DeFuniak Springs City Council Special Meeting Minutes Council Chambers November 6, 2024 1. Call to Order Mayor Bob Campbell called the meeting to order at 5:00 PM. Present: Mayor Bob Campbell, Mayor Pro-Tempore Todd Bierbaum (Seat 1); Councilmember Josh Sconiers (Seat 2); Councilmember Amy Heavilin (Seat 3); Councimember Glen Harrison (Seat 4); Councilmember Anthony Vallée (Seat 5). Also, present were Interim City Manager Koby Townsend, City Attorney Clay Adkinson, Interim Finance Director Daniele McDaniel, and City Clerk Rafael Ali. 2. FINANCE DIRECTOR APPLICANT INTERVIEW A. Steven Rausch Mr. Rausch stated that he is thankful for the opportunity the city has given him. He expressed excitement to begin in this position and meet the team. Mr. Rausch shared that he spent 20 years in the Air Force and achieved the rank of Master Sergeant, serving in that position for 14 years. He also spent six years in finance after Cross- training. Mr. Rausch mentioned that he received his accounting degree from the University of West Florida. He continued discussing his professional and educational background. Mayor Campbell asked Mr. Rausch about his position in the City of Niceville. Mr. Rausch answered that he was the Finance Director and Deputy City Clerk. Mrs. Chance inquired whether Mr. Rausch understands the standard job functions of the position. Mr. Rausch answered affirmatively. Mrs. Chance also asked if Mr. Rausch can handle the physical demands of the job. Mr. Rausch confirmed that he can. Mrs. Chance continued asking interview questions, and Mr. Rausch answered them. Mrs. Chance asked what Mr. Rauch thought the main role of a Finance Director was. Mr. Rausch explained that it is to provide expert advice.to the council and city manager, develop a budget in accordance with Florida law, and work to improve issues identified in audits. November 6, 2024 Special Meeting 1 Mrs. Chance asked about Mr. Rausch's skills that would help him in this position. Mr. Rausch listed his relevant skills. Mrs. Chance also asked how he would ensure ongoing professional development for himself and his team. Mr. Rausch replied that he would keep up with Florida statutes and their requirements, ensuring that his staff is well-trained, whether through on-the-job training, webinars, or conferences. Mrs. Chance asked if Mr. Rausch would be able to attend different meetings. He confirmed that he could. When asked how he prioritizes tasks, Mr. Rausch stated that customers come first, but employees must also be taken care of. Mrs. Chance inquired whether Mr. Rausch could provide a financial report for the city council and city manager on a monthly basis. He answered affirmatively, stating he had no problem with that. Mr. Chance asked about Mr. Rausch's experience with budget amendments, supplemental budgets, and the TRIM process. Mr. Rausch explained that a budget should begin with a vision statement, followed by the establishment of priorities. He emphasized the importance of the Finance Director collecting revenue information. He also noted that he is very familiar with the TRIM process and how statutes guide it. Mr. Rausch mentioned a new system, called Oasis, used for submitting the TRIM, which he is familiar with. Mrs. Chance asked about Mr. Rausch's experience in managing government investment and treasury services. Mr. Rausch shared that at Niceville, he noticed they were earning only 0.1% interest on $20 million. He took action to negotiate a better rate for the city, resulting in improved interest rates. Mrs. Heavilin asked how much they were earning on the interest rate. Mr. Rausch explained that the city was allowed to invest in Local Government Investment Pools (LGIPs) without a - financial policy, and he recommended implementing one. He further mentioned that he had helped increase the return on investment to 3.5% on the pool cash and over 5% on the LDIP, with U.S. Treasury investments earning 4.5%. He also mentioned that they had $30 million invested at the time. Mrs. Chance inquired about Mr. Rausch's experience with financial audits. Mr. Rausch stated that he has worked with auditors throughout his career and aims for an unmodified opinion. He also explained that he uses audits to identify weaknesses and areas for improvement. Mr. Rausch shared that he worked hard to address the issues identified in Niceville's audits but felt that leadership did not support him, which led him to decide to leave. November 6, 2024 Special Meeting 2 When asked how he ensures accuracy and integrity in financial reporting, Mr. Rausch stated that it is a team effort, starting with leadership. Mrs. Chance asked how he would handle a policy violation. Mr. Rausch said he would first investigate the violation, inform the city manager, and recommend that the matter be addressed directly with the city manager. He would also assume the violation was accidental at first. Mr. Chance asked how comfortable Mr. Rausch is with creating balance sheets, income : statements, and cash flow statements for these kinds of funds. Mr. Rausch stated that while he could create these documents ift necessary, there is usually software that handles it. Mr. Rausch expressed his desire to achieve career success and contribute to the success