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Minutes 06-06-11 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, JUNE 6, 2011 AT 6:00 P.M. AT THE LIBRARY ROOM “A,” BOYNTON BEACH, FLORIDA PRESENT Don Scantlan, Chair Barry Atwood, Finance Director Michael Madalena, Vice Chair Tim Howard, Assistant Finance Director George Feldman Terry Lonergan David Madigan Merline Pamplona William Shulman Jeffrey Fisher, Alternate 1. Call to Order Chair Scantlan called the meeting to order at 6:01 p.m. The recording secretary called the roll. A quorum was present. 2. Approval of Minutes of May 12, 2011 Motion Mr. Shulman moved to defer approval of the minutes. The motion was duly seconded and unanimously passed. 3. Discussion and vote by the FAC on the Pensions recommendation not previously voted on by the Committee. Attached are:  FAC Pensions Recommendation to consider – Mike Madalena  The Segal Company “Review of the City’s Defined Benefit Retirement Plans” November 18, 2010 Vice Chair Madalena reviewed his recommendations and explained his comments are still the same as made to the Commission on May 12, 2011. After reviewing the three pensions the City maintains, which are the General Employees, Firefighters and Police, the total combined unfunded liability for the City is over $88 million with a funding ratio under 75% for the General Employee Pension Plan; under 60% for the Police Plan; and under 65% for the Firefighters’ Plan. 1 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 As it pertained to unfunded liability, pensions are considered minimally distressed with funding ratios of 70% to 89%. A ratio of 50% to 69% is considered moderately distressed, and 50% or less is deemed severely distressed. Vice Chair Madalena’s suggestions were the City engage Segal Company to review the pension assumptions that are built in for the City to fund on an ongoing basis to ensure the City is funding the correct amount going forward. If one reads the Segal Report provided by the Finance Department a few months ago, there were severe losses the three pensions sustained over the last three years which was a reflection of why they are underfunded today. There are a combination of factors, such as investment selection, funding or funding by employee contributions, to consider. The current formula in place for the three pensions does not sustain it for a solid future of growth. There is liability to the City that is growing exponentially each year. The charts Finance had previously provided to the Committee reflected in 2002, all the plans were somewhat stable. There was positive funding in the General Employees’ pension of over $2.8 million but the Police and Firefighters’ plans were still underfunded. Vice Chair Madalena noted the unfunded liability doubled every five years, and nine years later amounted to $88 million for the three plans. The last 10 years were lost years in the market and the only way to make up the difference was by adding more contributions by either the employees or the employer. Vice Chair Madalena recommended Segal evaluate the Cost of Living Adjustment (COLA) based in the pension and make a change to it, and also make a change to the overall calculation for what the future benefit would be for the employees. In that scenario, he acknowledged the plans cannot do anything for existing employees. The change would only apply to future employees. For existing employees who were vested in the plan, they are locked into the guaranteed benefits for the future. For unvested, there could be some changes. He acknowledged there are also Collective Bargaining Agreements. The recommended changes were to immediately end the DROP programs in all three plans effective July 1, 2011. He also recommended the City Commission examine the use of the 175 and 185 monies and how those dollars could be earmarked for funding for Police and Firefighters as to their contributions to the overall pensions. Another recommendation made was to review a conversion from a defined benefit plan to a defined contribution plan and hire an outside consulting firm. Vice Chair Madalena noted the City already engaged one of the firms, which was Sageview Advisors, who were reviewing the Deferred Compensation program in the City. He contacted them to ascertain whether a review of the pensions was within the firm’s purview and they responded it was. He did not think it would be a good idea to engage Segal to review whether making the change from a defined benefit plan to a defined contribution would be best, because their interests lay with a defined benefit 2 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 plan. He thought an independent third party such as Sageview could do an independent analysis to develop a cost for the City. Another recommendation was to frontload funding for the pension obligation at the beginning of the year, as opposed to spreading the payments out over the year and making sure it was part of the 2011/2012 budget. The City was looking for a projection of the total cash flow, which was close to zero until they received the tax revenue. They took half of it in 2010/2011 and will take the other half in 2011/2012 so they will not be charged interest for the delayed payment. This would save approximately $500,000 in 2011/2012. They were a year behind in the past but the City was now current in paying the annual required contribution and recording it as an expense in the proper fiscal year. Vice Chair Madalena explained part of Senate Bill (SB) 1128 that did not pass was the provision to make it mandatory that municipalities convert to a defined contribution plan by January 2012. It did not pass, but the Division of Retirement set up a special committee to monitor all municipal plans to ensure