City of Groveland Minutes Charter Review Advisory Committee Meeting Minutes Monday, March 31, 2025 The Groveland City Charter Review Advisory Committee held a meeting on Tuesday, March 31, 2025 in the E.L. Puryear Building located at 243 S. Lake Avenue, Groveland, FL 34736. Susan Boyer, Facilitator, called the meeting to order at 6:02 p.m. with the following members present: Gary Alcorn, Jenn Eastridge, Michelle Mcintyre, Shantel Ocampo, Ed Prosienski, Charyce Richardson, Stephen Shylkofski, and Khrystyna Termaine. City officials present were Sergeant- at-Arms Sergeant McGee, City Clerk Virginia Wright, Deputy City Clerk Ciara Bender, and City Attorney Anita Geraci-Carver. Absent: Committee Member Adam Morris. 1. Approval of February 24, 2025 Charter Review Advisory Committee Meeting Minutes Motion: Committee Member Prosienski moved to approve February 24, 2025 Charter Review Advisory Committee Meeting Minutes; seconded by Committee Member Mcintyre. Motion passed unanimously. 2. Approval of March 18, 2025 Charter Review Advisory Committee Meeting Minutes Motion: Committee Member Tremaine moved to approve the March 18, 2025 Charter Review Advisory Committee Meeting Minutes; seconded by Committee Member Richardson. Motion passed unanimously. 3. Carryover: 2018 Proposed Charter Modification re: hiring and termination of city attorney 2018 Charter Review Committee recommended the following to the City Council. Sec. 3.10. City Attorney. There shall be a city attorney appointed by the city council. The city attorney shall be appointed and may be removed by a majority vote ofall the city council members. The city attorney shall be a member in good standing of the Florida Bar and preferably is board certified in city county local government law. The city attorney shall serve as chief legal adviser to the council, the city manager and all city departments, offices and agencies, shall represent the city in legal proceedings, and shall perform any other duties prescribed by state law, by this charter, or by ordinance Motion: Committee Member Shylkofski moved to approve the 2018 Proposed Charter Modification re: hiring and termination of city attorney, Sec. 3.10 City Attorney; seconded by Committee Member Ocampo. Motion passed unanimously. MARCH 31, 2025 CHARTER REVIEW ADVISORY COMMITTEE MEETING MINUTES 4. Report on requested information relating to City Budget: depreciation, equipment life cycle, emergency reserves, and operational forecasting At the March 18 ,2025 Special Charter Review Committee Meeting, the Committee requested additional information and clarification regarding the following items listed below: Proposed language for three (3) specific items for inclusion in ARTICLE V. - FINANCIAL PROCEDURES ARTICLE V. - FINANCIAL PROCEDURES (language below was previously provided by a committee member for discussion) 1. Section 5.02a; The city budget shall include a specific line item to account for the depreciation of all equipment according to the cost and life cycle of each item. (Note: this would then provide the money necessary to replace an item at the end of its useful cycle rather than incurring a loan, with its associated interest rate as debt to the city) City information: Depreciation is included in our govemment-wide financial statements. Governmental Accounting Standards Board (GASB) (see excerpt below) recommends that governmental entities focus on cash flows and immediate operational needs as depreciation does not represent an immediate cash outflow. The Governmental Accounting Standards Board (GASB) pronouncement that address budgeting for depreciation is GASB Statement No. 34, title "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments." This pronouncement, issued in 1999, significantly changed the way state and local governments report financial information, particularly concerning the treatment of capital assets. GASB 34 requires governments to report the depreciation of capital assets in their government-wide financial statements, though it does not require budgeting for depreciation in the same way. However, it does impact how 3 depreciation is considered in the context of long-term financial planning and their cognition of capital expenses over time. To clarify, GASB 34 mandates that governments record depreciation on capital assets for the purpose of accrual-based financial reporting. Budgeting for depreciation specifically is not required under GASB standards for the general operating budget. Motion: Committee Member Prosienski moved to approve the language for Section 5.02a The City Budget shall include a specific line item to account for the depreciation of all equipment according to the cost and life cycle of each item; seconded by Committee Member Ocampo. Motion passed 5-3. 2 MARCH 31, 2025 CHARTER REVIEW ADVISORY COMMITTEE MEETING MINUTES 2. Section 5.02b; The city budget shall include a specific line item to set aside 10% of city income money to be used for emergency reserves. This percentage may be adjusted in the budget by a majority vote of the council. This reserve fund may be used for emergency repairs, storm damage and similar uses. This reserve fund may be used for emergency repairs, storm damage and similar uses. In the event that this fund remains unused for a period of time and is at a point of being more than adequate for the city's needs, the council may, at the end of the fiscal year authorize a rebate distribution to the taxpayers of the city. City information: While the City does not include a specific line item for emergency reserves we do try and budget above the minimum reserve requirement (fifteen percent (15%) for General Fund & twenty percent (20%) for Enterprise Fund) per city ordinance that could be used for emergencies. City Code of Ordinances, Sec.2.227. = Creation of fund balance/retained earnings reserves. There is hereby created, in the general fund and proprietary fund type (enterprise funds) funds