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HomeMy Public PortalAbout1993-09-14 Budget HearingZ5 COUNCIL MINUTES BUDGET HEARING - SEPTEMBER 14, 1993 A Budget Hearing meeting of the Bal Harbour Village Council was held on Tuesday, September 14, 1993, in the Council Chamber at Bal Harbour Village Hall. The meeting was called to order by Assistant Mayor Blank at 5:20 p.m.. The roll was called and those present were: Assistant Mayor Matthew B. Blank Councilman James E. Boggess Councilman Andrew R. Hirschi Also present: Carole Sherouse Morris, Village Manager Jeanette Horton, Village Clerk Gilberto Pastoriza, Deputy Village Attorney Absent: Mayor Estelle Stern Councilman Sol M. Taplin As a quorum was determined to be present, the meeting commenced. 2. Discussion of Proposed Tax Miilage over the Rolled -Back Millage and Discussion of the Tentative Budgets: Assistant Mayor Blank thanked the Budget Committee for their work on the Budget. Mrs. Morris stated the current millage rate is 3.36 rills, the proposed rolled -back millage rate is 3.21 mills. She, further stated the original Budget was proposed at 2.94 mills, but was then reduced to 2.91 mills. She continued to explain the Budgets before the Council today are on a proposed millage rate of 2.64 mills. Mrs. Morris stated sufficient changes have been made to the utility rates. She explained the sewer rate would be remaining constant at $1.33 per 1000 gallons, and the Water rate at $1.62 per 1000 gallons. Assistant Mayor Blank stated that the proposed millage rate would be reducing the tax by .72 cents per thousand. He further stated every other community has increased their tax rate. Mrs. Morris stated that the proposed millage rate is 82.24% of the rolled -back millage rate. Councilman Hirschl questioned if the proposed rate in the Sewer and Water Funds includes funding from the reserves to underwrite part of the costs. Mrs. Morris replied based on the Budget Committee's recommendation, the Sewer Fund does provide for contribution from the Fund Balance in the amount of $109,951. She further stated, as to the Water Fund, the Budget Committee recommended that Capital costs be split between rates and the Fund Balance. She continued to explain this would mean a contribution from Fund Balance of $72,500. Assistant Mayor Blank questioned what the utility rates were before the final budget was proposed. Mrs. Morris replied if no Fund Balance contribution the Water rate was $1.76 per 1000 gallons, and the Sewer rate was $1.99 per 1000 gallons. Councilman Hirschl stated that at the Budget Workshop the Council's position was that the increase cost be passed on to the consumer. He further stated this position was due to the engineering study. Which indicated the Village, in the future, would be facing replacement of the entire Sewer system, at the approximate cost of three million dollars. He further stated it was his understanding with the increase cost being passed on to the consumer, there by acknowledging the fact that a Sinking Fund must be established for the replacement of the sewer system. Mrs. Morris stated that before the Council is the Budget Committee recommendation. She further stated if the Council does not object, to proceed with adopting the millage rate in the General Fund, and then discussion Water Fund; Sanitary Sewer Fund and Department of Tourism. The Council had no objection, 3. Adoption of the Tentative Millage Rate: Mrs. Morris explained the tentative millage rate is 2.64 mills. Assistant Mayor Blank opened a Public Hearing for comments. Doctor Stephen Scheinman, 234 Bal Cross Drive, questioned his assessed valuation. Mrs. Morris replied the assessed valuation is done by the Dade County Property Appraiser. She further stated that the Village only votes on the millage rate. Mr. Scheinman then questioned when Amendment 10 will be implemented. The Deputy Village Attorney replied he would look into Amendment 10 for the Village. Mrs. Morris advised Mr. Scheinman to follow the direction on his notice and file a protest with the Property Appraiser office. Councilman Boggess pointed out that Bal Harbour taxes are only 11 to 12% of the tota;1 tax bill. He further stated that Bal Harbour has lowered their° budget, but the County keeps raising their budgets. There being no further comments, the Public Hearing was closed. The Resolution was read, by title, by the Village Clerk providing for the adoption of a tentative millage rate of 2.64 mills. A motion was offered by Councilman Hirschl and seconded by Councilman Boggess to adopt this Resolution. The motion carried with the vote as follows: Assistant Mayor Blank aye; Councilman Boggess aye; Councilman Hirschl aye; Mayor Stern and Councilman Taplin absent, thus becoming RESOLUTION NO. 486 RESOLUTION OF BAL HARBOUR VILLAGE ADOPTING A TENTATIVE MILLAGE RATE FOR FISCAL YEAR 1993/94; PROVIDING FOR AN EFFECTIVE DATE. Budget Hearing September 14, 1993 2 27 4. First Reading