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CCMtg05-11-10Min LONGWOID CITY COMMISSION ON Longwood Community !6;uulldinng 200 West Warren Avenue Longwood, Florida WORK SESSION MINUTES MAY 119 2010, 500 P.M. Present: Mayor John C. Maingot Deputy Mayor Joe Durso Commissioner Bob Cortes Commissioner H. G. 6 tuteh Ibunndy Commissioner is ;Han De Sackett • Katrina Powell, City Administrator Sarah M. Mirus, City Clerk Jon Williams, Director of Financial Services Tom Jackson, Police Chief Fran Meli, Director of Leisure Services Sheryl :tower, Director of Com nunnity Development John Peters, Director of Public Works /City Engineer Anthony Stravino, Fire Chief Patrice Murphy, Assistant to the City Administrator CALL TO ORDE "' , Mayor Maingot called the meeting to order at 5:00 p.m. 2. DISCUSS THE FISCAL YEAR 2009/2010 tUDGET. Ms. Powell said this was the mid -year update on the Budget. She stated to ask any questions as they go along, and there would be an opportunity for questions following each section presentation. Mayor Maingot thanked the City Administrator, Ms. Powell and everyone involved in putting together this document. He said it was very informative and provides a unique opportunity to analyze where the City is, but also to envision where they may be in the next few months. Mr. Williams said this was a mid -year Budget update and was a snapshot of the Budget and the financial activity performance of the City as of March 31, 2010. He stated he would be doing a recap of the Fiscal Year 2010 Budget and discussion on fund activity. Two of the items added were last year's activity and the prior year's activity at the same point in time for comparison and to provide a good representation of what is going on with the trends in revenues and expenditures. IIe said the Fiscal Year 2010 Operating Budget was approved with CC 05 -11- 10/139 total revenues of $26.5 million. He reported that in comparison to Fiscal Year 2009 the revenue projections were down a little over $2.8 million and in comparison to Fiscal Year 2008 they were down approximately $4.6 million. He reviewed the Budget Revenues and Appropriations by Fund type. Mr. Williams reviewed the General Fund and said the General Fund was the primary operating fund of the City. The total budgeted revenues are $13.8 million, of which taxes make up 66.2 %. He stated the total revenues as of March 31 were $8.3 million which represents 60% of the total budget for the current Fiscal Year. The total budgeted expenditures were in excess of $15.3 million and he advised the actual expenditures as of March 31 are $6.6 million or 43.2% of the total budget. He said this was a clear indication of what will be described in terms of cost savings for the first half of this budget year. He reviewed the year -to -date General Fund Revenues and the prior year comparisons. Mayor Maingot said he went back to 2007 and at this point there should be 88% of the ad valorem taxes in. He reviewed percentages for prior years and said there was a big difference for what the trend has been for prior years and where we are today. Mr. Williams said one of the things important to point out is that when looking at the 2008 and 2009 actual revenues for those fiscal years, all of the assessment revenues were coming into the General Fund and being booked in the ad valorem taxes. He stated at the start of this fiscal year, they went back and changed how they currently recognize the revenue and recorded it in the appropriate funds. Mayor Maingot said his real concern was when they come to the end of this review and what it will be looking like six months from now. Ms. Powell said it has been the trend for the City that a lot of the ad valorem tax revenues come in during the month of April. This is when tax certificates start to be sold. She stated this is not reflected through the end of March and they will see this increase. Commissioner Sackett suggested that Mr. Williams present through to the question page and potentially some of the questions may be answered during the presentation. Mr. Williams advised that since preparing this presentation, the City has received an additional $500,000 in ad valorem tax revenues. He said as the trend goes we should receive additional distributions. He continued to review the General Fund Revenues`IHe stated in preparing the Budget last year, they took a more conservative estimate. He said they anticipated funds from red light cameras that have not materialized and recent Legislative action will limit the City's ability to generate revenue. He advised the interest earnings are lower than anticipated. CC 05- 11- 10/140 Mr. Williams reviewed the General Fund Expenditures by department and the total year -to -date expenditures are at $6.6 million or 43.2 %. In comparison, the City has spent $1.7 million less than in 2009 and $1.3 million less than in 2008. - He reviewed the expenditure variances for the fund balance. He went over the encumbrances versus the expenses by department. The total encumbrance reserve at September 30, 2009 was $335,775 and the City has spent to date $66,770 of this amount. He stated for Capital Equipment and Projects $724,558 was budgeted and the total expenditures as of March 31, 2010 . is $217,240. He explained that $80,1:87 of the total capital expenditures are related to the Police Department's Justice Assistance Grant (JAG) and is currently being reimbursed. He said the major project not started for