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08-31-2006 - Special Budget . ,- r .~ o Q CITY COUNCIL OF EDGEWATER SPECIAL MEETING AUGUST 31, 2006 6:30 P.M. COMMUNITY CENTER MINUTES CALL TO ORDER Mayor Thomas called the Special Meeting to order at 6:30 p.m. in the Community Center. ROLL CALL Mayor Michael Thomas Councilwoman Debra Rogers Councilman Dennis Vincenzi Councilwoman Harriet Rhodes Councilwoman Judith Lichter Interim City Manager Jon Williams City Attorney Nick Palmer 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. MEETING PURPOSE The purpose of the meeting was to discuss the Budget regarding the FY2006/2007 General Fund and Enterprise Funds and to discuss the City Manager's Contract. Mayor Thomas explained the process he would follow for the meeting. Interim City Manager Williams commented on the three budget workshops that were previously held by the Council. This brings them into the final stages of the budget process prior to the two public hearings that will occur on September 11th. They have put that in its proposed final format and brought that forward for discussion. He informed Council they would have a summary discussion of all funds and hit all the highlights. After the highlights they would like to turn it back over to Council for Page 1 of 39 Council Regular Meeting August 31, 2006 if Q () individual line item questions they may have. He informed Council the Department Heads would be helping out with the presentation. He also informed Council they would have a millage rate discussion and several discussion points throughout the process. Interim City Manager Williams went over the attached Powerpoint Presentation. There was a discussion regarding the difference in the taxable value between Edgewater and New Smyrna Beach. Councilwoman Rhodes questioned the amount of taxes being paid covering the amount it costs the City to provide services. Interim City Manager Williams informed her he had not looked at that from that perspective. Councilwoman Rhodes mentioned a few years ago the average house in this City did not pay enough in taxes to cover the services that were received. Therefore the higher income the higher property values those were picking up the slack for a majority of the City. She was wondering if that still held true. Councilwoman Lichter stated she believed we are paying taxes to the County going to the County level. She mentioned all of the entities that the taxes are distributed to. Councilwoman Lichter questioned the difference being because of the beachside and the condos in New Smyrna Beach. Councilwoman Rhodes mentioned the commercial tax base in New Smyrna taking the burden off of the residential properties. Interim City Manager Williams explained the comparison focused strictly on single-family residential homes. Interim City Manager Williams went over Page 11 in the budget "Facts about your Property Taxes" which shows the twelve different agencies that Edgewater residents pay. Only 27% of the taxes actually go to the City. Councilwoman Rogers felt if they were going to be talking about New Smyrna's budget that they should have it in front Page 2 of 39 Council Regular Meeting August 31, 2006 .. u <J of them. She mentioned Edgewater being riverfront and not oceanfront and Edgewater not having the tourists that New Smyrna has. She didn't feel it was fair to compare the two cities. Interim City Manager Williams turned the meeting over to Interim Finance Director Brett Tanner to walk the Council through the Summary of Funds. Interim Finance Director Tanner went over the General Fund with regard to the major changes to the General Fund Revenue, Expenditures and Fund Balance. Councilwoman Lichter commented on the City Charter requirement to have a fund on hand for emergencies. She mentioned not having the money because of the hurricanes in the past. She spoke of being concerned because they are not meeting the Charter requirement. Interim City Manager Williams pointed out the Charter stipulates they should have 15% to 25% on hand. They are projecting to get very close to the minimum Charter requirement of 15% by the end of FY 2006. Interim City Manager Williams then commented on contractual obligations with regard to ParkTowne and the financing with regard to the previous proposal. The point of bringing it up tonight was to get Council's direction on the interpretation of the letter from Foley & Lardner. He felt it was very clear that they have an obligation for Base Leg Drive but there warrants some further discussion at this level as it pertains to Rowan Way or Driveway A, which would affect the amount of money we need to borrow and ultimately the amount of debt service paYment that would be required. He then asked for Council direction. He further commented on the City really not having any obligation for Rowan Way. He referred to a memo regarding a meeting that was held on April 26, 2005 describing the infrastructure the City will be responsible for. He spoke of this not being incorporated into any of the contracts that were sold with regard to the property that was sold in that area. However they have documented conversations where that took place but legally it did not survive the closing. He again asked for guidance from Council. He felt at a very minimum they should try to demonstrate some good faith and offer at least what was promised in the $297,000. He felt there was potential exposure of liability in the fact that there were Page 3 of 39 Council Regular Meeting August 31, 2006 .. o o representations that were made which led the folks to purchase the property. Mayor Thomas asked if that was done in writing. City Manager Williams informed him it was in his However, the attorney has described that did not the closing or the contract in and of itself. Interim packet. survive Mayor Thomas asked how much they have to add to the budget each year for ParkTowne. Interim City Manager Williams informed him this year if they do the debt proposal they will have to add $308,000 for debt service and that will be a fifteen-year obligation. Mayor Thomas confirmed it was $308,000 a year for fifteen years. Interim City Manager Williams informed him that was correct. Councilwoman Rogers asked about it being $350,000 last time and with the lower interest rate they have already found a cost savings of $41,000. Interim City Manager Williams informed her they have talked to our financial advisor for Southwest and they believe they could get a better interest rate. We still may be able to get a little better than that. Until they go out for RFP's it is too tough to determine at this point. Mayor Thomas asked how they recoup that cost, the $308,000 a year. Interim City Manager Williams elaborated. Councilwoman Rhodes asked about the acreage the City still has. Mayor Thomas mentioned selling the ParkTowne property and recoup some of the cost to offset. Interim City Manager Williams pointed out 90 acres the City has left. He spoke about dividing it into three phases and marketing it to sell for the amount of money to get the City out of debt for the purchase of the property and to recoup some of the infrastructure costs the City has already spent. By doing that, if they are successful they can potentially free up a half a million dollars or more going into next year. They are in the process of getting it appraised if they sell the property with and without the infrastructure. He mentioned the property the City is interested in keeping for itself. Once they know what the value of the property is they can sit down and finalize the Action Plan. Councilwoman Lichter questioned if they were talking about Base Leg Drive. Interim City Manager Williams informed her they are talking about Base Leg Drive and Rowan Way. She Page 4 of 39 Council Regular Meeting August 31, 2006 o () referred to the memo from Foley & Lardner. She questioned it being in there that they have an obligation to do it. She also mentioned the incentives the City offered due to the competition in industrial parks. Interim City Manager Williams informed her yes. Base Leg Drive is one they know they are contractually obligated to do. The direction he is looking for from Council is regarding Driveway A or Rowan Way. Mayor Thomas stated he feels like the City shouldn't be in the business of selling land. He feels they should try to sell the other land to recoup our costs and not put the burden on the taxpayers to attract business. Councilwoman Lichter feels it is a matter of looking a little into the future. She spoke of New Smyrna having a deeper tax base because of industry. She feels by investing money wisely it grows. She also feels they should do what they said they were going to do. Mayor Thomas spoke of being obligated to Base Leg Drive. On Rowan Way, somebody is going to come in and develop it anyway. Why not let a developer do it, instead of the City putting the burden on the taxpayers. Interim City Manager Williams pointed out where Rowan Way is on the map. He mentioned the City already selling two parcels in that area. He spoke of this providing access to those parcels. Councilwoman Lichter asked what the promise was to the two new parcels. Interim City Manager Williams informed her the memo was attached. Councilwoman Rogers asked who the businesses were that purchased the parcels. Interim City Manager Williams informed her one of them was Gordon Boatworks. Assistant City Manager Liz McBride stated the other three are warehouses that were built to suit whoever wants to come in. Councilwoman Rogers questioned if the $3 million principal is our debt on this. Interim City Manager Williams informed her not at all. Councilwoman Rogers asked the balance of the debt. Interim City Manager Williams informed her the amount we have as of September 30, 2006 would be $3,033,940. Page 5 of 39 Council Regular Meeting August 31, 2006 (.) o Councilwoman Rogers asked what our hope would be that they would be able to sell the 90 acres for. Interim City Manager Williams estimated $60,000 an acre. They would be able to use the additional money above and beyond that to address some of the other debt that is associated within the General Fund. Councilwoman Rogers mentioned looking at the history of this project and realizing this project was not a good investment for the City. She spoke of now struggling to get out of this mess. Interim City Manager Williams explained obviously there was a different mindset of Council just a few months ago and he felt there was a totally different direction as it relates to this project. He recognized that the emphasis is still there to see the interest and growing the tax base but the City doesn't want to be in the development business and they are going to try and structure this deal to get ourselves out of that. He is going to try and structure it so they can payoff some additional debt as well. Councilwoman Rogers questioned additional debt pertaining to ParkTowne or something else. Interim City Manager Williams referred to the debt schedule and the note payable to Bank of America. The intention is to try and get enough money to pay for the property and to also payoff that debt as well. Councilwoman Rogers spoke about Edgewater Harbor and the developer not doing anything with this property yet. She feels they need to be very prudent when it comes time to decide who is going to buy the property to make sure they are going to do what they say so we have the jobs in this City and we receive the tax dollars. She wants to make sure they don't have the same situation as with Edgewater Harbor and some of the other housing projects that have not even gotten off the ground. Interim City Manager Williams felt once they advertise and receive the bids they will find that they will be bringing each proposal back to Council for input as well as bringing the sale back. They will be watching and monitoring this very closely. Page 6 of 39 Council Regular Meeting August 31, 2006 (.) <J Councilwoman Lichter mentioned Interim City Manager Williams still needing some direction and having Councilmembers with different feelings on the subject. It was very popular a few years back to try to entice industry to have a tax base for the future. Now it seems like there isn't a general consensus among the Council. Interim City Manager Williams believed with that road they would expose themselves to a lawsuit. He asked Council if they were willing to take that risk or do they want him to go back and offer the $300,000 that was communicated in writing and see if he can work out something that is palatable for all interested parties or he can lower the principal amount to about $2.3 million, which would lower the proposed debt service by about $74,000. Then they would have some excess funds. That is what he needs from Council tonight. What l~vel of risk are they willing to accept. Mayor Thomas stated he felt it was a good idea. It just didn't work out the way it was supposed to. It put the tax burden back on the citizens