Loading...
HomeMy WebLinkAbout_2009 05 27 City Commission Workshop MinutesCITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP MAY 27, 2009 CALL TO ORDER The Workshop of Wednesday, May 27, 2009 of the City Commission was called to Order by Mayor John F. Bush at 6:00 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Mayor John F. Bush, present Deputy Mayor Joanne M. Krebs, present Commissioner Jean Hovey, present Commissioner Rick Brown, present Commissioner Gary Bonner, present Commissioner Sally McGinnis, present City Manager Kevin L. Smith, present City Attorney Anthony A. Garganese, present Chief of Police Kevin Brunelle spoke of a recent incident and arrest. PUBLIC INPUT No one spoke. REGULAR AGENDA REGULAR 600. Office Of The City Manager Requesting The City Commission To Receive An Update On The Status Of The Fiscal Year 2009-2010 Budget. City Manager Kevin L. Smith introduced this Agenda Item and handed out a document entitled "Preliminary Budget Analysis". Discussion followed on a short-fall and various options that could be considered, including possibly using some reserves as a short-term approach. CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP - MAY 27, 2009 PAGE 2 OF 9 Manager Smith then commented on the proposed Town Center parking garage, and noted, "We have nine hundred and thirty thousand dollars ($930,000.00) that we need to earmark for that purpose, as it stands today, unless the Commission does something different." City Attorney Anthony A. Garganese added, "That is a contribution to purchase specific spaces in a garage that would have to be mostly funded by the Developer - you have no Developer willing to build that garage at the moment." Manager Smith said, "The first option is go through Zero-Based, the second is we look at whatever reorganization capabilities we have at our disposal and we utilize those." Continuing, Manager Smith also spoke of issues related to staffing. Commissioner Rick Brown then stated, "If we take salaries, benefits, pension, Worker's Comp[ensation], insurance, liability insurance, overtime, there has got to be areas where it would be cheaper to out-source, than it is to provide those functions. Equipment maintenance, bucket trucks we may not need. There has got to be opportunities where out-sourcing would be a less expensive expenditure, and its stimulus for the economy to put more people to work." Manager Smith suggested, "My opinion is wherever outsourcing opportunities exist and make dollars and sense, after we put pencil to paper and analyze those, we should pursue them. Where they don't, we shouldn't pursue them." Manager Smith added, "I think we need to make sure that we do a good, logical well thought out analysis before we take any further steps." Commissioner Brown then said, "I just think there is a lot of opportunity, especially in looking at some of the combined services we have been talking about with the City of Oviedo. If we were to take those, which reduces our cost in half, and then outsource them; I think we're looking at some significant savings." Commissioner Gary Bonner mentioned the City's improved Bond Rating as noted at last night's City Commission Meeting and asked Manager Smith to "Provide good advice to us about what will be the impact to our financial rating..." Manager Smith said, "...Absolutely..." Commissioner Bonner continued, "...As a result of making a change in our reserve levels because that can have material consequences to our future. And if we don't have the subject matter expertise in house, I would certainly suggest that we exhaust all efforts to pursue the answer to that question; so, we don't do future harm for trying to solve a - what we all hope to be a short-run problem by impacting our financial strength." CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP - MAY 27, 2009 PAGE 3 OF 9 Continuing, Manager Smith noted, "Absolutely, I couldn't agree with you more. I would not even be entertaining this conversation with the Commission had I not gone through that diligent thought process. I will share a couple of things with you. Keep in mind that the 3.3 million [dollars] ($3,300,000.00) is over and above the ninety (90) day Operating Reserve. Ninety (90) days is only required by our Fiscal Policies, not by any type of Statute or what not. It is a good Policy." With further comments, Manager Smith said, "I would not make any type of recommendation to you of this type without insuring both internally and through our Financial Advisor PFM [Asset Management], that we are all comfortable with making that final recommendation. I just tonight, as I pledged to you before, wanted you to know what was going on up here; give you a