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10:00:17 THURSDAY, JULY 26, 2012.

10:00:17 10:05 A.M.


10:00:17 >>HARRY COHEN: Good morning again everyone.

10:05:01 We are back in session for a special called budget workshop.

10:05:05 We will start with roll call.

10:05:09 >>YVONNE CAPIN: Present.

10:05:10 >>FRANK REDDICK: Here.

10:05:11 >>MARY MULHERN: Here.

10:05:13 >>HARRY COHEN: Here.

10:05:19 And we are very privileged to have with us this morning our

10:05:22 very competent chief financial officer of the city, Sonya

10:05:27 little.

10:05:27 >>SONYA LITTLE: Thank you, Councilman.

10:05:31 Good morning, council members.

10:05:32 This is the second workshop for our fiscal year 2013 budget.

10:05:41 If you will recall, in June, our first workshop, in our

10:05:46 first workshop, we provided you with quite a bit in the way

10:05:48 of revenue figures.

10:05:51 To give you an idea of where we are projecting to end fiscal

10:05:55 year 2013 -- 2012, excuse me -- and we also gave you

10:06:01 projections for or forecasts for 2013.

10:06:06 I would like to point out that at the first budget workshop,

10:06:09 the revenue figures and expenditure figures that we were

10:06:12 working off of were through March 30, 2012, as far as actual

10:06:18 revenues.

10:06:19 We had some time to confirm additional revenue and

10:06:24 expenditure figures that have come in since that time.

10:06:27 So the information that I am providing today for fiscal year

10:06:30 2012 has some slight adjustments that I will point out to

10:06:33 you from our last workshop because we are working with more

10:06:37 fresh and actual data.

10:06:40 If I could ask the presentation be brought up, please.

10:06:49 In this presentation the overall presentation will include

10:06:52 the financial summary of our general fund, and utilities

10:06:58 tax.

10:06:58 We all know this is our major revenue source for the city,

10:07:03 including property taxes is our largest revenue, and course

10:07:07 utility tax.

10:07:08 We will provide you with our capital improvement plan

10:07:12 summary, very broad categories.

10:07:16 It's our intention to come back to you and give you great,

10:07:18 great detail from the projects that are included in our next

10:07:23 meeting when the mayor does his presentation to City

10:07:25 Council.

10:07:25 We'll also provide you with additional information on the

10:07:28 enterprise funds.

10:07:32 Starting out, this is the same format, to show you a budget

10:07:38 shortfall.

10:07:40 As we projected in fiscal year 2012, if you will recall,

10:07:44 this time last year, we reported to you that we felt that

10:07:47 our budget shortfall would be $15.1 million.

10:07:52 At the last meeting, the workshop, the last workshop, we had

10:07:55 anticipated, based on the March 30th actual reported

10:08:00 revenues, that we would be closer to 17 million.

10:08:03 Instead, I'm happy to report that based on those newly

10:08:08 reported revenues now changing our projections -- and we are

10:08:12 going to land closer to where we thought we would land.

10:08:15 Right now we are projecting that we will be $500,000 off as

10:08:20 opposed to 2 million off as we reported at the last

10:08:22 workshop.

10:08:24 And it's largely due to expenditures coming in better than

10:08:28 projected.

10:08:29 So that's a good story to tell.

10:08:33 The $26.7 million shortfall that we are forecast for 2013 we

10:08:39 are continuing to work on.

10:08:40 However, I would like to at this point share with you some

10:08:47 additional backup information, to give you an idea what our

10:08:50 direction is.

10:08:51 But first, showing you where we are projecting, still at 30%

10:08:56 of expenditures for our general fund balance.

10:08:58 Again, our policy is 20%.

10:09:06 Starting out with some of the possible solutions that we are

10:09:08 looking at, chipping away at that almost $27 million

10:09:12 shortfall, our certified property tax values came in

10:09:18 slightly bet are than we started out with our original

10:09:21 forecast.

10:09:21 Originally we were forecasting 2% decline over the prior

10:09:25 year, and we were notified that it actually came in at a

10:09:30 1.4% decline over the prior year.

10:09:33 So we are still realizing some decrease in our values, but

10:09:39 that spread is narrowing from year to year N.2011 we were at

10:09:46 a 13% decline over the prior year.

10:09:48 So we were able to pick up, Chip away at the $27 million

10:09:53 shortfall, roughly 500,000.

10:09:59 Our departmental reductions, each of our departments

10:10:03 submitted a 5% reduction scenario.

10:10:06 I mentioned last month at the last workshop that we are

10:10:11 reviewing each of those independently, line item by line

10:10:15 item, and some of the things that we are doing is we are

10:10:18 analyzing the impact on services that we deliver to our

10:10:22 citizens as a result of these proposed reductions and

10:10:26 determining the cost benefits related to each line item.

10:10:30 So this is a very, very lengthy process and we are nearing

10:10:33 the end of that process.

10:10:34 >>HARRY COHEN: Mr. Reddick?

10:10:47 >>FRANK REDDICK: Just point of information purposes.

10:10:49 Are we going to wait till the end of the presentation to

10:10:52 raise questions?

10:10:53 >>HARRY COHEN: If you would like to be recognized, if you

10:10:56 just signal, I'll call on you when there are breaks, you

10:10:59 know, as she's moving along, if that's all right.

10:11:02 >>SONYA LITTLE: That's fine with me.

10:11:04 >>FRANK REDDICK: I just want to go back to the previous

10:11:07 slide when you say vacant position reductions.

10:11:13 Currently how many vacant positions do we have in the city?

10:11:24 >> For just our general fund alone there's a total of 150,

10:11:30 but we are evaluating each one of them, Councilman, because

10:11:33 we don't want to impair the services that we offer.

10:11:36 If we can afford to keep the position open until it's

10:11:39 filled, that's our goal.

10:11:40 >>FRANK REDDICK: Thank you.

10:11:43 >> How many did you say?

10:11:45 >>SONYA LITTLE: 150.

10:11:50 >>FRANK REDDICK: Thank you.

10:11:55 Continuing on as far as our possible solutions -- and these

10:11:58 are just good news adjustments that we are able to report on

10:12:03 Tampa Sports Authority funding which you are aware, the city

10:12:06 is responsible for funding one third of their capital and

10:12:09 operating expenditures.

10:12:11 The county picking up the remaining two-thirds of those

10:12:16 costs.

10:12:18 We originally budgeted for a contingency of $500,000 in

10:12:24 preparation for the NFL lockout, impact on the revenues that

10:12:30 we would have to then fill the gap on behalf of TSA.

10:12:34 Fortunately, we did not have to actually expend those funds.

10:12:40 And so those are some revenues that we were able to pick up.

10:12:44 Now, the better part of this story regarding TSA is that we

10:12:48 were able to reprogram our golf course expenses, number one,

10:12:52 they came in lower than expected, which proves that the TSA

10:12:57 staff, they are working very hard to manage their operating

10:13:00 expenditures.

10:13:01 So instead of using general fund revenues to fund those

10:13:05 expenditures, we have budgeted that they will be funded by

10:13:10 our CIP funds, a benefit for this type of expenditure.

