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HomeMy Public PortalAbout2004-09-21 2nd Budget Hearing173 COUNCIL MINUTES SECOND BUDGET HEARING - SEPTEMBER 21, 2004 The Second Budget Hearing of Bal Harbour Village was held on Tuesday, September 21, 2004, in the Council Chambers at Bal Harbour Village Hall The meeting was called to order at 5 18 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 L Horvath, Acting Village Clerk Richard J Weiss, Village Attorney As a quorum was determined to be present, the meeting commenced 2. ANNOUNCEMENT: Mrs Horvath announced that the Bal Harbour Village roiled -back millage rate is 2 5263 mills and the proposed millage rate is 2 902 mills, which is 14.87% greater than the rolled -back rate 3. DISCUSSION OF PROPOSED TAX MILEAGE RATE AND DISCUSSION OF PROPOSED BUDGET: Mr Treppeda conducted a brief review of his PowerPomt presentation, discussing the Proposed Operating Budget for Fiscal Year 2004/2005 He explained that the millage rate is the same as last year and the property values went up 15 39% Mr Treppeda stated that because the property values went up, there is a tax increase He advised that Bal Harbour is proposing the 5th lowest millage rate in the County Mr Treppeda stated that Bal Harbour is dust one component of the tax bill and the entire millage rate for 2003/2004 was 22 1525 and the proposed millage rate for 2004/2005 is 21 6837, which is a decrease of 2 11 % He advised that the largest revenue source is ad valorem (64%), FPL franchise and utility taxes (12 63%) is next Mr Treppeda stated that the water and sewer rates are staying the same 4. RESOLUTION - ADOPTION OF THE MILLAGE RATE: A resolution was read by title, by Mrs Horvath, adopting the final millage rate for fiscal year 2004/2005 Mayor Roth opened the meeting for public discussion There being no comments, Mayor Roth closed the meeting for public discussion A motion was offered by Mayor Roth and seconded by Councilman Jacobi to approve the Resolution adopting a final millaRe rate 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: RESOLUTION NO. 665 Council Meeting — Second Budget Hearing 09/21/04 1 i 171 A RESOLUTION OF BAL HARBOUR VILLAGE, FLORIDA, ADOPTING A FINAL MILLAGE RATE FOR FISCAL YEAR 2004/2005; PROVIDING FOR AN EFFECTIVE DATE. 5. ORDINANCE SECOND 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 Babak Raheb, resident — 128 Balfour Drive, questioned the Police Department expenditures He thinks that having 50% of the budget for the police department for a city this size is not right Mr Raheb suggested saving that money instead for when the Sheraton is closed He thinks that there should be a cap on the amount budgeted for the police department, because other cities don't spend more than 25%-30% for their police departments. Lazar Gilinski, resident— 10101 Collins Avenue #19F, questioned spending so much money on tourism He thinks that the tourism budget should be lowered, not the police Mayor Roth explained that the Village receives approximately $2 million every year from resort tax funds, so the money used for tourism is not from ad valorem taxes Ana Marie Kelly, resident — 77 Camden Drive, questioned budgeting for Village maintenance to cut, water, and maintain the grass in the residential section, which is deeded to the Civic Association She would like to know when that will be addressed Ms Kelly stated that Village residents not living within the Security District are not entitled to enter the District Mr Weiss advised that comments concerning the Security District should be made during the discussion of the assessment roll, on the regular Council agenda Councilman Berlin explained that he will recuse himself on an issue dealing with the Security District He advised that when the Civic Association voted to terminate the Agency Agreement with the Village, he requested guidance from the Village Attorney, who recommended that he recuse himself on any economic matter relating to the Security District, which affects almost every matter dealing with that District Councilman Berlin advised that he requested the Village Manager to accommodate him, by placing these items at the end of the agenda He stated that residents wanted to know why he was recusing himself, so he once again spoke with the Village Attorney Councilman Berlin reported that he advised the Village Attorney at that time that he was uncomfortable continually removing himself from Council meetings in this manner, because it left a bad impression He requested that the Village Attorney review this again and speak with the Ethics Commission for a second opinion Councilman Berlin reported that the Village Attorney spoke to the Ethics Commission, whose advice was that it would be prudent for him to recuse himself He advised that he will continue to follow that