HomeMy WebLinkAbout08-14-13 Budget WorkshopBudget Workshop
OCOEE CITY COMMISSION
Ocoee Commission Chambers
150 North Lakeshore Drive, Ocoee, FL
August 14, 2013 MINUTES 6:00 p.m.
I. CALL TO ORDER
Mayor Vandergrift called the meeting to order and said we will have a briefing from the City
Manager and Finance Director.
II. Introduction — City Manager Frank
City Manager Frank said that staff has produced a recommended budget for FY 13/14 that is
currently balanced at the current year's rate of 5.8460 and represents a lower millage than the
roll back rate of 5.9037. That represents a reduction from last year's revenue in the city. This
budget fairly emulates what they have this year; there are no major cuts or new programs. They
do have some capital items but Finance Director Horton will explain when they get to that
portion.
III. FY13 /14 Budget Overview - Finance Director Horton
Finance Director Horton said the proposed FY 2014 budget for the City of Ocoee is
$56,056,010. The budget is comprised of several funds with General Fund the largest. The
General fund is the only fund directly impacted by the millage rate as Ad Valorem taxes are a
major source of its revenue. The proposed General Fund revenues for FY 2014 total
$34,741,730. This is a slight decrease overall from the current year budget of 1.2 %.
Intergovernmental revenues and ad valorem taxes make up the two largest categories of revenues
in the general fund. Taxable value of property within the city increased slightly ($110,627)
from the prior year's value. The other revenue categories saw little to no change from the
current year. Prior to adoption of the budget by the commission in September, a millage rate has
to be adopted. This millage rate is the amount used to calculate taxes on assessed property. The
amount of the millage rate determines the type of vote necessary to adopt the millage rate and
budget. As shown on this chart, a majority vote is required for a millage of 7.8291 or less. A
super majority or unanimous vote is required for a millage over 7.8291 up to 10 mils. The
proposed budget is balanced at 5.8460 mils- the current year millage. This is lower than the
rolled back rate of 5.9037. Last month you set the proposed tentative millage rate at the rolled
back rate of 5.9037 which would allow you to add up to $93,852 in items to the proposed budget.
The four main categories for the expenditure budgets of each fund are Personnel, Operating,
Capital and Transfers Out. Personnel costs represent the largest expenditure group for the
general fund since most of the departments including police and fire are budgeted in the general
fund. Department budgets are flat overall. Personnel Highlights include the addition of 5 part-
time and 4 full -time positions. The proposed budget contains a 2% increase for police union
employees and 2.5% increase for fire union employees effective the first day of the new fiscal
year. A 2% increase at mid -year is proposed for non -union employees. Pension fund
contributions decreased for both the fire /police and general employee plans.
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City Commission Budget Workshop
Funding is proposed for a Master Plan for development of the downtown area. This will include
a study assessing infrastructure, a brownfield option and a vision to further develop the area.
There is $500,000 proposed for road paving. Page 3 -85 of the proposed budget details the streets
to be improved. Also $10,000 has been proposed to add additional street lights for existing
subdivisions. Health insurance costs are increased by $50,000 due to the federal health care
program and $40,000 has been appropriated to paint city hall and the annex. The budget for
replacement computers have increased by $19,000. The Police department is proposing two new
software applications. Staff is applying for grants to help fund the purchases. Police budget also
includes items to furnish the training facility and cameras and radar for police vehicles. A much
needed fuel monitoring system is proposed in the Fleet budget. This system should provide
accurate records of fuel received and generate reports of where the fuel is being used. Funds in
the amount of $10,000 have been allocated for improvements to the park on Montgomery road
and $23,000 proposed for modifications on the city hall generator. A total of 16 vehicles are
proposed to be purchased in the general fund budget. These include four replacement pickup
trucks, seven replacement police cars, woods /brush fire truck, cab chassis ambulance, fire engine
replacement, asphalt paving truck and a bus that replaces a 15 passenger van in recreation.
Proposed equipment for general fund includes: radios for PD, air bag system and power unit for
Jaws of Life (fire dept) 2 mowers, tractor and top dresser for Parks.
The total budget for the Stormwater fund is $3,740,195. The Stormwater Division will be
preceding with the second phase of the Bluford Avenue drainage improvements. This is from
Columbus Street to Delaware Street and includes the Orlando Avenue intersection. Funding for
the next three phases of the Peach Lake Manor project are included in the proposed budget. The
Division will also be performing numerous minor drainage projects to upgrade existing drainage
systems throughout the City. The Stormwater Division is also procuring a medium duty dump
truck to improve the efficiency of our maintenance operations in remote areas.