10:13:14 >>HARRY COHEN: Mr. Reddick.

10:13:17 >>FRANK REDDICK: Thank you.

10:13:18 And when you are talking about Sports Authority, I just want

10:13:21 to throw this question, being on that board.

10:13:26 As you know, the Board of County Commissioners, at this

10:13:30 time, having a discussion about the $12 million allocated

10:13:37 for the Bucs' practice facility.

10:13:39 How will that impact the city if the county goes through

10:13:44 with not wanting to use those $12 million?

10:13:47 Will the city benefit from that?

10:13:50 >>SONYA LITTLE: Yes, sir, the city will benefit.

10:13:52 There's a form Louisiana it's not a straight one

10:13:54 third/two-thirds split, but there is a formula where if that

10:14:04 money is freed up the city of benefit.

10:14:06 >> So substantial or small percentage?

10:14:10 >>SONYA LITTLE: I would say it would make a difference for

10:14:12 us.

10:14:13 It would be a benefit to us.

10:14:17 Yes, sir.

10:14:17 >>HARRY COHEN: A benefit in the millions of dollars?

10:14:24 >>SONYA LITTLE: Yes, sir.

10:14:25 But not a straight one third.

10:14:28 We also are contemplating an increase in convention center

10:14:33 revenues that will Chip away at that $27 million shortfall.

10:14:39 When we originally started the process, since that time,

10:14:41 they have booked some additional venues.

10:14:46 And so that's good news.

10:14:48 And they have a total of 53 major events that are scheduled

10:14:53 in 2013, which is eight more than in '12.

10:14:57 So they are working really hard to book events and that

10:15:02 generates additional revenues obviously for the city.

10:15:08 The parking system which you have been hearing a great deal

10:15:10 about over the course of the past year, as far as the

10:15:13 negative impact that it's having on our general fund, having

10:15:18 to support it in order to meet its operating expenditures

10:15:21 and debt obligations, we were contemplating a $6 million hit

10:15:26 in '13 for a general fund subsidy, or a subsidy to the

10:15:33 parking sometime system.

10:15:37 Since that time, some of the other departments, they have

10:15:41 improved on their operating expenditure line items coming in

10:15:44 lower than expected as we go through the year.

10:15:48 And they have done quite a few initiatives that are

10:15:50 generating additional revenues, some of which you have

10:15:53 probably seen, with the automation for the system, as well

10:15:58 as now being able to pay for your parking with your cell

10:16:05 phone AP.

10:16:07 That being said is, instead of the 6 million that we were

10:16:11 originally contemplating for '12, we are closer to $5

10:16:14 million subsidies, and I will get into the parking system

10:16:18 agent more as we go through.

10:16:21 The presentation.

10:16:31 We start out with more on the parking system's side.

10:16:36 One of the things that we have been trying to address is the

10:16:39 significant amount of debt that the parking system currently

10:16:42 had.

10:16:43 And this debt is not directly tied, fortunately, to the

10:16:47 parking system revenues but instead is funded by our use

10:16:53 tax, and we have talked in the past about how the debt

10:16:57 service for parking has jumped up this fiscal year to the $6

10:17:01 million level.

10:17:02 And though the parking system is an enterprise fund it

10:17:06 should be self-supporting.

10:17:08 It is not currently supported.

10:17:09 But we are working on a number of things.

10:17:12 One of the major things to report right now, and there's

10:17:15 more to come throughout the year as we try to -- similar to

10:17:20 solid waste, get the system self-supporting and operating on

10:17:24 its own.

10:17:24 There are several preliminary initiatives that are being

10:17:27 ironed out.

10:17:28 But what we can report right now is that we do have the

10:17:31 ability to actually restructure the parking debt, and what

10:17:37 that does is gives us a cash flow relief on the general

10:17:40 fund.

10:17:41 >>HARRY COHEN: To make an analogy, what you are really

10:17:46 proposing doing is something like a person would do if they

10:17:48 refinanced the mortgage on their home, correct?

10:17:51 >>SONYA LITTLE: Absolutely.

10:17:52 >>HARRY COHEN: It would extend the term of the loan out

10:17:54 five years but lower the payments, particularly in the first

10:17:58 few years of the new deal.

10:18:00 >>SONYA LITTLE: Yes, sir.

10:18:02 And I can show you a graph.

10:18:05 I just want to share with you the analysis where it makes

10:18:08 sense in the current market environment with the currently

10:18:11 low market interest rates.

10:18:13 In addition to that, we have these assets with a very long

10:18:18 useful life.

10:18:19 And when you look at it in the whole scheme of things,

10:18:23 matching the useful life to the debt it makes sense to

10:18:26 smooth that debt out to give relief to our general fund.

10:18:29 It's currently at a level right now if we don't see

10:18:32 significant improvement, see improvement in the parking

10:18:36 system but if we don't dig ourselves out by increasing our

10:18:40 revenues, then our general fund can't continue to sustain.

10:18:44 >>MIKE SUAREZ: Just a quick question.

10:18:49 I think the analogy that Councilman Cohen brought up is

10:18:52 interesting.

10:18:53 And I think it's pretty close to anytime we are talking

10:18:57 about high finance for the city, about as close as we can to

10:19:00 try to understand as lay people.

10:19:02 But what I want to find out is, what is the net effect of

10:19:06 actually doing that?

10:19:07 We know that there are real numbers when it comes to making

10:19:10 the debt longer to repay that.

10:19:13 We are taking on additional debt.

10:19:17 But in terms of our contractual obligations for these

10:19:21 parking garages, are we still just kicking the can down the

10:19:24 road as opposed to -- to me it's good that we finance, if

10:19:27 you are planning on staying in your home.

10:19:29 If you are refinancing and you are in a bad neighborhood you

10:19:32 don't want to stay there anymore.

10:19:33 Maybe it doesn't make much sense to refinance.

10:19:36 That may be a bad analogy.

10:19:37 I'm not sure.

10:19:38 But I want to make sure that what we are doing is going to

10:19:41 dovetail with the contractual obligations that will

10:19:45 eventually leave the parking garages -- and I don't know

10:19:49 what date those contractual obligations are going to be

10:19:55 gone, for us to make this into a true enterprise fund.

10:19:59 Do you have any knowledge of that?

10:20:00 >>SONYA LITTLE: Yes, sir.

10:20:01 As part of this presentation I will go --

10:20:04 >>MIKE SUAREZ: I will apologize.

10:20:06 >>SONYA LITTLE: No, you are perfect, because you are in

10:20:08 track with overall analysis to justify and determine whether

10:20:11 or not this makes sense.

10:20:12 >>MIKE SUAREZ: I will leave for the next explanation but

10:20:15 just keep my question in mind when it columns up.

10:20:17 >>SONYA LITTLE: Absolutely.

10:20:19 >>HARRY COHEN: Councilman Reddick.

10:20:22 >>FRANK REDDICK: I want to follow up Councilman Suarez.

10:20:26 And I don't know if this is the right time or if it's going

10:20:29 to be when you go further down.

10:20:32 Maybe when you answer his question.

10:20:37 You know, there's two rumors that I keep getting phone calls

10:20:41 about, and I don't know if this is the appropriate time to

10:20:44 ask.

