CCMtg08-06-10Min LONGWOOD CIETY COMMISSION
JLongwvood City Commission Chambers
175 West Warren Avenge
Longwood, Florida
WORK SESSION
MINUTES
AUGUST 6, 20110
9:00 A.M.
Present: Mayor John Co Maingot
Deputy Mayor Joe Durso
Commissioner Lob Cortes
Commissioner H.G. "Butch" Bundy
Commissioner rian Sackett
Katrina Powell, City Administrator
Jon Williams, Dirreirtor of Finance
John Peters, Director of Public Works /City Engineer
Troy Hickson, Acting Chief of Police
Sheryl Bower, Director of Community Services
Fran Meli, Director of Leisure Services
Patrice Co Murphy, Acting Deputy City Clerk
Michelle Longo, Acting Assistant to City Administrator
Absent: Sarah M. Minas, City Clerk (Excused)
>la CALL, TO ORDER
Mayor Maingot called the meeting to order at 9 :03 a.m.
2. FISCAL YEAR 2010 -2011 BUDGET DISCUSSION,
•
Opening remarks and guidelines for the budget discussion provided by the
City Administrator, Ms. Powell and the Director of Financial Services,
Mr. Williams provided additional opening remarks. Mr. Williams also
provided a recap of the total resources: income revenue that the City
projects for fiscal year 2010 -2011; the total appropriations summarizes the
City's intended expenses for fiscal year 2010 -2011; and summary of all
the funds.
Discussion: Commissioner Sackett asked about the Special Revenue Funds,
specifically the Stormwater Fund.
CC 08 -06- 10/233
Mr. Williams responded that $670,500 was in the Stormwater Fund. Mr.
Williams responded that the Special Revenue Funds consist of the six (6)
• finds listed on page three (3) of the proposed budget.
Discussion continued regarding the Special Revenue Funds and
forecasting projected revenues.
Deputy Mayor Durso requested that as they review the Special Revenue
Funds that Mr. Williams indicates any lags or changes in the funds.
Mr. Williams discussed the lag in reporting and receiving some revenue
sources from other entities and these numbers are projections as actual
revenues have not been received, stating it does depend upon the fund.
Mr. Williams further discussed the budget modeling program used to
forecast revenue projections and historical activity. All the estimates are
based upon historical activity and depend upon the fund. For instance, in
the General Fund, all the estimates presented today are based upon actual
activity through June 30 This includes the expenditures; however, the
Public Facilities Fund is based upon six (6) months of activity.
Mr. Williams reviewed the General Fund — Revenues and Expenditures.
He then examined the General Fund Budget Summary and provided a
summary of the funds by revenues, licenses and permits,
intergovernmental revenues, charges for services, fines and forfeits,
• miscellaneous revenues, lease proceeds, expenditures, administration,
financial services, police, fire, community development, leisure services,
public works, and transfers out; thereby, creating the Fund Balance for
September 30, 2010.
Mr. Williams next presented the summary of staff showing a slight
increase. The graph does not differentiate between full -time and part-time
staff or if they are funded by other entities.
Commissioner Sackett requested a summary of staff be subdivided by full -
time and part -time employees as well as those paid by other entities.
Mr. Williams moved on the General.Fund recapping the total revenues
$18.7 million of which taxes make -up 45.7 %. The taxes include a broad
category to include: ad valorem, communication service taxes, franchise
fees, utilities tax, etc. Followed by Licenses and Permits at $327,000;
• Intergovernmental Revenue at $ 1.2 million; Charges for Services at $1.8
million; Fines and Forfeitures at $172,000; Miscellaneous Revenue at
$80,000 and Transfers at $1.6 million. Total _Expenditures, balanced
budget, is $18.7 million.
CC 08- 06- 10/234
Mr. Williams reviewed the Fund Balance, $5,812,620 is the total fund
balance, restricted and unrestricted and explained how the fund balance
works.
The Proposed Budget is based upon the 4.99 millage rate and not the
tentative millage rate set on. August 2, 2010 at 5.99 as the Proposed
Budget was developed before the tentative millage set by the Commission.
Commissioner Bundy stated that the Proposed Budget is based upon the
4.99 millage rate and looking at cutting items to keep the Proposed Budget
from dipping into the Reserves.
