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04/27/2007 CITY COUNCIL BUDGET WORK SESSION MINUTES CITY OF CLEARWATER April 27, 2007 Present: Frank Hibbard Mayor John Doran Vice-Mayor Carlen Petersen Councilmember George N. Cretekos Councilmember Paul Gibson Councilmember Also present: William B. Horne II City Manager Garry Brumback Assistant City Manager Rod Irwin Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia O. Sullivan Board Reporter The Mayor called the meeting to order at 8:30 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order . The Mayor stated that the legislature probably will meet in special session to complete its work on property tax reform. General Introduction The City Manager said none of the proposed reductions was discussed with Councilmembers before being presented to the public. Discussion of Budget Task Force Recommendations The City Manager introduced Budget Task Force recommendations. Consensus was to review recommendations not supported by staff. 1) The City Council consider a self- imposed cap on annual General Fund budgeted expenditures to the CPI (Consumer Price Index) plus 1%. Staff reported each budget year brings unique challenges and opportunities. The City Council normally provides direction to the City Manager as to changes they would like to see in the City’s budget and/or direction as to the millage rate they would like adopted. For FY (Fiscal Year) 2008, the City Council directed the City Manager to propose a budget that reflects savings reductions so that the rolled-back rate could be achieved. Staff Recommends: Although the City Council may strive to achieve a budget that reflects the CPI plus 1%, staff would not recommend that the Council formally adopt this in a policy statement. Budget Director Tina Wilson said every budget year is unique. Discussion ensued with recommendations that policies not hamstring future Councils and to retain flexibility to meet shocks to the system while striving for this objective. Budget Work Session 2007-04-27 1 3) The City control the cost of employee benefits by: a) Limit increases to 3% level of revenue increases (based on the Save Our Homes cap) Staff Recommends: Staff does not support this recommendation. This is not feasible in FY 2007/08 or 2008/09 for three of the City's four bargaining units, with whom the City currently has bargaining agreements through September 30, 2008 (Communications Workers of America) and September 30, 2009 (FOP Officers and Supervisors). These agreements provide for pay raises greater than 3%, and increases in other compensatory provisions, including healthcare. The Unions could refuse to "re-open" contracts to discuss wages, although they may be more inclined to do so if the alternative is impending layoffs. The City will open negotiations with the IAFF (International Association of Fire Fighters) within 60 days, and this subject could be broached. However, the City must consider the impact of placing limits on pay and range adjustments will have on its ability to recruit and retain, particularly in the area of public safety. Adjustments could be made to pay ranges that would maintain the City's competitive posture with respect to entry rates of pay in the labor market, while reducing merit increases and GWIs (General Wage Increases). However, this change may entail having to bargain away the FOP (Fraternal Order of Police) and IAFF "step" pay plans (a difficult proposition not likely to be accomplished except through impasse, unless mitigated by the threat of layoffs), and would lead to pay compression issues of the type the City is attempting to extricate itself from through the application of new pay provisions for FY 2007/08 in the current CWA bargaining agreement. Human Resources Director Joe Roseto said State law requires the City to negotiate conditions of employment with its unions. It was commented that Council needs to react to legislative mandates and unions need to work with the City. b) Freeze or cap the City’s contribution to health insurance and considering a co-pay program ; Staff Recommends: Staff does not support this recommendation. The City currently provides two HMO and two POS health plans for employees. The City currently pays 100% of the cost of the basic HMO for the employee, 75% of the premium of the basic HMO for employee plus one, and 68% of the premium of the cost of the basic HMO for employee plus family. The additional cost for the buy-up HMO and POS plans is bourn by the employee. The City budgeted $11.8 million for its portion of the premium for FY 2007. The City is contractually obligated to provide a health care plan that the City pays 100% of the premium cost for employee only coverage. Health care is a mandatory subject of bargaining. All of the employee groups have waived that right to participate in a benefit committee process, which reviews proposed health care plans and submits a recommendation to City management for approval by