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Minutes 07-12-05 (2) MINUTES OF THE SPECIAL CITY COMMISSION BUDGET MEETING HELD ON TUESDAY, JULY 12, 2005 AT 2:00 P.M. IN THE LIBRARY PROGRAM ROOM Present Jerry Taylor, Mayor Mike Ferguson, Vice Mayor Bob Ensler, Commissioner Mack McCray, Commissioner Carl McKoy, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Janet Prainito, City Clerk REVIEW PROPOSED BUDGET FOR FISCAL YEAR 2005/06 Mayor Taylor called the meeting to order at 2: 11 p.m. Mayor Taylor announced the purpose of the meeting was a workshop and no public input would be entertained. Public meetings on the matter will be scheduled and advertised. Proposed Resolution No. R05-118 RE: Approving the collective bargaining agreement between the City of Boynton Beach and the National Conference of Firemen and Oilers, SEIU, AFL-CIO, CLC, Local 1227, White Collar Bargaining Unit, for the period October 2004 through September 2006. (Tabled on 07/05/05) Motion Vice Mayor McCray moved to remove Proposed Resolution No. R05-118 from the table. Commissioner McKoy seconded the motion. Motion passed unanimously. Mayor Taylor indicated the Proposed Resolution for the White Collar Bargaining Unit had been tabled at the July 5, 2005 regular Commission Meeting, with the understanding it could possibly be handled at the workshop. Motion Vice Mayor McCray moved to approve Proposed Resolution No. R05-118. Commissioner Ensler seconded the motion. Discussion Commissioner Ferguson repeated his prior comments when the Police contract was approved regarding retroactive pay. He indicated he would not vote for any retroactivity. If the date on the contract would be changed to April 1, 2005 rather than 1 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 October 1, 2004, he would vote for the white collar contract. Commissioner Ferguson held his position would be the same for the Blue Collar agreement. Commissioner Ensler felt Commissioner Ferguson's point was valid; however, the process of getting the contract agreements on time can be difficult. He recommended staff work towards finalizing the contracts in a timely fashion without the necessity of a retroactive pay period. Vice Mayor McCray concurred with Commissioners Ensler and Ferguson and indicated time limits and ramifications need to be made known to the union and staff for all future negotiations. Commissioner McKoy echoed the other Commissioners' concerns and said he would vote for the contract this time. Mayor Taylor said obviously the Commission was unanimous in the message it wanted to send to the participants for future negotiations, that as long as the management side was not responsible for the delay, there would be no reason for retroactive pay. Vote Motion passed 4-1. (Commissioner Ferguson dissenting.) Mayor Taylor turned the meeting over to the City Manager to go over the proposed budget. Presentation by City Manager Basically Mr. Bressner informed the Commission he would go through the transmittal memo briefly and based on questions asked, review specific items. He indicated staff was also present to answer any questions. Vice Mayor McCray requested an update on the current year's budget. Mr. Bressner reported for the General Fund, the estimated revenues should be $682,000 over budget and estimated expenditures should be $831,000 under budget. The proposed budget does include an estimated fund balance for each of the funds. Mr. Bressner said the overall City budget is expected to increase by 7.2% over the current fiscal year. The proposal is to add 26 new positions. The transmittal memo shows 31 new positions; however five positions are being reduced. Most significantly would be the addition of 10 police officers and 12 firefighter/paramedics. The four Building associated positions and one Assistant Fire Marshall relate to building activities anticipated in the next year, the cost of which should be covered by building permit fees. Mr. Bressner explained rather than having two Assistant City Managers he 2 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 proposed the addition of an entry level position, Assistant to the City Manager, and only one Assistant City Manager. Also to be added is a Public Arts Administrator, in conjunction with the Commission's approval of the concept for the Public Arts Program. A Water Instrument Control Tech and Cook at the Golf Course Restaurant are also anticipated to be added. Positions to be eliminated are Assistant City Manager, Public Affairs Coordinator, Deputy Director Purchasing, Parks Maintenance Worker and Restaurant Bar/Server, all being vacant positions. Mayor Taylor asked if the cook for the Golf Course had not been contracted. Freda DeFosse explained the City had eliminated the contract for the restaurant five or six years ago. Vice Mayor McCray asked for copies of the job descriptions for all the new positions requested. Mr. Bressner indicated they were available and would be given to the Commissioners. Mr. Bressner pointed out the proposed budget calls for a slightly reduced property tax rate from 7.68% to 7.63% due to the reduction in the debt service and reduction of the bond issue for the next four years. The recommendation would be to keep the base property tax rate at 7.5%. The proposed budget does not include and increase in either the water or sewer rate. He did assert the City's Solid Waste (Sanitation) Fund would require careful monitoring due to the additional costs for disposal fees and waste hauling related to the hurricanes and reimbursements. The Fund has been unstable and the $550,000 transfer to the General Fund as a revenue source could not be done this year. General Fund Budget The Commission has adopted a policy of retaining 10% of the General Fund operating expenditures in a reserve which has been projected to be $15.9M or about a three month expenditure reserve to improve the overall financial situation. Last year the Commission authorized using $1.6M of the reserve; however, it is anticipated only $144,940 will be used. The projection for the overall cash reserves in the General Fund will increase from $13.3M to $15.9M. Mr. Bressner indicated additional revenue was being proposed using a 5% utility tax on City water bills within the City limits. There is a statutory six month notification process. The revenue from the remaining six months of the fiscal year would be approximately $195,000. 