of the city, a reservation of fund balance of retained earnings equal to the following: (1) General fund a. Fund balance. In the general fund, there shall be created and maintained an unreserved undesignated fund balance equivalent to a minimum of fifteen percent (15%) of the current fiscal year expenditures budgeted for the fund, less capital outlay and/or extraordinary expenditures. For the purposes of this calculation, the expenditure shall be the budget as originally adopted by ordinance in September for the subsequent fiscal year. This reserve shall be in addition to all other required reserves or designation of fund balance. b. General fund sinking fund. In order to provide liquidity adequate to address unexpected revenue reductions or unanticipated expenditures, the general fund will be managed in such a way as to maintain a general fund sinking fund established for the purpose of maintaining the unreserved undesignated fund balance as described in subsection (1)a. of this section. (2) Enterprise fund a. Fund balance. The city has created an enterprise fund which accounts for activities for which a fee is charged to external users for goods and services. The following utility services are found within the city's enterprise fund: sanitation, water and wastewater treatment. In the enterprise fund, there shall be created and maintained an unreserved undesignated retained earnings equivalent to a minimum of twenty percent (20%) of the current fiscal year expenditures budgeted for the fund, less capital outlay and/or extraordinary expenditures. For the purposes of this calculation, the expenditure shall be the budget as originally adopted by ordinance in September for the subsequent fiscal year. This reserve shall be in addition to all other reservations of retained earnings, including but not limited to amounts reserved for debt service and/or amounts reserved for renewal and replacement of long-lived assets. b. Enterprise fund sinking fund. In order to provide liquidity adequate to address unexpected revenue reductions or unanticipated expenditures, the enterprise fund will be managed in such a way as to maintain an enterprise fund sinking fund 3 MARCH 31, 2025 CHARTER REVIEW ADVISORY COMMITTEE MEETING MINUTES established for the purpose of maintaining the unreserved undesignated retained earnings as described in subsection (2)a. of this section. No action taken for Section 5.02a. 3. Section 5.02c: Operational Forecasting: Once every four (4) years, the city manager shall compile and issue a report to the council and public concerning the forecasted operations of the city in the next five (5) to ten (10) years. This report shall include, among other items if requested by the council, the projected growth of the city and its impact on the city services to include police and fire resources, administrative space, public parks and green space, forecasted possible problems and future income sources from commercial development and taxes. City Attorney Geraci-Carver reported this type of forecasting is done as part of the Comprehensive Plan completed by the Community Development Department. No action taken for Section 5.02c. 5. Article I- New Section 1.02 = Citizen Involvement A. Sec. 1.02. Citizen involvement. The people of Groveland establish this Charter for the welfare of our community and the guidance of our local government. The City of Groveland shall treat public engagement as an integral part of effective and trusted governance and not just an occasional process of activity. The active, informed, inclusive and equitable engagement of community members, both individually and collectively, is an essential element of healthy civic life and a thriving local democracy. Forms of Ballot. The form of ballot for the Charter amendment proposed in Section 2 of this Ordinance shall be as follows: Citizen involvement Should the Charter be amended to add a provision that describes the integral role of public engagement in the City's governance and establishes community member engagement as an essential element of healthy civic life and a thriving local democracy? YES NO Motion: Committee Member Tremaine moved to approve the language for Section 1.02 as presented; seconded by Committee Member Ocampo. Motion passed 7-1. 4 MARCH 31, 2025 CHARTER REVIEW ADVISORY COMMITTEE MEETING MINUTES B. ARTICLE III = LEGISLIATIVE = NEW SECTION 3.07(e) Allowing for citizen recall by petition of ordinances Sec. 3.07. Procedure. (e) Reconsideration of ordinances and resolutions. The registered voters of the city shall have the powerto require reconsideration by the city council of any adopted ordinance or resolution and, if the council fails to repeal an ordinance or resolution sO reconsidered, to approve or reject it at a city election, but such power shall not extend to the budget, levy of taxes, or ordinances pertaining to comprenensive planning or zoning. Forms of Ballot. The form of ballot for the Charter amendment proposed in Section 2 of this Ordinance shall be as follows: Citizen authority to require reconsideration of certain ordinances and resolutions Should the Charter be amended to provide that the registered voters ofi the city have the power to require council reconsideration of certain adopted ordinances or adopted resolutions, and if the council fails to repeal an ordinance or resolution SO reconsidered, then the measure be approved or rejected by the registered voters at a city election? YES NO Motion: Committee Member Eastridge moved to discuss proposed New Section 3.07(e) Allowing for citizen recall by petition of ordinances; seconded by Committee Member Ocampo. Committee Member Eastridge inquired as to what type of items would be excluded. City Attorney Geraci-Carver stated only items such as the levying oftaxes, the Comprehensive Plan and zoning would not be subject to reconsideration. Motion: Committee Member Eastridge moved to approve New Section 3.07(e) Allowing for Citizen recall by petition of ordinances; seconded by Committee Member Prosienski. Motion passed 5-3. 