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01/29/2007 BUDGET TASK FORCE MEETING MINUTES CITY OF CLEARWATER January 29, 2007 Present: R. Nathan Hightower Chair Martin L. Altner Task Force Member Joseph W. Evich Task Force Member Isay M. Gulley Task Force Member Robert L. Longenecker Task Force Member Joyce E. Martin Task Force Member Charles J. Rutz Task Force Member Jesse Sherman Task Force Member James E. Strickland Task Force Member Douglas J. Williams Task Force Member Absent: Herbert W. McLachlan Vice Chair Also Present Margie Simmons Finance Director Patricia O. Sullivan Board Reporter The meeting was called to order at 6:02 p.m. at the Main Library. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2. Approval of Minutes – January 22, 2007 Task Force Member Williams moved to approve the minutes of January 22, 2007, as motion submitted in written summation to each board member. The was duly seconded and carried unanimously. 3. Questions/Discussion regarding January 22, 2007, meeting Parks & Recreation Director Kevin Dunbar distributed information requested on the Long Center budget and subsidies for Brighthouse Fields and the Harborview Center, an Enterprise Fund. The City Council establishes fees for non-City residents’ use of Parks & Recreation facilities by Ordinance, based on a formula that automatically updates as budgets change. User fees are paid to the General Fund. The City began managing the Long Center in FY (Fiscal Year) 2003/04. Seventy percent of users are City residents. Most non-resident usage is for therapeutic/adapted recreation. The budgeted subsidy for FY 2006/07 is $491,758. The City subsidizes all of its recreation centers. The City applies for County grants to fund specific projects. Grant funds have been used to construct a companion changing facility and limitless playground and will be used for outside restroom construction. Finance Director Margie Simmons said the Harborview Center is not self-sustaining. It receives an annual General Fund subsidy of between $300,000 and $350,000. Task Force – Budget 2007-01-29 1 In response to a question, Finance Director Margie Simmons said that the majority of the Enterprise Funds pay 5.5% of their gross revenues to the General Fund. In addition, the Enterprise Funds pay to the General Fund their share of costs to operate the administrative departments of the City, such as Finance, Legal, City Manager’s Office, etc. Concern was expressed that the percentage of ad valorem taxes supporting the General Fund had increased substantially. Ms. Simmons said since FY 2005, property tax revenue has increased from 36% of the General Fund budget to 41% in 2007. 4. Task Force Recommendations to Council – Open Discussion Discussion ensued regarding an employee’s anonymous letter to the Task Force. Consensus was to review and ask questions regarding each concern. United Way Chuck Warrington, CGS (Clearwater Gas System) Managing Director and City United Way Tampa Bay Management Liaison, said some employees find the campaign exciting. Contributions are made through payroll deductions. City of Clearwater employee contributions are similar to the level of donations from the staff of nearby public institutions of similar size. The local United Way assists local residents by funding 72 programs run by 30 agencies throughout the area. Employees also can direct their contributions to 501(c)(3)s not on United Way’s list. Mr. Warrington reviewed staff activities related to the campaign, including a meeting attended by all SAMP (Supervisory, Administrative, Managerial, and Professional) employees, encouraging their leadership in the campaign. Thirty employees, including Department Coordinators, attend approximately nine related meetings, totaling six to eight hours. Pledge cards are distributed during department staff meetings. The United Way portion of such meetings lasts less than 30 minutes and features a recipient of a United Way funded program. There are no quotas, although goals are set. Approximately 38% of employees contribute. Human Resources Director Joe Roseto said it is emphasized to volunteer coordinators that employees are under no pressure to contribute. The City’s open door policy allows employees to address concerns with their supervisors without fear of discipline. Only SAMP employees are provided information on contributions as a percentage of income. City Auditor Robin Gomez said CWA (Communications Workers of America) cards list bi-weekly contributions, not recommended amounts. Mr. Warrington said staff is not required to return cards, which provide employees the opportunity to contribute. Concerns were expressed that too much time is spent picking up cards, and that some employees may consider this required follow-up to be intimidating. It was noted that City employee contributions are significantly higher than those made by City of St. Petersburg and Pinellas County staffs. Mr. Warrington said contributions by Tampa and Hillsborough County employees are higher than Clearwater’s. The City Manager said during her last term in office, former Mayor Rita Garvey proposed identifying United Way as a City charity. Employees are driving contribution increases. He had Task Force – Budget 2007-01-29 2 not heard any complaint regarding City campaign methods. Concern was expressed that ranking departments by contributions levels is “keeping score.” It was recommended that approaching employees for contributions be done sensitively. C-View Public Communications Director Doug Williams said in the future, C-View’s operation would be budgeted separately. Currently, it is included in the Public Communications budget. Police Department forfeiture funds are used to fund one full-time staff position and one intern. Sixty percent of City residents watch some C-View programming, which is available on cable within City limits. Annual operational costs are $72,000. Employee costs are $260,000. Local cable company CIP (Capital Improvement Project) contributions are used to upgrade equipment and viewer accessibility. It was recommended that staff examine using the resources of Countryside High School’s television production program. Mr. Matthews said a goal of the City’s youth Got Gov program is for participants to do their own production at Countryside High School. The City Manager said Clearwater High School’s principal is working to develop a media program there, including television production. Mr. Matthews said the Library’s Public Information Specialist position was relocated to the Public Communications department. While the position’s primary responsibility continues to be the Library, the position also works on Penny for Pinellas and Ironman issues and helps with