09-09-2002 - Special
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CITY COUNCIL OF EDGEWATER
SPECIAL MEETING
SEPTEMBER 9, 2002
7:00 P.M.
COMMUNITY CENTER
MINUTES
CALL TO ORDER
Mayor Schmidt called the Special Meeting to order at 7:00 p.m. in
the Community Center.
ROLL CALL
Mayor Donald Schmidt
Councilman James Brown
Councilman Dennis Vincenzi
Councilwoman Harriet Rhodes
Councilwoman Judith Lichter
City Manager Kenneth Hooper
City Clerk Susan Wadsworth
Legal Assistant Robin Matusick
Assistant City Manager Liz McBride
INVOCATION, PLEDGE OF ALLEGIANCE
Present
Present
Present
Present
Present
Present
Present
Present
Present
There was a silent invocation and pledge of allegiance to the
Flag.
MEETING PURPOSE
The purpose of the Special Meeting was to hold public hearings
(1st Readings) on Ord. No. 2002-0-13, amending the City Budget
for the Fiscal Year ending September 2002; Ord. No. 2002-0-14,
adopting final millage rate of 6.95 mills per $1,000 of assessed
taxable value and Ord. No. 2002-0-15, adopting final budget for
fiscal year 2002/03.
Legal Assistant Matusick read Ord. 2002-0-13 into the record.
City Manager Hooper made a staff presentation. He highlighted
what Council described at the July 8th Work Session that they
wanted in the budget and what has occurred since then. He went
on to describe what has occurred with our insurance quotes.
There was a brief discussion regarding only having twenty days to
do something about the City's insurance.
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city Manager Hooper then went on to speak
back into the budget for resurfacing. He
firefighters going from a current 12 hour
shift which allowed the resurfacing to be
budget.
about adding $100,000
further explained our
shift to a 24-48 hour
placed back into the
city Manager Hooper further spoke about $60,000 being added into
the budget for the SR 442 Corridor study.
city Manager Hooper informed the Council there is about $900,000
in the reserves. That number is down $250,000 from what it
should be. He explained the goal this year is if there is a
savings, that money will go into the reserves to try and work
diligently to beef that up.
City Manager Hooper commented on a few areas they have found
where they can move money around.
City Manager Hooper made mention of the excellent job Finance
Director Michelle Goins-Murphy has done on putting the budget
package together. He feels it is one of the clearest he has ever
seen.
City Manager Hooper referred to funds the Council hasn't seen a
fund balance on such as impact fees. In year's past, impact fees
were not part of the budget. That is a specialty fund the
Council has never seen. Each of the specialty funds have been
identified for Council which shows the fund balance starting now,
the money coming in based on new impact fees, what is to be spent
and the balance coming out of that.
City Manager Hooper then went over the millage rate analysis
based on a 1 mill increase. He went on to describe the Library
Parking Lot and raising fees.
City Manager Hooper informed Council there is little that is left
to try and cut. He went over the Council Promotional Activities.
(Attached)
Councilwoman Rhodes questioned why more is being spent in 2003
than was spent in 2002. City Manager Hooper commented on having
a lesser amount budgeted for FY 2003.
There was a brief discussion regarding why there was no employee
appreciation dinner last year.
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Councilwoman Lichter questioned the Council on Aging and Meals on
Wheels being the same thing. City Manager Hooper informed her
no. They described in a letter what the funds are used for.
There was a brief discussion regarding presentations made by
organizations requesting City funds. City Manager Hooper agreed
to get Council a copy of the letter from the Council on Aging
what the funds are for.
Councilwoman Lichter commented on the Volunteer Appreciation
Luncheon. She commented on places they are going to have to cut.
She feels the scope of 'this dinner might have to be cut to
something lesser. She is going to give some thought to the
Council on Aging and cutting the Volunteer Appreciation luncheon
to something recognizing them but maybe not a sit down meal.
