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HomeMy WebLinkAboutMinutes 09-19-2008 CITIZENS’ BUDGET COMMITTEE Meeting Date: September 19, 2008 Conference Room 3 Meeting convened at 7:31 a.m. MEMBERS PRESENT: Carl Hensley, Chairman Bill Casey Edward Lounds Craig Mundt (7:52) Nathaniel “Nate” Wells Chris Dzadovsky Patricia “Pat” Ferrick Steven Messer (7:35) Thomas Hickey (7:42) MEMBERS ABSENT: Barry Schrader Richard Pancoast Jeremiah Johnson Michael McKinnon Jay L. McBee Randy Ezell OTHERS PRESENT: Doug Anderson Marie Gouin Jennifer Hill Tommy Bowes Guy Medor Shane DeWitt Kathryn Hensley Debra Brisson Erick Gill Michelle Franklin Bill Hammer Carl Holeva John Ferrick Patty Marston-Duva CALL TO ORDER Mr. Hensley called the meeting to order. Since there was no quorum the approval of the minutes was delayed. Mr. Hensley announced that Mr. Lounds was re-elected to the Board of Directors of the Florida Fertilizer and Agrichemical Association. Citizens’ Budget Committee September 19, 2008 Page 2 BUDGET UPDATE – DOUG ANDERSON Mr. Anderson showed one slide of the presentation from the Final Budget Hearing the night before (see attached). Mr. Lounds asked about the money invested that was not available. Mr. Anderson answered that we have been able to slowly withdraw money from the account. We are not guaranteed any interest. Ms. Gouin explained that there are two funds, A & B. We might not be able to get the interest from B. They are trying to be sure we get the principle that was invested. He asked if it was insured. It is not. If that money was lost, it would affect the budget. At this time they are not planning on a gain. The budget is very conservative. Mr. Anderson believes St. Lucie County is one of the best financially positioned local governments in the State of Florida. More streamlining is coming in October. They are looking at new ideas for the health insurance program to save more money. The health clinic should save even more money. Mr. Lounds said it has been a rough, tough road but he is comfortable knowing the budget is balanced the next two years. It has been an uncomfortable walk but worth it. Mr. Anderson said all of the department heads worked together and there have been a lot of sacrifices. Mr. Casey said that Mr. Anderson lead the group and it is a great accomplishment. Mr. Dzadovsky asked if any of the money is leveraged. Mr. Anderson answered that it is our cash that is used to pay bills. Mr. Dzadovsky is concerned about the bond rating. Mr. Anderson said the $17 million in reserve is helping the bond rating. Mr. Dzadovsky started discussion on Tropical Storm Fay. The County suffered $4.3 million in damages to County structures and facilities. Emergency reserves are not touched unless catastrophic. They are working with the insurance company and FEMA. There is a full-time Grants and Recovery Department working on the issue. Mr. Casey asked about money in State Board of Administration (SBA) and the future revenues. Ms. Gouin listed some of the places where the money is invested. Ms. Francis started working toward lowering the amount of funds in SBA when she came to St. Lucie County. Mr. Anderson had sent an email to Mr. Fry earlier in the week asking if the investments were secure. The response was that in his opinion they are. There is not any money in Lehman Brothers or Merrill Lynch. Mr. Hensley started discussion about the $17 million in reserves. The plan for this year was to add $5 million. It was decided to add $1 million. Citizens’ Budget Committee September 19, 2008 Page 3 Mr. Lounds said the reserves would enable this county to borrow money if we have to. Some counties will not be able to for a long time. Mr. Anderson added not only that but also other counties and the State are using emergency reserves for operations. Mr. Casey suggested the Committee ask the Clerk’s Office to come to the meeting and explain their investments and why they think it is safe. Mr. Lounds asked if anyone else could sit in. Mr. Casey asked if we were paying any consultants. It was decided to ask Mr. Fry and Ms. Francis to come to the next meeting. Mr. Casey asked for information in advance. Closeness to election was discussed. Ms. Gouin offered to be sure everyone got a copy of the June 30, 2008 Investment Report. Mr. Casey is concerned about fiduciary responsibility. Ms. Ferrick asked about prescriptions from the clinic if they did not see the clinic doctor. Mr. Anderson explained the clinic is not a pharmacy. The prescriptions will be administrated by the doctors. Since it is not a licensed pharmacy, they cannot fill other doctors’ prescriptions. Ms. Ferrick wanted to know about level of service in the Comp Plan. Mr. Anderson answered that we will not be able to do it. The taxpayers voted to cut taxes. They will be able to pull permits but the level of service will not be there. Mr. Lounds added that cutbacks have been equal. It is across the board at County facilities. APPROVAL OF MINUTES th Mr. Lounds made a motion to accept the August 15 minutes. It was seconded by Mr. Casey and unanimously approved. COUNTY ADMINISTRATOR TRANSITION Mr. Anderson is retiring January 9, 2009. Since he has a lot of travel in his schedule, he is transitioning parts of his job to Ms. Outlaw. It is his last meeting. He really enjoyed working with the group. Mr. Dzadovsky asked about Mr. Anderson’s replacement. People looking to bring new business into the County want to know that it is secure. Mr. Anderson said it is on the rd September 23 Board of County Commissioners Informal Meeting agenda. There are several large economic development projects that he is trying to get wrapped up by the end of the year. TAX WATCH DISCUSSION, TRADITION FIELD – DOUG ANDERSON Mr. Anderson introduced Tommy Bowes, best groundskeeper in minor league baseball, who works at Tradition Field. Mr. Anderson started his PowerPoint presentation by giving history of the agreement with the Mets. Citizens’ Budget Committee September 19, 2008 Page 4 Mr. Wells asked about high school games. Mr. Bowes told the impact of the expected revenue. Mr. Casey asked about renting out the stadium for other events. The County gets a portion of the revenues. The Mets absorb the risk of concerts. Mr. Anderson is discussing possible use with