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9-08-08MINUTES REGULAR CITY COMMISSION MEETING September 8, 2008 CITY HALL, 800 SEMINOLE ROAD Attendance IN ATTENDANCE: Mayor John S. Meserve Mayor Pro Tem Mike Borno Commissioner John L. Fletcher Commissioner Paul Parsons Commissioner Carolyn Woods City Attorney Alan C. Jensen City Manager Jim Hanson City Clerk Donna Bartle Call to Order/Pledge Mayor Meserve called the meeting to order at 6:00 p.m. The Mayor gave the Invocation, followed by the Pledge of Allegiance to the Flag. Approval of Minutes 1. Approval of the minutes of the Regular Commission Meeting of August 25, 2008. Motion: Approve the minutes of the Regular Commission Meeting of August 25, 2008, as written. Moved by Borno, seconded by Parsons. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED Courtesy of the Floor 2. Courtesy of the Floor to Visitors. Mayor Meserve opened the Courtesy of the Floor to Visitors. He welcomed the audience and explained the process for public comments. Michael Hoffmann, 176 Camelia St., addressed the Commission regarding Item 7C, stating he was concerned about the map as it relates to 135. Don Remley,1309 Violet Street, addressed the rate increases, stating no rule or rate increase should be passed that does or appears to discourage conservation of any resource. Stephen Kuti,1132 Linkside Drive, stated he does not agree with the proposed tiers in the new rate increase. Charles Harcourt Bu11,1810 Sevilla Blvd., Apt. 304, addressed the proposed Assistant City Manager position stating he was concerned there is not enough work for an Assistant in a town of 14,000. He was also concerned that the Chief of Police will move into that position with no competitive recruitment. Ellen Glasser, 421 Oceanwalk Dr. S., addressed the Commission regarding the proposed increase in property taxes and the recapture rule. September 8.2008 REGULAR COMMISSION MEETING Page 2 Milton "Sarge" Hall, 685 Amberjack Lane, complimented Dale Hatfield for his quick actions in having the recent sinkhole repaired on Mayport Rd. He further stated he believes Atlantic Beach needs to be looked at as a whole, not as a black thing, or a white thing, or a Westside thing. He stated it is about all of the citizens living here and enjoying the culture of beach life and having the opportunity for their children to grow up and be successful. Craig Dunning, 351 Seminole Road, addressed the Commission regarding repairs to Seminole Road. He stated the road is not wide enough for traffic, needs gutters, and cars parked on right-of--way block the view of drivers backing out of their driveways. He also complimented the Police Department for addressing the speeding issue on Seminole Road. No one else from the audience spoke so Mayor Meserve closed the Courtesy of the Floor to Visitors. Unfinished Business 3. Unfinished Business from Previous Meeting from Previous A. City Manager's Follow-up Report. Meeting None. Consent Agenda 4. Consent Agenda ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE BY THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN THE FORM LISTED BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS. IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND WILL BE CONSIDERED SEPARATELY. SUPPORTING DOCUMENTATION AND STAFF RECOMMENDATIONS HAVE BEEN PREVIOUSLY SUBMITTED TO THE CITY COMMISSION ON THESE ITEMS A. Acknowledge receipt of Monthly Public Works and Utility Departments Report for August 2008. Mayor Meserve read the Consent Agenda. Motion: Approve Consent Agenda Item A, as read. Moved by Borno, seconded by Fletcher. Votes: Aye: 5 - Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED Committee Reports 5. Committee Reports None. Action on Resolutions 6. Action on Resolutions None. Action on Ordinances 7. Action on Ordinances Seatember 8, 2008 REGULAR COMMISSION MEETING Pace 3 A. Public Hearings on adopting a Tentative Millage Rate and adopting Ordinance No. 20-08-91 establishing the Operating Budget for Fiscal Year 2008/2009 on first reading. AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009. (Note: The revised coax, as arovided to Commission at this meeting, is attached