[Call to Order]
[00:00:26]
>> AND IF WE WOULD ALL RISE FOR THE PLEDGE OF ALLEGIANCE. >> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION
UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. >>> THANK YOU VERY MUCH.
[4. DISCUSSION]
OKAY. ITEM FOR DISCUSSION. THE PROPOSED BUDGET.WHO WOULD LIKE TO START OFF? >> I WILL. >> GO RIGHT AHEAD.
>> AND JUST TO LET YOU KNOW I DO HAVE HARD COPIES OF THE PRESENTATION THAT I WILL GIVE TO
ALL OF YOU AT THE CONCLUSION OF THE PRESENTATION. >> GIVE ME ONE SECOND PERIOD JUST TO REMIND YOU, WE ARE COVID-19 PREVENTION SO MAKE SURE WE HAVE MASKS AND MAKE SURE THEY ARE PULLED UP OVER OUR NOSE AND MOUTH PROPERTY THAT'S WRECKED PROPERLY.
>> THANK YOU MR. MAYOR. >> AGAIN BASED UPON THE RESOLUTION ADOPTED BY THE COMMISSION, LAST WEEK, 2020 -- 100, THIS IS $5.8 MILLION WHICH IS THE ADJUSTED ROBOT RATE AND THAT IS CALCULATED BY THE STATE OF FLORIDA AND APPLIES TO EVERY CITY ACROSS THE STATE.
AT LEAST THE PERCENTAGE ADJUSTMENT. THREE-POINT 2% INCREASE.
THE BOARD APPROVED IT AT $1.53 BILLION WHICH MEANS THE TOTAL FOR 2021 IS 5.6 COMMENTS
TO .36 MILL WHICH IS A REDUCTION OF .9 MILL FROM LAST YEAR. >>> AS INDICATED BEFORE THIS DOES EXCEED THE ROLLBACK RATE SO BY STATUTE IT IS CONSIDERED A TAX INCREASE.
IT IS AN INCREASE. DESPITE THAT, MOST RESIDENTS TAX BILLS WILL ACTUALLY GO DOWN.
WHICH GOES AGAINST THE PROPERTY VALUES DROPPING AND WE HAD TO RAISE THE RATE AND PEOPLE HAD TO TAKE -- PAY MORE AND THE STATE DOESN'T CALL THAT A TAX INCREASE.
>> THE IMPACT OF THIS, FOR HOMESTEAD PROPERTIES YOU WILL SEE A REDUCTION OF $77.
$100,000 OF TAXES. IF YOU HAVE A NON- HOMESTEAD PROPERTY, IT IS A LITTLE MORE DIFFICULT BECAUSE MARKET VALUES ARE NOT CONSISTENT. THE ESTIMATED REDUCTION IS $53 FOR EVERY ONE OF 600,000 TAX VALUE. THEY PROBABLY HAVE WHAT THEY ARE
CAPPED AT. >> THIS IS COMPARED TO THE CURRENT RATE.
WHICH WE HAVE NOW AND THE ADOPTED TENTATIVE RATE. NOW TO GET TO FROM WHAT WAS PROPOSED TO WHERE WE ARE TODAY, WE HAD TO ADJUST THE REVENUES. SO THE ORIGINAL PROPOSED BUDGET WAS 23 AND A HALF MILLION DOLLARS. YOU ADJUST THE ROLLBACK RATE TO REDUCE THE REVENUE BY $1 MILLION. WE ARE NOW STARTING TO GET IN, STATE PROJECTED REVENUES FOR NEXT YEAR. THAT IS THIS LINE HERE, 50,250,000 AND OVER A HALF-MILLION DOLLARS. THAT IS ROUGHLY ANOTHER 850,000 TO $900,000 OF REDUCED REVENUE EXPECTED FROM THE STATE. WE DID TRANSFER SOME OF THE STOCKS GALLERY FROM THE GENERAL FUND TO THE BUILDING FUND. WHAT WE CAN DO WITH, YOU CAN
[00:05:05]
ALLOCATE THE BENEFITS. SINCE I SPENT SOME OF MY TIME WORKING WITH THE WATER AND SEWER SYSTEM, SOME OF THE FUNDS CAN BE ALLOCATED AND WE DON'T TALK THAT'S RACKED UP ONE 100% OF THE SALARY BUT IF I SPENT FORMS. WEEK, OR FOUR HOURS OF MY TIME, IT WILL BE ALLOCATED.THAT IS WHAT WE HAVE DONE WITH THE BUILDING DEPARTMENT. SO THE REVENUES ARE $21.6 MILLION. SO THE ORIGINAL PROPOSED BUDGET, $23 MILLION.
A SMALL ADJUSTMENT AND THE BUILDING DEPARTMENT. IT HAS GONE SOMEWHERE ELSE.
WE REDUCED THIS AND ELIMINATED THE PART-TIME POSITIONS IN HUMAN RESOURCES.
WE ELIMINATED THE PURCHASE OF A TRAILER. WE TOOK OUT $20,000 FOR THE STREETLIGHTS. WE REDUCED MAINTENANCE THAT IS BEEN IN THE BUDGET.
THIS IS FOR US TO PROVIDE MAINTENANCE ON THE TRACK. AND THE STREETS WITH REPAIR MAINTENANCE. WE MOVED TO WORKSTATIONS. WE REDUCED DEMOLITIONS BY 10,000. THE POLICE DEPARTMENT WE REDUCED WITH REPAIRS AND MAINTENANCE BY $5,000. A FIRE DEPARTMENT VEHICLE ALL $40,000.
WE REMOVED THE INTERIOR PAINTING THAT WAS SCHEDULED FOR NEXT YEAR.
