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08-08-18 Minutes Budget Workshop Budget Workshop OCOEE CITY COMMISSION Ocoee Commission Chambers 150 North Lakeshore Drive, Ocoee, FL August 8, 2018 MINUTES 6:00 p.m. CALL TO ORDER- 6:00 PM Mayor Johnson opened the workshop meeting and City Clerk Sibbitt called roll. Present: Commissioner Grogan, Commissioner Wilsen, Mayor Johnson, Commissioner Firstner, Commissioner Oliver Also Present: City Manager Frank and City Clerk Sibbitt FY18/19 Budget Overview - Finance Director Roberts - 6:01 PM Finance Director Roberts provided a PowerPoint presentation summarizing the Proposed Budget for FY2018-2019. Budget Highlights in the presentation covered: • Economic Highlights • Millage Calculation • Revenue/Expenditure Summary • General Fund Revenues/Expenditures • New Positions and Personnel Changes • Vehicle Replacements • Equipment • Capital Improvements During her PowerPoint presentation, Finance Director Roberts addressed and clarified questions regarding impact fees and leasing vehicles. Commissioner Wilsen shared that the budget book was very easy reading, and thanked Finance Director Roberts for the new format she provided. Discussion - 6:22 PM Mayor Johnson announced that they will not be going through the budget book page-by-page as they have done in the past. The Commission has had time to review their budget books; so, if there are any questions pertaining to any area of the budget, he would like to begin with those questions. He opened the discussion in the order of seating arrangements, beginning with Commissioner Grogan. Commissioner Grogan inquired how much was funded last fiscal year for resurfacing of roads. City Manager Frank answered that he believed last year they budgeted $800,000. This year there will be a slight increase. Commissioner Grogan further commented that he has noticed a lot of sidewalk work being completed this year. City Engineer Campanale answered that they Ocoee City Commission Budget Workshop August 8, 2018 had about $40,000 in sidewalk repairs. City Manager Frank shared there are two positions in the budget for maintenance workers who will be tasked full-time with installing and repairing sidewalks. Commissioner Grogan commented that the Fire Department is expanding the most, and he noticed a lot of vehicles being replaced. He further inquired if there are any new purchase of vehicles, or if they were all replacement vehicles. Deputy Chief Hoover answered that the Rescue Truck is being purchased in this year's budget. Commissioner Grogan inquired if revenue from ambulance services and from impact fees would be used for vehicles. Deputy Chief Hoover explained that the revenue from services will be placed in the general fund, and vehicles would be paid from that fund. Finance Director Roberts concurred with his response. Commissioner Wilsen inquired about the beginning balance of $812,098 on page 76 of the Water/Wastewater Utility Fund Budget. Finance Director Roberts answered that the $812,098 is the reserved funds necessary to balance the budget. Utilities Director Smith answered that a percentage of that balance will be used to reimburse the bond funds for the property they purchased. He also shared that they are funding a lot of utility work for the new downtown projects. Commissioner Wilsen shared that all other questions she had on the budget were answered by the City Manager. She further commented that the budget was very well done, and congratulated all the departments. Commissioner Wilsen inquired if a presentation was going to be provided on City parks. City Manager Frank explained that if the funds are placed in the budget that City staff can come back later for a workshop or during a Commission Meeting to do a presentation. Commissioner Firstner shared that on page 28, under General Government Services, he noticed that health insurance increased 53.8% and workers' comp insurance increased 26.8%; and further, inquired as to what is driving those increases. Finance Director Roberts answered that the numbers from the brokers came in late after the budget was provided to them so she will be working on tweaking those numbers based on their latest estimates. The numbers will not be increasing as anticipated in those early estimates. She further shared that health insurance is driven by increase in rates from the provider, number of employees, and number of claims filed. Human Resources Director Williford reiterated that they did not receive the information sooner from the City's health insurance carrier as they are on a calendar year from January 1 — December 31, so staff estimated it at a higher cost. He further explained, due to a significant number of claims this year, staff had to put money back into the workers' comp insurance fund as they used some of the reserves. What is proposed in their budget books is a conservative number until they get final numbers. City Manager Frank added that they do not anticipate the increase to the insurance to be more than 10% from last year. Commissioner Firstner confirmed that the millage rate is balanced based on the numbers currently provided. City Manager Frank answered in the affirmative. Commissioner Oliver said he has a question on the millage rate that was printed on page 5. Finance Director Roberts confirmed that was a typo, and apologized for her oversight as the information on that page is for FY17/18 and not FY 18/19. She announced that the budgeted millage rate is 5.654 mills and the proposed rate is 6.5 mills. Finance Director Roberts was 2 Ocoee City Commission Budget Workshop August 8, 2018 asked to explain the proposed millage rate, and why the City proposes at a higher rate but always adopts a lower millage rate. Commissioner Oliver further inquired about Travel Expenses at $40,000 for the City Commission located on page 13, and why that amount is so high. Explanation was provided that