Fort Walton Beach Council agenda — 05-17-11 special — reading text

could be used to fund the initiative. 5. The maximum lump -sum payment could be less based on available reserves. Policy Options I. Endorse lump -sum performance incentive payment up to $ 900 ( or less based on available reserves) based on an employee' s annual evaluation score during FY 2011 - 12. 2. Maintain current policy of awarding vacation hours based on an employee' s annual evaluation score during FY 2011 - 12. 3. Do not provide any adjustments or incentives, monetary or otherwise, to employees during FY 2011 - 12. 12 of 15 Packat Pg. 17  F3 1.. a FY 201112 Budget Policy Meeting VOLUNTARY DEFINED CONTRIBUTION PLAN Background 1. General employees, police officers, and firefighters each have their own defined benefit pension plans, whereby vested employees who reach retirement age may apply for a pension benefit which is calculated based on years of credited service, a benefit factor typically referred to as a multiplier, and the member' s average final compensation. 2. In order to begin curtailing the City' s future pension liabilities, general employees hired on or after January 1, 2010 are required to participate in a defined contribution retirement plan rather than the defined benefit pension plan. 3. Police officer and firefighter defined benefit plans were not closed due to P. S. 175/ 185 requirements, which do not permit certain changes to these plans so long as the City receives some State funding for the plans. Discussion I. In contrast to the defined benefit pension plan, the City' s contribution rate is fixed for the defined contribution retirement plan and the employee' s plan benefit is based on contributions and investment returns rather than a calculated dollar amount. 1 Under the defined contribution plan, the employee and City each contributes 5% of payroll to the plan. The employee has the option to increase contributions up to an additional 2. 5 %, with a City match. 3. The FY 2011 - 12 budget includes $ 41 K for the City' s defined contribution plan payments. Financial Impact I. Contributing up to 7. 5% of payroll to the defined contribution plan is significantly more affordable than 20. 92% TY 2011) or 25. 55% ( FY 2012) of payroll to the defined benefit pension plan. 2. The policy decision is whether saving for retirement should be required of new hires, or if the City should just provide a mechanism for doing so if new hires desire to participate. Policy Options 1. Amend defined contribution plan participation to be voluntary for new hires. 2. Continue defined contribution plan participation to be required for new hires. 13 of 15 Packet Pg. 18  3. 1. a FY 2011. 12 Budget Policy Meeting COMMUNITY FACILITY CONSOLIDATION Background I. The City currently operates four community facilities: a. Hedrick Center - adult & youth recreation and sports programs, summer care for children ages 5 - 12, open gym. b. Docie Bass - after school care and tutoring for children ages 5 - 12, voluntary pre- kindergarten program for children age 3 - 5, open gym. c. Chester Pruitt - CDBG- funded after school tutoring and summer recreation program. d. Senior Center - programs & activities to citizens age 50 and over. Discussion I. The current recreation facilities are approximately 40- years- old and each facility requires major capital improvement funding for repairs. 2. Reconstruction and expansion of the Hedrick Center to a 25, 000 sq ft multi -use facility to provide for centralization of the City' s recreation and community programs is preliminarily estimated at $ 4. 8M. 3. There would be no loss of services or revenue during construction; programs would be run out of Chester and Docie in the interim. 4. The City maintains ball fields at the Fairgrounds, Ferry Park, and Senior Center. Ball fields at Ferry Park could be converted to a lower maintenance soccer field, and other ball fields would be centralized to provide for more efficient operations. 5. A centralized sports complex adjacent to the Hedrick Center is estimated at $ 2M. Financial Impact I. Hedrick Center improvements would be funded with a construction loan, with interest - only payments being funded from operational savings during construction, reserves, and/ or land sales. 2. Savings from facilities and fields consolidation are estimated to fund annual debt .service payments, thereby keeping the project budget -neutral. Policv Options 1. Close facilities as the air conditioning units fail or building repairs become prohibitively expensive. 2. Develop a capital improvement program for current facility repairs, essentially continuing operations status quo for another 10 - 15 years. 3. Develop a master plan to consolidate recreation centers and ball fields into a centralized location with a multi -use community center and sports complex for improved operational efficiency. 