Mr. Williams further reviewed the Fiscal Year 2010 Budget and the
Revenues and Expenditures. He is projecting a total fund balance of 33%
in comparison to the end of fiscal year 2009 of 36% o. When the budget
was adopted last year, one item that was brought forth was a reduction of
expenditures of $1.7 million. Based upon projections, Mr. Williams
indicated that the City will be $627,000 lower than the budget for fiscal
year 2010. When you add those two (2) together and compare it to the
2009 Budget, the City's Expenditures are $2.3 million less than budgeted
in 2009. Mr. Williams stated, unfortunately the Revenues have declined at
a much faster pace without drastically impacting services.
To help control the costs for the remainder of fiscal year 2009- 2010, the
City is cutting off Expenditures as of August 4, 2010. This is done to
control costs and allows processing time for outstanding invoices. Fiscal
Year 2011, as presented is based upon 4.99 millage rate.
Actual operating revenues are $850,000 less than last fiscal year; some of
the factors contributing to the decrease are due to the decrease in ad
valorem taxes, communication service tax, business tax receipt and
renewals, building permit fees, and grant revenues. The City is expecting
a decrease in fines.
Mayor Maingot stated the illegal use of handicapped parking could
produce $2,500 in fines per month. He also stated he would like this
tracked on the monthly Police report so it can be monitored. He indicated
this can be an additional revenue source.
Investment Revenues are down and are projected at a two percent (2 %)
growth rate. Miscellaneous Revenues are also down.
Mr. Williams stated additional revenues will come from the recently
passed increasing medical transport fees and the half -cent sales tax has a
slight increase. He stated there is a slight increase in the utility tax and
franchise fees from electric based uponhistorical activity. Mr. Williams
indicated the revenues do not reflect the recently approved lease of the
•
CC 08- 06- 10/235
Water Tower to Clear Wireless, but it will be added to the Budget before
adoption and thereby creating more projected revenues for Fiscal Year
2010- 2011.
Commissioner Sackett asked about the Stonnwater Management Fund.
Mr. Williams stated that represents a portion of Mr. Peters' salary and a
portion of the Planner /Stormwater position.
Commissioner Bundy explained costing out a project.
Deputy Mayor Durso agreed with Commissioner Bundy on costing out
and providing accountability in the budget process.
Mr. Williams stated that total expenditures for Fiscal Year 2011 being
proposed is $15,938,000, which includes capital expenditures associated
with the lease proceeds. The expenditures are $612,000 more than the
current fiscal year: He stated the factor contributing to the increase is a
15% across the board increase in medical expenses for the benefits
provided. There is an increase in the City's workers compensation, or
30% and a 3% increase in retirement through Florida Retirement System
to general employees and high risk employees. The Fire Department has
an increased expense associated with the purchase of a new fire truck and
a rescue. In the Information Technology Division, there are capital
expenses associated with the lease proceeds, new software for the phones,
servers, virtualization, and upgrades to HTE ONESolution. There is an
increase in the Finance Department primarily as a result of re- classifying
some positions from the Human Resources Division to the Finance
Department. Planning has a slight increase for a Mobility Study. As for
the City Attorney, they are projecting a $40,000 increase in those fees
based on historical activity.
Mr. Williams provided a recap of the Total Revenues is $13,872,000 and
Expenses are $15,900,000. He stated there is a decrease in Total Fund
Balance of just over $2,000,000, which at the end of next fiscal year as it
stands would leave a fund balance of 17 %.
Mr. Williams stated that staff is working on a Fund Balance. Policy to
bring forward to the Commission for official action at a later Commission
meeting.
Mr. Williams stated the next step for the presentation is to review
individual department budgets and to address your concerns from the
budget worksheets.
Catty (Commission it udget: Mr. Williams indicated there is a slight
reduction being proposed.
CC 08-06-10/236
Commissioner Bundy questioned the amount for Community Relations in
each department. He stated that he is not adverse to eliminating or
reducing significantly.
Mr. Williams responded that it is the Commission's discretion to spend it
on a variety of activities from donations, community relations, economic
development, and promoting anything associated with the City.
