Loading...
2014.09.05_FAB_Minutes_Regular TOWN OF HIGHLAND BEACH MINUTES OF THE FINANCIAL ADVISORY BOARD REGULAR MEETING Friday, September 05, 2014 9:00 AM Members Present: Chair Gerald Gitner, Board Member Dragos Alexe, Board Member David Buchsbaum, Board Member Bruce Giacoma and Board Member Edward B. Komfeld. Also Attending: Finance Director Cale Curtis, Deputy Town Clerk Valerie Oakes, Public Works Director Edward Soper, Town Manager Kathleen Weiser, Vice Mayor Ron Brown, Commissioner Carl Feldman, Commissioner Louis Stem and members from the public. CALL TO ORDER: Chair Gitner called the Regular Meeting to order at 9:00 AM in the Town Hall Conference Room. Roll call was taken by Deputy Town Clerk Oakes. Chair Gitner welcomed the two new members to the Board, Mr. Dragos Alexe and Mr. Edward B. Komfeld. Member Alexe and Member Komfeld introduced themselves and provided their background and qualifications. 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 and requests. PRESENTATIONS: • Report on the Public Works Department By: Ed Soper, Public Works Director Director Soper provided a report on the FY 2014 /15 recommended budget for the water, sewer, and public works department (see attached exhibit `A') and discussion ensued amongst the Board. Financial Advisory Board Regular Meeting Friday, September 5, 2014 Page 2 of 5 APPROVAL OF MINUTES: • July 25, 2014 — Regular Meeting Chair Gitner called for any modifications to the July 25, 2014 Regular Meeting minutes. Member Buchsbaum — On page 4, it reads "By consensus, the Board agreed that this is the time to raise the water rates ". I ask that the minutes be amended to state the following `By consensus, the Board agreed that this is the time to look into the water rate structure ". MOTION: Member Buchsbaum moved to approve the minutes of July 25, 2014 Regular Meeting as amended. Member Giacoma seconded the motion, which passed unanimously. OLD BUSINESS: A) Update on the Sale of the Surplus Property Finance Director Cale Curtis reported that the City of Boca Raton has approved the Comprehensive Plan Amendment and the Site Plan. The property is scheduled to close on September 16, 2014, and the Town will receive a check of $3.5 million less the $50,000.00 deposit for the property. Chair Gitner — What additional revenue was received over and above the cost of the property? Director Curtis — We have received $3,500.00 each month for the last three months for the extension that was given. There was another $20,000.00 for an extension, so approximately $30,000.00 was received over and above the sale price during this process. Director Curtis — Regarding the proceeds of the sale, the Board's recommendation was to not use the money to pay down existing debt. As you can see from Director Soper's presentation, the Town has a number of capital improvement projects from the general fund and the utility system that we will look to allocate a portion of these proceeds to offset any future borrowing or rate increases. For the time being, I am preparing an action plan to invest the funds in very safe instruments that will give us a high return; most likely CDs under two years. Member Alexe — It this the net amount? Do we have any other expenses such as realtor fees? Director Curtis — No, we essentially represented ourselves. We have had some ongoing attorney expenses, but we will receive a net check. B) Discussion on the Proposed FY 2014/15 Budget Director Curtis — At the last FAB meeting, we reviewed the proposed FY 2014/15 Financial Advisory Board Regular Meeting Friday, September 5, 2014 Page 3 of 5 budget. A few days later, the Town Commission held their first meeting on the budget. Below are the recommended changes: 1) Personnel benefits regarding education incentive — The consensus was to eliminate the incentive for employees hired after October 1, 2014, and grandfather current employees. 2) The potential passing of the xeriscape ordinance, which would shift the right - of -way tree maintenance to the Town. We added $75,000.00 to budget for the tree maintenance; this is for an extremely high scope of services. Chair Gitner — Does this include the bushes that impede the walkway? Director Curtis — I do not believe that estimate includes bush maintenance; it is strictly for tree maintenance. Member Giacoma — As a biker, it is almost impossible to have two people pass each other. Chair Gitner — It is dangerous because the branches grow out and if someone comes by in a bike, then you get hit by a branch. Member Giacoma — That brings up an important point. People should not ride their bicycles on the pathway; there is a bike lane. This is a very serious issue. Chair Gitner — The people who ride their bikes on the pathway are those rarely ride, so they are the people who cannot maneuver around the people on the walk path. Director Curtis — Regarding the bushes protruding on the walk path and the right -of -way, I will have staff look at how the potential passing of this ordinance would affect the Town's responsibility for that. 3) There was $15,000.00 added to the Fire Department for interior maintenance items to install exhaust fans in the bay area, renovating the showers and the kitchen area. 4) We added $3,000.00 to the Police Department for the CERT program. 