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03/19/2007 BUDGET TASK FORCE MEETING MINUTES CITY OF CLEARWATER March 19, 2007 Present: R. Nathan Hightower Chair – arrived 6:12 p.m. Herbert W. McLachlan Vice Chair Martin L. Altner Task Force Member Joseph W. Evich 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: Isay M. Gulley Task Force Member Also Present Tina Wilson Budget Director Patricia O. Sullivan Board Reporter The meeting was called to order at 6:07 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 – March 12, 2007 Task Force Member Altner moved to approve the minutes of March 12, 2007 with correction: page three, paragraph two, sentence two, replace “by adding” with “and allowing.” motion carried The was duly seconded and unanimously. Chair Hightower moved to amend approval of the minutes of March 12, 2007 with additional correction: page two, last sentence, to read “ . . . volunteers only to handle . . .” The motioncarried was duly seconded and unanimously. 3. Finalize Task Force Report It was stated that proposed Penny for Pinellas 3 projects will require up to 21 new FTEs (Full-Time Equivalent) and the Budget Task Force opposes all new positions. Discussion ensued to clarify executive summary language and the priority of Task Force recommendations. Consensus was to not repeat the phrase “The Budget Task Force recommends,” throughout. Chair Hightower moved to amend one recommendation to read, “The City Council consider a self-imposed cap on annual General Fund budgeted expenditures to the CPI plus motioncarried 1%.” The was duly seconded and unanimously. Task Force – Budget 2007-03-19 1 Consensus was to list this recommendation first. Discussion ensued regarding the beach library and recreation center with a suggestion that consolidating the facilities, discontinuing recreation center programming, continuing rentals, and assigning library staff to oversee the weight room would save money and that Penny for Pinellas funds could be used to expand the facility to house these activities. It was indicated that utility and insurance expenses exist regardless of use. It was stated that construction of nearby boat docks may result in a change to this facility’s use to include showers and replacing basketball courts with parking. Opposition was expressed to closing libraries or recreation centers as they serve as neighborhood gathering spots. A conflict between two Task Force recommendations was identified. Task Force Member Williams moved to delete from the Executive Summary the recommendation to close the Clearwater Beach Recreation Center for recreation programs and motion open it for rentals only. The was duly seconded. It was noted that the Task Force previously had approved this recommendation. carried Upon the vote being taken, the motion unanimously. Consensus was to average estimated savings related to Parks & Recreation recommendations, and include a total. Task Force Member McLachlan moved to amend one recommendation to read, “The City eliminate a freestanding beach library by consolidating it with the beach recreation center, or closing it if consolidation is impractical, with patrons urged to use the Main library.” The motioncarried was duly seconded and unanimously. Task Force Member Williams moved to amend one recommendation to read, “As the City Task Force police fleet evaluation reflects a potential savings of 25%, the City perform a detailed utilization study on the City’s fleets to identify and eliminate excess vehicles, with a motion special emphasis placed on the elimination of take-home vehicles. The was duly carried seconded and unanimously. Task Force Chair Hightower moved to attach the police fleet evaluation to the report as an exhibit and to amend the previous motion to read, “As the Task Force police fleet evaluation (Exhibit A) reflects a potential savings of 25%, the City perform a detailed utilization study on the City’s fleets to identify and eliminate excess vehicles, with a special emphasis placed on the motioncarried elimination of take-home vehicles. The was duly seconded and unanimously. Task Force Member Evich moved to amend one recommendation to read, “The City discontinue the practice of transferring FTEs from Enterprise Funds to the General Fund. The motioncarried was duly seconded and unanimously. Task Force Member Evich moved to amend one recommendation to read, “It appears that the ratio of Fire Chiefs to the number of firefighters is inconsistent with surrounding municipalities to the degree that it merits an in-depth review by management. Consistent with Task Force – Budget 2007-03-19 2 this review, an examination of the management to staff ratios in all major departments should be motioncarried conducted.” The was duly seconded and unanimously. Task Force Member Martin moved to prioritize Task Force recommendations in order of importance: The Budget Task Force provides the following recommendations to the City Council. 1) The City Council consider a self-imposed cap on annual General Fund budgeted expenditures to the CPI plus 1%. 2) The City maintain its existing structures, refurbishing or replacing them as necessary, which could lower maintenance and insurance costs and that the City limit growth of additional facilities and parks so that no additional FTEs are needed. Specifically, the Budget Task Force recommends that the proposed Senior Center facility not be constructed, instead using existing facilities for senior activities. 