The Board of County Commissioners of Brevard County, Florida, met in special session on July 9, 1996, at 1:38 p.m. in the Government Center Florida Room, Building C, 2725 Judge Fran Jamieson Way, Melbourne, Florida. Present were: Chairman Mark Cook, Commissioners Truman Scarborough, Randy O?Brien, Nancy Higgs, and Scott Ellis, County Manager Tom Jenkins, and County Attorney Scott Knox.

OVERVIEW, RE: BUDGET PROCESS

County Manager Tom Jenkins advised in the past 3 years, the County eliminated 51 position and created 60 new ones in service areas. He stated as the Board has eliminated discretionary appropriations, the percentage of the budget being spent each year has gone up, resulting in less money left over at the end of the year; and advised of the impact to FY 1997 budget, including mandated increases and program changes.

Commissioner O?Brien inquired about refinancing of the Government Center debt. Chairman Cook noted the Board has taken a position on that previously. Commissioner Ellis noted the issue came before the Board prior to Commissioner O?Brien being elected; and explained that refinancing would pull out the final payment which is in escrow and replacing it with an insurance policy.

Commissioner Scarborough noted the preliminary budget contemplates the refinancing, but the Board has not approved that action. Mr. Jenkins stated the budget is predicated on that assumption; and if that action is not taken, there will be a need for adjustment. Commissioner Ellis suggested taking a straw vote at this time.

Chairman Cook stated he does not want to refinance. Commissioner Scarborough indicated a desire to look at the total budget. Commissioner Ellis stated it will take weeks to go through the individual budgets, and if the Board informs Mr. Jenkins today that it will not refinance the COP?s, the budget can be changed to reflect that. Commissioner Scarborough outlined his concerns. Discussion ensued on the issue of refinancing the Certificates of Participation.

Commissioner Ellis stated he will not vote to refinance the COP?s under any circumstances. Commissioner Higgs inquired if Commissioner Ellis would support putting it on the ballot; with Commissioner Ellis responding it has already been on the ballot. Discussion ensued on the original ballot language and why people did not support it. Chairman Cook concurred with Commissioner Ellis. Commissioner O?Brien concurred with Commissioner Scarborough; and suggested having a future Agenda item. Commissioner Ellis advised this is a critical issue to the budget; and if the Board makes the determination to not refinance the COP?s, there are a number of budgets which will have to be changed.

Motion by Commissioner O?Brien, to direct that discussion on refinancing of the Certificates of Participation be put on the Agenda of the July 16, 1996 meeting.

Commissioner Scarborough indicated he is not ready to say what has to be eliminated until he gets answers to his concerns.

Chairman Cook stated it will have a big impact if the Board decides not to do it; and he is not opposed to addressing it on July 16, 1996 so staff will know how to reconfigure the budget, if necessary. Discussion ensued on whether the Board will be ready to make a determination at that time.

Chairman Cook seconded the motion; and stated the sooner this issue is taken out of the equation, the better.

Commissioner Scarborough stated he will support the motion, but if he does not have answers by next week, he will move to table the issue.

Chairman Cook called for a vote on the motion. Motion carried and ordered. Commissioners Scarborough, O?Brien, Cook, and Higgs voted aye; Commissioner Ellis voted nay.

Commissioner O?Brien stated the document says avoiding tax increase will require elimination or transfer of 50.5 full time equivalent positions; it also says 25 of the 50.5 positions to be eliminated will be occupied; and inquired about the discrepancy. Chairman Cook explained 25 of the positions to be eliminated are open and 25 are currently occupied; and if the Board endorsed the action, 25 people will have to be transferred or laid off.

Commissioner O?Brien inquired about the statement that it is the Board?s priority to provide additional funding for the County?s drainage needs through a transfer of Local Option Gas Tax funding from bikeways and pedways to drainage. Discussion ensued on money from Road and Bridge MSTU?s, transfer of money from the General Fund to Road and Bridge, the legality of transfer of Local Option Gas Tax funds to drainage, the impact on individual projects, the decision concerning two or three-person crews on fire engines, and how to increase the millage cap.

Commissioner O?Brien inquired about including increases or decreases in the budgets of the Constitutional Officers on the TRIM notice. County Attorney Scott Knox advised there is a provision which calls for the millage to be set forth; and within that language the Board could take the desired action by a separate notice that would go out with the TRIM notice. Chairman Cook stated the Board should pursue that. Discussion ensued on TRIM notices, separate mailouts, and insertions with the TRIM notice.

