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Item 1C- 7-12-17 Draft Minutes Budget WorkshopMINUTES July 12, 2017 at 5:00 PM CITY COMMISSION BUDGET WORKSHOP 800 SEMINOLE ROAD, ATLANTIC BEACH, FL fu Attendance: Mitch Reeves, Mayor John Stinson, Mayor Pro Tern Mitchell Harding, Commissioner Blythe Waters, Commissioner Kevin Hogencamp, Interim City Manager Donna Bartle, City Clerk CMC Jimmy Hill, Commissioner, Absent Call to Order Dan Arlington, Building Official Russell Caffey, Finance Director Commander Vic Gualillo, Interim Police Chief Timmy Johnson, Recreation & Events Director Derek Reeves, Planner/Interim Bldg. & Zoning Dir. Mayor Reeves called the meeting to order at 5:05PM. Introduction Mayor Reeves stated this will be a presentation of the Proposed Annual Budget for 2017-2018 given by the Interim City Manager (ICM) Kevin Hogencamp and Finance Director Russell Caffey. ICM Hogencamp addressed the Commission and reviewed his slide presentation, which covered Personnel Services, Operating Expenses, and Capital Outlay. Mr. Hogencamp summarized the proposed budget highlights to be presented for discussion AS FOLLOWS: • Millage rate • Salary increases • Building department salary adjustments • New position Citizen Service Specialist, and various department staffing increases and decreases • Dune Walk-over improvements and construction • A Spray Park • City Hall facililty enhancements • Sidewalk funding for Royal Palms and Veterans Park and Marshside • Community-wide storm water system enhancements • Police Officer Competitive Pay Enhancement and addition of staff • Enhanced lifeguard coverage • Pay classification review • Environmental Stewardship Committee, tree canopy assessment, and an Arbor Day Observance • Streetscapes and beach parking enhancements • Pedestrian safety enhancements Finance Director Caffey addressed the Commission explaining the process of his presentation and referred to the displayed slides that are a part of the agenda. He will give a basic review of the budgeting policies for the City of Atlantic Beach. Next Mr. Caffey stated there will be a review of City Revenues to-date, followed by the Commission and Administration budgets. Commander Vic Gualillo, Interim Police Chief, will present the Public Safety budget. Timmy Johnson, Recreation & Special Events Director, will present the Recreations/Special Events budget. Dan Arlington, Building Official, will present the Building Department budget. Derek Reeves, City Planner, will present the Planning and Zoning Depmiment budget. 1 Agenda Item 1C October 23,2017 July 12, 2017 Budget Workshop Meeting Budget Policy Goals The budgeting process is mandated by the State. All expenditures have to be appropriated by the Commission. Finance Director Caffey provided examples and explained the process for a department to make a purchase. He referred to the flow charts in the agenda titled Finance-Procurement Process, Finance-Budget Modification, and Finance-Budget Ordinance, which detail the process from start to finish. Revenue Overview Finance Director Caffey gave a presentation and referred to the displayed slide titled Total Revenues and Expenditures, which is part ofthe agenda. He stated the Ad Valorem Tax is up $238,000, the Millage Rate is 3.22, and the State Shared Revenues are up $12,500. Expenses: The next presentation slide was titled General Fund Expenses and is part of the agenda. Finance Director Caffey stated there will be a 3% pay increase. He stated there are four new positions in this budget. He said the Police Pension costs decreased and the General Pension costs reflected an increase. Finance Director Caffey refened to the next slide titled Schedule of Available Cash Balances, which is the projected cash balance at the end of FY 2017. He pointed out that the City of Atlantic Beach exceeds the required 25% for the Operating Reserve Fund by $6.2 million. He talked about the General Fund Revenues and presented the breakdown of where the money comes from, as displayed on the slide and is part of the agenda. Next Finance Director Caffey displayed the slide titled Summary of 2017 Millages, showing Atlantic Beach with the lowest millage percentage in Duval County. There was a breakdown of the Property Appraiser 2017 Millages showing what is paid to Duval County, the School Board, and what portion is paid to Atlantic Beach. Departmental Presentations: Administration presented by Finance Director Russell Caffey: The City Clerk's Department budget reflects an increase of $9,000 which includes staff raises and contract personnel for minutes transcription. The City Manager's Office budget reflects an increase resulting from two personnel changes. The Finance and Administration Department's budget reflects a decrease due to the elimination of a staff position. The Information Technology Department's (IT) budget reflects an increase and Mr. Caffey said more detailed information will be presented at next week's meeting. The Human Resources Department is static and Legal Counsel reflects an increase from $155,000 to $215,000. The Finance Director