CITY COUNCIL MEETING

MINUTES
SPECIAL SESSION
224 S. Jefferson Street
Perry, Florida
September 11, 2000

MEMBERS PRESENT: Tom Moore, Shirley Scott, Bill Alexander, Richard Frith, Don Cook

STAFF PRESENT: Bill Brynes, Barney Johnson, Wayne Putnal, Billy LaValle, Luther Gunter,
Glenn Ratliff, Rodney Lytle, Annette Anderson

Mayor Frith called the meeting to order. Councilmember Alexander led those attending the meeting in
prayer. Mayor Frith led the group in the Pledge of Allegiance to the Flag. The roll was then called by
the secretary.
PRESENT ABSENT
Councilmember Cook X
Councilmember Alexander X
Councilmember Scott X
Councilmember Moore X
Mayor Frith X

GENERAL BUSINESS.

A. FIRST PUBLIC HEARING ON THE PROPOSED MILLAGE RATE FOR THE CITY OF
PERRY, FLORIDA FOR THE 2000-2001 FISCAL YEAR.

The first public hearing on the proposed millage rate for the City of Perry for fiscal year 2000-2001
was opened for discussion. City Manager Bill Brynes said the notice of the public hearing and
proposed millage rate was sent to property owners from the property appraiser’s office. Mr. Brynes
said the proposed millage rate of 4.73 mills reflects the same millage rate that was set for last year. Mr.
Brynes said the final public hearing on the proposed millage rate is set for September 26, 2000, City
Council regular session and would be advertised according to Florida Statutes.

There was no one from the public to speak on this item. Councilmember Scott made a motion to
approve the proposed millage rate of 4.73 mills for the City of Perry for the fiscal year 2000-2201.
The motion was seconded by Councilmember Alexander and upon roll call vote was as follows:

YEA NAY
Councilmember Cook X
Councilmember Alexander X
Councilmember Scott X
Councilmember Moore X
Mayor Frith X

(B). FIRST PUBLIC HEARING ON THE CITY OF PERRY, FLORIDA TENTATIVE BUDGET
FOR FISCAL YEAR 2000-2001.

Mayor Frith opened the public hearing on the City of Perry tentative budget for fiscal year 2000-2001.
City Manager Bill Brynes provided a summary of the tentative budget by fund. Mr. Brynes told the
Council the total anticipated receipts are $6,642,504, with anticipated operating costs (personnel costs
and operating expenses) are $6,810,847. It was noted operating costs do not include pay increases for
Page 2, September 11, 2000, Special Meeting

employees and the amount figured into the budget for employee health insurance now appears to be
insufficient based on an insurance renewal proposal from the city’s current carrier.

Mr. Brynes reviewed several (budget) fund accounts where it might be possible to increase rates.
These accounts being water, gas, solid waste and sewer. Mr. Brynes said in the recreation fund
account, user fees might be able to be increased. Mr. Brynes explained that in the general fund,
property tax, occupation licenses, building permits, penalties, and miscellaneous fees could be
increased but would provide only slight revenue increases. Mr. Brynes explained that General Fund
items that cannot be increased are: electric, cable, and telephone franchises; cigarette tax and motor
fuel tax; sales tax and fines.

Mr. Brynes also reviewed information from prior year’s budgets (fiscal year end 1991, 1995, 1999)
showing the increase from year to year in revenues, total operating costs and health insurance cost to
the City. Mr. Brynes explained that various factors such as retirement of employees (hiring an
employee at the beginning salary level when replacing retiring employees), elimination of positions,
bond payments, various grants received, etc., affect these costs over the years.

Discussing employee health insurance, Mr. Brynes told the Council staff has contacted five brokers
and has received eleven rejections to the City’s request for insurance proposals.

Mayor Frith opened the discussion to the public, which included a number of city employees. When
no one initially addressed the Council, Mayor Frith said he would relay some of the
questions/comments that have been brought to him by some employees. Mayor Frith said
(employees) have asked about the City having money drawing interest in an account that the public is
not aware of. City Manager Bill Brynes explained that there are certain monies in an account that are
not designated for a restricted purpose, such as water and sewer revenue bonds. Mr. Brynes explained
that if these monies were taken and put into health insurance costs, in three years the City could be
bankrupt. Director of Public Works Barney Johnson asked if the interest earned on these monies is
also restricted. Mr. Brynes said the interest earned is restricted to a specific purpose also.

Mayor Frith said some employees have questioned why the City gave Main Street’s funding amount of
$25,000 to the Taylor County Development Authority instead of putting it toward raises for employees.
It was noted that Main Street did not make a funding request for fiscal year 2000-2001. Mayor Frith
said he interpreted such comments to mean that if it gets down to year end and there isn’t sufficient
funds to give employees a cost of living allowance or merit pay increase, why doesn’t the City
decrease or eliminate funding to the various organizations.

Mayor Frith said he feels badly that he has to relay the questions and concerns of the employees when
the employees are in attendance to do so themselves. Mayor Frith encouraged the employees to
address the Council with their questions and concerns. Mayor Frith said he felt like his concern should
have been what the City is going to do about health insurance, but he does not know the makeup of
health insurance concerns among the employees. Mayor Frith said if the Council does not know
Page 3, September 11, 2000, Special Session

employee’s concern other than a general dissatisfaction in possibly not getting a raise, the Council
cannot address it. Mayor Frith said in all his years of serving on the Council he can only recall twice
that employees were not able to receive a 5 percent raise—one year employees did not receive a raise
at all and another year the increase was only 2 ½ percent. Mayor Frith commented that this Council
and others have gone to a lot of difficulty to try to see that each year employees did get some sort of
increases.

