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HomeMy WebLinkAbout2008 0911 Special City Commission Meeting SUMMARY MINUTES Special City Commission Meeting 1st Budget Hearing Fiscal Year 2008/2009 Thursday, September 11, 2008, 6:30 p.m. City of Sunny Isles Beach, Florida A TTENTlON ALL LOBBYISTS: CITY LAW REQUIRES YOUR REGISTRA TION PRIOR TO ENGAGING IN LOBBYING ACTIVITIES BEFORE CITY STAFF, BOARDS, COMMITTEES OR THE CITY COMMISSION. PLEASE CONTACT THE CITY CLERK FOR FORMS AND ADDITIONAL INFORMATION. AGENDA 1. CALL TO ORDER / ROLL CALL OF MEMBERS The meeting was called to order by Mayor Ede1cup at 6:30 p.m., with the following officials present: Mayor Norman S. Edelcup Vice Mayor Lewis J. Thaler Commissioner Roslyn Brezin Commissioner Gerry Goodman Commissioner George "Bud" Scholl City Manager A. John Szerlag City Attorney Hans Ottinot City Clerk Jane A. Hines, CMC Assistant City Manager/Finance Douglas Haag Assistant City Attorney Fernando Amuchastegui 2. PLEDGE OF ALLEGIANCE Action: Mayor Edelcup noted that he and Commissioner Goodman were elected seven (7) years ago today, and in honor of Commissioner Goodman's birthday, asked him to lead the Pledge of Allegiance to the flag. Mayor Edelcup called for a moment of silent prayer for the victims of 9111, a tragic day in the history of our Country. Mayor Ede1cup gave opening remarks noting that tonight is our first budget hearing and our second and final budget hearing will be held on Thursday, September 25,2008 at 6:30 p.m. 3. PUBLIC HEARING ON THE PROPOSED MILLAGE RATE AND TENTATIVE BUDGET 3A. Millage Resolution (Public Hearing) A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Establishing the City of Sunny Isles Beach Proposed Ad Valorem Tax Millage Levy Rate at 2.4842 Mills per One Thousand Dollars ($1,000) of Taxable Assessed Value Which is 0% Less than the "Rolled Back" Rate of 2.4842 Mills, for Fiscal Year 200812009; Providing for an Effective Date. Action: City Manager Szerlag noted that tonight is the first hearing of the Fiscal Year 2008/ 2009 budget, and in past years it was also the first workshop session. He said we recently adopted a new methodology whereby we have workshop sessions that constitute a partnership Summary Minutes: Special City Commission Meeting September 1 I, 2008 First Budget Hearing Sunny Isles Beach, Florida between the Commission and the City Manager to forge a document in tandem as opposed to the City Manager coming in September with a document that the Commission is seeing for the first time, whereas this is our sixth (6th) meeting on the budget. City Manager Szerlag did a power-point presentation, and indicated some of the issues of salience that we have included: Initial Impact: eliminated the Human Resources Department which is now combined with the City Manager's Office; this is our first full year of operation for the Pelican Community Park Gymnasium, Community Center, and the Ball Field which was an 8-year project, and just in time for the opening of our new K_6th Community School, also taking on the responsibility for the after-school program. He noted that the Wireless Island Project was scaled back significantly but still has almost full coverage at ground level at the City's Parks. City Manager Szerlag noted from last year to this year, there has been an increase of about $300,000 in the fund balance. He went over the Fiscal Year 200812009 Revenue Summary noting that Operations is proposed at $26,890,480; Expenses including Contingency is proposed at $29,252,780 which includes a transfer of $5 Million to Capital Improvement Projects, noting that this is the second year we are doing this; and that we also require $2,362,300 of fund balance surplus to balance our budget this year. The proposed millage rate is 2.4842 mills vs. the current rate of 2.3979, and as defined by the State, this is not considered a tax increase because it generates the same tax revenues as last year excluding the impact of new construction and Amendment 1. So we did not have to advertise as a millage rate increase because our revenues are base times rate, and they are commensurate with the additional millage increase. The impact of rate difference on average property in Sunny Isles Beach in 2007 is $19.69. The City had $358 Million in new construction for 2007. Capital Improvement Fund: City Manager Szerlag said the projected change in fund balance from September 30, 2007 to September 30,2008, went from $25,192,608 to $14,637,315, and so we spent $10,555,293, which is what happens when you have projects on the shelf, take them off the shelf, and actually start building them, which is a good thing. Revenues: Operations and Transfers proposed at $15,236,394; Expenses: including Contingency proposed at $22,940,000, and it requires using $7,703,606 of Fund Balance Surplus. Stormwater Fund: City Manager Szerlag said the projected change in fund balance from September 30, 2007 to September 30, 2008, is minimal because