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
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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
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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
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Budget Hearing September 14, 1993 7