of Edgewater. If they roll back that half a million a year, that is close to a half a mill. Interim City Manager Williams confirmed it was close to a half a mill. Mayor Thomas stated that is what he would like to do. He feels they should let somebody else develop it and give the break back to the citizens. Councilwoman Lichter mentioned Massey being a good customer and good neighbor. She feels they do not need another lawsuit. She believed business wise, in the end, it is probably the wisest thing to put in the road and sell the rest of the land. Mayor Thomas stated he is talking about two things. He is talking about Base Leg Drive, which they are obligated to do and he is talking about Rowan Way. Councilwoman Lichter stated she was talking about Rowan Way. Mayor Thomas asked her if she wanted to do that too. Councilwoman Lichter stated they kind of agreed Massey interprets it, that they are going to do Rowan Way. Interim City Manager Williams informed her Massey isn't affiliated. Massey is associated with Base Leg Drive. He felt that was pretty much settled. Councilwoman Lichter asked Interim City Manager Williams if he felt they would get sued if they didn't do Rowan Way. Page 7 of 39 Council Regular Meeting August 31, 2006 u o Interim City Manager Williams informed her yes but that is just his opinion. Councilwoman Rogers stated but the attorney has given them advice that they are okay and that they are in the clean. When you look at the cost of road construction compared to the cost of defending the City in litigation, the road construction far exceeds the cost of litigation. Councilwoman Rhodes stated but they might have to do both. Councilwoman Rogers asked if there is a clause in the contract that says the prevailing party will not be responsible for attorney's fees. Interim City Manager Williams informed her he had not gotten that far with those particular contracts. To the best of his knowledge, there isn't anything. Councilwoman Rogers asked what it would take to take these documents to another attorney to get another opinion. They are looking at liability one-way or the other. She feels they need to get some big guns. If they said the City isn't obligated a bigger law firm may think the same way. In the interim, she wants to keep pressing forward to get everything sold. Interim City Manager Williams stated he would and asked if that meant they would leave the $308,000 in the budget or do they want him to adjust the debt service payment. Councilwoman Rogers felt they should adjust. Interim City Manager Williams confirmed it meant she was willing to take the risk. Councilwoman Rogers informed him yes, but that is just her. Mayor Thomas asked if they were talking about Rowan Way or Base Leg Drive. Interim City Manager Williams informed him Rowan Way. Councilwoman Rogers stated Base Leg Drive is a done deal as far as they understand it. Interim City Manager Williams stated Rowan Way/Driveway A, both being one in the same, is the one he feels they have a great liability or exposure in being sued. That is where they need to tell him if they are willing to take that risk. If the City is sued for performance and they win, the City will incur legal fees and still have to build the road. Page 8 of 39 Council Regular Meeting August 31, 2006 CJ (.) Councilwoman Rogers stated but the City Attorney told them that they aren't obligated. Interim City Manager Williams agreed. Councilwoman Rogers stated if they don't go with his advice, then what good is his advice. Interim City Manager Williams stated he agreed one hundred percent. Councilwoman Lichter asked Councilwoman Rogers if she wanted to make a deal with the attorney. He is giving them advice not to do the road. If his advice is wrong then you don't pay him. Mayor Thomas asked if there was anything in writing that says they are going to do Rowan Way. Interim City Manager Williams stated the only thing they could find was the memo that is attached that implies they would be willing to participate in those costs. But again, that memo did not survive closing and none of those obligations survived closing. It did not make it into the contract. Councilwoman Rhodes stated so they don't even know if prior to closing maybe they were taken off the table. She thought if that would have happened there would have been a memo to that affect as well. Interim City Manager Williams stated they probably wouldn't have closed on the property if they didn't believe there was going to be some sort of participation on the City's behalf. Councilwoman Lichter suggested maybe part of the money but not all of it. Interim City Manager Williams pointed out the memo implies the City would pay at least $297,000. Councilwoman Rhodes feels that is probably what they should live up to because that is what they were told. It seems to her, especially in business, if you tell somebody you are going to do something then you need to do it. She felt they should pay at most the $297,000 because that is what they were promised and Base Leg Drive. She felt that was the fair thing to do. Councilwoman Rhodes asked what they paid for ParkTowne. Interim City Manager Williams informed her a little over $5 million. Councilwoman Rhodes pointed out if they sell 90 acres at $60,000 per acre that is $5.4 million. She feels that isn't a lost cause until that is done. They got the money interest free for six years and that isn't up yet. Interim City Manager Williams felt it boils down to infrastructure at that point. He mentioned pricing property one way'if you are in the infrastructure business. Page 9 of 39 Council Regular Meeting August 31, 2006 u (J Another way if you are not, which he thought was the mindset they are looking at for the remaining part of this property. They would like to see a motion as it relates to Rowan Way and a vote after the discussion. Mayor Thomas entertained a motion. Councilwoman Rhodes made a motion that they do Base Leg Drive and $297,000 of Rowan Way, second by Councilwoman Lichter. The MOTION CARRIED 3 -2. Vincenzi voted NO. Councilwoman Roqers and Councilman Interim City Manager Williams stated they have already talked about the Action Plan for the remaining amount of property and as they continue to receive updates with the direction they are heading with the remaining portion of the 90 acres, they will be bringing it back to Council to keep them apprised of the events that have taken place. Interim Finance Director Tanner continued his presentation by discussing the Capital Assets/Projects proposed in the General Fund for FY2006-2007. Councilwoman Rhodes asked about Consolidated Dispatch being a Capital Asset. Interim City Manager Williams explained that represents the capital investment the City made and the on-going expenditures associated with the City's portion of that capital investment that the City makes each year. Councilwoman Lichter stated they learned at the meeting the other day that our share may go down because other cities are coming into it. Interim City Manager Williams explained every two years they look at the call volume and they adjust the City's percentage on that. They are bringing on new customers and as each new customer comes on that revenue goes in and filters through and helps offset the cost of the investing cities. The City of Ponce Inlet is participating with Fire. South Daytona is coming on-board and then you have New Smyrna, Port Orange and Edgewater that are the investing cities. Page 10 of39 Council Regular Meeting August 31, 2006 u o Interim Finance Director Tanner asked if there were any questions on the General Fund. Councilman Vincenzi asked Interim Finance Director Tanner to recap why debt service is going up 30%. He explained it was the ParkTowne improvements for $308,000 and the vehicle capital lease for $220,000. Mayor Thomas stated he wanted to make sure Interim City Manager Williams got direction on selling ParkTowne. He wasn't sure if they gave him that direction or not. He was for that. Councilwoman Rhodes stated they pretty much have to. Councilwoman Rogers mentioned getting the appraisal first. Once they get the appraisal then they use that as their basis to make the decision. Councilwoman Lichter stated that isn't relevant right now to setting the budget. Interim City Manager Williams felt he had a very clear understanding that that is the Council's intention for the remaining 90-acres. Once they get the appraisal they will be coming back to the table and identifying what they can payoff. Mayor Thomas stated which would help our future tax base. Interim Finance Director Tanner went over the Special Revenue Funds Description and the Local Law Enforcement Block Grant Funds. He then went over the Grants Fund with regard to major changes to the Revenue, Expenditures and Fund Balance. There was a brief discussion regarding the FRDAP and CDBG grants. Interim Finance Director Tanner asked if there were any questions with the Grants Fund. Councilwoman Rogers questioned why there was $150,000 that was budgeted in the 2006 budget and none for 2007. She asked if there is a plan and if they are working on something to be able to get some money from FDOT. She wanted to know if they are going to seek grant opportunities from FDOT. She mentioned there being a huge increase on the roads on what they are going to be spending there. Page 11 of39 Council Regular Meeting August 31, 2006 () o Interim City Manager Williams explained that grant is related to the landscaping improvements that were done out on SR 442 so that is a reimbursement. That doesn't relate to the expansion of roads. Councilwoman Rogers asked if there were grants they could seek to help with the cost of streets. Interim City Manager Williams stated they would look for opportunities but he wasn't aware of any grants that were available right now but again stated they would look for those opportunities. Councilwoman Rogers commented on the huge increase in the Street Fund for FY2007. Interim City Manager Williams further commented on the reason for the increase. There was a ten-minute recess at this time. The meeting recessed at 7:35 p.m. and reconvened at 7:45 p.m. Interim Finance Director Tanner continued his presentation by going over the major changes to the Special Law Enforcement Trust Fund. Mayor Thomas wanted assurance that the fund balance was a guarantee and that it couldn't go down. Interim City Manager Williams referred to the 2005 Actuals. He spoke of seized moneys that are on the way with no definitive time line when they will receive it. Mayor Thomas confirmed those funds could only go towards law enforcement. Interim City Manager Williams commented on the request that was brought before Council a few months ago to purchase radios. This fund is used for those types of expenditures. Interim Finance Director Tanner then went over the major changes to the Road Impact Fee Fund. Mayor Thomas asked if SB360 would affect this fund in any way. Interim City Manager Williams stated most likely, yes. As new development comes through the City the City has to adopt the proportionate fair share ordinance. There certainly could be some costs incurred on the City's behalf that we may have to participate in. Councilwoman Lichter asked when this could go into effect. Interim City Manager Williams informed her December 2006 Page 12 of39 Council Regular Meeting August 31, 2006 u o they have to adopt the ordinance so they will be bringing this back. There was further discussion regarding the affect this will have on the City. Councilwoman Rogers commented on the developments coming into the City and the impact fees being charged to the developers. She asked when they realize those impact fees and put them into the budget. Interim City Manager Williams informed her those are realized at the time of permitting. He spoke of monitoring this very closely and possibly having to make some adjustments during the mid- year budget review. He then spoke of development slowing down. Councilwoman Rogers mentioned Reflections not being included and the numbers increasing. She then requested as these numbers change that the Council be given a report. Councilwoman Rogers mentioned there being several developments on the table and not being able to realize those numbers until the homes have been permitted. Interim City Manager Williams agreed to provide Council with a monthly report. Councilwoman Rogers asked that the developments be listed that are still not permitted that have been approved. She then mentioned New Smyrna Beach and how ugly the North Causeway project looks for the residents and they don't have those realized revenues. Councilwoman Lichter stated she assumed Councilwoman Rogers meant approved on all levels. Councilwoman Rogers stated by the time it gets to Council for permitting it has been through the permitting agencies. Interim City Manager Williams spoke of having the capability to provide Council, by fund, a monthly report compared to budget actual numbers. Councilwoman Rogers