this, year is the Reiter Park Improvements of $500,000. He reviewed factors to consider for the remainder of Fiscal Year 2010 including City staff to take over various contracts for ball field maintenance, right -of -way mowing, and other services. - Commissioner Sackett inquired as to what the plan was for red light cameras in this area. Ms. Powell said the last meeting with the vendor that provides the red light cameras was before the Legislature action. Deputy Mayor Durso said Governor Charlie Crist hasn't signed the bill yet, but according to the Florida League of Cities the original plan of placement along State roads will go forward. Chief Jackson said AAA was going to ask Governor Crist to veto the bill. He reviewed the fine and how the money was to be distributed. He did not anticipate any income from this project for this year. Commissioner Sackett said he would like to see an analysis of the costs for the contracts the City takes over. Discussion ensued regarding public safety and red light cameras. Commissioner Bundy said while the red light cameras were going to produce revenue, he understood that this was a public safety issue. Ms. Powell advised they needed to reflect as to why there was a discrepancy in the fund since revenue had been budgeted and no money collected. Deputy Mayor Durso said they supported this as a public safety issue and the number of reduced crashes due to red light cameras. Chief Jackson said safety was the focus of why they approached this to begin with. In reality, the cameras produce revenue and this was not happening. He stated the ones that produce the highest volume had to be on State right -of -ways and they couldn't acquire a right -of -way. He said each time they tried to focus on CC 05 -11- 10/141 an area to get these cameras installed, they were moved back either by the inability to obtain right -of -way or a construction zone in the area they were trying to locate the cameras. He reiterated the focus has been traffic safety. Commissioner Bundy said he did not want the City to lose sight of this matter. He stated as long as the revenue generated our cost and it reduces an accident, it was well worth it. He inquired if the City had taken over the meter reading. Mr. Williams said as of April 1, 2010 the City took over the meter reading services. Ms. Powell said when the Public Works Director /City Engineer, Mr. Peters started meeting with staff and it was determined that the City could take over some of these contracts without hiring additional personnel. She reviewed the various areas the City has taken over or will be taking over. Deputy Mayor Durso left the meeting at 5:47 p.m. and returned at 5:49 p.m. Mr. Peters said there were two major seasons for Public Works. He reviewed the areas of work that would be done during the winterseason and summer season. Commissioner Cortes said the companies that install the red light cameras cannot charge per ticket with the new legislation. He discussed the revenue funds and inquired if there was any way to move the money to obtain a better yield for the remainder of the six months. Mr. Williams advised all of our revenues have to be consistent with public depositors. He said they were in contact with the bank with regards to various options. Commissioner Cortes inquired if the Commission could be provided an update following the next large deposit from the ad valorem taxes. Mr. Williams responded in the affnrnative. Mayor Maingot said there was a tremendous abuse with regards to handicap parking and suggested some attention or effort be placed in this area. He stated observations were made earlier with regards to City staff taking over various contracts. He said many have been very efficient and referenced the ball fields. He stated in his opinion we don't have the people who are competent in all of the areas of work. He said he wanted to make sure the people we have know what they are doing and use the equipment properly. He stated they need to spot check the equipment to make sure it is maintained properly. He said it was good to say we were going to save money, but he wanted to see comparison figures to show the cost savings. CC 05 -11- 10/142 Ms: Powell advised the salary and benefits were in the Budget for each specific department. She said the equipment costs were also in the Budget. She stated they were already paying the employees and the contractor amount was being eliminated and this was where the savings occurred. Commissioner Sackett said they would like to see the information puttogether to show the savings by doing this in- house. Commissioner Bundy discussed hiring contract employees versus in- house employees. He said when they contracted a lot of this work out they were under the impression that employee positions were going to disappear and this did not happen. He stated they just want to make sure that once the City takes over these contracts that they are competent, qualified people. Mr. 