City Council. The City will explore alternatives in seeking renewal with the current health carrier (United Health Care) that will help the City control costs. This will include development of a new plan option to be funded by the City at 100%, as well as increasing the employee share of premiums or modifying benefit levels in order to maintain existing plan options. Should the City be unable to reach agreement with United, and depending on the perspective of the benefit committee, the City will be prepared to issue a health insurance RFP (Request for Proposals) for plan year 2008. Health care, along with the Pension, are extremely important benefits for City employees. Any cost increases will impact employee satisfaction. Budget Work Session 2007-04-27 2 Mr. Roseto said if unions did not waive this right, the City would have to negotiate health insurance benefits with each union. The next plan will have a zero increase in premium costs but increases to co-pays and prescription drug costs are expected. Finance Director Margie Simmons said first responder Workers Compensation increases cannot be calculated. Mr. Roseto said pooling health insurance coverage with an entity with a bad claims experience would be problematic. Ms. Simmons said the City is required to allow retirees into its health plan and meet a new accounting requirement to book a $2-million liability. e) Consider an employee buyout program for retirement eligible employees ; Staff Recommends: Staff supports this recommendation. Staff believes that City government benefits greatly from the presence of longtime employees. The benefit of this recommendation would have to be weighed against the loss of experience as well as the significant up front cost of the buyout since the amount provided must be enough to create an incentive for employees to take advantage of it. There could be a greater savings if employees offered this benefit were in classifications where FTEs were being reduced. AND f) Evaluate pension alternatives such as replacing the defined benefit plan with a defined contribution plan ; Staff Recommends: This recommendation requires more study and discussion between the City Council and administration before the City proceeds. Should the current plan be discontinued, the City would be required to negotiate the change with all bargaining units, pass the changes at referendum, and institute a transition plan that would be required for employees currently in the plan. In addition, impacts on the retention of employees with defined contribution plans, which is portable, verses the defined benefit would need to be analyzed and the impact quantified. Elimination of the defined benefit plan would require the City to reenter Social Security, with employees and the City each paying the required 6.2% of pay contribution (total of 12.4% of pay), a cost that the City and employees do not now incur. That cost, plus the cost of the defined contribution plan, would need to be weighed against the costs of the City's current plan. Mr. Roseto recommended the City Council discuss the Pension Plan separately. It was noted that buyouts are expensive initially, with long-term savings occurring in 10 to 20 years. Ms. Simmons said the earlier someone draws a pension, the more it costs the plan. It was requested that staff investigate providing incentives to persons close to retirement. 4) The City budget for 2008 utilize a minimum of $6 million from the available $15 million pension plan “set aside” credit to assist in the funding the Pension Plan contribution for that year. We further recommend that the $1.5 million no longer required to fund the “special” fireman’s pension fund also be used to fund a portion of the required 2008 pension contribution . When it became apparent that the City’s contribution to the Pension Plan could be expected to stay at the 20% of pay level, staff prepared a plan that would achieve that result while minimizing volatility, risk, and annual impact to the City. The plan involved slowly increasing the City’s contributions from the then 7% of pay to an amount that would maintain a level of reserves as a cushion against future volatility. The plan included contributing 10% of Budget Work Session 2007-04-27 3 pay in FY 2006, 13% of pay in FY 2007, 16% of pay in FY 2008, and 19% of pay in FY 2009. At the end of this period (FY 2009), the credit balance would have been reduced from approximately $25 million to $12 - $13 million, or the equivalent of 75% of one year’s required contribution. Staff feels that this is a minimum acceptable level and that 100% of one year’s required contribution is more appropriate. Staff feels that this could be dealt with each year as the actuary report is issued. Staff currently is waiting for the January 1, 2007 actuarial valuation, and based up the results, can alter the plan as financially prudent. The required contribution each year is determined by many variables, many of which the