation. Stormwater Mr. Overstreet pointed out that all culverts are not Stormwater. There is no machinery added to this budget. Maintenance Mr. Overstreet justified the three personnel in this department. He pointed out one of the responsibilities of this crew is to maintain the bus shelters around the City. Mr. Overstreet answered some questions regarding the street signs. -2- Council Budget Workshop July 15, 1992 ..... ""'" At this time there was a five minute recess. council Mayor Wessler asked everyone to look at the separate package of all the various donations that are given. city Manager McMahon stated he is basically asking council to maintain the level of funding for the organizations they have funded in the past. Fred Munoz, Finance Director, went over the items included in this section. Councilman Hays made a statement regarding the Volusia County Business Development, stressing the importance to support our immediate community first. Mr. Joe Martin spoke to the Council as a member of the Volusia County Business Development corporation, explaining the activities of this corporation and pointing out the need for the donation. Councilman Hays stated his appreciation for Mr. Martin's position, however, restated his opinion that there are a lot of local needs we need to address. Councilperson Martin agreed, suggesting we cut our donation in half, adding she doesn't feel we have gotten our money's worth as far as things being done for the City of Edgewater. Mayor Wessler stated she is also a member of the board. She asked rather than cutting this in half, we could give what we gave the previous year. There was further discussion. Councilman Hays moved to cut this donation entirely. Council- person Gillespie seconded the motion. Councilman Jones pointed out we need to have this corporation working for us. There was further discussion among the Council members and Mr. Martin. Councilman Hays amended his motion to donate $1500.00. Council- person Gillespie amended her second. Motion CARRIED 3-2, Councilman Jones and Mayor Wessler voting NO. Mayor Wessler questioned all the donations made to New Smyrna Beach High School. There was discussion with the Police Chief regarding the work done by our D.A.R.E. Officer and the Chemical People. It was agreed to cut out the flower purchases. Mr. Steve Dennis, Chairman of the Chamber of Commerce, answered some questions regarding the functions of the Kiwanis Club. Mayor Wessler suggested putting money aside for the Kiwanis House and when donations are needed for our community at each time we handle them. Mayor Wessler finished going down the list of items, one at a time. The request from the Volusia County Mediation System was deleted. Councilman Hays asked where the subject of phasing out our non- C.F.C. coolants would fall. It was agreed to have Mr. Overstreet research this and bring information back to Council. Councilperson Martin moved to continue this meeting tomorrow. -3- Council Budget Workshop July 15, 1992 -- .... councilperson Gillespie made a statement regarding the recycling fee. She would rather go to the sixty cents which is what we are absorbing now. Mr. Munoz explained how this is handled. Councilperson Gillespie seconded the motion. Meeting adjourned at 4:26 p.m. CITY COUNCIL OF EDGEWATER RECESSED BUDGET WORKSHOP July 16, 1992 Minutes CALL TO ORDER Mayor Wessler called the recessed budget workshop meeting to order at 2:00 p.m. in the Community Center for the purpose of reviewing the proposed fiscal year 1992-93 budget. ROLL CALL Mayor Tanya Wessler Councilman Kirk Jones Councilperson Louise Martin Councilperson NoraJane Gillespie Councilman Michael Hays City Manager George McMahon City Attorney Krista Storey City Clerk Susan Wadsworth Police Chief Lawrence Schumaker Present Excused Present Present Present Present Present Present Present Mayor Wessler called their attention to the memo distributed by City Manager McMahon and asked for comments. City Manager McMahon went over the amendment he has made due to further information that he has become aware of. He added his commitment to the Council and the community is that he takes the risk of making this request because he feels this is accomplishable. He explained his reorganizational plans and asked Council to accept his proposal. Councilperson Gillespie expressed her pleasure with this proposal. Councilperson Martin gave her vote of confidence in Mr. McMahon's plan. Councilman Hays added his support and stated he understands that this might be a more productive area under his proposed plan. Councilperson Martin moved that they concur with Mr. McMahon's recommendation of this reorganization and having the Refuse Supervisor report directly to the city Manager. Councilperson Gillespie seconded the motion. Motion CARRIED 3-0. There was a question, since at this time the Mayor had an emergency and left the