Loading...
HomeMy Public PortalAbout2001-09-11 Budget Hearing189 COUNCIL MINUTES FIRST BUDGET HEARING — SEPTEMBER 11. 2001 The First Budget Hearing of Bal Harbour Village was held on Tuesday, September 11, 2001, in the Council Chamber at Bal Harbour Village Hall. The meeting was called to order at 5:15 p.m. by Mayor Berlin. The roll was called and those present were: Also present: Mayor Howard J. Berlin Assistant Mayor Daniel Tantleff Councilman James E. Boggess Councilman Seymour Roth David Wolpin, Village Attorney Alfred J. Treppeda, Village Manager Jeanette Horton, Village Clerk Ellisa Horvath, Deputy Village Clerk Absent: Councilman Peg E. Gorson As a quorum was determined to be present, the meeting commenced. 4. PLEDGE OF ALLEGIANCES The Pledge of Allegiance was led by Assistant Chief Jay Smith. Mayor Berlin explained that he spoke at length with the Village Manager this morning to discuss whether the Council should proceed with this meeting, not knowing what the public turnout would be. He advised that obviously the events of today (Terrorist Attack) are of a magnitude which people cannot comprehend yet and everyone is thinking about that. Mayor Berlin felt that if the Council had the opportunity to continue to serve the community and keep this meeting, then that should be considered. So, he felt that the Council should go forth with this meeting. He feels that the Council has done its duty in having this meeting and that the second public hearing is still available for anyone wishing to speak about the budget. 1. ANNOUNCEMENTS Mrs. Horton announced that the Bal Harbour Village rolled -back millage rate is 2.97 mills. The proposed millage rate is 3.23 mills, which is 8.75% greater than the rolled -back rate. 4. DISCUSSION OF PROPOSED TAX MILLAGE RATE AND DISCUSSION OF PROPOSED BUDGETS: Assistant Mayor Tantleff discussed the tax increase. He advised that he will vote for the budget, but feels that the reason that there is a reserve is to use it when it is needed. Assistant Mayor Tantleff feels that the reserve should be used instead of increasing the taxes. Councilman Roth questioned if there is a reserve of $2 million. Mrs. Horton advised that it is shown in the audit that there is an undesignated fund balance of $2 million and a designated of over $1 million. She advised that the undesignated funds could be used, but then if there's ever an emergency (hurricane), the Village could be in trouble. Mrs. Horton explained that if houses were destroyed, then the assessed value would go down and the Village wouldn't be getting the revenue from ad valorem. Council Meeting — First Budget Hearing 09/1 1/0l 1 1zU Mr. Treppeda reminded the Council that funds are being used from the reserve. Mayor Berlin explained that this year the Village is taking approximately $350,000 of reserve, which is larger than the amount of money that the Village is increasing the millage rate. He advised that the net impact of the millage rate increase will be approximately $249,000. So, the majority of the amount of money needed to make up the deficit is coming out of the reserve. Mayor Berlin advised that the Village could take 100% out of the reserves, at an amount of almost $600,000. He reported that at that rate, the Village's reserves would be eaten up in three years. Mayor Berlin explained that designated reserves are deferred dollars that are put aside for scheduled maintenance, scheduled capital that is to be laid out for roads and infrastructure, etc. He advised that the Village cannot dip into that. Mayor Berlin explained that there are also reserves that are put aside for the water and sewer facilities. If money is taken from there, then the Village has to borrow it, similar to a bank, and pay interest. So, that's not truly available. Mayor Berlin also explained that $1.4 million has also been set aside as a beach renourishment reserve in the event of a catastrophe, which may or may not be enough money. He explained that for general service purposes, the Village doesn't have any more than $2 million. Mayor Berlin stated that putting that in context, if there was