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2008.09.09_TC_Minutes_Special• TOWN OF HIGHLAND BEACH MINUTES OF TOWN COMMISSION MEETING BUDGET MEETING Tuesday, September 9, 2008 5.01 P M Mayor Jim Newill, CPA called the Budget Meeting to order in Commission Chambers at 5:01 P.M. CALL TO ORDER: Roll Call: Members present: Mayor Jim Newill, CPA; Vice Mayor Miriam S. Zwick; Commissioner Doris M. Trinley; Commissioner John J. Sorrelli; and Commissioner John J. Pagliaro. Also present: Town Attorney Tom Sliney; Town Manager Dale S. Sugerman; Town Clerk Beverly M. Brown; Finance Director Stanley Novak; Senior Accounting Clerk • Cale Curtis; Chief of Police Carlo Angelillo; members of the public. Pledge of Allegiance: The Pledge of Allegiance was given, followed by a minute of silence in honor of members of the military, both living and deceased. Civility Pledge:. Town Clerk Brown recited the Civility Pledge for the Commission and public. 1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA: • Agenda accepted as presented. 2. PUBLIC CONIlVIENTS AND REQUESTS: • No comments received. 3. PRESENTATION OF BUDGET RESOLUTIONS A) Town Clerk Brown read proposed Resolution No. 08-008 R -Adoption of Proposed Final Millage Rate into the record. • A RESOLUTION OF THE TOWN CONIlVII55ION OF THE TOWN OF HIGHLAND BEACH, FLORIDA, ADOPTING A FINAL MILEAGE RATE OF Town Commission Special Meeting Minutes September 9, 2008 Page 2 of 4 • 3.4042 MILS FOR THE TOWN'S GENERAL OPERATING FUNDS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009; PROVIDING THAT THE FINAL MILEAGE RATE OF 3.4042 MILS IS 7.87 PERCENT LESS THAN THE COMPUTED ROLLED-BACK RATE OF 3.6951 MILS; PROVIDING FOR SEVERABILITY, CONFLICTS AND AN EFFECTIVE DATE. Town Manager Su erman -This proposed resolution sets the proposed final mileage rate at 3.85 mils for the 2008-2009 fiscal year. Please remember that 3.85 mils does not have to be the final millage rate. The Commission adopted a tentative maximum millage rate of 3.95 mils. If the Commission wants, the final millage rate could go as high as 3.95 mils. This would add approximately $200,000 to the anticipated revenues if this higher millage rate is adopted at the second meeting on September 25`t'. The second resolution has the final proposed budget document attached to it, including the Town's organizational chart and the 2008-2009 pay plan. Both resolutions are being introduced at this meeting, and there will be opportunities for both individual members of the Commission to speak to both items, and for the public to speak to both items. Neither resolution is to be voted upon at this meeting. The second reading of these resolutions, along with a final vote will not be conducted until the meeting of September 25, 2008 at 5:01 P.M. Mayor Newill - We are able to change the millage rate until the 25~'? Manager Su eg rman -Yes, but you cannot go higher than the 3.95 mils. • Mayor Newill -Opened the public hearing. Receiving no comments, the public hearing was closed. Commissioner Pa lg iaro -What is the reserve? Mana eg r Superman - $579,084. Are you comfortable with that? Mana eg r Su erman - No. The reserve amount is the amount appropriated but not allocated. It is available for unforeseen expenditures. The budget is established in May. Between then and September 30, 2009 we may not be able to foresee any unexpected or emergency problems. Mayor Newill -This current fiscal year had $861,993 in contingency. The balance is only $2,400.00. B) Town Clerk Brown read proposed Resolution No. 08-009 R -Adoption of Proposed 2008/2009 Budget into the record. A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF HIGHLAND BEACH, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009; DETERMINING AND FIXING THE AMOUNTS NECESSARY TO CARRY ON THE GOVERNMENT OF THE TOWN FOR THE ENSUING YEAR; • PROVIDING FOR SEVERABILITY, CONFLICTS AND AN EFFECTIVE DATE. Town Commission Special Meeting Minutes September 9, 2008 Page 3 of 4 • Mayor Newill -Opened the public hearing. Receiving no comments, the public hearing was closed. Commissioner Trinlev -Resolution No. 08-008 R represents a millage rate of 3.85. How much would the budget increase if it was changed to 3.95 mils? Reply -Approximately $205,000.00. MOTION: Vice Mavor Zwick moved to instruct the Town Manager to prepare and calculate a Resolution with a 3.95 millage rate for review; seconded by Commissioner Trinlev. Discussion: Mana eg r Su erman - If the motion is approved, the Finance Director and I will prepare a proposed resolution using the 3.95 millage rate. Vice Mavor Zwick -The additional monies are to be included in the reserves. I will be abroad and will not be able to vote on the final resolution. Comm. Trinlev -This will increase the reserves by approximately $205,000.00? Reply -Yes. Mayor Newill - It appears the Commission wants the Vice Mayor to be involved in the final millage rate. We should vote either way at this meeting. Comm. Trinlev - Do we know how much the 3.95 rate would increase each individual tax payer's total? Mayor Newill -The trim notice that went to each individual tax payer was based on the 3.95 millage rate. Comm. Trinlev -Are we going to increase the garbage and solid waste rates? Mana eg r Sugerman -The proposed ordinance will be on the next workshop. The increase figures are not in the proposed budget. The wholesale cost to the town is in the budget. The Commission has to determine if they want to subsidize the rates. Vice Mayor Zwick - If we are only adding $200,000 to the budget, and we have a disaster, it will not cover beans. We would then have to operate in a deficit. Should we give it a try? Mavor Newill -The 3.95 is a reduction from the 4.0 millage of last year. If we have an unforeseen catastrophe, most of the cost will be covered by insurance. What we have not covered, are the unanticipated items the Commission decides to fund during the year. Unfortunately, they are easy to fund. Comm. Pa liaro -Disagree. The Town Commission has the responsibility to fund the services that our residents expect. If we go to 3.95 it is not an increase. They have already been notified that this will be the millage rate. Not comfortable with less reserves. Mana er Su eg rman - Do not want to mislead you. My response of no is to let you know that $575,000 or $875,000 may not be enough for the unexpected. Did not want to go on record stating that you had nothing to worry about, as no one knows what the future brings. I did not use the word catastrophe as those will be paid by insurance. I used the word reserves due to unexpected expenditures. Strongly urge the Commission to adopt the. rate of 3.85 mils which is 7.87 percent less on top of us going down last year, as the taxpayers have told us to reduce taxes, cut back, and tighten the belt wherever you can. • Town Commission Special Meeting Minutes September 9, 2008 Page 4 of 4 ROLL CALL: Vice Mayor Zwick - Aye Commissioner Trinley - Aye Commissioner Pagliaro - Aye Commissioner Sorrelli - No Mayor Newill - No Motion passes with a 3-2 Vote. 4. PUBLIC COMMENTS REGARDING 2008/2009 FISCAL YEAR BUDGET No further comments 5. COMMISSION COMMENTS AND DISCUSSIONS: No further comments 6. PUBLIC COMMENTS AND REQUESTS: None 7. ADJOURNMENT There being no further business to come before the Commission at this time, a MOTION was made by Commissioner Sorrelli and seconded by Commissioner Pagliaro to adjourn at 5:45 P.M. ~~ APPROVE: ~~, / I ~'~LL~ I•