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HomeMy Public PortalAbout2004-09-09 First Budget HearingCOIINCIL MINUTES FISST BUDGET HEARING — SEPTEMBER 09. 2004 The First Budget Hearing of Bal Harbour Village was held on Thursday, September 09, 2004, in the Council Chamber at Bal Harbour Village Hall The meeting was called to order at 5 15 p m by Mayor Roth The roll was called and those present were Also present Mayor Seymour "Sy" Roth Assistant Mayor Peg E Gorson Councilman Howard J Berlin Councilman Joel S Jacobi Alfred J Treppeda, Village Manager Ellisa Horvath, Acting Village Clerk Richard J Weiss, Village Attorney Tara L Gould, Village Attorney As a quorum was determined to be present, the meeting commenced 2. ANNOUNCEMENT: Mayor Roth announced that the Bal Harbour Village rolled -back millage rate is 2 5263 mills The proposed millage rate is 2 902 mills, which is 14 87%greater than the rolled -back rate 3. DISCIISSION OF PROPOSED TAX MILLAGE RATE AND DISCUSSION OF PROPOSED BUDGETS: Mr Treppeda conducted a Powerpomt presentation reviewing the Proposed Operating Budget for Fiscal Year 2004/2005 Mr Treppeda reviewed the Tax Base and explained that the taxable property values increased by $204,828,894, which is 15 39% He advised that the proposed millage rate for 2004/2005 is 2 902, which is the same as last year and is 14 87% above the rolled -back rate of 2 526 Mr Treppeda compared the Village's millage rate to other municipalities in Miami -Dade County and advised that the Village's is the fifth lowest in the County He reviewed Bal Harbour's millage rate since 1974 Mr Treppeda illustrated a $500,000 taxable value property, which shows that for Bal Harbour taxes, the homeowner would pay $27 57 more than last year (owners are entitled to a discount if they pay early) He reviewed a pie chart showing expenditure percentages by department (law enforcement is the largest) Mr Treppeda reviewed expenditure increases/decreases by department He advised that Law Enforcement is the largest increase at $572,617 00, but explained that is skewed a bit high because of the way it was budgeted last year Mr Treppeda explained that the Village was waiting for a permit fee from the One Bal Harbour project, which was very large, so that was budgeted for in one line item, so the Village would hold off on spending certain items until that came in He stated that there were three officers last year that weren't shown in the law enforcement line item, which are now shown Mr Treppeda stated that the reason the General Government is decreasing $661,183 00 is for that same reason, there was a large line item of $900,000 00+, which was a contingency line item for the One Bal Harbour permit fee He reviewed the largest expenditure increases and decreases Mr Treppeda stated that Police Department is hiring two additional police officers, along with the three that are showing for the first time, since they weren't on the Council Meeting — First Budget Hearing 09/09/04 1 155 line item last year, salary increases (including a 3 3% cost of living based on the consumer price index), pension contribution of $180,000 00+ required for the Police Pension Plan, 13% increase in health insurance, and costs related to additional personnel and equipment He advised that the Building Department shows an increase because the Building Official will require additional help for the One Bal Harbour project and there will also be fees for additional inspections that are required Mr Treppeda reviewed that the General Government decrease is due to the large line item that was previously shown, which was a contingency line item for the One Bal Harbour permit fee He advised that the Legislative litigation line item has been increased and engineering has been increased for the Comp Plan Evaluation & Appraisal report, which is due this next fiscal year Mr Treppeda noted that the Police increase appears higher, due to the three police officers from last year being budgeted in the One Bal Harbour contingency, in the General Government Department He reviewed a pie chart showing who gets Bal Harbour's tax dollars, which shows all of the other taxing authorities (School Board 37 3%, County Millage 28%, Bal Harbour Millage 13%, etc) Mr