Loading...
HomeMy WebLinkAboutApril 15, 2011CITIZENS' BUDGET COMMITTEE Meeting Date: April 15, 2011 Conference Room 3 MEMBERS PRESENT: Carl Hensley, Chair John Culverhouse, Vice Chair Craig Mundt Richard Pancoast Edward Lounds Ron Knaggs Dan Kurek Stephanie Morgan Bill Hammer Randy Ezell MEMBERS ABSENT: Ryan Strickland Dana McSweeney Edith Hepburn Patricia "Pat" Ferrick Jay L. McBee OTHERS PRESENT: Lee Ann Lowery Laurie Waldie Bill Hoeffner Wayne Teegardin Don West Sophia Holt Marie Gouin Camille Yates John Ferrick Ken Pruitt Michael Quinn Karen Smith Jim David Robert O'Sullivan Jennifer Hill Susan Jacob Stefanie Myers Josh Saad Mark Godwin Dan Lutzke H.M. Ridgely Toby Long Roger Shinn Beth Ryder Richard Bouchard Diana Wesloski CALL TO ORDER Mr. Hensley called the meeting to order at 7:32 a.m. APPROVAL OF MINUTES -March 18t" MEETING After a motion and second, the minutes were unanimously approved. Citizens' Budget Committee April 15, 2011 Page 2 DISCUSSION OF FY 12 BUDGET SUBMITTALS Ms. Lowery informed the group that Ms. Outlaw was on her way to a conference and introduced the first Director. -ENVIRONMENTAL RESOURCES -Karen Smith Ms. Smith gave a quick overview of their Department. Since the reorganization, the Department consists of two Divisions. Anita Neal is the Manager of the Cooperative Extension & Environmental Education Division. Ms. Smith listed the programs and advisory committees in that Division. The other Division is Land Management & Environmental Regulations. Amy Griffin is the Manager. They manage more than 7,000 acres. She told about their programs, funding and advisory committees. The Environment Resource Department (ERD) budget numbers are shown on the attached PowerPoint. There is a 2.4% decrease due to prior staff reductions. She explained the Carry Forward Projects, revenues and how some funds were shifted. The General Fund is the only unrestricted fund in ERD's budget. ERD's staffing level is 47% of the 2007 level. Mr. Knaggs summarized that 22% of total expenses come from the General Fund. Mr. Lounds asked if there were expiration dates on the money to purchase Environmentally Sensitive Lands. Ms. Smith answered that there are no expiration dates, but there are dates when they would have to pay arbitrage. Mr. Lounds asked if the money could be used to improve already purchased land. Ms. Smith answered that it could be used for capital improvements on those lands, such as fencing for security. The guideline they use is to preserve or protect. Mr. Mundt asked about the Stormwater Municipal Services Taxing Unit (MSTU) in the Extension Program. Ms. Smith said there is an education requirement for funds received by Public Works, so they partially fund a position to provide water quality and stormwater educational programs. Mr. Knaggs asked for an explanation on the arbitrage comment. Ms. Gouin explained that if you earn more interest than you are paying, you have to pay the Internal Revenue Service (IRS). Ms. Hill added that the financial consultants provide arbitrage calculations, so we know what to budget. Ms. Lowery asked Ms. Smith to talk about her partnership with the Department of Forestry. Ms. Smith said there must be an active Land Management Program as part of the Environmental Lands Program. She listed the reasons they do controlled burns. It can be expensive, so they reached out to the Department of Forestry and Indian River State College (IRSC). They share resources and training and were able to get grants. This past Citizens' Budget Committee April 15, 2011 Page 3 year, they were able to have controlled burns on 300% more land than in the past ten years. They have ramped up the Land Management Program, especially in urban areas where the danger of wild fires was getting high. -HOUSING & COMMUNITY SERVICES -Beth Ryder Mr. Hensley welcomed Ms. Ryder, Director. Ms. Ryder thanked the group for the opportunity to speak about their Department. Since reorganization, the Department covers even more areas. She introduced the Managers. The Veterans section is now part of Community Services. Most people turn to their Department when they have a friend or relative in need. They try to guide people to services. There are not many services funded by the Board. Currently, there are 65 positions in the Department compared to 103 in 2007. They still try to continue the services. She told the percents from Grants, Library Impact Fees, General Fund and the Transit MSTU. The numbers are fluid as they spend Grant money and get more. Some of the Grants are private funds. Ms. Ryder said there is a little less than $2 million of State mandated programs they must fund. They pay a portion of Medicaid, nursing home and hospital billings. They support the Veterans' fund raising projects. The money raised