10:20:44 One is the parking garage in Ybor City.

10:20:50 I'm hearing rumors about the possibility of closing that

10:20:53 garage.

10:20:58 Two, the office where you go pay for your tickets.

10:21:01 And that that will be phasing out, people being moved from

10:21:10 that place.

10:21:11 So I don't know if this is the appropriate time for these

10:21:16 questions.

10:21:16 >>SONYA LITTLE: Okay.

10:21:19 >>FRANK REDDICK: I'm getting calls from people saying they

10:21:22 are phasing that out.

10:21:23 Some people have already been told they are going to be

10:21:27 transferred to Fort Brooke.

10:21:29 And not going to be in that facility.

10:21:35 So I don't know if you can answer that question or not but

10:21:41 since we are talking about that, and I'm wondering if it's

10:21:50 going to borrow the analogy that Mr. Cohen states, if you

10:21:54 are going to close that facility.

10:21:55 >>SONYA LITTLE: Yes, sir.

10:21:57 Councilman, we are not aware, we have not been given any

10:22:00 direction that that facility would be closed.

10:22:02 So I'm not -- I checked with my colleagues here.

10:22:06 None of us have been informed that that facility would be

10:22:10 closing.

10:22:10 >>FRANK REDDICK: Not even the office where people will pay

10:22:14 fines?

10:22:15 Little I have.

10:22:18 >>SONYA LITTLE: I have not been informed of that as well

10:22:20 that that office is being closed.

10:22:22 But along those lines, also, making it very convenient for

10:22:29 people to pay for all services that the city offers.

10:22:31 So I'll check.

10:22:33 I have not been informed.

10:22:36 >>FRANK REDDICK: But people are calling and saying --

10:22:39 >>SONYA LITTLE: I'm not certain where they are getting that

10:22:41 from but I would be happy to check.

10:22:43 None of us have been informed that that is the case.

10:22:45 In addition to that we are working very hard, that we are

10:22:48 trying to offer additional tern tiffs for physical payments.

10:22:55 Our parking passes can be purchased online but we are also

10:23:01 trying to expand that, when you approved last council

10:23:03 meeting, the Amscot contract, it's starting out with

10:23:09 utilities, as our pilot, but it's our intention once we get

10:23:13 utilities under control that we'll expand it to our other

10:23:16 services, payment for other services.

10:23:18 >>HARRY COHEN: Councilwoman Capin.

10:23:22 >>YVONNE CAPIN: Thank you.

10:23:23 (off microphone) is it both or one garage?

10:23:32 >>FRANK REDDICK: One.

10:23:33 >>SONYA LITTLE: Councilman, I will get right into your

10:23:44 inquiry, because I did want to share with you our analysis,

10:23:48 starting out with some of the more holistic viewpoints where

10:23:54 we are on interest rates.

10:23:56 This is historical dating back to 2003.

10:24:01 An MMC is municipal market data.

10:24:05 And it is a benchmark or in-depth for the municipal bond

10:24:10 market, in particular the tax exempt market, and this goes

10:24:16 out through July 21st of 2012, just to show you if in

10:24:21 fact a municipal is looking to issue or restructure that,

10:24:25 it's an opportune time because interest rates are continuing

10:24:29 at historical lows.

10:24:34 Now to the meat of where --

10:24:38 >>HARRY COHEN: Councilwoman Capin.

10:24:40 >>YVONNE CAPIN: What you are proposing, we would be looking

10:24:42 at the ten-year line?

10:24:44 >> For a portion, for a portion.

10:24:46 The red line is 20 so that would be more applicable, and

10:24:51 where we are right now is just below 2% for the ten-year and

10:24:58 about 2.5%.

10:25:01 This is again an index.

10:25:02 We would issue that at some spread to this based on our

10:25:09 credit, just like a benchmark, and then based on our credit,

10:25:12 and the market's perception of our credit, we will issue

10:25:19 that at a spread to the benchmark.

10:25:23 And I can share with you that as we go through where we are

10:25:27 in today's market.

10:25:29 >>YVONNE CAPIN: Thank you.

10:25:36 The graph circled in red is our current parking debt.

10:25:39 Again this is utility tax that was issued to fund our

10:25:42 parking garages.

10:25:44 And you will see through 2019, our obligation is for

10:25:49 $6.2 million that we have been talking about.

10:25:51 And as we look at restructuring -- and I am trying to lay

10:25:55 the framework for the whole analysis here -- but as we look

10:25:58 at restructuring, and extending the debt, we have an

10:26:01 opportunity to change our tax requirement, debt service

10:26:07 requirement, to roughly 3 million.

10:26:10 Now, this is based on current market conditions, and that's

10:26:14 just the parking portion of our utilities debt.

10:26:18 Over and beyond the restructuring, we have to finance our

10:26:22 ERP system.

10:26:23 We are currently budgeted, but not enough to finance the

10:26:28 entire project.

10:26:29 Of course, there was no way to know two years ago what it

10:26:33 was going to cost us until we went through the negotiations

10:26:35 process.

10:26:36 Where we are right now, it makes practical sense with the

10:26:42 interest rates as they are, as low as they are, to finance.

10:26:47 The same analogy that we all use as far as the house is

10:26:51 concerned, not many of us can walk in and pay cash for a

10:26:55 single-family home.

10:26:55 And a low interest rate environment it makes sense, in most

10:26:59 cases, to capitalize on the low interest rate environment.

10:27:04 So this is one component that actually moves to the next set

10:27:09 of slides.

10:27:10 This gives you the overall impact on our utilities debt.

10:27:18 The graph on the left is our current scenario where in total

10:27:23 our utilities -- and this is more than just parking, but the

10:27:27 impact is on our general fund utilities, so we have to show

10:27:30 you this whole picture.

10:27:33 In total, through 2019, we are faced with a $24 million,

10:27:39 roughly, debt service payment.

10:27:41 And then it drops off significantly on the tail end.

10:27:46 With the restructuring of the parking debt, and the issuance

10:27:50 of new debt to finance our ERP system, with the

10:27:55 restructuring, we are able to keep it very close to where we

10:28:03 are right now as far as our current debt service payments

10:28:05 are concerned through 2019, and it would then take us up to

10:28:12 roughly $6 million on the tail end as opposed to the current

10:28:15 2.8.

10:28:16 But again, on the parking side, the restructuring, and to

10:28:21 answer specifically your questions, Councilman Suarez, what

10:28:26 it does for restructuring is we are able to extend the debt,

10:28:32 and the difference between where we are today and where we

10:28:34 would be by extension is roughly $10 million.

10:28:41 However, when we price the balance, we are looking to price

10:28:44 the bonds with a ten year call provision which puts us where

10:28:48 we are right now, 2021 roughly, where the bonds mature, and

10:28:54 that would at least give us the option for number one,

10:28:58 either refinance at lower rates to save money, or to pay off

10:29:01 in cash.

10:29:02 And it would be at that point -- that's one of the things

10:29:05 that makes it a promising alternative, is that we are not

10:29:09 locked in through 2013 with no option.

10:29:14 Because of the ten-year call that we are looking to put in

10:29:16 place.