Motion by Commissioner O?Brien, seconded by Commissioner Ellis, to direct that a notice of the Constitutional Officers? budgets to be included in the TRIM Notices come to the Board for final approval. Motion carried and ordered unanimously.

Commissioner O?Brien inquired about the increase in users? fees for the Office of Natural Resources.

Ms. Wall explained the changes in the budget format. She stated the Board approved salary increases for County employees last year; and the effect on the General Fund for next fiscal year is $922,500 and for self-supporting agencies, it is $99,400. She stated debt service payments to the General Fund are related to the sales tax debt of 1994 which requires greater reserve for future interest payments. She stated the increase in Medicaid and Baker Act funding relates to the State requiring the County to pick up a portion of the HMO. Mr. Jenkins noted that is $540,000 in new cost. Commissioner Ellis inquired about the legislation concerning unfunded mandates, and suggested the County refuse to pay. Chairman Cook requested the County Attorney research the issue. County Attorney Scott Knox advised an exception to that is if something has a legislative vote greater than 2/3. Commissioner O?Brien inquired about Baker Act clients under the age of 21. Chairman Cook requested all Commissioners receive information. Discussion ensued on the figures.

Ms. Wall advised the additional appropriation for drainage is the result of a June 4, 1996 Board action approving purchase of capital equipment for Road and Bridge; and delineated the appropriations. Mr. Jenkins advised of the over reliance on the construction crew to fund Road and Bridge maintenance; and explained the steps taken to correct the situation. Chairman Cook inquired why it was shifted from Gas Tax to General Fund; with Mr. Jenkins responding it was a Board policy decision. Commissioner Ellis explained why it was changed.

Ms. Wall stated the other significant issue is the operation of the Harry T. and Harriette V. Moore Justice Center. Chairman Cook inquired about the debt payment; with Ms. Wall responding that has been paid.

Commissioner Ellis inquired what is the total; and stated it is not all General Fund. Mr. Jenkins noted most of it is General Fund. Commissioner Ellis stated some of the Road and Bridge equipment could be paid from the MSTU; with Ms. Wall responding that has not been done. Chairman Cook inquired if that is a policy decision. Commissioner Ellis recommended the cost of the equipment be split between the MSTU and the General Fund. Chairman Cook stated that is something that needs to be looked at. Discussion ensued on where the funding should come from.

Commissioner Scarborough requested a revenue overview showing the percentage of increase. Discussion ensued on various revenue sources, setting priorities, operational costs, and setting the reserve. Commissioner Ellis advised personnel are over specialized, and there could be fewer layoffs with greater cross training. Chairman Cook advised there are opportunities to save by extending the hiring freeze. Commissioner Ellis noted while some positions are not interchangeable, the County could be more flexible in filling positions without going outside the County workforce. Chairman Cook indicated a freeze is preferable to putting people out of work.

Commissioner Scarborough expressed concern that the County is decreasing what it is rendering to the people. Chairman Cook stated there are other options. Commissioner Ellis emphasized the need for an integrated budget and disciplined budget process. Discussion ensued on the balance between the public?s desire for services and desire for lower taxes, and the level of service which must be provided by government.

BUDGET PRESENTATION, RE: COMMISSION OFFICES

Mr. Jenkins noted all the Commissioners have relatively small staffs; there is additional workload associated with additional population; and suggested instead of dealing with full-time equivalent positions, the Board may wish to allow ?X? dollars per Commission office and allow each Commissioner the flexibility to determine how to staff or operate his or her office.

