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CITY COUNCIL MINUTES Budget Workshop Meeting 8-19-91 /0N••••• City Council Chambers 735 Eighth Street South Naples, Florida 33940

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CITY COUNCIL MINUTES Budget Workshop Meeting 8-19-91 /0N••••• City Council Chambers 735 Eighth Street South Naples, Florida 33940 CITY COUNCIL MINUTES Budget Workshop Meeting 8-19-91 /0n••••• City Council Chambers 735 Eighth Street South Naples, Florida 33940 -SUBJECT- IPAGE BUDGET PERSPECTIVE - CITY MANAGER EXECUTIVE SUMMARY POLICE DEPARTMENT S.T.A.R. POLICE DEPARTMENT - CIB POLICE DEPARTMENT- POLICE OPERATIONS POLICE DEPARTMENT - POLICE SERVICES CAPITAL IMPROVEMENTS BUDGET - POLICE DEPARTMENT eV, CITY COUNCIL MINUTES Budget Workshop City Council Chambers Time 6:06 p.m. 735 Eighth Street South Naples, Florida 33940 Date August ]9, 1991 Mayor Anderson called the meeting to order and presided. ROLL CALL: VOTE A Present: Kim Anderson, Mayor 0 John M. Passidomo, Vice Mayor 0 COUNCIL 0 MEMBERS R. Joseph Herms 0 Alan R. Korest Paul W. Muenzer Fred L. Sullivan Council Members Also Present: Dr. Richard L. Woodruff, Norris C. Ijams, City Manager Asst. City Manager Bill Harrison, Paul Reble, Finance Director Police Chief Paul Sireci, Tom Smith, Police Captain Acting Fire Chief James Byrne, Mary Kay McShane, Police Captain Human Resources Dir. Noah Standifer, James Dean, Planning & Research Parks & Parkways Technician Supervisor Tara Norman, George Henderson, Public Info. Officer Sergeant-At-Arms Marilyn McCord, Recording Secretary Other interested citizens and visitors. *** *** * * * BUDGET PERSPECTIVE - CITY MANAGER City Manager Woodruff announced that this was the first budget which the new management team has had an opportunity to present and that it had been made possible through a tremendous effort by staff. He emphasized that whatever Council determines is best for the City would be implemented by staff. With the use of visual aids, Dr. Woodruff described to the assemblage what could be VOT. CITY OF NAPLES, FLORIDA M S A 0 E B /-- City Council Minutes Date 8-19-91 T C S I 0 Y E COUNCIL ONENN MEMBERS NDSO T , purchased for $300.00, or $25.00 a month, and then City services which could be obtained for the same amount. Throughout the budget workshops, Dr. Woodruff used the example of a $300,000.00 home ($325,000.00 residence less a $25,000.00 homestead exemption) paying approximately $300 per year in taxes to the City of Naples. The City Manager pointed out that from 1982 to 1992, the City's assessed value went from $1.3 billion to $4.2 billion. He reminded everyone that taxes must be paid to the County government and the School Board as well as to the City. Fifty-six percent of all millage goes to the School Board and 30% goes to Collier County. The City receives approximately 6% of all millage, or $.069 of every dollar paid. Dr. Woodruff noted that one of his goals for the coming year was to -- work on tax equity. City Manager Woodruff described the various funds which comprise the City's budget, including the General Fund, Utilities Fund, Solid Waste Fund, CIP (Capital Improvement Projects) Fund, the Dock Fund, and Special Revenue Funds which consist of special taxing projects. Dr. Woodruff explained that although property taxes make up the largest component of the City's revenue for the General Fund, there are other sources available including State shared revenue and franchise fees. Dr. Woodruff said that the Utilities Fund is covered by user fees, the Solid Waste Fund is self funding, and utility taxes go to the CIP Fund. Dr. Woodruff displayed an organizational chart of the City. The various departmental budgets were not "padded" he said. He assured Council that after the final cuts were made, staff would have to prioritize their needs in order to remain within that budget. The City Manager stressed that staff would provide Council whatever additional data it requested during the budget -- process. 2 vic_, CITY OF NAPLES, FLORIDA M S A OE B City Council Minutes Date 8 - 19 - 9 1 T C S I O Y E COUNCIL ONENN MEMBERS NDSO T , Dr. Woodruff thanked Public Information Officer Tara Norman for the excellent job she had done assisting in the preparation of the budget presentation. Finance Director Harrison stated that he "believed very firmly in bringing Council full disclosure, honest information, and no surprises." Mr. Harrison noted that since 1987, the City's assessed value had gone up 90%, however, the millage rate had gone down 23.7%. City Manager Woodruff told Council that one area of concern was the utilities surcharge. Twenty- five percent is added to water and sewer bills for those customers who live outside the City and those funds are then deposited into the General Fund. A shortfall is anticipated in that area because budgeting had been done based on the rate increases being in effect. Dr. Woodruff said that most departments were