Treppeda explained the table comparing the 2003/2004 tax bill to the proposed 2004/2005 tax bill He stated that there is a decrease of 2 11 % in the total taxes, but the reason that the taxes go up is because the property values most likely have increased Mr Treppeda illustrated an example of a $500,000 taxable property, which shows that the homeowner would pay $210 45 more than last year, with only $27.57 of that going to Bal Harbour He reviewed a pie chart showing the Village's revenue sources by percentage of the total budget (Ad Valorem 54 19%, Licenses & Permits 13 43%, FPL Franchise & Utility Tax 12 63%, Contributions from Other Funds 7 94%, Telecommunications Tax 3 66%, etc) Mr Treppeda explained the largest revenue sources (Bal Harbour Ad Valorem Tax $4,242,664 00, Licenses & Permits $1,051,479 00, FPL Franchise & Utility Taxes $988,552 00, Contributions from Other Funds $621,873 00, Telecommunications Tax $286,668 00) He reviewed the Water and Sewer Fund and explained that the Village is not proposing any increases and the rates will remain at $1 85 per 1,000 gallons of water and $2 84 per 1,000 gallons of sewage Mr Treppeda advised that the County is keeping their wholesale water rates the same and Miami Beach is charging the Village the same amount as last year Councilman Berlin complemented Mr Treppeda on including the year to date column He questioned if it's possible when a year to date is done, if an estimate can also be given of what the annualized number would be, because sometimes expenses get shifted in different quarters He stated that the Council is looking at nine months of actual, as opposed to twelve Chris Wallace, Finance Director, stated that a forecast can be done towards the end of the year for the budget, for both revenue and expenditure Councilman Berlin requested that column be added next year Councilman Berlin reviewed 511 230 (Health Insurance) and questioned if that is for additional employees, or if the Village is being charged more Mr Treppeda explained that Section 511 is for the Village Council Councilman Berlin questioned how many of the Village Council are drawing insurance Mr Treppeda stated that the Village pays 100% for Councilmember coverage and 55% for their Dependents He explained that the amount is to cover five Councilmembers Councilman Berlin requested that someone look to see what the amount is for Mr Treppeda will check that and stated that it's possible that enough wasn't budgeted in the previous year He stated that if the bills are less, then that amount will not be spent Councilman Berlin reviewed Litigation budget proposal (511 310) and questioned why it Council Meeting — First Budget Hearing 09/09/04 2 was increased substantially Mr Treppeda explained that when the amount was budgeted, they didn't know about the dog lawsuit coming to a close and there is one lawsuit in the Security District He advised that the amount was based on possible litigation and what has been spent so far Councilman Berlin questioned how much Mr Treppeda estimates will be spent in litigation this year Mr Treppeda doesn't know, but based it on the year to date (9 month) expenses of $57,934 Mr Weiss explained that the money spent this year has almost all been on the dog litigation, including the appeal He advised that is over, unless they appeal again Councilman Berlin questioned if the amount is based on the litigation for the Security District Mr Weiss stated that is primarily being handled by insurance counsel, which the Village doesn't pay for He explained that Village Attorney David Wolpin has been monitoring it Councilman Berlin questioned why $75,000 is being budgeted, if the lawsuit with the dogs is over and the insurance is handling the other matter Mr Weiss stated that the Village could put nothing in the budget and then if it gets sued, the money would have to be pulled out of contingency He advised that experience has been that things have become more litigious Mr Weiss stated that it wouldn't be expended if the Village isn't sued Councilman Berlin questioned the Engineering budget (511 313) increase Mr Treppeda explained that is for the Evaluation & Appraisal Report, as well as One Bal Harbour Councilman Berlin reviewed 512 493 Election Expense