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HomeMy Public PortalAbout09-First Budget Hearing September 10, 2014CITY OF OPA -LOCKA "The Great City" CLERK'S ACTION SUMMARY MINUTES FIRST BUDGET HEARING September 10, 2014 5:01 P.M. Opa -locka Municipal Complex 780 Fisherman Street, 2" Floor Opa- locks, FL 33054 1. CALL TO ORDER: Mayor Myra L. Taylor called the meeting to order at 5:15 p.m. on Wednesday, September 10, 2014 in the Auditorium at Sherbondy Village, 215 President Barack Obama (Perviz) Avenue, Opa- locka, Florida. 2. ROLL CALL: The following members of the City Commission were present: Vice Mayor Joseph L. Kelley, Commissioner Dorothy Johnson, Commissioner Luis B. Santiago, Commissioner Timothy Holmes and Mayor Myra L. Taylor. Also in attendance were: City Manager Kelvin L. Baker, Sr. and City Clerk Joanna Flores. City Attorney Joseph S. Geller arrived at 5:25 p.m. 3. INVOCATION: The Invocation was delivered by Vice Mayor Joseph L. Kelley. 4. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited in unison. 5. FIRST READING ORDINANCES/PUBLIC HEARING: Mayor Taylor requested that the City Clerk read the ordinance titles and the vote will be taken upon the arrival of the City Attorney. a). AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA, ADOPTING THE FINAL MILLAGE RATE PURSUANT TO SECTION 200.065, FLORIDA STATUTES, FOR FISCAL YEAR 2014 -2015, COMMENCING OCTOBER 1, 2014 THROUGH SEPTEMBER 30, 2015; SETTING FORTH PUBLIC HEARING DATES; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR REPEAL OF ALL PRIOR ORDINANCES IN CONFLICT; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. Sponsored by C.M. The above ordinance was read by title by Clerk Flores. First Budget Hearing Minutes — 09/10/2014 1 Mayor Taylor opened the floor for a public hearing. There being no persons to speak, the public hearing was closed. Faye Douglas, Budget Administrator read Section 2 of the ordinance into the record as follows: "The City Commission of the City of Opa -locka herby adopts and establishes the millage rate of the City of Opa -locka for Fiscal Year 2014 -2015, commencing October 1, 2014, through September 30, 2015, at 8.9000 mills, which is $8.9000 per $1,000.00 of assessed property value within the City of Opa- locka. This represents a 4.15% increase over the rolled -back rate of 8.5454 mills. Commissioner Johnson said she noticed the City Manager provided two proposals and she needs clarification. She was under the impression that the City Commission has legislation that prohibits furlough days and at this time she cannot support including the police. In addition, the document mentions that the City Manager will release 8 temporary employees, but her last count was 49 temporary employees. She thinks the car wash is a plus for the city being that it allows for hiring of city residents. For clarification, Commissioner Johnson requested that the City Manager elaborate on her two concerns. Manager Baker said the concept of the furloughs is clearly a mechanism to balance the budget and spread the funds amongst all city employees. With regards to the car wash, the plan is to leave the personnel in place that's providing the services, but bring the car wash in house at the motor pool to an effort to eliminate the monthly rent that is being paid at the current location. The city has approximately 20 employees that is part of the jobs program and they are being paid from the Enterprise Fund and the others are filling other duties throughout the city. He has identified eight slots that he would like to use as a mechanism to balance the budget. Commissioner Johnson said to her knowledge it has always been mentioned that Public Safety is not to be included in furlough days. She asked, what is the reason for including Public Safety? Manager Baker said he is trying to spread the funds. The desire is to go to a four day work week every other week, meaning Friday there will be no city services and the gain to that are energy costs and fuel costs as a result of the facilities being closed. Other communities have gone that route and have experienced great success, but this is a mechanism to balance the budget. Commissioner Johnson asked, will the four day work week be 4/10? Manager Baker said no, it will be 4/32 on the alternate week when the organization is closed. Commissioner Johnson asked, how will that impact the city services? Manager Baker said it will clearly have some impact. First Budget Hearing Minutes — 09/10/2014 2 Commissioner Johnson asked, is she to understand that a study was done to equate to dollars? She asked is it her understanding that whatever savings the City Manager is suggesting a savings strategy has been outlined. Manager Baker said they have taken conservative estimates, not going through the full process it's a little difficult to come up with actual numbers. Commissioner Johnson asked, what is the current cost of the lease for the car wash in addition to the personnel? Manager Baker said the total cost is $24,000 per year in addition to the two employees' salary. Commissioner Johnson asked the City Manager is it his intention to discontinue the lease for the facility which will be a savings on the lease? Manager Baker said yes, the concept it to set up a similar facility at the motor pool and utilizing the same employees. Commissioner Johnson asked, what will be the cost to relocate the car wash to the motor pool compared to remaining at the current