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08-08-22 Budget Workshop Adopted MiuntesMINUTES Budget Workshop Meeting } Monday, August 8, 2022 - 5:00 PM Commission Chamber ATTENDANCE: Present: Ellen Glasser, Mayor - Seat 1 Bruce Bole, Commissioner - Seat 2 Michael Waters, Commissioner - Seat 3 Candace Kelly, Commissioner - Seat 4 Brittany Norris, Mayor Pro Tem / Commissioner - Seat 5 Also Present: Shane Corbin, City Manager (CM) Brenna Durden, City Attorney (CA) Donna Bartle, City Clerk (CC) Vanessa Angers, Records Clerk (RC) CALL TO ORDER Mayor Glasser called the meeting to order at 5:00 pm. 1. PUBLIC COMMENT None. 2. FY 2022-2023 BUDGET TOPICS CM Corbin stated this meeting was the first of three Budget Workshops, and more could be requested if needed. He reviewed the budget meeting process emphasizing the larger budgets being the Police Department, Public Works, and Utilities. He stated the other departments are relatively flat and do not have much change in the budget. Finance Director (FD) Burns presented an overview (attached hereto and made part of this Official Record as ATTACHMENT A) of the Fiscal year 2022-23 Budget, Commission Workshop #1. Commissioner Norris asked if ARPA funding was included in the FY2023. FD Burns responded the second allotment of ARPA funds was included. ATTACHMENT A of 8-8-22 Minutes A. Ad Valorem Taxes FD Burns reviewed the current millage rate as 3.2285, property values increased 12%, rolled back millage rate is 2.8937. She mentioned the City is required to budget at least 95% of the Tax Levy and the City usually budgets between 95-97% of the levy. FD Burns provided additional information regarding the City's Ad Valorem Taxes. Budget Workshop August 8, 2022 Mayor Glasser spoke about reducing the millage rate by .125, returning $33 monthly to the citizens. She expressed the reduction would not greatly affect the City and its project. She mentioned with the external factors of inflation, lowering the millage rate would be meaningful to the citizens. She asked for the Commission to consider her suggestion. Commissioner Boles spoke about inflation rates, expressed his concern about lowering the millage rate, and limited necessities in the unknown future. Commissioner Kelly expressed her opinion of rolling back the millage rate instead of saving for future projects and climate change. Commissioner Waters explained he would like to talk to additional people about the future of inflation rates before making a decision. Commissioner Norris asked if she could be provided a total savings amount a citizen would receive with the rollback rate from COJ and if the COAB rolled its rates. FD Burns responded she would provide that information at a later date. Commissioner Norris expressed her thoughts that $33 a month of saving is not a huge win for households, but the rollback would be a big hit for the City. She expressed concerns about housing market prices, inflation, and the difficulty of raising the millage rate in the future if needed. She is open to further discussion. Mayor Glasser summarized her opinion on lowering the millage resulting in cutting the City's budget by $300,000. She asked CM Corbin to add the topic for further discussion on the next budget agenda. Commissioner Norris asked for a sample budget showing the possible $300,000 cut for the City. CM Corbin and FD Burns responded the cut would most likely affect capital projects. B. Other General Fund Revenues FD Burns explained a decrease in Electric Utility Taxes of 11.5% in FY2021 and a slight rebound of 1.4% in FY2022. She spoke about revenue estimates decreased for the General Fund by -1.27% Municipal Revenue Sharing and Local Government Half Cent Tax -2.24% (not Better Jax Funds). C. Salary Increases FD Burns noted a 5% increase for all General Employees. 10% increase for Police Officers and 17% for ABPD Command Staff, and a 7.5% increase in health insurance. Commissioner Waters asked about the additional increase from Command Staff and who directly the increase would affect. CM Corbin explained the Command staff is separate from the Union and the Union employees received a raise last year the Command staff Budget Workshop August 8, 2022 did not. The Command staff includes the Chief, Commanders, and Lieutenants (totaling five). FD Burns reviewed the Police Department with an increase of 2% to include two additional officers, step -plan and pay adjust for Command staff, and five additional vehicles. The Fire and Lifeguard budget increased by 1.69% overall. Mayor Glasser asked for a complete list of all employees' salaries and proposed raises. FD Burns said she would provide that information at the next Budget Workshop. D. Public Safety Police Chief (PC) Victor Gualillo