JULY 25, 2024 11:00 a.m. - WORKSHOP and CITY MANAGER'S BRIEFING
CITY GOVERNMENT
OFFICIAL PROCEEDINGS
OF THE MAYOR AND ALDERMEN
SAVANNAH, GEORGIA
The work session and City Manager’s briefing was held at 11:03 a.m., in the City Council Chambers. Mayor Johnson called the meeting to order, welcomed back Ald. Miller Blakely, and extended condolences to her and her family. Mayor Johnson also acknowledged Ald. Wilder-Bryan is out of town and will not be with us today, and Ald. Palumbo and Ald. Purtee are in town, but joining us later for the regular meeting, so the Board Appointments will be addressed at the next meeting, August 8th. Then he recognized Alderwoman Bell to offer a prayer.
PRESENT:
Mayor Van R. Johnson, II, Presiding
Alderwoman Carolyn H. Bell, At-Large, Post 1
Alderwoman Alicia Miller Blakely, At-Large, Post 2
Alderwoman Bernetta B. Lanier, District 1
Alderman Detric Leggett, District 2
Alderwoman Dr. Estella Edwards Shabazz, District 5 - Mayor Pro Tem
ABSENT:
Alderwoman Linda Wilder-Bryan, District 3 - Vice Chair
Alderman Nick Palumbo, District 4 - Chairman
Alderman Kurtis Purtee, District 6
ALSO, PRESENT:
Assistant City Manager Heath Lloyd
Chief of Staff Daphanie Williams
Deputy City Attorney Jen Herman
Clerk of Council Mark Massey
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Assistant City Manager Lloyd identified the purpose of the presentations to follow, then introduced CFO David Maxwell. CFO Maxwell introduced Trey Scott, partner with Mauldin & Jenkins, and he indicated a copy of the Annual Comprehensive Financial Report (ACFR) was left on the dais for each of the members of the City Council.
Mr. Scott stated he was pleased to present the results of the 2023 Audit, and he noted the following as contained in his PowerPoint:
- History of Mauldin & Jenkins and service areas
- Engagement Tem = Large Regional Firm
- Audit Opinion - Clean/unbiased Opinion
- Award for ACFR
- Entity-Wide Financial Statements
- Capital Assest Activity - Government Wide - Last 5 Years
- General Fund Financial Statements
- Revenues & Expenditures Over the Past 5 Years
- Water/Sewer Financial Statements
- Pension & OPEB Trust Funds Financial Statements (Other Post Employment Benefits)
- Pension and OPEB Funding - Past 5 Plan Years
- Other Communications
- New Financial Reporting GASB Standards (Government Accountability Standards Board)
- Newsletters, Free Continuing Education, Closing
Mayor Pro Tem Dr. Shabazz:
- Requested the positioning of the City with regard to the pension, as compared to others.
- Commended the City's financial team/departments in receiving a clean opinion.
Mayor Johnson:
- Asked if the fund balance of the city is sufficient. (3 to 6 months of expenditures)
- Asked what is needed to be done, in order for the City to get to the most optimal (ideal) credit rating.
Ald. Miller Blakely:
- Inquired about recent increases for retirees. (13th check)
- Inquired about further increasing benefits to the retirees. (Referred to the actuary who manages the plan)
- Stated the city is in very good financial standing.
Mayor Johnson thanked Mr. Scott for his presentation and partnership.
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Assistant City Manager Lloyd stated the prior presentation was a look back, and now we are going to look forward to detail how we are progressing for 2024. He stated the city is on a solid foundation and doing well, but there are external factors which impact the city. With growth, there is a need for staff to grow (recently 70 new FTEs - full-time equivilants). We are also impacted by legislative changes. Then Mr. Lloyd introduced Office of Management & Budget Senior Director Melissa Carter.
Mrs. Carter presented the following:
- FY24 Adopted Budget Recap
- State of the Budget
- Where Does the Money Come From?
