CC 07/13/2020 Minutes - Budget Workshop

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CASSELBERRY CITY COMMISSION Minutes of July 13, 2020 — Budget workshop Page 2 of 3 4. REVIEW AND DISCUSS PROPOSED BUDGET FOR FISCAL YEAR 2021 Presentation: City Manager Randy Newlon gave a PowerPoint presentation covering in detail the projected revenues and proposed expenditures for the Fiscal Year 2021 City Budget including revenue and expenditure comparisons, personnel related matters, debt service, and proposed capital improvements program projects. The total proposed budget for Fiscal Year 2021 is $81,452,501, representing an overall increase of approximately $8,343,166 or 11.41% over the adopted budget for FY 2020 of $73,109,335. Debt service increased $736,589 primarily due to the start of the Public Works Complex Project and the Advanced Metering Infrastructure (AMI) Project. The proposed budget includes a 3% increase in employee salaries effective January 1, 2021 which would apply to all general employees and directors but would not apply to the City Commission and the City Manager. Sworn officers would receive a 5% increase in accordance with the Police Union contract. Total staffing was increased from 214 to 215 which included 208 full-time and 7 part-time employees. The City Manager requested that the millage rate beset at 3.0519 mills for FY 2021. Discussion: Discussion ensued after the presentation regarding various aspects of the proposed budget and related subjects, including: emergency reserves, fund balance reserves and operating expenses; proposed new Healthy Community Manager position and alternatives for the position title; need for ensuring sufficient funding for Police Department training, equipment and staffing; estimated impact of recession on sales tax revenues; City staffing numbers; concerns about the need for development and redevelopment within the City, both commercial and residential; code enforcement strategies; capital projects, including Public Works compound, Police station and parks projects; utility renovations; current and upcoming development projects and incentives for new development and redevelopment; potential for annexation; sustainability and financial responsibility; Police Department salary increases through collective bargaining agreement and feasibility of proposed 3% salary increases for general employees in light of the current economy and uncertainties due to COVID-19; potential for future re -funding of positions currently on hold; possibility of more information being available about the economic forecast and potential impact of the pandemic on Florida's economy prior to final decision on budget; key performance indicators for each department; potential for creating a customer service survey to measure customer satisfaction and areas for improvement; and proposed millage rate, feasibility of a decrease in the millage rate, and the effect a decrease would have on projected revenues. Commissioner Meadows was in favor of a small reduction in the millage rate setting it at the PCI (Per Capita Income) rate of 2.983 1, and each of the Commissioners expressed support for a reduction in the millage rate to either 3.0000 or something just under that as a positive gesture to the citizens during these difficult times. CONSENSUS: City Commission consensus was to set the tentative millage rate at 2.9990 mills. Mr. Newlon recognized Finance Department staff for their preparation of the proposed budget and also thanked department directors and key staff members for their input. The City Commission will set the tentative millage rate at the July 27, 2020 regular meeting. Once the tentative millage rate is set, the City Commission may reduce the millage rate at the public hearings but cannot exceed the tentative millage rate set at the July 27, 2020 meeting. The first public hearing for the millage rate and budget for Fiscal Year 2021 is scheduled for September 14, 2020. The final public hearing and adoption of the millage rate and budget for Fiscal Year 2021 is scheduled for September 28, 2020.