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