meeting, Councilperson Martin is presiding, should she make the motion? Councilperson Gillespie moved to accept the memo presented to us dated July 15, 1992 by City Manager George McMahon with the only change being from fifty cents to sixty cents on page three. Councilman Hays seconded the motion. Motion CARRIED 3-0. Mr. McMahon briefly commented on the agenda. He asked Council to revisit the distribution of contributions to charitable organizations. He would like to clearly understand exactly what the Council intends. Fred Munoz, Finance Director, explained there is $6,594. in limbo at the present time. -4- Council Budget Workshop July 16, 1992 "- ...."" Councilperson Gillespie moved to give $1200. to the Kiwanis Club for the Kiwanis House to go towards their first year's rent. Mr. McMahon reminded Council what action was taken the day before in this area. There was discussion about the funds for the Chemical People. Mr. McMahon informed the Council that the City Attorney and Mr. Karet have to leave shortly. He suggested they go to their budgets at this time and come back to the discussion on the Council's budget. Planninq Mr. Karet, Director of Community Development, stated that it is indicated that we are going to work on quality, however, overtime in his department has been reduced 16%, professional services has been reduced 48%, operating costs has been reduced 22% and capital outlay has been reduced 43%. Mr. Karet answered various questions regarding his budget. He explained the promotional activities includes the funding that is associated with the Industrial Development Board. Mayor Wessler returned at this time. Mr. Karet explained the $2500 under Building is anticipated for some expansion that may take place if the Police move some of their personnel from a section of the complex next to their offices. Mr. McMahon briefly spoke on this project, which will depend on the progress of the new building needed by the Police Department for their evidence. There was more discussion among the Council members, Mr. Karet, Chief Schumaker and Mr. McMahon regarding this project. Chief Schumaker emphasized the importance of the protection of evidence in Police possession. Leqal Counsel city Attorney Storey answered questions regarding her budget figures. She went over the subscriptions that she has eliminated and the ones she now receives. city Manaqer City Manager McMahon answered questions regarding his budget figures. Finance Director, Fred Munoz, explained the personnel costs. Councilperson Gillespie stated since Mr. McMahon has not built in a raise for himself, she moved to give him a 1 1/2% raise, plus cost of living. This would not be effective until the one year but it should be an adjustment to the budget. Councilman Hays determined this to be a dollar amount increase in the salaries and wages for budget purpose. City Attorney Storey explained the contract language referring to her and the City Manager, as well as the City Clerk. They have not included any increases for themselves in their budgets because it would not be appropriate, however, the Council should address this during budget discussion. Mr. Munoz explained that no salary increases have been included in these figures. He has used a percentage adjustment but due to negotiations this can not be discussed, it is adequate to allow for this proposed increase. Councilperson Gillespie amended her motion to include the City Attorney. Councilman Hays seconded the amendment. Motion CARRIED 3-1. Mayor Wessler voted No. -5- Council Budget Workshop July 16, 1992 ..... '*ttI city Clerk city Attorney storey advised that based on the City Charter, the city Manager, city Attorney and City Clerk are your administrative officials and they should be treated similarly. City Clerk Wadsworth answered several questions regarding her budget figures. Some of the category increases is due to the newsletter, which is now sent out every other month. Councilman Hays moved to increase the City Clerk's salary 1 1/2 percent, plus COLA. Councilperson Gillespie seconded the motion. Motion CARRIED 3-1. Mayor Wessler voted No. .-y. Finance Mr. Munoz went over the increases in his budget figures. Enqineerinq Mr. Munoz answered questions from the Mayor regarding the salary figure in this department. At this time there was a five minute recess so that Mr. Munoz could get the detail information on this. Reconvene - Mr. Munoz explained there are 53 weeks appropriated for in the salary categories, so they will all be a little more. He continued with the Engineering, specifically, explaining the figures. Mr. McMahon gave input regarding the seminars that have been budgeted for. He also explained a review is done before the seminars are approved, and the money does not necessarily have to be spent. Arbitrary changes will not be allowed just to use the money somewhere else, if it is not