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
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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
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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
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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
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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>
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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