Commissioner Higgs noted the Commission budget will be significant; in the rest of the budget, significant cuts are being asked of staff; and in order to show leadership, there should be a full decrease in each Commissioner?s budget and Commission salaries should be decreased by 50%. Commissioner Ellis stated that is unfair. Commissioner Higgs stated a citizen government has been efficient; but the Board has gotten into being bureaucrat Commissioners; and no surrounding county has the kind of staff or salaries that the Board has. She stated it is time for the Board to put its money where its mouth is, and go back to being a part-time policymaking Board. Commissioner Ellis advised the elected officials have no control over what is going on in those other counties; and Orange County is a good example of a county that is out of control with spending. Chairman Cook inquired if Commissioner Higgs would be willing to divulge her and her husband?s income from last year; with Commissioner Higgs responding absolutely, it has been part of her tax returns every year. Chairman Cook stated Commissioner Higgs has a lucrative business on the side, and probably does not live on her Commission salary; but some of the Commissioners are full-time Commissioners who live on their salaries; and that makes a big difference. Commissioner Higgs stated the Commission job should be part-time and not full-time. Commissioner Cook stated in that case the bureaucrats will run the system. Commissioner Higgs stated that is not the case; with Commissioner Ellis disagreeing. Commissioner Higgs stated the County should go back to being a part-time Board which steers, which is what it was 20 years ago. Commissioner Ellis advised each Commissioner was responsible for his own District, and did not have to spend time deciding other District budgets; and each Commissioner had authority and responsibility for his entire District, and there was no county administrator. Commissioner Scarborough described the differences in being on the Titusville City Council and the Board of County Commissioners; and stated even if the Commissioners? salaries are cut, they will do the same job unless there is a fundamental change in the way the County operates. Commissioner Higgs stated the Charter provides for a professional manager and the Board is the policymaking board; and she has received that request from people. Commissioner Scarborough stated it is a massive change. Commissioner Higgs stated if the Commissioners? salaries are cut in half, they are still over $25,000; the public deserves more than the Commissioners looking at the documents for that amount; and she is not suggesting that Commissioners will not spend considerable time at work. Discussion ensued on the full-time nature of the Commissioners? jobs, whether people would be excluded from serving due to financial constraints, whether the Board would become a rubber stamp like the cities are, and the disparity between the salaries of the Commissioners and the Constitutional Officers.

Commissioner Higgs stated the Board talks about government becoming accountable and making cuts, but is unwilling to look at doing its job differently. Commissioner Ellis advised of his heavy workload; and stated he does not have time for a second business, second job or vacations. He stated he takes the job seriously, and works as hard as he can; and he is not on the Board to rubber stamp anything. He stated if the Board goes to part-time Commissioners, it will end up with everything going through with no discussion. Commissioner Higgs reiterated the Board is asking everyone else to take a cut, but the Commissioners are not willing to do so. Chairman Cook stated the Board has not asked anyone to do anything; it is considering a budget that has been submitted by the County Manager; and there are options for the Board to look at. Commissioner Ellis stated cutting a position is one thing; cutting the salaries of the Commissioners is another; it will not affect him because he is leaving; but he understands what will happen if that is done. He stated if he had a house on the river and a million dollar business, he could agree with cutting the salaries, but if it is done, people from Eau Gallie would not be able to run. Chairman Cook stated not too many teachers would be able to run for County Commissioner; and looking at the responsibilities and job description, what County Commissioners are paid is not unreasonable. He stated he does not mind looking at being austere; but if the Board goes with Commissioner Higgs? suggestion, it is abdicating its responsibility as elected officials; that responsibility will shift to paid bureaucrats; the Board will become a rubber stamp; and the people will not get the level of representation they have gotten from the Board.

Commissioner Higgs stated she does the same job the other Commissioners do; she puts in the same number of hours; and it is a matter of public record that her husband is employed, and she owns interest in a business; but the Board needs to look at the way it works and the level it expects from other people.

Commissioner Cook stated his budget was nearly $40,000 less than his predecessor?s budget; and that is money he saved the taxpayers; and he more than earns the rate of pay he gets as a County Commissioner. He stated the Board needs to look at the overall Commission budgets; he knows bureaucrats have problems dealing with Commissioners and staff; but if the Commissioners did not have staff, there would not be the level of accountability there is now or the level of knowledge to vote intelligently on the County?s business. Commissioner Higgs stated she is not suggesting having no staff, but one less person on the staff. Chairman Cook stated he has operated that way since he has been in office; but he is not willing to impose that on anyone else; and as long as a Commissioner can operate within a certain dollar budget, it does not matter how many employees he has. He noted Commissioners? aides are paid at different rates; how much each Commissioner pays his aide is an individual decision; those decisions must be left up to individual Commissioners; and every four years each Commissioner has to go to the public to justify what he or she has done. Chairman Higgs noted the inconsistency of what is done in the Commission offices as opposed to what is being asked of staff; and emphasized the need for consistency. Commissioner Ellis inquired if Commissioner Higgs is suggesting cutting everyone in the County by 50%; with Commissioner Higgs responding no. Chairman Cook stated there has been no expansion in County Commission staff since 1980; he does not know of any other County department that has not expanded; and a certain level of staff is required to answer complaints and obtain information. He stated the Board will establish a budget of a certain amount for each office; and each Commissioner can work within that budget, and justify it to the taxpayers.

