Loading...
07-08-2002 - Budget Workshop -.. ...." CITY COUNCIL OF EDGEWATER WORKSHOP JULY 8, 2002 6:30 P.M. COMMUNITY CENTER MINUTES CALL TO ORDER Mayor Schmidt called the Workshop to order at 6:30 p.m. in the Community Center. ROLL CALL Mayor Donald Schmidt Councilman James Brown Councilman Dennis Vincenzi Councilwoman Harriet Rhodes Councilwoman Judith Lichter City Manager Kenneth Hooper Assistant to City Manager Liz McBride City Clerk Susan Wadsworth Present Present Present Present Present Present Present Present INVOCATION, PLEDGE OF ALLEGIANCE There was a silent invocation and pledge of allegiance to the Flag. MEE TING PURPOSE The purpose of the meeting was to hold a budget work session regarding the Fiscal Year 2002/2003 General Fund and Enterprise Funds. City Manager Hooper went over the Budget Schedule with Council. He then went over the reasons for there being a shortage in the budget for FY 02/03. He then commented on things they are doing to improve the budget and items that were purchased that were not in the budget for FY 01/02. City Manager Hooper commented on substantial items that have been taken out of the budget. Staff has looked and tried to do everything imaginable to avoid a tax increase, including cuts in programs. City Manager Hooper then spoke of some of the things they have done to increase the revenues. City Manager Hooper proposed a one mill increase, which he feels will be temporary. Councilwoman Rhodes commented on the reserve fund and keeping 15% to 25% in the reserve fund. That money is invested. We got a return on the reserve of 1% or 2% instead of 8%. She questioned why that affects the budget. City Manager Hooper explained what they use some of that investment for and the interest it earns go into the General Fund. They are only using the interest revenue. He further commented on the reserve fund being below 15% and their goal being to beef that up. The revenues from the State and the revenues that we have received have dropped enough so that our reserves are below the 15%. Councilwoman Lichter asked if the City guarantees that a certain amount will be put into the pension funds. She made mention of employees investing their money into the pension funds. City Manager Hooper explained it has been a combination of both. '-" ..., Councilwoman Lichter then spoke about the Fire Department going over budget. She questioned if the new Fire Station and personnel were put in the budget. City Manager Hooper spoke on items that were not budgeted. Last year the budget looked pretty healthy. Staff knew they were spending slightly more last year than came in and they were dipping into the reserve fund. When Council set the millage last year and they adopted the budget it was earlier in September and the bottom hadn't fallen out of the market. Mayor Schmidt asked what percent the reserve fund is at now. City Manager Hooper stated it is about 12% or 13% which will change very quickly. They are doing things to put cash into it. At the end of the audit year, it will be back. Councilman Vincenzi asked what the difference is in interest revenue and investment revenue that City Manager Hooper anticipated verses what he got. City Manager Hooper didn't have an answer on actual dollars. The City had expected 8%, which depends on how much you invest through the year. The investment has been low so there hasn't been much return to it. He further commented on investing a bank loan which they count on making some revenue. When the City decided to borrow the money, there was a choice to borrow it all now or borrow parts of it at a time and the assumption was if you borrowed it all and you invested it we would actually make money on that issue. We haven't made any money on that issue. The money itself is fairly restricted. When we borrowed the money, we borrowed it to replace a Fire Engine, there were some road improvements they were looking to do on the Airpark Road realignment and they looked at water & sewer. There was a brief discussion regarding the reclaimed water and once customers can be assured it works and that they will have the water they would be able to look at meters and user fees where they pay for what they use. Councilwoman Lichter asked if the recycling contract is up this year. City Manager Hooper informed her yes. Mr. Southard has talked to the City about leaving it the same if the City wouldn't go out and rebid that. Staff has looked at it but haven't come up with a conclusion to recommend to Council yet. Councilman Vincenzi feels one thing we need to do is stop spending. City Manager Hooper commented on instituting a freeze. Councilwoman Lichter asked what a 1 mill increase would cost the homeowners. City Manager Hooper stated a $100,000 house and you get a $25,000 homestead exemption, 1 mill on that would cost $75 per year. He then commented on the senior homestead exemption of an additional $25,000. Councilman Vincenzi asked about taking steps to replace the reserve. City Manager Hooper explained everything they are shutting down on