then commented on the expenditure of ParkTowne. She asked if this included both roads. Interim City Manager Williams explained last year they were anticipating to expense some of that money for Base Leg Drive. They could take some of that fund balance and offset some of the debt service if Council so chooses. It is Council's pleasure what they want to do with that fund. Page 13 of39 Council Regular Meeting August 31, 2006 o o Council~oman Rogers felt by utilizing that that would reduce their needs and perhaps reduce the millage. Interim City Manager Williams explained if they spent half of the money that they have in there as fund balance right now, they would probably save close to $75,000. He didn't know that they could get much more out of the millage rate off of $75,000. Councilwoman Rogers pointed out the fund balance ending for 2006 as being $438,000. Interim City Manager Williams informed her that is projections. Councilwoman Rogers stated it says year-to-date actual. Interim City Manager Williams stated they have the rest of this fiscal year to go. Councilwoman Rogers asked him if he knew of the expenditures they would be spending in the next thirty days. Interim City Manager Williams informed her they aren't proposing to spend anything at all. Councilwoman Rogers stated so there is $438,000. Interim City Manager Williams stated estimated, yes. Councilwoman Rogers commented on when her and Interim City Manager Williams talked before about dollar amounts and millage difference they talked about a figure of $280,000 reducing the millage by ~ of a point. Interim City Manager Williams stated his discussion was referencing the amount of debt they would go after in the General Fund. He further pointed out how he came up with the $75,000 figure. Councilwoman Rogers asked if they needed to make a motion and vote on this. Interim City Manager Williams informed Councilwoman Rogers that would deplete the fund and there would be no money in fund balance. He wanted to make sure she was clear on that. If after this evening they would like to talk about it a little more, they could make that change coming into the first hearing. Their intention is that by September 11th they can pretty much nail down to Council with good confidence the estimated fund balance for all of the funds. Interim Finance Director Tanner then went over the major changes to the Police Impact Fee Fund. Mayor Thomas questioned this being a low number because of the amount of permits we have on hand. Interim City Manager Williams explained the revenue projection for 2007 is based off of 200 units. This year they collected more Page 14 of39 Council Regular Meeting August 31, 2006 u o than what was proposed in 2006. They will have to monitor the revenue very closely. In March, he thinks they will be back before Council with a mid-year budget update describing what they saw through the first half of the fiscal year. Interim Finance Director Tanner then went over the major changes to the Fire Impact Fee Fund. Interim City Manager Williams commented on being conservative in the past with the use of the Police and Fire Impact Fees to save that money for a future public safety facility. He was willing to entertain discussion if it was still the current mindset of Council in going forward. They can use these types of funds for the expansion of the Police and Fire Departments as it relates to capital projects as a result of new growth, not for replacement of items. Councilwoman Rogers mentioned as more developments are permitted, more money goes into this. She asked if they have any projection of that. They are going to get a lot of money into these funds and if they can take some of the money out now to help reduce the millage, she feels they need to. What is their estimated revenue going to be from these developments once they are permitted? Councilwoman Lichter stated she doesn't spend money she doesn't have personally and she doesn't count on it. Councilwoman Rogers stated she didn't say spend money. Councilwoman Lichter then mentioned some of the projects not working out, as they have seen. Councilwoman Rogers asked Interim City Manager Williams if he knew what she was talking about. Interim City Manager Williams informed her he did. Councilwoman Rogers stated she wasn't directing moving any money. They have to see what they have coming first. She doesn't want to see money sitting around and increasing their taxes when they may not need to. Councilwoman Rhodes asked if they have any police expenditures that are capital expenditures. Interim City Manager Williams stated they have identified capital expenditures in the Police Departments for replacements. If they were expanding the department, then they could tap the use of those moneys. They can't use these impact fee Page 15 of39 Council Regular Meeting August 31, 2006 Q Q moneys for replacement. However, they can try to develop a timeline identifying which stage each one of the development processes are in and see if they can accurately project. He thought they used the same kind of approach with the revenue projections in the special revenue funds as they do the General Fund. Councilwoman Rogers commented on mention being made regarding the Fire and Police funds being built up to help in the cost of construction of new buildings. . Back to trying to estimate what the future impact fund revenues will be and then they could see if they can transfer any to the General Fund to help with the millage rate. Councilwoman Rhodes informed her this couldn't be transferred to the General Fund. Councilwoman Rogers pointed out the transfer to General Fund line item. Interim City Manager Williams explained that transfer is an administration fee that was established. Mayor Thomas commented on new residents coming need for new police officers and firefighters. already down per capita now. in and the We are Interim City Manager Williams felt this was something they needed to sit down in a strategic session and define what their intentions are there. Interim City Manager Williams commented on a couple different philosophies that are out there in terms of how you assess adding police and fire personnel. Mayor Thomas asked about the national rate. Interim City Manager Williams asked Police Chief John Taves what the latest statistic was. Police Chief Taves informed him the State of Florida average is over two. Mayor Thomas asked what we were. Police Chief Taves informed him we are around 1.6. Interim City Manager Williams stated they have to look at that in comparison with other cities. Some cities use a response time approach within each individual zone and then they allocate resources based off of that. He spoke of working on trying to land on a number of allocating staff but they haven't gotten there yet. They are researching that and working towards that goal and they will bring it back to Council as part of their strategic processes. Page 16 of39 Council Regular Meeting August 31, 2006 o o Interim Finance Director Tanner continued his presentation with the major changes to the Recreation Impact Fee Fund. Mayor Thomas questioned why this is going up and the impact fees for Police are going down. Interim City Manager Williams commented on there being a wide range of dollars that are charged for each size home. They are going to have to monitor this fund as they are with the rest of them to see if their revenue projections are accurate. There was a brief discussion regarding the methodology in which the impact fees are charged being different. Mayor Thomas asked who sets the ratio. Interim City Manager Williams stated that was established by an impact fee study that was done back in 1991. Mayor Thomas stated it would be more important to him to see the Police and Fire Impact fees go up than the Recreation Impact fees. Interim City Manager Williams agreed to bring that back to Council prior to the next discussion. He agreed to double check the revenue projection and make sure they haven't made a mistake. Councilwoman Rhodes clarified there are a certain amount of impact fees each being ex-amount of dollars. They took the dollars and multiplied it by 200 as the base unit. Interim City Manager Williams explained the differences between the impact fees. Leisure Services Director Jack Corder explained the figures last year were very conservative and that is why they are seeing a 14.69% increase from the previous year on the overall projections. Interim Finance Director Tanner went over major changes to the Debt Service Fund. Interim City Manager Williams called Council's attention to the revenue projection due to it being miscued, which was an error on his behalf. That projection was made prior to the change in his capacity. It is more consistent with what they have seen in prior years. This is directly related to the number of payoffs the City received for paving assessments. Page 17 of39 Council Regular Meeting August 31, 2006 o (J Mayor Thomas asked if they had a rundown of what the City owes on them. Interim City Manager Williams commented on it being a combination of debt. There is a portion that comes from the General Fund, the Water & Sewer Fund and a portion that comes from the collection of assessments. Mayor Thomas asked Interim City Manager Williams if he knew the amount of debt the City is in. Councilwoman Rhodes stated $46,593,142.00. Interim City Manager Williams confirmed that was correct and described a bulk of the debt the City is in is related to the Water & Sewer Fund, $33.3 million. Interim City Manager Williams also informed Council that this document also flows into the Annual Comprehensive Financial Report. That document is also available on the City's website. Councilwoman Rogers stated the increase in taxable value of properties this year, if they did not have that the City would be in serious trouble based upon the 2007 proposed amount we need for debt service. She sees a 2006 budget number of $284,000 and she sees the actual went to $713,000 and the 2007 proposed is $1,155,797. Interim City Manager Williams informed her that was an error. Councilwoman Rogers asked how much of an error it was. Interim City Manager Williams informed her they are looking at about $400,000 in the revenue projections. Councilwoman Rogers stated so 2007 proposed should be around $400,000 not $1.15 million. Interim City Manager Williams informed her it should be around $900,000 total revenue. Councilwoman Rogers mentioned the 2004 and 2005 Actuals not changing that much. She then mentioned the 2006 Budget being way off when the 2006 year-to-date actual is $713,000. Interim City Manager Williams thought she was looking at the ending projection for fund balance. Councilwoman Rogers confirmed she was. Interim City Manager Williams explained the theory here is that they try to have enough fund balance for at least one year of debt service principal or debt service interest. They have debt service that will be coming due September 30th so they will see that number drop. The City has debt service that comes due twice a year. Page 18 of39 Council Regular Meeting August 31, 2006 u (.) Councilwoman Rogers commented on it being difficult for her because of the numbers constantly changing. Interi~ City Manager Williams explained they try to present to Council what has actually happened. Councilwoman Rogers wanted to meet privately with Interim City Manager Williams to help her understand this better. Interim Finance Director Tanner then went over the major changes to the Capital Projects Fund. Interim City Manager Williams explained this is the fund they have been describing since the first budget workshop that they would like to establish a policy of transferring moneys from the General Fund into this fund to help satisfy future capital needs to try to stop adding debt. This year they were successful in being able to transfer $100,000 into this fund. They are projecting to have an ending balance of $755,000. If the September 22nd meeting goes well with FIND, we will have some sand and he thought it was an expression of Council that they use those proceeds for the establishment of a reserve fund for City Hall. They would love to get to a position where they can set aside 5% of our gross revenues to establish capital project needs and funding. This is a goal of his. Interim City Manager Williams further explained if FIND approves it, next year they would go through an RFP process and start selling the dirt. Interim Finance Director Tanner then made a presentation regarding the major changes to the Water & Sewer Fund. Mayor Thomas mentioned borrowing out of the Water & Sewer Fund in the past. He and Interim City Manager Williams met and he was trying to correct that in the future. He asked if this is why this budget figure is going up. Interim City Manager Williams explained there are expenses that are incurred in the General Fund for providing services related to the Enterprise Fund. In theory, they transfer enough money out