3 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 Mayor Taylor asked the impact of the 5% tax on the average household. As an example, Mr. Bressner used 9,000 gallons would have an increase cost of $.97 with the tax. Vice Mayor McCray wanted to know how the $195,000 was earmarked. Mr. Bressner responded the funds would go to general governmental services in the general fund. Commissioner Ensler suggested before increasing the taxes, the rates for capital assessment on new building construction should be reviewed. He felt it may be advisable to increase those rates first. Mr. Bressner noted those revenues are not available to the General Fund, rather the Utility Fund, to be used for capital construction activities. Commissioner Ensler felt it still should be reviewed for the future. Mr. Bressner remarked the money can be indexed for capital improvements. The intent is to increase revenue streams and not use any of the un-obligated fund balances to plan a balanced budget. The good news, according.to Mr. Bressner, was the utility tax may not need to be implemented since the July Truth in Millage (TRIM) notice indicated an additional $314,000 property tax revenue if the base levy remains at 7.5%. The notice had not yet arrived when the budget was prepared. There would be a slight reduction in the un-obligated fund balance. This adds flexibility to this year's budget. Commissioner Ensler said the budget has expenditures of $1.6M more than the revenues or deficit financing and serious problems can accumulate. He asked if it was possible to have a budget without deficit financing and any surplus used for capital. Mr. Bressner alleged this would only be possible if $1.6M would be cut from the operating budget of the General Fund. Commissioner Ensler asked if the General Fund budget has any capital. There is capital equipment according Mr. Bressner. Commissioner Ensler did not agree with deficit funding and felt budgets should be balanced in the future. Mr. Bressner indicated he did not view the budget as deficit financing, because the un- obligated fund balance is something that is available and meets the requirements of the resolution to set aside the 10%. On the revenue side, Mr. Bressner projected the City would be receiving $60.7M in revenues, being an 11% increase over the prior year. He said the original budget showed a deficit of $3.2M over projected revenues. Staff was requested to make $1.7M in cuts cumulatively and did come up with $1.5M in cuts. Vice Mayor McCray asked if the $1.5M in cuts would affect the level of services to the citizens of Boynton Beach. The department heads were asked when making the cuts to be sure there would not be a demonstrative cut in City services and programs. A copy of the cuts were handed out and are on file in the City Clerk's office. The $1.6M would be with the additional staff without the tax increase. The increase in expenses in the General Fund is 11.3% inclusive of additions to staff. 4 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 Comments on the expense items by Mr. Bressner, revealed the annual recognition dinner was continued. The Community Investment program was continued; however, subsequent to the budget preparation a request was made for $10,000 for veteran affairs activities. Mr. Bressner explained the 10 police officers would be split so that 5 would be hired in October and then 5 in April to coincide with the recruitment process. He was not aware if the CRA would be adding any officers to the contract with the City. The CRA recruits from the City's current staff and usually hires senior officers and the City replaces the senior officer with a new officer. The overall staffing level of the Police Department does not decrease. There is a revenue source to pay for the four officers including benefits for senior officers currently assigned to the CRA covered by an interlocal agreement. Mr. Bressner further explained the 12 firefighters and Assistant Fire Marshal would be effective on March, 2006. The revenue stream has increased due to interlocal agreements with Hypoluxo, Ocean Ridge and the Village of Golf from $443,000 to $1.2M. The agreements have an overall cost escalator included to meet the City's overall cost increases. Commissioner Ensler asked the cost of hiring the additional staff in comparison to the increased revenue. William Bingham, Fire Chief, indicated the additional staff would have a cost of approximately $700,000 including benefits. Mr. Bressner mentioned the neighborhood grant and improvement program has a vacancy to be filled, but not authorized until discussion on the ultimate scope of the program has been determined. Commissioner Ensler stressed the cost is over $200,000 for a $25,000 investment in the community. He suggested the position be eliminated and the $200,000 be divided for programs to beautify the City. Commissioner Ensler felt it was a poor ratio to have a $200,000 department to support a $25,000 budget. Vice Mayor McCray thought the decision and options should be discussed at a future time and Mr. Bressner agreed. Pension Fund Contribution ImDact All three pension funds have a requirement of funding by the City to meet their pension obligations, according to Mr. Bressner. The General Employees' Fund increased $600,000, the Police Pension Fund increased $800,000 and the Firefighters Fund