Fort Walton Beach Council minutes — 08-03-09 special minutes — reading text

241 MINUTES OF THE SPECIAL COUNCIL MEETING REVIEW OF PROPOSED BUDGET FOR FY 08/ 09 OF THE CITY OF FORT WALTON BEACH, FLORIDA AUGUST 3, 2009 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Monday, August 3, 2009, at 5: 30 p.m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Virgil Miller, Dennis Reeves, Bill Garvie, Bobby Nabors, Bill Patterson, Dick Rynearson Also Present: Bob Mearns, City Manager; Helen Spencer, City Clerk; Toni Craig, City Attorney; and Department Directors PURPOSE The purpose of the Special Council meeting is to review and discuss the proposed Budget for Fiscal Year 2009/ 10. CALL TO ORDER The Mayor called the meeting to order. PLEDGE The Mayor led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Reeves moved to approve the agenda as the business of the day. Mr. Patterson seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. CHANGE BUDGET HEARING DATE The Finance Director requested Council change the first public budget hearing date to Wednesday, 9tn September The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Garvie moved to change the first public budget hearing date from Wednesday, 2nd September to Wednesday, September 9, 2009 with the hearing on second public Wednesday, September 16, 2009. Mr. Reeves seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. PRESENTATION OF 2009 -2010 BUDGET The City Manager mentioned the budget development process began in late January and the proposed budget accomplishes the goals set by Council to preserve the quality of life in the City with no increase in millage rates, no increase in fees, and no decrease in levels of service. The Finance Director discussed the top five budget issues: property taxes, personnel reductions, interfund transfers, pension contributions, and sales tax revenues; and reduction in expenses for wages, operating, capital outlay, and reserves. She mentioned there have been some changes since the proposed budget was prepared; some expenses have come in lower and some revenue have come in higher. 24.2 Special Council 8 -3 -09 PRESENTATION OF 2009 -2010 BUDGET cont. The Finance Director said staff will reduce the appropriation from undesignated fund balance from 589,000. 00 to $ 445, 000.00. She explained staff would like to maintain that as a cushion over and above the 30% of expenditures reserved as fund balance because staff does not feel the FY 2011 budget is going to look much better than the current proposed budget and the additional funding may be the difference between keeping a program or cutting a program; and if current year revenues come in lower than anticipated or there is a large unanticipated expenditure then the $ 589,000. 00 could be lower than anticipated. She said the proposed budget as presented is balanced and asked if changes are made by Council that a funding source be provided. Charlotte Dunworth, Budget/ Grants Manager, gave an overview of the proposed budget by each Department. City Council Review included the City Attorney reduced her contract to $ 90,000.00, PAWS reduced their contract by 8% to $ 87, 797.00, the Chamber funding was reduced by 76% to $ 6, 000 to reflect value of in -kind services, and the Economic Development Council funding was reduced by 19% to 18, 00.00; for a 15. 6% budget reduction in the budget. There was a cordial exchange of views on the health insurance provided the Mayor and City Council, and the travel allowance. Mr. Reeves moved to leave the health insurance as it has always been by ordinance for City Council and the Mayor. Mr. Nabors seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Mr. Reeves moved to limit each Council member and the Mayor' s travel allowance to 1, 000.00 individually and not to exceed without Council approval. Mr. Rynearson seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Mr. Reeves moved to eliminate membership to the National League of Cities ( cost savings 1, 490.00) and eliminate membership to the Florida League of Mayor' s ( cost savings $ 430.00). Mr. Patterson seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Mr. Reeves moved to reinstate the condolence flowers expense of $ 850.00. Mr. Holmes seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. Mr. Miller moved to reinstate the refreshment expense of $3, 500. 00 into the budget. Mr. Patterson seconded motion and it failed by a vote of 3 to 4 with Miller, Nabors, and Patterson in favor and Holmes, Reeves, Garvie, and Rynearson opposed. It was noted there was a $ 1, 070. 