TAMPA CITY COUNCIL
THURSDAY, JUNE 14, 2018
9:00 A.M. SPECIAL CALLED WORKSHOP
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09:00:40
09:03:20 [SOUNDING GAVEL]
09:03:29 >>FRANK REDDICK: [OFF MICROPHONE]
09:03:31 >> WE WELCOME A FAMILIAR FACE AND GOOD FRIEND, PASTOR BRUCE
09:03:35 THOMAS FROM PALMA CEIA UNITED METHODIST CHURCH, A FLORIDA
09:03:39 NATIVE, AND PRIOR TO BEGINNING AT PALMA CEIA IN 2012 HE
09:03:43 SERVED AS PASTOR AT THE LAKE MAGDALENE UNITED METHODIST
09:03:47 CHURCH IN NORTH TAMPA AND EAST LAKE METHODIST CHURCH IN PALM
09:03:52 HARBOR.
09:03:53 PLEASE RISE FOR THE INVOCATION.
09:03:58 >> THANK YOU.
09:03:59 LET US PRAY TOGETHER.
09:04:01 WE GIVE THANKS FOR THE BLESSINGS OF YOUR CREATED ORDER, O
09:04:05 GOD, THE AIR WE BREATHE, THE WATER WE DRINK.
09:04:08 WE GIVE THANKS FOR THE NATION WE LIVE AND THE FREEDOMS THAT
09:04:11 WE ENJOY.
09:04:12 WE GIVE THANKS FOR THE RULE OF LAW AND SOCIAL ORDER.
09:04:15 WE GIVE THANKS FOR CITY COUNCIL MEMBERS WHO ARE RESPONSIVE
09:04:19 TO THE RESIDENTS THEY SERVE.
09:04:22 WE CONSIDER -- WHEN WE CONSIDER OUR BLESSINGS.
09:04:25 WE ARE MINDFUL TO CARE FOR THOSE WHO ARE LESS FORTUNATE, WHO
09:04:32 HAVE THE ABILITY TO IMPROVE THEIR CONDITION, AND IN ALL OUR
09:04:36 FREEDOMS WE ARE MINDFUL OF THOSE WHO HAVE GIVEN THE ULTIMATE
09:04:39 SACRIFICE TO MAINTAIN OUR WAY OF LIFE.
09:04:42 AND WE PRAY FOR MEN AND WOMEN IN UNIFORM ESPECIALLY THOSE
09:04:45 DEPLOYED IN VERY DANGEROUS AREAS OF THE WORLD, AND IN ALL
09:04:49 OUR BLESSINGS WE DEPEND ON YOUR HELP AND GUIDANCE.
09:04:52 SO WE PRAY FOR THE LEADERS OF OUR NATION, OUR STATE, AND OUR
09:04:57 GREAT CITY, AND WE PRAY FOR THESE CITY COUNCIL MEN AND WOMEN
09:05:02 IN THIS MEETING, GUIDE THEM IN YOUR WISDOM, GIVE THEM
09:05:06 STRENGTH AND ENLIVEN THEIR SPIRIT, ENCOURAGE THEIR HEARTS.
09:05:10 BLESS NOW THE PROCEEDINGS OF THIS CITY COUNCIL MEETING WE
09:05:13 PRAY.
09:05:13 AMEN.
09:05:14 [ PLEDGE OF ALLEGIANCE ]
09:05:17 >> ROLL CALL.
09:05:35 >>MIKE SUAREZ: HERE.
09:05:38 >>HARRY COHEN: HERE.
09:05:39 >>GUIDO MANISCALCO: HERE.
09:05:40 >>YVONNE CAPIN: PRESENT.
09:05:42 >>CHARLIE MIRANDA: HERE.
09:05:44 >>FRANK REDDICK: HERE.
09:05:45 ALL RIGHT.
09:05:47 WE WILL GO TO OUR WORKSHOP.
09:05:53 AND MR. COHEN, INTRODUCE OUR GUEST.
09:05:58 >>HARRY COHEN: OUR GUEST IS ANOTHER FAMILIAR FACE AT CITY
09:06:01 COUNCIL AND THAT IS SONYA LITTLE, OUR CFO.
09:06:07 >>SONYA LITTLE: REVENUE AND FINANCE.
09:06:10 THANK YOU FOR THE OPPORTUNITY TO PRESENT BEFORE YOU THIS
09:06:13 MORNING.
09:06:15 IF YOU WILL RECALL IN ONE OF YOUR LAST MONTH'S MEETINGS, THE
09:06:18 MONTH OF MAY, WE PRESENTED THE FY 201 BUDGET REVIEW WHERE WE
09:06:24 PROVIDED AN OVERVIEW OF THE ECONOMY AND DISCUSSED ITS IMPACT
09:06:30 ON OUR FORECAST.
09:06:33 WE ALSO PROVIDED SPECIFIC INFORMATION ON OUR REVENUE
09:06:38 PROJECTIONS, EXPENDITURE OF PROJECTIONS FOR OUR MAJOR
09:06:41 REVENUES AND EXPENDITURES, AND SET THE TONE FOR WHERE WE
09:06:47 WERE STARTING AS WE START PREPARING FOR OUR FY 19 BUDGET.
09:06:51 SO IN TODAY'S WORKSHOP, I'LL PROVIDE YOU WITH INFORMATION
09:06:57 THAT WE HAVE TO DATE RELATED TO THE FY 19 BUDGET.
09:07:01 I WANT TO THANK EACH ONE OF YOU FOR YOUR TIME THAT YOU GAVE
09:07:04 TO US FOR INDIVIDUAL BRIEFINGS.
09:07:07 WE HAD THE OPPORTUNITY TO SPEAK WITH EACH ONE OF YOU ONE ON
09:07:10 ONE.
09:07:11 SO A LOT OF THIS INFORMATION WILL BE FAMILIAR, BUT WE'LL
09:07:14 WALK THROUGH IT FOR PUBLIC PURPOSES.
09:07:17 WE CONTINUE TO WORK WITH YOUR CITIZENS BUDGET ADVISORY
09:07:24 COMMITTEE AS THEY MEET WITH EACH ONE OF OUR DEPARTMENTS TO
09:07:28 GET FEEDBACK ON THE NEEDS WITHIN THE DEPARTMENT, AND WE WILL
09:07:33 CONTINUE THE PROCESS ALL THE WAY THROUGH JULY 19th WHEN
09:07:36 THE MAYOR DELIVERS THE BUDGET.
09:07:40 SO IF WE COULD START WITH THE PRESENTATION, PLEASE.
09:07:47 THE KEY ECONOMIC INDICATORS THAT ARE PROVIDED HERE IS JUST
09:07:54 REALLY A SUMMARY OF WHAT WAS GIVEN TO YOU LAST MONTH.
09:07:57 THERE HAVE BEEN NO SIGNIFICANT CHANGES AGAIN AS WE INDICATED
09:08:01 LAST MONTH.
09:08:03 IT'S EXPECTED THAT THE ECONOMY WILL CONTINUE TO EXPERIENCE
09:08:07 LOW TO MODERATE GROWTH IN ALL OF THESE KEY ECONOMIC
09:08:11 INDICATORS, THAT SUPPORT THAT EXPECTATION SO IT'S THE LINE
09:08:19 GRAPH THAT YOU SAW LAST MONTH JUST SUMMARIZED INTO THIS ONE
09:08:22 TABLE.
09:08:27 FOR THE BUDGET, THE OBJECTIVES THAT WE HAD FOR THE LAST
09:08:29 SEVERAL YEARS PROVIDED THE SAME, NO MAJOR CHANGES FOR THE
09:08:33 UPCOMING FY 19 BUDGET.
09:08:39 AND SO AS WE START THIS PROCESS, EVERY YEAR WE COME TO YOU
09:08:43 AND WE TALK ABOUT ALL THE MEASURES THAT HAVE TO BE TAKEN IN
09:08:46 ORDER TO BALANCE THE BUDGET.
09:08:48 WE ALL KNOW THAT IT'S BEEN CHALLENGING FOR THE LAST TEN
09:08:50 YEARS.