10:29:17 >>HARRY COHEN: Councilman Suarez.

10:29:19 >>MIKE SUAREZ: Thank you for that.

10:29:20 Here is the second part of, you know, what happens when we

10:29:23 deal with that.

10:29:24 And in my mind at least.

10:29:27 Because we are going to be refinancing for future payoff, we

10:29:34 are going to be paying this off later on, is this, A, going

10:29:38 to affect our ability to use a utility tax fund for future

10:29:43 needs, and what is actually under utilities?

10:29:49 Or, B, is it going to cause a problem that we, you know,

10:29:56 have to raise taxes in order in order to meet these future

10:30:00 needs in terms of our debt?

10:30:02 I mean, those are the two issues that really we have to deal

10:30:07 with, because obviously when we are talking about

10:30:09 restructuring, we have to cover the amount of taxes that we

10:30:14 are going to need to actually pay for those bonds.

10:30:17 And I'm just wondering, is there an additional amount of

10:30:20 taxes that we are going to have to raise in order to pay for

10:30:23 the additional amount of debt that we are taking on?

10:30:27 >>SONYA LITTLE: As a matter of fact, this restructuring

10:30:29 increases our capacity moving forward and decreases the

10:30:34 likelihood that we would have to increase taxes to cover our

10:30:37 debt.

10:30:38 Right now, and this restructuring actually gives us.

10:30:57 >> So essentially what you are saying is because we are

10:30:59 restructures we are lowering in terms of what we pay for

10:31:02 debt service?

10:31:03 That debt service amount can go back into general fund or

10:31:06 some other place that we want to use it, we are saving that,

10:31:11 or spending it on things that we already need, and we are

10:31:16 not going to have to worry about additional taxes because we

10:31:22 saved on the front end?

10:31:23 >> Absolutely.

10:31:24 As long as we continue without any major economic decline.

10:31:32 That's correct.

10:31:32 >> You follow along what my next question was, which is we

10:31:35 are pretty stagnant right now.

10:31:44 I think our reduction in the amount of property taxes is

10:31:46 only 2%?

10:31:47 >> That's correct.

10:31:48 1.4.

10:31:49 >> 1.4 over last year's other reductions?

10:31:52 >> Correct.

10:31:52 >> I know we can't, you know, have a crystal ball and find

10:31:56 out what the economy is going to do in the next year or even

10:31:59 in the next four years.

10:32:07 And I'm sure you look at scenarios that if something happens

10:32:11 we have a precipitous drop in our property tax revenue, how

10:32:19 does that affect -- I know we'll have more capacities, but

10:32:22 is there a point -- the point where we may have to raise

10:32:25 some kind of taxes whether it's utilities or other things.

10:32:31 And in the second part of all of this which goes back to my

10:32:34 original question, which is where are we at on the on our

10:32:38 contractual parts of the parking where we can actually start

10:32:42 making this into a real enterprise fund?

10:32:47 If you could answer the first question and get back to the

10:32:48 second question.

10:32:49 >>SONYA LITTLE: Okay.

10:32:52 As it relates to this measure, it is the most probable

10:32:59 action to protect us moving forward, if we continue to

10:33:03 experience stagnant growth especially in our utility tax.

10:33:07 We still have some buffer there, if there is a decline.

10:33:11 So from our utility tax fund perspective in supporting our

10:33:18 debt, we are at very comfortable levels, and we are

10:33:22 increasing our comfort level by this restructuring.

10:33:28 As it relates to the agreements, the majority of those

10:33:32 agreements are very, very long-term.

10:33:36 IE, 99 years.

10:33:38 >> Okay.

10:33:39 So we are never really going to make these parking garages

10:33:42 into a true enterprise fund, because we are not going to be

10:33:45 able to raise the amounts of the parking rates in order to

10:33:49 make it into a true enterprise fund.

10:33:51 Is that correct?

10:33:52 >> As of today, the amount that we would have to raise our

10:33:55 rates to at least break even would not make any sense.

10:34:02 It would drive people away when we are trying to bring them

10:34:05 in.

10:34:06 There may be some level that makes sense, that keeps us

10:34:10 still competitive and allows us to offer the service to our

10:34:14 citizens and visitors that's currently being evaluated.

10:34:19 That with additional initiatives such as marketing and just

10:34:23 GTE getting the word out about our services.

10:34:25 All of that is under review right now.

10:34:27 So this is just one component.

10:34:29 And what you mentioned about -- we are so far in the hole

10:34:34 right now, our goal is to at least shoot for a break-even,

10:34:38 and then over time being able to build the reserves, so it

10:34:41 is self-sustaining enterprise fund.

10:34:44 But we have a long road ahead of us.

10:34:46 So right now our immediate goal is to mitigate the amount

10:34:53 that we have to provide to the system.

10:35:03 >> Thank you.

10:35:04 >>HARRY COHEN: Councilwoman Capin.

10:35:08 >>YVONNE CAPIN: I read probably in one of the newspapers,

10:35:10 but I'll tell you, when we were talking about the parking

10:35:14 garages, and there was a statement made that why would we

10:35:22 sell our parking garages if we are so close to at the end of

10:35:28 the mortgage?

10:35:29 Now we are changing that.

10:35:31 Right?

10:35:34 >>SONYA LITTLE: That's right.

10:35:36 And that will also be part of the analysis.

10:35:38 Right now we are contemplating in order to make this

10:35:41 restructuring work, an extension of anywhere between 7 and

10:35:45 10 years, all market driven, as to what gives us the most

10:35:51 positive impact on lowering our obligation by restructuring

10:35:59 versus what it cost us, at some point it doesn't make

10:36:02 sure -- to go out an extra year because it's too expensive

10:36:07 so it's analysis of how far to go, and right now that range

10:36:11 has been an additional eight years versus ten years,

10:36:13 depending on fluctuations in the market.

10:36:17 In addition to that, the asset, useful life, as we extend

10:36:22 the additional eight years, the useful life of that will

10:36:26 still go far beyond the extension.

10:36:30 So we may not get there as quickly as we would like to, but

10:36:34 we still have that opportunity to outright own our assets,

10:36:39 or have an option to determine if some of the assets make

10:36:43 sense to sell or not.

10:36:44 But eight to ten years is really for assets with such a long

10:36:48 useful life is really not a long extension.

10:36:53 >>YVONNE CAPIN: I appreciate that.

10:36:54 Thank you.

10:36:54 >>SONYA LITTLE: Thank you.

10:36:57 Our general fund and utilities tax revenues, possible

10:37:03 solutions, and we are going to come back with additional

10:37:06 solutions when the mayor meets with you in August.

10:37:11 Greater detail.

10:37:13 Our general fund revenues, we talked about property taxes,

10:37:19 what we are forecasting for 2013.

10:37:24 In addition to that, our sales tax revenues for '13 we are

10:37:30 assuming will increase $1.2 million.

10:37:32 I just wanted to point that out because I wanted to make you

10:37:35 aware that our assumptions are right on top of the State of

10:37:39 Florida's for sales tax revenues for the city.

10:37:43 And as we progress through the years and start booking

10:37:46 actual, that's a real difficult number to pinpoint because

10:37:49 of the methodology and allocation of sales tax throughout

10:37:51 the state.

