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Agenda 05-14-12 The City of Boynton Beach FINANCIAL ADVISORY COMMITTEE MEETING MONDAY, MAY 14, 2012 @ 6:00 P.M. LIBRARY CONFERENCE ROOM A AGENDA THECOMMITTEEMAYONLYCONDUCTPUBLICBUSINESSAFTERAQUORUMHASBEEN ESTABLISHED.IFNOQUORUMISESTABLISHEDWITHINTWENTYMINUTESOFTHENOTICED STARTTIMEOFTHEMEETINGTHECITYCLERKORDESIGNEEWILLSONOTETHEFAILURETO ESTABLISHAQUORUMANDTHEMEETINGSHALLBECONCULDED. COMMITTEEMEMBERSMAY NOTPARTICIPATEFURTHEREVENWHENPURPORTEDLYACTINGINANINFORMALCAPACITY. 1. Call to Order  Should any members not be able to make the meeting; contact Barry Atwood (AtwoodB@bb.fl.us) or (561) 742-6311 by 3 pm Monday as the meeting will be cancelled. 2. Approval of March 26, 2012 Minutes (Copy attached) –  Kindly review in advance of the meeting 3. Distribution and presentation by each Committee member of individual Recommendations  Copy of Recommendation Form attached  Review and vote on each Recommendation (Copies attached) 1. Overtime Pay Policies – Terry Lonergan 2. Non-Compensation Staff Benefits – Terry Lonergan 3. Unpaid Furlough Days – Terry Lonergan 4. City Commission Salaries & Benefits – Terry Lonergan 4. Update by Committee members regarding progress to date of their Assignment Areas  Updated list of Assignment Areas attached 5. Discuss necessary deadlines for individual Assignment Recommendations and Committee voting in order for the Chair to summarize and submit to the City Commission.  The recommended City budget for all funds will be transmitted to the City Commission during the week of July 2-5 6. Adjournment Remaining Financial Advisory Committee meeting dates are scheduled as follows:  Monday, May 21  Monday, Jun 11  Monday, Jun 25 City Commission Budget Workshop Dates (Library Program Room):  Monday, July 16: 2 pm  Tuesday, July 17: 9 am  Wednesday, July 18: 2 pm C:\Documents and Settings\pylej\Local Settings\Temporary Internet Files\OLKAB\Agenda - 05-14-12 (2).doc MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, MARCH 26, 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 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. Approval of March 12, 2012 Minutes Chair Scantlan advised he had a possible change to the minutes. On page three, second paragraph, second sentence, he suggested adding the word "initially" when Ms. Lonergan stated she "felt that there was needless money being spent for a March election." (Chair Scantlan was of the opinion that the word "initially" should be added after the word felt, as to not appear to draw a conclusion.) There was discussion between Ms. Lonergan and Chair Scantlan and it was agreed to add the word initiallv. Motion Mr. Katz moved to approve the minutes as amended. Ms. Lonergan seconded the motion that unanimously passed. 3. Review results of Commission Agenda Item (first of two readings) requesting the Commission to amend the Ordinance creating the Committee Select its own Chair & Vice-Chair Chair Scantlan advised that at the Commission meeting, it was voted that a Vice Chair should be nominated for the Committee. Mr. Katz suggested holding off the nomination until there was a full board. Chair Scantlan asked for volunteers. Meeting Minutes Financial Advisory Committee Boynton Beach, Fl March 26, 2012 Motion Ms. Lonergan moved to nominate Mr. Dougherty for Vice Chair and was seconded by Mr. Katz. The motion passed unanimously. Update Member qualifications for consistency with the Committee Appointment Application Mr. Atwood advised nothing further had to be done. 4. Citizen Survey discussion Only 2 added responses since March 15 Confirm ending the survey on March 31 Chair Scantlan confirmed that two responses were added since the last meeting and barring anything else, the survey would end on March 31. He would provide a summary at that point. 5. Update by Committee members regarding progress to date of their assignment areas (Updated list of assignment areas attached) Mr. Katz advised he had no update to provide. Mr. Dougherty advised he was presenting one item that was completed. Ms. Lonergan advised she had two assignments that were complete. She advised she was able to meet with Julie Oldbury in Human Resources. Ms. Lonergan stated of all the projects she had taken, there was very little money to be saved. Ms. Old bury had stated one area being investigated, but was not for publication, was the discussion of furlough days. It supposedly would save the City $187,000. In the interim, she was meeting with the unions to discuss this and is currently in negotiations. There was discussion on how to present this as a recommendation if the recommendation came from Human Resources. Ms. Lonergan would present the recommendation with a pro and con format, and state that it was pending negotiations with the unions. Chair Scantlan advised the only project he was making progress on was the citizen survey. In addition, he would set up an appointment with the Interim City Manager to review all the redundancy between City and County services. 