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Budget Workshop

JUNE 9, 2011


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10:40:25 >>MARY MULHERN: City Council is called to order for our

10:40:28 budget workshop.

10:40:31 Roll call, please.

10:40:34 >>MIKE SUAREZ: Here.

10:40:35 >>FRANK REDDICK: Here.

10:40:36 >>HARRY COHEN: Here.

10:40:37 >>LISA MONTELIONE: Here.

10:40:40 >>MARY MULHERN: Here.

10:40:40 I will now turn the budget workshop meeting over to our

10:40:45 finance chair, Councilman Cohen.

10:40:50 >> Thank you, Madam Chair.

10:40:52 Good morning, everyone.

10:40:53 This is the moment we have all been waiting for, when

10:40:58 we start talking about the city's financial condition

10:41:01 and the prospects for the coming year.

10:41:04 And it is my pleasure to welcome Sonya little, our

10:41:08 chief financial officer.

10:41:09 To talk to us about next year's budget and the

10:41:14 prospects for moving the city forward.

10:41:17 Thank you for coming.

10:41:20 >> Good morning, Council members.

10:41:22 If I can ask that the presentation be brought up on our

10:41:25 screen here, we'll just go ahead and proceed.

10:41:27 As you mentioned, Mr. Chair --

10:41:44 As we move forward through the presentation, would like

10:41:51 to just provide you with an overview of what we are

10:41:55 attempting to accomplish in this workshop.

10:41:57 To start out with, we'll go over just very briefly with

10:42:00 you the budget calendar.

10:42:02 We'll provide you with an economic outlook or overview

10:42:06 moving forward.

10:42:07 And we'll focus primarily on where we expect our

10:42:11 forecast to be for our general fund and utility tax

10:42:15 funds.

10:42:16 And we will also focus on two of our enterprise funds,

10:42:21 that being parking and solid waste, primarily because

10:42:23 of the potential impact that they will have on our

10:42:25 general fund moving forward.

10:42:27 On slide three, I just very briefly wanted to just

10:42:35 point out our budget calendar.

10:42:38 We're right now in our very first of two budget

10:42:41 workshops with the second one being scheduled for

10:42:44 July 21st.

10:42:46 We're currently scheduled and contemplate that the

10:42:48 Mayor will actually roll out the final budget on

10:42:52 July 28th at which time he'll present the final

10:42:56 budget to Council.

10:42:57 In between that time and the -- between today and the

10:43:00 next workshop, we'll continue to work with you and

10:43:03 provide you with information.

10:43:04 I'll show you the framework of how we have arrived at

10:43:07 the information that we're presenting today and where

10:43:09 we expect to go between now and the next workshop.

10:43:12 Giving priority to the School Board and the county as

10:43:17 required, we have tentatively scheduled our public

10:43:21 hearing around those two entities and right now, the

10:43:25 tentative date for the first public hearing on the

10:43:28 budget will be September 2nd, with the second one

10:43:32 being tentatively scheduled for September 21st.

10:43:35 As it relates to our economic outlook, on Tuesday of

10:43:43 this week, the federal reserve Chairman acknowledged

10:43:46 that the U.S. economic growth so far this year has been

10:43:51 a little bit slower than expected, but he also

10:43:54 mentioned that he anticipates that the second half of

10:43:56 the year we would have to start to anticipate or

10:44:01 experience a more moderate pace.

10:44:03 There is some hope near the end of the second part of

10:44:07 this year.

10:44:08 And according to the University of Central Florida

10:44:12 institute for economic competitiveness, our Tampa,

10:44:15 St. Pete, Clearwater, metropolitan statistical area,

10:44:20 we're expected to experience moderate growth over the

10:44:22 next several years.

10:44:23 So all of this has been factored in as we present our

10:44:26 projections for 2012.

10:44:28 In addition to the moderate overall growth, our

10:44:31 population growth is expected to remain less than 1%

10:44:35 through the end of this year and also a slight growth

10:44:38 through 2013.

10:44:40 Our forecast for 2012 are found on slide 5.

10:44:48 We are forecasting that our revenues for upcoming

10:44:54 fiscal year, 2012, I'm sorry, will be $367.8 million

10:45:01 with our forecast expenditures at $396.2 million,

10:45:07 leaving us with a general fund shortfall of

10:45:10 $28.5 million.

10:45:12 I think this is no surprise.

10:45:15 We've kind of touched on this in our budget briefing

10:45:18 that we provided just a few weeks ago at Council so

10:45:22 we'll walk you through our process and how we are

10:45:26 proposing that this budget shortfall be addressed.

10:45:29 But first, before getting into the nuts and bolts of

10:45:33 it, I wanted to just briefly provide to you our

10:45:39 forecast for 2012.

10:45:41 I won't go into a whole lot of detail about 11 because

10:45:44 that was provided at the budget briefing, but in 2012,

10:45:48 our largest source for general fund revenues is

10:45:52 obviously our property taxes and we all know that our

10:45:56 property taxes came in, the assessed value, the

10:46:00 estimated assessed value came in for '12 at 4% less

10:46:03 than the prior year.

10:46:05 That being said, we projected or forecast that our

10:46:09 property tax revenues will be $117.9 million.

10:46:14 Another of the large or general fund revenues is our

10:46:16 TECO franchise fee revenue.

10:46:19 We are assuming that it remains relatively flat because

10:46:23 this revenue as well as our sales taxes and municipal

10:46:26 revenue sharing revenues are largely driven by our

10:46:30 economy.

10:46:30 So the 12 forecast is reflective of moderate to slow

10:46:35 growth.

10:46:35 At the very bottom, the second to the last row, you'll

10:46:39 see what we anticipate using for the end of fiscal year

10:46:44 '11, $27 million in our general fund proceeds in order

10:46:49 to balance the budget or satisfy our shortfall in that

10:46:53 year.

10:46:53 We've left blank for 2012 the amount of anticipated

10:46:58 fund balance use, because we still need to work through

10:47:01 a couple of things and decisions have to be made.

10:47:04 So that $28 million as far as the amount to be taken

10:47:10 from our fund balance is still to be determined.

10:47:12 And then the final row, as you're all aware,

10:47:17 historically we have relied heavily on our utility tax

10:47:19 revenues to satisfy.some of our general fund operating

10:47:23 expenditures.

10:47:24 Slide 7 is just a carryover from the prior slide where

10:47:35 we referenced other revenues under our general fund.

10:47:38 It's a breakout where we show building permit fees,

10:47:42 payment in lieu of taxes and payment in lieu of

10:47:46 franchise fees.

10:47:47 Occupational license tax and other revenues.

10:47:50 The building permit fees, you will see that we are,

10:47:54 again, reflective of our economy, keeping it very flat.

10:47:58 The same with our other revenues under the general fund

10:48:02 other category.

10:48:03 Our utility tax revenues, we talked to you at the

10:48:13 budget briefing about a rebate that was given by TECO

10:48:17 in the amount of roughly $1 million.

10:48:20 We have not been notified as of yet that it's

10:48:23 anticipated that another rebate will be given, so our

10:48:26 forecast figures are somewhat flat in comparison to

10:48:29 what we budgeted last year for '12.

10:48:33 Communication services tax is a whole new -- whole

10:48:36 different story.

10:48:37 Because of the nature of this tax and the source from

10:48:43 which we receive proceeds and fundings from this tax,

10:48:46 we all know that our world is changing because of

10:48:49 technology, whereas homeowners typically in the past

10:48:52 had had landlines, we're all evolving and using cell

10:48:57 phones and WiFi and free services and bundling

10:49:02 packages, whereas historically, this has been a great

10:49:06 source of revenue for the city.

10:49:09 Back in 2002, we were at 32.1 million, our highest

10:49:13 level.

10:49:14 In 2010, there was a decline of 10% in this one revenue

10:49:18 stream alone.

10:49:19 Then in 2011, we're projecting that the decline will be

10:49:22 11%.

10:49:23 So I think moving forward, this source of revenue, it's

10:49:27 hard to imagine that it will get back to those same

10:49:30 levels ever because of our evolving -- the nature of

10:49:33 our evolving technology, unless there are some measures

10:49:38 taken to maybe capture the ability to tax some of those

10:49:43 bundling packages.

10:49:45 Just real briefly, again, you've seen much of this in

10:49:50 our budget briefing as it relates to our major revenue

10:49:53 trends, but, again, just to connect the dots from 11

10:49:57 and transitioning into 2012, I want to start out with

10:50:02 general fund property taxes.

10:50:04 Again, we mentioned that the estimated property taxes

10:50:10 were released and we will receive certification on

10:50:12 July 1st.