SO WE ELIMINATED THE INTERIOR. THE IMPROVEMENTS OF THE LIBRARY WHICH WAS CARPETING WE REMOVED A VEHICLE FROM PARKS AND DIRECT. REDUCED VICINAGE BATHROOM. WE THE REDUCTIONS OF REPAIRS.
WE REMOVED HAND DRYERS. AND WE ELIMINATED NONPROFITS IN THE AMOUNT OF $115,000.
SO THE EXPENSES ARE TRAINED TO HAVE MILLION DOLLARS. THIS IS WHY YOU WILL GET HARD COPIES OF THE BUDGET. THIS PULLS EVERYTHING TOGETHER. THIS SHOWS THE REVENUE.
THE CASH BALANCE. THE CASH BALANCE IS 7.5 MILLION. WE ARE USING UNRESTRICTED
EARNINGS TO BALANCE THE BUDGET. >> HOW MUCH? APPROXIMATELY $1.2 MILLION.
>> ONE POINT 2,000,001.6 MILLION EURO. >> 1.6 MILLION.
>> 1.6 MILLION THE RESERVE FUNDS THAT WERE TAKEN AWAY. >> CORRECT.
>> THEY WILL REMAIN AT WHAT? >> THE PROJECTION IS AT THE END OF THE YEAR THE RESERVE FUND WILL BE $5.3 MILLION. THE 20% REQUIRED IS FOUR-POINT EIGHT.
>> THAT IS 23.4% AND WE ARE REQUIRED TO HAVE 20% SO WE ARE THERE FOR THE GOOD.
>> THE SHEET I HAVE GIVEN YOU TO SHOW WHAT IS THE IMPACT, OR HOW ARE YOUR TAX DOLLARS ALLOCATED ACROSS VARIOUS CITY DEPARTMENTS. SO THESE ARE TAX BILLS. THIS IS THE CITY TAX BILL.
DON'T LOOK AT THE BOTTOM LINE. 1,000 WHICH IS THE MEDIAN. 2,003,000.
[00:10:01]
$3,000 COVERS 99 PARCELS IN THE CITY. $3,000 OR LESS COVERS.-- 600. NOT ALL OF RESIDENTIAL. THIS $3,000, PRETTY MUCH COVERS EVERY SINGLE RESIDENTIAL PROPERTY IN TOWN. YOU CAN GET A ROUGH IDEA OF WHAT THE ESTIMATE OF THIS IS. IF YOU ARE MEDIAN TAXPAYER, AND YOU PAY $1,000, 14,000 -- $514 GOES TO THE CITY COMMISSION. THIS GOES TO PAY FOR THE POLICE. YOU CAN SEE WHERE THE $1,000 IS DISTRIBUTED. THE MEDIAN'S BILL IS $1,100. AND WE DID TAKE OUT, THE FENCING OF $150,000. THAT WAS TRANSFERRED FROM THE GENERAL FUND TO THE CAPITAL FUND. THAT SAVES US. AND THE CAPITAL EXPANSION FUND, WE HAVE ELIMINATED THE FIELD. PRIMARY REASON, IS AS WE MOVE FORWARD WITH THE PRIORITY SET, WATERFRONT CONVERSATION -- TRACK CONSERVATION AND INFRASTRUCTURE. AS WELL AS THIS IS, THAT DOES
NOT FALL WITHIN YOUR PRIORITIES. THIS MONEY WILL STAY THERE. >> IT WILL BE THERE FOR THE TECH CENTER AND I BELIEVE IT WAS BASED ON A GRANT. CORRECT.
THE GRANT HASN'T BEEN SUBMITTED HAS A? >> THE GRANT HAS BEEN SUBMITTED,
YEAH. >> WHAT HAPPENS IF WE DON'T GET THE GRANT?
>> THEN IN ALL LIKELIHOOD WE WON'T GO FORWARD. THE GRANT IS FOR 250 THIS YEAR END WE ARE BUDGETED AT 500. IT IS SCHEDULED TO BE A TWO-YEAR PROJECT.
AT $1.5 MILLION PROFIT PROJECT. >> OF THE BALANCE OF OUR CALENDAR, WE HAVE ANOTHER WORKSHOP SCHEDULED FOR NEXT TUESDAY AND AT THIS POINT THE INTENT IS TO FOCUS MORE ON DETAIL ON THE CAPITAL FUND. SO TONIGHT IS JUST A FOCUS ON THE GENERAL FUND.
THEN WE HAVE OUR TWO PUBLIC HEARINGS. AND THEN, I ALSO, BECAUSE THERE WERE COMMENTS ABOUT THE VEHICLE PLAN I INVITED SOMEONE TO SHOW HOW HE MANAGES THE CITY'S FLEET.
SO I WILL INVITE HIM UP. >> BEFORE WE GO THERE, I WANT TO TALK ABOUT THE NONPROFIT.
WHAT ARE YOU SUGGESTION. >> WHAT WAS ORIGINALLY ALLOCATED WAS $145,000.
WE CAP 30,000 DOLLARS AND WHAT WE REFER TO AS THE ELDERLY LOW INCOME ASSISTANCE FOR WASTEWATER AND STORMWATER PAYMENTS ON BEHALF OF THIS. SO WE KEPT THAT 30,000 DOLLARS.
THE OTHER $115,000, IS RELATED TO THE OTHER NONPROFITS. >> SO THEY ARE IN A DIFFERENT
CATEGORY CLICKS. >> AGAINST THAT WAS BASED ON COMMENTS PRESENTED TO THE BOARD, THE ORIGINAL BUDGET, SHOULD THE CITY MAKE DONATIONS ON BEHALF OF THE RESIDENTS?