2 Meeting Minutes Financial Advisory Committee Boynton Beach, FL March 26, 2012 6. Distribution and Presentation by each Committee member of Individual Recommendations (Copy of Recommendation Form Attached) Review and vote on each recommendation Mr. Dougherty recommended that funding continue short-term for the Schoolhouse Children's Museum, which was currently funded at $204,000. This included $120,000 for two senior employees. Last year's recommendation was to reduce funding by 8% and the Commission rejected it. The Museum received a $73,000 Quantum Grant. It was unknown how many additional donations or grants they had received to date. Mr. Dougherty discussed some issues he found in the agreement provided by Craig Clark. The funding of salaries was not included in the agreement. It was included in the budget. It was paid out quarterly. The City also had a line item to maintain the building. Mr. Dougherty's recommendation would be to continue the funding for the museum. Mr. Katz requested that if the survey was going to be referenced for this item, that the amount of responses also be referenced. The responses of the survey so far resulted in 88 out of 141 voting against the Schoolhouse Museum. It was recommended to hold off the vote until next meeting to obtain the remaining survey responses, if any, by the cutoff date and then make the additions on the recommendation form. Ms. Lonergan presented her recommendations on the election topic and City parks. She met with Wally Majors and was informed that no park would be closed. Currently, the City was meeting the green space per capita requirement. Ms. Lonergan recommended no change. Vote The vote passed 4-0. Ms. Lonergan presented her recommendation on the municipal elections. After meeting with Janet Prainito, the City Clerk, it was determined that having the municipal elections in March saved the City money. The cities share the costs of the Municipal elections in March, as opposed to the City having to pay the entire cost in November. Ms. Lonergan's recommendation was to keep the March elections. Ms. Lonergan recommended no change. Vote The vote passed 4-0. 3 Meeting Minutes Financial Advisory Committee Boynton Beach, FL March 26, 2012 Joint workshop with City Commission set for Sat. May 19 7. New Business Comment mentioned by Commissioner Holzman at March 20th Commission meeting Chair Scantlan inadvertently left this item off the agenda and requested it be added as an item under New Business. Motion Ms. Lonergan moved to add Item 7, New Business to the agenda. The motion was seconded and unanimously passed. Chair Scantlan mentioned a comment that Commissioner Holzman made at the Commission meeting relative to this Committee not bringing forward proper information. He stated that the Committee had not gotten into the numbers as much as he thought would happen once the Committee was established. Chair Scantlan requested discussion from the Committee. The study items were developed two years ago from surveying the City employees, by the members of the Committee at the time. It gave the Commissioners the opportunity to add items, if they wished. Chair Scantlan would like to go back to the Commission and ask them what items should be looked at that are not being reviewed presently. The Commission should provide advice on what areas they want reviewed. Mr. Katz was of the opinion that possibly the Commission was looking for bigger chunks of money being saved. For example, if there is a $5 million budget shortfall, the garbage rates could be raised $2.00 a month; that was close to $900,000. Chair Scantlan would like to open that communication channel so the Commission could advise the Committee what they want. There was discussion on different suggestions of where to possibly cut the budget. Last year, the Committee met with each Department head. The direction given last year was to cut 8% across the board, which was done. This year the decision was made when there was a full Board to research items individually, rather than meet with the departments. Chair Scantlan advised the A76 study would not be done this year because it was not a one person job and takes significant effort from City staff. He made a presentation to the Commission and made them aware what the A76 study was, but received zero feedback from them. The members all felt there was a lack of direction from the Commission. Chair Scantlan will contact the Interim City Manager and inquire whether it would be appropriate to query the Commission on what should be looked at and add it as an agenda item. 4 Meeting Minutes Financial Advisory Committee Boynton Beach, FL March 26, 2012 Chair Scantlan commented that at the last Commission meeting he told the Commissioners there would not be a "robust" report. He would give this year's report and invite them to comment or give them an opportunity to attend a meeting and ask questions. It was noted that if another member was not appointed by the Commission before the April 9th meeting, and if the Committee was not dissolved, there would not be a quorum for the April 9th meeting. The meeting would be cancelled. 