1991.06.11_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH
FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
Tuesday, June 11, 1991 9:30 A.M.
Chairman S. Myron Browner called this Regular Meeting to order in Com-
mission Chambers at 9:30 A.M.
Deputy Town Clerk Doris Trinley called the roll. Present were the
Chairman, Vice Chairman Victor P. Hadeed and Regular Members Fred
Firstenburg and Dennie Freeman. Regular Member Richard Brunton was
absent.
Also in attendance were Commissioners Arlin Voress and John F. Rand,
Town Manager Mary Ann Mariano and Finance Director Michael Seaman.
Talent Bank Applicant Arthur Hamerman was in attendance to observe.
Upon MOTION by Mr. Firstenburg/Mr. Freeman, the Minutes of the May 21
Regular Meeting and June 6 Special Meeting were approved with unanimous
favorable vote.
OLD BUSINESS
Sub -Committee Meeting with WRAB Representatives
Chairman Browner asked for the sub -committee's report on their meeting
with Commissioner Arlin Voress and Jane Rayner, Chairman of the Water
Resources Board, wherein Mr. Firstenburg and Mr. Freeman had repre-
sented the FAB.
Mr. Freeman gave the report, which included an overview of what was
learned regarding the total water situation, and handouts to the mem-
bers relating to the water plant and wellfields. He also relayed Com-
missioner Voress' invitation to all the members to tour the plant in
the future.
Substantial discussion took place, with Commissioner Voress explaining
the criteria set by South Florida Water Management District regarding
the Town's long-range water supply plan, what data Montgomery Engineers
were gathering now in order to formulate such a plan and what informa-
tion must be transmitted to SFWMD by October 11, 1991.
Although the discussion covered areas that the members until now had
not been familiar with, and they were pleased to become more knowledge-
able about the total water situation, Town Manager Mariano noted for
the record that the Board's function in this area was limited to de-
liberating the funding of requests transmitted to them by the WRAB.
Financial Advisory Board
Regular Meeting - Minutes
. June 11, 1991
Paae 2 of 4
Presentations re Alternatives to Participation in State Pooled Funds.
It was agreed by the members that a full discussion of the presenta-
tions by Raymond James, Barnett Bank and Prudential Securities (Special
Meeting on June 6, 1991) would be held at a future meeting; however,
Chairman Browner invited Vice Chairman Hadeed to give the Board a brief
synopsis of his analyses of the presentations at this time, which was
done. The Vice Chairman also noted he had spoken with Cliff Hinkle,
Executive Director of the State Board of Administration and from him
learned that the Board was instituted by State statute in 1929 and the
pooled fund was formed 10 years ago, during which time it has been
consistently ranked in the top five of state funds. Regarding CD's, he
said Mr. Hinkle advised that all CD's with foreign banks are with banks
who have branches in the United States and have FDIC insurance; the
FDIC insurance limits apply to each participant's interest rather than
the CD as a whole. Mr. Hinkle added that they have a letter from FDIC
to this effect. The members agreed with the Town Manager's suggestion
that a copy of this letter be obtained for information purposes.
NEW BUSINESS
Continued Review of 1991/1992 Fiscal Year Expenditure Budget
(Enterprise Fund)
1) Water System
In review of expenditures for the coming fiscal year, areas of discus-
sion centered on:
.Worker's Compensation (5240), wherein it was noted these
figures were based on job description, i.e., risk of water
plant personnel being greater than, say, a clerical worker.
.Professional Services (5310), which included monies for
an engineering survey of Town water pipes (pressure, etc.)
.Repair & Maintenance -General (5460), which included monies
for items such as upgrading the generator and chemical
analysis equipment (it was noted that water plant personnel
are still using beakers to pour chemicals).
.Buildings (5620) reflected funds for re -painting of the
plant.
.Improvements -Other Than Buildings (5630) included monies
for one additional pipe under the ICWW.
Lengthy discussion took place, and many questions were raised, regard-
ing the figures shown in Depreciation Expense (5492) and Contingency
01 (5990). Commissioner Rand said he, too, as well as other past members
of the Financial Advisory Board, had questioned this method of presen-
tion; he added that although the previous outside auditors (Coopers &
Lybrand) had felt confident with this method, perhaps the newly ap-
pointed auditing firm (Presas & Haas) could suggest a clearer way of
presenting figures in these categories.
Financial Advisory Board
Regular Meeting - Minutes
• June 11, 1991 Page 3 of 4
2) Sewer System
Discussion included:
.Professional Fees (5310), which monies were allocated
for a study of the sewer system as called for in the
Comprehensive Plan.
.It was noted that no increase in rates would be recom-
mended by Staff; however, as requested by Chairman Browner,
Mr. Seaman will provide the members with a calculation of
the current rate structure.
3) Other:
Mrs. Mariano referred the members to Improvements -Transportation (5631)
under Capital Projects (30-06-19), explaining that the figure shown
represented an allocation for the repaving of streets on Bel Lido
Island.
Regarding fire/rescue contract costs, Mrs. Mariano advised that the
Palm Beach County Board of Commissioners had recently appointed her to
a seven -member countywide advisory board, which oversees the county's
fire/rescue department's requests, proposed expenditures, etc. She
said the opportunity will allow her "hands-on" knowledge, which in turn
she can transmit to the Board. Mrs. Mariano also noted that for the
first time a lease agreement for Station 53 (reflected in the Revenue
portion of the budget) had been negotiated with Chief Herman Brice,
Fire/Rescue Administrator, which would be in addition to the department
continuing to sustain expenditures regarding maintenance, repairs,
etc.
CONCLUSION
Concluding review, the following MOTION was made by Mr. Freeman/
Mr. Firstenburg and met with unanimous favorable vote:
THE FINANCIAL ADVISORY BOARD ACCEPTS THE PROPOSED
1991/1992 FISCAL YEAR EXPENDITURE BUDGET.
REVENUES
All categories were reviewed, with questions raised being answered sat-
isfactorily by Mrs. Mariano and Mr. Seaman.
It was the CONSENSUS of the members that the budget review calendar be
followed as scheduled, with their next meeting being held on Tuesday,
July 9 at 9:30 A.M., at which time additional revenue information will
be available for review.
Financial Advisory Board
Regular Meeting - Minutes
June 11, 1991 Page 4 of 4
There being no further business to come before the Board at this time,
the meeting was adjourned upon MOTION by Mr. Freeman/Mr. Hadeed at
11:25 A.M.
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•
ATTEST:
DATE:
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APPROVE: ML [ ` "'Y kAA—) /kll��_
S. Myron owner, Chairman
Victor P Hadeed ice C airman
Fred Firstenburg '
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Dennie Freeman
-ABSENT-
Richard Brunton