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HomeMy WebLinkAbout08-11-99 MINUTES OF THE OCOEE CITY COMMISSION BUDGET WORKSHOP HELD AUGUST 11, 1999 CALL TO ORDER Mayor Vandergrift called the Budget Workshop to order at 6:10 p.m. in the Commission Chambers. PRESENT: Mayor Vandergrift, Commissioners Anderson, Howell, Johnson, and Parker. Also present were City Manger Shapiro, Finance Supervisor Carter, Building and Zoning Official Flippen, Finance Director Horton, Police Chief Mark, Recreation Director Nordquist, Human Resources Director Psaledakis, Director of Community Relations/Projects Shira, City Engineer/Utilities Director Shira, Public Works Director Smith, Budget Analyst Strickland, Fire Chief Strosnider, Information Systems Manager Tartar, Planning Director Wagner and Acting City Clerk Green. ABSENT: None. Consensus was reached to end the workshop at about 8:30 p.m. and Mayor Vandergrift asked City Manager Shapiro to present his opening statements. City Manager Shapiro advised there was a shortage of revenues this year because the City had not received the anticipated revenues from growth or from the State as all State shared revenues were down. Mr. Shapiro further stated that, based on current figures, the budget only increased $185,000.00 and the working funds for this budget were less than $250,000.00. He said the proposed budget does not include a lot of capital items, but does include numerous lease payments for vehicles purchased in the last two years, bond issues, and an increase in health insurance premiums. REVIEWIDISCUSSION: BUDGET FY 1999-2000 In the discussion which follows budget message issues were interspersed with a page by page and line by line review of a portion of the Budget Workbook. The Finance Team, City Manager Shapiro and Department Heads responded to questions raised by Commission. There were no changes made to the line items during this session. Requests requiring action are included below. Interim Services Fees Mayor Vandergrift expressed concern that the Commission was not involved in the decision to discontinue collection of Interim Service Fees as that had created a loss of $30,000.00. City Manager Shapiro explained that the collection of fees was stopped around mid July .when the City Attorney had advised that the Fees had been struck down by the Courts. Commissioner Anderson asked if the City was looking at another avenue to collect fees. Mr. Shapiro said our City is looking for other options as are other cities and the League of Cities. Ocoee City Commission Budget Workshop August 11, 1999 Addition of Two Part Time Recreation Employees Mayor Vandergrift asked if the City has contacted the YMCA to help with the new building or any of our programs. City Manager Shapiro explained that the two part time employees were for the gym and teen programs and that they intend to approach the YMCA about lifeguards for the pool. He said the after school program will remain at Vignetti Park until construction ofthe new Beech Center is complete. City Manager Shapiro asked for direction from Commission on the use of the Community Center since the children are no longer using it. He said work to restore it to its former condition would begin with installation of a new roof this week. He asked Commission to advise him if they do not wish to return the Center to general community use and to make it available for rental. Mayor Vandergrift said he thought that was the original intent and the Senior Citizens could be emphasized as part of that. No direction for change was given to Mr. Shapiro in ensuing discussion. Recreation Director Nordquist said a before school program was now provided at Vignetti in response to the change to later school starting times. Health Insurance Mayor Vandergrift asked about costs for the increase in health insurance premiums. Finance Director Horton said the increase for City employees was $86,000.00. She said the increase for employee dependent coverage was $48,400.00 and that amount was not included in the proposed budget. She said if the increase is passed on to the employee, it would be $345.72 a year/$13.00 per pay period. (She said currently the City pays $2500 or 74% of employee coverage). City Manager Shapiro pointed out that two years ago the Commission decided any additional cost of the dependent portion would be borne by the employee, but that can be changed. Human Resources Director Psaledakis added that insurance premiums have risen nationally 45%, and this year the City has had some catastrophic claims and kept the increase at 10%. Commissioner Anderson said he would like to see the City pay the increase