Town Administrator Hood proceeded to briefly review the revenue section of the proposed budget with the following comments:
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1 TOWN OF GRANT-VALKARIA, FLORIDA TOWN COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 1, 2012 AT 7:00 P.M. TOWN HALL BUILDING, 4240 HIGHWAY US1, GRANT VALKARIA, FL The Town Council workshop meeting of was called to order at 7:00 p.m. by Mayor Yonts, followed by the Pledge of Allegiance led by Council Member Kolar, and roll call with the following present: Mayor Del Yonts Seat No. 1 Joe Hackford Seat No. 2 Lisette Kolar Seat No. 3 Dan Faden Seat No. 4 Jason Mahaney Seat No. 5 Pat Bryan Town Administrator Richard Hood Town Clerk Susanne Krueger EXCUSE COUNCIL MEMBER DEMOTT Mayor Yonts stated that at the last town council meeting Council Member DeMott requested to be excused from this meeting because she would be out of town. Motions by Council Member Hackford, second by Vice Mayor Mahaney, and vote unanimous to excuse Council Member DeMott. AGENDA ITEM 1) Fiscal Year 2012/2013 Budget Town Administrator Hood proceeded to briefly review the revenue section of the proposed budget with the following comments: TAXES Mr. Hood explained that he only proposed a budget of 1 mill which would be keeping the millage rate the same as last year. Ad valorem tax and local option gas tax slightly increased, and communications services tax decreased giving the total in taxes a 1% increase. BUILDING PERMITS There is an increase from the town issuing some of their own permits. FRANCHISE FEES Revenue is unchanged. OTHER PERMITS AND FEES Increased slightly. STATE SHARED REVENUES Nothing budgeted here. INTERGOVERNMENTAL REVENUE Municipal revenue sharing will have a slight increase SERVICE CHARGE FINES AND FORFEITURES MISCELLANOUS REVENUES
2 Mr. Hood explained that the anticipated revenue for next year will be $950,093 compared to this year budgeted $936,593; this brings the general fund revenue subtotal for next fiscal year an overall increase of 1.44% from this year. At this point the budget addresses the several special revenue funds and reserves. There will be $500,000 which will be received this fiscal and will be brought forward to next fiscal year coming from the County Park Fund to construct Grant-Valkaria Community Park; $150,000 brought forward from road reserves for road resurfacing; $400,000 carried forward from town hall reserves for construction of town hall. Adding these amounts along with the 2 non-ad valorem assessments for garbage/solid waste and stormwater it brings next fiscal year budget to $2,490,382. This makes it a grand total of anticipated revenue as a 59% increase over this fiscal year budget revenue of $1,565,393. Mr. Hood explained that he anticipates the town to have $1,739,686 in reserves by September 30, The breakdown is as follows: $134,686 reserved for stormwater; $175,000 reserved for road repair; $80,000 reserved for town hall; $750,000 reserved for emergency disaster; $600,000 reserved for unencumbered. Reserves will fund the construction projects. Town Administrator Hood proceeded to briefly review the expenditure section of the proposed budget with the following comments: LEGISLATIVE There will be a slight decrease here. EXECUTIVE There will be salary adjustment for Jessica Williams because she is handling more. Health insurance continues to climb. It was underfunded this year. FINANCIAL MANAGEMENT Slight decrease from this year. PROFESSIONAL SERVICES Engineering services was moved here from road and streets along with legal services. COMPREHENSIVE PLANNING The comprehensive plan is complete but will need comprehensive and zoning maps. OTHER GENERAL GOVERNMENT SERVICES There is an increase over this year due to moving expense for the security trailer. PROTECTIVE INSPECTIONS No changes made. ROAD AND STREET FACILITIES Decrease in street drainage repairs because they are budgeted for capital drainage repairs. RECREATIONAL/BEAUTIFICATION No changes made. SOLID WASTE COLLECTION Whatever money comes in, it will go out in the same amount. FLOOD CONTROL/STORMWATER MANAGEMENT Page 2 of 5
3 50% of this money is allowed to be used for maintenance of drainage or new pipes. The 10% administrative fee is required per interlocal agreement with the county for management of the remaining portion of the stormwater program. Mr. Hood stated that there will be 3 capital projects included in the budget: town hall, road resurfacing and park construction. The $2,490,382 in anticipated expenses includes the 3 capital projects and will leave $58,344 in reserves. Mr. Hood explained that the actual revenues for operating town hall will be $950, 093 and actual expenditures for operating town hall will be $833,010. Mayor Yonts requested that the town be more aggressive in vertical cutting before it gets out of hand, and he requested more money be placed into that account for this year. It was Council consensus to increase the budgeted amount for vertical cutting by $10,000. Tom Sammon requested that the pepper trees at Shell Pit Road along the ditch need to be trimmed back and that the town should dedicate $25,000 to this from this year s budget. It was Council consensus to add $10,000 to next year s budget for vertical cutting. Mr. Hood stated that the vertical cutters will be starting on Monday and it will take 10 to 15 days of work. Mr. Sammon stated that he was concerned that the town is sending a slope mower to do tree trimming and asked if the town needs to contract tree trimming services out. Vice Mayor Mahaney asked if the slope mower picks up the debris; Mr. Hood stated that it depends upon the locations. Council Member Faden