1995.03.17_FAB_Minutes_Regular• TOWN OF HIGHLAND BEACH
FINANCIAL ADVISORY BOARD
REGULAR MEETING
MINUTES
Friday, March 17, 1995 9:30 A.M.
Chairman Thomas J. Reid called the Regular Meeting to order in
Commission Chambers at 9:30 A.M.
Deputy Town Clerk Gretchen Dayton called the roll. Present were
the Chairman and Vice Chairman Victor P. Hadeed and Members S.
Myron Browner, John DeMarco and Werner Wm. Rothenberg.
Town Manager Mary Ann Mariano, Finance Director Michael Seaman and
Mayor Arlin G. Voress were also in attendance, as were Auditors
Charles Haas, Deborah Diaz, Wendy Wells and Felix Goldenson, member
of the general public.
APPROVAL OF MINUTES
Upon MOTION by MR. HADEED/MR. ROTHENBERG, the Minutes of the
• January 24, 1995 Regular Meeting were unanimously approved.
OLD BUSINESS CORRESPONDENCE
Review of Town's Reserve Policy
The Board discussed in general the concepts of establishing a
policy involving the amount of money needed in a reserve fund in
case of an emergency and how it would be allocated. Chairman Reid
discussed the philosophy, theory and practical aspects of reserves
and said the matter needs to be discussed by fund to determine the
finite items within each fund to be reserved. Mr. Browner brought
out the point, that of the total excess funds of $2,407,844.,
approximately $1,400,000. is available to be allocated. Mr.
Rothenberg referred to a letter from Delray Beach stating, their
water and sewer facilities set rates so they are able to put aside
two and one-half percent of the book value of utility for renewal
and replacement each year. Mr. Goldenson stated that in the
Enterprise Fund the assets are presently being depreciated, but the
depreciation monies have not been retained. Mr. Hadeed said if we
are going to re-establish the Enterprise Fund then we have to
determine how much of the unappropriated funds we have to use
toward depreciation and start rebuilding this fund. Mr. Rothenberg
suggested the Town's past financial history be the basis for
arriving at actual figures and projections.
•
• Financial Advisory Board
Regular Meeting - Minutes
March 17, 1995 Paste 2 of 4
Ms. Mariano said that a Capital Improvement Element had been
adopted in 1989 as part of the Town's Comprehensive Plan and that
in 1996 there will be a new Capital Improvement Element which will
give the board members an understanding of what the planners feel
the Town will need for the next five to seven years. Upon comments
by Mayor Voress and Ms. Mariano they concurred that when the
Financial Advisory Board considers the terms of a policy, it should
not include any existing figures. As any policy established should
be able to be used long term.
Chairman Reid read a statement into the record, a copy of which is
attached hereto and suggested a report which would include the
following:
1. Philosophy of reserves.
2. Practical aspects of reserves.
3. Reserves by fund.
4. Finite reserves within each fund.
A final statement policy with a glossary and supplemental long term
reserve policy along with suggestions from the board should also be
• included in the report.
The following MOTION was made by MR. BROWNER/DEMARCO:
TO HAVE A SUB COMMITTEE PUBLIC MEETING TO DRAFT A PRELIMINARY
REPORT FOR A LONG TERM RESERVE POLICY.
MR. ROTHENBERG WAS OPPOSED.
NEW BUSINESS
Review draft couv of Fiscal Year 93/94 Annual Financial Report with
Auditors
Mr. Haas presented a pamphlet entitled "Financial Highlights", a
copy of which is attached hereto.
Ms. Diaz explained the graphs and charts came from a data base they
have access to and entered town information.
•
. Financial Advisory Board
Regular Meeting - Minutes
March 17, 1995 Pacte 3 of 4
The Town has an excess of revenues over expenditures of
approximately $52,000. at the end of budget year 93/94.
General governmental expenditures decreased approximately 10%
compared with last years budget. The reserved fund balance remains
unchanged since 1991. The undesignated fund balance represents
approximately 12% of budgeted expenditures. The designated fund
balance has gone down somewhat for the last two years as it was
used to fund some capital improvements. Expenses and capital outlay
for water operations were relatively unchanged with a decrease of
cash flow due to a decrease in revenues. An increase in sewage
disposal costs resulted in a decrease of cash flow. Both water and
sewer operations had improvements within budget year 93/94.
Financial indicators show the Town of Highland Beach has a lower
financial ratio when compared to the average town.
Mr. Hadeed commented on the draft of the year end report, the
comparison of the actuals to the budget show a revised budget and
it was his opinion that the budget figures should not be revised.
Ms. Diaz said that one way to clarify the financial statement is to
• show the budget as it was originally adopted and then show the
amendments that were made to come up with the final numbers.
Ms. Diaz said they have been involved with many capital improvement
programs and have developed a model plan to evaluate water and
waste water facilities with engineers. A copy of this plan will be
provided for the Board by them.
After further discussion of the concept of establishing a
sub -committee, a MOTION was made by BROWNER/DEMARCO:
THE ENTIRE FINANCIAL ADVISORY BOARD HAVE A PUBLIC MEETING TO
ASSEMBLE DATA NECESSARY TO PREPARE A PRELIMINARY REPORT
REGARDING ALONG TERM RESERVE POLICY AND A FINAL REPORT AT A
FUTURE DATE FOR REVIEW BY TOWN COMMISSION AT ITS WORKSHOP
MEETING IN APRIL.
It was agreed the next meeting will be held on Monday, April 3 at
9:30 A.M.
Financial Advisory Board
Regular Meeting - Minutes
March 17, 1995 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. ROTHENBERG/MR.
DEMARCO at 11:18 A.M.
PPP J
Thomas J. Reid, Chai
Victor P. Hadeed, Vice Chairman
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hn R. D Marco
erner Wm. RothL-hberg
ATTEST:
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