advice Councilman Berlin stated that the essence of their advice to him appears to result in an interpretation that would essentially affect anybody who lives in the Security District serving in this seat and voting on these matters He personally finds that problematic and thinks that on a going forward basis, if he or anyone else sitting in that seat can't participate because of the dynamic of the Village administering the Security District in votes dealing with the Security Council Meeting — Second Budget Hearing 09/21 /04 2 175 District, then the residents of that District may feel that they don't have adequate representation, which isn't fair to them Councilman Berlin is sorry that is the interpretation, but thinks that it's appropriate for him to follow that advice Mr Weiss stated that the issue that Councilman Berlin is raising is very troubling to the Attorneys, because he believes that the advice they have given him to abstain from these matters is correct He advised that the Ethics Commission concurs with the fact that it would be prudent for him not to vote on these matters Mr Weiss stated that the Village's situation is unique regarding the Security District and thinks that there is a challenge here, because he understands the issue that Councilman Berlin is raising on the lack of representation on critical issues He stated that they need to try to find some interpretation that would meet with the ethical standards and try to give the people in the residential area a real voice in issues that are important to them Mr Weiss doesn't know if they will be able to find something or not He stated that he is aware of the issue and Councilman Berlin is doing the only thing that he can do, which is to recuse himself in this circumstance He advised that they have a request into the Ethics Commission for some advice on how to deal with this situation Mr Weiss thinks that he needs to make them aware of the repercussions of the advice Councilman Berlin left the meeting at this time Dina Cellini, resident — 211 Bal Cross Drive, stated that she thought the reason that Councilman Berlin has been recusing himself was unique to him, because he and his law firm represented the company that was providing security services at the gate and was, therefore, voting on budget items on payment to a former client She is confused because she is hearing that moving forward any representative of District #5 will have to recuse themselves, at the Equalization Board meeting Mr Weiss stated that the Dade County Ethics Ordinance is relatively recent He thinks that, because the Village has taken over the program, it takes the issues one step closer to the Village Mr Weiss explained that Councilman Berlin abstained to avoid the appearance that there might be anything inappropriate He advised that they will be discussing this further with the Ethics Commission Ms Cellini questioned if Mr Weiss will also discuss with them the ramifications of a representative from District #5 sifting on the Equalization Board, if the agreement was re -instituted between the Village and the Civic Association and the Association took back control of the Security District Mr Weiss stated that's not on the table, so he is dealing with what the Village has Ms Cellini stated that might influence the Civic Association Mr Weiss stated that if the Council is interested in having this go back to the Civic Association, then he will address it, but nobody on the Council has suggested that He advised he will take it a step at a time and is hoping that there's a way that the person from the Security District can vote on these items on a regular basis Mr Weiss will report back to the Council at a public meeting Ms Cellini questioned why additional money is being budgeted, since the full amount budgeted last year was not used (legal fees) Mr Treppeda explained that he worked with the Civic Association President on the budget He advised that there is a current lawsuit being handled by the insurance company, but the company could later charge the Village for that. Ms Cellini questioned if that is litigation being charged to the city at large, because it's involving the act by the Village in creating an ordinance She advised that she was told by former Mayor Tantleff that the funds appropriated to the Security District ($25,000) would be removed and placed under the General Fund Mr Treppeda advised that would Council Meeting — Second Budget Hearing 09/21 /04 3 not be correct and thinks that it's appropriate to apply to the Security District, because it specifically affects the Security District Mr Weiss explained the reservation of rights that the insurance company is entitled to Mr Treppeda reported that the Security Assessment is the same as last year Ms Cellini stated that the assessment has been this