and made cart of this Official Record as Attachment A.) Mayor Meserve read Ordinance No. 20-08-91 by title only. Mayor Meserve explained the current millage rate is 2.9974, the proposed tentative millage rate is 2.9974, and the roll-back rate is 3.1317. The tentative millage rate is 4.27% lower than the roll-back rate. The roll-back rate is that rate it would take to maintain the same revenues as current year. The purpose of adopting the millage rate of 2.9974 is to maintain a level of ad valorem tax revenue sufficient to maintain adequate funding for the existing level of services at anticipated increased cost and to continue to maintain the City's infrastructure. Motion: Adoat tentative millage rate for oaeratina puraoses of 2.9974. Moved by Borno, seconded by Parsons. Mayor Meserve opened the Public Hearing. No one from the audience spoke so the Mayor closed the Public Hearing. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED Mayor Meserve explained the second item to be considered is Ordinance No. 20-08-91, establishing the Operating Budget for fiscal year 2008/2009 of $29,025,143. Motion: Adoat Ordinance No. 20-08-91, establishing the Oaerating Budget for fiscal veer 2008/2009, as read. Moved by Borno, seconded by Parsons. Mayor Meserve opened the Public Hearing. No one from the audience spoke so the Mayor closed the Public Hearing. Commissioner Woods stated there are some major problems she has with this budget: (1) no money budgeted for infrastructure for the water department; (2) budget was balanced by some unexpected lump sum money that was received and that cannot be counted on in the future; (3) she is still uncomfortable with the creation of the Assistant City Manager position which is an ongoing, Seutember 8, 2008 REGULAR COMMISSION MEETING Page 4 reoccumng expense in a time when the City is expecting revenues to be falling; and (4) believes police building funding needs to be looked at closer. Mayor Meserve stated the police building has not been designed yet, nor a size decided upon yet and believes there are plenty of ways for this Commission to address any concerns. He further stated he supports the Assistant City Manager position and explained his reasons why. Following concerns of Commissioners Woods and Fletcher, Mr. Hanson explained what has been completed regarding the infrastructure and stormwater system. Commissioner Fletcher commented on the Assistant City Manager position, stating from an organizational standpoint it makes sense. Commissioner Parsons stated he believes the Assistant City Manager position is viable for now. Regarding the infrastructure, he believes the work done on it performs very well. Commissioner Borno stated he appreciates the staff time spent on the budget and stated he supports the reorganization. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED B. Ordinance No. 95-08-96, Public Hearing and Final Reading AN ORDINANCE OF THE CTI'Y OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 12, NUISANCES, TO PROVIDE FOR QUICKER PAYMENT OF CITY FUNDED REMEDIATION COSTS, AND PROVIDING AN EFFECTIVE DATE. Mayor Meserve read Ordinance No. 95-08-96 by title only. Motion: Approve Ordinance No. 95-08-96, as read. Moved by Borno, seconded by Parsons. Mr. Hanson explained this ordinance allows the City to file a lien quicker following work done by the City on someone's lot when the owner would not do it. He stated many of those lots are houses that are for sale and if they can't get the lien filed quickly the City doesn't get their money before the house gets sold. Mayor Meserve opened the Public Hearing. No one from the audience spoke so the Mayor closed the Public Hearing. September 8 2008 REGULAR COMMISSION MEETING Page 5 Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED C. Ordinance No. 33-08-16, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, ESTABLISHING THE FOUR DISTRICTS FOR SEATS TWO THROUGH FIVE OF THE CITY COMMISSION, ASSIGNING CITY COMMISSION SEATS TO THE DISTRICTS, ADDING RESIDENCY REQUIREMENTS, SETTING AN ELECTION SCHEDULE, AND PROVIDING AN EFFECTIVE DATE. Mayor Meserve read Ordinance No. 33-08-16 by title only. Motion: Approve Ordinance No. 33-08-16, as read. Moved by Borno, seconded by Fletcher. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED D. Ordinance No. 55-08-34, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA INCREASING THE MONTHLY SANITATION RATES BY AMENDING CHAPTER 16, SOLID WASTE AND RECYCLING, ARTICLE I, SOLID WASTE DEFINITIONS AND PROCEDURES, SECTION 16-10 FEES FOR COLLECTION; PROVIDING FOR INTENT; PROVIDING FOR THE ADOPTION OF NEW RATES; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Meserve read Ordinance No. 55-08-34 by title only. Motion: Approve Ordinance No. 55-08-34, as read. Moved by Parsons, seconded by Borno. Mr. Hanson explained the rate increase raises the residential rates from $17.10 to $17.78 per month. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED E. Ordinance No. 80-08-77, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA INCREASING THE MONTHLY STORM WATER UTILITY FEE BY AMENDING CHAPTER 22 UTILITIES, ARTICLE IV, STORM WATER Seatember 8, 2008 REGULAR COMMISSION MEETING Page 6 MANAGEMENT, DIVISION 2 RATES AND CHARGES, SECTION 22-335 FEES; PROVIDING FOR INTENT; PROVIDING FOR THE ADOPTION OF ANEW RATE; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Meserve read Ordinance No. 80-08-77 by title only. Motion: Apurove Ordinance No. 80-08-77, as read. Moved by Borno, seconded by Parsons. Mr. Hanson explained this increases the monthly stormwater fee by $1.00/month. After further discussion, Mayor Meserve called for a vote. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED F. Ordinance No. 80-08-78, Introduction and First Reading AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE II, WATERWORKS SYSTEM, SECTION 22-27 CHARGES FOR WATER SERVICE, TO PROVIDE A REVENUE NEUTRAL SHIFT IN VOLUME CHARGES BY INCREASING THE LOWEST BLOCK RATE AND DECREASING THE UPPER BLOCK RATES EFFECTIVE OCTOBER 14, 2008 AND AGAIN FOR OCTOBER 1, 2009: AND AMENDING ARTICLE III WASTEWATER SYSTEM, DIVISION SEVEN, SEWER USER RATES AND CHARGES, SECTION 22-167 SCHEDULE OF WASTEWATER VOLUME CHARGES TO PROVIDE A REVENUE NEUTRAL SHIFT IN VOLUME CHARGES BY INCREASING THE LOWEST BLOCK RATE AND DECREASING THE UPPER BLOCK RATES FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS EFFECTIVE OCTOBER 14, 2008 AND AGAIN OCTOBER 1, 2009, AND PROVIDING FOR SEVERABILITY, AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Meserve read Ordinance No. 80-08-78 by title only. Motion: Apurove Ordinance No. 80-08-78, as read. Moved by Borno, seconded by Parsons. Finance Director Nelson Van Liere explained the tiers and rate increases. Discussion resulted in deferring the ordinance and directing staff to bring back a new proposal including new rate structures for the higher tiers to encourage water conservation. Staff was also directed to prepare a report explaining how much our cost for production of water is and an estimate of how much additional revenue we would receive if the proposed increase is on water rates only, not sewer. Motion: Defer Ordinance No. 80-08-78 until the next meeting. September 8, 2008 REGULAR COMMISSION MEETING Page 7 Moved by Borno, seconded by Fletcher. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED G. Emergency Ordinance No. 20-08-92 (attached and made part of this Official Record as Attachment B.) AN EMERGENCY ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008. Mayor Meserve read Ordinance No. 20-08-92 by title only. Mayor Meserve explained this emergency ordinance is for cost of debris removal due to Tropical Storm Fay. He stated the City will request reimbursement for the costs associated with the clean-up efforts. Motion: Approve Emergency Ordinance No. 20-08-92, as read. Moved by Borno, seconded by Fletcher. Mr. Hanson explained this is a budget amendment needed to pay the expenses for clean-up of Tropical Storm Fay. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED Miscellaneous 8. Miscellaneous Business Business A. Hopkins Creek TMDL Grant Funding Agreement Public Works Director Rick Carper explained the grant agreement. Motion: Approve settlement agreement and authorize Mayor to sign agreement. Moved by Fletcher, seconded by Parsons. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED B. Grease Trap Additives Public Utilities Director Donna Kaluzniak explained the regulations and restrictions for additives to grease traps. She further stated the cost to pump out a 900-1,000 gallon grease trap ranges from $160 to $195, which would be an annual cost of about $800. Ms. Kaluzniak's recommendation was that we follow the JEA program and not allow September 8, 2008 REGULAR COMMISSION MEETING Pace 8 addition of enzymes, emulsifiers and detergents, allow addition of bacteriological products, and not allow any longer than 90 days between pump-outs. C. Extension of First Vehicle Services Contract to Operate the City Gazage Mr. Carper explained the current contract with First Vehicle Services allows the City to renew the services for an additional five years. Motion: Approve extension of First Vehicle Services maintenance contract for a period of approximately five years, from 12/01/08 throuEh 9/30/13 (expiration date modified to coincide with City fiscal year), and authorize the City Manager to sign the proposed contract extension and amendments. Moved by Borno, seconded by Fletcher. Votes: Aye: 5 -Borno, Fletcher, Meserve, Parsons, Woods Nay: 0 - MOTION CARRIED City Manager 9. City Manager A. City Manager's Report Mr. Hanson reported the latest alcohol deployment revealed three businesses selling alcohol to minors from the fifteen businesses checked. Those businesses were K&W Discount Beverage Store, 469 Atlantic Blvd.; BP Food Store, 1211 Mayport Rd.; and Citgo Gas Station, 1600 Mayport Rd. Mr. Hanson further reported on the status of dilapidated buildings, stating from the list of 22 buildings, 5 have been torn down, 9 have been repaired, 5 have repairs ongoing, and 3 aze being monitored. Mr. Hanson asked for guidance for payment to staff when business offices aze closed, as in the case of Tropical Storm Fay. He stated those employees who were sent home were not paid, unless they took personal leave. He stated other cities have varied policies for payment of staff that aze sent home. He stated he believes some pay for those sent home is fair because they were ready and willing to come to work but could not through no fault of their own. He stated all of these employees were hourly employees so they are the people who are least able to afford a loss of pay. He stated the Department Heads are exempt. He stated he believes it is not in his authority to amend the pay policy without the concurrence of the Commission so his emergency decision at that time was to not pay those that did not work. Mayor Meserve stated he believes there should be a differentiation between those who worked and those who were asked to stay home and proposed paying those employees who were ready to come to work but could not come to work because the City shut its doors, a stipend of 75% of their normal wages for the hours they missed. He proposed when we have these issues based on storms that it be handled on a case basis each time so there is no precedent set. He stated in this case, it gives the employees enough Seatember 8, 2008 REGULAR COMMISSION MEETING Page 9 money to pay their bills but it also recognizes the fact that for all of those employees who did come in, there is a differential. After discussion, Mayor Meserve reiterated what he is suggesting is for those people who were prepared to come to work who were told to stay home because City Hall was closed they will get 75% of their pay in a bonus check and those who worked get 100%, whether it was regular or overtime hours. He stated if someone had taken regular vacation time, he doesn't believe they should be paid for being on vacation because that is what vacation time is for. Commissioner Borno stated he is in agreement with the proposal, but he believe in addition to that the two (three) people who volunteered to work answering phones, the Commission should give the City Manager discretion to deal with that as he desires in the future, on a case basis. Staff was directed to bring back at next meeting to authorize the expenditure of 75% pay for those who didn't work, 0% for those on regular vacation, full pay for those who worked. Commissioner