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HomeMy WebLinkAbout2005-07-12 - City Commission Budget Workshop Meeting MinutesCITY OF TAMARAC CITY COMMISSION BUDGET WORKSHOP MEETING TUESDAY, JULY 12, 2005 CALL TO ORDER: Mayor Schreiber called the Budget Workshop Meeting of the City Commission to order on Tuesday, July 12, 2005, at 9:35 a.m. in Room 105 of Tamarac City Hall, 7525 NW 88'h Avenue, Tamarac, Florida. PRESENT: Mayor Joe Schreiber, Vice Mayor Beth Flansbaum-Talabisco, Commissioner Edward C. Portner, and Commissioner Karen L. Roberts. ABSENT: Commissioner Marc L. Sultanof. ALSO PRESENT: City Manager Jeffrey L. Miller, Deputy City Manager Michael C. Cernech, Interim City Attorney Samuel S. Goren, and City Clerk Marion Swenson. Mayor Schreiber led the pledge of allegiance. City Manager Miller discussed the city's financial highlights and noteworthy items in the FY06 Budget, and said the FY06 Strategic Goals are a roadmap to the future. Finance Director Chapman said the proposed budget includes no increase in operating millage rate; it is being held at 5.9999, the same as it has been for the past five years. The property appraiser reported in June a 14.5% increase in property valuation that exceeds last year's estimate by approximately $2.1 million. Commissioner Roberts asked if the difference of .2 mils is included in this budget and Finance Director Chapman said it is not. Mayor Schreiber questioned the surplus and Finance Director Chapman explained the monies are allocated by the outside auditors and further discussed the surplus. Commissioner Roberts asked if by law monies have to be reserved and Finance Director Chapman said it is not law but it is recommended practice and something bond writing agencies look at. Finance Director Chapman also explained using recurring revenue for recurring expenses. Mayor Schreiber questioned economic stabilization and Finance Director Chapman explained economic stabilization is for a one-time catastrophic event. Commissioner Portner asked about the budget process and whether each director spends the maximum in their budget. Finance Director Chapman outlined the process from worksheets to budget approval, and said the directors are careful in managing their departments' money. Budget Workshop July 12, 2005 Page 1 of 8 Commissioner Portner questioned the amount of interest collected for the $4 million in the insurance fund and Finance Director Chapman said the investment portfolio realizes about 3%. GENERAL FUND REVENUE HIGHLIGHTS Commissioner Roberts questioned increases in the Building Department fees and confirmed if the commission does not adopt the increases then there will be a shortfall of $300,000. Finance Director Chapman said the Building Department is looking at the fees based on service. DEPARTMENT HIGHLIGHTS Mayor Schreiber questioned page 4-7; item 43-01, increase in electricity cost for Building Department. Management and Budget Officer Sammartino explained usage for the past year was estimated since it is a new building; this year it is being separated from Public Works. Commissioner Roberts questioned the increase in electricity for public works — page 12.24; item 43-01. Management and Budget Officer Sammartino said the usage was more than expected. Vice Mayor Flansbaum-Talabisco questioned the program modification at page 4-6, in particular language regarding "inspectors with less burdensome licensing requirements", and asked for assurances the city will not be compromised. Building Operations Manager McIntyre explained this position will only perform roofing inspections and the city will not be compromised. Commissioner Portner questioned the $20,000 program modification at page 5-4; and Community Development Director King explained the grant through the county handles streetscape in rights -of -ways and the city wants to extend it into private property so we will have architectural guidelines for buildings and features on buildings. Mayor Schreiber questioned the increase in professional services at page 5-10; item 31-00. Management and Budget Officer Sammartino said this refers to the program modification previously discussed. Mayor Schreiber questioned page 5-10; item 41-01 increase in telephone costs and Management and Budget Officer Sammartino explained while the rates have not gone up there is better allocation of phone costs. Vice Mayor Flansbaum-Talabisco questioned the program modification at page 5-5; hiring housing administrator but not filling the planning position, and asked if the city would be compromised. Community Development Director King said planning activities