City has little or no control, such as investment returns, retirements, withdrawal rates, disabilities, mortality, etc. The Task Force recommendation to use $6 million from the credit balance would result in a credit balance of less than $10 million in FY 2008, and if a similar amount was used in FY 2009, a credit balance of approximately $4 million, or less that 25% of one year’s required contributions. Staff feels that this would not be financially prudent and would put the City at risk with regard to potential volatility and annual impact to the City. With regard to the $1.5 million in Firemen’s Pension Plan contributions, staff has received the January 1, 2007 actuary report that confirms that there is a $0 required contribution for FY 2008. This $1.5 million expense has been removed from the proposed budget, which has the same bottom line impact to the budget as using it to fund a portion of the City required contribution. Staff Recommendations: 1) Fund FY 2008 City pension plan contribution at 16% of pay, using approximately $3.2 million of credit balance (pending receipt of actuary report) and 2) Remove the $1.5 million Firemen’s Pension contribution from the budget, which has the same impact as using it to fund part of the City’s pension contribution. Ms. Simmons said the market’s decline affected the Plan’s return on investment. The State requires the City to provide a minimum annual contribution of 7%. Staff is prudently lowering the credit balance since the contribution requirement increased above 7%. 7) Take home vehicles be limited to Pinellas County for all staff and that City vehicles are tools that allow employees to do their tasks and should not be used as employee perks . Staff Recommendation: City Management is in the process of reviewing all take home vehicles. The Police Chief has proposed that the City consider a more efficient 20-mile radius solution. City management supports this alternative. Police Chief Sid Klein said officers who live in the City are provided take-home cars, which are needed for quick response. He said the 20-mile radius solution parallels limits established by other agencies. Officers are on the clock from the time they are called. It would be inefficient for officers to drive to headquarters before reporting to a crime scene or face parking constraints associated with a personal vehicle. 11) It appears that the ratio of Fire Chiefs to the number of firefighters is inconsistent with surrounding municipalities to the degree that it merits an in-depth review by management. Consistent with this review an examination of the management to staff ratios in all major departments should be conducted. Staff Recommendation: Staff does not agree with the recommendation concerning the Fire Chiefs ratio. The information staff supplied to the Budget Task Force did not indicate any Budget Work Session 2007-04-27 4 inconsistency. There is no data to support this recommendation. In fact, City documentation indicates the opposite. This City did pay for a professional consultant study that included this type of review. Staff has used the MGT study as a guiding principle since it was published over three years ago. In a detailed study of the department, concluded in March 2004, the following was determined regarding CFDs ratio of chief officers: 1) department currently has insufficient number of senior Chief Officers to provide adequate senior management for “on call” availability on a 24/7/365 basis; 2) organization did not provide sufficient senior management to adequately focus on certain department functions; 3) organization did not provide management presence on a 24/7/365 basis; and 4) Command officers at emergency incidents were burdened with too many detail functions. These issues were addressed in the department reorganization implemented in September 2004. Since he arrived, the Fire Chief’s commitment to the City Manager has been to hold in place the FTE level for senior staff. There has not been a single FTE added to the Chief’s staff. Staff has changed designations and duties, but there have been no additions. There was a conversion for District Chiefs to Assistant Chiefs on shift, but the numbers remained the same. MGT study recommendations were based on current FTE numbers. Fire Chief Jamie Geer said while the number of firefighters increased by 10%, the number of fire chiefs did not change. Data provided the Task Force reflect department staffing levels are consistent with nearby cities. It was stated that the Task Force had insufficient time for an in-depth review. 