Fort Walton Beach Council minutes — 08-08-07 special minutes — reading text

53 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA AUGUST 8, 2007 INTRODUCTION A Special Council Meeting of the City Council of Fort Walton Beach, Florida, was held on Wednesday, August 8, 2006, 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, Dr. Wayne Pullen, Jim Hartwell, and Mike Minich. Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Lisa Absher, Finance Director; Toni Craig, City Attorney; and Department Directors. CALL TO ORDER The Mayor called the meeting to order for the purpose of reviewing and discussing the proposed 2007/ 08 budget. PLEDGE OF ALLEGIANCE The Mayor led in the Pledge of Allegiance. METHODOLOGY The City Manager mentioned in prior years Council has conducted a review of each Department's budget and during the review process if Council had a change to the budget there was a motion and a second to make that change and if passed then that particular line item or budget was changed. She wished to know how Council wished to proceed this year. She noted it is a draft budget and Council is not voting on the overall budget, but it will give staff direction to change the budget so when it is received again in September, it will reflect the changes made during the budget review. Mr. Minich moved to accept the procedures used in the past as outlined by the City Manager. Mr. Holmes seconded motion. Mr. Minich received confirmation that the Mayor will allow the public to speak about a particular subject before a motion is made. Mr. Miller disagreed with the approach of voting on each one as they go through as they may cut more than needed, and suggested that a log be kept of the areas of concern and they become the potential areas for reductions. The City Manager commented based on what Council decides tonight, staff plans to bring back tomorrow a tally of the impact with the changes made tonight and Council can re- address those if they decide it is too severe. She stated staff is looking for a consensus of a change. Dr. Pullen agreed with Mr. Miller' s idea but was unsure how to tie it together. He expressed Council can come back to an issue and they have to look at the overall effect. 54 Special Council Meeting 8- 8- 07 METHODOLOGY The Mayor called for the vote on the motion and it carried by a vote of 5 to 2 with Holmes, Reeves, Garvie, Hartwell, and Minich in favor and Miller and Pullen opposed. PROPOSED FY 06/ 07 BUDGET OVERVIEW Consideration of the City Manager' s proposed FY 2007/ 08 budget. Charlotte Dunworth, Budget/Grant Manager, first explained the budget development process that begins in January then gave a Power Point presentation of the proposed budget. Topics discussed included general fund revenues from ad valorem taxes, local option gas tax, franchise fees, utility taxes, licenses & permits, intergovernmental revenue, charges for services, fines & forfeitures, interest & other revenues, and transfers in. There was some discussion on the Communications Services Tax, the performance adjustment, the vacancies not funded, the report due in August on the Alternative Services Delivery Study with implementation anticipated in January 2008; and concerns were expressed over the revenue forecast and the transfers from fund balance to the general fund and the enterprise funds. Mr. Minich called a point of order that the ground rules had been established and the agenda should be followed. The Mayor agreed and stated they should go by Departments as Council has already established the ground rules. The question was posed on the amount of money being taken out of reserves to balance the budget. The City Manager pointed out the information provided on possible budget reductions if Council did not wish to use transfers from reserves. Mr. Minich called a point of order and requested they go through the agenda as laid out. The Mayor agreed and stated questions will be asked in their respective areas. As Ms. Dunworth continued with the power point presentation on the anticipated revenues questions were posed on the fund transfers to the general fund. The City Manager explained the transfers represent a transfer of excess proceeds from the enterprise funds and represent the cost of services the general fund provides to those funds. She also pointed out an accounting change this year to reflect all the expenditures previously reported under non- departmental are now reported under the appropriate department. As concerns were expressed over reducing the amount in the reserve fund below a certain percentage, the City Manager offered to bring to Council a reserve policy for approval. The Finance Director explained there is 50- 55% in the unreserved fund balance. Kabe Wood, 240 Brooks Street, received further clarification that the total amount of transfers from the fund balance would be approximately $ 1. 