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CCMtg07-30-12Min(WS) LONGWOOD CITY COMMISSION Longwood City Commission Chambers ll 75 West Warren Avenue Longwood, Florida WORK SESSION MINUTES S JULY 30 2012 6000 P.M. Present. Mayor Brian D. Sackett Deputy Mayor H.G. "Butch" Bundy Coinn John C. Maingot Commissioner Joe Durso Commissioner Bob Cortes Jon C. Williams, City Administrator Sarah M. Mirus, City Clerk Tom ,Smith, Division Manager of Streets /Fleet Richard.Kornbluh, Division Manager of Utilities Troy Hickson, Police Chief Sheryl Bower, Director of Community Development: Services Bill tGulhrandlsen, Fire Chief Pamela Barclay, Director of Financial Services Fran Mel!, Director of Leisure Services Craig Dunn, informatrioLn Technology Manager Michelle jLongo, Executive Assistant to City Administrator 11. CALL TO ORDER. Mayor Sackett called the meeting to order at 6:00 p.m. 2. VIEW AND DISCUSS PROPOSED BUDGET FOR FISCAL YEAR 2012 -2013. Mayor Sackett said he would like the City Administrator to provide a general overview. He stated then they can open it up for questions from Commissioners and then a. summary of all of it. Commissioner Maingot moved to suspend the rules. Seconded by Deputy Mayor Bundy and carried by a unanimous voice vote. Mr. Williams said on behalf of Department Directors and Managers, he was pleased to present the proposed Operating budget for Fiscal. Year 2012 -2013. He stated the Total Resources, which was revenue coming in to the City was budgeted at $30 million, and that was inclusive of the cash carry orwards. He said the General Fund., whsch was the largest of the CC 07- 30- 12/193 entire City at fifty -nine point one percent (59.1 %0), followed by the Public Utilities at twenty point seven percent (20.7%) the Public Facilities Improvement at five point one percent (5.1 %0), the Capital Projects at four percent (4 %), followed by Stormwater Management at seven point three percent (7.3 %), and Other Funds which were small revenue funds at three point nine percent (3.9 %). He noted Total Appropriations through the entire Fiscal Year 2013 as presented was balanced at $30,118 and that was reflected into a dip into the cash balance or the reserves, and they have presented a balanced budget based upon than. He said the General Fund was at $14.9 million at forty -nine point seven percent (49.7 %) and Public Utilities at $3.2 million at ten point eight percent (10.8 %). He noted they do not have any capital projects budgeted in the Public Facilities Improvement Plan at this current time, followed by Capital Projects at $1,096,495 at three point six percent (3.6 %), Stonnwater Management at $451,343, and he stated there was also nothing budgeted for Transit Oriented Development (TOIL) at this time. He said they would be making some appropriations before the final adoption occurs in September. He stated Other Funds was $1,227,509 and the Fund Balance was $9,116,988. He said in comparison to last year, the overall Operating Budget Expenditures of the City are five point six percent (5.6 %) less than they were this same time last year. He said in trying to keep with the City Commission's overall goal of maintaining a twenty percent (20 %) fund Balance, the Budget as they have presented represents the Fund Balance of eighteen point eight percent (18.8 %). He said historically, they were very conservative in what they budgeted in terms of the Ending Fund Balances, the revenues and expenditures. He said over time, they tend to come in at about an average of a six percent (6 %) difference higher in the City's favor. He said to that end, they have started to see a decline over the last few years of the Fund Balance. He said that brings about some concern from staffs perspective in the fact that they have got to identify some additional revenue sources to try to stay off this trend and maintain the Commission's desire of twenty percent (20% o), while also maintaining the existing level of services. Ms. Barclay said the Budget was prepared using a 499 millage rate and that resulted in approximate $87,000 decline from last year's revenues. She noted the roll back rate was 5. 10 8 03, which a total mill would bring a little over $800,000. She said the proposed Budget was balanced using Reserves, which means going to the bank account to match the expenses. She said roughly $1.9 million of the four point seven percent (4.7 %) proposed Fund Balance would be used. She said in other words, they have $5 million in the bank account, and they were going to use $1.9 million for next year's Budget. She said that $1.9 million equals twelve point six percent (12.6 %) of the total expenditures that were budgeted for the year. She said historically that has been the practice, especially with the downturn in the economy in the recent years, but they should be aware that the bank account will eventually dry up. She said fortunately, they CC 07 -30- 12/194 project high to go to the bank_ with a high amount, and they have been fortunate to keep the expenses down, so they were not going as needed and were actually being more spend. thrifty. She said the Commission has always challenged them to maintain a twenty percent (20 %), and they were coming in at eighteen point eight percent (18.8%) this year. She said the Government Finance Officer Association (GFOA) likes them to keep between fifteen (15 %) percent and twenty five (25 %) percent, and again, they have always come in higher. She then outlined the General Fund's Revenues and Expenditures and Supplies and Services in detail. Mayor Sackett requested a breakdown be completed of the total cost for overtime in personnel. Ms. Barclay and