have slowed down and there is only 1 % vacant property left in Budget Workshop July 12, 2005 Page 2 of 8 the city. Community Development is reorienting staffing needs to housing functions; there are a sufficient number of planners on board. Commissioner Roberts questioned page 5-10; item 41-01. Management and Budget Officer Sammartino explained IT has worked with accounting to place phone costs in the appropriate lines. Commissioner Portner questioned page 6-17; item 41-10, postage. Finance Director Chapman spoke of billing being outsourced and the fact that postage is being paid differently. Vice Mayor Flansbaum-Talabisco questioned page 6-10, goals and objectives, in particular the decreased usage of the facility but an increase in payments received. Management and Budget Officer Sammartino said staff is looking at ways to better utilize the facility. Vice Mayor Flansbaum-Talabisco asked if this is an achievable goal and if staff is still looking for a tenant. Finance Director Chapman said the city is not actively looking for a tenant at this time but they are trying to increase services provided at that location. Commissioner Roberts questioned page 6-10, decrease in visitors, opening of new accounts, and payments received. Management and Budget Officer Sammartino said the 2005 projected numbers may be high; they were based on us having a co -tenant. Commissioner Portner asked when the lease is up and if there would be an increase in rent. Finance Director Chapman said it is up at the end of the year and there are renewal options. Mayor Schreiber questioned page 6-15, salaries and wages. Management and Budget Officer Sammartino spoke of splitting a customer service representative between utilities and customer service in the previous year, which did not work out. The position has been fully returned to customer service. This is also reflected at page 6-3, finance administration salaries and wages. Mayor Schreiber questioned other operating increases and Management and Budget Officer Sammartino explained this is the same as the postage and billing reallocation of monies. Mayor Schreiber questioned page 6-13; item 49-33, credit card fees. Management and Budget Officer Sammartino said this is due to increased usage. Commissioner Portner asked about the charges for using credit cards and Finance Director Chapman said that depends on the card, how it is used, and the location. At this point, finance is working with Wachovia Bank to establish a consistent, lower rate for the entire city. Commissioner Partner asked if it is Budget Workshop July 12, 2005 Page 3 of 8 Possible to refuse certain cards and Finance Director Chapman said it is possible; at this point in time we do not accept American Express. Mayor Schreiber asked if using credit cards improves service and reduces work and Finance Director Chapman said it reduces paper work. Commissioner Roberts questioned page 6-16; charging $1.00 to those who pay by phone and asked if this is realistic. Finance Director Chapman said anybody who pays a utility bill by phone will be charged $1.00 to help recover the cost of putting in the system. Vice Mayor Flansbaum-Talabisco confirmed this is similar to the charge for using an ATM. Commissioner Roberts questioned page 6-17; item 34-01, employment agency fees. Finance Director Chapman said this is for temporary employees should they be needed. Commissioner Portner questioned page 6-17; item 34-02, other consulting services. Management and Budget Officer Sammartino said this relates to the program modification at page 6-16. Commissioner Partner questioned page 8-3; item 55-03, and asked that the letter "M" be changed to "T" to reflect Vice Mayor Flansbaum-Talabisco. Commissioner Roberts questioned page 8-3; item 34-01, employment agency fees. Management and Budget Officer Sammartino said this is more in line with what was actually spent. Commissioner Roberts questioned page 8-3; item 34-02, contractual services. Management and Budget Officer Sammartino said this is annualized in the budget. Commissioner Roberts questioned page 8-3; item 97-00, contingencies. Management and Budget Officer Sammartino said this was set up for a program a few years ago but had not been used; it is specifically for use by the Mayor and City Commission. Commissioner Roberts questioned page 8-4; item 82-01, chamber of commerce. Commissioner Roberts said there has been no request from them but the sum of $35,000 is in the budget; she would prefer giving them $10,000. However, at $35,000 Commissioner Roberts said she would prefer the chamber not get free room rental and they