location? Manager Baker said in terms of the water cost it will be minimal because one of the requirements will be to set up a reuse system to insure the water that falls on the ground is collected and recycled. Commissioner Johnson said she has concerns as she think back to 2002 when they had the car wash at the Public Works Department. Mayor Taylor requested that the record reflects that the City Attorney has arrived. Vice Mayor Kelley called for a point of order, a lot of discussion is taking place without a motion being taken. It was moved by Commissioner Santiago, seconded by Commissioner Johnson to discuss the ordinance. Commissioner Santiago said at a previous meeting his colleagues make recommendations to lower the millage rate. A year ago the City Commission had a lot of dialogue regarding the city car wash being in house or at another location and he recall them talking about purchasing equipment that would have cost the city over $30,000. At this time he does not see how this will help balance the budget. He further said two furlough days is not enough to balance the budget. He asked the City Manager did he take into consideration the people that earns over $70,000, $85,000, $100,000 per year in addition to their car allowance? First Budget Hearing Minutes — 09/10/2014 3 Manager Baker said there are only three people that receive a car allowance. Commissioner Santiago said the only problem he see between the 8.0 and 8.9 millage rates are the twelve employees the City Manager is recommending laying off. Commissioner Holmes said during the last budget process he recall speaking on against the furlough days because he did not support it, however they did not adopt legislation to give the City Manager directives regarding the furlough days they just accepted the recommendation for the budget. This year when one of his colleagues sponsored legislation to discontinue furlough days he was under the impression that the employees did not have to take anymore furlough days, but since that time the employees have been taking furlough days. He understand the City Manager wants to spread the pain, but think about the people that makes $30,000 per year compared to those making $50,000- $60,000 per year. He supports the City Manager one hundred percent but when it gets down to furlough days they need to look into it. He said when they relocated from 780 Fisherman it was suppose to be a saving of over $300,000, that should be added to this year's budget. Vice Mayor Kelley said he is disappointed because they proposed 8.9 because it looks better. He was hesitant about 9.1 and he supported it because once the tentative millage rate is set you can't go higher but it can be lowered now they are having challenges. He will save his questions for the general fund, because that's where most of them are. To his colleagues, 8.9 they are either going to go with that or go down then determine how they are going to allocate the dollars. Commissioner Johnson said from the Town Hall they came up with two figures which were 8.0 and 8.5, 8.9 came up later, but she does not see the difference. She asked, was 8.5 considered? Manager Baker replied, no. He just followed the resolution that was approved to bring back an option for 8.0. Commissioner Johnson said at the Town Hall meeting citizens stressed their taxes and the burden it is causing them. She cannot support the employees taking furlough days. They knew since October 2013 the position the city was in, but when she look at the Accounts Payable and see the hiring of 49 temporary employees. If they were serious about the budget, then they will keep an eye on the salary caps. She cannot support the layoffs with 8.0 or 8.9 when there are individuals that have not received an increase in nine years. She thought they would have been in a better position, because each meeting the Mayor says she does not want to be in the red and staff says we are not. She suggested looking at collateral assignments (i.e. secretaries) have a pool, have as needed temporary staff. Some of the temporary employees are making more than the people that has been here. She is aware of one temporary employee that was supposed to be employed for six months and she has been with the city for three years. Staff can save money with gasoline by carpooling. For the three that receives car allowance, it is not necessary for them to get it and if it is, where is the justification for someone to receive $500 per month for a car allowance. The office supplies need to be stored in one location and each department has to justify the use of the supplies. If you don't have good employee morale then you will not get the services you need from staff. First Budget Hearing Minutes - 09/10/2014 4 She asked Manager Baker, is he at his deadline? Manager Baker said no, this is only the first reading. Commissioner Johnson said she hope the City Manager go back and study the dialogue they are having. Commissioner Santiago they have to get together to resolve the budget for the upcoming fiscal year. He asked, how much does it cost to run the city on a daily basis? Ms. Douglas the cost will be $13 Million divided by 365. Commissioner Santiago requested to have the exact amount by tomorrow morning. He does not want to lay off employees to balance the budget; they need to see how they can save money by going to four day work weeks. Commissioner Santiago said he would like to make an amendment to set the tentative millage