Councilwoman Rhodes mentioned cutting out Volusia Days. Last
year it was completely mismanaged. Until they get it squared
away she doesn't feel they need to spend the money.
City Manager Hooper asked if there was a consensus. He went on
to explain the Council isn't really making decisions. They will
vote on something that will pass everything to the second public
hearing or they could cut some things. They aren't obligated to
make any of those final choices until the final public hearing.
Councilwoman Rhodes stated eventually they are going to have to
and suggested they start on it. City Manager Hooper stated what
he thought he heard was they are looking to cut $500 on Council
on Aging, $1,000 on Volunteer Appreciation and Volusia Days for
$375. Councilwoman Rhodes disagreed. She felt the Employees and
the Volunteers are the two most important items on the list. She
feels they should stay on that list.
Councilwoman Lichter stated it is her thought that the Volunteer
Luncheon can be cut. Councilwoman Rhodes suggested having hors
d'oeuvres and punch here in City Hall. Councilwoman Lichter
stated a recognition is the point.
Councilwoman Rhodes feels nothing needs to be on that list other
than the Employee and Volunteer Appreciation. She suggested
these both be cut to $500.
Councilwoman Lichter stated she thought SCORE was important.
Councilwoman Rhodes agreed but doesn't think we can afford it.
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Mayor Schmidt stated he thinks they need to go from here and keep
in mind that there is probably space where they can cut down a
little bit. He then spoke about the $375 for Volusia Days.
Councilwoman Rhodes suggested cutting out Vol usia Days and cut
everything else in half. Mayor Schmidt feels they can't forget
the progress and everything else that the City and County are
trying to make. Councilwoman Rhodes again suggested they cut
everything in half.
City Manager Hooper then went over the City Manager budget. He
mentioned cutting the travel and per diem from $2,000 to $1,000.
Councilman Vincenzi asked about books, publications & membership.
City Manager Hooper informed him most of that deals with legal.
Councilman Vincenzi asked about the communications item. City
Manager Hooper informed him that is telephones and pagers for
himself, Robin and Liz.
Councilwoman Lichter suggested making a certain percentage of a
cut on the whole budget. There was then a discussion regarding
each department cutting a percentage off their budgets in the
beginning. Councilwoman Rhodes questioned Councilwoman Lichter
if she was suggesting on supplies and other services in each
department be cut across the board a certain percentage.
Councilwoman Lichter stated yes. City Manager Hooper explained
in some areas you can't, such as small departments, which are
already at the bare minimum. He further explained they are at a
point where if you take something out, they could probably go
through page by page and he could probably show the Council
$50,000 to take out. Councilwoman Rhodes suggested cutting out
all capital until March at which time they can revisit it. City
Manager Hooper informed her you can't because some of the capital
you have to have. He further commented on the 1 mill increase
being temporary. He informed Council if they want they will come
back and address at the next hearing each of the capital items.
Councilwoman Rhodes then mentioned any capital outlays that come
from property taxes be put off for six months until they see if
the economy is better. Don't put any money into capital
expenditures for six months and don't raise the millage rate a
full mill.
Councilwoman Lichter feels that they have gone over this budget.
She would like to hear from the citizens which she feels will
help them make a decision.
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City Manager Hooper suggested he go through the budget and
highlight what he feels could be looked at reasonably, taken out,
moved around or postponed.
City Manager Hooper then went over the Finance Department budget.
He explained the cost of $5,000 for City Hall being open two
extra hours per day and there being a potential for that as a
trade off.
City Manager Hooper then went over the Planning and Zoning
Department with regard to the SR 442 corridor. There is
potential to delay that. He further described what this study
will do.
There was a brief discussion regarding borrowing a corridor study
from another City and revising it.
City Manager Hooper then went over cutting the Safety Awards.
Mayor Schmidt feels one accident the wrong way could cost a lot
more than that.
City Manager Hooper then went over the $4,000 savings in the City
Clerk Budget due to not having to have an election.
