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08/10/1992 - Budget Town Meeting TOWN BUDGET MEETING August 10, 1992 The City Commission of the City of Clearwater met at the Clearwater East Library with the following members present: Richard Fitzgerald Vice-Mayor/Commissioner Sue Berfield Commissioner Arthur X. Deegan, II Commissioner Absent: Rita Garvey Mayor/Commissioner Also present: Michael J. Wright City Manager M.A. Galbraith, Jr. City Attorney Mary K. Diana Assistant City Clerk The town meeting was called to order by Vice-Mayor Fitzgerald at 7:04 p.m. and the following was discussed: The Vice-Mayor reported the purpose of tonight's meeting was to receive input from the public regarding the proposed budget. The city manager said the informal meeting will provide an opportunity to go over the proposed budget and receive public input and specific comments. He announced formal public hearings would be held on September 3rd and September 17th. He reviewed the budget process and presented slides stating the recommended rate is 5.1158 mills which is consistent with this year's rate and less than the "roll back" rate of 5.1707 mills due to the taxable value of property in Clearwater having decreased by approximately .4 percent from the current year. He stated that 47 percent of the general fund budget is for public safety which includes police and fire and 66 percent covers personal services. He said the non-departmental expenditures include the capital improvement projects funded by general fund dollars of which $2.9 million has been designated for the consolidated city hall project. He said recommended additional personnel are .4 FTE for the Transportation Group, .5 FTE for the Sailing Center, .5 FTE for Affirmative Action, 1 staff assistant for Watershed Management, 1 administrative support manager for the Gas System, .3 FTE for the parking garage and 1 mechanic for Fleet Maintenance. He said this comes to a net reduction of 9 positions since mid year 91/92. He reported property taxes are 31 percent of the city's revenue sources with franchise and utility fees bringing in 26 percent. He said the taxable value of city property has decreased and we cannot expect significant growth in this area. He reported the surplus fund still exceeds the commission's goal of 10 percent. He indicated $6.1 million of "Penny for Pinellas" tax money will be spent for road and street improvements, recreational parks, environmental projects and the consolidated city hall project. He said other funding sources for the capital improvement program include monies received from impact fees, special development fund and internal funds and borrowing consisting of the city's lease/purchase funding provides for 19 percent. Bob Wright, representing the Coalition of Homeowners, agreed with the proposed budget but expressed concerns regarding shortfalls in ensuing years. He requested an outside study be done regarding a new city hall. He complemented the city manager for the start of a 3-year forecast and a right sizing program. Mr. Wright questioned whether transferring funds from the "Penny for Pinellas" tax monies for purchase of the Sun Bank Building and the Maas Brothers property was a misuse of these funds. He asked that the city attorney review this transfer and supported funding a new city hall with revenue bonds. He expressed concern the city wanted to use unidentified funds in order to avoid a referendum. Mr. Wright referred to the city's proposed reclaimed water system and questioned whether the city has approached SWFWMD regarding this program. He felt this program should be given priority in 1992-93. Discussion ensued regard the city's self insured reserve fund and reaching the $7 million commission goal to keep the fund solid. It was indicated the pension fund has been wisely managed and is intact. Discussion ensued in regard to the city's reclaimed water program being discussed with SWFWMD and that they were prepared to go forward. However, there had been no opportunity for the public to express whether there was an interest. The city manager indicated there is money being held by SWFWMD for a stormwater utility project. The reclaimed water issue will be agendaed in approximately 60 days. The project will cost approximately $60 million and the beach areas will be given priority. Dave Abelson, representing the Clearwater Chamber of Commerce, expressed a public need for a Countryside Community Center. It was noted a presentation has been scheduled for Thursday night. The city manager pointed out this project is proposed to be funded in 1995-96. There have been requests for changes in the Parks & Recreation CIP and requests for park land purchases and development. In response to a question, it was indicated this project could begin sooner than 1995-96. Joe Evich complimented the city manager and staff on preparation of the budget. He requested the actuals for the mid year or the first 9 months indicating these would be helpful in comparing the budget. It was indicated the adjusted number in the proposed budget reflects mid year. He expressed concern that travel, subscriptions and phone expenses have escalated since last fiscal year and requested these items be reviewed carefully. He indicated even though the salaries and wages have been reduced favorably, there was no corresponding change in the fringe benefit rates. The city manager noted many employees are not covered by social security and Deputy City Manager Kathy Rice noted health insurance is a fixed cost. Mr. Evich favored issuing revenue bonds to finance a new city hall. There was discussion regarding the different pension funds in the city. The city manager believed the city has the most solvent pension funds in the state. Mr. Evich questioned what is the value of the assets for the first 9 months. It was indicated there is no report as yet. Mr. Evich expressed concern if the pension assets would have a downturn, is the city being conservative in their approach. The city manager said we are. He said even by reducing the city's funding to the pension it will still be overfunded. A question was raised as to what is the projected surplus for the general fund for the current fiscal year. Staff is to provide. It was indicated the general fund is roughly $60 million. In response to a question, the city manager indicated he is projecting a 16 percent surplus at the end of the current fiscal year if no money is transferred to the city hall project. Discussion ensued in regard to the expected surplus at the end of fiscal year 1992. It was indicated the surplus at the end of fiscal 1991 was about $9.1 million. A request was made to see what the potential surplus will be at the end of fiscal 1992. Mr. Evich expressed concern with the budget being conservative that there will be sufficient reserves in the future. He questioned some of the increases in certain categories. The city manager explained some of these increases reflect microfilming services, a number of legal cases expected to go to trial and ADA requirements. There is a great deal of budget detail to justify the increases. The city manager said a large part of the increase in expenditures is shifting the money from the reserves to the CIP. A question was raised if this year's adjusted budget of $56 million include the $2 million plus that was moved to the other funds for the city hall project. It was indicated the money has not been moved yet. Steve Saliga asked clarification on the budget position summary by department and it was indicated the numbers reflect full time equivalent employees. In response to a question, the city manager indicated the consolidated city hall will house approximately 280 employees from various departments and the issue of square feet per person has not been resolved. Bill Jonson said there is a need to get the stormwater utility plan completed to identify what needs to be done. He urged the commission to move additional monies into structural improvements for water quality. The city manager noted the commission has approved the stormwater master plan. Negotiations with SWFWMD have stopped the proposal. The city will be talking with adjoining cities with SWFWMD's concurrence to try and get an area wide plan which they would fund the majority of the cost. Mr. Jonson found placing the utilities underground on Sand Key to be a favorable goal and questioned who would be funding this project. The city manager indicated if the utilities are placed underground, the cost would fall to the city. It was indicated the cost would be enormous. It was noted the utility companies will absorb the costs to move their utility lines back. It was questioned whether costs could be shared. The city manager asked anyone requiring detailed information regarding the budget to notify his office. Vice-Chairman thanked everyone for attending the town meeting. The meeting adjourned at 8:19 p.m.