rate at 8.0. Commissioner Johnson said she would like a friendly amendment to the figures. It is her desire to set the millage rate at 8.0, however she think it will be hard so she would like to meet half way at 8.5. Attorney Geller said to Commissioner Johnson if it is her intention to support the 8.0 she can second the motion, if she wants to make a different amendment then don't second the motion. Mayor Taylor said Commissioner Santiago's amendment dies for lack of a second. To the City Attorney, Commissioner Johnson asked, where they are now with the first reading, will they have an opportunity to make any changes at the second reading to allow the City Manager to come up with a strategy looking at the 8.5? Attorney Geller said what's in front of them is what is in the agenda, which is 8.9. Commissioner Santiago's amendment for 8.0 did not get a second. If it is Commissioner Johnson's pleasure to move a different amendment to 8.9 she is privileged to do so and if it gets a second then the City Manager has to work with it. Note: This portion of the minutes is transcribed in verbatim form. Commissioner Johnson: I will support the 8.9, but with the idea Mr. Manager that you are to strive very strongly and I always remember what Commissioner Holmes said if we don't put it in legislation you don't have to do it so that's where my temperament is, am I clear of the intent, if not Mr. Attorney bring back a ordinance taking it to 8.5 for consideration, but I would like for you prior to coming back Mr. Manager, before I make my motion that you are to get face to face with each person and with your team to strive very hard to come back to 8.5 w ith that understanding I can support what we have here on record, but with the understanding we have to look at that. Are we on the same page. First Budget Hearing Minutes — 09/10/2014 5 Manager Baker: Yes Ma'am. Attorney Geller: And that is legally permissible. Commissioner Johnson: To the Mayor and to my colleagues I would like to say thank you. Commissioner Holmes: I would like to second this if I am hearing the right thing. She is going with 8.9, but she is hoping that the Manager find a way to go down to 8.5. Note: This concludes the verbatim portion of these minutes. Attorney Geller informed the City Commission that they have to separate the motions. First they can pass what is before them, and then Commissioner Johnson can make her motion. There being no further discussion, the motion passed first reading by a 5 -0 vote. Commissioner Johnson Yes Commissioner Santiago Yes Commissioner Holmes Yes Vice Mayor Kelley Yes Mayor Taylor Yes It was moved by Commissioner Johnson, seconded by Commissioner Holmes asking the City Manager to do everything possible to set the millage rate at 8.5. Vice Mayor Kelley said they just passed 8.9, now they are discussing to reduce the millage to 8.5. If staff is looking at 8.9 based on the information that has been provided, what will they do to reach 8.5 that will not have a harder impact? Manager Baker said all is can promise is to go back to the drawing board and rethink to see what he comes up with. There being no further discussion, the motion passed by a 5 -0 vote. Commissioner Holmes Yes Vice Mayor Kelley Yes Commissioner Johnson Yes Commissioner Santiago Yes Mayor Taylor Yes b). AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA, APPROVING AND ADOPTING THE CITY'S GENERAL FUND BUDGET FOR THE FISCAL YEAR 2014 -2015, COMMENCING OCTOBER 1, 2014, THROUGH SEPTEMBER 30, 2015; PROVIDING FOR THE EXPENDITURE OF FUNDS ESTABLISHED BY THE BUDGET, AUTHORIZING THE CITY MANAGER TO TAKE CERTAIN ACTIONS; PROVIDING FOR APPROPRIATION OF ALL BUDGET EXPENDITURES; PROVIDING FOR FEES CONSISTENT WITH First Budget Hearing Minutes — 09/10/2014 APPROPRIATION AND AMENDMENT; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR CONFLICT AND REPEALER; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. Sponsored by C.M. The above ordinance was read by title by Clerk Flores. Mayor Taylor opened the floor for a public hearing. There being no persons to speak, the public hearing was closed. It was moved by Commissioner Holmes, seconded by Commissioner Johnson to discuss the ordinance. Vice Mayor Kelley made reference to the budget book. One of the things that were mentioned was One Million Dollars in savings that will be carried over from the general fund. He asked, is that amount included in the numbers? Manager Baker said that is still being looked at. Vice Mayor Kelley said he does not want the staff to take furlough days. In addition, he was under the impression when the legislation was passed for the red light camera it was going to be beneficial to the city and they were supposed to be able to recoup $300,000- $400,000 of revenue. Manager Baker said they did resolve the discrepancies they had in the past, in the new contract they are making money because the city get its share of the revenue on the front end as oppose to getting it on the back end. Vice Mayor Kelley said in terms of several of the deficit funds, particularly the youth academy, crime prevention, and the vawa fund. All of those were in a deficit in funds and the 2013 audit report noted the deficits. Ms. Douglas said the audit report should have read 2012. Vice Mayor Kelley asked, is the budget still carrying these programs? Ms. Douglas said no, the city is not carrying any of the special revenue funds. They are currently showing deficits, but it will be the