5) We reduced the Library's budget for replacing computers by $1,000.00. Director Curtis — These are not major changes and they do not affect the bottom line number. Funds were reallocated from the general fund to cover the increases /decreases. The Town Commission will hold the Budget Public Hearings on September 9 at 5:01 PM and September 23` at 5:01 PM in the Library. Chair Gitner — I did some work with Director Curtis on the meaning of the $350,000.00. In 1991, $350,000.00 in today's money is less than $200,000.00. The reverse, if you looked at 1991 the limit ($350,000.00) that was passed by the voters then, would be approximately slightly over $600,000.00 today. I don't think that the voters at the time ever envisioned bringing items in "then dollars," less than $200,000.00, to the voters. I think that is another important point that Financial Advisory Board Regular Meeting Friday, September 5, 2014 Page 4 of 5 needs to be made. Member Buchsbaum — I agree. Isn't there a separate advisory board for this purpose, the Charter Review Board? Director Curtis — In 2012, there was a Charter Review Board. Member Buchsbaum — Is there currently a Charter Review Board? Deputy Town Clerk Oakes — Every 10 years the Charter Review Board will review the charter. Chair Gitner — Perhaps what you are saying is, maybe, there should be an Ad Hoc Committee to advise the Town Commission because this is so important. Apparently in 1994 when the fire truck was bought, it was not brought to the voters and it cost more than $350,000.00. It made sense to me because it is like the water pipes an ongoing service, yet it was brought to the voters in 2011 for whatever reason. It is pursuant to an existing contract — you should not go to the voters for that kind of stuff — you go to the voters to build a new recreation center, to double deck A1A — not to keep your water going, it does not make sense. Member Buchsbaum — Maybe there should be a recommendation from the Board to the Town Commission to formulate a working group to work on the issue in whatever form they want because it does affect all of us. Chair Gitner — I don't think anyone has factored what it costs to run these referendums. Member Buchsbaum — I think developing policy alternatives makes sense. Manager Weiser — Are you referring to life, health and safety issues? Member Buchsbaum — I do not know how it is done in other towns, but I would first look to other towns to see how it is done. Then, try to relate that back to our needs. Chair Gitner — I question if it is health and safety because you can say you want to build a recreation center so everyone can go on a treadmill. Some others might think that is a frill. I am saying that the water pipes, fire engine, ambulance and police cars are not a frill, they are ongoing services that the town provides; therefore, it is the Town Manager's job. Why should you have to take the time to explain this to the voters? The fire engine was rejected. Now we have the Commissioners on video saying the engine does not work. There are people on tape saying that the engine does not work, so if it breaks down during a run, I do not want to be on the other end of a lawsuit. Member Buchsbaum — I want to be careful to say that we are not trying to make the policy decision whether or not it should be taken to the voters on any issue. There needs to be some language developed that might end up to be a valuable alternative to what we have currently. Director Curtis — We go back to our Charter, which is law. Can we amend the charter at any given year? Manager Weiser — Yes. Director Curtis — That is basically what would need to happen. The Commission would need to add language to accommodate purchases such as this. MOTION: Member Buchsbaum moved to make a recommendation to the Town Commission to take a look at this matter by appointing an advisory committee to look at the issue and develop a recommendation. Member Giacoma seconded the motion with all in favor. Member Alexe — Does the Town have a legal emergency fund? Director Curtis — We do not have a separate designation for a legal emergency fund. What we do have is a legal budget for our attorneys, insurance, disaster recovery fund (depending on the type of lawsuit), a budget stabilization reserve that is equal to Financial Advisory Board Regular Meeting Friday, September 5, 2014 Page 5 of 5 two months of general fund operating expenditures, and we have a "rainy day" fund. NEW BUSINESS: Director Curtis presented a news release from the Government Finance Officers Association awarding the Town of Highland Beach the Certificate of Achievement for Excellence in Financial Reporting (see attached exhibit `B'). ADJOURNMENT: Chair Gitner announced that the next Financial Advisory Board meeting will be held on Friday, October 17, 2014 at 9:00 AM. There being no further business, Chair Gitner called for a motion to adjourn the meeting at 10:10 AM. MOTION: Member Giacoma moved to adjourn the meeting at 10:10 AM. Member Buchsbaum seconded the motion, which passed unanimously. APPROVED: ( G; Ge . Gitne 6+ dew I Dragos A1/ e7: oard Member David Buchsbaum, Board Member 1 Bruce Giacoma, Boaarrdd Membe TOWN SEAL Edward B. rmfeld, ;r . ember a0 t) airwo- Valerie Oakes, CMC Deputy Town Clerk Date: \Oj l'1114