Fort Walton Beach Council agenda — 04-26-05 — reading text

139 4/ 12/ 05 MAYOR/COUNCIL ANNOUNCEMENTS ( CONT) The Mayor thanked Reverend Ross and the youth group from the First United Methodist Church of Fort Walton Beach for giving the invocation and leading in the Pledge of Allegiance. He also pointed out the information on community response handed out by Captain Jim Poirrier of the Fire Department at a Kenwood Neighborhood meeting, and complimented the firemen on a good job during the rough weather lately on the beach. The Mayor mentioned he would be out of town during a Memorial Day ceremony at the cemetery and wished to know if anyone could attend in his place. Dr. Pullen volunteered to attend the ceremony. CITY MANAGER ANNOUNCEMENTS The City Manager commended the City Attorney on the great job she did on the recodification of the Code. She gave an update on the rain event and discussions with residents in the unincorporated area near the treatment plant. She also gave the announcements on upcoming events, including the Housing Expo on April 16; the Showtime Showcase on April 15; the Arbor Day Celebration at the Landing on April 22; the City Picnic on April 23; Musical Echoes on April 29; and the Charity Golf Tournament on May 7. ADJOURNMENT There being no further business, the meeting adjourned at 9: 00 p. m. APPROVED: MAYOR: ATTEST: CITY CLERK  141 MlhdTES OF THE COUNCIL WORKSHO., 4EETlNG OF THE CITY OF FORT WALTON BEACH, FLORIDA APRIL 19, 2005 INTRODUCTION A Council Workshop Meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, April 19, 2005 at 5: 30 p. m. with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Bill Patterson ( arrived at 6:45 p. m.), Bob Campbell, Jim Tucker, Dr. Wayne Pullen, and Mike Minich. Absent: Jim Hartwell Director; Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Mike Burton, Finance Toni Craig, City Attomey; and Department Directors. CALL TO ORDER The Mayor called the meeting to order. PLEDGE OF ALLEGIANCE The Mayor led in the Pledge of Allegiance MAJOR BUDGET POLICY ISSUES 2005-06 Consideration of major budget policy issues to guide the development of the Fiscal Year Operational Budget and Capital Improvements Program. earlier development in the budget The City Manager recalled Council expressed a desire to have to assist Council in understanding the available process. She noted the objectives of this workshop was revenue resources and plan of operation for the year and make revisions as desired, to establish service levels and funding mechanisms, and to determine Council's desires on major policy issues in order to develop the budget. rates, The City Manager gave a brief overview of the economy at the local level with low unemployment affordable housing contributing factors, increased retail sales, a higher cost of living and decreased as which and the City' s decrease in population. She then gave an overview of the revenue budgeted and golf; franchise fees, utility include Ad Valorem taxes; user fees for water, sewer, sanitation, recycling taxes, communication service tax, local option gas tax, and the half-cent sales tax. make a change in the Chris Gibson, 249 Brooks Street, encouraged Council to ask the Legislators to distribution of the sales tax so the City will receive more revenue. The City Manager continued with an overview of total expenses including compensation adjustments, a look at health insurance, pension, operations & maintenance, capital outlay, and capital improvements; the general fund projection based on the millage maintained at 4. 97, the estimated roll- back millage of fund projection, the 4. 7025, and the millage increased to 5. 07; the utilities fund projection, the sanitation golf fund projection; and the fund balance reserves. issues critical to the The CityManager asked Council to reach a consensus on the following policy development of the budget for FY 05-06: Ad Valorem taxes ( millage), occupational licenses, sanitation softball land complex/fairg ounds rates, recruitment & retention, health insurance, retirement earlyo- ut, h take- ome vehicles, and rapid response vehicles. acquisition, CRA focus, stonnwater utility, police 14 2 4- 19-05 MAJOR BUDGET POUCY'ISSUES cont Ad Valorem Taxes ( millaae) At what millage rate should the FY 05- 06 budget be prepared? The City Manager reviewed the current 4. 97 millage rate, maintained for the past 12 years and recommended the City maintain the current rate of 4. 97 mills. There was brief discussion on the increase in expenditures; concern expressed on the impact of a increased property values to individuals on limited income; and it was pointed out that consolidation of services could reduce taxes. There was consensus of Council to maintain the current rate of 4. 97 mills for the 05- 06 FY budget. Occuoational Licenses Should occupational license fees be increased? The City Manager explained the additional revenue that would be collected with minimal impact to business owners, that the Florida State Statutes allow municipalities to increase occupational license fees no more than 5% every two years, that the fee has not been adjusted since 2001, and recommended the City increase fees 5% effective Odober 1, 2005. There was consensus of Council that the City increase occupational license fees 5% effective October 1, 2005. Sanitation Rates Should sanitation and recycling fees be evaluated? The City Manager explained the rates for residential and commercial garbage have not increased since 1995 and that recycling rates have remained unchanged since inception over ten years ago and in fact were decreased in 2001; costs have increased and revenues have not kept pace; that staff is looking at a way to off-set the cost of recycling; and proposed that staff conduct a study in- house and develop a multi- year fee schedule. There was consensus of Council that staff move forward to conduct a sanitation and recycling rate study and develop a multi- year fee schedule. Recruitment & Retention Should adjustments be made to the City' s compensation system? The City Manager reviewed the City' s turnover rate with compensation most commonty noted as the reason for leaving; the cost of employee turnover, reminded Council that the City is currently undergoing a Pay and Classification Study being conducted by MGT of America' s; and proposed the City implement compensation adjustments in accordance with the MGT of America' s recommendations and funding feasibility and noted those recommendations will be brought to Council in May. In response to the question whether it would help turnover if employees were vested earlier in the Pension Plan, the City Manager noted that is a separate issue but that may be something to consider for the 06-07 budget because a study would be needed. There was consensus of Council to implement compensation adjustments in accordance with MGT of America' s recommendations and funding feasibility. Health Insurance Should reasonable coverage/ premiums be developed at a reduced cost to the City? The City Manager reviewed the increase over the past five years to the City' s contribution to health insurance premiums; the survey of 87 jurisdictions that revealed 75% pay 100% of employee health coverage and 59% pay 50% or less of dependent health coverage; that maintaining the City' s contribution of 75% to the employee premium and reducing the contribution to the dependent premium from 75% to 70% would yield a savings; that affordable health insurance with quality coverage is an important benefit that would help recruitment and retention; that a reduced City contribution could be phased in over a five year period to alleviate the effect on employees; and recommended that staff evaluate contribution adjustments to develop a program to incorporate coverage and contribution adjustments into the FY 05- 06 budget.  4- 19-05 143 Health Insurance cont of employee health care cost and 75% of There was consensus of Council that the City contribute 75% dependent cost (as it is currently) for the coming year. Retirement EarlvO- ut to the City, Should an early- out retirement program be offered? The City Manager reviewed the savings and recommended the City develop an the number of eligible employees, the benefits of the program; early- out retirement program for the FY 05-06 budget. retirement program and incorporate into the FY There was consensus of Council to develop an early- out 05-06 budget. Softball ComDlexlFairarounds Land ACQuisition The City Manager reviewed the history of the Should purchase of the land and facilities be pursued? the 42 acres for the past 34 years to operate the fairgrounds City and the NWF Fair Association utilizing over three years; that a lease and a softball complex; the appraised value at $4 million payable Fair Association to help offset purchase costs; and agreement would be developed with the recommended the develop a funding methodology for property acquisition. City Mr. Patterson