HomeMy Public PortalAbout09/12/2009 * Public Hearing, Tentative Budget MeetingrD
September 3, 2009
MAYOR: William F. Koch, Jr.
VICE MAYOR: Joan K. Orthwein
COMMISSIONER: Muriel J. Anderson
Fred B. Devitt III
Chris D. Wheeler
PUBLIC HEARING BEING HELD BY THE TOWN COMMISSION OF THE TOWN OF GULF
STREAM ON FRIDAY, SEPTEMBER 11, 2009 AT 5:01 P.M., IN THE COMMISSION
CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA.
AGENDA
I. Call to Order.
II. Roll Call,
III. Presentation of the Proposed Budget and Proposed Millage F
Fiscal Year 2009 -2010.
A. Explanation and discussion of Proposed Millage Rate as
compared to the rolled back rate.
B. Comment from the Commission and the public.
IV.
2009 -2010.
General Fund Tentative
Rate for Fiscal
V. Adoption of the Tentative Budget for Fiscal Year 2009-2010.
A. General Fund —
B. Enterprise Fund
VI. Public Hearing Date for Final Adoption of Millage Rate & Budget.
VII. Ordinances for first reading
A. No. 009/2; AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF
GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE GENERAL
FUND FINAL MILLAGE RATE FOR THE TOWN OF GULF STREAM FOR
FISCAL YEAR COMMENCING ON OCTOBER 1, 2009 AND ENDING ON
SEPTEMBER 30, 2010.
B. No. 009/3; AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF
GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE GENERAL
FUND BUDGET FOR THE TOWN OF GULF STREAM FOR THE FISCAL YEAR
COMMENCING ON OCTOBER 1, 2009 AND ENDING ON SEPTEMBER 30,
2010.
C. No. 009/9; AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF
GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE WATER
FUND BUDGET FOR THE TOWN OF GULF STREAM FOR FISCAL YEAR
COMMENCING ON OCTOBER 1, 2009 AND ENDING ON SEPTEMBER 30,
2010.
VIII. Adjournment.
SHOULD ANY INTERESTED PARTY SEEK TO APPEAL ANY DECISION MADE BY THE TOWN
COMMISSION WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, SAID
PARTY WILL NEED A RECORD OF THE PROEEDINGS, AND FOR SUCH PURPOSE, MAY
NEED TO INSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH
RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO
BE BASED. F.S.S. 266.0105
MINUTES OF THE PUBLIC HEARING HELD BY THE TOWN COMMISSION OF THE TOWN OF
GULF STREAM ON FRIDAY, SEPTEMBER 11, 2009 AT 5:01 P.M., IN THE
COMMISSION CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM,
FLORIDA.
I. Call to Order. Mayor Koch called the meeting to order at 5:01
P.M.
C\' II. Roll Call.
Present and
William
F. Koch, Jr.
Mayor
Participating
Joan K.
Orthwein
Vice -Mayor
Fred B.
Devitt, III
Commissioner
Muriel J. Anderson
Commissioner
Chris D.
Wheeler
Commissioner
Also Present and
William
H. Thrasher
Town Manager
Participating
Rita L.
Taylor
Town Clerk
Garrett
Ward
Police Chief
John Randolph
Town Attorney
III. Presentation of the Proposed Budaet and Proposed Millage Rate for
Fiscal Year 2009 -2010.
A. Explanation and discussion of Proposed Millage Rate as
compared to the rolled back rate.
Town Manager Thrasher presented the proposed budget and proposed millage
rate for fiscal year 2009 -2010. He explained that the proposed budget
was calculated using the roll back rate of 3.0437 and the proposed
millage rate at this time is 3.0437. Mr. Thrasher stated that it is a
balanced budget, as presented at the previous meeting, with revenues and
expenditures equaling $2,653,310.
B. Comment from the Commission and the public.
Mr. Thrasher stated that he submitted a list of actions that could be
taken if required to cut $125,000 from the proposed budget.
Commissioner Wheeler said that what he was looking for was a budget with
numbers calculated using the current millage rate that the Town
Commission would support. He said another issue is that for the past
two or three years the Town has tied compensation to the CPI in the
Southeastern US cost of living. Commissioner Wheeler said that this
year the CPI is negative 1.5 and, therefore, he could not support salary
increases at this time. Commissioners Devitt and Anderson agreed.
