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Minutes 07-11-11 Budget MINUTES OF THE SPECIAL CITY COMMISSION BUDGET MEETING, HELD IN THE LIBRARY PROGRAM ROOM, 208 S. SEACREST BOULEVARD, BOYNTON BEACH, ON JULY 11, 2011, FLORIDA, AT 1:00 P.M. PRESENT: Jose Rodriguez, Mayor William Orlove, Vice Mayor Woodrow L. Hay, Commissioner Steven Holzman, Commissioner Marlene Ross, Commissioner Lori LaVerriere, Interim City Manager James Cherof, City Attorney Janet Prainito, City Clerk I. Welcome Mayor Rodriguez called the meeting to order at 1 :06 p.m. He remarked it was going to be a tough year and harder to find opportunities. Most of the Commission had met individually with Finance and the Interim City Manager prior to the meeting. The operating costs continued to rise and had to be controlled. The revenues should be in line with the expenses. Mayor Rodriguez challenged the Commission to be diligent, work hard, think through the challenges and ultimately be accountable to the taxpayers. Mayor Rodriguez announced he would open the meeting for public comment during the last ten to fifteen minutes of each day. Remarks from City Attorney For the benefit of the Commission and the public, Attorney Cherof explained the process. The City Manager's office presents its proposed collective budget in a public setting. It would not be a public meeting, rather a workshop, being a special meeting of the Commission. The budget workshop process can be narrowed, modified and defined. The actual public hearing to adopt the budget would be in September. During this process the Commission would attempt to reach a consensus on issues to provide direction to the City Manager and staff. In reality, the direction is non-binding until the two public hearings occur. II. Budget Overview - Revenues Ms. LaVerriere reviewed the planned agenda. She introduced the new Human Resources Director, Julie Oldbury, from Oakland Park, who possesses both public and private sector experience, including bargaining experience, EOC investigations, employee relations and policy making. 1 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 The budget presented would be for fiscal year 2011/12 beginning October 1, 2011 and ending September 30, 2012. It represents a balance of reduced expenditures and increased revenues based on key policy decisions from the Commission. Focus was placed on the core services of the City to preserve public safety for citizens and businesses, continue to cut expenses with an understanding of continued fiscal stress in a slow economic recovery for fiscal year 2012/13. Non-essential programs and services would need to be suspended or eliminated and staffing costs reduced by position cuts, not filling vacancies and re-organization. All the proposed changes had been effectuated to deliver the proposed budget. For all funds, the Commission would be considering a $155 million budget. The General Fund represents 43%, Utility Fund 21 %, and the Capital Fund 13%. The funding sources include Utility fees representing 18%, property taxes 15%, transfers 14%. The General Fund was proposed at $67.1 million, supported by $22.9 million or 34% from property taxes and transfers of $21 million or 32%. Personnel cost represents 81 % or $54 million, which is not abnormal, since the City is a service organization and the percentage has remained consistent over the past few years. Public safety, consisting of police and fire, requires 69% of the figure or $46 million. Those figures are not inconsistent with other cities because police and fire are the larger departments. Mayor Rodriguez noted the figure had been increasing over the past few years. Barry Atwood, Director of Finance, pointed out each department was tasked with bringing their budget in with an 8% to 10% reduction under the current year. The General Fund, as a whole, had a reduction of 9.97%. The Police Department had cuts of 2.36%, and the Fire Department increased by 8%, for a total increase of 1.89% for public safety. Pension savings City-wide totaled $1.5 million with the General Fund at $1.18 million. The proposed budget was $1.18 million less or 3.78% reduction to $65.9 million. Ms. LaVerriere noted the City Manager's budget went up 15%. With the blending of the Parks Division into Public Works and Forestry and Grounds, the Grants Administrator position was moved into the City Manager's budget, along with the associated costs. The City Hall budget absorbed the Inspector General fee of $152,000 which is not a definitive number at this time. There were savings gained when the property insurance policies were re-bid, saving $100,000 in premium. Mr. Atwood reiterated personnel services consume 81 % of the budget, but pointed out there has been a reduction of 210 employees from fiscal year 2006/07, 61 from the current year. Ms LaVerriere added the 61 employees had left due to the voluntary separation program, layoffs, retirements, or vacant positions. There are 16 full-time employees and four part-time employees that are anticipated layoffs in the proposed budget. Mayor Rodriguez stressed the revenues are back to 2004/05 levels and there 2 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 have been salary increases over those years. The comparison should be in dollars and in the headcount. Mr. Atwood agreed trends were significant. Ms. LaVerriere discussed the current millage rate set at 6.7626. There had been no increase in revenues and, if the same tax rate is maintained, there would be a $4.8 million deficit before any reserve transfers. A revenue stream that can be anticipated from the City Clerk's office by automating lien searches, results in an estimated gain of $250,000. There is an assumption of a 29% increase in the Fire Assessment from $68 to $88 per household to generate additional revenue of $1.45 million. Mr. Atwood emphasized that 4% of the households within the City pay no taxes and 40% pay less than $200 per year in City taxes. The current transfer from the Utility Fund into the General Fund is $4.5 million. The proposed budget assumes an increase to $5 million. There is also the introduction of the traffic safety fund from the red light camera revenue. The estimate is conservative at $250,000. The budget reflects a $2.8 million deficit. Staff recommended