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2020.07.09_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH TOWN VIRTUAL FINANCIAL ADVISORY r BOARD REGULAR MEETING MINUTES 0 Town Hall / Commission Chambers Date: July 09, 2020 3614 South Ocean Boulevard Time: 2:00 PM Highland Beach, Florida 33487 1. CALL TO ORDER Chairperson Stern called the meeting to order at 2:01 P.M. 2. PRESENT UPON ROLL CALL Member Ronald Reame Member Richard Greenwald Member Natasha Moore Neil Eisenband entered the meeting at 2:08 P.M. Member Edward B. Kornfeld Chairperson David Stern Town Clerk Lanelda Gaskins Administrative Support Specialist Ganelle Thompson ABSENT Member John Stump 3. PLEDGE OF ALLEGIANCE The Board Members led the Pledge of Allegiance. 4. PUBLIC COMMENT There were no public comments. 5. APPROVAL OF MINUTES A. October 24, 2019 B. January 16, 2020 Chairperson Stern asked the Board if there were any corrections to the minutes of October 24, 2019 or January 16, 2020. Hearing none, he asked for a motion to approve the minutes as presented. Virtual Financial Advisory Board Regular Meeting Minutes Date: July 09, 2020 Page 2 of 6 MOTION: Member Greenwald moved to approve the October 24, 2019 and January 16, 2020 Regular Minutes as presented. Member Reame seconded the motion, which passed (5-0) unanimously. 6. UNFINISHED BUSINESS C. None. 7. NEW BUSINESS D. Welcome New Member Ron Reame Chairperson Stern welcomed Member Reame to the Financial Advisory Board. E. Nomination of Chairperson Chairperson Stern introduced this item. MOTION: Member Kornfeld moved to nominate Chairperson Stern as the Chairperson for one year ending July 9, 2021. Member Greenwald seconded the motion, which passed (5-0) unanimously F. Nomination of Vice Chairperson Chairperson Stern introduced this item. MOTION: Chairperson Stern moved to nominate Member Moore as the Vice Chairperson for one year ending July 9, 2021. Member Reame seconded the motion, which passed (5-0) unanimously. G. Budget Presentation for upcoming Fiscal Year 2020-2021 Chairperson Stern introduced this item. Finance Director Lalla referred the item to Town Manager Labadie. Town Manager Labadie introduced this item and presented a PowerPoint presentation of the Proposed FY 2021 Operating Budget. He gave an overview of the proposed budget highlighting the following: FY 2021 Budget Overview FY 2021 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 Virtual Financial Advisory Board Regular Meeting Minutes Date: July 09, 2020 Page 3 of 6 Building Special Service Revenue Fund Discretionary Sales Surtax Special Revenue Fund Water Enterprise Fund Town Manager Labadie proceeded to elaborate on the slight decrease in the millage rate proposed; slight reduction in debt service millage; additional taxes of 173,000 from growth in tax roll; the budget gap filled with fund balance in general fund; proposed uses of reserves in the amount of $208,325; increase in fire -rescue budget of approximately $313,000 (7% increase); CBA cost will not be known prior to determining Not -To — Exceed Millage Rate for FY 2021; the assumed healthcare insurance increase of 10%; and funding of capital projects such as continuation of crosswalks project and Town hall roof replacement. Chairperson Stern requested an explanation as to why there is a projected increase of seven percent as the increase has been around four percent in the past. Town Manager Labadie explained that the seven percent on this year's operating budget proposal was an estimated place holder based on the current rate cost escalators. Member Kornfeld commented on the status of the state of the Town's financial shape. He stated that although the Town is currently in good financial shape, there may be a change depending on the affect the pandemic has on the Towns finances. He also provided his opinion of each topic on the budget overview. He mentioned the increase of the healthcare increasing by ten percent stating that it is ok due to the fact that last year there was no increase. He also provided comments as it related to the fire- contract stating that the number could be higher depending on The City of Delray. With regard to the Town Hall roof he asked about a possible warranty on the roof. Town Manager Labadie explained that the roof currently on the building has been there for about 20 to 25 years. Member Greenwald provided remarks about capital projects. He stated that some of the capital projects are not listed on the budget overview and would like clarification that they would be discussed later on during the presentation. Town Manager Labadie explained that they would be discussed later on in the presentation. Mr. continued with the PowerPoint presentation and discussion the millage rate as well as the Town's current assessed value. He also discussed the general fund revenues as well as the general fund expenditures. Member Kornfeld provided additional information as it related to the general fund revenue and the use of the appropriate funds from the reserve. Finance Director Lalla discussed the appropriate funds from reserves from fiscal year 2019, 2020 and from 2021. He explained there would be no line item for addition to reserves as it is not a budget item but an audit item. Member Moore suggested the possibility