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2013.04.12_FAB_Minutes_Regular o - �= ��` "�:.�,_' � ��� TOWN OF HIGHLAND BEACH %'''•. MINUTES OF THE , '4 ' * ''• .. ''* = FINANCIAL ADVISORY BOARD '�aN�onio= REGULAR MEETING Friday, April 12, 2013 9:30 AM Members Present: Chair Gerald Gitner, Board Member Ronald Brooks, Board Member David Buchsbaum, Board Member Bruce Giacoma, and Board Member William Gross. Also Attending: Finance Director Cale Curtis, Deputy Town Clerk Valerie Oakes and members of the public. CALL TO ORDER Chair Gitner called the Regular Meeting to order at 9:30 a.m. in the Commission Chambers. Roll call was taken by the Deputy Town Clerk Oakes followed by the Pledge of Allegiance. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA Chair Gitner called for any additions, deletions to the agenda, hearing none, the agenda was accepted as presented. PUBLIC COMMENTS AND REOUESTS: No public comments. PRESENTATIONS: • 2012 Comprehensive Financial Report By: Cale Curtis, Finance Director Cale Curtis, Finance Director read into the record a memorandum on the financial highlights for the 2012 Comprehensive Annual Financial Report (see attached Exhibit `A' Chair Gitner — On the water fund activities, was that an expected loss? Director Curtis — Yes, based on the policy decision by the Town Commission. The water fund's operating revenue is not covering the expenses. Cale Curtis, Finance Director gave a slideshow presentation on 2012 Comprehensive Annual Financial Report (see attached Exhibit `B'). Financial Advisory Board ~ Friday, April 12, 2013 Page 2 of 4 Chair Gitner — What are the indications for the ad valorem taxes? Director Curtis — Hopefully good, as last year we saw an increase in the tax value; I do not think that included any new major construction. Currently, we have three houses being built on the ocean, so it should be a good indication for our tax base going forward. Chair Gitner — If all of the water was supplied as part of the taxing scheme as opposed to separate metering, it could be off set in a federal income tax form. Director Curtis — That is correct. Member Brooks — Would it be too cumbersome to have written notes to explain the presentation as your comments clarify? Director Curtis — This data presented is merely an extraction of the 100 page report that contains the extensive details. APPROVAL OF MINUTES: • February 01, 2013 — Regular Chair Gitner called for a motion to approve the February, 01, 2013 minutes. MOTION: Member Giacoma moved to approve the minutes of February 01, 2013, Regular Meeting as presented. Member Gross seconded the motion, which passed unanimously. OLD BUSINESS: A) General Discussion of Financial Topics Follow -Up: Director Cale Curtis announced that he received praise for the summarization of the February Financial Report; there were no questions regarding the report. • Investment Options/Policy Director Curtis — Last month, the Commission authorized to open a money market saving account with EverBank, a local community bank. EverBank has offered the Town 51 basis points, which is 26 more points than what all of our other accounts are offering. The paperwork for opening the account was finalized earlier this week; the first deposit will be made next week. Member Giacoma — What is the financial condition of EverBank? Director Curtis — The bank has received three out of five stars; however, they are on the Qualified Public Depository list and are also FDIC approved. Each individual bank based on their financial statements has to collateralize our deposit by 50 %. From speaking with the Financial Advisory Board Friday, April 12, 2013 Pate 3 of 4 manager at EverBank, our deposit with them is restricted and they cannot lend any portion out. • Sale of Surplus Property Director Curtis — On March 2nd, the Town received a formal letter of intent to purchase those parcels at an offer of $3.5 million. The Town notified the City of Boca Raton who held a "first right of refusal" on the eight acre parcel. Early this week, the City of Boca Raton's Commission chose not to exercise their right. The next step is for our attorney to draft a contract. Chair Gitner — We never hired an agent, so we have no commission fee responsibility? Director Curtis — Correct. Member Giacoma — What is the estimated sale date? Director Curtis — The letter of intent states that once a contract is executed by the Town and the buyer, there will be a 60 day due diligence period for the buyer to perform inspections. There is also a $50,000.00 non - refundable deposit. Member Gross — Was the price negotiated? Director Curtis — I do not know the exact details of the negotiation as the Town Manager was the lead negotiator. Chair Gitner — Do you have an obligation to get an appraisal? Director Curtis — We do not have an obligation, but we do have an appraiser on standby. We have looked at the history of the property of the appraised value from 2005 and last year. There is a $30k difference within the assessed value. Member Brooks — What year was the last appraisal done? Director Curtis — In 2005, both parcels were appraised at approximately $3.8 million and last year's appraisal was $3.6 million. Town Manager Kathleen Weiser — I have been dealing with the developer for six months. There were negotiations on the properties offer. Chair Gitner — Will this be the largest sale the Town has made? Manager Weiser — I think these are the only properties we have had to sell. This has been on the market for over a decade. There are no real estate agents interested in the properties. We have never received an offer. With both properties, we are at the market value. Member Buchsbaum — I would like to echo that the property should be appraised. How is it being advertised? I suggested advertising on www.loopnet.com at the last meeting. Director Curtis — This offer came in prior to having to increase our marketing exposure. B) Discussion on Fund Balance Disaster Recovery Director Curtis — Previously the Financial Advisory Board recommended fully funding the disaster relief recovery fund at $500,000.00. The Board also recommended that the fund be adjusted annually by CPI or other inflationary index. To satisfy both recommendations, I suggest providing a policy change to the Commission where the Financial Advisory Board Friday, April 12, 2013 Paize 4 of 4 Disaster Recovery amount becomes a percentage of the adopted general fund budget versus a flat amount that is CIP adjusted. The Board's recommendation would be advanced to the Commission during the FY 2013 -14 budget discussions. This is more of a budget appropriate topic. Chair Gitner — What would be your percentage recommendation? Director Curtis — My recommendation is 8.3 %, which is equal to 1/12. Chair Gitner Agree. Member Giacoma — It is fair. C) Discussion on Fund Balance Capital Replacement Director Curtis — The Commission will have discussion within the next few months. NEW BUSINESS No new business. ADJOURNMENT: The Board scheduled their next meeting tentatively for Friday, August 09, 2013 at 9:30 a.m. in the Commission Chambers. There being no further business, Chair Gitner called for a motion to adjourn the meeting at 10:03 AM. MOTION: Member Giacoma moved to adjourn the meeting at 10:03 AM. Member Gross seconded the motion, which passed unanimously. APPROVED: Gerald Gitner, Chair Ronald Brooks, Board Member TOWN SEAL David Buchsbaum, Board Member Bruce Gia om , Board Me r a ,r' Valerie Oakes, CMC William Gross, Board Member Deputy Town Clerk Date: August 09, 2013