Mr. Williams answered questions of the Commission. Discussion was held regarding the process of the Work Session. Mr. Williams provided an overview of the proposed Budget for Fiscal Year 2012 -2013 as it relates to personnel and capital projects. Discussion was held regarding capital projects not being done, how much they would cost in the future to complete, the current service levels and maintaining those level of services. Commissioner Maingot said when he had his discussion with staff someone referred to a book that he gave to the Administrator and the options for revenue that presented. He noted they had some very straightforward discussions that would have enabled them to arrive at increased opportunities for revenue. He asked if this was something they would rather not talk about tonight, because it was a natural fit for what they were looking for in terms of capital and it did not make sense for them thinking about what the TOD future lies and has for the City, when they cannot even lay down the basic storm water infrastructure that was needed, so that when potential investors come, they can offer them an opportunity for a real investment. He said if by what they have said, the acquisition of what was required for that stormwater system to be in place, everyone else around them would have their TOD well advanced and developed, and they would just be going around in ever increasing circles and all opportunities would be lost. He said he thinks now was the time that they really have to bite the bullet. He said for the last eight (a) years, they have not raised the millage rate in the City, yet every year the operating costs continue to increase and provided an example. He 'then discussed potential revenue opportunities for the City and maintaining the levels of service. Discussion was held in regards to revenue opportunities and ad-valorem taxes for the City, the urgency to do it sooner rather than later. CC 07 -30- 12/195 Commissioner Cortes said the decline they have seen over the years was not just ad valorem taxes. He noted all of the ends and all of the revenue sources were down. He stated they lost the one cent (1 0) sales tax this year, which was for transportation capital. He said even the franchise fees were continuing to go lower and lower as people switch phone companies, lose their cable and do other things. He noted the franchise fees were down. He said one thing he. had not seen in here that he would like to see was in the past, staff had given them ad valorem roll -up options, and he requested that information. Mr. Williams said they did prepare it, but did not have the information for this evening. He then outlined the total funds the City would receive if the Commission increased the millage rate. He noted that was an immediate revenue source that could be brought to the table that starts to address some of the concerns. He said some of the other revenue sources that they brought forward were as simple as a couple of ordinances, reading of ordinances that they can get an increase of revenue that they can go back and contemplate discussions. Discussion was held regarding different millage rates and the revenue it would bring into the City. Conunissioner Durso said he wanted to speak about some of the things he discussed briefly in his meeting with the Department Heads and stated there were five (5) issues that he wanted to bring up and outlined those issues that included the solid waste contracts, utility acquisition, acquiring fire fees from Seminole County, fire service fee, healthcare costs, and the status of the health clinic. Mr. Williams and Chief Gulbrandsen then answered the Cominission's questions to the issues Coirunissioner Durso had brought up. Discussion was held regarding the City's liability insurance and the increase in the cost. Commissioner Maingot asked when they were going to come forth with the stuff that was spoken about, the revenue options and when were they going to approach it. Mr. Williams said tonight they would have an opportunity to take the first step, if the Commission desires, and as soon as they can bring forth some of the other options, they would do that. Commissioner Maingot said he did not really agree with as soon as they can, and stated thai soon was now and not tomorrow. He said with what they have discussed, he was sure his fellow Cornmissioners had very good CC 07 -30- 12/195 discussions with staff of opportunities that they have there. He said they may not always agree on the same one, but here and now was the time they ought to lay it on the table, whatever it was. He said starting with the Police Chief and going on to the Fire Chief, whatever they have been speaking about. He said Commissioner Durso had touched on some of it, but he said he thinks they ought to bring it out and lay it on the table. He said he did not think they ought to defer it. Mr. Williams said the direction he received when they had the meetings was they have already started working on this. Commissioner Maingot said alright. Mayor Sackett said he believes the same from what the conversation was with the Fire Chief with those Municipal Service Benefit Units (MSBU) and all those other sorts of revenue sources. And he believes what the discussion was with him, it sounded like with Commissioner Durso because he laid out the five, was let's get going on this yesterday, and he believes that was the impetus. Mr. Williams said if they can have some of the first reading of the ordinances between now and the next Commission meeting, they certainly will. Commissioner Maingot said fine, that was great, and his blood pressure was going back down to normal. Deputy