Loading...
07-21-2014 - Budget Workshop CITY COUNCIL OF EDGEWATER Budget Workshop July 21, 2014 4 : 00 P.M. COUNCIL CHAMBERS MINUTES Present Michael Thomas Christine Power Gigi Bennington Mike Ignasiak Gene Emter Tracey Barlow Bonnie Wenzel Absent Aaron Wolfe 2 . Preliminary Budget Discussion. City Manager Barlow discussed the purpose of the Budget Workshop; providing preliminary budget information for when Council sets the maximum millage rate for FY 2014-2015 budget at the next Regular Council meeting; Edgewater having the strongest increase in "just" property value in the County, the budget being based on the taxable value; homestead and other exemptions affecting the overall taxable value; last year' s annexations being just short of $2 million dollars; new construction increase of 3.3 million dollars; and an upswing in residential and commercial development. Regretfully there was a reduction in the communication tax and fuel tax and increases in employee salary and benefit costs . City Manager Barlow stated that the focus of the budget meeting would be primarily on the General Fund. Finance Director McKinney made a staff presentation on the FY 20142015 budget. During the presentation the Council and staff discussed; an overview of the budget; a proposed 3% salary and benefits raise; that he is still working with carriers on how much the City' s increase in group health costs will be; the total salary and benefits increase will be $643, 692 dollars; major reductions in the General Fund (GF) ; decreases in revenue; increases in the water rates of 2 .5% and the sewer rate of 6.50; no increases are projected in the refuse department or stormwater department; 444 and 449 funds being discussed at the August workshop; and reviewed the Cities employee count over the last 10 years . Also discussed was the Council setting the maximum millage rate as required by Florida Statute 200 .065; putting the maximum millage rate in the trim notice the appraiser will be sending out in the August timeframe; reasons for setting the maximum millage rate; MIS and internal service funds; the general fund and revenue calculations both being very broad in nature; maintaining the same Payment in Lieu of Franchise Fees (PILOFF) rate; 1 Council Regular Meeting July 21, 2014 reviewed and discussed some of the various general fund (GF) revenues and expenditures . Mr. McKinney also reviewed capital outlay items for the upcoming year, some of the items relating to the general fund debt of $1, 653, 844 dollars, and stated that Edgewater has a very low GF debt as compared to other cities; GF reserves, as of September 30, 2014 the City of Edgewater having an estimated $2, 045, 877 dollars in the Charter reserve; a designated City Hall reserve of $600, 000 dollars; designating $100, 000 dollars in the budget to go towards the replacement of City Hall; and the City being able to meet the Charter reserve requirement of 15% even through the recession. The Council and staff discussed the City' s Special Revenue fund and General Construction fund; the purposes of both funds; areas that revenues are derived from for each fund; some of the expenditures and projects for each of the funds; the millage rate needed for each fund; a projected total millage rate of 6 . 6340, which is bare bones; and the status of some of the projects . The Council and staff discussed the Enterprise Fund (EF) ; the difference between the EF and the GF; areas that revenues are derived from for the EF; transfer of funds from one fund to another; development fees; reviewed a breakdown of EF charges for service; expenditures; debt service total amounts; the status of various funds that are under the Enterprise Fund; and reasons for the City to have a consultant conduct rate review in the near future . The Council and staff also discussed the Internal Service Fund (ISF) ; what funds fall under the ISF; the funds being kept separate because each fund serves a different purpose; and reviewed some of the projects that are scheduled to be funded by the ISF. Mr. McKinney concluded his presentation stating that the staff' s suggested tentative millage rate is 6.51% for operating on a taxable value of $653, 347, 511 dollars; a voter debt service millage of . 053% which is required to meet the annual debt service; he provided an overview of the total budget figures that comprise the City' s 2014-2015 budget of $36, 114, 566 dollars; stated that the budget document is balanced across all funds; and discussed the importance at the Council meeting of determining the maximum millage rate to be set for the "Trim" note . At the conclusion of the presentation the Council and staff discussed details of some line item expenditures, such as; where fire, police and safety overtime is allocated in the budget; Edgewater' s economic development successes; the Economic Development Board' s (EDB) funding request to fund the Team Volusia Economic Development Committee (TVEDC) membership dues of $25, 000 dollars and what TVEDC has done for Edgewater; providing $25, 000 funding to the EDB to be used only with Council approval; not throwing away resident' s money; budgeting for the South East Volusia Chambers membership dues of $625; where in the budget year two of the Retail Strategies is located; and allocating funds for a a part time assistant to the Economic Development Manager.After discussion, the Council concurred to add funds to the budget for a part time Economic Development assistant. City Manager Barlow discussed the projected 3% increase to employee salary; this being the last year for the five (5) year general employee step plan and City salaries now being competitive in the community; around mid- 2 Council Regular Meeting July 21, 2014 year budget time doing a salary study for Directors and Deputy Directors to see how far off the mark their salaries are, which is needed to attract replacements and retain current employees; and the $320, 000 dollar matching funds needed for Edgewater' s portion of the partnership with Volusia County for the Park Avenue & Mission Road intersection project. Mayor Thomas asked about the old restoration plan permit and City Manager Barlow replied that the current portfolio is owned by a group of investors out of New York who were recently down for a meeting, they also hired a planning organization, Fletcher out of Ponte Vedra, Florida to help guide them through the process; discussed heir need to get one (1) more permit called the Army Corps 404 permit; one EPA individual voicing some concerns; the group having a meeting scheduled with the Army Corps of Engineers on August 19, 2014 in Melbourne, Florida; and if all goes well with that meeting they plan on marking it and trying to get a developer in to start doing some development. Mayor Thomas discussed some of the current, and possible future economic development in the area. Councilman Emter asked if the right of way has been agreed to by both Deering Park and Reflections and City Manager Barlow replied that Deering Park can get to the location and do improvements without having to negotiate the right of way; the Deering Park Crew and restoration crew have had discussions about right of way; no agreement has been established so far, but they are receptive and he has no concerns that there will be a problem. Councilman Emter discussed staff' s recommendation to set a maximum millage rate of 6 .510, which only supports an extremely tight bare bones budget; the strategy of setting Edgewater' s millage rate to the County' s; and suggested increasing the City' s savings effort by increasing the maximum millage rate to about 6. 6% instead of 6 .51 which would bring in about $58, 000 dollars to the City budget and asked how much of an increase that would mean to the average household, stating that it would behoove the Council to give the City a little more flexibility in the budget. Finance Director McKinney replied that the annual increase would be $6 .40 more than it would be at 6.51o.The Council and staff discussed the debt service amount for each household not being affected by varying the millage rate; possible millage rate increase scenarios; the importance of having a little bit of flexibility in the budget; and setting the maximum millage rate a little high to cover any changes that may occur between now and September' s Public Hearing which will provide Council the option to adjust the final adopted millage rate. Ciy Manager Barlow asked the Council at the next Council meeting, during their motion to set the maximum millage rate to identify where in the budget they want the increase or decrease in proceeds to be applied. 3. ADJOURN. 3 Council Regular Meeting July 21, 2014 Minutes submitted by: Mitch Honaker Deputy City Clerk 4 Council Regular Meeting July 21, 2014