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HomeMy Public PortalAbout10-October 27, 2016 First Budget Hearing CITY OF OPA-LOCKA "The Great City" CLERK'S ACTION SUMMARY MINUTES FIRST BUDGET HEARING THURSDAY, October 27, 2016 5:01 P.M. Sherbondy Village Auditorium 215 Perviz Avenue Opa-locka,FL 33054 1. CALL TO ORDER: Mayor Myra Taylor called the meeting to order at 5:01p.m. on Thursday, October 27, 2016 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: Mayor Myra L. Taylor, Vice Mayor Timothy Holmes, Commissioner Joseph L. Kelley and Commissioner John Riley. Also in attendance were: Acting City Manager Yvette Harrell, City Attorney Vincent T. Brown, and City Clerk Joanna Flores. Commissioner Luis B. Santiago was not in attendance. 3. INVOCATION: The invocation was delivered by Commissioner Joseph L. Kelley. 4. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited in unison. 5. FIRST READING ORDINANCES/PUBLIC HEARING: a) 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 2016-2017, COMMENCING OCTOBER 1, 2016, THROUGH SEPTEMBER 30, 2017; 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 CONFLICT AND REPEALER; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. Sponsored by City Manager The above ordinance was read by title by Attorney Brown. Mayor Taylor asked the city attorney to explain why the budget hearings had to be redone. First Budget Hearing Minutes—10/27/2016 1 City Attorney Brown said that there were amendments made to the last budget after it was approved by the commission during the first previous budget hearing; as a result, there were conflicts between the City and the state and the hearings had to be done again. Mayor Taylor asked if there was anything that the finance director needed to explain. City Attorney Brown said that if the finance director wanted to come before the commission and speak on the mileage rate, then she is free to do so. If there are any changes in the budget between the first and second reading and the final adoption, then the finance director needs to explain this. Charmaine Parchment, Finance Director, said that the budget in front of the commission was prepared with a mileage rate set at 10.0 for the general fund ad velorem revenue. Each one of the revenue sources was prepared using the actuals from 2014 to date. An average of that amount was budgeted at ninety five percent (95%) for each revenue source. Each account had a cash balance and that balance was added to the budget showing that it exists even though it is not being used. There was five hundred thousand dollars ($500,000.00) set aside as required. The cost associated with employees that separated from the City was added as well as the encumbrances from 2016 that are owed but not yet paid. These balances will show up under the city manager's budget and water and sewer. All of the water and sewer debt that is owed to Miami-Dade County has not been added in as the City cannot afford to pay back the whole debt, but it does recognize that the money is owed to the county. City Manager Harrell said that there was also a replacement of the funds that were taken from the commission as the funds are chartered items and is considered a violation for not adhering to it. Mayor Taylor opened the floor for a public hearing, there being no persons to speak on the public hearing, the public hearing was closed. It was moved by Commissioner Riley, seconded by Commissioner Kelley for discussion. Commissioner Kelley asked the finance director how much appropriation has been set aside in this year's budget to show good faith to repay the county for water and sewer. Is it monthly or annually? Charmaine Parchment, Finance Director, said that the City is in talks with the county right now to come to an agreement to repay the water and sewer debt. Right now five hundred thousand dollars ($500,000.00) is set aside for repayment. Commissioner Kelley asked how much funds are owed to the City from the CRA Agency. Charmaine Parchment, Finance Director, said that she does not know the exact number, but it is about five hundred thousand dollars ($500,000.00). Commissioner Kelley asked how much the City will owe the CRA Agency in terms of how the setup is. First Budget Hearing Minutes—10/27/2016 2 Charmaine Parchment, Finance Director, said that the City owes twice what the county pays which is seventy seven thousand dollars ($77,000.00); that makes it about one hundred and forty four thousand dollars ($144,000.00) that the City has to pay back to the CRA Agency. Commissioner Kelley said that if this budget impacts the employees going back to forty (40) hours per week, when will it take effect. City Manager Harrell said that as soon as the final budget is approved by the oversight board, it will take effect immediately as long as there are no changes that the board recommends. Commissioner Kelley said that as long as the commission approves the final budget, he hopes that the employees will be able to return to their whole salaries before the Thanksgiving holiday. Commissioner Kelley asked the manager if there will be any more layoffs after the final budget is adopted. City Manager Harrell said that there will be no more staff cuts contemplated once a final budget is adopted. Commissioner Kelley said that he does not want to see a list of employees down the line that will have to be laid off to make the budget feasible. He hopes there will be no more layoffs. Vice Mayor Holmes asked the manager how many employees have been laid off so far. City Manager Harrell said that there have been four position eliminated and two layoffs. Vice