08-04-2014 - Budget Workshop City of Edgewater too e Ater,F de 2132
Edgewater,FL 32132
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EDGEVATE Meeting Minutes
City Council
Michael Thomas,Mayor
Christine Power,District 1
Gigi Bennington,District 2
Mike Ignasiak District 3
Gene Emter,District 4
Monday,August 4,2014 2:00 PM Council Chambers
Budget Workshop
Roll Call
Mayor Thomas called the meeting to order at 2:00 p.m. in the Council Chambers.
There was a pledge to the Flag.
Present: 5- Mayor Michael Thomas,Councilwoman Christine Power,Councilwoman Gigi
Bennington,Councilman Mike Ignasiak,and Councilman Gene Emter
A public Hearing will be held at 2:00 p.m. on August 4,2014 in Council Chambers to discuss the
new utility rates and proposed to take effect on the October 2014 Utiltiy Bill.
City Manager Tracey Barlow discussed the new digital audio system in the Council Chambers; and
stated the reason for the budget workshop is discuss the utility rates; enterprise fund portion of the
budget and to discuss some of the changes made to the general fund since the last budget workshop
on July 21, 2014.
Finance Director John McKinney stated per Florida Statute the meeting was noticed as a Public
Hearing to discuss the City's utility rates, it was publicly noticed by the City Clerk and a notice was
sent out on all of the utility bills in July, 2014.
Mr. McKinney stated that the City's water and sewer utility rates were discussed at both the June
2014 and July 2014 budget workshops; that in this year's budget, per Resolution No. 2013-R-26,
which was done based off Burton & Associates 5 year rate study, the water increase will be 2.5% a
sewer increase of 65916, and a combined increase of 5% based on the current tier system; and
although 2.5% and 65% do not equal 5916, that within the tier system the overall combined rate
increase would be 5%. He discussed benchmarking mentioned on page 21 of the rate study; that
Edgewater falls right in line with other cities that were reviewed last year; and that Edgewater is not
the highest or lowest, but is right in the middle.
He discussed the City's projected water and sewer department revenue for fiscal 2015 being
$9,547,978 dollars; some of the water and sewer department expenditures such as; capital outlays,
total debt service, debt schedule for the City; and stated that there was no new debt scheduled for
issuance in the upcoming year.
He discussed total renewal and replacement capital projects for fiscal year 2015, which are being
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funded by the prior year carry forward account, that there will be $194,925 left in the account for
future projects; and discussed the 5 year smoothing rate increase process.
Councilman Emter asked if the costs have anything to do with waste water, and Mr. McKinney stated
that the projects discussed pertain to potable water, sewer and reclaimed water.
Councilman Ignasiak asked if the costs discussed were projected or hard costs that are already set,
and Mr. McKinney replied that the costs are projected costs made by staff, and that actual costs
could not be determined until the projects were sent out for bid.
He discussed the prior year carry forward reserve fund equaling $1,622,990, which is an emergency
set aside reserve similar to the Charter Reserve fund, the amount is equal to 17% of the current year
operating budget; and that the fund is in addition to the prior year carry forward account funds.
Mr. McKinney concluded his utility rates presentation and asked if there were any questions.
Immediatley following the public hearing the City Council will hold a Budget Workshop.
Finance Director John McKinney stated that there were not any changes to the Refuse fund from the
last workshop, with the exception of bringing in the new insurance rates which the City Manager will
cover with the Council shortly; and that the rates have been factored into all of the operating funds.
He stated that there are no projected increases in the year 2015 in refuse rates, however, due to the
proposed relocation public works complex all operating funds will have to have a detailed analysis of
rates which would probably be a debt issuance to fund the project if the Council chooses to approve
it.
There has also been no substantial change to the storm water fund other than the insurance rates,
however the City has reached a maximum rate of expenditure of the storm water revenue and rates
will need to be looked at for Fiscal 2016
He discussed the storm water fund debt service schedule of $440,000; capital projects slated for
Fiscal 2015; capital projects costs projections are estimate numbers until the projects are taken out
for bid,- the projects are funded with prior year carry forward funds and from anticipated grants.
Councilman Emter asked if the projects would affect discharge into the Lagoon, and Environmental
Services Director Brenda Dewees replied that two (2) of the projects, the Monson and LaMont
projects will have a direct effect on the City's discharge into the Lagoon because they take in
treatments with the projects.
City Manager Barlow provided a general overview of the relocation of the City's Public Works
complex; discussed the three (3) phase of the plan; and how the relocation would allow for the
further expansion of the waste water treatment plant.
The Council and staff discussed the difference between the Charter General Reserve Fund and a
specific Water and Sewer Reserve Fund, and areas where the funds could be used.