City Manager Hooper explained there isn't much to be cut from the
Other Governmental Services budget. He then went over the
Capital Outlay.
There was a brief discussion regarding replacement of the bucket
truck or renting or leasing one. Councilman Vincenzi feels this
is an expenditure they could put off for a little bit.
Councilwoman Rhodes asked if the file server could be put off for
another year. City Manager Hooper stated it probably could.
City Manager Hooper then elaborated on the Police Department
budget being scaled back. If push came to shove, the only thing
he could recommend would be some educational development costs of
about $5,000. Councilwoman Rhodes stated she doesn't think
anyone would want to compromise on public safety.
City Manager Hooper stated on the Fire Department budget again
the only thing he could recommend would be some educational
development costs. All of the Police and Fire capital has been
transferred all to impact fees which pay for that.
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Councilman Vincenzi asked for a quick summary of the operating
supplies. Fire Chief Barlow elaborated. Councilman Vincenzi
then asked about books, publications & memberships. Fire Chief
Barlow again elaborated. City Manager Hooper then pointed out in
years past both of those items were higher.
Councilman Vincenzi asked about the ice machine. Fire Chief
Barlow explained there was an arrangement made back in the early
1990's with the Association to replace the ice machine whenever
the Community Center was constructed.
City Manager Hooper then went over the Building Department
budget. Due to an employee from the Fire Department working in
the Building Department until March due to health reasons, they
will not fill that position until March so they can reduce that
budget by about $20,000.
City Manager Hooper then went over the Code Enforcement budget.
He referred to the Humane Society under Other Contractual
Services. He is very hesitant to do lower or reduce this amount
by that much until the City has a contract with somebody.
Councilwoman Lichter made mention of a compliment she received
from somebody regarding having a second Code Enforcement Officer
serving a very good purpose in their neighborhood.
City Manager Hooper spoke about eliminating one of the positions
of Animal Control Officer.
City Manager Hooper then went over the Public Works budget. He
feels there needs to be some continuance or maintenance for road
resurfacing. He then commented on the Public Works roof repair
being transferred to the Enterprise Fund, which results in a
$30,000 reduction to the General Fund.
City Manager Hooper stated there is nothing in the Parks and
Recreation Department budget that they can take. He spoke of a
majority of their Capital coming from grants and matching funds
that come out of impact fees.
Councilman Vincenzi asked about putting off the Whistle stop Park
playground equipment. Mayor Schmidt feels they are going to do
an injustice by putting too much stuff off.
Councilwoman Rhodes mentioned the foot bridge being put off for
another year.
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Councilwoman Lichter commented on the parks in Edgewater being
really used. She feels it is important for parents to have a
place nearby to take their children. She can not see cutting out
equipment that is overdue.
City Manager Hooper stated if he sums up everything he has talked
to Council about and said here is what could be cut, he thinks
they are talking of somewhere in the $50,000 to $70,000 range
depending on if they agree on these cuts. He recommended the
Council needs everything that is in the budget. He feels they
are essential items. They are trying to build the reserves to a
reasonable Charter limit.
Legal Assistant Matusick read Ord. 2002-0-14 and 2002-0-15 into
the record.
Councilwoman Rhodes feels if they cut out the bucket truck and
put in like $10,000 to rent a bucket truck as needed, then the
savings total up to $176,000, which is what will be taken over by
the insurance. In order not to raise the millage rate as much,
they need to cut more. She asked City Manager Hooper if he had
any more ideas. City Manager Hooper informed her no.
Mayor Schmidt opened the public hearing.
Ferd Heeb, 115 N. Riverside Drive, stated the Charter requires
the City to maintain a contingency reserve but he couldn't
remember the number. City Manager Hooper informed him it is a
range of 15% to 25% and they try to target 20%. We are at the
very edge of the 15%.