It was a consensus of the Coinmission to move the amount to $250 once
research has been completed as to how the line has been spent.
Commissioner Bundy stated he did not want paid subscriptions under line
item with memberships.
City Clerk Budget: Mr. Williams stated a budget reduction of $72,752,
primarily associated with the Deputy City Clerk position being eliminated.
He stated each line item was reviewed and adjusted by historical activities.
Mayor Maingot questioned the Life and Health Insurance increase. He
stated the City has to do something about the increase in Health Insurance
across the board. He questioned the contributions of the City as opposed
to the personnel, employees and /or family. IIe inquired how the
contribution can be adjusted to bring the costs down.
Conunissioner Bundy suggested changing the agent to get a better rate and
customer service.
Deputy Mayor Durso inquired has the City looked into partnering with
other municipalities or the creation of a clinic to lower the overall costs of
health care.
Ms. Powell responded in the affirmative and stated that she and
Commissioner Bundy visited a clinic in Ocoee. She stated that she spoke
with City of Casselberry and they were not interested. Ms. Powell said
she had conversations with South Seminole Hospital to provide an
employee clinic.
Deputy Mayor Durso said he would like review this before the next budget
cycle and stated the City should start working on this now to circumvent
this discussion next budget cycle.
Commissioner Bundy suggested scheduling a meeting with the clinic
operated by the City of Ocoee and a meeting /presentation with the new
Chief Executive Officer (CEO) at South Seminole Hospital. He stated that
he does not want to be in the same position next year.
CC 08 -06- 10/237
Mayor Maingot stated in the employee development line item has a lot of
money tied up for each department and stated he only wanted training that
is absolutely necessary.
Ms. Powell responded that the only employee development costs are those
associated with CEIJ's that are required and to maintain certifications,
everything else was cut. She stated each department has been scrutinized
as far as employee development, significant cuts have been made and only
those classes that are absolutely necessary are in the budget.
Mayor Maingot inquired under Other Charges as to why there was an
increase.
Ms. Powell said under the legal advertising line item, this was increased
for ordinances, land use changes, budget, and annexations. She stated that
it was the Commission's direction that the City pursues annexations. She
stated they have to be legally advertised and that is included in the
projected increase.
City Administrator Ii; udget: Ms. Powell stated the Commission will see
an additional $10,000 for promotional activities for economic
development.
Commissioner Bundy raised a question regarding employee development
and stated on the worksheet that each item was cut and wanted an
explanation of the $1,000 for the 2011 Legislative Session.
Ms. Powell stated they need to spend more time with the Legislature to
help with the funding and have the Assistant develop more relationships.
She stated they could cut this line item.
Deputy Mayor Durso stated the Commissioners needed a coordinated
effort during the Legislative Session and this includes staff coordination.
Ms. Powell stated they would cut the line item to $4,000.
Commissioner Bundy questioned the printing and binding line item.
Ms. Powell stated that this is a decrease over the past years publications.
She said the Longwood Lore is sent to the residents six (6) times per year
as opposed to the previous years, two (2) times per year.
Mayor Maingot asked how they could change to a quarterly publication of
the Longwood Lore.
Deputy Mayor Durso inquired if it could be sent electronically to the
residents to reduce the costs.
CC 08 -06- 10/238
•
•
Commissioner Bundy questioned the cost of publication in the Excellence
in Seminole County.
Ms. Powell stated she could cut the line item to $1,500 for Excellence in
Seminole County.
City Attorney I udget: Commissioner Bundy stated there is adequate
legal representation for a lot less money and would like the budget to be
cut by $70,000 and it be firm at $120,000 annually. He said he
understands the costs of litigation and that this is variable.
Commissioner'Cortes agreed that he would like to see this budget reduced
and if they cannot do business in the amount budgeted that the City finds
someone else.
It was a consensus of the Commission to reduce the overall legal budget to
$140,000 annually.
General Services Budget: Mr. Williams explained this budget reflects
reclassifying the Community Building Coordinator from General Services
to Leisure Services. He stated the expense associated with the Community
•Building is coming out of General Services.
• Mayor Maingot suggested adjusting the janitorial services line item for the
Fire Administration Building as it's now vacant and other line items as
needed.