Commissioner Scarborough advised his staff has expressed concerns about capacity to serve the public; government is a service business; and he does not like the idea of reducing the number of public contact people. Chairman Cook stated he has concerns; he has been working with a reduced staff; and the issue is the overall cost, not how much a Commissioner gets paid. He reiterated it should be the individual decision of each Commission office and should be justified; with Commissioner O?Brien agreeing. Commissioner Ellis suggested doing something across the board, such as $160,000 per Commission office, and the Commissioner can decide how he or she wants to budget that. Chairman Cook stated whatever figure it is, the Commissioner would justify the salaries and everything within that budget. Commissioner Ellis stated the amount of money to be spent on Commission offices should be divided by five.

The meeting recessed at 2:53 p.m. and reconvened at 3:06 p.m.

BUDGET PRESENTATION, RE: COUNTY ATTORNEY?S OFFICE

County Attorney Scott Knox stated his budget reflects a 4.4% decrease from last year; two positions have been eliminated and the functions reallocated to existing personnel; and the office has an intern from the University of Central Florida. He stated savings from people who have left the County service have been used to convert to a CD library which provides better research capabilities, and cuts down on the need for people to travel back and forth to various places to find materials. He stated when compared to budgets of 20 other urban counties, his budget is second lowest; and he provided an estimate of the cost to provide the same service in the private sector. He recommended the Board look at the possibility of his office handling personal injury matters; stated the Board has spent between $600,000 and $800,000 a year for liability coverage claims and premiums; the Board will find its claim settlements will not be as generous as some it has seen in the past; and he has two attorneys with experience in that kind of work.

BUDGET PRESENTATION, RE: COUNTY MANAGER?S OFFICE

County Manager Tom Jenkins advised he has not filled Mike Managan?s position; Stockton Whitten is taking over some of those duties; and as a result, he has been able to transfer some of the cost out of the budget. He stated Greg Lugar has been brought into his budget; and he has been able to eliminate one secretarial position.

Chairman Cook inquired if that is an appropriate level of staffing; with Mr. Jenkins responding yes. Mr. Jenkins noted John Sternagel is moving to Information Systems; and Peggy Busacca will have to pick up a greater level of responsibility for Code Compliance.

BUDGET PRESENTATION, RE: BUDGET OFFICE

Budget Director Kathy Wall stated the budget for the Budget Office has been decreased by 3.65%; it was achieved through conversion of one full-time accountant position to a part-time position; and that is due to a decrease in the hours worked because of automation of the budget process.

BUDGET PRESENTATION, RE: MERRITT ISLAND REDEVELOPMENT AGENCY Richard Amari, representing the Merritt Island Redevelopment Agency (MIRA), stated MIRA has attempted to discipline the budget; it has eliminated significant overhead by elimination of the Executive Director position and replacement of the Administrative Assistant with an Executive Secretary; and the Executive Director has been replaced with Doug Robertson of Robertson and Associates on a consulting basis. He stated costly lease premises have been relinquished; and MIRA has moved into County facilities, allowing better access to staff and other County services. He stated MIRA moved into an agreement with the Board for County services to provide for program coordination and supervision; and MIRA is working on restructuring its debt. He advised some Commissioners have expressed concern that MIRA should sunset itself at some time in the near future; he agrees the Redevelopment Agency was not created to become a perpetual bureaucracy; and its purpose is to implement and achieve the goals established by the Board of County Commissioners. He stated Mr. Robertson will delineate an implementation of those items which are to be achieved in the near future such as restructuring and repayment Doug Robertson, representing MIRA, stated the Board?s direction will be relayed to MIRA which will provide additional information; MIRA has been a successful program, providing focus, planning and resources to one of the most urbanized unincorporated areas in the State; and without MIRA it is unlikely there would have been the upgrades along the corridor. He outlined MIRA?s cash flow problems; and stated MIRA has begun to address its work program for the current year. He explained MIRA will continue to expedite private/public partnerships and look at economic development grants or other sources of money; it would like to obtain the FDOT beautification grant; and it will continue to negotiate with the City of Cocoa for reuse water. He described the new Merritt Park project, and explained the potential for increase tax rolls.

