1992.07.07_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH
FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
Tuesday, July 7, 1992 9.30 A.M.
Chairman S. Myron Browner called the 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 Members Fred Firstenburg
and Frank A. Magarace. Member Thomas J. Reid was absent.
Also present were Commissioner John F. Rand, Town Manager Mary Ann
Mariano and Finance Director Michael Seaman. Mayor Joseph A. Boulay
was in the audience. There were no members of the general public
present.
Upon MOTION by Mr. Firstenburg/Mr. Hadeed, the Minutes of the June 16
Regular Meeting were unanimously approved.
OLD BUSINESS
None.
• NEW BUSINESS
Discussion re Election of Officers
After brief discussion, it was the CONSENSUS of the members that Chair-
man Browner and Vice Chairman Hadeed continue in their current capaci-
ties for the next year.
Presentation by AFLAC re "Cafeteria Plan" Benefits Program (Internal
Revenue Code 125).
AFLAC Associate John Dell explained the "cafeteria" concept whereby em-
ployees would have various options in selecting supplemental insurance
plans. He presented materials to all members, giving facts and figures
regarding offerings AFLAC could make to Town employees.
Mr. Dell's explanation of how deductions for premiums would be made,
i.e., deducted before taxable income was calculated so the Town would
not have to match with FICA taxes, elicited concern in that it was
noted this method would reduce the amount an employee would have
available for pension plan and Social Security contributions.
Concluding discussion, it was the CONSENSUS of the Board to have the
Town's accounting firm advise on Internal Revenue Codes 125 and 106
0
•
Financial Advisory Board
Regular Meeting - Minutes
July 7, 1992 Page 2 of 3
regarding the concerns raised, as well as advise if the Town itself
might qualify under these Codes to offer its own supplemental insurance
to employees.
Note: AFLAC materials will be filed separately from Minutes in
Financial Advisory Board General Files in the Town Clerk's
Office.
Final Review of 1992/1993 Fiscal Year Budget (Revenue); Setting of
Recommended Millage Rate.
Lengthy discussion and review of revenues took place; pertinent areas
included:
Ad Valorem Taxes [3111]: Mrs. Mariano explained that in order
not to raise taxes in the last fiscal year, it was the FAB's
recommendation that $400,000 be taken from reserves, which kept
the budget balanced. This year not only would the same amount
have to be drawn from reserves, but another $200,000 had to be
accounted for due to increased fire/rescue rates. Since total
reserves at the close of the current fiscal year will equal only
$446,000, it was recommended by Mrs. Mariano that the Board con-
sider a recommendation to the Town Commission to increase the
millage rate for 1992/1993 from 2.5653 to 3.4383 (difference:
0.8739). It was noted for the record that the percentage of
the millage to fund fire/rescue equalled 2.24649 of the proposed
3.4383 millage as opposed to a current total millage of 2.5653.
It was also again noted that Mrs. Mariano is in ongoing
negotiation with Palm Beach County Commissioners in an effort
to get the current fire/rescue assessment methodology changed
from valuation to population, and that hopefully this will be
accomplished in time for fiscal year 1993/1994 (See Minutes of
June 16) .
It was noted that several properties, including single and multi-
family, are not represented in 1992/1993 tax revenues since they
were not CO'd by January 1, 1992. It was agreed these will make
a significant addition when the 1993/1994 fiscal year budget
is addressed.
In order to offset the necessary increased fees in garbage/
trash/recycling fees, Mrs. Mariano suggested the contract
fee from County Sanitation be absorbed to this end [3130].
Due to necessary increases in fire/rescue and sanitation,
it was recommended to the Board that they not consider any
increase in water and sewer rates.