Mayor Holmes asked how many employees are currently on the City's payroll? Charmaine Parchment, Finance Director, said that according to the payroll list in front of her there are currently one hundred and fifty seven (157) employees on the payroll. City Manager Harrell said that the budget is being passed as is, but the state may still come back and recommend employee layoffs. Vice Mayor Holmes asked the city manager how many more employees will be laid off. City Manager Harrell said that no one will be laid off at this time, salary cuts may be made across the board and some employees may be reclassified, but no one else will be laid off unless a recommendation is given by the state. Vice Mayor Holmes asked the city manager what is the total number of employees that should be employed with the City. City Manager Harrell said that according to a report from ten years ago, the total number of employees on the payroll should be between one hundred and thirty five and one hundred and fifty five (135-155). Vice Mayor Holmes asked if additional salary cuts will be made. First Budget Hearing Minutes—10/27/2016 3 City Manager Harrell said that only if the expenditures require any additional cuts to make up the budget. Vice Mayor Holmes said that he does not understand what is going on with the employees' salaries; if about fifty people have been laid off since last year, then why is the City still laying off more employees and bringing existing employees from a 32 hour work week back to a 40 hour work week only to cut them again by one to two percent (1-2%). City Manager Harrell said that when the previous management provided the budget for the fiscal year, they did not factor in several expenditures like the monies that were owed to vendors and the monies that were owed to Miami-Dade County, etc. Vice Mayor Holmes asked the finance director how much money is in the bank currently. Charmaine Parchment, Finance Director, said that right now there is about seven hundred thousand dollars ($700,000.00) in the general funding account and about three million dollars ($3,000,000.00) in the water and sewer accounts. City Manager Harrell said that it was said that the City should have been bankrupt since August, but not only has revenue been coming in in addition to the cuts that were made; the City hopes to start receiving the ad velorem dollars to help keep the City afloat. Vice Mayor Holmes said that since there have been layoffs and other cuts, then why does the motor pool and the police department look the way it does. He said that he will hold off on what he really wants to say. Commissioner Riley asked the finance director if the numbers in the budget were actual since they were unaudited. Charmaine Parchment, Finance Director, said that those are the numbers that the City currently has and they are accurate. They may change once the audit has been completed. Commissioner Kelley asked the city manager where in the budget does it identify the monies that are owed to the City. Charmaine Parchment, Finance Director, said that she did not include anything specific in the budget since she knew that the City would not receive any money for it; a projected budget has been included in the past. Commissioner Kelley said that he would like for the attorney to prepare legislation to reflect a projected budget in the future. Even if there is no money, this should be done so that when funds are available, the City can repay its debt. He asked the finance director if the water deposit refunds were included in the current budget. Charmaine Parchment, Finance Director, said that the water deposits were included in the budget and the City has been paying refunds to the residents that have not been receiving their deposits after closing their accounts. First Budget Hearing Minutes—10/27/2016 4 Commissioner Kelley said that he hopes that processes are put in place so that when the customer closes their accounts, they do not have to wait for months or be told that the state is holding their refunds. City Manage Harrell said that there is a process in place to prevent the water deposits from going into the general funding accounts. Vice Mayor Holmes said that all of the layoffs and cuts that have been made have caused certain departments to be short staffed. He asked when the City will be able to fill vacant positions where services are affected. He said that he does not understand. There being no further discussion, the motion on the ordinance passed by a 4-0 vote. Commissioner Kelley Yes Commissioner Riley Yes Commissioner Santiago Not Present Vice Mayor Holmes Yes Mayor Taylor Yes b) 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 2016-2017, COMMENCING OCTOBER 1, 2016, THROUGH SEPTEMBER 30, 2017; 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 City Manager The above ordinance was read by title by Attorney Brown. Mayor Taylor opened the floor for a public hearing, there being no persons to speak on the public hearing, the public hearing was closed. It was moved by Commissioner Riley, seconded by Vice Mayor Holmes to pass the ordinance. There being no further discussion, the motion on the ordinance passed by a 4-0 vote. Commissioner Riley Yes Commissioner Santiago Not Present Vice Mayor Holmes Yes Commissioner Kelley Yes Mayor Taylor Yes 7. ADJOURNMENT: There being no further business to come before the Commission, it was moved by First Budget Hearing Minutes—10/27/2016 5 Commissioner Riley, seconded by Commissioner Kelley to adjourn the meeting at 5:47 p.m. YO/' ATTEST: 4t,„, CITY CLERK First Budget Hearing Minutes—10/27/2016 6