Commissioner Ellis inquired how Waterway Park will be paid for; with Mr. Robertson responding there is no support for the County taking over Waterway Park; and the maintenance costs have been reduced so MIRA can absorb those costs in its budget.

Economic Development and Legislative Affairs Director Greg Lugar outlined the restructuring of the debt service.

Chairman Cook inquired if the purpose of restructuring is to take care of the balloon payment. Mr. Amari responded an additional purpose is to lock in at a fixed rate. Chairman Cook stated that would be no more than ten years; with Mr. Amari concurring.

Commissioner Scarborough stated Mr. Robertson advised him the County would receive $23,000 in additional tax revenue if no additional projects were done; and as the County approaches new projects, it should look at the level of return. He stated additional value creates additional revenue which ultimately comes back to the taxpayer throughout the County. Mr. Robertson stated MIRA should justify projects it wants to take on in some kind of cost benefit.

Commissioner Ellis stated he understands the analysis and the key point that it comes back in; and he asked Mr. Easton three years ago when does redevelopment end. Mr. Robertson stated MIRA unanimously agreed it owes it to the Board to have a sunset picture; and that will be provided. Commissioner O?Brien stated he does not understand the rush to sunset; and the Board does not discuss the Melbourne Redevelopment Agency which takes $100,000 from the General Fund each year. Commissioner Ellis advised he has no problem sunsetting all the redevelopment agencies. Commissioner O?Brien advised Palm Bay wants to come on next, and Cocoa Beach wants to have one as well. Commissioner Ellis stated redevelopment agencies should have a finite term to accomplish their missions.

Mr. Jenkins inquired if the Board has the authority if a city sets up a redevelopment agency; with County Attorney Scott Knox responding with the consent of the city. Discussion ensued on the Melbourne Redevelopment Agency. Commissioner Ellis reiterated his desire that all redevelopment agencies should sunset after a finite period. Commissioner O?Brien stated he does not agree; redevelopment agencies have a specific job to accomplish; as the County grows older, some of the neighborhoods and commercial areas will become blighted; and this is a way of financing redevelopment. He stated it is a win-win situation; it is an economic engine; and advised of the benefits of bringing Home Depot, Office Depot and Chili?s to Merritt Island. He stated if those things were not done, there would still be an unemployment rate of 8.3% Countywide; and the redevelopment agencies can be an economic machine producing millions of dollars in economic benefit for the entire County. Commissioner Ellis stated just because things happened on S.R. 520 does not mean they were all because of MIRA; and there has been as much development in South Brevard as there has been on S.R. 520 with no redevelopment agency. Commissioner O?Brien noted it was not just on S.R. 520 but also on Merritt Avenue all the way south to Fortenberry, and from river to river; and described the area and how it has improved getting people off septic tanks and on sewers. Commissioner Ellis stated the County could have done that by cutting hook-up fees; and he tried to do it last year; with Commissioner O?Brien responding the County did not do it. Commissioner Ellis stated a redevelopment agency in perpetuity defeats the purpose. Commissioner O?Brien stated to shortfall the goals is not a good idea.

Chairman Cook stated Mr. Robertson will be coming back to the Board with options and the information the Board requested.

Commissioner O?Brien commended MIRA for turning its focus on an area that is blighted and in need of reconstruction.

BUDGET PRESENTATION, RE: OFFICE OF HUMAN RESOURCES

Human Resources Director Frank Abbate stated under the preliminary budget proposal, his office will be reducing staff by one full-time and one part-time position; and the services which will be impacted by the reduction are internal training, facilitation of work teams, computer support services, and processing of reclassification requests. He stated reclassification requests will be reassigned to the two full-time personnel officers; and it will have minor impact on the processing of reclassification requests and requisitions to fill vacant positions. He stated the proposed expenditures for Personnel Services is $676,000 which is a reduction of $49,000 from the requested budget of $725,000; actual expenditures for FY 1994-95 were $729,000; and the FY 1996-97 budget is a decrease of 7.32% from the FY 1994-95 actual budget. Mr. Abbate advised the proposed budget also includes an enhancement of the County?s benefit level in the Employee Tuition Reimbursement Program; and explained the current program and the proposed program.