Deputy Mayor Durso suggested, in regard to the energy bill, the City is
spending about $300,000 per year. He said the City should be able to
reduce this by 20% to 30 %. He suggested working with Progress Energy
and /or any grants to reduce energy consumption to have a positive impact
to the bottom line. He said he would support staff as actively as he can to
reduce energy costs.
Mr. Peters stated staff is working with Progress Energy to provide an
energy audit of all the City facilities.
Mayor Maingot suggested solar energy and the use of it to reduce the
• City's energy consumption and provides credits to the grid.
Commissioner Bundy stated that in addition to energy conservation the
City should look at water conservation with items such as zero scaping.
• Human Resources I: udgett: Connnissioner Sackett questioned the
transfer of the Business Tax Receipt position and the amount of funds.
CC 08 -06- 10/239
Mr. Williams stated he would have to go back and look up that
information.
Commissioner Bundy asked for the total of salaries citywide and wages
not to include the benefits for last year and this year.
Commissioner Cortes inquired about the employment advertising of
$5,000 for positions, and stated the City is not hiring unless unforeseen
causes.
Ms. Powell stated that it's costing more to advertise in the newspaper
and /or trade magazines, and this is not due to new positions, but when
people leave the City. She indicated that the City receives more applicants
if the City advertises.
Mayor Maingot inquired if the liability insurance amounts are remaining
the same.
Mr. Williams stated they are proposing to carry forward the same budget
as last year. He indicated that the insurance renewal contract, Public Risk
Management (PRM), actually splits the fiscal year.
Deputy Mayor Durso asked how often the City shops for liability
insurance.
Ms. Powell stated that PRM actually shops the liability insurance each
year and has opened up their membership to the entire state.
Conunissioner Bundy asked if the City provides the Human Resources
Policy by disk or electronically.
Deputy Mayor Durso asked if the City can create an employee Intranet
Ms. Powell stated they have that now.
Commissioner Bundy asked if employees can access during the workday
if they are located within the City limits.
Ms. Powell reduced the line item to $500.
Mr. Williams stated that the Business Tax Receipt position is moving back
under the Department of Financial Services. He stated there would be an
increase for that salary over the once proposed Accounting Clerk position
that is not coming forward.
Mayor Maingot asked for a graph of the personnel city wide.
CC 08- 06- 10/240
Commissioner Bundy requested last year total salaries and this year's
salaries.
Deputy Mayor Durso left the meeting at 10:46 a.m. returned at 10:47 a.m.
• Purchasing r udget: Deputy Mayor Durso asked where the City was in
terms of an inventory system. He stated the City has no accountability
system in place.
Mr. Williams stated they developed an Access Database to track the small
tools inventory and deployed that to Public Works.
Mr. Peters responded that he has a staff person in charge of the inventory
and that all equipment must be checked out and is checked every week as
a responsibility.
Ms. Powell stated the employee development line item will be reduced.
Finance Budget: Mayor Maingot asked about Salaries and Wages
moving from three (3) to five (5) staff members.
Mr. Williams responded that it was allocating two (2) staff from Human
Resources. IIe stated what had changed was the Business Tax Receipt
position was originally going to be in the Building Division, but that has
not worked out, and the position is shifting back to Finance and there is a
difference that needs to be adjusted.
Mayor Maingot asked about the accounting and auditing increase.
Mr. Williams stated that GASB requires the City to provide an Other Post
Employment Benefits (OPEB) Analysis to be completed every other year
and the cost is $7,200.
Commissioner Cortes asked about the employee development increase.
Mr. Williams responded stating that they contemplated on including this
in the budget, and the cost is for the upgrade of the Naviline system to
HTE ONESolution and providing training.
Mayor Maingot stated there is a difference between need and want, and
inquired if they really needed it in this economic time.
Mr. Williams stated the way they currently do business is not efficient and
gave an example. He said the cost reflects training for the software
upgrade that would reduce a disjointed system and streamline efficiencies.
CC 08 -06- 10/241
Deputy Mayor Durso stated a system like this is for the long -term, and
produces efficiencies and streamlines the information technology systems,
which eliminates the hands.
Ms. Powell indicated there were concerns regarding several different
applications being used across the City.
Mayor Maingot questioned the increase in Memberships and
Subscriptions. .