the Commission adopt the roll back rate of 7.2 mills to bring in the same amount of ad valorem revenue that is $22.9 million. The projected revenue is $500,000 less than it was in 2004/05. The tax rate was 7.5 mills in 2004/05. With the roll back rate, the budget deficit would be reduced to $1.168 million. The monies could be taken out of the reserves, leaving a balance over the required emergency 10%, of approximately $600,000. The 10% reserve is $6.4 million which is lower than the suggested guidelines. With the millage rate set at 7.4 mills the proposed budget deficit would be $227,000. Mr. Atwood went on to discuss the gross taxable value of $3.7 billion and break down of the various millage rates, and the division of the monies between the Community Redevelopment Agency and the City. The changes in the assessed valuation have greatly impacted the taxable value and taxes paid. The roll back is a tax neutral rate and levies the same amount of taxes on the existing properties. New construction may increase the total slightly. The operating surplus of pure revenues minus pure expenses, without any transfers, in 2005/06, had a gap of $21.2 million and the current budget year's is $8.3 million. The proposed budget for 2011/12 would bring the operating surplus to $7.1 million. Ms. LaVerriere stressed the expenditures have decrease and leveled off. Vice Mayor Orlove confirmed the expenditures were $67.9 million for 2010/11 and $64.7 million for the proposed fiscal budget. Commissioner Hay speculated that if revenues slowly increased and expenditures slowly decreased, it would take several years for a balance to be achieved. There was hope there would be a stabilization of valuations over the next two years. Commissioner Holzman cautioned there was a $20 million gap to close. Mayor Rodriguez projected it would be three to five years before property values stabilize. 3 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 The transfers from other funds have enabled the budget to balance. The current transfer total is $27 million and the proposed budget includes transfers of $21 million. The Capital Fund has no reserve and is no longer available. Other fund transfers will not be available next year as the reserves are depleted. Examples of the increased millage rate impact on the residential properties were reviewed for those with homestead exemptions and those without. In most instances, there would be a decrease in taxes or a minimal increase. The commercial property taxes would rise slightly. The assumptions used the roll back rate. Tony Davidson, Budget Coordinator, showed expenses on a five-year basis for the Fire Department increased, the Police Department remained steady and other non-public safety departments showed a decrease in expenses. There was discussion that the Fire Department increase was the result of the new Fire Station #5, staffing and the EOC. Mayor Rodriguez noted the Fire Department expenses reflect over a $1.5 million increase in the proposed budget. III. Financial Advisory Committee (FAC) Overview Ms. LaVerriere explained there were outstanding issues to be resolved. One issue was the cell phone recommendation that remained unresolved. The elimination of some positions had reduced the cost and may be sufficient. The Forestry and Grounds recommendation was mediated and the concerns of the Commission were addressed and reflected in the proposed budget. The hiring freeze would be continued. A few positions that had been vacant, have been replaced. Ms. LaVerriere would review the list and make recommendations before the final budget. Several of the positions, if filled, would result in a cost savings since the salaries would be less. The Golf Course could continue as is. The Library budget reduction involves less hours of operation. Paperless billing is being evaluated and some changes have been implemented. Reorganization of the Recreation and Parks Department would result in a $400,000 savings in the General Fund budget. The FAC proposed increases in fees to generate $307,000 in additional revenue. Those fee increases would have to be a decision by the Commission. Mr. Atwood recalled discussion regarding an increase in the fee for police officer details to cover the entire cost of wages, Social Security and pension liability. Mayor Rodriguez suggested the fee schedule be addressed separately later in the process. The City and CRA were working on the sale of surplus properties and the land portion would be brought before the Commission in September after appraisals had been completed. The High Ridge Road property has the most value. The Solid Waste franchise issue remained unresolved and the FAC requested they be given another year to further investigate the possible scenarios. The Committee also 4 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 needed more time to fully develop and understand the pension funds and the recent legislative changes. Mr. Atwood added changes would only take effect for new hires and with the approval of collective bargaining units and the recommendation of the three pension boards. Switching from a defined benefit plan to a defined contribution plan can be problematic in future years and having the funds to cover the cost of those who had paid into the defined benefit plan for many years. There are few changes that can be made for existing employees and the benefits. The FAC supported the staff recommendation for the Museum. Vice Mayor Orlove inquired if the Cultural Council had made any determination on funding for the Museum and Craig Clark, Library Director, was unaware of any decision by them. The Cultural Council funding covers about $12,000 of programming. It has no impact on the Library budget. Mr. Clark indicated the Library supports about 50% of the Museum's budget. There was agreement on the elimination of the Shopper Hopper program and identifying alternatives. A line item of $50,000 was allocated for other possible transportation modes. A recommendation had been presented at a previous meeting. The $200,000 savings from eliminating the Shopper Hopper had been calculated in the budget. The car allowance recommendation was for cost sharing and would need to be decided by the Commission. The majority of the take-home cars were