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Item 1A- Draft Minutes 9-8-17MINUTES OF THE BUDGET WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBER ON WEDNESDAY, SEPTEMBER 6, 2017 AT 6:30PM City Commission Members Present: Mitchell E. Reeves, Mayor John Stinson, Mayor Pro Tern Mitchell R. Harding, Commissioner Arrived after Roll Call Jimmy Hill, Commissioner' Blythe Waters, Commissioner Staff present: Joe Gerrity, City Manager Kevin Hogencamp, Deputy City Manager Russell Caffey, Finance Director Kayle Moore, Public Utilities Director Donna L. Bartle, City Clerk Call to Order The meeting was called to order by Mayor Reeves at 6:40p.m. City Clerk Bmile called the roll and Mayor Reeves noted that a quorum was present. Mayor Reeves acknowledged Mayor-elect Glasser in attendance. Mayor Reeves gave a briefing about Hurricane lima preparations and explained the issuance of the Declaration of a State of Emergency, curfew order and alcohol sales suspension order and provided copies of those documents to attendees. (Commissioner Waters anived at 6:48p.m.) Mayor Reeves and City Manager Gerrity will conduct a Hunicane Irma preparation briefing for the Mayor-elect and the Commissioners-elect on Thursday, September 7, 2017 at 4:00p.m. and it is open to the public. Deputy City Manager (DCM) Hogencamp spoke about notifications and communications being accessible on the City's Homepage at COAB.US, the City's Facebook page, and the Police Department's Facebook page. Contact Mr. Hogencamp at City Hall to be added to the City's E- Newsletter list. There was a discussion about postponing the September 11, 2017 City Commission Meeting and rescheduling to the following Monday, September 18, 2017. (Commissioner Hill arrived at 6:55p.m.) Motion: To postpone the Monday, September 11, 2017 Commission meeting until Monday, September 18, 2017 at 5:05 p.m. Moved by Stinson, Seconded by Harding Agenda Item 1A February 26, 2018 Minutes-City Commission Budget Workshop Page2 Votes: Ayes-5 Harding, Hill, Stinson, Waters, Reeves Nays-0 MOTION CARRIED unanimously. Courtesy of the floor to visitors September 6, 2017 Mayor Reeves opened the Courtesy of the floor to visitors. No one wished to speak so he closed Courtesy of the floor. Budget Update Presentation: DCM Hogencamp distributed the handout titled Fiscal Year 2018 (which is attached and made pmi of this Official Record as Attachment A). Finance and IT Director Russell Caffey showed a slide presentation of the handout. He reviewed the cunent 2016-1 7 Budget and the proposed 2017-18 Budget, noting the increase to the Revenue and an increase to the Expenditures, leaving a deficit in the General Fund. Finance Director Caffey reviewed the Reserve Reconciliation explaining the deficit is attributed to additional legal fees, expenses related to the Enterprise Resource Planning software, and expenses related to the City Hall remodel. He fmiher explained other increases are related to the addition of four employee positions, increases in the General Employee Pension plan, increases in Workers Compensation, and proposed employee raises (3% non-swom employees, 6.5% swom employees). Mr. Caffey reviewed Roadway Improvements, the Reserve Reconciliation, the Half Cent Discretionary Sales Tax Fund, the Convention Development Tax Fund, and the Local Option Gas Tax Fund. Discussion ensued about Roadway Improvements, noting the importance of the all the sidewalk work/improvements being completed prior to beginning the streetscaping and beautification projects. Finance Director Caffey stated that the $100,000 for the streetscaping and beautification projects is not assigned to one specific project at this time, but identifies an area where improvements will be made. As the year evolves other ideas for budgeting will be identified. Discussion continued about the funding to assist residents in the transition from septic to sewer and questioning if Duval County funds were available to subsidize. Finance Director Caffey explained this budget item resulted from a need voiced by the Commission and it is a line item in place to be ready to commit to the project. The next topic discussed was the Spray Park listed under the Convention Development Tax Fund. Mayor Reeves stated these can be very expensive and that the Beach Walkovers were more impmiant to maintaining the dunes. Mayor Reeves inquired about the amount budgeted for Health Insurance being the same as the previous year. Mr. Caffey explained the actual costs will be confirmed in November and it is possible there could be a 5% increase. City Manager Gerrity spoke about changing the Health Insurance contract from a calendar year to a fiscal year. Agenda Item 1A February 26, 2018 Minutes -City Commission Budget Workshop Page3 September 6, 2017 Mayor Reeves spoke about the last Millage Rate reduction, 1/10th of a Mil resulting in $147,000. He asked the Commission to consider another 1/10th Mil reduction this year, which would be a little over $150,000, due to the increases to our tax base. Finance Director Caffey spoke about the Half Cent Discretionary Sales Tax Fund and the types of capital projects it can be used for. He spoke about the Convention Development Tax Fund which includes funding for Beach Walkovers and Signage. Mr. Caffey stated there were no changes proposed to the Local Option Gas Tax Fund. Regarding the proposed Spray Park that is budgeted from the Convention Development Tax Fund, Mr. Caffey stated it is up to the Commission whether or not to move forward on this item. Regarding the Spray Park, Commissioner Hill expressed concerns about safety, maintenance costs, staffing, and liability. Mr. Hill spoke in favor of the Lifeguard Station improvements. He stated our signs should be more unifmm in appearance throughout the City, like state park signage. Commissioner Hill spoke about the flooding problems in the City and the probability of resolving through property acquisition for the sake of percolation and water shed. He stated he would like more infmmation about how the tax funds can be used. Commissioner Harding spoke about infi:astructure improvements for Marsh Oaks, about the transition from septic to sewer, and about streets and drainage. He addressed the Sidewalk Improvements for Royal Palms and inquired if the $150,000 is in addition to last year's $100,000 budgeted for the same item. He spoke about the 1/lOth