increased $300,000. All increases were a result of retirements, pay raises, larger staff and investment earnings. Mr. Bressner indicated there was an assumed rate of return for each of the pension funds. A request for a pension consultant to review the rate of return and actuarial reports is pending. The results of the review would be seen in the next fiscal year, if any changes are recommended. The trustees of the funds are aware 5 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 of the Commission's concern and will be addressing alternatives to assist with the pension costs, realizing it is an important tool for employee retention and recruitment. Mr. Bressner distributed a comparative analysis of pension contributions in other area municipalities which will be on file in the City Clerk's office. Mr. Bressner concluded all the municipalities had an investment return between 7.75% and 8.5% assumed rate of return. In theory, if each of the funds meet their return rate, the cost to the City should be less because the pension and investment contributions meet the pension obligations. In reality, the pension funds do smoothing, taking three or four years of investment earnings and averaging the cost over the years for the City to allow for the market's variations. Attorney Cherof concurred it was a statutory obligation. Commissioner Ensler inquired what percent the pension funding is of the total budget for each of the municipalities shown on the comparison, including Boynton Beach. Mr. Bressner referred to the chart of Retirement Contributions that reflects the City's contributions showing a significant increase in the last three year. The projection is for 8% for the next four years. Commissioner Ferguson said the increase is all the more reason to switch to defined contributions. Mr. Bressner responded the consultant would be reviewing the costs of defined contribution versus defined benefit. Vice Mayor McCray asked Mr. Bressner for the basis of the 8% projection. Mr. Bressner replied the percentage is in the Ordinance, which was based on the grade of the investments, assumed rate of return, plus other factors and the assumption needs to be reviewed. He stressed an 8% assumed rate of return is much higher than the market is currently producing. Mr. Bressner was aware West Palm Beach had shifted their general employee pension fund to a defined contribution plan and would request a cost savings comparison from that City. Water and Sewer Utility Fund Mr. Bressner noted the fund is basically balanced with a zero increase. The revenues are $30.3M and expenses the same amount. An issue to be monitored is the possible reduction in the storm water assessment from $5 to $4, if possible. Vice Mayor McCray remarked the memo indicated the new director may be making additional operational and structure changes and wondered if those changes would mean additional expenditures to run a deficit balance. Mr. Bressner maintained the attempt would be made to make any changes without additional cost to the City by achieving operational efficiencies. One issue requiring monitoring would be the condition of the City's sanitary sewer collection system according to Mr. Bressner. Modernization of the water system has been a priority and the sanitation system has been upgraded in conjunction with any 6 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 water system or drainage changes. He pointed out the Sanitation Department has been attempting to do these major upgrades with existing staff. It has been determined there may be difficulties with many of the forced mains in the City due to corrosion and cathodic protection should be addressed. Another issue Mr. Bressner felt requiring investigation would be the master lift station downtown because pump replacements have been too frequently over the past few years. Also infiltration into the sanitary sewer system was the third concern of Mr. Bressner. The biggest increase in the utility budget is increasing the cost of user fees to the sanitary sewer board due to infiltration. Mr. Bressner projected the sanitary sewer system needs to be tightened and the budget includes an infiltration analysis of the system to be a major element of activity in the next year. Commissioner Ensler contended savings would be seen at the processing plant by having less water and less need for future expansion. Mayor Taylor had been told the current lift station is operating at capacity and if there was a breakdown everything east of 1-95 would be shut down. Mr. Bressner indicated a redundant system was being designed at this time and CH2M Hill is looking at the sanitary sewer collection system including a potential for a backup or parallel master lift station to serve the downtown area as part of the capital improvement plan. Vice Mayor McCray requested an anticipated date for receipt of the update on the capacity of the lift station Mayor Taylor mentioned. Mr. Bressner's suspicions were heavy infiltration in the lines feeding lift station 356 is the actual problem and economies will be achieved if the infiltration can be reduced. Golf Course Fund Mr. Bressner reported the fund shows a slight surplus due to staff's diligence when the revenues began to drop and reducing their expenses accordingly. Golf play is down industry wide and staff deserves accolades for their foresight. The budget is 1.8% lower than the current year. Solid Waste Fund According to Mr. Bressner, this fund requires careful examination because of sharp increases in waste disposal fees based on both a rate increase and the storm related volume increase. He reported it is anticipated the overall expenses will be higher than budgeted even though revenues will increase also. The roll off revenues were helpful totaling $1.1M and helped to stabilize the rates. Mr. Bressner indicated the Union and City worked together to lobby