Chairman Cook inquired if an employee has to have approval before taking a course or can it be retroactive. Mr. Abbate explained the criteria, process, and budget limitations for reimbursement. Mr. Jenkins advised the reclassification system is being streamlined with fewer classifications, so there should be less paperwork.

Mr. Abbate advised of the improving experience in the workers? compensation program; and stated the County used to pay 71% of the State rate, but that has been reduced to 57%. Mr. Jenkins advised that is based on the continued improvement in the County?s accident record. Mr. Abbate stated it is the accident rate and the ability to return people to work in positions for which they have experience which has a direct impact on the rate structure used to assess Workers? Compensation charges; and it has resulted in a 19.7% reduction in program changes for this year. He distributed an actuarial study evaluating workers? compensation, property and general liability programs; and stated there is a $1.69 million equity release from those programs. He stated the proposed budget includes establishment of an employee advocate or ombudsman to deal with employee complaints and problems with insurance benefit programs; and the operating expenditures for compensation and benefits including the new position would increase by 21% to $648,000.

Commissioner Ellis inquired about the recommended fund balance; with Mr. Abbate and Mr. Jacobs explaining the figures. Discussion ensued on the figures. Commissioner Ellis stated there is a $2 million contingency based on the recommended fund balance and there is a potential release equity of $1.7 million. Mr. Abbate advised the $1.7 million release is on the workers? compensation program; and there is a deficit of $323,000 in auto liability. Commissioner Ellis inquired if the $1.7 million has been budgeted or not; with Ms. Wall responding it has; and staff is recommending $600,000 be placed in reserve for future replacement of equipment and $200,000 allocated to one-time expenditures. Mr. Abbate advised he will provide more information.

Chairman Cook inquired if any consideration has been given to individual departments intaking and processing employees; with Mr. Abbate responding the burden of advertising and getting announcements on an individual department level would be prohibitive. Mr. Abbate advised last year there were five full-time equivalents allocated; and that has been reduced to 3.8 positions. Commissioner Ellis expressed concern about keeping up with federal statistics.

Commissioner Ellis inquired if the $2 million extra should be greater; with Mr. Jacobs responding it is the actuary?s recommendation. Mr. Abbate stated staff can request a justification for that, but it is based on the claims experience with a 20% margin for error. Mr. Jacobs stated there could be $2 million retention.

Chairman Cook inquired about training seminars; with Mr. Abbate responding he puts on in excess of 80 and 90 per year. Chairman Cook inquired if they are all necessary; with Mr. Abbate responding interns are in the process of analyzing the management certification program. Mr. Jenkins stated the major thrust has been the first line supervisors; there is a major investment in the management certification program; and the assessment is to determine if the people are being taught what they need. Commissioner Ellis advised the County is not getting feedback from the classes. Mr. Abbate advised focus groups will be conducted by the interns. Discussion ensued on the seminars and classes, feedback from employees, ways to assess the classes, and the need for anonymous independent evaluations. Mr. Jenkins advised he has come up with an agenda of issues on which he is working; and he will revisit the people in five months. Commissioner O?Brien suggested including surveys in paychecks.

Commissioner O?Brien compared figures on pages E-10.2 and E-10.8. Senior Budget Analyst Neil Boynton stated the Personnel Services program is the only thing added; it is entirely funded by the General Fund; and revenues will be identical to the Risk Management and self insurance program until that one line. Mr. Jenkins stated that is based on the size of the operation. Commissioner Ellis requested staff provide fund numbers. Commissioner O?Brien inquired why there are two budgets that are identical; with Mr. Boynton explaining the figures. Discussion ensued on the figures and the positions funded. Mr. Boynton advised Risk Management is approximately $675,000; and it is equal to Personnel Services, but the insurance funds are $33 million. Mr. Abbate advised compensation and benefits are the employee costs for the Risk Management program, and that is $648,000; and the rest is operating expenses. Commissioner O?Brien inquired why more higher paid employees are in Risk Management than in Personnel Services. Mr. Abbate explained some staff members have been with the County for many years; his salary is divided between Personnel and Risk Management; the Health and Wellness Officer, Safety Officer, and Risk Manager are higher paid employees; and Personnel Services has a lot of clerical positions which are not on the Risk Management side. Mr. Boynton advised of the expense for the workers? compensation program. Commissioner Ellis inquired if the health insurance is included; with Mr. Abbate responding affirmatively. Discussion ensued on what the figures will be for the insurance. Commissioner Ellis requested a report at the next budget workshop. Mr. Abbate stated over the 8% the most affordable option would be an increased cost of $20 per employee per month. Commissioner Ellis advised of the need to get the issue squared away. Mr. Abbate stated after the meeting tomorrow, he will be able to show the needed funding for the four aspects of the program, what is currently budgeted, what the current employee contributions are, and what the deficit is.