Commissioner Devitt asked Mr. Thrasher to explain why the Town should
not follow what was done in the past as a guideline.
`J Mr. Thrasher first commented that he believed all of his responses would
meet the $125,000 threshold, but out of his six responses, he felt that
the least offensive would be the 7% reduction in salaries rather than
adjusting each line item 3% because the Town does not have the ability
to cut every line item, such as the fire contract or office equipment
contracts. He also said, technically, as far as TRIM is concerned,
increasing the millage rate is not an increase in taxes, it is the roll
back rate, and we do not have to advertise the millage rate as a tax
increase. Mr. Thrasher said that the millage rate has increased, but
generates the same revenue as last year.
Town Commission - Public Hearing, Tentative Budget
September 11, 2010 Page 2
With regard to the CPI, Mr. Thrasher explained that the 2006/2007 CPI
was 4.2 and the wage allocation was 8.4, the 2007/2008 CPI was 2.5 and
the wage allocation was 4.8 so it was not doubling the CPI, the
2008/2009 CPI was 4.5 and the Town provided wage increases of 6 %.
O Commissioner Wheeler stated that the proposed increase in salaries is a
problem when the Town should consider salary reduction at this time.
Vice -Mayor Orthwein expressed concern in taking it away from the police
officers because the Town could lose them and end up with an inferior
Police Department, which would also be a problem. Mr. Thrasher stated
that the contracts the Town has that are geared to the CPI have not
reduced, that they recognize zero. He further stated that the average
salary increases over the past four years is 5.3 %, including the
proposed 2% proposed increase for this year, and not all employees are
receiving a 2% increase.
Mayor Koch commented that if the Town had not hired another police
officer, the money would be available for salary increases. He
suggested imposing a utility tax up to 10% on items such as electric,
kerosene, LP gas, manufactured gas, natural gas and maybe water, which
would generate revenue that could be used for salary increases. Mayor
Koch pointed out that the Town is one of the few municipalities in Palm
Beach County that does not have a utility tax and he recently heard that
the State may eliminate the option for municipalities that do not have a
utility tax in place by a certain date.
Commissioner Devitt commented that the unemployment rate in Florida is
over 10% and asked Mr. Thrasher if he thought Town employees would be
upset if they had to forfeit a salary increase this year or just happy
to have a job. Mr. Thrasher believes they would not be upset, however,
those employees on step plans will get an increase. Mr. Thrasher
emphasized the police officers, saying that throughout the County union
representation allows them, in some cases, a 5 % -8% increase and he would
like to show that the Town can represent their police officers in a
manner similar to union representation. He also pointed out that some
municipalities are giving increases to non -union employees this year
across the board and one municipality that has union representation for
general administration employees is providing a 4% increase.
Commissioner Devitt said he thought the type of police officer the Town
attracted was not one who was looking to maximize their salary, but one
who has already put their time in somewhere else and are now seeking a
low -key, less aggressive job. Chief Ward said that at one point the
Town experienced a large turnover in the police department when salary
and benefits were geared toward that type of individual. The average
stay was about 5 years, but there is higher longevity at this point. He
said that many officers came here after retirement from another
department, they are in their 40s with a family and are looking for a
better pension structure, pay structure and benefit package.
Commissioner Wheeler said that he has always supported the Chief's
staffing level and does not advocate cutting positions, but we are in
Town Commission- Public Hearing, Tentative Budget
September 11, 2010
Page 3
unusual and difficult times right now and believes that everyone should
share the pain and maybe take a 2% pay cut.
Mayor Koch again asked if the Commissioners would consider a utility tax
and the consensus was that they would like to know more about it. Mr.
Randolph said it was provided by a State Statute and you can elect to do
it. Mayor Koch said he was concerned that the State may take away the
O
option if we do not have something in place. Mr. Thrasher said it is
called the TABOR (Taxpayer's Bill of Rights) and they cap all revenues
by 1.35 %. Mr. Randolph recalled that the Commission talked about the
utility tax in the past, but did not want to tax the residents at that
time. Mayor Koch would like to address the utility tax at the next
meeting and Mr. Randolph said that he would provide information
concerning the utility tax for review.