on pending legislation regarding the tipping fees. Vice Mayor McCray asked if a rate increase was anticipated. The recommendation by Mr. Bressner was for a rate increase for multiple family units only. Comparative information was provided in the budget reflecting only Palm Beach County has a lower rate. 7 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 Commissioner Ferguson took considerable exception to the recommendation and the differential. As indicated, $550,000 could not be transferred from the Sanitation Fund into the General Fund. Mayor Taylor requested a status report on the issue of the mandatory bins being used or increased rates in the five areas. Mr. Livergood noted the Ordinance allows the City to do that and meetings are being set up with the various homeowner associations to make the option available. Mr. Bressner asserted an economic incentive is set up in the ordinance for the conversion to benefit the homeowners. Commissioner Ensler asked for a timeframe on the completion of the meetings with the homeowner associations. Mr. Livergood mentioned late fall as the possible target date. Mr. Bressner felt the multi family rate increase should not be initiated until the meetings are completed. TransDortation Fund This fund is mainly the "Shopper Hopper" service and mostly funded by the Local Option Gas Tax. The return is about 10% with expenses estimated at $263,000 and fare box revenue of only $28,000 being about half of the national average. Mr. Bressner felt the viability of the program will need to be assessed as it is a very popular program. The program is labor intensive and very expensive. Fleet Maintenance Fund Mr. Bressner stressed the fund is totally funded by transfers from other departments such as police, fire, utilities and anybody with rolling stock under a formula based on the size of their fleet and estimated life span of each vehicle. He acknowledged to kickoff the police take home vehicle policy, the fleet fund paid for the 13 cars. The cars are not being held an additional year as stated in the memo. Vice Mayor McCray asked if the surplus vehicle sale proceeds are returned to the Fleet Maintenance Fund. Mr. Bressner affirmed and reported the sales are coordinated through several sources including EBay. Warehouse Fund This fund is another internal service fund for such things as office supplies, batteries, rain ponchos, food supplies during storm events, and basic commodities for the Utilities Department. The warehouse maintains very good inventory control with two facilities, one at the East Plant and one at Public Works facilities. Risk Management Fund The fund is responsible for insurance coverage, workers' comp and employee safety programs. The success of the fund is due to the vigilance on the part of risk management, their safety program and focus on preventive actions. Unfortunately, the variations in the insurance market will increase the cost of insurance and has been accommodated in the budget. A supplemental report was handed out and is on file in the City Clerk's office showing a 50% reduction. Historically, a base of $2.5M has been reduced to $l.4M, which in turn reduces the cost to all the operating departments. 8 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 Boynton Beach Memorial Fund Mr. Bressner reported this fund covers the two cemeteries in the City with expected revenues of $316,000 and expenses of $223,000. The surplus is transferred to the trust fund with a projected balance of $4.2M as of October 1, 2005. Local ODtion Gas Tax Fund This fund is a state shared revenue with anticipated funding of $l.3M used for street maintenance, capital improvement debt service, audit cost and the transportation system. Mr. Bressner projected a shortfall of $168,000 that can be covered with fund reserves from prior years to balance. He speculated less would be received this year. Mayor Taylor questioned why less would be received when gas prices had gone up. Mr. Livergood explained the tax is pennies per gallon rather than a percentage of cost. The price goes up, people use fewer gallons, so the dollars received go down. Mr. Livergood indicated the League of Cities has just revamped the formula and cities were asked to verify the streets involved using the GIS mapping for lane miles. Community Improvement Fund The fund is responsible for property and housing improvements to income-eligible families including first time home buyers within the City. Boynton Beach has one of the best programs for affordable housing spearheaded by Octavia Sherrod and her staff. Since 1997, 224 units of affordable housing have been established being done one at a time with infill development and coordination with county, state and federal programs, according to Mr. Bressner. The three main funding sources are SHIP Funds, CDBG or Clipper Cove Funds. The revenue projection he made was $633,000, representing a 4V2% reduction. Recreation Proaram Fund Mr. Bressner explained the program was set up to provide 100% user fees to pay for everything and also transfers $75,000 into the General Fund for participants unable to pay the requisite fees. Over the past year the inability to use the Civic Center for an extended period due to the FEMA program left the fund $75,000 short. On the other hand, expenses were reduced by $27,000. Vice Mayor McCray inquired if arrangements for FEMA at another location have been made. Mr. Bressner said those arrangements have not been made and hopefully will not be necessary. General Obligation Bond Fund Mr. Bressner commented the bond fund was established to payoff the debt service which is decreasing each year, decreasing the tax rate each year and will not exist after the 2008/2009 fiscal year. 9 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 Public Service Tax Fund Mr. Bressner explained in 2003 the Commission reallocated projects in January