Mayor Henderson led the Pledge of Allegiance to the Flag of the United States of America.

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1 The City Council of the City of Fort Myers, Florida, met in workshop session at Oscar M. Corbin, Jr. City Hall, 2200 Second Street, its regular meeting place in the City of Fort Myers, Florida, on Monday,, at 1:37 o clock p.m. Present were Mayor Randall P. Henderson, Jr., presiding, Council Members, Johnny W. Streets, Jr., Teresa Watkins Brown, Liston D. Bochette, III, Fred Burson, and Gaile H. Anthony. Also present were Saeed Kazemi, P.E., City Manager; Gwen Carlisle, MMC, City Clerk, and Grant W. Alley, City Attorney. Absent: Terolyn P. Watson, Councilperson. Mayor Henderson led the Pledge of Allegiance to the Flag of the United States of America. NO. 1 FISCAL YEAR PROJECT GENERAL FUND BUDGET Saeed Kazemi, P.E., City Manager, stated that the budget workshop presents the City s General Fund projection for Fiscal Year The General Fund revenue budget projection for Fiscal Year 2019 is encouraging. With continued improvements in the economy, new construction, and an increasing population, the City is experiencing upward trends in nearly every revenue source. These same improvements also place pressure on our departments to meet the increasing demands for services while striving to move our City forward and prepare for the future. City Manager Kazemi said the challenges to the budget are no different than what they have been in the past, which includes, but is not limited to, operating revenues not fully supporting operating expenditures, near maximum millage rate levy at 8.65 mills with a cap of 10.0 mills, public safety, youth programming needs and unfunded pension liabilities. Mr. Kazemi said what is different is the City s approach to these challenges. The City is turning the challenges into opportunities through investment in economic development, public/private partnerships, use of technology and training, to name a few. These investments are addressed in the development of the City s Strategic Plan. Although not completed, it is planned to ensure this next year s budget and capital improvement program is fully reflective of the Strategic Plan. The budget presented is simply an overview of where we are today knowing that there is a lot more work to be done and addressed. The participation of City Council will assist the budget staff and himself with developing a recommended budget that will be presented on July 30, Mr. Kazemi said he wanted to thank the employees of the City for their hard work and dedication in providing the best services and meeting our goal to be financially sustainable into the future. Chris Tenney, Deputy Director of Budget, Financial Service, Department, said the Office of Management and Budget was in the process of generating the following for all funds: Personnel costs based on currently funded positions, union contracts and actuarial information Allocations for General Administration Charge Allocations for Internal Service Funds: o Fleet o ITS o Risk Management Revenue projections Current year forecasts The Fiscal Year 2019 budget timeline is as follows: May and June, 2018: o Departments and budget staff to meet with City Manager to discuss budget submittals June 1, 2018: o City receives preliminary estimate of taxable values from Lee County Property Appraiser 1

2 July 1, 2018: o City receives certified taxable values from Lee County Property Appraiser sets the timeline for Truth in Millage (TRIM) compliance July 30, rd Budget Workshop: o Presentation of the City Manager s recommended operating budget for all City funds o Determines the not to exceed millage rate o Provides overview of 5-year Capital Improvement Program September 13, 2018: o First public hearing on the tentative millage rate and citywide budget September 27, 2018: o Second and final public hearing on the millage rate and budget o City Council adopts the millage rate and budget o City Council adopts the 5-Year Capital Improvement Program Ms. Tenney said there was an increase in property tax revenue of $4,152,500. Ms. Tenney said the Homestead Exemption increased to $50,000 in 2008, and there was a voter referendum for a potential $25,000 increase for a total of a $75, exemption, which would impact the FY2020 Budget by an estimated $2,000,000. Ms. Tenney said other major General Fund Revenues included: Fire Assessment Fee Public Service Tax Communications Tax Local Business Tax Franchise Fees Sales Tax Payment in Lieu of Taxes Ms. Tenney said transfers into the General Fund from other funds included Utility, Solid Waste, ITS, Fleet Maintenance, Cemetery Trust, Parking, FMRA, Off Duty Pay, and Fire Impact Fees for a total of $3,524,900 in FY2018, and $3,367, in FY2019. The projected General Fund Revenue was $107,962,300 in FY2018, and $112,435,600 in FY2019. City Manager Kazemi said he met with Lee County Schools Superintendent last week, and Lee County does not have more than $50,000 per year to contribute to School Resource Officer funding. Councilperson Anthony asked what the State was contributing. Mr. Kazemi said the City could not allow each of the schools to be without a School Resource Officer. All the schools are required to have one which included elementary, middle, and high schools. Councilperson Burson said the City would know better what we are dealing with in September. Mr. Kazemi said the City needed to deal with the issue before school started in September and the budget must be developed. A meeting will be held with the School Board next week to discuss an interlocal agreement. Councilperson Burson said that first responders should receive equitable pay. Ms. Tenney said the 2019 General Fund budget expenditures included: Personnel Costs: o Police union employees: Contract expires 9/30/2018 currently in negotiations 2