10:50:13 But as it stands right now, we're projecting property

10:50:19 tax revenues of 117.9 million, which is reflective of

10:50:25 the 4% decline in assessed value.

10:50:28 Again, the trend down due to our economy.

10:50:33 The chart on the following page or the graph on the

10:50:39 following page gives you an indication of how much

10:50:42 we've lost since 2007 in the way of revenues.

10:50:45 You'll see in 2011, in comparison to '07 levels, we

10:50:53 lost $44 million in revenue coming into our city from

10:50:56 this source of funding, and we're projecting that in

10:50:59 2012 that figure will be $48.3 million.

10:51:06 >> And just to be clear about this, until property

10:51:12 values rise again, there's no reason to believe that

10:51:14 these revenues are going to be restored anytime in the

10:51:19 near future.

10:51:21 >> Yes, sir, because just factoring in the slow to

10:51:24 moderate growth that everyone is projecting, without

10:51:27 the benefit of raising our millage rate, the only thing

10:51:31 that would put the revenues back up again would be

10:51:34 increasing -- increases in our property value.

10:51:38 Then again back to the TECO franchise fee, also one of

10:51:50 our major general fund revenues, I mentioned that there

10:51:53 was a one-time customer rebate, so the projection for

10:52:00 year-end '11 is lower than what we've actually budgeted

10:52:04 for, because it was an unforeseen event, but we're

10:52:08 keeping for fiscal year '12, we're keeping it level,

10:52:11 because, again, we've not been notified that this event

10:52:14 will occur again in fiscal 2012.

10:52:17 Our sales tax revenues trending our economy, our

10:52:24 forecast for '12, we're reflecting that it remains just

10:52:27 only a minor uptick from '11 to '12.

10:52:32 Municipal revenue sharing, again, another revenue that

10:52:36 tracks our economy.

10:52:38 We anticipate moderate, a very moderate uptick into

10:52:43 fiscal 2012.

10:52:44 Our convention center, which we have been calling

10:52:50 internally our bright shining star, has been

10:52:54 outperforming our budget projections, and we believe

10:52:58 that it will continue in a very positive trend into

10:53:01 2012.

10:53:02 Building permit fees, we did not anticipate any rate

10:53:13 increases for fiscal 2012, so this figure for '12 is

10:53:18 solely based on what we believe to be coming in under

10:53:21 our current rates.

10:53:23 The TECO utility tax for 2017, again, we're

10:53:32 anticipating -- I'm sorry, for 2012, I'm getting ahead

10:53:36 of myself, for 2012, we anticipate just a flat revenue

10:53:42 receipt for that year in comparison to our budgeted

10:53:46 2011.

10:53:47 And here we go again.

10:53:53 This is just a graphic of what we talked about on the

10:53:55 prior chart as it relates to our communication services

10:53:59 tax.

10:54:00 I guess we should really be prepared to see that this

10:54:03 tax is likely to continue to trend downward as folks

10:54:07 move away from the usage of land lines under our

10:54:10 current structure.

10:54:12 Our water utility tax, the uptick that you notice here

10:54:19 in fiscal '11 is due to a rate increase that came

10:54:24 online in that fiscal year, so that the total increase

10:54:30 in that year over the prior fiscal year was 29% but

10:54:34 we're projecting 4% increase for fiscal 2012 putting us

10:54:38 at $5.1 million.

10:54:43 Now, to just highlight what we just went over quickly,

10:54:49 just to highlight the key points of our major drivers

10:54:52 related to the 2012 forecast for ad valorem revenues,

10:54:58 we all know about the decrease in our estimated

10:55:04 property values.

10:55:04 We estimate the $4.2 million decline in our revenues,

10:55:08 but in addition to that major revenue component, we

10:55:12 will have a decrease, which is one good thing in our

10:55:17 pension.

10:55:18 Our cost for pensions, our annual contribution is

10:55:21 expected to decline by approximately $4.1 million.

10:55:24 That's attributable to improvements on our rate of

10:55:29 return on our investments.

10:55:30 And it's also attributable to some adjustments that

10:55:33 were made by our actuarial account on the assumptions

10:55:37 that are made to arrive at those figures.

10:55:39 Our health insurance costs, on the other hand, have

10:55:42 increased.

10:55:42 And obviously everybody knows about expected increases

10:55:45 on fuel.

10:55:46 So our expenditures, although we had some gains related

10:55:50 to our pension, it was wiped out by two other major

10:55:54 components to practically be a wash as far as us seeing

10:55:59 any improvement on the expenditure side for fiscal

10:56:02 2012.

10:56:03 This slide provides you with a breakdown of the major

10:56:17 categories under our general fund expenditures.

10:56:19 Obviously, our largest category are our personnel

10:56:25 costs.

10:56:25 But I do want to point out between fiscal 2011 and

10:56:28 fiscal 2012, the difference is not due to any pay

10:56:33 raises for those two years.

10:56:35 What you're seeing there is for budgeting purposes, as

10:56:38 we move through '11, we have a very good handle on the

10:56:41 number of vacant positions that are likely to be filled

10:56:45 or not filled.

10:56:46 So the 287 million that you see here is reflective of

10:56:50 only filled positions because we're coming to the end

10:56:55 and we have a better position on how we factor in those

10:57:01 positions.

10:57:01 For fiscal 2012 forecast, we have to budget for vacant

10:57:06 positions also, because it's too early on to tell

10:57:09 whether or not those positions are filled or not.

10:57:12 I did want to point out that this does not factor in

10:57:14 any pay increases, but it's related to vacant versus

10:57:17 non-vacant positions.

10:57:21 Moving on to utility tax expenditures from our utility

10:57:35 tax, we transfer to the general fund amounts necessary

10:57:42 to fill our operating gap.

10:57:47 The very bottom line there, you'll see that we're

10:57:50 forecast to transfer $37.7 million, as we've

10:57:54 historically done.

10:57:55 It's pretty on target to prior years as far as our

10:57:59 transfer is concerned.

10:58:00 The top line are transfers from the utility tax for

10:58:05 purposes of paying debt service on our outstanding

10:58:10 bond.

10:58:11 About half of that, roughly 11 million or so pays the

10:58:14 annual debt service on the outstanding bonds, the other

10:58:17 half being made available for capital projects.

10:58:19 Just like we went through our transfer revenues, just

10:58:27 want to briefly share with you our trends for expenses.

10:58:31 We did talk about personnel costs and how we budget

10:58:37 from one year to the other, but this is just a graphic

10:58:40 of the data that we saw on the prior slide.

10:58:43 The overtime usage in our general fund is -- it can be

10:58:50 viewed as an effective management tool because in many

10:58:54 respects, we see that our administrators allow

10:58:58 employees to have overtime instead of hiring full-time

10:59:01 employees to satisfy certain responsibilities and then

10:59:04 we have added on top of that benefits and large

10:59:07 salaries.

10:59:07 So there has been some management, but we can expect

10:59:10 that, you know, we will see some level of general fund

10:59:14 over time moving forward, just as an effective

10:59:17 management tool.

10:59:19 Again, a graphic on our general employees pension.

10:59:25 The slight downward tick, again, attributable to

10:59:29 improvements in our rate of return on the pension

10:59:34 investment and also changes by our actuarial

10:59:36 accountant.

10:59:37 Fire and police experienced a greater downward trend

10:59:46 due to the factors but expected to be $15.4 million

10:59:50 contribution for fire and police for the city's annual

10:59:53 contribution in '12.

10:59:55 The fund balance slide that you'll find on slide number

11:00:04 28 reflects the 27% -- percentage of our general fund

11:00:12 to expenditures.

11:00:14 If you'll recall that our policy, the city's internal

11:00:17 policy is a 20% general fund revenues to expenditures,

11:00:23 and that's also an industry standard, so we feel very

11:00:26 comfortable with our 20% target.

11:00:29 If we do nothing at this point, and we take the

11:00:34 estimated $28 million shortfall entirely from general

11:00:40 fund balance for the upcoming '12 fiscal year, we could

11:00:44 expect that our percentage would be in the neighborhood

11:00:46 of 21%, putting us extremely close to our 20% policy

11:00:52 threshold.

11:00:57 >> This scenario assumes that all of the money to make

11:01:01 up the shortfall would come out of reserves.

11:01:05 >> Yes, sir.

11:01:06 >> And it would result in basically an 8% drop.

11:01:14 >> Exactly.

11:01:14 That's our projection is that it would be in the

11:01:18 neighborhood of 8%.

11:01:19 >> That's assuming there would be no other cuts made

11:01:22 anyplace else in the budget.

11:01:23 >> If we do nothing else on our projections and

11:01:27 revenues and expenditures hold true, we would expect to

11:01:29 be in the neighborhood of 21%.