for police. IV. Police Department Budget Review Matt Immler, Chief of Police, reported two months of red light camera violations with four lights activated had 1,401 approved violations and 52 rejections. By Statute, the City gets $75 from every violation. Every month there is a flat fee of $4,750 for each camera. Using a 75% collection rate would equate to approximately $20,403 net per camera, per month. It was anticipated 12 cameras would be installed this year. With all cameras working, the possible revenue would be $2.9 million. Legal fees have not been included. Mr. Atwood advised $200,000 of revenue had conservatively been budgeted. The figure could be increased. Vice Mayor Orlove discussed the loss of 19 hours of patrol time to compensate for the loss of the two record technicians and one records supervisor. There would be two record technicians remaining dedicated to the required reporting to the Florida Department of Law Enforcement (FDLE). Vice Mayor Orlove suggested realignment to reduce the loss of patrol time. Chief Immler advised the operating expenses had been reduced to the essential needs and any further reductions have to be personnel. Grant requirements dictate maintaining 164 police officers to retain funding. Automation of services had been implemented to reduce any impact to the citizens using a kiosk for requesting reports or utilizing the web site. Volunteers could be used to maintain some customer service in the lobby. The officers were capable of doing the paperwork and could maintain the integrity of the records system. The maintenance of the FCIC (Florida Crime Information Center) and NCIC (National Crime Information Center) 5 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 systems that are heavily regulated by the Department of Justice and FDLE cannot be done with volunteers. There were five positions and two employees had taken the Voluntary Separation Program. The retention of two of the positions would assist in maintaining the accreditation. On that basis, Commissioner Hay contended the figure should be reassessed. Commissioner Holzman questioned if the impact on the accreditation was known and Chief Immler replied he was not aware of the impact, if any. He would make every effort to ensure the accreditation was maintained. Commissioner Holzman established the grant was initially received in 2009 and the sworn personnel level would have to be maintained through July, 2013. There were 154 sworn officers in 2005 and it increased to 164 officers in 2008. Commissioner Holzman voiced concern about adding personnel to the proposed budget when the revenues were at 2005 levels. He was adamant about supporting Chief Immler's original proposed budget. Commissioner Ross was in favor of adding two record technicians back into the budget and cut in other areas of the budget. She felt confident there would be opportunities for further cuts and consolidations. Public Safety was a priority for Commissioner Ross. She reminded the Commission the budget was just a proposal and not binding. Vice Mayor Orlove clarified he was not asking Chief Immler to increase his budget. He was suggesting the priorities be rearranged. Mayor Rodriguez determined the Police Department had not been accredited until 2001.Chief Immler explained accreditation is an assurance for the public that the Department meets certain standards. The program was initiated by FDLE and over 400 standards were established that every police department should be able to attain to provide adequate law enforcement services. The only financial impact would be the impact on obtaining grants. Chief Immler had been made aware that some business insurances ask if the local police department is accredited when applying for coverage. The number of records clerks had diminished over time from a total of 14 in the early 2000s. Mayor Rodriguez recalled last year's budget that automation had been implemented and the headcounts would not be required. A paperless system had been utilized by the patrol force that diminished the need for the records clerks. Mayor Rodriguez assumed the Chief had evaluated the staffing needs and asked if, in reality, there was more that could be done. Chief Immler indicated if the records clerks were retained, two other civilian personnel would have to be eliminated. Mayor Rodriguez asserted Chief Immler had already determined what was best for the department before making the proposed budget and Chief Immler concurred. Commissioner Hay inquired about the collective bargaining schedule and Chief Immler replied the contract extension was until 2013. 6 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 Vice Mayor Orlove clarified his request for Chief Immler to re-prioritize his budget and reinstate the records clerks, should be viewed in relation to the lost patrol time to be justified. Mayor Rodriguez sought confirmation from Chief Immler that the proposed budget submitted would minimize any possible risk to the City. Chief Immler agreed. Chief Immler understood the concern and explained the records clerks have two functions; first, customer service and second, support of the patrol force in the record keeping capacity. If the two clerks were dedicated solely to the patrol force it would cut the 19 hours lost in half. Chief Immler cautioned, if two other civilian positions were eliminated to offset reinstating the records clerks, a much large problem would be created. Vice Mayor Orlove reiterated his request the two other scenarios should be outlined so the Commission can understand and make an informed decision on the proposed budget. There was consensus for Chief Immler to submit other scenarios. Mayor Rodriguez inquired, if another scenario were approved, the risk for the City and citizens would increase. Chief Immler agreed. Commissioner Ross asked the Chief for the status of the Animal Cruelty Investigator position. Chief Immler explained the Animal Control Unit and budget no longer existed. The Animal Cruelty Investigator was added to the line-up. Ms. LaVerriere interjected there would no longer be kennel operations. The part-time kennel worker was eliminated and no animals would be housed in the shelter. Commissioner Ross stressed the animal unit was unique to the City and she hoped if monies