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Minutes 2019-09-05 Work Session 1 PRATTVILLE CITY COUNCIL BUDGET WORK SESSION MINUTES SEPTEMBER 5, 2019 5:30 P.M. The Prattville City Council held a work session on Wednesday, September 5, 2019, at 5:30 p.m. in the Council Chambers at City Hall. The meeting was called to order by Council President Striplin and all Councilors were recorded as being present. The purpose of the work session was to discuss the proposed FY2019-2020 budget. Mayor Gillespie and Executive Assistant Lisa Byrd were present, along with the following department heads: City Engineer Robby Anderson, Fire Chief Terry Brown, Parks and Recreation Director Kellie Cook, City Clerk Cathy Dickerson, Court Magistrate Charlotte Griffith, City Planner Scott Stephens, I. T. Director Jose Figueroa, Public Works Director Dale Gandy, Finance Director Daniel Oakley, Assistant Police Chief Diane Thomas, and Human Resources Director Lisa Thrash. The following were also present: Municipal Judge Louis Colley and Parks and Recreation Assistant Director Russ Sanders. Visitors included Tom Newton, Joe Mathis, and Montgomery Advertiser/Prattville Progress Reporter Marty Roney. Council President Striplin opened with the following statement: Welcome to the Public Work Session for the Council to discuss the proposed budget. Tonight, the Council will review and discuss various aspects of the proposed budget. Rather than go page by page through the budget, if any Councilors have questions or concerns regarding a specific budget section, we will review that section and endeavor to get an answer. Prior to adopting a budget, the Council has several matters that need to be resolved: 1. Establish a holiday schedule for FY2020 2. Lodging Fee adjustment 3. Lodging Tax adjustment 4. Comprehensive Pay Plan. Council President Striplin commended Mayor Gillespie, Finance Director Daniel Oakley, Human Resources Director Lisa Thrash, and all Department Heads for their efforts in preparing the budget document. The $1.528 million Comprehensive Pay Plan is being internally funded. Council President Striplin asked Mr. Oakley to provide an overview of how the proposed budget funds the pay plan and its sustainability going forward, specifically in the next two years. Following Mr. Oakley’s comments, the budget review will begin with questions from each Councilor. Mr. Oakley explained that the pay plan was funded in two parts with a budgeted increase in general sales tax and other revenue and decreases in expenses. Mr. Oakley analyzed a 2 three-year trend in revenue and other data that reaches back further. The proposed revenue projections are conservative. The decreases in expenses were mainly from operating and capital expenses. In meetings with each Department Head, expenses were re-evaluated and reviewed for FY2020 and FY2021 (also FY2022 for larger departments). Any departmental cuts had to be sustainable for future years. Budgeted capital outlay for FY2020 decreased approximately $600,000.00 from the current budget. Mr. Oakley further explained that proposed FY2020 revenue increases include: • General Sales Tax + 1% over FY2019 • Restaurant Sales Tax + 2% over FY2019 • Simplified Seller Use Tax +10% over FY2019 Online sales tax is a growing revenue stream: Online sales tax was budgeted at approximately $20,000.00/month in FY2019 Actual receipts were at $65,000.00/month for FY2019. Councilor Boone asked if Mr. Oakley sees the trending in sales tax as steady in future years to fund this plan and if Mr. Oakley sees the City getting to 100% funding of the play plan. Mr. Oakley replied that he does see the sales tax trend as steady. During FY2019, there has been a 5% increase in sales tax over the prior year. For FY2020, the proposed budget includes a 1% increase in sales tax. In the proposed budget, the Comprehensive Pay Plan is budgeted at 95% of the market rate. The goal is to work toward 100% of market rate in the FY2021 budget with cost-of-living adjustments. Council President Striplin asked what the percentage breakdown is between the proposed increased in revenue and the decrease in expenses in proposed FY2020 budget. Mr. Oakley responded that the breakdown would be roughly 2/3 increase in revenue and 1/3 decrease in expenses. Councilor Starnes asked why the pay plan is being funded at 95% rather than 100%. Mr. Oakley replied that 100% of the pay plan was originally entered into the draft budget, but the budget was not balanced with the proposed revenue numbers. Mayor Gillespie added that this was a negotiated number with Council President Striplin. Council President Striplin asked if the pay plan was based on 2018 salaries when the plan was conducted. Mr. Oakley and Mrs. Thrash replied that Condrey & Associated based the pay plan on projected salaries at 9/30/2019. Councilor Boone commented that the committees on which she serves have been very forward thinking and have provided their prospective departmental budgets in advance and have responded to any questions. Councilor Boone asked for the status of the jail contract with Autauga County. Mayor Gillespie responded that the jail contract has been negotiated and signed and will be reviewed on an annual basis. 