high for a number of years Ms Cellini reviewed 102 525 (Landscaping/Materials) and thinks that amount can be cut from the budget She thinks that the Security Assessment has increased very quickly and at a very large rate over the past 3-4 years, so she doesn't think it's unreasonable to think that now might be the time if there is an excess surplus to reduce the rate and get it back to where it should be Mr. Treppeda thinks that the assessment is very reasonable, compared to other districts Ms Cellini questioned if it's as little as it can be Mr Treppeda discussed the issue of a contingency fund and advised that they estimate there will be approximately $30,000 at the end of the year, which isn't 6 months worth of operating expenses Mr Treppeda thinks there should be at least 6 months worth of operating expenses in the Contingency fund Chris Wallace, Finance Director, agreed on the estimate Mr Treppeda stated that $53,000 will be spent for new equipment (cameras, etc ) coming out of the current budget (2003/2004) Ms. Cellini discussed the improvements that were supposed to be paid by Kent Security Mr Treppeda advised those items have already been done Sandra Dunn, Civic Association President explained that those items have been discussed at meetings Ms Cellini thinks that there's a lot of fat in this budget and this Council spends money very liberally She thinks there would have been a nice opportunity to show some good will on the part of the Council, to reduce some of the budget and decrease the security assessment Mr Treppeda thinks that $15,000 for a Management Fee is very reasonable and is an amount that could probably be raised alot Ms Cellini questioned the origin of the Management Fee and if it's entirely the Council's decision on what to charge. Mr Treppeda stated that it is the Council's decision and the water and sewer funds all pay the general fund a management fee, because staff manages those accounts He stated that the mechanism to argue that is at the Equalization hearing, but the Council has the discretion to make that whatever they feel is appropriate Ms. Cellini thinks that the Management Fee is way too much and if they were managing appropriately and effectively, they would be able to reduce the assessment She objected to the items she discussed and she would like some of the money to be removed from the budget, so the residents could enjoy a reduction in the security assessment Mayor Roth stated that he pays that amount for assessments per month Assistant Mayor Gorson doesn't think that there's anything wrong with having money in Contingency. She advised that the amount budgeted won't be used, if it's not needed Mayor Roth thinks that the budget has to be conservative Councilman Jacobi thinks that the Management fee is cheaper than having a firm handle it, which would probably be $60,000-$70,000 Babak Raheb, 128 Balfour Drive, discussed Attorney Fees and stated that Mr Treppeda is making a false statement He advised that $23,250 was supposed to be removed from the 2003 Security District Budget and put in the General Fund, because that involved the General Fund, not the District He advised that was also the advice of Mr Weiss. Mr. Weiss clarified that he does not have any say of where things are charged and the Mayor Council Meeting — Second Budget Hearing 09/21/04 4 I --7 -1 would not tell them to put something in or out of the budget He advised that the opinion that they rendered was not ethical opinion regarding voting, it was whether the enactment was properly done and whether it was subject to challenge Mr Weiss stated that the direction of that letter is pointed towards whether the enactment was properly passed and enacted, or subject to challenge He stated that the conclusion was that it was a proper enactment Mr Raheb disagreed and stated that Mr Weiss' conclusion was that there was no conflict of interest and dealing with ethics Mr Weiss stated that those issues had to be dealt with, but the question that they answered was dealing with the enactment of the legislation, not an ethical question He advised that it could have been charged to the Security District or the General Fund and at that point it was up to the Manager on where to put it Mr Raheb discussed Resolution 464 He stated that since the contract between the Village and the Association is no longer valid and a portion of the resolution is the management agreement has been removed, because that contract has been canceled He stated that if the Village wants to charge attorney or management fees, then a new resolution has to be enacted, because resolution 464 has to be canceled Mr Raheb stated that there can't be a resolution, with part of it no longer being valid Mr Weiss stated that he has reviewed it and believes that the agreement provided for