of 2003 and recommended using a public service tax to fund the debt service for projects. The existing public service debt was refinanced and generated $18.3M. $10M was used to refinance and leverage $8.3M of which $700,000 represented investment earning benefits to add to projects serving as the basis for major capital projects. He informed the Commission a total of $7.2M was received and 55% of the public service tax pays the debt service. The remaining 45% is in the General Fund for governmental purposes and programs. Fire Assessment Fund The fund was established in 2001/2002 and Mr. Bressner projected receipt of $2.8M, half of which would be used for salaries for 24 fire personnel hired for the southeast station. It had been suggested the expense be transferred to the General Fund; however, it could not be done until after the next fiscal year. The transfer would represent $1.3M additional expenses for the General Fund. Commissioner Ensler asked if an analysis had been done of the projects and cost. Mr. Bressner replied a sources and uses analysis was done. Commissioner Ensler felt the possibility of a new assessment may need to be considered to complete the project. Mr. Bressner stressed the original plan has changed from a four station configuration to a five and one-half station configuration due to significant changes in the development of the Community. The proposal for the next fiscal year would be, once the southeast station is functional, the service area for the central station will shift northeast until the fire station is completed on Gateway and High Ridge. The same level of service will be maintained, but the fire stations will be people rich and facilities poor. Commissioner Ensler mentioned the current assessment cannot be extended; however, Attorney Cherof had indicated a new, independent assessment fund could be created. Mr. Bressner agreed with Commissioner Ensler's comments. Mayor Taylor inquired on the status of the lawsuit on the fund. Attorney Cherof responded the case was pending and now set for trial. Vice Mayor McCray asked if any of the CRA funds could be transferred into the fire assessment fund. Mr. Bressner explained on the fire assessment, no matter where a property is located, the same amount would be paid. Vice Mayor McCray clarified his concern was after the assessment was done could the City then look to the CRA for funding. Mr. Bressner agreed discussions with the CRA would be appropriate. Mayor Taylor asked how many people were exempt from the fire assessment fee. Mr. Bressner felt there were very few. Bill Mummert, Finance Director estimated twenty-five or thirty only. The suggestion had been made to use an impact fee, but it was legally not allowed as yet and a fire assessment fee is already in place for additional developme,nt. 10 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 CaDitallmDrovement Fund Mr. Bressner pointed out the non-utility capital improvement items were listed on page 14 of the budget overview memo. Mr. Bressner thanked the department heads for their work and making the necessary budget cuts. He suggested the Commission look at the cuts that were made and make any recommendations. Vice Mayor McCray questioned the cuts made in the Police Department for training and asked if the training cut would include taser training. Michael Munro, Support Service Administrator indicated the training cut was for training outside the department and would not affect any taser training. Mr. Bressner told the Commission the use policy has been changed. Interim Chief Immler explained the Florida Department of Law Enforcement (FDLE) recommended all departments use a "use of force matrix" beginning with the an officer's presence and ends with the discharge of a firearm. The taser was at the very bottom of the matrix, meaning an officer could use the taser for refusal to obey a command. The new policy moves the taser up the matrix to "hard control", which involves more than a mere refusal to obey and would include a physical confrontation before a taser can be used. Mr. Bressner turned the meeting over to questions from the Commission or review of individual items. He reminded the Commission the preliminary tax rate resolution would need to be decided and could be reduced before adoption, but could not be raised after initially established. Staff's recommendation was set at 7.5%. Mayor Taylor indicated questions from the public would be entertained at a later time. He did wonder with all the new development if the planning department was sufficiently staffed even with the additional staffing recommendations. Quintus Greene said there are vacancies and one was being filled and the department was actively seeking to fill the other openings. He stressed the problem was a competitive pay scale and if the staff were filled with the correct type of individuals, the staffing numbers would be sufficient. On page 1, under City Hall, Commissioner Ensler, asked for further explanation on the $1.2M increase in requested expenses from last year. Mr. Bressner answered the increase was monies shifted to the CRA. The City receives the property tax revenue for the entire City and then transfer funds associated with the CRA and the figures represent the increased development and tax base in the CRA. 11 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 Commissioner Ensler also questioned the increase in park maintenance expenses from $l.4M to $2M. Jody Rivers, Parks Supervisor indicated the increase reflected the ocean rescue operations were moved into parks out of recreation. Mr. Bressner mentioned the other big budget increase for the City Manager's budget was the shift of the Assistant City Manager's salary being paid out of the Utilities Fund and the new Assistant to the City Manager now being paid out of the General Fund. Also an allocation of overtime from user