AUGUST 28, 2012


THE SPECIAL CITY COUNCIL MEETING of the City of Port Orange was called to order by Mayor Allen Green at 5:30 p.m.


Pledge of Allegiance


Silent Invocation


Roll Call:                    Present:                     Councilman Bob Ford

                                                                        Councilman Donald Burnette

Councilman Dennis Kennedy

                                                                        Vice Mayor Bob Pohlmann

                                                                        Mayor Allen Green


                                    Also Present:            Kenneth W. Parker, City Manager

                                                                        Margaret T. Roberts, City Attorney

                                                                        Robin Fenwick, Deputy City Clerk




4.    Discussion of the 2012-13 Operating Budget


Mr. Parker provided Council with a Budget Memorandum prior to the meeting that made adjustments and changes based on the direction from Council at the July budget meeting where Council voted to maintain the 4.95 millage rate.


John Shelley, Finance Director, provided information to Council relating to the adjustments to the FY2012-13 Operating Budget. The Town Center CRA Tax Increment fund was discussed, as was the long term debt history. Mayor Green asked about repairs in the City that are needed and how will the funding be done. Mr. Parker said Council asked that Staff schedule a workshop to discuss the Capital Improvement Plan (CIP), which is what addresses repairs. Meter replacement cycle was discussed. The fire program fund (609) was discussed. Options were given for Council to consider purchasing with the funds. Mr. Parker advised that the radio replacements will not work in 2016 and will need to be replaced. Ken Burgman, Deputy Director - Fire, explained the need for the new radio program being due to 9/11 issues with communications. The current radios in the public safety department cannot be upgraded.


Mr. Parker asked Council to confirm they agree with the options provided: heart monitors, ERV vehicle replacement, thermal imaging cameras, autopulse replacement, and radio replacements. Consensus of Council confirmed.

Pension funding was discussed. The State is allowing percent of payroll payments or budgeted funds this year. Last year it was just percent of payroll. Mr. Parker advised that the actuarial report was received. Mayor Green prefers the percent of payroll. Councilman Ford agrees. He feels that it keeps Council honest. He believes it is a good thing to be reminded what the percent of payroll is being paid each year. Councilman Burnette asked if this proposed budget will overpay the pension plan requirement again for 2012-13. Mr. Shelley said yes. Councilman Burnette wants to be on top of the fire pension program from the beginning of the fiscal year. He would like to find a way to fund it better now. Vice Mayor Pohlmann asked if the percent of payroll and the overage that Council paid to the fire pension plan covered the losses for the plan. Mr. Parker said no, Council did not know the losses until the year was over. Mr. Shelley advised that the percent of payroll for FY2012-13 is 101% for the fire pension plan, 63.3% for the police pension fund, and 11.5% for the general employees’ pension plan (with the contractual amount of 13% for the PEA contract). Consensus is to pay percent of payroll.


Mr. Parker asked Council if they want to tell the actuary to apply the balance of $106,000 to the UAAL, future payments, or keep the money for other projects/debt. Councilman Burnette said he thought the Council's goals were to pay down the UAAL. Councilman Ford asked how the City's investors are doing. Mr. Parker said they are working on fixed income funds. Councilman Ford wants the pensions to be healthy and wants to make sure the money is doing the best it can. He wants to do a comprehensive study internally to see what can be done to get the best return. Consensus of Council is to use the $106,000 to pay down the UAAL for the fire pension plan.


5.    Discussion of Budget Execution Review (BER)


BER discussion was held. The projected surplus and deficit for all departments is $898,000 within the general fund. The debt service for Town Center can be paid for out of the general fund. Options were provided relating to the Town Center debt. Councilman Burnette would like to fund Town Center with equity. Councilman Kennedy agrees. Mr. Parker said it would be tracked in the loan pool. Councilman Ford would like a report each year showing the amounts paid. Summary of expenses adjusted to balance FY2012-13 based on 4.95 mills was provided. Mr. Parker asked if Council wants the contingency balance budgeted in the FY12-13 or in the BER for FY11-12. Mayor Green said 12, all agreed. Other modifications were discussed relating to Town Center and Eastport, building special revenue fund, and bond debt service.

ADJOURNMENT:    6:45p.m.



                                                                                    Mayor Allen Green




Kenneth W. Parker, City Manager