of those funds to help offset that cost. He further commented on several approaches that could be taken. They have had comments in the past that they needed to place a stronger emphasis on balancing the General Fund with the revenues from the General Fund and quit relying on transfers from the Water & Sewer or Enterprise Funds. They have placed an effort on addressing that this year. Page 19 of39 Council Regular Meeting August 31, 2006 o o Mayor Thomas confirmed that $1 million was being transferred into that fund. Interim City Manager Williams informed him that was correct. In previous years it has been $1 million. Interim City Manager Williams informed Council we are now down to $900,000. They think it should be closer to a $600,000 number. They would have to look at the impact of the Refuse Fund and the Stormwater Fund and what they should be transferring. In those funds, they aren't projecting any transfer at all this year. Mayor Thomas stated he has had several conversations with Interim City Manager Williams about this. He thinks he understands what he is trying to do. Interim City Manager Williams stated he is trying to address everyone's concerns on everyone's front. Councilwoman Rogers commented on the personnel services under the expenditures going down. She also mentioned the operating expenditures going up a lot more then the personnel services went down. She asked why personnel services went down. Director of Environmental Services Terry Wadsworth stated he didn't believe the change in personnel services amount is due to the number of personnel as much as it is the associated cost. He spoke of the retirement contributions going down drastically. He feels that is the crux of that reduction. Councilwoman Rogers compared the defined benefit plan and the defined contribution plan and stated for the retirement contribution to go down would tell her that somebody that is under the defined benefit plan has retired. She asked what made that number go down. Director of Environmental Services Wadsworth explained if they look at the assumptions that were made and what was budgeted in the 2006 budget and then look at what was budgeted for retirement this year when the new assumptions were made after the corrections after they went ahead and confronted some of the firms that are managing our individual retirement accounts it has gone down. Councilwoman Rogers asked if this is where they had a $480,000 increase. Interim City Manager Williams stated decrease. He explained last year when they made the Page 20 of 39 Council Regular Meeting August 31, 2006 o o projections they were going off the previous year's actuary that said they had a 42% contribution ratio. They had to make the projections based off of that. When they came in it dropped down to 23 1/2%. That is where they had a surplus in budgeted dollars across the board. Councilwoman Rogers then questioned why the operating expenditures were going up over $700,000 between 06 budget and 07 proposed. Mr. Wadsworth commented on the debt service for the metering system. Councilwoman Rogers then questioned what debt service had to do with operating expenses. Interim City Manager Williams commented on the effects of the increase in fuel costs and electricity costs that have gone up. He mentioned the water and wastewater plants being a larger consumer of electricity. Mr. Wadsworth referred Council to page 82 in the budget where he pointed out a decrease in retirement contributions and the increase in capital leases due to the metering system with Johnson Controls. Councilwoman Rogers asked if these are leases the Council has already approved. Interim City Manager Williams explained this lease is associated with the radio read meter project, which is a performance-based contract that is identified as a capital lease. Mr. Wadsworth then commented on what happens when they have to transfer money to the General Fund that are in excess of what their expenses are with regard to the Water & Sewer Bond lssue. Councilwoman Rogers asked when the $452,000 capital lease was approved. She questioned it being approved last year but affecting this year's budget. She then stated this is why it is very important when these items comes to them that get approved by Council that Council really looks at this when it doesn't affect the current year and it comes and bites you the next year. She mentioned this being almost half a mill difference. She feels they need to be very careful in the future when they are approving things that it isn't going to affect the next year and that they should have their budget books with them when they are approving these things. Interim City Manager Williams stated they would make a conservative effort on their part to identify debt service requirements and the effects in future years and how long the projected financing is for that. Hopefully they can get some of the things in place they would like too. They Page21of39 Council Regular Meeting August 31, 2006 o u can start shooting the He feels it is wise to cost the City has. focus away from any additional debt. try to limit the amount of fixed There was a ten-minute recess at this time. The meeting recessed at 8:35 p.m. and reconvened at 8:45 p.m. Interim Finance Director Tanner further continued his presentation by going over the major changes to the Water & Sewer Fund with regard to expenses. Interim Finance Director Tanner then went over the major changes to the expenses and revenues in the Water Development Fee Fund as well as the Capital Assets/Projects. Interim Finance Director Tanner then went over the major changes to the Sewer Development Fee Fund. Councilwoman Rogers asked if the $150,000 for the land is for the new facility down the road. Mr. Wadsworth stated that was the 17 acres they purchased for the Hacienda Water Treatment Plant Site. That is where they are going to put the storage facility. councilwoman Rogers asked if this where the animal shelter is. Mr. Wadsworth informed her it was on the same piece of property. Interim Finance Director Tanner then went over the major changes to the Renewal & Replacement Fund. Interim Finance Director Tanner then went over the major changes to the Refuse Fund with regard to revenues and expenses. Mr. Wadsworth commented on the letter from Southard's Recycling requesting consideration for some additional rates due to the increased consumer price index. This would equate to $.36 per month per household. If they wanted to give him the same as they did the sludge haulers, which was 9.6%, this would equate to $.08 per month increase. Duke Southard, Southard's Recycling, presented his history with the City and explained his request for an increase in the amount of 25% plus 20% for profit which amounts to $2.25 per household. Page 22 of 39 Council Regular Meeting August 31, 2006 CJ fJ Mayor Thomas entertained a motion. Councilman Vincenzi moved to accept Mr. Southard's request for an increase to $2.25 per household, second by Councilwoman Lichter. Councilwoman Rhodes asked Mr. Southard to make sure they pick up the trash they leave in the street. The MOTION CARRIED 5 - 0 . Interim Finance Director Tanner then went over the major changes to the Stormwater Fund revenue and expenses. Interim City Manager Williams commented on this fund needing some TLC. They are going to be bringing back a proposal based off of a rate study the city is doing right now to increase the amount of revenue that is collected with this fund. He called Council's attention to the fund balance and there being some declining net assets. He spoke of looking at cost saving measures and revenue increase. They will be bringing back a proposal to adjust the rate for this fund. He spoke of establishing a capital projects fund for the Stormater Fund. He thought they were targeting a 5% of gross revenue number for that fund. They are also going to extend that same philosophy to the Refuse Fund as well so they can try to stop the issuance of debt. Mayor Thomas asked if this includes the maintenance of the canal system in Edgewater and the personnel and equipment. Interim City Manager Williams informed him that was correct. Mayor Thomas then commented on the Gabordy Canal at 10th Street and being in conjunction with New Smyrna and volusia County on that. Mr. Wadsworth informed him we were. Mayor Thomas asked if anything has been done to correct that problem. Mr. Wadsworth informed him he thought some of that would be addressed with the 10th Street widening project, with part of that being rerouted. They have a meeting in Deland in a couple of weeks on this project to get updated on time schedules for that work to be accomplished. Councilman Vincenzi asked about interfund transfers and where they come from. Interim Finance Director Tanner commented on the interfund transfers. Mr. Wadsworth Page 23 of 39 Council Regular Meeting August 31, 2006 o o further explained the projects these transfers are being used for. Interim City Manager Williams further explained part of the decrease is a result of completing a stormwater project within ParkTowne. He also commented on contributions being made from the capital projects fund into this fund to help fund that stormwater project. They try to control all of our grants through the grant fund and try to track the transfers in and out of there. Mr. Wadsworth further commented on the ceremonial check presented by Dorothy Hukill for $80,000 for Eastern Shores. We have another $450,000 we are in the loop for that we should receive this year. We have $105,000 for the engineering stormwater master plan study coming from St. John's. He made mention of not eliminating the day-to-day operating costs even though the City is taking in a lot of money through grant funds. There was a brief discussion regarding the efforts that have been made to shave costs from the budget. He further commented on opportunities they are going to look at to help save the City money with regard to benefits that are being provided to the City employees. He spoke of concerns brought up by some of the Councilmembers with regard to some of the benefits that are being provided. They are identifying the benefits they may be able to take that don't necessarily provide a major impact on the employees such as the vacation and sick cash in. He spoke of trying to structure some sort of mutual ground that is beneficial to the City and the employees. He then mentioned there being $700,000 they could potentially target for opportunities for savings. He further commented on the closed defined benefit plan that is currently being provided to the employees. He elaborated on this being an extremely touchy subject. He stated the effect on the moral and the employees is going to take some time to figure out. They will be bringing this back to Council as they start developing solutions and answers. Mayor Thomas asked Interim City Manager Williams if he felt he explored all avenues to save the citizens of Edgewater taxpayer money. He asked if he would be open to suggestions on how to save money. Interim City Manager Williams informed him anybody is welcome to bring suggestions. He asked that anybody that does make a suggestion doesn't take offense if their suggestion isn't Page 24 of 39 Council Regular Meeting August 31, 2006 o u adopted immediately. He again expressed that he welcomes input. Mayor Thomas felt they needed to foresee some problem areas. He spoke of riding with the guys from Wastewater Collections and checking out the 48 lift stations in the City. He also mentioned seeing that part of the sewer system is terra cotta pipe, which breaks easier than PVC pipe. He feels they need to be prepared for emergencies in the future so they can still provide the citizens the services they are used to getting. Councilwoman Rogers asked about the Animal Services on Page 48. All she saw was expenditures. She questioned the Regular Salaries going from $83,200 to $112,211. Interim City Manager Williams informed her that included the two Animal Control Officers. Councilwoman Rogers asked about the Shelter and if they have a specific fund for it. Interim City Manager Williams informed her the $500,000 they are proposing to expense out of the Capital Projects Fund. They have debt service associated with the $500,000 to the tune of $33,072. He then commented on the revenue stream on Page 18 with regard to the Voter Referendum - Animal Shelter and the proposed tax the City will collect. He further commented on when they went through this process. Councilwoman Rogers commented on the memo they received from the City Attorney at the last Council Meeting with regard to the opinion on the ballot question where the Animal Shelter was approved to be built. She asked what they are doing about that. Interim City Manager Williams informed her they are moving forward right now with a design. Councilwoman Rogers asked about the design fee coming back to Council to be more than originally anticipated. Interim City Manager Williams