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Agenda 03-26-12 The City of Boynton Beach FINANCIAL ADVISORY COMMITTEE MEETING MONDAY, MARCH 26, 2012@ 6:00 P.M. LIBRARY CONFERENCE ROOM A AGENDA 1. Call to Order . Should any members not be able to make the meeting; contact Barry Atwood (AtwoodB@bb.fl.us) by 3 pm Monday as the meeting will be cancelled. 2. Approval of March 12, 2012 Minutes (Copy attached) - Kindly review in advance of the meetinQ 3. Review results of the Commission amending the Ordinance creating the Committee to - . Select its own Chair & Vice-Chair . Update Member qualifications for consistency with the Committee Appointment Application 4. Discuss Citizen Survey . Only 2 added responses since March 15 . Confirm ending the Survey on March 31 5. Update by Committee members regarding progress to date of their Assignment Areas (Updated list of Assignment Areas attached) 6. Distribution and presentation by each Committee member of individual Recommendations (Copy of Recommendation Form attached) . Review and vote on each Recommendation . Joint Workshop with City Commission set for Sat. May 19 7. Adjournment Meeting dates April to June 2012 scheduled for second and fourth Mondays of each month: . April 9 & 23 . May 14 (28 is Memorial Day) . Jun 11 & 25 C:\Documents and Settings\pylej\Local Settings\Temporary Internet Files\OLKAB\Agenda - 03-26-12.doc MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, MARCH 12,2012, AT 6:00 P.M., IN THE BOYNTON BEACH CITY LIBRARY, ROOM "A", 208 S. SEACREST BLVD., BOYNTON BEACH, FLORIDA PRESENT: Don Scantlan, Chair Dennis Dougherty David Katz Terry Lonergan Barry Atwood, Finance Director Tim Howard, Deputy Finance Director ABSENT: Jeffrey Fisher 1. Call to Order Chair Scantlan called the meeting to order at 6:00 p.m. Roll call was taken. A quorum was present. 2. Announcement of Committee Member resignation Chair Scantlan announced the resignation of Jeff Fisher. He asked the remaining Board members to advise Mr. Atwood if they would not be attending any future meetings as the remaining Committee members made a quorum. If one person could not attend, the meeting would be cancelled. He asked members to help recruit any additional members with the needed qualifications. 3. Approval of February 27, 2012 Minutes Chair Scantlan advised he had a change to the minutes. On page five, second paragraph, last sentence, delete a different function and add the different roles required for an A7e study. Motion Mr. Katz moved to approve the minutes as amended, Ms. Lonergan seconded the motion that unanimously passed. 4. Review results of Commission Agenda Item (first of two readings) requesting the Commission to amend the Ordinance creating the Committee Meeting Minutes Financial Advisory Committee Boynton Beach, FL March 12, 2012 Select its own Chair & Vice-Chair Update Member qualifications for consistency with the Committee Appointment Application This item was not discussed. 5. Citizen Survey discussion Chair Scantlan advised there was very little progress during the last week. There was discussion on the content and the reasons why the response had not been what had been planned. The survey had two weeks remaining for submittal from residents and would be reevaluated at that time. Chair Scantlan inquired whether the members had ideas on how to generate more interest. Ms. Lonergan advised she had sent emails to people in her community that she had addresses for asking them to go on to the website. She spoke to neighbors and people she knew in Boynton Beach and tried to get the word out that way. Mr. Atwood stated he asked department heads to post a notice. It was also posted on the City website. 6. Update by Committee members regarding progress to date of their assignment areas (Updated list of assignment areas attached) Mr. Katz provided an update on his assignment areas. He advised he met with a member of the Police Department bargaining unit. Out of the four units, they agreed there are things they would like to see happen before giving in on the 2% or 3% increase in pension contribution. It was not the case of being pragmatic, the unit felt enough had been given up and enough had been cut. With regard to the take-home vehicles for the Police, it was the opinion that the "circle" should be drawn closer to the City limits. Currently, an officer was allowed to travel.20 miles outside the City limits. Mr. Katz suggested possibly changing the circle to 5 miles. There was discussion regarding the take home vehicles. New employees do not receive take home vehicles and currently it does not go by rank, but by years of service and other conditions that would be stated in the contract. There was more discussion regarding the options for take-home