they are not severely underfunded or posed a risk to the indebtedness of the municipality. The percentage of unfunded liability that was acceptable was between 70% to 89%. Vice Chair Madalena reiterated the City was at 75% for General Employees, under 60% for Police, and under 65% for Firefighters. The 20% that was underfunded totaled $16 million; however, he did not know if the City could just write a check for $16 million to bring it up to that level. There was no legal route to break out the additional money. What was being added in was not keeping up with the pace of the ultimate liability down the road. The City would have to either increase the tax base to bring in more revenue or ask the employees to pay more. The amount needed from employees, under the impact of the 2011/2012 budget showed a 2% increase in employee contributions to all three plans would decrease the City’s annual required contribution by $1.116 million. Other savings would come from the possible use of the 175 and 185 monies and $868,000 for the general fund. Discussion followed there needed to be an interpretation on the use of the 175 and 185 monies. Mr. Atwood explained there was an administrative decision, which was not clear. There was a provision that any use of the 175/185 monies for Police and Firefighters had to be used for increased benefits. That was eliminated in SB 1128. If looking at the use of the funds, if they were allowed, they could use up to $1.9 million for Firefighters and about $55,000 for Police. No one had actually tried using the 175 and 185 in this manner. Vice Chair Madalena explained part of Mr. Bressner’s message was the bill was just signed and no one has yet implemented using the funds in this way; however, there are many municipalities considering it. If it has been accomplished by other municipalities, the City should review using the funds to close that gap. A question was posed what would be gained by finding another way to fund the pension and increase the value. Vice Chair Madalena explained that was a question for Segal 3 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 to answer because they do the due diligence on the plan. Segal is not the actuary for the three plans, they are the independent actuary to review the plans. Usually the three Board’s review and recommend potential changes and then the City Commission either approves or disapproves them. Those decisions do not come before the Financial Advisory Committee. The investment firms the Boards engage choose their investment elections, and they can give advice how to invest. The assumptions the plans make, such as the return on investments, periodically are modified. As an example, the Firefighters’ reduced their assumption rate from 7.5% to 7%. That made an impact in a reduction in the City's contribution. They are doing it slowly over five years but it has an impact on next year’s budget. If going to 6%, it would be a lot more, but it depended on how the market performed. Chair Scantlan thought if the Board’s were making the decision to use a lower assumption rate, the employee contributions would have to increase; however, Mr. Atwood explained there was more involved to it. The actual results are determined by the investments. If the assumptions are realized, they have to make up the revenue somewhere else. Changes in benefits of individual plans can have a big effect. The savings, with a reduced assumption rate over five years, has an actuarial impact. Mr. Atwood clarified a certain level of pensions of “x” dollars for assumed years of service, salary levels, and other factors are calculated. The mechanism to get there by the time the employee is ready to retire is determined by the market, contributions by the member and the City and, in the case of Police and Firefighters, by 175 and 185 state monies. It was estimated between all three plans, about 55 employees were in the DROP. A question was posed if the City could affect participating in DROP. Vice Chair Madalena explained the original Senate Bill 1130 stated in the first draft, that for anyone currently in DROP, their employment ended on July 1, 2011. The revision was DROP was unaffected going forward but the original language wanted to cease the program altogether. Instead, they reduced the interest rate from 6.5% on the money accumulating in the DROP account to1.3% going forward, and allowed the individuals to continue. The DROP allows the employee base to collect a pension in a deferred account, which they cannot access until separating from service, while collecting a paycheck. When starting the program in 1998, the theory was to give individuals at a higher pay rate, closer to retirement age, a vehicle to exit the system and hire replacement employees at a reduced pay level. At this point, a decision to continue to pay in the annual required amount for a pension and pay a high salary for five years, or quit the program and have individuals retire at normal retirement age needs to be made. The City can replace the position at a lower rate or eliminate the position altogether. It helps, through attrition, to get to a more manageable number in terms of headcounts for municipalities. 