11:01:31 Now, before we actually move into the scenarios that

11:01:40 we're going to present as far as our operating and

11:01:44 reduction proposals from departments, I wanted to kind

11:01:48 of give you a framework of where we started

11:01:52 historically.

11:01:53 In 2009 -- in 2010, fiscal year 2010 for budgeting

11:02:00 purposes, departments were given instruction to provide

11:02:04 budget proposals that were at 2009 levels.

11:02:07 With no increases, but operate at 2009 levels in fiscal

11:02:13 year 2010.

11:02:14 In 2011, departments were given the same instruction to

11:02:22 propose a budget no greater than what was proposed in

11:02:24 2010, which in actuality is 2009 operating levels.

11:02:28 In addition to that, add an additional 3% reduction to

11:02:34 that.

11:02:34 So moving forward, we used that as our framework or our

11:02:40 base case scenario, keeping things the same as what was

11:02:44 proposed last year for last year's operating levels,

11:02:48 which in essence again takes us back to 2009 plus an

11:02:52 additional 3% decrease.

11:02:57 And we asked them to provide three scenarios.

11:03:00 The first base case that we just talked about.

11:03:03 The second scenario was that base case plus an

11:03:08 additional 10% operating reduction and then scenario

11:03:12 three, the base case plus an additional 15% operating

11:03:16 reduction.

11:03:17 So from each department, we received three scenarios to

11:03:22 address these parameters.

11:03:23 Keeping in mind that, you know, what you're about to

11:03:30 see are some very painful results as far as this

11:03:35 request is concerned, and that we still have some work

11:03:38 to do to get us to where we need to be, where you as

11:03:43 Council and the Mayor feel comfortable as far as the

11:03:46 level we'll cap our reserves versus operating

11:03:49 reductions, but it was our job to provide to you at

11:03:52 least options from an operational standpoint that you

11:03:56 can review and make some decisions.

11:03:58 This particular slide gives a summary by department for

11:04:05 scenario one -- scenarios one, two, and three.

11:04:08 I have some future slides that break it out so it's

11:04:12 more legible but wanted to give it to you in summary

11:04:15 for ease.

11:04:16 But if we want to start out with scenario one, which is

11:04:23 found on slide 31, you'll see that we've broken it

11:04:30 down, the reductions between personnel and operating

11:04:34 reductions by department.

11:04:38 What I want to point out to you is that among the three

11:04:44 scenarios, it's not feasible that we would just strip,

11:04:47 just go down the line and take all of scenario one, all

11:04:51 of scenario two or all of scenario three.

11:04:54 What makes more sense and is more feasible is that we

11:04:59 evaluate each department based on scenarios one, two

11:05:02 and three.

11:05:03 We may have one department that will decide it makes

11:05:06 sense to go with scenario one.

11:05:07 Another scenario two and then another scenario three.

11:05:11 So keeping in mind that this is a menu of options,

11:05:14 because when I say painful, I mean that if we were to

11:05:18 strip it, as shown here by each scenario, it would

11:05:21 range in reductions between $2.4 million under scenario

11:05:25 one to $36 million under scenario two to $52 million

11:05:30 under scenario three.

11:05:34 >>HARRY COHEN: And when are we going to have the

11:05:35 opportunity to understand what each of the scenarios

11:05:38 means to the individual departments?

11:05:40 How will that be communicated to us and how will we

11:05:46 have that dialogue?

11:05:47 >> Yes, sir.

11:05:48 We'll provide you with backup information.

11:05:52 Today, I'll highlight a couple of areas so that you as

11:05:56 Council can see some of the areas and some of the

11:05:59 things considered as far as operating reductions, just

11:06:01 so you start to get a feel, but we do have backup

11:06:04 material that can be provided.

11:06:08 >>MIKE SUAREZ: Ms. Little, thanks for this.

11:06:10 Quick question on scenario one and I'm not going to get

11:06:14 into specifics about each one, but when you're talking

11:06:17 about personnel reduction, is most of that or all of

11:06:21 that by attrition, open positions that we are closing?

11:06:25 Or is that actually cutting into personnel that we

11:06:30 currently have?

11:06:31 >> Each of these scenarios includes vacancies.

11:06:35 Because the vacancies are there and we budget for them

11:06:39 for the upcoming year until we get closer down the line

11:06:41 and our budget is amended.

11:06:43 So, for instance, under scenario one, almost 30 of

11:06:47 those positions are actually vacant already.

11:06:51 >>MIKE SUAREZ: 30 much these current ones --

11:06:53 >> Under scenario one are currently vacant.

11:06:57 >>MIKE SUAREZ: Of those in there, I know we have 11

11:06:59 that are Tampa police, how many of those are open

11:07:02 versus --

11:07:04 >> For police under scenario one, all of these are

11:07:07 vacant.

11:07:08 Now, it doesn't hold true as we move forward, that's

11:07:11 why I say --

11:07:13 >>MIKE SUAREZ: I understand, because I saw the numbers

11:07:15 and there's no way we have that many open positions.

11:07:17 I figured that there was a large percentage of them

11:07:20 that were already open and budgeted but not necessarily

11:07:25 filled yet.

11:07:26 So that's why I wanted to get that clarification on the

11:07:29 record.

11:07:29 >> Yes, sir.

11:07:29 >>MIKE SUAREZ: Okay.

11:07:31 Thank you.

11:07:34 >>MARY MULHERN: Yeah, I want to follow up on the

11:07:37 personnel question.

11:07:38 So you said almost 30 of these are already vacant.

11:07:43 Say in scenario one, is there one sheet -- 30 out of

11:07:54 how many?

11:07:54 Do we have a total?

11:07:56 >> Yes, ma'am.

11:07:57 A total there under scenario one is 50 positions, and

11:08:03 of the 50, approximately 30 are vacant.

11:08:07 >>MARY MULHERN: I have another question -- a couple of

11:08:12 questions.

11:08:13 First of all, thank you for this.

11:08:14 I don't remember seeing anything this early with this

11:08:19 kind of detail by department, at least not in this

11:08:22 format where it was really easy to read, so this is

11:08:25 great.

11:08:25 >> Thank you.

11:08:25 >>MARY MULHERN: I really appreciate it.

11:08:27 And what we've always done is we had, I think two

11:08:32 workshop meetings where by department, I'm assuming,

11:08:37 maybe Dennis can tell us, that's what you were going to

11:08:40 do so that each department, of the major departments

11:08:43 would present to us what they are recommending to do.

11:08:51 Is that how this is going to work?

11:08:52 I mean, this is a little different, very different,

11:08:56 actually.

11:08:56 I don't think anybody ever had the department --

11:09:07 department heads may have had it given to them as

11:09:10 direction but didn't see it on Council.

11:09:12 It's help for us and to the public to see what we're

11:09:15 looking at.

11:09:16 My other question was, these are just totals now, but

11:09:24 when you give us these totals and projections and

11:09:29 shortfalls, they overall, you know, costs, personnel

11:09:36 costs, I've been asking for this for years, and I don't

11:09:41 think I've ever seen it, maybe with this much notice,

11:09:45 you guys could pull it together.

11:09:47 I would like to see all of the privatized contracts.

11:09:54 You know, when you give us your personnel costs, I

11:09:57 think they tend to be salary and benefits for city

11:10:03 employees, but I'd like to see how much we're spending

11:10:06 by contract by department on outsourced jobs.

11:10:13 I know we've done a fair amount of it, security and

11:10:17 janitorial, if we could see what that is.

11:10:24 >> Sure, we would be happy to provide that information

11:10:27 for you.

11:10:28 >>MARY MULHERN: Thanks.

11:10:32 >>HARRY COHEN: I wanted to make a general comment on

11:10:33 the issue of vacancies.

11:10:35 As we move forward and we request the individual

11:10:38 departments about what their needs are and what the

11:10:42 different scenarios are that they are looking at, one

11:10:45 of the things that concerns me about relying on

11:10:49 vacancies is that vacancies tend to be not necessarily

11:10:56 in the places that the departments would choose to have

11:10:59 them to have the maximum or the minimum impact on

11:11:07 services.

11:11:07 So one thing that I know I'll want to know going

11:11:10 forward is not so much just focusing on the vacancies,

11:11:16 but looking at whether or not we can take the money

11:11:19 from a vacancy and maybe reprogram it in such a way

11:11:23 that it allows us to lose a position in an area that

11:11:28 makes more sense from a service delivery point of view.

11:11:33 >> Yes, sir.

11:11:34 And that's a very good point, because in some of our

11:11:38 internal meetings, that discussion has come up and in

11:11:41 working with the administrators from each department,

11:11:44 we're relying on them to provide us with that

11:11:46 information and knowing that this is our starting point

11:11:50 with these scenarios and these targeted percentage

11:11:53 reductions, but we're going to end up somewhere in

11:11:56 between and a combination of one or all or maybe -- one

11:12:01 or all of them.

