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HomeMy WebLinkAbout3 18 11Minutes CITIZENS’ BUDGET COMMITTEE Meeting Date: March 18, 2011 Conference Room 3 MEMBERS PRESENT: Carl Hensley, Chair John Culverhouse, Vice Chair Craig Mundt Richard Pancoast Edward Lounds Patricia “Pat” Ferrick Ron Knaggs Jay L. McBee Edith Hepburn Dan Kurek Stephanie Morgan Dana McSweeney Bill Hammer Randy Ezell MEMBERS ABSENT: Ryan Strickland OTHERS PRESENT: Faye Outlaw Laurie Waldie Bill Hoeffner Todd Cox Don West Debbie Brisson Marie Gouin Mark Satterlee John Ferrick Ken Pruitt Michael Quinn Karen Smith Jim David Robert O’Sullivan Lee Ann Lowery Christine Weekes Patty Marston Matt Baum Guy Medor Mark DiMascio Roger Shinn Beth Ryder Conrad de Fiebre Ron Roberts Garry Wilson Charlotte Lombard Kara Wood Kathryn Hensley Barbara Miller Jack Southard Robin Meyer Audrey Jackson Thera Johnson Wayne Teegardin Kimberlee Gagnon Johnny Ortiz CALL TO ORDER Mr. Hensley called the meeting to order at 7:31 a.m. Citizens’ Budget Committee March 18, 2011 Page 2 th APPROVAL OF MINUTES – February 18 MEETING Mr. Knaggs asked about the function in the second paragraph of page four. The function discussed was the issuing of drivers’ licenses. In the next paragraph, he thought “then” should be replaced with “while” in the next to last line. Looking at the County budgets after looking at the Constitutionals’ is not what he meant. Mr. Hensley said that is the reverse of what they are going to do. Mr. Knaggs asked that the first line of the third paragraph on page five be deleted. On the third line he requested “asked” be replaced with “inquired about” and “about” be changed to “used”. Ms. Ferrick said Mr. Knaggs asked them to, in three words or less, describe the categories. Mr. Knaggs gave the changes to the secretary. Mr. Knaggs made a motion to approve the minutes as amended. Mr. Pancoast seconded the motion. The motion was unanimously approved. The amended minutes are attached. DISCUSSION OF FY 12 BUDGET SUBMITTALS – Marie Gouin & Jennifer Hill Ms. Outlaw thanked the Property Appraiser and Division Managers for attending the meeting. She introduced the process and asked the members to be flexible. They provided background information (see attached) so the members would be up to speed on the departments’ budgets and be able to follow the Strategic Planning discussions. It is up to the Committee to decide when they want to make recommendations to the Board. The guidelines the departments used are no new positions or reclassifications, no new or replacement equipment, no increases in operating budget, with the exception of offsetting decreases or increased revenue, no new capital improvement projects and no travel unless required to maintain certification. Ms. Outlaw said staff could be flexible if needed for the presentations. Mr. Hensley asked the members to let the Directors complete their presentations before asking questions. -PARKS, RECREATION & FACILITIES Ms. Brisson began by introducing the Managers and Budget Coordinator for her department. She reported numbers from the PowerPoint attached. She reviewed the Parks, Recreation and Facilities budget detailing the divisions’ budgets as a percent of the department’s total budget. She advised the committee that her department met with the County Administrator for a budget review. Ms. Brisson outlined the details of the Capital budgets, including the increase due to the purchase of capital equipment and capital projects to be funded by the Parks Municipal Services Taxing Unit (MSTU). The major project is a proposal to retrofit the sports lighting Citizens’ Budget Committee March 18, 2011 Page 3 with energy efficient green technology lights. She also explained that there was an increase due to capital buildings maintenance projects in the Facilities Division identified as Investment for the Future (IFF) projects. Mr. Kurek asked how much money would be transferred to support the golf course this year. Ms. Brisson answered there would be none. Mr. Kurek asked if any money would be transferred for Digital Domain. Ms. Brisson answered $685,196. Mr. Kurek asked how much would be transferred from the golf course to the landfill. Ms. Brisson answered that there is a lease payment of $250,000 but it is not actual cash. Ms. Gouin added this year Digital Domain is no longer an Enterprise Fund. It is a Special Revenue Fund. Mr. Kurek asked if any of the parks are within the city limits of Port St. Lucie. Ms. Brisson answered South County Regional Stadium and Ravenswood Pool. Ms. Ferrick congratulated Ms. Brisson on getting the golf course budget down. Ms. Brisson pointed out to the Committee that it is because of the $700,000 of MSTU funds used to renovate the greens. She is happy to report that the golf course is doing much better. Ms. Gouin added that they had a reduction in operations and personnel of about $142,000. Mr. Knaggs asked why additional revenue would be spent when there is a shortfall. He asked if franchise fees could go into general revenue. Ms. Gouin said they can go into general revenue. It is a Board policy to put a $1,000,000 into maintaining our buildings. The projects are maintenance. Mr. Knaggs understood maintenance but kept hearing franchise fees. Ms. Brisson clarified the park’s equipment is not paid with franchise fees. It is coming from Parks MSTU funds that can only be spent on Parks and Recreation capital equipment and projects. The Investment for the Future Fund (IFF) was a policy decision of the Board. There is a major change occurring in air conditioning. There is a federal mandate changing the Freon that can be used. As they have issues with air conditioning systems, they have to replace many of them. They provide maintenance for over 6,100 tons of air conditioning. Ms. Outlaw added that as part of the process of preparing for Strategic Planning, there is a work group that is analyzing potential millage shift to help with the projected deficit in the General Fund. They are also checking shifts from special revenues such as the IFF. Ms. Outlaw has to balance that in the event of a hurricane, to have a strong position with Federal Emergency Management Agency (FEMA) you have to prove that you have maintained the buildings. It increases your chance to get reimbursed. Mr. Knaggs supports maintenance. His concern is that a few dollars, especially new Citizens’ Budget Committee March 18, 2011 Page 4 dollars, may make a dent in the shortfall. Utility cost was mentioned as a large expense. Mr. Knaggs saw lights on at four parks on his way home from an event. He asked if it had been looked at. Ms. Brisson said 9:30 is the time limitation. One problem is that if they end their games early, she does not have staff to turn the lights off. They are scheduled to go off at 9:30. The green light technology they are looking at would provide the opportunity to turn the lights off by calling a phone number. Mr. Knaggs wondered if 9:30 is the appropriate time. Ms. Outlaw and Ms. Brisson agreed to look at the time. Ms. Brisson added that they used to be on until 11. Mr. McBee asked about the timing of the retrofitting of the sports lighting. Ms. Brisson answered that it is part of the Capital Projects in next year’s budget. He asked about grants. Ms. Brisson said that project was not chosen, but they can look again. It is Parks MSTU money. Mr. McBee asked if the retrofit pays for itself. Ms. Brisson answered that the information had been provided. The payback will be slower because of decreased usage. It was calculated by field. Mr. Lounds asked if it is by statute that we have to continue the IFF projects. Can they be put on hold? Ms. Brisson would not recommend they be delayed because there are failing systems that need to be replaced. They are playing catch up. She gave an example of the Public Defender’s building. Mr. Lounds asked about the Fairgrounds. Ms. Brisson answered that it is included in the South Division. Ms. Outlaw added that it is not shown as a Division because in the past it was shown as an Enterprise operation, but it was not. Ms. Brisson said the budgeted revenue projection for FY12 for the Fairgrounds is a little over $100,000. The expenses are budgeted at $340,000+. The personnel cost is approximately $90,000. She emphasized that the Fairgrounds has a Reverse Osmosis Water Plant and its own wastewater system. Over $100,000 of the $340,000 is to have that operational, inspected and maintained. It provides water to the Forestry Division and wastewater for the new Emergency Operations Center (EOC). It makes if look worse than it is. They are actively promoting equestrian events. She told about a future show. Mr. Lounds said the equestrian side is a ray of hope. Mr. Lounds asked for discussion on the Mets stadium. Ms. Brisson said the check last year from the Mets was $748,000. It was $850,000 to $900,000 at one point. The significant decrease in revenue is the Tourist (bed) tax which is picking up. Mr. Lounds said when the tourist count is down, you will get less from the Mets. Ms. Brisson continued that the estimated revenue next year is $2.4 million. It does include $685,196 from the General Fund. The expenses look to be about $3.4 million. Mr. Lounds asked about any major projects in the next two years at the stadium. Ms. Brisson said they don’t believe so but the Mets might. She heard that there