57

CITY COUNCIL MEETING

MINUTES
SPECIAL SESSION
224 S. Jefferson Street
Perry, Florida
August 26, 2004

MEMBERS PRESENT: Pam Feagle, Doug Everett, Sylvester Harris, Alphonso Dowdell, Emily
Weed Ketring

STAFF PRESENT: Bill Brynes, Barney Johnson, Wayne Putnal, Rodney Lytle, Billy LaValle, Glenn
Ratliff, Stephen Hollowell, Danny Lundy, Chester McAfee, Wayne English, Bill Blue, Sarah Drawdy
and Annette Anderson

Mayor Feagle called the meeting to order at 6:00 p. m. The secretary called the roll.

PRESENT ABSENT
Councilmember Harris X
Councilmember Dowdell X
Councilmember Ketring X
Councilmember Everett X
Mayor Feagle X

SUBJECT OF MEETING:

DISCUSSION OF CITY OF PERRY FISCAL YEAR 2004-05 BUDGET.

City Manager Bill Brynes told the Council the adjustments to the budget had been made according to
the Council’s decisions on the budget at recent meetings. Mr. Brynes said currently there is
approximately $336,000 in expenditures that exceed income.

Mr. Brynes presented a chart for review:

Proposed Expenditures exceeding estimated income 336,810

Budget reductions contingency 30,000

Less Workers' Compensation premium-reduction 148,000

Total of proposed expenditures exceeding

estimated income. 218,810

1. Use of Local Option Gas Tax for Operating

Expenses rather than street paving 187,379 187,379

2. Police Officer 45,006

3. Police Officer 45,006

4. Sanitation employee 31,431 31,431

5. Sanitation employee 31,431

TOTALS 340,253 218,810 218,810

Mr. Brynes reviewed information regarding workers’ compensation insurance rates. Mr. Brynes said
he had told the Council for some time the City did not have any new rates as yet. Mr. Brynes said one
company had just presented a proposal and the mode (formula used to compute rates) had dropped
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from 1.25 to .99, which is a $148,000 reduction for the City. Mr. Brynes said this now leaves $218,810
in expenses exceeding income. Mr. Brynes said if Council were to consider eliminating one sanitation
position (#4 in the chart) and use $187,379 of the local option gas tax, this would balance the city’s
operating budget for 2004-05. Mr. Brynes then asked City Attorney Bill Blue to give an opinion on
using the local option gas tax monies. Mr. Blue spoke about counties and municipalities using local
option gas tax monies but for the purpose of transportation expenditures. Mr. Blue said Florida Statute
or case law had not defined this, but an opinion of the attorney general discusses things that are
permitted and some that are not permitted. As an example, Mr. Blue said one (municipality or county)
was not permitted to construct sidewalks or trim trees with gas tax monies, but one was allowed to use
these monies to drain canals of which was part of right-of-way maintenance. Mr. Blue said this was
based upon questions and answers addressed by the attorney general in the past. Councilmember
Everett asked Mr. Blue his opinion. Mr. Blue said as long as the monies are being used for the
transportation system it would fall within the permitted use.

Mayor Feagle asked specifically if the City could or could not take the $187,379 gas tax monies to
reduce the budget expenditures. Mr. Blue said the $187,379 could be used for transportation expenses
and based upon those decisions by the attorney general you could do so as long as it relates to the
transportation system. Mayor Feagle said, “Didn’t we use these (gas tax monies) last year?” Mr.
Brynes answered yes. Mayor Feagle questioned why it would be any different this year. Mr. Blue said
last year the decision was made by looking at the Florida Statutes in one meeting. Mr. Blue said he
had since been asked to look at the opinion of the attorney general. Mayor Feagle asked what
repercussion there had been from using gas tax monies last year. Mr. Blue said he wasn’t aware of any.
Mr. Brynes said Mr. Blue is not telling the Council anything different than last year. Mr. Brynes said
the gas tax monies were used for the street department last year and this is what is being talked about
for this year.

Councilmember Ketring asked Mr. Brynes how he felt about using gas tax monies to balance the
budget. Mr. Brynes explained that when the local option gas tax was passed, city and county residents
were told the monies would be used to pave streets. Mr. Brynes said 10 to 15 years ago the County
had started using their monies to fund their road department. Mr. Brynes said another issue is there is
no other source to pave streets. Mr. Brynes told the Council the County could choose not to levy this
tax anymore. Councilmember Everett said there is another source—that being reserves but suggested
leaving the gas tax monies intact to build monies for paving. Councilmember Everett suggested
eliminating a sanitation position and giving the budget back to department heads to make further cuts.
Councilmember Ketring commented about reserves running out and said the Council could be back
next year in the same situation. Mr. Brynes said something could be done (to increase revenue) so the
budget would not be in the same situation next year. Councilmember Ketring said there could be the
same situation next year if additional cuts aren’t made. Mayor Feagle commented, “Or without
bringing in additional revenue.” Mayor Feagle said she hoped not but the Council could decide to raise
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taxes or fees before next year. Councilmember Everett said he would have a hard time increasing fees
and taxes saying again the budget should be cut, whether it be personnel or some other area. Mayor
Feagle asked if Councilmember Everett had any concrete ideas about this. Councilmember Everett
answered no but said those are some options. Councilmember Ketring said she would like the reserves
to be used for revenue building infrastructure. Councilmembers briefly spoke about annexation.
Mayor Feagle suggested the item of annexation could be put on the Council agenda for later
discussion. Mayor Feagle said the Council should move along on balancing the budget today.