3 Mayor Gillespie also noted that the City requested that the County look at expenditures in the police jurisdiction in conjunction with the jail contract. The County did not want to connect the two items. Mr. Oakley has determined an expense of $200,000.00/year to the City to provide services in the police jurisdiction. In a good faith effort, the City requested that the County pay $100,000.00 to the City or deduct from the jail contract for these services. This offer will probably be rescinded as the County has not agreed. Mr. Oakley added that the jail contract expense is split in the budget between the Police Department and the Judicial Department. Councilor Boone asked about the estimate of officers in the budget. Mayor Gillespie replied that the City is budgeted for 89 officers, but with upcoming retirements, the department will be staffed at 79-80 officers. The City is looking to fill all openings this year. Assistant Police Chief Diane Thomas confirmed that the department is currently 8 officers short. There should be 3 new candidates in police academy in November if they pass their background checks. The department is looking to fill all open slots; it is a matter of finding qualified candidates. Mayor Gillespie also noted that he is working with Mr. Oakley, Police Chief Thompson, and Fire Chief Brown to be able to fund a new ambulance and two police vehicles during this current year. The Mayor provided a handout outlining an incentive program based on the audited FY2018 numbers. In order to get rid of the “use it or lose it” mentality, departments which finish the year under budget are eligible for incentive funds to use for needed items. The Executive Department will share their incentive funds with the Police Department to provide two needed additional vehicles. There are currently 6-7 vehicles in the Police Department which are used on two consecutive shifts. Councilor Boone asked if there are budgeted funds for the construction of Fire Station #4. Mr. Oakley responded that construction funds are budgeted in the Capital Projects Fund and that debt service is budgeted in association with the project. The FY2019 and FY2020 Alabama Trust Fund monies (approximately $300,000.00 per year) will be used toward the project; loan funds would be used for the difference in construction costs. Councilor Strichik complimented Chief Brown for the masterful job he does with Fire Department budget. Councilor Strichik, Mayor Gillespie, and Chief Brown have discussed the need for a new ambulance. There are funds available in the FY2019 budget to purchase the ambulance. Councilor Strichik stated he is looking forward to the construction of Fire Station #4. Councilor Strichik expressed appreciation to Department Heads for an outstanding job. Councilor Cables thanked Mayor Gillespie, Daniel Oakley, and Lisa Thrash for answering his questions prior to the work session. Councilor Cables also thanked all Department Heads for their assistance through the long budgeting process and noted that the pay plan is important. Councilor Starnes asked if the pay study conducted by Condrey & Associates included the Mayor’s position. Mayor Gillespie replied that no elected officials were included in the pay study. Councilor Starnes asked if the City is receiving any funding for Stanley Jensen Stadium from the Autauga County Board of Education. Mayor Gillespie responded that the City has not 4 received any funding from the Board of Education for the turf. The City has received approximately $30,000.00 over the past four years from the Board of Education for fencing, roofing, and the toilet trailer. Councilor Starnes asked if technology for the Council was included in the proposed budget. Mayor Gillespie responded that iPads would cost approximately $5,000.00. Funds may be available through incentive funds for Legislative Department or in the FY2021 budget. The City Clerk and City Planning Departments are looking at Laserfiche Software to be able to provide public information in a more efficient and effective manner. The Judicial Department is also looking at software options for their department. Councilor Starnes asked for information regarding the $30,350.00 budgeted for vandalism in City parks. Parks and Recreation Director Kellie Cook explained that the City budgets each park to show how much is spent annually to repair vandalism. Councilor Starnes asked for an update on the Parks and Recreation baseball program. Fall ball has 500 participants. Spring concessions brought in $49,000.00. Councilor Starnes asked if the Chamber of Commerce is capped at $500,000.00 in the proposed budget. Mayor Gillespie noted that in 2008 and 2009, the Chamber received approximately $308,000.00 in funding. In 2010, the Chamber received approximately $325,000.00 in funding. 