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City Manager Barlow provided a recap of the General Fund stating that there are no new debt
services scheduled for next year; commended the City's ability to reduce the debt; the initial
projection of a 14.9% insurance rate increase being reduced to a final quote of around 6% which
saves the City approximately $121,000; reviewed the City's building permit data, stated that the
higher number of building permits shows a positive economic trend and picture for the future growth
of Edgewater; this year being the last year for the salary increase step plan for general employees,
and the plan is working; and conducting a study to compare Edgewater director and deputy director
salaries to their counterparts throughout the County. He stated that the City is pretty much off the
mark in as far as director and deputy director salaries go; discussed the City of Edgewater needing
to have the ability to attract and maintain quality employees; and provided an overview of a
proposed three (3) year step plan to increase director and deputy director salaries, similar to the
general employees five (5)year step plan.
The Council and staff discussed the salary study completed for general employees; the salary
increase for each employee varying anywhere from one half percent to 14%; pay bands and pay
grades; previous pay increases not being higher than the CPI ceiling; the two (2) year union
negotiation process; improvements to payroll procedures and related costs savings; being able to
attract and keep talent; outside City hires entering into positions laterally, the job market being very
competitive, and the City needing to be in the right position to compete so they do not get what is left
over; the City Manager being right on the mark with the three (3) year step plan; noticed an error in
the study of the listed City Clerk salary; how the CPI effects the step plan; each position being looked
at and individually calculated; not being able to do a total costs analysis for the second and third
costs due to unknown future changes; the first year total burden on the City, including insurance
costs and benefits of a little over $80,000; an average cumulative costs of $240,000 if costs remained
the same and were compounded each year; and the definite need for the City to implement the plan.
Also discussed was when to implement the plan; the Council being responsible to provide raises for
the Charter officers; six (6) years since the Charter officers have received a raise; the Charter
reserve being close to the projected 17%; positions that were added at mid year that are also funded
for the upcoming year; positions added to the next budget year; the maximum millage rate of 6.7%;
repaving roads if revenues are looking good at mid year; the City having almost 16% in the
emergency reserve; the inequities of some of the City director and deputy director salaries; the step
plan including the projected 3% employee raise for the upcoming year; and listing the 3% salary
increase separately from the step plan increase costs.
Mayor Thomas asked Mr. McKinney to provide the amount that the City's debt was reduced each
year from the year 2005 through 2014, and Mr. McKinney replied that he will have the report ready
at the next Council meeting.
Mr. McKinney stated that to be in compliance with Trim notice, Truth in Millage, he did file with the
Property Appraiser the City's appropriate maximum millages; for the Edgewater Operating he
submitted 670% per $1,000 dollars of taxable assessed value; for the Edgewater general obligation
2005 note he submitted the millage rate of .053% per $1,000 of taxable assessed value; everyone
should start receiving their Trim notice within the next 3 to 4 weeks which will include all taxes, and
that he only handles the Edgewater portion. Since the Council's last budget workshop the total
general fund budget has increased to $12,799,644 which is an increase of $117,929 since July 21st;
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he discussed what the budget increase includes, the adjustments down in the budget, the City
Manager three (3) year step plan being included the budget, the total budget increase only being
$7,359 not including the extra $110,000 for the reserve; and staff being very diligent in calculating
the budget.
He discussed assessed property value, stated that the average Edgewater tax payer's bill will
increase by$84.56, and that Edgewater's portion of the tax bill increase will only be$14.54.
The next tentative budget workshop is scheduled for August 18, 2014 at 5:00 p.m. and asked if the
Council wanted to hold the August workshop or just have staff adjust the briefed budget data to have
it ready for the first public hearing scheduled for September 8, 2014.
The Council and staff discussed going in at 6.7%; the Council being comfortable with the 6.7%
millage rate; Volusia County having a projected millage rate of 7.2709% which would be the same
as last year; after the first public hearing the Council can still roll back the millage rate;
Edgewater's millage rate last year being 6876%; funds spent on road repairs; understanding the
millage rate and rollback rate; exemptions and balancing the budget; annexation comparisons and
the different taxes paid between living in the City as compared to living in the County; the City
providing a better level of service; the small difference in taxes to stay in unincorporated Volusia
County; and waiving annexation application fees being a motivator for annexation into the City of
Edgewater.
The Council and staff discussed the $1.6 million in the water and sewer fund; where the fund was at
last year; undesignated funds in the water and sewer fund; taking on the waste water treatment plant
debt, the five year smoothing plan; the theme of the Council and staff setting financial plans for the
future.
After discussion, the Council concurred to cancel the August 18, 2014 budget workshop; staff to
come back on September 8, 2104 with a proposed budget using a 6.7% millage rate; and if needed
the Council could provide additional budget changes before the second and final reading.
ADJOURN
There being no further business to discuss, Mayor Thomas adjourned the meeting at 3:24 p.m.
Minutes submitted by:
Mitch Honaker, Deputy City Clerk
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