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HomeMy Public PortalAbout09/15/2011 * Public Hearing, Tentative Budget Meeting\, September 7, 2011 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 THURSDAY, SEPTEMBER 15, 2011 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 Rate for Fiscal Year 2011 -2012. A. Explanation and discussion of Proposed Millage Rate as compared to the rolled back rate. B. Comment from the Commission and the public. IV. Adoption of the General Fund Tentative Millage Rate for Fiscal Year 2011 -2012. V. Adoption of the Tentative Budget for Fiscal Year 2011 -2012. A. General Fund B. Enterprise Fund Vi. Public Hearing Date for Final Adoption of Millage Rate & Budget. VII. Ordinances for first reading. A. No. 011/4; 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, 2011 AND ENDING ON SEPTEMBER 30, 2012. Q B. No. 011/5; 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, 2011 AND ENDING ON SEPTEMBER 30, 2012. C. No. 011/6; 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, 2011 AND ENDING ON SEPTEMBER 30, 2012. 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. 286.0105 MINUTES OF THE PUBLIC HEARING HELD BY THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, ON THURSDAY, SEPTEMBER 15, 2011 AT 5:01 P.M., IN THE COMMISSION CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA. I. Call to Order. The Meeting was called to order by Mayor Koch at 5:01 P.M. II. Roll Call. Present and William F. Koch, Jr. Mayor Participating Joan K. Orthwein Vice -Mayor Muriel J. Anderson Commissioner Fred B. Devitt, III Commissioner Chris D. Wheeler Commissioner Also Present and William H. Thrasher Town Manager Participating Rita L. Taylor Town Clerk Garrett J. Ward Police Chief John Randolph Town Attorney III. Presentation of the Proposed Budcet and Proposed Millace Rate for Fiscal Year 2011 -2012. A. Explanation and discussion of Proposed Millage Rate as compared to the rolled back rate. Town Manager William Thrasher stated that the Mayor and Commissioners have been provided with the tentative budget for Fiscal Year 2011/2012 dated 9/15/11. He said the budget is predicated on a Millage Rate of 2.9265, which is the calculated roll back rate, or roll up rate, meaning that the Town is generating basically the same revenue as the previous year. The current Millage Rate is 2.8655. Mr. Thrasher said the 2012 taxable values have decreased by approximately 2 %, he is proposing a wage increase to all employees of 2.5 %, the fire contract with Delray Beach has increased by $15,035 (5 %) and he is proposing that the Town's portion of the Undergrounding Assessment be prepaid from reserves in the amount of $450,000. Mr. Thrasher also noted that the Waste Management contract has increased by 7.25 %. He said the current budget, which is $3,103,756.00, is based on a millage rate, or roll back rate, of 2.9265. B. Comment from the Commission and the public. Mayor Koch commented that this is the second budget the Town Manager has presented to the Commission. He said there is a big difference between the first and second proposed budget and asked Mr. Thrasher to explain. O Mr. Thrasher said the biggest change is in his request that the Town prepay their portion of the undergrounding assessment from reserves, which is approximately $450,000. He said rather than borrowing the money and paying it back over time he is recommending it be paid up front out of reserves and, therefore, the budget went from $2,653,756 up to $3,103,756. Commissioner Wheeler said he feels that would be a good use for reserve funds and agreed it should be paid up front out of reserves. He also thanked Mr. Thrasher for adding the "Projected" column in the budget and suggested that the Commission look at the budget once a quarter to see how we are doing and take action mid -year if we are off track. The Town Commission - Public Hearing, Tentative Budget September 15, 2011 Page 2 Commissioners agreed and the Mayor instructed the Town Manager to do so. Mr. Thrasher said the first three months of the budget are askew due to certain unforeseen fees and costs. Commissioner Wheeler said the added column would show that, which is why it would be a good idea to review from time to time. Mr. Thrasher said it would challenge him and he would do his best. OCommissioner Devitt asked if the only other way to pay the Town's undergrounding assessment would be installments if not paid up front. Mr. Thrasher confirmed that and said the deadline to prepay the assessment is November 1, 2011. Mayor Koch asked if staff should send notices to property owners. Mr. Thrasher said the first Notice has gone out to residents