and questioned if that is primarily for mailing Mr. Treppeda explained that Mrs Horton came up with that amount before she left Councilman Berlin requested that they find out what $25,000 is budgeted for Mr Weiss believes that the Village pays the County for conducting the Village's municipal election Councilman Berlin questioned how many people voted from Bal Harbour at the August election Mayor Roth thinks a lot of people voted by absentee ballot Councilman Berlin reviewed 519 450 General Government Insurance, which is going up $70,000 Mr Treppeda stated that Hilda Rodriguez has spreadsheets on what is needed for each department for insurance Councilman Berlin requested that Mr Wallace make notes on all of these items Councilman Berlin reviewed 521 Law Enforcement and stated that the first page shows $1,960,846 for salaries and the second page shows $2,055,882 for salaries He questioned the discrepancy Mr Treppeda stated that the second page includes the salary for the Police Chief Councilman Berlin reviewed 524 Building Department and questioned the Building Official's salary of $10,000 Mr Treppeda explained that there was a requirement of the County where part of his salary had to be shown as an employee He advised that the $10,330 is just his employee portion and his corporation portion ($41,320 00) is listed under the Professional Services line item (524 316) Councilman Berlin reviewed Revenue (300) and questioned what Mr Treppeda anticipates that the base line license and permit revenue would be, since there have been two years with a lot of building permits being issued from substantial construction Councilman Berlin questioned if the Village is due to receive any substantial portions of the fees between now and the end of the fiscal year Mr Treppeda responded no, that they should come in after October 1, 2004. He thinks that the last base line year was around $300,000 - $400,000, according to 2002/2003 figures Councilman Berlin wants the Council to be aware that next Council Meeting — First Budget Hearing 09/09/04 3 157 fiscal year that number has to be made up, or people are going to be looking at an increase He stated hopefully that will come from ad valorem Councilman Berlin stated that hopefully if the Bellini is on line by then, it will make up a substantial portion of that, but that will be a big hole Councilman Berlin stated that under Revenue, the Village is drawing $532,000 from fund balance, and questioned what amount will be left in fund balance Mr Treppeda stated a lot will be left because there was a $900,000+ fee which a lot was spent Councilman Berlin questioned what the surplus will be this year He wants to know if the contribution from fund balance is going to be greater or less than surplus He questioned if the Village will be net positive or net negative Mr Treppeda thinks that the Village will be net positive Councilman Berlin requested answers to all of these questions in advance of the second budget hearing Mr Treppeda explained that he wouldn't have proposed taking $532,000 out of fund balance, if he wasn't comfortable that the Village was going to have a very good amount in the general fund balance Councilman Berlin also wants to know what the net fund balance is going to be Mayor Roth advised that he received his proposed property tax and in any of the proposed budgets that will be passed, his taxes will be lower than last year He thinks everyone will be in the same category, if they have Homestead Exemption 4. RESOLUTION — ADOPTION OF THE TENTATIVE MILLAGE BATE: A resolution was read by title, by Mayor Roth, adopting the tentative millage rate for fiscal year 2004/2005 Mayor Roth opened the meeting for public discussion Dina Cellini, resident — 211 Bal Cross Drive, stated that her comments and questions will be directed to the budget that applies to the Security District Mr Treppeda thinks that would be addressed at the Equalization Hearing at the next Council meeting Mr Weiss questioned if there are any Security District items included in the budget Mr Treppeda stated that they're in the document, but they're not being approved today Mr Weiss stated at the next meeting, they will have the Equalization Board for the Security District, at which time