1993.06.17_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH
FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
Thursday, June 17, 1993 9:30 A.M.
Chairman S. Myron Browner called the Regular Meeting to order in Com-
mission Chambers at 9:30 A.M.
De,puty Town Clerk Doris Trinley called the roll. Present were the
Chairman, Vice Chairman Victor P. Hadeed and Members Fred Firstenburg
and Thomas J. Reid. Member Frank Magarace was absent.
Also present were Commissioner John F. Rand, Town Manager Mary Ann
Mariano and Finance Director Michael Seaman.
Upon MOTION by MR. FIRSTENBURG/MR. HADEED the Minutes of March 26,
1993 were unanimously approved.
OLD BUSINESS
40 The subject of delinquent taxes was discussed at some length. It was
noted that, the County's computer system could not provide a list of
individuals who were in arrears, rather the Town was only apprised of
the total amount owed. Ms. Mariano said that although the Town cannot
get involved in the collection of taxes, staff would check to see if
an invidualized list could be obtained.
Advising that through Commissioner Rand the Town Commission had
recently focused on the "three absences and you're out" rule re
members attendance at Board meetings, Ms. Mariano requested the
members give their thoughts on this rule now so she could report back
to the Town Commission. At the conclusion of substantial discussion,
MOTION by MR. HADEED/MR. REID that the rule remain as is now written
for the FAB received unanimous favorable vote.
NEW BUSINESS
In response to the Chairman's inquiry, Commissioner Rand advised that
the refinancing of the 1979 General Obligation Bond Issue had been
completed. He added that because Moody's had given an 'A' rating
bond insurance was unnecessary, and legal expenses had been less than
anticipated; therefore, a savings of $201,378 [net] would be realized
by the Town over the course of years to the bonds' maturity, which had
remained unchanged.
• Financial Advisory Board
Regular Meeting - Minutes
June 17, 1993 Page 2 of 5
The Commissioner also advised that $1-1/2 million had been taken out
of the State Pooled Investment Fund and invested in U.S. Treasury
Notes, which constituted approximately $30-$40,000 in additional
income a year to the Town.
Town Manager Mariano announced that two new contracts had been entered
into, which the Board would find reflected in the 1993-1994 budget.
First she noted that the Town had opted out of its County contract for
the provision of fire/rescue services, citing escalating costs and the
County's refusal to assess in any way but valuation assessment, which
had the effect of the Town subsidizing the cost of such services for
other fire/service areas in the county. Starting October 1, 1993 the
City of Delray Beach will provide the Town's fire/rescue services at a
savings of approximately $200,000 a year over last year, and $400,000
over the county rate for this coming fiscal year. Length of the
contract is 10 years, with increases to be based on the CPI every
year. Delray will initially provide equipment as well as personnel;
however, at the appropriate time the Town will lease or purchase its
own equipment. Besides the savings to the Town, Ms. Mariano said
individual residents should realize a savings and will be
appropriately notified to contact their insurance companies regarding
possible available discounts in that Delray has the more favorable '3'
protection classification rating versus the County's '4' rating;
because of a more favorable station location, the 'second response
time' will also be improved with Delray service.
The second contract, the Town Manager advised, will be with Life Fleet
{Atlantic Ambulance), with whom the Town has entered into an annual
contract in the amount of $16,500. This service will be provided at
absolutely no cost to residents as whatever insurance pays will be
accepted; even those with no insurance will have no monetary output.
Ms. Mariano explained that Atlantic considered the Town a good risk
and therefore agreed to this modest yearly rate; she said a yearly
contract, rather than one of longer duration, had been sought in the
event Delray expands to include this service in the future and at that
time it might be more cost effective for the Town to go with Delray
for this service.
Before starting review of the 1993/1994 budget, Ms. Mariano advised
there had been a change so recent there was not time to reprint before
the meeting, i.e., removing $110,000 from OTHER GENERAL GOVERNMENT re
Building Renovation; it will be included in the the Capital Projects
Fund where it will not affect the millage rate.
There was a brief discussion re projected salaries for the coming fis-
cal year, with Ms. Mariano explaining that the EXCEL category provides
a means of continuing to compensate employees for outstanding service
after reaching the maximum step in the range assigned. She also
advised that the maximum 5% merit increase was budgeted across the
board, although all employees would not necessarily be recommended for
same. Regarding the COLA increase, she noted it was based, as usual,
on April's CPI, which this year was 3.1%.