were available the unit could be re-activated. Chief Immler pointed out his budget included elimination of four, Community Service Officers (CSO), resulting in 250 hours of sworn officer time off the street. The loss of a Community Service Officer would be equivalent to the loss of a sworn officer as it would affect the workload. A greater impact on the work load would be to keep a CSO rather than a records clerk. Commissioner Hay commented all department heads were presenting their best estimates to meet the needs of their individual departments. If all the budgets were accepted on that basis, there would be no need to continue the workshop. It was the responsibility of the Commission to listen to the proposals and suggest adjustments that may be possible. Chief Immler emphasized the fact the budget has to be reduced is not a good scenario. V. Fire Department Budget Review Ray Carter, Interim Fire Chief, reported the proposed budget did not meet the City Manager's mandate requiring an 8% to 10% decrease. The proposal did keep the street services and maintain the fire stations and staffing at the current level. An Assistant to the Fire Chief position, a Fire Protection Engineer position, and part-time records clerk in the Fire and Life Safety Division were eliminated. The Fire Marshall 7 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 position was downgraded from a Deputy Chief pay range to the pay range of Division Chief creating some savings. The reason for the increase was three large items had to be budgeted. The previous year pre-funding for all vehicles had been eliminated and all purchase were delayed a year. The pre-funding was inserted into the budget for $514,000. There was also an increase in the pension contribution as required by actuarial studies, based on last year's payroll and increasing by $407,000. The collective bargaining pay raise was included in the budget, per the contract, until a Memorandum of Understanding (MOU) was signed. Commissioner Holzman requested a copy of the original proposed budget that had been submitted. Interim Chief Carter would provide the proposal, but noted the increased insurance cost had been included that did not materialize. The first budget met the mandated reduction level; however, it did not maintain the same service levels. Mayor Rodriguez understood Interim Chief Carter had submitted three separate scenarios. The first was submitted solely to meet the bottom line and Interim Chief Carter was not comfortable with that budget. It included closing two fire stations and eliminating four response units, the layoff of 27 firefighters and elimination of six vacant firefighter positions. Other staff cuts would be necessary with closing two stations. Commissioner Holzman felt the matter should be tabled until all the proposals were before the Commission. Interim Chief Carter responded the first proposal had a decrease in the budget of $1.2 million, almost 8%. It required closing two fire stations and the response time could increase to eight to nine minutes as it was in 2005/06. The second scenario involved closing Fire Station #1, eliminating the two units and 11 positions. The long-range plan when Fire Station #5 was built envisioned closing Fire Station #1. It was before the high-rise buildings were built downtown and the agreements to provide fire protection to Briny Breezes and Ocean Ridge. There were no savings with the proposal because of the increase in pensions, pay raises and increased pre-funding for vehicles. Closing Fire Station #1 would increase response times through the entire system by one to two minutes. Station #1 has 1,600 to 1,800 calls per year. The third scenario was taking one unit out of service at Station #1 and would eliminate the six vacant firefighter positions. There would be an increase in the budget because no active positions would be removed. The previous proposed budgets would all be a savings from the budget given to the Commission. Interim Chief Carter stressed as the number of units decreased, the response time would increase. The current budget would involve filling the six vacant positions that were now being filled by paying overtime. Commissioner Holzman summarized one proposal would be over a $1 million savings. 8 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 Vice Mayor Orlove commented his constituents wanted Police and Fire levels of service maintained. If the Fire Assessment is not increased, there would not be sufficient monies to cover the increase above last year's budget. There has been an increase in population since 2005 and more service has been added to decrease the response time that is critical to the citizens. Commissioner Holzman contended if one unit was eliminated from Fire Station #1 the overtime issue would be resolved. Interim Chief Carter agreed. It was also agreed that by not filling the six vacant positions, no layoffs would be necessary. Commissioner Hay inquired if the pensions were calculated on base payor overtime and personal leave upon retirement. The current plan calculation includes overtime, sick and leave payouts as pensionable wages. At the expiration of the contract the new State law would apply capping it to 300 hours of overtime and no sick time or pay outs. Commissioner Hay agreed the response time should remain as is and did not want to close any fire stations. It would not be cost effective in his view. Commissioner Ross asked if five fire stations were typical for municipalities the size of Boynton Beach. Interim Chief Carter indicated it was typical, but noted there are many factors to the determination. He explained when Station #5 was brought on, the zone for Station #1 was shrunk and the configuration of the Station was changed to not affect the response times. Abiding by the terms of the agreements with Briny Breezes and Ocean Ridge also factored into the configuration. Mayor Rodriguez understood the budget was a difficult task; however the Fire Department budget increased and the Commission was obligated to ask questions and fully investigate the increase. The Captain and Lieutenant levels add a layer of management, have very similar functions and tasks and the obvious increase in pay. There may be some additional administrative tasks that a