cancellation, the agreement was canceled, the security program remained in place and management and attorney fees are ancillary parts of the Village's administration of the Security program and they are properly allowed. He thinks those ancillary fees are appropriate to be charged to the Security District. Mr. Raheb thinks that it would be better if 464 was re -written Mr Raheb stated that there is $132,000 surplus in the Security District and questioned where that money is He advised that the Village doesn't having a running account of the surplus Mr Raheb discussed resolution 485 and the half -cent construction fee Chris Wallace, Finance Director, stated that the Village's accounting records have this as an agency fund and, because of that, there is not a fund balance concept He advised that he has given Mr Raheb copies of balance sheets from audited financial statements for three periods, which each show a balance in the Security District fund Mr Wallace stated that it's not a cumulative amount and it changes each year, based upon the revenues and expenses He estimated that the unreserved and undesignated fund balance for this fund will be in the $30,000-$32,000 range Mr Wallace stated that the overall fund balance will be greater than that, because the District has collected some money that is reserved additionally, beyond the special assessment that is levied, which is a levy on the permit fees He stated that as of this time, that money has remained unspent Mr Wallace stated that the money is not necessarily unencumbered, because there is a plan and agreement to spend $53,000 of that He advised that the District has a separate bank account Mr. Wallace stated that other than using money for the management fee, the Village isn't diverting this money outside of the District He stated that he will be changing how the accounting looks, so people can see it better and won't have this misunderstanding Mr. Wallace thinks that this District will have $30,000 unreserved and undesignated fund balance, representing approximately 1 5 months of operating expenditures for the District, which is towards the low side, but not worrisome He thinks that if he can sit down and explain and show them the cumulative effect of that from year to year, it might help them with many of the issues Mr Wallace advised that he can explain where the money is going and how much of it remains Mayor Roth requested quarterly reports, showing what was budgeted and what was spent, for the Village and the Security District Mr Wallace advised Council Meeting — Second Budget Hearing 09/21 /04 5 that he will do that for all of the Village funds He stated that he can also do that at any point in time, if needed Mr Raheb discussed the 2004 budget and the revenue collected He thinks that there will be plenty of reserves, if the Council reduces the assessment. Mr Raheb requested to see the bills totaling $25,000, for the maintenance of equipment Mayor Roth thinks that the District has one of the lowest assessments He advised that the money isn't going to be thrown away Mr Raheb stated that he doesn't agree that the person that Mr Treppeda is speaking with is the representative of the Civic Association Sandra Dunn, resident — 208 Park Drive and President of the Civic Association, advised that she met with Mr Treppeda and reviewed the budget She reported that she thinks the budget is fair, based on inflation, possible lawsuits, people calling the Village Attorney for Security District issues, landscaping, and management fees Ms Dunn stated that everyone wants to live in a beautiful community, but they don't want to pay She advised that if a management company was hired, they would be paying more than $1,250 monthly for the services that are needed Ms Dunn thinks that the Village is doing a good job Mayor Roth thinks that if the maintenance is the same as the prior year, then they are doing well Rhea Kelly, resident— 77 Camden Drive, advised that she has reviewed the budget and stated that 90% of the payroll goes to city workers that maintain the Village's residential section She reported that the owners on Collins Avenue have no right to walk in the residential section and enjoy the parks and landscaping, because it's owned by the Civic Association Ms Kelly stated that they don't have access, but tax dollars are being assessed for the maintenance of that section Assistant Mayor Gorson stated that it's part of the Village Gabriela Webster, resident— 30 Park Drive #15, clarified that due to the rescission of the Management Agreement, they cannot have a representative speak on their behalf Mr Weiss stated that there is a law and a set of circumstances He explained that it was never contemplated that they would meet each other, so they are speaking with the Ethics Commission to try to find a way so