00 reduction in the budget. AGENDA CHANGE Mr. Reeves moved to amend the agenda to cover the outside agency funding. Mr. Rynearson seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor.  243 Special Council 8 -3 -09 OUTSIDE AGENCIES REQUEST FOR FUNDING The proposed budget has allocated funding for the Chamber of Commerce in the amount of $6,000 and the Economic Development Council in the amount of $18, 000. Chamber of Commerce There was no representative from the Chamber of Commerce present. Economic Development Council Larry Sassano, President of Economic Development Council ( EDC), discussed the efforts of the EDC to retain and create jobs in the local economy through membership development which doubles as a business retention and expansion program, through recruitment to attract new businesses to the area, through research to respond to daily inquiries regarding statistics for Okaloosa County and city specific data, through site and building tracking, and through project set- up and preparation in response to requests from businesses who would like to move into Okaloosa County. The EDC requests an appropriation of $22,226.00. Mr. Holmes moved to reduce the Economic Development Council funding to $ 8, 000.00 and increase the Chamber of Commerce funding to $ 16, 000. 00. Mr. Reeves seconded motion. There was a cordial exchange of views on the benefits received by the City from the efforts of the Economic Development Council and the efforts of the Chamber of Commerce. Mr. Patterson moved to amend the motion to split the $ 24,000.00 evenly between the Chamber of Commerce and the Economic Development Council. Motion failed for lack of a second. The Mayor called for the vote on the motion and it carried by a vote of 4 to 3 with Holmes, Reeves, Nabors, and Rynearson in favor and Miller, Garvie, and Patterson opposed. City Manager Review included the new City Manager wages and benefits are less than the prior Manager, for a 13. 0% reduction in the budget. The Mayor opened the floor for public input. As no one wished to speak public input was closed. No changes were made to the City Manager' s Department budget. Administrative Services Review included the elimination of flu shots and the holiday gift certificates, for a 5. 6% reduction in the budget. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Garvie moved to reduce the Florida Government Week budgeted amount by $2, 625. 00 to budget for flu shots. Mr. Reeves seconded motion. Mr. Rynearson moved to amend the motion that the $ 1, 070.00 savings made earlier be allocated to Administrative Services for the Florida Government Week. Mr. Holmes seconded motion. Mr. Reeves and Mr. Garvie accepted the amendment. The Mayor called for the vote on the motion, as amended, and it carried by a vote of 6 to 1 with Holmes, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor and Miller opposed. 244 Special Council 8 -3 -09 Risk Management Review included no major changes with a 0.4% reduction in the budget when the proposed budget was prepared, but it was noted there will be a decrease in property and casualty insurance premiums of approximately $ 100,000 which will be reflected when the revised budget is issued. The Mayor opened the floor for public input. As no one wished to speak public input was closed. No changes were made to the Risk Management budget. Information Technology Review included one position changed from full -time to part-time with no service level impact anticipated, for a 14. 4% reduction in the budget. The Mayor opened the floor for public input. As no one wished to speak public input was closed. No changes were made to the Information Technology budget. City Clerk Review included no major changes, for a 10. 3% reduction in the budget. The Mayor opened the floor for public input. As no one wished to speak public input was closed. No changes were made to the City Clerk' s Department budget. Finance Review included no major changes, for a 3. 0% reduction in the budget. The Mayor opened the floor for public input. As no one wished to speak public input was closed. No changes were made to the Finance budget. RECESS The meeting recessed at 7: 35 p.m. RECONVENE The meeting reconvened at 7: 45 p.m. Purchasing Review included no major changes for a 9. 6% reduction in the budget. The Mayor opened the floor for public input. As no one wished to speak public input was closed. No changes were made to the Purchasing budget. Police Review included two police officer positions eliminated, with no service level impact anticipated. The Mayor opened the floor for public input. As no one wished to speak public input was closed. No changes were made to the Police budget.  245 Special Council 8 -3 -09 Fire Review included one fire inspector eliminated with no service level impact anticipated, the County dispatch dues eliminated due to transition to 800 MHz radios, a 10. 8% increase ($ 310, 554.00) in wages and benefits due to 7. 12% step on union members' anniversary dates and the City' s increased pension contribution, for a total 6. 3%