was an announcement made at a game but a formal request has not been made to Ms. Outlaw. Mr. Lounds asked about the plan. Ms. Brisson said there have been meetings. Ms. Outlaw added that she never starts out in a bowed position. The major problem is the legally binding agreement that allows the Mets to tell the County what improvements they want. There will be a spirited conversation. We Citizens’ Budget Committee March 18, 2011 Page 5 do not have the ability to write a check for an open-ended dollar amount. Mr. Lounds expressed his confidence in Ms. Outlaw. Mr. Lounds asked if the maintenance equipment is owned or leased. Ms. Brisson said the only leased equipment is the golf carts at Fairwinds. Is there any advantage to leasing lawn equipment? When it was investigated a few years ago, there was no advantage to leasing. Mr. Kurek asked what percentage of the equipment has to be replaced. Ms. Brisson answered a small percentage. Mr. Medor added that they take the equipment far beyond its useful life. Mr. Lounds told about equipment leases and said equipment companies are hungry for business. Mr. Knaggs asked about Grants and Aids on their summary sheet. Ms. Brisson explained that it is a combination of agreements with the School Board and other entities. He thought Grants would be revenue. Ms. Gouin added that part of it has to do with the interlocal agreements with the Cities for the Parks MSTU. The County collects the money and gives part of it to the Cities. They are legally obligated. Mr. Lounds asked how many folks from Indian River County are using the North Park facilities. Ms. Brisson does not have a number. She could get the numbers for the pool. The numbers significantly dropped in soccer. Mr. Lounds said there are $13 million in expenses for North Division and we are going to spend $2 million maintaining the Jail. Is that balanced? Ms. Brisson said the Jail maintenance and expenses are in the Facilities’ budget. She gave the amounts of a couple items and said the Jail also has its own line item. Mr. Lounds asked if there are any major things that need to be done to the Jail or Courthouse. Ms. Brisson said some changes were made to Jail maintenance in October. They went from close to 3,000 open work orders to about 200 now. Mr. McLam is doing an excellent job. They are looking at opportunities at saving energy. She thinks they are on top of jail maintenance. Chief Deputy Wilson said there is no question that they have turned the corner. Mr. Lounds said it is easier to maintain than fix. Mr. Kurek asked if smoking is allowed in the Jail. Chief Deputy Wilson answered it is not. Apparently smoking is allowed in State prisons. Mr. Kurek asked about an allowance for the cost of gas. Ms. Brisson answered that Mr. Shinn thinks it should be okay for next year as long as it does not go higher and comes back down. $390,000 is budgeted in FY12. Staff continually monitors usage and the cost of fuel. Ms. Outlaw stated that the County purchases fuel as part of a coop and receives a discounted price. Mr. Kurek asked about the interlocal agreement with the School Board for shared facilities. Ms. Brisson answered that it is still in effect. The Fenn Center is excluded from the agreement with the exception of small meetings. Ms. Brisson is pleased that they utilize it. Citizens’ Budget Committee March 18, 2011 Page 6 Recently, the Science Fair and concerts have been there. There is a wonderful partnership. -PLANNING & DEVELOPMENT SERVICES Mr. Satterlee listed the Divisions in their Department and introduced the Division Managers. The two major items are the Capital Projects that have been scheduled, the taxiway improvements, renovation of the terminal and the customs facility at the Airport, and the Aid to Private Organizations in the Business & Concurrency Division. They met with Ms. Outlaw. They are trying to balance the Airport Fund. There is an overall 9.8% reduction for the Department. Mr. Mundt asked about Other Uses in the Special Revenue on page four. Mr. Satterlee answered that it is the reserves for the Building Enterprise Fund. Ms. Outlaw added that the Building Fund had been operating about $700,000 in the red. The fund started with about $3,000,000 in the Reserve Fund. It got dangerously low. They have been able to incrementally build it up after the cutbacks. The goal is to have $2,000,000 in the Reserve Fund. Mr. Mundt asked if they expected a drawdown this year. Ms. Outlaw answered that they do expect to use $100,000. Mr. Knaggs asked for an explanation. Ms. Outlaw explained that since they are an Enterprise Fund, they need to have reserves to sustain themselves if needed. Mr. Knaggs summarized that there is no money coming out of the General Fund for the Building Division. Ms. Outlaw agreed. Mr. Knaggs asked about spending the money that was left at the end of the year. Ms. Gouin explained that the money is being put in reserves but must be listed in the budget that way. Mr. Knaggs asked which line number on page four. Ms. Gouin answered that it is under Other Uses. It is also true of pages five and six. Mr. Kurek asked about the landings at the Airport. Mr. Cox answered they increased from 2009 to 2010. 