travel for all members of the Commission to attend educational conferences local or out of state would come from that line item. Commissioner Oliver shared that he would like to see a breakdown of the travel expenses for the current year so he may understand the proposed sum. Further discussion ensued. On the same page, Commissioner Oliver inquired why they have $1,590 for Books/Subscriptions, and further, inquired if those funds are to purchase the magazine subscriptions that can currently be found on their desk, which they rarely read. Commissioner Wilsen shared that when they attend conferences there are times that vendors will have books or audio for purchase, and this would be the line item it would be deducted from. Further discussion ensued. On the same page, Commissioner Oliver inquired about $41,000 in Community Promotions, and asked what type of promotions are those funds used for. Commissioner Wilsen shared that they sponsor events such as golf tournaments and those sponsorships would be deducted from that line item. Further discussion ensued. Commissioner Oliver shared that he would like to see a breakdown of that line item for the current year so he may understand the proposed sum. Commissioner Grogan shared that the proposed budget is provided to the City Commission early so that they can review it ahead of time which provides them the opportunity to meet with City staff before they come to their budget meetings. Commissioner Oliver inquired about the $10,000 in Telephone Expenses under the City Manager's Budget located on page 15, and if they covered landlines and cellphone expenses. City Manager Frank addressed the question and briefly explained the phone system. Commissioner Oliver inquired about the $4,000 for CRA Contribution under General Government Services located on page 28, and further, asked what those funds are being used for. City Manager Frank explained the CRA funding and the requirement for the County to match those funds. Commissioner Oliver further inquired about the Transfers Out and Transfers Out- Debt Services also located on the same page. Finance Director Roberts explained. Commissioner Oliver inquired about the $200,000 for The Hammocks subdivision under Streets Operations located on page 61, and further, asked if those funds were for street repairs. Commissioner Wilsen shared that is for resurfacing of the streets as the subdivision has not been resurfaced since it was originally built. Further discussion ensued. Commissioner Oliver inquired about the line item called POL supplies located on page 63. It was answered that this line item is for petroleum, oils, and lubricates. Commissioner Oliver inquired about the $115,000 allocated for Ocoee Founders' Day located on page 67, under the Recreation Budget. Mayor Johnson briefly shared that the City fronts the expenses; however, sponsorship donations are solicited to help cover to cost of this event. He briefly shared the several events that are held leading up to Ocoee Founders' Day that also bring in revenue to help cover expenses. Further discussion ensued. On the same page, Commissioner Oliver inquired about the $36,000 proposed for Programs. Acting Parks and Recreation 3 Ocoee City Commission Budget Workshop August 8, 2018 Director Johnson explained that those funds are allocated for the recreational programs/events they host throughout the year. Events would include Haunted House, Christmas events, and the Easter Egg Hunt. Commissioner Oliver inquired about the $3,500 allocated for Ocoee Founders' Day located on page 71, under the Parks Budget. Mayor Johnson shared it is for labor costs as staff is hired to assist with this function. Lengthy discussion ensued with regards to travel and educational training for the City Commission which is allowed pursuant to resolution. Discussion continued with regards to School Resource Officers which was a recent mandate by the State for all schools. Mayor Johnson reminded the City Commission that now is the time for them to discuss or advise staff what they would like to add or remove from the budget. They may not vote tonight; but by consensus, they can provide staff with any changes. He further commented that he would like for the millage rate to be lower than their current rate. In previous Commission Meetings, they discussed moving the MVP funds into the budget as well as hosting a Summer Program which Commissioner Oliver proposed. He reiterated that tonight's workshop is the time for these discussions. Mayor Johnson further addressed the concerns that Commissioner Oliver had with regards to travel, educational training, parks programs and Ocoee Founders' Day. Discussion ensued regarding the roll-back rate and lowering the millage rate. Commissioner Oliver asked if he could propose an amendment to the budget as he would like to add $20,000 for Youth Initiative Programs such as the Youth Summer Job Fair and the hiring of youth to work temporary summer positions within the City. He further explained the program he had previously presented to the City Commission. Human Resources Director Williford shared information with regards to the difficulty of conducting a background check on minors; under the age of 16 years, a background check cannot be completed. Lengthy discussion ensued on the Youth Summer Job Program with regards to background checks, insurance, funding, and work schedule requirements for minors. At the conclusion of the discussion, Mayor Johnson shared that 5.5 mills is what he would like proposed for the budget. City Manager Frank stated that staff can work on the budget to get to that number. Discussion ensued on whether they would need to have the Budget Workshop scheduled for Monday, August 13th. Consensus of the Commission was to cancel the August 13th Budget Workshop. IV.ADJOURNMENT - 7:56 PM APPROVED: 144.....zAttest: '• o�1 �ee jujit_ Melanie Sibbitt, City Clerk Rusty Jo r 4