spoke about the contract personnel for the City Clerk's Office, additional testing/auditing in Finance and Administration, the Employee Assistance Program and Health Insurance in Human Resources, General Liability Insurance, the Millage Rate and Ad Valorem Tax. He stated it is general practice not to use the Reserves to cover operating costs. Commissioner Stinson expressed his concerns that the Legal Counsel budget will include the following: 2 Agenda Item 1C October 23,2017 July 12, 2017 Budget Workshop Meeting • Recently approved Community Redevelopment Agency (CRA) • Rewrites for the Land Development Regulations (LDR) • Service Station and Sign Moratorium • Medical Marijuana Moratorium • Possible future legal costs with GATE • Cloister Hearing issues Interim City Manager Hogencamp responded that the amount could be adjusted if necessary. There was discussion about the Homestead Exemption Tax and when that would affect the City's Budget. If it passes in the fall 201 7 it will affect the 2018-19 Budget year. Discussion ensued about the Reserve Fund and whether or not to utilize it for pending infrastructure projects, paying down Pension debt, and other miscellaneous expenses. Regarding the Legal Counsel budget, there was discussion about each department budgeting for their own legal fees/ expenses. Public Safety presented by Commander Vic Gualillo, Interim Police Chief: There was a slide presentation for reference and a detailed spreadsheet included in the binder showing the actual and projected budget for the department. A review of the Mission Statement, Core Values, and the Department Overview were presented, refening to the displayed slides titled Police Administration, Police Patrol, Police Investigations, and Police Dispatch, Animal Control, Police School Guards, Police Grant Funds, Fire Control/Rescue, and Lifeguards. Commander Gualillo then reviewed the slides for Crime Statistics and Crime Rate Comparison, noting these numbers do reflect an increase in activity for Atlantic Beach. Overall the City is below the average increase per the State of Florida statistics. There was a slight decrease in the numbers for Performance Statistics for service calls, anests, and traffic and parking issues. The depmiment has been operating with a reduction in personnel, thus it is reflected in this activity. The Traffic Crash Summary was reviewed. The next several slides addressed the Need for Additional Officers which shows Atlantic Beach has the lowest ratio per capita in Duval County at 2.23. Beachside communities of similar size in Florida have a ratio of 3.5. By increasing the number of sworn officers from 30 (current budget) to 32 that would bring the department to a 2.45 ratio. Commander Gualillo spoke about proposed budget increases, pay comparisons being competitive in the job market, recruiting and achieving personnel retention in the department. He referred to the slide titled DRAFT Career Track Program which shows the proposed pay increases that are in conjunction with an Officer's professional enhancement -by achieving hours of professional training and college courses -in order to move through the ranks. There was a brief discussion about the cost for recruiting and training a new police officer. That figure is about $50,000 to $75,000 noting the importance of retention. Michelle Cook, incoming Police Chief, took the floor to address the Commission about the presentation of the Career Track Program. She stated that other agencies throughout Florida and across the country are doing this and offering opportunities for advancement is key to retention for officers. Ms. Cook also spoke about the mandatory in-service training hours that officers must complete which is required by the Criminal Justice Training and Standards Commission. 3 Agenda Item 1C October 23,2017 July 12, 2017 Budget Workshop Meeting A lengthy discussion ensued about the budgeting process for the mandatory training and the Career Track Program. It is a standard budgeting item for the mandat01y training. Costs related to the Career Track Program are funded by the City. Most of those classes are available through the Police Academy so they are a low to no-cost expense to the City. There are other resources available for lower cost training via online courses and many no-cost on-line options are available through national organizations, such as FEMA and the Federal Government. Discussion continued about on-site department training, hiring retired law enforcement officers for part-time employment, citizen volunteers, time for training new hired officers, and incentive pays. Mayor Reeves called for a recess at 6:30P.M., and reconvened at 6:55PM. Commander Gualillo then reviewed the slides for the Records Division Personnel. He talked about the need for retention incentives for these civilian employees. The next division discussed was the Lifeguards and their schedules of operations. Commander Gualillo spoke about the consideration for a pay increase, and the Lifeguard Pay Comparison chati including Jacksonville Beach, Neptune Beach, and St. Johns County. Also