Commissioner Devitt asked Mr. Thrasher what the impact would be without
the 2% increase. Mr. Thrasher said the total cost for increases is
$19,129. Commissioner Wheeler asked for the total payroll amount and
Mr. Thrasher said it is $1.6 million. The Commissioners asked about the
overtime budget and Chief Ward said that it is very small, that overtime
is routinely paid for court appearances, in situations when the
department is shorthanded and in the event of an incident not covered by
FEMA.
Commissioner Devitt asked what the Fund Balance will be and asked if
money from the Fund Balance could be used to make up the $125,000
shortfall. Mr. Thrasher said he projects it to be around $1.3 or $1.9
million after forgiveness of the debt.
Mr. Thrasher stated that lowering the millage rate would compound
problems for future years if you look at roll back rate because the Town
will generate the same revenue next year as it creates for this year.
Commissioner Wheeler said that last year's millage rate was 2.8655 and,
if left there, revenues will be down $125,000. If real estate values go
back up and we leave the millage rate alone, revenues will increase.
Mr. Thrasher said that the Town would then have to advertise a true tax
increase.
Commissioner Wheeler moved to cut 2.5% from the $1.6 million proposed
for salary and benefits in whatever manner the Town Manager decides to
allocate that, but advising a 2.5% across - the -board reduction with no 2%
salary increases, use the fund balance to cover the remaining shortfall
in the budget over last year's millage rate and no increase in the
millage rate. There was no second.
Mr. Thrasher stated that by statute, on the record, because we were
below the roll back in previous years, we could have used an adjusted
allowable roll back rate of 3.2381, $81,000 additional revenue.
Commissioner Devitt proposed that there be no salary increases, use last
year's millage and, if necessary, use the Fund Balance to cover any
Town Commission - Public Hearing, Tentative Budget
September 11, 2010 Page 4
shortfall. Vice -Mayor Orthwein commented that the Fund Balance should
be used for infrastructure and repairs only. Commissioner Wheeler
commented that payroll has increased 25% in the last 3 years and
Commissioner Anderson commented that Gulf Stream was the highest, giving
6% increases. Mr. Thrasher stated that a town used as an example, whose
components were the CPI (Competitive Price Index) to stay competitive
O with the market, gave pay - per - performance of up to 7 %, so in one year it
was over 10 %, maybe close to 12 %. He said that the Town's average
increase in all the years is 5.3% total, which includes the CPI, or per
annum. Commissioner Wheeler commented on the use of the Fund Balance
saying he agrees that it should be used for extraordinary purposes, but
believes this is an extraordinary year, which is why he recommended
using the Fund Balance to cover a shortfall if necessary. Commissioner
Devitt said there is a good possibility that the Town may not have to
resort to using the Fund Balance. Mr. Thrasher noted that there is
$37,588 in budgeted contingencies. He said that when you look at all
line items, other than labor and fixed or contracted services, you are
dealing with $500,000 which cannot absorb the $125,000 reduction.
Vice -Mayor Orthwein returned to the Utility Tax which was previously
addressed by Mayor Koch, saying that if this tax was implemented we
could go back to roll back, and if we do not do it now, we may not have
the option. Mr. Thrasher said that there is a bill which will be on the
referendum for the coming election and believes it will pass. Ms.
Taylor said that, to date, there are not enough signatures to get it on
the referendum, but they are close. If they do not have enough
signatures for the 2010 election, they will for the next election.
Mayor Koch said he would like to get this done before the end of the
year.
Commissioner Anderson said she would not want to cut payroll, but
recommends that there be no raises and would like to maintain last
year's millage rate.
Commissioner Devitt moved and Commissioner Anderson seconded that there
will be no increase in salaries, other than for those on the step plan,
the Town will maintain last year's millage rate and use the Fund Balance
to make up for any shortfall. All voted AYE.
Commissioner Wheeler moved and Commissioner Devitt seconded to take a
ten- minute recess. The Budget Hearing recessed at 6:07 P.M. and
reconvened at 6:22 P.M.
V. Adoption of the General Fund Tentative Millage Rate for Fiscal
Year 2009 -2010.
