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08/31/1999PUBLIC MEETING re Budget CITY OF CLEARWATER August 31, 1999 Present: Brian J. Aungst Mayor/Commissioner Ed Hooper Vice-Mayor/Commissioner J. B. Johnson Commissioner Robert Clark Commissioner Ed Hart Commissioner Also Present: Michael J. Roberto City Manager Bob Keller Assistant City Manager Bill Horne Assistant City Manager Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Patricia Sullivan Board Reporter The Mayor called the meeting to order at 6:00 p.m. to review issues regarding the Fiscal Year 1999/00 operating budget and programs. Opening Remarks Status and Balancing of FY 1999/00 General fund Operating Budget In his August 20, 1999, memorandum regarding the Year 2000 Budget Status, the City Manager reviewed the budget based on Commission proposed changes on August 10, 1999. On August 4, 1999, the budget was out of balance by ($502,440). Proposed increases in revenue made on August 10, 1999, include $50,000 in capitalized labor charges to the CIP Fund for the CAD program. Expenditure decrease of $107,340 for an out of balance condition of ($345,1000): 1) 3 additional firefighters – ($140,000); 2) enhance Long Center funding – ($86,110); 3) Jack Russell Stadium taxes - $41,450; 4) Vision Funds for FY (fiscal year) 2000 - $200,000; and 5) additional salary savings of 0.5% for 1.7% total - $92,000. Additional costs for Norton Pool winter operations of $13,760 adjust the out of balance condition to ($358,860). When the FY 1998/99 operating budget was adopted, $800,000 in General Fund reserves were transferred to fund a portion of the SR 60 corridor beautification project. After review, staff has determined parts of the project are not feasible, permitting $358,860 to be transferred to other capital projects and eliminating the need to provide funding in the new year. SR 60 project savings could be used for: 1) capital project to replace and upgrade Fire Department airpacks reflect the Year 2000 purchase of $224,000 of equipment which swapped out and replaced all original airpacks. Future funding includes on-going equipment replacement. The $224,000 cost, a one-time expenditure, could be funded from SR 60 project savings with a third quarter budget amendment in the current fiscal year, eliminating the need to fund this project in the new year and 2) the Air Conditioner Replacement project replaces several systems. The $134,860 balance necessary to balance the 2000 budget could be funded from SR 60 project savings with a budget amendment this fiscal year, eliminating the need to fund this project in the new year. These adjustments would bring the FY 1999/00 General Fund operating budget in balance. The City Manager said the submitted budget is balanced. This year, the Commission will have more meetings to discuss the budget than ever before. Budget Director Tina Wilson reviewed proposed changes. In response to a question regarding the transfer of Gulf-to-Bay Boulevard project funds, the City Manager said the status of a Federal grant application will impact the project. Staff will present a project review this fall to include discussion of raising private sector revenues over the next 10 years. Concern was expressed the project would be underfunded significantly if the grant is not awarded. The City Manager said the multi-year project depends on public/private participation. Money was budgeted to begin the process of allocating funds to the long-range beautification plan, which has not been finalized. It was felt funds should not be transferred from an ongoing project to balance the budget. Ms. Wilson said one-time savings are being used to fund one-time projects. It was recommended the Commission require a 10% level of unretained earnings be maintained. Ms. Wilson said the current balance is 9%. The Commission was challenged to identify sufficient cuts to reduce the size of the millage rate increase. It was noted the Commission had retained many programs the staff had identified for cuts. It was recommended retained programs not increase expenses. It was felt each program should be reviewed for its importance. Ms. Wilson said the departments had been challenged to present zero growth budgets. In response to a question, she said positions vacated by retirees must remain open until the costs of outstanding vacation and sick leave time are covered. In response to a question regarding the transfer of the anti-discrimination compliance program to the County, the City Manager said after calculating required payouts for leave, etc., staff will be able to identify the extent of savings to the General Fund. It was suggested the budget for the Sister Cities program be reduced. The wisdom of cutting the tourism budget was questioned. In response to a question, Ms. Wilson said while approximately $350,000 remains in the Vision Fund, plans are to transfer out $200,000 and forward the remainder. Several concerns were expressed the Strategies for Success program's $172,000 budget may not be essential. The City Manager said the program pays for itself in resulting savings. It was felt savings should be achieved as a product of good management. It was stated the program is important and should be continued at least one more year. The City Manager said the program involves all employees in the process of identifying cost savings. He said staff knew the program would be an 18-month process when it began. Concern was expressed regarding some City Clerk Department expenses. City Clerk Cyndie Goudeau said the lobbyist program returns many times its costs in appropriations, etc. In response to a question regarding the proposed electronic document management program, she said generated savings are difficult to quantify. The program will allow other departments and the public to view documents from off-site. While Clearwater is the 10th largest city in Florida, its record management is not as technically advanced as it should be. Five citizens addressed the City Commission with concerns: 1) vermin near Highland Avenue and Jeffords Street: 2) increased taxes cause hardship for those on fixed income; 3) departments could be challenged to increase savings; 4) opposition to transfer of anti-discrimination compliance program to the County; 5) request that low income neighborhoods receive their fair share; and 6) North Greenwood has indoor recreation needs before the recreation center is built. In response to a concern, the City Manager said it is anticipated the grant writer will return 10 times more than the position's cost. Staff will provide the Commission with monthly reports related to current grant applications. It was recommended the City be more vigilant in applying for grants. Discussion ensued regarding the Harborview Center's finances. The City Manager said the center has a positive trend in its cash operations. The center's construction costs are not included in the operating fund. The Commission was challenged to reduce the proposed millage increase by 1/10 mill. In response to a question, Ms. Wilson said cuts to the Vision Fund represent one-time dollars. In response to a suggestion, the City Manager will report on the impact of removing $43,000 from the Strategies for Success program. In response to a question, he said cuts to C-View operations include the reduction of one FTE and the number of shows and videos produced. Clearwater Magazine also has been cut. It was suggested the marketing budget could be decreased further. It was suggested the Parks & Recreation Department find ways to lower maintenance costs. It was stated when new projects are proposed, an annual estimate of related maintenance costs should be reported. It was felt the City must provide essential services and be careful of cuts. Information was requested regarding the impact of decreasing the millage increase by 1/10 mill. A report on the status of projects with unspent funds was requested. Ms. Wilson said that information is provided in the quarterly reports. Information related to every open project was requested prior to the next budget meeting. Adjournment The meeting adjourned at 7:30 p.m.