Total FY 2014 budget for the water /wastewater fund is $12,091,125. The Utilities Department's
budget is primarily geared toward ensuring its future success and integrating technology to
streamline the department's operations. Budgeted projects for the upcoming year include the
final phase of the centralization and upgrade of the SCADA /PLC system. This system serves as
the "brain" for the treatment processes. This final phase will combine all data terminals at the
wastewater treatment plant's operation center. The water facilities' current SCADA /PLC system
will be replaced and join the SCADA /PLC system which controls the wastewater plant and lift
stations. The relocation of water and sewer mains for the SR50 widening is budgeted at
$2,600,000. Funds in the amount of $200,000 have been allocated for the engineering and
design of the downtown sewer project which would make available sewer services to the McKey
street downtown area. Major water line replacements and upgrades throughout the system are
funded at $525,000. The Reconstruction and relocation of lift station #10 is funded at $350,000.
The rehab of the wastewater plant's north sand filter is budgeted in the R &R fund ($190,000).
This will improve the wastewater treatment process and is in conjunction with the south sand
filter rehabilitation which was completed in FY 2013.
The Sanitation Division will be implementing recycling collection utilizing 96 gallon containers
which can be collected by the automatic side loader trucks currently utilized for garbage
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City Commission Budget Workshop
collection. The Division will also be procuring two new side arm sanitation trucks as
replacements for existing trucks in the fleet that are coming to the end of their useful life cycle.
Impact fund revenues are budgeted to pay debt service on associated issues. These include road
and park additions and acquisition of land and buildings for police and fire. Additionally, Water
and wastewater capital funds include funds to upsize system lines associated with new
development. Finally, there is the wish list for FY 2014; a copy was included in the presentation
packet distributed on the dais. These are items requested by departments or discussed during the
year but are not funded in the proposed budget. The cost of each item and the corresponding
increase to the millage rate are presented to assist in your decision making.
IV. Wish List for FY13 /14 Budget - Distributed (attached)
V. Discussion
Mayor Vandergrift solicited any items from the commission that they would like to enter into
the wish list. Commissioner Keller said the only thing he would like to look into is moving the
firing range. He did not believe there was any pricing on that yet so it would be hard to add at
that in at this point. Hopefully by the next meeting they may have a little bit more information in
which they can then look further into possibly doing a joint venture with other cities.
Commissioner Keller said he would also like to make sure they have a contingency plan in
place if and only if they should have something go wrong with Rural Metro. He advised that
Rural Metro is currently going through a debit to equity bankruptcy which normally runs
smoothly but in case they decide to do things differently he feels they should have a plan in
place.
Commissioner Johnson said he would like a small skate board park put out at Vignetti Park.
They have talked about it for years and most cities have a small park so he does not believe they
are costly. He advised he would like for Parks and Recreation Hayes to look into pricing and
liability.
Commissioner Wilsen and Commissioner Grogan both advised they did not have anything at
this time that they would like to add to the wish list. Mayor Vandergrift announced there will
be a series of two workshops in which no actions will be taken; they may add to the wish list for
the purpose of consideration and development of the budget for the public hearings.
Mayor Vandergrift advised he would like to add to the wish list the change out of the fountain
on SR50. He is not sure why it has drifted and feels it should be corrected. He further announced
and introduced Christine Moore with the School Board who would like to make a presentation to
the commission in regards to a budget item.
Christine Moore, District 7 School Board Member, said she is a making a formal request on
behalf of her district and not the whole school board. She provided a PowerPoint presentation
and advised that she is before the commission to request money for a technology investment
proposal (purchase iPads for kindergartners). Dr. Mark Shanoff, Principal of Ocoee Middle
School, also spoke of the benefits of technology. It was explained that with 5 devices per class
there will be access for all the students to utilize technology. School Board Member Moore
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City Commission Budget Workshop
gave an update on what is going on with the different schools located in Ocoee. She further said
they are asking the commission to consider a donation of $61,646.00 from the City of Ocoee to
help improve all the Ocoee schools (kindergarten level) with technology. There was discussion
amongst the commission, School Board Member Moore, and Dr. Shanoff with regards to
whether if the county or other cities were solicited for funds to help with the cost and whether the
iPad's would follow the kindergartners as they progressed in grade. Mayor Vandergrift
advised that without objection he would put School Board Member Moore's
request on the wish list for consideration of $61,646.00 which would cover 5
iPad's per school for kindergarteners. The Mayor noted that $123,292.00 would allow for
the purchase of 10 iPad's per school.