Mr. Massey of Indian River State College. Mr. Lounds asked about strings attached to the money from the State. Mr. Anderson doesn’t think there will be surprises. It has been a long journey. Mr. Casey asked about ticket sales. The attendance is way up. Mr. Bowes explained that they brought in different teams. They were selling standing room tickets. Mr. Bowes thinks the Dodgers leaving will increase the attendance even more. Mr. Casey asked about the transfers from the General Fund almost doubling. Mr. Anderson explained that because the costs are up and the bed tax is down, the money would be loaned. It is expensive to maintain the fields. Mr. Lounds said if you don’t keep it up to par, people would go somewhere else. Mr. Mundt asked where the revenues for capital and naming rights go. Ms. Hill explained there is a Tradition Field debt service fund. It was explained that the State’s accounting system use the term “Personal Service” to identify Personnel costs. Mr. Casey asked about G & A fees. Mr. Anderson explained that it is the County’s charge to departments. Ms. Gouin added that a study was done. They are trying to recoup money from them for doing business for them. Mr. Casey started discussion about supplies. He questioned the capital expenses. It was answered that it was air conditioning units. Part of the agreement is that the Mets submit a list of maintenance items. One cent of the bed tax is used for those items. The Mets basically run the capital program and save the County a lot of money. Mr. Dzadovsky asked about ticket revenues being up but concession sales being down. Mr. Bowes answered that they think it was because the lines were too long. They added staff. They learned that better teams mean longer lines. Mr. Dzadovsky asked what is owed on Tradition Field. Ms. Gouin answered about $6.5 million. Ms. Hill explained that there are two loans. One is the County. The County and the Mets share one. Mr. Dzadovsky asked what the Mets get for naming rights. Mr. Anderson does not think they get anything. The naming right agreement was for 15 years. Mr. Dzadovsky asked why the County does not rent the skyboxes. Mr. Anderson explained that they are very protective of them. He is concerned they would be damaged if rented. Citizens’ Budget Committee September 19, 2008 Page 5 Mr. Dzadovsky asked what cuts were made at Tradition Field. Mr. Bowes answered that he lost a foreman and maintenance man, there will be no new equipment, lowered the quality of products, cleaned out old fertilizer, and went to Shea Stadium to get some of their used equipment. Mr. Bowes explained that baseball starts in January with Fantasy Camp. February to April is spring training. There are other leagues on the backfields. Then St. Lucie Mets and extended spring training go to June. Instructional league goes to the third week in October. The fields need to be maintained all that time. He used over 3,800 hours of community service from people in the Core Program. It cuts overtime of County employees. He can afford to cut back on some things but he has to provide a quality of service. Each kid that walks on the backfield is treated as a prospect to be a major league player. He uses the Juvenile Justice program for trash pickup. The prisoners of Martin County do edging and mowing of berms. Mr. Dzadovsky complimented Mr. Bowes on his use of the space and time. Mr. Bowes added that the season starts with college games. The fields are utilized. Ms. Brisson explained the rehab program. Mr. Medor added that it has been a personal sacrifice for Mr. Bowes who lost 200 hours of vacation time. Mr. Anderson sat down with the owner of the Mets in 1997 and was told the facility was not being maintained in accordance with the agreement. They turned everything around. Last year the owner told Mr. Anderson that in his opinion it was the best spring training facility in the State. Mr. Lounds repeated that the utilization time is mid January to almost the first of November. Mr. Bowes added that in November they try to rent the Stadium. There is a VetsFest, Octoberfest, RV show and circus scheduled. They are looking at an oldies show. Concerts are hard. Mr. Lounds said the Stadium is one of the best. He would have no problem suggesting they weigh carefully the consequences of having a concert. Redo is more expensive than maintenance. November to January is the reconstruction period. It is a very small window. How is the public made aware of what is going on? Mr. Anderson said that Paul Taglieri, General Manager of Florida Operations, is on the Tourist Development Board, there is a billboard on I-95 and the Turnpike. Mr. Taglieri is all over the community. Once they go to the Stadium, they will want to go back. Most of the spring training games are selling out and the St. Lucie Mets’ ticket sales are improving. Mr. Bowes thinks Mr. Taglieri’s community involvement is paying off. Promotions such as Dollar Night bring in lots of children. Mr. Lounds is amazed that the four county area does not realize how great the facility is. He knows because of his background what they have to go through to get it Citizens’ Budget Committee September 19, 2008 Page 6 there and maintain it. Mr. Bowes appreciated the compliment and thanked his resources, Mr. Medor and Ms. Brisson and his staff. It is hard. Mr. Hensley asked about the traffic. Mr. Anderson answered that Peacock is four lane and signs have been put up to get traffic out. Traffic coming in gets backed up. The two-lane bridge when you get off I-95 backs up everything. Police officers work the signals. OTHER ISSUES Mr. Hensley reminded the Committee that Mr. Fry would be invited to speak on investments at the next meeting. Mr. Hammer suggested the six-lane bridge be fast tracked. He is concerned about the liability of the County. There could be a massive lawsuit if there was a crash. There are four routes if you shuttle traffic. Mr. Anderson said they put up signs to circulate the traffic. Mr. Lounds asked if the Committee could be advised of the plans for the Fairgrounds. Mr. Hensley said to put it on next month’s agenda. Ms. Outlaw will be in Mr. Anderson’s place at the next meeting. ADJOURNMENT Mr. Hensley adjourned the meeting at 8:45 a.m. Respectfully submitted by: Brenda Marlin