is used to purchase the vans for transporting Veterans to the hospitals. Mr. Hensley asked about the difference in Grants on the Budget Request Review (see attached). Ms. Hill explained FY10 is the number actually spent. When a grant is received, the whole amount is budgeted. If not all is spent, the balance is carried forward. FY11 includes what they knew about at the beginning of the year, plus any that have been received and carryover. The only thing that can be counted on for FY12 is the expected carryover from this year since they do not have signed grant agreements. The number is expected to go up through the year. Mr. Lounds asked about the vans for transporting the Veterans. Does the County help with the driver, fuel and maintenance? Ms. Ryder said they do. The Veterans supply the vans. Mr. Lounds asked if there were grants available to help the Veterans in purchasing the vans. Ms. Ryder said Ms. Myers is always looking for grants. Mr. Lounds said there were savings when the program was changed years ago. Mr. Lounds asked about changing the Library from hard books to electronics. Ms. Jacob answered that the industry is emerging. The Library currently owns e-reference books. They hope to study the industry this year and make a plan of how to spend money the next few years on e-books. Not versus hard books, but in addition. They need to decide the proportion. It is a complicated industry. Amazon will not sell to libraries. Ms. Jacob has to study what will give them the most for the limited money. The bookmobiles have been phased out. Ms. Ryder added that Books by Mail is a wonderful program. The mailing is free if there is a hardship. Powerspeak, to learn a foreign language, and large print books are two of the cool things they have to offer. We have Susan Kilmer to thank for starting and Susan Jacob for continuing. Citizens' Budget Committee April 15, 2011 Page 4 Mr. Lounds asked if we are to the point that we don't have to close libraries. Ms. Ryder hopes we don't. She read that Indian River PropertyAppraiser isexpecting their Humberto be down. The Department is doing everything they can. Two of the libraries are open two days a week. They are thinking outside the box to stretch the dollars. Mr. Mundt asked about the Capital Projects. Ms. Ryder answered that most of the money is the Intermodal Facility and using Impact Fees to expand the Hurston Library. It made sense to complete it while the construction prices were lower. The Friends of the Library pledged $125,000 for two years to help with staffing. They are hoping for a turnaround. Ms. Lowery asked Ms. Ryder to explain the Neighborhood Stabilization Program (NSP). Ms. Ryder said they received about $4 million in NSP 1 and hope for another $1.9 million in NSP 3. Ms. Wesloski was hired for the NSP and has been passionate. The goal is to purchase foreclosed properties, recondition them and sell them to income eligible residents. They currently have five for sale. They can provide down payment assistance. They cannot make a profit, but they hope to sell it for what they have in it. Those funds are called program income and can be used to purchase otherforeclosed properties and assist others. Ms. Wesloski is working with the Board of Realtors. They listed the properties on the Multiple Listing Service (MLS) for no charge. The Housing Division is pleased with that partnership... Ms. Ryder mentioned the Library has a partnership with IRSC so anyone with a St. Lucie County library card can go to the IRSC facility. Mr. Knaggs asked how many houses the County owns. Ms. Wesloski answered -that the County owns seven homes and 10 lots that previously had homes that were demolished because .the rehabilitation costs were too high. They plan to build 10 new homes. Mr. Knaggs asked about the program. Ms. Wesloski answered that it is NSP 1. Mr. Knaggs asked if the County owned homes outside this program. Ms. Ryder answered that this is the first time they have bought homes. Mr. Knaggs asked how much of the $38.6 million comes out of the General Fund. Ms. Ryder answered 21 %. Mr. Kurek said 15% of the budget is what it costs the County to manage $39 million worth of operations. Very small amount of money for what they are accomplishing. He asked how many foreclosed or vacant houses there are in St. Lucie County. Mr. Kurek said 25% of the houses in Indian River County are vacant. He guessed it was higher here. Ms. Wesloski said the concentrated numbers here are in the City of Port St. Lucie. Port St. Lucie has purchased 1.85 homes through their NSP. They received $13 million. Mr. Kurek asked about the transit for Council on Aging. Ms. Ryder said Operating is going to be the next crisis for Transit. Our population being over the 200,000 threshold will cause us to