Councilmember Everett asked about the vacant sanitation position. Mr. Johnson said the position had
been vacant six months and he has had to park trucks because there is no one to drive them.
Councilmembers discussed with staff their efforts to cut their department budgets. Purchasing agent
Chester McAfee told the Council the budget had been brought to the departments for cuts three or four
times already. Department heads and superintendents told the Council they had cut everywhere they
could cut their respective budgets. Councilmember Everett said other avenues should be found noting
that cutting funds from departments could affect service.

Mr. Brynes said this same discussion was had a year ago and commented he had provided 2004-05
budget information in January 2004. When asked about additional department cuts, Fire Chief Rodney
Lytle said last year the Council went “line item by line item” cutting departmental budgets. Chief Lytle
said since then no department budget had been increased. There was discussion about cutting other
department budgets and the possibility this could reduce services. Councilmember Dowdell made a
motion to accept the city manager’s option to eliminate one sanitation employee position ($31,431) and
transfer $187,379 from the local option gas tax monies to balance the 2004-05 budget. Mayor Feagle
called for a second. Hearing none, Mayor Feagle relinquished the gavel to Vice
Mayor/Councilmember Emily Ketring and seconded the motion. Upon roll call vote was as follows:
YEA NAY
Councilmember Harris X
Councilmember Dowdell X
Councilmember Ketring X
Councilmember Everett X
Mayor Feagle X

Continuing discussion, Councilmember Ketring asked what the percentage of $187,379 is to the
overall budget. Mr. Blue said it was 2.6 percent. Councilmember Ketring made a motion that the
overall budget be cut by 2.6 percent. The motion died for lack of a second.

Following discussion that the Council look to other options other than laying off employees, Mr.
Brynes went down a list of things that should not be cut from the budget but posed these things as
options for the Council to consider. Some of those items included: utility bills, insurance on city
property, law on contract services for sewer and gas, law on chemical requirements needed in gas,
sewer and water, bond payment, service work on gas equipment and the landfill tipping fee. Mayor
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Page 4, August 26, 2004, Council Minutes – Special Session

Feagle asked if these are all things that have to be done. Mr. Brynes answered yes and commented the
budget cannot be cut 2.6 percent. Mr. Brynes told the Council he had assured them if there were
anything in the budget to cut, it would have been cut.

Councilmember Ketring asked for an explanation as to what services could be cut. Mr. Brynes said
this would depend on which department you would be cutting services. Examples were given as
follows: Public Works Department (sanitation division) - garbage pickup could be reduced to once a
week; Finance Department - computer maintenance contract could be eliminated, but not
recommended; other items mentioned included elimination of creek spraying and replacement of
bullet-proof vests for police officers. Councilmember Everett said the police department should be left
out of these considerations.

Mr. Blue commented the budget deficit is due in part because revenue streams have gone away. Mr.
Brynes said the only way to keep from having a budget deficit is to increase revenue or reduce
expenses or a combination of the two. Mayor Feagle said she would like to recommend the Council
use $187,379 of gas tax monies and eliminate the sanitation position ($31,431) for a total of $218,810
to balance the budget. Councilmember Dowdell made a motion that $187,379 of the local option gas
tax monies and $31,431 from the elimination of sanitation employee position for a total of $218,810 be
used to balance the fiscal year 2004-05 city budget. The motion was seconded by Councilmember
Harris and upon roll call vote was as follows:
YEA NAY
Councilmember Harris X
Councilmember Dowdell X
Councilmember Ketring X
Councilmember Everett X
Mayor Feagle X

After roll call vote, Mayor Feagle reminded the Council of the Tuesday, August 31, 2004 budget
session to discuss capital outlay items. Councilmembers agreed to meet at 6:00 p. m.

AGENDA ITEM (10)…ADJOURNMENT.

There being no further business to come before the City Council at this time, the meeting was
adjourned at approximately 7:15 p. m.

ATTEST:

_______________________________ _________________________________
William E. Brynes, City Manager Pam Feagle, Mayor

Recorded in Official Minute Book:

___________________________ _________________________________
Annette Anderson, Secretary Date