Ordinances/Public Hearing: Tentative Budgets General Fund Mrs. Morris stated that the General Fund budget is the largest of the Village. She further explained the budget is essential the same as discussed at the workshop on August 30, 1993. The Ordinance was read, by title, by the Village Clerk adopting a General Fund Budget for the fiscal year 1993/94. Assistant Mayor Blank then opened a Public Hearing for comments. There being none, the Public Hearing was closed. A motion was offered by Councilman Boggess and seconded by Councilman Hirschl to enact this Ordinance. The motion carried with the vote as follows:- Assistant Mayor Blank aye; Councilman Boggess aye; Councilman Hirschl aye; Mayor Stern and Councilman Taplin absent, thus becoming ORDINANCE NO. 385 ORDINANCE OF BAL HARBOUR VILLAGE ADOPTING A BUDGET FOR THE PERIOD OF OCTOBER 1, 1993 TO SEPTEMBER 30, 1994 IN THE AMOUNT OF $3,937,357; AUTHORIZING EXPENDITURES; ESTABLISHING AN EFFECTIVE DATE. Water Department Mrs. Morris distributed to the Council the amended Water Department Ordinance, which reflects the Budget Committee's recommendations. She further explained this budget will apply for all water fund operations that were previously discussed. She continued to explain the Budget Committee's recommendation was Capital Improvements, which is $145,000, be funded one-half by Fund Balance and one-half by Water rates. Mrs. Morris explained that is the difference in water rate of $1.76 per 1000 gallon and $1.62 per 1000 gallons. She further stated that the present rate is $1.50 per 1000 gallons, Assistant Mayor Blank questioned if the rate of $1.62 per 1000 gallons would be adequate. Mrs. Morris replied that it appears, with the contribution from the Fund Balance, this rate would cover the needs for the future year. Councilman Boggess questioned how the Village will build up the Capital Improvement Fund, if funds are being taken out of the Fund Balance. Mrs. Morris stated the projected Fund Balance for year end is approximately $600,000. Councilman Hirschl questioned why have a contribution from Fund Balance knowing that the Village must collect funds to underwrite the costs for repair and replacement. He further stated why underwrite the cost of the increase, which the Village is not responsible for. Councilman Boggess stated that the consensus of the Council was not to do what has been proposed. Budget Hearing September 14, 1993 3 18 Mrs. Morris stated that according to the direction of the Council, the Ordinance that was in the agenda is based on no contribution from Fund Balance. She further stated the amended Ordinance, which she distributed, does contain a contribution from Fund Balance. Therefore, can proceed with the original Ordinance or anywhere in between. Mr. Singh, a member of the Budget Committee, stated the Committee felt that the monies in Fund Balance represents income over the expenses. Therefore, that is depreciation of the lines over the years. He further stated the Capital Improvements each year, should be matched with funds from the Fund Balance. Mrs. Morris explained the increase received from Dade County is in the excess of 22%. She further stated the rates are based on dry and wet seasons. Councilman Hirschl stated the public should understand the increases are from Dade County, and not from the Village government. Assistant Mayor Blank stated that with a large Fund Balance, he cannot understand why the citizens should pay the full increase. He further stated he feels this is very unfair. Councilman Hirschl stated that the Council is here to protect the integrity of this Village. He further stated that with two serious failures in the past two years that something must be done. Therefore, to deplete the reserves in order to underwrite the increase from. Dade County only looks good on paper. Mrs. Morris stated that the focus of this meeting is the total budget amount. She further stated the meeting of September 21, 1993, is when the Council will adopt a rate Resolution and have a rate hearing. Councilman Boggess questioned if with the $1.62 rate, would reserve funds be used for operating. Mrs. Morris replied that $72,500 would be from reserves to be applied to the cost of Capital Improvements. She continued to explain the different projects that are proposed in the capital outlay in the 1993/94 Budget. Mrs. Morris stated using funds from the reserve does have the net effect on reducing the Water rate. The Ordinance was read, by title, by the Village Clerk adopting a budget for the Water Department for the fiscal year 1993/94. Assistant Mayor Blank then opened a Public Hearing for comments. There being none, the Public Hearing was closed. A motion was offered by Councilman Hirschl and seconded by Councilman Boggess to enact this Ordinance. The motion carried with the vote as follows: Assistant Mayor Blank aye; Councilman Boggess aye; Councilman Hirschl aye; Mayor Sterna and Councilman Taplin absent, thus becoming