1986.02.11_FAB_Minutes_Regular.. ti _
TOWN OF HIGHLAND BEACH, FLORIDA
FINANCIAL ADVISORY BOARD
February 11, 1986 10:00 A.M.
A meeting of the Financial Advisory Board was held at Town Hall on
Tuesday, February 11, 1986 at 10:00 a.m.
Those attending included members Richard Brunton, Ben Cohen.
Walter Peklenk, and Reese James. Town Commissioner Grier and Town
Manager Williams were also present throughout the meeting.
The Minutes of the January 27, 1986 Meeting were approved as
written.
The following two subjects were then taken up:
-Town Organizational Chart
3 Charts were reviewed (1) The chart as adopted by the
Commission dated Oct. 1, 1982; (2) The chart as it
appears to function this date as reviewed by the Town
Manager; (3) The chart as proposed by the Town Manager
for ultimate presentation to the Commission.
It is the unanimous feeling of the FAB that the present
(1982) chart is in need of restructuring, that several
of the positions as currently provided both in the
budget and in the organizational chart should be
reviewed as to need considering the decline in Town
Hall activity and the advent of data processing.
The FAB concluded its discussion on this subject by
requesting the Town Manager to give further thought
to his proposed chart and preparing a revision with
new data as requested in the discussion.
- Trash/sewage charges
This matter received an extensive discussion with
particular concern on the effect to property owners
should the town move from a fee -for -service policy
to a tax -based recovery of the expenses for these
services.
Bearing in mind the enclosed data as it pertains to
this subject, the FAB unanimously recommends that the
Town Commission consider changing from the present
fee -for -service policy to a policy of incorporating the
expenses for these services in the general tax structure
effective with the 1986/87 tax year.
Financial Advisory Board
February 11, 1986
Page 2 of 2
At this point, the meeting had to adjourn at 12:00 noon because of
other commitments of it's members.
Resp ctfully submitted,
7� w _ 1
Reese E. James, Chairman
copies: Members, FAB
Town Commissioners
Town Manager
Enclosures
December 5, 1985
MEMO TO: Financial Advisory Board Members
FROM: Reese James, Chairman
SUBJECT: Trash and Sewage Charges
Over the past year several requests have been posed to the
Commissioners regarding the Town's present policy at charging
property owners for trash and sewage service on a fee for service
basis. While the Commissioners have not specifically asked the
F.A.B. to review this policy, it has been suggested that it would
be appropriate for us to do so and, as you will recall, this item
was included on our projects list for this year, copy of which
was furnished to the Commission members.
In reviewing this subject, I find that in the years past, the ex-
penses for these items were included in the general tax struc-
ture. The question for us is whether the F.A.B. should recommend
to the Commission that the Town, as a matter of policy, should
return to the practice of including trash collection and sewage
disposal in our annual general budget and thus to the individual
property owners tax rate.
In considering this matter, I am unable to deterimine any signifi-
cant disadvantage to the Town and to the contrary, believe there
are some benefits to be gained if such a change were made.
Using data from the fiscal year just ended on 9/30/85, the fol-
lowing reflects the financial aspects of these items:
Sewage, Revenue $500,508
Expenses 619,477 Incl. $60,000 Adm charge
Gain (Loss)$(118,969)
Sanitation/
Refuse Revenue $190,753
(Trash) Expenses 166,906 Incl. $5,000 Adm charge
Gain (Loss) $ 23,847
Financial Advisory Board
December 5, 1985
Page 2
Obviously, the Town could not go into debt for the loss in oper-
ating the sewage system, therefore, the $118,969 loss has been
made up out of the general fund (taxation).
As mentioned earlier, I find no disadvantage to the Tbwn. Again,
obviously, the Town must recover its expenses either through taxes
or fees. I do find two advantages for the Town, though: 1. In
collecting the taxes early in the fiscal year, the monies are put
into interest bearing accounts until needed and thus, the Town
will gain the interest earnings on some $700,000; 2. by using the
tax source for payment, the Town would eliminate the clerical and
mailing expense of the billings now associated with the tax
system.
There is an advantage to the property owner --payments for the fee
system are not tax-deductible, whereas, payment through the tax
system is a Federal and where applicable, a State tax tax deduc-
tion.
At the present both sewage and trash are collected from the
Condominium Associations which, in turn, collect from the property
owners thru their operating assessment. This assessment is not
tax deductible. Again, payment through the tax assessment would
be tax deductible.
If we were to assume that the average property owner in this
Town is in the 30% Federal tax bracket, and using the earlier
mentioned $700,000 as the combined expenses of these items, then
the net savings to the property owners in total would be some
$210,000 a year. Figures as of 8/31/85 indicate that the Town
has some 3200 residences, this would calculate out to some $65 per
residence in savings. Not huge, but I believe the 30% for an
average tax bracket to be conservative, and at any rate, the
savings can be made without a cost to the Town.
I would appreciate your review of the above in preparation for
our December 18th meeting at which time this item will be on our
agenda.
Reese James, Chairman
Financial Advisory Board
RJ/bms
cc: Mayor Sullivan, Commissioner Grier, Town Manager