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Minutes 07-26-10 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD BUDGET WORKSHOP HELD ON MONDAY, JULY 26, 2010 AT 6:30 PM IN THE LIBRARY PROGRAM ROOM, CITY LIBRARY, BOYNTON BEACH, FL PRESENT: Jose Rodriguez, Chair (arrived 6:44 p.m.) Marlene Ross, Vice Chair Woodrow Hay Steve Holzman William Grlove Lisa Bright, Executive Director James Cherof, Board Attorney 1. Welcome by Board Chair Rodriguez Vice Chair Ross acted as Chair and called the meeting to order at 6:31 p.m. 2. Invocation The invocation was given by Mr. Hay, followed by the Pledge of Allegiance to the Flag. 3. Budget Overview The budget overview was given by Lisa Bright and Susan Harris. Ms. Bright explained the Community Redevelopment Agency's budget was based on two factors which were the assessed valuations and the final millage rates set by the City and the County. The budget presented was a draft based on the current millage rate. The City would be making their final adjustments later, as would the County, and the Community Redevelopment Agency would make their final budget adjustments after the millage rate was set by both entities. The Community Redevelopment Agency receives its revenue once a year in late December. Staff was looking for direction and consensus on projects and programs. Ms. Harris reviewed a chart which was a snapshot of the Community Redevelopment Agency's revenues and other funding sources. The Community Redevelopment Agency receives Tax Increment Financing of $5.5 million, comprising about 55% of their funding. The marina provided revenues of another 10%, and their funding sources comprised another 32%. The other funding sources were rollovers, encumbered funds, and grant revenues they expect to receive in the next fiscal year. The total revenues were $9,413,574. 1 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26, 2010 The expenses were divided between debt service charges which were at 29%, and which was a reduction this year due to a loan dropping off in January. The salaries and benefits were 8% which was low and the reverse of municipalities. The Project fund comprised 43% of the expenses, or $1.9 million, which included the marina. Ms. Harris clarified the next version of the budget would separate out the marina. The amount also included items such as building and property maintenance, insurance and professional services, which would also be broken down. The current asset valuations reflected 19%. Next year, it was anticipated to be13% given by the County. Revenues and asset valuations were decreasing and the 13% was reflective of that. It would be necessary for the Board to reduce expenses. The total general fund operation line item was reduced by 13%. The Community Redevelopment Aqency Board budqet was reduced by 39%. Staff removed $15,000 for the electronic agenda and computers. They anticipate having seven new members, but it was undecided whether the Board would use the electronic agenda. Mr. Holzman requested further information. The minutes for the Board's regular and special meetings were listed as $7,500. Ms. Harris explained the $7,500 was the estimated amount from the budget. The actual amount was listed on the top of the page which was $8,200. The amount was strictly for the minutes and nothing for the electronic agenda and computers. Staff reduced costs associated with conferences and seminars. The items were for new board members to attend the ABC of CRAs, which was a one-day course held in October. The conference was also where the Board received their statewide award. It provided great educational materials. The meeting locations varied in the past but it was anticipated Orlando would probably become the permanent location. Mr. Holzman questioned the layout of the budget and it was agreed the estimate and the actual would be more easily identified. Savings for conferences, meetings and seminars came from Board Training Workshops, which were reduced from $5,000 to $2,500 for the next upcoming year. Ms. Harris agreed to provide details of what funds were spent on the different events. (Chair Rodriguez arrived at 6:44 p.rn.) This year staff allocated $10,000 for the entire fiscal year for the Florida Redevelopment Association Conference. Ms. Harris agreed to provide further details because they went over budget. This occurred because staff was unable to predict how many Board members would attend the conference at the time the budget was finalized. It was noted four or five members went to the State-wide conference in Orlando when staff received their award. 2 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26, 2010 Chair Rodriguez had a question about community donations. Ms. Harris agreed to provide further details regarding which organizations the funds were for, but commented the items were approved by the Board. She budgeted $7,000 for community support items that come before the Board or miscellaneous activities that the Board might want to undertake. He had a question about the delivery of Board member materials. He thought at some point the members should pick up their materials or receive them electronically. Once the Board packets were completed, the materials were put online. Chair Rodriguez suggested the members save the information on the hard drive. The delivery of the materials to members' homes was an added expense. He urged the members to clean up everything as much as possible. He commented last year, they budgeted for an automated agenda and he thought they should do it before the end of the year and it was already in the budget. Vice Chair Ross expressed it was not a pressing issue. If a new Board was established they could address it then. Mr. Orlove commented the City handles the agenda via a flash drive and had it accessible. Mr. Hay commented when the discussion was held, it was not pressing and the Board decided to wait. Chair Rodriguez explained this Board brought it up, the Director did not have