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 7:02 p.m. Ellie Caruso Recording Secretary 5 CITY OF BOYNTON BEACH Financial Advisory Committee - Issues for Study and Assignment Areas Item # Issue Department Contact Area Initial Responsible Assignment As of 3/26/12 20 D Ernployee Car Allowances & Take Horne Cars City ManaQer Finance David Katz 20 E Ernployee Cell Phone Allowances & City Cell Phone Costs City Manager Finance David Katz 36A All Pension Plans - Ernployee Contribution Finance Finance David Katz 34 Police Pension Plan - InterCity Cornparison of Benefits Finance Discuss with Union Reps David Katz 35 Fire Pension Plan - InterCity Cornparison of Benefits Finance Discuss with Union Reps David Katz 36 General Pension Plan - InterCity Cornparison of Benefits Finance Discuss with Union Reps David Katz 2 Capitallrnprovernent Plan (CIP) Analysis Finance Public Works! Utilities Dennis Dougherty 19 School House Museurn (Cost/Benefit) City Manager Library Dennis Dougherty 20A Irnpact of New LeQislation / LeaQue of Cities City ManaQer Assistant City ManaQer Dennis DouQhertv 31 Public Safety Cornrnunications Hub City Manaaer Police Dennis Douahertv 1 City Services Survey City Manager City Manager Don Scantlan 5 Franchise Solid Waste Services (A-76 Study) City ManaQer Public Works Don Scantlan 6 Make/Buv Other City Services City Manaaer TBD Don Scantlan 14 County/City Services Redundancies City Manager TBD Don Scantlan 17 Paperless BillinQ Finance Finance - Procurernent Don Scantlan 8 City Park Usaae Analvsis City Manaaer Recreation Terrv Loneraan 16 Municipal Election Costs City Manager City Clerk Terry Lonergan 37 Cornpensation PackaQe Analysis Ci V ManaQer Hurnan Resources Terry LonerQan 38 Other Staff Benefits (Non Cornpensation) Ci V ManaQer Hurnan Resources Terry LonerQan 39 Overtirne Pav Policies Ci v Manaaer Hurnan Resources Terry Loneraan 40 Salaries City Manager Hurnan Resources Terry Lonergan 41 Ernployee Leave Benefit Analysis City ManaQer Hurnan Resources Terry LonerQan 42 Unpaid FurlouQh Systern City ManaQer Hurnan Resources Terry LonerQan S:\Finance\Financial Advisory Gommittee\Work Area Topics - Assignments\ / FAG Study Topics for FY 2012-13 Budget (3-26-12 Revision) / By FAG Member (2) Boynton Beach Financial Advisory Committee FY 2012-2013 Budget Recommendation Subject/Topic: City Commission Salaries & Expenses Reviewed By: Terry Lonergan Recommendation (Specific Action Recommended): Eliminate unaccountable expense money allotted to each Commissioner and Mayor. Pros of Recommendation: The City of Boynton Beach seems to compare favorably to Delray Beach in our Pay Plan. Some salaries are higher in Delray than here, the reverse is also true. Our Mayor and Commissioners salaries are each approximately $6,000 per year higher than Delray, not including the expense account. Cons of Recommendation: It has been stated by the former Mayor that doing the City's business costs more than the salary plus expense account. References (Staff, Documents, and Public): Julie Oldbury, Director of Human Resources; Arleen Barton, HR Projects Manager; Delray Beach Pay Plan Impact on 2012/13 Budget: Each Commissioner is given $6,582 annually and the Mayor is given $7,117 annually to spend. Eliminating this will save the city $33,445 per year. Impact on Out Year Budgets: Same Impact on Citizens: Removes the impression of impropriety in regard to fiscal responsibility. Impact on City Staff: None Committee Vote Result: For: ____ Against: ____ Boynton Beach Financial Advisory Committee FY 2012-2013 Budget Recommendation Subject/Topic:Non-Compensation Staff Benefits Reviewed By: Terry Lonergan Recommendation (Specific Action Recommended): Allow City staffers to participate in City activities at the resident rate, whether or not the staffer lives within the City limits. Pros of Recommendation: Any benefit an employee receives in excess of $100 must be reported to the County Ethics Committee. Cons of Recommendation: Addition of non-residents to certain City programs may exclude residents from participating. References (Staff, Documents, and Public):Julie Oldbury, Director of Human Resources Impact on 2012/13 Budget: Minimal. Additional revenue will not be obtained by allowing the resident rate. Impact on Out Year Budgets: Same Impact on Citizens: May exclude some residents from participating in certain activities due to over-crowding. Impact on City Staff: Difference between resident and non-resident rates will not be subject to Ethics Committee Review. Committee Vote Result: For: ____ Against: ____ Boynton Beach Financial Advisory Committee FY 2012-2013 Budget Recommendation Subject/Topic: Overtime Pay Policies Reviewed By: Terry Lonergan Recommendation (Specific Action Recommended): Flexing of schedules is the best way to eliminate overtime pay. Pros of Recommendation: In theory, flex time eliminates the need for overtime pay. Cons of Recommendation: Flex time is not allowed under any police contracts. Blue and White collar do not have provisions for this under their current contract but did tentatively agree to make this change in the upcoming agreement term. : References (Staff, Documents, and