of DeFuniak Springs. When asked about his experience with utility billing, Mr. Rausch confirmed that he is highly experienced and familiar with the Tyler software used for utility billing. Mr. Bierbaum asked about Mr. Rausch's disciplinary experience at Niceville. Mr. Rausch shared that he had addressed an employee who was running a business on the side while on the job and spending excessive time on the phone. His manager, however, told him he was being too strict. Mr. Rausch stated that he is always honest and believed the council needed to know the facts. He mentioned that he didn't have an office with a door, which may have contributed to the challenges. Mayor Campbell asked what Mr. Rausch needed to be successful in Niceville. Mr. Rausch said he would have liked the authority to manage the staff directly and emphasized that he was not receiving the necessary information to do his job effectively. Mr. Vallee stated that it sounds like there were a lot of concerns with management and were you able to consult the City Council? Mr. Adkinson clarified the structure of the finance director position and explained that the finance director is a dual appointment by the city council. He also mentioned that the grand jury held the council accountable for the finance director's performance. Mr. Rausch confirmed that he used Excel to develop the budget. Mr. Sconiers asked if Mr. Rausch would be able to provide the- necessary information for meetings. Mr. Rausch answered affirmatively. Mr. Townsend explained the finance department's structure and his expectations for Mr. Rausch. Mr. Rausch explained that the DeFuniak Springs budget was better than Niceville's. November 6, 2024 Special Meeting 3 & Mr. Vallee asked whether Mr. Rausch had provided training to employees to ensure the department was covered when he was absent. Mr. Rausch confirmed that he makes sure his staff is informed and trained for such situations, offering the same support at Niceville. Mr. Harrison asked how many people Mr. Rausch supervised. Mr. Rausch stated that by the end ofhis time in Niceville, he had one person under him. He also mentioned he was responsible for utility billing but had no authority in that area. Mr. Townsend stated that the decision on how to move forward was up to the council. Mr. Sconiers asked Mrs. Heavilin how she felt about the interview. Mrs. Heavilin said she would like clarification on a few points but felt that Mr. Rausch had the experience needed for the job. Mayor Campbell questioned why Mr. Rausch did not receive the authority he needed at his previous job. Mr. Rausch explained that he looks internally to understand the root cause of problems and has had success in other organizations. Mr. Bierbaum stated that while Mr. Rausch had the technical skills, he had concerns about his ability to elaborate on answers. He also expressed concerns about Mr. Rausch having only one direct report at Niceville and the possibility of a similar situation arising here. Mr. Sconiers acknowledged that Mr. Rausch may have difficulty expressing ideas at times, but believed he had the technical skills needed for the position. Mr. Bierbaum suggested structuring a contract for the finance director position to ensure clarity. Mrs. Heavilin recommended a probationary period of 12 months, while Mr. Bierbaum argued for ai full 12-month contract to evaluate the finance director's performance. Mrs. Heavilin clarified that the probationary period would allow them to evaluate performance within three months. Mr. Bierbaum emphasized that the finance director should be highly functional, and Mr. Adkinson confirmed that the probationary period should align with current policies. Mr. Harrison stated that he believes Mr. Rausch was nervous but shows a strong desire to put together reports that are clear and understandable. Mr. Bierbaum pointed out that there is a difference between a finance director who wants to do the work versus one who delegates it. Mr. Campbell emphasized the importance of structuring interview questions clearly to avoid confusion. Mr. Townsend stated that he could work with Mr. Rausch and believes he has the knowledge needed for the job. He also suggested evaluating the individual after six months. November 6, 2024 Special Meeting 4 Mr. Bierbaum confirmed that the council could conduct evaluations and suggested that three quarterly evaluations would be appropriate, with a written evaluation presented to the council after the second. Mrs. Heavilin stated that she would prefer regular updates on Mr. Rausch's progress. A motion was made to set the salary at $106,000 and the term of employment set as a standard employee with a standard 12 month probation along with 3 quarterly evaluations and the second evaluation will be a written evaluation that will be turned into the City Council by Councilmember Heavilin and seconded by Councilmember Harrison; the motion passed without objection. Mr. Adkinson stated that the motion passed 5-0 which exceeds the minimum 4. 3. PUBLIC COMMENTS 4. ADJOURNMENT Meeting Adjourned 5:00 PM. Approved: b. Akll Bob Campbel, Mayor ATTEST: Minutes taken by Rafael Ali City Clerk/ Proper notice having been duly given sP CORPORATE - SEAL 1901 1 November 6, 2024 Special Meeting 5