4 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 Mr. Atwood sought clarification if one entered the DROP program and was “retired” while still earning a paycheck, that the City did not have to make the contribution based on the person’s salary. Vice Chair Madalena confirmed Mr. Atwood was correct. The payment one receives as a pensioner goes into a separate account, and when the employee leaves service, they would receive it either via lump sum or it is rolled over to another account. The City saves money for people going into the DROP, but they are paying out the retiree who is still collecting their highest salary and then receiving a benefit five years later. Discussion ensued the pool was bifurcated into two parts. One was for those who retired on a deferred basis and one for those that have not. Chair Scantlan commented if one was still drawing a salary and the plans bifurcate the money into an account obligated to a specific employee for up to five years, when they are ready to retire the employee was already taking benefits in the pool to be allocated to the individual, just as if they retired. He commented the City was not saving money and the retirement plan itself was already feeling the burden of someone not retired having benefits allocated to them. Mr. Atwood responded he was not sure that was a correct statement. Vice Chair Madelana clarified it does not detrimentally impact the pool of funds. The program was a benefit to the City to get an employee to separate from service. Chair Scantlan disagreed and further added the unfunded mandate was larger because people who had not yet retired were taking out of the pool of funds. Vice Chair Madalena offered to explain how the DROP plan worked. Chair Scantlan again expressed his understanding if someone is supposed to be drawing out of the retirement plan and they are not paying retirement and the City is not paying, but they are having funds obligated to them, there was no way interest would cover what was being allocated to them. Vice Chair Madalena explained the unfunded liability was not truly impacted by the DROP. The plans’ liability grew over the last nine years because of the addition of employees the City hired, coupled with terrible investment returns and an annual contribution that was paid late or delayed. When considering all those factors and the true assumptions the plans were working under combined, that was what got the City to the $88 million unfunded liability. Things were working well until after 2002. After that, the plan became undone. There was a huge expansion in special risk with the additional fire stations and officers. It is a benefit to the City but it takes on a larger pension obligation for each member who becomes an employee. It has to be balanced. The City does not want to raise taxes and it has ballooned. A question was posed whether the Mayor and City Commissioners were opposed to raising taxes. The FAC has a goal and was looking at different items. Mr. Atwood explained raising the millage rate one mill would provide about $3 million. 5 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 Further discussion followed that if the intent of the FAC was to find money or create revenue, they needed to check out the mandate. The FAC had looked at both sides of the equation. The millage rate was as much a political decision as it was an economical decision but it was not the function of the FAC. Mr. Atwood explained by keeping the millage rate level, the City reduced the taxes. Chair Scantlan noted they were working on next year's budget. At the last workshop, the City Commission requested the FAC come back with recommendations, but the pension legislation had not been signed at that time. The recommendation was to conduct a study to do the DROP program. There was no specific recommendation to change anything or to contract with any firm. The City already has a contract with Sageview. Segal could look at the assumptions used to ensure the City is provided with the correct annual required contribution. Additionally, by knowing the true rate of returns, they can project the plans forward into the future and conduct a detailed analysis why the City should maintain a defined benefit program. Sageview could do a study to close down the defined benefit program and implement a defined contribution plan. When moving to a defined contribution plan, DROP is eliminated because DROP is only inherent with a defined benefit plan. There is also a hybrid plan. Under the tax codes governments abide by, municipalities have the ability to freeze and/or terminate a defined benefit plan and create a hybrid plan that would take the vested amount inside the plan, which the actuary would provide, and shift the lump sum into a defined contribution plan. Going forward, the City could implement a matching formula. There are many different things that can be reviewed. Some plans can offer savings and result in the annual required contribution that is growing, becoming a more manageable number. The City could decide to have the funding be more the responsibility of the employees as opposed to the employer. That was why private industry was moving to defined contribution plans. The City does not want the burden to balance the budget on a legacy benefit and want to balance it on the services they provide. Motion Vice Chair Madalena explained the motion would be to go to Segal to do a review of the defined benefit plan and the assumptions they are using. The last Segal review was done in November 2010, but it was just a review of the plans, not a review of the assumptions to the plans or adjustments made to its interest rates, funding, and the impact. His motion would be for Segal to bring back various assumptions on the funding ratios of the plans, the annual required contribution of the plans and give the FAC a recommendation to either maintain the plan or close it. Then they would engage 6 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 Sageview to give a recommendation to produce a proposal for the City to move from a defined benefit to a defined contribution plan. Mr. Madigan seconded the motion. Motion Ms. Lonergan moved to allow the audience some time to comment – 10 minutes total time for audience participation. Mr. Madigan seconded the motion that unanimously passed. Toby