Public) Julie Oldbury, Director of Human Resources Impact on 2012/13 Budget: To date, no savings have been realized. Impact on Out Year Budgets: Based on our very "lean" staffing levels, it is unlikely that we will see immediate savings. Impact on Citizens: None. Impact on Staff: When someone is absent, be that flex time, vacation, sick, etc., it requires that someone else be there to fill in the gaps or work overtime to meet production requirements. Committee Vote: For: _____Against: _____ Boynton Beach Financial Advisory Committee FY 2012-2013 Budget Recommendation Subject/Topic: Unpaid Furlough Days Reviewed By: Terry Lonergan Recommendation (Specific Action Recommended): Two (2) furlough days for every City employee in every department. Wages, benefits and terms/conditions of employment are subject to negotiation with each of the bargaining units. Pros of Recommendation: This recommendation could potentially save the city $187,000 if agreed to by each bargaining unit and every employee. The savings would come from wages, which would then have to be broken down by any funds that support wages in the City. Cons of Recommendation: Two (2) unpaid days could possibly create a financial hardship for some employees. Bargaining units may not agree without asking for some other form of compensation. References (Staff, Documents, and Public): Julie Oldbury, Director of Human Resources. Impact on 2012/13 Budget: Potential savings of $187,000. Impact on Out Year Budgets: Same amount, if not more, depending on salaries. Impact on Citizens: Some services may not be available on the furlough days. Impact on City Staff: Possible financial hardship for some employees. Committee Vote Result: For: ____ Against: ____ Executive Summary of Budget Survey Questions 1 &2. Agree to Privacy Policy. The respondent must agree to the privacy policy in order to continue with the survey. There are two questions, because, they are asked once, then if they say no they are asked again to see if they want to agree with the policy or leave the survey. If they answer the second question no, they are exited from the survey. If they answer yes, they are allowed to proceed. Question 3. Residence /Business status. 90.7% (196) respondents maintain a residence in Boynton Beach. 21.7% (47) owned or operated a business in Boynton Beach. Question 4. Years of residence. Most people (189) skipped this question (it was only available to those who answered that they both owned a business and maintained a residence in Boynton Beach). Of those that answered the biggest category (36.8 %) was more than 20 years. Question 5. Years of business operation. Most people (189) skipped this question (it was only available to those who answered that they both owned a business and maintained a residence in Boynton Beach). Of those that answered, the biggest category (47.4 %) was less than 5 years. Question 6. Years of residence. Available to those answered Q3 with option 2 (residence /no business). The distribution of responses to this question were very balanced (in 5 year increments). Only the category 16 -20 years was not within 4% of 20 %. Less than 5 years was the largest category (24.1 %). Question 7. Years of business operation. Available to all regardless of how they answered 03. Only 10 people answered this question. Question 8. Your District. Districts 3 and 4 were virtually tied (29.9% and 31 %) and accounted for 60% of the responses (of the 174 who answered this question). District 2 had the least responses with 16.7 %. Question 9. Your age. 43.7% of the respondents were between the ages of 45 -64. Question 10. Family income. Except for the less than $30,000 response which was 10.3% the other categories were within 3% of 18 %. Question 11. Name address. 68 people provided their home /business address information. Question 12. Your factor to move /own business in Boynton Beach. 80.4% (123) listed Public Safety as Very or Extremely Important. The lowest response for extremely important was cultural factors. The highest response for unimportant was Schools. This question had allowed a narrative response. The responses are categorized in the categorical analysis that follows. Question 13. Options to reduce deficit. 38.8% chose combination of eliminating services and raising property taxes and fees. It should be noted that in the narrative responses allowed to questions 14 & 19, several respondents said reduce waste /improved efficiency should have been a choice. Question 14. What city services would you eliminate /cut. Close rec center and close one or more parks both had 55.2% (74) selections. The lowest selection was eliminate street lighting 10.4% (14). A narrative response was allowed on this question. A categorical analysis of the narrative responses follows at the end of this executive summary. Question 15. Police coverage /response time. 55.3% (84)selected increase property taxes. While this is a 10% spread between the two choices, it could be a tie within the confidence interval of the survey. Question 16. Fire assessment increase. An absolute tie (50 %) for both yes /no. Question 17. Raising taxes /fees. Raising fines (39.6 %) closely followed by rentals (37.8 %) were the top Strongly agree /agree responses with Business tax receipt (25.1 %) getting the most followed by user fees (21.6 %) that disagreed /strongly disagreed. Question 18. Hold increased to cost of living? 