5 MARCH 31, 2025 CHARTER REVIEW ADVISORY COMMITTEE MEETING MINUTES C. ARTICLE IV = Administrative = New section 4.40(L) = Duties of the City Manager - Analysis of outsourcing VS. keeping function in house prior to outsourcing Sec. 4.04. Authority and duties of the city manager. (I) Prior to outsourcing any government function, the city manager shall provide the council an analysis on using in-house resources versus outsourcing the government function. Forms of Ballot. The form of ballot for the Charter amendment proposed in Section 2 of this Ordinance shall be as follows: Analysis required on using in-house resources versus outsourcing government functions Shall the Charter be amended to require the city manager, prior to outsourcing a government function, to provide the city council an analysis on using in-house resources versus outsourcing a government function? Yes No The committee discussed whether the item was already in practice at the City and was necessary to put in the charter. Motion: Committee Member Prosienski moved to approve the language for Section 1.02 as presented; seconded by Committee Member Eastridge. Motion failed 3-5. D. ARTICLE IV - Sec. 4.04. Administrative = Section 4.04(g) = Add language to require the City Manager to submit to Council at end of each quarter a financial report Sec. 4.04. Authority and duties of the city manager. (g) Submit to the council and make available to the public a complete report on the finances and administrative activities of the city as of the end of each fiscal year in addition to submitting reports to the council quarterly as of the end of each quarter to include financial statements, outstanding debts, current assets and administrative activities. Forms of Ballot. The form of ballot for the Charter amendment proposed in Section 2 of this Ordinance shall be as follows: 6 MARCH 31, 2025 CHARTER REVIEW ADVISORY COMMITTEE MEETING MINUTES Quarterly reports relating to city finances, debts, assets and administrative activities Shall the Charter be amended to require the city manager to submit to council quarterly reports as ofthe end of each quarter to include financial statements, outstanding debts, current assets and administrative activities? Yes No Motion: Committee Member Ocampo moved to approve adding language to require the City Manager to submit to Council at the end of each quarter a financial report; seconded by Committee Member Shylkofski. Motion passed unanimously. Public Comment Keith Keogh thanked the Charter Review Advisory Committee for all of their efforts. He pointed out that typically when the ballot is too long people do not get through to the end. He requested the Committee consider consolidating the language. Mayor Keogh felt a requirement to have a balanced budget should be included. He also felt there should be no contracts signed after the election before the newly elected members were inducted. All contracts approved by the previous Council should be signed prior to the election. Mayor Keogh suggested the committee ask to define the difference between contract work and consultant work. He stated an operational audit should be completed and that year-end reports should be done by staff, not the auditor. Motion: Committee Member Eastridge moved to approve the language "The budget must be balanced, SO that the total of the estimated receipts available from taxation and other sources, including balances brought forward from prior fiscal years, equals the total of appropriations for expenditures and reserves. "; seconded by Committee Member Mcintyre. Amended Motion: Committee Member Eastridge moved to approve the language "The city shall endeavor to adopt a structurally balanced budget. Generally, this means that reoccurring expenditures should be covered by reoccurring revenues and that non-reoccurring revenues should be used to fund non-reoccurring expenditures. The finance department shall incorporate information into its budget presentation demonstrating the city's progress in achieving a structurally balanced budget. "; seconded by Committee Member Shylkofski. Motion passed unanimously. Motion: Committee Member Eastridge moved to add language to the charter that all contracts may only be renewed within six (6) months of expiration; seconded by Committee Member Ocampo. Motion passed unanimously. 7 MARCH 31, 2025 CHARTER REVIEW ADVISORY COMMITTEE MEETING MINUTES Public Comment Keith Keogh stated that all parties should sign contracts before the next regime is sworn in. There should be no carry-over contracts. Amended Motion: Committee Member Eastridge moved to approve the language "No contracts, agreements, or financial commitments shall be approved, executed, or renewed by the City Council, Mayor, or any authorized official during the period between a municipal election and the official investiture of newly elected officials. Exceptions may be made for emergency expenditures necessary for the continued operation of essential city services, subject to approval by (appropriate authority, e.g. city manager or emergency committee." ". seconded by Committee Member Richardson. Motion passed unanimously. NOTE: Committee Member Shylkofski left the meeting at 8:03 p.m. Committee Member McIntyre requested that the April 14th meeting be held to review the language that City Attorney Geraci-Carver is preparing for the Charter changes and ballots. City Attorney Geraci-Carver stated she would coordinate a date with the City Clerk to schedule a final Charter Review Advisory Committee Meeting. Motion: Committee Member Mcintyre moved to approve scheduling a final Charter Review Advisory Committee Meeting; seconded by Committee Eastridge. Motion passed 6-1. Adjournment Ms. Boyer adjourned the meeting at 8:06 p.m. Groveland RIDA Citysitha NaturlCharm a - * hed A Virginia Wright, City Clerk 8