2009.08.18_TC_Minutes_SpecialTOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
SPECIAL MEETING
Tuesday, August 18, 2009 1.30 PM
Mayor Jim Newill, CPA called the Workshop Meeting to order in the Commission Chambers at
1:30 PM.
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; Deputy Finance Director Cale Curtis; Library Director Mari Suarez;
Public Works Director Jack Lee; Police Chief Craig Hartmann and Assistant to the Town
Manager Zoie Burgess.
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: The Civility Pledge was recited by the Town Clerk.
1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA
Agenda accepted as submitted.
2. PUBLIC. COMN>ENTS AND REQUESTS
No comments received.
3. DISCUSSION OF REVISED 2009-2010 BUDGET:
Town Manager Sugerman -Based upon the input from the Town Commission at the first
budget workshop, we have revised the draft budget document. We have accomplished the
following: 1) We have kept the proposed General Fund operating tax rate at the 0.05 millage
rate reduction level. 2) We have kept the anticipated reduction in the water rates (which will
be finalized in our rate study over the next month or so with an implementation date for the
first billing after January 2010). 3) We have assumed that there will be a need for an
adjustment in the sewer rates. 4) We have reinstated the merit pay for all non-union
Town Commission Budget Workshop Minutes
August 18, 2009 Page 2 of 4
employees; reinstated the longevity pay plan; eliminated the proposed threshold level
contribution by the Town of $750 per employee for health insurance coverage and replacing
it with a COLA inflated employee payroll deduction. 5) We have inserted the COLA inflated
contribution by the Town to the deferred compensation payment for those employees who
receive a reduced health insurance benefit. 6) We have set the General Fund Reserve for
contingency at a flat $400,000.00. 7) We have put back into the budget some of the 10%
operating costs taken from some of the operating departments with the initial proposed
budget document. This has all been accomplished with the result being a need to take
$482,643.00 from the General Fund. unrestricted fund balance. If the Commission chooses
not to take some or all of the funds from the unrestricted fund balance and instead chooses to
raise the tax rate, the options are: a) increasing the millage rate by 0.10 mills would raise an
additional $185,763; b) increasing the millage rate by 0.20 mills would raise and additional
$371,527; c) raising it by 0.30 would raise an additional $557,290. The tentative maximum
millage rate of 3.7697 mills, which is the rate set by the Town Commission last month,
would actually raise an additional $771,847.00. This is more than enough to cover the
dipping into the unrestricted reserve and give the General Fund some additional revenue. It
would still do so as a tax reduction over the roll-back rate. Even at this amount, the general
operating ad valorem taxes would be going down but the taxpayer's overall tax bill would be
going up because of the voter approved portion of the Highland Beach tax rate.
4. COMMISSION QUESTIONS & DISCUSSIONS:
Mayor Newill -Each Commissioner should express their individual opinion. 1) I have no
problem keeping the tax rate at the current rate and take the remainder from reserves. 2)
Police Department -seven months ago when we were interviewing candidates for police
chief, I did not hear one word about hiring additional administrative personnel. The request
for the lieutenant states the total cost would be $107,170.00 of which $33,260.00 is benefits.
It also states that there are two vacant patrol positions which would partially off set this cost.
Are you saying that a patrol officer receives $46,000 worth of benefits? The Special
Magistrates' report specifically states that the Town Manager testified that these 2 vacancies
are going forward in the new budget. None of these figures add up. Town Manager
Superman -The new budget proposes only one new patrol officer and a lieutenant. I am not
prepared to answer these questions at this moment, but would be happy to meet with you
individually to provide you with answers, or to bring them back at a subsequent meeting after
I confum the numbers that you are questioning.
Vice Moor Zwick -Please clarify that 3.7967 mills is the millage rate from 2008-2009.
Town Mana eg r Su erman - No, that is the tentative millage rate that the Commission
adopted last month.
Commissioner Trinlev - I would like additional information regarding the proposed
lieutenant position. Will someone be promoted from within the current staff? Reply -Those
who are eligible will be considered.
Town Commission Budget Workshop Minutes
August 18, 2009 Pale 3 of 4
Commissioner Pa liaro -Mayor, is your concern the money discrepancy or the re-
organization? Mayor Newill -Both. Comm. Pa liaro -Are we the only police department
without a lieutenant? Mana er Su erman - We did a survey comparing our agency with the
other beach communities. Highland Beach is the only one without a command structure.
Vice Mayor Zwick -Does the 3.7697 millage rate include debt service? Mana eg r Sum
-The debt service portion of the millage rate is .9183. Whatever your operating millage rate
is, you have to add .9183. The proposed millage rate plus debt service is 4.2725 mills. Vice
Mayor Zwick -Not in favor of a decrease but I am in favor of a slight increase. To be
realistic -slightly raising it to 4.2725.
Mayor Newill -Are you aware of anyone reducing their tax rate? Manager Su erman - No.
Some are using the roll back rate which is not considered an increase. Mayor Newill - If we
leave it alone, we would be taking less out of the reserves.
Vice Mayor Zwick -Last meeting we agreed to take money from the unreserved fund
balance. Let's stick to taking the money from this account.
MOTION: Vice Mayor Zwick moved to reduce the tax rate by .OS mills; seconded by
Commissioner Pa lg iaro.
Discussion: Town Mana eg r Su erman -Keep in mind, a budget is not the authority to
spend. It provides the allocation, but it does not mean we are going to expend it. In addition,
we will establish a ceiling of what can be taken from the unrestricted reserve. The
Commission can modify this figure by Resolution at any time during the year.
ROLL CALL VOTE:
Vice Mayor Zwick - Yes
Commissioner Pagliaro - Yes
Commissioner Trinley - Yes
Commissioner Sorrelli - Yes
Mayor Newill - No
Motion passed with a 4-1 vote.
5. PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT
MEETING
None
Town Commission Budget Workshop Minutes
August 18, 2009 Page 4 of 4
6. ADJOURNMENT
There being no further business to come before the Commission, Mayor Newill adjourned
the Budget Workshop Meeting at 2:15 PM upon a MOTION by Commissioner Pa lg iaro;
seconded by Vice Mayor Zwick.
APPROVE:
ATTEST:
Beverly M. rown, MMC
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Date ~
Doris M. Trinley, Commissioner