2006.07.16_FAB_Minutes_SpecialFINANCIAL ADVISORY BOARD
• SPECIAL MEETING
MINUTES
THURSDAY, JULY 13, 2006
2.00 P.M.
Chairman Alan Teller called the meeting to order at 2:00 P.M. in Commission Chambers.
In attendance were Chair Alan Teller, Vice Chair Max Angel, David Stern and Dan
Hinchliffe. Also present were Town Manager Dale Sugerman, Finance Director Stan
Novak and members of the general public.
NEW BUSINESS
Review Proposed 2006-2007 Operating Budget
Town Manager Dale Sugerman offered a thorough review of the proposed draft budget,
highlighting many areas of noted importance. Discussion followed with questions asked
by the Members. There was discussion about reducing the millage rate from 4.0 to 3.85
The following MOTION was made by MR. STERN/MR. ANGEL to recommend to the
Town Commission a reduction from 4.0 to 3.85. The following rollcall vote was taken:
Mr. Hinchliffe no
Mr. Stern yes
• Mr. Angel yes Motion carried 3/1.
Mr. Teller yes
MOTION was made by MR. TELLER/MR. ANGEL to recommend to the Town
Commission that they approve the 2006-2007 Draft Fiscal Year Budget.
Motion carried unanimously.
ADJOURNMENT
With no further business to come before the Board, MOTION to Adjourn was made by
MR. STERN/MR. ANGEL at 3:15 p.m.
APPROVAL
Alen Teller, Ch.
David Stern
Open
• Attest: Date:
Max Angel, V. Ch.
Dan Hinchliffe
C]j
MEMORANDUM
DATE: July 26, 2006
TO: Vice Mayor Joseph J. Asselta
FROM: Alan Teller, Chairman Financial Advisory Board
SUBJECT: FAB recommended approval of the reduction of the millage
Rate in the 2006-2007 budget
At the July 25 workshop meeting of the Town of Highland Beach, Vice
Mayor Asselta requested a detailed report of the review of the facts and
opinions leading to the FAB recommendation to adapt the recommended
reduction in millage rate.
On July 13, 2006 a special meeting of the Town of Highland Beach
Financial Advisory Board was called to review the proposed budget for
2006-2007.
• A recommendation was presented b the Town Manager and Finance
y g
Director that the budget should include a reduction in the millage rate from
the current 4.0 to 3.85.
A rather lengthy discussion took place on this issue during which opinions
were expressed both Pro & Con.
The main points in favor of the reduction were:
A significant increase in ad valorem tax revenues is anticipated due mainly
to increases in property values.
General Fund revenues will exceed planned expenses.
Even after funding $450,000. to cover the Water Department's shortages
there would still be a reserve for contingency in excess of $700,000.00.
Combining the General Fund balance forwarded and the above mentioned
$700,000.00, the unrestricted reserve will approach $2,800,000.00 or more;
an unrestricted reserve of 25%.
• of at least 16%.
We recalled our auditor's suggested reserve
An anticipated increase in existing property values, as well as increases
caused by property changing hands, will result in substantial real estate tax
increases. (Property owners with "Homestead" will be limited to 3%).
Since the majority of our residents occupy condos and have the Homestead
exemption, they should enjoy a net reduction in tax after the 3% increase
and a reduction in millage to 3.85.
The main points raised against the proposed reduction were:
Since Real Estate tax is deductible from Federal Tax, the rate should be
sufficient to cover as many services as possible as well as the Water
Department deficit.
The dollar amount of actual savings would be small for each property owner.
There is no way to predict the amount needed to fund a disaster recovery.
• (Note: No property insurance damage claim exceeded our deductible for
WILMA. FEMA reimbursed a substantial portion of deductible expenses.).
If rates have to be increased in the future, residents may not remember the
reduction.
The vote to recommend to the Commission that the budget presented include
the millage reduction was 3 to 1 in favor.
In addition to the above, it may be constructive to review the TV tape of the
entire Jui, 2006 FAB meeting.
ncial Advisory Board
Cc: Mayor
Town Manager
• Finance Director (continued)
Cc: Commission Members
• FAB Members
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