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Proposed Budget Questions and Comments - Amended - Commr Stinson Bartle, Donna From: Stinson, John Sent: Monday, August 15, 2016 3:26 PM To: Bartle, Donna Subject: Budget Meeting 15th of August Attachments: 2016 2017 Proposed Budget Questions and Comments.pdf;ATT00001.txt Ms. Bartle I need to inform you and the Commission that I will not be present tonight for the budget meeting. I had departed yesterday for a business meeting this morning and my return travel plans have been interrupted by delays beyond my control and I am unable to arrive in time to attend tonight's meeting. I have made significant preparations for the meeting an I have attached them to this email. Please make copies of my questions and comments for the Commisioners, the City Manager and his staff and for all residents in attendance. I would like my notes and comments included in the minutes and made a permanent part of the record of tonight's meeting. I also just received Mr. Van Liere's last minute change to the agenda and understand that the Public Works portion of the meeting has been postponed until the next budget workshop. I apologize to everyone, I had focused most of my initial work, in particular the Public Works presentation, as per the original agenda. I do have included in my questions and comments some of the other departments for everyone's review. The document is attached below for your review and I will be updating this document as time allows and the meeting progresses tonight. 2016/2017 Budget Questions and Comments Questions and Comments: 1.. 2017 Proposed Budget opening letter f/Mr. Van Liere, pg. I -what would be the revenue reduction in dollars of a millage rate reduction equal to the millage rate of 2.6620 the "roll back" rate? Mr. Van Liere comments that "General Fund revenues exceed expenses by an amount equal to 1/10th of a mill" which is correct based on the proposed budget. However, when considering the Combined Summary of Revenue and Expenses (Introduction tab, pg. 1) expenses exceed revenue by approximately$586,000, which is a more accurate picture of the overall finances of the City. 2. 2017 Proposed Budget opening letter f/Mr. Van Liere, pg. II, Stormwater Improvements - • The Seminole Road project appears to have ongoing expenses incurring when the project has not been approved or accepted as proposed by consensus. Please detail the actions being taken and justification for moving forward with this project without Commission approvals. 3. 2017 Proposed Budget opening letter f/Mr. Van Liere, pg. II, Pay and Benefits -A 3% overall payroll increase with a 1% COLA compared to the CPI adjustment of 1%? Please explain the reasoning for recommending this budgetary item. It would be my preference for the 2016 /2017 budget to include a 1%overall payroll increase that reflects the CPI benchmark and for a bonus program be developed whereby employees of the City of Atlantic Beach are awarded bonuses based upon City budgetary performance, department budgetary performance and individual performance with measurable metrics. Bonuses could be scheduled to be 3% if budget performance is achieved based on all factors of the approved budget or could exceed 3% if the budget is exceeded by some percentage. Metrics such as building permit turn-around and approval time tracking, the lack of any environmental or safety incidents, the number of Code Enforcement cases resolved without the need to refer them to the CEB, capital projects completed on time and under budget, etc.There are many other measurable metrics that can be identified and used as measures of success or lack thereof. I also believe each department should be included in the goal setting process to get "buy-in"from all employees for the program. 4. 2017 Proposed Budget opening letter f/Mr. Van Liere, pg. III - Please provide a detailed report on Pension plan investment performance and any variance from the last projection presented to the Commission with explanations for any variance from this last projection made by the City Manager. 5. Summary of All Funds, Introduction tab, pg. 1 - Notable is the fact that Expenditures have increased from $23.5 million dollars in 2014/2015 to a projected expenditure in 2016/2017 of$31.5 million dollars, an approximate 50% increase in 3 years, not all of which can be attributed to capital outlay. 6. Summary of All Funds, Introduction tab, pg. 5 - Grand Total of all Revenue Sources is projected to increase approximately$800,000. Does this not support a significant rollback of the millage rate? 7. Summary of All Funds, Introduction tab, pg. 6 - Of the projected legal expenses FY 2015/ 2016, how much of the$175,619 can be attributed to the Gate Petroleum proposed development dispute? 8. Summary of All Funds, Introduction tab, pg. 6 - I recommend changes to the Charter be adopted and the City Clerk's office be distinctly separated from the City Manager's office, including personnel, revenue &expenses, and budgetary planning. 