14) The City Fire Department institute a firefighter volunteer service program in selected fire stations to evaluate the potential effectiveness of the program and the station that successfully implements this program and has demonstrated one full-time firefighter position completely staffed by the volunteer program be allowed to add one paid firefighter FTE to the station when additional personnel are needed . Staff Recommendation: Staff does not understand how the proposal adds an "FTE when additional personnel are needed" or "one full-time firefighter position completely staffed by the volunteer." Staff can calculate costs associated with bringing a volunteer into service, turnout gear, physical, testing, inoculations, Workers Compensation insurance, certifications, State retirement, and training. Staff can provide a cost associated with a layoff of a firefighter. Concern was expressed that this recommendation could compromise public safety. Fire Chief Geer said staff could explore supporting roles for volunteers. Review of Updated Five-Year Forecast The Five-Year Forecast was designed as a management tool to provide an enhanced level of financial planning for the City’s General Fund. Financial planning expands a government’s awareness of options, potential problems, and opportunities. The long-term revenue, expenditure, and service implications of continuing or ending existing programs or adding new programs, services, and debt can be identified. The financial planning process helps shape decisions and allows necessary and corrective action to be taken before problems become more severe. A financial plan is not a forecast of what is certain to happen, but rather a device to Budget Work Session 2007-04-27 5 highlight significant issues or problems that must be addressed if goals are to be achieved. The City of Clearwater’s General Fund projections are based upon current projected levels of service and staffing in the FY 2006/07 adopted budget, other than where noted. General Fund The General Fund is the general operating fund of the City. This fund was established to account for revenues and expenditures involved in operating general functions of a non- proprietary nature. Major revenue sources include property and other taxes, franchise and utility fees, licenses and permits, fees for services, and charges to enterprise operations for administrative or specific services. The major operating activities supported by the General Fund include most traditional tax-supported municipal services such as police and fire services, transportation, economic development, parks and recreation, libraries, administrative offices, planning services, and public works operations. Growth and Inflation The rate of inflation is projected at 3.5% in FY 2007/08. This is based upon current trends on the average CPI for All Urban Consumers provided by the Bureau of Labor Statistics. The forecasted inflation for FY 2008 - 2012 also is projected at an annual rate of 3.5%. Revenue Projections Projection of revenues and other resources is critical in order to understand the level of funding available for services and capital acquisitions. Projections for future budget periods help determine the likelihood that services can be sustained and highlight future financial issues to be addressed. Preparing revenue projections also enhances a government's understanding of revenue sensitivity to changes in assumptions and to controllable factors such as changes to tax rates or fees. Revenue forecasts for the City are based upon known factors and trend analysis, reviewing the previous five-year history of actual receipts. Property Tax Revenue Property tax revenues are the largest source of revenue for the General Fund, representing 41% of the total anticipated General Fund revenues in the 2006/07 annual budget. The City is basically “built out.” Therefore, the City will not see much increase in taxable values from major new residential development. Still, the results of economic development and redevelopment within the community in the last several years is readily apparent in growing taxable values, with increases of almost 9.6%, 11.7%, 15.5%, and 23.3% respectively, in each of the last four fiscal years. As a means to review the impact of “rolling back the millage” next year, tax revenues are forecasted to remain flat for FY 2007/08. An additional $500,000 of property tax revenues has been included based upon anticipated $100 million of new values on the tax role in the new fiscal year. Estimated receipts for years after 2007/08 are reflected at a conservative increase of 3% annually. For the purposes of this exercise, the City’s taxable values reflect a 3% increase in values each year over the five-year period, and the taxable value for the purpose of computing the estimated millage rates in future years has been frozen at the 2006/07 values of $10.6 billion. Budget Work Session 2007-04-27 6 Communications Services and Sales Tax The anticipated revenue from the Communication Services tax was budgeted at almost $6.6 million of the total $121.9 million budget, or 5% of General Fund revenues in FY 2006/07. Receipts for the current year are slightly stronger than budgeted. For FY 2008, budgeted receipts are estimated at approximately $7.1 million, with a growth factor of about 1% thereafter based upon the five-year