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1988.06.21_FAB_Minutes_Regular• U TOWN OF HIGHLAND BEACH, FLORIDA FINANCIAL ADVISORY BOARD REGULAR MEETING - MINUTES Tuesday, June 21, 1988 9.30 A.M. A regular meeting of the Financial Advisory Board was called to order by Acting Chairman Richard Brunton at 9:30 A.M. on Tuesday, June 21, 1988 at Town Hall. Members present included: Acting Chairman Richard Brunton, Benjamin Cohen, and Fred Firstenburg. Members George Harbin and Grover Ensley were absent. Also present for the meeting were Mayor Betty Jean Stewart, Chief Accounting Officer Stanley Novak, Town Manager Mary Ann Mariano, and Recording Secretary Redawna Bavender. MOTION was made by Mr. Firstenburg/Mr. Cohen to approve the minutes of the May 12, 1988 Regular Meeting of the Financial Advisory Board as amended. The amendments being the deletion of the words "All voted AYE" from the third last and the fourth last paragraph on page two, and changing the salary figure fron► $40,082.00 to $40,081.00 in the fifth last paragraph on page two. All voted AYE. CORRESPONDENCE: There was no correspondence to be discussed. OLD BUSINESS: - REVIEW MAY FINANCIAL STATEMENT Mr. Stanley Novak, Chief Accounting Officer, discussed the May 1988 Financial Statement by reviewing both the expenditures and revenues of the Town. Shortfalls were noted in a few departments, but Mr. Novak noted that nothing was drastically out of line. - DISCUSSION RE WATER RATES Mary Ann Mariano, Town Manager, stated that the basis for the increased water rates is to alleviate the necessity of general fund subsidization of the water enterprise fund as well as to create a reserve in the water fund. This reserve may be used for en►ergencies that may arise as well as assist in the costs which will be associated with the Town's long term water needs. Mrs. Mariano will reconunend that the Town budget a 10% reserve figure in next year's budget. Several rate scenarios were presented to the Financial Advisory Board. Mayor Stewart complemented Mr. Novak on the excellent package he put together using the new Lotus progran►. • FINANCIAL ADVISORY BOARD - REGULAR MEETING MINUTES •June 21, 1988 Page 2 of 3 Mayor Stewart questioned Mr. Novak as to what additions can be programmed into the computer to add a one time surcharge in. Mr. Novak stated he felt Pressus and Haas would probably have to make a program change, but felt it wouldn't be too costly. Mr. Cohen and other members of the Board concurred that that transferring of excess funds from sewage to water and/or combining such funds should be studied as an alternative to increasing water rates. Mayor Stewart read a memorandum, dated March 1987, from Becky Morse, former Finance Director, where Ms. Morse felt combining the water and sewage funds would only mask the problem of the water system not being a self sustaining enterprise and would not resolve the overall problem. Acting Chairman Brunton stated he would like to see a short evaluation prepared of something being done jointly between sewage and water, mainly a reduction in one and an increase in the other, and/or transferring fron► one account to the other. An evaluation will be prepared and addressed at the July Financial Advisory Board Meeting. NEW BUSINESS: • - DISCUSSION RE 88/89 FY BUDGET The revenue portion of the 88/89 Fiscal Year Budget was discussed. It was noted that there may be an increase in revenues obtained from advalorem taxes to maintain the current millage rate and increase the reserve appropriately. With regard to an inflationary factor to be used for salary adjustments pursuant to the policy of the Town, Mr. Novak stated that the CPI figure was at 3.7% at April 30, 1988. Documentation as to that fact will be presented to the Board at a later date. The next meeting of the Financial Advisory Board will be held on Tuesday, July 12, 1988 at 9:30 A.M. The meeting was properly adjourned at 12:15 P.M. APPROVED: - ABSENT - George M. Harbin, Chairman Ri air Brunto • FINANCIAL ADVISORY BOARD - REGULAR MEETING •June 21, 1988 Page 3 of 3 A Benja n Cohen - ABSENT - Grover y Fred Firstenburg cc: FAB Members, Town Commission, Town Manager • n LJ