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2011.08.02_TC_Minutes_WorkshopTOWN OF HIGHLAND BEACH MINUTES OF TOWN COMMISSION MEETING BUDGET WORKSHOP MEETING Tuesday, August 2, 2011 4.30 PM Mayor Bernard Featherman, called the Workshop Meeting to order in the Commission Chambers at 4:30 PM. CALL TO ORDER: Roll Call: Members present: Mayor Bernard Featherman; Vice Mayor Miriam S. Zwick; Commissioner Doris M. Trinley; Commissioner John J. Pagliaro and Commissioner Dennis J. Sheridan. Also present: Town Attorney Tom Sliney; Town Manager Kathleen Weiser; Town Clerk Beverly M. Brown; Acting Finance Director Cale Curtis; Library Director Mari Suarez; Public Works Director Jack Lee; Police Chief Craig Hartmann; Building Dept. Manager Carol Holland and Assistant to the Town Manager Zoie Burgess. Pledge of Allegiance: The Pledge of Allegiance was given, followed by a minute of silence in honor of Dr. Seymour Strauss and Allen Strumwasser. Civility Pledge: The Civility Pledge was recited by the Town Clerk. 1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA: Mayor Featherman asked for any additions or deletions. Receiving none, the agenda was accepted as presented. 2. PUBLIC COMMENTS AND REOUESTS: No Public Comments were received. 3. DISCUSSION OF PROPOSED 2010-2011 BUDGET: Town Manager Weiser — Based on questions received from different Commissioners, have put together the following power point presentation: Acting Finance Director Curtis: Changes to Proposed Budget: Revised Revenue Estimation from Dept. of Revenue - Decrease $13,000. Town Commission Budget Workshop Minutes August 2, 2011 Page 2 of 4 Correction to Florida Retirement System — Increase General Fund - $28,100. Increase Water Fund - $ 5,000. Elimination of Longevity Program — Decrease General Fund - $19,200. Decrease Water Fund - $13,000. Health Benefits — Adjustment to insurance premium - Increase General Fund - $ 6,700. Solid Waste Authority Assessment — Increase - $400. Total Changes to General Fund: Revenues— decrease $13,000. Expenditures — increase $19,200. Effect on General Fund:- Additional $32,000 taken from GF Unrestricted Fund Balance Total Change to Water Fund: Expenditures — decrease $8,000. Effect on Water Fund - Additional $8,000 added to the Reserve for Contingency Millage Rate Scenario: Proposed Roll Back Rate — 3.4070 mils will require $734,456 from the Unrestricted Fund Balance to balance the budget. Prior Year's Rate — 3.2542 mills will require $989,235 from the Unrestricted Fund Balance to balance the budget. Town Manager Weiser — Unfunded Budget Requests — Would like to get input as to funding of these projects as the money will also have to come from reserves. 4. COMMISSION QUESTIONS & DISCUSSIONS: Mayor Featherman —Is it wise to raise the taxes this year with the financial goings on? Comm. Pa lg iaro - Is there a formula municipality's use to determine the amount of funds needed to be kept in reserves? We had four successful years in reducing the millage rate. Now we find we have to dip in reserves to balance the budget. Director Curtis — There is not a formula per se. The Finance Officers Association recommends 2 months of operating expenses, which is 17% or in our case 1.6 million dollars. The recommendation is a minimum not a maximum. This minimum figure does not count in unforeseen occurrences like a hurricane. Mayor Featherman — At this time we are going through a difficult time. Is it necessary to fund all these projects? Does the $345,000 walkway improvement include the entire walkway? I have walked it and only two blocks appear need to be fixed. Public Works Town Commission Budget Workshop Minutes August 2, 2011 Page 3 of 4 Director Lee - The $345,000 includes the complete walkway plus engineering fees. We would like to remill the walkway, eliminate the tree roots then repave. This is the least expensive way. Mayor Featherman — Could it be possible just to fix these small areas that need to be fixed? Director Lee — Yes, we could isolate those areas. Plus, we are still being considered for a matching grant from FDOT. We will know within three weeks. Mayor Featherman - $300,000 to renovate the Commission Chambers and Police Department. Do we really need to renovate the chambers and police department? Manager Weiser — I understand that the architectural plans are for the police department only. Would recommend some type of space planning for this entire section. Comm. Sheridan — Agree with the Town Manager with a space planner, also recommend hiring a structural engineer to evaluate this building. Comm. Trinley — Since we are dealing with the roll back rate, do not think that we dare spend this extra money. Agree with a space planner. Do you have any idea of the cost? Manager Weiser — Will get a price or estimate from an architect. Vice Mayor Zwick - Why do the police department and then the commission chamber. Getting a space planner will be beneficial. Before we decide on the pathway, we need to determine if we are going to get the grant. Comm. Pa liaro — Agree with the Vice Mayor. We should hold off any decision until we find out if we will get the grant. Manager Weiser — I have no further comments on the budget. Does the Commission want to schedule another Workshop? Comm. Sheridan — No need for another workshop. Comm. Pa 1 iaro — No need. Vice Mayor Zwick — If we hear about the grant, we can always discuss it at the regular meeting. Why is there an increase in FRS? Manager Weiser - Come next July, the municipality will have to start paying the entire contribution to the FRS program again. The employees will no longer have to contribute 3%. Comm. Trinley — Are we going to discuss the millage rate any further? Comm. Sheridan — Agree with using the roll back rate this year. Accept the staffs recommendation. Comm. Pagliaro — Agree with Comm. Sheridan. The staff has worked hard putting this together. The roll back rate works for me. Vice Mayor Zwick — I think we have to accept the roll back rate recommended by the staff. Comm. Trinley — I also agree with using the roll back rate. Mayor Featherman — As a point of information, Town's generally have 15/20 % in contingency. We should consider using some of these unrestricted funds. Vice Mayor Zwick - If we used last year's millage rate, we would use $989,335 in unrestricted funds. Using the roll back rate is an insignificant increase and we will only use $734,456 in unrestricted funds. Manager Weiser — If there are no more questions, the second workshop will be cancelled. Mayor Featherman — Does the Commission have any further questions? Town Commission Budget Workshop Minutes August 2, 2011 Page 4 of 4 5. PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT MEETING No Public Comments were received. 6. ADJOURNMENT There being no further business to come adjourned the Budget Workshop Meeting at Zwick; seconded by Commissioner Pa lg iaro. APPROVE: TTEST: Beverly M. B wn, MMC 'a� - � 'gD to before the Commission, Mayor Featherman 5:05 PM. upon a MOTION by Vice Mayor hernard Featherman, Mayor