historical trend. The growth in sales tax revenues remains fairly flat at about 1% per year on average. Sales tax revenue projections for the current year most likely will need to be adjusted downward. For FY 2008 and thereafter, tax projections reflect a growth factor of 1% based upon revised projections in FY 2007/08 and annually thereafter. Utility & Franchise Fees Franchise fees in the City of Clearwater are levied on companies in exchange for the right to operate franchises for the purpose of maintaining and operating an electrical or gas distribution system in the City. Utility taxes are fees levied on the purchase of electrical, gas, water, oil, or propane within the City. Overall, receipts from utility and franchise fees from Progress Energy represent the majority of this revenue category. Although increasing steadily, franchise fee revenues are growing at a stronger pace than utility tax revenues. Franchise fee revenues are anticipated to grow at approximately 4% per year and utility tax revenues at approximately 2% per year, based upon revised estimates for the current year and historical receipts for the past five years. Other Revenue Sources The three revenue sources detailed above account for over 69% of the total General Fund revenues. All other revenue sources are forecasted individually on a line item basis based upon historical revenue trends. Expenditure Projections Assumptions for expenditure projections should be consistent with related revenue and program performance assumptions. A review of expenditure projections for individual programs, particularly those with significant unexpected increases or decreases, is critical. The expenditure projections are presented for each Department, and projections assume all current programs continue into future fiscal years. Salary and Benefits Salary and benefit costs approximate 67.5% of all General Fund expenditures, at $82.1 million. Salary projections are forecasted for budget approved FY 2006/07 full-time equivalent positions only. Funding for union employees are projected within the limits of current union contracts and similar increases thereafter. Funding for SAMP (Supervisory, Administrative, Managerial, and Professional) employees allows for a 4% merit increase. The attrition rate, or salary savings, is assumed to be 1% for all five years. Medical insurance costs for all employees are approximately $7.7 million of the City’s total General Fund expenditures in the approved 2006/07 General Fund operating budget. Medical insurance is projected to increase Budget Work Session 2007-04-27 7 0% in FY 2007/08 and 6% in each of the years thereafter. The forecast for FY 2007/08 reflects City pension costs to increase from 13% of covered payroll to 16%, which continues the plan to reach 20% of covered payroll by 2010 as recommended by the City’s actuary. A positive note regarding the funding of the Old Fire Pension is evident in the Fire Department forecasted budget for FY 2007/08. Full funding of the Old Fire Pension plan is expected by the end of FY 2006/07. This forecast reflects a savings of approximately $1.5 million starting in 2007/08 in the Fire Department operating budget. This forecast assumes that these savings will not be diverted to other programs, and will be reflected as a reduction in General Fund expenditures starting in FY 2007/08. Operating Expenditures Operating expenditures include numerous costs, including basic operating supplies, travel, training, etc. These costs, as a whole, represent approximately 16% of the total General Fund expenditures. Significant expenditures in the operating category include utility costs for public facilities such as City Hall, the Municipal Services Building, libraries, recreational facilities, and contributions to agencies discussed below. Property and liability insurance coverage for FY 2008 is estimated at $4.2 million. For the most part, these expenditures are forecasted to increase in line with the CPI, which is estimated at 3.5% in FY 2007/08 and each of the years thereafter. Contributions to Other Agencies Contributions to Other Agencies in the General Fund remain as currently budgeted to include such contributions as the annual contribution to Ruth Eckerd Hall of $477,620 and the contribution to the African American Leadership Council program in the amount of $100,000. Internal Service Costs This category of expenditures reflects the reimbursement to City Internal Service Funds for services. Again, a major portion of this category of expenditures is directly tied to Salary and Benefit increases. Internal Service Costs are projected to increase at the rate of 3.5% annually in each of the next five years. Operating Capital The operating capital category recognizes those capital purchases that are less than $25,000 and not accounted for in the Capital Improvement Fund. These costs represent an insignificant portion of the General Fund total expenditures at $136,200 annually. These