should not charge the city $2,280 to wrap the buses. Mayor Schreiber said it would be up to the Mayor and City Commission not to allow anything extra should the chamber be given the $35,000, Commissioner Roberts questioned whether the chamber is using the money they receive from the city in the most fitting manner. Vice Mayor Flansbaum-Talabisco said the city made a loan to the chamber and Budget Workshop July 12, 2005 Page 4of8 we did not stipulate how they should use the money; we should not judge them harshly until we get a report from them. Commissioner Roberts said a report had been requested from the chamber but the city has received nothing yet. City Manager Miller explained the chamber came before the Mayor and City Commission in workshop session about a year ago and laid out their accomplishments and anticipated progress, as well as the reasons they needed the money. The chamber is doing well and City Manager Miller recommended the chamber make a presentation to the Mayor and City Commission at an upcoming workshop. All were in agreement. Vice Mayor Flansbaum-Talabisco questioned a prior discussion held in workshop session regarding the Transplant House. Management and Budget Officer Sammartino said the donation was made during the past year and was not requested for this budget. Mayor Schreiber questioned page 8-3; item 54-02, increase in dues and memberships, and suggested negotiating down the dues and membership fees to various organizations. All were in agreement. Commissioner Portner asked that all organizations on page 8-4 be increased by the amount of $250.00 each. Commissioner Roberts questioned page 8-4; item 82-10, BRACE Scholarship - increase from $2,500 in FY05 to $2,750 for FY06. Vice Mayor Flansbaum-Talabisco and Commissioner Roberts said they would prefer to have Commissioner Sultanof here for the discussion before increasing donations to the organizations. Finance Director Chapman suggested increasing the budget for each organization by $250.00 and increasing the Area Agency on Aging amount to the agency's requested $68,333. Since checks are not cut until October 1; if the Mayor and City Commission decide to do something different, they can make changes. All were in agreement. Commissioner Roberts questioned page 8-7, contractual services. Assistant City Manager Phillips explained money was budgeted for citizen surveys; also during the retreat the Mayor and City Commission agreed to move forward with the sterling process. Funding is included for continued training for two employees who are certified sterling examiners. Commissioner Portner questioned page 8-8; item 23-02, decrease in health insurance, and Finance Director Chapman said the FY2005 budget may have been high. Budget Workshop July 12, 2005 Page 5 of 8 Commissioner Portner questioned page 8-8; item 24-00, decrease in workers' compensation. Management and Budget Officer Sammartino said this is down citywide. Mayor Schreiber asked why there are two management interns and the benefit to the city. Deputy City Manager Cernech explained many of our interns are hired to fill vacant positions at the end of their internship. Management and Budget Officer Sammartino said in FY2005 the city only funded one intern. Vice Mayor Flansbaum-Talabisco questioned page 8-11; other operating expenses and the increase from $52,900 - $87,800. Management and Budget Officer Sammartino said this is to print calendars. Commissioner Roberts questioned the printing of the calendars and Finance Director Chapman said part of the city's strategic plan is to enhance visibility and the Public Information Office looked at creative ways to get information to the citizens. Commissioner Roberts questioned page 8-13; item 56-09, citizen education program. Public Information Officer Crockett said this was for banners to encourage voter participation during the last election. Commissioner Roberts questioned why she was called on her private line regarding the citizen survey sent to her husband, and why, when the surveys are returned they will identify the person responding. Assistant City Manager Phillips said the survey asks people to verify their address; the city hopes to create a demographic analysis at the end of the survey. Mayor Schreiber questioned page 8-13; item 47-01, printing -other. Finance Director Chapman said this reflects the increase due to the program modification regarding the calendars. Commissioner Roberts asked how many calendars would be printed and Public Information Officer Crockett said there will be one for every household. Management and Budget Officer Sammartino said