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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