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06/18/1999 CITY COMMISSION BUDGET WORK SESSION CITY OF CLEARWATER June 18, 1999 Present: Brian J. Aungst Mayor/Commissioner Ed Hooper Vice-Mayor/Commissioner J. B. Johnson Commissioner Robert Clark Commissioner Ed Hart Commissioner Also Present: Michael J. Roberto City Manager Richard L. Hedrick Deputy City Manage Bill Horne Assistant City Manager (arrived 11:04 a.m.) Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The Mayor called the budget work session to order at 9:11 a.m. at City Hall to review major issues regarding the FY 1999/00 Operating Budget and Programs. Opening Remarks Deputy City Manager Rick Hedrick said the review of finances and budgetary issues prepares for TRIM rates, which must be advertised on July 15, 1999. More work sessions will be scheduled. The City Manager is recommending $2 M in cuts to meet the recommended millage rate. Public hearings regarding the budget are scheduled. He suggested the Commission vote on the proposed fire fee and budget on September 7, 1999. General Introduction and Review of the FY 2000 Operating Budget Budget Director Tina Wilson presented an overview of the FY (fiscal year) 1999/00 operating budget and general fund. The budget document will be completed soon. General fund revenues for FY 99/00 are estimated at $77.4 M. New revenue sources are: 1) Occupational license fee collection; 2) Grant administration; 3) Meeting room rentals; and 4) Safe pool enclosure inspection fees. In response to a question, Mr. Hedrick said he will verify if electronic commerce businesses are required to obtain occupational licenses. The City Manager said grant administrators return approximately 15% of their salaries. In response to a question, he said except for the Harborview Center, the City does not charge for meeting rooms. As a huge demand exists for space, the City can gain revenue by serving the meeting needs of commercial entities. Quality of Life Administrator Arlita Hallam said meeting rooms will be free to government entities. Other libraries charge commercial rentals and are filled. The Clearwater Library has restricted nonprofit agencies to one free meeting a month. The City Manager said a charge may be levied for non-Clearwater government agencies. Concern was expressed regarding the City charging fees at recreation centers. In response to a question, Community Response Director Jeff Kronschnabl said the safe pool enclosure fee will encourage residents to install enclosures correctly and eliminate mbu06c99 1 06/18/99 safety issues. That charge could be added to permit fees. Clearwater top’s the municipality drowning statistics. The City Attorney said an ordinance will be presented for Commission approval. Lt. Kronschnabl said based on public input, staff has determined a need to accelerate enforcement of occupational licensing. The number of City inspectors has been reduced from 5 to 1. Three-fourths of the inspector’s time is spent monitoring licenses rather than acting proactively. Last year, the City renewed approximately 10,000 occupational licenses. Late fees were increased. Mr. Hedrick said the 2% increase in the revenue stream in the operating budget barely meets the City’s service needs and is basically flat. It was remarked utility taxes were decreased due to the mild winter. It was commented increased use of the Internet has decreased the number of long distance calls and affected tax revenues. Ms. Wilson said department directors were asked to break down departmental activities: 1) Mandatory; 2) Need to do; and 3) Nice to do. She reviewed revenues and expenditures, noting the debt on the police public safety complex and lease purchase of fire engines is low compared to other municipalities. New initiatives this year include: 1) Neighborhood program; 2) Jack Russell Stadium tax; 3) Harborview subsidy; 4) Imaging system for City Clerk Department; 5) Gateway maintenance; 6) Tidemark replacement; and 7) Traffic calming. Discussion ensued regarding the Harborview Center debt. It was suggested the City consider folding the Harborview Center into the general fund. In response to a question, City Clerk Cyndie Goudeau said the proposed imaging system is vital to classify and manage City documents. Another component, electronic work flow, relates to the agenda and other processes. Ms. Wilson said the City is considering eliminating: 1) Tourism office; 2) Clearwater Magazine; 3) Summer Youth Program; 4) Social service grants; 5) Jolley Trolley; and 6) Engineering Department presentation services for a total of $1.3 M in savings. It was suggested Clearwater Magazine be retained if costs can be recovered through paid advertisements. Concern was expressed regarding elimination of the Summer Youth Program. It was suggested private sector partnerships be found. It was suggested the City slowly decrease, rather than eliminate, the Jolley Trolley and Tourist Office. It was remarked that PSTA (Pinellas Suncoast Transit Authority) has expressed interest in expanding Jolley Trolley service along the entire beach, resulting in one loop along Clearwater beach. It was suggested others could pick up some eliminated programs. The City Manager said approximately $1 M in additional operational cuts are being considered. In response to questions, Harbormaster Bill Morris said the Clearwater marina has $300,000 in pending projects, and will receive $226,000 next year for existing projects. On non-revenue generating projects, the State provides 80% of the funds. Some partial payments are received as work is completed. The City Manager reviewed pans to reduce the general fund subsidy for the Clearwater Airpark and let it support itself. In response to a question, the City Manager said the Vision Fund is used for unexpected projects during the year. Ms. Wilson said a 6% increase in personal services in FY 1998/99 was due to police and fire salary adjustments. She said 58% of personal service costs are for police and fire salaries and related benefits. She reviewed reasons for the increased operating budget: 1) JRS Taxes; 2) Clearwater Aquarium; and 3) Holt Avenue. Debts increased due to: 1) Tidemark System; 2) New imaging system; and 3) Fire engines. Transfers to other funds mbu06c99 2 06/18/99 increased due to: 1) Traffic calming; 2) Harborview Center; 3) Facility maintenance; and 4) Fire capital needs. The general fund retained earnings are approximately 8.7% of the budget or $ 7 M. The FY 1999/00 operating budget is $80 M. In response to a question, Ms. Wilson said public safety areas were not asked for a zero-level budget, as were other departments. In response to a question, the City Manager said, as the budget has not been approved, 6 positions are funded for 6 months rather than an entire year. In reference to salary increases, he felt SAMP employees should not get what is “left over” after other employees receive raises. He said SAMP employees are the heart of the organization and should receive more consideration. Ms. Wilson said the $1,000,000 in salary adjustments in the general fund is a pool for all employees. Millage Options Mr. Hedrick said 70% of the budget is allocated to payroll. The revenue stream is basically flat. The budget cannot be balanced without eliminating programs and people. Salary increases and the cost of doing business exceeds revenues. The City has limited general fund dollars allocated to the CIP. The debt load is low. The City needs to grow the tax base or find additional revenue. If the millage is increased, the same issues will apply next year. The largest departments are Police and Fire. Community consensus is to support both departments. Unless additional revenue is found, these areas will be supported at the expense of other City services. Ms. Wilson said the City has added many programs while funding them with the current millage rate. The City can no longer fund all projects and probably should have increased the millage when those programs were initiated. The City Manager said safety, service, and operational considerations must be balanced. In response to a question, Ms. Wilson said although one millage option will fully fund the fire department next year, another increase will be necessary next year unless other programs/areas are cut. She recommended scheduling additional meetings. Suggested dates: September 14, 1999, at 6:00 p.m. for the first public hearing, and September 28, 1999, at 6:00 p.m. for the second public hearing. The City Manager said once set, the millage rate can be lowered, but cannot be raised. It was requested this item be continued to July 15, 1999. The meeting adjourned at 11:57 a.m. mbu06c99 3 06/18/99