2011 and 2012 were challenging times and funding dropped to approximately $125,000 - $150,000.00 per year. Mayor Gillespie worked with Council President Striplin to come up with a formula for community initiatives. In 2012-2013, Chamber funding was based on a percentage directly from the lodging tax. Along the same time, HPRA and the Airport Authority were also based on a percentage. There were some challenges last year in funding. It is well known that the Mayor presented a cap on percentages in the last budget. The Mayor has spoken with the Chamber President and the Chamber Chairman and this is the budget number provided to them. Councilor Starnes clarified that this is the most the Chamber has been funded. Mayor Gillespie confirmed that to the best of his knowledge, it is the highest annual funding for the Chamber. Councilor Starnes asked for an update on the obsolete software program used in the Judicial Department. Chief Magistrate Charlotte Griffith confirmed that records cannot be pulled from the old system. The department is looking at Benchmark and ETA software. The department utilizes the State information system, but that system does not have the ability to print needed reports. With AlaCourt/SJIS, the department can look at statewide cases, follow City cases through the appeal process, and eCites. But it does not provide the technology the other software packages will provide. The department would continue to utilize the state system, along with an internal software system. Councilor Starnes asked if the City receives revenue from the building leased to the Autauga County Department of Human Resources. Mr. Oakley confirmed that the City receives $18,650.00 annually for lease of the building. 5 Mayor Gillespie noted that last year the City looked at developing a reserve account for economic development for the current budget. Hopefully, there will more talk about this in the FY2021 budget. Council President Pro Tempore Brown asked if the vehicle rotation plan is still being utilized. Mayor Gillespie replied that the City is on track with the rotation plan. There are several vehicles in the police department currently being used daily by two shifts. The long-term goal is to utilize police vehicles by one person. Vehicles which are taken home by in-town officers are better maintained. There are police vehicles in the Finance, Planning, and Engineering Departments which can be used by the Police Department in times of emergency need. There will be future discussion about an internal program to swap these lower mileage vehicles with other police vehicles. Council President Pro Tempore Brown expressed appreciation to Department Heads for their effort in putting this budget in place and to Mr. Oakley for his conservative numbers. Councilor Jackson asked about the possibility of re-establishing afterschool or summer day camp programs. Mayor Gillespie noted that some of the challenges of offering those programs included the need for a full-time nurse to administer any medications, insurance costs, and personnel costs. Parks and Recreation Director Kellie Cook echoed those concerns, adding that the City also did not have a fulltime staff member trained to accommodate special needs. With the number of liability issues and state regulations, it made sense to no longer offer the afterschool or summer day camp programs. Councilor Jackson asked if internet/phone services are negotiable and about offering 311- type services. Mayor Gillespie replied that the internet and phone bills are reviewed closely. I.T. Director Jose Figueroa discovered that a cell phone company had overbilled the City and the City has received monthly credits for that overage. The installation of a VOIP-phone system reduced the monthly phone bill by half. The City is currently looking at upgrading the work order system, which will allow the person reporting the problem to ping the area and attach photos to the work order. . Councilor Jackson asked if the pay study will allow the City to be more competitive in attracting and retaining police and fire employees and how the City will rank with other municipalities. Mrs. Thrash replied that Condrey & Associates surveyed surrounding competitive cities, including Hoover and Pelham, as well as the State of Alabama. The pay plan will allow the City to be very competitive. Mayor Gillespie noted that CDL driver positions are also difficult to fill. Councilor Jackson asked if one person is filling both the Facilities Maintenance & Vehicle Maintenance Superintendent positions and if the salary is split between the divisions. Public Works Director Dale Gandy responded that one person is currently supervising both divisions. Mayor Gillespie added that this is a budget saving procedure with an employee with the talent to fill both positions. In the future, the City may not have the same luxury because divisions may grow, or personnel may not have talent to serve in both capacities. 