10:37:52 But as we pick away at the fiscal year 2013 we are watching

10:38:00 that figure very closely because it is a fairly large

10:38:03 deponent of our overall general fund revenues.

10:38:07 Our cost allocations, our enterprise funds will be very,

10:38:12 very happy to see we are projecting that it will go down in

10:38:15 2013, and that's as a result of an independent study that we

10:38:19 did to come up with a methodology that is fair and equitable

10:38:24 to our enterprise fund for the amount that they pay the

10:38:27 general fund for all the administrative and support.

10:38:31 So we are very comfortable.

10:38:32 And I know our enterprise funds will be happy to see that

10:38:36 number go down.

10:38:38 Overall for the forecast 2013, you will notice that our

10:38:44 total general fund revenues are expected to be somewhat

10:38:48 flat, a moderate uptick over where we are projecting to end

10:38:54 fiscal year 2012.

10:39:04 This slide provides you with some additional general fund

10:39:07 revenues, just to detail.

10:39:11 Our first line items are revenues such as tourist

10:39:14 development taxes, our proportionate share, utility fuel

10:39:19 tax, et cetera.

10:39:20 Other services, the larger number, other charges for

10:39:24 services that includes TPD extra duty, fire protection, for

10:39:29 the Aviation Authority and EMS services, we are expecting

10:39:36 for '13 a slight uptick for that revenue stream, but for

10:39:43 these categories, we are relatively flat over where we are

10:39:47 for '12, and again as the case for all of our revenues and

10:39:51 expenditures we watched throughout the year, and we make

10:39:55 adjustments accordingly.

10:39:58 Utility tax, because it is the largest component for some

10:40:04 property taxes in our general fund, I wanted to just break

10:40:07 it out line item by line item so that you have an

10:40:10 opportunity to see how the trend between '12 and '13 are

10:40:15 headed, and again for '13 we are forecasting slightly

10:40:19 improved over '12.

10:40:24 Moving from revenues and taking a look at our general fund,

10:40:29 utility tax expenses, no secret, personnel costs are our

10:40:36 largest expense.

10:40:40 You will see that we are forecasting for '13, 283 million,

10:40:47 included in there and factored in, of course, our rising

10:40:53 pension costs, merit steps and health care costs.

10:41:00 On the pension side our investment returns for both our

10:41:03 pension funds, GE, and S&P, for recent quarters have

10:41:11 improved, which is good.

10:41:12 However, because of the calendar year of the two funds, and

10:41:14 our budget year, they don't match perfectly.

10:41:18 So in 2013, our pension fund costs really are not captured,

10:41:24 the improvements due to improved investment returns.

10:41:27 It won't be captured until '14.

10:41:30 And if the trend continues with the investment return, we

10:41:35 will certainly start to notice it in 2014 as far as our

10:41:38 pension costs.

10:41:38 >>HARRY COHEN: Councilman Reddick.

10:41:41 >>FRANK REDDICK: Thank you.

10:41:43 Going back to where you have the 150 reductions in

10:41:49 positions, vacancies, are the salaries for those 150

10:41:56 vacancies projected into this forecast?

10:41:59 >>SONYA LITTLE: Yes, sir, they are.

10:42:00 We carry it until they are removed from the books.

10:42:02 >>FRANK REDDICK: So this figure can be lower?

10:42:08 >>SONYA LITTLE: They can be.

10:42:10 And if you recall last fiscal you're for 2012, we did take a

10:42:21 few vacancies.

10:42:22 So we are not anticipating that it will be as extreme as

10:42:25 last year, because, you know, the low-hanging fruit across

10:42:28 the board continues to decline.

10:42:35 >>YVONNE CAPIN: So when you state that they are vacant but

10:42:39 open, when it's open it means it is budgeted for?

10:42:42 >>SONYA LITTLE: Yes, ma'am.

10:42:43 Because if tomorrow, a department head fills that position,

10:42:46 we have to make sure that the funds are there.

10:42:47 >>FRANK REDDICK: Let me just follow up here.

10:42:52 Now even though those positions are vacant, do you have any

10:42:55 projection for any potential layoff for any employees?

10:43:01 >>SONYA LITTLE: We are trying very, very hard to avoid that

10:43:04 by focusing on the vacancies.

10:43:05 >>FRANK REDDICK: All right.

10:43:09 So --

10:43:10 >>SONYA LITTLE: And we are not anticipating any major

10:43:12 layoffs.

10:43:13 We are working hard to focus on the vacancies, improving

10:43:16 efficiencies, and the solutions that we have outlined

10:43:18 earlier in this presentation.

10:43:20 And Councilman, when the mayor comes back on August 9th,

10:43:25 I believe it is, for his presentation, our goal is to

10:43:29 present a balanced budget where we can have at least a

10:43:33 dollar amount associated with each action taken to fill that

10:43:38 budget shortfall.

10:43:41 And that includes the number of 150 vacancies that will be

10:43:44 eliminated.

10:43:54 Also, along those lines, as far as our general fund

10:43:58 expenditures, focusing again on personnel expenditures, our

10:44:03 health care costs have increased but significantly lower

10:44:10 when compared to the annual increases in prior years.

10:44:13 And that's largely due to the success of our Wellness

10:44:16 Center.

10:44:19 And we are getting great success there.

10:44:21 And much like we are excited when property values don't

10:44:25 decline a lot.

10:44:26 We are very excited when our health care costs don't

10:44:29 increase a lot.

10:44:30 So that's where we are in the health care fund.

10:44:50 More on our utility tax.

10:44:52 We just talked about utility tax revenues.

10:44:54 We are talking -- focusing here on utility tax fund

10:44:58 expenditures.

10:45:02 The right-of-way transfer, we informed you of that during

10:45:05 the budget process for 2012, and basically that impact is

10:45:09 going to flow through to our forecast 2013.

10:45:13 Our debt service is all of the just a minute tax debt that

10:45:19 we have been talking about as far as our annual debt service

10:45:21 payments are concerned.

10:45:22 And in essence, you will see that we are forecasting that

10:45:26 our utility tax fund expenditures as a result of these

10:45:30 individual line items are expected to increase over '12.

10:45:45 Each year, each budget year, we add an additional year onto

10:45:48 the tail end so we have a complete five-year capital

10:45:51 improvement plan.

10:45:53 We are ironing out the kinks as far as all of the actual

10:45:58 projects for the city within the five-year plan, but I would

10:46:03 like to share with you on attentive basis by category -- and

10:46:07 again we'll come back with all the detail to provide you

10:46:10 with the full-blown CIP and what it includes for every

10:46:16 single project that we are looking to fund for the next five

10:46:18 years.

10:46:23 But in summary on attentive basis where we are now is

10:46:27 roughly $380 million that we are looking to fund in projects

10:46:32 through fiscal year 2017.

10:46:34 >> I was looking at this in the thousands in the capital

10:46:58 improvement program.

10:46:59 And I was looking down, investment in neighborhoods.

10:47:02 And I see that's 7,000, right?

10:47:06 >>SONYA LITTLE: Million.