discussed was the request to add two towers to provide increased safety for beachgoers. The next slide discussed was Large Purchases, a request for consideration to purchase six vehicles (sedans) and Computer Aided Dispatch (CAD) Software. On average most vehicles are replaced at 80,000 miles, about every seven years. The current CAD system is fifteen (15) years old and it is time to replace and upgrade. This system will provide for officer safety, efficiency, dispatch, and tracking. There was discussion about purchasing/leasing a SUV /all-wheel drive vehicle for responding to calls on the beach. Discussion continued about obtaining accreditation for the department, the process and budgeting. Ms. Cook explained that obtaining accreditation is an approximate two-year process. She stated her goal is to budget for the next year and return to the Commission with an itemized list, a plan and a timeline for accreditation. This completed the Police Department budget presentation by Commander Gualillo. Incoming Police Chief Cook commended Commander Gualillo for all his efforts and work on this budget. She assured the Commission this department will be good stewards of the community. Recreation & Special Events presented by Timmy Johnson, Director, and ICM Hogencamp: ICM Hogencamp introduced Grant Healy, the Chairperson of the Cultural Atis and Recreation Advisory Committee (CARAC). Mr. Healy will assist in this presentation. Director Timmy Johnson took the floor to address the Commission, thanking them for attending the events and programs. There was a slide presentation for reference and a detailed spreadsheet included in the binder showing the actual and projected budget for the department. Mr. Johnson began with the slide titled Community Centers, and started with Adele Grage Renovations and spoke about the grant received from the Department of Community Affairs to contribute to the expenses involved in that work. The next item discussed was the Recreation Committee, and Grant Healy took the floor to address the Commission. Mr. Healy stated the Recreation Committee is implementing an annual application process for organizations/groups to apply for a grant from CARAC, as per the slide titled CARAC Funding to Outside Organizations. 4 Agenda Item 1C October 23,2017 July 12, 2017 Budget Workshop Meeting Mr. Healy spoke about the events, referring to the slide titled Events for 2018-18, where they are listed alphabetically. There are plans in discussion about adding a Jazz Festival next year to coincide with the WEB.COM event. Mayor Reeves thanked Mr. Healy for his presentation. It was noted by Mayor Reeves there is a Memorial Park next to the American Legion that is fully equipped with a stage and power that could also be used for some events. Director Timmy Johnson referred to the slide titled Budget 2017-18, noting the increase over this year's budget. He referred to the spreadsheet included in the binder showing the actual and projected budget for the department. He explained the increases as detailed under Programming, Benefits, Grant Match, and Renovations. Next Director Johnson reviewed the slide titled Recreation Workload Report that tracks the fees collected by the department for registrations, rentals, and special events. There is an increase in all areas of activity for this current year and is reflected in the number for Total Collected. Discussion ensued about seniors activity at the Gail Baker Center. This completed the Recreation & Special Events budget presentation by Director Timmy Johnson. Building Department presented by Dan Arlington, Building Official: Building Official Dan Arlington took the floor to address the Commission. There was a slide presentation for reference and a detailed spreadsheet included in the binder showing the actual and projected budget for the department. Mr. Arlington began with Revenue Projections, noting the increase in 2016-17 revenue and the projected increase for 2017-18 as well. Department Staffing was listed and reviewed by division. The next slide reviewed is titled Enterprise Fund Concept, that is set up by the Florida Statutes, which explains that permit fees cover building code enforcement activities. The Building Department has its own fund, not part of the General Fund, and the balance is carried forward every year and shown as Cash Forward on the spreadsheet. Mr. Arlington reviewed the slide titled Proposed Expenditures 2017-18 which covers personnel, training, contract services, City Hall remodel, new code books and miscellaneous expenses. Building Official Arlington gave a breakdown of projects, from October 1, 2016 through June 30, 2017, as detailed on the slide titled Construction Trends. There were 3 new commercial projects -Atlantic Beach Brewery, Coop 303 Restaurant, and Gate Gas Station. For residential construction, there were 83 new homes. Mr. Arlington stated there is an increase in permitting for structure demolitions in order to build new homes. Mr. Arlington reviewed the slide titled Building Expenditures and Revenue covering the last 5 years, 2012 to