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HomeMy Public PortalAbout1993-08-30 Workshop Meeting20 COUNCIL MINUTES BUDGET WORKSHOP MEETING - AUGUST 30, 1993 A Budget Workshop meeting of the Bal Harbour Village Council was held on Monday, August 30, 1993, in the Council Chamber at Bal Harbour Village Hall. The meeting was called to order at 4:05 p.m. by Mayor Stern. The roll was called and those present were: Also present: Mayor Estelle Stern Assistant Mayor Matthew B. Blank Councilman James E. Boggess Councilman Andrew R. Hirschl Carole Sherouse Morris, Village Manager Jeanette Horton, Village Clerk Richard J. Weiss, Village Attorney Absent: Councilman Sol M. Taplin As a quorum was determined to be present, th4 meeting commenced. Mayor Stern stated the purpose of the workshop meeting was to review the proposed Budget for fiscal year 1993-94. 2. Fiscal Year 1993/94 Proposed Budget: Mrs. Morris explained she has revised the General Fund Budget according to the recommendations of the Budget Committee. She further stated these recommendations have been carried through to the Water and Sewer Budgets. Mrs. Morris distributed to the Council copies of the Water and Sewer study she just received from the Village's engineers. She continued to explain the .> current water rate is $1.50 per 1000 gallons, and the projected rate is $1.76 per 1000 gallons, if no contribution is made from fund balance. She further stated that with a contribution from fund balance of $133,764; the water rate would remain constant at $1.50 per 1000 gallons. Mrs. Morris explained the current sewer rate is $1.33 per 1000 gallons, and the projected rate is $1.59 per 1000 gallons. She further stated with a contribution from fund balance of $109,851 the sewer rate would remain constant at $1.33 per 1000 gallons. Mrs. Morris stated with using $133,764 from Fund Balance, the Water Fund balance would be approximately $530,000. She further explained this is the minimum level the engineers would recommend. She continued to explain in regards to the Sewer Fund with using $109,951, the Sewer Fund balance would be approximately 1 million dollars. Mrs. Morris advised the Council that for the first time Metro Dade has given the Village a wet and dry rate. Therefore both the water and sewer rates will vary according to the time of year. She 21 further stated that Metro Dade is currently involved with legal proceedings with both the State and EPA. She continued to explain these proceedings are relative to the sewer system in Dade County. She further stated relative to the sewer department, the Village may see more rate increases in the future. Councilman Boggess stated he would not be in favor of using funds from fund balances to meet current operating expenses. He further stated that the balances are there for unexpected expenses for capital improvements. He continued by explaining even though there is no immediate problem with sewer or water lines, a problem could arise at any time. Councilman Boggess questioned Mrs. Morris on how she would handle such a problem. Would the funds come from the current operating budget, fund balance or a loan. Mrs. Morris replied that in the operating budget for next year she has provided for sufficient infrastructure projects. She further explained what these projects are, and that a Sinking Fund has been started in the Water Fund relative to Collins Avenue. She continued` to explain if major failure occurred, funds could be borrowed from the General Fund or a loan be taken out from local banks. Councilman Blank referred to the water main break on Collins Avenue and report received by Ductal Pipe and Research Association. He further stated the report estimated the replacement cost to be $300,000, therefore he questioned the dollar amount that will establish a Sinking Fund. Mrs. Morris pointed out that the recommendation was to begin establishing a Sinking "Fund at the levels of $60,000 to $100,000 per year. She further explained she had originally proposed $100,000 for the fund, but the Budget Committee requested that number be reduced to $60,000. Mrs. Morris explained that the report was only based on Collins Avenue, but every line in the Village is almost 50 years old.. Councilman Boggess questioned the cost to replace all the water lines in the Village. Mrs. Morris replied approximately a few million dollars. Councilman Boggess stated therefore they should be looking at a Sinking Fund of 1.5 Million to 2 Million dollars and not $300,000. Mayor Stern questioned how the difference between $60,000 and $100,000 Sinking Fund would effect ad valorem tax. Mrs. Morris stated there would be no effect on the ad valorem, but could increase the water rate to approximately $1.60 per 1000 gallons. She further stated another alternative would be to take an additional $40,000 out of fund balance, which would leave fund balance at approximately $490,000 instead of $530,000. Mr. Singh, Budget Committee member, stated that the reason fund balances are high is that the taxes were more than what was spent. He further stated that the Village residents were taxed more than required. Mayor Stern questioned if fund balances are not maintained, with no new construction or revenue, how would the millage rate be affected Budget Workshop Meeting 8/30/93 2 in one or two years. Mrs. Morris explained that the General Fund is one issue and the Water and Sewer Funds are Enterprise Funds, as such are funded by