be phased out. The Board discussed the situation with the delegation in Washington. Other ways to fund it have been discussed. It is a challenge. Mr. Kurek asked about the number of folks that use the system. Ms. Ryder said it is going up, especially with $4 per Citizens' Budget Committee April 15, 2011 Page 5 gallon gas. It goes to the mall and each County accepts the other's transfers. Mr. Lounds didn't realize the Transit Grants were tied to the population. Ms. Ryder explained that you get an allocation every year if your population is under 200,000. St. Lucie County's allocation was $2 million. More than 50% could be used for operating. The buses run on diesel fuel. Ms. Myers researched converting, but it is not yet feasible. Mr. Hensley asked about what happens after you sell a house. Ms. Ryder explained that no local funds are spent. When the house is sold the money is considered program income. Program income must be spent before you draw down anymore grant dollars. There is a 10% administration fee. Mr. Hensley thanked Ms. Ryder and she thanked him for the opportunity. -HUMAN RESOURCES -Bill Hoeffner Mr. Hoeffner informed the group that their budget is $13.4 million. There are two Divisions. Risk Management is responsible for insurance and benefit programs. Administration is responsible for position control, employee relations, mail delivery and continued recovery from the 2004, 2005 and 2008 storms. Three to four percent of their budget comes from the General Fund. The balance is in Insurance Funds that comes from payments from the other Departments and the Constitutional Offices. Most of the personnel budget is for the administration of Workers' Compensation payments. They are looking at the reserve fund for retiree benefits. They may go to a pay as you go system. Mr. Knaggs asked how much of the total comes from the General Fund. $443,000 was the answer. Mr. Knaggs asked how much was received from other Departments. Mr. Hoeffner answered that it would be significant. Ms. Gouin does not think the General Fund would be the bulk of it. There are a lot of Transportation Trust employees that contribute. Mr. Knaggs asked if they went to pay as you go, how much money would be released. Mr. Hoeffner answered that they are currently contributing $3-4 million per year. The current expenses are $250,000 to $275,000. Mr. Knaggs asked if it would affect the General Fund if that were changed. Ms. Hill added that it would not automatically be released. If they did reduce the reserve amount, the money would sit in the Health Insurance Fund initially. It could lead to future decisions to reduce health insurance premiums the Departments pay or to refund it to the Departments. Some could go back to the General Fund, but it would not be automatic. Mr. Knaggs asked how much could be available and could it be legally done. Ms. Gouin said they do not plan to reduce the reserves but reduce the amount paid into the account. Mr. Knaggs asked the legal limit. He gave an example of landfill funds. Ms. Hill said there are restrictions on the landfill funds. It would be more likely that you could use these funds because they are payments from our own Departments. There is an interlocal agreement with the Cities for the landfill. Mr. Knaggs requested afollow-up at some point. Ms. Lowery said Ms. Outlaw is looking at all the options. Mr. Knaggs is confused about revenue, expenses and payments for Workers' Comp. Ms. Citizens' Budget Committee April 15, 2011 Page 6 Gouin explained Workers' Comp is part of the revenue and expense categories for Human Resources (HR). Mr. Knaggs said it is shown in Personnel instead of Operating. Ms. Hill said they are looking for a way to change the way it shows in the future. They use the same expense code for the Departments to pay HR and HR to make the payments. Mr. Kurek asked about an actuary study. Ms. Gouin said the number is from an actuary. The process has been started to have another one done. Mr. Kurek said you don't have to fund it to that level but it is prudent to do so. Ms. Gouin agreed. They are cautious because of the rating. One of the first questions they ask is if you are funding your Other Post-Employment Benefits (OPEB) liability. They are checking to see what happens if they don't fund it for a few years since they have a significant amount set aside. Mr. Kurek asked Mr. Hoeffner to explain the difference in what they do compared to what Tri-County Risk Management Program (TRICO) does. Mr. Hoeffner answered that TRICO monitors the claims for them. Ms. Hill added that payments to TRICO come from the HR budget. Mr. Kurek asked about the rates. Mr. Hoeffner answered that because of a study done by a division of Workers' Comp, and the reclassification done as a result, they