09:08:53 WE ARE STILL EXPERIENCING THE CHALLENGES RELATED TO THE
09:08:56 ECONOMIC DOWNTURN THAT STARTED BACK IN 2008 HAVING LOST
09:09:00 SIGNIFICANT REVENUES OVER TIME.
09:09:02 AS OUR EXPENDITURES HAVE CONTINUED TO INCREASE.
09:09:05 BUT THIS IS A SNAPSHOT OF WITH THE FIRST ROW SHOWING THE
09:09:09 FUNDING SHORTFALLS IN EVERY YEAR.
09:09:13 THROUGH FY 18.
09:09:15 AND WE PUT TOGETHER, BECAUSE WE TAKE A LOOK AT EVERY
09:09:18 POSSIBILITY EACH YEAR FOR BALANCING THE BUDGET.
09:09:30 WE HAVE MEASURES WE HAVE TAKEN TO BALANCE THE BUDGET ON AN
09:09:32 ANNUAL BASIS.
09:09:33 YOU WILL SEE THAT IN EVERY YEAR WE EVALUATE VACANCIES,
09:09:39 WHENEVER THERE'S A REQUEST MADE TO FILL A POSITION, IT'S
09:09:43 EVALUATED, AND WE HAVE TO DETERMINE THE IMPACT ON SERVICE OR
09:09:46 NOT.
09:09:53 EQUIPMENT HAS BEEN DEFERRED.
09:09:55 BUDGET DEPARTMENTS, BACK IN 2012 BUDGET PREPARATION AS MUCH
09:09:58 AS 15% FROM THE DEPARTMENTS AND THEN ANNUALLY EVERY YEAR
09:10:03 THEREAFTER, OUR DEPARTMENTS ARE ASKED TO PROVIDE A REDUCTION
09:10:06 IN THEIR BUDGET.
09:10:08 AND THAT'S EVALUATED.
09:10:10 SO IN ADDITION TO CUTTING, WE ALSO TRY TO IDENTIFY WAYS IN
09:10:15 WHICH WE CAN INCREASE OUR REVENUES.
09:10:17 ONE OF THE THINGS THAT WE HAVE DONE IS WE CHANGED HOW WE PAY
09:10:21 OUR CONTRIBUTION TO OUR GENERAL EMPLOYEES PENSION FUND.
09:10:25 AND TO DATE, WE REALIZED A SAVINGS OF OVER $4 MILLION THAT
09:10:29 WOULD HAVE BEEN PAID OUT TO THE FUND HAD WE NOT CHANGED OUR
09:10:33 METHODOLOGY FOR PAYMENT TO THE FUND.
09:10:36 OBVIOUSLY, WE USED RESERVES OVER THE YEARS.
09:10:39 WE HAVE NOT HAD TO USE RESERVES.
09:10:41 WE ARE AT A POINT RIGHT NOW WHERE WE NEED TO START
09:10:44 REBUILDING OUR RESERVES.
09:10:47 THEY SERVED THEIR PURPOSE DURING THE REALLY TOUGH YEARS.
09:10:52 WE HAVE ELIMINATED OR REDUCED PAY INCREASES FOR SEVERAL
09:10:54 YEARS.
09:10:56 WE REDUCED OVERTIME.
09:10:59 WE LEVERAGED OUR GRANT FUNDING OPPORTUNITIES IN ANY WAY
09:11:03 POSSIBLE.
09:11:04 WE IDENTIFY BE GRANT OPPORTUNITIES.
09:11:06 AND WE ARE ALSO LOOKING AT BE LANDFILLS ON AN ANNUAL BASIS
09:11:11 AND THEN OBVIOUSLY LAST YEAR YOU ARE AWARE THAT WE INCREASED
09:11:13 THE MILLAGE RATE.
09:11:19 SO ON SLIDE 5, WHAT YOU SEE HERE IS WHAT WE PRESENTED LAST
09:11:27 YEAR.
09:11:27 SO THIS IS JUST A SNAPSHOT OF WHERE WE STARTED FOR THE
09:11:31 PREPARATION FOR THE FY 19 BUDGET.
09:11:36 TO THE FAR LEFT ARE THE ROWS SO THAT WE CAN FOLLOW THIS
09:11:40 CHART.
09:11:41 YOU GO TO ROW 2.
09:11:43 WE HAVE THE INCREASE IN TAXABLE VALUE WHICH IS FOR FY 18 TO
09:11:49 ACTUAL AT 109 OR 9.3% OVER THE PRIOR YEAR.
09:11:56 AT THAT TIME LAST YEAR WE FORECASTED AN INCREASE FOR YEARS
09:11:59 19 AND 20 OF 6%.
09:12:02 IF YOU GO DOWN TO LINE 6, IT GIVES YOU THE RESULTING
09:12:06 REVENUES OF ALL OF THOSE LINE ITEMS.
09:12:09 WE ALSO HAVE HIGHLIGHTS ON THE MAJOR EXPENDITURES IN 18.
09:12:16 WE WILL PAY OFF OUR LOAN, AND IN 19 AND 20 WE HAVE THE MAJOR
09:12:23 DEBT FROM THE 96 FUND ISSUES THAT ARE COMING ONLINE THAT
09:12:28 WILL ADDRESS.
09:12:30 THE LINE 7-C GIVES YOU A TOTAL OF THE EXPENDITURES IN THE
09:12:33 GENERAL FUND.
09:12:35 AND THEN THE RESULTING ANNUAL SHORTFALL.
09:12:39 WHEN WE STARTED RELEASING THE INFORMATION EARLY ON, WE
09:12:43 STARTED OUT WITH 13.5 MILLION SHORTFALL PROJECTED FOR FY 19.
09:12:49 AND THEN TO DATE I'LL GIVE YOU AN UPDATE OF WHERE WE ARE.
09:12:55 THE BACKUP INFORMATION BEFORE THE MAJOR COMPONENTS ON THE
09:12:58 SLIDE THAT YOU JUST SAW ARE BASED ON THE ASSUMPTIONS THAT
09:13:03 ARE SHOWN ON THIS PAGE.
09:13:04 WE TALKED ABOUT WE ASSUME A 6% INCREASE OVER THE PRIOR YEAR
09:13:08 FOR THE TAXABLE VALUE.
09:13:10 WE ALSO ASSUMED THAT OUR CONTRIBUTION, WHICH HAD
09:13:14 HISTORICALLY BEEN THE CASE FOR OUR GENERAL EMPLOYEES AND
09:13:18 FIRE AND POLICE PENSION FUNDS AND 8% INCREASE IN THE
09:13:23 CONTRIBUTION OVER THE PRIOR YEAR, WE ALSO ASSUMED AN 8%
09:13:26 INCREASE IN OUR HEALTH CARE COSTS BASED ON PRIOR YEAR'S
09:13:30 PERFORMANCE, AND ALSO WE WERE EXPECTING A 10% INCREASE IN
09:13:35 THE CITY'S CONTRIBUTION TO THE CRA.
09:13:38 AGAIN WE ALREADY MENTIONED THAT OUR DEPARTMENTAL REDUCTION
09:13:41 WOULD RANGE BETWEEN ZERO AND 3%.
09:13:45 SO WHEN THE DEPARTMENT SUBMITS -- IF THEIR TARGET REDUCTION
09:13:49 WASN'T 3%, WE ARE GOING THROUGH THE PROCESS RIGHT NOW TO
09:13:52 DETERMINE, BASED ON THOSE PROPOSED RECOMMENDATIONS, THE
09:13:57 IMPACT ON SERVICE.
09:13:58 SO NOT EVERY REDUCTION PROPOSAL WILL BE ACCEPTED BECAUSE IT
09:14:03 WILL BE DETERMINED WHETHER OR NOT IT WILL BE DETRIMENTAL TO
09:14:06 THE CITY PROVIDING THE SAME LEVEL OF SERVICE TO OUR
09:14:10 CITIZENS.
09:14:12 SO WHAT DOES THAT MEAN TO US?
09:14:17 >>MIKE SUAREZ: WHEN ARE WE GOING TO KNOW ABOUT THE
09:14:18 POTENTIAL HEALTH CARE INCREASE?
09:14:20 WHAT DATE?
09:14:21 I KNOW THEY HAVE GOT TO GO THROUGH ALL THE NUMBERS AND
09:14:24 FIGURE OUT WHAT OUR ANNUAL CONTRIBUTION IS GOING TO BE FOR
09:14:26 OUR EXPECTED LOSSES.