>> I THINK WE SHOULD. I WOULD RATHER LEAVE THAT MONEY IN THERE, I WOULD LIKE TO LOOK AT WHAT THEY ARE AND IF WE HAVE 23% RESERVES TAKE IT OUT OF THERE.
I DON'T THINK THIS IS THE TIME TO PULL IT OUT. >> WE HAVE TO GIVE YOU A BUDGET.
SOME OF THE THINGS THAT ARE NOT IN THE BUDGET THAT YOU NEED TO BE AWARE OF, ALTHOUGH WE BUDGETED NEXT YEAR, WE HAVE NOT BUDGETED IN OUR REVENUES $100,000 FOR THE PAST TWO YEARS.
WE HAVE NOT BUDGETED ANY MONEY THAT WE MAY RECEIVE FROM THE CARES MONEY.
[00:15:11]
AN UNDERSTANDING THE PHILOSOPHY THAT WHEN WE GAVE IT, I WILL BE SURPRISED WHEN WE GET IT BACK THAT YOU TURN AROUND AND SAY, GIVE THEM ANOTHER BATCH OF $300,000.SO THERE IS SOME MONEY THAT WE EXPECT BUT BECAUSE WE ARE UNSURE OF THE TIMING, WE DON'T HAVE THAT IN THE BUDGET. WHAT WILL HAPPEN AS THOSE WILL FALL TO THE RESERVES, TO REESTABLISH THE FUNDING, IN THEORY, AT SOME POINT THE MONEY I JUST TALKED ABOUT WOULD GO
BACK INTO THE RESERVES. >> THERE IS SOME MONEY IN THE CAPITAL THAT WE MAY NEED TO
APPROVE TOO. >> WE HAVE TO GET BACK TO THE ADJUSTER ROLLBACK RATE AND WE
WILL HEAR FROM THE PUBLIC OF THE BOARD AND WE WILL PUT TOGETHER. >> I AGREE WITH THAT.
I DON'T KNOW HOW YOU GUYS FEEL ABOUT -- >> I AGREE WITH IT.
I AGREE WITH THAT BUT I DON'T AGREE WITH GOING TO THE RESERVES.
THIS PANDEMIC WILL NOT IN THIS YEAR. WE HAVE ALREADY TAKEN 1.6 MAIN DOLLARS OUT OF THE RESERVES. WE SHOULD BE ADDING. THAT IS THE TIME TO KEEP IT DRY.
SO TAKING MORE MOVE MONEY OUT OF THE RESERVE, I THINK WE SHOULD FIND SOMEWHERE ELSE TO FIND IT.
BUT TAKE IT OUT OF THE RESERVES, I THINK THIS IS -- I AGREE BUT HOW DID WE GET THERE.
THE PROBLEM IS WE HAVE TAKING A LOT OF MONEY FOR THE THINGS BUT MAYBE WE SHOULD GO BACK AND LOOK AT THE BUDGETS I AGREE WITH YOU. WE NEED TO PUT MONEY IN THE RESERVES.
BUT FOR THIS POINT I AM SAYING, AND I GUESS THERE IS A CONSENSUS THAT WE FUND THE NONPROFITS.
>> I THINK WE NEED TO PUT MONEY IN THE RESERVES. > THAT WILL DEFINITELY BE A
PRIORITY. >> WHAT YOU SUGGEST? YOU HAVE HAD TIME TO LOOK AT THE
BUDGET. >> I WOULD GO THROUGH IT AGAIN AND ANALYZE EACH ONE.
I WOULD TAKE IT OUT OF -- EVEN THOUGH IT IS CAPITAL IMPROVEMENT.
THERE IS ANOTHER WAY I WOULD LOOK AT IT AND TAKE A PERCENTAGE.
I WOULD TAKE, I WOULD GO BACK TO THE DEPARTMENTS. FOR THE MINOR PERCENTAGE.
THE POINT IS I THINK WE NEED TO -- LET ME TELL YOU SOMETHING ELSE, WHEN WE SAY THAT, IT IS HIS RESPONSIBILITY TO COME UP WITH THE 140 BASED ON INPUT THAT HE HAS HAD, IN MY MIND, HE IS FAMILIAR WITH THE NEEDS. SO IF THE COMMISSION SAYS FUND THEM, THEN THEY SHOULD BE ABLE
TO GO BACK AND COME UP WITH THE SAVING SPIRIT. >> WHY ARE YOU CALLING HIM THAT
MAN. >> LET'S GET YOU RECOGNIZE SIR. >> SO HOW MUCH, OF THE RESERVES
ARE GOING TO THE MARINA? >> WHAT WE HAVEN'T I THINK WE HAVE TO REVISE, I THINK SO WHERE'S THAT, IT LEADS TO THE SURGE IN THE RESERVES AT THE END OF THE FISCAL YEAR.
>> SO WHERE'S THAT MONEY GOING CLICKS INTO THE RESERVES, AND WE USE THIS TO BALANCE THE BUDGET.
>> I SEE. SO I AGREE, WE NEED TO FIND THE MONEY WHILE I AGREE KEEP YOUR
[00:20:13]
COVER DRY IT IS THERE FOR A PURPOSE YOU SOLVE THE GROSS NATIONAL PROJECT THAT CAME OUT OF THAT. MINUS 39%. WORST IN THE HISTORY OF THE UNITED STATES. THREE TIMES WORSE THAN THE GREAT DEPRESSION.AND ANYONE WHO DOESN'T THINK WE ARE NOT GOING OVER A CLIFF IS NOT PAYING ATTENTION.