11:12:02 And knowing that we do at this point, because we are

11:12:06 starting so early, have the flexibility to address

11:12:09 issues such as the one you just laid out.

11:12:12 So that is our overall objective is to make sure that

11:12:15 we're just not sweeping vacancies, but we're very

11:12:19 carefully considering and making sure that those monies

11:12:22 that we think we can capture should not be reallocated

11:12:25 for other purposes within the department.

11:12:27 And again, our intent is to make sure that you're kept

11:12:33 up to speed as we move through the process.

11:12:35 We provided individual schedules for each of the

11:12:47 scenarios.

11:12:48 We just spoke briefly about scenario two -- one, I'm

11:12:51 sorry.

11:12:52 Scenario two, as I mentioned, is a little bit more

11:12:58 extreme, being that we added an additional 10%

11:13:04 reduction over the base line.

11:13:06 Again, I keep pointing out to me, because I think this

11:13:09 is really important that starting at the baseline from

11:13:13 fiscal year 2009 operating levels, plus the 3%

11:13:17 reduction on top of that and then we're asking

11:13:20 departments to pretty us with an additional 10 to

11:13:23 15 percent layer on top of that, so some very tough

11:13:27 decisions have to be made and really analyze very

11:13:29 thoroughly by line item to make sure that we're taking

11:13:32 the very best approach.

11:13:39 >> Ms. Little, back to scenario two, if you don't mind.

11:13:43 Same question I had before.

11:13:44 What's the total personnel numbers that we're looking

11:13:48 at here, the total number of folks that would be

11:13:52 reduced, how many positions?

11:13:54 >> It starts to get staggering in scenario two.

11:13:57 >> I can already see from police and fire.

11:14:02 >> General fund, roughly 474 total positions.

11:14:09 Of those positions, roughly 60 are vacant.

11:14:13 >> All right.

11:14:14 So now we're really starting to cut into the meat.

11:14:16 >> We're starting to cut in and then evaluating.

11:14:19 We have to really consider our level of service that

11:14:21 we're going to provide and the impact thereof.

11:14:24 >> Well, you went to what my next question would have

11:14:26 been.

11:14:27 Of those 60 vacant, how many of them are fire and

11:14:29 police?

11:14:31 >> Of the 60 vacant, 27 police and none of them are

11:14:42 vacant for fire.

11:14:45 >> Thank you.

11:14:54 >> Under scenario 3, no doubt, extremely painful, if we

11:14:57 were to take a clean sweep across the board and

11:15:00 entertain each one of these suggested reductions,

11:15:05 which, again, doesn't make sense.

11:15:09 Under scenario 3, our total is roughly 6 -- 729 total

11:15:19 positions of which roughly 63 are vacant.

11:15:24 Again, the same 27 for police and no vacancies for

11:15:33 fire.

11:15:48 >>HARRY COHEN: So the next time we come together to

11:15:50 talk about this, is it your expectation that the

11:15:53 department heads will be here and will be table to talk

11:15:57 to them in depth about what each of these scenarios

11:16:01 means to their department in terms of -- I mean, just

11:16:05 as an example, if you made some of these types of cuts

11:16:08 to the fire department, what that would mean in terms

11:16:11 of response times, what it would mean in terms of the

11:16:15 services that people have come to expect when they call

11:16:18 911.

11:16:19 >> Yes, sir.

11:16:19 When we move into and leading up to the next workshop,

11:16:26 we will make sure that you're provided with what our

11:16:31 recommended direction will be at that time, and then

11:16:34 we'll certainly be equipped to answer any questions as

11:16:37 far as impact to service at that next workshop, yes,

11:16:39 sir.

11:16:40 That concludes the part of the presentation for our

11:16:49 general fund.

11:16:50 More good news moving into our enterprise fund.

11:16:52 Parking and solid waste, you've been briefed again at

11:16:55 our six-month budget briefing, but we wanted to just

11:17:00 expand 2011 into 2012 and just highlight a couple of

11:17:06 areas that you need to be aware of for the two

11:17:08 enterprise funds.

11:17:09 Starting out with our parking fund, we project that

11:17:13 revenues will be $13.3 million for '12.

11:17:17 Our expenses, 20.1 million.

11:17:22 And our projected fund balance usage to cover our

11:17:25 expenses is almost $7 million as we shared with you a

11:17:31 few weeks ago.

11:17:32 Just to remind you, this is largely attributable to our

11:17:34 bump in debt service in the upcoming fiscal year to

11:17:38 $7 million from levels in the neighborhood of just

11:17:41 below two, two million because of the structure of the

11:17:44 debt service.

11:17:45 From an operational perspective, just to show you how

11:17:54 overall and across the board our revenues have declined

11:17:58 largely due to our economy, a drop in our user base,

11:18:02 and also, we have lost meters, therefore impacting our

11:18:07 overall revenue stream.

11:18:09 And it's just a given and no surprise where we are as

11:18:16 far as -- where we are as far as our collections and

11:18:19 our usage for our garage and parking facility.

11:18:24 >>HARRY COHEN: One of the things that came up when we

11:18:26 were discussing this workshop a few days ago was the

11:18:32 issue of collection of money that's owed to us.

11:18:35 Is that an area that in your view we could look to to

11:18:42 capture some additional revenue?

11:18:45 >> Absolutely.

11:18:46 As a matter of fact, we are internally having

11:18:50 discussion of all areas of collection.

11:18:52 We do have a billing process, but maybe lacking a

11:18:56 little bit as far as our collection procedures.

11:18:59 In many cases, notification to people who owe money to

11:19:04 the -- the city stops after many three letters.

11:19:08 And we're in the process of evaluating.

11:19:11 >> The Florida legislature requires court fines and

11:19:16 fees and those types of and traffic tickets that are

11:19:24 issued with uniform citation.

11:19:26 The Florida legislature actually requires the use of

11:19:29 collection acts to go -- agents to go out and go after

11:19:34 that money after 90 days.

11:19:35 Is that something that the city might look at as a way

11:19:40 of increasing the dollars coming in?

11:19:42 >> Yes, sir.

11:19:43 Absolutely.

11:19:43 The research is already underway, and we hope to be

11:19:46 able to report back to you our findings.

11:19:48 We are checking with other municipalities who have

11:19:52 already instituted collection measures, and we're

11:19:56 talking -- we're beginning discussions with firms who

11:20:00 particularly focus on municipal collections.

11:20:04 >> Ms. Little, how many parking lots do we have?

11:20:08 How many do we own?

11:20:09 >> We have a total of 11 parking lots.

11:20:12 Garages.

11:20:16 I'm sorry.

11:20:17 11 parking garages.

11:20:19 >>MIKE SUAREZ: We've got it broken down by garages and

11:20:22 then lots.

11:20:22 We've got a difference between the two, don't we?

11:20:28 We have some lots that are surface lots?

11:20:31 >> Surface lots, correct.

11:20:32 >>MIKE SUAREZ: We have 11 of those?

11:20:34 >> Parking garages, actually buildings, 11.

11:20:39 >>MIKE SUAREZ: Okay.

11:20:40 I understand that.

11:20:40 But the graphic that you have, you have what the

11:20:43 garages are doing monthly and then you have what the

11:20:45 lots are doing monthly.

11:20:48 I assume they are surface lots, not parking garages.

11:20:53 Not in and of themselves the same.

11:20:56 >> I'm sorry.

11:20:57 You're asking how many lots.

11:20:58 May we provide that to you?

11:21:02 We don't have the number of lots.

11:21:03 I apologize.

11:21:05 >>MIKE SUAREZ: No problem.

11:21:06 I was getting confused.

11:21:08 I was thinking what is the difference with a lot and

11:21:10 garage.

11:21:10 One is on the surface and one goes up.

11:21:13 >> You're exactly right.

11:21:17 >>MARY MULHERN: Okay.

11:21:18 I have lots of questions.

11:21:19 Can we pay parking citations online?

11:21:27 >> Are we able to pay parking citations online at this

11:21:30 time?

11:21:31 >> The answer is yes.

11:21:32 I just paid one.

11:21:33 >>MARY MULHERN: Well, I just paid a traffic citation

11:21:36 and I wasn't able to pay it online.

11:21:38 And I think that has to do with -- these are things we

11:21:41 have to keep in mind as we cut personnel is that if you

11:21:47 don't have people -- you know, if you have to hire

11:21:50 collection agencies, perhaps that's because we don't

11:21:52 have the personnel to do a lot of the collections.