09:14:28 SO WHAT --
09:14:30 >> WE WILL FOR BUDGET PURPOSES BASED ON THE INFORMATION FOR
09:14:33 THE VERY LAST MINUTE BEFORE THE MAYOR PRESENTS HAS AN
09:14:36 ESTIMATE, THE ACTUAL, BECAUSE OF THE WAY THAT THE PLAN WORKS
09:14:39 ON CALENDAR YEAR INSTEAD OF FISCAL YEAR.
09:14:43 IT WILL BE BEFORE WE FIGURE AUGUST, SEPTEMBER.
09:14:48 AUGUST, SEPTEMBER.
09:14:48 >>MIKE SUAREZ: TYPICALLY IF WE HAVE OUR BROKER GO OUT AND
09:14:52 LOOK AT WHAT THOSE EXPECTED LOSSES ARE, THEY GO THROUGH ALL
09:14:55 THE PROCESS OF DETERMINING HISTORICAL LOSSES IN THE PAST AND
09:14:58 WHAT THE FUTURE LOSSES ARE GOING TO BE.
09:15:00 EVEN THOUGH IT'S ON A CALENDAR YEAR THEY SHOULD BE ABLE TO
09:15:04 EXTRAPOLATE WHAT THOSE NUMBERS ARE.
09:15:06 IS THERE ANY WAY TO GET THOSE SOONER THAN LATER?
09:15:09 BECAUSE OBVIOUSLY IT'S GOING TO AFFECT WHAT THE TOTAL
09:15:10 AMOUNTS WILL BE PLUS WHATEVER THE DEPARTMENTAL REDUCTIONS
09:15:13 WILL BE.
09:15:13 >> YES, SIR, YOU ARE EXACTLY RIGHT.
09:15:17 AND WE DO WORK WITH THE BROKER, AND THOSE PROJECTIONS ARE
09:15:21 ADJUSTED ON AN ALMOST DAILY BASIS BASED ON THE CLAIMS WHICH
09:15:25 WE OBVIOUSLY DON'T KNOW UNTIL THEY OCCUR.
09:15:27 SO AT THE TIME THAT THE MAYOR DELIVERS THE BUDGET IN JULY,
09:15:31 IT WILL BE BASED ON THE BEST INFORMATION THAT WE HAVE BASED
09:15:33 ON ACTUAL EXPERIENCE FROM OUR CONSULTANT FORECASTING OUT FOR
09:15:40 THE BALANCE OF THE YEAR.
09:15:41 >>MIKE SUAREZ: BECAUSE I THINK THEY STILL DO IT ON A FIVE
09:15:44 YEAR BASIS, RIGHT?
09:15:45 FIVE YEARS BACK FOR EXTRAPOLATING FORWARD?
09:15:48 TYPICALLY THEY DO.
09:15:48 >>SONYA LITTLE: I'M NOT SURE THAT FAR BACK.
09:15:52 I DO KNOW THEY LOOK AT HISTORICAL EXPERIENCE AND THEN MAKE
09:15:56 SOME ASSUMPTIONS FOR THE NUMBERS THAT THEY PROVIDE TO US.
09:15:58 WHATEVER THEY PROVIDE TO US WHEN WE -- SAY WE HAVE TO
09:16:02 ABSOLUTELY STOP WITH OUR ANALYSIS IS WHAT WILL BE INCLUDED
09:16:05 IN THE BUDGET.
09:16:05 >>MIKE SUAREZ: I APPRECIATE IT.
09:16:07 THANKS, CHAIR.
09:16:07 >>FRANK REDDICK: [OFF MICROPHONE]
09:16:15 >>SONYA LITTLE: SO WHAT WE KNOW NOW -- AND YOU ARE ALL
09:16:18 AWARE THAT INSTEAD OF 6% THAT THE TAXABLE VALUE INCREASE
09:16:22 WILL INSTEAD BE 10.19% OVER THE PRIOR YEAR.
09:16:27 THE MARKET PERFORMED VERY WELL FOR OUR PENSION FUND.
09:16:35 SO IT'S GOING TO BE FLAT SO WE WERE ABLE TO ASSUME A ZERO
09:16:38 PERCENT OVER THE PRIOR YEAR'S CONTRIBUTION.
09:16:41 HEALTH CARE, AS I JUST TALKED ABOUT, WE'LL DETERMINE THAT
09:16:45 CLOSER TO OUR JULY DELIVERY OF THE BUDGET.
09:16:48 AND THEN BECAUSE THAT TAXABLE VALUES WENT UP, THE CITY'S
09:16:54 CONTRIBUTION TO OUR CRAs ALSO WENT UP.
09:16:58 SO INSTEAD OF THE 10% THAT WE ASSUMED, THE CONTRIBUTION
09:17:01 WOULD BE 20.2% INTO OUR CRA.
09:17:06 AND THEN AGAIN AS WE TALK ABOUT, WE ARE GOING THROUGH THE
09:17:08 LONG PROCESS OF DETERMINING THE DEPARTMENTAL REDUCTIONS.
09:17:15 SO TO SUMMARIZE WHAT YOU JUST SAW ON WHERE WE STARTED AND
09:17:19 WHAT WE KNOW TODAY AS FACTUAL INFORMATION, THE $13.5 MILLION
09:17:26 SHORTFALL THAT WE STARTED WITH, IN THE BOTTOM PART OF THE
09:17:31 TABLE, ARE ALL THE PLUSES AND MINUSES THAT WILL OCCUR TO OUR
09:17:35 FORECAST.
09:17:36 STARTING OUT, BECAUSE THE PENSION FUND PERFORMED BETTER, WE
09:17:41 CAN INCREASE OUR REVENUE PROJECTIONS BY 1.8 MILLION, AND .9
09:17:46 MILLION RESPECTIVELY.
09:17:47 THIS IS OUR -- BECAUSE OUR CONTRIBUTION WILL GO DOWN IN OUR
09:17:51 FORECAST.
09:17:52 THE INCREASE IN THE TAXABLE VALUE.
09:17:54 WE HAD ALREADY ASSUMED AN INCREASE OVER THE PRIOR YEAR.
09:17:58 NOW THAT THE PROPERTY APPRAISER'S REPORT WAS RELEASED LATE
09:18:02 MAY, WE NOW KNOW THAT WE CAN INCREASE THAT FORECAST IN THE
09:18:06 TAXABLE VALUE REVENUES BY AN ADDITIONAL $7.6 MILLION.
09:18:12 SO WE SAW A SIGNIFICANT INCREASE OVER THE PRIOR YEAR IN OUR
09:18:16 TAXABLE VALUE, OR OUR PROPERTY TAX REVENUE.
09:18:20 WE HAD ALREADY ASSUMED EARLY ON LAST YEAR THAT WE WOULD GET
09:18:26 AN INCREASE.
09:18:27 SO WHAT YOU ARE SEEING HERE IS THE DELTA BETWEEN WHAT WE
09:18:31 ALREADY FORECASTED AND WHAT WE KNOW BASED ON THE 10.19%.
09:18:37 ADDITIONALLY, WE TALKED ABOUT, BECAUSE PROPERTY VALUES WENT
09:18:40 UP, WE HAVE TO MAKE A GREATER CONTRIBUTION INTO OUR CRA, AND
09:18:44 THAT CONTRIBUTION IS 1.8 MILLION.
09:18:46 SO THAT WOULD BE A REDUCTION IN OUR FORECAST REVENUE BECAUSE
09:18:51 IT'S AN INCREASED EXPENSE.
09:18:53 SO WHAT DOES THAT MANY?
09:18:54 BOTTOM LINE IS THAN WHERE WE ARE TODAY, IS THAT WE ARE
09:18:58 WORKING WITH A $5 MILLION SHORTFALL.
09:19:01 SO WE WILL DETERMINE WHERE WE CAN MAKE REDUCTIONS, AND
09:19:08 WHAT'S THE AFFORDABILITY TO ADDRESS SOME OF THE REQUESTS
09:19:10 THAT ARE BEING MADE BY OUR DEPARTMENTS.