WE WILL COME, THE END OF SEPTEMBER WHEN THE FEDERAL AID RUNS OUT TO THE AIRLINES TO THE BIG CORPORATIONS, LAYOFFS, CONTRACTION OF BUSINESS, WE WILL BE HURTING THESE NONPROFITS AND WE WILL BE UNDER GREAT DURESS. SO TAKING ANOTHER $110,000 OUT OF THE RESERVES WILL NOT KILL US. WE ARE STILL 20% PLUS ON THAT MONEY.
SO THAT'S MY THEORY. I DON'T HAVE ANY PROBLEM WITH THE NONPROFITS.
I AGREE WITH THAT. MY POINT IS, IF WE KEEP DRAWING DOWN THE RESERVES NOW, AS YOU PUT IT, WE ARE GOING OFF OF THE CLIFF. THE BOTTOM WILL NOT BE THE END OF THIS YEAR. SO IF YOU DRAW THEM DOWN THIS YEAR, NEXT YEAR WILL BE WORSE.
THAT'S MY POINT. SO, WHATEVER YOU CAN DO TO HOLD ONTO RESERVE FUNDING BECAUSE I THINK THINGS WILL GET WORSE BEFORE BETTER, WHICH IS WHY I DIDN'T SUGGEST THE ROLLBACK
RATE. >> I AGREE WITH YOU. I THINK THE DIFFERENCE IS WHAT
HAPPENS TO THE RESERVE, IT IS OBVIOUS. >> OKAY.
I WILL REVENUE WILL INCREASE. 175, TWO MILLION-DOLLAR HOMES COMING UNDER -- YOU HAVE A BEHEMOTH THAT HOTEL COMING UNDER. THIS MEANS MORE REVENUE.
>> >> WITH REGARD TO THE HOTEL, I THINK THOSE AT THE MEETINGS, THAT IS PROBABLY MORE INTRIGUING OUT THERE TAXES WILL BE CALCULATED BECAUSE IT SHOULD GO DOWN BECAUSE IT IS BASED UPON GENERATED BUSINESS. SO THAT IS THE FEAR OR THE THOUGHT IS THAT, THE PROPERTY VALUES OR THE PROPERTY APPRAISER THINKING THE VALUES WILL GO DOWN. THE HOTELS CAN'T MAKE AN ARGUMENT TO REDUCE PROPERTY VALUES, BUT AS THOSE HOMES COME ALONG AND I'M NOT SURE WE WILL SEE ALL OF THEM BUT THE POINT IS TAKEN, THERE WILL CONTINUE TO BE PROPERTIES ADDED BUT AT THE SAME TIME, AS YOU POINTED OUT, THE STAFF HAS BEEN DOING A GREAT JOB AND WE DON'T SPEND THE MONEY, WE ARE ONLY AT 75%.
THAT EXCESS GOES TO THE RESERVES. THAT IS WHAT WE TRY TO PROJECT, AND WHAT WILL WE END THE YEAR WITH. SAFT WAS COGNIZANT OF THE FINANCIAL CONDITIONS. JUST BECAUSE WE APPROVE THE BUDGET DOESN'T MEAN WE GO AND SPEND IT ON OCTOBER 2. WE HAVE A FULL YEAR TO ADAPT AND ADJUST.
WE CAN MAKE THE APPROPRIATE CHANGES. SO IT IS A LIVING DOCUMENT.
WHEN YOU LOOK AT THIS LINE HERE, THE IMPACT OF THE NONPROFITS, FOR THE AVERAGE TAX PAPER -- TAXPAYER IT IS SHOWING 1 DOLLAR. YEAR. IF I PUT 115 BACK IN THERE, YOU
KNOW IF THAT GOES TWO, $6. YEAR. >> COMMISSIONER ROSS COLLECTS.
>> AS FAR AS THE HOTELS THEY DON'T HAVE TO ARGUE THEIR TAX RATES WILL GO DOWN.
WE HAD THAT DISCUSSION AND THAT IS THE PROBLEM THE COUNTY IS FACING.
[00:25:01]
THIS IS THEIR TWO BIGGEST SOURCES OF INCOME. AND THEIR VALUE IS NOT GENERATED LIKE OUR VALUE. IT IS GENERATED ON REVENUE. THERE REVENUE, IS SIGNIFICANTLY DEGREE -- DECREASE. TWO THINGS ATTACHED ARE HOTELS AND THE APARTMENT COMPLEXES.AND THE HOTELS BIG SO THAT REVENUE WILL SIGNIFICANTLY GO DOWN.
WHETHER THAT WILL BALANCE OUT IS SPECULATIVE. SO I WOULDN'T COUNT ON MORE REVENUE FOR NEXT YEAR. AND WHEN THE PROPERTIES VALUES GO DOWN, I WOULDN'T COUNT ON
MORE REVENUE NEXT YEAR. >> ANOTHER THING, HOPEFULLY WILL HAPPEN NEXT YEAR IS WE I'M JUST
WORRIED, PUTTING THAT MONEY BACK IN. >> I JUST HAVE A QUESTION FOR THE CITY MANAGER. ON THE PLAN, IS THE $75,000, OR LACK OF A BETTER WORD, THE
200,000 FOR THE CONSULTANT IS THAT IN THIS BUDGET. >> $75,000 FOR THE PROJECT MANAGER IS, THE $250,000 WHICH WAS SPREAD OVER TWO YEARS, THAT IS NOT IN THE BUDGET.
>> NEITHER YEAR PERIOD. >> CORRECT. >> SO THAT $75,000 RIGHT THERE.
YOU JUST ELIMINATE THE PROJECT MANAGER POSITION. THE REVISION IS NONESSENTIAL.