Millage Rate reduction and the need for planning ahead due to anticipated decreases in revenue. Commissioner Waters spoke about the Millage Rate reduction and stated she was not in favor of doing that this year. She agreed that with new construction there is an increase to the tax base, but Ms. Waters stated that prope1iy development requires increased City services. She spoke about planning ahead with the potential for decreases in revenue. Commissioner Waters stated that rolling back the Millage Rate now could create the potential for the next Commission to have to raise taxes over the next couple of years. Ms. Waters also had questions about the amounts budgeted for the Sidewalk Improvements for Royal Palms. Kayle Moore, Public Utilities Director, addressed the Sidewalk Improvements for Royal Palms. Mr. Moore explained that a pmiion of the previous year's $100,000 budget was used for the expense of a consulting design fi1m to prepare a full design set and specifications for the three East/West sections in Royal Palms. The balance of that amount was carried over and will cover the construction of one of the three sections. This budget for $150,000 is to cover the other two sections and all three sections will be completed at one time. Mr. Moore spoke about the process and reasoning behind outsourcing for the required design specifications and construction of these sidewalks. The work must be ADA Handicap Accessible, include specifications for rights-of-way and existing utilities, and all related costs must be identified for budgeing and meeting the required construction specifications. Commissioner Waters asked that the Commission be advised when and where the streetscaping and beautification projects are scheduled. She emphasized the importance of work/improvements being completed prior to beginning the streetscaping and beautification projects. Agenda Item 1A February 26, 2018 Minutes-City Commission Budget Workshop Page4 September 6, 2017 Commissioner Waters spoke in favor of a Spray Park and noted benefits to the community. She agreed that Beach Walkovers are important to maintaining the dunes and might take precedence, but would like to consider a Spray Park for another budget year if possible. Ms. Waters agreed that signage should be more uniform in appearance, like state parks. City Manager Genity and Public Utilities Director Moore confi1med that any expenditure of $100,000 will come before the Commission in the fmm of a Resolution with a line item detail. Public Utilities Director Moore addressed the budgeting for the extension of the sewer system regarding the transition from septic to sewer. He stated this type of project will require additional infrastructure and a pump station construction prior to residents being able to transition from septic to sewer. Commissioner Stinson spoke about the pros and cons of a Millage Rate reduction. He expressed concems about the deficit in the proposed budget and questioned covering that amount from the Reserve Fund. Cunently the City's Reserve Fund has a balance in excess of what is required and he questioned the push to spend that overage. Commissioner Stinson gave examples of expenditures - there are two major storms approaching, there is discussion to purchase Selva Preserve, the City paid to have Johnston Island evaluated, and there is a big cost overage for the Safe Routes to School project. All these items equal a very large outlay of taxpayer dollars. Commissioner Stinson questioned spending on extras while cutting the revenue simultaneously and encouraged researching other resources to decrease the deficit. Finance Director Caffey explained the 1/1 oth Millage Rate reduction for an individual prope1iy owner and for the City, and he reviewed the breakdown of that distribution. A lengthy discussion ensued about not using salary lapses as a budgeting tool, about the millage rate reduction, about City services to residents, about expenditures for projects to prevent flooding into homes, about Johnston Island, and about the increase in legal fees. The Commission acknowledged if they were in favor of or in opposition to the following items remaining in the proposed budget. Roadway Improvements: (from Reserve Fund) Sidewalk Improvements, Royal Palms-$150,000 Streetscaping & Beautification W. Mayport -$100,000 Aye: 4 Harding, Waters, Stinson, Reeves Nay: 1 Hill Consensus reached to keep in proposed budget. Half Cent Discretionary Sales Tax Fund: Funding to assist residents transition from septic to sewer-$25,000. Aye: 5 Harding, Waters, Stinson, Hill, Reeves Nay: 0 Consensus reached to keep in proposed budget. Convention Development Tax Fund: Beach Walkovers and Signage-$70,000 Agenda Item 1A February 26, 2018 Minutes-City Commission Budget Workshop Page 5 Aye: 5 Hill, Harding, Waters, Stinson, Reeves Nay: 0 Consensus reached to keep in proposed budget. Spray Park -$2~0,000 (to keep) Aye: 1 Waters Nay: 4 Stinson, Hill, Harding, Reeves Consensus reached to remove from proposed budget. September 6, 2017 Since the Spray Park has been removed from the budget a lengthy discussion ensued about the allowed uses of Convention Development Tax Funds, about land acquisitions and uses, about dune/beach walkovers, developing parking and pedestrian safety, developing parks, increasing the amount for use on Beach Walkovers and Signage, and about leaving the unused $250,000 in the fund balance. Finance Director Caffey reviewed the Hunicane Matthew Reimbursement Recap and stated the City has not been reimbursed. Lowering Millage Rate: (cunent rate 3.22850) Consideration to lower the Millage Rate 1/1 oth of a Mil, $150,673 Consensus reached not to lower the millage rate 1/lOth. Finance Director Caffey indicated that he would provide an updated budget book to the Commission. Mayor Reeves opened courtesy of the floor. Rick Carper, 1810 Selva Grande Dr., Atlantic Beach, spoke about City personnel needs, the resurfacing budget, the millage rate reduction, a Parks Master Plan, flooding, and improved street lighting. There were no other speakers. Mayor Reeves closed courtesy of the floor. Adjournment There being no further discussion by the City Commission, the Mayor declared the meeting adjourned at 8:36p.m. Donna L. Bmile, CMC City Clerk DLB/njp John Stinson Mayor Pro Tern on September 6, 2017 Agenda Item 1A February 26, 2018 Agenda Item 1A February 26, 2018