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

Sent: Tuesday, August 12, 2008 10:25 AM To: nwflegals @nwfdailynews. com Subject: legal ad Importance: High Please run the attached " Notice of Special Council Meeting" in the legal section of the paper on Friday, August 15, 2008. If you have any questions, please call me. Thank you, Dixie MacDonald Deputy City Clerk City of Fort Walton Beach 833 -9510 833 -9640 - FAX 8/ 12/ 2008  eaW64ol 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: 3 0 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 property tax reform, personnel reductions, 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 10 in 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, streets, and cemetery will be realigned under Recreation and Cultural Services Department; the Engineering Division and Warehouse operation will be realigned under Utilities Department; and Purchasing will be realigned under Financial Services. 220 Special Council 8 -18 -08 OVERVIEW cont. The presentation continued with an overview of the General Fund Revenues, General Fund Expenses, General Fund Reserves, the Utilities Fund, the Sanitation Fund, the Golf Fund, and Other Funds, and went over the Fee Schedule adjustments for the General Fund, the Utilities Fund, the Sanitation Fund, and the Stormwater Fund. The presentation concluded with the budget review methodology proposed by staff That the budget review follows the proposed reorganization and Department Directors will briefly present their divisions; To review each division in order as presented in the budget book; To vote on each division' s proposed budget as presented, or as changed by motion; The goal is to finish no later than 9: 3 0 each evening; The outside agencies will present on Wednesday, August 20'; and On the final day there will be a budget recap to confirm the budget changes, outline a plan for reorganization changes, and talk about fee schedule changes and how those will be brought forward with resolutions and ordinances. The Mayor opened the floor for public input. As no one wished to speak public input was closed. BUDGET REVIEW METHODOLOGY Mr. Minich moved to approve the budget review methodology as presented. Mr. Hartwell seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). BUDGET REVIEW Council began review of the proposed budget for FY 2008/ 09. GENERAL FUND REVENUES Ms. Dunworth went over the General Fund Revenues anticipated to be received from ad valorem taxes and forfeitures, interest other taxes, licenses & permits, intergovernmental revenue, charges for services, fines & other revenues, and transfers in. She noted the biggest adjustment will be the boat launch fees. The City Manager requested Council accept the revenues as presented understanding they will vote on the fee schedule changes at a future date. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Minich moved to accept Revenues as presented. Mr. Hartwell seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). CITY COUNCIL Review included the increase in dental, life & health insurance, and the amounts budgeted for travel/training and for PAWS services. The City Manager explained that PAWS had requested an increase to $ 105, 000 but adjusted the amount to the $ 95, 431. 00 budgeted. She believed the amount is fair for the service provided. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Minich moved to approve the City Council budget as presented. Mr. Reeves seconded motion and Miller it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor ( absent).  221 Special Council 8 -18 -08 CITY MANAGER Review included the change to move the Public Information Officer to the Administrative Service Department and the resulting reduction in the travel/training and books, dues, and publications. In response to the question on whether approving the budget will approve the reorganization, the City Manager said Council would need to accept the reorganization through an ordinance amendment. She said the budget is predicated on the reorganization and if Council is not accepting of the reorganization, staff needs to know now. Mr. Minch moved to accept the re- organizational change as presented for budget planning purposes. Pullen, Mr. Hartwell seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Hartwell, and Minich in favor (Miller absent). The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Minich moved to approve the City Manager' s budget as presented. Mr. Holmes seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen', Hartwell, and Minich in favor Miller absent). ADMINISTRATIVE SERVICES Mr. Wiltsie, AS Director explained the increase in professional services is due to line items being relocated to a more appropriate account, and the increase in printing and binding is associated with the PIO being realigned under Administrative Services. Risk Manamement Mr. Wiltsie explained this year risk management was broken out to capture the true cost and included in this budget is essentially all the property and casualty insurance items. InformatiowTechnology Dave Jenzen =IT Director mentioned a couple of projects they are working on for the conversion of the HTE software to a:hosted solution, and with Okaloosa County on a fiber optic project that will help reduce costs and increase connectivity. He mentioned there is a request again for a waiver of the bid process for computer related items. Mr. Minich moved to approve the Administrative Services budget as presented. Mr. Reeves seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). Mr. Hartwell moved to waive the bid process for computer related items when the collective value of multiple items is greater than $ 20,000 and authorize the City Manager to approve those procurements; and replace the bid process for computer related items with a written request for quote to be sent to a minimum of five vendors. Mr. Holmes seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). Mr. Wiltsie gave an update on two major benefits provided employees. He mentioned the medical insurance program through Blue Cross/ Blue Shield that is due to be renewed in February will have an increase of approximately 20 -25% due to a loss ratio of about 105 %. He said they are looking at alternatives on prescriptions and clinics to educate employees on managing illnesses. He mentioned they are currently receiving estimates from the Plan Actuary and the Pension Attorney to study the transition from the Defined Benefit Plan to a Defined Contribution Plan. He said they will come to Council in September with a request to further study it and whether or not it would be a good transition for the City. 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 copier1, 000 at City for Hall, and explained the $ 11, 000 budgeted for special events includes $ 10, 000 for fireworks and $ 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