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08-19-1983 - Workshop 0; (J u CITY OF EDGEWATER FY83-84 BUDGET WORKSHOP August 19, 1983 CALL TO ORDER Mayor Ledbetter called the workshop to order in the Community Center. ROLL' 'CALL Mayor David Ledbetter Councilman Melbourne Wargo Councilwoman Gigi Bennington Councilman Neil Asting Councilman Jack Spencer City Clerk Connie Kinsey Present Present Present Excused Present Present Also present: Karen Rickelman Mayor Ledbetter announced a message from Attorney Alvarez for the Council to remain until he arrives. City Clerk Kinsey stated she and Mr. Copeland and Mrs. Rickelman have all gone over the Refuse budget. She explained the procedure followed to determine the revenue figure. Councilman Spencer did some further calculating. The refuse collection fees = $202,716 Refuse Franchise Fees includes the payment from Triangle Refuse Company, which is so small it is not worth figuring. Miscellaneous Income is for extra refuse pick-ups, the figure being $1,600. The estimated total of revenue = $204.316. City Clerk Kinsey explained to the Council that she and Mr. Copeland discovered there are two employees included in the Refuse salary category, who actually should be in the Street Department budget. There was discussion at this time regarding the salaries charged to the_Refuse Department. Mr. Copeland explained that his men are moved from Refuse to Street continually, depending on where the work is needed. It was agreed to average out,as best can be done,the time spent in both departments and adjust the salary figures accordingly. If an adjustment needs to be made in the Street Department, we will have to go back and do so. The Council went down the list of employees with Mr. Copeland, determining what department each should be charged to. Mr. Copeland took this information to City Hall to have the payroll clerk calculate the salary and benefit figures. At this time Mr. Terry Wadsworth began discussing his budgets with the Council. Mayor Ledbetter questioned the charges for fire hydrant rental. His opinion is that the subdivision owner should pay rental, just the same as the Fire Department does. Councilman Spencer questioned the figure for the utilities. Mr. Wadsworth and Mrs. Kinsey both informed the Council of the conversations they had with Florida Power & Light in order to corne up with this figure. Mr. Wadsworth explained there is an audit adjustment in both the water and sewer budgets, which has to be taken into consideration. o Q Councilwoman Bennington questioned the $10,000 figure in 1983 compared with the $35,944. figure in 1982 under Interest on Investments. Mr. Wadsworth explained some of that money was expended on pur- chasing water pipe, improvements to the water plant. There was a question regarding the Penalties. Mr. Wadsworth ex- plained this is strictly for the shut off customers, who pay a penalty. There are quite a number of them. At this time Attorney Alvarez arrived. Councilman Spencer commented that he is in agreement with the work Mr. Wadsworth has done; Councilwoman Bennington agreed. Mayor Ledbetter called for a recess of the present conversation to discuss with Attorney Alvarez. Attorney Alvarez reported to the Council that through phone con- versation with Mr. Carter he has discovere~ .a,default has been filed in the Caldwell ~uit., As explained, there was a verbal agree- ment between Attorney Alvarez and Attorney Henderson regarding a time delay in contacting the insurance company for the necessary information. Apparently Attorney Henderson filed the default paperwork, without any notification. Attorney Alvarez added that this is obviously a disregard of every professional courtesy,that as a member of the bar, he has ever seen. He explained that he will have to become a witness to testify as to the events that led up to thediscovery of this yesterday. He would like to recommend a firm in Orlando to handle this for the City. Attorney Alvarez reiterated the events from the beginning of the suit notice to this date. He added that although there is evidence of an ethical conflict exists in this case, however it is his atti- tud~ that he will not attack a fellow attorney. He could gather all of the material and throw it to the Ethics Committee, however he did not do that. He will, however, be a witness to bring all the facts out in the open, and the Council will have to have some- one else represent the City. His recommendation is Pitts, Eubanks and Ross from Orlando. Councilman Spencer commented it is understandable and certainly the Council should take action as soon as possible regarding the representation for the City. Mayor Ledbetter asked if after the default