a hurricane similar to Andrew and the Medjool Date Palms were lost, then it would cost $2 million alone just to replace those trees. He personally thinks that $2 million is low and would like to have more in reserve, but in fairness to the citizens this year, the Village is balancing the draw on reserves and the millage rate. He advised that the Village is in fact taking more out of reserves than out of the millage rate. Councilman Boggess advised that in the past, the Mayor tried to put everything into resort tax and that fund was getting a disproportionate share. He explained that this Council is trying to get things back to normal. Mayor Berlin advised that the resort tax has underwritten a lot of things that might otherwise be paid out of the general fund. He explained that if it weren't for the cost of living increase to labor, the increase in cost of health and workers' compensation insurance, and the general fund picking up the roads and maintenance that was previously paid for by the resort tax, then there wouldn't be any tax increase. Mayor Berlin reported that the net increase per taxpayer will be 1 of 1 %. S. RESOLUTION — ADOPTION OF TENTATIVE MILLAGE RATE: A resolution was read by title, by the Village Clerk, adopting the tentative millage rate for fiscal year 2001/2002. A motion was offered by Assistant Mayor Tantleffand seconded by Councilman Roth to approve the resolution adopting a tentative millage rate for fiscal year 2001/2002. The motion carried with the vote as follows: Mayor Berlin aye; Assistant Mayor Tantleff aye; Councilman Boggess aye; Councilman Gorson absent; Councilman Roth aye. Thus becoming: RESOLUTION NO. 624 RESOLUTION OF BAL HARBOUR VILLAGE, FLORIDA, ADOPTING A TENTATIVE MILLAGE RATE FOR FISCAL YEAR 2001/2002; PROVIDING FOR AN EFFECTIVE DATE. Council Meeting - First Budget Hearing 09/11/01 2 191 6. ORDINANCES FIRST READING/PUBLIC HEARING: PROPOSED BUDGETS: An ordinance was read by title, by the Village Clerk, adopting a General Fund Budget for fiscal year 2001/2002. The public hearing was opened by Mayor Berlin. There being no comments, Mayor Berlin closed the public hearing. A motion was offered by Councilman Roth and seconded by Councilman Boggess to approve the ordinance adopting a General Fund Budget for fiscal year 2001/2002. The motion carried with the vote as follows: Mayor Berlin aye; Assistant Mayor Tantleff aye; Councilman Boggess aye; Councilman Gorson absent; Councilman Roth aye. Thus becoming: ORDINANCE NO. 465 ORDINANCE OF BAL HARBOUR VILLAGE ADOPTING A BUDGET FOR THE GENERAL FUND FOR THE PERIOD OF OCTOBER 1, 2001, TO SEPTEMBER 30, 2002, IN THE AMOUNT OF $5,878,479; AUTHORIZING EXPENDITURES; ESTABLISHING AN EFFECTIVE DATE. An ordinance was read by title, by the Village Clerk, adopting a budget for the Water Department for fiscal year 2001/2002. The public hearing was opened by Mayor Berlin. Mayor Berlin explained that the water fund is a self contained operation. Mrs. Horton advised that it's an enterprise fund, which has to be run on users' fees. Mayor Berlin explained that it zeroes out and there is also a fund balance, so it's in good shape. There being no additional comments, Mayor Berlin closed the public hearing. A motion was offered by Councilman Roth and seconded by Councilman Boggess to approve the ordinance adopting a budget for the Water Department for fiscal year 2001/2002. The motion carried with the vote as follows: Mayor Berlin aye; Assistant Mayor Tantleff aye; Councilman Boggess aye; Councilman Gorson absent; Councilman Roth aye. Thus becoming: ORDINANCE NO. 466 ORDINANCE OF BAL HARBOUR VILLAGE ADOPTING A BUDGET FOR THE WATER DEPARTMENT FOR THE PERIOD OF OCTOBER 1, 2001, TO SEPTEMBER 30, 2002, IN THE AMOUNT OF $1,193,270; AUTHORIZING EXPENDITURES; ESTABLISHING AN EFFECTIVE DATE. An ordinance was read by title, by the Village Clerk, adopting a Sanitary Sewer Department Budget for fiscal year 2001/2002. The public hearing was opened by Mayor Berlin. Councilman Boggess questioned if there's any chance that the Village can start using a Council Meeting — First Budget Hearing 09/11/01 3 19L