14 of 15 Packet Pg. 79  F- 31. a FY 2011 -12 Budget Policy Meeting SURPLUS LAND SALES Background 1. The City has several parcels of land that are vacant or underutilized, and have been identified as excess because they serve no current municipal purpose. Discussion 1. Several parcels have been identified as excess: Property Acreage Zoning Possible Use Fairgrounds 8. 99 Commercial Offices, Restaurants 243 Hollywood Blvd 3. 68 Light Industrial Light Industrial 245 Hollywood Blvd 3. 81 Light Industrial Light Industrial 25 Miracle Strip Pkwy 0.67 Commercial Commercial, Restaurant Sour St 6. 81 Residential Single Family, ± 30 homes Senior Center 6. 26 Residential Single Family, ± 20 homes 2. Based on previous discussions with City Council, staff is in the process of obtaining appraisals on these properties, as well as performing density testing at Sour. 3. Hiring a realtor through the REP process to market and sell/ lease the properties would likely result in the most profitable disposition. Financial Impact 1. Selling vacant land returns the parcels to the tax rolls and generates one -time revenues from the sale as well as future recurring revenues from property taxes, utility taxes, and water /sewer /garbage fees. 2. Leasing vacant land likewise generates recurring revenues, but allows the City to retain the property in the event a future municipal purpose is identified. Policy Options 1. Endorse sale or long -term lease of surplus properties. 2. Take no action on surplus properties. 15 of 15 Packet Pg. 20  3. 9. a From: Mayor Buddy Dyer [ mailto: buddy. dyer @cityoforlando. net] Sent: Monday, April 25, 20113: 55 PM To: Mike Anderson Subject: Small Business Assistance Program Dear Community Leader, Small businesses are the backbone of both our City and national economy. In the wake of the greatest economic downtown since the great depression, your City is doing everything possible to help lay the foundation for small businesses to succeed. Today, members of your Orlando City Council and I reaffirmed our commitment to assisting our City' s small businesses by approving a number of new initiatives designed to create jobs and economic prosperity in our community. Beginning immediately: The City is waiving the collection of change -in -use transportation impact fees for small businesses for a period of one year. This exemption reduces financial barriers for businesses seeking to expand or locate within the City and also encourages the development of vacant space. Exempting the fees also allows the business to direct more of its money toward growing their business which, in turn, creates jobs for our residents. The City is reinstating the Business Assistance Program to offset 50% of development fees up to $20, 000, including sewer and transportation impact fees and building permit fees for new small business owners. This program was temporarily frozen at the height of the recession because there was very little activity in terms of the opening of new businesses. As our economy begins to recover, we are now seeing a gradual increase in interest from entrepreneurs who want to open new businesses and we believe it' s important to do everything possible to encourage these businesses to open. The Business Assistance Program has produced proven results. Since its inception in 2001, it has generated more than $ 24 million dollars in capital investment and helped more than 50 new businesses open, in exchange for the offsetting of $ 441, 000 in fees. The City will fund the Orlando Main Street Program districts for an additional five years at $ 35, 000 per year. Packet Pg. 29  3. 9. a The Orlando Main Street Program helps strengthen the City' s neighborhood commercial business districts by enhancing their one -of -a -kind assets: distinctive architecture, a pedestrian -friendly environment, personal service, local ownership and a sense of community. Since the program' s inception in 2007, the City' s five designated Main Street districts (Audubon Park Garden District, College Park Partnership, Downtown South, Ivanhoe Village and Mills 50) have benefited from more than $ 138 million in improvements, the addition of more than 1, 000 full and part-time jobs and 177 new businesses. The measures above are part of our ongoing Strengthen Orlando plan. Launched in 2009, Strengthen Orlando is a uniquely local effort to generate jobs and help residents and small businesses "weather the storm" during the national recession. Since the launch of the Strengthen Orlando initiative, we have created 900 jobs by expediting $ 180 million in capital improvement projects and 600 jobs by expediting the planning and review process for any commercial project that creates ten or more jobs. We are pleased to continue to support our City'