9. Summary of All Funds, Introduction tab,pg. 9 -Trust and Agency Funds, in particular the pension funds, historically under perform and adjustments to the budget are routinely required to settle unfunded liabilities.An analysis should be completed by the City Manager's office and the Finance office that project best and worst case scenarios and associated fund impact to the 2016/2017 Proposed Budget. 10. Combined Summary of Revenues and Expenses, Governing Body tab, pg. 10 - Please explain the projected increase in Operating Expenses for the City Commission. I recommend the budget be amended to include individual budgetary considerations attributable to the Commission for travel &training, legal counsel, charges for use of City facilities such as Adele Grage, etc.Allow each Commissioner to plan their coming year expenses and use this budgetary line item,as a measurable metric of performance. 11. City Commission, Governing Body tab, pg. 11 -Where did this Mission Statement originate? Is there any interest in a revision? 12. City Clerk, City Administration tab, pg. 14-Why is the City Clerk responsible for "maintenance" of the City website?Why is IT not assigned this responsibility?A major update of the website is recommended to improve the user interface and accessibility to City information.Additionally, it is recommended that social media utilization be made the highest of priorities when updating the website. 13. City Clerk, City Administration tab, pg. 14- Did the City Clerk set the "Key Objectives" listed on this page? 14. City Clerk, City Administration tab, pg. 15 -An overall 9% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? 15. City Manager, City Administration tab, pg. 16 - Key objectives include: "Ensure that the ' handling of citizen complaints is done in an efficient, timely and professional manner"; "Communicate with the citizens and the press to maintain an open and responsive atmosphere"; and, "Carry out the goals, objectives and policies established by the City Commission". While these are lofty goals, they are by no means measurable as stated. These objectives must include metrics such as responding to complaints within 24 hours, including followup telephone calls from the City Manager, or appropriate Department Heads, monthly press conferences held by the City Manager to answer questions, highlight successes, and detail pending actions to be undertaken by the City, and Letters of Accountability detailing the goals, objectives and policies established by the City Commission prepared by the City Manager that include time lines, required resources and effective communication plans of such goals, objectives and policies to be and presented to the City Commission at each regularly scheduled Commission meeting. 16. City Manager, City Administration tab, pg. 17-An overall 5% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? 17. Finance and Administration, City Administration tab, pg. 19 -An overall 1% increase in wages projected for this office. This office would meet the benchmark CPI adjustment of 1%. 18. Information Technology, City Administration tab, pg. 20 - Key objectives include migrating permitting, licensing and code enforcement from One Solution to Trakit. This enterprise software solution continues to plague the City and should be reevaluated to determine the cost to the City thus far due to selecting this software compared to more easily implemented solutions available to the City. Notable, no objective is listed that would include a software solution for managing City Commission (or other public boards, committees and groups) agendas that would allow each participant to manage their own additions and deletions to agendas while reducing the City Clerk's burden for managing agendas on behalf of each group. 19. Information Technology, City Administration tab, pg. 21 -An overall 10.6% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? 20. Human Resources, City Administration tab, pg. 22 - Please detail the following: Loss prevention &control methods currently being utilized and planned improvements or methodology changes;Training Needs Assessments conducted and training resources identified plans FY 2016/2017. 21. Human Resources, City Administration tab, pg. 23 -An overall 2% increase in wages projected for this office. This office could be considered to meet the benchmark CPI adjustment of 1%. 22. General Government, General Government tab, pg. 27- Issues, Trends and Highlights. What is the cost for the maintenance division formed and described in this section? We're these expenses originally charged to a separate cost center or group and now being charged to General Government? If yes, then where would the corresponding reduction in wages be reflected in this proposed budget? 23. General Government, General Government tab, pg. 28 -An overall 23% increase in wages projected for this office. If the maintenance team addition is a result of booking these costs to General Government, what percentage of the 23% indicated on this page can be attributed to wage increases not related to the addition of the maintenance team?And if that percentage of wage increase not attributable to the addition of a maintenance team exceeds 1% , would not the benchmark CPI adjustment of 1% be applicable? 