departments into special events to better track overtime services was the explanation for that 75% change, according to Mr. Bressner. He also addressed the increase in the ITS Department reflected the WiFi network for the CRA district. On page 2, General Administration, Commissioner Ensler noted the estimated expenses had gone from $5M up to $12M. Bill Mummert, Finance Director, indicated the estimated expense figure of $12M included depreciation for financial reporting purposes, which is not included for budget purposes. The depreciation figure was $6.6M. Mr. Bressner also pointed out under sewage treatment, the increase is a result of contracting services to the Waste Water Plant. Commissioner Ferguson suggested the change is similar to what happened in Delray. Vice Mayor McCray asked why Customer Relations increased 5.7%. Mr. Mummert responded the increase included a capital outlay for software of $25,000 and the remainder would be wage increases. Peter Wallace, Director of ITS, explained the software would allow customers to call in pay by telephone or credit card. On page 14, Commissioner Ensler questioned the $45,000 for Adelphia Upfront Start Up Costs. Mr. Wallace explained the item reflects construction costs to pay for building fiber costs to enter into city facilities for data transmission lines. On page 17, Commissioner Ensler asked if the capital program for the expansion of the library included books and would the money budgeted be enough to replace books and supply new books for the expansion. Craig Clark, Assistant Library Director, noted books increased this year and subsequent years to fill the additional space being added. He projected an opening day collection would have to be purchased for $20,000 to $40,000. Mr. Mummert clarified last year the budget amount was $130,000. This year the budget amount is $145,000 and the projection for the next year is $160,000 and then $180,000. Mr. Clark remarked the purchase of an opening day collection will assure the shelves are full for the new library. On page 18, Vice Mayor McCray inquired about the quick cut saw under waste water. Mr. Livergood explained it was a special pipe cutter. 12 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 On page 31, Commissioner Ferguson suggested the reimburse expense allowance be cut $10,000. Mr. Mummert explained the figure represents the Commissioner's monthly allowance. Vice Mayor McCray asked if the figure for memberships, $26,500 was realistic. Mr. Bressner felt the figure was accurate On page 94, Commissioner Ferguson noted the current budget shows $454,000 and estimated expenditures only $378,000 with a projection for next year of $418,000. He felt the next year fi~ure should be reduced by approximately $50,000. Attorney Cherof said $50,000 was cut from litigation for land acquisition for the Heart of Boynton project and running well below the anticipated expense. Commissioner Ferguson suggested another $50,000 could be deducted. On page 104, Vice Mayor McCray, questioned why $5,000 was being spent for the K-9 Regional Competition. Interim Chief Immler explained the competition is a training session for all dogs to work together in the field with other departments. On page 105, Vice Mayor McCray inquired about the building improvements for floor coverings and counter top. Interim Chief Immler responded the carpets in the police department have holes and is at least eight years old. The carpet at the range is a safety type carpet for the training area and the counter tops in records would replace a compressed wood type top that is only propped up with 2x4's and has been there more than eight years. On page 113, under regular salaries/wages, Vice Mayor McCray questioned the $2,192 for allowance for wage adjustment. Mr. Mummert explained the item was on each page and reflects the allowance for wage increases for the next year. On page 117, Commissioner Ensler noted in the category Firefighter I, II, III there are 57 and last year shows 70. Fire Chief Bingham responded the early buyout last year decreased the category substantially and were replaced with probationary personnel. Six from the category were promoted to Lieutenants. Commissioner Ensler was confused because the total figures remained about the same and yet new firefighters have been added. Mr. Bressner suggested a comparison from year to year would be helpful. Commissioner Ensler also requested further information on the average wage increase of 15.3% On page 139, Goal No.1, under Strategic Business Focus: Community Involvement, Commissioner Ensler believed was the same as last year and if it had not been accomplished last year, would it be realistic to include it again this year. He thought the effort was started with an outside group. Mr. Greene remarked the work product was not satisfactory and the contract was terminated with the outside group. The project 13 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 was then brought in house and staff shortages have stalled the project. An employee dedicated to the task, being a current planner, could work on the task and complete it depending on any additional duties that would be required. Commissioner Ensler asked a figure be provided for the cost of the outside group. He also inquired if there was an opening on the staff that the rewrite of Land Development Regulations could be accomplished. Mr. Rumpf replied in its entirety, probably not, depending on the work load as the year progresses. Mr. Rumpfs plan was to take the regulations a chapter or topic at a time and do the update. Commissioner Ensler suggested the objective to rewrite the Land Development Regulations be modified to reflect what can realistically be achieved. Mayor Taylor was concerned with the new construction of multi-story buildings and the additional workload and asked if there was one critical new employee should be