PAGE BY PAGE:
Page 2 -2 Mayor Vandergrift inquired about the decrease in road impact fees from $1,287,704
(FY12 -13) to $701,335 (FY13 -14). City Manager Frank explained that the commission
lowered the impact fees about a year and a half ago by 25 %. Also if there is a large project they
will see a fluctuation in each year. Mayor Vandergrift inquired if that amount would be enough
to meet their debit service on this. City Manager Frank advised probably not. The general fund
would be contributing to the debit.
Page 3 -1 Mayor Vandergrift said it shows a projected cash balance and inquired why they
would not consider that contingency. Finance Director Horton explained that the beginning
cash balance is the amount of dollars that they are using from the reserves to balance the budget
which most of that is dedicated to a particular project. The contingency is a specific amount of
dollars available to cover items they were not specifically stated during the budget (things that
come up).
Page 3 -7 Mayor Vandergrift inquired about miscellaneous revenue increasing by $600,000.
City Manager Frank explained that they are anticipating a down payment for the Coca -Cola
Property that may be coming in next year.
Page 3 -5 Mayor Vandergrift inquired about plan review fees dropping. He further advised that
he thought that would be going up since we are getting more houses in the city limits. City
Planner Ruiner advised that the plan review fee is a mix between planning and pen review.
He explained large scale site plans and large subdivision reviews would contribute to that
revenue; however, unfortunately they are currently only revising existing projects and so the
planning portion is not generating a higher revenue number. Mayor Vandergrift explained the
fire plan review fee shows an increase and was wondering why they could not assume that they
would also have an increase in the plan review. City Planner Rumer explained that townhomes
and apartments have a higher fire plan review fee than single family residential and the city is
anticipating more townhomes and apartments to be built thus generating a higher fire plan review
fee. Assistant City Manager Shadrix shared that they were extremely conservative with the
projections. They are a lot of talks and activity with the developers but unless they have reached
some official stage in the development process that something will happen in this upcoming
fiscal year, the numbers were kept at a lesser amount than they expect. Further discussion
ensued regarding revenue projected within the plan review fees.
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City Commission Budget Workshop
Page 3 -5 Commissioner Keller inquired about the alcoholic beverage license decreasing and
wondered if they did not anticipate an increase with the new event center. Finance Director
Horton said the alcoholic beverage license is revenue they received from different
establishments such as restaurants and so forth that actually have an alcoholic beverage license to
sell alcohol. Further discussion ensued regarding the alcoholic beverage license revenue.
Page 3 -6 Commissioner Johnson shared that he would like to see more red light cameras
installed. Discussion ensued regarding adding new red light cameras and personnel to man the
red light camera program. Revenue collected from the red light cameras is $860,000 but the city
is spending about $500,000 on costs to ATS so the city makes about $300,000. After a lengthy
discussion on cost for personnel and revenue that would be collected from the cameras, the
Mayor asked for this to be added onto the wish list.
Page 3 -6 Mayor Vandergrift inquired about the community center rentals and when the fees
would be set up. Parks and Recreation Hayes advised they are in the process of finalizing a fee
schedule and he is hoping to be bringing that to the next workshop. He advised the number they
see in the budget books is for the 12 months which they kept at a rather conservative number.
Commissioner Wilsen said she would like to have the City Manager to bring back to one of the
regular commission meetings a policy or resolution that would not allow fees to be waived for
use of the new facility. City Manager Frank said he believes she is requesting that a rules and
regulations type policy be put in place. Commissioner Wilsen further shared her concern with
fees being waived for an event center that they will need to generate revenue from.
Page 3 -7 Mayor Vandergrift inquired about the timber sales and said he thought it would be
completed before this fiscal year. He further inquired about the $30,000 carry over. Assistant
City Manager Shadrix said the $30,000 is additional sales for the city since they have already
covered the cost of the Christmas lights rental. Mayor Vandergrift further inquired about the
sale of the land at $600,000. City Manager Frank explained that revenue is strictly for the
down payment only. He advised not knowing what terms the commission may agree too they had
to be conservative with the numbers.
Page 3 -8 Commissioner Keller shared his concern regarding the Ocoee cemetery conditions and
further inquired if they should be looking at adding more money into the budget for a new fence.
He feels they should at least look at additional funds for the fencing. City Manager Frank said
they mailed out a letter as directed by the commission to see if there is some interest from the
private cemetery companies to come in and operate our cemetery. They may have a response by
the next meeting. A brief PowerPoint presentation was given by Parks and Recreation Hayes
which explained proposed improvements for the entrance of the cemetery and addressed some of
the general issues of the cemetery. After discussion, staff was advised to put the entire cemetery
improvement cost into the wish list so they can look at the numbers than discuss a plan.
3 -8 Commissioner Johnson inquired about the reduction of expenditures for recreation.
