2019.07.23_TC_Minutes_Special• •
TOWN OF HIGHLAND BEACH
960 TOWN COMMISSION SPECIAL MINUTES
Town Hall / Commission Chambers Date: July 23, 2019
3614 South Ocean Boulevard Time: 1:30 PM
Highland Beach, Florida
1. CALL TO ORDER
Mayor Rhoda Zelniker called the meeting to order at 11:30 a.m. in the Commission Chambers.
2. PRESENT UPON ROLL CALL
Commissioner Evalyn David
Commissioner Barry Donaldson
Mayor Rhoda Zelniker
Town Manager Labadie
Town Clerk Lanelda Gaskins
ABSENT:
Commissioner Peggy Gossett -Seidman
Vice Mayor Greg Babij
3. PLEDGE OF ALLEGIANCE
Town Commission led the Pledge of Allegiance followed by a moment of silence.
4. CIVILITY PLEDGE
Town Clerk Gaskins recited the Civility Pledge.
We will be respectful of one another even when we disagree
We will direct all comments to the issue
We will avoid personal attacks
"Politeness costs so little."
By: Abraham Lincoln
Town Commission Special Minutes
Date: July 23, 2019
Page 2 of 5
5. Proposed Operating Budget Presentation For Fiscal Year 2019-2020 By Matthew Lalla,
Finance Director
A. Overview Of Proposed FY 2020 Operating Budget (07.11.2019)
Town Manager Labadie introduced this item.
1. PowerPoint Presentation
Finance Director Lalla presented an overview of the Proposed FY 2020 Operating
Budget. He highlighted the following:
• FY 2020 Budget Highlights
• FY 2020 Millage Rate
• Town's Taxable Assessed Value
• Town's Tax Rate
• How Highland Beach Taxes are Divided
• General Fund Revenues
• General Fund Expenditures
• Fund Balance in the General Fund
• Unassigned Fund Balance in the General Fund
• Building Special Revenue Fund
• Discretionary Sales Surtax Special Revenue Fund
• Water Enterprise Fund
• Sewer Enterprise Fund
• Unrestricted Net Position in Enterprise Funds
• FY 2020 Capital Projects
• Millage Rate Scenarios
• Millage Impact on Homeowners
• Major Initiatives for FY 2020
Town Manager Labadie provided input regarding future adjustments that will impact the budget.
He mentioned major initiatives for FY 2020, including the crosswalk project, developing a new
strategic plan, maintaining the integrity of the sanitary sewer system, and implementing an ERP
system. He stated the Town is on sound financial footing and in great shape, and everything being
done is a collaborative effort and has a unique sense of place.
Finance Director Lalla went over the FY 2020 budget calendar of events:
• Town Commission Budget Workshop - Public Safety - Thursday, 8/1/2019
• Town Commission Budget Workshop - Building Department, Public Works - Thursday,
8/20/2019
• Town Commission Budget Workshop - Optional (if needed) - Thursday, 8/29/2019
Town Commission Special Minutes
Date: July 23, 2019
Page 3 of 55
• Town Commission Public Hearing - (to tentatively adopt proposed millage and proposed
budget for FY 2020) - Thursday, 9/5/2019
• Town Commission Public Hearing - (to adopt final millage and final budget ordinances for
FY 2020) - Thursday, 9/19/2019
Finance Director Lalla addressed questions that were raised at the last presentation to the
Commission:
1. Value of personnel salary increases is $198,500 (salaries and fringe benefits -- $40,000 per
percent)
Town Manager Labadie stated that with the budget, this is a collection of estimates. A big
item that will drive the thought pattern moving forward when talking about potential upward
adjustments is, it was a great year on health care. The Town has to start thinking about health
care cost increase next year (which escalates each year).
2. Fire Services — Pension cost under the fire services budget is approximately 19.2%, which is
on par with the Town's retirement cost.
Mayor Zelniker opened this item for discussion and stated that this is only to set the highest
rate.
Commissioner David stated she is convinced that the Commission will not get to the up -to rate,
and believes the millage rate needs to be set to have the ability to go back and look at things.
She remarked she has "an allergic reaction" to building a structured deficit into a budget. She
stated she does not like to plan for a budget where the reserves need to be tapped.
Commissioner Donaldson stated he believes the Town is on good ground not to exceed the cap
that is being proposed. He stated the Town has seen some very feasible cuts that can be made,
and that they are at a good point to start with.
Mayor Zelniker thanked Town Manager Labadie and Finance Director Lalla for making the
presentation informational and easy to understand, pointing out that some people she has
spoken with do not even know what a millage rate is. Finance Director Lalla proceeded to
define and explain the millage rate.
Mayor Zelniker explained this is only a rate that is set, and it cannot go any higher. She
explained that they have to look into the future. She stated that in the past, the Commission
has been lowering the millage rate in a consistent manner, and possibly infrastructure (e.g.,
water lines, sewer) was not taken into consideration. She reiterated they cannot constantly tap
into the reserves.
Town Manager Labadie stated the millage rate is not covering operating expenses. He also
stated that reserves can be good for capital projects on a year-to-year basis but operating and
millage rate, at a minimum, should always be in line. He explained that they should be in a
Town Commission Special Minutes
Date: July 23, 2019
Page 4 of
position to weather the storm for certain economic changes. Mr. Labadie then read an e-mail
he received from Vice Mayor Babij into the record.
Commissioner David stated she appreciated the Vice Mayors comments; however, because
they do not know how he arrived at his comments and they do not have the ability to ask him
questions, she feels they should pass the resolution as it is written. She stated all five
Commissioners need to be present at future meetings to discuss this item.
Mayor Zelniker opened this item for public comments.
Douglas Hillman from Dolphin Place provided comments. He provided some examples of
things that can be done to mitigate tapping into the reserves. He stated that in his opinion, due
to the current economic situation, the reserves must be protected.
6. Proposed Resolution / Settinj4 The Proposed Millage Rate For Fiscal Year 2019-2020
A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF HIGHLAND
BEACH, FLORIDA, SETTING THE PROPOSED NOT TO EXCEED MILLAGE RATE
PURSUANT TO SECTION 200.065(2)(B), FLORIDA STATUTES, AND SETTING THE
DATE, TIME AND PLACE AT WHICH A PUBLIC HEARING WILL BE HELD TO
CONSIDER THE PROPOSED MILLAGE RATE AND TENTATIVE BUDGET.
Mavor Zelniker introduced this item.
Town Manager Labadie stated this item was discussed and the action is move to approve or
some variant thereof.
MOTION: ,Commissioner David moved to adopt the Proposed Resolution. Commissioner
Donaldson seconded the motion.
UPON ROLL CALL:
Commissioner David Yes
Commissioner Donaldson Yes
Mayor Zelniker Yes
Motion carried 3 to 0 vote.
Town Commission Special Minutes
Date: July 23, 2019
7. ADJOURNMENT
Page 5 of 5
There being no further business, Mayor Zelniker called for a motion to adjourn the meeting
at 12:39 PM.
APPROVED at September 19, 2019 Regular Meeting.
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Lanelda Gaskins, MMCI Date
Town Clerk