Referring to employee health insurance Mr. Brynes said the biggest concern is whether the City is even
going to be offered any coverage. Employee Philip Maddox asked if there was any other way to go
about getting insurance. Mr. Brynes said the city (staff) needs to find someone that will just talk to
them. Mr. Brynes said he has even talked to one carrier about obtaining individual policies, but there
are restrictions such as pre-existing conditions, no pregnancies, and no lab or x-ray procedures unless it
is a result of a stay in the hospital.

Councilmember Cook brought up the possibility of the City having a self-insured health insurance
program. Mr. Brynes said (staff) could not find a re-insurer. Councilmember Cook said the City could
consider self-insuring with a very low cap, noting that if an employee/family had a catastrophic illness,
this could cause a hardship (may have to mortgage their home). Councilmember Cook said what the
(City) would be trying to do is to create a group of people who can come together under one plan.
Councilmember Moore asked what the problem was with the City being able to obtain health
insurance. Mr. Brynes said some years ago, $325,000 were paid out in premiums but claims paid out
totaled $1 million. There was also some discussion about the need for a good (drug) prescription plan

Mr. Brynes stated that the Council has a legal responsibility to go forth and proceed with the budget
but things could change next month. Councilmember Scott said that before the budget is adopted
Council might wish to discuss the amount of monies donated to various local organizations. Mr. Jack
Scott, who was in attendance, asked to address the Council. Mr. Scott commented on the monies the
city donates to local organizations, particularly the $25,000 originally designated to Main Street, but
which has now been shifted over to the Taylor County Development Authority (TCDA). Mr. Scott said
the TCDA had been getting along past years with its annual donation of 16,000. Mr. Scott said he had
come before the Council several years ago to discuss percentage raises and told the Council at that time
if the percentage method continued to be used, it would be bad for the City. Mr. Scott said he had
suggested the Council consider dollar amounts instead of percentages when figuring increases in
salaries.

Referring to the City’s donations to local organizations, Mr. Scott told the Council it has no control
over those organizations’ policies, practices and procedures. Mr. Scott said the City could be accused
of diverting public funds for private interests. Mayor Frith asked Councilmembers if they would like
to consider transferring any of the funds the city donates to local organizations. Councilmember Cook
stated that he would not.
Page 4, September 11, 2000, Special Session

There being no further discussion on the budget public hearing, Councilmember Cook made a motion
to adopt the City of Perry tentative budget for fiscal year 2000-2001. The motion was seconded by
Councilmember Alexander and upon roll call vote was as follows:
YEA NAY
Councilmember Cook X
Councilmember Alexander X
Councilmember Scott X
Councilmember Moore X
Mayor Frith X

(C). CITY COUNCIL TO APPROVE “INTERLOCAL AGREEMENT DISSOLVING THE

MUNICIPAL GAS AUTHORITY OF FLORIDA.”

City Manager Bill Brynes told the Council this is one of the documents required to formally dissolve
the Municipal Gas Authority of Florida. Councilmember Scott made a motion to approve the
“Interlocal Agreement dissolving the Municipal Gas Authority of Florida.” The motion was seconded
by Councilmember Alexander and upon roll call vote was as follows:
YEA NAY
Councilmember Cook X
Councilmember Alexander X
Councilmember Scott X
Councilmember Moore X
Mayor Frith X

(D). CITY COUNCIL TO ADOPT RESOLUTION NO. 2000-9; “RESOLUTION AUTHORIZING

THE DISSOLUTION OF THE MUNICIPAL GAS AUTHORITY OF FLORIDA, AND PROVIDING
AN EFFECTIVE DATE.”

City Manager Bill Brynes told the Council Resolution No. 2000-9 is another document required be
signed to formally dissolve the Municipal Gas Authority of Florida. Councilmember Alexander made
a motion to adopt Resolution No. 2000-9. The motion was seconded by Councilmember Cook and
upon roll call vote was as follows:
YEA NAY
Councilmember Cook X
Councilmember Alexander X
Councilmember Scott X
Councilmember Moore X
Mayor Frith X

On another matter, Councilmember Cook updated the Council on exploring the possibility Suwannee
River Water Management District might allow certain monies designated for land purchase for a spray
field to be redirected to purchase items such as pumps, if the Taylor County Board of County
Commissioners were to agree to lease the airport property to the City.

Councilmember Cook said he talked with the City’s local representative for SRWMD and was told
SRWMD is not in a position to allow these monies to be used for anything other than the land
purchase, as these are regulated monies. Councilmember Cook said SRWMD would not be able to
help the City in this manner until rules are changed in legislature.
Page 5, September 11, 200, Special Session

Councilmember Scott requested that the Council allow her to attend the National Florida League of
Cities conference in Boston, Massachusetts in March of 2001, as she did not attend the state
conference with other Councilmembers in August. After a brief discussion, Councilmembers agreed to
discuss the request at the regular Council meeting Tuesday, September 12, 2000.

ADJOURNMENT.

There being no further business to come before the City Council at this time, the meeting was
adjourned at approximately 7:00 p. m.

ATTEST:

_______________________________ _________________________________
William E. Brynes, City Manager Richard Frith, Mayor

Recorded in official Minute Book:

___________________________ _________________________________
Annette Anderson, Secretary Date