Borno added that the two (three) people who volunteered to answer phones when they could have been home, are to be dealt with at the City Manager's discretion. Mr. Hanson reported on the rainfall during Tropical Storm Fay, stating official counts taken in Atlantic Beach were 8.5" in 24 hours. He stated aten-year storm event is 7.5" so Atlantic Beach was significantly above that and reported the storm water system worked very well. Reports/Requests 10. Reports and/or requests from City Commissioners and City Attorney City Commissioners City Attorney Commissioner Borno • Announced he was appointed to the Florida League of Cities Finance and Taxation Committee and asked for input to take to the Committee if anyone wants to add anything. Commissioner Parsons • Expressed concern about cars parked in right-of--way as was reported earlier by a citizen and asked Chief Thompson if there is anything that can be done. Chief Thompson stated this can be handled on a case-by-case basis from citizen complaints. Commissioner Woods • Asked if cars parked in the right-of--way is an issue on major arteries or side streets. Chief Thompson explained this is pretty much everywhere. He stated the City allows parking on the right-of--ways and it is of a particular problem where there is no other parking. He stated when it becomes a problem, the police talk to the person and ask them to make some adjustments for their neighbors. Commissioner Fletcher • Thanked the department heads for their work on the budget hearings, stating the meetings were very educational. Mayor Meserve Seatember 8.2008 REGULAR COMMISSION MEETING Page l0 • Stated we have a new reporter for Beaches Leader, Liza Mitchell. • Expressed his appreciation for the clean-up efforts after the storm by the Public Works staff and the contractor. Adjournment There being no further discussion, the Mayorhdeclared the meeting adjourned at 7:50 pm. ATTEST: _/~ ~~~ Jol~i S.~serve, Mayor/Presiding Officer ~CD(~~ct (Y ~G~2~(iC.~' ~J Donna L. Bartle, CMC City Clerk AT~'ACI~~L+ 1~T A ~:.~~.~ ~ ~ { As I~.(~1~1TIC ~~ l~aC~, sY 3~~3Y~'al~fAi S TAIi"F RE+ 1~Cf~aT AGENDA ITEM: Public Hearings on adopting a "Tentative Millage Rate and adopting Ordinance #20-08-9I establishing the Operating Budget for fiscal year 2008/2009. SUBMITTED BY: Nelson Van Liere, Finance Director DATE: September 8, 2008 BACKGROUND: In order to adopt a millage rate and operating budget, the City Commission must. adhere to a strict process per state law. Please find attached an outline for the public hearings to be held. on September 8th, 2008 in the Commission Chambers at 6:OOpm as was noticed to all property owners by the Duval County Property Appraiser's Office. The format is the same as in previous years and is to be read into the record as presented in order to assure compliance with the TRIM laws (s.200.065, F.S.). Prior to these hearings, the City Manager presented a Proposed Operating Budget and held four workshops to review and make adjustments with the City Commission's guidance. The Proposed Operating Budget. is funded using the millage rate of 2.9974 mills. This is 4.29 percent lower than the rolled back-rate. t There will be a second public hearing for the final adoption of the millage by resolution and a second public hearing for the final adoption of the Operating Budget, Ordinance #20-08-91, on September 22nd, 2008. RECOlVIlV1IINDATION: 1.) Hold two public hearings as described in the attached outline to approve both the Tentative Millage Rate of 2.9974 mills and the Operating Budget Ordinance #20-08-91 with total expenditures of $29,025,143 in that order by separate vote. 2.) Set the Time and Date of the Second Public Hearing at September 22, 2008 at 6:OOpm. In the Commission Chambers of City Hall ATTACIiMENTS: Agenda for Public Hearings Ordinance # 20-08-91 Budget Summary of all Funds List of Amendments to Draft Budget REVIEWED BY CITY MANAGER: ~- _, - ,-. . x .. .i ~ 1 .: r - i ,r, ~ ~ ~~ i _ ~ ~~ ~~ ~~ ?I ~ f3 ~J Y ~,~{~~~l. ~a VG i1~id adoption of a Tentative Millage Rate St<~te the following: The Millage Rate is 2.9974 The Tentative Millage Rate is 2.9974 The RoII--Back Rate is 3.1317 The