Captain has over a Lieutenant that could be reassigned and tightened. There is also an entire division that is administrative and finance that could achieve efficiencies by merging with other City departments to keep the focus on fire and safety. The Mayor also saw efficiencies gained if the time between inspections was lengthened requiring fewer support staff. Also the Chief position could absorb the Assistant Chief position by streamlining the administrative responsibilities. Interim Chief Carter responded both the Captain and Lieutenant positions respond to emergency calls. The Captain assumes responsibility when there are multiple units on site and they manage the budget for each of the fire stations and the personnel issues. The pay difference is approximately $3,000 a year. The battalion chiefs manage the entire staff on a day-to-day basis. Their main responsibility is command and control at large operations and large scenes. As the number of inspections required decreases, staff could be decreased; however, the revenue from those inspections would also decrease. The current total revenue is 9 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 $250,000 to $300,000 a year for that Division. The fire inspections also coincide with the Business Tax licenses and give more control to the City. The number of violations and fines may increase, if the time between inspections was increased. In the administrative staff, two and a half positions were eliminated in the proposed budget. Interim Chief Carter knew of no other department that did not have a Deputy Chief to oversee the operation of the entire department because it is the largest duty in the department to bring continuity to the operations. Without a Deputy Chief, each shift would be its own department. Mayor Rodriguez agreed the current structure would not be conducive to eliminating the position. He thought it may be possible, if the administrative division was reduced, Captain and Lieutenant positions downgraded and fewer inspections made, to create a tighter organization, so that the Fire Chief could oversee operations. It was developed the loss of the six vacant fire positions would be a savings of $350,000 to $400,000. The least impact on the response time would be the elimination of the one unit at Fire Station #1 other than the currently proposed budget. Commissioner Holzman appreciated the task assigned to each department to tighten their budgets even if services had to change the smallest amount. Every department had to be as lean as possible. The elimination of six positions without touching one person and saving money appears to be justified. The current non-safety staff is exceptionally busy and they have no support, yet the Fire Department has six vacant positions they wanted to fill. Commissioners Hay and Ross did not want to fill the six vacant positions. CONSENSUS Mayor Rodriguez declared there was consensus to not fill the positions. Ms. LaVerriere confirmed that not filling the six vacant positions would also take one unit out of operation at Fire Station #1. It could affect some response times depending on call locations. Mayor Rodriguez contended an increase in response time of 30 seconds to even one minute more would still be the best response time in the County. Commissioner Hay retracted his decision to not fill the six vacant positions. The increase in response time could negatively impact a person's life. Commissioner Ross drew the analogy the Police were being asked to increase their response time also. Other departments were making tough choices also. Mayor Rodriguez declared there was still consensus to not hire the six vacant positions. Interim Chief Carter would provide as accurate information as he could on response times, units and the budget impact of not filling the six vacant positions. Mayor Rodriguez suggested the money be found elsewhere in the Fire Department budget to replace the six positions. 10 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 Mayor Rodriguez recessed the meeting at 3:59 p.m. Mayor Rodriguez reconvened the meeting at 4:18 p.m. VI Development Budget Review Quintus Greene, Director of Development, gave an overview of his Department and advised the goal was to improve the quality of life for the citizens by providing quality professional services, enhanced physical environment and promote economic development. There are three divisions. The Building Division issues building permits and conducts inspections. It is a public safety arm of the Department and City. There is a Planning Division and a Community Improvement Division. Business Tax is a sub- unit and a revenue generator. Personnel costs cover 93% of the budget with only 7% operational. Of the City's General Fund budget, the Development Department contributes approximately 3.84% and consumes approximately 3.77% of the budget. Economic changes have forced the Department to downsize and it is currently one-third smaller than three years ago due to attrition, layoffs and voluntary separation programs. There are no administrative assistants in the Department. The Application Technicians and Application Associates have been consolidated and cross trained. The customer comment cards reveal the Department is consistently running 95% or better in quality of service. Mayor Rodriguez asked Mr. Greene for his plan to improve the City and incent business owners and home buyers to the City of Boynton Beach. Mr. Greene replied a full blown business retention program was paramount in his opinion. It is a public and private effort to meet the needs outlined by the business community. The private sector has not cooperated and has delayed the implementation of a complete business retention program. The Chamber of Commerce specifically has not cooperated. The Code does include incentives in the Planned Industrial Districts (PID) allowing the City to waive permit fees and incentives for an upfront benefit. There is a fundamental conflict with the CRA incentives that confuses the responsibilities of the City Manager and City Commission with the CRA Board that makes it unworkable. A revision of the Code is being accomplished for submission to the Commission. Mr. Greene contended a more aggressive marketing program would be advisable. He was