09:19:13 SO THAT'S THE PROCESS THAT WILL OCCUR BETWEEN TODAY AND
09:19:17 ONGOING ALL THE WAY THROUGH JULY.
09:19:18 >>CHARLIE MIRANDA: MRS. LITTLE, I JUST WANT TO MAKE SURE,
09:19:23 SOME OF THESE FACTS ARE ACTUAL AND SOME ARE ASSUMPTIONS.
09:19:27 YOU AND I CAN'T CONTROL, THE COUNCIL, THE MAYOR CAN'T
09:19:32 CONTROL THE STOCK MARKET.
09:19:33 SO WHAT HAPPENS ON THE NEGATIVE SIDE THIS ALL GOES WITH
09:19:38 BYE-BYE IN TERMS OF PENSION AND POLICE, RIGHT?
09:19:43 >>SONYA LITTLE: WE HAVE A FIXED CONTRIBUTION AMOUNT FOR 19
09:19:46 ONLY.
09:19:46 AND YOU WILL SEE THAT MOVING FORWARD, WE ARE GOING TO
09:19:50 PROVIDE YOU BE IN ONE OF THE SLIDES THAT COMING UP, WE
09:19:53 REALLY DON'T KNOW.
09:19:54 AND WE HAVE TO MAKE CERTAIN ASSUMPTIONS ON HOW CONSERVATIVE
09:19:58 OR NOT OUR ASSUMPTIONS ARE SO WE CAN PLAN FOR THE NEXT
09:20:01 SEVERAL YEARS.
09:20:02 SO YOU ARE EXACTLY RIGHT.
09:20:03 WE DON'T HAVE ANY CONTROL OVER THAT.
09:20:04 WE DON'T HAVE ANY CONTROL OVER HEALTH CARE COSTS.
09:20:08 HUGE EXPENSES FOR THE CITY.
09:20:09 >>CHARLIE MIRANDA: I WANT TO MAKE SURE THAT THE PUBLIC
09:20:12 UNDERSTANDS THAT WHAT YOU ARE TELLING US IS FACTUAL BASED ON
09:20:14 TODAY'S NUMBERS.
09:20:16 IT COULD CHANGE AT ANY MINUTE.
09:20:17 >> YES.
09:20:19 >>CHARLIE MIRANDA: MIRANDA THAT'S ALL I WANT TO KNOW.
09:20:22 THANK YOU VERY MUCH.
09:20:22 >>HARRY COHEN: JUST TO UNDERSCORE COUNCILMAN MIRANDA'S
09:20:26 POINT, WE'RE 8.5 MILLION TO THE GOOD THIS YEAR BECAUSE OF
09:20:29 ECONOMIC INDICATORS.
09:20:31 SO IN THE SAME WAY THAT OUR ASSUMPTION COULD BE OFF, AND IT
09:20:36 COULD BE WORSE THAN YOU ARE EXPECTING, IT COULD ALSO BE
09:20:39 BETTER THAN WE ARE EXPECTING AND ALMOST EVERY CATEGORY IS
09:20:42 DEPENDENT UPON THE ECONOMY.
09:20:43 THE MESSAGE I GOT FROM THIS ENTIRE PRESENTATION IS THAT WE
09:20:46 ARE COMPLETELY AT THE MERCY OF BOTH THE NATIONAL AND THE
09:20:49 LOCAL ECONOMY, YOU KNOW.
09:20:53 >>SONYA LITTLE: YES, SIR.
09:20:55 AND THE AREAS THAT WE CAN CONTROL, THAT TABLE THAT YOU SAW,
09:21:00 WE HAVE ALREADY BASICALLY IMPLEMENTED OR TAKEN ADVANTAGE OF
09:21:04 THINGS THAT WE CAN CONTROL.
09:21:07 BUT THE THINGS THAT ARE LEFT TO US, WE ARE AT THE MERCY OF
09:21:10 THE ECONOMY AND COSTS THAT -- THAT WE CONTROL TO THE BEST OF
09:21:19 OUR ABILITY.
09:21:21 SO IF WE CAN CONTINUE ON, WE WILL GO RIGHT TO SLIDE 8.
09:21:25 AND THIS IS THE SLIDE THAT WE WERE TALKING ABOUT, COUNCILMAN
09:21:28 MIRANDA, WHERE IT'S REALLY REFLECTIVE OF 2020, SO A YEAR
09:21:37 FROM NOW, THESE ITEMS, THEY CHANGE DRASTICALLY.
09:21:40 WE JUST DON'T KNOW.
09:21:48 SO IF YOU GO TO ROW 2, THE INCREASE IN TAXABLE VALUE, AT THE
09:21:52 FY 2019, WE KNOW FROM THE PROPERTY APPRAISER AS OF TODAY,
09:21:55 BECAUSE WE WILL -- WHAT WE HAVE RECEIVED IS THE PRELIMINARY
09:22:00 EVALUATION, JUST PRIOR TO JULY, ON OR ABOUT JULY 1st, WE
09:22:04 WILL RECEIVE YET ANOTHER EVALUATION.
09:22:07 AND THAT EVALUATION COULD GO UP, IT COULD GO DOWN.
09:22:11 WE HOPE IT GOES UP SLIGHTLY, WHATEVER AMOUNT WE'LL TAKE IT.
09:22:16 SO THE 10.9, GO OVER ONE COLUMN.
09:22:22 IN THE PRIOR SLIDE LAST YEAR, WE WERE ASSUMING A 6% INCREASE
09:22:25 FOR FY 2020.
09:22:27 BUT BECAUSE OF HOW WE PERFORMED THIS YEAR, WE CONSERVATIVELY
09:22:31 ADJUSTED THE FORECAST TO AN 8% INCREASE.
09:22:35 AGAIN WE'LL HAVE TO WATCH THAT AND DETERMINE WHETHER OR NOT
09:22:38 THAT FORECAST WILL GO UP OR DOWN, THE CLOSER WE GET TO FY
09:22:44 20.
09:22:44 THE BOTTOM LINE, OUR TOTAL REVENUES BASED ON THE ASSUMPTIONS
09:22:49 WE HAVE CHANGED TO DATE ARE REFLECTIVE ON LINE 6 AND THEN
09:22:54 LINE 7 REFLECT THE EXPENSES, AND THEN ALL THE WAY TO THE
09:22:59 LAST ROW, INSTEAD OF THE $13 MILLION SHORTFALL, AS OF TODAY,
09:23:05 WE ARE WORKING WITH A $5 MILLION SHORTFALL FOR FY 19.
09:23:10 SO WE ARE FORECASTING OUT THE IMPACT BASED ON THE
09:23:14 ASSUMPTIONS THAT WE HAD FOR FY 20, WE'LL SEE THE RESULTS IN
09:23:20 ANNUAL SHORTFALL OF 17.6 MILLION, IN 2020, WHICH IS THE
09:23:25 SHORTFALL ON REVENUES VERSUS EXPENDITURES.
09:23:28 BUT THE CARRY-FORWARD THE 5 MILLION THAT WE HAVE.
09:23:35 SO WE HAVE TO CHALLENGES MOVING FORWARD.
09:23:40 WE BELIEVE AND THE MAYOR HAS ALREADY INDICATED IN FY 19 WE
09:23:43 ARE GOING TO GET THERE.
09:23:45 WE ARE GOING TO GET THERE.
09:23:47 OUR DEPARTMENTS MAY NOT RECEIVE AS MUCH AS THEY FEEL
09:23:51 NECESSARY, BUT WE HAVE TO FIGURE OUT A WAY TO MAKE IT WORK,
09:23:55 AND WORKING WITH 5 MILLION INSTEAD OF 13 MILLION.
09:24:13 THIS LINE GRAPH STARTING OUT IN, THE 2011, THE RED LINE
09:24:20 BEING EXPENDITURES, THE.
09:24:22 THE GAP IS THE YEARS WE RESERVED OUR FUND TO BALANCE THE
09:24:26 BUDGET.
09:24:27 THE YEARS FOR REVENUES ARE RIGHT ON TOP OF EXPENDITURES
09:24:31 THROUGH REDUCTIONS, AND CUTS IN FIGURING OUT HOW TO INCREASE
09:24:36 REVENUES TO THE BEST OF OUR ABILITY WITH WHAT WE HAVE TO DO
09:24:41 WHERE THE LINES ARE RIGHT ON TOP OF EACH OTHER, REFLECT THAT
09:24:44 WE BALANCE THE BUDGET.