we have not spent a lot of money at this point but we are going to with the Central Island Drainage Improvements Project which is under construction right now and is ahead of schedule. Revenues: Operations and Grants proposed at $4,922,929; Expenses: including Contingency proposed at $8,243,019, and it requires using $3,320,090 of Fund Balance Surplus. Public Speakers: none Commissioner Goodman asked City Manager Szerlag to clarify where the money comes from on slide 5 of the power-point presentation in the fund balance surplus, and Mayor Edelcup noted on slide 4 that the money comes from the Fund Balance of$17,619,569. City Manager Szerlag explained that in some years you will have more revenues come in than expenses, and what is left over is put into this surplus, or Fund Balance. In other years, if you don't want to reduce the level of service, and you think the economy is going to come back in a short 2 Summary Minutes: Special City Commission Meeting September I I, 2008 First Budget Hearing Sunny Isles Beach, Florida time frame as opposed to making drastic cuts, you will still maintain a certain level of service and use the Fund Balance to balance the budget. Mayor Edelcup said that we should also keep in mind that the $2,362,300 is after transferring $5 Million of funds from our Operating Account to our Capital Account. Historically, when he and Commissioner Goodman first became Commissioners, they never made those transfers, and that is how they allowed the $17 Million to build up, and now we want to get those projects funded, and that is why you are seeing that we are dipping into it, not by the full $5 Million but by $2,362,300. City Manager Szerlag also went through a Budget Comparison of Revenues and Expenses Bar Chart ofthe General Fund. He indicated under the Expenses, the HR cost that we had initially was $14,825,135. What happened was the intermittent employees were not in the final calculation, and his instruction to staff was to find a way to keep that number just about commensurate with what we are going to have for a final submittal. Assistant City Manager Haag's letter indicated which positions were cut that were vacant to accommodate this, and it also went from essentially a 5% increase for employees to a 4% increase, it could be more or less depending on an employee's performance. There was also a handful of employees that were going to get extra compensation this fiscal year as a result of trying to keep them between the minimum and mid-point, in accordance with the Mercer Study. He said he was also asked to identify what it would cost if there was to be an additional I % raise to employees making less than $50,000 a year, and that cost in salary would be $33,000 to $35,000 including related benefits. He now has is a budget document that has a 4% payroll for all full-time employees, and for intermittent employees where applicable. He said he was also asked what the cost would be to the budget if he were to take 5% for employees making less than $50,000 a year and again, that cost would be $35,000, and that amount is just about commensurate to the initial amount that the Commission was given back in July. City Manager Szerlag said for the first time we are going to computerize our Performance Evaluations to make it easier, and also to avoid some mathematical calculations. There is going to be a scale of 1 to 4, and depending on what someone's performance is, based on their evaluation, they will get anywhere from 0 to a percent that is greater than 4%. The most a rater can give is 4% but after the Evaluation Forms are turned in, the Department Head can make a recommendation to give certain employees within their purview of authority, more than 4% based on exceptional performance, however, each Department cannot exceed 4% of payroll. A percentage increase for someone that makes under $50,000 a year is less than the same percentage increase for someone that makes $100,000 a year, it is half that amount. If the Commission wants to give up to 5% for that category of full-time employee, it would cost an additional $35,000 over what he articulated and still less than what he indicated initially. Commissioner Scholl said then that those over $50,000 has to average 4%, and those under $50,000 has to average 5%, and he explained that some of the Commission took exception to where some of the cuts were made, and that City Manager Szerlag is trying to be pragmatic about trying to balance that out. Vice Mayor Thaler asked why you need the increase of $35,000, if you take the whole pot and you give 5% to those who are under $50,000, and to get the 4%, all you will be taking is a few cents away from those earning over $50,000, and City Manager Szerlag said it would be about 12%. Mayor Edelcup said you also have the problem that not every employee making under $50,000 is deserving of a 5% increase. 