63% (96) selected yes. Question 19. This was a narrative question. Categorical analysis follows. Question 20. Schoolhouse Children's Museum. 61.8% (94) selected No to city's $200K annual support. Question 21.Borrow for Old high School renovation. 74.3% (113) selected No.. Categorical analysis of Narrative responses to Questions 12, 14, and 19. I summarized the responses into general categories. The "Other" category was used for responses that did not answer the question. Categorical analysis of responses to Question 12, factors that influenced you to come to Boynton Beach. Comments about effective city government: 5 Comments about issues with survey instrument: 4 Other: 4 Comments about Senior Citizen transportation /daycare issues: 2 Comments about Public Safety: 2 Comments about Home Prices: 1 Comments about Taxes /fees: 1 Categorical analysis of responses to Question 14, which services would you cut? Other: 9 Reduce waste /increase efficiencies: 6 Pay freeze, reduce administration, cut benefits: 4 Reduce benefits to police /fire: 4 Sell property: 4 Across the board reductions:2 Increase traffic fines: 2 Reduce employees in customer service: 2 Turn off lights at parks when not being used. Reduce police coverage in "private" communities Increase beach permit fees Increase penalty for excess residents in rental units Reduce water use at parks Reduce management positions in Police /Fire Turn police dpt over to county sheriff Stop taking fire trucks to grocery stores Raise taxes Close civic center Remove landscaping from medians Reduce fire inspection services Turn parks over to neighborhoods Rely on volunteers for park maintenance Employee furlough Eliminate 1 day of trash pick -up Reduce police /fire coverage /services Eliminate CRA Merge services with other surrounding cities Redevelop older areas with new homes Reduce studies /surveys Categorical analysis of responses to Question 19, Suggestions? Other: 13 Police /Fire Reduce other (non police /fire) city pay /benefits: 14 Reduce police coverage /size of force: 3 Close fire station: 2 Change fire department to volunteer: 2 Reduce fire response times, review all expenses Stop sending fire trucks on medical calls: 2 Put time limit on benefits of spouse of fire person injured /killed on duty Evaluate police /fire making over $100K Turn police dpt over to county sheriff: 3 Turn fire dpt over to county: 2 Reduce police /fire pay /benefits: 10 Do not allow police scheduled for court to also take vacation on same day Turn off police car engines when not needed Institute Police assessment Eliminate citizen patrols Don't have fire dpt respond to every vehicle accident Reduce police /fire budgets Municipal (not Police Fire) Reduce city staff Decrease city maintenance Increase code compliance: 3 Turn PZ &B over to county /reduce PZ &B staff Cut all expenses except fire /police Consolidate city departments Demolish civic center Renovate Old High School into revenue generator: 2 Demolish old high school: 3 Across the board cuts Stop support for Schoolhouse museum Increase bad debt /back taxes collection: Do not sell land, lease to developers Install gps tracking in all city vehicles to monitor use Close parks temporarily Eliminate corruption in government Hiring freeze Compete all contracts Increase Revenue Charge to attend ocean ave events Increase sale tax on restaurants during "season" Increase development impact fees Increase traffic fines and enforcement Metered parking at beach Charge West Boynton residents much more for using city services (library, parks, ...) Increase usage fees for non city residents Tolls for bridges over intercoastal Sell corporate naming rights to parks /city buildings Raise activity fees Raise millage rate /taxes: 5 Charge to ride school buses Reduce costs Once a week trash pick -up: 3 Cut all salaries over $75K: 2 Eliminate waste /increase efficiency: 5 Delay equipment replacement Eliminate (charge more for) take home vehicles /Reduce city vehicles /use: 3 Stop moving old houses and refurbishing them Reduce bulk trash pick -up to once a month Reduce number of holidays for city staff Reduce spending on Wilson pool and Hester center Volunteer Mayor, Commissioners and City Manager Reduce salaries /benefits of Mayor and Commissioners: 2 Reduce training /conference expenses Use low maintenance, native vegetation for city landscaping Eliminate rec /arts programs or find sponsors to fund them: 2 Reduce paper usage Eliminate TV in city hall Eliminate city art projects Reduce library hours Reduce salaries over $250K to $160K Eliminate DROP program: 2 Employee furloughs: 2 Eliminate parks Restructure municipal debt Nonfinancial Make it easier to start new businesses in Boynton Beach Turn over all nonpublic safety over to private sector (except water, sewer). Economic development: 3