09:24:47 TO THE FAR RIGHT IN THE OUT YEARS IS WHAT YOU SAW ON THE
09:24:50 PRIOR YEARS TO SHOW THE BUDGET, THE FORECAST -- SHORTFALL IN
09:24:56 THE OUT YEARS.
09:24:57 ALL THE WAY THROUGH 2022.
09:25:16 NOW ON OUR GENERAL FUND, AS FAR AS OUR FORECASTS, AND AS FAR
09:25:20 AS OUR PROCESS IS CONCERNED.
09:25:23 SO IF THERE ARE NO QUESTIONS WE CAN MOVE ONTO OUR ENTERPRISE
09:25:28 FUNDS.
09:25:28 >>LUIS VIERA: THANK YOU VERY MUCH FOR YOUR PRESENTATION.
09:25:33 I GUESS THIS WOULD BE PROSPECTIVELY THE LAST YEAR THIS
09:25:38 ADMINISTRATION WILL WE'LL WORK TOGETHER AND THANK YOU FOR
09:25:43 THAT.
09:25:44 JUST AS COUNCILMAN MIRANDA AND COPE ASKED THAT THE $5
09:25:47 MILLION PROJECTED FOR THIS FISCAL YEAR IS BASED ON THIS
09:25:50 YEAR'S ECONOMIC NUMBERS WHICH ARE GENERALLY GOOD, WITH THE
09:25:53 $17 MILLION DEFICIT FOR FISCAL YEAR 2020, WAS THAT BASED ON
09:25:57 TODAY'S PRESENT ECONOMIC NUMBERS, 3.8% UNEMPLOYMENT,
09:26:01 ET CETERA?
09:26:02 OR IS THERE ANY SLOWING DOWN OF THE ECONOMY TAKEN INTO
09:26:06 ACCOUNT FOR THAT?
09:26:08 >>SONYA LITTLE: ALL OF THE INDICATIONS THAT WE RECEIVE ARE
09:26:10 THAT THE ECONOMY WILL CONTINUE AT A SLOW TO MODERATE PACE.
09:26:14 SO ALL OF OUR ASSUMPTIONS ARE CONSERVATIVE BASED ON THAT
09:26:18 SLOW TO MODERATE -- MODERATE PACE EXPECTATIONS BOTH ON THE
09:26:22 REVENUE SIDE AND THE EXPENDITURE SIDE.
09:26:26 ONE OF THE THINGS THAT WHEN IT COMES TO THE CITY OF TAMPA
09:26:30 AND PROPERTY TAX REVENUES, YOU KNOW, THE GROWTH, WE HOPE
09:26:34 THAT WE CONTINUE TO BE SEE THE SIGNIFICANT AMOUNT OF GROWTH
09:26:39 IN THE PROPERTY EVALUATION.
09:26:40 ONE THING THAT WE CAN POINT OUT IS THAT BECAUSE OF "SAVE OUR
09:26:45 HOMES" THE STATE LEGISLATION WITH A CAP OF 3%, THE LESSER OF
09:26:49 EITHER 3% OR CPI, WHEN WE LOOKED AT THE FIGURES THAT CAME IN
09:26:55 FOR FY 19, THE 10.19% INCREASE OVER THE PRIOR YEAR, ALL
09:27:02 HOMESTEADED PROPERTIES WERE CAPPED AT 2.1%.
09:27:06 SO EVEN IF THEIR VALUE INCREASED 20% OVER THE PRIOR YEAR,
09:27:11 THEIR TAXABLE VALUE WAS CAPPED AT 2.1% EQUAL TO CPI.
09:27:17 SO WE SEE A BOOMING ECONOMY, AND THAT'S GREAT FOR THE CITY.
09:27:22 BUT AS FAR AS CITY REVENUES ARE CONCERNED, THEY ARE
09:27:25 COMPRESSED BECAUSE OF SAVE OUR HOMES, AND ALSO THE PENDING
09:27:31 LEGISLATION THAT'S COMING UP ABOUT THE ADDITIONAL HOMESTEAD.
09:27:37 IN THE CHART WE SHOWED YOU FOR 2020, WE HAVE ASSUMED THAT IT
09:27:40 WILL PASS AND THAT'S ALMOST AN ADDITIONAL $5 MILLION HIT TO
09:27:43 THE CITY'S PROPERTY TAX REVENUES.
09:27:47 SO THERE ARE A LOT OF FACTORS THAT ARE INVOLVED, SO WE TALK
09:27:50 ABOUT THE ECONOMY, THE CITY NOT HAVING ANY CONTROL OVER
09:27:54 THAT.
09:27:55 WE ALSO HAVE THESE -- WE HAVE STATE LEGISLATION THAT ALSO
09:28:03 COMPRESSES THE AMOUNT OF REVENUES THAT WE RECEIVE.
09:28:05 >>LUIS VIERA: I THINK IT'S OBVIOUS THAT WHATEVER COUNCIL
09:28:08 MEMBERS ARE HERE NEXT YEAR, WHOEVER THE NEXT MAYOR WILL BE,
09:28:11 THERE'S TOUGH CHOICES THAT COULD EVEN BE MADE TOUGHER BY
09:28:14 UNFORESEEABLE OR MAYBE FORESEEABLE OR NATIONAL ECONOMIC
09:28:18 TRENDS.
09:28:18 WE TALK ABOUT A NATIONAL ECONOMY THAT'S BOOMING AT 3.8%
09:28:21 UNEMPLOYMENT, RUN AWAY GROWTH, BUT ONE OF THE THINGS WE
09:28:25 FORGET ABOUT THE FEARED GOVERNMENTAL IS PUTTING IN A
09:28:30 TRILLION DOLLARS OF RUNAWAY 40 YEAR HIGH ECONOMIC GROWTH,
09:28:34 SOMETHING THAT'S IMPRESSIVE IN TERMS OF ECONOMIC HISTORY.
09:28:38 SO IT'S KIND OF A NATIONAL CONFLICT THAT WE HAVE.
09:28:42 SO GOD ONLY KNOWS WHAT'S GOING TO HAPPEN WITH THE NATIONAL
09:28:45 ECONOMY.
09:28:45 AND IT COULD EVEN ADVERSELY AFFECT THE DECISIONS THAT WE
09:28:48 HAVE TO MAKE HERE ONE, TWO YEARS FROM NOW.
09:28:51 THINGS ARE VERY UNPREDICTABLE IN MORE WAYS THAN ONE
09:28:54 NATIONALLY.
09:28:55 BUT THANK YOU.
09:28:55 >>SONYA LITTLE: YES, SIR.
09:28:57 AND IF I MIGHT ADD ONE ADDITIONAL THING ALONG THOSE LINES IS
09:29:00 THAT OBVIOUSLY MARKET PERFORMANCE IMPACTS US SIGNIFICANTLY.
09:29:05 THAT BEING SAID, THE VOLATILITY IN THE MARKET, ONE DAY, YOU
09:29:08 KNOW, COULD CAUSE, IN THE STOCK MARKET, COULD CAUSE
09:29:13 TREMENDOUS IMPACT ON OUR PENSION FUND.
09:29:14 SO FOR THOSE REASONS, BECAUSE OF ALL OF THE UNCERTAINTIES,
09:29:20 OUR FORECAST WHEN WE STARTED OUT LAST YEAR WERE
09:29:23 CONSERVATIVE.
09:29:24 WE THOUGHT IT BETTER TO ADJUST AS THE INFORMATION AND THE
09:29:27 DATA BECAME AVAILABLE, SO THIS IS WHAT YOU ARE SEEING THE
09:29:30 ADJUSTMENT FOR FY 19.
09:29:33 AS WE START TO FORECAST OUT IN THE LATTER YEARS, WE ARE
09:29:36 CONSERVATIVE FOR THE SAME REASONS.
09:29:38 >>YVONNE CAPIN: ON THE ECONOMY, IT'S NOTHING NEW.
09:29:47 EVERY YEAR, EVERY YEAR THIS BUDGET AND WHAT WE PREDICT IS
09:29:51 BASED ON WHAT'S HAPPENING IN THE ECONOMY.