THERE IS NO STATE MANDATE SAYING WE HAVE TO DO IT, WE ARE COUNTING EVERY PENNY SO WHY DON'T WE JUST DELETE THAT. AND SAVE OURSELVES $75,000. I'M LOOKING AT COMMISSIONER ROSS BECAUSE HE ALWAYS SAYS WHERE ARE WE GOING TO FIND THE MONEY. ALL WE HAVE TO DO IS FIND
ANOTHER $40,000. >> I WOULD NOT PUT OFF FOR ANOTHER YEAR THAT IS JUST MY FEELING. I THINK YOU SHOULD FIND THE $75,000 SOMEWHERE ELSE.
>> OKAY. IF I CAN ASK MY FELLOW COMMISSIONERS, WHY WOULD YOU DO NOT THAT WHEN IT IS NONESSENTIAL. WHEN WE ARE TALKING ABOUT THE HEALTH SAFETY AND WELFARE OF PEOPLE, AND YOU ARE TALKING A BOUT A PLAN.
AND WE ARE TRYING TO FUND NONPROFITS. YOU'RE GOING TO PUT A PLAN OVER
THE NONPROFITS. I DON'T GET THAT. >> I THINK WE NEED TO LOOK AT EVERYTHING OUT THERE INCLUDING, WE MET THE REQUIREMENTS AND I THINK THEY WILL COME TO THE COMMISSION SHORTLY. WE CAN ACTUALLY, THERE ARE THINGS THEY CAN DO.
THERE ARE ELEMENTS THEY CAN DO BUT IT IS NONESSENTIAL SO ARE OTHER -- A LOT OF OTHER THINGS.
BUT, AND WE MAY HAVE TO LOOK AT THAT AS WE GO THROUGH THE YEAR. THAT'S A GOOD POINT THIS IS A WORKING DOCUMENT THAT WE CAN READ IT JUST AS WE SEE FIT. WHEN WE SEE WHAT IS HAPPENING.
I DON'T SEE THE ECONOMY DOING THIS. SO EVERYTHING, EVERYTHING WHEN WE LOOK AT EVERYTHING NONESSENTIAL WHEN THE TIME COMES.
>> I THINK WE NEED TO GET WITH THEM BEFORE WE MAKE TOO MANY DECISIONS.
A LOT OF MOMENTUM HAVE BEEN HAPPENING. I THINK THAT SHOULD BE THE
DISCUSSION. >> I AGREE. THEY ALREADY MENTIONED IT ONCE.
WELCOME EVERYONE. >> THANK YOU GOOD EVENING COMMISSIONERS.
YOU ALL HAVE HEARD, VEHICLES ARE AN IMPORTANT TOPIC. IT'S AN EXPENSIVE ASSET.
EVERYONE SEES THEM. SO IT IS SOMETHING THAT GETS ATTENTION, ESPECIALLY DURING TRYING TIMES. I WANT TO PUT OUT A BRIEF OVERVIEW OF THE FLEETS.
[00:30:01]
THIS IS SOMETHING YOU SEE ON AN ANNUAL BASIS BUT WITH 2020 IT HAS BEEN PUT ON THE BACK BURNER.>> FOR SO WE HAVE A ROLLING FLEET OF 250 UNITS. AND THAT IS ONE OF THE REASONS WHY THIS HAS TO BE A PRIORITY. ONE OF THE CHALLENGES WE HAVE IN THE CITY IS THE DIVERSITY OF THEIR FLEET. AS YOU CAN SEE A PICTURE BELOW, THIS IS JUST A GLIMPSE OF WHAT COMES IN THE SHOP EVERY DAY EVERY DAY. THIS WILL BE WORKS WITH.
FIRE TRUCKS, POLICE CARS, DUMP TRUCKS, SCHOOL BUSES, WE HAVE A VERY DIVERSE PLEA.
THAT IS SOMETHING TO KEEP IN MIND WHEN WE TALK ABOUT A 250 UNIT FLEET.
THAT IS NOT ALL CARS AND TRUCKS. IT IS PART OF OUR FLEET IN INVENTORY AND WE TAKE CARE OF IT. IT IS A 5050 SPLIT ON CARS AND TRUCKS VERSUS EQUIPMENT.
A LITTLE HISTORY OF OUR FLEET OPERATIONS. HOW WE GOT HERE.
BACK IN 2005-206 WE IMPLEMENT THE FIRST VEHICLE POLICY ROTATION PLAN.
THIS BROUGHT IN A FLEET REDUCTION OF 15% AND ALLOWS THE TRANSITION TO ONLINE AUCTIONS OF WHICH READ REQUIRES US TO INCREASE REVENUE. WE INSTITUTED STANDARDIZATION SPIRIT BEFORE, FLEET WAS HANDLED LARGELY BY EACH DEPARTMENT THAT HAD TO DEFEND FOR THEMSELVES.
THE RESULT WAS THOSE THAT WERE MORE IN THE LIMELIGHT OF PUBLIC SAFETY, WHERE MORE POSITION TO GIVE VEHICLES AND EQUIPMENT AND OTHER DEPARTMENTS WERE NOT. OF THE DEPARTMENTS BUT WHAT THEY SAW FIT AND THERE WAS NO CENTRALIZATION AT ALL. SO THAT WAS ONE OF THE MAJOR CHANGES THAT HAPPENED IN 2005-2006. WITH THE VEHICLE ROTATION PLAN IT REDUCED FLEET INVENTORY AND DRIVER SAFETY WHILE REDUCING DOWNTIME AND PUT IN A PLACE OF PLANTS TO REPLACE VEHICLES AT THE OPTIMAL TIME. THE QUESTION IS WHEN IS THAT TIME. THE IDEAL TIME TO REPLACE THE ASSET WITH THE COST OF OWNERSHIP IS AT ITS LOWEST. SO WE USED A NUMBER OF TOOLS TO ARRIVE AT THAT.