explained the first proposal that came through the door was very high. Councilwoman Rogers mentioned the cost of construction coming in at around $750,000. She then mentioned all of the costs associated with the Animal Shelter. She asked what it would take for the Council to have a separate accounting of everything that has to do with the Animal Shelter. Interim City Manager Williams thought they already had it on Page 48. He clarified for Councilwoman Rogers that Animal Control and the Animal Shelter were one Page 25 of 39 Council Regular Meeting August 31, 2006 o o in the same. The $500,000 is accounted for in the capital projects fund. They will have a separate line item accountability of that process. Councilwoman Rogers questioned why they didn't have the 2004 or 2005 Actuals. Interim City Manager Williams explained that department wasn't created back then. It was under the Community Services Department/Code Enforcement. Councilwoman Rogers would like to make an appointment with Interim City Manager Williams to talk to him further about this with regard to the design fee of the Animal Shelter. Interim City Manager Williams agreed to meet with her. Interim City Manager Williams further commented on the drastic increase in construction costs. Councilwoman Rogers stated the citizens voted for one thing and this is costing a lot more than $500,000. Councilwoman Lichter stated the $500,000 was for the building itself. There was originally a different parcel of land where the facility was supposed to be built on and that didn't work out. Councilwoman Rogers stated and the citizens voted because of that and then it changed and so far everything has changed and it keeps changing. Interim City Manager Williams stated $500,000 is what they got and that is what they will expend. That message has been communicated to the people that are doing the design of the building, which is a different style of construction they are looking at. Councilwoman Rogers commented on why she felt it was a misleading ballot question. Councilwoman Lichter asked if the Fire and Police Administration Building are supposed to also be located on the 17 acres. Interim City Manager Williams informed her that was his understanding. Councilman Vincenzi stated his understanding was that was put forth but that isn't where it is going to be now. With all the development going on out west it wasn't considered any longer. Interim City Manager Williams stated they have just had those discussions and they know they have major development Page 26 of 39 Council Regular Meeting August 31, 2006 (..) o going on in both quadrants of the City. They realize that one may develop faster than the other and if so, they will be shifting the philosophy out west of town. The need for a station is still in that area and as that develops he thinks they will place that emphasis on there. Councilman Vincenzi felt there was a need for a Fire Station out there but not a Police/Fire Administration Building. Interim City Manager Williams felt they were flexible with their approach. He mentioned incorporating it into an EOC type of philosophy that has been a project of Mayor Thomas. Councilwoman Rhodes stated either way that land was not bought for an Animal Shelter. That land was bought because of the Hacienda Water Plant. The other land was City-owned land as well. Mayor Thomas asked when the voters approved the ballot. Interim Finance Director Tanner informed him in 2004. Councilwoman Lichter stated between 2004 and now this non- profit group has taken care of the animals in this City and laid out every penny. City Clerk Wadsworth asked Mayor Thomas to take a break so she could change the CD. Mayor Thomas stated they would take a ten-minute break and entertain questions from the public when they return. There was a ten-minute recess at this time. The meeting recessed at 9:30 p.m. and reconvened at 9:40 p.m. Mayor Thomas asked for citizen comments. The following citizens spoke: Carol Ann Stoughton, 2740 Evergreen Drive, stated she has had the cooperation requested by many citizens to speak to Mr. Williams who has come forward and informed her about two weeks ago that the City debt was $48 million. Tonight she hears it is $46 million. She asked to be enlightened. Ms. Stoughton stated she was given a sheet of all the employees, which made it a lot easier to look at. There are about a total of 220 employees in the City of Page 27 of 39 Council Regular Meeting August 31, 2006 o o Edgewater. employees. She asked for the total of all the City It is over $6 million. Ms. Stoughton stated as far as the reserve went, Interim City Manager Williams stated there was about 21% in the reserve and yet when he was asked earlier it was told the City was under the 15% in the reserve and that they wouldn't make what is required in the Charter until the end of the year. Ms. Stoughton stated as far as projection, the taxpayers presently are paying for projections. She hoped everyone understood that. It is the people that live here that are paying for the future people coming in and the developments coming in. As far as the ParkTowne Industrial fiasco, she feels the lawyer who approved this for these contracts, should be held accountable. He has an errors and omissions policy. She feels the City should recap moneys based on our losses for over 15 years. She feels Interim City Manager Williams was the Finance Director and asked him if he was aware when the last City Manager was here that we were in this debt. She asked how long this debt was for. She feels an independent auditor should be called in. She wanted to know with regard to salaries, she hears the City is paying full-time salaries to many employees and they are getting their pensions while they are working full-time. She then asked if the City Manager could just hand out raises to the tune of $10,000 in May of this year to two City employees. She asked if this is how the Personnel Department gives raises and based upon what or why. Ms. Stoughton then asked how many million dollars it cost to put the meters in, $9 million or $13 million. She felt there were answers a lot of people wanted to know. She thinks the pensions could lessen moneys if that is looked into and handled well. She didn't think a City Manager should be allowed to dull out raises as had been done on May 4th in the amount of $5,000 and $1,800. Then she heard it was $5,000 and $5,000. She again asked is it $48 million or $46 million. Interim City Manager Williams stated he did know how much debt the City has candidly. That is part of his job as a Finance Director. Every member of Council and citizen has a right to that information. If they were to go back and look at FYE 205 they would calculate that number to be Page 28 of 39 Council Regular Meeting August 31, 2006 o o about $48 million. He commented on additions and deletions that go on because of principal payments. Ms. Stoughton asked how much debt the City had before Mr. Hooper came in. Interim City Manager Williams informed her he did not have that information. Ms. Stoughton asked if he could find out. Interim City Manager Williams stated that has been a public record request that has been made and they are working on that as well. It boils down to a request when the last Mayor came in and when the last Mayor left. Interim City Manager Williams stated every City incurs debt as their needs arise. When they incurred the debt for the Water & Sewer Fund there were needs there. They had to go out and secure the debt. That is why they have been describing through the budget process the need to try to start saving some money and saving for the future. That is a direction the City is heading. Ms. Stoughton then asked how much is in the reserve, 15% or 21%. She then asked if the City has ever been audited. Interim City Manager Williams informed her every year. He then informed her at the end of FYE05 they were at $1.23 million, which represents 10.01%. He then compared the total revenue minus the total expenditures to the General Fund for the 2006 Y-T-D Actuals, which would put the City at the Charter requirement. Ms. Stoughton informed him then he misunderstood telling someone the City wasn't at the 15%. Interim City Manager Williams stated he didn't think he misunderstood. He then commented on 2007 by adding the revenue projections minus the expenses and they come up with $3 million, which is more than 21%. Ms. Stoughton informed Interim City Manager Williams that she wasn't questioning his abilities but she was told that he said the City would get there at the end of the year, that the City would reach 15%. Interim City Manager Williams stated that is what they are projecting. They are projecting that off of the year-to-date actual. Interim City Manager Williams then responded to the question regarding total payroll projections. Total expenses for the City, which includes regular salary and wages and all the additional benefits the City provides. Ms. Stoughton stated she just wanted to know the total of the nine sheets of all the salaries. He stated they are Page 29 of 39 Council Regular Meeting August 31, 2006 <..) u projecting regular salaries. Ms. Stoughton stated not projecting. She asked if he could add up the total for the salaries on the nine sheets. Interim City Manager Williams agreed to take a look at that. The regular salaries and wages projected for 2007 is $8.1 million. If you add in benefits you are looking at another $4.1 million. The total for FY 2007 for 224 positions is $12,426,000. Ms. Stoughton again stated she would like the total for the nine pages. Interim City Manager Williams agreed to do this for her. Ms. Stoughton asked if they are going to continue to pay pensions and salaries. Interim City Manager Williams explained that was something they just got done discussing at the very end of the budget process. That was that it is a very touchy subject. That benefit is available to those folks and there isn't much you can do about that. Secondarily, they have the folks that are getting it, the folks that are about to get it and the folks that haven't got it. But one thing is consistent throughout that fund that everybody has been promised that benefit. They have to be very careful how they address that issue because of creating major morale issues amongst the employees. That is something they have to address and they recognize there has to be change. Ms. Stoughton questioned companies that when they start to want to downsize don't they let those people go and pension them about but they don't still work full time making their larger salary. Interim City Manager Williams explained the difference here is that benefit is out there and available to the employees. Our attorney has very candidly said you can't target these employees because they are older employees. It has been on the books since the plan was developed back in the 1970's. Ms. Stoughton asked if it was in other cities or just this city. Interim City Manager Williams informed her not that he was aware of. The pension plan has described that they have other cities that are other participating but he has never researched that. They recognize that is something that needs to be addressed and they plan on addressing it. Interim City Manager Williams stated regarding the issuance of salaries. The Charter stipulates what the City Manager's role and authority is and it provides the City Manager as the Chief Administrative Official of the City. Page 30 of 39 Council Regular Meeting August 31, 2006 u u Under that umbrella you have different departments and department heads that work directly for the City Manager. Ms. Stoughton asked if it was normal to give a $5,000 raise. Interim City Manager Williams stated they have had a ton of inquiries relating to those salaries that went out and to be factual about it there were five individuals that received a salary increase. The process they use is either during the budget process each department head will make recommendations to adjust an individual's salary. From that perspective it gets looked at to be incorporated into the budget. From that point it goes to Personnel. Personnel has salary surveys that they look at in comparison of other cities to see if there is a major discrepancy and why the request is being made to adjust individuals salaries. Ms. Stoughton stated the man resigned on April 26th and the raises came out on May 4th. Interim City Manager Williams stated those adjustments were to bring those individual employees in line'. It is not out of the ordinary to look at what is going on in other cities. We want to attract and keep the best employees they possibly can. The employees are very dedicated but dedication doesn't necessarily pay the bills. They just ask to be treated fairly. Ms. Stoughton stated the average salary is about $30,000. If any money was ever around to give people a raise, the sanitation workers, the road people and the employees that are out in the heat are the lowest paid