Finance Director Horton explained that is the money they have in the budget this year to build
the community center. Commissioner Keller inquired if a server was included in the budget
since he had received an e -mail a couple of weeks ago stating that microfiche was dead. Support
Services Director Butler advised that in the current year budget they have spent funds to get
August 14, 2013 Page 6 of 7
City Commission Budget Workshop
more disk storage and they now have a unit that all the servers will share. They are now trying to
start acquiring individual servers that they can migrate to serve those major types of applications.
Mr. Butler advised it is in their budget proposal for next year the additional servers they will
need to finish the build out. On the same page (3 -8), Mayor Vandergrift said under fleet
maintenance they went to a contract and was wondering if this has saved them money. Public
Works Director Krug advised the original parts contract was anticipated to be in place by
November but it was not actually implemented until April. They are seeing a savings in the
purchasing of parts but will probably not see a marked decrease until next year. Finance
Director Horton advised there is also $40,000 in that proposed expenditure for the fuel system.
3 -12 Commissioner Johnson inquired why professional dues increased. Finance Director
Horton said she believes that is for the Tri- county Partnership. On the same page (3 -12),
Commissioner Keller inquired about small equipment. He advised he noticed on many of the
pages small equipment is going from $0 to $500. Finance Manager Brosonski advised $500 is
for a. wireless printer for iPads in the commission office.
3 -22 Commissioner Johnson inquired about the fire station being utilized as a polling location
for city municipal elections. He advised it is tough for those in his district when they get off of
work to get to their polling location. City Clerk Eikenberry inquired if he is asking to add a
third location or inquiring about moving one of the locations. It was clarified that he is only
referring to municipal elections. City Clerk Eikenberry explained it is about $25,000 per
polling location which includes all of the personnel and machines. She advised it would not cost
any more if they just moved community center polling location further south.
3 -26 Commissioner Keller said that he noticed a decrease in operating supplies and inquired if
that was a true decrease. Finance Director Horton answered affirmatively.
3 -30 Commissioner Keller inquired about the increase in administration expense. Human
Resources Director explained that administrative expenses encompass their advertisements for
employment. Now that they have number of open positions they are running a lot more ads.
3 -34 Mayor Vandergrift inquired about developer billings being $0. Finance Manager
Brosonski advised that is not a budgeted item but is a pass through cost to the developer so they
do not know what the actual cost will be until they pass that cost through to the developer.
3 -37 Mayor Vandergrift inquired about the Ocoee Master Plan (McKey- downtown) $25,000
grant. Finance Director Horton advised they did not get the grant and at the time of printing the
budget books they did not know they would not be getting the grant.
3 -38 Mayor Vandergrift inquired about the increase in professional services /other. Finance
Manager Brosonski advised that is the $25,000 grant money from the Ocoee Master Plan which
will decrease to $25,800 now that they will not be receiving it. Finance Director Horton
explained where changes would be made in revenue as well. She advised corrections will be
made accordingly to the budget books.
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City Commission Budget Workshop
3 -41 Mayor Vandergrift inquired about the increase of $50,000 in health insurance and
inquired if that was the Obama Care program. Human Resources Director Williford briefly
explained the program and advised it will not go into effect into January 1, 2014.
3 -42 Mayor Vandergrift inquired about the interest rate for the Crown Point Property and if it
could be brought back to them.
3 -62 Mayor Vandergrift inquired if there was any possibility if they could defer some of their
vehicles until next year and purchase hybrids this year? Public Works Director Krug advised
that most of what they have in the budget this year is light duty pick -up truck and police pursuit
vehicles. Mr. Krug explained the last administrative vehicles they picked up were hybrid.
3 -63 Mayor Vandergrift inquired about the decrease in contractual services. Public Works
Director Krug advised that they have been able to do a lot of things in house and have found
less expensive vendors thus reducing the cost in that line item.
3 -64 Mayor Vandergrift inquired about the $63,000 in capital improvements. Public Works
Director Krug advised that amount is summarized on page 3 -62. Brief discussion ensued on the
painting of city hall which is included in the $63,000.
3 -67 Mayor Vandergrift inquired about the new records management system for Police
Department for $90,000. Police Chief Brown explained that the records management system
they currently use has been sold to another company and they are unable to continue providing
the service so they need to change. This is just a start up estimate to change to another company.
They cannot get rid of the old system right away so the budget includes both companies until
they can drop that company.
IV. ADJOURNMENT
Meeting adjourned at 8:30 p.m.
Attest:
'
Eikenberry, City d
APPROVED:
City of Ocoee
S. Scott Vandergrift, Mayor