10:47:07 >> That's million?

10:47:09 >>FRANK REDDICK: Yes, sir.

10:47:11 57 million.

10:47:12 We put it in thousands.

10:47:14 You have to add three zeros on the end.

10:47:17 >>FRANK REDDICK: That's what threw me off.

10:47:20 >> That would be disturbing, right?

10:47:24 >>HARRY COHEN: What are the types of investing in

10:47:29 neighborhoods?

10:47:30 >>SONYA LITTLE: Sidewalks.

10:47:31 Streetlights.

10:47:32 Road repairs.

10:47:34 And so forth.

10:47:35 And again we'll have the full details in broad categories.

10:47:39 Those types of improvements to neighborhoods.

10:47:41 >> Councilwoman Capin?

10:47:51 >>YVONNE CAPIN: Transportation.

10:47:53 Little little there's some crossover between transportation

10:47:56 and investing in neighborhoods, but like bridge repairs,

10:48:00 improving intersections as well, those types.

10:48:08 Both large and small projects will be included there.

10:48:11 And it's our goal just to clearly lay it out.

10:48:16 And when we come back to you with our total CIP plan for

10:48:19 each project, you will see the budgeted funding amount in

10:48:26 each year.

10:48:28 >>HARRY COHEN: So the detail of exactly what projects this

10:48:32 money is going to be spent on when we get the details

10:48:37 regarding the full budget?

10:48:38 >>SONYA LITTLE: Yes, sir.

10:48:39 And it will be a great deal of detail.

10:48:42 >> Moving onto our enterprise fund.

10:48:48 >> This is slightly from last budget workshop so I will just

10:48:58 spend a brief moment updating you.

10:49:00 Again, we budged $6.8 million because of improved revenues

10:49:05 and because of operating expenditures we are looking at

10:49:09 instead of 6.8 million subsidy a $5 million subsidy to plug

10:49:14 the shortfall for the parking enterprise.

10:49:19 For '13 we are forecasting a $1.7 million subsidy as a

10:49:26 result of revenues and operation as well as the debt

10:49:29 restructuring.

10:49:32 So again we are chipping away, but there's still work to be

10:49:35 done.

10:49:43 >>MIKE SUAREZ: Let's step back.

10:49:45 We get things paid off in ten years?

10:49:48 >>SONYA LITTLE: We have the option.

10:49:49 >>MIKE SUAREZ: My point is let's say the option is taken

10:49:51 and we refinance and go ahead and pay it off in ten years.

10:49:54 Those expenditures, how much of the expenditures is

10:49:59 currently debt service -- or I'm trying to figure out if

10:50:03 it's going to be primarily the debt service will be gone,

10:50:06 and we are going to be making about $16 million a year off

10:50:09 the enterprise fund?

10:50:11 Or am I reading this incorrectly?

10:50:13 Because if our expenditures are primarily the debt service

10:50:18 itself, which I assume it is, our operational amount may be,

10:50:23 let's say, 3 or $4 million, so we will be making the

10:50:27 difference between what we are currently making in 16 and

10:50:32 change whatever it's going to be after ten years, minus

10:50:34 whatever that expense is, do you know that number off the

10:50:37 top of your head?

10:50:38 Let me put it this way.

10:50:39 Do you know the number for the debt service, I assume.

10:50:42 So let's do quick math here.

10:50:44 And it will be --

10:50:45 >> If they continue on the current trend, and even with

10:50:49 improvements to their revenues, ultimately, they will cover

10:50:54 their operations.

10:50:55 And they are fairly close to covering operations right now.

10:51:00 The shortfall is attributable to the debt.

10:51:02 If we look at it on an annual basis, Councilman, if we go to

10:51:07 the debt service, and instead of paying $6 million a year on

10:51:11 the debt, we would be paying 3 million with the

10:51:14 restructuring, that 3 million would then flow to their fund

10:51:18 balance for capital projects improvements to the system.

10:51:21 And by that time, it will certainly be needed, not to

10:51:26 mention one day they may be able to pay back the general

10:51:29 fund for the subsidy that we are providing to them now.

10:51:33 So there will be good use if we are able to --

10:51:41 >> And that's what I want to get at, there is light at the

10:51:43 end of the tunnel if we decide to go ahead and refinance,

10:51:46 because the idea of refinancing, it has to have a good

10:51:49 reason behind it, and I just wanted to make sure we publicly

10:51:52 said this is what the good reason is, that we'll own it,

10:51:56 we'll have it, we have the option of paying for it at that

10:51:59 time, or -- excuse me -- having total control, not having

10:52:04 any more debt on it and then be able to maintain it

10:52:07 ourselves without any more debt service.

10:52:09 To me, that's the win-win if you are looking at it in that

10:52:13 fashion.

10:52:14 So I appreciate you kind of straightening it all out for me

10:52:21 because I think when we talk about refinancing we need to

10:52:23 make sure that people understand why the refinancing is

10:52:25 being done, and why it's important on a financial basis as

10:52:32 opposed to just because we want to do it.

10:52:35 >>SONYA LITTLE: Right.

10:52:37 >>MIKE SUAREZ: Thank you.

10:52:39 >>SONYA LITTLE: Thank you.

10:52:45 Solid waste.

10:52:53 Our net operating revenues for '12 are projected to be

10:52:59 positive, whereas we started out with a negative expectation

10:53:03 this time last year, with the initiatives as it relates to

10:53:06 the rate structure adoption.

10:53:08 We are projecting that they will have a positive balance,

10:53:13 whereas had we done nothing they would have busted their

10:53:18 fund balance and actually been bankrupt.

10:53:20 Forecast for fiscal year 2013, their net operating revenues

10:53:24 is going to be $5.5 million, and that net revenue figure

10:53:33 portion of that will be used to start to build their

10:53:37 reserves as required, and also to fund their capital program

10:53:41 which is primarily associated with vehicle replacement

10:53:44 programs.

10:53:44 We have talked to you in the past about our fleets and the

10:53:51 rising costs of maintenance costs of the aging fleet.

10:53:56 As we were going through the solid waste project, one of my

10:53:59 greatest concerns is that the system would be downgraded if

10:54:03 we did nothing.

10:54:04 We didn't reach out to them, but they called us as the

10:54:08 rating agencies back the end of last month, reached out to

10:54:12 us for an update to take a look at our projections as a

10:54:15 result of the rate plan that was adopted.

10:54:18 And on June 29th they released a rating of "A," which is

10:54:26 a very solid level rating in the "A" category with a stable

10:54:32 outlook.

10:54:32 I just wanted to highlight some of the key drivers that

10:54:35 resulted in us being affirmed at an "A" rating.

10:54:43 Coat from Fitch ratings, five year plan to restore financial

10:54:47 system.

10:54:48 Another quote, energy plant continues to perform well.

10:54:52 And the fact that the system for the next five years, the

10:54:56 capital plan that we talked about is manageable.

10:54:58 We actually received compliments on how we are looking to

10:55:01 cash fund moving forward that vehicle replacement plan that

10:55:06 was developed by the department.

10:55:08 In addition to that, the current rating for moody is A-3,

10:55:17 and again we got a call last week from moody and we are

10:55:19 currently working with them right now to provide them an

10:55:22 update on the system.