informing them of their assessment, their payment options and the deadline to prepay. He said the "Second And Final Notice" will be mailed on September 30th, dated October 1, 2011. Commissioner Devitt asked what the Town owns to bring their assessment to $450,000. Clerk Taylor said the Town owns 5 or 6 parcels. Mr. Thrasher said the real cost is associated with those properties on the north end that abut the Town and who will receive benefits from our undergrounding. He said by law that portion of the cost cannot be paid by property owners in the Town. Mr. Thrasher stated that, besides being asked to include the "Projected" column, he was asked to explain why Building Maintenance is so high. He said the answer is that General Liability Insurance, which is paid quarterly, was miscued in the accounts payable process and put into Building Maintenance. Subsequent to that, it has been backed out and placed in the proper insurance column. Mayor Koch asked about the Police /Labor portion of the Budget on Page 4, specifically Part -Time, Overtime and Sick Leave, and wanted to know how much of the budgeted amount is actually used. Chief Ward said they do come close to using the budgeted amount explaining that the Police Department uses overtime for mandatory training and to cover sick leave and vacations. He said a good portion of that would be used in the event of a hurricane or another type of disaster. Chief Ward said their part -time Code Enforcement /Police Officer has a lower hourly rate and receives no benefits. Mr. Thrasher stated the audited Financial Statement as of September 30, O2010 had an unreserved fund balance of $1,425,000, and he estimated that at the end of the Fiscal Year September 30, 2011 the unreserved fund balance will be $1,300,000. He said at the end of Fiscal Year September 30, 2012, after making the payment of $450,000, the unreserved fund balance will be $850,000. He said these figures are approximate. Mayor Koch brought attention to the proposed 2.5% salary increase for personnel. Commissioner Wheeler asked Mr. Thrasher to put that in context of the surrounding comparable municipalities such as Ocean Ridge, Delray Beach, Boynton Beach and asked what they are doing with salaries. Mr. Thrasher said he looked at various components such as what other municipalities are doing and, based on current information he Town Commission- Public Hearing, Tentative Budget September 15, 2011 Page 3 has received, Gulf Stream is proposing 2.5 %, Highland Beach is proposing 5.0 %, Manalapan is proposing 2.0 %, Ocean Ridge is proposing 0% and he did not look at Delray. He said another component was an article in the Associated Press dated August 22, 2011 which reports economists have stated that in the Calendar Year 2012 the majority of U.S. companies are providing a 2.8% increase in salaries with a caveat that salaried O executives are also expecting an increase. Mr. Thrasher said the 2.5% salary increase he is proposing is mid -point between what other barrier island municipalities are offering. Vice -Mayor Orthwein asked whether the other municipalities were offering longevity pay on top of salary increases and is it an annual bonus. Mr. Thrasher said it is not a bonus and briefly summarized how longevity pay came about. It was the consensus of the Commissioners that this matter had been discussed in the past and another explanation was not necessary. Commissioner Wheeler said if we kept the tax rate the same as last year, his calculation is that it would be about $40,000. He asked Mr. Thrasher where he would find $40,000 in the budget if they did not raise taxes this year. Mr. Thrasher said he would not recommend any budget cuts because it would end up a deficit budget. He said for seven of last ten years we have gone to roll back and four of those seven years we have gone below the roll back rate. Commissioner Wheeler asked Mr. Thrasher about cutting salary increases, travel per diem, office supplies, etc. Mr. Thrasher said he would zero in on Capital and Commissioner Wheeler said he would not allow that. Commissioner Devitt agreed that cuts can be made if it was necessary and suggested getting new bids on lawn maintenance for example. Commissioner Wheeler said he appreciates the work that was put into this budget, but he would like to have an opportunity to opine on Mr. Thrasher's recommendations and asked Mr. Thrasher to show where he would cut the budget $30,000, $20,000 or even $10,000. Mr. Thrasher asked for a compromise that the millage rate he is proposing is the millage rate we use. Commissioner Wheeler said that is not a compromise, it is raising taxes on