1987.05.12_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH, FLORIDA
FINANCIAL ADVISORY BOARD
MINUTES OF REGULAR MEETING
Tuesday, May 12, 1987 9:30 A. M.
A meeting of the Financial Advisory Board was held at 9:30 a.m. on
Tuesday, May 12, 1987, at Town Hall.
Members present included Richard Brunton, Benjamin Cohen, Walter
Peklenk, and Reese James. Commissioners David T. Robinson and Robert
Scholz were also in attendance throughout the meeting, as was Town
Manager Hugh D. Williams.
The Minutes of the April 21, 1987 meeting were approved as published.
Under correspondence, an opinion letter from Town Attorney Thomas E.
Sliney on the subject of the "State Sunshine Law" as it pertains to
4 Town Advisory Boards was reviewed with the F.A.B. Members. It was also
noted that a 1987 publication of the State Attorney General states that
machine taping of such a meeting is not considered as required and
following discussion by the F.A.B., it was unanimously agreed that the
F.A.B. would continue its' present method of recording the actions of
its' meetings.
Other agenda items considered included:
SEVEN (7) MONTH FINANCIAL STATEMENT, APRIL 30, 1987.
There were no items that appeared to merit exceptional comment,
although monthly data was not available for evaluation.
1986/87 BUDGET UPDATE.
The detail, as developed by the Finance Director, was reviewed
during which the following were noted:
A) Insurance
Original budgeting provided for this expense to be
"allocated" among the various departments, however,
it is now proposed to allocate most of this expense to
the "General Public Buildings" Department as a more
appropriate budgeting. This matter has received
considerable discussion in prior meetings and in the
absence of more specific guidelines or recommendation
from the Town auditors, it is the F.A.B. thinking that
this new proposed allocation is appropriate.
Minutes of Financial Advisory Board Regular Meeting
May 12, 1987
Page 2 of 3
B) Page 4--Finance Department
The increase in software expense is to provide the
"software" for the Town auditor recommendation to
establish a fixed asset record.
C) Page 5--General Public Buildings
The sizeable reduction in "regular salaries" is due
primarily to the resignation of an employee in this
department and the Town Manager's decision not to fill
the vacancy for the balance of this fiscal year.
D) Page 6--Boards and Committees
Professional Fees is being reduced due to State
financing that will reimburse for this item.
Special Pay (Honorarium) is being reclassified to
Professional Services and will be financed out of the
remainder in this account.
Following this review, the F.A.B. concurred in the proposed revisions
to the 1986/87 budget and recommends this proposal to the Town
Commission.
INVESTMENT POLICY.
A draft of this matter was developed by the Finance Director and
preliminary review indicates the "draft" to be thorough and well
done. In the course of this discussion, the Chair introduced an
opinion letter (May 1, 1987) from Town Attorney Sliney advising
that Florida Statutes, Chapter 280.09 (page 1639) specifically
secures the Town's funds that are on deposit in a State
"qualified public depository" and, further, that the Town should
make provision for assuring that the Town's depositiories continue
their "qualified public depository" status.
The proposed investment policy will receive further consideration
at the next F.A.B. meeting.
WATER/SEWER ENTERPRISE FUND.
The matter of combining these two funds continues to be discussed.
On April 28, 1987, Memorandum from the Town Manager on this
subject recommends that further consideration of this proposal be
deferred pending further experience with the new bi-monthly
billing (through the balance of fiscal 1986/87) and that this
proposal be again taken up in fiscal 1987/88. The Town Manager
also recommends that excess funds (approximately $250,000) in the
sewer Fund "be applied towards the reduction of the outstanding
indebtedness of the sewer system". The auditor's report for
fiscal 1985/86 shows a balance outstanding of $500,000.00 in
Minutes of Financial Advisory Board Regular Meeting
May 12, 1987
Page 3 of 3
principal. These bonds carry an 8% interest rate. Significant
reduction or elimination of this debt would significantly
strengthen the Town's financial posture in preparation for
financing the proposed expansion of the water system.
This whole matter will receive further review at the next meeting
of the FAB for a recommendation to the Town Commission.
RETIREMENT PLAN.
This matter was given further consideration and it was the sense
of the F.A.B. to defer the matter pending the "Long Report" due on
or about May 31st and upon receipt, the Town Manager is to develop
a written recommendation for review by this Board.
EMPLOYEE WAGES AND BENEFITS.
This matter, too, is to be deferred pending a specific proposal
from the TownManager, following receipt of the "Long Study".
1987/88 CAPITAL PURCHASE BUDGET.
The Town Manager reviewed his yearly update of the Five-year
Capital Improvement Program, which provides approximately some
$323,000.00 for items considered or needed in fiscal 1987/88.
This matter will be again reviewed in conjunction with the 1987/88
Operating Budget review.
TOWN COMMISSION ACTION.
Note was made of the Town Commission action at their May 5, 1987
meeting regarding the Town Clerk's Memorandum of April 10, 1987.
This meeting adjourned at 11:30 a.m. with the next meeting being
scheduled for Tuesday, May 26, 1987, at 9:30 a.m.
Re ectfully submitted,
Reese E. James, Chairman
REJ:elk
cc: FAB Members
Town Commission
Town Manager
Finance Director