1990.10.16_FAB_Minutes_Specialf
TOWN OF HIGHLAND BEACH
• FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
Tuesday, October 16, 1990 1 30 P.M.
Chairman Fred Firstenburg convened this Regular Meeting of the Finan-
cial Advisory Board at 1:30 P.M. in Commission Chambers.
Present were the Chairman, Vice Chairman John F. Rand and Regular Mem-
bers Richard Brunton and Victor J. Page.
Also present were Chief Accounting Officer Michael W. Seaman, Deputy
Town Clerk Doris Trinley and members of the general public.
It was noted that Town Manager Mary Ann Mariano would join the meeting
as soon as her schedule permitted.
Also noted was the fact that Doris R. Rome had resigned from the Board
under doctor's orders, thereby creating a vacancy.
After brief discussion, the minutes of the Regular Meeting of August
23, 1990 were unanimously approved upon MOTION by Mr. Rand/Mr. Page.
• Mr. Firstenburg noted that the meeting was being held to review the
following:
1) Water Rates
2) Solid Waste Rates
3) Town Telephone Policy
WATER RATES
Discussion during this review included the fact that the Town Commis-
sion had deleted monies from the budget that were included to cover
partial costs of two (2) new pipes under the Intracoastal, which in
turn affected the previously recommended water rates. In this regard,
A.G. Voress, Chairman of the Water Resources Advisory Board, addressed
the Board, advising that the Town's Consumptive Use Permit, which was
approved by South Florida Management District on October 11, was based
on certain requirements regarding a long-term water supply solution.
Because of these SFWMD requirements, Mr. Voress asked the Board that
their deliberations regarding water rates include consideration that
costs for engineering study(s) would most likely be incurred during the
fiscal year.
Town Manager Mariano joined the meeting during this discussion and
regarding questions of the Town Commission's action deleting budgeted
monies for the Intracoastal pipes, explained that the Commission had
• decided to take such course of action as empowered to do so. The FAB
members did not question the Commission's right to make such a decision
but rather felt that the FAB was entitled to some feedback from the
Town Commission so as to be guided in the future on such matters.
Mrs. Mariano then advised that the Commission had included the subject
of Intracoastal pipe(s) for discussion during their Workshop Meeting
scheduled for October 30.
!Financial Advisory Board
Regular Meeting - Minutes
October 16, 1990 Page 2 of 4
Asked if the Board could delay a recommendation on rates until the
Commission Workshop Meeting, Mrs. Mariano replied it was necessary that
rates be decided now to ensure monies already budgeted. She added that
since first reading of the related ordinance would not be until Novem-
ber (for adoption in December), there would be time to re -adjust rates
should the Commission decide to go ahead with new Intracoastal piping.
After some further discussion, and based on input from Mr. Voress and
Mrs. Mariano, the Board voted unanimously, upon MOTION by Mr. Rand/Mr.
Page to recommend water rates for the 1990/1991 Fiscal Year as follows:
@ 37,443 1st 10...........1.00 (current = 0.75)
@ 336,985 gal. ...........1.10 (current = 0.90)
Unit Charge @ 3,594....... 3 (current = 3)
Before addressing solid waste rates, a discussion took place regarding
the function of the Financial Advisory Board, during which it was noted
that the Board's recommendations to the Town Commission were sometimes
arbitrarily dismissed, without the Board being given a chance to
explain why it felt such recommendations were necessary. Specifically
referred to was the FAB's recommendation, based upon the Water Re-
sources Board's recommendation, that the budget include monies to cover
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the cost olaying two (2) new pipes under the Intracoastal. It was
noted that there is now only one working line, which was installed in
1975. In this regard, Mrs. Mariano stated that the Town Commission ob-
viously made its decision after careful deliberation, but that such
concerns of the Board should be addressed directly by them to the Town
Commission, rather than being conveyed by any staff member.
Questioned about her policy statement as to general administration of
Town budgets, Mrs. Mariano explained she held to the position, first
made in 1988, that reserves should equal the total budget. Mr. Seaman
noted that this had just about been accomplished at the present time.
Asked to explain this stance, Mrs. Mariano gave the occurrence of a
hurricane as an example, reminding the members of the Town's barrier
island status. Should the Town suffer such devastation, she added,
reserve funds equaling a year's total budget would allow the Town to
begin the process of re -building. Building reserves to approximate
total budget thus far, Mrs. Mariano noted, had been accomplished with
no detriment to the tax -payers.
SOLID WASTE RATES
A discussion of the rate schedules included the fact that "tipping"
fees will now be billed directly to taxpayers, as well as the fact that
any monies realized from the recycling program will go directly to
County Sanitation. Also, the Town Manager advised that a reimbursement
schedule from County Sanitation for contract fees was in place for the
first time.
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Financial Advisory Board
Regular Meeting - Minutes
October 16, 1990
Paqe 3 of 4
After some further discussion, and upon MOTION by Mr. Brunton/Mr. Rand,
the Board voted unanimously to recommend solid waste rates as follows:
374 Curbside Units . .............7.75
3135 Commercial Yards.............4.25
TOWN TELEPHONE POLICY
Mrs. Mariano explained to the members that during the course of budget-
ary meetings, concern had been expressed by some of the Commission mem-
bers in two areas. The first had to do with the use of Town telephones
by employees for personal calls (long-distance and local), including
the fact that no administrative charges were passed on to the employees
when they were presented with invoices for personal calls. The second
area had to do with the allocation of communication costs to all de-
partments, since some of the Commission members were of the opinion
that a more creditable allocation should be put in place.
Mrs. Mariano presented the members with copies of personal phone calls
made by employees during the last six (6) months, saying the Town
Commission had asked that the FAB do an analysis of same, possibly with
a view toward a policy change in this regard. The members questioned
the dollar amount of personal calls during the past year; Mr. Seaman
replied approximately $250.00, which included local, long-distance and
fax messages. Asked how much administrative time monthly is alloted
for invoicing personal calls, Mr. Seaman said approximately one (1)
hour. During the course of discussion, the Town Manager suggested the
members might want to consider a recommendation that a fixed adminis-
trative charge be attached to personal calls. The members were also
provided with a hand-out sheet, which showed total communication costs
of $6,018.72 for eight (8) lines, plus the fax line, for fiscal year
1989/1990. (This information is attached to and made part of these
minutes.)
After further discussion, it was the CONSENSUS of the members that they
not take on this project, as it was felt the amount of time and money
involved regarding employee personal calls was minimal and there was no
evidence of abuse of existing policy in any department. The members also
declined to recommend the addition of an administrative charge.
Regarding allocation of communications costs to each department, Mr.
Seaman was advised by Mr. Brunton of a possible way to do this, i.e.,
divide fixed costs according to the number of phones in a department;
for long distance charges, research the charges for the past two months
or so and base their allocation on the percentage of use per depart-
ment. Mr. Seaman agreed to research this approach.
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TOWN OF HIGHLAND BEACH
COMMU�?ICATION COSTS
FISCAL YEAR. 1989/90
COMPANY AMOUNT
--------- ---------
AT&T 363.23
SOUTHERN BELL 59030.07
U.S. SPRINT 625.42
TOTAL 6,018.72
MONTHLY AMOUNT 501.56
8 LINES /8
MONTHLY PER LINE 62.695
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