expenditures now funnels into those savings going directly into the reserve. As revenue keeps coming in, taxes, user fees and if they cut off the supply or expenditure side, that revenue is going to beef up the reserve so going into next year's budget the City will have the $1.2 million. Councilwoman Lichter asked how the City did with the auction. City Manager Hooper informed her the City made about $12,000 but anticipated up to $30,000. Page -2- Council Workshop/Budget July 8, 2002 '-" ..., City Manager Hooper stated in the budget when they talk of revenues, he has taken the liberty to put the higher rates. He has increased building fees to what he thinks the market can stand as well as zoning fees. He doesn't know of any other thing other than layoffs or cut services at this point to help the budget. Councilwoman Rhodes asked how other cities can have a lower millage rate and manage to have a balanced budget and we can't. Are they doing something we aren't doing? City Manager Hooper stated they aren't doing anything we are not doing. We are a fairly small city that has a pretty nice set of benefits for our citizens, parks and medians. If you compare that to other cities our size, you will see that we have probably a better scenario. There is more cost going out per capita. The Fire Department is top rank when you look at other cities our size. Those services are better services that cost more. The cost comes down to a millage number or user fee number. He commented on there being a slippage in the user fees. User fees constantly need to be reviewed and updated. Councilman Vincenzi asked for examples of program cuts. City Manager Hooper didn't have any examples tonight. He thinks he has cut every program the Council is willing to tolerate or that the staff is willing to tell Council can be cut. They have reduced some of the Police that are out there. We have scaled back on the parks. Not that programs are cut but our maintenance system. He commented on using impact fees to buy capital. Councilwoman Lichter asked what will happen with the stormwater program. City Manager Hooper stated Council will see a request to raise stormwater fees in order to do some increases and maintenance that hasn't been able to be done. Councilwoman Lichter asked if any of these things are mandated by the State. City Manager Hooper stated not much. He further spoke of flooding issues, treatment issues and maintenance issues. There can be some mandate to it. Volusia County is going to go through the program of having to deal with stormwater and when those are said and done there will be some mandated improvements to it but to date not much of that has been implemented. Councilwoman Lichter feels a lot of our problem today stems from the past. She spoke of when Florida Shores went in a lot of things not being done that they had to play catch up with over the years. City Manager Hooper spoke of the Councils in the past, as well as this Council, spending a lot of money to do those improvements. Councilwoman Rhodes asked City Manager Hooper if the revenues include the anticipated user fees. City Manager Hooper stated primarily in the Building Department he is looking at some substantial changes. Councilwoman Rhodes stated so we are still short after that. City manager Hooper stated yes, even after taking the $400,000 out and transferring the expenditures that go with the Capital Improvements and Fire and Police and impact fees, we are still short. Page -3- Council Workshop/Budget July 8, 2002 ~ ~ Councilman Brown spoke about the 1 mill increase and the money that has been invested in infrastructure coming on to the tax rolls. He asked if they will be able to take that 1 mill off in eighteen months or is this forever. City Manager Hooper stated he doesn't think it will be forever. He thinks once they start to see the escalated values from FIND and the other properties where they put infrastructure, he thinks they will be able to roll back that number. He doesn't think it will happen in a one year deal and he thinks they will incrementally roll it back. City Manager Hooper went over the summary of the budget put together by Finance Director Michele Goins that goes from 1998 to our current proposed budget. Councilwoman Rhodes asked why they had to add fire personnel to keep up with New Smyrna and Port Orange. City Manager Hooper explained because of the Consolidated Dispatch and the 2in-20ut. There was a brief discussion regarding using volunteers. Councilwoman Rhodes asked why the legal fees were up $20,000. City Manager Hooper explained we used City Attorney Cookson more per hour than we did last year. Councilwoman Rhodes stated we are going to have to watch that. City Manager Hooper further commented on instances where City Attorney Cookson has been used. There was a brief discussion regarding not being able to eliminate all of the capital outlays. He also commented on five positions that they have put on hold for six months. Councilwoman Lichter questioned the additional senior homestead