snapshot, so you are getting some things as they are in progress. So, just keep that in mind." Deputy Mayor Joanne M. Krebs asked what it cost to clean up from Hurricane Charley? Brief discussion. Next, Deputy Mayor Krebs said to Manager Smith, "You and I have had conversations on if you had the position, that you would like to - do some reorganization, look at some positions..." Manager Smith remarked, "...That is correct..." Deputy Mayor Krebs continued, "...And I am fully confident in your ability and promise not to micro-manage and allow you the opportunity to come back and let us know what you are doing and - if you decide, whatever you decide; you have to be given that opportunity." With discussion on job openings and some recent position changes, Commissioner Sally McGinnis suggested, "That is the kind of data that - we are saying we want to hear." Manager Smith stated, "Sure." Manager Smith explained, "I cannot, based on this financial situation that I presented to you, see how I can recommend any Merit Raises to our employees this upcoming year. I realize that everyone's struggling, but the numbers just quite frankly aren't there and I don't know how I can do it; so the recommendation as it comes forward will not be for any Merit Raises. That's obviously up for discussion with the Commission, but as it stands today, that's unfortunately going to have to be my recommendation; again, based on what you've seen here." Deputy Mayor Krebs said, "In response to that, I would rather see us save jobs." Manager Smith added, "That is my thought process." Ms. Kelly Balagia, Interim Director, Finance Department commented on funds related to Hurricane Charley. Discussion ensued on under-Reserve levels. CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP - MAY 27, 2009 PAGE 4 OF 9 Commissioner Bonner said, "In the spirit of again, financial health, another opportunity for the General Fund surplus reserve is to shore up shortfalls in some of the other reserves, so we again have our financial house in order in all Fund Balances." Manager Smith said, "That would probably be my recommendation, going forward with the 420 Fund, is to utilize some of this 3.3 million dollars ($3,300,000.00) to help shore that up as a temporary measure, with the hopes that it will be paid back in the future when development reoccurs." Discussion. Mayor Bush said to Manager Smith, "If I am reading this right, you have reduced personnel costs to date a little over two percent (2%) - and operating costs, you have reduced fifteen percent (15%), so you've saved a million bucks already... Manager Smith stated, "...Yes..." Mayor Bush added, "Good job!" Manager Smith then said, "The Staff and I have, yes." Further comments. Commissioner Bonner asked, "Have you and your team undertaken the nuclear option and put together the list that adds up to the - four hundred seventy-one thousand dollars ($471,000.00) delta, recovering that all from Operating?" Manager Smith said, "Almost. We're in the process of doing that. We have not completed it yet, we're very close." Furthermore, Commissioner Bonner said, "One of the purposes of the City is to provide services to our customers, the citizens. Are you looking at service levels in this exercise as compared to other cities' service levels or actions that other cities may have taken or counties or whatever, in terms of adjusting their services in these tough times?" Mayor Bush remarked, "The City is run pretty lean over the years anyway, and we have fewer number of people doing some work that other cities don't." Mayor Bush added, "That kind of thinking has resulted in the Reserves being there. So - we've really prepared for the rainy day, without a doubt; but I think you're doing a good job Kevin (Smith)." Discussion followed on possible change to garbage services and possibly renegotiating Contracts, to which Manager Smith stated, "That may be something that we may need to look at." CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP - MAY 27, 2009 PAGE 5 OF 9 Staffing and hiring practices was addressed next, and Mayor Bush commented, "I would like to see us be able to do this without..." Deputy Mayor Krebs added, "...We all do...." Mayor Bush continued, "...Keeping the people working." Commissioner Jean Hovey commented on pay cuts and suggested, "I appreciate you looking at all avenues and seeing where we can cut costs, because personnel is our biggest expense." Brief discussion ensued on a possible four (4) day work week, and the number of non- exempt personnel. Commissioner Bonner then stated, "I am guessing our next Workshop will be a little bit more sleeves rolled-up and dive in?" Manager Smith said, "Yes Sir. I am