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12/04/2006 BUDGET TASK FORCE MEETING MINUTES CITY OF CLEARWATER December 4, 2006 Present: Martin L. Altner Board Member Joseph W. Evich Board Member – departed 6:55 p.m. Isay M. Gulley Board Member R. Nathan Hightower Board Member Robert L. Longenecker Board Member Joyce E. Martin Board Member Herbert W. McLachlan Board Member Charles J. Rutz Board Member Jesse Sherman Board Member James E. Strickland Board Member Douglas J. Williams Board Member– departed 7:05 p.m. Also Present Tina Wilson Budget Director Margie Simmons Finance Director Patricia O. Sullivan Board Reporter The meeting was called to order at 6:05 p.m. at the Main Library. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 3. Schedule of Meetings Consensus was to schedule Budget Task Force meetings: Monday, December 11, Monday, December 18, and Tuesday, December 26, 2006, Tuesday, January 2, Monday, January 8, Tuesday, January 16, Monday, January 22, Monday, January 29, Monday, February 5, Monday, February 12, Tuesday, February 20, and Monday, February 26, 2007. All meetings will be held in the second floor conference room at the Main Library. 4. Sunshine & Public Records Law Provisions The City Attorney reviewed Florida Statutes related to public records and the Sunshine Law. Meetings will be advertised as required. Budget Director Tina Wilson said staff will share all received information with all task force members. 5. Adopt Rules of Procedure The City Manager requested that members keep in mind previous task force member complaints regarding maintaining civility and not dominating conversations. City Clerk Cyndie Goudeau reviewed a draft of procedures presented for guidance. The draft includes the task force’s mission, scope and objectives, as defined by the City Council. Ms. Wilson said the City Council had directed the task force to focus its work on the General Fund. Task Force – Budget 2006-12-04 1 Discussion ensued regarding the Chair’s role. Member Hightower moved that the task force’s adopted form of rules includes language allowing the Chair to make motions. There was no second. Member Hightower withdrew his motion. motion Member Altner moved that the Chair not be permitted to make motions. The was duly seconded. In response to a question, Ms. Goudeau said the motion would prohibit the Chair from stepping down to make motions. Upon the vote being taken, Members Altner, Evich, Gulley, Longenecker, Martin, McLachlan, and Strickland voted “Aye”; Members Hightower, Rutz, Sherman, and Williams carried voted “Nay.” Motion . Member Evich moved to adopt the Rules of Procedures as presented, discussed, and motion amended today. The was duly seconded. In response to a suggestion, Ms. Goudeau said Robert’s Rules would not apply that much to this type of a board. Discussion ensued regarding a quorum. Consensus was to cancel meetings when a quorum of at least seven members is not present. carried Upon the vote being taken, the motion unanimously. 6. Elect Chair and Vice Chair motion Member Williams moved to appoint Member Hightower as Chair. The was duly carried seconded and unanimously. motion Member Altner moved to appoint Member McLachlan as Vice Chair. The was carried duly seconded and unanimously. 7. Proposed Process Ms. Wilson reviewed the proposed process for meetings: 1) Approval of the minutes; 2) Task force member questions regarding issues addressed at the previous meeting; 3) Staff presentation; 4) Discussion and action; and 5) Homework assignments. When possible, staff will report on member questions posed at the previous meeting. Discussion ensued regarding the draft report with a suggestion that staff track recommendations from each meeting, and accumulate them for the final draft. It was felt that this decision should be delayed as the task force may want to work individually on components for the final report. The City Manager said while the City Council encourages consensus, written dissenting views could be included in the final report. Task Force – Budget 2006-12-04 2 Staff will provide information to task force members at each meeting. Subjects include employee pay and benefits, insurance, and internal operation services’ impact on the General Fund. The Library, Police, Fire, and Parks & Recreation departments will make presentations. The five-year forecast will be discussed. The preliminary draft of the General Fund financial statement for the yearend audit for 2006 also was provided. The goal is to complete task force business by the end of February 2007. It was requested that task force members direct their questions and e-mails to Ms. Wilson. Information was requested regarding the percentage of City employees who work for the Police and Fire departments. 8. General Fund Overview Ms. Simmons reviewed General Fund expenditures. The General Fund is generally supported by property and public service taxes. In response to questions, Ms. Wilson reviewed the use and importance of surpluses, issues related to interfund transfers, previous budget committees, procedures to budget for staff vacancies, and City Council policy to fund road improvements annually. Enterprise Funds pay administrative charges and transfer payments in lieu of taxes to the General Fund. All departments pay for internal services they receive. Final data from the Property Appraiser will indicate the percentage of revenues received from non-homesteaded properties. Assistant City Manager Garry Brumback said while the City outsources some jobs, individual department directors do not determine when that occurs. Departments are encouraged to not spend their entire budgets. Ms. Simmons reviewed past uses for budget surpluses, including covering significant property insurance increases, construction of the Municipal Services Building, etc. Future projects could include a joint-use facility with the County to replace City Hall. Staff will provide current information comparing the size of the Police Department with other cities. Ms. Wilson said it is difficult to compare personnel levels with other cities as each municipality houses staff in departments differently. It was suggested that the task force determine ways the City could be more efficient. It was noted that each tenth of a millage rate decrease requires a $1 million reduction in expenses. Discussion ensued regarding ramifications of the Save our Homes initiative, with non- homesteaded properties absorbing the ensuing shortfall. Ms. Wilson said that burden would increase if the homestead exemption is doubled. Task Force – Budget 2006-12-04 3 . . . 9. Assianment for December 11. 2006 meetina Ms. Wilson requested that task force members review information related to benefits, pay plans, union contracts, and civil service rules, which will be discussed over several meetings. Human Resources Director Joe Roseto will make a presentation next Monday. Ms. Wilson also requested that task force members read the budget message printed on the first eight pages of the 2006/07 Annual Operating and Capital Budget, which is available online. Last year's budget also is online. 10. Adiourn , The meeting adjourned at 8:00 p.m. Attest: Chair Budget Task Force Board Reporter Task Force - Budget 2006-12-04 4