the assessment method, etc will be reviewed Ms Cellini questioned if it will be approved at that time so if she had questions, it would be too late to get responses Mr Weiss suggested that she speak with Mr Treppeda, before the meeting, to have answers to her questions Ms Cellini discussed the litigation expenses under General Fund ($75,000) and the separate litigation expenses under Munisport (environmental attorneys) She advised there are also Attorney and Legal Fees (511 312) budgeted and questioned how that differs from the Litigation line item (511 310) Mr Treppeda advised that the Attorney and Legal Fees are the general legal fees that come in each month and the Litigation is for actual litigation, while Munisport Litigation is specifically for the Munisport items from another law firm Ms Cellini clarified that the Attorney and Legal Fees have nothing to do with the lawsuits that are pending with the Village Mr Treppeda advised those are regular legal fees for ongoing matters Ms Cellini stated that $93,500 was budgeted last year and only $53,298 has been spent year to date (as of 7/31/04) She questioned why $100,000 is being budgeted for the 2004/2005 fiscal year, because she thinks that is more than what is necessary Ms Cellini Council Meeting — First Budget Hearing 09/09/04 4 i 158 questioned why the budget is being increased, when the amount budgeted for the present year hasn't been spent Mr Treppeda stated that the former Finance Director budgeted that amount shown He stated that legal fees are increasing Mr Weiss stated that the Comprehensive Plan review is coming up, which involves a lot of the attorneys' time, and he will be requesting a cost of living increase (3 3%) at the next meeting, and whatever else comes up He explained that the attorneys bill monthly Ms Cellini clarified that the discussion about the hourly rate for legal fees will be made at the October meeting. Mr. Treppeda stated it will be at the September 21st Council meeting Ms Cellini discussed Item 521 400 (Law Enforcement Travel & Per Diem), in which $22,500 was budgeted for the Chief to attend some conferences She questioned who monitors those expenses Mr Treppeda reported that contain funds for the Chief to attend State and Local Conferences ($5,000), funds for Captain Jay Smith to attend Accreditation School ($2,OOQ), Honor Guard Washington DC Police Memorial ($6,000), Honor Guard Tallahassee ($3,000), Hurricane Conference ($1,500) and Miscellaneous Business Travel ($5,000) He advised that those all go through his office, before the funds are expended. Ms Cellini clarified that includes other people attending conferences other than the Chief. Mr Treppeda responded it's also for other staff members Ms Cellini stated that under Management Expenses (line item 401) there is another $7,000 budgeted for Chief expenses Mr. Treppeda advised those are separate and are for lunches, to conduct supervisor meetings, etc. He explained that Chief Hunker keeps him advised whenever he needs to use those funds Ms Cellini discussed the Special Assessment (300 004) at the bottom of the Security District and requested that Mr Treppeda let her know, prior to the Equalization Meeting, what that item is for Mr Treppeda advised that the $47,797 listed is the revenue that comes in from collections for the new guardhouse There being no additional comments, Mayor Roth closed the meeting for public discussion. A motion was offered by Assistant Mayor Gorson seconded by Councilman Jacobi to approve the resolution adoptinxi a tentative millaxie rate for fiscal year 2004/2005. The motion carried with the vote as follows: Mayor Roth ave; Assistant Mayor Gorson aye; Councilman Berlin ave; Councilman Jacobi aye. Thus becominxi: RESOLUTION NO. 662 A RESOLUTION OF BAL HARBOUR VILLAGE, FLORIDA, ADOPTING A TENTATIVE MILLAGE RATE FOR FISCAL YEAR 2004/2005; PROVIDING FOR AN EFFECTIVE DATE. 5. O1LDINANCES FIRST READING/PUBLIC HEARING: An ordinance was read by title, by Mrs Horvath, adopting a Budget for All Village Funds for fiscal year 2004/2005 The public hearing was opened by Mayor Roth There being no comments, Mayor Roth closed the public hearing A motion was offered by Assistant Mayor Gorson and seconded by Mayor Roth to approve the Council