not asking for anything, I just would remind you all - in the past, we haven't had these type of meetings before." Tape 1/Side B Manager Smith further explained, "My purpose in getting you this information is so you are not surprised when you receive that Budget document on July Ist, [2009]." Commissioner Bonner said to Manager Smith, "You and your team are doing the right things; your Zero-Based budgeting approach, your recognition that you can't spend any capital dollars, that decision will have to be made with the citizens reserves; and your approach at exhausting this operating deficit with additional operating expense reductions, really - taking it all the way there. I don't see how we could ask you to do more than you are doing in preparing for what are yet to be some additional difficult conversations. And that, it's just what it is and we will need to go through that process; and again, my hat's off to you and your team for preparing this way, so that we can address this process." Commissioner McGinnis stated, "I know we all regret we can't do Merit Raises right now, but maybe if you can think of some incentives over the year that you could give a little bonus to. For example, anybody that can come up with any kind of a cost-saving idea, well there could be a cash bonus for that." Manager Smith said, "We'll definitely get outside that box if you will, and look for some opportunities. We still have time to do that. Sure, be happy to." CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP - MAY 27, 2009 PAGE 6 OF 9 Commissioner Brown asked, "When will we be able to see the Capital List?" Manager Smith answered, "I can get it to you sooner rather than later, but the plan was to include it in the budget document that was going to be delivered to you on or before July 1St, [2009]." Additionally, Commissioner Brown said, "I'd like to see the list so we could start really considering..." Manager Smith stated, "...Be happy to do that." Commissioner Brown continued, "So that when we get back together, we can have a Consensus of who thinks what on what. I am assuming that you'll present options and recommendations in the Budget, right? When you bring it back to us, as far as doing away with that deficit number." Manager Smith, "Yes. That's what I briefly touched on tonight, about the options to do that were essentially, utilize reserves as a stop-gap measure, or to address personnel reductions to address the entire 471, or - a combination somewhere in between which would lower that number down." Commissioner Brown said, "I just wanted to make sure that one of the options coming back, even though we don't want to go down that road, is the elimination of that, without going into reserves." Manager Smith commented, "Absolutely, and if I wasn't clear, that will be one of the options that you are presented. I want to be sensitive to those employees that may be affected, but that will be an option brought forward." Mayor Bush added, "I think we need to remember, we have reserves for situations just like this. I mean, that is why it is there. I mean we are really well-heeled with reserves here." Furthermore, Mayor Bush said, "I think that some of the outsourcing is a possibility, but I just don't see how we can tackle it right now for this Budget year. I think it is something we would look at in the future. I just don't think - Kevin (Smith) has got the time or the Staff to really do it." Commissioner McGinnis added, "I agree." No objections were noted. Manager Smith answered, "We're going to continue to do that, if you don't mind. We're going to look for those opportunities." Additionally, Manager Smith commented, "If we identify options and opportunities, I think we should pursue them this Budget year. Some are maybe too big to bite off, but those that are, pencil to paper make good fiscal sense, I think we should pursue them or at least have that discussion." CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP - MAY 27, 2009 PAGE 7 OF 9 Commissioner Brown commented, "You don't have to go into the Budget year with that intact. You can go into the Budget year, knowing that you are going to outsource something midway through, or in second quarter, and then work toward getting the best bid." Commissioner Bonner suggested, "Closing of the gap on the 471, what I have had you say, your choices are, head count and reserves - or a combination in between." Manager Smith remarked, "Yes." Commissioner Bonner added, "What I expect to see is all of the above. A combination all the way to, if it is all head count, I expect to see an all head count scenario." Furthermore, Commissioner Bonner noted, "It just needs to be said to you, to be sure that