Loading...
2013.08.07_TC_Minutes_Workshop TOWN OF HIGHLAND BEACH MINUTES OF THE TOWN COMIVIISSION 2013 -2014 PROPOSED BUDGET WORKSHOP MEETING Wednesday, Ausust 07.2013 4:3 0 PM Mayor Bernard Featherman called the Budget Workshop Meeting to order in the Commission Chambers at 4 :30 PM. CALL TO ORDER: Roll Call: Members present: Mayor Bernard Featherman; Vice Mayor Ron Brown; Commissioner Dennis J. Sheridan; Commissioner Louis P. Stern; and Commissioner Carl Feldman. Also present: Town Attorney Glen Torcivia; Town Manager Kathleen D. Weiser; Town Clerk Beverly M. Brown; Police Chief Craig Hartmann; Finance Director Cale Curtis; Public Works Director Jack Lee; Library Director Mari Suarez; Building Office Manager Carol Holland; Assistant to the Town Manager Zoie Burgess and members of the public. Pledge of Allegiance: The Pledge of Allegiance was given, followed by a moment of silence. Civility Pledge; The Civility Pledge was recited by the Town Clerk. 1. ADDITIONS DELETIONS OR ACCEPTANCE OF AGENDA: Mayor Featherman called for any additions or deletions. Receiving none, the agenda was accepted as submitted. 2. PUBLIC COMMENTS AND REQUESTS: No Public Comments received. 3. PRESENTATION OF 2013 -2014 BUDGET: Town Manager Weiser — T am thrilled to present to you the proposed budget that has been submitted in a balanced condition and is utilizing and operating a millage rate of 3.95% o, which equates to keeping our tax rate the same. There are no increases. Cale Curtis, Finance Director — We are here today to have our first workshop on the proposed 2013- 2014 operating budget. We are also here to answer any questions, gather feedback from you as well as J Town Commission Budget Workshop Meeting A-Mg 07, 2013 Page 2 of 8 from the residents who are here today from Highland Beach. The presentation 1 have here today is very similar to the one you received back in July when we set the tentative millage rate. Presentation by Finance Director Cale Curtis: The Town's Taxable Value — We reached a high in 2007 of $2.3 billion and bit a low in 2012 at $1.725 billion. Over the last few years we gained some of that value back. We have a little over four percent increase in our assessed value this year of $1.824 billion. Understanding Your Tax Bill — Your total tax bill is split among multiple taxing authorities_ . Highland Beach's portion is less than a quarter of the total tax bill. Unassigned Fund Balance (Savings/Reserves) — This is what is left over and available for the Commission to spend at their beck and call. In 2010 it was six million dollars. The big drop in 2011 is due to the policy change where we took approximately 1.7 to 1.8 million of that and set is aside; indicating that we were going to restrict it from our spending and use it to stabilize the budget. In 2012 we saw a little bit of an increase and in 2013 we should close out with roughly 3.6 million in unassigned balance. The projected amount in 2014 accounts for the money we plan to take in this year's proposed budget; $920,000 which is going to cover our one -time capital improvements. The 2013 and 2014 amounts do not include the potential 3.5 million that would come from the sale of the property- Total Fund Balance — The total Fund Balance, without the property sale proceeds, projected for the fiscal year 2014 is around five million with 2.5 million of that being unrestricted, unassigned. 2013 -2014 General Fund Proposed Budget Highlights — On the Revenue side, the taxable value has increased 4.15 %. We balanced the budget without increasing the tax rate; have an increase in permit revenues and $920,000 from unassigned fund balance to cover capital items. On the Expenditures side, we have an increase in personnel services of 8.5 %. A large portion of that is due to an increase in health insurance premiums and an increase in retirement contribution rates set by the State. Our Operating Expenses have gone up 8% due to improved dispatch services, fire service agreement, fire vehicle maintenance fee, general repairs to Town facilities and solid waste collection. Capital Outlay General Fund: A) Public Works Restriping of traffic and pedestrian markers -$6k; replace privacy mesh (north fence) -$6k_ B) Other General Gov't Southside of Town Hall (Police Dept. /Chambers Renovations): $825k; Information Technology/Network Upgrade (Town-wide) - $14k C) Police Department — Replace two police cruisers and equipment - $72k. D) Libr Purchase of books, movies, CDs and other library media - $60K. Water System Proposed Budget — The total estimated revenue of $3,835,220 consists of Charges for Service ($2,105,720); Miscellaneous ($143,500); Transfer from GF (debt) ($1,286,000) and Reserve ($300,000). The total estimated expenses of $3,835,220 consists of Personnel (plus 1 WPO) ($1,094,275); Operating Expenses ($1,330,642); Capital Outlay ($92,000); Debt Service ($1,296,522); and Reserve for Contingency ($3,835,220). We have to balance our budget and our total revenue must match our total expenses in government accounting. Town Commission Budget Workshop Meeting August 07, 2013 Page 3 of Sewer System Proposed Budget — The story is similar for the sewer system. The revenue we generate from our service fees is covering our operating expenses. We have $17,600 left over on the expenditure side and that goes for our Reserve for Contingency. Total estimated revenue of $1,013,000 match our total estimated expenses of $1,013,000. 5 Year Capital Improvement Plan The chart shows year by year of the capital improvements we are proposing in the first year 2013- 2014, and then the fallowing four years that make up the plan. Proposed 2013 -2014 Property Tax Rate — The current year 2012 -2013 general fund tax rate was 3.9500; add in the debt service tax rate of 0.9173, you have a total :tax rate of 4.8673. The proposed year 2013 -2014 keeps the general fund tax rate the same. Our debt service tax rate has gone down slightly to 0.8554 for a total tax rate of 4.8054; an overall tax decrease of 1.3 %. Millage Rate Scenarios— Prior year's tax rate applied to prior year's taxable value generated 6;64 million in taxes. The same tax rate this year, applied against our new taxable value, brings us 6.9 million in new taxes. Last year we did not have to take any funds from the Unassigned Balance. Our new revenues covered all of our expenditures. This year, with the addition of capital improvements, we are looking at taking $920,000 from our reserves to cover those costs. The taxes levied for debt this year will be 1.498 million dollars. For purposes of state compliance, I need to announce that the rollback rate this year is 3,8010 and that would generate $6,695,495. If you were to drop the tax rate to that rate, and keep all the expenditures the same, we would have to dip into our reserves for an additional amount for a total of $1,144,778. The taxes for debt would remain the same. 1 First Public Hearing on the Tax Rate and Budget — We have to hold two meetings in September. You have the option to have another workshop in August and that will be held on August 21st at 1:30 p.m. The first public hearing meeting will be September 5, 2013 at 5:01 p.m. The second public hearing, where you will formally and finally adopt the millage and budget, will be held September 17, 2013 at 5:01 p.m. 4. COMMISSION REVIEW, QUESTIONS & DISCUSSIONS: Comm. Feldman — At this time I do not have any questions. I will be waiting for the Friday's meeting of the Finance Committee. I feel they will have the questions to ask and then follow up from there. Comm. Stern — Having met with both the Town Manager and the Town's Finance Director, I am very comfortable with the budget. I, too, would like to hear the questions from the Finance Committee. I was very comfortable in last year's budget and I am just as comfortable this year; and this year's budget, that we are just coming to the end of, seems to have worked out extremely well. Comm. Sheridan — I have reviewed the budget numerous times and I feel very comfortable with the job that you have prepared here for us. I would also look for any questions or answers that may come from the Financial Advisory Board; then we can make some decisions. As of right now I am very pleased with what we see. Town, Commission Budget Workshop, Meeting August 07.2013 page 4 of 8 Vice Mayor Brown — I think you have done a great, job. With the retirement going up fifty percent, you were still able to hold the budget in line with what we anticipated. I am sure some departments took some cuts in areas to be able to bring it as close as they did. Regarding the Disaster Recover Fond Balance, do you want to go to a percentage instead of doing the $50,000 to get it up to the $400,000? Finance Director Curtis — In a memo, I will be proposing a policy change. I wouldn't do it directly with the budget. I would get your feedback on it; get back to you later on in the fiscal year, and bring a policy change to you on that. The background is that we have a Disaster Recovery Assignment of Fund Balance that I believe was established in 2004/2005. What that policy said was we would take $50,000 each year; transfer it from the unassigned reserve into an assigned reserve for disaster recovery, up to a maximum of $500,000. What I am proposing is that we change that to a percentage base that is more in line with an inflationary measure, such as our budget. The $500,000 today may not be equally as valuable in purchasing power as it would be ten years from now. Whereas our budget will increase with the inflation over those ten years, so should our Disaster Recovery Fund. Vice Mayor Brown — The Delray Fire Rescue Agreement is currently in our budget. Finance Director Curtis — Yes, there is $130,000 budgeted for that. Vice Mayor Brown — I think you did an excellentjob and we should be able to meet the demands of the town, both in personnel and our capital improvements. Mayor Featherman — You gave us a breakdown of the differences of the money we have in the reserve fund and you placed it elsewhere. Was that money put in banks or was it set aside for some projects? Finance Director Curtis — It is set aside on a financial statement basis. It is not set aside in a different banking institution basis. Mayor Featherman — We went up 17 -1 /2 percent millage last year. We voided the resolution passed in 2004; the money received from the sale of the properties we have in Boca would not be used to pay down the mortgage payments on that property. I just wanted to clear that up with you We have in the Operating Budget, Improved Emergency Dispatch Services, $63,800 which is a little over $10,000 more than the original cost. Do we have the money set aside for that? Finance Director Curtis — Yes, we have budgeted for it Mayor Featherman — I noticed on the layout that we have for the improvements, we don't have two exits. We only have one exit leading out from the room where we have our meetings. Finance Director Curtis I am positive that under Florida Building Laws we would have to have two exits. Mayor Featherman — I just want to call it to your attention so the architect could be aware of this. There was a discussion and review of the plan. It was determined that there are two exits. In the Police Dept we have added an extra employee because we have eighteen people instead of seventeen. Then it would go to 19 including your person in the office staff. If I am incorrect, we will find out about that. Comm. Sheridan — Can we get it clarified by the Chief right now? Mayor Featherman — I would rather not have anything done right now, until after we present these, and then they can talk about it afterwards. On the construction fees, we, split 50150 on the amount of monies they get, and then they add any other expenses that they have. If they anticipate $400,000 they would get $200,000 on their end as a fee plus any extra costs. I would like to know if that was figured in. Moving down, we have a cap removed of $350,000 to ten percent, which this year goes to $1,170,000, before there is a referendum. That is something we cannot see happen until the election comes. In checking with people in Washington, the town merit program has given 2.7 % this year to government employees on an average basis. I just want to mention that in case you didn't know that, since I have information to substantiate it. On the police, we have approximately 1300 calls of which 199 were for the fire department; about 525 were for the medical pick-up trucks Town Commission Budget Workshop Meeting August 07, 2013 Page 5 of 8 and the balance to the police department. That is what I have on record. If it is different, I don't know what it would be. Our increase on that end, to the amount of money that goes over, is almost a seven hundred percent increase. Are we taking care of that, too? Finance Director Curtis — For our dispatch service, yes we have that budgeted. Mayor Featherman. — On the ambulance situation, I have been in touch with some of the people here in the fire department. I spoke to two firemen and I understand that our ambulance pick-up trucks are in a pool now. They are not our trucks here. From my understanding, originally we were supposed to have a fire truck with a ladder, plus an ambulance truck that we owned ourselves, here at all times. If it is in a pool, they certainly would use a lot more mileage if it went to Delray because they certainly have a lot more people there, and I assume would have a lot more pick -ups. On the service of the fire truck, one of the Commissioners has told me our name is on the side; but we did have the truck out approximately nine months. So, that is a cost. There is a situation where our contract ends in the year 2017. We have to notify them in 2015 if we are going to continue. This puts us in a rather awkward position because now we have to determine, if we buy that truck, do we take possession of it or do we let Delray buy it and we use it. Of course if we have a contract coming up we certainly should look at a ten year lease payout: from whomever we buy the truck; so, if we do