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01-26-15 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD IN THE CITY LIBRARY CONFERENCE ROOM "A", 208 S. S BOULEVARD BOYNTON BEACH, FLORIDA ON MONDAY, JANUARY 26,2015, AT 6:00 PRESENT: Steve Grant, Chair Tim Howard, Board Liaison Ed Boulos Delores Schlesselman David Yankovich I. Call to Order Chair Grant called the meeting to order at 6:05 p.m. Roll call established a quorum was present. 111. Other Business • Mandatory Ethics Training Chair Grant and Mr. Yankovich needed to take the Ethics Training and both advised they would stay after the meeting to view the video. • Committee Members' Terms Expiring Mr. Boulos and Chair Grant's terms will expire in June 2015. The City Clerk's Office will send them a letter with an application for reappointment. • Review list of work items members submitted. Mr. Howard thanked the members for submitting their ideas and announced they will be presented to the City Commission on February 17 He requested all look at the list and felt there was some duplication. Item 1, "City Services Survey," and Item 17, "2015 Survey Change from a Budget/Performance Theme," to a "Vision Theme," were recommended to be combined as Item 1. Item 15, "Investigate the Validity of Two (2) of the Overriding Issues expressed in the Comment Section by Respondents from the 2014 Survey", was a review of the two comments. Chair Grant commented they compiled the survey last year, but there were other things they could have looked at. He requested a vote to keep Item 15 on the list and there was consensus to keep the item on the list. Item 2, Funding and the ability to review non-profit grants from the City. The members discussed there are grants the City can apply for that could be used for specific items. This item would be to create a line item for all grant funds, including federal, state, and county grants, plus City funds to grant to non-profits. The FAC would create an application for non-profits requesting monies once the funds are received, and a review procedure for the FAC to follow would be drafted. Mr. Howard noted the FAC would only have the ability to recommend Meeting Minutes Financial Advisory Committee Boynton Beach, Florida January 26, 2014 approval to the City Commission and pointed out that currently, there are no funds available for non-profits. Non-profits approach the City in several formats and often appear before the City Commission who may or may not instruct management to find the funds. The members opted to remove searching for specific grants from this item because the City already has a procedure in place through a Grants Manager. Mr. Howard explained the City receives about $700,000 per year from grants, and they are always for specific purposes. Some grants are competitive, which are based on presentations and a ranking system. Community Development Block Grants (CG) are entitlement grants based on population and other formulas. The State Housing Initiative Partnership (SHIP) program operates in a similar fashion and the City operates within the program guidelines. Mr. Howard explained the City formerly had the PACE program. The program was intact, but it was not funded. They could let businesses know they could apply for it, but the City did not subsidize it. The City provided $54,000 for economic development incentives for the last two years. The maximum amount for a commercial build out was $15,000 and the rent reimbursement maximum was $1,000 a month for 12 months. It was noted the recent brewery application was awarded $100,000 from a Community Development Block Grant. Ms. Schlesselman suggested this item be addressed at budget time. Non-profit needs could be divided into different categories. One category was a loan program and whether they could develop a recommendation for an incentive such as a revolving loan fund. Mr. Howard presumed the FAC would review the fiscal impact on the loan and how it would be paid back. The FAC could target specific industries. This could also be done with environmental conservation programs. Mr. Howard agreed to draft his understanding of the request for the members to review. There was discussion of combining Item 9, "Evaluate Funding for Existing Small Business Incentives and Programs;" Item 10, "Evaluate Funding for Environmental Conservation Incentives and Programs;" Item 11, Exploring and Evaluating the Fiscal Impact of New Small Business Incentives and Programs;` and Item 12, Explore and Evaluate the Fiscal Impact of New Environmental Conservation Incentives and Programs." Mr. Howard was unsure if the intent, for Item 11 was to create a program similar to the economic development program. Ms. Schlesselman was aware what the City had was limited to certain situations. She thought the question would be if they want to provide incentives to small businesses or big box businesses and Mr. Howard inquired if the intent was to attract new businesses or assist existing businesses. Mr. Yankovich noted Delray Beach had planned different areas for different businesses. If the City was planning to do the same, they could get better grants contingent on where the business was located. Mr. Howard reminded all the City Commissioner will review the budget in July at a public meeting. If there are any recommendations that are budget related, the City Commission needs them by the second meeting in June, so they could review them at the workshops. Ms. Schlesselman agreed they would have to say something about its financial impact, and if they had new programs. After discussion, there was agreement to combine Items 9 and 10 as one item and Items 11, 12 as another. 