2016.08.02_TC_Minutes_Workshop TOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION
BUDGET WORKSHOP MEETING
Tuesday, August 2, 2016 4:40 PM
Mayor Bernard Featherman called the Budget Workshop Meeting to order in the Town
Commission Chambers at 4:40 PM.
CALL TO ORDER:
Roll Call: Members present: Mayor Bernard Featherman; Vice Mayor William Weitz, Ph.D;
Commissioner Carl Feldman; Commissioner Louis P. Stern and Commissioner Rhoda Zelniker.
Also present: Town Manager Beverly Brown; Town Clerk Valerie Oakes; Police Chief Craig
Hartmann; Finance Director Cale Curtis; Public Works Director Ed Soper; Library Director
Lois Albertson; Building Office Manager Carol Holland and members of the public.
Pledge of Allegiance: The Pledge of Allegiance was given, followed by a minute of silence.
Civility Pledge: The Civility Pledge was recited by the Town Clerk.
1. ADDITIONS,DELETIONS OR ACCEPTANCE OF AGENDA:
Manor Featherman called for any additions or deletions to the agenda, hearing none the
agenda was accepted as presented.
2. PUBLIC COMMENTS AND REQUESTS:
None were received.
3. PRESENTATION OF 2016-2017 PROPOSED OPERATING BUDGET:
Finance Director Cale Curtis — At the meeting of July 141`, the proposed operating budget
for FY 2016-2017 was presented and the tentative maximum millage rate was set at 3.2816,
which is the calculated rolled back rate for this year. (The Proposed FY 2016-2017
Operating Budget presentation is attached hereto as Exhibit "A').
Town Commission Budget Workshop Meeting Minutes
Tuesday,August 2,2016 Page 2 of 4
Town's Taxable Value:
The high in 2007 was $2.3 billion, dropped down to $1.7 billion in 2012 and we have
steadily climbed back up to $2.2 billion in fiscal year 2017.
Understanding your Tax Bill:
The Town received about 24%of the tax bill.
Unassigned Fund Balance:
It waves up and down over the years. In 2015 we had a little over $5 million where we put
approximately $900,000 back into the reserves mostly due to the increase in permit revenues
that we had. In 2016 we will most likely put money back into the reserves again. However,
fiscal year 2017 we do have a portion of our reserves in the budget, about $233,000. It is
not in there for any particular line item in the budget. What that basically does is it gives us
the $300,000 on the expense side for the Reserve for Contingency.
Town Tax Rate:
There was a high in 2013 of 4.8673 and fiscal year 2017 the proposed tax rate for operating
and debt service combined is 3.8876; almost a full one millage rate lower than it was in
2013.
General Fund Revenues:
The proposed revenues are on the upside.
General Fund Proposed Budget Highlights- Total Expenses:
A good sign for our Town are the expenses with the exception of the operating expenses.
They are up $244,000 which is attributed to the fire rescue agreement. If you remove that
all the other line items are going down.
General Fund Proposed Budget Highlights-Personnel Expenses:
Personnel expenses are $3.51 million, which includes a 3% salary adjustment effective
October 1St, longevity bonus and the new insurance program the Town has implemented.
The current Police personnel expenses provides a 5% merit increase and the education
incentive.
General Fund Proposed Budget Highlights-Operating Expenses:
The operating expenses are $5.7 million; the increase was $300,000 for the fire rescue
services.
Town Commission Budget Workshop Meeting Minutes
Tuesday,August 2,2016 Page 3 of 4
General Fund Proposed Budget Highlights- Capital Expenses:
The capital expenses are $233,000, which include the replacement of the fire hydrants and
the purchase of two Ford Police Interceptors.
General Fund Proposed Budget Highlights-All Other G.F. Expenses:
We no longer have any debt in our General Fund. The transfer of$1.28 million to Water
Fund is to cover debt secured by ad valorem taxes. The reserves of $300,000 is what I
referred to regarding the appropriation from reserves. If we eliminated that number, we
would not need $230,000 from the budget. This number is our safety net. If an emergency
should come up throughout the year, we wouldn't have to amend the full budget. We could
come to the Commission for authorization to spend this money if we needed to.
Water System Proposed Budget:
Our revenues are estimated to be up around $48,000 and that is due to the inflationary rate
adjustment that we passed a few months ago. The total estimated revenues are $1,136,510
and the expenditures are $1,136,510.
Sewer System Proposed Budget:
Our revenues are up $24,000 due to the inflationary rate adjustments. We need $96,000 in
reserves to balance the budget.
Five Year Capital Improvement Plan:
The first year is the only year that has funds appropriated. The remaining four years is our
guide as to what we need to be doing as far as looking forward. The two big items are the
Lime Slurry/Co2 Delivery System and the Water Mains Replacement.
Millage Rate Scenarios:
With regard to the tax rate, each .05 mils that you increase the rate or decrease the rate is
going to affect the budget by $110,000. The total tax rate, if approved as presented today,
would be a 6.2% decrease.
4. COMMISSION REVIEW, QUESTIONS & DISCUSSIONS:
Comm. Feldman— The money left over from last year's budget is approximately $900,000.
Where is this money in this accounting? Fin. Dir. Curtis — It is in the Unassigned Fund
Balance of$5,011,000. Comm. Feldman — Where is the $3.5 million from the sale of the
Boca Raton property? Fin. Dir. Curtis—It is in the water system, and I will point that out in
my next presentation as to where it is located. Comm. Feldman — Could we use some of
that money to fund the fire hydrant project? I understand we can't use any of the $5-
Town Commission Budget Workshop Meeting Minutes
Tuesday,August 2,2016 Page 4 of 4
million-dollar loan money to fund that project. Fin. Dir. Curtis — I will remain hopeful that
it will fall under the $5 million total cap for both projects, but yes we could use those funds.
Vice Mayor Weitz— In the budget we are replacing two police vehicles every year. Do you
know how old and what the mileage is on those vehicles? Police Chief Craig Hartmann —
That is not accurate. We are not due to replace them until the 2019/2020 budget. The two
vehicles we are replacing now have over 60,000 miles. One is a 2007 and the other is a
2013, which is the supervisor's vehicle that gets used around the clock. That will be out of
warranty before the next budget year starts.
Town Manager Brown— The next budget meeting will be for Police, Town Manager, Town
Clerk and Finance.
5. PUBLIC COMMENTS AND REQUESTS RELATED TO AGENDA ITEMS
DISCUSSED AT MEETING ONLY:
None were received.
6. ADJOURNMENT:
There being no further business to come before the Commission, Mayor Featherman called
for a motion to adjourn the Budget Workshop Meeting at 5:05 PM.
MOTION: Commissioner Stem moved to adjourn the Budget Workshop meeting at 5:05
PM. Motion was seconded by Commissioner Feldman, which passed unanimously.
APPROVED:
Bernard Featherman, Mayor
it We tz, ice a
ATTEST:
. Carl Fel o oner
V erie Oakes, CMC L Stern, o issioner
Town Clerk
(� oc�
6`' � oda Zelniker,ffnissioner
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