change carriers from one city to another, we still would own the truck. That is why I feel it is important that we not have someone else buy the truck and we just work it out. We look for a ten year payout rather than having it such that someone else buys it from another city. Then if we do terminate their service, we would be stuck without a truck and we would have to go and pay another $850,000 or more for a fire truck. There are several other things that I have looked at. I think it is important that we get the Library enclosed. Then in the future, we consider building out one of their rooms so they can take up to 200 people rather than 99 people. That isn't in here. I was very surprised when I went through the facilities we have coming in the police department renovation. They have eight lockers at $500 each. I used to manufacture lockers in one of my companies and at that time, this is going back about 15 to 18 years ago, we sold three lockers that were 72 inches high by 18 inches deep for $180. So, if it goes up double the amount in all these years, I can't see why it would cost per locker $500 at a cost of $4,000. It leaves me to believe that we have to have someone in purchasing. Either we contract it out or bring in a part time Purchasing Agent who will check the costs of things; not only here, but in all our facilities so we know what our costs: are. We are running a superb operation in our Water Dept. I have been there and see how it works, but we don't know the cost of our chemicals and whether they can be bought cheaper or more expensive. We really need to have help given to our Manager so we know what the costs are. When I looked at it I couldn't understand it because it is a different field; it's in the chemical field. That plus anything else we buy here or any contract we go under, we should have a . Purchasing Agent review it I have even seen shelving that I manufactured for $250. I used to make shelving as well as lockers and, I can tell you, we never ran into that type of pricing. It's not to say that you can't buy it, and someone will buy it from someone else at that figure, but no one has accountability to check the prices. I have a list of all the purchasing they are going to do. I don't know what they are going to pay for it. I think we are entitled to know because this is very important. We approved something and we don't know what our costs are going to be. Comm. Stern — I think you are stepping on the Town Manager's toes with your comments. I believe at one of the meetings we attended for the League of Cities, they displayed a chart that the League of Cities maintains. They have a website where you can look for any product that you need and can get comparative pricing online. You don't need a Purchasing Agent. Mayor Featherman I take Town Commission Budget Workshop Meeting August 07.2013 Page 6 of 8 exception to this because we are buying in the millions of dollars, even on a fire truck. We don't know what is available and what prices go for. We should have someone who knows what we should have a pricing on. If we are going to have a layout of a sidewalk, we should have a consultant give us an approximate cost of what that sidewalk would run. Comm. Stern — First, a problem is the fire track; no one said we are moving to Boca Raton. If I understand correctly, the labor costs of Boca Raton are extremely higher than Delray Beach. Number two, the fire truck leasing is a good idea on our part. I don't think there is anything wrong with that, but it is not what we are budgeted for at the moment and something we can consider. We have decided to put $130,000 in our budget; where it is spent we can decide. Whether it is given to Delray and it becomes our truck, or their truck, we will have to work that out. Mayor Featherman — I take exception with that. Comm. Stem — The EMS vehicle, I don't know that it is in a pool and I don't know if we own an EMS truck. Do we own an EMS truck? Finance Director Curtis — Yes, we do. What T believe you may have heard is if our vehicle, whether it is the fire truck or ambulance goes out for repair, Delray will supply us with an equivalent 'truck -or a rescue vehicle from their motor pool. However, if our truck is in working condition, it is supposed to be here. Comm. Sheridan — I would like to consider the use of this ambulance. When they say pooling, we also benefit if our emergency vehicle or ambulance is on a call here in Highland Beach and we get a second call. The second unit is covered by Delray Beach. We only own the one;, but if we have two or three calls, they are backing us up. As far as cost and repairs on any of these vehicles, it is all done by Delray Beach. We