WE ANALYZE OUR FREE DATA AND USED MODULES, WE RESEARCHED INDUSTRY STANDARDS AND NETWORK WITH OTHER CITIES AND WENT TO VARIOUS SEMINARS AND GOVERNOR FLEET IS A GOOD SOURCE AND OTHER NATIONAL PROGRAMS THAT WE HAVE NETWORK WITH. A LOT IS COMMONSENSE.
THERE'S NO PROGRAM THAT WORKS ACROSS THE BOARD. THE REDUCTION FLEET DOES CALL THE CHELMSFORD IS NOT SOME WHERE YOU HAVE THE SAME AMOUNT WHERE YOU CAN REDUCE, WE WORK WITH DIFFERENT EQUIPMENT SO THE OPTIMUM TIME REPLACEMENT WILL VARY.
THERE IS NO ONE COVER EVERYTHING. THE BOTTOM RIGHT IS THE MODEL THAT I AM SURE A LOT OF YOU HAVE SEEN BEFORE IT DEALS WITH ASSET MANAGEMENT.
AS YOU CAN SEE WHEN YOU BUY AN ASSET YOU GO THROUGH A DEPRECIATION AND IF YOU SEE ON THE BACKSIDE THAT IS THE WEAR OUT. THE LAST DOTTED LINE IS THE IDEAL TIME TO REPLACE THE VEHICLE. YOU WANT TO REPLACE A VEHICLE BEFORE YOU HAVE TO. ONCE YOU WAIT UNTIL YOU HAVE TO IT IS TOO LATE.
WHEN YOU DROP AN ENGINE ON A TRANSPORT, AND YOU ARE LOOKING AT A 30,000 DOLLARS BILL AND DOWNTIME IN THE BUDGET TO SUPPORT IF YOU HAVE WAITED TOO LONG.
THAT IS WHAT WE TRY TO AVOID. THE RESEARCH THAT WE DID, BACK IN 2005-2,006 BROUGHT US TO THIS POINT. THIS IS A THREE-TIER ROTATION PLAN.
WE HAVE A SEVEN YEAR, 70-MILE FOR CRITICAL VEHICLES LIKE POLICE CARS AND FRONT-LINE RESCUE UNITS AND PATROL CAR SPECIFICALLY. WE MOVED TO YOUR REGULAR DUTY FLEET. THIS WILL BE YOUR DISTRACTIBLE CULT THE VEHICLES YOU SEE ARE ON A TENURED STATION. THEN YOU HAVE YOUR EXEMPT, RUN TILL FAILURE.
THESE WILL BE VEHICLES THAT ARE NOT USED OFTEN. IT IS A SPARE PIECE OF EQUIPMENT IS A TRAILER OR SOMETHING THAT DOESN'T HAVE MOVING PARTS. WE HAVE SOME THAT ARE PUSHING 20 YEARS. THIS MAY BE DIFFICULT TO SEE BUT THIS IS OUR WORKING FLEET PURCHASE PLAN. THIS IS THE DOCUMENT WE STARTED WITH.
WE SAW THIS IN DECEMBER OF LAST YEAR. THIS TIES INTO THE CAPITAL PLAN.
AND WHERE WE ARE RIGHT NOW, EVERYTHING INBRED HAS BEEN TAKEN OUT.
BECAUSE OF THE BUDGET CONCERNS. AND BASED OFF THE NUMBERS THAT THE CIT MANAGER GAVE OF MINUTES AGO, THOSE IN YELLOW HAVE BEEN TAKEN OUT TO HELP BRING SOME OF THE EXPENSES DOWN AS WELL.
[00:35:05]
WE STARTED THE BEGINNING OF THE YEAR WITH ONE POINT OF MILLION-DOLLAR PLAN.BUT THEN AS, LIKE HE MENTIONED THIS IS A WORKING LIVE BUDGET, IT NEVER STOPS IT'S ALWAYS ROLLING AND IN THAT TIME WE HAVE HAD ACCIDENTS AND HAVE HAD TO MOVE VEHICLES AROUND AND GO THROUGH REPAIR PROCESSES. WE DO HAVE TWO LARGE ASSETS THAT THIS IS REPLACING ONE OF THE SPARES AND WE HAVE A ROTATION PLAN IN PLACE SO THE NEXT ONE WILL GO INTO SERVICE AND THE OLDEST ONE WOULD COME OUT. THEN WE HAVE THIS UNDER STORMWATER.
THAT HAS A PRICE TAG AND THAT IS SUPPORTED BY THE ENTERPRISE FUND SO IT DOESN'T AFFECT THE GENERAL FUND. THOSE WHO WRITE THEIR MAKE UP THE BULK OF EXPENSES.
AS YOU CAN SEE THE GENERAL FUND AT THE BOTTOM, THAT NUMBER WAS ACCURATE A FEW DAYS AGO BUT THIS IS ALWAYS A MOVING TARGET. I'VE HAVE JUMPED AT NIGHT TALKED ABOUT THE MAINTENANCE INCREASES.
