08/02/2018 - Budget City Council Meeting Minutes August 2, 2018
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
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Meeting Minutes
Thursday, August 2, 2018
9:00 AM
Special Council Meeting re: Budget
Council Chambers
City Council
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City of Clearwater
City Council Meeting Minutes August 2, 2018
Roll Call
Present: 4 - Mayor George N. Cretekos, Councilmember Hoyt Hamilton,
Councilmember Bob Cundiff and Councilmember David Allbritton
Absent: 1 - Vice Mayor Doreen Caudell
Also Present: William B. Horne II — City Manager, Jill Silverboard — Deputy City
Manager, Micah Maxwell —Assistant City Manager, Pamela K.
Akin - City Attorney, Rosemarie Call - City Clerk and Nicole Sprague —
Official Records and Legislative Services Coordinator
To provide continuity for research, items are listed in agenda order although not
necessarily discussed in that order.
1. Call to Order— Mayor Cretekos
The meeting was called to order at 9:00 a.m. at City Hall.
2. Citizens to be heard re items not on the agenda — None.
3. City Manager Reports
3.1 Discussion of updated 2018 General Fund Sustainability Analysis and proposed Penny
for Pinellas III project list.
The General Fund Sustainability Analysis prepared by Stantec Consulting has
been updated to include certified property values and all figures included in the
Fiscal Year 2018/19 Preliminary Operating and Capital Improvement Budget.
Staff has the "control panel" available for review.
As required by City Ordinance, a public hearing for approval of the Penny for
Pinellas project list is held prior to adoption of the capital improvement budget.
In advance of that public hearing, scheduled for September 6, 2018, the
proposed project list is available for review of changes included in the proposed
2018/19 budget.
Finance Director Jay Ravins provided a slide presentation on the latest
version of the general fund sustainability analysis completed by Stantec,
which includes the latest property tax values provided by Pinellas
County.
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City Council Meeting Minutes August 2, 2018
In response to questions, Mr. Ravins said the model predicts there will be
17.4% in reserves (excess of the minimum) in 2028. Best practice for
governments is to have two months in general fund reserves, which is
approximately 16.7%. The main cause in the difference between the bars
in 2022 is due to the property tax values forecast based on what was
expected for fiscal year 2019. In years 2022 and 2024, the capital
expenditures budget is significantly reduced, funding for the public
services complex was carved out ($7.7 million in 2022 and $4.1 million
in 2024). Deputy City Manager Jill Silverboard said the analysis shows
the difference between a 1.2 and 0.8 millage increase, the preliminary
budget documents assumes 0.8 millage increase. She said the analysis
presented to Council this morning is to show why a 0.8 millage increase
works. Mr. Ravins said there has been an extended period of time of
increased property values without a recession, the consultant recommended
4% decrease to reflect that property values do go up and down. If property
values increased at 8%, council would have the opportunity to lower the
millage rate. Budget Manager Kayleen Kastel said the City's increase in
property values is projected based on the increased millage rate combined
with the increase in values. Ms. Silverboard said the forecast model does not
assume the addition of any new FTEs in the general fund, it assumes zero
growth in the number of employees. Mr. Ravins said if the millage was not
increased and properties values increased by 9.8%, the City's revenue would
be $4.5 million in additional property tax revenue. If the additional homestead
exemption passes, the anticipated loss in property tax revenue will be
approximately$1.5 million. Mr. Ravins said the City's reserve levels have
been decreased to a minimum that is not sustainable. In addition, staff is
looking at a 10-year forecast and based on needs of growing programs (i.e.,
operating costs for Crest Lake Park, Imagine Clearwater, Morningside
Recreation Center, sports tourism) the expenditure rate is not sustainable at
the current millage level. Ms. Silverboard said the increased property tax
revenues do not cover the costs for the proposed budget, a millage increase
is needed to cover the proposed budget. Ms. Kastel said the City's property
tax revenues contributes 41% of the budget, with the proposed millage
increase. Mr. Ravins said the City could have increased the millage rate over
the past ten years but was able to balance the budget with reserves for
one-time capital projects instead. The City Manager said there are fewer
employees than there were 10 years ago.
One individual requested consideration to the neighborhood services
unit by one FTE.
The City Manager said staffing for neighborhoods services was reduced
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City of Clearwater
City Council Meeting Minutes August 2, 2018
during the recession. Staff did not feel that much was being
accomplished and Council did not advocate for maintaining that level of
staffing. There is currently one individual managing those services who
has been concentrating on Lake Belleview, a troubled neighborhood.
He said staff responds to meeting requests from home owners and
neighborhood associations. The Deputy City Manager will be attending
the Clearwater Neighborhoods Coalition meeting on August 6, 2018.
There was no council consensus to increase the FTE count for
neighborhoods services.
One individual requested funding to address neighborhood
sustainability.
Ms. Kastel reviewed the Penny for Pinellas 111 list.
In response to questions, Ms. Kastel said Ruth Eckerd Hall was
pre-funded with general funds with the intention to use Penny funds.
The City Manager said staff is looking at moving the Lakeview Fire
Station replacement farther east and south to improve response times,-
the
imes,the properties identified for the new station were not supported by the
neighborhoods. If another location is not identified, staff will recommend
to renovate the existing facility. The City Manager said that area of the
city has the most demand for EMS services. The City receives
assistance from Largo via the mutual aid system if we are not able to
respond to a call.
Councilmember Cundiff departed Chambers at 9:51 p.m. and returned at
9:53 p.m.
4. Closing comments by Councilmembers (limited to 3 minutes) — None.
5. Closing Comments by Mayor— None.
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City of Clearwater
City Council Meeting Minutes August 2, 2018
6. Adiourn
The meeting adjourned at 9:58 a.m.
City of Clearwater
Mayor
City of Clearwater
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