rates. She further stated that these funds are not effected by the General Fund balance. She continued to explain a loan can be made from the General Fund to the Enterprise Funds, but cannot be permanently transferred. Mayor Stern stated it would be poor judgement to have a very low millage rate, and then next year increase that millage rate. Mrs. Tumpson, Budget Committee member, explained the Committee reviewed this subject intensively. She stated the consensus of the Committee was they could reduce the Water department Sinking Fund to $60,000. She further stated the Millage rate proposed does give a little edge. Mrs. Morris recapped for, the Council the proposed Millage rate as 2.64 Mills. She further stated with the contributions that are proposed from fund balances, there would be no increase in water or sewer rates. She continued to explain this would mean the Village absorbing the increases from Miami Dade Water and Sewer^,and Metro Dade. Mr. Singh stated he would recommend increasing the water rate, but not at the maximum. Councilman Hirschl stated since the Village has experienced water main failures he is very concerned. He further stated he cannot understand underwriting the actual cost increase given to the Village by Dade County. He continued to state the Council has a duty to support the funds as high as possible to maintain the high quality of living that Bal Harbour now enjoys. Therefore, in his opinion should not subsidize the funds from fund balances. Mrs. Morris explained if the Water Fund balance is left at $530,000 there are a number of uncertainties that may arise that would be funded out of fund balance. She explained the possible uncertainties, such as the water tank and the pump station, and replacement of a pump. Mrs. Morris suggested if concerned about fund balances, increase the water rate to $1.76, but subsidize the sewer rate. Mrs. Morris stated as to the Water Fund they could take $133,761 from fund balance and designate as main replacement, increasing the rate to $1.76 per 1000 gallons. She continued to explain as to the Sewer Fund, leave the existing rate and use contribution from fund balance. Councilman Boggess stated he would like to see Sinking Funds built up. He continued to state he would not like to see a false tax relief this year that would have to be made up another year. Discussion ensued as to storm sewers in the Village and setting up a Sinking Fund for both Water and Sewer. Mrs. Morris explained her meeting with the Village engineers, and the decision to finance storm drains from the General Fund. Budget Workshop Meeting 8/30/93 3 2,q Assistant Mayor Blank referred to Code 519 of the Budget document. He questioned why budget another $76,000 after not using the same amount that was budgeted last year. He further explained this is the type of items the Budget Committee looked into, and was able to propose a Millage of 2.64. Mr. Lodes, Budget Committee member, stated his concern was the large fund balances. He further stated he felt the fund balances were too large. Therefore he agreed to the proposed contribution from fund balances be made to lower the millage rate. Mr. Singh stated they should only fund balance in Water Fund for capital improvements. Mayor Stern stated the $udget Committee will be meeting September 7th to review the Water and Sewer proposed budgets., 3. Other Business: Mrs. Morris requested the Council's input on how the wish to proceed relative to zoning issues. She further explained research has been done relative to concerns that are at present in the Code that need to be addressed. She continued to explain if the Council desired a workshop meeting could be scheduled to discuss the problems. It was the consensus of the Council to wait until October to schedule a workshop meeting. Councilman Boggess questioned the Budget document, page 15, what salaries are charged to Tourism. Mrs. Morris replied two or three beach maintenance men. Councilman Boggess then questioned the item for capital improvements for $27,500. Mrs. Morris explained this is for globes for the pedestrian fixtures on Collins Avenue. Mrs. Morris stated they can delete, and reserve the funds for the second phase of the landscape program. It was the consensus of the Council to delete the capital improvement item of $27,500. Discussion ensued as to the line items that where reclassified under advertising. Mayor Stern questioned the balance of the Beach Restoration Fund. Mrs. Morris replied approximately 3 million dollars. Discussion ensued as to capping this fund. The consensus of the Council was to cap the Beach Restoration Fund at 3 million dollars after this year. Mrs. Morris reported that the Army Corp of Engineers will be dredging Haulover Inlet, and Bal Harbour will be getting a portion of the sand. Mrs. Morris reported the status of FEMA reimbursement for funds spent on the jogging path. She further stated she will be meeting with the representative from FEMA next week. She explained that Congressman Shaw had offered to have his aide accompany her to this meeting. Budget Workshop Meeting 8/30/93 4 24 4. Adjourn: There being no further business to come before the Council, a motion was offered by Councilman Hirschl and seconded by Councilman Boggess. The motion carried (4-0), with Councilman Taplin absent, and the meeting adjourned at 5:15 p.m. Mayor stelle Stern Attest: eanette Horton, CMC/AAE Village Clerk /jh Budget Workshop Meeting 8/30/93 5