and they are out there every day making a name for this City. They are so under paid compared to someone that is sitting in an air- conditioned office. Interim City Manager Williams didn't disagree with what she was saying. Everyone of our employees are extremely important and he recognizes the hard work they do. He has been out there in the heat and worked his way up and he feels every chance that is made to address salaries across the board he thinks they would take a chance. Ms. Stoughton felt Interim City Manager Williams would do a good job but he feels a whistle should have blown when he was Finance Director to let the citizens know the debt that this town is in. She understood he was promoting a Target or a box bunch of stores and he is a proponent of trying to change what they worked so hard for and over 3,000 people Page 31 of39 Council Regular Meeting August 31, 2006 o o signed the petition to confuse the people when it comes time to vote. Target doesn't plan to build over 35 feet unless there is something else coming along in the Hammocks where they want to build high rises. She hopes he thinks about the people because the current people are paying the current taxes, not the people coming in. She feels the consensus should be to protect the taxpayer. Interim City Manager Williams stated it is fair to point out that Ms. Stoughton agree to disagree on the proposal for the exceptions to the Charter amendment. He felt there could be a misunderstanding on his roles verses Council's role. He recognizes each individual's position and vision for the City and hopefully together they pull it together as a consensus. More importantly as Council implements proposed policy it is his job to implement that policy. He cannot propose policy or approve policy. Ms. Stoughton asked whom the developer was that was going to do the box stores. She had heard a rumor that Professional Engineering Consultants was the engineering firm. She hoped the $55,000 is paid up soon because she heard we still owe PEC $55,000. She hopes we don't have them in here or if we do that there are fair bids out there. She wished Interim City Manager Williams luck. Dot Carlson, 1714 Edgewater Drive, stated developments come in and pay an impact fee but that is a one-time fee. When that is depleted the taxpayers will have to pick up the tab which means growth doesn't pay for itself. She mentioned Oak Leaf Preserve, Coral Trace, River Colony Townhouses, River Oaks, Reflections, Edgewater Harbor, Julington Oaks, Worthington Creek, Edgewater Lakes, Riverclub Homes, and Hammock Creek are going to pay an impact fee for roads, Fire Department, Police but that is a one time fee they pay. Before all those people move into those houses they are going to be picking up the tab for their roads. Developers aren't going to be building for roads for us. Ms. Carlson stated her house went up by $22. It got increased and she lives behind a motel. She feels it should have decreased so she pays less tax and she can't figure out where the value came from. She asked how you increase something. Interim City Manager mentioned Save Our Homes. You get that appreciation that takes place. He would venture to Page 32 of 39 Council Regular Meeting August 31, 2006 u u say he calculates a 3.4% increase in taxable value on his own home as well. Ms. Carlson suggested they charge the developers more money. What we need is business. She feels the height thing isn't going to keep businesses out. There aren't really tall businesses around here. She questioned if Boston Whaler was over 35 feet. She stated high schools are never that high. She didn't feel ECARD ballot amendment or Charter amendment is going to keep businesses out. She had a person tell her that what would keep businesses out is the fees businesses are charged in Edgewater and the license and permitting. She mentioned a lady at A.B. Watersports that can't seem to get her business off the ground. We need business and what we are getting is rooftops. She mentioned Hammock Creek and Reflections not offering any jobs unless you want to work in their malls, or clean their houses or mow their lawns. Due to there being no further comments, Mayor Thomas moved on to Interim City Manager Williams' contract. Councilwoman Rogers stated in the first contract he gave the Council, May 1st, under Benefits, paragraph B, he indicated the City agreed to pay 10% of his salary into the International City/County Management Association for investment into a defined contribution plan and/or a Roth/IRA account. Mention was also made under Item A that his benefits would include retirement and in parentheses he indicated current defined benefit plan. In the new proposed contract, that 10% going into a defined contribution plan and a Roth/IRA account isn't listed. Approximately four months has lapsed and what is going to happen to that 10% that was in the first contract that now is not in this contract and why a defined benefit and a defined contribution plan for himself. Interim City Manager Williams explained if Council approves the contract tonight, this one that is being proposed, that contract becomes null and void. Councilwoman Rogers confirmed he accrued two different retirement benefits for the past four months. She didn't think anyone realized that. It all happened so quick and so fast. Short of saying that is slick. That is two retirement accounts. She didn't know of anyone in the city that has two retirement accounts. Interim City Manager Williams informed her that is why they don't see it before them Page 33 of 39 Council Regular Meeting August 31, 2006 u o tonight. He recognized that is a savings and it helps towards the overall goal of achieving the fund balance or the tax reduction they have before them. It was there so he got both benefits for four months and again she didn't know of anyone that had two retirement accounts. She mentioned a citizen getting up and talking about the people that are working here currently and then the new leader is going to come in and he initially proposed double benefits. Interim City Manager Williams referred to the proposal that was attached to the new contract, on the far right hand side there are other benefits, provided by three other cities in which that is provided to as a benefit to the Manager. Obviously it was a negotiable item and he would have been willing to negotiate. That is not something that is slick or out of the norm. It is something you see in different cities and it was a negotiable item. Councilwoman Lichter confirmed Interim City Manager Williams decided to take it out. Interim City Manager Williams stated he did. Councilwoman Rogers stated at this time, they are supposed to be making a decision tonight. Initially, when they appointed Interim City Manager Williams as an Interim it was to be for six months. Only four months has lapsed. She has had good conversations with him, not so good conversations and she has to say her only experience with a City Manager was the previous City Manager and she can't say she had negative conversations with him. She may not have liked what he said but he always answered her with respect and she doesn't feel that same way with Interim City Manager Williams. He attached a chart listing other cities in Volusia and the salaries of these other individuals. His salary is lower, his annual car allowance at $500 a month, that is in line but she didn't see where they had a listing of the City Managers in other cities, what their experience level was. When Ken Hooper came to this City he had experience from Seminole County. At the capacity of his experience and education, etc. he has been around doing this a long time. These other City Managers, she didn't go and check everyone of them but the majority of the list had experience. He was appointed to be Finance Director approximately two years ago. Prior to that he received his accounting degree. In as much as she thinks he is intelligent and capable, her concern is the level of responsibility he is going to have on his shoulders as a City Manager in this City. She wasn't going to say she didn't think he could handle the job. Four months as an Page 34 of 39 Council Regular Meeting August 31, 2006 . Q u Interim, isn't enough time for her to say she made a prudent and wise decision by appointing him to the City Manager Chief Officer of this City. She didn't understand why they couldn't wait until the six months was up. In the contract he was asking for five years. Interim City Manager Williams stated he wasn't. Councilwoman Rogers commented on a conversation she had a week and a half ago with Interim City Manager Williams and she let him know prior to his six months being up with the City that they agreed to do at the very beginning that he would be in that position for six months that they would do an evaluation. She spoke of this being a problem with the previous City Manager. She feels if someone is going to come into the position without past experience that they should satisfy the six-month requirement and that they should do at least an evaluation and then go forward. Councilman Vincenzi felt there were two or three issues that really needed to be talked about. One is whether the City Council agrees to appoint Interim City Manager Williams as City Manager. The other issue is the issue of the contract and terms of the contract. The third one might be setting of goals and objectives and evaluation process but that is covered in the contract a little bit. He stated Councilwoman Rogers had some good points. He feels strongly enough that Interim City Manager Williams has the capability to do a good job. He would not have any hesitation about saying he would like him to come on as City Manager. He had a problem with saying that tonight and then also approving the contract tonight. He feels he would do a good job. What he lacks in experience he can learn. Conversations he has had with Interim City Manager Williams have been mostly positive, even though he doesn't agree with him on some things. He would like to have a little time to look at and think about the contract before it is approved. He suggested it would be prudent to say yes or no as to whether they want to appoint Interim City Manager Williams as City Manager and then set a special meeting date to discuss the contract and goals and objectives. He felt that would be a smart thing to do. He had no problem with supporting him on the appointment of City Manager. Councilwoman Lichter somewhat agreed with Councilman Vincenzi. She agreed Interim City Manager Williams would be a good City Manager. She spoke of being on some committees where they go outside. She made mention of the Page 35 of 39 Council Regular Meeting August 31, 2006 . Q o rules and regulations being different in every State. She feels the contract looks good to her. She had no problem with that tonight but obviously they need a majority. Goals are another story because she feels when you look at a whole community and you are an administrative officer and they are legislative that it is more than just finance. She mentioned interlocal agreements with other cities and environments. It is a learning process and she knows Interim City Manager Williams can do it. She thought he might have a self-evaluation in here. She is not adverse to getting that but she would have no contract asking for that and still approving the appointment tonight. She wasn't sure that Interim City Manager Williams and the Mayor would get to this point, ask to get appointed tonight or how that came up. She hoped after Councilwoman Rhodes spoke that Mayor Thomas would address that issue. Councilwoman Rhodes stated she didn't know how that came up either but she didn't have a problem doing it tonight. She made mention of working with Interim City Manager Williams as Finance Director for a long time. She has always said that Interim City Manager Williams spends money like it is coming out of his own pocket. She trusts him implicitly in that area. She thinks he has a really good network of resources that he can go to if he needs guidance in some areas that maybe he isn't familiar with. She agreed with Councilman Vincenzi that he is smart and anything he doesn't know he can learn. He has lived in this community or the neighboring community most of his life. He is raising a family here. He has a vested interest in this community. He has a proven record of dedication that she thinks they need to value. While she agreed with Councilwoman Lichter that she doesn't have a problem with the contract maybe there are some things there she didn't see that Councilman Vincenzi did so she didn't have a problem with having another meeting. She agreed with the goals and objectives as well. She didn't have a problem adding her vote to making Jon Williams the Manager of this City tonight and they could do the other stuff another day. Mayor Thomas pushed this up due to the September 11th meeting being a dandy with the items they will be