09:29:53 THIS IS NOTHING NEW.
09:29:55 THIS IS THE SAME THING EVERY TIME.
09:29:57 THE OTHER THING IS ON THE HOME VALUES, I KNOW THE 2.1%.
09:30:02 I'LL GIVE YOU AN EXAMPLE.
09:30:04 WHEN A HOME IS SOLD AND INCREASED, THAT BECOMES THE BASE
09:30:10 BECAUSE THE HOME I SOLD WAS AT $4,000 A YEAR.
09:30:13 WHEN I SOLD IT, IT WENT TO $18,000 A YEAR.
09:30:16 SO THE MORE THEY SELL AND NEW HOMES ARE BUILT, THAT BASE
09:30:23 BECOMES A HIGHER LEVEL.
09:30:24 SO I'M SURE THAT'S TAKEN INTO ACCOUNT.
09:30:32 ANYWAY, WHEN WE TALK ABOUT THE INCREASE THAT IT'S ONLY 2.1%,
09:30:38 THAT WOULD BE WHEN IT'S SOLD THAT BECOMES A NEW BASE.
09:30:43 SO WE DON'T HAVE THAT SAME LOW RATE, BECAUSE EVERY HOME
09:30:49 IS -- WE ARE ALMOST AT 2006 VALUES RIGHT NOW.
09:30:55 AND THAT WAS VERY HIGH BACK THEN.
09:31:00 SO IT SHOULD BE PRETTY GOOD.
09:31:01 >>SONYA LITTLE: YES.
09:31:03 AND TO YOUR POINT, HOMEOWNERS CAN TRANSFER THEIR HOMESTEAD,
09:31:10 SO THAT COULD BE THE CASE, BUT WE ALSO, IN ADDITION TO THE
09:31:14 COMPRESSION THAT WE HAVE FOR SAVE OUR HOMES, WE ALSO HAVE
09:31:17 OUR CRAs AS WELL.
09:31:20 SO I PUT THAT OUT THERE JUST TO MANAGE EXPECTATIONS FOR OUR
09:31:25 FORECAST FOR PROPERTY TAX REVENUES, BECAUSE THOSE ARE ALL
09:31:28 IMPACTFUL ON OUR RECEIPTS FOR PROPERTY TAX REVENUES.
09:31:32 >>YVONNE CAPIN: THERE ARE CONSIDERATIONS.
09:31:36 THANK YOU.
09:31:37 >>SONYA LITTLE: YES, MA'AM.
09:31:40 SO IF WE CAN MOVE INTO OUR ENTERPRISE FUNDS.
09:31:45 IN OUR MAY WORKSHOP, WE TALKED ABOUT THERE BEING MASTER
09:31:50 PLANS CURRENTLY UNDERWAY FOR ALL OF THE ENTERPRISE FUND,
09:31:55 PARKING, SOLID WASTE, WASTEWATER AND WATER.
09:31:58 THE MASTER PLANS WILL LAY OUT ALL OF THE CAPITAL AND
09:32:02 OPERATING NEEDS FOR EACH ONE OF THESE BE ENTERPRISE FUNDS
09:32:09 FOR THE NEXT 10 TO 20 YEARS.
09:32:11 SO THAT INFORMATION IS CURRENTLY UNDERWAY, WELL UNDERWAY,
09:32:15 AND WILL BE FORTHCOMING JUST AS SOON AS IT'S AVAILABLE.
09:32:19 SO THE INFORMATION THAT YOU ARE SEEING HERE FOR THE
09:32:23 ENTERPRISE FUNDS IS, AGAIN, WHAT WE KNOW TODAY.
09:32:26 WE CAN EXPECT HIGH NEEDS, CAPITAL NEEDS OVER THE NEXT 10, 20
09:32:31 YEARS, BECAUSE OF OUR AGING SYSTEMS.
09:32:34 ESPECIALLY IN WATER AND WASTEWATER.
09:32:37 FOR THE PARKING DEPARTMENT BE, LAST MONTH YOU SAW BUDGET
09:32:43 VERSUS 18 PROJECTIONS.
09:32:45 SO WE HAVE ADDED ONE COLUMN FOR OUR 19 FORECAST.
09:32:49 AGAIN, BASED ON WHAT WE KNOW.
09:32:51 AND IT PROVIDES FOR EACH ONE OF THESE ENTERPRISE FUNDS, THE
09:32:56 REVENUES, EXPENDITURES, ANY DEBT, AND CAPITAL PROJECT
09:33:00 EXPENSE.
09:33:00 THAT'S OUR PAY GO PROJECT.
09:33:03 SO WE OBVIOUSLY HAVE OUR FIVE YEAR CAPITAL PLAN FOR EACH ONE
09:33:06 OF THESE.
09:33:07 AND WE HAVE BUILT OUT CERTAIN PROJECTS THAT AS REVENUES
09:33:10 COMING IN, AND COVER OUR OPERATING EXPENSES, COVER OUR DEBT
09:33:14 SERVICE, THAT WE USE CERTAIN REVENUES FOR PAY GO CAPITAL
09:33:20 PROJECTS.
09:33:21 SO THE BOTTOM LINE SHOWS BASICALLY WHAT IS BEING USED A FUND
09:33:27 BALANCE TO ADDRESS ALL OF THOSE NEEDS.
09:33:30 AFTER WE HAVE MET OUR RESERVE REQUIREMENTS.
09:33:34 IN THE CASE OF THE PARKING DEPARTMENT, WE'LL USE $600,000
09:33:38 FROM THE PARKING DEPARTMENT'S FUND BALANCE, NOT GENERAL
09:33:41 FUND.
09:33:42 FROM THE PARKING DEPARTMENT'S FUND BALANCE TO MEET THEIR
09:33:46 NEEDS.
09:33:49 FOR SOLID WASTE, WE ALREADY SHARED THE PROJECTIONS FOR 18
09:33:57 AND NOW 19 BASED ON WHAT THE DEPARTMENT HAS PROVIDED.
09:34:01 AND THE AVAILABLE AFTER MEETING RESERVE FUNDS, FUND
09:34:06 REQUIREMENTS FOR THE SOLID WASTE DEPARTMENT USING
09:34:09 $3.2 MILLION OF THEIR EXISTING FUND BALANCE.
09:34:13 AND I HAVE TO POINT OUT THAT THE PLAN THAT WE HAVE, THE IFS
09:34:17 PLAN THAT WE HAVE FOR EACH ONE OF THESE ENTERPRISE
09:34:21 DEPARTMENTS, WE HAVE IN SOME CASES, BECAUSE OF THE AGE OF
09:34:25 THE SYSTEM, IF WE HAVE A 60-DAY REQUIREMENT UNDER OUR BOND,
09:34:31 COVENANTS, A 60-DAY REQUIREMENT OF RESERVES FOR OPERATING
09:34:35 AND MAINTENANCE, WE HAVE PUT MORE IN THERE BECAUSE OF THE
09:34:39 AGE OF THE SYSTEM, AND AS YOU KNOW, WITH OUR WATER AND
09:34:44 WASTEWATER DEPARTMENT, THAT'S EXTREMELY IMPORTANT BECAUSE OF
09:34:47 UNFORESEEN NEEDS THAT MAY OCCUR.
09:34:49 >>HARRY COHEN: YOU ARE THREE QUARTERS OF THE WAY THROUGH
09:34:57 THE NEXT ONE IS THE WORST ONE OF ALL, THE WATER SLIDE.
09:35:00 AND I WANTED TO ASK YOU COLLECTIVELY, WHAT IS THE STATE OF
09:35:03 THE RESERVES OF EACH OF THESE SYSTEMS ARE? DO WE HAVE --
09:35:07 ARE -- DO WE HAVE WITH THESE PROJECTIONS ENOUGH MONEY IN THE
09:35:13 RESERVES? AND WHY PARTICULARLY ARE THE WASTEWATER AND WATER
09:35:16 RESERVES NUMBERS SO BAD IN FISCAL YEAR 19? IN TERMS OF THE
09:35:21 DECREASED FUND BALANCE?
09:35:24 >>SONYA LITTLE: SO THIS IS PART OF THE PLAN FOR THE WATER
09:35:26 AND WASTEWATER DEPARTMENT.
