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07.09.2024 - City Council MinutesCity of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 9, 2024 CALL TO ORDER The City Council met in a workshop session on Tuesday, July 9, 2024 in the Clermont -City Council Chambers. Mayor Murry called the workshop to order at 4:00 pm with the following Council Members present: Council Members Pines, Gonzalez, Myers and Howard. Other City officials present were City Manager Bulthuis, City Attorney Mantzaris, and City Clerk Howe. OPENING COMMENTS Mayor stated this is a budget workshop and the Council will not vote on any matters. It is for discussion purposes only. AGENDA ITEMS 1. Closed Litigation Session Mayor Murry read the following statement: At this time, the budget workshop will be in recess for the council to conduct a private pending litigation session as requested by the City Attorney and as authorized by section 286.011, Florida Statutes. The session is for the purpose of discussing settlement and expense strategy for pending litigation involving the City and Coastal Investments. The City Council, City Manager Brian Bulthuis and City Attorney Dan Mantzaris will attend the session. A court reporter will be present at the session and a transcript will be available after the conclusion of the litigation. The meeting will last approximately 60 minutes and the budget workshop will resume thereafter at 5:00 p.m. Mayor Murry recessed the workshop at 4:02 pm. The workshop reconvened at 5:06 pm. 2. Review of Fiscal Year 2023-2024 and Proposed Fiscal Year 2024-2025 Budget Discussion City Manager Bulthuis stated that the City budget is comprised of multiple funds. City staff is in the process of converting to a new budget software system, OpenGov. This system will allow the public access to information. The current proposed budget for Fiscal Year 2024-2025 is on the city website for the public. Infrastructure Fund City Manager Bulthuis reviewed the Infrastructure Fund budget and explained that the funds come from the State from a formula that gives cities a percentage based on the population of the city. The city had a capitalization limit of $1,000, anything above that came from the infrastructure fund. The city has changed the limit to $5,000. City staff has begun moving purchases that previously came out of the infrastructure fund to general fund. The infrastructure fund needs a defined purpose; staff's suggestion was roads, sidewalks and big projects. There is $5.5 million in that fund; $2 million goes to principle and interest for a project done in 2017. There is $3.5 million in infrastructure funds for whatever Council determines. City Manager Bulthuis stated that the infrastructure fund would have some capital projects; staff would continue to move those projects to general fund and reserve this fund for streets. City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 9, 2024 Information Technology Director Fountain spoke to Council regarding two projects he would like to do in Fiscal Year 2024-2025. The first project is for general equipment used in the data centers. The second project is a new phone system across the city; the current phone system is at end of life. Police Chief Broadway asked for funds for replacement of police vehicles reaching end of life. Fire Chief Ezell would like funds for four vehicles and a command/training trailer. Parks and Recreation Director Forman would like to resurface the Hancock Tennis Courts; install a scoreboard at Lake Felter Park; replace chairs and lights at the Main Stage along with miscellaneous upgrades and repairs at the Arts and Recreation Center. All of these are capital projects, and asked Council for their preference to move these to general funds or continue to keep them in infrastructure funds. It is acceptable to keep them in this fund but the recommendation is to move these to general fund and keep the infrastructure fund for streets and sidewalks. City Manager Bulthuis is recommending $2 million for roads. Public Services Director Brunson explained that there have only been a total of $2.8 million allocated in the past six years to roads. The city needs to be preventative with maintenance, not reactive. City's pavement average is 83, which is good. The city needs to do more rejuvenator and micro surfacing. Public Services staff would develop a program with the $2 million next year. Allocated funds would go towards rejuvenators and micro surfacing along with designs for reconstructing roads. Staff has evaluated every road in the City and compiled a list of recommendations for repairs. City Manager Bulthuis said there is $5.5 million of reserves projected to the infrastructure fund for next year. Council discussed road and sidewalk projects and different funding sources. Mayor Murry opened public comments. There were no comments. Mayor Murry closed public comments. General Funds City Manager Bulthuis proposed a $55 million budget. He recommended keeping the millage rate the same as last year at 5.06 and use some funds from the reserves for a capital purchase. The city currently has $22 million in reserves. These funds should be for capital projects, not day-to-day operations. The city is proposing $1 million next fiscal year for a ladder truck and $2 million the next year for a pumper truck for the Fire department. There are big capital projects in the coming years and Impact Fees will not be able to cover the costs. The rolled back rate we have to advertise is 4.6216. The city would have to cut $2 million from the proposed budget if Council approved the rolled back rate. In order to keep the millage rate of 5.06 mills, it requires four votes by the City Council. Three votes would be at 4.884 mills. Council will decide on the millage rate and if lowering, will have to make budget cuts. Discussion ensued regarding property values and ad valorem rates provided to the city from the Property Appraiser. At the next City Council meeting, Council must set a maximum millage rate to advertise. City staff is recommending advertising the millage rate of 5.06 mills. City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 9, 2024 City Manager Bulthuis addressed ARPA funds. In 2021, the city received $19,359,997.00, which were divided into restricted and unrestricted funds. There are specific guidelines on the use of the funds. He provided an explanation of the usage of the funds and the remaining funds. City Manager Bulthuis provided an overview of Business Tax Receipts. Building Services Director Widican explained the purpose and the inspections triggered when a new business opens. Fire Chief Ezell explained that the Business Tax Receipts trigger the life safety inspections. Council discussed the revenue