not sure the in-house resources would enable the program to be as aggressive as needed. There is no staff dedicated to the marketing effort. A plan of action was being prepared. Mayor Rodriguez felt the plan should have been developed earlier in the recession. Vice Mayor Orlove recalled the action plan had been discussed at the regular Commission meetings and not a part of budget workshop. Mayor Rodriguez disagreed because he felt dollars should be allocated for economic development purposes in the 11 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 proposed budget. Vice Mayor Orlove pointed out the CRA did have a marketing director. Code issues had to be resolved that would not require funding, only personnel resou rces. Mr. Greene commented there should be funds allocated specifically to market the City on a broader scale. His Department was attempted to work within the budget constraints. Code issues could be addressed and working with individual businesses to offer current incentive programs could be done. Mayor Rodriguez alleged it was imperative for Mr. Greene to ask for what he needed to be successful and let the Commission decide the allocations. There needed to be planning on how to assist the City that is struggling. Commissioner Holzman recalled, a month ago, Vice Mayor Orlove had requested a plan and the assumption was it would be included in the budget discussions. Commissioner Holzman was very concerned the plan had not been created and presented. Mr. Greene indicated it would be presented August 2nd. Vice Mayor Orlove clarified he did not intend the plan be presented during the budget hearings, just a reference document. It would also involve working with other agencies in the County. Many things are not money related to be discussed within the budget. Ms. LaVerriere questioned if the outline being presented on August 2nd would include any request for incentive funding for the proposed budget and Mr. Greene felt it could. Commissioner Ross added the Business Development Board of Palm Beach County and the Economic Council of Palm Beach County would be key players as well as the Chamber of Commerce. There was a good working relationship with all the organizations according to Mr. Greene. Commissioner Hay inquired if there was any leverage that could be utilized to assist Mr. Greene in his efforts. There was agreement Mr. Greene would provide a plan by August 2nd. VII. Public Works/Engineering Budget Review Jeff Livergood, Director of Public Works and Engineering, announced Andrew Mack was the City's Building Official and also serving half time as an Engineer in the Engineering Department. Department boundaries were erased and staff was being shared across Department lines to more fully utilize the expertise available. Mr. Livergood advised within the divisions of Public Works, 7.5 positions would be lost through retirement, voluntary separation and one potential layoff out of approximately 113 total employees. The requested reduction was met overall. The Engineering Division was down over 20% because the development and capital project load was not as significant over the past several years. 12 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 The Streets Division and Forestry and Grounds Division have budgets that are not personnel intensive. The Solid Waste Division was returning to a four day schedule allowing for the reduction of two staff members and sale of five trucks to offer a better service level to the public. The most noticeable change for the citizens would be the reduced maintenance levels for the medians, resulting in a $153,600 savings in the Forestry and Grounds Division. The cut is made with optimism that the plantings can be retained for another couple years. The contract services would go from 44 to 39 services per year. It would be roughly $35,000 to $40,000 to put the pruning back into the budget. Vice Mayor Orlove thought it did have an impact on the appearance, especially those palms that are not self-pruning. There was a time Public Works would mow and maintain vacant lots. Three or four years ago, that function was no longer undertaken by any staff. It was built into the Code Compliance budget as it related to private lots. The City lots are maintained by staff. Ms. LaVerriere interjected that in 2009 there had been $40,000 allocated for contractors to clean up lots. The program was funded for one year and was then eliminated. The expense was $17,000 for the year. Mayor Rodriguez added the Community Redevelopment Agency (CRA) had funding to clean up the northeast quadrant. The Fleet Maintenance Division has very few reductions. Staff cannot be reduced unless there is less fleet, a function of all other departments. The price of fuel has to be constantly monitored. The Parks Maintenance, Forestry and Grounds and Facility and Streets Divisions would be combined under one division called Building and Grounds; like functions should be working together. The long range plan was to educate the employees they have an obligation to complete all functions at one site. Vice Mayor Orlove commented the public would continue to receive the same level of service even though the garbage pickup days would be changing for some. He also emphasized the grounds of the Little League field would continue to be maintained. Mr Livergood recalled the agreement with the Little League organization to eventually take over all maintenance of the Little League complex; however, the organization has again asked for the City's assistance. An option would be to have City staff maintain the fields, if there was sufficient staff to complete the task regularly. Another option would be to agree to give the Little League funding toward their maintenance of the field and give them full control over the standard of maintenance and use. Vice Mayor Orlove suggested the Public Works budget be restructured to include the $20,000 without increasing the proposed budget. Ms. LaVerriere commented the Public Works Department had exceeded their 8% to 10% cut by creating improved efficiencies that would continue over the years. Mr. Livergood was unsure the budget could be modified to accommodate the $20,000. Commissioner Ross agreed. Mayor Rodriguez was unsure and questioned what had 13 