3 o Fire union employees: Provides (1) step increase (3%) plus 2% market adjustment, in accordance with the terms in the contract; estimated cost of $623,300** Contract expires 9/30/2020 o General union and non-union employees: Provides 3% increase in wages, in accordance with the terms in the contract; estimated cost of $1,057,000** in the General Fund Contract expires 9/30/2020 Continues to freeze 7, General Fund vacant positions, $650,400 in savings 2.1% decrease for health insurance premiums City Manager Kazemi said that the City Attorney s Office has a frozen position. Councilperson Anthony said generally a budget would start at zero and was built on budget strategies. Ms. Tenney said the City implemented a zero-based budget a few years ago and set priorities, and based on the priorities, built the budget. Mr. Kazemi said that positions were sometimes frozen because the position would be filled in the future and the position could be released to hire rather than re-creating the position. Councilperson Streets said the City Manager should revisit hiring a Director for the S.T.A.R.S. Complex, and a comprehensive consideration should be given to leadership of S.T.A.R.S. Mr. Kazemi said the position at S.T.A.R.S. was a Program Coordinator, not a director position. Ms. Tenney said a position of Senior Program Coordinator was vacated by Gary Bostic and should be filled. Ellen Clyatt, Director, Human Resources, said the City sponsored monthly Lunch n Learn programs with an array of types of programs such as weight challenges with money awarded for winners. Florida Gulf Coast University sponsored a program, Full Plate, that teaches us how to eat differently. Ms. Clyatt said Police and Fire Department employees were required to take annual physicals. Ms. Tenney said the School Resource Officer components were listed as follows: School Resource Officers (SROs) o Marjory Stoneman Douglas High School Public Safety Act o City needs to provide 1 SRO per School (14), currently provides (2) o Total cost added in FY2019 for (12) is $1,252,800 o City will need to add (2) Sergeants to supervise SRO positions, cost of $297,400 o Adds total cost of $1,550,200 to FY2019 budget o Lee County School District will pay 50% of cost up to $50,000 per SRO for the school year, $700,000 o Net cost to City in FY2019 $850,200 Councilperson Streets stated that some police officer retirees could be incorporated into working as a School Resource Officer, which would be beneficial since they are trained and could work closely in providing a school needs assessment. 3