Mr. Heeb asked if the budget conform to the Charter in
establishing that reserve at the level that it should be. City
Manager Hooper stated no it doesn't, it is short a small amount.
Mr. Heeb doesn't think the budget can be passed because it would
not be in accordance with the Charter. The Charter says you will
maintain a range of 15% to 25%. The whole idea of it is when you
corne to the budget process you have to make a decision. If you
have too much money, you cut taxes. If you don't have enough,
you raise taxes. Every year should start with the contingency
reserve. He doesn't think they can pass this budget having
dipped into the contingency reserve and not reestablishing the
floor.
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Mayor Schmidt asked what dollar amount they would need to reach
the 15%. Finance Director Michele Goins Murphy stated
approximately $200,000. City Manager Hooper stated that is the
current dollar. When you look at the whole year, you will have
ups and downs. He commented on this being a difficult
calculation to make. The Charter reads it is 15% of the
operating budget of the General Fund.
Councilwoman Rhodes stated when they start the new budget year on
October 1st how much will be in the reserve fund. City Manager
Hooper stated he thinks they would be at $900,000.
Councilwoman Rhodes stated at the beginning of the year our
reserve should equal 15% of our operating budget and they don't
and they won't this year and he thinks Mr. Heeb is right. By
City Charter they have to.
Councilman Vincenzi stated it is in the Charter, which they have
to abide by. That is the only reason he would vote for the
millage rate to go up a full mill.
Mayor Schmidt stated before the next public hearing, whatever
cuts are made could they have them steered to get that reserve to
at least 15% before they were to okay on final reading.
City Manager Hooper stated yes they can do that. If they are
there he will announce that. If they are short, then he will
describe that. That will be part of the final disclosure at that
public hearing once they set the total dollars for the
appropriated budget.
Thomas Blanks, 1308 Willow Oak Drive, stated he received his tax
bill in the mail and he noticed it will be going over up $1,000
for a one year jump. When you are retired on a fixed income,
that is a lot of money at one time. He can't see how they can
justify that big a jump that fast. He then spoke of property
values going down. When he bought his land and built his house
he was in a no flood zone and now the bureaucrats in D.C. decide
he is in a flood zone which takes the value of his house away yet
his taxes still go up. He feels they should have a vote on this
matter and let the people vote on how much they are going to
raise it. Councilwoman Rhodes informed him that doesn't only
include Edgewater. Mr. Blanks then mentioned his taxes had gone
up $1,200 for Edgewater since he built his home.
Councilwoman Lichter suggested he speak to the tax assessor's
office. Mr. Blanks informed her he already had.
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City Manager Hooper explained what he is describing is an
increase in value because of the home being built on the
property.
Roy Reckleben, 606 Mooring Lane, stated he would like to make a
couple of general comments relative to the structure of this
meeting. This is the first public hearing on the budget. He
expressed concern with the mill rate going up 15 to 20%. Every
other taxing agency was plus or minus 2%. Edgewater made up 80%
of his increase. He feels the $500 for Meals on Wheels is not
going to change the tax rate. He feels the larger issue and the
point that was made was imposing an arbitrary cut may be the only
way to deal with the Council as leaders to decide what they want
as a rate.
Dominic Capria, 606 Topside Circle, stated he thinks City Manager
Hooper and the Council are doing a good job. He then spoke about
the increase in insurance. He isn't against the City employees
having a pension plan. Because the City invests in the stock
market and we lost in the stock market, the residents have to pay
for that loss. He feels this is unfair. He stated we are over
$800,000 that they have to pay this year into the pension plan.
He then spoke of Daytona Beach being in the same predicament. He
would like to see the reasons why Edgewater has to pay as much as
Daytona Beach when Edgewater doesn't have as many employees.
Mike Visconti, 316 Pine Breeze Drive, commented on City Manager
Hooper lowering his salary by 20%. If all the employees in
Edgewater took a cut for 10%, if it is possible, this is one way
of bringing this budget down.
