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05/22/1978 (a a CITY COMMISSION BUDGET WORK SESSION May 22, 1978 The City Commission of the City of Clearwater met in a budget work session at the City Hall, Monday, May 22, 1978, at 9:30 a.m., with the following members present: Charles F. Lecher Karleen F. DeDlaker Karen Martin William Nunamaker Richard E. Tenney Also present were: Anthony Shoemaker Thomas A. Bustin Mayor/Commissioner Vice-Mayor/Commissioner Commissioner Commissioner Commissioner 'City Manager City Attorney The Mayor called the meeting to order for a midyear re- view of the budget. The Assistant City Manager of Budget and Programming, Jeffrey Butler, was asked to review the manage- ment letter from Peat, Marwick, Mitchell & Co., dated April 13, 1978, which was submitted by the auditors after they had examined the financial statements of the City for the year ended September 30, 1977. Mr. Butler stated the management letter consists of a series of recommendations made by the auditors after the study and evaluation of the City system of internal accounting con- trol. The objective of internal accounting control is to pro- vide a reasonable assurance as to the safeguarding of assets against loss from unauthorized use or disposition and the re- liability of financial records for preparing financial state- ments and maintaining accountability for assets. Florida statutes require all municipalities to have an external audit and require the certified public accountants who do the audit to present a management letter with their recommendations and a response from the chief administrative officer of the municipality to the state auditor. Mr. Butler discussed some of the recommendations in the letter, including segregation of duties of the purchasing and warehouse operations, postcards for utility billings, contribu- tions to the Garage and Central Services Funds, overfunding in the City's reserve accounts, and the Firemen's Pension Fund. Commissioner Martin requested a memo giving a specific time frame for a solution to those problems under study. Discussion ensued on the need for an actuarial study of the Firemen's Pension Fund. In response to questions on the recent refunding issue of water and sewer bonds, there is $230,000 in the reserve account. The audit letter identified a material weakness in internal accounting control in the purchasing function and the auditing procedures have been adjusted to compensate. 1. .i ???{1LFc x; ?5?..,?r?:,i',",' r}`9?,-lif,^?.. .?.µyr?1.Sti" (r.'{:...?•?. •:• ?,?tr ", ..' rar t.,.q Y, ?._ J,•:e FJ??4?a.YT.i?CF:.°, o-', ".,+:. ?`•:, ;:.;?, 1 rv?* " y,:., ?r_ T,7? ..n,. R .•}' t. :'t : ,t?," ?. ire}. r''=F'.. ?.t ?< r K? 4 -?5i3ip 5/22/78 0 @ There is also a $60,000 reserve balance in the Parking Fund. Commission questioned the method of collection of park- ing meter funds. The siphoning of funds is a serious possi- bility and the revenue charts of the various parking lots are" checked periodically. Prompt deposit of funds from various recreation areas of the City (such as the golf courseY was discussed. The next item to be discussed was the Midyear Operating and Capital Improvement Budgets. When the Operating Budget is established, specific pro- jections are made for revenues and expenditures and these pro- jections need to be amended from time to time due to changes in City Commission policy or an unexpected need in an operating department. The midyear budget review aids in establishing a better system of control. The Assistant City Manager gave a general overview of the General Fund, stating it is the major fund of the City and finances the governmental activities which are not covered by revenues (such as fire and police protection, etc.). Two major revenue items are recommended: (1) A transfer of $152,000 from Federal Revenue Sharing funds to cover cost of salary adjustments; and (2) Transfer of $201,000 from the Utility Fund to the General Fund. The savings from bond refundings on the Utility Tax Certif- icates amounts to $174,808 and the recommendation is to commit these funds to the first phase of the Main Library project. The savings on the Bridge Bonds Refunding is $298,000. It is recommended $53,000 cover possible 1977/78 revenue shortage from the bridge token system, $76,000 be used to reduce the General Fund subsidy, and $169,000 be reserved for use in fiscal year 1978/79. Commission discussed disposition of the above savings. in conclusion, Mr. Butler stated they anticipate the General Fund will have a $680,000 revenue surplus and recom- mended the funds be used for Capital Improvement Projects. These projects are approved by the Commission when the ordinance is passed and the Commission is apprised of amendments made to the projects as they occur. Commissioner Martin questioned the charge to the Commis- sion's budget for the recodification of the Code. There are two CETA programs for which the City receives funds, Title 11 and Title VI. Title II relates to the filling of positions on a continual basis and Title VI relates to pro- jects. Gerald Weimer, Assistant City Manager, reported on a recent meeting of the Consortium on CETA personnel, that both programs will be funded again starting October 1, 1978. He reported 26% of the CETA personnel have been made permanent City employees. Commission questioned a new vehicle and new office furni- ture for the Community Relations Department. A request for a beach cleaning machine in the amount of $15,000 was justified by Ream Wilson, He also reported the Pro Shop at McMullen Tennis Complex carries a number of small items as a convenience to the citizens. 2. 5/22/78 ?? # s?r?r / fi w't'+?i;`•fps•"3}??P.:'TSt?'*#?'l'ir•,.•?, s?.,4 -; J'LS :??..! st••ttUi=,}:? !4 ,.'r •?.??`(1.???+,?n??c??ir? '? ?:4a`if.?y4@°•#'t.:Y',,,.4cy#?ytri ;;?i?.?.5 St: }?. .??f, fsv ' `F? 'Q"GY?L :??,?".,•.a;r??+?','Jirl+: ?, }, ???,. .1h4?.r . General Comments The City Manager reported a dog control program had been proposed by the Police Chief with approximate costs of $10,187 capital acquisition and $14,651 for operating and personnel costs for a complete year. The City Manager recommends a sup- plemental program in conjunction with the County Dog Control program. Discussion ensued and the City Manager was asked to establish such a dog control program in the next budget, Intragovernmental Funds Revenues - Garage Service Charges Two departments have increased by $135,000 because of in- creased purchases and upgrading of replacement equipment. Discussion ensued o.i expansion of the garage facility and the possibility of a new site. Estimated costs of construction were requested and that this item be discussed prior to the next budget process. Capital Improvement Funds The Midyear Review recommends the appropriation of the estimated surplus funds to two old projects (street resurfacing and storm drainage) and five new projects (Missouri Avenue right-of-way, Police Communication Air Conditioner, Fire Stations, Park Improvements and the Main Library) for a total of $764,932. Part of the Park Improvements would be reconstruction of the Downtown tennis courts at a cost of $50,000. Mr. Butler reported the next step would be to formally adopt ordinances amending the Operating and Capital Improvement Budgets. Based on this report, the $460,000 for the Library Renova- tion would come from Utility Tax Bond savings in the amount of $173,000; Reimbursement of Intragovernmental Services Funds, $217,000; and the Reduction of Subsidy to the Bridge in the amount of $76,000. These funds could be transferred and ear- marked in a reserve account until the Commission makes a decision, Capital Improvement Funds Amendments Commission questioned the need for a City Seal on Fire Station #7 at a cost of $1,090. Commission suggested a new air conditioning system might be better than a renovation project for the Police Communica- tions Center. The City Manager suggested goals and priorities be dis- cussed after the next work session on Tuesday, May 30, 1978, The City Manager reported an analysis of sewer and water fees is under study and will be forthcoming. The meeting adjourned at 11:50 a.m. 3. •i 3 .eMr?e ?.w;?w: r f."p,. 1' 'i `SI?._: ?.e'•' ': ?1?` .?,.i 4'?. `?: 5/22/78