6 million. Glenda Glover, 115 Waynel Circle, wished to know if recycling would be continued. The City Manager mentioned staff made a recommendation on recycling based on fuel and oil which will be covered when they discuss the budget for recycling. Special Council Meeting 8- 8- 07 55 BUDGET REVIEW Council began review of the Fund/ Department/Division proposed budgets. CITY COUNCIL Review included the cost of personal services for salaries and insurance. It was recommended that Council not receive an increase in salary to maintain the same level as the current year. The Finance Director explained the I RS has a special provision that stipends are subject to payroll taxes. She noted previously Council was paid as a reimbursement then received a 1099, but now the checks will recognize the payroll tax. The City Manager explained the increase in the budget is a result of the new tracking method of expenditures being placed in the appropriate department responsible for the expenditure. During review it was suggested that food & drinks for City Council meetings under Operating Supplies be changed to refreshments. Kabe Wood, 240 Brooks Street, suggested Council receive no cost of living increase and no more increase than the other employees. Mr. Minich moved to increase the salary of Council and the Mayor 1. 4%. Mr. Garvie seconded motion and it carried by a vote of 6 to 1 with Holmes, Miller, Reeves, Garvie, Hartwell, and Minich in favor and Pullen opposed. The City Manager noted staff will return tomorrow evening to let Council know the tally for that item, and everything else would remain the same unless there are other particular changes. CITY CLERK Review of the City Clerk Department budget included an exchange of views on the deletion of $ 20, 000 for the 4th of July fireworks. The City Clerk mentioned that the Chamber of Commerce said they would probably take it over if Council did not fund the fireworks. Glenda Glover, 115 Waynel Circle, expressed her desire to see Council continue to keep the 4th of July and to use the money for candy and beads toward fireworks. Kabe Wood, 240 Brooks Street, suggested the City ask the TDC or the Chamber of Commerce for support. Dr. Pullen moved to re- instate $ 20, 000 for the 4th of July fireworks. Mr. Garvie seconded motion. It was further suggested that the City partner with the Chamber to put on the event and also proceed to get donations to off-set the $ 20, 000. 00. The City Clerk stated she will speak with the Chamber of Commerce tomorrow. The Mayor called for the vote on the motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. 56 Special Council Meeting 8- 8- 07 RECESS The meeting recessed at 7: 27 p. m. RECONVENE The meeting reconvened at 7: 40 p. m. CITY MANAGER The City Manager pointed out the major change in the City Manager Department budget is the Budget & Grants Manager position is moving back to the Finance Department. Mr. Minich moved to accept the City Manager Department budget as presented. Mr. Hartwell seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. HUMAN RESOURCES Review of the Human Resource Department budget included the Cafeteria Plan Administration; the relocation expense; special events for the benefit fair, employee/ manager of the year awards, Florida Government week, and service awards; and the deletion of flu shots estimated at $ 3, 000. 00. Mr. Minich moved to accept the overall budget of the Human Resources Department budget as presented, not to increase but to provide flu shots. Mr. Holmes seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. FINANCE DEPARTMENT/ CUSTOMER SERVICE The Finance Director went over the budgets for the Finance Department and Customer Service under the Utilities Fund. Mr. Garvie moved to accept the Finance Department and Customer Service budgets as presented. Mr. Reeves seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. PURCHASING DEPARTMENT Review of the Purchasing Department budget included the HTE Maintenance contract and explanation of the tuition reimbursement program. Mr. Minich moved to accept the Purchasing Department budget as presented. Mr. Garvie seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. POLICE DEPARTMENT/ LETF' S Review of the budgets for the Police Department, the Law Enforcement Trust Fund, and the Law Enforcement Training Fund included the vehicle purchases, ammunition, ballistic vests, and accreditation. Mr. Garvie moved to accept the budgets for the Police Department, the Law Enforcement Trust Fund and the Law Enforcement Training Fund as Mr. presented. Minich seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. Special Council Meeting 8-