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HomeMy WebLinkAboutMinutes 06-27-2008 CITIZENS’ BUDGET COMMITTEE Meeting Date: June 27, 2008 Conference Room 3 Meeting convened at 7:35 a.m. MEMBERS PRESENT: Carl Hensley, Chairman Jeremiah Johnson Edward Lounds Craig Mundt Nathaniel “Nate” Wells Bill Casey Chris Dzadovsky Richard Pancoast Jay L. McBee Randy Ezell Steven Messer (7:37) MEMBERS ABSENT: Michael McKinnon Barry Schrader Thomas Hickey Patricia “Pat” Ferrick OTHERS PRESENT: Doug Anderson Faye Outlaw Marie Gouin Jennifer Hill Kathryn Hensley Erick Gill Mark Godwin Michelle Franklin Bill Hammer Shane DeWitt Beth Ryder CALL TO ORDER Mr. Hensley called the meeting to order. APPROVAL OF MINUTES Mr. Hensley pointed out a zero missing from the number in the beginning of the fifth paragraph of page three of the May 16, 2008 minutes. Mr. Lounds made a motion to accept the minutes with the correction. It was seconded by Mr. Mundt and unanimously approved by the Committee. Citizens’ Budget Committee June 27, 2008 Page 2 BUDGET UPDATE – DOUG ANDERSON Mr. Anderson showed the group a PowerPoint presentation (see attached) showing the current information for the 2008-2009 budget. Mr. Anderson has taken over the negotiations with the union. He is holding steadfast for no increase. No County employee or Constitutional office employee will get an increase in pay. Mr. Dzadovsky asked about employees leaving critical positions. Mr. Anderson answered there could be. Mr. Hensley asked what percent of total employees the reduction represents. Mr. Anderson answered with the reduction and frozen positions the County is down approximately 28% and expects to lose 1/3 by the end of the process. A $500,000 reserve has been set up in case we have to hire someone for a critical position. The cost of unemployment has been deducted from the savings to the County. Mr. Anderson was surprised that at least 90% of the employees taking the early retirement are taking the money instead of the insurance. Many are leaving the state. Financially, it is the best thing for the County. Mr. Mundt asked the amounts of the buyout. Mr. Anderson explained single coverage is about $32,000 and family is sixty some thousand. The money was taken out of cash carry forward from all the frozen positions. The Sheriff’s budget does not include the $2,168,000 increase requested. If the clinic is opened, it will save a lot of money. Mr. Anderson is meeting with every department director to get a better estimate on cash forward. He thinks the number will go up. He wants the 2009-2010 budget balanced by the end of the year. There will be one or two more phases of staff reorganization reduction. Some positions will be reclassified in the summer. If the budget is not balanced in September or October, they will look at a blue- collar layoff. After the July budget meetings, there will be meetings with the County employees to tell them where things stand. Mr. Anderson will explain the numbers. Mr. Lounds asked about hiring back key employees. Mr. Anderson explained the Board approved the retirement policy allowing them to contract with an employee for specific services at a reduced rate, no fringe benefits. They can enter a Specialist Agreement for specific services for a specific period of time. Mr. McBee asked if they have intentions of doing that. Mr. Anderson explained they might have to do some, to get projects done. Mr. Lounds asked about Judicial agencies hiring their own maintenance personnel. Mr. Anderson answered the County tries to maintain responsibility for County buildings. Mr. Lounds asked about the Jail having a full time hired maintenance person. Mr. Anderson answered that we do. TAX WATCH – DOUG ANDERSON Citizens’ Budget Committee June 27, 2008 Page 3 Mr. Anderson explained the copies of a report given to the members (see attached). Every County department went through the report compiled by the Florida Tax Watch. Each department marked what they have done or what is not applicable. They are looking for areas to become more efficient. Mr. Lounds suggested departments should purge their mailing list. He gave an example of a person receiving four notices for the same thing. Three days later he got two more. Mr. Mundt said that two items on the Board of Adjustment agenda were improperly noticed so they now have to advertise again in the paper and resend the notices. Mr. Anderson suggested the Committee have a department head or two come to the meetings and go over suggestions to improve. Mr. Wells asked about rehiring to fill positions. Mr. Anderson said the positions would not be filled. Operations are being consolidated. He gave examples of the few open positions. They will try to promote from within for key positions. There are tuition and training programs. Facilities may have to be temporarily closed if staff is not available. Mr. Johnson