3 Summary Minutes: Special City Commission Meeting September 11,2008 First Budget Hearing Sunny Isles Beach, Florida City Manager Szerlag said the reason he did the Bar Chart is, if you look at the expense side on the left, which has the purple rectangle, indicates $14,825,135, that is what was given with the 5%; and now he has $14,794,135 which is a 4% rate increase, and so the number the Commission was given initially compared to what he would expense for FY 08/09 is less. He can take that difference, give the same number he presented initially, and take care of the lower tiered employees by giving them 5% without increasing the number. It also shows why the Surplus is less now than it was earlier. Mayor Edelcup explained if you want to give the 5% then you will have to add $35,000 more to the budget because it is not listed here, although it comes out the same because of the cut in personnel positions. It was the consensus of the Commission to put back the $35,000 and challenge the staff, between now and Second Reading, to find $33,000 to $35,000 elsewhere, other than taking it out of Surplus, so that those under $50,000 will be able to get up to 5% and it won't penalize as much the people above $50,000. Mayor Edelcup said that it still means that once you put that in there, the people in that income bracket can still get more or less than 5%. City Manager Szerlag said that during a staff meeting, there was a request to renew Workers' Compensation Insurance and he had asked for some quotations, just to calibrate the quote that we had received. He asked the Commission, what ifhe received a quote that was greater than $35,000, and the Commission said that would cover that increase. City Manager Szerlag said that he did find a savings in Workers' Compensation already. Assistant City Manager Doug Haag said that on the September 18, 2008 Commission meeting agenda there will be a recommendation that we switch our Workers' Compensation carrier because we got a very favorable proposal from the Florida League of Cities pool, and it is a pretty substantial savings but we are still finalizing the numbers. Vice Mayor Thaler said in one of the notes that came by on the cost of the school to the City was $17,000 of insurance, why do we need additional insurance, and Mr. Haag said he will double check that. We have a separate cost center this coming year for the school which includes the crossing guards, an extra officer and insurance benefits for that officer, but he doesn't recall any additional property or casualty insurance. Commissioner Scholl said he recalls it and his assumption was that it was the cost associated with Pelican Community Park. Mayor Edelcup noted a typo in Section 1 of the Resolution, it should be Fiscal Year 2008/ 2009 not 2007/2008. Commissioner Brezin moved and Vice Mayor Thaler seconded a motion to approve the resolution, as amended. Resolution No. 2008-1305 was adopted by a roll call vote of5-0 in favor. Vote: Commissioner Brezin Commissioner Goodman Commissioner Scholl Vice Mayor Thaler Mayor Edelcup yes yes yes yes yes 4 Summary Minutes: Special City Commission Meeting September 11,2008 First Budget Hearing Sunny Isles Beach, Florida 3B. Budget Ordinance (Public Hearing) An Ordinance ofthe City Commission of the City of Sunny Isles Beach, Florida, Adopting an Operating and Capital Outlay Budget for the Fiscal Year Commencing October 1, 2008 through September 30,2009, Pursuant to Section 200.65, Florida Statutes (Trim Bill); Authorizing Expenditures of Funds Established by the Budget; Authorizing Encumbrances; Authorizing Issuance of Checks; Providing for Grants and Gifts; Providing for Post Audit; Providing for Severability and Providing for an Effective Date. Action: City Clerk Hines read the title. Mayor Edelcup asked for a motion to approve the Ordinance on first reading with the amendment of adding $33,000 to $35,000 for salary increases, to be offset by some other cost-savings. Commissioner Scholl moved and Commissioner Goodman seconded a motion to approve the proposed ordinance on first reading, as amended. The motion was approved by a roll call vote of 5-0 in favor. Second reading, public hearing will be held on Thursday, September 25, 2008, at 6:30 p.m. Vote: Commissioner Brezin ~ Commissioner Goodman yes Commissioner Scholl yes Vice Mayor Thaler yes Mayor Ede1cup yes 4. DISCUSSION ITEMS 4A. Add-On Discussion to Schedule a Workshop in October. Action: Mayor Edelcup said that they have been getting a lot of calls about the increase in some of the minor areas of crime, and whether or not we have adequate staff to handle the increased level. He suggested scheduling a Workshop in October to discuss this and to get a public safety update from Police Chief Fred Maas. It was the consensus of the Commission to schedule a workshop on Thursday, October 16, 2008 at 5:00 p.m. 5. ADJOURNMENT Mayor Ede1cup adjourned the meeting at 7:13 p.m. Respectfully submitted by: , ' Approved by the City Commission on Oct. 16, 2008 ~.~"~ Jane A. Hines, CMC, City Clerk 5