current, showing a steady increase for Revenue. The next slide, Construction Value in Atlantic Beach, shows the construction value of permits in the City, which also shows a steady increase from 2010 to current. There was a brief discussion about the Depatiment's revenue exceeding their expenditures over that last several years. The next slide reviewed was Building Permits and Inspections, showing an increase for inspections, mainly due to the increased size of homes being built requiring multiple site inspections. Over the last five years the homes have gone from a value of $400,000 to million dollar homes now. This completed the Building Department budget presentation by Building Official Dan Arlington. Discussion ensued about petmit tracking. Mr. Arlington stated the department is in the process of installing the final phase of eTrackit which, when completed by the end of the year 2017, will allow online tracking and status repmis of petmit applications, etc. 5 Agenda Item 1C October 23,2017 July 12,2017 Budget Workshop Meeting Planning and Zoning Department/Community Development presented by Derek Reeves, City Planner: There was a slide presentation for reference and a detailed spreadsheet included in the binder showing the actual and projected budget for the department. Beginning with the slide titled Community Development Staffing, City Planner Reeves reviewed the listings for Current and Proposed Staff, along with listings for outside staffing provided by the Building depatiment and the City Clerk's office. The next slide, 2016/2017 Planning Division Milestones, covered several key items in the department. These relate to staffing shotiages, ordinances for backyard hens/the sea turtle lighting/towing, rezoning for the Fleet Landing expansion, and resolving issues with citizens/businesses/contractors. City Planner Reeves presented the 2017/2018 Planning Division Goals. A part-time Administrative Assistant has been hired, as well as a new Planner, which should help with backlog and staying caught-up. Moving forward he stated the City will hire a full time Director. Also listed for the goals is to begin work on the Land Development Regulations (LDR) rewrite, implement the eRA/redevelopment plan, address moratoriums on gas stations and medical marijuana, address sign code revisions, and Professional Services for the comprehensive plan evaluation and appraisal report. City Planner Reeves gave the 2016/2017 Community Development Board Update stating there were 8 meetings (as of July) for16 items covering variances, use-by-exceptions, rezoning, and a plat review. Next covered was the slide titled 2017/2018 Planning Division Budget. This shows the proposed budget for salaries and for the code rewrite position. Mr. Reeves noted this is not a revenue generating department. The slide titled 2016/2017 Code Enforcement Division Milestones was presented. This includes a listing of some of the high profile cases, and City Planner Reeves spoke about responding to resident complaints and proactive enforcement. Continuing with this division the next slide, 2017/2018 Code Enforcement Division Goals, covers the Towing Ordinance, Sea Tmile Ordinance enforcement, completion of open cases, and proactive enforcement for junk cars, abandoned prope1iy, overgrown yards, and shoti tenn rentals. City Planner Reeves gave the 2016/2017 Code Enforcement Board Update stating there were 4 meetings for 65 items, 2 rehearings, and 1 request for a rehearing. Next the 2017/2018 Code Enforcement Division Budget was reviewed. The expenses include salaty, benefits, and training for one employee. The amount for revenue is fi·om liens collected on prope1ties. This completed the Planning and Zoning Department/Community Development budget presentation by City Planner Derek Reeves. Discussion ensued about hiring the full time Planning Division Director. ICM Hogencamp stated his preference is to defer this item to the new City Manager when hired. It was suggested, for planning purposes moving forward, to budget for a Director's salary, benefits, etc. Discussion continued about the strain on this department even before the vacancy of the Director position, and that the strain continues in this depatiment due to staff shortages which ties into the issues with citizens/businesses/contractors. It was suggested to ask for additional staffing now, while in the budgeting phase, in order to achieve a solution to the problem and make improvements to the depatiment. A lengthy discussion ensued about recruiting and salaries equating to staffing positions that demand higher educational accomplishments/degrees. The City needs to attract the best candidates and retain those employees, which will in turn benefit the City. 6 Agenda Item 1C October 23,2017 July 12, 2017 Budget Workshop Meeting Commissioner Stinson stated he would not be available to attend the next budget meeting. Adjourn There being no further discussion by the City Commission, the meeting adjourned at 8:40 PM. Mitchell E. Reeves, Mayor Donna L. Bartle, CMC, City Clerk DLB/njp 7 Agenda Item 1C October 23,2017