3) The City control the cost of employee benefits by: a) Limit increases to the 3% level of revenue increases (based on the Save Our Homes cap); b) Freeze or cap the City’s contribution to health insurance and consider a co-pay program; c) Reevaluate union contract provisions; d) Evaluate the vacation/sick day policy and consider a PTO concept with a disability rider; e) Consider an employee buyout program for retirement eligible employees; f) Evaluate pension alternatives such as replacing the defined benefit plan with a defined contribution plan; g) Emphasize subcontracting by considering liability factors when evaluating costs; 4) The City budget for 2008 utilize a minimum of $6 million from the available $15 million pension plan “set aside” credit to assist in the funding the Pension Plan contribution for that year. We further recommend that the $1.5 million no longer required to fund the “special” fireman’s pension fund also be used to fund a portion of the required 2008 pension contribution. 5) Regarding property insurance that the City consider eliminating or reducing its wind coverage, using reserves in the Central Insurance Fund to increase self insurance limits; and pursue pooling concepts with other municipalities. 6) The City eliminate a freestanding beach library by consolidating it with the beach recreation center or closing it, if consolidation is impractical, with patrons urged to use the Main library. 7) Take-home vehicles be limited to Pinellas County for all staff and that City vehicles are tools that allow employees to do their tasks and should not be used as employee perks. 8) As the Task Force Police fleet evaluation (Exhibit A) reflects a potential savings of 25%, the Budget Task Force recommends a detailed utilization study be performed on the City’s fleets to identify and eliminate excess vehicles, with a special emphasis on the elimination of take-home vehicles; Task Force – Budget 2007-03-19 3 9) The City prohibit using reserves for FTE costs; 10) The City discontinue the practice of transferring FTEs from Enterprise Funds to the General Fund; 11) It appears that the ratio of Fire Chiefs to the number of firefighters is inconsistent with surrounding municipalities to the degree that it merits an in-depth review by management. Consistent with this review an examination of the management to staff ratios in all major departments should be conducted; 12) The City consolidate all public communications in all departments into one department, with the goal of reducing FTE’s and consolidating efforts; 13) The Parks and Recreation budget be cut by approximately 5% with specific cuts to include, but not be limited to: a) Reduction of contracted grounds maintenance $100,000 b) Eliminate Systems Analyst $ 49,000 c) Eliminate Administrative Analyst $ 51,000 d) MLNP – eliminate Programmer I; loss of Pinellas County School support $ 30,000 e) Eliminate 2 FTE; move remaining FTE to Carpenter Team $ 60,000 f) Eliminate Public Information Coordinator and rely on Public Communications to do Parks & Recreation Department $113,000 Total $403,000 14) The City Fire Department institute a firefighter volunteer service program in selected fire stations to evaluate the potential effectiveness of the program and the station that successfully implements this program and has demonstrated one full-time firefighter position completely staffed by the volunteer program be allowed to add one paid firefighter FTE to the station when additional personnel are needed. 15) The Fire Plans Examiner position be eliminated. 16) The City review and evaluate annual contribution programs (i.e. subsidies and/or contributions to Ruth Eckerd Hall, Harborview, Long Center, and Bright House) on an annual basis. motioncarried The was duly seconded and unanimously. Task Force Member Altner moved to amend the second paragraph of the Special Recognition to read, “We would also like to thank the City Council, City Manager and staff for their interest, leadership, and desire to seek taxpayer input into the budgetary process for the motioncarried City. The was duly seconded and unanimously. Budget Director Tina Wilson reported the City Council meeting, when the Budget Task Force final report is scheduled for presentation, was rescheduled from Thursday to Wednesday, April 4, 2007. All members were urged to attend. The Chair said due to a previous commitment, he could not arrive at Chambers by 6:00 p.m. and requested that his presentation be delayed until his arrival. Task Force – Budget 2007-03-19 4 . . . Ms. Wilson will draft a presentation for the Chair and review the report with him for accuracy. As planned, the report will be available on line by March 26, 2007, and a copy will be e-mailed to Task Force members. It was noted that the City Council had requested that the Task Force identify non- essential services. It was stated that all City services, including the Jolley Trolley, are essential to some residents. Task Force Member Altner moved to approve the Budget Task Force's report, as modified today. The motion was duly seconded and carried unanimously. Members and staff thanked and complimented each other for their participation and diligence. 4. Adiourn ~;a^(P Ji) The meeting adjourned at 7:20 p.m. Budget Task Force Task Force - Budget 2007-03-19 5