CC 07/08/2019 Minutes - Budget Workshop

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CASSCLBCRRY CITY COMMISSION Minutes of July 8, 2019 — Budget Workshop Page 2 of 3 3. ROLL CALL The City Clerk called the roll of Elected Officials. All were present. 4. REVIEW AND DISCUSS PROPOSED BUDGET FOR FISCAL YEAR 2020 Presentation: City Manager Randy Newlon gave a PowerPoint presentation covering in detail the projected revenues and proposed expenditures for the Fiscal Year 2020 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 2020 is $72,963,293, representing an overall increase of approximately $20,108,968 or 38% over the adopted budget for FY 2019 of $52,854,325. Debt service increased $519,681 primarily due to the new debt issues to fund the Public Works Complex renovation and the Sausalito Shores Subdivision Wall project, and capital improvements increased $16,159,950 due to the construction of the Public Works complex and the Smart Meter Replacement project. The proposed budget includes a 3% increase in employee salaries effective January 1, 2020 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 208 to 214 which included 207 full-time and 7 part-time employees. The City Manager- requested that the millage rate be set at 3.0519 mills for FY 2020. Discussion: Discussion ensued during the presentation regarding various aspects of the proposed budget and related subjects, including: trends in different revenue sources over past years, including ad valorem taxes; rationale for proposed staff additions and departmental budget increases and decreases; employee health insurance, including premiums and employee contributions; fund balance reserves; capital projects; frequency of receipt of revenues from telecommunications and public services taxes and fluctuations due to seasonal components; proposed purchase of a clam truck for Public Works and related potential advantage and cost savings to the City; budgeting of bad debt expenses; key performance indicators and efforts to quantify staff performance and processes; surplus of equipment proposed to be replaced; debt service deferment; utility rate study; public works compound and smart meters capital projects and debt service; effect of debt service fall- off on expenses; budget projections on capital projects through 2024; sunset of the CRA (Community Redevelopment Agency); diminishing fire consolidation costs; parks initiatives; potential for fluctuations in revenues due to future recessions; Sausalito Shores wall expenditures and recovery of expenses through special assessment; availability of fund reserves based on operating and personal services expenses; mission statement relating to focus on fostering of business startups and expansions; need for the City to remain competitive in attracting new residents and businesses; taxable values in the city and potential for growth; golf course investment; effect of the millage rate on homesteaded, non -homesteaded and commercial properties; comparison of millage rates and tax bases with other cities in Seminole County; the need for the City to remain competitive with other cities regarding incentives for development; and the feasibility of a decrease in the millage rate and the effect a decrease would have on projected revenues. Mayor Glancy was in favor of a small reduction in the millage rate setting it at the PCI (Per Capita Income) rate of 2.9594. No changes to the proposed budget were discussed by the City Commission other than the possibility of a reduction in the millage rate.