discussing. In the past few months, they have become closer. He didn't know Interim City Manager Williams but he likes what he sees in him. He may be young and inexperienced but honest and integrity makes up for that. That is what government needs. He saw that in him. He has Page 36 of 39 Council Regular Meeting August 31, 2006 .. . (.) (.) done an excellent job in the past four months. There have been some major problems that have arisen and he took them on head on. He hasn't backed off. He is a good strong leader and he is honest. He sees the frustration in him because he wants to do something. He has done a fantastic job of handling these problems in a very political way, where the City isn't going to get sued. He put his foot down with the ParkTowne Center and the Police Department. He is very impressed with what he has seen. It scares him to death to think if they would have brought some outsider in and not had his experience with the City to deal with these problems. He is very pleased with the progress he has made. He spoke of being proud because he has worked his way up. He mentioned Interim City Manager Williams having a dream of being City Manager and he is going to fulfill that dream. He is pro Jon Williams. He feels he needs to know where he stands. Interim City Manager Williams asked that they define what the Council's intentions are by discussing the contract at a later point in time. Councilman Vincenzi stated there was some wording in there that was odd. He pointed out some of the issues he had in the contract with regard to the car allowance and termination of agreement/compensation. Mayor Thomas suggested they appoint Councilman Vincenzi get with Interim City Manager Williams and work out the details. Interim City Manager Williams asked that they narrow it down to a definitive time frame. Councilman Rogers pointed out it was on the tentative agenda to be discussed on September 25th. Councilwoman Rhodes asked if they could make him the City Manager and have him and Councilman Vincenzi work out the kinks by September 25th and then they will approve or disapprove it on that day. She asked Interim City Manager Williams if that was okay with him. Interim City Manager Williams informed her he would sit down and discuss that and bring it back on September 25th. Councilwoman Rhodes then asked Interim City Manager Williams if it was okay if he was named City Manager. Interim City Manager Williams stated they were certainly welcome to do that tonight but the question they would all have to ask is if they get to a point of agree to disagree. Councilwoman Rhodes stated Page 37 of39 Council Regular Meeting August 31, 2006 , . o o then they would have to take a vote on his contract and he would have to accept it or reject it at that time. Interim City Manager Williams stated he was still in limbo and if that is the case, he didn't see what they were gaining. Councilwoman Lichter stated she would rather make the motion that they accept Interim City Manager Williams as City Manager and work with Councilman Vincenzi on a few minor crossouts on the contract. Councilwoman Lichter would like to see at the same time his goals and objectives other than Finance. She feels he needs the security. She spoke of sometimes being a divided Council and it not being easy to get consensus.out of. Interim City Manager Williams stated he was willing to negotiate those items out. He wants the opportunity to continue to work in the City. Councilwoman Lichter stated she would like to make the motion. Councilwoman Rhodes informed her she already did. Councilwoman Lichter stated but she added to it that he sits down with Councilman Vincenzi and works out minor details of the contract. Councilman vincenzi mentioned it coming back to Council for everybody to look at the contract. Interim City Manager Williams commented on he and Councilman Vincenzi reaching an agreement and if it doesn't satisfy everybody they are back to the point of negotiating. Councilwoman Rhodes seconded the motion made by Councilwoman Lichter. At the request of Councilman Vincenzi, City Clerk Wadsworth read the motion. Mayor Thomas stated the motion was to make Interim City Manager Williams City Manager and Councilman Vincenzi is going to tweek the contract and the contract will come back to Council on September 25th. The MOTION CARRIED 5 - 0 Page 38 of 39 Council Regular Meeting August 31, 2006 . . (..) o ADJOURNMENT There being no further business to discuss, the meeting adjourned at 10:35 p.m. Minutes submitted by: Lisa Bloomer Page 39 of 39 Council Regular Meeting August 31, 2006 . . o o . - CITY OF EDGEW A TER FY 2007 Budget Workshop . AGENDA · SUMJv1ARY DISCUSSION ALL FUNDS · MILLAGE RATE DISCUSSION · DISCUSSION POINTS o o ... DISCUSSION POINTS COMPARISON OF MILLAGE AND ASSESSED VALUES TO NEW SMYRNA. . . 1 . ...............__.._.1.._..........___...1....__.__.....__..... ................__.......1.. SUMMAR,X.OF FUNDS 2 C) Q MILLAGE RATE ANALYSIS TAXABLE VALUE THIS YEAR (DR-420) TAXABLE VALUE LAST YEAR TOTAL INCREASE IN NET TAXABLE VALUE THIS YEAR $1,099,478,419 $801,745,926 $297,732,493 This increase is a result of new construction, etc. of $34,140,227 and increased values of $263,592,266. Total percentage Increase in taxable value Is 37.13%. Last year's millage rate which Is 31.05% increase over this year's rolled back rate. MILLAE AD VALOREM RATE TAXES 4.9219 $5,411,523 X 95% $5,140,947 $7,091,636 6.45 X 95% $6,737,054 6.15 $6,761,792 X 95% $6,423,703 Current year rolled back rate (amount needed to generate same revenues as last year based on this year's taxable value less new construction) Proposed millage rate for FY2007 is 6.15 mills, which represents a 24.95% increase over the current year rolled-back rate. 3 o o . " GENERAL FUND DESCRIPTION · The General Fund accounts for all resources that are not required to be accounted for in other funds; in essence it accounts for all unrestricted resources. 4 o u SYNOPSIS OF MAJOR CHANGES GENERAL FUND REVENUE . The FY2007 proposed revenue budget is $14,505,908. . Proposed Millage rate for FY2007 is 6.15 per $1,000. . Tax revenue has increased by 19.58% from the FY2006 budget. . Largest change in General Fund revenue, Land Held for Sale, which represents a 100% decrease from the FY2006 budget. Transfers decreased . % from the FY2006 u ors Management Letter. "'I) REVENUE BY SOURCE Licenses & Pennils 3.80% hteresl Earnings 0.24% Sales I SlI'plus 0.01% Lard Held for Sale 0.00% htergoverrmenlal 17.86% Taxes 67.88% 5 o u .. SYNOPSIS OF MAJOR CHANGES GENERAL FUND EXPENDITURES Personnel cost have increased by 5.50% from the FY2006 budget. 2 New Police Officers' Operating Cost decreased by 4.33% from the FY2006 budget. Capital Outlay decreased by 3.84% from the FY2006 budget. Debt Service increased by 32.65% from the FY2006 budget. Transfers out decreased by 33.88% from the FY2006 budget. E)lpENOITURES BY DEPARTMENT CODE ENFORCEMENT 1..((% CITY COUNCIL 0.-43% CITY MANAGER 3.2.(% ANIMAL SERVICES 1.80% FIRE OPERATlONS 15.55% FIRE ADMINISTRATION 2.61% POLICE OPERA TlONS 21.71% poueE ADMINISTRATION 3.-48% 6 o o SYNOPSIS OF MAJOR CHANGES GENERAL FUND FUND BALANCE . Estimated Appropriation to Fund Balance is $280,254 which will achieve City Charter Requirements. . Estimated Ending Fund Balance for FY 2007 is $3,005,666 or 21.13%. . Total General Fund Budget for FY2007 has increased 2.61%. Park~Towne · Park~Towne - Contractual Obligation for Infrastructure Development (Base Leg & Rowan Way). · Proposed - 15 yr term, 6% Interest Rate, $3,000,000 Principal. Total Annual Debt Service Payment $308,888. · Action Plan 7 o o .. .--Capiiii AsseWProjects---- ..---- 1 Fund Department Asset/Project ~~~.:~I...~.~.~.~.J9g.~.____.____.__ ~_~_~_o_".l.P.~~E~'-~~~r_~~<!~...Y..P.~.~~~._.. . [i.-.- 9~~.~.S.E.~~~~._.._..._.._._............._ 1___--1 Sonic Wall VPNlRouter L-------- ..jl.~.~~i~~_.Q'p'~~~i~.E1_S.J:.<Eip..~_':.Il!!.E.I:!:'.~~g~:.~~........._ 1---.-------- .. .Fire-b--e-raiions--~~~ft~~~~~~~1~\~~o:i"....- UHFNHF Radio (0-55, T-57) Leis-ure-se~~~~::::f~~!iJ~~~~~~~~f!-~~S.s-~~: Shuffleboard courts w/lights Racquetball Courts ._-::::i~~~~~~~g~~~~~E~~~~: IMan 0 Park __; .._________..__.._____.I-__!<?!a...!_~~pl~_\.~.~~r:.~J.~:.~_ I ___-I- ._j I Amount 25,650, -....-..........-.-.....1 5,500, .-3;5001 13,0471 ::=:~_~3.~I?j 17,0001 _ -ggg~1 1~~~.~~~1 217,000 .......____~~!P.~91 30,000, --50;000j 44,000 .$.~.!~Q~,.~~.~.I ; .... ..... ......... .......-...........~ .................... ...........-.........- ....,j. i j. L_ ........-:::.=. ... ............. ....::-.~~~k~~~~~~:L::=:::::I: --------------~}l~~:i!:~~~!.~H.Qi:!~~SUMMARY _.___ REVENues: 5.50% -1.33% -.:3:84% -.32:65% ..~~p..!~.~i~.~~.~~..~~.n~~.!..~!.~.~.... -266% 0.33% Fund Balanc. . Beginning Fu;idB~X~~~:~:~~!~-._~_._~..._~-. 531,069 i 1,231,931 , ..............................:.._.:.........-.-:t-. ............1.-:.. ............._.:.--....,_ NOTE: FUND BALANCElACTUALS MAY VARY DUE TO ROUNDlNO-, ~NoiE:'i:i:O.co[uMNTfAifEsiiMATEAN.i)"is..suBJEcfTOCHA.NiiE. .~~!J~.!.c!..~~..~N."O'_~!l~.~.~~.~.~N.~:'.:..__._.__. .....;::.::.:::~~~__. ._______~......l_"---L--~.L.-..-_ ....... .............................!..... 8 o o SPECIAL REVENUE FUNDS DESCRIPTION . Special Revenue Funds account for revenues that are restricted for specific purposes. LOCAL LAW ENFORCEJ\1ENT BLOCK GRANT DESCRIPTION · This fund receives Federal and State grants that provide governments with funds to underwrite projects to reduce crime and improve public safety. 9 o o SYNOPSIS OF MAJOR CHANGES LLEBG FUND · Revenue for the proposed FY2007 budget is $10,000. · Expenditures for the proposed FY2007 budget is $10,000. · Estimated fund balance for FY2007 is $66. ::::::=:":=:::=~6:~~~~~~~J~R~~~~~~~~:~~~~~{~~~~~':~~k~~~:..::..:."::::: ~~~~~~~~~F=~===:- ........ ........ ...................................... .......................J........................................................ C6CALLAWENF6~~~~~:~:~~::.. ...... "":::J:::=:::::: INTERFUNO'TRANSALLFUNDS ........................................iil....... 0, Total Rewnue 0; O! 0; OPERATING SUPPUES BOOKS, PUBS, SUBS, & MEM Total Expenditures Surplus/(DeficU)lor Fiscal !'!~.._..._.L Fund Balance. Beginning . Fund Balance. Ending I ==-~__---..L__-L. :......_+ 10 . . o o GRANTS FUND DESCRIPTION . The Grants Fund is established to account for restricted grant funds. . Most of the grants are reimbursement grants that require a City contribution. SYNOPSIS OF MAJOR CHANGES GRANTS FUND REVENUE · FRDAP grant revenue for FY2007 is $341,617. · CDBG grant revenue for FY2007 is $209,761. · Port Authority grant revenue for FY2007 is $110,165. · Other grants may be received through out the year that are not budgeted. 11 o o . .. SYNOPSIS OF MAJOR CHANGES GRANTS FUND EXPENDITURES · Transfers out for FY2007 is $166,761 and is a transfer to the Stonnwater Fund. · Improvements other than buildings for FY2007 is $494,782. SYNOPSIS OF MAJOR CHANGES GRANTS FUND FUND BALANCE · Negative fund balance for FY2007 of $(507,616) is result of reimbursement grants that have been expensed and waiting on reimbursement. 12 o o SPECIAL LAW ENFORCEMENT TRUST FUND DESCRIPTION · This fund is established to receive revenues derived from confiscated property obtained. during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes, exclusive of salaries and vehicles. 13 v o SYNOPSIS OF MAJOR CHANGES SLETF FUND · Proposed FY2007 budget is $13,046. · Dare Proceeds increased by 26.67% from FY2006. · Special Law Enforcement proceeds increased by 2.73% from FY2006. · Expenditures increased by 4.37% from Fy2006. · Estimated fund balance for FY2007 is $44,575. .THE-ffc6iJRi"fiN'ifs..... . NTEREST EARNINGS ALeS/SURPWS.......... ~M-jobL~~.y..n.ii.;.- ...n-fEffcONTRACTUA"CS.E.RviCe..... 'AAvei'j,"p"ER""D1EM" RE-iGHt'SERVlCt~f -EPAnffuAiNi'E"NANCE ........... .............; "RO"MO"WN:A"["AC"wiil"E'S'" "liiEReJ:iARGES76SUGA nONS 14 . . o o ROADINWACTFEEFUND DESCRIPTION · This is established to account for road impact fees collected from new construction. SYNOPSIS OF MAJOR CHANGES ROADINWACTFEEFUND · Road impact fee revenue decreased by 28.75% from FY2006 and is based on new construction of 200 units. · Estimated fund balance for FY2007 is $719,431. 15 o o --.----.:::::-~~_:_::::_::.:=;=:--:~~~:~~~:c.!~~:~~~:=:--::_:_::_:J:::::.:=:-J::::::~:::..:j=::::::: -..---..--.........----j.---2004--- .-..2005--/....-.2006"--- ....2OO6"'(:i':O+--2OO7 ....... ......----.----.. ! ACTllAlS ACTllALS BUDGET ACTUAl i PROPOSED _..._._......._.._..._..H......__._......_.... i -OAOiMpAciFeE-.--.-.----t..---O .~~I~!.v."......_..___ ._....._.__.._; 0 MPROVEMEfifS'MfiUi.oiNii---l'--- ARKTOWNE '-'-ijSFERS ..-....---.-...--.....:i. PPROPiATiON-i'OFUNoiiAiANce olal "E'p,iidih;,u .-- . u-'i"~iDtjj.iij"iOr'FiiCiiYi'ir--'-" vnd Balan.. . B.glnnlng -.nd Baia.;-. Eiidlng ---0 o ---'---0 285,000'---'-:28:7"5% 181,OOO......_._.:~:.!