Danny Federico
reporter3.riverbendnews@gmail.com
The Branford Town Council held a budget meeting on Tuesday, Aug. 23, at 6 p.m. in the council chambers of Branford Town Hall, located at 502 SW Suwannee Ave., in Branford. Those in attendance were President Ken Saunders, Post 1; Vice President Alice Childress, Post 2; Charlie Daniels, Post 3; Stacey Griffith, Post 4; Matt Burns, Post 5; Mayor Donnie Glover and Town Clerk Donna Hardin. The meeting opened with the invocation, led by Town Clerk Hardin, followed by the Pledge of Allegiance, led by President Saunders.
The purpose of the meeting was to go over the proposed budget presented by Town Auditor Richard C. Powell with Powell and Jones, CPA. “It's fairly simple because there's not a lot in it,” President Saunders stated. “It's pretty limited funds with the undertaking that is proposed.” At this time, Town Auditor Powell stepped up to the microphone to speak to the council and residents in attendance.
“The governments that have a millage rate follow the Florida TRIM (Truth in Millage) budget process, so it basically means that you have two public hearings and the budget is adopted,” Powell said. He went on to inform residents how the first public hearing will be held on Tuesday, Sept. 13, at 6:30 p.m. prior to the council meeting at 7 p.m., and the final hearing will be held on Monday, Sept. 26. Following this final hearing, the budget will be adopted. Powell explained how the Aug. 23 meeting, however, was simply for the council to gain a consensus as to what the budget will be. “The budget can be changed at either the two public hearings,” Powell said. “The millage, which is proposed at 7.500, could be decreased at either of the hearings, but cannot be increased. If it were decreased at the first one, it couldn't be increased back.”
Powell then went on to explain how his role was not to decide where the money was allocated, but rather just to estimate revenues based on state estimates and the town's current activity. “Basically, I've put into expenditures exactly what you're making and spending right now,” Powell said. He then went on to explain how the town has seen some growth in the tax revenue in general fund. He also stated the only tax revenue source the town has control over is ad valorem, at which time he informed how the council had already selected the starting out rate at 7.5 mills.
Powell then began giving an overview of the numbers of the general fund, stating the revenues are $758,416, which is estimated to be an increase of approximately $44,000, and expenditures are $620,689. However, assuming revenue received from the county stays the same, which would be around $167,709, and due to the pursuit of an agreement for the Suwannee County Parks and Recreation department to take over the care and maintenance of Branford's parks, the revenue received from the county would decrease to around $70,000. Therefore, according to Powell, after adding the revenue increases and subtracting the loss of revenue from the county, the general fund is around negative $25,000 or $30,000.
The enterprise fund, which includes water, sewer and garbage, was reported as being positive $66,437 and, as a few adjustments will need to be made to include insurances, there is an estimated amount of approximately $30,000 in recurring revenue that is available for the town to budget or put in reserves. Powell also advised how the town has around $360,000 in American Rescue Plan Act (ARPA) funds that the council hasn't spent much out of; he went on to state the council could use that money on any legal government expense, with the exception of paying off loans. “Because it's nonrecurring, I would strongly recommend that it only be used for nonrecurring expenditures, like capital outlay or buying things,” Powell said.
At this time, President Saunders added how the town would be paying off a couple of loans, one of which was the $50,000 on the Town Hall building, itself. “I believe the acreage that we purchased out there on the other side of Hatch Park…I'm pretty sure that pays out in September and, with a few savings like that, we're able to get in line with this proposed budget,” Saunders said.
Councilwoman Griffith then asked Powell what the payoff was for the Hatch Park property, to which Powell responded the loan was originally $147,200. “It's probably already paid off, because it was to pay off during this year,” Powell said. “That frees up $31,000…The next loan was for $50,000 for improvements to this building (Town Hall). The payments are $10,000, so at the end of Sept. 30, 2021, the amount owed was $20,746, and you know the audit is on a fiscal year, so the most that's owed on that is $10,764. It might already be or it might eminently soon be paid off.” However, Powell also clarified the town does still owe for the original purchase of the Town Hall building, which is estimated to be around $120,000 to $125,000, as it isn't expected to pay out until 2027. “But that's, for a small town making improvements…you're in a good position overall with your debt,” Powell said.
“So, you're saying there's no other ways to cut anything to where there's money,” Councilwoman Griffith said.
“The budget line items that are in the budget right now are exactly what the budget is for the current year,” Powell responded. He then stated inflation is not accounted for in the budget and that, in the government or a business, three quarters of the budget are payroll related. “So, you can't really reduce anything, you know, any other way.”