spent where it is allocated. Other Governmental Mr. Munoz explained the percentages allocated in this department for salary increases. Mr. McMahon explained the majority of the funds appropriated are for the non-mangement raises, further information will be received with the Hammack Study. Mr. Munoz went over the other category figures. There was discussion regarding the costs involved with the computer system. We have no control over these increases. Fire and Rescue Lieutenant Carson answered questions regarding this budget. Chief Vola is out of town. He explained the call outs have increased. Councilperson Gillespie questioned the amount of money put into enclosing the cab to the lease purchase vehicles. She added this was discussed last year and she still objects to enclosing the cabs. There was more discussion regarding the condition of these vehicles and when refurbishing will be required. Mr. McMahon stated his hesitation to eliminate this budget item is because of the NFPA standards and DOT standards. He added, if we do not do this and we have an accident, one thing that will enter into the consideration of liability will be whether or not we meet standards. Councilman Hays initiated discussion regarding the enclosure of both cabs; if it is needed for one, it should be needed for both. It was agreed to have Mr. McMahon review and try to find the money to budget the enclosures for both vehicles. At this time there was a short recess. Reconvene -6- Council Budget Workshop July 16, 1992 '- """ Police Mr. Munoz went over the salary categories and the retirement expenses. Chief Schumaker answered questions regarding this budget. He went over all the items in the Repairs and Maintenance, and the Books, Publications and Subscriptions categories. He explained his plans for handling the situation with his vehicles. There was discussion regarding the progress the department is making in drug related cases. The funds derived from these cases are put in a Law Enforcement Trust for use to make departmental purchases. It was determined that there is no plan for developing a new firing range for the department. Kennels for the Animal Control Division are also not being planned. Water and Wastewater Fund Water Terry Wadsworth, Director of utilities, explained the elimination of one employee position, which is currently vacant. He added he is adding an employee in the Wastewater Department in August. Mr. Wadsworth justified the increases in the appropriate categories. There was discussion regarding the Water Co-op. Mayor Wessler emphasized that cities should stay actively involved in what is going on with the co-op and let their needs be known. Mr. Wadsworth explained there are new State Licensing requirements which is the reason for the increase in the Books, Publications and Subscriptions category. Wastewater Mr. Wadsworth explained the overtime, other Current Charges, Communications Services, and Transportation categories. Mr. John Wilkinson, Ocean Avenue, spoke to the Council at this time regarding his request for relief of charges for water, sewer and refuse. Mr. McMahon explained the cost estimate for the type of relief Mr. Wilkinson is talking about is approximately $60,000. per year. This is a Council policy decision. He cautioned that in order to make a revision, all appropriate aspects need to be considered. Mr. Wilkinson reiterated his feelings regarding this and pleaded with the Council to consider his request. Council members and Mr. McMahon discussed this further with Mr. Wilkinson. It was agreed to have Mr. McMahon look into Mr. Wilkinson's request and his proposed alternative to the current rate system. Water Field operations Mr. Wadsworth explained the functions of this department. He went over the Transportation, Repairs and Maintenance, and the Improvements Other Than Buildings categories. Self-Insurance Fund Mr. Munoz explained the expenses in this budget. Mr. McMahon explained the cost savings in having this fund. -7- Council Budget Workshop July 16, 1992 '- 'wi city Council Mr. Munoz reviewed the items that were eliminated previously. The line items were reviewed. Councilperson Gillespie moved to put the savings back into the contingency fund to be used where needed. ($3,144.) Councilman Hays seconded the motion. Motion CARRIED 4-0. Councilperson Gillespie moved that the millage rate stay at 4.60. Councilperson Martin seconded the motion. Motion CARRIED 4-0. Mr. Wilkinson asked the Council what was decided about the extra Sanitation truck. Mr. McMahon answered the truck is not going to be purchased this year. The entire operation is going to be put under the City Manager and reorganization is going to take place. Councilperson Martin moved to adjourn. Councilperson Gillespie seconded the motion. Meeting adjourned 4:26 p.m. Minutes submitted by: Debbie Sigler -8- Council Budget Workshop July 16, 1992