Financial Advisory Board
Regular Meeting - Minutes
July 7, 1992 Page 3 of 3
• Concluding discussion and review, the following recommendations for
transmittal to the Town Commission were unanimously approved:
A MILLAGE RATE OF 3.4383*, INCLUDING DEBT SERVICE;
HOWEVER, THE MEMBERS WISH TO GO ON RECORD THAT THE
CURRENT FIRE/RESCUE METHOD OF ASSESSMENT VALUATION
TO DETERMINE RATES IS STRONGLY OPPOSED AND IT IS THE
BOARD'S RECOMMENDATION THAT THE TOWN COMMISSION DIRECT
THE TOWN MANAGER TO CONTINUE TO NEGOTIATE WITH PALM
BEACH COUNTY COMMISSIONERS TO BRING ABOUT A CHANGE IN
SUCH METHODOLOGY FROM VALUE ASSESSMENT TO POPULATION
ASSESSMENT. (Mr. Firstenburg/Mr. Magarace)
* It was noted that additional Motions for recommending approval
of the budget as presented were not necessary as this approval
was inherent in the millage rate recommendation.
WATER RATES REMAIN UNCHANGED:
0.95..... 1ST 20,000 GAL. PER 1,000 GAL.
1.35..... AFTER 20,000 GAL. PER 1,000 GAL.
3.00..... PER MONTH UNIT CHARGE
(Mr. Magarace/Mr. Firstenburg)
SEWER RATES REMAIN UNCHANGED:
11.75 PER MONTH PER UNIT
(Mr. Magarace/Mr. Firstenburg)
GARBAGE AND TRASH RATES AS FOLLOWS:
10.50..... CURBSIDE {CURRENTLY 7.75}
6.70..... CONDOMINIUM {CURRENTLY 4.25}
[RECOMMENDED INCREASES DUE TO EXISTING CONDITIONS
OF COUNTY SANITATION CONTRACT, AS WELL AS STATE
MANDATE REQUIREMENT THAT YARD TRASH BE SEPARATED
FROM GARBAGE.]
(Mr. Firstenburg/Mr. Hadeed)
There being no further business to come before the Board, the next
meeting was set for October 6; upon MOTION by Mr. Hadeed/Mr. Magarace,
this Regular Meeting was adjourned at 11:10 A.M.
dmt
APPROVE:] 4 ��
S. Myron Browner, Chairman Victor P. Hadeed, Vice Chairman
Fred Firstenburg Frank A. Magarace
0 ATTEST:
DATE: '16J-7j / 7
t
MEMORANDUM
TO: TOWN COMMISSION
FROM: S. MYRON BROWNER, CHAIRMAN
FINANCIAL ADVISORY BOARD
DATE: JULY 7, 1992
SUBJECT: 1992/1993 FISCAL YEAR BUDGET RECOMMENDATIONS
At a meeting of the Financial Advisory Board this date, the members
unanimously made the following recommendations regarding the 1992/1993
Fiscal Year Budget, which are transmitted herewith:
. A MILLAGE RATE OF 3.4383, INCLUDING DEBT SERVICE;
HOWEVER THE MEMBERS WISH TO GO ON RECORD THAT THE CURRENT
FIRE/RESCUE METHOD OF ASSESSMENT VALUATION TO DETERMINE
RATES IS STRONGLY OPPOSED AND IT IS THE BOARD'S RECOMMEN-
DATION THAT THE TOWN COMMISSION DIRECT THE TOWN MANAGER
TO CONTINUE TO NEGOTIATE WITH PALM BEACH COUNTY COMMIS-
SIONERS TO BRING ABOUT A CHANGE IN SUCH METHODOLGY FROM
• VALUE ASSESSMENT TO POPULATION ASSESSMENT.
. WATER RATES REMAIN UNCHANGED:
0.95..... 1ST 20,000 GAL. PER 1,000 GAL.
1.35..... AFTER 20,000 GAL. PER 1,000 GAL.
3.00..... PER MONTH UNIT CHARGE
SEWER RATES REMAIN UNCHANGED!
11.75 PER MONTH PER UNIT
GARBAGE AND TRASH RATES AS FOLLOWS:
10.50..... CURBSIDE {CURRENTLY 7.75}
6.70..... CONDOMINIUM {CURRENTLY 4.25}
[RECOMMENDED INCREASES DUE TO EXISTING
CONDITIONS OF COUNTY SANITATION CONTRACT,
AS WELL AS STATE MANDATE REQUIRMENT THAT
YARD TRASH BE SEPARATED FROM GARBAGE.]
i
S. Myron 11rowner
Is /dmt
cc: Town Manager