Fort Walton Beach Council minutes — 08-18-08 special miinutes - budget — reading text

219 MINUTES OF THE SPECIAL COUNCIL MEETING REVIEW OF PROPOSED BUDGET FOR FY 08/ 09 OF THE CITY OF FORT WALTON BEACH, FLORIDA AUGUST 18, 2008 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida,was held on Monday, August 18, 2008, at 5: 30 p. m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Dennis Reeves, Bill Garvie, Dr. Wayne Pullen, Jim Hartwell, and Mike Minich Absent: Virgil Miller Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Brandy Wunker, Finance Director; 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 2008/ 09. CALL TO ORDER The Mayor called the meeting to order. PLEDGE The Mayor led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Minich moved to approve the agenda as the business of the day. Mr. Hartwell seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor Miller absent). The Mayor suggested not to begin discussion on an item after 9: 00 pm, and to call a recess at about 7: 30 p. m. Mr. Minich suggested keeping a running total between the proposed millage rate and the City Manager' s millage rate to make it easier to keep track of The City Manager advised that can be incorporated into the Excel spreadsheet. OVERVIEW OF CITY MANAGER' S PROPOSED FY 2008/ 09 BUDGET The City Manager commended her Staff for the hard work that was done on this fiscal year' s difficult budget process to find ways to do more with less and to continue as much as possible the same level of services as in the past. Charlotte Dunworth, Budget/Grants Manager, gave a Power Point presentation with an overview of the proposed budget for fiscal year 2008/ 09. The presentation explained the budget development process that began in January; included a review of the top 5 budget issues: the tax reform, property reductions, personnel state shared revenue reductions, utilities and fuel expense increase, and pension contributions changes; and went over the proposed organizational restructure to reduce the number of City departments from 13 to lOin order to streamline operations, reduce spans of control, increase decision making authority and enhance the use of assets and resources both personnel and equipment. The proposed reorganization would realign the Information Technology Division and Public Information Officer under Human Resources to form the Administrative Services Department; the CDS Department will be combined with Public Works Department to form the Public Services Department; the Public Works Divisions for right-of-way maintenance, and cemetery will be realigned under Recreation and Cultural Services Department; the Engineering and Streets Divisions and Warehouse operation will be realigned under Utilities Department; and Purchasing will be realigned under Financial Services. 222 Special Council 8- 18- 08 CITY CLERK The City Clerk pointed out an addition to the budget includes the expenses for postage and the copier at City Hall, and explained the $ 11, 000 budgeted for special events includes $ 10, 000 for fireworks and $ 1, 000 for the other events attended by Council. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Hartwell moved to add $ 10, 000 for fireworks. Mr. Garvie seconded motion and it carried by a vote of 5 to 1 with Holmes, Garvie, Pullen, Hartwell, and Minich in favor and Reeves opposed ( Miller absent). Mr. Minich moved to al~prove the City Clerk' s budget as amended. Mr. Hartwell seconded motion and it carried by a votE~ of 5 to 1 with Holmes, Garvie, Pullen, Hartwell, and Minich in favor and Reeves opposed (Miller ~ lbsent). Res. 08- 28: City Clerk S~!!!. n The City Manager explained this resolution provides for the City Clerk to receive a cost of living increase at the same time and same rate as the other employees. She said for the City Manager the cost of living is already built into her contract that she receives the same as the general employees, and likewise for the Finance Director. The resolution was read by title. A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA; PROVIDING FOR AUTHORITY; FORMAIJZING SALARY, BENEFITS, AND COMPENSATION FOR THE CITY CLERK; AND PROVIDl' G FOR AN EFFECTIVE DATE. The Mayor opened the floor for public input. As there was none public input was closed. Mr. Garvie moved to approve Res. 08- 28. Mr. Minich seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor Miller ( absent). FINANCIAL SERVICE:~ The Finance Director reviewed the budget that includes realigning the Purchasing Department under the Financial Services Department, the elimination of a staff accountant position, and the funded but unfilled comptroller position. The impact to the line of authority was questioned if a resolution is put forward to remove the position of the Finance Director from the Charter as an appointed officer. The City Manager replied from an organizational perspective there would b(~a direct relationship only to the City Manager. An explanation was reques: ted on the goal to update the cost allocation study. The City Manager explained that is the money transferred between the General Fund and Utilities Fund for services provided to the General Fund and a basis is needed by which to charge the Funds to reimburse the General Fund. It was questioned whether the organizational chart agreed with the Charter. The City Manager stated the Charter says the direct reporting relationship is with the City Manager and that is what the organizational chart shows. The City Attorney said considering other decisions Council made to clarify the Charter that it did.  223 Special Council 8- 18- 08 FINANCIAL SERVICES cont. The question was asked on the timeframe for review of the Charter and possible referendum. The City Manager replied the plan is to continue with the review at the workshop on the third Tuesday in September. She will summarize all the issues Council has talked about and provide a staff report for Council to decide how to proceed. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Purchasine The Finance Director mentioned the Purchasing Department has been incorporated into the Financial Services Department and three of the five positions will not be replaced. She said the warehouse function will be moved to the Utilities Department as the majority of the items are utilities related, and they are looking at transitioning to a stockless office supply system and use a just- in-time inventory system. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Minich moved to approve the Financial Services and Purchasing budgets as presented. Mr. Garvie seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). Customer Service The Finance Director mentioned in the current fiscal year they made the switch from postcard utility bills to statement billing, the transition was made partway through fiscal year 2008 and the full contract price is budgeted in the fiscal year 2009 budget, and included in the budget is the mid-year elimination in FY 2008 of an account tech position and reclassification of one full-time account technician II to a part-time account technician I. It questioned whether it would reduce the workload if the percentage of accounts utilizing direct was payment were increased. The City Manager commented it is offered on the bills, but it still has to be posted to the account. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Garvie moved to approve the Customer Service budget as presented. Mr. Holmes seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). Non- Departmental The Finance Director noted there is not much left because they have tried to move line items out to the respective Departments, but it does include the $ 178, 000 transfer to the Golf Fund as was approved at the June 17, 2008 Council meeting. The City Manager noted they expect to reduce contingencies by $ 50, 000 to be $ 100, 000 because of the adjustment needed for fITe wages. She mentioned the other $ 25, 000 for workers compensation will be spread out throughout the general fund budget. Mr. Minich moved the change contingencies in the General Fund - Non- Departmental budget from 150,000 to $ 100, 000. Mr. Hartwell seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). Mr. Hartwell moved to approve the Non- Departmental budget as amended. Mr. Minich seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). 224 Special Council 8- 18- 08 FINANCIAL SERVICES cont. Debt Service Fund The Finance Director mentioned the street sweeper was moved from the Debt Service Fund to the Stormwater Fund. The move of an emploYI~e to a fund that does not currently exist was questioned. The City Manager explained staff predicated the budget based on creating a stormwater utility and Council will consider the ordinance for second reading when the final results are received from the