09:35:27 AND THIS IS NOT THE BALANCE.
09:35:30 THIS IS WHAT WE HAVE PLANNED FOR TO USE MONEY.
09:35:34 WE HAVE BEEN KIND OF SAVING TO MEET SOME OF THEIR MAJOR
09:35:37 CAPITAL --
09:35:39 >>HARRY COHEN: I GUESS MY QUESTION IS, IS THE BALANCE STILL
09:35:41 GOING TO BE SUFFICIENT TO UPHOLD THE BOND RATINGS ONCE IT
09:35:45 TAKES THESE HITS, PARTICULARLY THE WATER ONE?
09:35:48 >>SONYA LITTLE: ABSOLUTELY.
09:35:49 AND BASICALLY, THIS DOES NOT INCLUDE ANYTHING THAT WILL COME
09:35:53 OUT OF THE MASTER PLAN.
09:35:55 THIS INCLUDES THE NEXT FIVE YEARS CIP NEEDS FOR -- LET'S
09:36:03 JUST USE THE WATER DEPARTMENT IF I COULD BRING UP THE
09:36:05 PRESENTATION AGAIN, AND WE GO TO SLIDE 14.
09:36:12 IF WE LOOK AT 19, OUR REVENUES COVER OUR EXPENDITURES.
09:36:22 AND THEN WE HAVE A NET BALANCE OF ALMOST $44 MILLION.
09:36:28 THE SYSTEM PAYS ITS OWN DEBT SERVICE, 16.9 MILLION.
09:36:32 AND THEN THEY HAVE CAPITAL PROJECT EXPENSES OF 75 MILLION.
09:36:37 THAT 75 MILLION WE HAVE BEEN SAVING FOR THAT FOR THE LAST
09:36:40 COUPLE OF YEARS BECAUSE WE KNEW THESE EXPENSES WERE GOING TO
09:36:43 COME UP.
09:36:43 SO BASICALLY WHAT THIS CHART FOR ALL OF THE ENTERPRISE FUNDS
09:36:48 SHOWS IS HOW MUCH OF THE FUND BALANCE THAT --
09:36:53 >>HARRY COHEN: SO WHAT YOU ARE SAYING IS THIS WAS A PLANNED
09:36:55 DRAW-DOWN ON MONEY THAT WAS PLACED IN RESERVES FOR THE
09:36:59 PURPOSE OF FUNDING THESE CAPITAL PROJECTS?
09:37:03 >>SONYA LITTLE: RIGHT.
09:37:03 INSTEAD OF ISSUING DEBT, WE BUILT A PLAN WHERE WE CAN PAY
09:37:08 FROM AVAILABLE REVENUES OF THE SYSTEM, AFTER PAYING ALL THE
09:37:12 EXISTING OPERATING EXPENSES, ALL THE DEBT, AND FUNDING THE
09:37:17 RESERVES TO THE MAXIMUM, AND IN SOME CASES A LITTLE BIT
09:37:21 MORE, BECAUSE OF OUR TREMENDOUS NEEDS.
09:37:24 THIS IS WHAT WAS LEFT OVER TO PAY CASH FOR CERTAIN PROJECTS.
09:37:30 AGAIN, THIS DOES NOT ADDRESS WHAT MAY COME OUT OF THE MASTER
09:37:34 PLAN FOR THE NEXT 10 TO 20 YEARS.
09:37:37 SO WE WILL HAVE SOME ADDITIONAL DISCUSSION THAT WILL BE
09:37:40 NEEDED ONCE WE GET THAT MASTER PLAN COMPLETED.
09:37:42 >>CHARLIE MIRANDA: MRS. LITTLE, THANKS AGAIN FOR YOUR
09:37:47 SPECIALTY.
09:37:49 A JOB VERY WELL DONE.
09:37:51 BUT IN WATER AND WASTEWATER, IT'S TWO DEPARTMENTS THAT
09:37:54 ALTHOUGH THEY DO A GREAT JOB AND A VERY REASONABLE RATE
09:37:59 THE PROBLEM I SEE HERE IS THAT IN TODAY'S NEEDS, WITHOUT ANY
09:38:02 EXTRAS, I THINK WE NEED ONE BILLION DOLLARS JUST TO MEET THE
09:38:07 STANDARDS OF THE DAY.
09:38:07 IF YOU LOOK AT THE INFRASTRUCTURE NEEDS OF UNDERGROUND WHICH
09:38:10 IS NOT GLAMOROUS BECAUSE IT'S NOT LIKE DRIVING NEW EQUIPMENT
09:38:14 AND YOU CAN SEE IT AND APPRECIATE IT BECAUSE YOU SEE IT DRAW
09:38:16 DOWN TO NOTHING, YOU CAN'T SEE AN UNDERGROUND ITEM.
09:38:19 THEREFORE, THE PUBLIC IS NOT FULLY AWARE OF WHAT'S GOING ON
09:38:23 UNDERGROUND.
09:38:23 AND AS I UNDERSTAND IT, ALTHOUGH WE SELL WATER TWO DOLLARS
09:38:31 AND NINE CENTS, SAY FOR 750 GALLONS, RIGHT AROUND, THAT'S
09:38:35 WONDERFUL.
09:38:35 VERY GOOD RATE FOR VERY GOOD -- ONE OF THE BEST WATERS IN
09:38:38 THE STATE IF NOT IN THE COUNTRY. HOWEVER, WE HAVE 6 TO 8
09:38:43 MAIN WATER BREAKS, THE MOST RECENT ONE WHICH THE MEDIA THERE
09:38:47 ON ROME AND HILLSBOROUGH AVENUE.
09:38:49 BUT WE DON'T HAVE AS I UNDERSTAND IT A FEE INCLUDED SO THAT
09:38:55 WE CAN PERPETUATE AND SAVE MONEY LONG-TERM MEANING THIS.
09:38:59 WHEN WE DO PROJECTIONS WE SAY WHAT IT'S GOING TO COST HALF A
09:39:03 BILLION DOLLARS.
09:39:05 KNOW, IT'S HALF A BILLION WITHOUT THE INTEREST AND THE
09:39:08 INTEREST IS ANOTHER HALF A BILLION EQUALS ONE BILLION.
09:39:11 SO WE DON'T DO THAT.
09:39:13 AND I ALWAYS SAY, I'M NOT A CONSERVATIVE AND I'M NOT A
09:39:18 LIBERAL.
09:39:18 I CALL MYSELF KIND OF A REALISTIC GUY.
09:39:21 SOMETIMES I MAKE MISTAKES.
09:39:23 SOMETIMES I DON'T.
09:39:23 I'M HUMAN.
09:39:24 HOWEVER, THAT BEING SAID, IF THERE WAS A SET-ASIDE FOR NOT
09:39:31 ROW PAIRS BUT FOR REPLACEMENT AT A HIGHER LEVEL, THE REPAIRS
09:39:34 COSTS GO DOWN, THE INTEREST WOULD BE ZERO, BECAUSE YOU HAVE
09:39:38 THE MONEY TO START BUILDING IF YOU GO ONE YEAR LATER, IF YOU
09:39:41 SET ASIDE, SAY, 250,000 COMMERCE AT 3 OR $4 A MONTH, GET A
09:39:47 MILLION A MONTH SET ASIDE AND IN 12 MONTHS YOU HAVE $12
09:39:51 MILLION AND YOU CAN START THE OPERATION ON REPLACING, NOT
09:39:54 REPAIRING.
09:39:55 WHICH IS A DIFFERENCE.
09:39:57 IN ESSENCE YOU SAY 100% OF COST WHEN YOU LOOK OUT, YOU DON'T
09:40:01 HAVE TO GO -- MAYBE I'M THINKING WAY OUT OF THE BOX BUT I'M
09:40:07 NOT A NORMAL GUY.
09:40:08 >>SONYA LITTLE: NO, SIR, I THINK YOU ARE RIGHT ON TARGET.
09:40:10 I THINK YOU ARE RIGHT ON TARGET.
09:40:12 AND WHAT THE 75 AND POINT 3 MILLION DOLLARS REPRESENTS IS
09:40:16 SOME REPLACEMENT.