for dependents. Fire/Police Dispatchers Mayor Vandergrift asked what the City was doing about the Fire/Police Dispatchers. City Manager Shapiro explained that eventually the dispatchers should have a separate division or department. He said that Ocoee is in discussion with the City of Apopka about a possible joint dispatch center. He said the separate listing would facilitate tracking dispatch costs and that information would be needed when negotiation begins. Discussion ensued. West Oaks Mall Ad Valorem Tax 2 Ocoee City Commission Budget Workshop August 11, 1999 Commissioner Howell asked about the refund to West Oaks Mall. City Manager Shapiro explained that West Oaks Mall challenged in a lawsuit the amount they were being charged for ad valorem tax and the Court found they were overpaying by $15,000.00. Finance Director Horton explained this is not shown in the budget as no money will change hands. Mayor Vandergrift commented on page 2-2" that in past years he has asked that the City look at hiring our own attorneys so the pass-through fees would come to the City, and he would like to see an accounting of what the pass-through is in a footnote on the page. He asked for more footnotes in future to clarify changes to the budget. Recess 7:25 p.m. to 7:38. COLA/Merit Increases Commissioner Parker said she supported a 2% COLA. In response to questions from Commissioner Anderson, Human Resources Director Psaledakis explained that reclassifications and grade changes are only done when indicated as a result of the annual survey, or if an employee is performing beyond the job description/grade level. Employees who reach maximum pay grade in their level would only receive COLA raises unless the job survey showed a need for reclassification. Commissioner Johnson asked if reclassifying an employee would yield an increase in salary greater than 5%. Ms. Psaledakis explained that this would happen if the job market showed they were underpaid. Commissioner Johnson asked for figures from the last two years for anyone who received an increase of more than 5% as a result of reclassification. Ms. Psaledakis added that if an employee is reclassified in grade level, the personnel rules and regulations state that the employee must receive the minimum grade level pay. Commissioner Johnson said he would like an outside firm to conduct the annual survey for classification/pay grade study. Ms. Psaledakis said the cost would be $15,000 to $20,000.00, compared to the information from the Florida League of Cities and Consortium. Commissioner Johnson said COLA increases should include City Officials and the City Manager. Discussion ensued. Commissioner Anderson said he feels that the 4% raise is out of control if continued for ten years. Mr. Shapiro explained that ten years ago more than half of the employees qualified for Aid to Dependent Children and 70% qualified for food stamps, so the employees were reclassified to a living wage. Discussion ensued Commissioner Parker emphasized that the Commission was here to discuss what to do with salaries and increases for this year. She said that every year the salaries are 3 Ocoee City Commission Budget Workshop August 11, 1999 discussed based on information from similar job classifications and she thought it is ludicrous to think that in 20 years a secretary will exceed the state standard. She said the City will never pay beyond what is acceptable in the industry. Commissioner Howell asked about the increase in budgeting overtime. City Manager Shapiro explained that the labor attorney had advised that some employees could not legally be salaried; therefore, would be subject to overtime if they had to work more than 40 hours. Commissioner Anderson asked for clarification on page 3-34 for the request of an accountant. Finance Director Horton explained that the addition of the accountant would allow the department to prepare the financial statements in house in lieu of using auditors. Commissioner Anderson asked to see a comparison of costs between using an accounting firm and hiring a new person for the accounting area. Mayor Vandergrift asked that on page 3-46 a footnote be added to explain how much longer the City had to pay on the Griffin Land Purchase. Mayor Vandergrift asked why the proposed and recommended amount for personal services was so different on page 3-52. City Manager Shapiro explained that Public Works Director Smith had asked for several new employees and the request was denied due to lack of funds. The meeting adjourned at 9:00 p.m. Attest: APPROVED: 1f rW.-anJ..JAjP0 Marian Green, Acting City Clerk ~~,5~ l1Jyf- S. Scott Vandergrift, Mayor 1/ 4