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Budget Hearing - 09-06-01MINUTES OF THE PUBLIC HEARING ON THE PROPOSED OPERATING BUDGET FOR FY 2001/2002 HELD IN COMMISSION CHAMBERS, 800 SEMINOLE ROAD, AT 5 00 P.M ON MONDAY, SEPTEMBER 6, 2001 City Commissioners Present John S Meserve, Mayor Rick Beaver Theo Mrtchelson Dezmond Waters, City Commissioners Staff Present Jun Hanson, Crty Manager Alan Jensen, City Attorney Maureen Kmg, Crty Clerk The meeting was called to order by Mayor Meserve who announced that the two main items to be considered this evening were the adoption of the tentative millage rate and the first reading of the ordinance adopting the operating budget for FY 2001/2002 Action on Proposed Budget (1) Setting tentative millage rate The Mayor announced that the tentative millage rate was 3 1721 for operating purposes for fiscal year 2001/2002, which was 6 6575% higher than the rolled-back rate of 2 9741 rmlls He explained that the purpose for the increase in ad valorem tax revenue was to maintain adequate funding for the existing level of service at anticipated increased cost Commissioner Waters moved to adopt a tentative millage rate of 3.1721 for operating purposes for fiscal year 2001/2002. The motion was seconded by Commissioner MitcbeLson. The Mayor then opened the floor for a public heazing and invited comments from the audience J P. Mazcluoh, 414 Sherry Drive, noted that Neptune Beach had a lower millage rate than that Atlantic Beach He felt if salazies in Neptune Beach and Atlantic Beach were compazable, that the millage rate should also be compazable to Neptune Beach. Alan Potter, 374 Second Street, noted that the gazbage fee for the coming yeaz was the same as the previous yeaz but reserves had increased 25% He felt since the city did not experience any hurricanes in the past year the reserves should be available He felt these funds should be put m a reserve fund to be used for emergencies only Mr Potter noted that the pumping capacity of the Buccaneer water plant was not up to paz He noted that the two 8" pipes in the original design no longer existed and should be replaced He Page Two Minutes -Budget Hearing September 6, 2001 also felt that the pumps would not need to be replaced if proper training was provided for city employees so they would know how to overhaul pumps Mr Potter said he agreed with the new pay scale which was adopted by the Crty Commission and was happy to see that raises would be based on the median level of the scale Bob Totter noted that the taxes on lus home had increased considerably and felt the inillage rate should be lowered Since no one else wished to speak regazding the tentative inillage rate, the Mayor declazed the public heazing closed Discussion ensued and the Mayor noted that while the city would receive increased revenues over the previous yeaz, the additional funds would be needed to cover the increased cost of salazies, and increased services as the result of growth He felt the options were to either fund or reduce services Commissioner Mitchelson noted that the cost of health insurance was expected to increase m excess of 100% He felt that until bids were opened for the core city infrastructure unprovement project, rt would be uTesponsible to reduce taxes The Crty Manager pointed out that all capital budgets were zero based He noted that Utility Director Donna Kaluzniak and Public Works Duector Bob Kosoy had done budget compazisons for several yeazs and commended them for taking measures to reduce overtone Commissioner Beaver said that he had seen an unproved level of sernce in recent years, which he noted, had been accomplished while still holding the line on the millage rate There being no further discussion, the motion carried unanimously. (2) Ordinance No. 20-O1-52 First Reading and Public Hearing AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA, FOR FISCAL YEAR 2000/2001 BEGINNING OCTOBER 1, 2001 AND ENDING SEPTEMBER 30, 2002 Mayor Meserve read Ordinance No 20-01-52 by title only and stated that the ordinance would adopt a tentative operating budget for fiscal yeaz 2001/2002 of $26, 958,284 Commissioner Mitchelson moved for adoption of Ordinance No. 20-01-52. The motion was seconded by Commissioner Waters. The Mayor then opened the floor for a public heanng and invited comments from the audience Page Three Minutes -Budget Hearing September 6, 2001 Al Rabassa felt this was a fau operating budget and said he understood the problems with pay compression. He supported the salary increases but said he would lilce to see a firm date established to unplement the performance review process He also inquued whether funds had been included for trauvng Bob Totter inqu>red regazdmg the total amount of the 2000/2001 budget and the City Manager advised he would provide this figure for Mr Totter He noted that the city had successfully contracted out the fire service and suggested the city look into the possibility of contracting out other services J.P. Mazcluoh felt that new wastewater operators should not have to start at the base rate He supported an awazds program to recognize employees who saved the city money He also felt that Howell Pazk should be handicapped accessrble Alan Potter suggested the city provide in-house training for wastewater plant operators and felt that in order to keep these employees, the city needed to pay above scale He felt the 8% utility increase which was approved by the City Comrmssion a year ago was unnecessary and should be rolled back and the proposed 8% utility increase should not be implemented Since no one else wished to speak regarding the proposed budget, the Mayor declared the public heazing closed In response to questions raised during the public