Mr. Williams stated that the increase is associated with moving the Payroll
Clerk from Human Resources to Finance. He said this includes the Fair
Labor Standard updates and memberships associated with. the American
Payroll Association.
Commissioner Bundy questioned the Application Fee for the GFOA
Award of $5.00 and wanted to cut this item.
Mr. Williams stated it's not a requirement and it basically states the City is
adhering to the accounting standards.
Commissioner Cortes questioned the attorney costs.
Ms. Powell responded this is for a labor attorney and is separate from the
overall legal budget.
Utility Billing udget: Mr. Williams stated there was an increase in
wages. He said this was associated with the retirement of the Utility
Manager and is anticipating the retirement payout of vacation and sick
accruals, but does not include filling the position.
Deputy Mayor Durso asked about recycling programs.
Ms. Powell indicated there is an Interlocal Agreement that has been
presented by Seminole County for commercial contracts that would
provide the City proceeds from recyclables.
Commissioner Bundy asked if the Interlocal Agreement requires them to
use the Seminole County landfill.
Ms. Powell responded in the affirmative and this part of the Agreement.
Mr. Peters provided clarification of the process and the language in the
Interlocal Agreements.
)Information Technology Budget: Mayor Maingot questioned the
increase of $556,000.
CC 08 -06- 10/242
•
Mr. Williams responded that this is due to the upgrade of Navil to HTE
ONESolution with additional modules, capital equipment upgrades to the
data center related to the VOIP phone system. He stated this was at the
end of its life and will not be supported by CISCO Systems. He said if the
software becomes corrupt or damaged, the City will not have telephone
service. He stated there are Dell servers that are out of warranty, which
covers all of the operating systems and software that are past product
support. He stated there is no real time disaster recovery for the servers
and one of the most important aspects is that it paves the way for desktop
virtualization. He said there will no longer be a three (3) year rotation to
replace desktops and move from a five (5) to eight (8) year rotation for
thin clients providing significant benefits.
Commissioner Coates stated that he would like to 'see a return of
investment provided to all Commissioners.
Mr. Williams stated to plan on replacing teclmology every five (5) years.
He said the City needs to plan better for those needs and replacement on
future systems.
Further discussion was held regarding information technology
maintenance, management, support, software, replacements, and cost
savings.
Law Enforcement Budget: Mayor Maingot raised concerns regarding
the overtime in the budget as they are requesting $10,000 more for the
next fiscal year.
Ms. Powell stated that is projected and will not be the actual until the
budget is complete. She said they are currently towing the line on that and
cannot foresee the next fiscal year.
Commissioner Bundy asked if they are anticipating taking the funds for
the replacement officers since they had five (5) personnel leave the
Department.
Ms. Powell stated that they have been replaced with five (5) officers on
the street.
Mr. Williams said in the General Funds, the City has a revenue source for
the officers assigned to HITDA and CCIB.
Commissioner Bundy asked if the City is fully staffed.
Acting Chief Hickson responded. in the affirmative.
CC 08 -06- 10/243
•
Commissioner Bundy stated that before the City filled any vacant
positions that it was to be brought before the Commission.
Ms. Powell stated that ended as of June 1, 2010.
Commissioner Bundy said the City lost the Police Chief due to this.
Ms. Powell stated that Chief Tom Jackson was aware of this and that it
expired June 1, 2010.
Mayor Maingot asked about the two (2) Codes Enforcement Officers.
Ms. Powell stated there are three (3), but due to the assignment of the
Assistant to the City Administrator to the Clerk's Office as Acting Deputy
City Clerk, a Codes Officer is working in the Administrator's Office.
Commissioner Bundy questioned the Community Development personnel
as the Grant Writer is moving to the Police Department.
Ms. Powell stated the Deputy City Clerk position was moved to the
Community Development Department to have two (2) full -time Planners.
Commissioner Bundy said his concern is that one department's salary
track and moving it to another salary track.
The Commission recessed. at 11:58 a.m. and reconvened at 12:09 p.m.
Fire and Rescue litudget: This Budget will be discussed at the next
meeting.
Community Development : Commissioner Cortes questioned the
Mobility Study and the costs.