added to the staff. Mr. Rumpf explained he did not like specialization within his department employees, but preferred well rounded staff to deal with fluctuations in development activity. He felt a Planner II or senior level person would be needed. Mr. Greene added the high rise structures increase the plan review workload and the inspections. Don Johnson, Building Official, said the threshold inspectors are paid for by the owner; however, all inside inspections are done by the City and justifies the request for an additional Building Inspector and Plan Reviewer. Also the chief inspector requested would cover the projects that require all day monitoring of the special inspectors required by the State of Florida. Commissioner McKoy asked how long the staff shortage problem has existed. Mr. Greene answered about a year. He maintained the department is run as a lean operation to be efficient and utilize the staff to the maximum. Commissioner McKoy commented he had heard from developers and private citizens not being able to get what they need from the department and was concerned whether the citizens needs were being met. He felt a year being under staffed should be addressed. Mr. Bressner suggested a mid-year review would be appropriate. If the revenue generated from building permits increases, additional staff may be added as a budget amendment. Commissioner Ensler appreciated Mr. Greene using a lean staff approach and the problems associated with hiring appropriate personnel. However, the rewrite of Land Development Regulations has been the number one objective and has not been accomplished in a timely fashion. He asked the objectives be re-evaluated and a more aggressive approach be undertaken. Mr. Greene reemphasized the major problem is the competitive salary structure. Mr. Johnson related the applicants for the plan review position have been few and those few failed the oral reviewed. Mayor Taylor asked if contractors could be used. Mr. Johnson replied the contractors are also suffering with staffing problems in light of the construction boom and stealing employees from the municipalities. 14 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 On page 140, Commissioner Ensler referred to the objective of revising the Development Review Handbook and Atlas and indicated it was also included last year. Mr. Bressner pointed out the revisions are done every year. On page 197, Commissioner Ensler pointed out there is a General Administration expense of almost $12M. Commissioner Ferguson maintained the figure reflected the depreciation mentioned earlier. He did ask the heading for column two be corrected to 2004/2005 rather than 2005/2006. Commissioner Ensler asked for an explanation of the increase in expense for the sewage treatment to $4M being a 60% increase from last year. Mr. Bressner purported the increase was a result of the rate increase being charged to the City and the pending recycle water issue, which is being financially analyzed at this time. Vice Mayor McCray asked in general if the city budgeted for the increase cost of gasoline. Mr. Livergood responded the last three years usage was calculated and projected forward the price increases. Mr. Bressner added projections were also increased for rate increases from FP&L (Florida Power & Light). On page 265, Commissioner Ferguson requested an explanation of the WC TPA Fee and Adjuster Fee figures. Chuck Magazine, Risk Manager, indicated a number of outside adjustment services are used for worker comp and third party liability that cannot be done in house at this time. On page 294, Commissioner Ensler asked when was the first year of the fire assessment tax. Mr. Bressner replied 2001/2002. Those years are not reflected on the spreadsheet. On page 297, Commissioner Ferguson questioned the traffic control device for $130,000. Mr. Livergood reported the device was a traffic control signal to allow the fire equipment to access Federal Highway. On page 298, Commissioner Ensler requested an explanation for the ending fund balance being $57M in the hole. Mr. Bressner explained the 2009+ are the wish list projects and do not have funding sources at this time. On page 299, Commissioner Ensler noted the Town Square - High School shows $4.5M that should be deleted with the project being taken over by the CRA. Mr. Bressner agreed it may be deleted based on the interlocal agreement being done. Mr. Mummert pointed out there is a CRA reimbursement figure to track as an expense and reimbursement. On page 305, Commissioner Ensler asked if sufficient monies were available to complete the Wilson Center proposed projects. Mr. Bressner said the pool was the wildcard and an assessment is being done on the viability of the pool repairs. Wally Majors, Director 15 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 Recreation and Parks, updated the Commission that the origin of the leak had been found and a vendor was being sought to repair the pool. The fiberglass finish has been chipping away and the industry now uses a cement type finish, such as marcite, which is also being investigated. When these problems have been addressed, then the other improvements would be undertaken such as replacement of the surface of the deck, new lifeguard chairs, handicap lift and aesthetic improvements. Commissioner Ensler inquired if there were any known problems yet to be addressed and approved. Mr. Bressner mentioned the fiberglass replacement. Mr. Livergood added the fiberglass should be removed and replaced. Mr. Majors reported in 1995 the cost to resurface the pool was $55,000. Mr. Livergood indicated it would be very labor intensive to remove the fiberglass surface. Commissioner Ensler felt money should be added in now to take care of the problem. Mr. Bressner agreed and felt the range would be $70,000 to $150,000. Mr. Livergood noted the fiberglass problem was not known