City Manager Hooper stated that is impossible because of the
union contracts. He was able to do that because he isn't part of
the union and he is a contract employee. Those opportunities do
not exist across the board and he strongly opposes this.
Dick Park, 126 E. Connecticut Ave., stated he has lived in
Edgewater for 15 years. He stood before this management and
board quite a few years ago. He feels they take a lot for
granted for all the things they have given to them in this City.
He feels this is good news. When he picked up the paper on
Saturday and read about the $400,000 for a piece of ground for a
new City Hall. On Sunday he picked up the newspaper and it talks
about the increase. He hopes Councilman Vincenzi wins the
election but he hopes he loses the $100.
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Mr. Park feels before a new City Hall is considered he feels the
taxpayers of the City should know how much area is needed. He
suggested a feasibility study and preliminary drawings of both
the existing and the new and the locations. He commented on the
land the City purchased at Turgot and u.s. #1 this past year. He
commented on parking being a problem in this area. He suggested
they move the tennis court and shuffleboard court down to Turgot
and u.s. #1.
Mr. Park stated before he retired he was a building and ground
superintendent for a large school district in Pennsylvania. He
commented on having a $6 million budget per year that he started
in January and had to have finished by July 1st. In that time,
he kept cutting only because the secretary treasurer of the
school district told him he had to cut $1 million, take it or
leave it.
Councilwoman Lichter clarified there would be a vote on a new
City Hall so the residents would have every opportunity to vote
on that when the time comes.
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Matthew Negedly, 3038 Silver Palm Drive, feels the Council is
doing the right thing. He rises in favor of this budget and
feels sometimes growth hurts. He told the Council to stop the
bandaid approach. He feels proper vision and proper planning is
going to get us to the right place. He feels a lot of these
questions would be answered already with a City Master Plan and
Strategic Plan outlining goals. We don't have any of that.
Mr. Negedly then spoke of a fire on Queen Palm Drive where two
non-firefighters had to participate in the firefight. He
encouraged the City not to compromise on public safety. He feels
the manning needs to be increased in the Fire Department. He
urged the Council not to take the education and Police money. He
feels the return on the investment will be great. He stands in
favor of this budget.
Mayor Schmidt closed the public hearing.
Councilwoman Rhodes stated if we increase the millage rate by 1
mill, they will still have to make these budget cuts in order to
make up for the insurance. Councilman Vincenzi stated that still
doesn't take into account increasing the reserve fund.
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City Manager Hooper stated what Council has in front of them is
not a balanced budget which they will have when they give him
direction tonight over where they are headed with the millage.
When they get to the second public hearing, there will be the
sufficient amount to meet the Charter requirements. As soon as
the Council tells him the millage number, they are going to
correct the budget and make the necessary changes.
Councilwoman Lichter stated if they go along with the figure City
Manager Hooper has been working with and a miracle happened in a
week, then he would tell them where they are next week.
City Manager Hooper informed Council their role tonight is to
give him direction on what they want to do. If they can live
with the millage he is proposing, they will tell him that is the
number. The rest of the issues that have to be balanced, that is
his job in the next week to come back to Council and present that
number balanced next Monday night.
Councilwoman Lichter stated for eleven years she has followed
these meetings. With no reflection against those who served
before them, there was a lot of cutting or standing still or not
doing things in the way past that they have been trying to catch
up with. There was such a tightness of money usage that she
feels the City didn't progress each foot along the way. She
feels some of what we are seeing this year and last year is
trying to catch up with the 21st Century.
Councilman Brown feels they are going to have to raise the taxes
to the 6.95 mills to be able to cover the needs to the City. He
doesn't see how they can lower the taxes. He is going to go with
the 6.95 unless they can knock the percentage down for the
insurance next week.
Councilman Vincenzi stated he doesn't see any way of not raising
it either. At the last meeting he was the one that didn't want
to set it at the 6.95. He feels the responsible thing to do is
stop burying your head in the sand and do what needs to be done
to keep things going properly but he feels that doesn't mean they
can't cut some more.