- General Fund - All Revenues - January through June
- General Fund - Revenue Variances - 2023 vs 2024
- General Fund Share of Hotel/Motel Taxes & Sales Taxes - January through June
- Legislative Changes Impacting Local Government Revenue - Development and Recorder's Court Fees
- General Fund Expenditure Performance - 2022 - 2024 Year-over-Year
- General Fund Expenditure Performance - January through June 2019 - 2024
- Enterprise Funds-Revenue - June 2023 vs June 2024
- Enterprise Funds-Expenditure Performance - June 2023 vs June 2024
- Property Tax Millage Rate History
- Property Tax Revenue
- 2024 Millage Rate Utilization
- 2024 Millage Rate Timeline
- Input from Citizens - Community Engagement opportunities
Assistant City Manager Lloyd detailed that investments were made with the FY2024 Budget, including public safety, recreation, and housing.
Mayor Johnson:
- Started by thanking everyone.
- Stated the budget is a moral document, and a road map.
- Asked our current vacancy rate across the city. (15%, the City budgeted based on turnover vs. a vacancy rate, since those funds were needed to move employees up within the pay band)
- In looking at defunding the city's current relationship with Recorder's Court, advised the City Attorney and the City Manager are working on what would be required to establish a Municipal Court.
- Stated we need to look at establishing a stormwater enterprise fund to address flooding.
- Requested Council to consider investments in drainage, Vision Zero/traffic calming and pedestrian safety, and public safety.
- Chosen to use growth to support Council priorities, as identified above in the amount of $7.2M, non-reoccuring.
Assistant City Manager Lloyd stated staff will be bringing to the City Council a recommendation to support conducting/engaging-in a study for a Stormwater Utility Fee in the very near future, possibly this August, for the residents to help with improving the city's stormwater management.
Mayor Pro Tem Dr. Shabazz:
- Agreed with what is being done to study this issue, so the public will understand what is being done, and why we are doing it.
- Stated this approach which she is in full support, helps to not focus only on property taxes.
- Agreed with keeping the millage rate the same and focusing on the 3 buckets of drainage, transportation safety/Vision Zero (traffic calming), and public safety.
- Gave kudos to staff with respect to focusing on the $80M capital projects, as identified by the City Council.
- Asked for clarification of a few items from Mrs. Carter's slide presentation.
Assistant City Manager clarified the following:
- Staff has already modified the Revenue Ordinance to accommodate the legislative changes. It was approved by the Mayor and Aldermen with an effective date of July 1. They will need more time to review what the long-term impact may be, and report that back to Council.
Ald. Leggett:
- Requested to see how much the City is receiving from contracts/leases with OVG (enMarket), Ghost Pirates (Civic Center), and Savannah Bananas (Grayson Stadium).
Assistant City Manager Lloyd indicated they will continue to use the MLK Jr. Arena, as long as they can, understanding the deficiencies as previously noted. With respect to the OVG contract, OVG is required to perform an audit, which the city has received.
Ald. Miller Blakely:
- Stated she is thankful for the study on what can be done for stormwater improvements.
- Asked if the city has started talking to the County regarding new Recorder's (municipal) Court ideas.
- Asked about the general fund "other expenditures," not included within another existing category.
- Asked about the changes regarding HB461 pertaining to Development Fees, before and after.
- Asked about the completion of the compensation study. (not completed, but to be finished later this year)
Ald. Lanier:
- Talked about Stormwater Management, flood experiences, maintenance neglect, and the utility fee study.
- Discussed previous committments to equity policies, due to entertaining the potential for a new fee.
- Expressed she does not see the routine maintenance and drainage trucks, as often as she should see them.
Mayor Johnson:
- Added our responsibility to pick up trash.
- Concerned about the blowers, blowing down the street/sidewalk.
- Stated to change behavior we might need to start ticketing folks, contractors, etc. (enforcement).
- Suggested the city start a campaign regarding clippings, clogged drains, etc. (education).
- Asked how many employees, as of July 1st, are eligible for retirement.
- Asked the City Manager's office to send a letter to contractors to remind them that violations will be cause for revocation of their contract, with a copy going to the City Council.
Ald. Miller Blakely:
- Noticed city contractors who maintain the medians and parks blowing grass into the drains. Can a screen be placed there?
- Asked about Board Appointments, namely the Traffic Calming Committee. Her appointee, David Minor, no longer lives in Savannah. She indicated her interest to be appointed in his place.
Mayor Pro Tem Dr. Shabazz:
- Stated she is glad to have this conversation regarding debris and the catch basins, due to concerns shared by one of her district constituents.
- Invited everyone to go to the city website to offer input (community engagement) on budget priorities.
Mayor Johnson thanked everyone, and indicated inclement weather is expected later this evening.
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