Tentative Millage Rate is 4.29 percent lower than the Roll-Back Rate The purpose for adopting the millage rate of 2.9974 is to maintain a Level of ad valorem tax revenue sufficient to maintain adequate funding for the existing level of services at anticipated. increased cost and to continue to maintain the City's infrastructure. . Motion to adopt a Tentative Millage Rate for operating purposes of 2.9974 . Open Public Hearing Close Public Hearing and Vote Second item to be considered: Ordinance #20-08-91 establishing the Operating Budget for fiscal year 2008/2009 of $29,025,143 Motion to adopt Ordinance #20-08-91 establishing the Operating Budget for fiscal year 2008/2009 Open a Public Hearing -Close Public Hearing and Vote All Ol~i''1NAi~(.'F At>t~ayTli°•!ts 'fit-11: i+r.l~l~:l~ 131IBC~T FOB T41 C lrl'~C' OIa' A TLAI~t';f l~C' '~I;AC 1~, I+ l~O °a~ 11.9A FOR Ft `~CAIC. YI+:A.~Z L'~ GINNING ®CTOEER 1, 20Q8 AND ENDIN~~ SEPTEMBER 30, 2009. WHEREAS, the City Commission of the City of Atlantic Beach, Florida, on September 8, 2008, held a public hearing as required by Florida Statute 200.065; and WHEREAS, the City Commission of the City of Atlantic Beach, Florida, set forth the appropriations and revenue estimate for the budget for Fiscal Year beginning October 1, 2008 and ending September 30, 2009 in the amount of $29,025,143. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; 1. The fiscal Year 2008/2009 budget be adopted, and 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this day of September 2008. Passed by the City Commission on second and final reading this day of September 2008. John S. Meserve Mayor /Presiding Officer Approved as to form and correctness: Alan C. Jensen, Esquire City Attorney ATTEST: Donna L. Bartle City Clerk Ccrnbined Summary of Revenues and Expenditures Summary of all Funds Actual Actual Estimate Budget Increase 2005-2006 2006-2007 2007-2008 2008-2009 (Decrease) Cash Forward 25,274,211 26,959,398 29,683,208 28,820,063 (863,145) Revenues General Fund 10,485,321 10,665,729 10,874,148 10,499,874 (374,274) Special Revenue Funds 1,754,850 1,709,853 1,620,081 1,468,654 (151,427) Debt Service Fund 72,669 73,759 69,566 69,500 (66) Capital Project Fund 0 0 333,000 335,000 2,000 Enterprise Funds 8,799,935 9,485,776 11,744,393 13,061,075 1,316,682 Trust and Agency Funds 2,117,320 2,980,968 1,509,846 2,132,708 622,852 Total Revenues 23,230,095 24,916,085 26,151,034 27,566,811 1,415,777 Other Financing Sources 91,111 952,675 0 0 0 Total Resources 48,595,417 52,828,158 58,834,242 56,386,874 552,632 Expenditures ~ General Fund 9,594,009 10,692,435 10,766,585 12,005,029 1,238,444 Special Revenue Funds 1,675,362 1,329,069 2,425,816 1,514,562 (911,254) Debt Service Fund 71,505 • 72,482 70,966 71,355 ~ 389 Capital Project Fund 0 0 0 660,000 660,000 j Enterprise Funds 9,237,098 10,141,428 12,854,544 13,837,808 983,264 Trust and Agency Funds 782,479 881,520 896,268 936,388 40,120 DIVISION TOTALS 21,360,453 23,116,934 27,014,179 29,025,143 2,010,964 Other Financing Uses 275,566 28,016 0 0 p Gash Reserves 28,959,398 29,683,208 28,820,063 27,361,739 (1,458,332) Total Expenses and Cash 48,595,417 52,828,158 55,834,242 56,386,874 552,632 Resource Allocation Personal Services 8,371,588 9,086,164 9,312,929 9,960,463 647,534 Operating Expenses 8,391,538 8,406,218 9,169,237. 9,103,977 (65,260) Capital Outlay 2,042,419 2,605,940 4,364,315 5,665,196 1,300,881 Debt Service 1,765,831 .1,675,553 1,683,805 1,681,207 (2,598) Transfers 789,077 1,343,059 2,483,893 2,614,300 130,407 -fotai 21,360,453 23,116,934 27,014,179 29,025,143 2,010,864 'l~Efs~'°~ ~x"':a~ ra1:~~,`:,~- '~~:3'34'";.'Y ~~'#Tda~u~i~Gi:~S ilnt~ A:~,``n,Esc:%.4.',r~:.~ v~'~ ~~Icix> ~L `~s;G ~~"~ ~~~[D~Y' ~~ 200 A. Deductions to P~•oposcd Budget 1. General Insurance; Budget reduced by $48,400. Since the draft budget was prepared, final quotes came nz for the renewal of several types of general city insurance including automobile, property, liability, crime and environmental. These final quotes were lower than estimates put in the budget by $48,400. 