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08-23-12 Workshop Meeting MinutesWORKSHOP MEETING AUGUST 23, 2012 A Workshop Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Vice Mayor Thomas F. Carney, Jr. in the First Floor Conference Room at City Hall at 8:13 a.m., on Friday, August 23, 2012. Roll call showed: Present - Commissioner Thomas F. Carney, Jr. Commissioner Alson Jacquet Commissioner Adam Frankel Commissioner Angeleta E. Gray Mayor Nelson S. MCDuffie (Arrived at 8:29) Absent - None Also present were - David T. Harden, City Manager Brian Shutt, City Attorney Lanelda D. Gaskins, Deputy City Clerk Vice Mayor Carney called the workshop meeting to order and announced that it had been called for the purpose of considering the following Items. WORKSHOP MEETING AGENDA 1. FY 2013 Budget Discussion Mt. David T. Harden, City Manager, presented this item. He answered questions that were presented at the August 17, 2012 Workshop Meeting. He discussed the use of recreational impact fees pertaining to the Pompey Park concession stand /press box and the Beach Pavilion. The additional area of the Pompey Park concession stand would allow for $82,639 to be used from the Park Impact Fee Fund. The additional area for the Beach Pavilion is at $105,000 will be funded from impact fees. He discussed the furlough days — one furlough day for all employees would be $293,000 in the General Fund, for civil service it would be $58,000 and all others would have to be negotiated with the unions, and there is no reopener that would allow furlough days to be negotiated with the blue collared union this year. The Civil Service employees are behind where the bargaining unions are as far as the past pay raises. The Civil Service employees should be given an increase and any furloughs at this point would be severely damaging because a lot of cities are beginning to give small increases; this would put us in a very bad position going forward and we would lose some very valuable employees. The estimated annual savings from closing the Swii�n and Tennis Club pool is $86,400. There is surplus money in the General Construction fund that could be used to eliminate any transfer out of the operating fund. The transfer is $2.2 million and he has already recommended $1.6 million and could do another $600,000. The bids on the Federal Highway Project came in at $1.8 million above budget. The CRA indicates that they will pick up a million of the cost and we could cover an additional $800,000 from the Surplus Fund into the General Construction Fund without unpacting the budget at all If we prepay the Police & Fire Pension fund contributions which is roughly $8 million, and it is paid in December instead of spreading it throughout the year, we will save about $200,000. We need to cash in the fund balance in order to pay this in advance and make the savings. Mr. Harden discussed the research on the Tennis Facilities and stated that the contracts and deed restrictions would make it extremely difficult to sell these facilities. Discussion ensued regarding the use of the Special Projects Fund associated with the in -lieu parking /valet fees and the funds being used for parking related purposes. Mr. Carney stated that a portion of the funds used to pay the debt service on the facilities is a direct expense related to parking; and a portion of that fund can also be used to reimburse a portion of the General Fund which is used to pay the debt on the parking facilities. Mr. Harden stated that a portion of the parking fees was used when the Old School Square Garage was built and suggested to use it to pay down the debt on the garage because it is not an ongoing expense; once it is paid, it is paid Discussion ensued regarding the General Construction Funds and General Funds. Mr. Harden presented a PowerPoint presentation and discussed the projected revenues, options for balancing the budget for FY 2012 and the fire service fee scenario based on the Financial Review Board Recommendations. All of the revenues have been reviewed and adjusted estimates on that to give us about another $400,000 or so. The projected revenue is $93,643,140 and the balance needed at the current millage is $3,593,100. Mr. Harden recommended using prior year's surplus of $1,600,000 which reduces the budget to $1,993,100 needed to balance. He explained the options are 1) additional budget cuts, 2) increase revenue or 3) use more surplus. The fire service fee scenario is to reduce the millage from 7.1992 to 7.0, which reduces the CRA transfer and a net reduction of $997,443. Adoption of the fire service fee with a five (5) year sunset and residential flat fee of $85 per unit brings it to $1,993,100 to balance budget. He also presented a PowerPoint presentation on the Priority Based Budget list and briefly discussed the cost of all the city's various programs. Mr. Harden stated that his concern is the city will be looking at a 4 million gap in the budget in FY 2013/2014. He suggested restructuring the budget without using a very large amount of surplus, a one -time money source and the City will be much better during next FY budget. Brief discussion ensued regarding the fire assessment fee. Some Commissioners were in support of the fee and the others opposed the fee. Mrs. Gray suggested that the alley project in Pineapple Grove be put on hold until next year. She asked which beautification projects can be delayed, if the developer can contribute toward the Veteran's Park playground project and look into how the City can get more money for renting space at Pompey Park for the private academy. Mr. Harden explained that all the residential units near Veteran's Park will each pay a park impact fee in the future as the development to the playground occurs. This will not help with this year's budget. Mr. Carney stated he is looking for a more sustainable way to try and do the budget. He suggested cuts within the City Manager, City Attorney, Human Resources, City Clerk, Finance, Planning & Zoning, Engineering and Public Works budgets. He asked about an electronic plan submission for zoning changes and building plans. Discussion ensued regarding an electronic plan submission system. Mrs. Gray suggested cutting the Parking Management Specialist position and two (2) positions within the Parks and Recreation budget. Mayor McDuffie asked the Human Resources Director to provide a list of frozen positions. 2 August 23, 2012 Nit. Harden stated if Human Resources staff is reduced, it will force further decentralization of the Human Resources function because the central office will not be able to handle the work. Discussion ensued regarding the acceptable percentage of operating budget from reserves. Mr. Carney suggested 19% reserve requirements, which would meet the needs, keep the bond rating and allow the City to have a more sustainable budget. Mayor McDuffie suggested 20 %. Mr. Frankel suggested 20 %. Mi. Jacquet stated 18.5 %, but thinks 19% is good. Mrs. Gray suggested 19 %. Mr. Harden stated that he will respond to everything that he possibly can by the meeting next week and how the 19% will affect the overall budget. It is the consensus of the Commission for staff to respond to the questions proposed by the Commission. Discussion ensued regarding the Special Event Funding. Mrs. Gray questioned why Old School Square was not on the list and wanted to know if there were other organizations that the City contribute to that is not on the list. Mr. Harden stated Old School Square and the Delray Beach Library. Mrs. Gray asked the reason for Old School Square and Delray Beach Library not being on this list. Mr. Harden explained that they are not part of the Special Event /Miscellaneous Grant Budget. Mayor McDuffie adjourned the Workshop Meeting at 9:51 a.m. August 23, 2012 r City Clerk X PEST. n A- NLAYOR 0-11 The undersigned is the City Clerk of the City of Delray Beach, Florida, and the information provided herein is the Minutes of the Workshop Meeting of the City Comxxussion held on Tuesday, August 23, 2012, which Minutes were formally approved and adopted by the City Commission on October 2; 2012. NOTE TO READER: If the Minutes you have received are not completed as indicated above, this means they are not the official Minutes of the City Commission. They will become the official Minutes only after review and approval, which may involve amendments, additions or deletions to the Minutes as set forth above. 4 August 23, 2012