Commissioner Bundy stated they may get some relief through Florida
Department of Transportation (FDOT).
Ms. Bower stated they are preparing for two (2) separate grants to defray
the costs, but it has to be budgeted just in case they are not awarded the
grants. She said the Mobility Study will carry forward until the next fiscal
year due to the fact they are applying for grants.
Mr. Williams stated the encumbrance will carry forward.
Building Budgets Commissioner Cortes asked about the permit software
that is part of the overall system that was previously discussed under
Information Technology.
CC 08- 06- 10/244
Mr. Williams responded the $2,000 is for the old system, and that would
go away with the new system.
Commissioner Sackett inquired about the purchase of a laptop for the
Inspector.
• Mr. Williams stated it was for the part- time Inspector and they would have
the ability to have real time inspections. He said if the City moves to the
ONESolution software, they will be able to have real time permitting and
inspections.
Commissioner Bundy said he would like to see a cumulative for the
information technology citywide.
Commissioner Cortes requested seeing the cost savings coming from new
technologies, such as the elimination of old technologies.
Leisure Services I. udget: Commissioner Bundy inquired about the Parks
Master Plan, the landscape architect, and the green space planning.
Ms. Meli said within the next few years, Leisure Services would like to
identify green spaces throughout the City that would provide
beautification and assist with the economic development activities.
Deputy Mayor Durso inquired if they had done any research regarding
grants that would be available.
Ms. Meli stated FRDAP will have a grant cycle this year and also the
Land and Water Grant will open in February.
Deputy Mayor Durso suggested bringing forward a dedicated position for
grants application, reporting and compliance issues.
Mayor Maingot stated this was a want and not a need. He suggested
eliminating the $25,000.
Commissioner Bundy inquired that under Contractual Services why was
the City paying $10,000 to Lyman High School.
Ms. Meli stated under the School Board structure the $10,000 was for
eight (8) weeks of summer camp and this was a great price. She said the
School was doing something the School Board may not agree with since
half of the money stays with Lyman High School and not the School
Board.
Commissioner Bundy inquired if the City charges enough to cover all of
the costs.
CC 00 -0.6- 10/245
Ms. Meli said all of the costs are covered with the exception of the
$10,000 facility cost.
Mayor Maingot ,stated the manpower has increased.
Ms. Meli responded stating the costs have increased. They have absorbed
the Community Building position, a Babe Ruth position that is funded by
Babe Ruth, and two (2) part -time employees funded by the Community
Building.
Commissioner Cortes inquired how the Community Building position can
be better utilized.
Ms. Meli explained they have to obtain sponsorships for all the events and
this takes a considerable amount of staff time.
Deputy Mayor Durso requested for more information, and specifics as to
how staff is spending their time and for efficiencies within the
Departinent.
Mayor Maingot suggested the capital outlay beach volleyball court be cut
from the budget.
It was a consensus of the Commission to cut the outlay of the beach
volleyball court from the Budget.
It was a 3 -2 consensus of the Commission to cut the future dog park from
the Budget.
Ms. Powell indicated the City has to have a new sound system to continue
the rentals at the Community Building. She said the quality of system will
deter people from renting the Building.
Ms. Powell asked where the Commission was on Reiter Park since the dirt
was coming from the paving of Ridge, Oak and Talmo.
Commissioner Bundy said he is not ready to move forward with Reiter
Park.
Commissioner Cortes stated this was what the community has been
expecting and inquired if they could do it in -house to help phase the
project.
Mayor Maingot stated they have to show people what the City is doing for
them at Reiter Park.
CC 08-06-10/246
•
Ms. Powell suggested at the next meeting to start with the Streets, Fire and
the rest of the funds.
Discussion of next meeting to complete the budget, consensus was to hold
the next :meeting on Friday, August 13, 2010 at 2:00 p.m.
3. ADJOURN.
Mayor Maingot adjourned the meeting at 1:30 p.m.. /
.r
John C. �' a ot9 M.t ;or
•
/)
ATTEST:
, '7
/ 4 2 /
, 4 C. Murrp J`• 1'F,q.te of i Deputy City Clerk
, (
•
•
CC 08 -06- 10/247
This Page Left Blank Intentionally.
CC 08 -06- 10/248