doing well staying within their budgets. Police . Chief Reble should be commended, he noted, as the investigative work that had been done required much overtime, yet that department stayed within its budget. The General Fund had started with a reserve of $1.3 million, said the City Manager, but this year had a reserve of approximately $800,000. He explained that he would prefer keeping unrestricted reserves at a minimum of 10% since in this area, hurricanes are a big issue. City Manager Woodruff told Council that staff's policy statement was as follows: "Our job as a management team was to go back and pare out. The departments gave us their requests, which were beyond what I could recommend. Each department has made cuts, and when Council states the most they can give us in total dollars, we will return to the departments and they must tell us where cuts can be made with the least effects to service." 3 - VOk'E CITY OF NAPLES, FLORIDA M S A OE B ,'— Council Minutes Date 8-19-91 T C S I O Y E cakrIL ONENN MEMBERS N D S 0 ..1! , Mayor Anderson stated that while Council had been very skeptical of a 30% increase in ad valorem taxes, it must be considered that will not be on a continual basis. "We need to impact, to start keeping place rather than trying to play catch up," she said. Finance Director Harrison said that the Solid Waste Fund was working properly and that revenues were up. The increased County tipping fees have already been addressed, resulting in increased City fees, and the Rate Study Committee will offer more recommendations. Mr. Harrison told Council that the Dock Fund had been included because of all the controversy this year. That area is doing better than projections had indicated and a small positive number is estimated. City Manager Woodruff said that 11.--- Interim Community Services Director Rambosk and his staff were in the process of analyzing the situation at the Dock. The Finance Director reiterated Dr. Woodruff's assurance that staff would supply any additional information requested by Council during the budget meetings. Council Member Herms requested an analysis of gallons of water produced and gallons billed. City Manager Woodruff emphasized that staff wanted to bring the General Fund into balance as closely as possible and was looking into economizing in many areas. BREAK: 7:40 p.m. - 7:55 p.m. Executive Summary The City Manager told Council that a policy decision it should make is if each fund should fund itself, for example in Self-Insurance. The second issue, he noted, was Compensation Reserve. -- Three labor contracts must be negotiated this year. It is very unlikely, said Dr. Woodruff, 4 VOTE CITY OF NAPLES, FLORIDA M S A OE B City Council Minutes Date 8-19-91 T C S 101 E _ COUNCIL ONENN MEMBERS NDSOT ' that contracts can be negotiated which do not include increases, nor would that be appropriate. The Contingency Fund was reviewed next by Dr. Woodruff, who explained that the uncommitted reserve balance is basically the City's savings account. This past year the uncommitted reserve balance had gone from $1.2 million to a low of approximately $6,000. The City Manager recommended that an additional $150,000.00 be budgeted for the Contingency Fund. Discussion ensued with regard to the utilities surcharge, and Finance Director Harrison explained that the law states the City may establish more than a 25% surcharge if benefits can be proven. Staff will review the State law pertaining to utilities surcharge. Council also requested the City Attorney's and the League of Cities' opinions relative to the utilities surcharge and increasing the percentage of same. The City Manager's recommended budget for Fiscal Year 1991-92 has established a preliminary tax levy of 1.3000 mills. Dr. Woodruff said that with the suggested millage rate, City taxes on a typical $300,000 home would rise from $300 to approximately $390. Council Member Herms commented that the percentage of increase was "way above the level I can justify. The only option is to cut some costs." He suggested that there were certain areas within some departments where unnecessary costs could be cut. Mayor Anderson stated, "We have to make up for past problems. I submit that most people would rather take a one-time increase than an increase every year." Vice Mayor Passidomo said that if there was nowhere to cut the budget, enhancements would have to be trimmed. City Manager Woodruff told Council that should the tax increase be held to 12% rather than 30%, he could guarantee that next year he would have to ask for another increase. He explained that there were two approaches to a budget - one is 5 — CITY OF NAPLES, FLORIDA A 0 City Council Minutes Date 8-19-91 0 COUNCIL 0 MEMBERS 0 service driven and the other is revenue driven. A City,priority had been an increase in Police protection, however, a revenue driven budget would mean service cuts.
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