4 Ms. Tenney stated that the pension information was as follows: Pension cost as a % of pensionable payroll: o Police: from 72.1% to 69.5% o Fire: from 80.0% to 77.7% o General: 38.8%, no change Ms. Tenney stated that the unfunded actuarial accrued liability as of October 1, 2017, totaled $160,942,887, with 1,923 employees combined for police, fire, and general. The total personal services expenditures increased by 2.8% from $69,828,400 to $71,813,300. Councilperson Brown said that hiring someone versus paying overtime should be considered. Councilperson Streets said community investment and community watch lessened the problem in schools. Ms. Tenney said general fund subsidies increased from $831,300 to $1,246,800, and included Southwest Florida Enterprise Center, Skatium, Fort Myers Golf Course, Eastwood Golf Course, and Para-Transit Fund, which was the trolley. Ms. Tenney said General Fund Expenditures totaled $112,435,600, which was an increase of $4,473,300 from last fiscal year. Ms. Tenney said the 2018 General Fund Summary was provided and a balanced budget was as follows: $ Change Taxes, Licenses & Permits $76,889,100 $82,157,500 $5,268,400 Intergovernment/ Charges for Service $17,677,300 $18,080,600 $403,300 General Admin Charge $5,087,700 $5,854,100 $766,400 Miscellaneous $1,479,500 $2,125,800 $646,300 Transfers from Other Funds $3,524,900 $3,367,400 ($157,500) General Fund Reserves $3,303,800 $850,200 ($2,453,600) Total Revenues $107,962,300 $112,435,600 $4,473,300 Personal Services $69,828,400 $71,813,300 $1,984,900 Operating $24,813,200 $25,671,700 $750,100 Debt $8,492,700 $9,423,200 $1,038,900 TIF Transfers $3,365,100 $3,735,600 $370,500 Venue Subsidies/Other Transfers $831,300 $1,246,800 $415,500 Capital Transfers $631,600 $545,000 ($86,600) Total Expenditures $107,962,300 $112,435,600 $4,473,300 Shortfall $0 $0 $0 4

5 Councilperson Streets said an analysis should be provided to City Council of other cities regarding what percentage of their budgets were dedicated to public safety. Cities for comparison should include Sarasota, Bradenton, Cape Coral, and other cities of similar size and population. Councilperson Bochette said citizens could be canvassed to determine interest in an assessment for public safety. Councilperson Streets said it was vital for every citizen to have input on a safety needs assessment because people did not mind paying for something as long as the money was going to where it should be. The issue with the fire assessment was that the money was not being used for the Fire Department. Ms. Tenney said the projected general fund reserves were as follows: 2017 Unassigned Reserves, per CAFR $20,189, Outside Counsel for Litigation ($150,000.00) Additional Hurricane Irma Expenditures ($6,920,000.00) ShotSpotter ($94,002.00) Subtotal $13,025, Use of Reserves in 2019 Budget ($850,200.00) 2019 Estimated Unassigned Reserves $12,175, General Fund Budget $112,435, City Manager Kazemi said the City should begin receiving reimbursement from Hurricane Irma from the Federal Emergency Management Agency (FEMA). He hoped there is not another hurricane, but there was nothing to report on funding being received from FEMA at this time. FEMA provided money to Puerto Rico and funding for Hurricane Harvey, but reimbursement for Hurricane Irma had not yet been received. Ms. Tenney said items that were not in the budget but needed to be addressed included: Police o Contract Negotiations Pay considerations o Staffing o Equipment o Technology o Training o Consulting City Attorney s Office Reorganization Department Requests o Staffing o Equipment o Software Councilperson Streets said there should be a designated person in the City researching and applying for eligible grant funding, and Councilperson Anthony agreed. Councilperson Streets said there was funding available from Homeland Security and United States Department of Housing and Urban Development (HUD). Mr. Kazemi said funding available for transportation from the Federal government was in the billions from different programs. Ms. Tenney said that departmental requests were being considered, including expansion of the Police Athletic League (PAL) and the Dr. Ann Murphy Knight STARS Complex (STARS). 5