that the representative from District #5 can vote, in compliance with the ethical laws and the residents can be fully represented. Ms Webster questioned if the Village should be looking at creating a new Management Agreement or some parameters for the management for professional services Mr Weiss explained that the Security Program was created at the request of the people in the residential area by the Village He stated it was done because they had no way of collecting Mr Weiss reported that the Village chose at one point to have the administration done through this contract, but at this point the Village has assumed it He stated that as part of the budgetary process, there is an allocation of management cost Darcee Siegel, resident— 169 Camden Drive, questioned what the style of the case is for the lawsuit that has been mentioned Mr Weiss responded that he doesn't have the style of litigation, but it's Mr Babak versus the Village of Bal Harbour Ms Siegel questioned how many residents pay their assessments every year Mrs Horvath responded that approximately 5 residents had liens placed against them for non-payment of the assessment last year Ms Siegel questioned if the Village forecloses on those Council Meeting — Second Budget Hearing 09/21/04 6 179 assessments Mr Weiss advTeeNtlirsitiNtittgled a foreclosure action to his knowledge Mr , -,• ` - * • , n • -- ► = t . ; -fi - - . then that's when th• usually pay - - - - - - - - wing a great job 2 tigt, 9ft Ordinance carried with Berlin absent; Chambers,�p� •��py��1��T�October 19, h ounce at`�a�1� rbou�`�%iliage a e mee mg as called to gfigrkYiNiisINNIMPURAPAMPonded by Mayor Roth to approve the dopting a Budget for Villa e Funds r c l year 2004/2005. The motio e vote as follows:� M �o7�we`� �s � a or Gorson aye; Council , n � ouncilman Jacobi a '�l'�d s bec ..' CU Dui � •d J. Berlin AffiRilmrkleiffl%f Boggess ounce man Joel Jacobi ORDINANCE C BAL HARBOUR VILLAG AlitiNgEgniND FOR THE IfIttMlbia ENDING SEPTE : ER 30, 2JkabPI4 FUNDS IN THE AM O NT OF = _ - 1.0 tit, ESTABLISHING AN E FECTIII ► • 61541 As a qte;um ya meetin - adourned at 6 .- • ,�. .. , ,r a Cell 30 gOesili6 AVA .m. ALLEANC: The P OPTING A BUDat RE tit NWOOMP1MBIL titing4 IBHta Village Attor ti Y OR ALL ,204, AND KDO HER ITURE$; AND :re the Council, the ge of PIlegiance was lead by Village ;‘0L OF M1UT - �. • i , red , y Co n cil rnan karsonn /et. ��unc�ilm n Jacobi t(1 appr a ce mired ..,pig-mbe 21,`2004, Se 'ond % udRet Hears M. The motion carried unanimously (4- +� ,.� . i,• es were approved,,as s milted. Ellisa Ho Village Cle FO/ST READING: Mayor Roth requested that this item be itilbrRinibe MrGlpen needs to leave An ordinance was read, by title, by the ng se tons of the Employee's Pension Plan ffira✓,9i91irtill? l, 2004, Regular Steven Cypen, Pen ion Attorney, explained that he ,has been asked to prepare amendments to the eeneral Employee Pension Plan, with the a orit of the provisions being 1 Y housecleaning re • ired by Federal or State law or prior existing\greements He stated the two important pr• visions are the definition and creation of a dual service employee and the DROP (Defer - d Retirement Option Program) plan He explained th4t most plans have these items Mr pen explained the DROP plan He reported that the Florida retirement system enables • -ople to retire from the pension plan, while remaining in the employ of the Village for up t • we years Mr Cypen explained that this allows for departments to&plan for the future and r- duces the cost to the system, because there's no pension contribution for those five years,employee and it allows the em to ee to have a lump sum when they actually lekve He stated that this ordinance is on for first reading again, since some changes were made Mayor Roth opened the public hearing There being no comments, Mayor Roth closed the public hearing SCAR WOint%:':misfit iMg airftig is hate First Reading 7 Regular Council Meeting 10/19/2004 1 1 8 il assessments Mr Weiss advised that they haven't filed a foreclosure action to his knowledge Mr Treppeda stated that when someone tries to re -finance, then that's when they usually pay it Ms Siegel thanked the Council and thinks they're doing a great job There being no additional comments, Mayor Roth closed the public hearing A motion was offered by Assistant Mayor Gorson and seconded by Mayor Roth to approve the 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 absent; Councilman Jacobi aye. Thus becoming: ORDINANCE NO. 491 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. ADJOURN: There being no further business to come before the Council, the meeting adjourned at 6:30 p.m. / a � AA/ I May: r Seymour Rot!. Attest ,.,..-_---_:- 1, I. (/ AA_____ Ellisa Horvath, CMC Acting Village Clerk Council Meeting — Second Budget Hearing 09/2 l /04 7