matter is taken care of, can Attorney Alvarez go back in and represent the City in handling the case? Attorney Alvarez answered he will. continue to litigate the case after the default matter is over. Councilman Wargo he does question and then less than Council. added he has no questions about this particularly, the ethics of an attorney representing the City back to represent someone else against the City one year regarding action taken during that time by the There was further discussion with Attorney Alvarez regarding this situation. Mayor Ledbetter poled the Council for a date to hold a special meeting for the purpose of authorizing representation for the City. -2- o o The Council now continued the budget preparation with Mr. Wadsworth They were in agreement with the Fund 40 revenue figures. Moving on to Fund 42 revenues, Mr. Wadsworth explained this is basically set up for the low pressure sewer system, unappropriated retained earnings is merely the money we have that we have made over pre- vously years to pool to fund this project. He went on to explain this is not part-of the general operating and maintenance costs, it is a separate project;which is why it is not combined with the regular budget. Mr. Wadsworth answered some questions regarding the low pressure sewer system project, explaining what some of the expenses will be. He added that this system will be monitored for effect to see how compatible it is and what effect it does have on the treatment. He is optomistic about the project, but it will be monitored closely. He would like to have City Attorney Alvarez review the paperwork that was previously drawn up regarding this, however. Continuing on to Fund 44 revenues, there were questions regarding the increase from last year's figures. Mr. Wadsworth explained his method of calculating his figures. There was discussion regarding the lift stations and their conditions. Councilman Spencer asked several questions pertaining to the structural makeup of the stations and the sewer pipe sizes, which Mr. Wadsworth explained. Mr. Wadsworth commented there are other. expenses, which he will bring reports back to the Council, however he would like money put in the budget for consideration. Water Department expenditures: This is actually the Water plant expenses. The first item discussed was the difference in the salary category, which Mr. Wadsworth explained was due to the fact the City Manager's salary had been in his budget, plus all the benefit costs. Mr. Wadsworth explained a lot of the differences between last year's budget and this year's is due to the fact last year was the first time with Field Operations and Water Plant budgets. There were some expenses charged erroneously until middle way through the year and there may not be a true picture of the ex- penses. At this time the Council was interrupted by Mr. John Gross, who read a letter to them regarding Riverside Drive and the owership. Councilwoman Bennington questioned the building expense. Mr. Wads- worth explained they plan to erect a cement block structure for storing paints and chemicals; flamable materials. There is no room to store these items at the present plant. Councilman Spencer questioned machinery and equipment. Mr. Wads- worth listed the pieces of equipment he plans to purchase, (1) a turbidity monitor for Filter #2 = $1,100; (2) a printout for the two monitors on the two filters = $600; (3) pressure cleaning equipment = $1,800; It was explained the cost of this is also included in the Wastewater budget and Mr. Wadsworth stated for the record he is willing to share this piece of equipment with the other departments as long as it is cared for properly. (4) lab equipment replacement = $1,000; (5) replacement of the monitoring equipment for the gallonage in the clear well at the plant = $1,500. Councilman Spencer suggested, at this time, that when the Council holds the public hearings on the budget, the department heads should be requested to attend. Also, City Clerk Kinsey ~equested the Council authorize Mrs. Rickelman's presence also, since she has done so much of the work. -3- o o There was discussion of another employee being added to the budget. Mr. Wadsworth stated this is a laborer position and the salary is divided between Water and Field Operations. Councilman Spencer reminded the Council that these salaries are all based on last year's salaries and will have to be adjusted according to the pay increases for this year. At this time there was discussion regarding the proposed pay scale and the problem there seems to be with it in regard to the negotiations that are going on . *Water Field Operations expenses: It was agreed to pullout $350. from operating