CITY COMMISSION WORKSHOP MEETING

August 24, 2010

5:30 PM

Commission Members

Shirley Groover Bryant, Mayor

Tamara Cornwell, Vice Mayor, Commissioner-at-Large 2

Alan Zirkelbach, Commissioner-at-Large 1

Mary Lancaster, Commissioner, Ward 1

Tambra Varnadore, Commissioner, Ward 2

Brian Williams, Commissioner, Ward 3

Staff Present:

Jeff Burton, Interim CRA Administrator

James R. Freeman, City Clerk

Cheryl Miller, Sr. Accounting Analyst

Karen Simpson, Deputy Clerk-Finance

Allen Tusing, Public Works Director

Rick Wells, Police Chief

Diane Ponder, Deputy Clerk-Administration

Mayor Bryant called the meeting to order at 5:31 p.m.

Amy Gerasi, Atlas Insurance, explained the updated information on the City’s health insurance renewal.

Blue Cross Blue Shield (BCBS) had 75 plans which were reduced to 14. Through negotiations with BCBS, several optional plans were obtained. Ms. Gerasi reviewed the current plan compared to the three options with Commission, a copy of which is attached hereto and made a part of these minutes. The renewal rates for the current and optional plans are as follows:

Plan 3769 (Current plan with no changes) 19% increase for employees only

Plan 5772 (Base plan) 9% increase for employees only

Plan 5360 (Buy up plan) 16.62% increase for employees only

Plan 3559 (Predictable cost plan) 19% increase for employees only

The City subsidizes 55% of dependent care and pays 100% of an employee’s dental care and life insurance at one times per an employee’s salary.

Discussion ensued on the cost to provide dependent care, including the dependent care subsidy, health savings plans and providing each employee a flat amount the City would contribute toward health insurance, thereby giving the employee the ability to choose which type of insurance they would select.

Ms. Gerasi informed Commission that the legislature is looking at phasing out health savings plans. Ms. Gerasi also stated that if no changes are made and the renewal option with the 19% for employees, the plan would be “grandfathered”. When changes are made to the plan, the “grandfather” status is loss; the primary reason to stay “grandfathered” would be to hold off changes that have to be made due to legislation.

If the 3-tier plan is chosen and dental coverage becomes voluntary to the employees, the City would see a savings of approximately $90,000. If this selection is made the deficit in the budget would reduce to approximately $145,000.

Commission asked that the employees be surveyed to see if they would prefer to keep the benefits or receive a 3% COLA. Staff is also to confirm the insurance rates to retirees.

Following a brief review of comparisons of taxable values of homes and real estate taxes, the proposed one-quarter mill increase was briefly discussed.

Mayor Bryant recessed the meeting at 7:20 p.m.

Mayor Bryant reconvened the meeting at 7:35 p.m.

Grants

Cheryl Miller, Finance Department, reviewed the budget for the grants. Commission made no changes.

Mr. Freeman and Mayor Bryant updated the Commission on the Ward 1 Phase II grant and the Energy Efficiency Grants, which when awarded will amount to approximately $1.2 million.

CRA

Mr. Burton informed Commission the CRA Advisory Board must review the budget before it is adopted by Commission. A joint CRA Board and CRA Advisory Board meeting was scheduled for August 30, 2010.

There is a total of $1.9 million in restricted funds; $712,563 from the 2007 loan and $1.256 from the sale of the property purchased for the school. The only use still available for the restricted funds is the Olympia Theater, unless an amendment to the loan is secured from the bank. The loan can also be paid in full, but that will leave only TIF funds for projects. Mr. Burton stated that if the City continues in the same policy, projects will have to be reconsidered.

Mr. Burton opined a policy regarding the allocations to Code Enforcement and Police needs to be developed because of the difficulty in justifying the funding levels by CRA.

GIS Specialist will become full time; 70% funded by CRA and the balance allocated to the departments he serves. GIS update contained in memberships is software that was input in the wrong account and will be corrected.

Staff was asked to provide the benefits the City derives from the membership in the EDC and if it is not justified, the amount should be added to the Promotional Advertising line item. A marketing plan will be developed, which may increase the amount in the Promotional Advertising line item. A job incentive program, matching the county with $5,000 for each new job was discussed as part of a marketing plan. It was opined that Palmetto citizens should have first choice on jobs.

The utilities, postage, small tools will be considered again.

Non-Capitalized Equipment was reduced to $1,000.

Line 8213 Tax Abatement: Properly identify Publix vs. Albertson’s.

A possible Right of First Refusal program, which will assist in controlling the purchase of affordable property

Mr. Burton was asked to provide a breakdown of line 8212 for discussion Monday night. He was also asked to provide ideas of how a new FRDAP grant will be used if funded; one idea is lights at the Martin Luther King Park.

Meeting adjourned at 9:25 p.m.

Minutes approved: September 13, 2010

James R. Freeman

James R. Freeman

City Clerk