2. Overtime/Holiday Pay; Budget reduced by $74,000. The city's policies for payment of overtime and holidays has been considerably more liberal than requirements of the Fair Labor Standards Act (FLSA). This savings will be a net reduction from changing the payment for overtime from "hours paid" to "hours worked", changing the police shifts from 8 or 10 hours to 8, 10 or 12 hours, depending on the position, changing police patrol overtime from 40 hours per week to 42 hours per week, and changing pay for any city employee working a holiday from double time and a half to double time. 3. Health Insurance; Budget reduced by $130,000. The draft budget included a 17% increase in group health insurance costs totaling $148,000. This budget reduction results from changing the amount the city pays for the base HMO "Employee Only" coverage from 100% to 9S%, charging the amount the city pays for coverage of spouse and family members from SO% of the difference to 4S% of the difference, and reducing the benefits provided under the health insurance plan. 4. Phase One IT Software Upg_de-, Budget reduced by $99,000. This eliminates the budget for the upgrade to the "Navaline" software from the city's mainframe software vendor; HTE. B. Additions to the Proposed Budget 1. Cost of Living Adjustment (COLA; Budget expenditures increased by $260,000. As in previous years, no COLA was included in the draft budget. The City Commission determined that 4% was an appropriate number after considering the most recent cost of living index, what other employers in the area and state have been providing for COLA adjustments, and in consideration of the changes to the overtime/holiday pay policies and health insurance that will either reduce the pay or increase the cost of benefits to city employees. 2. Sound System for Atlantic Beach Elementary School; Expenditures increased by $10,000. The City Commission was asked by the Friends of Atlantic Beach Elementary to put $10,000 towards the cost of a new sound system for the school auditorium. In deciding to add this to the budget, the commission asked that an V ill .. (' CiiCv~ c..ti,Tut~',~±.i ,~IiJi ~~.: ~l__t lL.;~:I ~~"~~~'' 5 L ,'1_~~~' L.~F:, 111tJ li(.. .'W St, La~'3 ~J~`>L..;~7i ~..nd t^.P scl~c; C1's ~i ~,.ii d.?r.Y t~.r~l~. 3. Mayport Middle Schools Pros ram; Expenditures i~lcreased by $14,130. Upon request from the Cultural Arts armed Recreational Advisory ~:oinmittee, the brLdget was increased to provide support for new programs at i,~Iayport Middle School. The commission ~,vanted to specifically note that it ~~~us the city's intent that this be a one time expenditure and not to turn into a recurring budget item. 4. Part time Police Records Clerk• Expenditures increased. by $12,000. This will help to eliminate the backlog of data entry in the Police Records Division, 5. Police Drug Doi; Expenditures increased by $13,200. This includes not only the purchase of the drug dog and equipment for the car but also the cost for the first year of food, a supplement to the salary of the officer who will be keeping the dog at their house and for other expenses. C, Transfers between Funds 1. Police training expenses; Transfer of $16,800 from General Fund to Police Training .Fund. Since the draft budget was~prepared, the city received two checks from the Clerk of Courts Office for revenues for past amounts due related. to traffic citations and other cases. One of the checks was for over $100,000 and was deposited in the special training fund per requirements in state law. This enables the transfer of the operating expense for police training from the General Fund to the Police Training -Fund: 2. Howell Park Brides; Transfer of $50,000 from the General Fund to the Better Jacksonville Discretionary Half Cent Sales Tax Fund. This is a capital project to replace some of the aging bridges in Howell Park. and will result in an increase in the .fund balance of the General Fund and an equal decrease to the Sales Tax Fund. I~, ,Revenue Changes 1. Milli e Rate; Reduction in revenues of $184,500. The city's current (FY08) millage :rate is 2.9974 mils.. The draft budget was based upon an increase millage rate of 3.1317 mils to offset the reduction in the tax base resulting from the approval of Amendment 1 which