anticipate the rates will be going down. Mr. Kurek commented about Port St. Lucie. Mr. Kurek asked if the members knew about TRICO. It is a two City, two County consortium for insurance for property, casualty and Workers' Comp. He established it a few years ago and was Chairman for nine years. They buy the insurance. Mr. Lounds commented on the email about the bond rating and what we do to keep it up. Ms. Gouin said the way the Fund Balance reserve is set up and the way they plan the future are a couple things they look at. Mr. Lounds said the bond rating is very important. Mr. Lounds asked for an update on Federal Emergency Management Agency (FEMA) payments. Mr. Hoeffner said they were successful in getting $9 million for the renovation of the old Courthouse. They have closed out Jeanne and Wilma with FEMA and insurance. There are two projects preventing the closeout of Frances, the Fenn Center and the old Courthouse. The renovation of the third and fourth floor of the old Courthouse must be completed by December 31, 2011, to receive FEMA funding. There are a few active projects from Tropical Storm Fay. Mr. Hoeffner estimates a year before closeout. They submit claims to FEMA and insurance. They are going through reconciliation now to be sure the same claims have been sent to both. Ms. Lowery asked Mr. Hoeffner to talk about the Employee Health Clinic. It has been a wonderful program. It has been booked solidly. He has been impressed with the employee participation in the assessments. The unsolicited comments from staff have been positive. Mr. Hoeffner gave more information on the insurance carrier and the old County Courthouse. The carrier had only committed to $200,000 and there is $10 million in expenses. As a result of a meeting, the carrier verbally committed to $2.5 million. Policy limits are close to $6 million. They are hopeful of receiving policy limits. Citizens' Budget Committee April 15, 2011 Page 7 Dan Lutzke, Risk Manager, said the matching and mirroring of FEMA and insurance claims is a critical function. FEMA is a payer of last resort. We are in a friendly battle with tough insurance adjusters. They have collected more than $16 million from the insurance carriers. Approximately $4 million has been collected in the last year. Mr. Hensley left the meeting. Mr. Culverhouse assumed the duties as Chair. -MANAGEMENT & BUDGET -Marie Gouin Ms. Gouin introduced the Managers of Grants and Budget. She explained that she oversees the staff of Purchasing directly. $2.8 of the $4 million budget is from the Solar Energy Loan Fund (SELF). $2.5 million is for loans. The balance is for energy audits. If SELF is removed, only 6.5% is for operating. There are 14 staff members. There are no big changes from last year. The $17,000 difference in Purchasing was transferred from HR for the courier service. Overall, the budget is down by 9.9% because a grant is being expensed down. Mr. Knaggs asked about the percent from the General Fund. Ms. Gouin answered 30%. $1.2 million is for the Operations of the three Divisions. The 70% is from Grants for the SELF program. Ms. Lowery asked about the rating from Standard & Poor's (S&P). Ms. Gouin reported they called about a month ago to review the former rating. She gave history on ratings of bond issues. S&P looked at three bond issues and the overall County. They raised the Gas Tax Bond and the County from stable to strong. The review went well. Ms. Gouin, Ms. Hill, Michael Brillhart, Economic Development Manager, and Ms. Outlawwere members of the panel that spoke to the callers from New York. Our financial advisor was also on the call. They discussed revenues, trends, last year's numbers and fund balance. The grades were discussed. Mr. Kurek asked if Moody still does a rating. Ms. Gouin answered that they should, but they didn't call -MOSQUITO CONTROL & COASTAL MANAGEMENT SERVICES -Jim David Mr. David said he was going to try to make the complicated simple. Their budget was down so they didn't have a meeting with the County Administrator. The overall budgetwas reduced by $300,000. He gave percents for Personnel, Operating and Capital. The Capital money is for a grant match for the Artificial Reef Program. Mr. David explained using the reserves to balance the budget. Mr. David listed the responsibilities of the Mosquito Control District. He explained the programs of the Environmental Protection Agency (EPA). Some programs have to revise procedures and allocate resources that will reduce some effectiveness. They are trying to meet all of the basic obligations. Mosquito Control has lost eight employees the last few Citizens' Budget Committee April 15, 2011 Page 8 years. Mr. David compared the staff and population from 1982 and today. They have made improvements in electronics