Mayor Bundy said he laiows they have talked individually and staff has a general sense of what was the majority ofthe Commission wants, but he thinks one of the things that Mr. Williams had touched on was they do not know. He said because they cannot violate the Sunshine Law and tell them what other Commissioners have said, they just don't know. He said there were a lot of things that were touched on and a lot of different scenarios and he said he understands the reason they were doing that rather than to jump in all at once, was to give them some opportunities to do some research. He said some of the things the Police Chief touched on he was in favor of, but he does not know if the majority was in favor of it, and if he was on the losing side of that vote, he would at least like to get it out in the open. Mayor Sackett said let's get it out in the open. He asked the Fire Chief about just an idea that he probably brought out to him, and hopefully, to others, but where was his revenue source potential. Chief Gulbrandsen noted the MSBU would not be able to take effect until the next fiscal cycle, and outlined the potential revenue sources from the Fire Department, and answered questions from the City Conmarussion. CC 07- 30- 12/197 It was the consensus of the Conunission to have the Fire Chief research the MSBU and bring the research back to the Commission for further discussion. Chief Gulbrandsen continued to outline the potential revenue sources from the Fire Department, which included the City's fair share of the County's Municipal Service Taxing Unit (MSTU). It was the consensus of the Commission to have the Fire Chief research the MSTU and bring the research back to the Commission for _further discussion. Discussion ensued regarding the City being prepared to pursue the MSTU from the County and how service would not be. impacted. Chief Gulbrandsen continued to outline the potential revenue sources from the Fire Department, which included fire plans, fire inspection fees, fire alarm and permitting fees. He noted he had met with Mr. Williams on that matter several tithes and with this being the end of July, they could probably have something ready in October to bring to them for implementation upon a required ordinance, so it would probably be two (2) readings. Mayor Sackett said they would have that discussion then. Chief Hickson said all of the sources that he brought to them in the discussions, he was already working on. He said some of them were old options that were made before the fourth, however, at this point in time he said he has to make sure the agreements they had agreed on previously were still in effect, because that would change everything. Mayor Sackett asked if he was still working on things that he has to get more information before presenting it to the C'ominission. Chief Hickson responded in the affirmative. He noted they already started preparing the agenda items to come before the Commission with them, but they want to make sure that they were in parity with other local jurisdictions. Mr. Williams noted another revenue source they could look at, following the non -ad valorem assessment theme, was street lighting. He stated they could set -up actual non -ad valorem assessments for that, and that was in the neighborhood of about $200,000 and it would go to the public Works Department. CC 07- 30- 12/198 The Commission expressed the need to explore street lighting as a lion -ad valorem assessment. Mr. Williams said they want to definitely look at that and whether or not they can do that with in -house staff. He said he was not sure at this point, but they want to do an entire audit of the entire communication service tax base to make sure that any communication that has occurred over the last two (2) years was properly forwarded and noted they have seen a significant decline in the amount of revenue. Discussion was held regarding the City limits of Longwood. Ms. Barclay outlined the potential revenue sources from the Finance Department that included the solid waste contract, upping the purchasing card usage and answered questions from the City Commission. Discussion was held regarding going to an exclusive commercial solid waste contract. Ms. Meli said the Recreation Division of the Leisure Services Department was pursuing donations and sponsorships. She said they were trying to figure out long -term programs based on direct and indirect costs, so they were establishing a policy on a percentage of cost recovery, and noted some programs have one hundred (100 %) percent or two (200 %) percent cost recovery. Commissioner Durso said what he would like to see in that report was what the programs cost, what they currently charge, and what the proposed new charges would be. He noted those were the three (3) numbers he wanted to see. Mayor Sackett said he would like to see it where it included measuring things consistent with the County programs as well. Ms. Meli said they contract out and they do not provide the services, other than Summer Camp. She noted they contract with someone and they get a percentage of what they charge. Mayor Sackett said he wants to see what they do in other places. Commissioner Durso said he was especially interested in the indirect costs because of the use of the Community Building and Longwood Elementary School. He said he knows some of the programs were great, but they were way undervalued, and provided an example and stated they should be more competitive. CC 07 -30- 12/199 Ms. Meli said she agrees with that and said if they charge appropriately, they were putting a value on it. Discussion ensued regarding what the County does with