doubles the homestead exemption, places a ten percent per year cap on the increased vale, ofnon-residential property, allows people with homestead exemptions to have "portability" when they move and exempts tangible personal property. The higher millage rate was prop osed to enable the city to receive same amount of taxes as the previoas year and thoreby allow the continuation of present service lc--,vels. a louv~v~~s-, ~~~ith thr~ receipt of over $?0~?,OOQ fro.n tsz,:, C;ler>~c of courts ,•~- liT1Ce ~;C31Lii; to tilt; ~ tt~'~.?Al l'L~I3C~, tllc-., City (,t"s~r~f11`1'i~C)fF C'1i~7C;rn"ili1~,C! t~7%it It E~IaS bUSi ~Cir the caxnmur~ity to holca the tax rate a~ file current a.*r~JU~~t even tl°~a~~gh :t would rosuLt in a reduction of revenues to the city. 2. State Revenue Estimates; Reduction in revenues to various funds of $113,600. City staff uses state estimates for various revenues received through the state government such as the Communication Ser<rice Tax, Gas Tax and state revenue sharing. Since the draft budget was prepared, state revenue estimates have been revised downwards which will result in a decrease in revenues in the General Fund of $80,300 and an additional decrease in revenues in the Better Jacksonville Half Cent Sales Tax. Fund of $33,300. E. Other Notes 1. Revenues from the Clerk of Courts Office of Duval County; increases the fund balance of the General Fund by $201,000. Two checks were received from the Clerk of Courts Office in payment for revenues earned over the last three years for traffic citations and other offenses tried in the Duval County Court System. One of the checks equaling $201,000 was deposited in the General. Fund. A second (previously noted) check for over $100,000 was deposited in the Police Training Fund. 2. Acctuisition of the Buckman Property; No change to budget. The city had previously budgeted funds from both the Half Cent Discretionary Sales Tax Fund and the Convention and Development (Bed Tax) Fund for a local share to match a grant to purchase approximately 350 acres of marsh and uplands adjacent to the Intracoastal Waterway known as the Buckman Property. The city was unable to come to terms with the seller and funds were de-obligated. However, additional negotiations have recently been underway that may result in the city's ability to purchase this property for the appraised value of $185,000. The current balance in the Bed Tax Fund is in excess of that amount. However, this is not included in the changes to the draft budget and will need to be added through a budget amendment if the details of the property purchase are worked out. 3. Retirement System; a discussion was held during the third budget workshop on August 27th about the continuing high cost of the city's defined benefit retirement plans. The commission requested that a report be presented during the next year about the possibility and savings that could result from the change to a defined contribution retirement system. ATTACHMENT B OI2I~INANCE NO. 2fl-OP-~2 AN EMERGENCY ORDINANCE AMENDING THE OPi;RATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLOR: DA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008. WHEREAS, the City Charter of the City of Atlantic Beach requires that the City Commission approve all budgetary increases and transfers at the fund level, and WHEREAS, the nature of budgetary systems and those day to day decisions affecting such budgetary systems require adjustments from time to time, and WHEREAS, the City has declared an emergency due to tropical storm Fay for the purpose of recovering a portion of the costs to remove vegetative debris from the City, and NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; 1. The Fiscal Year 2007/2008 Final Budget be amended as follows: SANITATION FUND Revenues: F.E.M.A. 75% Reimbursement $60,000 Expenses: Public Works -Sanitation Operating Expenses -Contract Services $80,000 Fund Balance: <$20,000> 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission as an Emergency Ordinance with only one reading this day offs t~nu6~e--, 2008. Approv~;d as to form and correctness: ATTE~~T: ~~~~ Jensen, Esquire Donna Bartle Attorney City Clerk