6 Councilor Jackson expressed appreciation to Mayor Gillespie, Mr. Oakley, and all Department Heads for their hard work. Councilor Cables asked if the $200,000.00 budgeted for the Comprehensive Plan was a conservative number or has the City talked with consultants. Planning Director Scott Stephens responded that he looked at what was spent in 2008-2009 and he has spoken with consultants. Mr. Stephens recommends an update to the current Comprehensive Plan. Councilor Cables asked Mr. Oakley to provide information regarding the TAP 2018 project. Mr. Oakley explained that this is a sidewalk connectivity project and an 80/20 grant split with MPO. The estimated costs for engineering and construction are budgeted. Grant funds are also budgeted. Mayor Gillespie added that Prattville and Pike Road are the two primary communities utilizing the TAP program. Council President Striplin asked Mayor Gillespie if the City pulls out of the police jurisdiction, have contingency discussions been held on how that will impact capital and personnel within the City. Mayor Gillespie responded the City’s Engineering Department has been carrying the County’s load of what was a part of the 2010/2014/G2 Agreement. The Engineering Department has included two men and a truck in the proposed budget, if funding allows. The Engineering Department is responsible for pot holes, street lights, traffic components, ditches, pipes, etc. The Street Division currently includes three employees, along with City Engineer Robby Anderson Council President Striplin asked if there will be an impact to capital, Fire, or Police Departments if the City pulls out from the Police jurisdiction. Mayor Gillespie stated that if the City pulls out of the police jurisdiction, it will not affect the Fire Department as they have very few calls in the area. The Police Department should have personnel numbers closer to 90+ officers. Mayor Gillespie added that pulling out of the police jurisdiction will only improve their services to the City and that he does not believe there will be an impact to capital or personnel. The City is also looking to improve the Street Division. A 2004-2005 study by the University of Alabama recommended an increase to the Street Department even at that time. Council President Striplin commended the City for doing a very good adhering to the intended purposes of the 1-cent sales tax and the lodging fee. Council President Striplin asked Mr. Oakley to provide an accounting and documentation of how the lodging tax has been spent in the last two years and the projection of how it will be spent in FY2020. Council President Striplin added that the proposed budget shows a $619,000.00 increase and he has had some questions from hotel owners concerning how the money will be used. Mayor Gillespie noted that the $1.50 lodging lee has been used for Mac Gray Park. Anything additional, based on whatever direction the various Committees and Councilors decide to go, could be used for the Mac Gray 2.0 Project. This will allow Newton Park to increase its possibilities. The City currently has five tennis courts and needs to add a sixth clay court. Other projects could include the biking and hiking trails, the Whetstone Sports Complex, relocation of the BMX trail, and improvements to Spring Hill Park. 7 Council President Striplin noted that there are two sides to a situation. An individual in the business speculated that one of the reasons the resources from the lodging tax and lodging fee are increasing is because of the significant competitive advantage the City currently has. Increasing the rates on paper may generate more money, but the City may lose that significant competitive advantage. Mayor Gillespie noted that the negotiated number in the budget is what the Council President agreed to. Mayor Gillespie added that he is proud his Executive staff and all departments. If the “Holiday Inn” sewer line had not been in place, there may not be the Robert Trent Jones golf course or eateries in the area. The City may not have the beautiful downtown, Christmas programs, lights on the bridge, etc. The Creekside Concerts are a result of working with the Chamber and hotel owners, who asked for events for patrons to enjoy. Councilor Strichik asked HPRA Chairman Tom Newton to provide an update on the Gin project. Mr. Newton explained that HPRA deeded the majority of the property to LEDIC two years ago. LEDIC has spent $2 million on the project and is pursuing the 221D4 for the HUD program. HPRA spent $60,000.00 six weeks ago to reinforce portions of the roof structure in the building closest to the damn. LEDIC is working on the financing portion. Hopefully by the end of the year, they will be able to pick up permits for the project. In closing comments, Councilor Starnes thanked all for the hard work put into the budget and wished Council President Striplin a happy birthday. Council President Striplin thanked Department Heads and Councilors for their hard work and thanked guests for attending the work session. ADJOURN: There being no further business to come before the Council, the work session adjourned at 6:42 p.m. APPROVED: ___________________________ Cathy Dickerson City Clerk ___________________________ Albert Striplin, President Prattville City Council