Athol, Police Department, suggested the FAC attend the pension meetings. The meetings are free, the FAC would not have to pay for the studies, and everything the FAC was asking for was available in black and white. The FAC was wasting a ton money on studies that have probably already been done and if they take the time to attend a meeting, the FAC would receive answers to all their questions. Mr. Athol was asked when the last time a study was done and Mr. Athol responded he was making a general statement and he did not know the exact date. Chair Scantlan commented some of the questions on the table may not be covered at the meeting. How the plan affects the rest of the City would not be discussed at the individual meetings. Mr. Athol responded if the issue was brought up at the meetings, it would be discussed. Christine Roberts , Public Works Department, inquired how much the study would cost. Mr. Atwood responded the last time it was done, it cost $45,000 and the Segal report was paid for by Finance. It was anticipated that if the focus was only on switching from a defined benefit to a defined contribution plan, the study cost would be about $10,000. Sageview was part of Willis who the City had already engaged. The study for the 457 plan was done gratis and that could be thrown on the table. Dean Kinser, Boynton Beach Firefighters’ Local 1891, commented he spent five weeks lobbying and thought realistically, the FAC needed to look at the actuarial impact statements, which would be costly. Because of legislation that has been brought up, the legislation that was not signed will probably be passed into law because the Governor wanted to see more done. Senate Bill 1128 reduced the Firefighters’ Pension by 11.1%. That was in the November 2010 Segal report and all three employee plans will be affected. The benefit of sick, vacation, and overtime can no longer be used in the calculation of average final compensation. The Segal report included that in its report also and what the benefit was worth. Employees were still waiting for the 2010 report to up be updated because it would reflect a reduction in the unfunded liability to the plan due to the 11.1% benefit that is no longer being paid out. Mr. Kinser suggested going back to the prior records and reviewing employees in 1999, 2001 and 2004. In those three years, as contained in the 2006 Segal report, the City offered buyouts. They gave employee “x” with 17 years of service, three years of pension benefits. It assumed the pension benefit would be paid by the employee for 7 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 those three years. The City did that three times due to attrition and reorganization. The liability created by those three buyouts, as contained in the Segal report, cost $1.5 million as noted in the 2003 actuarial report. The Fire Department lost 31 firefighters that did not pay into the pension which equated to 93 years of unfunded liability. It was disclosed with all three buyouts, the plans would need to absorb that money throughout its duration. Mr. Kinser commented the plans could only absorb it if the market was good; however, the benefit was never able to be recouped due to the downfall of the market. He thought the members really needed to consider that specific issue. Mr. Kinser suggested that because of the three years when employees were given pension benefits, it was the reason the plans have so much liability. Mr. Atwood agreed and stated that is what caused the unfunded liability, not the DROP. In 2002, the total unfunded liability was $3 million, and in one year went to $9.9 million. There are 489 pension plans covering General Employees, Police and Firefighters in Florida. As to employee contributions, Boynton Firefighters make the seconded highest contribution. There is a lot to consider and it was difficult to put all plans into one ball. Segal would review the defined benefit side, but it was thought they would have a bias because their contract is to provide the background and support of the plans as they currently exist. Sageview has nothing to do with the City. There would be costs associated with the studies. Discussion followed GRS calculated the costs for each plan to convert from a defined benefit plan to a defined contribution plan. The problem was if all the participants in the plans paid along with the City, and some participants stayed with the defined benefit plan while others went with a defined contribution or visa versa, there would be less people paying into a defined contribution plan and the cost of the defined benefit plan goes up. Unless the plan was terminated and made a hybrid, there would be less participants to payoff the obligation. It is not always a win-win situation with a defined contribution plan. Discussion followed on having the studies done and having a liaison to the firms. Mr. Atwood was designated as the liaison Sageview and Segal for the studies and Vice Chair Madalena was designated to serve as a consultant. Vote There was a vote on Mr. Madalena’s motion for Segal to bring back various assumptions on the funding ratios of the plans, the annual required contribution of the plans and give the FAC a recommendation to either maintain the plan or close it. Then they would engage Sageview to give a recommendation to produce a proposal for the City to move from a defined benefit to a defined contribution plan. The motion passed 6 to 1, (Chair Scantlan dissenting.) 