their recreational programs and organizations that were utilizing Longwood Elementary School at no charge and assigning one (1) night a week for utilizing the School at no charge for the Boys and Girl Scouts. Discussion was held regarding sponsorship for parks and fees associated with programs. It was the consensus of the Commission to have Ms. Meli research the one (1) night a week the Boys and Girl Scouts could meet and bring it back to the Commission for their consideration. Commissioner Maingot said he had two (2) things and inquired if they have ever thought of approaching South Seminole Hospital to find out if they would be interested in entering into 'sortie sort of agreement with the City to provide certain services for the City. Mr. Williams said they had some preliminary discussions with them back when he was appointed. He said they never got into the nuts and bolts of what those services would look like. Commissioner Maingot said he was just thinking of an alternative, rather than putting all the eggs in one basket, because they laiow they were expanding their business and were going to have a drive -thru pharmacy, so he was thinking of sharing things within the City. He said the other thing was employee development. Mayor Sackett asked for anything more in revenue development. Ms. Bower said two (2) years ago they looked at all their fees in the Building Division and they pretty much brought them in line with what everybody else was charging. She said they have identified a couple of minor administrative things they can charge for, but beyond that, she did not look for a lot of revenue generation. She said she was planning on other opportunities for grants and projects on MetroPlan, and they would continue to do that, but realizing anytime they go after those kind of services, they will take a lot of time. Mr. Dunn said unfortunately, without being directly in the private sector, all of his expertise would be on the spending side, not the revenue side. Commissioner Maingot said he covered some of this in the discussions regarding employee development, and it was in terms of the cost where an employee's certification and /or license as such require them to attend. He CC 07-- 3'0- 12/200 said that was a cost, but where it was a question of an association, a fellowship or whatever it was, he thinks that should, in the present economic situation, be out altogether. Discussion ensued regarding the cost for citywide employee development. Commissioner Cortes inquired about the stormwater fee and the School Board and noted the School Board was not paying for storrrrwater fees as it stands. Mr. Williams responded in the affirmative. Commissioner Cortes asked if they know how much that amount was, and do they know what might be happening in the future and if it was going to continue on that path. Commissioner Durso stated it was a small amount of $18,000. Commissioner Cortes inquired if that was from (Lyman High School and Longwood Elementary School. Mr. Williams said for Longwood Elementary School that charge was associated with the City at this point. Commissioner Cortes asked if they were getting the benefit since they were not paying for it, or were they going to renegotiate that and get some of that back. He said he was slue the School Board built into the lease part of that expense, being they were not paying for it. Commissioner Cones said it was not the water, but the stormwater. He said if they were not getting paid from the stor'mwater because of the stance the School Board took and the changes in the law, part of the building that the City was using, the City was paying for and noted every little bit helps. Mr. Williams said they could look into the matter. Deputy Mayor Bundy said he thinks he can answer the question and asked if they were going to continue not paying for it because they just had the first Facilities Committee Meeting, and yes, their intention was they were not going to pay for it. Commissioner Durso said he wanted to make this point that was a valid point that Commissioner Cortes brought up. He said if the other cities decide to challenge it; the City was on the low end of that totem pole and did not face so much of an issue. He said places like Sanford, Winter Springs and Oviedo have tremendous amounts of money that the School Board was witliliolding from them. He said he reiterates his support if the other cities decide to jump in and challenge that in some formal way. Then CC 07- 30- 12/201 he would certainly want the City to be part of that, if for no other reason than based on principal because the number for them was really small comparatively. He stated Sanford was somewhere in the $200,000 to $250,000 range, and the City was somewhere in the $15,000 to $20,000 range. Deputy Mayor Bundy said he would add an addition to that. He said he would not be adverse to assist in it or support him in challenging it, provided they provide them with some subordinate things that were going to be challenging the County on. Mayor Sackett said i'c would have to be a mutual respect for each other. He thanked Mr. Williams for his team meeting with them individually, and stated it was a whirlwind of meetings and information. He noted the book that was putt together was nice and commented about the Addendum located in the back of the book where he lined out what he did and did not want. He said it was a well put together booklet, and noted it gets easier and easier to understand all the time. 3. ADJOURN. Mayor Sackett adjourned the meeting at 7:30 p.m. - , /' , Iz "' " D'x BrCllaIiIl Do Sackett, M7P ATTEST; Sarah Me IYIirus, MMC, MBA, A, Citcy Clerk CC 07 -30- "12/202