said there would be potential for people to cross train and move up. Mr. Anderson said the older people leaving would provide opportunities for the younger people. Mr. Lounds said the older people carry a lot of experience. Mr. Hensley asked what Mr. Anderson would like the Committee members to do. He said at the next meeting he would recap the budget. Then they could decide which departments they would like to review first. The department heads could attend the following meeting. They would be prepared to discuss the suggestions. Mr. Anderson is proud of how many things the County is already doing. Mr. Dzadovsky mentioned things discussed at Strategic Planning about Information Technology. He told about the savings Miami School District was able to obtain using SharePoint. You can research it on Google. An example was given of items duplicated on the report. Mr. Anderson gave examples of the County moving toward paperless. Items are scanned in his department. Management and Budget will not print the large binders for the Board of County Commissioners budget reviews. Later this year there will be a paperless agenda for the Board of County Commissioners’ meetings. Mr. Lounds thinks the report is a good start. Mr. Anderson likes that there is a contact to get more information. Mr. Hensley said the mission is to get through the document during the month and bring Citizens’ Budget Committee June 27, 2008 Page 4 suggestions and concerns to the next meeting. OTHER ISSUES Mr. Lounds is concerned that the Golf Course, Met’s Stadium and Fairgrounds have a deficit. Mr. Anderson explained the Golf Course and Airport situation. The Golf Course functions are running at a break-even point. Tradition Field had a deficit in 2005 because of hurricane repairs. A grant was received from the State. Tradition Field has been subsidized $900,000 over the years, $400,000 this year. Part of it is funded through the Tourist Tax. Items not paid by the tax will be paid from the grant and there will be money left over. Mr. Lounds would like to review the business plans for the Airport, Golf Course, Tradition Field and the Fairgrounds. Mr. Anderson said the Airport is right on target. There will be a new plan for the Fairgrounds. The utility rates are skyrocketing and the expected rate for the new Havert L. Fenn Center is $245,000 per year. Mr. Lounds thinks the expertise at the table could help. Mr. Anderson agreed. There is a new program with FP&L so there will not be a surcharge when the lights are turned on at Tradition Field after 6:00 PM. Mr. Lounds mentioned several questions for the Golf Course. Mr. Anderson said they have all the information and would be happy to bring it. Mr. Anderson said they are looking at three options for the Savannas Campground. When to schedule and how many departments were discussed. Questions and ideas should be sent in. Requests can be made in July. Mr. Mundt asked for a list of facilities that have lights that go on automatically. Mr. Anderson said it bothers him, too when lights are on and no one is around. They are thinking of suggesting that at 10:00 p.m. the lights are going to go off. He thinks there should be a policy. Mr. Wells asked if there is a person to call. Mr. Anderson asked for a report next month. Mr. Lounds said the irrigation system should be incorporated so we will not be watering the grass when it is raining. Mr. Anderson said there are lots of areas where we can tighten down. That is the direction he expects the Committee to go. Mr. Hensley asked why we have to balance the 2009-2010 budget this year. Mr. Anderson thinks it will be balanced by the end of the calendar year. Mr. Hensley asked if we were putting hardships on when things might change and there be more income. Mr. Anderson explained the revenue is based on the house values of the year before. He thinks they will have to do two-year budgets until things improve. Citizens’ Budget Committee June 27, 2008 Page 5 Mr. Lounds said we are in rough waters but the keel is not broken. AIRPORT SUBSIDY – MARIE GOUIN Ms. Gouin explained the sheet (see attached) showing the subsidy to the Airport and Golf Course. Mr. Mundt asked how Mr. Anderson said the Golf Course was breaking even. Mr. Anderson said it breaks even with the exception of paying rent. They never paid rent. The subsidy is the amount of the rent. Mr. Mundt asked why an Enterprise Fund is being subsidized out of the General Fund. That is one of the departments that will be brought to the Committee. Mr. Mundt is a golfer. He said there is some serious work that needs to be done there. Mr. McBee left the meeting. There was discussion on the grant to the Airport. Ms. Gouin explained that it was almost like the Airport was subsidizing the Golf Course. By cleaning up the liability, it helps the Airport with the FAA. Mr. Anderson said the General Fund