to help. Mosquito Control reduced their operational account by $68,000. The Erosion District is all restricted funds. He listed the duties of Erosion and the Artificial Reef Program. A portion of the Artificial Reef Program funds are restricted. They maintain nine beach parks. That is funded from the General Fund at this point. They are looking at options. Mr. David reported the Mosquito Control District has a millage. The Erosion District has a millage. The Artificial Reef Program is funded from the project reserve. The parks are funded from the General Fund, but that may change. Mr. Mundt asked about the balance of the reserves. Mr. David answered $2.7 million. Mr. Mundt asked about the emergency project funding. Mr. David said it is being funded $1.2 million for construction, adding sand to the Fort Pierce beach and $157,000 for the engineers to permit and oversee the project. They are trucking the sand in. They hit 64,000 tons the day before. The project stops at 80,000 tons. He commented on the quality of the sand and standards. The sand will last less than six months, but should protect structures. They are working with the State and Federal governments. Mr. David gave grant figures. There is a potential Mosquito Control grant. Mr. Mundt asked about erosion recommendations for South Beach. Mr. David answered that $3.5 million is being spent on studies. He gave details, requirements and funding of some of the projects,. Mr. Mundt asked about future plans. Mr. David said the South County Project is projected to have a ten year life. He told about the expectations. There is a certain amount of sand movement from any project that puts sand on the beach. The sand movements go offshore and deposits on hard bottom structures and reefs. That has to be mitigated by putting in hard bottom structures. Mr. Mundt asked if there was an alternative to dumping more and more sand. Mr. David said the process is to get a federal project designation for the area so it would qualify for federal funding. There have been designs for T-groins for Fort Pierce. Ms. Lowery clarified that the money for the studies is used to create the reports. The reports identify projects. When the State and Federal governments approve the reports and projects in them, then we can draw down money for the projects. Mr. David added that there will always have to be sand put on South Beach. Mr. Bouchard has driven in the point. The Fort Pierce Inlet interrupts the sand transfer along the beach. As long as there is an inlet, there will be a requirement to put sand on South Beach. Mr. Mundt asked about the sand trap project. Mr. David answered that it had been designed and turned into Department of Environmental Protection (DEP) April, 2010. DEP has taken no action on the project. Mr. Mundt asked if they requested funding or just an evaluation. Mr. Bouchard explained that some of the sand is coming in from the north side of the beaches. If they can dig a long, deep hole to capture the sand, it would be a sand source near the beach. The location would be inside the inlet, on the north side, in front of Citizens' Budget Committee April 15, 2011 Page 9 the State Park area. When the State embraces the plan, a public workshop will be held and the information presented to the Board. The State has been spearheading the project to move forward. Sand sources are valuable resources and we want to be smart. If the Board approves, the next steps would be final design and permitting, then funding. It might be $10 million or more, but once it is in, you should not have to do much. He thinks it would be a smart thing to do. The trigger for putting sand on the beach every two years is the high erosion area immediately south of the inlet. If they can slow the erosion, they might have to put sand on the beach every four years instead of two. The sand they place there migrates southward feeding the beaches to the south. Ms. Lowery said Mr. Bouchard has been very successful getting funding from the Federal government for the Erosion District projects. But, it has suddenly dried up. We are funding the emergency project this year because there is no money coming from the State or Federal government for the first time in a long time. Mr. Knaggs asked how much of the $17.5 million comes from the County. Mr. David answered $299,000. Mr. Knaggs asked why they need to dig a hole to trap the sand. Mr. David answered there is no permit to dredge the channel. It is different. It is possible to combine projects, but you would have to re-permit the Inlet Maintenance Permit that costs about $500,000 and takes a couple years. Mr. Pancoast said the whole north side is rock. They will dig a trench in the rock. The sand migrates through the rock. It gets swept from the inlet inside and