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Home My WebLink About_2003 06 23 City Commission Workshop Minutes CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP JUNE 23, 2003 CALL TO ORDER The Workshop of Monday, June 23,2003 of the City Commission was called to order by Mayor John F. Bush at 5:00 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Mayor John F. Bush, present Deputy Mayor Robert S. Miller, present Commissioner Michael S. Blake, present Commissioner Edward Mmiinez, Jr., absent Commissioner Sally McGilmis, present Commissioner David W. McLeod, present City Manager Ronald W. McLemore, present City Attorney Anthony A. Garganese, absent AGENDA 1. A. Office Of The City Manager Budget Review For FY 04. Tuscawilla Lighting Ami Beautification District: Ms. Louise Frangoul, Finance Department Director presented this Budget. Discussion. Mr. Donald A. Gilmore, Chairman, Tuscawilla Lighting and Beautification District Advisory Committee said to the City Commission, "The TLBD [Tuscawilla Lighting and Beautification District] group - unanimously supports this Budget." Discussion. Oak Forest Wall And Beautification District: Ms. Frangoul presented this Budget. CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - JUNE 23, 2003 PAGE 2 OF 5 Discussion developed regarding the Oak Forest Debt Service Fund. Commissioner Blake asked, "Why wouldn't we want to look at refunding this at the moment - as opposed to waiting until five (5) years? I think we probably ought to look at refinancing this with a time to know when we are going to pay it off. We could probably do it in fifteen (15) years at that rate, or maybe even bring it out to twenty (20). Either way is fine with me but we ought to lock in some lower rate right now." Ms. Frangoul said, "Okay, we will look at that." Mr. Terry Patten, Chaimlan, Oak Forest Wall and Beautification District Advisory Committee stated, "I would just like to comment - Alan Hill [Superintendent, Public Works Department] has been extremely helpful in helping us to understand just exactly what is going on during this transition - with the implementation of the Urban Beautification Coordinator, and helping us to understand just exactly what is needed and required. So I wanted to give the accolades where they have been earned and that is for Alan Hill. Everything seems to be running quite smoothly!" Employee Benefits: Mr. Donald D. Chapman, E.A., M.A.A.A., lI1.S.P.A., Consulting Actuary, Retirement Plan Specialists, Inc., 2 Lawn Street, Oviedo, Florida: introduced and distributed charts which illustrated "Costs on the first day of the Plan Year;" and further addressed the City Commission. Discussion. Deputy Mayor Robert S. Miller departed the Commission Chambers at 5:37 p.m. Tape l/Side B With further discussion, Commissioner Blake asked, "If we operate the Plan today based on recommendations, and we have the same investment performance over the next three (3) years that we had over the last three (3) years, and - we have the same employment retirement factors as we had the last three (3) years going forward three (3) years, what would be the status of the Plan?" Mr. Chapman responded, "If we had one (1) favorable investment experience going forward, there is no question your costs will be going up. But we are using an evaluation method for assets that helps to soften the effect of the market. " Deputy Mayor Miller returned to the Commission Chambers at 5:45 p.m. Discussion. CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - JUNE 23, 2003 PAGE30F5 Commissioner Blake then asked Mr. Chapman "To demonstrate to me mathematically how you came up with your answer." Mr. Chapman responded, "That is not a problem. If you want that demonstrated - if you want to pay to have that done, we would be happy to do that." City Manager Ronald W. McLemore asked the City Commission to "Tell us where you want to be" with the Retirement Plan. Deputy Mayor Miller stated, "I do not have any problem with the thirty (30) year program." Commissioner Blake stated, "I do not think thirty (30) years is the right time and I do not think it is prudent to move the age to sixty (60)." Discussion. Commissioner David W. McLeod said, "My suggestion would be that we put this on the back burner for our next Meeting and allow the Commissioner [Blake] to be able to sit down with him." Commissioner McLeod added, "It just needs to be a Work Session. If the Commissioner is willing to look at how you got there, to look at your example, and to be able to come back to the Board and say, seeing the example I still do not agree and here