• Financial Advisory Board
Regular Meeting - Minutes
June 17, 1993 Page 3 of 5
Ms. Mariano explained how the Building and Finance Departments each
reflected a shift in personnel: The Building Department needed more
help and with the cooperation of the Finance Department, this problem
was economically solved by having one full-time employee of the
Finance Department work half time for that department and half-
time for the Building Department.
REVIEW OF 1993/1994 FISCAL YEAR BUDGET (EXPENDITURES)
Town Commission
Regarding the amount of travel allowance, Ms. Mariano noted that the
current Commission has a broader base of interest and involvement for
the betterment of the Town and, necessarily, the members have to
travel to meetings/functions which are held outside the Town.
Town Manager
It was explained that capital outlays for Machinery and Equipment
• [5640] and Software [5660] reflected tying Ms. Mariano's office into
the computer system proposed for the Town Clerk's office. Hers will
be one of four (4) terminals in the front office.
Town Clerk
This department reflected capital outlays in the above mentioned
categories re a computer system to serve the Town Manager and Town
Clerk Departments as described in the previous paragraph.
Finance Department
As discussed previously, the shift in personnel was again noted for
the record.
Other General Government
As explained earlier in the meeting, it was noted that $100,000 was
deleted from Buildings [5620] re renovations to Town Hall complex and
$10,000 was deleted from Professional Services [5310] re the study of
such renovations.
Proposed budget expenditures for the following departments received no
pertinent comment or discussion:
• Post Office
Law Enforcement
Protective Inspection
Financial Advisory Board
•Regular Meeting - Minutes
June 17, 1993 Page 4 of 5
Library
The Town Manager advised there had been a philosophical change in
thinking re the funding of the Library. She acknowledged that for
years the Friends of the Library had been paying for books, etc.,
which in essence is really the Town's responsibility. Therefore,
starting in the upcoming fiscal year, the Town will fully fund the
Library; participation by the Friends will continue through donations,
which Ms. Mariano has been advised will be approximately $14,000 for
FY 1993/1994.
Legal Counsel [01-05-141
Ms. Mariano advised there may be an increase in General Legal fees
[5310] in that the Town Attorney may seek to increase the amount of
his retainer during the year although she had received nothing in
writing to that effect as of this date. She noted the Town Attorney
had not submitted any increases in retainer fees for several years.
Fire/Rescue [01-10-22]
Pertinent facts re the contract with Delray Beach and Atlantic Ambu-
lance having been previously discussed, it was the consensus of the
members that $10,610 included with Ambulance contract fees should be
deleted to reflect the actual $16,500 annual contract fee and added
to the Delray Beach Fire/Rescue contract fee to reflect the "rescue"
portion of this contract.
Refuse Collection 01-12-34
It was noted that what the Town is being charged and what is needed to
be charged is almost a basic 'pass -through;' however, an additional
$4,000 assessment re garbage containers was noted, as was the $15,000
franchise fee paid by County Sanitation to the Town.
There was no discussion re the following categories:
Interfund Transfers [01-16-81]
General Obligation Debt [01-17-82]
WATER AND SEWER SYSTEMS
Ms. Mariano noted that no increase in the water and sewer billing is
anticipated for the coming fiscal year.
•It was noted an additional operator position was included for the
Water Plant, which should greatly reduce the need for overtime.
. 0.
Financial Advisory Board
Regular Meeting - Minutes
June 17, 1993 Pa e 5 of 5
OTHER
In a brief discussion regarding revenues, Ms. Mariano said preliminary
figures indicated the Town's assessed valuation had increased by about
$14,000,000, while most other municipalities would possibly experience
a decrease in assessed valuation.
The next meeting to complete review of the 1993/1994 FY budget was
scheduled for July 13 at 9:30 A.M. At that time, revenues will be
reviewed and pertinent recommendations made to the Town Commission.
There being no further business to come before the Board at this time,
the meeting was adjourned upon MOTION by MR. HADEED/MR. REID at
11:30 A.M.
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ATTEST
DATE:
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APPROVE:
S. Myron Bro Zr, Cairman
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Vic or P. Ha ee Vice Chairman
F e s en urg
r
omas J. i