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07-17-2018 Council Workshop City of Clermont MINUTES COUNCIL WORKSHOP July 17,2018 The Clermont City Council met at a workshop on Tuesday, July 17, 2018, in the Council Chambers at City Hall. Mayor Ash called the workshop to order at 6:30pm with the following Council Members present: Council Members Brishke, Goodgame, Travis and Bates. Other City officials present were City Manager Gray and City Clerk Ackroyd Howe. Proposed Fiscal Year 2018-2019 Budget Discussion City Manager Gray reviewed the purpose of the budget workshops. Tonight is the first of two budget workshops. Each Department Director will present their budget in a summary format and will be available for questions. Finance Director Van Zile provided an overview of the Fiscal Year 2018/2019 General Fund budget and citywide budget highlights. The citywide budget totals $148.5 million, which is $7.5 million or 4.86 percent less than the current year budget. The decrease is due to the completion of the Victory Pointe project. Reserves at the end of Fiscal Year 2019 project to be $55.7 million, which is $3.3 million more than the current year ending reserves. The current millage rate is 4.2061 without a proposed increase for the fourth consecutive year. Amendment No. 1 provides for a third $25,000 homestead exemption for properties with a taxable value of at least $100,000 is on the ballot in November for voters to decide. If approved, the Lake County Property Appraiser has estimated the revenue loss to the city in Fiscal Year 2020 to be $800,000. There is a December workshop scheduled to discuss the specific budget impact to the city in Fiscal Year 2020 based on the likely approval. Utility Service and Impact Fee revenues projected to be $1.7 million more than the current year due to expected continued growth and rate increases tied to inflation based indexes. No other fee increases proposed in Fiscal Year 2019. Personnel Services total $30.8 million, which is $2.4 million or 8.78 percent more than the current year budget. Ten new positions in the Police and Fire Departments effective January 1, 2019 and subject to the outcome of Amendment No. 1. Four Police School Resource Officers approved by the City Council in June 2018 in accordance with the Marjory Stoneman Douglas High School Public Safety Act. Contract and merit pay increases for all eligible employees including lump sum payments for employees at the maximum of their pay grade. Operating expenses total $14.8 million, which is $528,000 or 3.69 percent more than the current year budget. Capital Outlay totals $35.4 million, which is $13.1 million less than the current year budget. The General Fund budget totals $41.1 million, which is $2.4 million or 6.25 percent more than the current year budget. The increase is primarily due to the new police and fire positions. General Fund budget funded entirely from operating revenues, with no reserves required to balance the budget for the third consecutive year. General Fund reserves at the end of the Fiscal Year 2019 projected to be$8.9 million or 28.71 percent of operating expenditures. The City's Reserves Policy requires specific funds reserves to be at least 25 percent of operating expenditures. All budgeted funds in compliance with the Reserves Policy. 1 City of Clermont MINUTES COUNCIL WORKSHOP July 17,2018 Police Chief Broadway presented the Police Department budget. The budget increase is due to new positions, replacement vehicles, portable radios, and Community Crime Reporting software. The Five Year Capital Plan includes replacement vehicles, body cameras and mobile command vehicle. Mayor Ash expressed concern with the body cameras. City Manager Gray noted it is not in the proposed budget. Fire Chief Bishop presented the Fire Department budget. The budget increase is due to eight new positions effective January 1, 2019 and subject to Amendment No. 1, special operations heavy duty trailer and portable radios. The Five Year Capital Plan includes Fire Station No. 5, Fire Station No. 5 Engine and Equipment, Fire Station No. 6 Land, Training Facility Land and Building and Fire Station No. 2 replacement. Public Works Director Brunson presented the department budget. The decrease in the budget is due to capital outlay. The significant items included in the budget are: new Public Works complex, Kehlor Building, Lake Felter Park improvements, Park improvements, Lake Hiawatha floating dock, 2"d Street and 5th Street Pier renovations, trailer mounted message board, West Beach restrooms renovations, and two replacement trucks. The Five Year Capital Plan includes Asset Management implementation, East Avenue reconstruction and Bishop Field demolition and renovations. Mr. Brunson explained the roadway plan. Parks and Recreation Director Davidoff presented the department budget. The significant budget items include Champions Splash Pad resurfacing, ARC exterior lighting and mainstage video improvements, ARC Walking Trail, ARC Storage Building, and City Center carpeting replacement. Environmental Services Director Westrick presented the department budget. The significant items included in the budget are five replacement vehicles, crane truck, Sunburst Lower Floridan Wells, Utility System improvements, and Wastewater Treatment Plant expansion. The Five Year Capital Plan includes Greater Hills Ground Storage tank, Wastewater Treatment Plant expansion and Alternative Water Supply. Economic Development Director Schmidt presented the department budget. The significant budget items include Master Plan project, Center Lake lamp posts replacements and Grants. Development Services Director Henschel presented the department budget. The budget increase is primarily due to a Land Development Regulations review, Building Plans Review services and two vehicles. Mayor Ash recessed the workshop at 8:25pm; the workshop reconvened at 8:35pm. City Clerk Ackroyd Howe presented the department budget. The budget increase is due to insurance. 2 City of Clermont MINUTES COUNCIL WORKSHOP July 17,2018 City Manager Gray presented the department budget. The increase is due to the Communications Director position. Finance Director Van Zile presented the department budget. The increase is due to a new Chief Accountant position during the Fiscal Year 2018 budget. Information Technology Director Dennis presented the department budget. The decrease in the budget is primarily due to a reduction in the installation of fiber network conduit. The significant items in the budget include Fiber-Optic Conduit, two server replacements, and SAN replacement. The Five Year Capital Plan includes fiber network conduit. Human Resources Director Dauderis presented the department budget. She reviewed the health insurance timeline and will return in October for renewal. The budget includes a 10 percent increase. Purchasing Director Suarez presented the department budget. The increase is due to the reclassification of a position. He highlighted $237,000 in savings from October 1, 2018 to July 2018 to include the fuel card program, purchasing card program, online auction program and contract negotiations. The Council approval of proposed millage rate to be included in the TRIM notices mailed by the Lake County Tax Collector's Office is on the July 24, 2018 meeting agenda. The budget adoption schedule for the First budget public hearing will be September 6, 2018 at 6:30pm to adopt the tentative millage rate and the Final budget public hearing date will be September 20, 2017 at 6:30pm to adopt the final millage rate. The fiscal year 2018/2019 budget will be effective October 1, 2018. Council Member Bates inquired about the rolled back rate. Finance Director Van Zile commented the rolled back rate is 3.94. City Manager Gray noted staff would provide more information at the next budget workshop. The next budget workshop will be July 18 at 6:30pm. With no further comments, the budget workshop adjourned at 9:02pm. 3