2009 was 133,000. 2010 was 170,000. They are counting landings and a part of the touch and go operation. Mr. Kurek asked about the status of the Industrial Park. Mr. Cox explained the County owns the Northern Third and listed the tenants. All the other properties were given away years ago. Airport West Commerce Park, off Kings Highway, is where Project Can Do is going. Mr. Cox told about the fixed based operator. Mr. Kurek asked about rent. The others pay rent but the Sheriff provides in-kind services. Mr. Kurek asked about building permits. Mr. Meyer answered that they tried to budget realistically. Mr. Satterlee added that they monitor the situation. Mr. Meyer said there is a monthly report that shows comparisons. Mr. Kurek asked about Code Enforcement. Mr. Meyer said the numbers of cases overall and number per officer are up. Mr. Kurek asked about the collection rate. Mr. Meyer said they are starting to see some people pay. Most of it is liens against the property. Mr. Citizens’ Budget Committee March 18, 2011 Page 7 Satterlee said that Ms. Lowery had a great idea to register foreclosures in the County. There is a fee for the banks to register the properties. The revenue and ability to track are assets. Mr. Kurek asked if the number of plans submitted for approval is up or down. Mr. Satterlee said site plans are down. They are trying to help folks that are looking. He does not think things are getting worse and hopes the projects on hold will start to move in the next couple years. Mr. Kurek asked about scheduled flights from the Airport. Mr. Cox answered that they are not a Commercial Service Airport. That will be up to the Board and citizens. Mr. Kurek asked if anyone has approached them. Mr. Cox said he gets requests each quarter. He explained the process. Mr. Lounds asked if Customs maintains a facility there. Mr. Cox answered that they do. Mr. Lounds asked if the unused land that borders Indrio Road is leased. Not at this time. It could be, but it is a nice buffer area that is used to minimize noise impacts. Mr. Lounds said that cattle don’t care. Mr. Cox said the Federal Aviation Administration (FAA) and the State look at the land to see what is being done and the benefit. Mr. Lounds asked Ms. Outlaw to let him know the outcome. He may know someone interested in leasing the land. He told the benefits of grazing a piece of ground. Ms. Ferrick asked about the funds that were paid to lease the grazing area at the Airport. Mr. Cox answered that years ago there were leases. The money came back to the Airport. The land was paid for by 1980-2000 State and Federal grants. They are restricted in what can be done. They will check. She was curious about liability. -PUBLIC SAFETY & COMMUNICATIONS Chairman Hensley left the meeting and Vice Chair Culverhouse assumed his duties. Mr. Southard pointed out the numbers on the SMART Board. There are two divisions in the Department. The Public Safety Division has seven subdivisions. Mr. Southard explained the $200,000 increase on the front of the report is revenue. There is a carryover in the Radiological (RAD) budget that is paid for by Florida Power & Light. About 1,000 folks are trained every year in radiation. There is a $26,000 grant from the State to offset the cost of emergency management. Money from FPL is also used to keep the telephones in the EOC hot all the time. Fifty cents is collected from all phones lines to be used only for 9-1-1. They are putting a backup 9-1-1 system at the old EOC on Rock Road. They are looking at updating the technology for the computer dispatch system that is twelve years old and can only be maintained one more year. This will be a joint project with all the agencies. It will be shared by Fort Pierce Police Department, Sheriff’s Office, Fire District and Port St. Lucie Police Department. There are data lines now. Projects being projected are: being able to receive video from a citizen and forward it to a cop on the street, and allow texting. The funds for 9-1-1 can only be used for 9-1-1. Citizens’ Budget Committee March 18, 2011 Page 8 Mr. Southard explained the charge backs for the Information Technology (IT) Division. IT changes all the