~'" 01 168,130 I o 111110 i 400,000 o 168,130 118,110 4,000 : 270,301 i 168,1301 4l84lli -100.00% --'000% :00:00% POLICE IMP ACT FEE FUND DESCRIPTION · This fund was established to account for police impact fees collected from new construction. 16 o o SYNOPSIS OF MAJOR CHANGES POLICE IMP ACT FEE FUND · Police impact fee revenue decreased by 16.69% from FY2006 and is based on new construction of 200 units. · Estimated fund balance for FY2007 is $160,739. -----POiICE IMPACT FEE FUNO BUOGET SUMMARY NTERESfEARNiNGS ..oTiCi':.IMPACfFi':fm _my olaIR'Vlnu,-__.m.m_m.m__m ....-..........................- ................... ...-.....-t.....-...... :.:::::::::~i~::~::~~ 44,079: 44,079' 1 .. 5,2451 -:iitm OJ .m4,~j 0, 9,245 34,8341 16,982 51,116 ........t......~.... I ............+.... i .- 0.05'. :16.69% -:'6:69% "ROFESSIONAl SERVICES PROVEMENTSiiOfiiUilOINGmm; .-tiSFERS................-.-..-.-......... NSFER TO GENERAl FUND ..PPRoPRlA:noii.'fo-f'litiDBAL m..To.iaT.Exp..ndi.tij.ies................... .-......... urplus/(Oefi.IQfor Flsc.1 Year ..... u;;dii.i.~: B,gi;;niii~=~ und B.I.n.. . EndinL____ 17 o (.I . ... FIRE IMP ACT FEE FUND DESCRIPTION · This fund was established to account for fire impaCt fees collected from new construction. SYNOPSIS OF MAJOR CHANGES FIRE IMP ACT FEE FUND · Fire impact fee revenue decreased by 17.51 % from FY2006 and is based on new construction of 200 units. · Estimated fund balance for FY2007 is $440,335. 18 o o m'-'--FiREIMPACTFEifiUNDBuooEfSUMMARY-- i 2004 .......-.--....-:...-iicruiii.s--. _......~_...~.J.--m~_--_::;_;.:;;J-~._:~mJm--~--= ACTUALS i BUDGET ACTUAL: PROPOSED' . . . . ---"321i---..--.----O --'--"'--'01-----_..]..m-- 108,722, 80,250 53,896[ 66,J .17.51% 101,041: 10,210 l3,m, 1I,200! ":[7:51'% "'---"'-'--'--"---j"'---"'-'--"'-' i NTEREsTEARfiiNGs---'-------l.--m-o '-iR1IMPACTFEES n,510 ..-.T.tiiii.vo.iiu.m.---....-....--.-.-..... 71,110 ./ 'PPROPRiAfuifroFufioiiiiC-'-'-' Total Expendllurt. iir)jiuliiDtiiiijiOr'FiiC.TV,Ii' -.- , 'uii-,j'siTiii.,-;Btg1iiiiing---.m__.. ~ndBijiiiii:e;;di;;i- ..m';18:43% ......l._ RECREATION II\1PACT FEE FUND DESCRIPTION · This fund was established to account for recreation impact fees collected from new construction. 19 o Q SYNOPSIS OF MAJOR CHANGES RECREA TION IMP ACT FEE FUND · Recreation impact fee increased by14.69% from FY2006 and is based on new construction of 200 units. · Improvements other than buildings decreased by 36.01 % from FY2006 is $168,600. · Estimated fund balance for FY2007 is $319,805. ................................ .....r....-.... ............~~. .....t....- ....j...~.~J~~.~~~....r.~-..- 20 . . o o DEBT SERVICE FUND DESCRIPTION · This fund was established to account for the accumulation of principal and interest for certain general long-term debt. SYNOPSIS OF MAJOR CHANGES DEBT SERVICE FUND · Assessment interest increased by 20.10% from FY2006. · Assessment principal increased by 96.95% from FY2006. · Principal expense increased by 5.40% from FY2006 budget. · Interest expense decreased by 19.03% from FY2006. · Estimated fund balance for FY2007 is $1,155,797. 21 '-I o DEBT SERVICE BUDGET SUMMARY NTERESTEARNiNGs.... NTERESfEARNiNGs. .ssessMfNts.PAYMENT..... ..-.;iiiiHio% _..20~0% .-......00:95% ..-..0:()0% ....<<i6% .i'HEifc6NtRAcruA[sEilViCf- .ifiNciPAC--............-........- .......-.......---..-...... NTEREST ...PROPRViooNID FUN6BAL obI Expenditures u;pi"~(iiefiCi~.iO;.FiscijYiir-' ; .un..li=faian.c'.:-Seg.lnnini---......... ....+. ..undBai"inee-:-En.d.ingw.......... o 913,m: 111,370 ___..2l,l,6.!9.j._...~,~ 234.909 , 255.588 255,1111 214,147 ..-........540% ~~:!9.~3.~ 0.22% -i422:32% CAPITAL PROJECTS FUND DESCRIPTION · This fund was established to account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. 22 . o o SYNOPSIS OF MAJOR CHANGES CAPITAL PROJECTS FUND · Animal Shelter debt proceeds decreased by 100% from FY2006. · Transfer in revenue decreased by 33.33% from FY2006. · Building capital expense increased by 100% from FY2006. · Estimated fund balance for FY2007 is $755,297. ................_..-1" ..................................................r... INTERfsT'EARNiNGs'~.-_.--.---r--_N._- NiMAi..'.SHElTERToMf...........................t...--... .-.......-.. INTE"Ffe"ST"eARNiNGs' ..............+ "PPRQ"p"kiATEtfF'UNtHiA"LANCE .... "'f ~::~~~::V~~PM~~~~5S:::::~~~:.::t~:::~~~::~;~:,;~~i ....!.~.~.~..~!,~~~.~~.. "600,3761 BUILDINGS ............................. ..-. ......--......01.... "MPRci\iE"MtNfs"61fsliiLoit.j<}-. j 123,765 ""AcHiN"E"RY"&""E'auipMENi""'''' ..,........,.,~ .......... 53".(51'2 ,.i6tOFfv"E"H"iclES..............H. . ............! .............-........-- 0 AAH1fFE.ffs.......M...........-..M..__...--..-....-r 0 .::}~~.I..~p.!.~.~.!~~!.L........._._ ~,~p!u:.SI'(l?~.~.~.~t~_!_.f.i_~.~rx!,I.~ ..... ... Fund ealance - Be~.i u~d Balance . Endl~.!L.._ 23 o o . SYNOPSIS OF MAJOR CHANGES WATER AND SEWER FUND REVENUE . Transfer in revenue increased by 842.61 % from the FY2006 budget. . Water charges increased by 1.85% from the FY2006 budget. . Sewer charges increased by 2.48% from the FY2006 budget. . Water misc. revenue increased by 13.79% from the FY2006 budget. REVENUE BY SOURCE Assessments Rewnue 4.31% Sewer Charges for Service 39.76% Water Charges for Service 41.38% Water Misceftaneous Revenue 1.85% 24 .. o o SYNOPSIS OF MAJOR CHANGES WATER & SEWER FUND EXPENSES . Personnel cost increased by 4.92% from the FY2006 budget. . Operating expenses increased by 35.84% from the FY2006 budget. . Capital outlay decreased by 6.68% from the FY2006 budget. . Debt Service increased by 141.44% from the FY2006 budget. . Transfers out decreased by 56.45% from the FY2006 budget. EXPENDITURES BY DEPARTMENT FIELD OPERAll0NS 10.86% ENVIRONMENTA L SERVICES 6.26% WASTEWATER COLLECTIONS 7.82% WATER DEPARTMENT 29.41% WASTEWATER DEPARTMENT 45.64% 25 o {) " '; ":ii:i4% ~~~l_iiil-=@ ! ---- H:J.m__ Fund I Department ,Water & Sewer Fund 'Administration i Water Depl. ....j... ....... Amount mmmmmmm__'_ l\IVast~~a~er I)ep~: _ ~~.sIl!.d!le_loa.~ing PUrnP~ _ m........~~-'9..l:ll? }.-____.. Lab Equipment for NELAC 5,000 ['Hm===~. :m Collections - !=~!~~~;~:~sT~~kt=~:E j:. .. ..mmm..m. ~iin~~~~@~~.!'~l!.~P.~'lm" ! Field Operations #1 water line extension t - m.... Two 1/2 ton trucks :--,Im___-.-- , ...1...._.... .:r()~I_~~p_I~I,,~~!'E<:IJ.~~~_mmm_ 26 . . o o WATER DEVELOPMENT FEE FUND DESCRIPTION · This fund was established with net assets of the Water & Sewer fund that were reserved for development. Water Development fees received are deposited into this fund to be used primarily for capital improvements to the water system. SYNOPSIS OF MAJOR CHANGES WATER DEVELOPMENT FEE FUND REVENUE · Water development fees decreased by 5.88% from FY2006. · Interest earnings increased by 150% from FY2006. 27 o o . . SYNOPSIS OF MAJOR CHANGES WATER DEVELOPMENT FEE FUND EXPENSES . Professional services decreased by 32.02% from FY2006. . Land expense decreased by 100% from FY2006. . Improvements other than buildings decreased by 100% from FY2006. . Machinery and equipment capital expense decreased by 79.18% from FY2006. . Transfer out expense increased by 100% from FY2006. Capital Assets/Proj ects · Sludge handling improvements to the water plant of $228,552 28 . . Q o ........~...~~~~~..~~...~.~~..~...~~..~....~.~..~~tER.DEV!.~~.~~~..~J'.~'~~..t~~.~....~~~.~M~Iy.~.~.~.~y ................ ..........-~ ..".. ...~............~~............L...........-........ .........._...........i I :::~:~~~~=:I::~~~E;......~~i~l~~~~~~~:I:::.::. ........;!~:i8.~ .....:<<:89% ............~:~\\ ludge Handling Impro\4!ments to Water Total ...m..m...._.........~............_ SEWER DEVELOPMENT FEE FUND DESCRIPTION · This fund was established with net assets of the Water & Sewer fund that were reserved for development. Sewer Development fees received are deposited into this fund to be used primarily for capital improvements to the sewer system. 29 o o . . SYNOPSIS OF MAJOR CHANGES SEWER DEVELOPMENT FEE FUND · Wastewater development fees decreased by 14.53% from FY2006. · Professional services decreased by .82% from FY2006. · Transfer out expense increased by 100% from FY 2006. · Estimated fund balance for FY2007 is $1,714,484. m_sE\ii~ilEVEi:OP;;;OOFEEfF!Ji!f~~#~~iiY==::-::'~.:':::::::" :..... ........~4:53% 0.00% -14.05% ..~~E~SI()~A(sI~Y!~s o IMPROVEMENTSNiifiiuilOiNG...... RANSfERS 6W,i;TER&SEWf "PEiiiiiNii"cO...m . ._!~ta.I..EI.~..n~~IIl.r....._._._..._..._.. .. urplu.(O.ficlij for fisc. I Year uiiiiii.i.nce-:ii.gi.ni.i-..... und B.I.~.c~.:~~~lnl m---.cB2'~ .100.00% 0, ..__.__O~._.___m_o.::::::~,~l........ 0; 0: 0' 272,111 432,112: 371,174: '-"--36.26% 332,019 1,142,399 i 146,026:.m ..m:55:42% '"4"ii059---42"4:iJ59Ti:56ii:45Sr- 716,0711 1,116,4161 1,714,464 i..... 30 <<' ' . o o RENEWAL & REPLACEI\1ENT FUND DESCRIPTION · This fund was established with net assets of the Water & Sewer Fund that are reserved for renewal and replacement. Bond covenants require that transfers be made to the Renewal & Replacement Fund equivalent to 5% of the gross revenues of the systems for the previous fiscal year. SYNOPSIS OF MAJOR CHANGES RENEWAL & REPLACEI\1ENT FUND · Transfer in revenue increased by 26.67% from FY2006. · Improvements other than buildings decreased by 100% from FY2006. · Transfer out expense increased by 401.43% from FY2006. · Estimated fund balance for FY2007 is $55,581. 31 o o .. ... RENEWALANDREPLACEMEN'iiuNoiiuOOETSUMMARY- :~~~ilii~ -26:67% :=~~!~ .._...M__.....1.__............................1......._.........___..1........__ SYNOPSIS OF MAJOR CHANGES REFUSE FUND REVENUE Charges for service increased by 6.14% from the FY2006 budget. Transfer in revenue decreased by 100% from the FY2006 budget. Estimated fund balance for FY2007 is $631,429. 32 ....., . o o REVENUE BY SOURCE Intergoverrmemal Revenue 0.00% Charges for SenAce 99.91% SYNOPSIS OF MAJOR CHANGES REFUSE FUND EXPENSES . Personnel cost decreased by 6.22% from the FY2006 budget. . Operating expenses increased by 11.30% from the FY2006 budget. . Capital outlay increased by 140.00% from the FY2006 budget. . Debt service decreased by 9.05% from the FY2006 budget. 33 o o .. ~ " . ,".. .... . ... ............ ................ ... .. ..... ...:.~.........::~.......~. ......REFUS.e-FUNO ...... .............. ":'.'~'.. ,,'n ........ ....:::..:::........:......::.:::.....::::::...........::.......::.......::.......i::..... ---- ....... ...~.~I;'"~; ~~~$;--= ~:~~~~~L~..~~~~::=:.:.J.::.~:~~Hro~.:::=:.:~=1~081,=::::~1...23:::..996.~J~:~::.:I!I001:r.!.::..::=~=i~0:I.:::.::':1:00-'.: iii,i\i,a'i'iaiiSieii ~~ "ha~e;.tiisei\ic. ...................-+-..T.959:m .-'-i0ii5:ii65I"'.'2:2iii:iXXl '--f:il2ii;"28iit"'.'2:335.iXXl .-"...614% Tobl R.venu. 4.2U,230 3,310.737 I 2,321,116 2,045,010 I 2,337,000 0.56% ....P.~.~~!~:.~.~. . ."oMOl S.....c.. .....: .....{1S{135g........:jj:-22ij; .peratiiig Expen<lture. ,'3.332;727 .....(954:685r...(016,976-.;-:-131-;935-....11:3O% "a~i3i'oUiia;""""""" .................. .....................0....-.....-.....ii1.......2:5OO. 0, ..........6:0001.........146:00% ebtS,rx,'," ...... ....- '.,0.769"."."'10:165i-8ii:00i -..-.70.7:i5r.....ii1;iilij".-.-..:g:05% nt.r!Jnd Transfe" I 206.000 294.000 0 O! 0 .......ng.;;cy................-.......................T...-..---.. ......-....-..1...................... ..............-1...................-.............-....... ...'j'OtiiEJ:p..ndii;.re...................-... 4,494,242 1,245,044, 2,291,m 1,731,7tIi 2,331,000 '.'-'."'T58% ~~I~~~~I~:''g~~W..r'... ...., .....~:~l)...~:r~+...Ji:m.... ..~fJl.. ..~:~1-~.69% ~i!:Bai.nc..:.Ending.........._... 251,4391 322,132 l 3-41,453 no,425 l 131,421 , . . . . . . . . . . . ...._..__m.._.._~.~...._._.____..._...:....___.._...._......_..... SYNOPSIS OF MAJOR CHANGES STORMW A TER FUND REVENUE Charges for service unchanged due the rate study currently being conducted. Transfer in revenue decreased by 89.07% from the FY2006 budget. Misc. revenue decreased by 62.50% from the FY2006 budget. Estimated fund balance for FY2007 is $1,422,264, 34 " ..~. " o o SYNOPSIS OF MAJOR CHANGES STORMW A TER FUND EXPENSES Personnel cost increased by .37% from the FY2006 budget. Operating expenses decreased by 27.17% from the FY2006 budget. Capital outlay decreased by 80.06% from the FY2006 budget. Debt service increased by 1.15% from the FY2006 budget. Transfers out decreased by 100%. .m......... STORMWATERFUNO.._.......-. m...........m.....m.._ ~F.;!:'~~=;rJ.="~-~ 117,090 j E,p.ndilure~1 mm:::t. "ersomei'Se'~'ces ....... ..............~~~~.......-.......~....J ..........455.:1.3j.t perating"Expeii(jiiUres ...........33iS}4s.1 .jiiiai.oUii,y......................m.......j9,I6:iT bIS.OIce'" 116,388mjiii}65 I~,:!,~__=-=--=- --~.i--_.!3~ m nli"leocL...__ . T.ot.I_);(p.!"-d~.ure.!.........mm m..., 594,6011 .~.'P.I.~~JD.fi~ll~..'..~i5C~I.~!~rmm.!._ (107,511), ~und Balance . BeQlnnin~ "'2,'514;005"; F.~:~.~:~:~~~:~~!::~:~~~~~::... ..... ..................! 2,406,494 ! 1,045,273 (00,638) .mi,4iXl:494 1,315,1561 35 \ o REVENUE BY SOURCE nleres! Eamlngs Miscellaneous 0.00% Raller>JEl 6.40% Charges for Service 79.37% o .. .i:::to .".. nlerftrd Transfers 14.23% 36 -;