11:21:55 As we're cutting personnel, we can often be cutting --

11:22:01 I mean, everywhere we end up cutting our sources of

11:22:04 revenue and not just in providing those services, but

11:22:07 also in causing unemployment and people who can no

11:22:11 longer pay their property taxes or pay -- go shopping

11:22:16 and pay sales taxes, which is where our revenue comes

11:22:18 from.

11:22:19 I just want the public and people to keep in mind that

11:22:23 fact that when it comes down to laying off city

11:22:26 employees, you're also, you know, compounding a lot of

11:22:29 our budget woes.

11:22:31 Why do you attribute -- this is really interesting.

11:22:39 Every single parking metric has gone down.

11:22:46 Why are there less citations?

11:22:50 28% less citations.

11:22:52 >> Part of that is attributable to a decline in the

11:22:55 number of meters that the city has.

11:22:59 A couple of years ago, several of them were cut.

11:23:01 A large portion of that is attributable to that.

11:23:06 >>MARY MULHERN: The monthly garages.

11:23:10 >> Economy driven.

11:23:11 With more vacancies in our downtown area, usage has

11:23:15 dropped, demand has dropped significantly.

11:23:18 >>MARY MULHERN: So that's unemployment related to.

11:23:21 >> Largely unemployment related.

11:23:22 I would not say it has anything to do with our fee

11:23:25 structure because we're so far below where others in

11:23:31 our area are.

11:23:32 So we attribute it largely to our economy and

11:23:34 unemployment.

11:23:35 >>MARY MULHERN: So -- and that looks kind of

11:23:37 proportionate, a lot higher than unemployment lots,

11:23:42 24%.

11:23:43 I guess it could be attributable to that.

11:23:47 But then when you look at the 44% loss in the lots as

11:23:53 opposed to the garages, 24%, I mean, I know that there

11:23:58 are a lot more -- there are private companies that have

11:24:01 been buying up land downtown.

11:24:04 Is that what's going on, that our lots are not as

11:24:09 convenient.

11:24:11 >> That could very well be a part of the problem.

11:24:13 If I can share with you, and first, I'll just mention

11:24:16 before sharing with you, something that is really

11:24:20 pertinent to the questions that you're asking.

11:24:21 I was just passed a note that we have 19 lots, surface

11:24:24 lots.

11:24:25 We are right now and have been for the last several

11:24:33 weeks undergoing an analysis of the entire parking

11:24:37 system.

11:24:39 Whereby, we are providing a profit loss statement by

11:24:42 parking garage, by revenues collected from our lot

11:24:47 areas, and our meters, a full-blown profit and loss

11:24:53 statement for each segment of our parking system.

11:24:57 In addition to that, our Real Estate Department is

11:25:02 providing to us estimates on the value of our assets

11:25:05 within the parking system.

11:25:07 We are doing a comparison of rates being charged in the

11:25:12 area, rates being charged by other comparable

11:25:16 municipalities, not necessarily within our area.

11:25:19 Our intent is to provide to you a full-blown analysis

11:25:26 where you're in a position to make some decisions on

11:25:29 where we head with our parking situation, because when

11:25:33 we're looking at a total of $28 million shortfall,

11:25:37 seven of which is attributable just to our parking

11:25:40 system, it's a huge hit against our overall general

11:25:44 fund on an annual basis, and it's systemic.

11:25:47 We will experience this level of a hit to our general

11:25:51 fund at least for the next five years, as long as that

11:25:54 debt service is -- remains at those levels.

11:25:58 So it's our intent to provide you with a full-blown

11:26:02 analysis so that we understand even as far as what the

11:26:06 greats are, the developer agreements linked to each

11:26:09 project are.

11:26:09 So that some decisions will be made -- can be made on

11:26:13 how we address this issue, whatever your pleasure.

11:26:19 >>MARY MULHERN: I have a couple more questions.

11:26:20 I'll try to be quick.

11:26:21 Charges for service, that's down 19%.

11:26:25 What does that mean?

11:26:26 What are charges for service?

11:26:32 >> Garages, lots and meters.

11:26:34 And if you'll allow me.

11:26:38 I need clarification on garages, lots and meters.

11:26:43 Is that actually the fee that we're talking about?

11:26:45 >> Yes, those are the fees we charge for permitting

11:26:48 people to park in those areas.

11:26:51 >>MARY MULHERN: Fees as opposed to, like, metered

11:26:53 parking where you're paying as you go?

11:26:56 It's like monthly parking or is it a fee for an

11:27:00 entire --

11:27:01 >> Those are the fees associated with parking anywhere,

11:27:03 either metered, in lots or in garages.

11:27:06 >>MARY MULHERN: Okay.

11:27:08 All right.

11:27:08 This is kind of my take, as you do that analysis of

11:27:18 parking, okay, so we have under utilized garages and

11:27:25 also underutilized lots, so as we look at our assets as

11:27:31 far as telling our assets, if we're going to talk about

11:27:34 selling parking lots, surface parking lots or selling

11:27:37 garages, I think it needs to be looked at -- it does

11:27:44 not make sense to me as we did recently, I think we

11:27:49 sold a big lot where -- not just Tampa general, but

11:27:54 there is a surface lot.

11:27:59 So we're selling land downtown to people who are

11:28:03 creating parking.

11:28:04 And they are making a profit.

11:28:05 So can we please think about how we can actually make

11:28:13 money off of our garages and our lots and our land?

11:28:16 Because in the long run, if we don't sell, especially a

11:28:20 surface parking lot, instead of selling it, we actually

11:28:27 charge more, at least being competitive with the

11:28:29 private lots, eventually when the land appreciates,

11:28:35 which it will, we might be able to use that as a city

11:28:38 for a higher and better use or sell it as a profit.

11:28:41 So I just think this whole idea of let's not sell

11:28:45 anything off cheap, and I also think it's interesting

11:28:48 because if our costs are mostly from the bond, we're

11:28:56 actually not doing that badly.

11:28:57 If we didn't have the debt, we would be doing okay.

11:28:59 So if we can figure out a way to increase our parking

11:29:04 revenue and increase the usage, I think those are

11:29:07 better ways of dealing with it than entering into

11:29:12 more -- selling off more of our assets.

11:29:15 >> Yes, ma'am.

11:29:16 I think we agree, all of us agree.

11:29:20 Because in our internal discussions, one of the things

11:29:23 that we want to point out as it relates to our debt,

11:29:29 that $7 million bump will go away roughly in the next

11:29:32 five to six years.

11:29:33 As part of the analysis to make sure that you're

11:29:36 equipped with sufficient information to make those

11:29:39 kinds of decisions, that will be provided.

11:29:41 In addition to laying out for you the debt attributable

11:29:45 to each garage, we will also provide an analysis of

11:29:49 rates, show the breaking point for the levels that we

11:29:54 can increase rates for each garage, each lot, and all

11:29:58 of the meters to at least break even or eventually

11:30:03 provide a profit, because keeping in mind that if we do

11:30:08 sell, you know, the private sector, they are out to

11:30:11 make a profit.

11:30:12 And if we -- we could expect that they would raise

11:30:15 rates if we did so.

11:30:16 So all of those things have to be carefully considered

11:30:19 and we want to provide you with sufficient enough

11:30:22 information so that you have the tools to make a

11:30:24 decision.

11:30:27 >> Thank you.

11:30:33 >>LISA MONTELIONE: I said this last time and I think

11:30:34 I've said this in other conversations, parking is going

11:30:38 to become an antiquated use of land as we encourage

11:30:44 development of residential units downtown as we develop

11:30:48 mixed use properties where people can bike, walk or

11:30:54 eventually take mass transit to their places of

11:30:58 employment, the grocery store, wherever, parking is

11:31:01 going to become obsolete.

11:31:05 I mean, hopefully in a perfect world.

11:31:10 But we do have to look at highest and best uses as

11:31:14 Councilwoman Mulhern pointed out, parking lots downtown

11:31:19 on the waterfront, we talked the other day during

11:31:22 Council about the parking lot adjacent to the Florida

11:31:25 Aquarium.

11:31:26 These are valuable pieces of land.

11:31:29 And I agree, we don't want to sell them off in a down

11:31:33 economy where we're not going to get the value that

11:31:37 maybe we would in four or five years when the market

11:31:40 comes back.

11:31:41 We need to be creative, and we need to find other ways

11:31:46 to purpose this land.

11:31:48 Parking may not bring us the highest amount of revenue.

11:31:57 And that's what they do for us, they generate revenue.

11:32:00 I don't see the purpose -- if they are not being used

11:32:03 to park cars, we've got to find something else to do

11:32:08 with them.

11:32:08 >> Yes.

