2007.07.31_TC_Minutes_Special
TOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
SPECIAL MEETING
Tuesday, July 31, 2007 3:30 P.M__
Mayor Harold R. Hagelmann called the Special Meeting to order in Commission
Chambers at 3:30 P.M.
CALL TO ORDER:
Roll Call
: Members present: Mayor Harold R. Hagelmann; Vice Mayor Joseph J.
Asselta; Commissioner Miriam S. Zwick; Commissioner Jim Newill, CPA;
Commissioner Doris M. Trinley; Town Attorney Thomas E. Sliney; Town Manager Dale
S. Sugerman; Town Clerk Beverly M. Brown; Finance Director Stan Novak; and
members of the public.
.
1. Set Tentative Millage rate for 2007-2008 Fiscal Year
Town Manager Sugerman
stated that the budget is based on the assumption that only
96% of the taxes will be collected because of the 4% discount allowed for early payment.
Once the tentative millage rate is set, the Commission can lower the adopted tax rate, but
cannot increase it. We have two budget workshops scheduled in the upcoming weeks,
and those will make an impact on the amount of revenue required to fund the budget for
next year.
Mr. Sugerman distributed a chart entitled ?Maximum Millage Levy Calculation? and
gave an explanation of the columns: Column ?A? ? Current Fiscal Year; Column?s ?B,
C, and D? ? alternatives available. (Chart included as part of these minutes)
Column A- line #1 ? value of property in Highland Beach; line # 2 ? final gross taxable
value; line #4 ? voter approved debt services on the water plant; line #5 ? total millage
rate set last year; line #6 amount raised when applying 4 mills; line #7 ? 4% discount
received from paying taxes early; line #8 ? Actual income received.
Column B ? Proposed budget for 2007-2008 applying the 9% Rolled-Back Rate. Note ?
taxable value dropped $50 million, this year.
Town Commission Special Meeting Minutes
July 31, 2007 Page 2 of 4
Column C -Alternative allowed by legislature ? Taxes collected if we stay with 4 mills.
This would require 2/3?s vote to override state mandate.
Column D ? Rolled back rate. The Town is required to publish the roll back rate. To keep
revenues neutral, you would have to reduce the millage. Another option is to use the roll
back rate and force the millage rate up.
The Town Commission has to set a tentative maximum rate at this meeting.
Vice Mayor Asselta ? The taxable value is really an estimate. If the assessed values keep
going down, the amount collected would go down. Reply ? Yes. There is no guarantee
that this is the revenue that we will receive? Reply ? That is correct. Do we need to go
on the conservative side to protect the services that our residents have learned to expect?
What are they getting for their money? Feel I would be doing wrong not protecting the
values of the residents.
Commissioner Newill ? Highland Beach will not be unique if it cuts services. Other
cities in the area are doing the same thing. The January vote could hurt us even more.
The difference between 3.7680 and 4 mills is $502,000. Residents in Highland Beach are
no different that other Palm Beach County cities.
Vice Mayor Asselta ? Our biggest expense occurred before any of us were elected. We
need to replace this building and the water lines. We are not extravagant, have a bare
bones budget.
MOTION
: Vice Mayor Asselta moved to adopt Plan #C ? Millage Rate of 4 Mills as
the tentative 2007-2008 Fiscal Year Budget, seconded by Mayor Hagelmann.
Discussion ? Commissioner Trinley ? Why don?t we go with Plan D - 4.0985 Mills?
This is a tentative budget; the final budget can only be reduced not increased. Manager
Sugerman - This is a tentative rate. The final millage rate will be adopted in September.
Commission needs a 2/3?s vote to pass.
ROLL CALL:
Vice Mayor Asselta - Yes
Commissioner Trinley - No
Commissioner Newill - No
Commissioner Zwick - Yes
Mayor Hagelmann - Yes
Motion Failed with a 3-2 Vote
rd
(Need a 2/3 vote for adoption or 4 out of 5)
Town Commission Special Meeting Minutes
July 31, 2007 Page 3 of 4
MOTION
: - Commissioner Newill moved to adopt Plan #B ? Millage Rate of 3.7680 as
the tentative 2007-2008 Fiscal Year Budget, seconded by Commissioner Trinley.
ROLL CALL:
Commissioner Newill - Yes
Commissioner Trinley - Yes
Commissioner Zwick - No
Vice Mayor Asselta - No
Mayor Hagelmann - No
Motion Failed with a 3-2 Vote
rd
(Need a 2/3 vote for adoption or 4 out of 5)
MOTION:
Commissioner Zwick moved to adopt Plan #D ? Millage Rate of 4.0985 as
the tentative 2007-2008 Fiscal year Budget, seconded by Vice Mayor Asselta.
ROLL CALL:
Commissioner Zwick - Yes
Commissioner Trinley - Yes
Commissioner Newill - No
Vice Mayor Asselta - Yes
Mayor Hagelmann - Yes
Motion passed with a 4-1 Vote
2.PUBLIC COMMENTS
Joe Yucht ? Boca Highlands ? Have been studying this chart. The debt service seems to
be the water plant. Where is the debt service for the library and the other improvements?
Why are you setting the millage rate when you have not had any budget hearings?
Manager Sugerman ? In 2002, the voters voted to pay $8 million dollars for
improvements with tax dollars and to put it on the tax bill. The balance of $12 million is
being paid by the water rate bill payers.
Vice Mayor Asselta ? In the future, it would behoove us to have all improvements
approved by voter bond issue.
Joe Yucht- The proposed budget does not reduce services or curtail any future plans
Reply ? That is correct.
Town Commission Special Meeting Minutes
July 31, 2007 Page 4 of 4
3) ADJOURNMENT
Adjournment:
There being no further business to come before the Commission at this
MOTION
time, a was made by Commissioner Newill and seconded by Commissioner
Zwick to adjourn at 4:45 P.M.
APPROVE:
__________________________________________
Harold R. Hagelmann
__________________________________________
Joseph J. Asselta, Vice Mayor
__________________________________________
Miriam S. Zwick, Commissioner
__________________________________________
Jim Newill, CPA, Commissioner
_________________________________________
Doris M. Trinley, Commissioner
Attest:
_____________________________
Date: ____________________