vehicles. Mr. Katz reported that as far as contracting out sanitation services, if the rates were not competitive, the City could forego the $3M budget transfer which could lower the rates by $7.00 per month. Mr. Katz opined that privatizing sanitation would not be beneficial to the City. Chair Scantlan added that the A76 study was meant to study a competition between public and private entities. It could be added that there would be a franchise that would match the amount of the budget transfer for a certain number of years, so 2 Meeting Minutes Financial Advisory Committee Boynton Beach, Fl March 12, 2012 the playing field would be level between public and private entities. That would be a way to put the issue on the table for discussion. Mr. Katz advised he wanted to remove items 11 and 12, Public Works Services and Utilities Services & Salerrransfer to County. Mr. Dougherty reported that the Schoolhouse Museum recently began the audit and he would provide a report for the next meeting. Chair Scantlan offered to assist by providing the data from the survey for part of his input. Mr. Dougherty advised the legislative session was over and there was nothing to report. There was also nothing to report on the Public Safety Communications Hub topic. In the area of CIP Analysis, there was no update on those issues. Ms. Lonergan advised she met with the City Clerk, Janet Prainito, regarding the municipal elections. Ms. Lonergan felt that there was needless money being spent for a March election. There were 2000 precincts county-wide, with numerous poll workers for a handful of votes. Ms. Prainito advised her that the Supervisor of Elections charged a fee to run an election. If three cities run a March election for $10,000, each City contributes a third. If there were 25 cities, it would be split 25 ways. Most municipalities conduct their elections in March. If the City opts out and moved the election to November, the entire fee would be carried by the City for the November election. The only way to save money would be to pay the poll workers less, which would not be recommended. Ms. Prainito was not in favor of moving the election. The other issue with moving the election to November was that all of the Federal items were first on the ballot followed by the local items. By the time the voters get to the end of the ballot, they either do not finish voting or they just randomly vote. Ms. Lonergan further advised the districts could not be condensed due to the resident per capita requirements. Ms. Lonergan indicated there would be no closing of any parks. According to Mr. Majors, there was also a resident per capita requirement for green space that the City must maintain. Ms. Lonergan had nothing to report on the Pensions and offered to take other topics if needed. Chair Scantlan advised the City surveys are set to wrap up at the end of the month. He also advised the A76 study would most likely not happen this year. There was also no progress on the Make or Buy Other City Services and County Service redundancies. He would make an appointment with the City Manager to start collecting data. He further advised that the Paperless Billing topic was wrapped up. The decision was that it would cost too much money to implement at this time. It would take 5-10 years to 3 Meeting Minutes Financial Advisory Committee Boynton Beach, Fl March 12, 2012 reach a break even point. There was discussion on other ways to save money, possibly eliminating the return envelope that was included with the water bill. 7. Discuss date to request Joint Workshop with City Commission (Thursday, May 12th last year) Last year, the Workshop was held on May 12th. This year, it appeared a Saturday morning was being requested. There has been no confirmation of a decision. Ms. Lonergan advised she would take on the additional assignment areas 37-42 all of which comprised of Compensation, Benefits, and Employee Leave programs. She requested removal of areas 34-36, Pensions. Chair Scantlan would add the presentations for voting on to the agenda for next meeting. 