11:32:09 And along those same lines with the Hart lot that was

11:32:13 recently sold, that was at part of an overall

11:32:17 arrangement where the camels, the new facility, the

11:32:21 health facility is coming in, the training, medical

11:32:24 training facility.

11:32:25 So that in itself, you know, we just didn't farm it off

11:32:28 to a private developer to make a huge profit.

11:32:32 It's serving a purpose where we're actually reaping

11:32:35 some of the benefit for that facility coming into our

11:32:39 city.

11:32:39 So those are the types of things that I think we agree

11:32:42 with you, councilwoman, that we need to also factor

11:32:44 into the whole scheme of things.

11:32:51 >>HARRY COHEN: Just one additional comment.

11:32:53 I think this is the type of difficult choice that

11:32:56 families and households are facing all over the country

11:33:00 as they reconcile their spending with the amount of

11:33:07 money they have coming in and maybe money that's been

11:33:10 spent in the past.

11:33:11 The one concern that I have about raising the parking

11:33:14 rates is that at some point, if you raise the rates too

11:33:18 much, you just drive the people out of the parking

11:33:20 garages entirely and you end up driving them to other

11:33:24 places in the city at the expense of places that the

11:33:28 city has recently made a lot of investment.

11:33:31 And I think that's going to be the balancing that we

11:33:33 have to do going forward.

11:33:36 And none of these choices are going to be easy.

11:33:39 If there was an easy answer, if someone would have come

11:33:42 up with it by now and we wouldn't even be having this

11:33:46 discussion.

11:33:57 >> If it's your pleasure, we can move on and continue

11:34:00 with the presentation.

11:34:01 I think we just touched on where we are for charges in

11:34:08 services and our trends for expenditures and revenues.

11:34:15 The graphic that you see on slide 38 provides you with

11:34:19 more of what we've been talking about where we've been

11:34:23 supporting the operations side of the parking system

11:34:28 and in fiscal '11 when the debt service bumped in, it

11:34:33 went from roughly $1.7 million general fund

11:34:36 contribution and we could expect roughly 7 million from

11:34:39 here on out until the debt is paid down.

11:34:42 The table you see here tracks, once again, how the

11:34:50 revenues due to the shortfall in the system are

11:34:54 tracked, and it tracks on the very bottom line there,

11:34:58 our hit to the general fund.

11:35:03 >>HARRY COHEN: And the fund balance that you're

11:35:05 referencing there, that was the money that was the

11:35:07 proceeds of the Tampa general garage?

11:35:09 >> That is the fund balance that has been accumulated,

11:35:14 including the sale of those proceeds within the parking

11:35:17 system.

11:35:17 So those proceeds and any other fund balance we have is

11:35:22 totally depleted as of fiscal 2011.

11:35:35 >> Ms. Little, I know this has already been done, but

11:35:38 I'll ask you a question anyway.

11:35:39 Any way of renegotiating those bonds more to our favor

11:35:43 in terms of the amount of debt service?

11:35:46 I know that when you renegotiate, a lot of times -- or

11:35:49 not a lot of times, most of the times you have to add

11:35:52 years onto it.

11:35:53 Have you already done an analysis of that, and I assume

11:35:56 you did, and what that result was?

11:35:59 >> Yes, sir.

11:36:00 As it stands right now, there is no savings to -- no

11:36:04 significant savings to refund the bonds at a lower

11:36:08 interest rate, as it stands right now.

11:36:10 The analysis has done and we continue to monitor it to

11:36:14 see if as bonds are paid off, that we can realize

11:36:18 casual savings by refinancing the debt.

11:36:22 We've also looked at extending the debt, whereas you

11:36:26 push the principal out, but we don't know if that would

11:36:31 be the most wise decision, because you're just buying

11:36:33 time and we still -- we're increasing the ultimate

11:36:36 amount that we'd have to pay back over time.

11:36:39 >>MIKE SUAREZ: Yeah, we're doing a balloon loan

11:36:42 until -- we have to pay everything back at once anyway.

11:36:45 >> Absolutely.

11:36:46 It somewhat puts us back in the same position.

11:36:49 Along those same lines, we will provide that analysis

11:36:52 as a part of the overall system analysis.

11:36:56 >>MIKE SUAREZ: Thank you.

11:36:57 >> Sure.

11:36:58 This is the infamous slide that we've all seen before,

11:37:07 where after this fiscal year we have zero fund balance

11:37:11 in our parking system.

11:37:12 This slide is a summary of where we are headed with the

11:37:21 analysis that's currently underway.

11:37:23 For fiscal 2010, you can see by category where we are

11:37:27 from a profit lot, for garages lot, meters and the

11:37:37 balance.

11:37:37 We plan on extending this particular table so that you

11:37:44 see not only garages grouped together but each

11:37:46 individual garage.

11:37:48 So we'll be back with more information when the

11:37:52 analysis is complete.

11:37:54 But for fiscal year 2011, it's just what we've been

11:37:57 talking about, the $7 million hit.

11:38:03 >>MARY MULHERN: I just have a question.

11:38:04 It might be in one of these earlier slides.

11:38:07 How does our meter -- with the transitioning that we

11:38:11 have a lot more of the automated meters now, has that

11:38:17 affected our --

11:38:24 >> I don't have that information, but I can get back to

11:38:26 you.

11:38:26 Because some of the automation is fairly new and coming

11:38:34 online, I personally don't have that information, but I

11:38:37 can seek it out.

11:38:42 >>MARY MULHERN: Yeah, if it's too early to tell, that's

11:38:45 fine.

11:38:45 If you have anything to show us.

11:38:47 Parking comes for the next budget workshop, that would

11:38:50 be --

11:38:54 >>MIKE SUAREZ: When you do the analysis of each

11:38:56 individual garage, and I assume you're going to put

11:38:58 this, but if you don't, I would really like to see

11:39:00 this, is how much of a debt load is on each of the

11:39:06 garages in relation to our total debt that we are

11:39:09 paying on bonds for all the garages, if you follow what

11:39:13 I'm saying.

11:39:13 So what does each -- what is each one costing us on a

11:39:18 bond basis?

11:39:19 >> Yes, sir.

11:39:20 We will.

11:39:20 By garage.

11:39:22 >>MIKE SUAREZ: Thank you.

11:39:23 >>HARRY COHEN: I would add to that, I would like to see

11:39:26 what the actual operating expenses are of each

11:39:29 individual garage, the number of personnel, how many

11:39:31 people are there at given hours and really down to some

11:39:36 of the detail.

11:39:37 >> Yes.

11:39:39 Absolutely.

11:39:39 This slide summarizes what we've been discussing, that

11:39:53 is systemic and we'll provide you with the information

11:39:57 so some decisions will be made.

11:39:59 Moving on to solid waste, is again, this information

11:40:06 was provided in our budget briefing for fiscal 2011.

11:40:11 For fiscal 2012, our projected revenues for the solid

11:40:14 waste fund is 28.5 million with expenses of 72.6

11:40:21 leaving us with a deficit of 4.1 million projected for

11:40:25 fiscal 2011.

11:40:27 This slide was presented in the budget briefing where

11:40:33 we were running into very similar to the parking

11:40:36 system, where our solid waste fund balance will be zero

11:40:41 under a do-nothing scenario in fiscal 2013.

11:40:54 >>MARY MULHERN: Are you still talking about the solid

11:40:55 waste?

11:40:56 >> Yes.

11:40:56 >>MARY MULHERN: I'll wait until you are done.

11:40:59 >> Okay.

11:40:59 I just have one more slide on solid waste.

11:41:03 The slide on slide 46 provides some of the initiatives

11:41:10 from an operational perspective that have already been

11:41:14 implemented in this current fiscal year to address the

11:41:18 shortfall that we are experiencing, to highlight the

11:41:21 two larger ticket items, the environmental management

11:41:25 team has been transferred from solid waste fund to the

11:41:28 general fund in order to provide some relief.

11:41:32 No positions were lost.

11:41:34 It's just that the personnel cost associated with those

11:41:37 positions have been moved under our general fund.

11:41:40 And the annual savings is roughly 684,000.

11:41:45 And in addition to the transfer of those positions to

11:41:49 our general fund, there were some efficiencies as far

11:41:54 as the routes are concerned that were realized.

11:42:00 It's expected that the benefit will be just over

11:42:02 319,000 annual benefit.

11:42:05 And there are additional initiatives that are being

11:42:08 considered right now for the system from an operational

11:42:13 perspective, but they haven't been completely worked

11:42:15 through.

11:42:17 >>HARRY COHEN: We know that our debt service is the

11:42:19 thing largely driving our deficit in the parking garage

11:42:26 situation.

11:42:26 What is driving the downward trajectory here?