you bring back that option which I am calling the nuclear option, which is the worst case scenario." Manager Smith said, "You've summarized my intent very well. And I will say to you - I have pledged to you before that I would bring you all options. Another option is to raise revenues, the only way to do that of any significance, is to increase the Millage. That's an option. I will not be presenting you that option; however, that option is at your disposal." Retirement contributions were discussed next. Manager Smith explained, "The Pension Fund is something we need to look at. I don't think that it's prudent for us to make a decision on that fund in the next two (2) or three (3) months. I think, quite frankly, we stick with the status quo for now, and we immediately begin studying that Pension Fund for anticipation of implementation, if any changes are made, either mid-year or next year. I think it is incumbent upon us to not make a knee-jerk reaction, to make sure we make a well-thought out, well-planned, well-studied decision that includes getting the right people in here to give us advice; engaging our employees and getting their thought process. I think that is the right thing to do. If the Commission disagrees, we can move forward." Furthermore, Manager Smith explained, "From an actuarial standpoint - I don't believe we're underfunded. We're underfunded from a market value standpoint." Discussion. Commissioner McGinnis said, "What I am hearing you say Kevin (Smith), is that you recognize that we have to deal with this; that you also recognize that it is a monumental task - and right now there is a whole lot on your plate. So, I think I am hearing you say, you know it has to be done, and you will do this, but not right now. So, you are saying, down the line, very soon, you are not saying, `No'." Manager Smith responded, "Yes, that is what I am saying to you." CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP - MAY 27, 2009 PAGE 8 OF 9 Commissioner Brown asked, "Do you have a number or will you will be working on a number with PFM [Asset Management] to decide what our reserve number really ought to be based on risk assessment over the past few years, considering the hurricanes and what not?" Manager Smith explained, "I meant to put a line item in here and designate, just my opinion, a million dollars ($1,000,000.00) for Economic Development. The Commission did previously designate this Fund Balance for Capital Projects and Economic Development, although there were no numbers assigned to it." Health insurance was briefly addressed next. Regarding Economic Development, Commissioner Bonner asked, "Is it your vision that that would be a sort of a Fund of its own, or an area where all costs associated with that and/or revenue associated with that, if there were such a thing, would all be captured under that new Fund? Manager Smith answered, "Once Randy (Stevenson, Director, Community Development Department) comes back with his recommendations for Economic Development incentives to the Commission and the Commission decides what avenues and what extent you are going to undertake Economic Development efforts, then I would be able to make that decision." Commissioner Bonner asked, "One of our opportunities to grow revenue in the future is to grow our revenue contribution, not on the backs of changing our Millage Rate, but on - welcoming new taxpayers, commercial taxpayers into our community? So, I look at Economic Development as an investment opportunity, that possibly, we could even assign a rate of return to." Discussion continued on Economic Development, Manager Smith noted, "That's why it was so important, what Commissioner Bonner spoke about, how we utilize that 3.3 million dollars ($3,300,000.00), that we take some of it as seed money." Mayor Bush added, "Economic Development like Commissioner Bonner mentioned, it's an investment, it's not an expense." Mayor Bush added, "Kevin (Smith), I think this is a good Report." Mayor Bush added, "We do appreciate getting this kind of information before July 1St, [2009]." Mayor Bush said to Ms. Balagia, "We appreciate the job you are doing too." Brief comments related to the number of employees continued. In other City business, Mayor Bush mentioned he will be resenting a Certificate of Recognition to the Winter Springs Rotary in honor of their 25 Anniversary. Discussion. CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION WORKSHOP - MAY 27, 2009 PAGE 9 OF 9 ADJOURNMENT Mayor Bush adjourned the Workshop at 7:11 p.m. RESPECTFULLY SUBMITTED: LORENZO-LUACES, MMC CITY APPROVED: M OR JOHN- . BUSH NOTE: These Minutes were approved at the June 8, 2009 Regular City Commission Meeting.