would now subsidize the Golf Course for rent that will be paid to the Airport. That puts the Airport on a breakeven operation. It does not need a General Fund subsidy. The Airport will be making money in future budgets. Mr. Mundt asked if the $2.7 million is a write-off or debt to the General Fund. Ms. Gouin answered that it is a debt to the General Fund. It does not change the amount of the gap. The dollars were switched from fund to fund. A check was not cut. Credit was taken for dollars given in the past. Mr. Anderson shared that the Airport needs to buy some land. So the County is going to sell other property to fund that. He also told about a permanent spoil site for dredging. The property will be bought from State funds with the money going to the Airport. Type of property and timing of sale were discussed. Mr. Mundt asked how quickly the land was needed for the Airport. Mr. Anderson answered in the next couple years. The landowner’s price was discussed. The property has been appraised. Mr. Hensley suggested there be an analysis of the Golf Course in August. Next month there will be a budget recap. Mr. Lounds asked the Committee to add suggestions for departments. He wants the departments to bring a history of where they have been, their expenses, their income, things they think they need to do to improve, and what are the plans to get there with their presentation. Mr. Mundt mentioned they have been hammering the social agencies and he sees a Citizens’ Budget Committee June 27, 2008 Page 6 request on the Board of County Commissioners’ agenda for a portable stage for the Havert L. Fenn Center for $30,000. Mr. Anderson answered that it will generate revenue. Ms. Outlaw added the center is designed to have different types of events and programs that will require different things and be paid events. The plan is for the revenue generated to offset the cost. Mr. Mundt asked about the Airport changing to a digital recording system. Ms. Outlaw explained the system they currently use is outdated. The Airport agreed to record certain hours as part of the Voluntary Noise Program. Because the system is outdated, it consistently breaks down and they are not able to record as promised. The complaints cannot be tracked. Mr. Lounds explained why there are airports up and down the coast. He doesn’t understand people who move near an airport and then complain about the noise. Mr. Mundt asked about engineering costs on the Board of County Commissioners’ agenda. Mr. Anderson answered that they are covered by grants. Mr. Dzadovsky asked if Mr. Anderson had communication with other entities about sharing the clinic. Port St. Lucie’s clinic has been open a year and very successful. There is a workshop set up the end of July. The company that runs Port St Lucie’s and representatives from the City are coming. We want to hear both sides. The City of Fort Pierce, Fort Pierce Utility Authority, Fire Chief, School District and Constitutional Officers are interested. The larger the volume, the more you save. The County would also have it’s own pharmacy that would buy directly from the drug companies. The County would shift the money from paying outside doctors to paying us. It is planned to be open Saturday mornings and one night a week. The County is self-insured. The money used now to pay other doctors, would be used to pay our doctors. The County would do the renovations in the Logistics Center where the Salvation Army is now. There would be no additional cost to get it started. Mr. Dzadovsky asked about the service. Mr. Anderson said the reports he has received have been excellent. He will ask them at the workshop to be honest with us. Mr. Lounds asked about the clinic at the jail. Mr. Anderson explained the jail situation. Since the impact fee lawsuit was settled, they will be able to work on that. The 12-bed facility was built when there were 600 inmates. We now have 1600 inmates and want to expand it to 40 beds. It would cost $3 million. They want to build a 100-bed dormitory style minimum-security facility that would cost $350,000. The style of building and Martin County were discussed. Mr. Mundt asked about a $200,000 study at the Airport. Ms. Outlaw explained that it is to determine if it is feasible to go from aviation to a commercial airport. There was discussion on airports, commuter service and grant money. Mr. Dzadovsky added that it takes a long time to build an airport and we need to start looking now. Citizens’ Budget Committee June 27, 2008 Page 7 Mr. Johnson started discussion about repercussions from the private sector about the clinic. ADJOURNMENT Mr. Hensley adjourned the meeting at 8:48 a.m. Respectfully submitted by: Brenda Marlin The next CBC regular meeting will be held on Friday, July 18, 2008, at 7:30 a.m., in Conference Room #3, at the St. Lucie County Roger Poitras Administration Annex.