8. Adjournment Motion There being no further business to discuss, Mr. Dougherty moved to adjourn. Ms. Lonergan seconded the motion that unanimously passed. The meeting was adjourned at 6:46 p.m. Ellie Caruso Recording Secretary 4 Boynton Beach financial Advisory Committee fY 2012-2013 Budget Recommendation Subject/Topic: Reviewed By: Recommendation (Specific Action Recommended): Pros of Recommendation: Cons of Recommendation: References (Staff, Documents, and Public): Impact on 2012/13 Budget: Impact on Out Year Budgets: Impact on Citizens: Impact on City Staff: Committee Vote Result: For: _ Against: _ CITY OF BOYNTON BEACH Financial Advisory Committee - Issues for Study and Assignment Areas Item # Issue Department Contact Area Initial Responsible Assignment As of 3/12/12 200 Employee Car Allowances & Take Home Cars City Manager Finance David Katz 20 E Employee Cell Phone Allowances & City Cell Phone Costs City Manager Finance David Katz 36A All Pension Plans - Employee Contribution Finance Finance David Katz 34 Police Pension Plan - InterCity Comparison of Benefits Finance Discuss with Union Reps David Katz 35 Fire Pension Plan - InterCity Comparison of Benefits Finance Discuss with Union Reps David Katz 36 General Pension Plan - InterCity Comparison of Benefits Finance Discuss with Union Reps David Katz 2 Capital Improvement Plan (CIP) Analysis Finance Public Works / Utilities Dennis Dougherty 19 School House Museum (Cost/Benefit) City Manager Library Dennis Dougherty 20A Impact of New Legislation / League of Cities City Manager Assistant City Manager Dennis Dougherty 23 Business Fees/Assessments - Comparison to Other Cities Finance Development-Business Tax Dennis Dougherty 31 Public Safety Communications Hub City Manager Police Dennis Dougherty 1 City Services Survey City Manager City Manager Don Scantlan 5 Franchise Solid Waste Services (A-76 Study) City Manager Public Works Don Scantlan 6 Make/Buy Other City Services City Manager TBD Don Scantlan 14 County/City Services Redundancies City Manager TBD Don Scantlan 17 Paperless Billing Finance Finance - Procurement Don Scantlan 8 City Park Usage Analysis City Manager Recreation Terry Lonergan 16 Municipal Election Costs City Manager City Clerk Terry Lonergan 37 Compensation Package Analysis City Manager Human Resources Terry Lonergan 38 Other Staff Benefits (Non Compensation) City Manager Human Resources Terry Lonergan 39 Overtime Pay Policies City Manager Human Resources Terry Lonergan 40 Salaries City Manager Human Resources Terry Lonergan 41 Employee Leave Benefit Analysis City Manager Human Resources Terry Lonergan 42 Unpaid Furlough System City Manager Human Resources Terry Lonergan 10 Property / Casualty Insurance Costs City Manager Risk Management Not Assigned 11 Public Works Services City Manager Public Works Not Assigned 12 Utilities Services & Sale/Transfer to County City Manager Utilities Not Assigned 13 Development Services City Manager Development Not Assigned 15 Close/Consolidate City Facilities City Manager Public Works / Utilities Not Assigned 20 C Debt & Debt Service F AC Code Finance Not Assigned 21 Analysis of Residential vs. Commercial Tax Base Finance Finance - County Property Appraiser Not Assigned 22 Business License Tax - Competitive Analysis Finance Development-Business Tax Not Assigned 24 Ad Valorem Tax - Historical "Roll Back" Analysus Finance Finance Not Assigned 20 B Financial Condition of the City F AC Code Finance Not Assigned 27 Revenue Streams Generated by Other Cities City Manager Finance Not Assigned 28 Local Sales Tax City Manager Finance Not Assigned 29 Fee for Services With Other Cities City Manager Finance Not Assigned 30 Public Safety Fund (Proforma) Revenues vs. Exp. City Manager Finance Not Assigned 32 Police Services City Manager Police Not Assigned 33 Fire Services City Manager Fire Not Assigned 34 Police Pension Plan - InterCity Comparison of Benefits Finance Human Resources Not Assigned 35 Fire Pension Plan - InterCity Comparison of Benefits Finance Human Resources Not Assigned 36 General Pension Plan - InterCity Comparison of Benefits Finance Human Resources Not Assigned G:\Documents and Settings\pylej\Local Settings\Temporary Internet Files\OLKAB\ / FAG Study Topics for FY 2012-13 Budget (3-12-12 Revision) / By FAG Member (2) Recommendation From Boynton Beach Financial Advisory Committee SubjectlToptc: City Park Usage Anatysls Reviewed By: Terry Lonergan Recommendation (Specific ActIon Recommended): Leave a8 parks .. they are p.....ntIy. Do not change any equipment or anaas of use. We cannot dose any parks because of the "green space per capita" requlrwnent. Pros of Recommendation: The City is Nqulred to have a certain amount of "grwen space" allocated per capita. At this point, we have met our naquftment. Those parks that did not meet the needs of the communllles they served went changed so that members of the neighborhoods could belI8r utilize the park. Cons of Recommendation: There are anaas In the parks that could use some ""fLC". Unfortunately, at this time, there are no funds available. Rerer.nces (Staff, Documents, and PublIc): W8By Majors, 0IJ8cI0.r of CIty parks and Recreation Impact on 2011112 Budget NONE Impact on Out Vear Budgets: .NIMUM Impact on Citizens: While there are ...... In some parks that could use work, all the palb are well maintained and usable. TheN.. no saIIty hazaIds causing concem._ - ---- Impact on City SfaIf: No Impact on cfty .callws , ~ ! Committee Vote Result: For: ~ Against ~ Recommendation From Boynton Beach Financial Advisory Committee SubjectlToplc: MUNICIPAL ELECTION COSTS Reviewed By: TERRY LONERGAN Recommendation (Specific Action Recommended): NO SPECIFIC ACTION RECOMMENDED. MOST ELECTION COSTS ARE MANDATED BY THE SUPERVISOR OF ELECnONS. THE ONLY COSTS WHICH ARE CHANGEABLE ARE THE SALARIES OF THE POLL WORKERS. Pros of Recommendation: LEAVING THE MUNICIPAL ELECTIONS FOR MARCH SAVES THE CITY MONEY BECAUSE THE SUPERVISOR OF ELECTIONS CALCULATES COSTS BASED ON THE NUMBER OF MUNlClPAunES HAVING ELECTIONS AT ONE nME. THE MORE ELCnONS, THE SMALLER THE COST TO THE CITY. IT SEEMS THAT VOTER TURNOUT IS BETTER WHEN MUNICIPAL ISSUES ARE THE ONLY POINT OF INTEREST ON THE BALLOT. IN YEARS WHEN CITY ISSUES WERE ON THE NOVEMBER BALLOT, THE WERE RELlGATED TO THE VERY END OF THE BALLOT WHERE VOTERS LOST INTEREST IN MARKING THEIR CHOICES AND DID NOT RESPOND. Cons of Recommendation: BASED ON VOTER TURNOUT, THE COST PER VOTE IS VERY EXPENSIVE. References (Staff, Documents, and Public): Janet Prainlto, City Clerk Impact on 2011/12 Budget: Impact on Out Year Budgets: Impact on Citizens: Impact on City Staff: Committee Vote Result: For:..:i..- Against ~ Recommendation From Boynton Beach Financial Advisory Committee Budget Year 2012-2013 Subjectffopic: Schoolhouse Children's Museum Reviewed By: Dennis Dougherty Recommendation: Recommend that funding continue in the short term but be continuously monitored and reviewed by the Commission. Current funding is $204,576, $120K of which is for two senior employees. Our previous recommendation to the Commission to reduce funding by 8% was rejected. The Museum is in its infancy regarding current management and organization but is making progress in becoming self-sufficient. They recently obtained a $73,000 Quantum Grant which has given them added credibility. Currently there is an audit under way to evaluate there financial statements to be done over a two year period. I believe at that time (two years) serious consideration should be given to reducing the city's financial support - probably by continuing to provide the building and maintenance but by reducing or eliminating the $120K stipend for the 2 employees. It should be noted that we could find no evidence of the Boynton Cultural Centre's (BBC) responsibility of reporting quarterly to the Commission including all revenues and expenditures. The last agreement has been in force over 2 years (signed Feb 16, 2010). Also regarding the latest agreement (RI0-027) we could not find a copy stipulating the amount the city should contribute to the salaries of BCC employee (4.1). Additionally the BBC bylaws are not updated to reflect changes in the office of Museum Coordinator/Executive Director. Pros of Recommendation: Museum provides a sense of status and accomplishment to the city. It also helps create a vital block along with the library and band shell to the development of the downtown area. Cons of Recommendation: Recent survey conducted by the F AC showed that over 60% of respondents where not in favor of continuing support of this entity for the amount currently budgeted. With continuing losses in property values the city seems to be headed toward additional budget cuts this year and needs to fmd viable targets. References: Did a [mancial analysis through Guidestar (an online organization which gathers and publicizes information about nonprofit organizations) of the Museum - only 2009 tax forms available - which basically supports the organizations need for financial support to continue. Researched and reviewed similar Museums in our area - Boca Children's Museum, Child Science at Sugar Sand Park and others in Davie and West Palm and determined though analysis and meeting with Museum directors that they were pretty much self sufficient although mature, leading me to believe that this is the path we want to continue along - reducing dollar support while ensuring the entity's viability. I Met with Museum Director Amy Hever, Boynton Beach Museum Board Member Craig Clark as well as Boca Raton Children's Museum Director Jane Morrison. Reviewed Boynton Beach financial documents, School House Museum Management Agreements, Boynton Cultural Center Inc. Financials, Financial Audit RFP (audit report is not available at this time). Impact on 2012/13 Budget: Minor additional expense noted in 5 year plan ($206,619 in 2012-13). Impact on Out Year Budgets Similar increases in future years. Impact on Citizens: The School House Museum is seeing an increase in attendance and functionality. It is an important instrument in the continued cultural development of Boynton Beach as well as the efforts toward revitalizing the downtown area. Impact on City Staff: None