10:55:23 So I hope to be able to report to you the results of their

10:55:26 findings in the next week or so.

10:55:28 >> Councilwoman Capin.

10:55:31 >> I'm so glad to hear we are getting response from the bond

10:55:37 rating, because of what I call our Sophie's choice back, and

10:55:47 we had to make, because our calls to our offices were not as

10:55:54 positive, but I'm glad that in the long run we will be

10:55:57 better off.

10:56:01 I'm glad to hear that, because I would not have been very

10:56:06 happy had we had other news including what we went through

10:56:11 to bring to the this point.

10:56:12 >>HARRY COHEN: Is there any way that you can quantify what

10:56:16 the actual annual cost would be for these ratings to move?

10:56:25 If we were to be downgraded what would the actual dollar

10:56:28 cost to the city be in that type of a scenario?

10:56:32 >>SONYA LITTLE: This information is a little stale because

10:56:34 I did check into this and I have to confirm, but just to

10:56:37 give you an indication -- and it fluctuates with the

10:56:41 market -- having been downgraded from an "A" to an A-minus

10:56:48 would not have been that significant.

10:56:50 Our greatest concern was with moody if we were to be

10:56:54 downgraded from an A-3 to the triple D category or lower,

10:57:00 that would be devastating to us.

10:57:03 From a cost perspective, even though it would have been a

10:57:07 downgrade to our enterprise system, the way that the credit

10:57:11 market, banks, and financial institutions, investment banks,

10:57:17 would have viewed us is that we didn't have the political

10:57:19 will, even though we had the ability to rectify this

10:57:25 problem.

10:57:25 So it would have carried forward, not only just to our solid

10:57:31 waste system but in everything else that we do in the city.

10:57:33 >> So the city's cost of borrowing across the board would be

10:57:38 affected by it?

10:57:39 >> Yes. Because it was directly linked to political will to

10:57:47 a system.

10:57:52 >>YVONNE CAPIN: It was our political will.

10:57:54 Council's political will.

10:57:55 I want to make it very clear.

10:57:56 We were very --

10:58:02 >> Willful.

10:58:04 >>YVONNE CAPIN: Willful.

10:58:06 Thank you.

10:58:06 >>SONYA LITTLE: We would have been in great trouble.

10:58:09 I was holding my breath every day that they would call.

10:58:13 Fortunately we were able to get a solid plan in place.

10:58:16 And we are hopeful and pretty confident that mood Y's will

10:58:21 come back with similar responses.

10:58:32 Our water fund, just because we are focusing on our

10:58:36 enterprise fund, there's not much that changed in our net

10:58:39 revenue projections over the first workshop.

10:58:41 But for informational purposes, I have included here net

10:58:45 revenues are expected to be 17 million or so.

10:58:50 Our fund balance again with both wastewater and our water

10:58:57 fund will remain at significant levels because they have

10:59:00 reserve requirements that they have to maintain, and they

10:59:04 have as part of their individual capital plan projects for

10:59:08 rehab, in particular, that they are looking to do on a cash

10:59:14 basis.

10:59:16 So again these two funds are moving forward on a financially

10:59:22 healthy condition.

10:59:32 Our calendar, moving forward, the mayor will provide to

10:59:35 council the full-blown budget presentation on August 9th

10:59:40 with all the details that will show how we are filling the

10:59:46 budget shortfall, as well as the full blown capital

10:59:50 improvement plan for the five-year period.

10:59:54 On August 16th, we'll come back to you to approve our

10:59:58 non-ad valorem assessment, and that requires a public

11:00:03 hearing.

11:00:05 And then finally as it relates to the final step of our

11:00:09 budget, we'll have preliminary public hearings on September

11:00:14 13th with the final adoption public hearing being held

11:00:18 on September 27th.

11:00:20 >>HARRY COHEN: Are there any additional questions for Ms.

11:00:25 Little?

11:00:25 Councilman Reddick.

11:00:26 >>FRANK REDDICK: Thank you, chair.

11:00:29 I know we spoke a lot about refinancing, in this projected

11:00:38 2013 budget.

11:00:42 Will any reserve fund be used to meet this budget?

11:00:44 >>SONYA LITTLE: Possibly.

11:00:48 Possibly.

11:00:48 And the reason that we have not provided to you yet dollar

11:00:54 figures associated with each solution is that we are working

11:00:58 to avoid a huge hit to our general fund.

11:01:02 >>FRANK REDDICK: And I know in the last budget year to the

11:01:10 reserve revenues to meet the budget, and if you are not able

11:01:18 to refinance, what will the other possible options to be, to

11:01:22 go into the reserves?

11:01:23 >>SONYA LITTLE: Yes, sir.

11:01:24 And fortunately we do have the buffer although we don't want

11:01:27 to tap it if it's not absolutely necessary to tap it.

11:01:34 We are at 30%.

11:01:38 Our policy is 20%.

11:01:41 We need to stay as close to 30% as we can because if we stay

11:01:45 on the trend where there's no obvious uptick, if we stay

11:01:48 flat or get worse, 14 is going to be a really rough year.

11:01:54 So we are doing our best to project forward beyond today to

11:01:59 a sure that we have the ability to keep us afloat and

11:02:04 provide the services that we need to provide.

11:02:08 So to answer your question, council member, in 2012, where

11:02:17 we will end up is for the $15 million shortfall where we are

11:02:21 right on top of what we have budgeted for, 9 million to

11:02:24 carry forward savings from 2011, $6 million is what we are

11:02:30 projecting to tap our general fund for to make up the budget

11:02:36 shortfall.

11:02:37 This year, we are striving hard to make that as little as

11:02:41 possible for '13.

11:02:43 >> My final question, will the employees receive any cost of

11:02:48 living increase?

11:02:49 >> I have not received that information yet.

11:02:54 >>FRANK REDDICK: That will be presented, I guess, August

11:02:57 9th when the mayor comes to make his presentation?

11:03:00 >>SONYA LITTLE: Yes.

11:03:02 Unless he has that information beforehand.

11:03:03 I don't have a decision on that.

11:03:05 >>FRANK REDDICK: Okay, thank you.

11:03:07 >>HARRY COHEN: Anyone else?

11:03:10 Well, as always, Ms. Little, thank you very much for a very

11:03:14 frank and honest presentation of where we stand.

11:03:21 And we look forward to working with you through the process.

11:03:24 On a side note, the citizens budget advisory committee that

11:03:27 the council started meeting, they have a very aggressive

11:03:30 meeting schedule over the next six weeks or so.

11:03:34 Those meetings, the time and place of those meetings are

11:03:38 posted downstairs on the bulletin board and they are also

11:03:40 available from the clerk's office.

11:03:41 So thank you.

11:03:42 >>SONYA LITTLE: Thank you, council.

11:03:47 >>HARRY COHEN: We do take public comment at the end of each

11:03:50 workshop item.

11:03:50 If there's anyone that wishes to address council regarding

11:03:53 next year's budget now would be the time.

11:03:55 Three minutes per speaker.

11:03:56 >> Donny Rhode, 412 made son street.

