1989.08.22_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH
FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
Tuesday, August 22, 1989 9.30 A.M.
A Regular Meeting of the Financial Advisory Board was called to
order by Chairman Fred Firstenburg at 9:30 A.M. on Tuesday,
August 22, 1989 in the Commission Chambers at Town Hall.
Members present included Chairman Firstenburg, Richard Brunton,
Victor Page and Grover Ensley. Vice Chairman Benjamin Cohen was
absent.
Also present were Mayor Joseph A. Boulay, Town Manager Mary Ann
Mariano, Chief Accounting Officer Stanley Novak and Deputy Town
Clerk Doris Trinley.
(� A MOTION was made by Mr. Brunton/Mr. Page to approve the minutes
of the July 11, 1989 meeting as submitted. All members voted AYE.
OLD BUSINESS
Mr. Page addressed Town Manager Mariano asking her to clarify the
need for two additional employees in the Maintenance Department as
reflected in the 89/90 FY budget which the FAB has already recom-
mended for approval. Specifically, he wanted to know if these em-
ployees would eliminate the need for all contractual services re-
garding janitorial and landscaping services. Mrs. Mariano re-
sponded affirmatively and further stated that with such an addi-
tion the Town would achieve a better aesthetic quality as there
will be more control of the workload, rather than an itinerant ap-
proach to same as happens with contractual and/or part-time
labor.
Members of the Board were presented with copies of comparison
figures regarding COLA and percentage spreads of merit -increases
compiled from surrounding communities by Town Manager Mariano. A
brief discussion followed, with Mr. Brunton questioning how the
COLA figures could vary so much. Mrs. Mariano explained that not
all municipalities use CPI, as does Highland Beach. It was
generally agreed by the members that the Town's standing in this
compilation was favorable.
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FINANCIAL ADVISORY BOARD
August 22, 1989
Regular Meeting - Minutes Page 2 of 4
NEW BUSINESS
Review of July Financial Statement/Final Budget Transfers
Mr. Novak addressed the Board regarding the July Financial State-
ment and Final Budget Transfers, noting that he would cross-
reference same as he gave his review. He gave an in-depth expla-
nation of the financial statement, concluding that in general it
was on target. The final budget transfers included additional
advertising and services required for the Comprehensive Plan,
additional hours required for a permanent part-time accounting
clerk, an increase in regular salaries due to the addition of a
temporary part-time employee in the Maintenance Department, an
increase in bond paying agent fees, and finally, monies required
for additional legal counsel regarding Broadview litigation (Hid-
den Harbor). Mrs. Mariano noted here that the Town Attorney's fee
for these services is $75-$90 @ hour; the additional legal counsel
fees are billed to the Town at $125-$150 @ hour. Mr. Brunton
asked if the amount of monies indicated for additional legal
counsel might have a deleterious effect on the opposition should
they become aware of that amount. Both Mrs. Mariano and Mayor
Boulay felt it would make no difference since trial is set for
December 1989.
Regarding expenditures, the Town Manager noted that the Town Com-
mission had not only authorized a reverse osmosis study regarding
the Town's water needs, but had also called for an' addendum to
same, to include location of the plant behind Town Hall, cost of
another water line under the Intracoastal Waterway, and any envi-
ronmental concerns the engineers (J.M. Montgomery) thought appli-
cable.
Mr. Novak and Mrs. Mariano discussed current expenditures regard-
ing delinquent water bills, explaining that at least 25-30
notices are sent out monthly at the cost of $2.00 each for
"Certified Mail, Return Receipt Requested." Under this system,
the Town not only incurs a sizeable yearly cost, but turn-off
dates vary considerably since turn-off takes place five (5) days
after the signed receipt arrives back at Town Hall. It was felt
that under this system some consumers were "beating the system"
by refusing to sign for the notice; therefore, no receipt, no
water shut off. The proposed system, which has been cleared with
the Town Attorney, would be in "Notice" form, sent regular mail,
advising that service will be terminated ten (10) days after the
date of Notice should invoice not be honored. Utilization of this
system will stabilize the date of turn-offs, conserve time for
water plant personnel, and the Town will not have to bear the cost
of certified mail. This system will be presented to the Town
Commission, in ordinance form, for discussion at their August 29
Workshop Meeting.
FINANCIAL ADVISORY BOARD
Regular Meeting Minutes
August 22, 1989 Page 3 of 4
When the discussion regarding the July Financial Statement and the
Budget Transfers had concluded, a MOTION was made by Mr. Brunton/
Mr. Ensley recommending that the transfers be approved as pre-
sented. All members voted AYE.
At this time, the Town Manager and Chief Financial Officer opened
a discussion regarding the concept of "cafeteria," i.e., "pick and
choose" fringe benefits. Mrs. Mariano offered that some companies
already have put this concept into effect and, for the purpose of
future consideration, she had asked Mr. Novak to work up an across
the board figure as to what the Town's fringe benefits are worth.
Basically, they explained, this concept allows employees to re-
ceive the value of their fringe benefits in "cash;" in turn, they
can then shop for their own coverage regarding life, health,
dental, accident/liability, retirement, etc., with the proviso
that the company receive proof of such coverage. Chairman
Firstenburg stated that while he would welcome more information on
the concept, he felt this approach defeats the reason for fringe
benefits, as some employees might opt to take the money and not
think ahead, to which Mrs. Mariano repeated that proof of cover-
age to the employer was a key factor in utilizing this system.
Mr. Firstenburg added further he believes a fringe benefit of "X
dollars cash" would purchase substantially more benefits for an
• employee of low age than it would for an older employee. If such
be the case, it would be basically unfair to older employees,
while extremely liberal to younger employees. Fringe benefits, he
stated, are historically a paternalistic gesture on the part of an
employer and to "saddle" the employee with making his own
individual insurance negotiations as opposed to group negotiations
could defeat the whole concept of employee fringe benefits.
After a lengthy discussion of this concept, including many ques-
tions from the Board members, it was the CONSENSUS of the members
that this approach to fringe benefits would bear discussion at a
future meeting.
Regarding the upcoming fiscal year's contract with County
Sanitation, Mrs. Mariano and Mr. Novak asked the Board to make a
recommendation regarding an increase in rates due to elevated
tipping fees and the inclusion of three holidays (Thanksgiving,
Christmas and New Year's Day) as days for garbage pickup, noting
that these holidays fall on regular pickup days. After a discus-
sion regarding what additional charges would be incurred, a MOTION
was made by Mr. Brunton/Mr. Ensley to recommend that the Town
increase the fees to include these three holidays for garbage
pickup, based on a 5% administrative charge.
ri
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FINANCIAL ADVISORY BOARD
Regular Meeting - Minutes
August 22, 1989 Page of 4 of 4
It was decided by the Board members not to set a date for the next
meeting, but to await word from the Town Manager as to when same
will be needed.
There being no further business to come before the Board, the
meeting was properly adjourned upon MOTION by Mr. Brunton/
Mr. Ensley at 11:40 A.M.
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APPRO rED,-Q
Fred Firstenburg, Chairman
-ABSENT -
Benjamin Cohen. Vice Chairman
Richard Brunton
�5/' ;-, e 0�
Grover EnsYet
Victor P ge
ATTEST
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