fills up the area in the Fort Pierce Marina. Mr. David added that the sand there is mixed with sand from upland sources that is not beach sand. You cannot put that on the beach. Timing of dredging and sand source was discussed. Mr. Kurek asked about the success of the transfer stations in the south. Mr. Bouchard said they vary inlet to inlet. Jupiter has a hole inside their inlet. They bring a dredge in. Palm Beach takes the sand off North Beach and pumps it to where it is needed. As sand sources become more valuable, they are looking at other ways to do these things. Martin County has a hole in their inlet the sand drops in. They use a dredge. The cost is cheaper than off shore. Mr. Kurek asked about the millage on the Erosion District. Mr. David said it had been slightly reduced. Mr. Lounds asked about the monitoring of insecticides after application. Mr. David said the staff that collects the data that substantiates the need to spray goes back to area after spraying to verify the results. The reports are kept locally. The DEP and the Department of Agriculture will be administrating the program. Mr. Lounds asked how often they check. Mr. David said it is a new program. He is assuming they will check once a year. Staff time Citizens' Budget Committee April 15, 2011 Page 10 was discussed. Mr. Lounds asked if there was any chance that in the future there would be a resolution to the beach renourishment. Mr. David answered that as long as there is an inlet stealing sand, there would not be. Mr. Lounds asked about structures that could be put out there to stop the swirl. Mr. Bouchard said sand predominantly moves down the shore from north to south. When it comes to the inlet, it acts as a barrier. It stops sand from going to the south beaches. They know that about 130,000 cubic yards of sand per year is lost from South Beach because of the inlet. Mr. Lounds asked if what they did in Vero Beach would work on our beach. Mr. Bouchard answered that structures do not manufacture sand. No matter what you do, the inlet steals 130,000 cubic yards of sand per year. We are trying to be smart about stretching out the nourishment cycle. There is erosion on the south side of all inlets on the east coast of Florida. OTHER ISSUES Ms. Gouin informed the group of the S&P ratings. The County's overall is A+, Stable. They reaffirmed the Sales Tax bond issue is A, and the Gas Tax is A+. The State Revenue Bond went from A to A+, Stable. The Financial Management Assessment went from good to strong. Ms. Gouin asked the Chair to pass out the PowerPoint presentation Ms. Outlaw gave to the Board on April 5 regarding the Comprehensive Annual Financial Report (CAFR). Ms. Outlaw plans to make that presentation to the Committee at their May meeting. Ms. Lowery announced the changes to Strategic Planning. They expect to need more time after changes in Tallahassee. They are combining Strategic Planning and Budget Reviews sometime between July 6 and 14. They are working on a schedule. Mr. Lounds said they need the changes from Tallahassee and the property value number from the Property Appraiser's office to have all the pieces, so they can put the puzzle together. Ms. Lowery added that they would rather wait than have to asterisk every statement with depending on. It was decided to discuss having a June Committee meeting at the May 20th meeting. Ms. Gouin explained that the PAFR is the public, condensed version of the CAFR. She will have the secretary send the link to the Clerk's website for the CAFR. Mr. Knaggs suggested they review pages 22, 23 and 26. There is a lot of useful information there about the fund balance, expenditures and revenues. Mr. Lounds asked about the School Resource. Officer (SRO) issue. Ms. Lowery understands that a new or additional tax issue is dead. What the Board funded last year will be up for discussion. Mr. Lounds said it would cost a taxpayer $10-15 for a SRO; it would cost $25 if you don't have them. Ms. Lowery said the discussions with the Cities regarding the millage did not go well. There is $1.7 million in this year's County budget. The County and School Board are the only ones funding the project. Mr. Knaggs said the $1.7 million did not fund 100% of the 25 officers. Ms. Lowery thinks the School Board Citizens' Budget Committee April 15, 2011 Page 11 came up with $400,000. Mr. Knaggs believes the Sheriff has some. Mr. Mundt thanked staff for their preparation and presentation. It was an excellent session. ADJOURNMENT Mr. Culverhouse thanked Ms. Gouin and Ms. Lowery and adjourned the meeting at 9:09 a.m. Respectfully submitted by: Brenda Marlin The next CBC regular meeting will be held on Friday, May 20, 2011, at 7:30 a.m., in Conference Room #3, at the St. Lucie County Roger Poitras Administration Annex.