09:40:18 WHAT THE SYSTEM CAN AFFORD AFTER FILLING ALL OF THOSE
09:40:22 BUCKETS, THE OPERATING, DEBT SERVICE, AS WE KNOW IT,
09:40:27 ADDRESSING SOME OF THOSE CAPITAL NEEDS THAT YOU ARE SPEAKING
09:40:29 ABOUT, COUNCILMAN.
09:40:31 BUT WHAT THE MASTER PLAN WILL TELL US IS BASICALLY WHAT THIS
09:40:36 PLAN WILL NOT BE ABLE TO ACCOMMODATE BECAUSE OF THE NATURE
09:40:41 OF THE REPLACEMENT.
09:40:43 SO TODAY I CAN'T TELL YOU WHAT THAT LOOKS LIKE.
09:40:46 WE DO KNOW THAT OVER THE NEXT 10 TO 20 YEARS, THE NEEDS ARE
09:40:51 SIGNIFICANT FOR THIS.
09:40:53 BUT WE DON'T KNOW HOW IT'S GOING TO PAN OUT AS FAR AS HOW WE
09:40:56 SCHEDULE IT.
09:40:59 >> YOU ARE RIGHT.
09:41:00 IT'S NOT GOING TO GET BETTER.
09:41:01 IT'S GOING TO GET WORSE.
09:41:02 >>SONYA LITTLE: RIGHT.
09:41:03 SO WE ARE MOVING QUICKLY.
09:41:05 WE HAVE THE OUTSIDE ENGINEERS, OUR INTERNAL ENGINEERS,
09:41:08 WORKING VERY, VERY HARD TO COMPLETE THE MASTER PLAN SO THAT
09:41:12 WE CAN MOVE FORWARD WITH THE FEASIBILITY ANALYSIS, HOW DO WE
09:41:16 AFFORD TO MEET THE NEEDS OF ALL OF OUR ENTERPRISE FUNDS?
09:41:21 >>CHARLIE MIRANDA: THANK YOU, CHAIRMAN.
09:41:24 >>SONYA LITTLE: SO WE WILL COME BACK TO YOU JUST AS SOON AS
09:41:27 WE GET THAT ALL SQUARED AWAY.
09:41:33 SO WE TALKED ABOUT WATER.
09:41:34 AND THAT LEAVES US WITH OUR BUDGET CALENDAR.
09:41:38 THIS YEAR, COUNCIL WAS ABLE TO AUTHORIZE OUR UPCOMING
09:41:44 MAYOR'S BUDGET PRESENTATION FOR JULY 19.
09:41:48 AND THE FIRST AND SECOND PUBLIC HEARINGS, BECAUSE OF THE
09:41:52 SCHOOL BOARD AND THE COUNTY HAVE ALREADY SET THOSE DATES, SO
09:41:56 THE CITY'S DATES ARE FIRM RIGHT NOW.
09:42:00 AND AS I MENTIONED EARLIER, WE ARE CONTINUING WITH THE
09:42:03 PROCESS, COMPLETING THE BUDGET ALL THE WAY THROUGH JULY
09:42:08 19th.
09:42:08 >>FRANK REDDICK: QUESTIONS BY COUNCIL?
09:42:15 ALL RIGHT.
09:42:16 ANYTHING ELSE?
09:42:17 >>SONYA LITTLE: NO, SIR.
09:42:18 THANK YOU VERY MUCH.
09:42:18 >>FRANK REDDICK: ALL RIGHT.
09:42:20 THIS IS A WORKSHOP.
09:42:22 AND WE WILL GO TO PUBLIC COMMENTS.
09:42:24 I WANT TO REMIND YOU THAT YOU CAN ONLY SPEAK ON THE BUDGET
09:42:28 PRESENTATION.
09:42:29 SO ANYONE THAT WISHES TO COME UP AND SPEAK ON THE BUDGET
09:42:32 PRESENTATION AT THIS TIME.
09:42:36 THOSE ARE THE ONLY PUBLIC COMMENTS WE'LL ACCEPT.
09:42:38 >>CHARLIE MIRANDA: MOVE TO CLOSE THE WORKSHOP.
09:42:41 >> MOVED BY MR. MIRANDA.
09:42:43 SECONDED BY MR. MANISCALCO.
09:42:45 ALL IN FAVOR?
09:42:46 OPPOSED?
09:42:46 ALL RIGHT.
09:42:48 MR. SUAREZ, ANY NEW BUSINESS?
09:42:50 >>MIKE SUAREZ: NO, SIR.
09:42:52 >>HARRY COHEN: NO.
09:42:53 >>GUIDO MANISCALCO: NO.
09:42:55 >>YVONNE CAPIN: SOMETHING IS COMING UP JULY 19th AND I
09:43:01 AM NOT GOING TO BE HERE AND I CAN'T REMEMBER.
09:43:06 BESIDES THE BUDGET HEARING.
09:43:08 THAT WAS NOT -- IT WAS SOMETHING ELSE THAT WE WERE GOING TO
09:43:13 DO. I'M SORRY, I'LL BRING IT UP LATER.
09:43:15 I CAN'T REMEMBER.
09:43:15 >> [OFF MICROPHONE]
09:43:22 >>YVONNE CAPIN: THAT'S IT.
09:43:28 ANYWAY, I WILL NOT BE HERE JULY 19th.
09:43:32 NOTHING ELSE.
09:43:33 >>CHARLIE MIRANDA: THANK YOU, MR. CHAIRMAN.
09:43:41 I WANT TO SAY THANKS TO THE TAMPA WATER DEPARTMENT FOR THE
09:43:44 GREAT JOB THEY DID ON THAT WATER MAIN BREAK ON NORTH
09:43:48 HILLSBOROUGH. CHUCK WALTERS AND THE CREW OUGHT TO BE
09:43:52 CONGRATULATED.
09:43:52 THEY SAVED A LOT OF MONEY BY DOING IT THEMSELVES.
09:43:54 >>LUIS VIERA: WITH AN UPCOMING ELECTION AND THE EXCITEMENT
09:43:59 OF ELECTION I WOULD LIKE FOR TAMPA CITY COUNCIL ATTORNEY
09:44:01 MARTIN SHELBY TO DRAFT A RESOLUTION SUPPORTING THE
09:44:05 PRINCIPLES BEHIND FLORIDA AMENDMENT 4, VOTING RIGHTS
09:44:07 RESTORATION FOR FELONS INITIATIVE, TO AUTOMATICALLY RESTORE
09:44:11 THE RIGHT TO VOTE FOR PEOPLE WITH PRIOR FELONY CONVICTIONS
09:44:14 EXCEPT THOSE CONVICTED OF MURDER OR FELONY SEXUAL OFFENSE.
09:44:17 UPON COMPLETION OF THEIR SENTENCE.
09:44:19 ABOUT 10% OF VOTING AGE FLORIDIANS, OVERALL 1.5 MILLION
09:44:24 FLORIDIANS ARE DENIED THE RIGHT TO VOTE, AND ONE IN FOUR
09:44:27 INDIVIDUALS NATIONALLY WHO ARE UNABLE TO VOTE BECAUSE OF
09:44:31 FELONY CONVICTIONS RESIDE IN THE STATE OF FLORIDA.
09:44:33 SO I THINK THAT'S SOMETHING THAT WE SHOULD PUT OUR VIGOR
09:44:37 BEHIND.
09:44:42 MR. SHELBY, WHAT DO YOU THINK, TWO WEEKS?
09:44:44 >>MARTIN SHELBY: [OFF MICROPHONE]
09:44:50 >>LUIS VIERA: OKAY.
09:44:51 >> SECOND.
09:44:53 >>FRANK REDDICK: MOTION FROM MR. VIERA.
09:44:56 SECOND BY MR. COHEN.
09:44:57 ALL IN FAVOR?
09:44:59 OPPOSED?
09:45:00 ALL RIGHT.
09:45:03 MOTION TO RECEIVE AND FILE FROM MR. SUAREZ, SECONDED BY MR.
09:45:07 MANISCALCO.
09:45:08 ALL IN FAVOR?
09:45:10 WE'LL STAND ADJOURNED FOR FIVE MINUTES SO WE CAN MAKE THE
09:45:12 CHANGEOVER.
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