causing a 12.74% increase. She thought it would have caused a decrease. Finance Director Goins explained it was a 12.74% increase over what it was last year. Doris Hill, 112 Lincoln Road, asked about arranging to take out a loan on the FIND project and using that up as we go along. City Manager Hooper stated we have an agreement with the FIND that the City will buy the property at about $4.3 million which is spread over ten years of equal payments and we don't pay interest until year eight. We haven't closed so there is no payment due at this point. We have in the budget this year's payment and we also have selling of property that equals that first year payment. Ms. Hill stated the interest rates are very little right now. City Manager Hooper commented on borrowing $1 million to do Phase II which has a very low variable interest rate to it. None of that has been spent. Ms. Hill feels if we are so sure the FIND project is going to come together, why not borrow the money. She doesn't feel the taxpayers should have to pay all that money out. City Manager Hooper stated taxpayers aren't paying any money out on FIND. We are borrowing a loan from the State. They are giving us the money to do the improvements and we are selling the property at the same rate we are making the payments. City tax dollars never get involved in that. Ms. Hill stated one reason we are in this predicament is because of the FIND project. City Manager Hooper stated they have not spent $1 City dollar on the FIND project. Page -4- Council Workshop/Budget July 8, 2002 "-' ...." Councilwoman Rhodes expressed concern that there was no money included in the budget for road maintenance. She feels they can't do that. She thinks they have ample evidence of that by letting those roads go for so long as it was. Councilwoman Lichter feels they should have gone up ~ a mill last year. City Manager Hooper stated tonight they weren't going to make that decision. Tonight they are going to talk to him and give him direction over finding money for the road resurfacing and tell him what to do and what not to do. Councilwoman Lichter stated they have to make a decision for the City and a keep the future in mind. Councilwoman Lichter asked what percentage the 1 mill is. City Manager Hooper informed her it is about 16% or 18% over roll back. Dominic Capria, 606 Topside Circle, asked about the increase on the additional homestead for senior citizens. He asked if it is due to more senior citizens or is it due to the real estate properties going up. City Manager Hooper elaborated on being a combination of both. Councilwoman Rhodes feels if they are going to cut the budget they need to start with the Council. She feels they no longer need the shirts. She also suggested skipping the League of Cities. City Clerk Wadsworth elaborated on what has already been cut from the Council's budget. She further explained what is included in some of the line items. Councilwoman Rhodes suggested eliminating donations to charitable causes. Councilman Vincenzi asked for an itemized list regarding what the money is used for. It was the consensus of Council for City Manager Hooper to look and see what he can reduce the promotional activities line to. Councilman Vincenzi asked about travel and per diem. City Clerk explained what is included in this line item. Councilman Brown said he wouldn't be able to go to the League of Cities conference. Councilwoman Rhodes stated that isn't included in this budget. Councilman Brown stated but that is money that would be spent that doesn't need to be. City Manager Hooper stated it is pretty with but they can look at promotional. little bit there if they are willing to contributions. much bare bones to begin He thinks there is a give up the charitable Councilwoman Rhodes asked how important it is that they attend the League of Cities. City Manager Hooper feels it is pretty important. Mayor Schmidt reminded the Council of Council's past that didn't do anything and didn't go anywhere. He feels they are to the point where they are recognized and people higher up are willing to talk to Edgewater. Councilman Vincenzi feels there are items in Travel and Per Diem that they could forego such as mileage and the per diem itself. He doesn't need the per diem. Councilwoman Rhodes stated she personally needs the per diem. Councilwoman Lichter stated they could have her gas money. Page -5- Council Workshop/Budget July 8, 2002 ....... """., Mayor Schmidt asked for a detailed list so they know more what it entails. Councilman Vincenzi asked what Communications is. City Clerk Wadsworth informed him cellular phones. Councilman Vincenzi questioned the life and health insurance. City Manager Hooper explained some of the Council has life and health given by the City and some don't. Councilman Vincenzi feels that is a personal decision that everyone of them needs to look at. If you need it great, if you don't need it, they should consider not using it. City Manager Hooper agreed to review this City Manager Hooper then went over