24. Building Maintenance, General Government tab, pg. 30 -An overall 58% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? 25. Convention Development Tax Fund, General Government tab, pg. 31 -These restricted funds are described in the text. But, pg. 32 indicates annual transfer to the capital improvement fund.These transfers need further explanation. Perhaps a good use of these funds might be an education program for residents and visitors held at various community centers and local resorts that inform attendees of the fragile nature of the original residents of Atlantic Beach and how not to impact the turtles negatively. 26. Convention Development Tax Fund, General Government tab, pg. 32 - Please explain the $40,000 Deck and Bike Rack indicated in the 2016/2017 Proposed Budget. 27. Half-Cent Discretionary Sales Tax Fund, General Government tab, pg. 33 -These funds are restricted use as described. Issues,Trends and Highlights, item number six. Please detail the justification for the$75,000 six-bay vehicle &equipment storage building. Where did this project originate? What is the impact of the City of Jacksonville potentially continuing to collect this tax but applying the tax collected to their pension liabilities. If the proposed budget is correct and the City of Atlantic Beach loses this revenue,then there will be $1,265,000 in unfunded capital projects creating a shortfall in the coming year. How does this budget accommodate such a shortfall? 28. Governmental Capital Project Fund, General Government tab, pg. 39 - I would recommend the City Commission provide direction to the City Manager about prioritizing capital projects and scheduling to allow the Commission to continually evaluate capital projects as the fiscal year passes. Such a tool would allow the Commission to either direct the City Manager to accelerate or abandon projects throughout the fiscal year based on total revenue budget performance. Provide detailed justification and explanation for the Marsh Preserve Path. 29. Public Works Combined Summary of Revenue and Expenses, Public Works tab, pg. 80 - Notable, Public Works as a cost center does not generate enough in revenue to cover expense, except for the consideration of capital outlay charged to Public Works. 30. Public Works Administration, Public Works tab, pg. 81 - Define the metrics that could be used to evaluate Public Works administration performance related to plan reviews, contractor understanding of submittal requirements, GIS mapping and the implementation of permit management software. 31. Public Works Administration, Public Works tab, pg. 82 -An overall 10% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? 32. Streets and Maintenance, Public Works tab, pg. 83 - Please provide details for the ten year street maintenance plan, the continued beautification improvements, the documentation of roadway status in the GIS database and continued improvement of signs, sidewalks and ROWs. 33. Street and Maintenance, Public Works tab, pg. 84 -An overall 12% increase in wages projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? 34. Local Option Gas Tax, Public Works tab, pg. 86 - Please remark and provide details on the "Contract Services" operating expense category. This category has increased from approximately$200,000 FY 2014/2015 to a projected $320,000 FY 2016/2017. What is driving this significant increase, what is the manpower required to perform this work and what efforts has the City Manager's office implemented to regain control of this expense. 35. Sanitation Fund, Public Works tab, pg. 87- How is Public Works monitoring the contractor's performance for contractual compliance? Is Public Works using measurable criteria to evaluate contractor compliance? Please provide copies of these contracts for the Commission to review. How can Public Works ensure and improve emergency management readiness in the event the emergency management plan is initiated. 36. Sanitation Fund, Public Works tab, pg. 89 -An overall 0% increase in wages is projected for this office.This office could be considered to meet the benchmark CPI adjustment of 1%. 37. Storm Water Utility, Public Works tab, pg. 90 - With the recent flooding events and even more recent, how will Public Works improve the storm water system to handle future events. What plans will Public Works make for emergency equipment such as rental pump capacity or other necessary equipment required to prevent any resident from experiencing flooding within their homes? Please provide a details plan and schedule of storm water system maintenance including coordination with Neptune Beach to the Commission for review. 38. Storm Water Utility, Public Works tab, pg. 92 -An overall 17% increase in wages is projected for this office. Would not the benchmark CPI adjustment of 1% be applicable? 39. Fleet Maintenance, Public Works tab, pg. 93 - Please provide a copy of the contract referenced to the Commission for review and detail metrics used to evaluate contractor compliance with the contract. .