4. Review the attached “Basic Recap by Topic from Joint City Commission/Financial Advisory Committee Meeting of May 12, 2010 8 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 prepared by the City Manager. The following FAC recommendation items are referred back to the Committee for further discussion and follow up: 3. FAC Forestry & Grounds Recommendation - Merline Pamplona Ms. Pamlona had been asked to provide additional information. The information was obtained from the department heads and forwarded to the City Commission. The Financial Advisory Committee was just voting on it. She was unaware the Committee had to vote on it again. Jeff Livergood , Director Public Works and Engineering, explained Departments were asked to make a 10% cut across the board while the FAC was reviewing further cuts. The 10% cut equated to $153,000 which was submitted to the City Commission to review in July. He explained the cuts involved all of the landscape maintenance services, the majority of which were contracted for services for buildings, medians, and the general maintenance they provide. Services were reduced from 44 times per year to 39 per year. Litter will be picked up five less times per year. Fertilization would occur two times instead of three times per year on palms and shrubs and could result in potential nutrient deficiencies. At the workshop, there was a recommendation to convert landscaped medians to grass and to bring back information on the costs incurred to change some landscaping types to reduce maintenance going forward. In the first year, turf would be removed and the irrigation systems changed. there would be an offset in maintenance expenses and there may not be any savings in the first. The department already implemented the changes over the last five years, particularly along Federal Highway because the department has to abide by other requirements such as water reduction. The Department will also eliminate some pesticide applications. Glenda Hall , Manager Forestry and Grounds, explained they have about 250,000 square feet of irrigated sod in the medians. With that much sod, the goal was to remove it and install low maintenance plants. Sod needs overhead irrigation and plant materials would have low volume irrigation. Staff revised what was given to Ms. Pamplona to match the budget. The first recommendation included only the Federal Highway and Congress Avenue roadways because the corridors were all medians. The revised recommendation encompassed what staff would present. Ms. Hall had originally made the recommendation to reduce the services from 48 to 44 and then to 39. She explained the methodology and there was no further discussion. 4. FAC Cell Phone Recommendation - Bill Shulman Mr. Shulman did not make any changes to his original proposal but received a memo from Mr. Bressner to review some of the equipment costs. Mr. Shulman only reviewed the cost of the service. He believed his proposal should be supported. It was not a major savings but he commented $35,000 adds up. The additional information was not so much a change in the recommendation as it was with equipment costs and 9 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 combining plans and using one provider. Chair Scantlan did not think it was an action item on the part of the committee, only a staff action item. 8. FAC Library Recommendation - Merline Pamplona The question posed at the workshop about this recommendation was which hours were the right hours to cut back services. Ms. Pamplona forwarded information with charts and analysis to the City Commission and it was noted this was a staff action item. Ms. Pamplona had nothing to change in the proposal because staff had to determine the time and forward the information to her. 10. FAC Recreation & Parks Recommendation - Merline Pamplona Ms. Pamplona explained Mr. Majors conducted an analysis of fees for summer camp, youth basketball, fees for building rentals, and others. Ms. Pamplona believes Boynton Beach has the lowest fees. She recommended raising some of them to be comparable to other cities. She made a recommendation and the City Commission can decide if there was room for an increase. This was contained in her original proposal. There was brief discussion. Mr. Bressner had been looking at the proposed revenue increases and incorporating some in the new budget. Parking meters at the beach had been under discussion and resurfaced at the workshop. There was no further discussion of this item. 14. FAC Solid Waste Franchise Recommendation — George Feldman Mr. Feldman had not provided anything further and wanted to have one more meeting with staff. The Mayor was pushing for privatization and wanted more information and Mr. Feldman was trying to ascertain exactly what information he wanted. He expressed he believed the Mayor wants a comparison of other cities, the dollar value and information where the transfer of $3 million was going. Chair Scantlan suggested a "Make or Buy" analysis be done to determine if outsourcing can lead to a better outcome or better service. The Government Accounting Office (GAO) A -76 study about competitive sourcing is used when the Federal government considers privatizing services. The FAC would not be able to conduct the study in two months; however, Chair Scantlan explained they were not going to make a recommendation for this year's budget. He noted Commissioner Holzman caught onto the concept that if solid waste funds were transferred to the general fund, then there was a hidden tax. It would be generating a profit on services and it was a concept put forward as to why they should not go to a franchise. They would lose $3 million every year. Another concept was the City was charging too much. It was clarified the cost a company would charge cannot be guaranteed unless put into the contract. Additionally, employees would be lost, but their employment could be written into the contract. It was thought more qualitative and 10 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 quantitative statements should be included