the City Manager Department budget. He pointed out to Council he cut his salary by 20%. Councilwoman Rhodes asked why. City Manager Hooper stated because across the board they are trying to cut 20% out of each department. Councilwoman Rhodes thanked him. City Manager Hooper further explained his budget. Councilman Vincenzi expressed concern with cutting City Attorney Cookson's budget with possible potential problems next year such as the boundary dispute with Oak Hill depending on what they do. He feels that could run into some money. City Manager Hooper stated when the City is sued, it reverts from City Attorney Cookson's budget to an insurance company, which takes care of lawsuits. The boundary, if they get into something with Oak Hill, there will be a choice. Do they want City Attorney Cookson or the insurance company to foot the bill? There was a brief discussion regarding the Code Enforcement Attorney. Sidney Nowell has recently left his firm so they will be coming back to Council to either go with the firm Sid is now with or hire somebody else or to use Foley & Lardner. City Manager Hooper asked Finance Director Goins-Murphy to go over her budget, which she did at this time. There was a brief discussion regarding overtime in the Finance Department. There was then a discussion regarding whether we are seeing a benefit with the longer hours. Ms. Goins-Murphy commented on compliments they have received. She hasn't heard as much response about being open earlier in the morning as she has with staying open later in the afternoon. Councilwoman Lichter asked if we are up to date on the collection of taxes. They used to get that figure. Ms. Goins-Murphy agreed to get that information from the County. It's not something they normally send to her. City Manager Hooper briefly commented on the Planning & Zoning Department budget. The fees that come into the department pay for the employees in that department as well as the Building Department. Councilwoman Rhodes questioned the salaries. City Manager Hooper informed her Lynne Plaskett is still being paid out of this budget. Chief Planner Darren Lear further explained his budget. Page -6- Council Workshop/Budget July 8, 2002 "-" ..."., Councilwoman Lichter asked the Council where they would like to see senior transportation go. Mayor Schmidt stated next Council meeting under reports. Councilwoman Lichter has some personal goals in terms of youth services and senior transportation. Mayor Schmidt suggested they discuss it under the Leisure Services portion of the agenda. City Manager Hooper commented on Police Chief Ignasiak doing an excellent job of reorganizing, restructuring and getting more on the road. Due to the motorcycle cops being added, he thinks we are covered in coming years when we annex more or have additional exposure. Mayor Schmidt asked if they had a date on the bikes yet. Chief Ignasiak stated they start training May 20th and he anticipated no problems with having them on the road beginning the first week in June. Councilman Brown asked if the Police patrolling down to Ariel Road is causing any problems. Chief Ignasiak stated they are getting very good response from the unincorporated areas. They are doing speed enforcement. He feels they are having a good impact down there. City Manager Hooper continued his presentation regarding Economic Development. He spoke about economic development along Park Avenue. The City is working with the County to do a joint planning area. He further spoke about extending water and sewer to the SR 442/1-95 interchange. City Manager Hooper went on to speak about annexation south to Ariel Road and the problems the City is having with the City of Oak Hill. Oak Hill has on their agenda a resolution asking the State to change their City boundaries to come up to Hacienda Del Rio. The State has told them no to date. They can't annex what has already been annexed. What they would do is send out legislative delegation clear direction that we have already done that and the next step is a lawsuit. Councilwoman Lichter stated on two occasions they agreed to Ariel Road. City Manager Hooper stated they have sent copies of the minutes and the County records to them. There was further discussion regarding a lawsuit. The Pre- Stressed Concrete site has made application to annex into the City. Councilwoman Lichter feels they should take in Pre- Stressed tomorrow. City Manager Hooper stated he is in the application process. Mr. Lear stated he has applied but as of right now he is not contiguous. City Manager Hooper further commented on an appeal period and Oak Hill not showing up. Councilman Vincenzi feels City Manager Hooper should do whatever needs to be done. Councilwoman Rhodes feels to even address this seriously or give it a status is just adding to the problem. Councilwoman Lichter asked if there was any action they should take. City Manager Hooper informed her no. Oak Hill is going to do something tonight. There is nothing to do until we see what they have done. There is a 30-day