Griffith then stated there were at least ways to cut back with the health insurance. “Us paying for spousal insurance, $101,000 a year for the nine people that it covers, to me, is a lot of money,” Griffith said. “No other government that I have talked to [pays] for their spouses [to be] included.”
“They make more money than we do, too,” Town Clerk Hardin said.
“There's still room to give y'all raises,” Griffith responded.
“Well, and that's what I'm saying,” Hardin said. “If we cut that, that's fine, because it's always been a perk, that's why we make so little. So, I know from all the employees I've talked to, if that is an option to do, they expect it compensated in their paychecks so that they can cover the loss.”
“But should they be compensated completely, though? That's not how that works in the real world,” Griffith said. “Other towns [don't] pay for the spouses.”
“We've talked about it a couple of times,” Councilman Burns said.
“We've beat it to death for about three years,” Councilwoman Childress added.
“But do y'all not agree?” Griffith asked, pointing out how the town pays between $91,000 and $101,000 a year for nine people.
“I've always been of the opinion that we need to move away from that, personally,” Burns responded. “And I think a lot of us have.”
“We all have,” Childress said.
Councilwoman Griffith then asked why the council hasn't looked into doing so. “You've got to…breakdown all of their things and, when you add in their insurance…their salary's probably up there with every other little town in North Florida,” Childress responded. “But the thing is, I'm wanting to take it and break the insurance that they're paying for their spouses and then take that difference, I don't know if it'd be dollar for dollar, add it back to their salary and see what the taxes would be, plus the 13 percent on top of that for their retirement. Then we could go from there to see if we're really making any money. Because we're gonna have to pay security on that money, the difference, plus the 13 percent on retirement.”
Griffith then stated it would be a good idea to look over the issue again, as it might be a way the town could save money. Childress and Burns agreed, stating it would require a bit of research to make sure the money wouldn't have to be paid back in taxes and retirement funds instead. The consensus was that the issue isn't straightforward, so it would require more consideration and discussion.
“Some employees it benefits more than others to go a way from this and or to keep this…it's just a really difficult decision because we're, frankly, messing with people's lives and we're just trying to make the right decision for both the town and our employees,” Burns said. “Frankly, it's kind of a hard balancing act. If y'all want to look at it again, I'm open to it.”
“Well, we're not going to settle the health insurance tonight, and it's certainly not going to be voted on tonight,” President Saunders said. “The purpose of this is to approve the laid out proposed budget.”
Following more discussion of the topic of insurance, including a motion made by Councilman Daniels for a workshop to go over the issue in detail, President Saunders asked Town Auditor Powell what was needed to move forward with the budget. At this time, Powell informed the council how the prior discussion was “not contingent on adopting a budget, because the revenues are pretty much the same.”
“The expenditures overall are the same, and I think the discussion is basically, 'well, maybe we can reduce this to free up some money,' but…if any is freed up, it would address requests that you can do anytime during the year. You don't have to do them tonight,” Powell said. “I can see there's a need, or there's a movement for studying and looking at other things, but that doesn't have to affect the current budget…So, what we're going for is a beginning budget for the first public hearing.” He then stated the only thing that would create changes in the budget would be the discussion of the county recreation grant. This would reduce the general funds in the proposed budget by close to $100,000. At this time, Town Auditor Powell went on to explain the county's proposal for taking over the town's parks and recreation.
“In your budget, if you retain all of your staff, everyone that works here right now at the same pay, same benefits, then you will lose $100,000 out of your general fund revenue, and that's because the county funding would reduce $100,000,” Powell said. “Offsetting that is an overall budget revenue increase, mainly from ad valorem, that would be $43,000. You're paying off one loan that you know of, so it's $31,600, so the offset to $100,000 is $75,000 in new revenue. Then there's about $5,000 more in expenditures that aren't in the budget yet.”
Powell went on to state the general fund would be in the hole $30,000 to keep everybody. “That's offset by a positive in enterprise fund of $65,000. So, that gives you about $35,000 overall in recurring revenue that can be budgeted for something,” Powell said. He then proceeded to advise that the $360,000 in ARPA funding, which is nonrecurring, be applied toward prioritized capital projects and not be put toward increasing salaries. Following this, and a bit more discussion on the county's plans to take over town's parks, with the exception of Ivey Park, the council approved the budget proposal.
The meeting was adjourned after a brief discussion with Suwannee County Parks and Recreation Director Greg Scott. The next Branford Town Council meeting will be held on Tuesday, Sept. 13, at 7 p.m. The first public budget hearing will take place prior to the meeting at 6:30 p.m. Both meetings will be held in the Branford Town Hall, located at 502 SW Suwannee Ave., in Branford.