hearing, the City Manager responded that $20,000 was mcluded in the budget for computer training, supervisors would receive training in conducting performance reviews following which performance reviews would be implemented by October 1, 2002, the city does not lure new employees at a higher rate than current employees, however, the city does recogmze the education and experience of new lure and compensate them accordingly, reported the city does have an incentive program and several employees have received awards for cost savings Discussion ensued regazdmg the areas of the budget which had been identified for further review Sanitation: The Crty Manager reported that BFI had indicated they would honor their bid prices if the city wishes to have a second trash collection per week and they could begin the additional service Januazy 1, 2002 Samtation rates would, however, have to be increased to offset the additional cost Page Four Minutes -Budget Hearing September 6, 2001 Water Capital Projects: Utilities Director Donna Kaluzmak reported that the short term recommendations in the Camp, Dresser & McKee master plan could be implemented over athree-yeaz period Projects for later years aze still being reviewed and may be revised following the logging of the water wells She noted that Water Plant #4 was experiencing sigmficant problems and this may unpact the recommendations for future yeazs Comimssioner Mrtchelson inquired whether there were any safety considerations and Ms Kaluzmak responded that work would be done in the most critical areas first Health Care costs The City Manager reported that Aetna Insurance Company had responded on behalf of the City of Jacksonville and had indicated that Atlantic Beach would be unable to participate in the City of Jacksonville's health insurance this yeaz This may still be an option for next yeaz but rt was his recommendation that the City Commission freeze the cost to employees for family health insurance coverage for the coming yeaz He suggested the City Commission budget $280,000 for additional health care costs Regarding the source of these funds, the City Manager suggested funding the Selva Marina streets and sewer work through the half-cent sales tax, thus freeing up other funds for funding the health caze costs The Mayor asked the Crty Attorney to confirm whether the changes being considered would require an amendment to the ordinance and the Crty Attorney confirmed that the Crty Commission was not changing the nature of the ordinance and, considering the amount of the budget, the changes being considered were not sigmficant This was simply a matter of reallocating funds within the budget Discussion ensued regazding whether the city could beself-insured and Human Resource Manager, George Foster explained the risks associated with self-insurance Following further discussion, rt was agreed to approve Recommendation No 4 in Issue I, Health Care Premium Rate Increase, attached hereto as Exhibit A Implementation of Pay and Classification Study Discussion ensued and rt was felt that the Crty Commission should adopt the Palmer and Cay pay plan and fund $283,150 to unplement the plan through general fund surplus A copy of the Crty Manager's funding recommendations is attached hereto as Exhibit B Commissioner Mrtchelson felt the City Commission had an obligation to get the most value for money when it came to Page Frve Minutes -Budget Hearuig September 6, 2001 hiring personnel but he felt the city needed to be fair to employees Comtmsstoner Beaver felt that this was an issue which was overdue and adoption of the pay plan would be a positive move and provide a good plan for the future Discretionary Projects Discussion ensued and it was felt that tt would be prudent to wait until after bids have been received on the Core City infrastructure protect before making decisions regazdmg other capital protects Discussion ensued regazdmg the request from the St Johns River Water Management District for a donation of $9,300 for public education Following further discussion, while the Crty Commissioners disagreed m principal with this request, rt was agreed to include $9,300 for this donation COLA for Mayor and City Commissioners Following brief discussion tt was consensus to leave the salazies of the Mayor and Ctty Commission at then current level Bull Park Restrooms The City Manager reported that m response to previous discussions regarding providing restrooms at Bull Pazk which could be accessed from the outside of the building, and which could be opened on weekends for beach-goers, he had received estimates from the azchitect designing the Adele Grage renovations He said azclutect Tat Chan had been authorized to go ahead with the design, and if any changes were needed the architect needed to be advised of the change as soon as possible Following beef discussion rt was consensus that a unisex restroom should be included in the building with access from the outside The Crty Manager noted that First Night was now incorporated and on their own and did not need to be included in the budget Recap of Budget changes Health Caze $284,000 Pay Plan $142,000 Water Management District $ 9,300 Commission Salaries <$ 1,360> Page Six Mmutes -Budget Heazmg September 6, 2001 Bull Pazk Restroom -0- FustNight <$ 1Q000> The Mayor announced that the second reading of the ordinance would be held at the next regulaz City Commission meetmg on September 24, 2001 The Mayor called the question on adoption of Ordinance No. 20-01-52, and the mot-on carried unaa~mously. There being no further discussion or business to come before the City Comrmssion, the Mayor declazed the meetmg adjourned at 7.05 p m JOHNS MESERVE Mayor/Presidmg Officer ATTEST Maureen Kmg City Clerk