time. Training is needed for employees maintaining software products. Mr. Knaggs asked about Other Uses. Mr. Southard explained it is a true up of 9-1-1 funds that can only be spent for 9-1-1. Mr. Knaggs confirmed that a line under Budget by Fund Type was a similar situation. Mr. Mundt asked about the $4,000,000 jump in Central Communications from FY10 to FY12. Ms. Gouin explained that it is part of the surplus 9-1-1 dollars. FY10 is the actual of what they spent. FY12 budget is more because the reserve is not being spent. It is 50 cents on every telephone bill in the County. Mr. Mundt asked if it was split between the Cities and the County. It is on the phone bills Countywide. Mr. Mundt asked about the Personnel Expenses on the summary sheet. An employee in the Deferred Retirement Option Program (DROP) will be receiving a payout when he retires. Ms. Outlaw added that the County does not have a program that allows them to come back after they retire. Mr. Lounds asked if the disconnect of communication in the Court System, Clerk, Judiciary, State Attorney, Public Defender, 9-1-1, Sheriff’s Office and the Jail had been corrected. Mr. Southard answered that it is 100% better. They also have current information from the Florida Department of Law Enforcement (FDLE) and Federal Bureau of Investigation (FBI). Mr. Kurek asked how many 9-1-1 systems there are in the State of Florida. Mr. Southard answered there are four. St. Lucie County was first. Mr. Kurek asked about Marine Safety. Mr. Southard said some cuts were made there last year. It has worked out. There have been no complaints. Mr. Kurek said he has worked with Mr. Southard many years and is consistently amazed at his ability to keep this County technologically up to date. Mr. Kurek thinks Information Technology being added to his responsibilities is a good fit. Ms. Outlaw agreed that he has done a phenomenal job. Mr. Mundt asked about insurance selections. Are we working to reduce costs? Ms. Outlaw says the projections show a reduction with the opening of the clinic. If an employee goes from a single plan to a family plan there is an increase. There were some changes in Mr. Southard’s department. They will discuss changes in employee benefits as part of Strategic Planning. The Committee will be privy and participants in that discussion in Strategic. Mr. Culverhouse thanked Mr. Southard. -PUBLIC WORKS Citizens’ Budget Committee March 18, 2011 Page 9 Mr. West introduced staff from his Department and pointed out the numbers on the screen. A lot of the revenue in Public Works is dedicated. Solid Waste and the Utility District are Enterprise Funds. The Transportation areas are funded by gas tax revenues and the Stormwater MSTU. There are some large numbers in their budget but they have to stay in their dedicated uses. They can’t easily move money around. A lot of the Operating is Capital Maintenance projects and has to do with how you depreciate assets. Road resurfacing, swale maintenance, chip seal, millings, contract labor, traffic signals, electricity for street lights and heavy equipment are in Operating. Mr. West explained there are five Divisions and the Port on the Capital Project side. It is a combination of all different kinds of money and projects. Most of it is dedicated revenue. Most of it is carryover. In Transportation there is one penny of gas tax that can only be used for capital. It is about $1.4 million per year. That is all the new money that we have to take care of the roads. $1.4 million does not go far for resurfacing, millings and bridges. Impact fees are greatly reduced. Most of the new projects are large culverts that are failing and bridges that are in need of repair. The Stormwater MSTU provides the revenue for the few that are planned in that area. Most Capital projects are ongoing. They typically take three to five years to design, permit and get ready for construction. They normally bank the money for a project. It could take five to seven years. Mr. West explained the changes in their Department during reorganization. They took employees from other Divisions and put all the experts under one roof and called it Water Quality. They are expecting new regulations from the State and Federal level for nutrient reductions. Most of the personnel changes were offsets. It was a wash as far as costs. Mr. Kurek asked about money being transferred from Solid Waste to the General Fund. General and Administrative costs are being transferred. Ms. Outlaw added that all Divisions pay General and Administrative fees into the General Fund. Mr. Kurek asked for a list of projects. Ms. Outlaw suggested a schedule. Mr. West said there is a 15 page document and asked if