IF YOU WAIT UNTIL YOUR VEHICLE IS JOTT, THIS IS WHAT I MEANT ABOUT WORKING UNDER A BUSINESS MODEL. YOU WAITED TOO LONG. WE HAD A POLICE CAR THAT WAS TOTALED. THEY WENT BACK AND FORTH AND FACTORED INTO THE EQUIPMENT AND WE COULD PUT THE VEHICLE IN THE ROAD. IF THIS WAS TOTALED, BY THE TIME WE WOULD GO OUT, AND YOU WOULD BE SIX MONTHS OUT. YOU CAN AVOID ACCIDENTS IT HAPPENS. THIS IS A SITUATION WHERE IF YOU RUN TILL FAILURE YOU ARE REALLY
UPSIDE DOWN. >> I PUT THESE CHARTS INTO THE PRESENTATION BUT THESE ARE CHARTS WE USED IN THE LAST RECESSION. AS YOU CAN SEE HERE, AS OUR EXPENSES ARE ON THE LEFT, THEY CONTINUED TO DECLINE, ON THE RIGHT, THE REPAIR COSTS STARTED TO GO OUT. I KNOW YOU HAVE THE TASK OF CUTTING TAXES AND FUNDING WHAT IS NECESSARY TO KEEP THE CITY RUNNING. I TRIED TO MINIMIZE THAT SO THAT IS ONE OF THE REASON I'M A TRY. ONE THING OFTEN OVERLOOKED IS, IT IS NOT JUST BUYING VEHICLES, THIS IS A COMPLETE CIRCLE. WE DO, BUY LOW AND SELL HIGH AND WE CAP AGGRESSIVE CONTRACTS.
THIS ALLOWS US THE GOVERNMENT DISCOUNTS AND ALLOWS US TO GET DISCOUNTS 40% OFF.
BECAUSE WE HAVE A STRONG MAINTENANCE PROGRAM, A LOT OF PEOPLE ARE INTERESTED IN GOVERNMENT VEHICLES BECAUSE THEY KNOW THEY HAVE BEEN TAKEN CARE OF.
WE HAVE A GOOD SURPLUS PROGRAM AND IT WORKS. SO WE HAVE BUY LOW AND SELL HIGH AND IT IS GOOD BUSINESS. THESE ARE TWO OF THE PLATFORMS WE USE AND WE DO WELL WITH THAT.
BEFORE, WE WILL GET TO THAT. HERE IS A MODEL. HERE'S SOMETHING RECENT THAT WE JUST TOOK OFF OF THE BOOKS ARE USUALLY EXAMPLE OF HOW THE PROGRAM WORKS FROM START TO FINISH. THIS IS A DUMP TRUCK THAT WE BOUGHT.
THIS WILL ONLY BE ABOUT $70,000. WE BOUGHT IT FOR 39,000. IT WAS FULLY DEPRECIATED.
OFF OF THE BOOKS, THIS TRUCK IS NOT WORTH ANYTHING AT THE TIME OF SALE AND WE SOLD ONE THROUGH
EBAY FOR $11,000. >>> ONE OF THE THINGS WE HAVE CHANGE, I MENTIONED EBAY, IN 207 AND 2008 WHEN WE FIRST TOOK THE AUCTION ONLINE. BEFORE IT WAS ANOTHER AUCTION.
YOU CAN SEE WE DID NOT GET MUCH. WE SOLD EVERYTHING AT ONE TIME DURING THE YEARS THEN IT TURNED INTO THE CITY JUNKYARD. WE WERE LUCKY TO BRING IN $70,000 FOR GOING ONLINE AND ASKED VEHICLES CAME OUT OF SERVICE AND WERE STILL RUNNING, THEN OF COURSE, THE VALUE OF OUR SALES CONTINUE TO RISE AND WE ARE AT SEVEN 100% INCREASE IN SURPLUS REVENUE OVER WHAT WE
[00:40:06]
USED TO DO. YOU WILL SEE CERTAIN SPIKES IN THE YEAR, THAT MAY BE A YEAR WE SOLD A LARGE ASSET AND IT WILL SPIKE UP THE YEAR. BUT THE SURPLUS REVENUE IS AROUND $100,000. YEAR. THAT IS SIMPLY PART OF THE PROCESS. SO I'M THROWING A LOT AT YOU BUT A QUICK OVERVIEW, AS WE ANALYZE THE FLEET AND MAKE ADJUSTMENTS, AS YOU CAN SEE IN THE PURCHASE PLAN, A FEW SLIDES BACK WE HAVE MADE ADJUSTMENTS FOR THIS YEAR. I DO CAUTION YOU TO, BE MINDFUL THAT POSTPONING OR DEFERRING PURCHASE IS SHORT-TERM. THE ROTATION PLANT WORKS AND IT IS A STANDARD PRACTICE AND AS ALWAYS IF YOU HAVE ANY QUESTIONS OR CONCERNS ABOUT THE VEHICLE EQUIPMENT OR WHAT WE DO ORANYTHING LET ME KNOW. >> THANK YOU. >> ANY QUESTIONS?
>> WE HAVE NOT. THANK YOU VERY MUCH. >> ALRIGHT.
THOSE ARMORED VEHICLES. THAT ANSWERS THAT QUESTION. ATTACHED ARE QUESTIONS.
COME ON GUYS. >> HERE'S MY QUESTION. YOU DO A NICE JOB.
WE APPRECIATE WHAT YOU DO AND YOU SHOW WHAT GOVERNMENT EMPLOYEES CAN DO AND SHOULD DO
AND WE REALLY APPRECIATE YOUR SERVICE. >> I ECHO THAT AS WELL.
WE HAVE HAD NUMEROUS CONVERSATIONS, FOR SEVEN YEARS NOW.
AND YOU TOLD ME ABOUT THE VEHICLES AND YOU WERE SO EXCITED WE TALKED TOURNAMENTS ABOUT
CROWN VICTORIANS. THANK YOU VERY MUCH. >> OKAY.
SO WE ARE BACK TO DISCUSSION. DO YOU WANT TO TAKE PUBLIC COMMENT,.
>> YES. >> LET ME GET THE CHARMER. >> GOOD EVENING.