appeal period. Page -12- Council Workshop April 22, 2002 ~ ...., City Manager Hooper continued his presentation with supporting the west extension of SR 442. He feels they need to keep that on the MPO. Councilwoman Lichter feels Edgewater needs a feeder road to SR 415. She feels they have to be compatible and agree with the other cities where that is to go. City Manager Hooper stated that is on the MPO's unfunded 20-year plan. Councilwoman Rhodes asked if the City has gone to the other MPO's. Mayor Schmidt stated they are working as a group right now and they have the support they just need to show it. Councilwoman Lichter feels cost and environmental factors are going to be the main hindrance. City Manager Hooper went on to speak about Planning Initiatives with regard to the overlay zoning along SR 442. Councilwoman Lichter feels the entrance to Edgewater off of 1-95 needs landscaping as well as 1-95 itself. City Manager Hooper stated when SR 442 is fixed, the City becomes eligible to start to ask for those kind of dollars. Councilwoman Rhodes asked if anybody has talked to the gentleman at the Truck Center that asked for the pass through. When he asked for the pass through he said he was going to do some landscaping. City Manager Hooper stated his agreement was as the State started their landscaping he was going to add to and do his cleanup in conjunction with that. Councilwoman Rhodes asked if they can get something in writing. City Manager Hooper stated he thinks they can. City Manager Hooper spoke about updating the requirements for the subdivision and site plan design. He then spoke of transportation planning. Councilwoman Lichter stated there is really nothing from here to Deland in terms of bus service. It is difficult for some people to get to Orlando airport. She mentioned having a means of buses go certain hours to certain locations. It is particularly hard for seniors to drive to Orlando airport and leave their vehicles there. Mayor Schmidt stated there are shuttle services. Councilwoman Lichter feels this is an area that has to be looked into. She mentioned writing a letter to Votran. City Manager Hooper stated some of Councilman Vincenzi's students are working on a particular review of how Votran does some of what they are doing. He spoke about approaching Votran directly. Councilwoman Rhodes commented on only seeing very few people on the Votran buses. She can see it is not profitable for them to be here. Councilwoman Lichter suggested putting a questionnaire in the newsletter and asking who might be interested in such a service. Some times cities have their own jitny bus. Councilman Vincenzi feels part of the problem is there is no demand because there is no service. If they had the service maybe there would be more demand. He feels it is a good idea and there is a demand for it. Page -13- Council Workshop April 22, 2002 '-" ..., Councilwoman Lichter feels this is something they need to think about. She then spoke about the senior survey that was done. City Manager Hooper went on to speak about Leisure Services with regard to Hawks Park. Leisure Services Director Jack Corder commented on the ballfield construction and revising the stormwater plan. The ampitheater and the boardwalk are tied in with the ECHO grant. The are looking to hold the grant opening for the museum by the end of May. Mr. Corder further spoke about grant opportunities through ECHO, Volusia Forever and the Port Authority. Mr. Corder stated the YMCA has started the bathhouse. He spoke about additional programming through the summer for youth and seniors. Mr. Corder commented on the upgrading of City parks with regard to playground equipment. Mr. Corder stated he would need Council's input next year of where they would like him to go with beautification of the medians as well as Seasonal Decorations. Councilwoman Lichter feels they need to give some thought to a portable stage in the gym at the YMCA. City Manager Hooper spoke about the new High School and one of the things they have asked was about a need for a stage, which the City said they didn't have a need for. He feels with what Councilwoman Lichter is describing maybe they do. City Manager Hooper spoke about a letter the City got from the School Board saying as they build the new High School, is there an interest between us and New Smyrna to oversize the auditorium at our cost. Councilman Vincenzi feels it is a great idea but he has no desire to spend taxpayers money on anything to do with the high school. Councilwoman Rhodes mentioned something about having a stage in the new City Hall. City Manager Hooper spoke about the new City Hall having permanent seating and not being a community room. Mayor Schmidt stated both Elementary Schools have a stage and the new Middle School will too. Councilwoman Lichter stated she would imagine a stage at the new Middle School would be accessible to community needs. Mr. Corder passed out examples of the sign for the Hawks Park Recreational Complex. There was further discussion regarding