funding for the charter board was removed from boards and committees. Mayor Schreiber said the audit for FY2004 shows the city attorney's office had expenses of $633,900. The estimated charge for the Interim City Attorney is $350,000 for FY06. Mayor Schreiber asked if that is a factual number. Finance Director Chapman said it is calculated on $30,000 per month for legal services, based on billing from Mr. Goren's law firm. Commissioner Portner questioned the hourly billing and Interim City Attorney Goren said it is as was agreed to; $175.00 per hour, less for paralegals, plus out of pocket expenses. Management and Budget Officer Sammartino said the program modification for Budget Workshop July 12, 2005 Page 6 of 8 the City Clerk's office is due to the spring 2006 election. Mayor Schreiber said based on the fact that the Supervisor of Elections informed the city we are facing a cost of $100,000 for the upcoming election, he recommends the city revisit changing our election date from March to November and increase the terms from three year terms to four year terms. There was no disagreement with Mayor Schreiber's suggestion. Commissioner Roberts questioned page 8-21; other operating expenses. Management and Budget Officer Sammartino explained that is the additional $50,000 for the election. Commissioner Portner said it was his understanding the county was to pick up the cost for the voting machines, and suggested placing the referendum questions regarding change of election date and lengthened terms on the March ballot. Commissioner Roberts said she voted against the BSO contract and questioned page 8-26, police services, and said there has been a request by the elementary schools for more crossing guards and asked if this is budgeted. Finance Director Chapman said the budget numbers are the same as FY2005 but will include the extra guards. Commissioner Roberts questioned page 8-26; item 47-01, printing -other. Management and Budget Officer Sammartino said this is for citations. Educational assistance is not in the budget but is in the system. Finance Director Chapman added we are not budgeting to spend or add more money to that educational fund; the money is rolled over and at this time comes to about $11,000. Mayor Schreiber spoke about the increase in the budget for BSO and said he feels the city should have kept the costs down. City Manager Miller explained the contract varies from year to year with a 3.2% average over five years. There is a $4 million saving over the original proposal. Commissioner Roberts spoke of losing six deputies and getting five CSA's in their place. Additionally, experienced deputies have been replaced with rookies and Tamarac was not told this would be happening. Mayor Schreiber spoke about his concern with speeding and lack of enforcement on the part of BSO. Vice Mayor Flansbaum-Talabisco asked for assurances, as previously given to the city by BSO Chief Dugger and Sheriff Jenne that the level of services will not change, and if there is any problem it will be fixed. BSO Chief Dugger said that was assured. Budget Workshop July 12, 2005 Page 7 of 8 Commissioner Portner spoke of requiring truck traffic on Commercial Boulevard to travel in the right lane. Public Works Director Strain said the state only permits enforcement of that rule on limited access highways. Commissioner Portner asked that a letter be sent to the state representatives. Commissioner Roberts questioned page 8-27; items 97-00 and 97-02, contingency. Finance Director Chapman said they are separate line items and there is a total of $500,000 in these line items. Contingency is generally in the 1 % - 2% range, ours is a little higher. Mayor Schreiber asked for an explanation of non -departmental and Finance Director Chapman said it consists of items not attributable to any one specific department; it is for citywide expenses. Mayor Schreiber questioned page 8-27; items 91-01 and 91-08, and Finance Director Chapman said 91-01 is for EMS services and 91-08 is for general fund capital projects in FY06. Commissioner Portner asked who is responsible for contingency funds and Management and Budget Officer Sammartino said if during the year something unforeseen occurs and there is no money in a department's budget to cover, funds can be transferred from the contingency fund. Commissioner Roberts asked for a list of what was spent last year from the contingency fund. Mayor Schreiber recessed the workshop meeting at 12:00 noon to reconvene on Wednesday, July 13, 2005 at 9:30 a.m. in room 105. MARION S NSON, CMC CITY CLERK 1 Budget Workshop July 12, 2005 Page 8 of 8