explained that COAB and Duval county is having difficulty recruiting Police Dispatch. PC Gualillo reviewed information regarding the pay increase JSO offered last year to Dispatchers in training to help fill open positions. PC Gualillo is asking for COAB to increase its pay to match JSO, which would be a 23% increase. Commissioner Waters asked about the status of the previously requested additional officers. PC Gualillo explained due to the economy and the struggle with Officer recruiting, the budgeted positions were not filled. Commissioner Waters asked about the protocol for police vehicle replacement. PC Gualillo responded vehicles are typically replaced at 70k -100k miles and input from mechanic and maintenance records. Police Chief Victor Gualillo spoke about the Public Safety Officer, Ocean Rescue, and Non -Sworn Employees position and suggested adjusting compensation to attract qualified applicants. Commissioner Kelly asked if the City had difficulty staffing Lifeguard positions. PC Gualillo said there was some difficulty in staffing all the positions. Police Chief Victor Gualillo reviewed the staffing needs (36 total officers) and the reasoning for additional officers for the Police Department. He spoke about the strain on the current officers with the number of current officers. Mayor Glasser reviewed the current number of officers and other budgeted positions within the department stating the current officers do a great job. Mayor Glasser asked what the Commission could do to assist Officer Stafford, who was not vested before getting injured. Human Resources Director (HRD) Cathy Varian explained Officer Stafford has applied for disability through the Pension Board, and HR is working with him regarding other benefits. Mayor Glasser asked HRD Varian to please speak with the Commission with any questions or suggestions in assisting Officer Stafford. Mayor Glasser asked what portion of the City's total budget is spent on Public Safety. FD Burns would provide that information at a later date. Budget Workshop August 8, 2022 Commissioner Boles asked about the savings regarding hiring a staff attorney. FD Burns responded that information was not included in the budget. HRD Varian confirmed that the seasonal part-time positions - lifeguards, crossing guards, and parking enforcement — are currently on a step plan starting at $15.00 per hour and are included in the 3% COLA. CM Corbin explained if no objections or concerns are received from the Commission regarding the Police Budget presented tonight, he will move forward with the proposed budget and provide the final details to the Commission for review. 3. CITY COMMISSION COMMENTS/QUESTIONS Comments and questions were addressed during the presentations. ADJOURNMENT Mayor Glasser adjourned the meeting at 6:07 p.m. Attest: 17717 -i v4mvni t34�z Donna L. Bartle, City Clerk Elle asser, Mayor Date Approved: I 0/1CL,?_ 2— Budget Workshop August 8, 2022 ATTACHMENT A 8-8-22 Minutes .ATLANTIC BEACH n OVERVIEW ATTACHMENT A 8-8-22 Minutes General Fund $ 16,075,519 $ 17,679,214 $ 18,141,185 2.61% Special Revenue Funds 12,267,291 15,915,821 15,558,749 -2.24% Water Funds 6,871,358 6,903,345 6,984,664 1.18% Sewer Funds 8,609,502 8,687,903 8,593,313 -1.09% Sanitation Fund 2,434,719 2,436,126 2,491,329 2.27% Building Dept. Fund 575,629 595,095 625,381 5.09% Stormwater Fund 4,215,663 4,302,604 4,780,320 11.10% Pension Funds 3,591,245 3,857,035 3,367,636 -12.69% Total $ 54, 640, 926 $ 60, 377,143 $ 60, 542, 577 0.27% * Largely due to ARPA Funds j•Jr 1r t .ATLANTIC BEACH DISCUSSION ITEMS • Ad Valorem Taxes • Other General Fund Revenues • Salary Increases • Public Safety ATTACHMENT A 8-8-22 Minutes i S 411 r/ri J �f ATLANTIC BEACH ATTACHMENT 8-8-22 Minutes `�Ji:1Jl' • i���` ` 1` v v AD VALOREM TAXES • Current Millage 3.2285 • Property Values increased 12°/o • Rolled Back Millage Rate is 2.8937. At this rate the tax levy will be the same as FY2022. • Required to budget at least 95% of Tax Levy • The City usually receives between 95-97% of the levy �\ ATLANTIC BEACH ATTACHMENT A 1 8-8-22 Minutes \� v rm AD VALOREM TAXES • In addition to Truth in Millage (TRIM) requirements, local governments must conform to the maximum millage limitation requirements which include the voting requirements of the governing board • The City's maximum millage that only needs a majority vote is 3.0782 mills • The City can use a higher rate up to 3.2285 mills, but any rate more than 3.0782 mills would require a two-thirds vote of the governing board. • A two-thirds vote is based on the full membership of the body, not on the members present JSrS_L r,N ATLANTic BEACH \�rV Jli J/ 0 AD VALOREM TAXES ATTACHMENT A 8-8-22 Minutes 0.2250 3.2285 $ 7,769,175 $ 805,674 $ Two -Thirds 0.1250 3.1035 $ 7,468,371 $ 504,870 $ (300,804) 0.1500 3.0785 $ 7,408,210 $ 444,709 $ ( 60,161) 0.1503 3.0782 $ 7,407,488 $ 443,987 $ (722) Majority 0.1750 3.0535 $ 7,348,049 $ 384,548 $ ( 60,161) 0.2000 3.0285 $ 7,287,888 $ 324,387 $ ( 60,161) 0.2250 3.0035 $ 7,227,727 $ 264,226 $ ( 60,161) 0.2500 2.9785 $ 7,167, 566 $ 204,065 $ ( 60,161) 0.2750 2.9535 $ 7,107, 406 $ 143,905 $ ( 60,160) 0.3000 2.9285 $ 7,047,245 $ 83,744 $ ( 60,161) 0.3250 2.9035 $ 6,987,084 $ 23,S83 $ ( 60,161) 0.3348 2.8937 $ 6,963,501 $ - $ (23,583)l ATLANTIC BEACH r AD VALOREM TAXES • Taxable Values will be Increasing for 2022 Tax Year ATTACHMENT A 8-8-22 Minutes • See Example below for the effect of increase taxable value and the current millage rate and a millage rate .125 mills lower Taxable Value Proposed FY22 (2021) FY23 (2022) Differences $ 256,694 $ 265,894 $ 9,200 Taxes @ 3.2285 Mills 828.74 858.44 $ 29.70 Increase in Taxes Taxes @ 3.1035 Mills 825.20 Difference in Taxes $ (33.24) Decrease in Taxes from 3.2285 Mills • Due to increase in taxable value 3.2285 mills translates to $29.70 tax increase • A.125 reduction in millage is a $33.24 decrease in taxes from 3.2285 mills and a $3.54 reduction from FY2022 (2021 Tax Year) ATLANTIC BEACH F,, Minutes l � OTHER TAXES & INTERGOVERNMENTAL REVENUES —General Fund • Decrease in Electric Utility Taxes • Decreased 11.5% in FY2021 • A slight rebound of 1.4% in FY2022 • Other Utility Taxes remain the same • Revenue Estimates Have Decreased for General Fund: • Municipal Revenue Sharing -1.27% • Local Government Half -Cent Sales Tax — 2.24% (Not Better Jax Funds) ATLANTIC BEACH PERSONNEL • 5% Increase in Wages for General Employees ❑ Other Local Governments are between 5-7% ❑ State of Florida is 5.38% • 10% Increase For Police Officers ❑ Received 7% in 2022 ❑ Additional 10% requested to remain competitive • 17% For A B P D Command Staff ❑ Did not receive 7% increase in 2022 ❑ 10% to match officer request, see above • 7.5% Increase In Health Insurance ATTACHMENT A 8-8-22 Minutes ATTACHMENT A ATLANTIC BEACH fy s� 8-8-22 Minutes r PUBLIC SAFETY • Police Budget totals $5,882,137; an increase of 2% • Requesting two additional officers — ($250,000 for Officers and Equipment) • Requesting step -plan and pay adjustments for Command Staff, Emergency Communication Operators (ECOs) & Emergency Communication Supervisor (ECS) • Requesting 5 vehicles • 3 Replacements • 2 for the additional officers requested 0 Fire/Lifeguards Budget increase 1.69% overall •S �A.�l r r ATLANTIC BEACH �r t- PUBLIC SAFETY — Sworn Admin Staff ATTACHMENT A 8-8-22 Minutes • Provide the Same Benefits as Sworn Police Officers which include: • Promotional Pay Compensation —Promoted Officers with six months service in current step as of 10/1 of each year will advance to next step • Officers promoted to an Administrative Staff Position will enter the step plan of their promoted rank at no less than a 10% increase from their previous ABPD step plan • Step plan adjustments to match Union agreements for Lieutenant and Commander to correct pay compression —17% Total: • FY2022 — 7% • FY2023 — 10% • Adjust pay scale of Chief an average of 9.65% 'rS syLl r/., JS AT ATLANTIC BEACH + TACHMENT A 8-8-22 Minutes PUBLIC SAFETY — ECCIs & ECS • Increase ECO and ECS salaries appox. 23% to compete with JSO In Training (Year 1) $44,000 $34,652.80 Year 1 (ABPD) $35,692.80 216 Year $46,200 (5% Increase) $37,460.80 (5% Increase) 3rd Year $49,896 (8% Increase) $38,584.00 (3% Increase) • ECO and ECS with at least Six (6) months service in their current Step as of October 1 of each year will be advanced to the next step. • ECO's promoted to ECS will enter the ECS step plan in the same manner as police officers that are promoted ATTACHMENT A ATLANTic BEACH t 8-8-22 Minutes JH PUBLIC SAFETY — Part -Time Officers • The current rate of pay is $20 per hour, which has not changed since 2017 • Not eligible for benefits such as insurance and retirement • Adjust compensation to the same as full-time sworn officers to attract well qualified applicants 1 i `irly'� ATLANTIC BEACH r> ATTACHMENT A 8-8-22 Minutes C PUBLIC SAFETY — Ocean Rescue • Seasonal Part -Time positions — no benefits such as insurance or retirement • First time in many years all needed positions were not filled • Provide same COLA as other employees receive PUBLIC SAFETY — Non -Sworn Employees • Are not on a Step -Plan • Continue to provide salary increases as other employees receive SrS,I Jr'r'; ATLANTIC BEACH rl )Two Add ATTACHMENT A 8-8-22 Minutes PUBLIC SAFETY � itional Police Officer Positions (34) 32 Officers •cers 20 Patrol (1 Sgt/4 Off) 2 Relief Shifts 2 Traffic 1 TDY to CID Admin (6) 24 Patrol (1 Sgt./ . Off) 1 Traffic Officer TDY to CID Admin (6)