costs are forecasted to increase at the same rate as operating expenditures, 3.5% annually in each of the next five years. Debt Service Costs Debt service costs are projected taking into account all lease purchase contracts anticipated to be outstanding at the end of FY 2006/07 and reflect the impact of current outstanding public service tax bond commitments. Debt service costs are forecasted to remain relatively stable throughout the five-year period, and include $1 million of annual debt service for the Beach Walk project in each of the forecasted years. Budget Work Session 2007-04-27 8 Transfers to the Capital Improvement Fund Transfers to the Capital Improvement Fund are forecasted as proposed in the current six-year Council adopted Capital Improvement Plan. Forecast Summary Analysis In summary, the impact of maintaining the current level of ad-valorem taxes, along with the projection of other given current revenues and current service expenditures produces a deficit of approximately $3.1 million in FY 2007/08. The projected increase in the new fiscal year is due primarily to routine forecasted salary increases for current employees and cost index increases for other supplies and services. Based upon these early projections, it appears that service cuts of this amount would be necessary to allow no increase in property tax revenue, assuming revenues meet expectations, and expenditures are in line with forecasted projections. This forecast does not factor in the impacts of any new programs and/or the impact of unknown or extraordinary issues during the forecast period. Ms. Wilson said the five-year forecast is a planning tool. Concern was expressed that projected revenues and expenditures do not reflect possible decreases to property values. Ms. Wilson could not project the impacts of State legislation. She estimated one-third of the City’s taxable value is homesteaded. Discussion ensued with comments that while residents want additional services, the budget must be trimmed and citizens need to understand the ramifications of imposed spending constraints. Discussion of City Manager’s Proposals for Budget Reductions The City Manager said positions and programs recommended for reduction will not be resurrected. Steve Sarnoff, CWA president, said proposed legislation would reduce local control and have devastating effects. John Lee, IAFF president, said critical and essential services should be a priority. He disagreed with Budget Task Force recommendations regarding a Volunteer Firefighter Service. Jonathan Walser, representing the FOP, said quality and safety of life should remain a priority. Ms. Wilson said not all proposed reductions are in the General Fund and not all listed positions are vacant. Development Services Development & Neighborhood Services Director Jeff Kronschnabl said the Administrative Support Manager position is vacant with those responsibilities reassigned. Eliminating the Neighborhood Services Manager and Specialist will negatively impact neighborhood improvement efforts. Budget Work Session 2007-04-27 9 Economic Development Mr. Brumback said proposed reductions would reduce professional services, delaying some studies and analysis and the level of City participation with TBP (Tampa Bay Partnership). Equity Services Equity Services Director Eleanor Breland said proposed reductions do not affect staff levels but reduce training, materials, and Diversity Council activities. Ms. Wilson estimated Travel and Training is between 15% and 20% of the department’s budget. Fire Department Fire Chief Geer said Squad 49 supports EMS and fire suppression activities. Some activities and equipment could be transferred to a truck company. The County covers 13% of squad costs. When unavailable, mutual aid responds. Elimination of the squad would increase risk and delays. The squad is unique due to its equipment and personnel training. The two fire inspector positions are filled. Mr. Brumback said when approved, it was expected that fees would cover position costs. That did not occur. Fire Chief Geer said loss of these positions would affect the ability to complete the inspections sweep within 24 months. Routine inspections would need to be supplemented. It was suggested that volunteers could assist with the sweep. Fire Chief Geer said no FTE positions would be cut if the SWAT team is eliminated. Reductions relate to training. Eliminating the Police Department’s Arson Investigator would require dependence on State investigators. Elimination of the Public Education Specialist would end educational activities. The Public Information Officer will be consolidated in Public Communications. Finance Ms Simmons said the department’s contingency for the external audit contract was cut. By eliminating the Accounting Clerk position, which is vacant, and Senior Accountant, the department will reduce thorough reviews. The Senior Accountant position is partially vacant, with a staff member working