what the sign should look like. City Manager Hooper went on to speak about board appointments. The current method is it goes back to each one of the volunteer boards. Those boards, some interview people, most don't, they all get copies of the application. They send a name that has been appearing on the Council's Consent Agenda. He asked for Council's input regarding how they would like to do boards. Page -14- Council Workshop April 22, 2002 ,.., ""'" City Manager Hooper stated he likes the idea that the appointments come from the Council and would like to see them get back into doing more of that. He almost mentioned two year term limits and rotating in and out. There are some members that have been there a long time and he feels that is part of what needs to rotate. Councilwoman Rhodes suggested making a policy. Councilwoman Lichter doesn't feel it should be on the Consent Agenda. She feels it should go back to choosing by Districts. She feels it is embarrassing to pull an appointment off of the Consent Agenda to discuss. She feels there are certain crucial boards that she thinks have to do with legality such as Code Enforcement and Planning and Zoning Board. City Manager Hooper recommended rotating. Every board has a rotation list and when it is each Councilmember's turn to appoint, they pick period. There is no recommendation that would come to the Council. They would pick whoever they wanted to and by general consensus the rest of the Council votes to support the pick of whoever's turn it is rotating around. He then mentioned limiting terms. Councilwoman Lichter feels it behooves them to contact some of these people and talk to them. Mayor Schmidt spoke about his appointment of Donna Martin to the MPO Bicycle Pedestrian Advisory Board. Councilman Vincenzi feels they need to make sure people rotate because people apply and get discouraged because they aren't appointed. City Manager Hooper explained they can reduce what they are talking of and have it a policy that Council will vote on at the next meeting that says they will do individual appointments strictly. If they want term limits, it could be two terms of whatever that board is. He advised Council to talk to the staff that supports the boards. He feels the staff would be very eager to give Council support. ADJOURNMENT There being no further business to discuss, Mayor Schmidt adjourned the meeting. The meeting adjourned at 9:10 p.m. Minutes submitted by: Lisa Bloomer Page -15- Council Workshop April 22, 2002 ".... ...", CITY COUNCIL OF EDGEW A TER WORK SESSION APRIL 22, 2002 6:30 p.m. COMMUNITY CENTER GOAL SETTING AGENDA A. ParkTowne Industrial Center DesignlPermitting Activity 1. Property closing 2. Completion of Phase I construction 3. Completion of design/permitting Phase II 4. Construction contract for Phase II Development Activity 1. Create CRA 2. Appoint CRA Board 3. Develop owner/association restrictions and covenants 4. Lots sales 5. Building construction B. City Hall Replacement 1. Site selection 2. Property acquisition 3. Site design 4. Funding method / 2003 budget - setup account 5. Construction C. Revenue Enhancement 1. Update water, sewer, refuse rates 2. Expand user fees - leisure services 3. Development fees 4. Occupational license fees 5. Public safety fees 6. Millage rate D. Staffing Requirements 1. Fire Department - 3 people/truck, 6 people/shift, 2 in-2 out 2. Refuse - expand staffing or contract for new areas 3. Stormwater - maintenance staff or contracts 4. Code Enforcement 5. Litter Control 6. Parks & Recreation - more staffing or contracts 7. Building Inspector F:\meetingnotices\workshop042202 ~ ....... ..." City Council Workshop Agenda April 22, 2002 Page 2 E. Economic Development 1. Implement ParkTowne Center 2. Expand industrial growth west along Park Avenue 3. Extend water/sewer to SR 442/I-95 interchange 4. CRA implementation 5. Annexation south to Aerial Road 6. Support west extension of SR 442 F. Planning Initiatives 1. Corridor (SR 442) overlay ordinance includes: setbacks, landscaping, architectural standards 2. Subdivision, site plan design standards to be updated 3. Transportation planning - SR 442 west to SR 415, Airport Road west ofI-95, Park Avenue G. Leisure Services 1. Expansion of Hawks Park - ballfields, amphitheater, park acres, boardwalks, museum 2. Grant opportunities: ECHO, Volusia Forever, Port Authority 3. GymnasiumlYMCA: pool and bathhouse, childcare, youth programs, activities 4. Upgrade existing City parks 5. Christmas decorations 6. Beautification Pursuant to Chapter 286, FS., if an individual decides to appeal any decision made with respect to any matter considered at a meeting or hearing, that individual will need a record of the proceedings and will need to insure that a verbatim record of the proceedings is made. In accordance with the Americans with Disabilities Act, persons needing assistance to participate in any of these proceedings should contact City Clerk Susan Wadsworth, 386-424-2407, prior to the meeting. :eJill F:\meetingnotices\workshop042202