Meeting — First Budget Hearing 09/09/04 5 COIINQL MINUTES S \ FIRST BUDGET HEARING — SEPTE ER 09, 2004 The Fir Budget Hearing of Bal Harbour Villag was ► -Id on Thursday, September 09, 2004, in t Council Chamber at Bal Harbour Village - all The meeting was called to order at 5 15 p m • y Mayor Roth The roll was called a ► dpthose present were Mayor Sey ► our "Sy" Roth Assistan ayo"r Peg E Orson Counc an Howard J Berlin Cou ilman Joel S Jacobi \ fredrJ Treppeda, Village Mana er pp � g 9t llisa Horvath, Acting Village/Clerk+t Richard J Weiss, Village Attorne "Tara L Gould e Attorney Villa g � y As a quoru • esent, the meeting co enced Also present was d ete rm i 2. O Village rolled -back which is 14 87% gr a SCI\S � ayor Rot/ Y i is The p k ate i. a ounced that the Bal I-farbour osed millage rate is 2 902 mills, • p SSION3. D I SED TAX MILLAGEAND DISC! I GETS: Mr Treppeda con Power oint osee O eratin Budget for p p � p g . g 004/2005 t r i L , Mr , ep = and explained t * t the taxabl - property values increas ' % He advised th the pro• • sed millage rate for 2004/2 st-year and is 141/4„ :7% - bove the rolled -back rate of . ge's millage ra �\ : • other municipalities in Miam e's is the fift o est in the County He revie Mr Trepeda \ ill trated�a $500,000 taxa ,� ur to es, the homeowner would pay $27 : iscount if ey pay early) He • epartment(tw enforcement is rev g - d � p e incr ses . ecreases by department He at $572, 7 00, but explained that is ted last year Treppeda explained the One BaI.�Harbou •roject;>which was e em, so the'�Village would hold off on tated t • there were three officers last year ne item, whic r-.now shown Mr Treppeda pp ment is decreasing $661 ,1 83 00 is for that same reason;there was a large line item of $900,000 00+, which was a contingency line item for the Cane Bal Harbour permit fee He reviewed the largest expenditure increases and decreases Mr Treppeda stated that Police Department is hiringtwo additional police pp p officers, along with the three that are showing for the first time, since they weren't on the Council Meeting — First Budget Hearing 09/09/04 1 159 I 526 Dade Co ed Bal Harb le value property, 57 more than last y ewed a pie chart show the rgest) Mr Treppe • a review advised that Law Enfor ement is the - • skewed a bit high, be' ause of the way it that the Village ,w. waiting for a permit fee fr very large, so that was budgeted for in one spending certain items until that came in He that weren,'fshown in the law enforcement stated that the reason the General Gov esentation rev,�e ecl to CEME gage rate is 2 5263 r than the rolled-ba N of PRO ROPOS ng the fP • da reviewed the Tax Bas by $204,828,894, which/is 2 902, which is the,s r Treppeda corrn and advis is mitfa hic • 5 es red the Vi that the °Villa e rate since '1\97 - , hows that for Bal HIar (owners are entitlbd to enditure percenta • - s expend itu r est increas bud • • . • • icted a cal Year • Ordinance adopting a Budget for All Village Funds, for fiscal year 2004/2005. The motion carried with the vote as follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi aye. Thus becoming: ORDINANCE NO. ORDINANCE OF BAL HARBOUR VILLAGE ADOPTING A BUDGET FOR ALL VILLAGE FUNDS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2004, AND ENDING SEPTEMBER 30, 2005; APPROPRIATING REVENUES AND OTHER FUNDS IN THE AMOUNT OF $15,711,992; AUTHORIZING EXPENDITURES; AND ESTABLISHING AN EFFECTIVE DATE. 6. ANNOUNCEMENT: Mayor Roth announced that the next budget hearing date is September 21, 2004, at 5 15 p m , at Bal Harbour Village Hall Mayor Roth announced that the Village of Bal Harbour has tentatively adopted a millage rate for the fiscal year 2004/2005 of 2 902 mills, which is 14 87% greater than the rolled - back millage rate of 2 526 mills. He stated that property taxes will increase by 14 87% 7. ADJOURN: There being no further business to come before the Council, a motion was offered by Councilman Berlin and seconded by Councilman Jacobi to adjourn. The motion carried unanimously (4-0), and the meeting adjourned at 5:55 p.m. / Attest _.._:---------:)(_.....,t,virrt '.- i ,---- Ellisa Horvath, CMC Acting Village Clerk / f L'(/ , 4 May f r Seymour Roth Council Meeting — First Budget Hearing 09/09/04 6