part-time. Mr. Brumback said the administration froze hiring and is working to reassign staff in positions identified for possible elimination. Non-Departmental Ms. Simmons said the City received grants and payments that will reduce the bond amount. Savings total $370,000. She recommended issuing the bonds for 20 years. Human Resources Mr. Roseto reported the Systems Analyst position was eliminated and responsibilities distributed among staff. The Human Resources Assistant Director position was downgraded. Library Budget Work Session 2007-04-27 10 Library Director Barbara Pickell said cuts were spread across the system. Moving the Beach library to the recreation center would save $100,000. Due to FEMA (Federal Emergency Management Association) rules, the facility could not be enlarged by much. Cuts would close the East and Countryside libraries two evenings per week. Mr. Brumback said if the Beach Recreation Center is closed, economies of scale evaporate and the Beach library would close. Office of Management & Budget Budget Director Tina Wilson said the department’s accounting position is vacant. The department has an intern, needed during the busiest months, and two senior accountants. She did not know if this level of staffing would be sufficient in the future. Official Records & Legislative Services City Clerk Cyndie Goudeau said the Grant Writer position has been vacant for some time. While the position can pay for itself, it is not required. It was felt the position should not be cut if it generates income. Mr. Brumback said operational expertise would be lost if grant writing efforts are consolidated. Ms. Goudeau said the lobbyist funding cut would eliminate the ability to hire a standby lobbyist should the City’s primary lobbyist have a conflict of interest. Planning Department Planning Director Michael Delk said cutting a part-time Staff Assistant would affect the CDB (Community Development Board) process. It was noted that staffing increased when the department was deluged with applications. Mr. Delk said current emphasis is on long-range planning issues and State mandated comprehensive plan changes. Code changes are ongoing. Professional services reductions affect outside consultants who assist staff. Police Department Police Chief Sid Klein said the Senior Staff Assistant position is vacant and its duties solved with technology. The person filling the Staff Assistant position could be reassigned. The Public Information Officer position is critical to the department. He recommended consolidating the position with the Fire Department if change is imminent. He suggested making a one-time donation to CHIP (Clearwater Homeless Intervention Project) from forfeiture funds. It was recommended that the School Board be requested to fund SRO (Student Resource Officers) positions or fill them with certified police officers. Police Chief Klein said the Sheriff intends to remove deputies from middle schools. It was requested that the Police Chief talk with the City of St. Petersburg about taking over City forensics. Engineering City Engineer Mike Quillen said the Public Works Administrator position is vacant. It is hard to retain a survey crew. When the positions were approved, staff thought money would be saved. When the positions are eliminated, not all survey needs will need to be contracted. Mr. Brumback said the City is working with Progress Energy to meet industry lighting standards. While small areas with insufficient light will be addressed, an overall savings by reducing lighting in over lit areas is anticipated. Staff will complete installation of LED lights within a year. Contracting the work would increase costs. Budget Work Session 2007-04-27 11 Public Services Public Services Director Gary Johnson said the three positions identified for elimination, are filled. Public Services and Public Utilities are working to share training costs. Contracting tree trimming services would cost more than in-house efforts due to a significant number of trees. Mr. Brumback said contractors would not agree to be first responders following a storm, which is essential for clearing roads. Public Communications Public Communications Director Doug Matthews said cuts are contingent on other decisions. Staff is considering alternatives to publishing C-News in the St. Petersburg Times. The City pays $5,000 to advertise the Farmers Market. Staff will report if the Farmers Market is advertised with other funds. Staff is reviewing City publication costs and considering better ways to get information out to the public. Health Insurance Ms. Simmons said rates are unknown when Health Insurance costs are budgeted. Due to the Premium Stabilization Fund, the $6,400 per person rate can be maintained. Ms. Wilson recommended that the City budget $6,400 per person even if rates decrease. The remainder of items will be discussed on April 30, 2007. Adjourn The meeting adjourned at 12:53 p.m. Budget Work Session 2007-04-27 12