they would rather have a list of the ones that are close. Mr. Kurek asked about allowing for the increase in fuel. Mr. West said yes. They pay for their fuel. Mr. Knaggs asked about the Enterprise Fund for the landfill. It is a dollar for dollar pass through. There is no loss on this fund. Ms. Outlaw added that it is doing very well. The other part of Enterprise Funds on page one is Water & Sewer. The details start on page 11. He asked if it was in good shape. Ms. Outlaw said the Board approved a rate increase that helped. Ms. Waldie added that they are paying back the General Fund. Ms. Outlaw said that last year that was not the case. They borrowed money from the General Fund that they are now paying back. Mr. Knaggs is a resident of North Hutchinson Island and did not like the rate increase. He Citizens’ Budget Committee March 18, 2011 Page 10 also does not like that there is a $4 million capital project. Ms. Waldie reported a study was done. The plant was rated at .5 MGD. For build-out .85 is needed. The factor is with all the committed units, if they came back for service, they would be over the .5. There is a form that must be sent to Department of Environmental Protection (DEP) that shows capacities and commitments. Technically, they are over capacity. The flows may not be there but if they came, the capacity needs to be available. Mr. Knaggs said there are hundreds of units not occupied. Mr. Knaggs is not happy with the State mandate. Dedicated revenue was discussed. Mr. Knaggs asked about delaying the project. Ms. Waldie explained a State Revolving Fund low interest loan. Mr. Lounds asked about geoplasm. Mr. Roberts said it is moving forward. He expects a major announcement in the next 10-14 days. Mr. Lounds asked about advantages. Mr. Roberts answered that they would probably begin to take down the hill in about five years. They would establish a comfort level before expanding. The hill would have to be disassembled. They would not have to find a site for another landfill. Mr. Roberts had the consultants check the cost of a new landfill. The comprehensive plan says a 25-year capacity is needed. The cost to buy and construct a new landfill would be $360 million. Mr. Lounds asked about major plans for expansion in Utilities. Ms. Waldie answered that North Hutchinson Island is first. In the future, it would be the Regional Wastewater Plant. Mr. Culverhouse thanked Mr. West. Mr. Lounds asked about the bond rating. Ms. Outlaw answered that they had not changed. Last Friday, there was a bond rating review by Standard and Poor’s. The results are expected in two to three weeks. They appear to be satisfied with the management during the economic downturn. Mr. Lounds asked that they share the results with the Committee. Mr. Lounds wished Ms. Outlaw good luck in her negotiations with the ball team. Ms. Ferrick asked about public hearings for FEMA requirements for the flood plain area. Mr. West answered that there is a meeting planned. He will get the date for her. OTHER ISSUES Mr. Knaggs asked about the permit committee. Mr. Satterlee said the Small Business Task Force has had several meetings and they are meeting again the first Wednesday of April. Mr. Curry has taken over the Committee. Serveral have attended the meetings and provided information. There has been a lot of good discussion. They are working on their report. The plan is to have the report to the Committee by June. But they are hoping for before that. Mr. Knaggs asked if there had been positive things from it. Mr. Satterlee said it has certainly helped to identify concerns. Mr. Knaggs thanked Ms. Outlaw and Ms. Gouin for the Budget by Fund information (see attached) he received. He tried to pull out the Capital numbers. Ms. Gouin explained it Citizens’ Budget Committee March 18, 2011 Page 11 was a revenue and expense fund. Mr. Knaggs asked for a later explanation. Ms. Outlaw asked that Ms. Gouin give a brief explanation at a future meeting. It is important for the Committee to understand the reports before Strategic Planning. Ms. Outlaw thanked the Committee and Staff. She asked the Committee to advise if they had recommendations for tweaking the presentation. th Mr. Knaggs asked about the April meeting. The April meeting was set for April 15 when the date for Strategic Planning was moved back. The decision about the June meeting will be decided closer to the date. ADJOURNMENT Mr. Culverhouse thanked the Directors and adjourned the meeting at 9:16 a.m. Respectfully submitted by: Brenda Marlin The next CBC regular meeting will be held on Friday, April 15, 2011, at 7:30 a.m., in Conference Room #3, at the St. Lucie County Roger Poitras Administration Annex.