'Williams reviewed the Public Utilities Revenue and stated the total budgeted revenue was $3.3 million. He said the actual revenue as of March 31, 2010 was $1.31 million or 39% of the total budget. The total expenses for the Utilities Fund are $3.72 million, Operating Expenses is 55.6% of that, Capital Equipment and Projects 26.3 %, and transfers out to the General Fund is 1'7.6% o. He reviewed the year -to -date revenue and the comparisons for 2009 . and 2008. He went over the Public Utilities year -to -date expenses and the 2009, 2008 comparisons. He advised the expense categories are within budget. He reviewed the encumbrances with a total of $285,644. Commissioner Cortes inquired if the money for the contracted meter reading would be transferred into the General Fund. Mr. Williams explained how they would adjust the amount based on the savings. Commissioner Bundy inquired as to when the Ordinance regarding the utility rate increase was going to be addressed. Ms. Powell said they could bring this Ordinance forward when the Commission desired. She stated it was their understanding the Commission wanted to approve a three year rate increase. However, the Ordinance that was signed was for one year. Commissioner Sackett inquired when water restrictions were switched to once a week how much of a decrease there was. Mr. Williams said he would have to go back and look at that point in time to calculate the difference. Discussion ensued regarding consumption and how it is affected. Mr. Williams reviewed the Stormwater Fund. He said this was a special revenue fund used to account for the stormwater fees, drainage improvements and CC 05- 11- 10/143 projects. The total budgeted revenues are $687,000 and of that 97.8% is made up by stormwater fees. He advised that as of March 31, 2010 the actual revenue was $336,926 or 49% of the total budget. He said the Stormwater Fund total expenses were $645,404 and of that Operating Expenses were 81.5 %. As of March 31 the actual expense was $132,442 or 20.5% of the total budget. He reviewed the comparisons for 2008 and 2009. He stated inspection fees, which are derived from new construction, are down due to the economy and the investment income is also impacted, as it has been with other funds as well. He advised that all expense categories are within budget. He reviewed the Stormwater Fund encumbrances and said the encumbrance reserve on September 30, 2009 was $40,326. He said during the Budget process the capital projects were deferred to Fiscal Year 2011 pending completion of the Stormwater Master Plan. He stated factors to consider for the remainder of Fiscal Year 2010 would be an ongoing economic recession negatively impacting revenue estimates for the remainder of this and the next fiscal year, an unforeseen natural disaster such as a hurricane, and City staff taking over various contracts. Commissioner Sackett inquired when this Stormwater Fund would sunset. Mr. Williams advised it was proposed to sunset October 1, 2014. Deputy Mayor Durso left the meeting at 6:48 p.m. and returned at 6:50 p.m. Commissioner Sackett inquired about the gate at Island Lake North that has been broken for over a year and the lake has no water. Mr. Peters said the gate requires a permit through St. Johns Water Management and he has talked with Pegasus Engineering to make sure that is an early component of their work. Commissioner Sackett inquired how many projects have been delayed this year due to the Master Plan. Mr. Peters advised that Orange Avenue and Credo to Highland Improvements were the only projects scheduled this year that were deferred. Commissioner Bundy left the meeting at 6:52 p.m. and returned at 6:54 p.m. Mayor Maingot said the forecast was for a very active hurricane season. He stated we have enough knowledge, with or without the Master Plan, of where our traditional problems have occurred. He said it would behoove the City to go to those areas to check on them, including the areas the County cares for. Mr. Peters advised that part of their plan was to visit every inlet and pipe between April 15 and June 15 CC 05 -11- 10/144 Deputy Mayor Durso said his neighborhood was in a low lying area.and he was very supportive of providing the tools needed by staff to do their job. He stated the Longwood Canal that the County maintains is near this area. IIe said he would like to see a formal agreement with the County to have them paying more attention to this canal. Commissioner Sackett left the meeting at 6:57 p.m. and returned at 6:59 p.m. Commissioner Bundy said a few years ago the City talked with the County and they were willing to give the Longwood Canal to us. He stated it was an extra expense to take it on, but he would rather see it under the City's control. Discussion ensued regarding issues with the Longwood Canal. Mr. Peters said the City needs information before going further with this matter. He stated this type of facility off of County Road 427 should have a twenty five . year storm capacity and it should be overlaid and relieved to one hundred years and neither was there now. He reiterated the City needs more information before considering taking on this responsibility. Mr. Williams reviewed the Public Facilities Fund and explained it is a capital projects fund used to account for the activities associated with street paving and the dirt road reduction program. The total budgeted revenues are $1,453,000 and of that the 10 Local Option Sales Tax makes up 68.8% and the Local Option Gas Tax is 27.3% o of the Fund. He said actual revenue as of March 31, 2010 is $347 or 23.9% of the total budget. He stated the total budgeted expense was $968,600 with the majority of 96.7 % in Capital Projects. He advised the actual expense as of March 31 was $509 or .05% of the total budget. He explained the revenue. variances and said one variance was a change in Special Assessments with the fees being recorded in the appropriate Fund when received as opposed to