Business Tax Receipts generate, lowering the cost, changing renewals to making them renew every other year and different scenarios if the city discontinued them. Fire Chief Ezell and Building Services Director Widican explained that businesses renewing annually provides staff with the knowledge that businesses are currently operating in the city. The consensus from Council was to continue with the Business Tax Receipts. Mayor Murry recessed the workshop at 6:52 pm. The workshop reconvened at 7:07 pm. City Manager Bulthuis reviewed the City Council budget and invited Council Members to inform him of any needs or wants for next fiscal year. Council Member Howard requested video recording meetings. City Manager Bulthuis stated that staff would look into the cost. He explained that if a private entity records, the city is not required to retain the video or meet ADA requirements. There were no changes to City Council budget. Mayor Murry opened public comments. There were no comments. Mayor Murry closed public comments. City Clerk Howe presented the City Clerk budget. The department requested funds for a Senior Records Specialist position, furniture and election advertising. Council was in favor of the requests. Mayor Murry opened public comments. There were no comments. Mayor Murry closed public comments. City Manager Bulthuis presented the City Manager budget with no major changes or requests. There is a 4 percent pay adjustment budgeted next year for non -union employees. Increases to health insurance and commercial insurance were considered with the proposed budget. Finance Director Borror presented the Finance department's budget. There are no requests above operational costs. The Finance department is fully staffed which will decrease the overtime costs that have been seen in the past. Mayor Murry opened public comments. There were no comments. Mayor Murry closed public comments. City Manager Bulthuis reviewed Legal Services. The budget is for the contractual amount of $150,000 per year. The City Attorney is contractual and not hourly; this amount includes City Attorney Mantzaris consulting for litigation. Lawsuits are billed separately. Mayor Murry opened public comments. There were no comments. Mayor Murry closed public comments. 3 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 9, 2024 Development Services Director Henschel stated that his department is moving forward with the Comprehensive Plan. The funds for the Comprehensive Plan are split between this coming fiscal year and the next. Mayor Murry opened public comments. There were no comments. Mayor Murry closed public comments. Information Technology Director Fountain stated that the department has one open position. Equipment costs have increased 20 to 30 percent, which the proposed budget reflects. Fire Station 4 and some of the parks do not have fiber. Fire Station 4 was budgeted last year for fiber, due to complications that it was not completed. City Manager Bulthuis explained that staff would be coming to Council for direction on placing cameras within the City. Salary increases in the department were questioned. There have been three positions added in the last two years, which has created the increase. Mayor Murry opened public comments. There were no comments. Mayor Murry closed public comments. Finance Director Borror presented the Other General Government budget. This budget handles expenditures that cross over multiple departments. Discussion ensued regarding advertising for the city from this budget. Each department could take on their own advertising budget, if Council desires. Mayor Murry opened public comments. There were no comments. Mayor Murry closed public comments. Police Chief Broadway stated that there are currently 92 sworn officers with three current vacancies. They are asking for five additional officers. The national average is 2.3 officers for every 1,000 residents; state average is 2.5 officers for every 1,000 residents. Clermont is currently at 1.94 officers for our population. The impact fee fund includes the equipment for the five officers they are requesting. The proposed budget also includes additional positions for the police department. City Manager Bulthuis explained that the City is currently in negotiations with Police and Fire unions. He asked for an executive session on Tuesday, July 16, 2024 at 1:00 p.m. to discuss negotiations. Shane Strickland provided an update on the drone program. Discussed dispatch fees charged by Lake County Sheriff's Office for their services. Clermont has a dedicated person at dispatch versus other cities who do not. Capital projects are comprised of bulletproof vests and alternate light source for crime scene processing. Council Member Howard requested a more detailed breakdown of overtime costs for Police and Fire. Mayor Murry opened public comments. Alison Strange, 1120 W. Lakeshore Drive — expressed the need for Council to provide clear direction and prioritize how they make decisions. Mayor Murry closed public comments. 4 City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 9, 2024 City Manager Bulthuis spoke about the 12' Street property that Public Services vacated. There has been discussion about it being a Police/Fire training facility. The cost for the conversion is not budgeted. Council should think about the long-term plan for that property. r Fire Chief Ezell presented the Fire Department budget. Provided an overview of the department and staffing at each station. They are requesting three positions, which includes an additional fire inspector. Council Member Howard requested a cost benefit analysis with moving to an ISO two or three. In addition, he inquired about the consumer cost for ISO two or three rating. Fire Chief Ezell spoke about the benefits of being an ISO one rating. Council reviewed the replacement schedule of fire trucks. If Council approves the ladder truck next fiscal year and a pumper truck the year after, they will be current with the schedule. Requesting funds to renovate the new building on Montrose Street, which will come from fire impact fees. Will be going out to bid tomorrow and then will be presented to council for approval. Additional requests include desks for the new building and software/support. Mayor Murry opened public comments. Bryan Bull, President of Firefighters Union - Requested public safety salaries to be a priority. Mayor Murry closed public comments. 3.Other No further comments. CLOSING COMMENTS The next budget workshop will be tomorrow, Wednesday, July 10, 2024 at 5:00 p.m. City of Clermont MINUTES CITY COUNCIL BUDGET WORKSHOP July 9, 2024 : With no further comments, this workshop adjourned at 9:39 pm. Tracy Ackroyd Ho e,1Vf C City Clerk APPROVED: Tim Murry, May r 0