2007.09.04_TC_Minutes_Special
TOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
SPECIAL BUDGET PUBLIC HEARING
Tuesday, September 4, 2007 5:01 P.M
Mayor Harold R. Hagelmann called the Special Budget Public Hearing to order in
Commission Chambers at 5:01 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; Police Chief Carlo Angelillo; and Finance Director Stan Novak.
1. READING OF DRAFT BUDGET RESOLUTIONS
The Town Clerk read Draft Resolution No. 07-12 R ? Adoption of Final Millage Rate and
Draft Resolution No. 07-13 R ? Adoption of 2007/2008 Budget by title only.
Town Manager Sugerman ? Stated the proposed millage rate in the draft resolutions is the
proposed roll-back rate established by the Town Commission. A chart entitled ?Preliminary
Millage Calculation ? FY 07/08 Various Scenarios? was distributed.
Column 1 ? 9% State Mandated Reduction ? Gen. Operating Millage ? 3.3412; plus debt
service of 0.4268; will give a Total Reserve for Contingency of $468,154.
Column 5 - Gen. Operating Millage ? 3.6717; plus debt service of 0.4268; will give a Total
Reserve for Contingency of $1,183,340
Columns 2, 3 & 4 are increments of these numbers.
The resolutions were written using the maximum rate. The Commission could vote to lower
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the millage rate either today or at the final hearing on the 25. If you go lower today, you
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cannot increase it on the 25. Column 1 can be voted by the approval of 3 out of 5 members.
All other scenarios will require an approval vote of 4 out of 5 to adopt.
Town Commission Special Budget He ring
September 4, 2007 Page 2 of 4
Commissioner Newill ? The Property Appraiser has already raised the value of the property
by 3%, no one will receive a 9% reduction in their taxes.
Manager Sugerman distributed a report identified as ?Analysis of Reserve for Contingency
Account General Fund,? stating that Commissioner Newill had requested this information.
The analysis identifies how the town has spent the contingency of the General Fund over the
past ten years. The next report is identified as ?Table E -Water System Rate Alternatives.?
Every other year the R.O. Plant expansion and reserves has spent less than what was
budgeted.
Vice Mayor Asselta ? What is budgeted for hurricane losses? Reply ? Nothing is budgeted
for hurricane losses. What is the deductible for hurricane losses? Reply - $25,000 per
occurrence. Are there sufficient reserves that, down the line, the water plant will pay 100%
for itself?
Manager Sugerman ? Column 1-Table E shows the water system fund deficit of $485,264
covered by the General Fund. Alternatives show what happens when the General Fund funds
the water rates. Do you want to use Contingency Funds to reimburse water?
Commissioner Newill ? Compromise by infusing $200,000 into water rates. Maybe next
year we will not have to fund them at all. If we sell the property, we can infuse the money
into the loan and reduce costs.
Vice Mayor Asselta ? Is $200,000 livable? State mandates that the water system be
independent from the municipality. We are talking about a two-year period before the
market comes back.
Manager Sugerman ? The Town Attorney and I have worked up an advertisement for the sale
of the surplus land. Online with the New York Times will be approximately $350.00. Zoie
is working to get it advertised on the website. Commissioner Trinley ? How long will the
advertisement run? Reply ? Twice.
MOTION:
Commissioner Newillmoved to establish a millage rate of 3.7680 mils (3.3412
general operating and 0.4268 debt service) with a Total Reserve for Contingency of
$468,154; seconded by Mayor Hagelmann.
DISCUSSION:
Commissioner Zwick - I am a strong supporter of insurance. We are self insured, and need
the contingency monies. Would rather have the dollars on hand then run short during a
disaster.
Commissioner Newill ? People have the tendency to look out and say this is a rich town.
Retirees make up the biggest number of residents. These people need help with their taxes.
Vice Mayor Asselta ? The savings using that millage rate will only be about $130.00 a year.
Town Commission Special Budget He ring
September 4, 2007 Page 3 of 4
The trend is down in assessed value. We have stayed at 4 mills for 12 years. Still have one of
the most favorable millage rates in Palm Beach County. We need to protect the values of all the
homeowners.
ROLL CALL
:
Commissioner Newill- Yes
Commissioner Trinley - No
Commissioner Zwick - No
Vice Mayor Asselta - No
Mayor Hagelmann - Yes
MOTION FAILED ? VOTE 2-3
MOTION:
Commissioner Zwickmoved to establish a millage rate of 3.9500 mils (3.5232
general operating and 0.4268 debt service) with a Total Reserve for Contingency of
$861,993; seconded by Vice Mayor Asselta.
ROLL CALL:
Commissioner Zwick - Yes
Commissioner Newill - No
Commissioner Trinley - Yes
Vice Mayor Asselta - Yes
Mayor Hagelmann - Yes
MOTION PASSED ? VOTE 4-1
?
Town Manager SugermanWill create a new resolution for the final Budget Hearing on
September 25, 2007. At that meeting you can vote to go lower, but cannot vote to go any
higher. The second resolution adopting the final budget will be recalculated changing the
numbers due to the decrease in the millage rate. Any further changes to the budget document
need to be known tonight so that the budget can be corrected. The next meeting scheduled
for September 25, 2007 at 5:01 P.M. will be the Final Budget meeting.
2.PUBLIC COMMENTS
?
None
3) ADJOURNMENT
Adjournment:
There being no further business to come before the Commission at this time,
MOTION
a was made by Commissioner Zwick and seconded by Commissioner Newill to
adjourn at 6:00 P.M.
Town Commission Special Budget He ring
September 4, 2007 Page 4 of 4
APPROVE:
__________________________________________
Harold R. Hagelmann
__________________________________________
Joseph J. Asselta, Vice Mayor
__________________________________________
Miriam S. Zwick, Commissioner
__________________________________________
Jim Newill, CPA, Commissioner
_________________________________________
Doris M. Trinley, Commissioner
Attest:
_____________________________
Date: ____________________