residents. Mr. Thrasher said he would not move from his proposed millage rate because the millage rate cannot continue to be the same rate as last year's revenue. Vice -Mayor Orthwein suggested that Mr. Thrasher provide this information at the second budget hearing scheduled for September 22nd. She said the CTown is putting out a lot of money right now, contracts from Delray Beach have gone up significantly and the Town needs capital money. Vice -Mayor Orthwein said she would hate to see the Town run out of money and have to take it out of the fund balance. Commissioner Wheeler said he does not have enough information to make a decision. Mr. Thrasher said next year things may be very different with the annexed area, but he is not certain of that because of State Laws relating to annexation and who gets the assessed property. There will be an 18 -month period with expenditures and no revenues to offset it. Mr. Thrasher said he is extremely concerned about lowering the millage rate because we would be setting ourselves up for potential problems in the short to near term. He said until there is improvement he cannot make a recommendation to Town Commission- Public Hearing, Tentative Budget September 15, 2011 Page 4 lower the millage rate. Commissioner Devitt asked Mr. Thrasher to come up with a list where cuts could be made with his recommendation against it. Mr. Thrasher said he would do that. Mr. Robert Ganger inquired about the money the Town may be required to pay the Ethics Committee for the undergrounding contracts and asked if O it is a budget line item. Mr. Thrasher stated that the Inspector General costs are not included in the Town's budget. Mr. Randolph said some towns have added a line item for those costs and others have not. Mr. Ganger asked where the difference in funds will go in the event the cost of the undergrounding project is less than what has been assessed. Mr. Thrasher said it is the Town's intention that it will be trust money to be redistributed back to the payers. Mr. Ganger said he commends the Commission for trying to hold the millage rate back and not raise taxes. Mr. Thrasher said seven of the last 10 years we have kept revenues unchanged, and four of those seven years we went below the roll back rate. He said he believes that no other municipality in the vicinity has done that and, because we have been so conservative in the past, we cannot continue to do so. Mr. Thrasher said the millage rate he is proposing is the roll back rate. Mr. Ganger commented that he would like to see the Town get money back from the County for fire services in the annexed area. Mayor Koch said it is possible that the Palm Beach County Sheriff and the Fire Department will not pay those funds to the Town. Vice -Mayor Orthwein and Commissioner Devitt asked if the Town could take legal action. Mr. Randolph said he would look into it. IV. Adoption of the General Fund Tentative Millaae Rate for Fiscal Year 2011 -2012. Clerk Taylor stated that a first reading is required for adoption of the General Fund Tentative Millage Rate for Fiscal Year 2011 -2012. The Commissioners requested budget cut recommendations from Mr. Thrasher for discussion prior to adoption of the budget. Mr. Randolph said if Mr. Thrasher comes back to Commission with their requested recommendations and the Commission agrees that there will be no changes, second reading will go forward at that time. If there are changes, the next reading will become the first reading. Mr. Randolph asked Clerk Taylor about the time frame for a second reading and Clerk Taylor said they could not have a second reading without a special meeting. Mr. Randolph asked if there is enough time from the standpoint of the Millage Law and Clerk Taylor said there is time. Commissioner Wheeler suggested going forward with the first reading as presented by the Town Manager. He said if any changes are made at the next hearing, they will have first reading and then a special meeting prior to second reading. Clerk Taylor said if we adopted the budget by resolutions rather than by ordinances as done in the past, we would only need a final reading. Mr. Randolph suggested moving forward by ordinance now with first reading and if there are no changes at the next O Town Commission - Public Hearing, Tentative Budget September 15, 2011 Page 5 hearing it can be done by second reading. He said between now and the next budget hearing staff should look into whether or not we can adopt the budget by resolutions. Linda Harvel said if the second reading becomes the first reading and we cannot adopt by resolution, it will be necessary to advertise again 2 - 5 days