of adding a line item for that item. Chairperson Stern asked how close the Town was to fully funding the disaster relief fund. He was advised that the Town is at that level and are at the cap underneath the Towns adopted fund balance Policy. Virtual Financial Advisory Board Regular Meeting Minutes Date: July 09, 2020 Page 4 of 6 Member Moore asked if the $212,000 -figure represented on the chart been adequate over time. She was advised that it is a standard amount. Member Reame asked about the Towns ranking compared to other municipalities in terms of financial strength, and was advised that Highland beach is one of the top five municipalities. Town Manager Labadie discussed the building special revenue fund and the projected numbers and also the ability for the building to retain self-sufficiency. He also discussed putting money into the building reserve fund. Member Kornfeld asked if the figures are down due to the impact of COVID. He asked about the year-end projection as well. He was advised by Finance Director Lalla that the town is expecting at least a 20 % drop off in sales tax revenue under fiscal year 20 budget. Town Manage Labadie provided comments as it related to the water enterprise as well as the televised sanitary sewer system. Discussion ensued regarding the change -rate over time on the loans the town currently has in debt service. Additional questions were asked about the debt. Finance Director Lalla advised that all of the debt is related to the water plant. Town Manager Labadie discussed many of the capital projects the town has scheduled for fiscal year 2021. He also went on to discuss the many initiatives for 2021. This included the crosswalk project, sanitary sewer system and implementation of ERP System. Member Kornfeld asked about the cost of BS&A and was advised by Finance Director Lalla that the cost is $125,000 with an annual cost of $9,000. Member Greenwald asked for clarification on the meeting schedule as the Financial advisory board did not have a meeting scheduled prior to the final adoption of the budget. Chairperson Stern stated that he would like a meeting scheduled prior to adoption. Town Manager Labadie suggested the Financial Advisory Board schedule their next meeting during the optional budget workshop meeting of August 20, 2020. H. Comprehensive Annual Financial Report for Fiscal Year ending September 30, 2019 Chairperson Stern introduced this item. Finance Director Lalla discussed the 2019 CAFR and stated that the Town is in great financial position and that the audit from Ground Associates was clean. There was an increase in assets eating liabilities, unassigned fund balance within the Towns general fund that also increased. He also discussed the 1.97 million for budget stabilization and the just under a million in disaster recovery funds. Member Kornfeld asked about specific audit adjustments brought to the attention of the Town. He was advised by Finance Director Lalla that there were no nonstandard audit Virtual Financial Advisory Board Regular Meeting Minutes Date: July 09, 2020 Page 5 of 6 adjustments. He also asked about the ability to receive the year end audit signoff within a three-month period as opposed to the 6 -month period the town currently receives it. He was advised that the upcoming year should yield a faster turnaround time for the report. I. Finance Department Updates Chairperson Stern asked for an update on the debt service percentage that the town is currently paying. Finance Director Lalla advised that he will be sending an email that summarized the debt to all of the financial advisory board (FAB) members. He provided information on the interest rates of the loans that the Town currently holds. 8. BOARD MEMBERS REPORT Member Kornfeld announced the conclusion of his 6 -year term as a Board Member on the Financial Advisory Board. 9. ANNOUNCEMENTS Chairperson Stern read the announcements. A. Virtual Town Commission Meeting July 7, 2020 - 1:30 P.M. B. Code Enforcement Board Meeting July 14, 2020 - 2:00 P.M. C. Virtual Town Commission Meeting July 21, 2020 - 1:30 P.M. D. Virtual Financial Advisory Board Organizational Meeting July 23, 2020 - 3:00 P.M. (Tentative). This meeting has been removed and a prospected meeting of August 20, 2020 -3:00 P.M. has been added pending a quorum. Member Reame asked about the involvement the Financial Advisory Board will have towards the fire contract. He was advised by Town Manager Labadie that there will be other subsequent meeting of the FAB to discuss other contracts for review and opinion. He stated that when the information becomes available the Town will get the board members copies of the information. Virtual Financial Advisory Board Regular Meeting Minutes Date: July 09, 2020 Page 6 of 6 10. ADJOURNMENT There being no further business, Chairperson Stern adjourned the meeting at 3:52 P.M. Approved at the August 20, 2020 Virtual Financial Ad ory Regular Board T"� ,1 i.! ,f •. David Stern, Chairperson ATTEST: Transcribed by Ganelle Thompson, Administrative Support Specialist 9 a9 aoao Ga e e Thom on f Date istrativL4'Support Specialist Disclaimer: Effective May 19, 2020, per Resolution No. 20-008, all meeting minutes are transcribed as a brief summary reflecting the event of this meeting.