different sewage plant to reduce charges. Mr. Treppeda explained that is something that is being investigated with Surfside and Bay Harbor. He reported that there may be a possibility of running a line to the north, over to a plant in the North Miami area. Councilman Boggess feels that it's strange that it cost more to dispose a gallon of water than it is to buy a gallon. Mr. Treppeda advised that's because Miami Beach has to add all their charges. But, if the Village can go directly to a County plant, then it will likely save money. He advised that it would also help the Village to get rid of all the maintenance responsibilities of the line that the Village has going through Surfside. There being no additional comments, Mayor Berlin closed the public hearing. A motion was offered by Councilman Roth and seconded by Assistant Mayor Tantleff to approve the ordinance adopting a budget for the Sanitary Sewer Department for fiscal year 2001/2002. The motion carried with the vote as follows: Mayor Berlin aye; Assistant Mayor Tantleff aye; Councilman Boggess aye; Councilman Gorson absent; Councilman Roth aye. Thus becoming: ORDINANCE NO. 467 ORDINANCE OF BAL HARBOUR VILLAGE ADOPTING A BUDGET FOR THE SANITARY SEWER DEPARTMENT FOR THE PERIOD OF OCTOBER 1, 2001, TO SEPTEMBER 30, 2002, IN THE AMOUNT OF $1,477,484; AUTHORIZING EXPENDITURES; ESTABLISHING AN EFFECTIVE DATE. An ordinance was read by title, by the Village Clerk, adopting a budget for the Department of Tourism for fiscal year 2001/2002. The public hearing was opened by Mayor Berlin. Mayor Berlin explained that the budget amount of $3.7 million is due to the Village using capital funds outlay to do the Beach Master Plan. Otherwise, the budget would be in the $1.8-$2 million range. Councilman Roth questioned the reserve going into this year. Mayor Berlin explained that there is a $1.5 million designated reserve for the Beach Master Plan, there is a $1.4 million designated reserve for a beach emergency, and there is another $340,000 undesignated. Mr. Treppeda explained that the $340,000 is what should be left after the $1.5 million is spent. Mayor Berlin advised that if the Village has to rebuild the beach, that won't be anywhere near enough money. Mr. Treppeda advised that the state, federal, and county would share funding for that. Councilman Boggess advised that fortunately, if the Village ever needed to float a bond issue, it's in a better position than almost anyone in the area to do it. There being no additional comments, Mayor Berlin closed the public hearing. A motion was offered by Councilman Roth and seconded by Councilman Boggess to approve the ordinance adopting a budget for the Department of Tourism for fiscal year 2001/2002. The motion carried with the vote as follows: Mayor Berlin aye; Assistant Mayor Tantleff aye; Councilman Boggess aye; Councilman Gorson absent; Councilman Roth aye. Thus becoming: ORDINANCE NO. 468 ORDINANCE OF BAL HARBOUR VILLAGE ADOPTING A BUDGET FOR THE Council Meeting — First Budget Hearing 09/11/01 4 DEPARTMENT OF TOURISM FOR THE PERIOD OF OCTOBER 1, 2001, TO SEPTEMBER 30, 2002, IN THE AMOUNT OF $3,773,075; AUTHORIZING EXPENDITURES; ESTABLISHING AN EFFECTIVE DATE. 7. ANNOUNCEMENT: Mayor Berlin announced that the next budget hearing date is September 24, 2001, at 5:15 p.m., to be held at Bal Harbour Village Hall. Councilman Boggess questioned how the meetings are advertised. Mrs. Horton explained that residents receive the first meeting notice from the property appraiser in the notice on the assessed valuation. She advised that the second meeting will be advertised in the Neighbors Section on September 20, 2001, in a quarter page ad, showing the increase and the budget summary. 8. ADJOURNS There being no further business to come before the Council, a motion was offered by Councilman Roth and seconded by Assistant Mayor Tantleff to adjourn. The motion carried unanimously (4-0), with Councilman Gorson absent, and the meeting adjourned at 5:32 p.m. Mayor Howard J. Berlin Attest: Jeanette Horton, CMC Village Clerk /elh Council Meeting - First Budget Hearing 09/11/01 5