Commissioner Wheeler moved and Commissioner Anderson seconded to adopt
the General Fund Tentative millage rate of 2.8655 for fiscal year 2009-
2010. Roll Call: Vice -Mayor Orthwein; Aye, Comm. Devitt; AYE, Comm.
Anderson; AYE, Comm. Wheeler; AYE and Mayor Koch; AYE.
Town Commission - Public Hearing, Tentative Budget
September 11, 2010 Page 5
V. Adoption of the Tentative Budget for Fiscal Year 2009 -2010.
A. General Fund
Commissioner Anderson moved and Commissioner Devitt seconded to adopt
the Tentative Budget in the General Fund for Fiscal Year 2009 -2010 as
presented in the amount of $2,633,759. Roll Call: Vice -Mayor Orthwein;
Aye, Comm. Devitt; AYE, Comm. Anderson; AYE, Comm. Wheeler; AYE and
Mayor Koch; AYE.
B. Enterprise Fund
Commissioner Devitt moved and Commissioner Anderson seconded to adopt
the Tentative Budget in the Enterprise Fund for fiscal year 2009 -2010 as
presented in the amount of $865,000. Roll Call: Vice -Mayor Orthwein;
Aye, Comm. Devitt; AYE, Comm. Anderson; AYE, Comm. Wheeler; AYE and
Mayor Koch; AYE.
VI. Public Bearing Date for Final Adoption of Millage Rate & Bud
Town Clerk Taylor announced the date of the public hearing for fine
adoption of the millage rate and budget is scheduled for Wednesday,
September 23, 2009 at 5:01 P.M.
VII. Ordinances for first reading.
A. No. 009/2; AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF
GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE GENERAL
FUND FINAL MILLAGE RATE FOR THE TOWN OF GULF STREAM FOR
FISCAL YEAR COMMENCING ON OCTOBER 1, 2009 AND ENDING ON
SEPTEMBER 30, 2010.
Town Clerk Taylor read Ordinance No. 009/2 in its entirety. There were
no comments from the public.
Commissioner Wheeler moved and Commissioner Devitt seconded to approve
the adoption of Ordinance No. 009/2 on first reading. Roll Call: Vice -
Mayor Orthwein; Aye, Comm. Devitt; AYE, Comm. Anderson; AYE, Comm.
Wheeler; AYE and Mayor Koch; AYE.
B. No. 009/3; AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF
GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE GENERAL
FUND BUDGET FOR THE TOWN OF GULF STREAM FOR THE FISCAL YEAR
COMMENCING ON OCTOBER 1, 2009 AND ENDING ON SEPTEMBER 30,
2010.
Town Clerk Taylor read Ordinance No. 009/3 in its entirety. There were
no comments from the public.
Vice -Mayor Orthwein moved and Commissioner Anderson seconded to approve
the adoption of Ordinance No. 009/3 on first reading. Roll Call: Vice -
Mayor Orthwein; Aye, Comm. Devitt; AYE, Comm. Anderson; AYE, Comm.
Wheeler; AYE and Mayor Koch; AYE.
C. No. 009/4; AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF
GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE WATER
FUND BUDGET FOR THE TOWN OF GULF STREAM FOR FISCAL YEAR
COMMENCING ON OCTOBER 1, 2009 AND ENDING ON SEPTEMBER 30,
2010.
Town Clerk Taylor read Ordinance No. 009/4 in its entirety. There were
no comments from the public.
Town Commission - Public Hearing, Tentative Budget
September 11, 2010 Page 6
Vice -Mayor Orthwein moved and Commissioner Devitt seconded to approve
the adoption of Ordinance No. 009/4 on first reading. Roll Call: Vice -
Mayor Orthwein; Aye, Comm. Devitt; AYE, Comm. Anderson; AYE, Comm.
Wheeler; AYE and Mayor Koch; AYE.
For the record, Vice -Mayor Orthwein and Mayor Koch directed Mr. Randolph
to provide information concerning the Utility Tax at the next regular
meeting.
VIII. Adjournment. Mayor Koch adjourned the meeting at 6:35 P.M.
c�
Gail C. Abbale
Administrative Assistant