6 Other FY2019 considerations included: STARS/PAL, Recreation Programs Professional Services for Economic Plans o MLK Corridor o Palm Beach Corridor o Fowler Corridor o Colonial Boulevard Corridor Millage Rate Reduction Fuel Taxes o Inter-local agreement with County that establishes City portion of the fuel taxes ends May 2019 for the 6 cent tax and 2023 for the 5 cent tax City portion is anticipated to decrease significantly $1.5 million additional cost to General Fund to support street maintenance operations in FY2020 Utility Fund (Water and Sewer) o Revenue sufficiency analysis to be presented at Budget Workshop in July Stormwater Fund o 26% rate increase approved during FY2017 Budget to fund stormwater-related projects which at that time was a 3-year plan Solid Waste Fund o Reviewing residential rate and service levels Ms. Tenney said Capital Improvement Project requests included: Buildings $5,812,680 $32,876,475 McCollum Hall STARS Complex Expansion Ward 1 Youth Center in East Fort Myers New Police Headquarters New City Hall City Facility Maintenance Councilperson Bochette said that projects should be completed rather than started and not completed such as McCollum Hall. Mr. Kazemi said there was a request for proposals issued and the City was looking into partnership with the Community Redevelopment Agency. Mayor Henderson said the early strategy for McCollum Hall was to preserve it, and it had been acquired for approximately $350,000.00, but was unsure of the amount of money spent to date to stabilize the building. Michele Hylton, Community Redevelopment Agency, said that approximately $2,300, had been spent on McCollum Hall. 6

7 Ms. Tenney stated that other Capital Improvement Projects included: Development $4,820,000 $7,300,000 Citywide Street Lighting Improvement/Replacement Citywide Maintenance Painting of Decorative Street Lighting & Traffic Signals Unsafe Structure Demolition Neighborhood Improvement Program Junkyard Buy Out South Street Improvements Equipment $5,055,450 $18,882,550 Solid Waste Equipment Aquatic Center Maintenance EWGC-Upgrade Equipment Wash Area Parks Maintenance Vehicle Equipment for Park Rangers Engine 13, 14 & 15 Replacements Ladder 11 Replacement Self-Contained Breathing Apparatus Replacements Ward Filtration System Replacement of current ERP Replacement of VoIP Telephone System Police Equipment Police Equipment $1,085,550 $1,085,550 Mobile Overt Camera System Platform NIBIN-Spent Bullets/Cartridge Analysis Motorola Radios Fence for Real Time Crime Center Mobile License Plate Reader and Speed Sign Trailer Parks & Beautification $5,045,000 $7,465,000 Eastwood Golf Course Renovation Back 9 Holes Public Art Program Citywide Replacement of Playground Equipment Forum Neighborhood Park Dupree Park Revitalization Tarpon Park Beautification Upgrades to Lift Stations Centennial Park Flag Pole & Flag Enlargement Lions Park Basketball & Tennis Court Resurfacing Repair Art Hamel Pier in Centennial Park Renovation of Landscaping and Irrigation on Dr. MLK Jr. Blvd. Replacement of Lighting in Wes Nott Park 7

8 Stormwater $3,602,960 $5,362,960 Citywide Drainage Rehab & Improvements Stormwater Master Plan Update Rockfill Road Drainage Improvements Carrell Canal Drainage Study US 41 to Evans Citywide Canal Armoring Citywide Lake Maintenance Transportation $7,501,500 $16,111,500 Citywide Street Overlay Program Citywide Sidewalk Replacement Program Citywide Guardrail Install/Replacement Citywide Pavement and Sign Condition Survey Citywide Alternative Transportation Modes Intersection Safety Improvement Citywide Bridge Repair/Replacement Hanson Street Sidewalk Citywide Traffic Calming ADA Transportation Retrofit City Sea Walls Repair Nuna Avenue Sidewalk Update Bicycle Pedestrian Master Plan Midtown Streetscape Fort Myers Cemetery Galilee Way Bridge Rehabilitation Utility $68,830,000 $331,176,800 CWWTP SWWTP Water Plant Utility Construction Utility Maintenance Ms. Tenney said the summary of Capital Improvements Project was listed as follows: SUMMARY $100,667,590 $419,175,285 Buildings Development Equipment Parks and Beautification Stormwater Transportation Utility Ms. Tenney said the current capital projects for FY2018 numbered 221, and totaled $226,153,084. The next budget workshop is scheduled for July 30, 2018, and the public hearings are scheduled for September 13, 2018, and September 27, The meeting was adjourned by Councilperson Streets, seconded by Councilperson Brown and unanimously carried. 8