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 happened with regard to the previous agreement. Mr. Majors believed the Little League organization found their early projections for fund raising and participation was not as successful as they had anticipated. Mayor Rodriguez disclosed he had received emails supporting the contribution and others cautioning the use of the money may be inappropriate. He asked if there was any accountability required for the funding previously given. Mr. Majors replied comprehensive financial records were supplied and appeared accurate. The City is the land owner and the Little League cannot do anything without City permission. They have exclusive rights to the use and want to have a year-around program. The City wanted to shut the fields down for four to six weeks during the winter to rest the sod. The total operating costs was not known and the Mayor requested the information be obtained. Vice Mayor Orlove understood the Little League had done some other improvements on the property. It does have some civic pride and is the only ball field utilized within the City outside of Caloosa Park. Maybe some working relationship could be negotiated. Vice Mayor Orlove had received no emails in opposition to the funding. The cost to maintain the ball fields would be $30,000 to $40,000. If the Little League organization turns the field over, the City would have to maintain the fields for the City's programs and the Little League would not be using the fields as much. Mr. Livergood did not recommend the City take over the maintenance and the fields. The only participation should be financially. Commissioner Holzman had received many phone calls from both sides of the issue. Mayor Rodriguez stressed the PAL program funding had been eliminated due to economic concerns. He did support the Little League. More information was needed to assess the organization. Mr. Livergood advised he would decrease the median maintenance to whatever was necessary to balance the budget. Commissioner Ross questioned the decrease in staffing in Public Works. Mr. Livergood agreed the figures reflected a decrease of 18 employees since the year 2000. With the change in garbage collection, the remaining employees would have to work a longer day. VIII. Utilities Kofi Boateng, Director of Utilities, advised the overall budget shows a slight increase despite efforts of cutting personnel and other areas. The increase reflects changes in the wastewater plant and contributions to the General Fund. The revenues are $38 million for an increase of $3 million over previous years. Typically the increase would be used for replacement and renewal of the facilities and infrastructure. The utility programs are mandated by Federal and State laws to safeguard the health and safety of the public and user fees should cover the cost. The staff level must be maintained to 14 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 meet the regulatory requirements. Slow responses to a sewer spill or water main repairs can pose a health risk. Mayor Rodriguez inquired about the three employees who had not met the testing requirements. Barb Conboy, Administrative and Finance Manager, reported one left with the Voluntary Separation Program and the other two were placed in demoted positions and two others were promoted. Michael Low, Deputy Director of Operations, clarified the two individuals were on leave without pay until the new positions became available. The other position would have to be filled because State regulations dictate a person with the appropriate license must be in charge of the work being done. It would be at a lower rate of pay. Mr. Boateng advised one Deputy Director and two managers had left and several positions were held as part of the Voluntary Separation Program. Commissioner Holzman asked if the work being done in the Forest Park area would be completed during this budget year. Ms. LaVerriere explained an agenda item was being prepared for completion of the design for the expanded scope of the project. The design work would be completed in 90 days. It could then go out for bid with the work commencing early next year. Mr. Low added there would have to be a parallel Request for Qualifications (RFQ) for construction management because of the size of the project. Ms. LaVerriere noted the construction expenses would come out of the Capital Fund and are not budgeted. It would be covered with the $20 million bond issue to be requested for utility projects. The Seacrest Project would consume $13 million of the bond funding. Mr. Boateng explained the water services in the area would be improved and enhanced drainage. The design would determine the specific street sections that would be improved. Mr. Low explained very old, two-inch, galvanized water mains were being moved from the rear easements to the front and old asbestos cement lines, too close to the surface replaced. Commissioner Holzman recognized there was a need to get the project done as soon as possible and ensure it happens this budget year. IX. Recreation and Parks Wally Majors, Recreation and Parks Director, reported the Recreation Division reduced their budget by 11.13%. There was an increase to move the Ocean Rescue section from the Parks Division into the Recreation Division. The Ocean Rescue Division was reduced by 8.8% that equated to the loss of one lifeguard. Both Mr. Majors and the Ocean Rescue Chief felt a safe beach could be maintained at the staffing level. In the Recreation Division, two Recreation supervisors would be lost, one Administrative Associate and .83 part-time hours, reducing operating expenses by $71,000. Also in Ocean Rescue .35 of a part-time parking attendant position was eliminated. The hours in some facilities would have to be reduced. The use of the facilities had been analyzed and the Hester Center, Sims Center and the Senior Center would be affected. The annual cost to operate the Art Center was $23,000, but the facility 15 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 generated over $162,000 in revenue. The Civic Center cost $25,000 to operate and generates $120,000 in revenue. The two buildings are heavy with programs. The fees are reviewed every year and accreditation assures the facilities are operating as