11:42:30 >> I would say that our operating expenses, although

11:42:35 they are somewhat -- they've been higher in prior

11:42:40 years, our operating expenses are still -- this is a

11:42:43 highly -- the operations and maintenance required for a

11:42:46 solid waste system, because of all the moving parts are

11:42:49 obviously quite high.

11:42:52 But our rate structure is such that we're not certain

11:42:55 that our rate structure is commiserate with the

11:42:59 services that we as the city offer.

11:43:04 And we are in the process -- we're in the process of

11:43:07 engaging an independent feasibility consultant who will

11:43:13 review the services and the fees that we charge and

11:43:15 compare them to others and provide recommendations to

11:43:18 us as to where our rates and fees should be in order

11:43:22 to.

11:43:26 >>HARRY COHEN: I visited the solid waste processing

11:43:32 plant yesterday.

11:43:32 And one of the things that I learned was that a

11:43:36 recycling program costs the city about $3 million a

11:43:42 year to run.

11:43:43 It's not self-sustaining in terms of the cost.

11:43:47 Is that correct?

11:43:49 >> Yes, sir.

11:43:49 That's absolutely correct.

11:43:51 It's been -- as far as the view of the system and the

11:43:55 services we provide, you know, one of those major areas

11:43:59 that's being reviewed at this point.

11:44:02 I guess it's no secret that recycling for most

11:44:07 municipalities is very difficult to even break even,

11:44:11 and we've been talking with several people and we are

11:44:16 having dialogue where we are trying to find the optimal

11:44:20 way to run a recycling program.

11:44:23 And so all of that is underway, and I feel much more

11:44:26 comfortable moving forward now that we're bringing in

11:44:29 an expert who can give us some direction on how we

11:44:33 address these major issues and challenges.

11:44:40 >>MARY MULHERN: Several questions.

11:44:43 On the solid waste fund initiative, the environmental

11:44:46 management, does that include the recycling?

11:44:49 >> These are just people that are moved over.

11:44:53 And I believe --

11:44:54 >>MARY MULHERN: So your savings --

11:45:03 >> Dennis, revenue and finance.

11:45:04 The environmental management program is still

11:45:07 organizationally housed within solid waste.

11:45:10 These are functions that their staff do for other

11:45:12 departments, primarily associated with tanks,

11:45:15 inspecting tanks, making sure tanks are in working

11:45:19 order, for example, and don't damage the environment.

11:45:21 So although it's under solid waste, it's not

11:45:24 necessarily a function associated with the disposal of

11:45:27 waste.

11:45:28 >>MARY MULHERN: Water and wastewater.

11:45:30 >> Yes, ma'am.

11:45:30 >>MARY MULHERN: But I just want to make -- clarify

11:45:34 this.

11:45:35 Your actual savings is a savings within this fund, but

11:45:38 it's just moving the money around, right?

11:45:41 >> Correct.

11:45:42 >>MARY MULHERN: To the general fund.

11:45:43 I hope we'll get -- you gave us these great detailed

11:45:48 things for parking, and now we don't have as much

11:45:52 information here.

11:45:53 So I would like to see more information on the solid

11:45:57 waste.

11:45:57 My first question is, is there debt?

11:45:59 Is that part of our cost?

11:46:02 >> Yes, ma'am.

11:46:02 The debt, we do have debt outstanding.

11:46:07 Last year, we underwent a refunding where we did

11:46:11 generate some savings.

11:46:12 We're contemplating an additional refunding this year

11:46:15 that may generate additional savings.

11:46:17 The debt is being managed as best as possible from that

11:46:21 perspective.

11:46:22 But the revenues are just not sufficient to cover both.

11:46:27 >>MARY MULHERN: What part of the projected expenses is

11:46:32 debt?

11:46:33 What is our debt?

11:46:39 >> It's 14 million annually.

11:46:44 >>MARY MULHERN: It's actually more than our parking

11:46:46 debt at this point.

11:46:48 >> And I'd like to see a breakdown of what our capital

11:46:58 expenses have been and continue to be.

11:46:59 Probably a breakdown of what the debt is for.

11:47:05 I know we bought all these new trucks and all these new

11:47:10 containers, all of that automation.

11:47:13 I'd like to see what the cost of that has been.

11:47:18 When we look at the budget.

11:47:21 Basically, we need a line item of what solid waste

11:47:24 costs have been over the last few years.

11:47:26 And especially the new trucks and the new containers.

11:47:33 And what our fuel costs are.

11:47:38 And those projections, I know fuel is going up and up.

11:47:43 That could be a big part of it.

11:47:45 And I'd like -- I would hope that you would talk about

11:47:51 and think about as you're being creative with the

11:47:56 parking problem revenue shortfall, also, do this with

11:48:02 solid waste, because, you know, we talked about this

11:48:04 when we -- I believe we raised the rates a few years

11:48:08 ago, and there was a lot of -- we had to have a public

11:48:12 hearing.

11:48:12 There was discussion about it, buts one of the things

11:48:16 we talked about was the fact that we have two pickups a

11:48:19 week.

11:48:20 I think looking at that combined with the fact we have

11:48:27 these gargantuan size containers now, do we need that?

11:48:35 And I was told back then to my just astonishment, I

11:48:39 still don't understand the logic, but that picking up

11:48:43 once a week -- twice a week didn't cost any more than

11:48:46 picking up twice a week (sic).

11:48:50 That's something to look in.

11:48:47 >> Yes, we will.

11:48:53 >> It could be a seasonal variation to that as well.

11:48:55 There may be a reason to pick up twice in the summer

11:48:57 but not necessarily in the winter.

11:49:12 >> May I just point out that councilwoman, you had

11:49:16 asked about debt.

11:49:17 I just want to point out that no debt for the system,

11:49:21 no bonds have been issued since 1999 when the bonds

11:49:24 were issued to fund the McKay Bay facility.

11:49:27 That's what the debt is, correct.

11:49:41 >> Two things I feel strongly about and I know some of

11:49:43 the other Council members share my concerns.

11:49:45 The recycling program, I know recently Hillsborough

11:49:47 County school system had instituted their own program

11:49:51 and we do no the have requirements, we do not have a

11:49:55 responsibility any longer for taking care of the

11:49:59 recycling at any of the school buildings, and

11:50:01 Hillsborough County is doing that themselves or

11:50:03 Hillsborough County School Board is doing that

11:50:06 themselves.

11:50:07 I'm glad you're looking at some other opportunities and

11:50:12 other municipalities and how they handle it.

11:50:15 Recycling often is something that the benefit is not

11:50:20 always equatable to the amount of revenue that is

11:50:27 generated or the amount of loss that the program

11:50:30 operates at.

11:50:31 There's a much greater benefit to recycling, and I can

11:50:34 tell you that those gargantuan garbage pails, I recycle

11:50:39 and compost so many things in my house hold that I

11:50:45 don't even reach a third or a quarter of that

11:50:48 gargantuan garbage receptacle in an entire month.

11:50:54 So there are creative things we can do with recycling.

11:50:57 There are other things, I think that you and I have

11:51:00 talked about that we can look at in making that

11:51:02 program.

11:51:02 I also know that the recycling program doesn't have

11:51:06 anyone designated to oversee it.

11:51:10 We lost our recycling coordinator, manager, person, a

11:51:14 couple of cycles ago, and without having someone to

11:51:19 really pay attention to the program, there's not going

11:51:23 to be a lot of expectation that it's going to perform.

11:51:25 The other thing that is very close to my heart is

11:51:29 energy savings and facilities management and looking at

11:51:33 last year's budget supplement, spending a huge amount

11:51:39 of money in just utility costs.

11:51:41 We're spending money in rent.

11:51:43 We're spending money electricity and related to

11:51:49 energy-efficient measures, I would like to see, and

11:51:53 we've talked about this, facilities management doing

11:51:57 some kind of analysis of how efficient our facilities

11:52:03 are being and how we can make strides in improving the

11:52:08 energy efficiency.

11:52:11 For me, I've long talked about this in my public,

11:52:14 professional and private life is sustainability and

11:52:19 energy efficiency is not necessarily about being green,

11:52:23 tree hugging and saving the planet.

11:52:25 It's about the bottom line.

11:52:26 You save money when you save energy, with gas and fuel

11:52:30 prices rising, that's a benefit that we need to seize

11:52:36 upon.

11:52:37 And I don't know that we've done enough in the area of

11:52:40 our own buildings.

11:52:41 We're really good about telling other people what they

11:52:44 need to do to save energy and build their facilities

11:52:46 and retrofit, really good about doing that, I don't

11:52:49 know that we've been really good about doing it

11:52:51 ourselves.

11:52:52 Really would like to see some kind of analysis take

11:52:55 place.