when the budget was prepared. Commissioner Ensler questioned if any other enhancements were going to be made. Mr. Majors replied only the spray area which was included. Commissioner Ensler requested a quantitative risk factor the pool would need to be scrapped and totally replaced. According to Mr. Livergood, the pool was sound, the drains were fine along with the filtration system, but cosmetic changes were required. Mayor Taylor was concerned about the length of time it was taking to find the leak. Mr. Majors reported the leak has been found at this point. The challenge has been many vendors build and install pools, but few vendors repair pools, especially the size of the Wilson pool, Mayor Taylor did not support a band aid approach to the repair. Mr. Majors related every effort had been made to have the pool open. Mr. Bressner stressed the cost of an entire new pool would be at least $750,000. Mr. Livergood remarked there was a 10 year warranty on the resurfacing when it was done in 1995, but the company went out of business. Commissioner McKoy inquired about the current status on the pool for use this summer. Mr. Majors pointed out an arrangement had been with the YMCA for any children needing lessons to be transported to the YMCA. Commissioner McKoy asked what the participation has been. Mr. Majors would provide the information. Vice Mayor McCray stressed many of the children in the area do not need lessons, but just want to swim. Commissioner Ensler noted many items in the budget related to the east and west water plant and the transmission lines. Mr. Bressner said a special workshop would be held on the Utility Fund and projects. On page 14, Commissioner Ferguson thought $106,000 for microphones seemed excessive. Vice Mayor McCray felt the system should also go paperless. Mr. Bressner agreed paperless would be easier. Mr. Wallace said several of the microphones were 16 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 bad and the TV monitors were 15 years old. The money was to upgrade the audio and visual and prepare to broadcast Commission meetings. Not appearing in the budget is the $200,000 negotiated with Adelphia to cover the equipment. Approval of the agreement is on the July 19th agenda. Mr. Hawkins explained five years ago the Commission decided to broadcast City Commission meetings. The money is now available to do this project. The equipment in Commission chambers has not been updated since 1988. The $106,000 will explicitly be used to update the current equipment. When the new agreement is signed by Adelphia, the revenues will be available to update the cameras to broadcast Commission meetings in the future. An itemized list is attached to the agenda item. Commissioner Ensler reiterated the budget shows the $106,000 expense in the General Fund, but the revenue has not been added back in at this point. Mr. Mummert agreed the $200,000 grant was not approved when the budget was prepared. Mr. Wallace explained the fiber connection also has be deducted from the $200,000. Mayor Taylor did suggest with the upgrades that portable microphones be installed at the podiums. Mr. Livergood asked in light of the new equipment and cameras should a redesign of the dais be undertaken to accommodate the broadcasting. Mr. Hawkins agreed the design should be evaluated along with the current roofing. Commissioner McKoy pointed out from his perspective, any presentations given on the right side are partially blocked from his view. Mr. Bressner clarified the money being paid by Adelphia/Comcast is actually being paid by the users by an increase in cable bills. It is not a grant, although Adelphia is fronting the money and the FCC allows them to pass through the expense. Comments Commissioner Ferguson felt a revenue increase of 11% should allow for more to be given back to the citizens and the mill rate should be set at 7.4 or possibly 7.3. It equates to $418,000 for 1/10 of a mill. Mr. Bressner added there has been some growth this year in the assessed value city wide and not all of it ended up in the CRA allowing the tax rate to stay at the 7.5%. Vice Mayor McCray believed money had to be pulled last year from the reserve and did not want the practice to continue. Commissioner Ferguson noted the expenses have been cut by $800,000. Mr. Bressner stressed the goal of staff is stewardship and the payoffs are beginning to be realized. Vice Mayor McCray indicated it had been brought up the Building Department was having trouble finding qualified help and the compensation structure should be 17 Minutes Special City Commission Meeting 2005/2006 Budget Workshop Boynton Beach, FL July 12, 2005 addressed. The salary analysis was undertaken to evaluate those concerns according to Mr. Bressner. Mayor Taylor added the discussion has also been to reduce the debt service and storm water fees from $5 to $4 and get by without a utility tax on water. Mr. Bressner noted also those would be a savings to the citizens. Commissioner Ensler believed the decrease in millage should not be done at the expense of increasing the use of reserves. Mayor Taylor suggested the motion be made to keep the rate at 7.5 and it could be reduced at mid year, if possible. All Commissioners agreed with the suggestion. Mr. Bressner indicated the budget approval would be done in September and in the interim the items requested would be provided to the Commission. Attorney Cherof said two public hearings were required. The first hearing would be on September 6th and the second being September 20th. Motion Commissioner Ferguson moved to adopt Resolution 05-120. Vice Mayor McCray seconded the motion. Motion passed unanimously. No further business to come before the Commission, the workshop was adjourned at 4:50 p.m. CIlY OF BOYNTON BEACH ATTEST: c~~) &:ner~ . ~rJ>- Commissioner City J:lerk./O'<l . r} I q "r. :-'c..t~lc "Clc l- uty City Clerk 72205) 18