BUDGET PRESENTATION, RE: PARKS AND RECREATION DEPARTMENT

Parks and Recreation Director Charles Nelson stated the Parks and Recreation budget is a status quo budget; some positions will be eliminated this year; and there are some unfunded program changes. He advised of projects which have been requested, but are unfunded, such as the Satellite Beach tennis courts, Kennedy Park resurfacing, and South Patrick Community Park.

Chairman Cook stated he thought there was money in the budget for the tennis courts. Mr. Nelson advised he does not recall a specific funding source being identified; and it is in the South Brevard budget, but does not have cash forward.

Commissioner Higgs stated the budget shows marketing programs for The Savannahs and Habitat at Valkaria Golf Courses; and inquired if there is a marketing program for Spessard Holland Golf Course. Golf Course Director Gene Burress advised the program would be for all three courses. Commissioner Higgs stated if the courses are not marketed, there will never be revenue, and it is impossible to compete without marketing.

Commissioner O?Brien stated The Savannahs Golf Course is for sale; and there is desire to rename the course. He stated the Board desires to get The Savannahs off General Fund support; advised of the condition of the course; and stated the privatized maintenance of the course is superior to what it was one year ago.

Commissioner Higgs advised there is still a need to market the courses even if the County is going to sell them; with Mr. Burress agreeing. Mr. Burress advised of the need for marketing efforts and resolution of drainage problems; and recommended the Board fund the two unfunded items.

Commissioner O?Brien suggested using dirt from ditches and canals which were dug on North Merritt Island to build up the fairways and keep them from being flooded. Chairman Cook requested staff look at the fiscal impacts of the suggestions.

Mr. Burress advised of advertising efforts. Discussion ensued on advertising, TDC funding, and bus billboards.

Commissioner Ellis inquired about budgeted losses; with Mr. Nelson advising it reflects the mid-year amendment. Commissioner Ellis stated a $750,000 loss is projected. Mr. Jenkins stated if the County can get rid of The Savannahs, much of the loss can go away. Mr. Burress advised The Habitat at Valkaria will be more profitable than Spessard Holland because play is increasing dramatically; and even if the County does not have The Savannahs, it will not be able to have two golf courses operating in the black where there will not be any General Fund subsidy. Commissioner Ellis expressed concern about the impact of a Palm Bay Golf Course; with Mr. Burress advising that is on hold. Commissioner Ellis emphasized the need to budget the loss. Mr. Nelson explained the budgeted figures. Commissioner Ellis stated if there is an upturn in play, it will result in a surplus; and inquired if that will be returned to the General Fund; with Mr. Jenkins responding affirmatively. Mr. Nelson advised only the portion that is needed for operations will be drawn down. Chairman Cook inquired what will happen in the future when the courses are revenue generating; with Mr. Jenkins responding that decision has not been made yet.

Commissioner Ellis inquired when will the park equity issue be addressed; with Mr. Nelson responding it is the Commission?s choice on scheduling the item. Discussion ensued on the park equity issue. Chairman Cook stated the Board should look at the bigger picture; and if there are any additional questions concerning the equity study, they need to be forwarded to Mr. Nelson. The Board reached consensus to schedule full discussion of the issue at the next budget meeting, setting aside one hour for the discussion.

BUDGET PRESENTATION, RE: WATER RESOURCES DEPARTMENT

Water Resources Director Richard Martens advised the Department held the line on expenses; there is a reduction of 3.5 full-time equivalent positions; revenue increases due to system growth are ahead of increases in operation and maintenance expenses; and rates are adequate to support the needs. He stated the CIP is the same as the Board has seen previously.

Upon motion and vote, the meeting adjourned at 4:25 p.m.

MARK COOK, CHAIRMAN
BOARD OF COUNTY COMMISSIONERS
BREVARD COUNTY, FLORIDA

ATTEST:
SANDY CRAWFORD, CLERK
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