supplies, which was for uniforms. This amount was added to improvements other than buildings. Machinery and equipment includes a new vehicle (truck) and a new golf cart for meter reading and a trash pump. A tapping machine is also needed. A radio will be needed in the new truck. Mr. Wadsworth explained the Principal, Interest and Other Debt Service Costs categories are the bond issue and have to be put in the budget for fund expenditures. Wastewater Department expenses: The machinery and equipment breakdown is as follows: $1.,750. is half of the pressure cleaner, $2,200. is for lift station monitoring equipment, $1,100 is for a chlorine gas detector at the wastewater plant,$1,400 is to replace the dissolved oxygen meter at the wastewater plant. Mr. Wadsworth explained that we have never budgeted the deprecia- tion expense, this is per audit recommendation. He commented that if the auditors are going to take a depreciation figure out at the end of the year, then he agrees on budgeting for it on a monthly basis, rather than altering the financial picutre at the end of the year. This figure is divided in Water and Wastewater. There was discussion as to how this depreciation is handled. Mr. Wadsworth explained that Mr. Kish informed him that other cities take this depreciation money and place it into a renewal and replacement fund. He added this is something that should be looked into. City Clerk Kinsey informed the Council that this is one of the questions she has on a list to discuss with the City Attorney and the auditors. Mr. Wadsworth spoke to the Council regarding instructions from D.E.R., on inflow and infiltration, explaining that something has to get started on this problem. Councilman Spencer made a suggestion for the next year's budget preparation that there be a column showing the present year's usage or estimated usage if necessary, rather than the figure that was budgeted. He would also like to be given any written information regarding the proposals ahead of time and then corne to the table to discuss the figures. Mr. Wadsworth read a memo to the Council, which he will be giving them copies of, regarding his budget as proposed being sufficien~ however not being over abundant in case of emergencies. He sug- gested the Council consider a rate increase. The Council will have to determine what amount and kind. He gave a brief run down on three options, giving his opinion as to the one he prefers. *Correct title is "Field Operations". -4- o o The Council questioned the funds received from the impact fee which was recently raised. Mr. Wadsworth explained the impact fee money is mainly used for plant expansion or a major com- ponent part. You can't buy water lines or the like with this money. The last rate increase was imposed in either 1978 or 1979. Mr. Wadsworth pointed out when the plant was built, the engineers and auditors at that time recommended that the water rates would be increased every two years. This has not been done. His feeling is perhaps this year the budget could get along without an increase, however then next year an increase will certainly be necessary. Councilman Spencer spoke that he would like to have more time to study Mr. Wadsworth's notes and suggestions before he addresses the topic of rate increases. Mayor Ledbetter commented on the subject of depreciation, that the plant is worth a lot more today than it was when it was built. He does not understand the depreciation amount, when something increases in value over the years. Council thanked Mr. Wadsworth for his presentation. Public Works City Clerk Kinsey asked to reserve the right to review these figures herself; the salary figures. Mr. Copeland talked to the Council regarding the charges from Tomoka Refuse, under Other Contractual Services. Gas, Oil and Diesel: The figure was adjusted to $19,000. Operating Supplies: $2,500. Improvement Other Than: $-0- Machinery & Equipment: $-0- City Clerk Kinsey reminded the Council there has to be a figure put in for depreciation. The last rate increase was imposed in 1981. This increase was a total of $1.00, 50~ of which was put in reserve for the garbage truck. Councilwoman Bennington suggested it may be time to consider another 50~ increase. City Clerk Kinsey figured an increase of this amount would bring in approximately $22,524.at the rate of customers we presently have. Councilman Spencer brought up a system that was in the news recently regarding automated trash pickup. Councilwoman Bennington stated that until we get the correct payroll figures we can't really make any more adjustments. She made a motion to adjourn, being seconded by Councilman Spencer. Meeting adjourned. Minutes submitted by: Debbie Sigler -5-