11:52:55 And I've mentioned a gentleman over in Hillsborough

11:52:59 County that can help us out with that.

11:53:01 Mr. Klindworth, who is the energy manager over at

11:53:04 Hillsborough County, does a fantastic job.

11:53:06 I believe he's graciously agreed to consult with our

11:53:10 facilities management and try and help out wherever he

11:53:13 can.

11:53:13 So I think that's an avenue that we really need to look

11:53:17 at seriously.

11:53:18 How much money are we spending in keeping the lights

11:53:23 on.

11:53:23 >> Absolutely.

11:53:25 >>MARY MULHERN: Those are great insights, councilwoman

11:53:28 Montelione made me realize something I wanted to say

11:53:31 about the recycling.

11:53:32 And you make a very good point that we don't have a

11:53:35 manager for that, but the only way to really make any

11:53:39 money off of recycling is to sell your materials.

11:53:42 If you don't have someone managing it, you don't have

11:53:45 someone watching that market.

11:53:47 I know that market changes all the time.

11:53:49 Is there a market for cardboard?

11:53:52 Is there a market for glass?

11:53:54 Is there a market for plastic?

11:53:55 And we do need to have someone in there doing that.

11:53:58 Thanks for bringing that up.

11:54:00 >> Thanks for mentioning cardboard.

11:54:03 Cardboard from what I understand now is the single

11:54:07 hottest commodity in the recyclable market.

11:54:10 A program to encourage people to recycle cardboard is

11:54:13 definitely a way that we could generate some additional

11:54:16 revenue.

11:54:17 Councilwoman Capin.

11:54:20 >>YVONNE CAPIN: When you're talking about recycling, a

11:54:22 great example, I serve on the Board of Directors of the

11:54:24 spring of Tampa Bay, and their little center on

11:54:29 Henderson boulevard literally takes everything, every

11:54:34 donation, every possible item you could think of and

11:54:38 everything is recycled.

11:54:41 They take the wires out of the TVs, the copper.

11:54:45 They sell it.

11:54:46 They raise in that little center close to $500,000 a

11:54:51 year just from the recycling.

11:54:54 So there is markets all over to buy the cloth, to buy

11:55:01 the cardboard, to buy all of it.

11:55:04 It's just, again, it could be a source of revenue.

11:55:11 >> Understood.

11:55:11 >> One last thing, I know there are certain services

11:55:13 that we offer to the public for refuse dumping that we

11:55:18 do not charge for.

11:55:22 And we may need to look at and review all of those

11:55:25 things and make sure that we still are comfortable

11:55:29 providing those services at no cost.

11:55:32 >> Yes.

11:55:32 That's been part of the directive given to our pending

11:55:41 feasibility consultant to make sure we go through and

11:55:44 address those issues.

11:55:45 And with that, that concludes the presentation part.

11:55:53 Any additional questions, I'd be happy to entertain.

11:56:02 >> When I was talking about the assessment for energy

11:56:04 efficiency, we also talked about an assessment of our

11:56:07 facilities and our space, and we have a workshop that

11:56:11 will be coming up, but it will be late in the year,

11:56:14 past our budget cycle, I believe.

11:56:17 But having an analysis of the vacant square footage

11:56:21 that the city has to perhaps make better use of the

11:56:27 facilities we have, we have a lot of folks that --

11:56:34 vacant positions that we have already and we may be

11:56:36 looking at more vacant positions coming up, and our use

11:56:40 of space may go a long way in helping us save money.

11:56:48 >> Yes, ma'am, the workshop you're referring to, I

11:56:51 believe it's on the calendar for late September.

11:56:58 >>MARY MULHERN: I would like to make this a motion,

11:57:00 since I remember talking about this many, many times in

11:57:02 the past and I never got it, I'll make this in the form

11:57:05 of a motion.

11:57:06 I'd like to ask the budget department to provide

11:57:11 itemized chart or list of all the contracts for

11:57:19 employment costs that we have, itemize those by

11:57:26 department and I guess -- I don't know, you probably --

11:57:33 not necessarily the number of employees, but either the

11:57:35 number of employees or the number of hours provided,

11:57:40 man-hours provided, so we can make that part of our

11:57:43 analysis of the budget as far as personnel costs, that

11:57:48 we see that broken out.

11:57:49 >> We will provide that.

11:57:52 >>MARY MULHERN: That's a motion.

11:57:59 >>MARTIN SHELBY: I'm sorry to interrupt.

11:57:59 Council, just pursuant to your rules, if you do want to

11:58:01 make a motion, please, just ask if there's any

11:58:05 discussion from the public prior to your making a

11:58:07 motion.

11:58:08 That's per Council's rules.

11:58:10 No official action on the matter which is the subject

11:58:12 of the workshop shall be taken during or after the

11:58:14 workshop unless the public is afforded the opportunity

11:58:16 to comment prior to action.

11:58:18 That's just your rules.

11:58:20 >>HARRY COHEN: Does the public have any wish to comment

11:58:23 on the motion on the floor?

11:58:24 Any discussion?

11:58:32 >>MIKE SUAREZ: I have a question for Councilwoman

11:58:35 Mulhern.

11:58:35 What specifically are you asking them to do?

11:58:38 You said personnel contracts.

11:58:39 I'm a little fuzzy as to what you were asking.

11:58:45 >>MARY MULHERN: What I'm asking for is that we see for

11:58:51 the prior fiscal year, you know, this may have been in

11:58:57 the revenue and finance report, I don't think it was.

11:59:00 For instance, when you look at the report today and

11:59:10 there was a breakdown for the parking department -- oh,

11:59:16 no, the overall and this is, you know, how we could do

11:59:23 it.

11:59:23 But within the department, how many contracts they have

11:59:29 for employment, which, you know, there are all kinds of

11:59:35 them for employment.

11:59:40 >> Employment contracts outside of the payroll.

11:59:43 >>MARY MULHERN: Privatize jobs.

11:59:44 Right.

11:59:46 Outside the payroll.

11:59:47 What I don't know and I'm not sure that it's all

11:59:53 captured in here.

11:59:56 It would be great if it is captured in your personnel

11:59:58 total costs by department, but if it's not, I'd like to

12:00:02 see it.

12:00:02 >> We will provide it.

12:00:03 If I can give an example, I was just talking to --

12:00:09 >>MIKE SUAREZ: I understand now.

12:00:10 I wanted to make sure that's what you were asking.

12:00:12 If you don't mind, Mr. Chair, amend that to make sure

12:00:16 it's outside contracts in addition to employees that

12:00:19 are already employed by the city directly.

12:00:23 >>MARY MULHERN: Right, I don't need -- we're going to

12:00:25 have those costs.

12:00:27 >>MIKE SUAREZ: No, no, I meant the outside contracts.

12:00:29 We're already going to get some idea, because we were

12:00:32 looking at vacant positions and other positions, and to

12:00:35 Mr. Chairman's original intent, which was, which one of

12:00:40 those are actually going to be directly related to

12:00:44 service delivery and some other things, so there are

12:00:46 some specifics we're already getting on personnel, if

12:00:50 I'm correct.

12:00:51 And this is another part of it, but primarily -- it's

12:00:53 only on the contract.

12:00:57 >> Just to clarify the motion, outside contracts.

12:00:59 >>MARY MULHERN: Outside contracts for employment by

12:01:02 department.

12:01:04 >>HARRY COHEN: Okay.

12:01:05 We have a motion on the floor by councilwoman Mulhern.

12:01:07 Seconded by councilwoman Montelione.

12:01:10 Is there any further discussion?

12:01:12 If not, all in favor, say aye.

12:01:15 Opposed, nay.

12:01:16 The ayes have it.

12:01:18 Well, thank you very, very much for your time.

12:01:24 We appreciate it.

12:01:24 I know we're going to have lots more to talk about in

12:01:27 the coming months.

12:01:28 I know everyone is looking forward to it, and I hope

12:01:32 that we'll be able to move the city along toward a

12:01:37 brighter economic feature.

12:01:38 With that, I'll hand the gavel back to the chair.

12:01:42 >> Thank you for your time.

12:01:44 >>MARY MULHERN: Thank you.

12:01:45 It was very good.

12:01:46 Is there any new business?

12:01:50 >> One item.

12:01:53 >>HARRY COHEN: Motion to schedule the Mayor to address

12:01:56 us on July 28th at 9 a.m. to present us with his

12:02:01 proposed fiscal year 2012 budget.

12:02:05 >> Second.

12:02:06 >>MARY MULHERN: All in favor, aye.

12:02:07 Any other business?

12:02:10 >> Motion to receive and file.

12:02:12 >> Second.

12:02:15 >>MARY MULHERN: All in favor?

12:02:16 We're adjourned.