asked who the slope mower is; Mr. Hood stated that since it was drainage related he has Daryl Williams do it. Ben Campione asked if there is a more permanent solution like having it done in the springs in some areas; Mr. Hood responded that he talked to other cities and the county, and they have no good permanent solution for pepper trees. Council Member Hackford stated that there are bigger machines than what Daryl uses; Mr. Hood responded that no one in this county owns one, the rental is a monthly minimum, it is hard to guarantee getting it, and that the county is not subbing out any of their crews. Council Member Kolar requested that Mr. Hood explain his road repair and town hall plans. Mr. Hood stated that there are two methods for roadway repairs; resurfacing consisting of one inch overlay on existing road which will probably run about $75 per ton placed; full depth reclamation which will probably run about $19.22 to $22.55 per linear feet plus asphalt overlay depending on width of road. Some of the roads that need attention are Old Dixie Highway, Valkaria Road, Brabrook Avenue, and First Street which are estimated to cost $253,770. There is $150,000 proposed for fiscal year and $100,000 proposed for fiscal year Budgeting $100,000 per year enables resurfacing about 6,000 feet of roadway (slightly over one mile) each year, if necessary. If not necessary, the money will be reserved for future roadway projects as done in the past. If full depth reclamation is necessary, less footage would be repaired. To date the town has not done any resurfacing but has placed millings on 5 dirt roads out of necessity or at residents request. This has been accomplished through the regular street improvements budget and not through the resurfacing reserves budget. The actual roads to be repaired this coming fiscal year will be the roads in the worst condition and will be determined after an investigation of the subsurface conditions. The town should be able to get Page 3 of 5
4 some good pricing from piggy-backing on Palm Bay and County bids. Mr. Hood pointed out that it looks like a pipe at the base of the west side of the overpass on Valkaria Road there is a pipe failing at the joint and will be requiring some repair. Mr. Hood stated that sometime next year he will lay out a plan of some projects on the Stormwater Master Plan where the town by increasing the water quality and replacing pipes the stormwater money can be utilized to pay for the entire project. Vice Mayor Mahaney asked what is being done to recover the impact fees for this area from the County; Mr. Hood responded that he mentioned it to the town attorney from time to time; he will need to bring the interlocal to Council and have them opt into the program but not sure the town will get the money, but the town would have a voice as to what it is spent as. Mr. Hood gave his personal thoughts on building town hall at the park. The savings to the town would be: the town is currently budgeting $30,000 per year for town hall rent; $50,000 per year in reserves for a town hall; savings in construction costs - shared land purchase, driveway, electric service, well, fire protection, etc., estimating about $250,000 in savings depending on land acquisitions costs if located elsewhere. The expenses to the town would be: $3,300 per year based on current estimated construction cost (Florida League of Cities quote); maintenance cost for the first 10 years would be $3,500 per year and $5,000 per year after that; loss of interest on money would be minimal in this economy. The town has already spent $135,000 in rent paid to current and past landlords over the past 6 years, which would be 30% of the cost of a new town hall. If the rental lease was extended another 10 years at the current rate, $450,000 would have been spent in rent with nothing to show for it. Eventually, the town will need a permanent facility because in case of emergencies the first place that people come to is to town hall for assistance. If there is a catastrophe, there is $750,000 designated for emergencies, $25,000 designated from road repair, $134,000 designed from stormwater, and $280,000 from unencumbered funds. However, the town has the capability to borrow money in accordance with the charter, and if FEMA declares a disaster they would be reimbursing the majority of expenses. Any borrowing for disaster should be for a relative short term so interest on the loan would be minimal compared to a guaranteed $30,000 per year spent in rent. Some of the reasons supporting his decision would be: a new contract will have to be negotiated next year; previous landlord raised our rent 20% at the end of the contract and it could happen again; current building leaks, susceptible to flooding. Council Member Bryan stated that when residents ask him why build in this economy, he responds that why not stimulate it. Mark Birmingham asked what would happen if the current building was obliterated; Mr. Hood responded that he would have to find something. Mr. Hood stated that it is customary for residents to turn to town hall for assistance in case of disasters and town hall needs to be open in case of emergencies; the town has been putting money aside for several years and scrimping on expenditures for town hall reserves. Motions by Council Member Bryan, second by Council Member Hackford, and vote unanimous to adjourn the meeting at 8:20 p.m. Page 4 of 5
5 ATTEST: (signature on file) Del Yonts, Mayor (signature on file) Susanne Krueger, MMC, IIMC Town Clerk Page 5 of 5
Seat No. 2 Lisette Kolar Seat No. 5 Dan Faden Seat No. 6 Cathy DeMott EXCUSE COUNCIL MEMBER BRYAN
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