prior to the hearing for second reading. Vice -Mayor Orthwein moved and Commissioner Anderson seconded to adopt the General Fund Tentative Millage Rate of 2.9265 for Fiscal Year 2011- 2012. There was no discussion. All voted AYE. V. Adoption of the Tentative Budget for Fiscal Year 2011 -2012. A. General Fund Vice -Mayor Orthwein moved and Commissioner Anderson seconded to adopt the Tentative Budget for Fiscal Year 2011 -2012 of $3,103,756. There was no discussion. All voted AYE. B. Enterprise Fund Commissioner Devitt moved and Vice -Mayor Orthwein seconded to adopt the Tentative Water Fund Budget of 961,900 for Fiscal Year 2011 -2012. There was no discussion. All voted AYE. VI. Public Hearing Date for Final Clerk Taylor announced that the next of the Millage Rate and the Budget is 22, 2011 at 5:01 P.M. Public Hearing for Final Adoption scheduled for Thursday, September VII. Ordinances for first reading. A. No. 011/4; 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, 2011 AND ENDING ON SEPTEMBER 30, 2012. Clerk Taylor read Ordinance No. 011/4 in its entirety, stating that the Town Commission hereby adopts the General Fund Final Millage Rate 2.9265 mills, the final levy of 2.9265 mills is the rolled back rate and the final millage rate of 2.9265 is for the calendar year 2012 to fund expenses for the fiscal year commencing October 1, 2011 and ending September 30, 2012. Commissioner Wheeler moved and Vice -Mayor Orthwein seconded to adopt the General Fund Millage Rate of 2.9265, Ordinance No. 011/4, on first reading this 15th day of September, 2011. There was no discussion. All voted AYE. B. No. 011/5; 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, 2011 AND ENDING ON SEPTEMBER 30, 2012. Clerk Taylor read Ordinance No. 011 /5 in its entirety, stating that the Commission hereby adopts the General Fund Budget of $3,103,756 attached hereto as Exhibit A, the proposed expenditures in the final budget are $3,103,756, the budget is based upon taxable value of real property of $651,912,948, personal property of $4,463,108 and anticipated non -ad valorem revenue of $1,250,371. Commissioner Wheeler moved and Vice- Town Commission - Public Hearing, Tentative Budget September 15, 2011 Page 6 Mayor Orthwein seconded to adopt the General Fund Budget of $3,103,756, Ordinance No. 011/5 in a regular, adjourned session on first reading this 15th day of September, 2011. There was no discussion. All voted AYE. C. No. 011/6; 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, 2011 AND ENDING ON SEPTEMBER 30, 2012. Clerk Taylor read Ordinance No. 011/6 in its entirety, stating that the Town Commission hereby adopts the Water Fund Budget of $961,900 attached hereto as Exhibit A, with proposed expenditures of $961,900 and proposed revenues for the Water Fund of $961,900. Commissioner Anderson moved and Vice -Mayor Orthwein seconded to adopt the Tentative Water Fund Budget, Ordinance No. 011/6 in a regular, adjourned session on first reading this 15th day of September, 2011. There was no discussion. All voted AYE. Mr. Thrasher mentioned that the Utility Fund is not generating surplus funds and the City of Delray Beach has not yet provided information concerning whether or not there will be an increase in water. Linda Harvel said she received notice that there will not be an increase. Mr. Thrasher recommended that the Town begin generating a surplus in the Utility Fund in the event something breaks, otherwise the repair costs will come out of the General Fund. Commissioner Wheeler asked how much money the Town should have in reserves to replace the utility system if it shuts down. Mr. Thrasher said there should be about $2 million dollars in reserves. Commissioner Wheeler figured the Town should be generating about $75,000 a year in reserves to have enough money in an account to replace the system. Commissioner Devitt asked what other municipalities are charging their residents for water and he asked Mr. Thrasher if the Town is getting their water from Delray for less than Delray charges their residents. Mr. Thrasher said he did not know. Commissioner Wheeler said they should devote a substantial portion of a Commission Meeting for a utility discussion. Mr. Thrasher said they could have this discussion at the next regular Commission Meeting. Mr. Ganger said the Coalition is preparing a matrix of all costs to residents on the barrier island, including water, and they will share Othis information with the Commission when it is ready. VIII. Adjournment. Commissioner Devitt moved and Commissioner Wheeler seconded to adjourn. The meeting was adjourned at 6:10 P.M. it C. Ab ale Administrative Assista t