responsibility of the general fund to clear up the deficits. All of these are separate funds and they are currently showing a deficit. Vice Mayor Kelley asked, are we required to deal with those deficits? Ms. Douglas replied, yes. Vice Mayor Kelley said they have been in a deficit for a few years, is it a time frame for the city to deal with them? Ms. Douglas said she is not sure of the time frame. First Budget Hearing Minutes - 09/10/2014 7 In terms of the reserve account, Vice Mayor Kelley said the account current has $244,000 and they plan to replenish $6,000 by the end of the fiscal year. They have to deal with keeping the reserves as reserve and some cities split their reserve by general reserve and emergency reserves and if he has to sponsor legislation then he will, because he is concerned if something does occur. According to the documents provided, personnel cost is 68% of the general fund. He noticed some of the budget items has an increased benefits cost. He asked, for clarity of what that line items Intel's. Ms. Douglas said the increase benefit cost covers retirement because it increases every year. Vice Mayor Kelley said he notice a decrease in service charges, he asked where are the charges coming from? Manager Baker said it is a blend. Vice Mayor Kelley said he notices an increase in Parks & Recreation and they had an issue with overtime, but he is sure that is taken care of. How many free programs does the city have? He further said there needs to be a charge for some of the programs and they have to be beneficial for our residents. He further asked for an explanation on citywide Christmas trimming. Ms. Douglas said that is for the Christmas tree and lightning at historic city hall. Vice Mayor Kelley said he was disturbed when he read the proposed 2014 -2015 budget and notice the cost of fuel was $72,000 due to increased Solid Waste collection by city staff. Why would the city need to spend that amount of money when they have a private company that does the collection? Ms. Douglas said they look at the total cost of fuel and apply it throughout all the funds. Vice Mayor Kelley asked, when the budget is adopted, will all the vacant positions be filled? Manager Baker replied, yes. Vice Mayor Kelley asked the City Manager is it his intent to have a pool of secretaries? Manager Baker said he can look into it. Vice Mayor Kelley said the City Clerk's budget is budgeted for an Assistant City Clerk, regular staff, and another employee. He asked, is the Assistant City Clerk position still in the budget? Clerk Flores said the Assistant City Clerk position is still in the budget. In addition, one of the employees in the City Clerk's Office will be transferring to another department so there will be a savings because the office will consist of four people. First Budget Hearing Minutes — 09/10/2014 8 Vice Mayor Kelley asked, is the Assistant City Clerk position still vacant? Clerk Flores replied, yes. Commissioner Johnson said $82,000 was budgeted for equipment in the Parks & Recreation budget. She asked, has the equipment been purchased? Manager Baker said the plan is to get the equipment. It was concluded that they cannot utilize the bid they were originally using. Commissioner Johnson asked for clarity on the franchise fees. Manager Baker said the fees are projected based on when an applicant submits the application to start the process. Commissioner Johnson said she received calls from businesses regarding the Fire Hydrants. It is her understanding that staff budgeted $4.5 Billion Dollars for Fire Hydrants, but she was told by the business owners that they also pay Miami -Dade County for the Fire Hydrants. For the record, she would like to schedule a meeting with the City Manager to address those concerns. There being no further discussion, the motion passed first reading by a 5 -0 vote. Vice Mayor Kelley Yes Commissioner Johnson Yes Commissioner Santiago Yes Commissioner Holmes Yes Mayor Taylor Yes c). AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF OPA- LOCKA, FLORIDA, APPROVING AND ADOPTING THE CITY'S PROPRIETARY AND SPECIAL REVENUE FUND BUDGET FOR THE FISCAL YEAR 2014 -2015, COMMENCING OCTOBER 1, 2014, THROUGH SEPTEMBER 30, 2015; PROVIDING FOR THE EXPENDITURE OF FUNDS ESTABLISHED BY THE BUDGET, AUTHORIZING THE CITY MANAGER TO TAKE CERTAIN ACTIONS; PROVIDING FOR APPROPRIATION OF ALL BUDGET EXPENDITURES; PROVIDING FOR FEES CONSISTENT WITH APPROPRIATION AND AMENDMENT; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. Sponsored by C.M. The above ordinance was read by title by Clerk Flores. Mayor Taylor opened the floor for a public hearing. There being no persons to speak, the public hearing was closed. It was moved by Commissioner Holmes, seconded by Commissioner Johnson to discuss the ordinance. First Budget Hearing Minutes — 09/10/2014 9 Commissioner Johnson said on several occasions she expressed her concerns regarding staff salary coming from the franchise or enterprise, but her concerns were never addressed. There being no further discussion, the motion passed first reading by a 5 -0 vote. Commissioner Johnson Yes Commissioner Santiago Yes Commissioner Holmes Yes Vice Mayor Kelley Yes Mayor Taylor Yes 6. ADJOURNMENT: There being no further business to come before the Commission, it was moved by Commissioner Johnson, seconded by Commissioner Hol s to adjourn —tire meeting at 6:51 p.m. MAYOR TTEST: u---7 CITY CLERK First Budget Hearing Minutes — 09/10/2014 10