don't pay a nickel for it. Vice Mayor Brown — About six months or so ago we had a bid come through on buying chemicals. There were three bids presented by Jack Lee and we took the lowest one. So, I disagree with your comment that we don't know what we are buying because we specifically had that before the Commission; we specifically took the lowest bid and we specifically had three bids. Also, as far as turning to the Police Dept. and Fire Dept., we have a Fire Chief-, ask her. I don't need to get a consultant. She is the one that is smart. It is what she has done her whole life as does our Chief of Police. When we have problems or questions, we go to our Department Heads, not to an outside agency and spend another $100,000. On the Library terrace, that is in our Capital Improvement Plan for next year 2014/2015. Mayor Featherman I respect you as an airline pilot to know things, but there are certain things in running an airline that people check. They check purchasing. I take exception to your remark because I think, as a man that knows about purchasing, you really have to have people that do purchasing. Vice Mayor Brown — You have a right to do that and I have a right to disagree. Comm. Feldman — At this meeting I did not think we were going to get into some of the details that you are getting into. As far as purchasing, the town procedure is, if it is over a certain amount of money, you have to get three quotes. I have no other questions at this tune. I would like to wait and see what the Financial Advisory Board has to say and see what their suggestions are. Comm. Stern — I have no additional questions, I was just a little upset at some of your remarks. Mayor Featherman — You are entitled to it, but you are wrong also. Comm. Sheridan — I have nothing further. Town Commission Budget Workshop Meeting August 07.2013 Page 7 of 8 } Vice Mayor Brown — There are five Commissioners up here and you are one Commissioner, so you have one -fifth of the persuasion to try and change things. The other thing is for the budgeting for the police cars. We show $58,000 in one place and $72,000 in another. What is the difference? Finance Director Curtis — The . difference is the equipment that goes along with it These first couple of years, the equipment changeover is going to be a lot more because we are going from a Crown Victoria to a Dodge Interceptor. Comm. Feldman — We were told if we needed any backup to these figures, you had them all. Finance Director Curtis — Yes I do have them. Comm. Stern — Mayor, I would like to have Chief Hartmann address the number of police personnel we have on hand. I'believe you said there were 17 people and I am not sure if that is correct. Mayor Featherman — It says there are 18 people plus one and that would be the woman that is in the front office. Finance Director Curtis — I think you are getting it from the Town's Organization Chart. There are 18 positions listed and one of those police officers is listed as frozen and unfunded, and has been for the last two years. There is still a total of 17 budgeted not 18. 5. COMMISSION BUDGET MEETING: August 21, 2013 — Budget Workshop —1:30 PM September 5, 2013.— First Budget Public Hearing :- 5:01 PM September 17, 2 — Final Budget Public Hearing — Set Millage Rate— 5:01 PM 6. PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT MEETING: Joe Cannazarro.1121 Bel Aire Dr. — A lot of work went into this budget. I have done a lot of budgets in the past. The only thing that I don't see and would recommend in fixture budgeting exercises, is doing some benchmarking if possible. Do some comparable towns, comparable line items in the other towns because when you look at the budget it is in need of direction. I don't know how to compare it to anything else. For this budgeting exercise, it is probably not feasible to do that; but I am recommending that, as we go forward, we do benchmarking in the areas that require benchmarking. Such as people in different departments, how does it compare; what kind of numbers are people getting in retirement; things like that. If we can compare ourselves to somebody else, at least we will know where we are from a benchmarking point of view and get an idea of just where we are in relationship to other towns. 1 Town Commission Budget Workshop Meeting August 07.2013 P egg 8 of g 7. ADJOURNMENT: There being no further business to come before the Commission, Mayor Featherman adjourned the Budget Workshop Meeting at 5:18 PM upon a MOTION by Commissioner Sheridan and seconded by Commissioner Feldman APPROVED: Bernard Featherman, Mayor Ron wn, V'ce Mayor Dennis J. ShenWn, Co ssioner s to s ner eldman, Commissioner ATTEST: Beverly M. rown, MMC ate