2 Meeting Minutes Financial Advisory Committee Boynton Beach, Florida January 26, 2014 Item 3 was to "Research Unfunded Programs" and Chair Grant spoke about Quantum Park. Item 7 was to "Analyze and Prioritize Unfunded Existing City Programs to Consider for Re- funding." There was agreement to delete Item 3 and keep Item 7. Item 4," Review CRA Vacant Lots and Make Recommendations" was requested by Commissioner McCray. Mr. Howard explained the FAC would make a recommendation regarding the CRA to the City Commission. A City Commissioner, as a CRA member, would bring it to the CRA Board and they would decide whether to instruct CRA staff to review the vacant lots. Item 5, "Audit the City's Credit Card Expenses," and Item 14, "Formal City Budget Review by Financial Advisory Committee per year to Find Alternative Cost Savings" were similar. Mr. Howard explained in order to perform the review for Item 5, someone would have to come into the office during the day and review the statements. After brief discussion, there was agreement to drop Item 5. In reference to Item 14, the City has seven funds, and a suggestion was made to review one fund per year. The Utility fund was a $40 million fund, which ran the plants and administration. The Sanitation Fund had $11 million and the basis of that fund was staffing, removing trash by truck, and billing. The General Fund has normal operations. Mr. Howard explained members could review the current budget to familiarize themselves with the budget. There is UtilitIES Director for the Utility Fund and a Public Works Director that is split between the General Fund and Sanitation. Vehicle maintenance was a separate fund and all else fell in the General Fund. Chair Grant thought they could speak to the directors of each department to determine if there are areas of research to review, ask what they reviewed already and any ideas for the FAC for next year. Mr. Boulos explained part of a directors' duties were to review cost savings. He commented some people have beliefs that override cost savings such as the CRA believing LED lights are good lights and their counterparts at the City disagreed. He thought it would be helpful if the FAC asked what areas they think will develop the most cost savings and were the most pressing. Mr. Howard recommended members contact the City Manager, department heads and the City Commission for ideas. Mr. Boulos inquired what the largest expense in any City Department was and learned personnel comprised 75% to 80% of the budget. Mr. Boulos thought a review of this was within the scope of the FAC. Mr. Howard explained most departments went through this review and lost personnel. The remaining employees absorbed the work. Chair Grant thought they could create a form for City employees to make recommendations for the FAC to review. Mr. Howard commented it would have to be done anonymously, and they tried that before. Anonymous forms will likely be negative and others will not relate; however, they could ask for a recommendation box in City Hall. Mr. Yankovich did not know if they have the manpower to review the responses which could be limited to employees and non-employees. Mr. Howard suggested they consider the viability of having a short employee City survey. Mr. Yankovich favored the idea. It was a review and it set the stage for next year. Revised Item 14 could be to "Discuss with the City Manager, department directors and City Commissioners potential areas of cost savings and add the possibility of starting an employee survey. 3 Meeting Minutes Financial Advisory Committee Boynton Beach, Florida January 26, 2014 Item 6, "Research the Costs of More Public Trash Cans in the Heart of Boynton" would be discussed with the Public Works Director. It was noted the City was trying to revitalize Boynton Beach. Chair Grant explained the Heart of Boynton Plan would remove light industrial and have high rises. Item 8 was to "Prioritize Unfunded City Staff Positions and Previously Cut Staff Positions to Consider Refunding or Reinstarting." Mr. Howard reminded the members most departments lost staff between 2008 and 2010. Since then, they determined how to continue department duties and the duties were reallocated. The positions that were cut did not have to be reinstated. Many departments were combined and evaluated if duplication was occurring, and if they could share. Government had to accept that there may have been personnel that were not needed. Today's needs may be different. Chair Grant inquired if they could have a list of items to discuss in general. After further brief discussion, there was agreement to defer Item 8 and add it as a talking point when they speak with the directors. The members discussed if Item 13, "Green Energy Replacement Systems" would fall under Item 12, and dialogue ensured it would not be the same as Item 12. Item 13 would be to make recommendations about specific programs. Item 16 was "Review the Benefits and Handicaps of the CRA Current 'Guiding and/or Management Structure and Procedures.' " The CA is a different entity established by the City, set up by statute, organized by the City and funded by the City and County. The City also decided last year to extend it for 30 more years. The City Commission establishes the board makeup of the CRA and agreed with its management, structure and budget. There were comments over the last two years from a Commissioner evaluating putting it back under the City's purview as a department and the City Commission said no. They wanted it in its current form. If a Commissioner raised the issue, the other Commissioners would vote whether the City Manager would review it. Mr. Howard commented this item may be outside the scope of the FAC, depending on the intent of the suggestion. Mr. Boulos explained he has a management background, and he sees some disorganization. Mr. Boulos thought the item was too large and recommended it be dropped. Mr. Howard counseled they could make a recommendation to not implement a review. He explained how the CRA was formed and financed. Community Redevelopment Agencies address blighted areas, improve property values and institute development. There was agreement to drop this item, but leave the vacant lots on the list. Mr. Yankovich inquired if there was a way to talk to the City Commission to learn whether any FAC recommendations were instituted and a suggestion was made to invite Commissioners to the meeting. Mr. Howard reiterated one factor that hindered the FAC was the timing of when the recommendations were made. In the past, the recommendations were submitted too late. The City Commission must get the information in June. Members should follow it through the public workshops and if they want to ask questions, they could. Mr. Howard also pointed out that participating in the process would give the members a feel for what the City Commission was focusing on. 4 Meeting Minutes Financial Advisory Committee Boynton Beach, Florida January 26, 2014 Mr. Yankovich inquired what the purpose of the FAC was because it was important to know that the Committee's efforts were not in vain. Mr. Howard suggested they raise this question at the City Commission meeting on February 17 . The next meeting will be held on February 91h. Mr. Howard agreed to have the comments drafted and sent to the members by then. Adjournment Mr. Boulos moved to adjourn. The motion was duly seconded and unanimously passed. The meeting was adjourned at 7:51 p.m. Catherine Cherry Minutes Specialist 020415 5