efficiently and effectively as possible. Ultimately, the accreditation validates the operation of the Recreation and Parks Department through a neutral review process. Vice Mayor Orlove inquired if the reduction in hours of operation at facilities would affect the times the buildings could be rented. Mr. Majors indicated the reduced hours would generally not be times when facilities would be rented. The rental cost is established to cover the cost of staff. A for-profit organization would pay the full fee for staff and overtime. A local non-profit rate is reduced to the hourly cost of staff only. Mr. Majors opined the fees charged were reasonable, fair and attractive price-wise. Most of the fees for programs have been increased over the last few years. There is a team established that reviews the fees each year. In some instances the fees are lower than other cities. The fees have been raised only incrementally rather than a huge increase. The quality of the programs is high and the fees are increased gradually. There are still waiting lists for the day camps. The deletion of the Shopper Hopper program would not affect any after-care school programs or Senior Center activities. Mr. Majors noted the Recreation staff would have to become drivers and the transportation cost would increase slightly. Two full-size buses would be available and two or three vans. Ms. LaVerriere stressed the revenue from the transportation would go into the General Fund rather than the transportation fund that is now zero. The revenue is the Local Option Gas Tax. The Shopper Hopper was not funded in the proposed budget. X. Library Craig Clark, Library Director, advised the Library budget was cut by 8%. There were 3.5 positions eliminated, two of which are vacant, full-time positions. There would be one full-time and one part-time layoff. The hours of operations would be cut from 54 to 48 hours for a savings of $179,462 that includes some operating budget reductions. The impact on Library services would be a delay in some children's programming, The loss of the teen librarian had resulted in the teen program reducing by 90% and circulations decreased by 8.5%. The teen librarian was good at getting the kids involved. There were teen reading groups and teen specific programming that is now being done. Cutting back the hours also created fewer public computer slots for individuals. A color copier would not be available for public use. The staffing level went from 22 full-time positions to 19 and 15 part-time positions to 14. A two-week analysis of the hour-by-hour activities at the Library was done. The first week the children were in school and the second week they were out of school. There was a continuous pattern of use throughout the day. The beginning of the day has a spike in children's program and computer use. There is a slight decrease around lunch 16 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 time with another spike after lunch. In June there were 30,877 customers. The staff shows a steady pattern of use throughout the day. Commissioner Holzman asked Mr. Clark for his conclusions based on the study. Mr. Clark recommended the hours be cut and the Commission had voiced some concern. The analysis supported the recommendation made. Vice Mayor Orlove contended the Library should be available for those working individuals who need the computer time and Library services after work hours. He suggested opening at 10 a.m. and closing at 8 p.m. Commissioner Holzman agreed it would be prudent. Mr. Clark noted changing hours on Saturdays would create a difficult staffing issue. Half of the staff works four ten-hour days and the other half works five eight-hour days to cover Saturday. Saturday saw more family participation. Mr. Clark did agree with the 10 a.m. to 8 p.m. hours. The police coverage of 16 hours per week would not be impacted by the change in hours. It is a necessity to have police present and patrol inside and outside the Library. Commissioner Hay inquired if changes in fees had been considered. Mr. Clark had considered raising the late fee from 10 cents to 15 cents a day to raise approximately $9,000 for the General Fund. The membership fees in the budget provide the Archivist with information on genealogy and history including newsletters that are available to the public. Vice Mayor Orlove suggested an adopt-a-membership program be initiated. Last year 40 magazine subscriptions were adopted. There are only 17 adopted for the new year. Mayor Rodriguez opened the budget for public comment. Herb Suss, 1711 Wood Fern Drive, commented the current government structure is impacting all citizens. Mr. Suss contended the Director of Development position should be eliminated since the development in the City was minimal. He also alleged the prior cut in the millage rate created significant problems for the current budget. Mr. Suss thought the millage rate should be 7.5 mills and no lower than 7.4. The Commission had a responsibility to keep the level of City services with sufficient staff to maintain the quality of life. He understood some cuts were necessary. Cutting back on fire rescue and safety was not a good decision and the Fire assessment could be increased. No one else coming forward, Mayor Rodriguez closed public comment. Mayor Rodriguez noted, for the record, the millage rate from 2008 had been increasing, not decreasing; contrary to Mr. Suss's remarks. Mayor Rodriguez summarized the discussions that the hiring of the six firefighters was the only savings found in the proposed budget. The roll back rate, as presented, created a $1.2 million gap. Ms. LaVerriere stated were a few added savings that she 17 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 11, 2011 would be presenting and the cost sharing of CRA policing. There was also the change in the traffic safety fund revenues to be increased by $100,000. Commissioner Holzman cautioned the traffic safety monies could be eliminated by legislation and should not be taken for granted. It was decided brief discussions with all departments would be heard. XI. Adjournment Mayor Rodriguez adjourned the meeting at 6:03 p.m. CITY OF BOYNTON BEACH L ~ ATTEST: /I . love, Vice Mayor c.:-- . 7722-.~ Marlene Ross, Commissioner ith A. Pyle, CMC puty City Clerk 18