the General Fund. He reviewed the expenditures and said all expense categories were within budget. He went over the encumbrances and said as of September 30, 2009 there was a total of $958,475 in encumbrances that were commitments . related to unperformed contracts for goods or services. Commissioner Bundy said in the past the sales tax has increased in the summer and inquired if they anticipate this same trend. Mr. Williams said he thought you would see that increased trend. Discussion was held regarding the City getting reimbursed from the 10 Local Sales Tax for a portion of the cost on completed projects. Commissioner Cortes said the future of some of the fees relies heavily on the. Gas Tax. CC 05- 11- 10/145 Ms. Powell said that was some of the discussion taking place now with regards to extending the sales tax option. She stated depending on how they structure that, it could impact the City tremendously with regards to the paving of our streets. The Commission recessed at 7:30 p.m. and reconvened at 7:39 p.m. Mr. Williams reviewed the Special Assessments and said this was a special revenue fund used to account for the capital and maintenance neighborhood improvement program. He stated the total budgeted revenues were $74,500 and as of March 31, 2010 the actual revenue was $69,568 or 93.4% of the total budget has been collected. He said the total budgeted expenses were $45,500 of which 78% were Operating Expenses. The actual expense as of March 31 was $14,035 or 30.8% of the total budget. He reviewed the snapshot of the revenues and comparisons to 2008 and 2009. Again, he stated the fees were being recorded in the appropriate fund when received. He reviewed the expenditures for the Special Assessments and said all expense categories are within budget. Discussion ensued regarding the Neighborhood Improvement Maintenance and associated fees. Mr. Williams reviewed the Law Enforcement Trust funds that has total revenue of $10,500, of which 95.2% are from confiscated property and 4.8% from interest earnings. He said the total budgeted expense was $29,000 and 100% was from the Operating Expense. He reviewed the Police Education and said this was a special revenue fund used to account for police officer training and education. The total budgeted revenue is $9,500 and actual revenue as of March 31 is $6,135 or 64.6% of the total budget. The total budgeted expense is $42,700 of which 91.3% is Operating Expenses. The actual expense as of March 31 is $19,136 or 44.8% of the total budget and all expenses are within budget. Mr.. Williams reviewed the historic District Fund which is a special revenue fund used to promote historical resources and to account for the preservation of the Historic District. The total budgeted revenues are $4,700 of which 95.7% is from Special Event Fees. He advised the total budgeted expense was $27,000 with Operating Expenses of 25.9% and capital projects of 74.1 %. The actual expense as of March 31 is $4,600 or 17.0% of the budget and all expense categories are within budget. Mr. Williams reviewed the Cemetery Fund. This has a special revenue fund used to account for the operation and maintenance of the cemetery. The total budgeted revenues are $26,300 with actual revenue as of March 31 of $6,451 or 24.5% of the total budget. I -1e explained that 95.1% is from cemetery lots and 4.9% from interest earnings. The total budgeted expense is $8,500 with Operating Expenses • of 76.5% and 23.5% in reserves. He said pre - planned purchase of burial plots has declined in comparison to previous years. He stated all expense categories are within budget. CC 05- 11- 10/146 Mr. Williams provided a recap of the presentation for the General Fund, Stormwater, Special Assessments, Police Education, Cemetery, Public Utilities, Public Facilities, Law Enforcement Trust, and Historic District Funds. Mayor Maingot said this was an extremely well prepared document and very informative. He stated the Commission has been able to express areas of concerns. Ms. Powell said if the City continues with the current conservative spending patterns, the City should be in good shape. She stated to keep in mind there are projects that are going to be started, but these were all budgeted. • Deputy Mayor Durso said he was a big proponent of open budget processes. He stated he appreciates the information being provided. Commissioner Cortes said a lot of work and effort was put in this and they are all watching expenditures. He stated they are hoping to come out of this at the end of the Fiscal Year with money in their pockets. Commissioner Bundy said he has expressed concerns about issues. He stated the City was in good shape and staff has earned a pat on the back. He thanked everyone for their hard work. Commissioner Sackett said he appreciated the effort and the information being provided. He stated he sees a compassionate staff and this was a group that was determined to do what was best for the City and he has more of a comfort level. Ms. Powell thanked the Commission for herself and staff for their vote of confidence. She said they do work hard and have a lot of compassion for the City. She stated they will still be able to complete projects and have a good budget at the end -of -the -year. 1 ADJOURN. Mayor Maingot adjourned the meeting at 8:18 p.m. A 4 r1 fr " John CoM sl or Sarah M. Mill us, MMC, M (i>A, City Clerk CC 05- 11- 10/147 This Page Left (u llank Intentionally. ionalllly. CC 05- 11- 10/148