are my reasons. And then you can also give your reasons as to why you still agree - or you may have some changes or some combination in between. I would think that would be the best way to work through this and to use the knowledge that we have up here." Deputy Mayor Miller said, "I personally would rather just go ahead with the consensus here tonight. I have no objection to Commissioner Blake sitting with this gentleman next week or whenever he wants. And if he wants to bring back some - points that might make me change my mind, that would be fine also." Commissioner Sally McGinnis suggested, "If it is the pleasure that we ask these two (2) people to sit down together, 1 would request that that be an expanded group beyond just two (2)." Manager McLemore stated, "I think the better thing to do in this situation is for the Commissioner [Blake] to let Don [Chapman] know what his questions are and what additional data he would like to see; and let Don [Chapman] generate that information and bring it back to this group." Next, Mayor Bush stated, "It appears to me that Commissioner Blake is lobbying for a very conservative - fifty-five (55) years retirement age, across the Board, and I don't believe he stated an Interest Rate of the Investments, but I think the eight percent (8%) - makes sense. What I would like to know is - take the most conservative - and say 'How much is it going to cost us to do that this year?'" Mayor Bush added, "How much are we going to have to raise taxes?" CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - JUNE 23, 2003 PAGE40F5 Mr. Chapman responded, "If you leave the normal Retirement age at fifty-five (55), and you drop the interest rate down to eight percent (8%), you are looking at a cost of around sixteen percent (16%) to cover payroll." Mayor Bush then inquired about the dollar amount." Ms. Frangoul stated, "$450,000..." Commissioner Blake said, ". ..Annually..." Manager McLemore stated, ".. .He is asking - based on what amortization..." Mayor Bush suggested, "... That might be something you could come back with later." Discussion. Manager McLemore then suggested, "I think what we can do is make up another schedule showing you the fifty-five (55) with a number of different options and then you can have it at age sixty (60) with another set of options - you are going to have to get to the point where you are collectively comfortable knowing you cannot predict exactly where things are going to be. If you had huge earnings over the next three (3) years, this whole discussion does not mean anything except you are going to have to sit down and think again where is the reasonable position to be - so I think what we should do Don [Chapman], if you all are comfortable with this, we will just work up another set of schedules for you to look at and try to get you to a point where you feel like you can make a reasonable decision." Commissioner Blake commented, "Mayor, I would be more than happy to take some time and sit down with Mr. McLemore or Mr. Chapman or anybody else that wants to join in. It is not a closed issue, and we could go over some of the nuts and bolts, and talk about some of the realities that we face coming forward." Manager McLemore requested of Mr. Chapman, "If there is other specific data he [Commissioner Blake] wants you to generate and bring forward, that we have it prior to that Meeting." Mr. Chapman added, "If there is anything he would like to see and wants us to demonstrate for him, I would be happy to do so, but he needs to let us know exactly what it is he is looking for. If he has got certain assumptions in mind then I would be happy to discuss it with him." Deputy Mayor Miller stated, "If we are going to do this I would like to see it by next Monday [June 30, 2003]. I do not feel I have to be in there but I would like to see all of your assumptions in the aggregate." Commissioner Blake added, "It probably will not be able to happen and be done by next Monday [June 30, 2003]." Mr. Chapman also stated, "I do not think I can do anything before next Monday." Commissioner Blake then said, "I will- talk with Ron [McLemore] and we will get it figured out." ADJOURNMENT Mayor Bush adjourned the Workshop at approximately 6:22 p.m. RESPECTFULLY SUBMiTTED: HOLLY N. PIERSTORFF, ASSIST ANT TO THE CITY CLERK l-."( (- ...;. '-: ". ) " ; ~~' . - -... . ..-. - .... ,.;,' ,f " , (; .'- I . ."" >;.-- -, ,- ! ~I>V~-=:- "--:'?_~ ~ 'SREN20-LUACES, CMC RY~ ::::., ,...- <:.. - ",. -. ,/ ,,'- - ~ ,_ . __.r >," ~.,. ~- . ;. CITY OF WINTER SPRlNGS MINUTES CITY COMMISSION WORKSHOP - JUNE 23, 2003 PAGE50F5