11:04:04 It seemed to me as though there was some reluctance to say

11:04:08 in reference to political will that we raise everybody's

11:04:12 garbage bill in just plain English.

11:04:14 But along with that, there are some other issues that seem

11:04:17 to be part and parcel of political will when we know that

11:04:22 the budget provides for transfers of funds to nonprofits,

11:04:29 wheres wherein those same nonprofits pay certain staff

11:04:33 members very, very large salaries.

11:04:39 Ms. Little just was asked a question a moment ago about

11:04:42 whether there would be a cost of living wage.

11:04:45 Some people would wonder if there shouldn't be some type of

11:04:47 a salary rollback in order to fund other things that are

11:04:50 necessary in the city, such as efforts to do something about

11:04:56 the homeless problem that's overwhelmed the city,

11:05:00 overwhelmed the downtown area.

11:05:04 I also think that when there's a need to discuss the budget

11:05:11 in such a term as political will, that political will ought

11:05:16 to also include things like when she explains these capital

11:05:21 improvements in the five-year plans, what about when a

11:05:23 council member suddenly notices that the Conn concrete and

11:05:28 the blacktop on Bayshore Boulevard don't look perfectly

11:05:31 uniform, and there's a budge of out-of-town visitors that

11:05:34 are going to come here and see it and we are going to be

11:05:37 disgraced, where does that emergency money come from on an

11:05:41 emergency basis pave Bayshore Boulevard for the convention?

11:05:46 Does that come --

11:05:47 >>HARRY COHEN: It actually came from Hillsborough County.

11:05:49 >> It came from the county?

11:05:51 >>HARRY COHEN: Yes.

11:05:52 >> Okay.

11:05:53 That would be an example some of funds that possibly could

11:05:55 have gone elsewhere if one would believe that television

11:05:59 cameras are not going to be focused on the ground.

11:06:02 And that was one of the motivations for doing the pave job

11:06:05 was because supposedly TV cameras were going to come here

11:06:08 and see irregular pavement.

11:06:10 I'm only pointing out, because it doesn't seem like anyone

11:06:13 else is willing to, that some of these expenditures look

11:06:16 questionable, and some of these nonactions, inactions, look

11:06:22 just as questionable, too.

11:06:23 Thank you.

11:06:23 >> Al Davis of 3717 east Wilder Avenue.

11:06:39 When it comes to the matter of this term called the budget

11:06:45 and financing the quality of life of the citizens, every

11:06:51 citizen, whether or not they are employed or not, they

11:06:58 contribute, they pay taxes like everyone else is, to pay

11:07:08 taxes unless there are some noble reasons.

11:07:14 I commend Ms. Little for her presentation because, you know,

11:07:18 there's a saying goes, money, you know, you can have a

11:07:26 party, you can drink wine, and they have this occasion, but

11:07:31 money is the answer to all things.

11:07:41 Money, they say it can't buy you love, but I think sometimes

11:07:46 you try to use money to do that.

11:07:50 It's my intent to follow the process till this council

11:08:00 adopts the budget.

11:08:01 And I'm glad that we have at least a 12-year cycle -- not

11:08:08 12-year but 12-month cycle, because so many things can

11:08:11 happen so soon.

11:08:12 I was listening to the news about some municipalities,

11:08:22 California, that they can't pay their bills, and what do

11:08:25 they call that, bankrupt?

11:08:27 Is that what it is?

11:08:32 I hope this municipal City of Tampa is a heck of a long ways

11:08:38 from being bankrupt.

11:08:42 I hope we keep in balance our income, our expenses, so that

11:08:50 we can have some equity.

11:08:54 It's okay to owe somebody some money.

11:08:59 It okay to borrow money to advances, but let's continue to

11:09:07 be -- let's be what they call it, penny wise and not pound

11:09:15 foolish.

11:09:15 Thank you, Mr. Chairman.

11:09:17 >>HARRY COHEN: Okay.

11:09:21 New business by council members?

11:09:22 Mr. Suarez?

11:09:23 >>MIKE SUAREZ: Thank you, chair.

11:09:25 Earlier today, I was going to introduce a young man that has

11:09:29 been working with one of our vendors that provides services

11:09:33 to the public, to our Parks and Recreation Department, a

11:09:38 gentleman by the name of Jose Herrera, who works for Tae

11:09:46 Kwon Do academy.

11:09:48 They teach primarily at Kate Jackson park.

11:09:54 The Marshall art of Tae Kwon Do.

11:09:56 It is a great Avenue for children to learn a lot about

11:10:01 discipline, about respect, and about how to improve their

11:10:06 bodies without actually hurting themselves.

11:10:09 And it's a great activity.

11:10:12 The reason I mention Mr. Herrera, he's no longer going to be

11:10:16 teaching our children at parks and rec.

11:10:19 He is a recruit, a U.S. Army recruit who will be going to

11:10:24 fort sill, Oklahoma next week.

11:10:26 He will no longer be at the Parks and Recreation Department.

11:10:28 He is going to be an Army medic and join his brother who is

11:10:32 currently serving in Afghanistan in that capacity.

11:10:35 I just want to applaud and congratulate the kind of people

11:10:38 that we have work within our Parks and Recreation

11:10:40 Department, and specifically Mr. Herrera for volunteering

11:10:45 for military service with our Armed Forces.

11:10:48 So thank you, chair.

11:10:49 >>FRANK REDDICK: I have one, Mr. Chair, and that is, I want

11:11:03 to invite Jean from the transportation department to come

11:11:07 before this council with some resolutions, and options

11:11:10 pertaining to an intersection in the City of Tampa, and I

11:11:13 want to put this up at 34th and Chelsea, and this

11:11:19 happened just Monday night.

11:11:22 And this happened Monday night.

11:11:26 And this intersection, we have wrecks there very, very

11:11:30 often.

11:11:32 And if you come to that corner, you will see more people got

11:11:36 flowers out there where somebody died, fatalities, and it's

11:11:41 just a four-way stop.

11:11:43 And just Monday night that this took place.

11:11:46 And I think it's to the point now where people are crying

11:11:50 out for help, because that one intersection continues to

11:11:55 have this many accidents to occur.

11:11:59 So if Ms. Duncan or somebody from transportation can come

11:12:03 before this body and tell us how we can improve that

11:12:06 intersection, under staff reports, I would appreciate it.

11:12:11 That's in the form of a motion.

11:12:12 >> Second.

11:12:13 >>HARRY COHEN: We have a motion from Councilman Reddick,

11:12:16 seconded by Councilwoman Mulhern.

11:12:20 Any discussion?

11:12:21 All in favor say aye.

11:12:23 Opposed?

11:12:23 Motion passes.

11:12:24 >>FRANK REDDICK: That's all.

11:12:26 >>HARRY COHEN: Thank you.

11:12:28 Councilwoman Mulhern.

11:12:31 Okay.

11:12:32 Hearing nothing, we will adjourn until -- oh, excuse me.

11:12:36 We need a motion to receive and file.

11:12:38 Motion by Councilman Reddick, seconded by Councilman Suarez.

11:12:41 Please indicate by saying aye.

11:12:45 We will be in recess until 6:00 p.m. tonight.



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