distributing the department’s workload. Concern was expressed that Library Director Barbara Pickell had reported shortcomings to library communication efforts. C-View was complimented as a valuable resource for residents. It was stated while the station is nice to have, with annual costs exceeding $300,000, it is not a necessity. It was suggested that programming feature the Harborview Center and Long Center to increase facility usage. Station Manager Shawn Stafford said C-View is not permitted to advertise. Mr. Dunbar said staff works to publicize the Long Center. The St. Petersburg Times covered the center’s open house, which attracted 500 attendees. Similar to advertising, it was recommended that Long Center and Harborview Center activity coverage be repeated often as a way to reduce the City’s subsidy. Ironman 70.3 Triatholon Mr. Dunbar said the City never was offered $85,000 nor received income for the Ironman 70.3 Triatholon. The City agreed to provide in-kind services worth $85,000 for the event. Four years remain in the five-year contract. It was stated that the event had a significant economic impact on the area and provided international advertising. The organizer paid 92% of event costs, which exceeded $1-million. The City Manager said once actual City costs are identified, the City Council will determine if they want to continue with the agreement. The City contributed no cash to the event, but did provide materials and staff. Seventy percent of City costs related to public safety. Other jurisdictions on the racecourse are billing Clearwater for their costs. Ironman 70.3 Triatholon is reimbursing the City for those charges, which surpass $70,000. Solid Waste Task Force – Budget 2007-01-29 3 Solid Waste/General Services Director Tom Downes said the task system, unique to the solid waste profession, is effective. All trash on assigned routes must be picked up and delivered to the County’s trash facility before 6:00 p.m. no matter how hot or inclement the weather is. While trash is collected on seven City holidays, it is not collected on New Year’s Day, Thanksgiving, and Christmas. The workload is too heavy to delay trash pickup more often. Also, staff must be compensated for working four 10-hour days, in addition to the holiday. Solid Waste workers are paid for 40-hour weeks, but average 36 hours. Staff must work at least 34 hours a week and must complete their daily routes. Staff works on the team concept, pitching in if a truck, for example, has a mechanical breakdown. Staff is paid overtime only when work weeks exceed 40 hours, as occurred following the series of storms in FY 2004/05. Mr. Downes said the Cities of Tampa and Largo also use the task system, which is a motivator. Clearwater has used the union-supported system for more than 30 years. Several years ago, the department adopted a pilot program to determine if exercise would reduce on-the-job injuries. The program, which included gym membership, has been discontinued, as all City employees now qualify for waived fees at City recreation centers. Mr. Downes said the City’s fee for Solid Waste services is in the middle of what is charged locally. He reported that municipalities with lower fees charge for picking up materials. The City picks up everything. The department’s in lieu of taxes payment is almost $1-million. The Solid Waste Department was complimented for its responsiveness and efficiencies. Additional questions/comments Mr. Roseto said the Human Resources Department oversees the outside consultant, who handles all City negotiations with employee unions. It was felt that adequate staffing of Public Safety is more important than Quality of Life issues. It was proposed that the Task Force focus on consolidating services and vehicle use and outsourcing or cutting Parks & Recreation positions. It was stated that taxpayers expect Quality of Life services. It was suggested that positions not be eliminated. In response to a question, Assistant City Manager Garry Brumback said in addition to the CRA’s (Community Redevelopment Agency) contribution, CDBG (Community Development Block Grant) funds are being used to assess the Cleveland Street site, to determine if it qualifies for Brownfield grant funds for environmental cleanup. CHIP (Clearwater Homeless Intervention Project) initiated the request. Concern was expressed that City government cost increases have greatly exceeded the CPI (Consumer Price Index) rather than mirroring it. Recommendations were made to limit future increases to 3% annually, to cap employee benefit costs, including salaries, the defined pension plan, and health insurance, and to require employee contributions to health insurance costs. It was suggested that the City’s contribution to employee health insurance coverage be capped at 3% annually, with employees paying the difference. Concern was expressed that low income City residents do not receive the same benefits as City employees. Ms. Simmons reviewed the City’s budget process, which requires each department director to submit a budget that reduces costs by 5% and 10%. It was stated that the City should live within its means. Task Force – Budget 2007-01-29 4 . . . Ms. Simmons said staff is working on financial statements that will identify reserves, which appropriately are used for one-time expenditures. According to union contracts, the City cannot reduce wages or benefits without going through negotiations, but can reduce staff. She reviewed the high costs of some unfunded State mandates, including required retiree participation in the City's health insurance policy and the assumption that heart and lung ailments for public safety workers be considered a job-related disability. Mr. Brumback said the State also has diverted the City's share of DWI fines and telecommunication fees now go through the State, and expressed concern the City soon may lose franchise fee revenues. As the State and County do not provide social services as required, the City must cover those costs too. The City Manager said the County, State, and Federal governments continue to pass new costs to the City, which increases the tax burden for property owners. The City eliminated its social services grants, which totaled $250,000 in 2000. Only CHIPs and a North Greenwood program receive General Fund dollars. Concern was expressed that the State is discussing a cap on municipal spending, while it shifts more costs to property owners. It was recommended that legislators, including Representative Hooper, a former City Commissioner, be encouraged to introduce legislation to push back costs to the State. 5. Adiourn The meeting adjourned at 8:07 p.m. am Chair Budget Task Force Task Force - Budget 2007-01-29 5