1994.07.19_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH
FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
July 19, 1994 9:30 A.M.
Chairman S. Myron Browner called the Regular Meeting to order in
Commission Chambers at 9:30 A.M.
Deputy Town Clerk Doris Trinley called the roll. The Chairman,
Vice Chairman Victor P. Hadeed and Members John R. DeMarco and
Werner Wm. Rothenberg were present. Member Thomas J. Reid was
absent.
Town Manager Mary Ann Mariano and Finance Director Michael Seaman
were also in attendance. Commissioner David Augenstein was in the
audience.
MINUTES
Upon MOTION by MR. HADEED/MR. ROTHENBERG, the Minutes of the July
12 Regular Meeting were unanimously approved.
OLD BUSINESS/CORRESPONDENCE
None.
NEW BUSINESS
(1) Conclude Review of 1994/1995 Fiscal Year Budget
(2) Transmit recommendations to Town Commission
Before starting discussions, Chairman Browner expressed his views
regarding an increase in millage for the coming fiscal year as a
means to accrue funds to meet possible demands in satisfying the
recent judgment against the Town. He stated that he was against
such action for several reasons: In his view, the Town has other
resource options to pursue if need be, i.e., existing reserve fund
or, perhaps, an interest -only bank loan given the Town's excellent
longstanding financial performance. The Chairman also noted he was
given to understand that any kind of increase in municipal taxes
would create a real hardship for a certain segment of the Town's
population, i.e., elderly on fixed incomes. In the course of his
remarks, he also said he did not consider the judgment a "just
debt," noting that none of the current Town Commission members, the
Town Manager or those serving on various Town boards had anything
to do with incurring it. The Chairman further noted that since
settlement was still being negotiated, the timing for a millage
increase might not be right, as it was also possible the Town might
yet enjoy a favorable outcome,
Financial Advisory Board
Regular Meeting - Minutes
July 19, 1994 Page 2 of 3
Town Manager Mariano's response included that while the FAB was
privy to yearly budget figures and was responsible for reviewing
same and making recommendations to the Town Commission, it was
important to note that the Board members were not privy to the
actions taken by the Town Commission or the Town Manager as regards
the judgment, or the information that they may have about it. She
also stressed that as Town Manager, it would be her fiduciary
responsibility to strongly object to the use of the entire reserve
fund to satisfy any part of the judgment, noting it was imperative
that the majority of that fund remain intact for use in the event
of disaster (hurricane, etc.). However, she did indicate it was
possible a portion of the reserve fund would have to be used in
regard to the judgment, in addition to funds realized from a
millage increase. She also noted the heavy expense of financing a
bond issue, should the Town decide to do so, and referred the
members to the comparative cost sheet that Mr. Seaman had prepared
in this regard. (Attached to and made part of these Minutes).
Recommending that the members give full consideration to increasing
the millage rate, which she deemed a necessity, Ms. Mariano further
noted that since there will be no increase in county taxes this
year, she felt the timing for the increase was right, making the
transition for the Town's residents somewhat easier. (Comparison
Millage Rate Sheet also attached to and made part of these
Minutes).
. Substantial discussion then took place regarding the efficiency of
monies realized through increased millage being used exclusively
for judgment expenses, rather than as a way to increase reserves in
general. In conclusion, it was agreed that while the monies would
be shown as a separate line item and put into a "legal contingency
fund," they could be transferred out if it was decided that other
uses were warranted.
Continuing discussion of the total budget, it was noted that
amended figures had been provided to reflect additional
expenditures regarding the Town Manager's recently approved
contract, as well as the promotion of one police officer. It was
also noted that notification had been received from the City of
Delray Beach that fire/rescue costs would be less than anticipated.
Regarding revenues, the members were advised that final figures
were not yet available.
Vice Chairman Hadeed questioned the cash balance of $18,667 shown
as brought forward on page 5 of "Revenues and Balances" [sub -object
38911, saying he thought it had been previously agreed that the
Town would work with a balanced budget, not a deficit budget. After
some discussion, it was agreed that the contingency would be
reduced by this amount to create a truly balanced budget.
Concluding review and discussion, appropriate MOTIONS were made as
. follows:
MR. HADEED/MR. ROTHENBERG: THAT MERIT RAISES BE BASED ON
5% MAXIMUM (Unanimous favorable vote).
Financial Advisory Board
• Regular Meeting - Minutes
July 19, 1994 Page 3 of 3
MR. DE MARCO/MR. HADEED: THAT THE MILLAGE BE INCREASED .6338
TO A TOTAL OF 4 MILS. (Messrs. Hadeed, DeMarco and Rothenberg:
AYE; Mr. Browner: NAY).
MR. HADEED/MR. DE MARCO: THAT THE BUDGET BE AMENDED AND
ACCEPTED WITH INCREASES AS NOTED. (Unanimous favorable
vote) .
[These recommendations will be transmitted to the Town Commission
for their consideration.]
There being no further business to come before the Board at this
time, the meeting was adjourned upon MOTION by MR. DE MARCO/
MR. ROTHENBERG at 10:25 A.M.
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APPROVE: A"
yr owner, Chairman
VActor P. Hadeed, Vice Chairman
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J hn R. DibMarco
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Werner Wm. Rothen erg
''.:. JUL 9 19�4
SkA (S Millions)
Underwriting**
67,500 (1.35%)
120,000 (1.20%)
165,000 (1.10%)
Bond Counsel
25,000
27,500
30,000
Underwriter's Counsel
15,000
17,500
20,000
Rating -Agency
7,500
10,000
12,500
Printing
3,500
3,500
3,500
Trustee
2,500
----
3,000
3,500
121,000 (2.42%)
------------------
181,500 (1.82%)
----------- -------
234,500 (1.56%)
. * Approximate
** includes broker sales credits, expenses and
management fee.
'
JUL 19 19%
TOWN OF HIGHLAND BEACH
MILLAGE CALCULATIONS
F/Y 1994/95
ROLLED -BACK
RATE
ESTIMATED TAXABLE VALUE
668,095,005
668,095,005
668,095,005
668,095,005
MILLAGE-GENERAL OPERATING
2.9650
3.4000
3.5000
3.7082
MILLAGE-DEBT SERVICE
0.2918
---------------------------------------------------------
0.2918
0.2918
0.2918
TOTAL MILLAGE
3.2568
3.6918
3.7918
4.0000
TAXES LEVIED - OPERATING
1,980,902
2,271,523
2,338,333
2,477,430
TAXES LEVIED - DEBT SERVICE
194,950
---------------------------------------------------------
194,950
194,950
194,950
TOTAL TAXES LEVIED
2,175,852
2,466,473
2,533,283
2,672,380
95% AD VALOREM TAXES
2,067,059
2,343,149
2,406,619
2,538,761
ESTIMATED DELINQUENT TAXES
200
200
200
200
OTHER REVENUES
1,151,962
1,151,962
1,151,962
1,151,962
TOTAL REVENUES
---------------------------------------------------------
3,219,221
3,495,311
3,558,781
3,690,923
TOTAL ESTIMATED EXPENDITURES
3,223,344
3,223,344
3,223,344
3,223,344
CONTINGENCY
100,000
---------------------------------------------------------
100,000
100,000
100,000
TOTAL ESTIMATED EXP & CONT.
3,323,344
3,323,344
3,323,344
3,323,344
REVENUES OVER EXPENDITURES
(104,123)
171,967
235,437
367,579
CURRENT MILLAGE RATE 93/94
OPERATING 3.0580
DEBT SERVICE .3082
TOTAL 3.3662
CURRENT TAXABLE VALUE $643,839,112
0