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07/02/2002 CITY COMMISSION BUDGET WORKSESSION CITY OF CLEARWATER July 2, 2002 Present: Brian J. Aungst Mayor/Commissioner Whitney Gray Vice-Mayor/Commissioner Hoyt P. Hamilton Commissioner William C. Jonson Commissioner Frank Hibbard Commissioner Also present: William B. Horne II City Manager Garry Brumback Assistant City Manager Ralph Stone Assistant City Manager Cyndie Goudeau City Clerk Brenda Moses Board Reporter The meeting was called to order at 8:20 a.m. at City Hall. ITEM #1 – General Introduction – Bill Horne, City Manager The City Manager said the budget focuses on current and future goals. ITEM #2 – General Overview of City of Clearwater’s Preliminary Fiscal Year 2002/03 Annual Operating Budget and Capital Improvement Budget Budget Director Tina Wilson reviewed: 1) all funds; 2) general fund; 3) general fund financial impacts; 4) expenditures; 5) personnel costs; 6) revenues; 7) millage history; and 8) other categories. The budget assumes a 4.5% millage increase to 5.573 mills. The proposed budget is $93.2 million. While 10.2 new general fund positions are proposed, 1.5 are eliminated for a total of 8.7 new positions. Clearwater is in a healthy growth period. Retained earnings are well within the 8% required level. Ms. Wilson reviewed the Enterprise funds and CIP (Capital Improvement Projects). No changes are proposed. The emphasis remains Improving and maintaining infrastructure. Assistant City Manager Garry Brumback said the City has sufficient grant funds to construct the beach west bridge connector. Construction of the northwest fire station is in next year’s budget. Ms. Wilson will provide information regarding a $1 million decrease in Florida Power revenue. The 41% decrease in capital categories is for items less than $25,000. It is possible the second year of the computer lease program would offset the decrease. Small capital expenses fluctuate annually based on City needs. Ms. Wilson said approximately one-fourth of the property tax increase was due to new construction since 1994. It was stated that property values have been affected by inflation. Finance Director Margie Simmons said staff is working with insurers on health coverage. Estimates will not be available until September. Due to low interest rates, the City has been issuing bonds to generate revenue. ITEM #3 – North Greenwood Recreational and Aquatics Center mbu0702 1 7/2/02 Parks & Recreation Director Kevin Dunbar said staff has used Strategies for Success to maximize resources. Facilities will be designed for revenue potential and no impact to the General Fund. Of 10.9 FTEs necessary to operate the new North Greenwood Recreational Center, only 2.3 will be new hires. Staff is considering a third party to operate Wood Valley. Staff is developing a business plan for the new Ross Norton facility. There are no plans for the Holt Avenue complex. The Coca-Cola contract was part of the City’s contract with Public Enterprise Group. Minor repairs to Jack Russell Stadium are planned to satisfy liability insurance requirements. Staff will bring this item forward as additional details become available. ITEM #4 – Reorganization of Solid Waste/Recycling and General Services Solid Waste Director Bob Brumback said a functional analysis indicates the Solid Waste/Recycling and General Services departments are in good shape. Department consolidation would result in cost savings. He recommended consolidating facilities’ maintenance to reduce costs and improve long-term projections. ITEM #5 – Discussion of the Implementation of a Budget Advisory Committee Ms. Wilson reviewed problems associated with previous budget advisory committees. In response to a suggestion that a short-term budget advisory committee be appointed, concern was expressed that there is insufficient time. It was recommended that members of a budget advisory committee have vast experiences in budget or financial fields and be willing to spend sufficient time to understand each department’s functions. It was stated facilitating a committee would further burden staff at budget time. It was stated that few citizens attended past budget workshops. Consensus was to schedule a public workshop on the budget after August 7, 2002. ITEM #6 – Open for Questions It was requested that staff submit a budget without millage increases, to include a cost benefit analysis identifying the top five or ten items/projects that would be cut. This list would help the public identify services and facilities they can live without. It was stated to retain services at current levels, citizens may not want to sacrifice. It was requested that restructuring the Commission’s travel budget be agendaed for discussion. Mr. Dunbar said the PACT (Performing Arts Center & Theater) 3% COLA (Cost of Living Adjustment) was part of a contractual obligation that the Commission approved last year. The City contributed $36,000. The remainder of Ruth Eckerd funds comes from fees and fund-raising efforts. The City Manager said the COLA could be changed. It was felt that Clearwater lacks sufficient Fine Arts. Discussion ensued regarding the Pinellas County Sheriff contract for forensic processing. Deputy Police Chief Bill Baird said performing the service in-house would not be cost effective. The charge is comparable to what other cities pay for similar services. Concern was expressed that the Sheriff’s office may be passing on its costs to County municipalities. Staff will review the rates to ensure they are fair. The City Manager said the Sheriff’s Department receives approximately 80% of the MSTU (Municipal Services Taxing Units). mbu0702 2 7/2/02 Concern was expressed that Clearwater’s Police Department is more expensive per capita than the City of St. Petersburg’s department. Mr. Baird said the City needs to fill positions held open for salary savings: four sworn officers and eight or nine non- sworn officers. Discussion ensued regarding a recent citizen survey on neighborhood issues that indicated concerns regarding flooding, code enforcement, and street repair. Public Works Administrator Mahshid Arasteh said an infrastructure report is being prepared. The City uses its resources efficiently. Capacity has not increased. Engineering Director Mike Quillen said the City is maintaining its goals. One new position will facilitate annexations. Another new position will save money by performing root pruning. Savings will be spent on roads. Ms. Wilson said there are no changes to the Penny for Pinellas prioritization list. Requests were made: 1) Police Department present potential cuts if millage increase not approved; 2) Assistant City Manager Ralph Stone to recommend how to move forward with infrastructure improvements without adversely impacting City finances; and 3) staff to provide update regarding traffic calming. ITEM #7 – Set Additional Commission Workshops and Adjourn Budget meetings scheduled for July 2, July 18, September 5, and September 19, 2002. The meeting adjourned at 11:28 a.m. mbu0702 3 7/2/02