Councilwoman Rhodes feels one of the most important jobs they
have is being good stewards of the public's money. Whether they
have to raise the millage rate or not, her philosophy is she
doesn't want to pay $1.50 for something if she can pay $1.
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Councilwoman Rhodes further stated she thought she had it figured
out where they could have a millage rate of 6.75% and then the
insurance was mentioned so that went out the window. Her hope is
that between now and next week that they can find a good
insurance company that will sell us insurance at a lower price
and then maybe they can come out of this with a lower millage
rate. If they can't, the cost of doing business right now is
6.95 mills and that is what she would have to vote for.
Mayor Schmidt mentioned the top 10 list and asked if they have
that. City Manager Hooper informed her he did. (Attached)
Mayor Schmidt then asked if everyone would agree that at this
point in time Edgewater is a pretty good city to live in. He
mentioned money that was spent in the last year that was not
budgeted. He then spoke about the museum and the Leisure
Services Department previously being located at the old Mama's
Deli. He spoke about the 26-acre park still being developed that
will be the ultimate showcase for us.
Mayor Schmidt stated he has lived in Edgewater for 22 years and
he has seen it sit still for a lot of years and he has also seen
past Council's take big steps which ultimately cost them their
political careers because they wanted to see this City move on.
A couple of months ago he said he didn't want to see taxes go up.
He can't stick to that right now. He knows over the next year he
will push the department heads to cut as much as they possibly
can. In the three years he has been in office, he has gotten a
reality check on union workings and what things really cost.
Unfortunately those costs keep going up and up. He is proud to
live in Edgewater and he is proud to sit on the Council with this
group of people that sometimes have to make decisions they don't
want to. He stated Edgewater is moving forward and taking steps
and he doesn't want to see it stop. He then spoke about the small
contribution for Volusia Days and the meetings they attend that
cost a little bit of money.
Ord. 2002-0-13, amendinq the City Budqet for the Fiscal Year
endinq September 2002
Councilwoman Lichter moved to approve Ord. 2002-0-13, second by
Councilman Vincenzi. The motion CARRIED 5-0.
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Ord. 2002-0-14, adoptinq final millaqe rate of 6.95 mills per
$1,000 of assessed taxable value
Councilman Brown moved to approve Ord. 2002-0-14, second by
Councilwoman Rhodes. The motion CARRIED 5-0.
Ord. 2002-0-15, adoptinq final budqet for fiscal year 2002/03
Councilman Vincenzi moved to approve Ord. 2002-0-15, second by
Councilwoman Lichter. The motion CARRIED 5-0.
Councilwoman Rhodes asked if this is adopting the budget without
any of the budget cuts. City Manager Hooper stated they aren't
officially doing anything except moving it to the second public
hearing.
City Manager Hooper announced the next public hearing will be
held next Monday at 7 p.m.
ADJOURNMENT
There being no further business to discuss, Mayor Schmidt
recessed the meeting for ten-minutes. The meeting recessed at
8:35 p.m.
Minutes submitted by:
Lisa Bloomer
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CITY COUNCIL
PROMOTIONAL ACTIVITIES
V olusia Days $375
Score 1 , 125
Mediation 100
Project Graduation 500
Scholarships 1,000
Employee Appreciation 1,000
V olunteer Appreciation 1,000
Meals on Wheels 500
Retirement Plaques 375
Council on Aging 500
F:\notes\ccpromoti onal
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BUDGET ITEMS
Roof Repairs - Public Works $ 20,000
Building Position - 6 months 20,000
Elections 4,000
Safety Awards 11 ,000
Education/Training - PoliceIFire 8,000
Corridor Study 60,000
Promotional Activities 7,000
Hours of Operation - City Hall 5,000
Resurfacing 100,000
F:nOles\budgelilerns