Budget Hearing September 14, 1993 4 29 ORDINANCE NO. 386 ORDINANCE OF BAL HARBOUR VILLAGE ADOPTING A BUDGET FOR THE WATER DEPARTMENT FOR THE PERIOD OF OCTOBER 1, 1993 TO SEPTEMBER 30, 1993 IN THE AMOUNT OF $903,264; AUTHORIZING EXPENDITURES; ESTABLISHING AN EFFECTIVE DATE. Sanitary Sewer Department Mrs. Morris distributed to the Council an amended Budget, which reflects the Budget Committee's recommendations. She further explained the Sanitary Sewer Department's projected Fund Balance, at the end of the current year is 1.1 million dollars. She continued to explain the amended budget calls for a contribution from Fund Balance of $103,490. Which would allow the Village to keep the rate constant at $1.33 per 1000 gallons. Councilman Boggess stated the infrastructure is vital to the community. Mrs. Morris explained this Budget does` provide for repairs to the sewer system. Councilman Boggess stated he does not approve of using funds from the reserve, but would go along just this once. The Ordinance was read, by title, by the Village Clerk adopting a Budget for the Sanitary Sewer Department for the fiscal year 1993/94. Assistant Mayor Blank opened a Public Hearing for comments. There being none, the Public Hearing was closed. A motion was offered by Assistant Mayor Blank and seconded by Councilman Hirschl to enact this Ordinance. The motion carried with the vote as follows: Assistant Mayor Blank aye; Councilman Boggess aye; Councilman Hirschl aye; Mayor Stern and Councilman Taplin absent, thus becoming ORDINANCE NO. 387 ORDINANCE OF BAL; HARBOUR VILLAGE ADOPTING A BUDGET FOR THE SANITARY SEWER DEPARTMENT FOR THE PERIOD OF OCTOBER 1, 1993 TO SEPTEMBER 30, 1994; AUTHORIZING EXPENDITURES; ESTABLISHING AN EFFECTIVE DATE. Department of Tourism Mrs. Morris explained that the Village code does allow line item transfers to be made during a fiscal year. She further explained that the Resort Tax Committee is considering some changes. She continued to explain the Committee is recommending that the third cent, of the Resort Tax, be allocated toward media and tourism related activities. Councilman Hirschl stated it was the consensus of the Committee that the Manager explore, with some engineering firm, what the actual cost would be to renournish the beach. He further stated there is some feeling that the three million dollars may be Budget Hearing September 14, 1993 5 ,V excessive, and the code establishes a one million dollar fund. Councilman Hirschl questioned if the maintenance of Collins Avenue is included in the Department of Tourism Budget. Mrs. Morris replied at present these costs are paid out of the General Fund department 541, Streets and Roads. She then proceeded to give a breakdown as to the costs involved, as to manhours, plants, proration of operating supplies, maintenance of vehicles used, would amount to $162,000. Councilman Boggess stated that the Collins Avenue Landscaping project was done to make the Village more attractive to tourists. It was the consensus of the Council that all expenses to maintain the medians on Collins Avenue should be in the Department of Tourism budget. Mrs. Morris stated she will make the adjustment to provide for the maintenance costs to be paid out of the Department of Tourism. The Ordinance was read, -by title, by the Village Clerk adopting a budget for the Department of Tourism for the fiscal year 1993/94. Assistant Mayor Blank then opened a Public Hearing for comments. Mrs. Margie Shell, 9801 Collins Avenue, stated they should plant perennials instead of annuals in the Collins Avenue Medians. There being no further comments, the Public Hearing was closed. A motion was offered by Councilman Boggess and seconded by Assistant Mayor Blank to enact this Ordinance. The motion carried with the vote as follows: Assistant Mayor Blank aye; Councilman Boggess aye; Councilman Hirschl aye; Mayor Stern and Councilman Taplin absent, thus becoming ORDINANCE NO.388 ORDINANCE OF BAL HARBOUR VILLAGE ADOPTING A BUDGET FOR THE DEPARTMENT OF TOURISM FOR THE PERIOD OF OCTOBER 1, 1993 TO SEPTEMBER 30, 1994 IN THE AMOUNT OF $1,379,426; AUTHORIZING EXPENDITURES; ESTABLISHING AN EFFECTIVE DATE. 5. Announcement: Percentage, if any, by which the proposed Millage exceeds the Rolled -back Millage: Mrs. Morris announced that the proposed millage rate of 2.64 mills is 82.24% of the rolled -back millage rate. 6. Announcement: Next Budget Hearing date: Mrs. Morris announced that the next Budget Hearing will be September 21, 1993, at 5:15 p.m. 7. Other Business: None Budget Hearing September 14, 1993 6 8. Adjourn: There being no further business to come before the Council, a motion was offered by Councilman Boggess and seconded by Councilman Hirschl to adjourn. The motion carried (3-0), with Mayor Stern and Councilman Taplin absent, and the meeting adjourned at 6:30 p.m. Assistant Mayor Matthew B. Blank Attest: eanette Horton, CMC/AAE Village Clerk /jh Budget Hearing September 14, 1993 7