as well as how it would affect services such as disaster services. Chair Scantlan explained if using the GAO A-76 study, he was willing to take on the project for next year. As to this year’s budget, the FAC provided as much information as possible. Another recommendation could include selling the service to other cities. Motion Mr. Shulman moved the recommendation be stated as is and be carried over to next year’s operations. The motion was duly seconded and unanimously passed. Ms. Pamplona left the meeting at 7:29 p.m. 20. FAC Pensions Recommendation – Mike Madalena (Only if further action is needed.) There were no new comments regarding this item. 21. FAC Shopper Hopper Recommendation – Terry Lonergan Ms. Pamplona returned at 7:31 p.m. Ms. Lonergan visited the Mae Volen Center to ascertain if this was something that could be undertaken by the Senior Center or just for general information for the City. While there were some stipulations, she did not see why it could not be something undertaken for the senior center. The Mae Volen Center transports passengers over 60 years old, who can register by phone, and must provide contact information such as address, and caregiver name. It is a door-to-door service. It does the same thing the City had. The service area is the southern border of Palm Beach County, north to Hypoluxo Road from the ocean side in the east to the western county border. The Mae Volen Center, has a private car escort service at a fee. It provides everything and fulfills a need to go to the Senior Center. The idea was if the Shopper Hopper was eliminated, an alternative option be provided to individuals who do not drive. This was an item for staff action. the Lori LaVerriere taxi cab service was also a staff action item. , Assistant City Manager, commented staff reviewed all of it and it was a policy decision. If the Shopper Hopper was eliminated staff would alert the public on the new options. At the workshop, the consensus was to eliminate the Shopper Hopper and provide a structured program in its place. 22. FAC Solid Waste Residential Garbage Collection Recommendation – George Feldman Mr. Feldman commented the City Commission wanted more information. A discussion had been held that if garbage collection was reduced to one time a week, individuals with larger families using only one garbage container might have trash on the ground. 11 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 Changing from one size trash receptacle to a larger size container was a large expense and huge undertaking and it was not known if the City was willing to take on that change. Mr. Feldman thought the FAC should stick with the recommendation right now and there was enough information available to make a decision. Discussion turned to if the service was reduced, then the residents may want their fees reduced commensurately. The survey question asked residents if they would rather pay more or receive reduced service. There were many comments received indicating residents only put their garbage curbside once a week anyway. The current garbage cans were 55 gallons. It was also recognized there was nothing to prevent residents from having more than one garbage can, but they would pay extra. Discussion followed if extra garbage was placed on the top of the trash can, the worker would probably dump it. If placed on the side of the receptacle, it is left. There are other options. One option on the Commission agenda for the next night was to return to the four 10-hour workdays and work the trucks for the full 10 hours, reducing staff and equipment. The change would save $196,000 and it was thought the notification costs would be minimal, especially when compared to the savings. Chair Scantlan requested a motion that there is a staff recommendation going forward to the City Commission having the same recommendation as Item 14 had, which is they stand by their current recommendation providing additional information as requested and it be reviewed next year. Motion Ms. Lonergan moved there is a staff recommendation going before the City Commission that they have the same recommendation as item 14 and they stand by the current recommendation. They provided additional information and would look at it next year. Mr. Shulman seconded the motion. 5. Establish date and time of future meeting dates July 11, 2011 was the budget workshop. In response to a question posed, Mr. Atwood responded; historically, the City Commission went through the budget department by department. Ms. LaVerriere would inquire if the City Commission wanted to use the same process as last year. Chair Scantlan’s expressed his understanding the FAC made their recommendations for the year, but as members of the FAC, and for the long-term, the members should try to attend the meetings as much as possible. It will help the process next year. Ms. LaVerriere commented as the City Commission reviews the department budgets, the FAC recommendations are included in what the department recommendations are and then the City Commission makes a policy decision. 12 Meeting Minutes Financial Advisory Committee Boynton Beach, FL June 6, 2011 The budget workshop schedule was noted as follows: ,. July 11 - 1 p.m to 8 p.m. ,. July 12 - 1 p.m. to 5 p.m. , July 12 - 9 a.m. to 5 p.m. if needed. Ms. LaVerriere would reconfirm the schedule. There was discussion there was no need for the FAC to have a meeting beyond that that date. The FAC agreed to continue to meet on Mondays and the next meeting was scheduled for August 1, 2011. The committee could pickup where they left off. 6. Adjournment There being no further business to discuss, the meeting was properly adjourned at 7:55 p.m. C, (lUthtjj}~-t ~UJ/ Catherine Cherry J Recording Secretary 060711 13