PATTY CLIFFORD. I LIVE ON AZALEA STREET. I HADN'T REALLY PLANNED ON TALKING TONIGHT BUT JUST A COUPLE OF THINGS. I FEEL LIKE I AM IN A DIFFERENT UNIVERSE THAN WHERE WE WERE. I WAS REALLY SURPRISED TO SEE THAT $7 MILLION IN THE CASH BALANCE FORWARD IN THE GENERAL FUND PARAGRAPH WRITTEN TO ALL OF YOU SEEN HOW USING RESERVES IS UNSUSTAINABLE IN MY OPINION. I THOUGHT THE CITY MANAGER'S PRESENTATION TO YOU OR AT LEAST FROM THE PUBLIC'S POINT OF VIEW WAS A LITTLE LACKING IN THAT HE DIDN'T COME OUT AND SAY HE HAS ABANDONED GIVING THE GOLF COURSE AND VEREEN OF THE MONEY. THAT WAS A SURPRISE TO ME.
I DON'T KNOW IF IT WAS TO ANY OF YOU. I THINK IT SHOULD BEEN PART OF THE PRESENTATION. AS WELL I WAS DISAPPOINTED TO SEE THE ONLY CHANGE, WE WON'T HAVE TWO PART-TIMERS AFTER I GOT A PARENT TALKED ABOUT HOW I THINK YOU NEED TO LOOK AT THE FULL-TIME STAFF AND THE GENERAL FUND. PENSION BENEFITS, HEALTH INSURANCE, IT IS REALLY SIGNIFICANT. PLEASE FREEZE HIRING AND REALLY TAKE A HARD LOOK AT THAT. AGAIN, USING RESERVES AND USING THEM FOR NONPROFITS AS WELL.
PLEASE BE COGNIZANT OF WHAT YOU ARE DOING. I THINK I WAS REALLY SURPRISED.
>> THINK YOU VAMPIRIC. >> I SAW ONE ANOTHER BUT I SEE SHE HAS (.
>> OKAY. THAT CONCLUDES THE SPEAKERS. WE ONLY HAVE ONE.
>>> ANYONE ELSE? >> YES, GO AHEAD. >> I THINK, WE SET A MILLAGE RATE AND THE CITY MANAGER COMES UP WITH A BUDGET IT APPEARS WE HAD ONE ADJUSTMENT, AND CHIP FELT I WAS INSULTING, BUT IF THAT WAS SO THE CITY MANAGER SHOULD BE ABLE TO TAKE CARE OF HIMSELF. WE SET UP A MILLAGE RATE AND WE CAME UP WITH THE BUDGET AND I WE MOVE FORWARD. WE WILL LOOK AT THE CAPITAL IMPROVEMENT FUND.
I DO BELIEVE THAT JEREMIAH, WHO HAS A GREAT PROGRAM, I THINK EVERYTHING IN THIS HAS TO DEAL WITH THE SERIES AND MAY BE A BAND-AID IS REQUIRED. I HAVE SAID THIS BEFORE.
WE HAVE A GREAT FLEET PROGRAM BUT WE ARE PAYING FOR PARTIALLY, NOT NECESSARILY THE ISSUES WITH THE BUILDINGS. SO WE HAVE A BUILDING THAT IS CRITICAL, THAT WAS NOT IN ANY OF THE FIVE-YEAR CAPITAL IMPROVEMENT PLANS. SO WE HAVE TO BALANCE THAT AND
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WE HAVE TO LOOK AT WHERE WE ARE GOING ACROSS THE BOARD. AS WE MOVE ON, I BELIEVE WHEN IT IS NECESSARY WE WILL MAKE ADJUSTMENTS OR ADJUST THE BUDGET.AS REVENUES DECREASE OR INCREASE. AND WHEN IT COMES TO EVERYTHING, IT IS OPEN TO DISCUSSION AND CONSIDERATION. I THINK WE HAVE TO DO THAT
TODAY. >> THANK YOU SIR. ANYBODY ELSE?
>> OKAY, THIS IS A GROUP DISCUSSION, I'M SURE YOU WILL GET PHONE CALLS FROM US
INDIVIDUALLY. >> I'M SORRY CAN HEAR YOU. >> DO YOU HAVE EVERYTHING YOU
NEED FROM US? >> THE GENERAL DIRECTION I GET IS REINSERTED FOR NONPROFITS WHICH I ENCOURAGE, I GATHERED THAT FROM YOUR CONVERSATION THAT IN ALL LIKELIHOOD IT WOULD BE BACK. IF YOU WANTED TO HEAR FROM HER THAT'S OUR PRODUCTS OR SHOULD HE NEED TO STICK AROUND. I WILL PUT THAT MONEY BACK IN AND WE WILL START WITH THE RESERVES, BUT 100 30,000 DOLLARS, OR $115,000. AND I AM SURE, THEY CAN CALCULATE WHAT THE NEW RESERVE RATE WILL BE. WE WERE AT A LITTLE OVER 23% SO IT WILL STILL BE OVER 26 -- 20% MATCHING A REQUIREMENT AND AGAIN ANY UNPLANNED REVENUE WILL BE IN
THE RESERVES AS WELL. >> MS. GIBSON WERE YOU IN THE BACK LISTENING? SO, THE DISCUSSION ABOUT THE $5,000 MOVING FORWARD. WE WILL GET BACK TO PAD ON THAT.
HAVE THEY HEARD ABOUT THIS YET? >> THEY KNOW. >> AND I THINK THE OTHER THING, WE CAN START LOOKING AT, FOR PLANNING PURPOSES, THE $250,000. SO WHERE IS VAMPIRIC IF WE HAVE THE $75,000, WE BASICALLY HAVE TO COME UP WITH ANOTHER $75,000 ON TOP OF THAT.
>> WE HAVE HAD DISCUSSIONS ABOUT THE CONSULTANT AND THAT MAY NOT BE THE BEST WAY TO GO.
>> OKAY.
* This transcript was compiled from uncorrected Closed Captioning.