time to do it then and the Board backed down. The funding for the electronic agenda and computer was removed from next year's budget. None of those funds were spent. Mr. Hay felt it was a new Board decision. Chair Rodriguez disagreed. Vice Chair Ross expressed the agenda did not have to be such a divisive item. Ms. Bright explained they could put it on a flash drive and deliver it to City Hall on Friday. Chair Rodriguez requested they receive the flash drive on Thursday since the copies would not have to be prepared. There was discussion about using the flash drive. The Board already had computers and staff would try to get packets out by Thursday, end of business. Staff will email the members when the flash drives are delivered to City Hall. Chair Rodriguez commented the Board was in a crunch time, financially speaking. The Tax Increment Financing dollars were decreasing proportionate to the City's funds and they should be mindful of little things. He suggested the members be really focused on what they would accomplish next year. There would be funds available to use and there were four areas that needed redevelopment that needed focus. Those areas were North Federal Highway, Ocean Avenue, MLK Boulevard, and Seacrest and Boynton Beach Boulevards. He explained those areas needed the most attention. He proposed at the end of the meeting that they allocate dollars specifically for those areas. He explained they did not have to decide specifically what they would do with the funds, but they could turn their concepts to the CRA staff and they request proposals for projects that would work in those areas. The Holiday House was beginning and there were RFPs issued for MLK and Seacrest Boulevards. There would be work on the Old High School and there should be focus on Boynton Beach Boulevard. He explained by thinking 3 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 ahead, the members could focus on those areas and allocate dollars specific to those areas. Based on the dollars they allocated, staff could bring back proposals to the Board. It provided a framework for the budget. By doing so and by being mindful of other things they do, they are spreading themselves thin. He commented there was money spread all over. If they continued in this process, they would never raise the bar and only accomplish little things. Mr. Hay understood the Chair's comments and explained it would be nice if they could see the future but they did not have all the pieces of the puzzle. By looking at the City budget, it appeared there may be construction of a City Hall within the Community Redevelopment Agency district. Although he wanted to see development in the district, it did not make sense to pay double the rent for Holiday House and for that money to be going to a developer when the staff could be housed in a new City Hall and the revenue could go to the City. He did not want to set up a blanket amount without a plan, especially when changes such as a new Board would come in and it was not the direction he wanted to move in at the this time. Chair Rodriguez expressed the way to make a significant impact was to allocate a large amount of dollars to specific areas and have the staff develop those areas. He commented he had proposed housing the CRA in the City Hall but Mr. Hay was opposed. He explained the Board could revisit the matter but if the Board kept doing what they were dong, they would effect little improvements. To get the most from the dollar, they needed to allocate significant dollars. He pointed out the Board allocated a ton of money to MLK and only now they were starting to see results. He explained that was the plan. Focus on the funding and then do the work. He requested the members have that vision and allocate significant dollars because it worked well with MLK and Seacrest Boulevards. Mr. Hay responded that was before Chair Rodriguez had the Board spend double the money on Holiday House. He expressed since things have changed, he sees things differently based on the decisions made regarding the City's budge which was looking at having a new City Hall. The logical decision would be to go ahead and decide on having a new City Hall within the next year. Chair Rodriguez's recollection of Mr. Hay's position was he was not in favor of a new City Hall. Mr. Hay clarified he is in favor of moving the Community Redevelopment Agency into a better facility. If it meant giving dollars to a developer versus income coming into the City, then he was in favor of bringing it to the City. The Executive Department Budqet reflected an overall reduction of $33,755 or 13%. Ms. Bright noted a typographical error in membership dues. The membership dues contained the Society of Human Resource Management (SHRM) organization which was also listed again in Finance. The organizations keep staff informed in the market. Ms. Bright expressed they could drop some of the memberships, but suggested maintaining membership in the Florida Redevelopment Association, the Chamber of Commerce and the Business Development Board, and if a conference was held and 4 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 they wanted to attend, they could pay an extra fee to attend. Mr. Orlove explained if the membership was associated with accreditation and networking with other professionals, it would be beneficial, otherwise subscriptions to international councils may not be necessary. Chair Rodriguez explained the Business Development Board was a Palm Beach County Agency and at one point they were asking for funds. He had inquired if the agency ever located a business in Boynton Beach and the answer was no. He was not sure the allocation to the county agency was needed. Vice Chair Ross inquired if the Chamber of Commerce coordinated with the Business Development Board. Ms. Bright explained they market Palm Beach County. The Council works directly with Enterprise Florida and the Alliance which indicates which industries are interested in moving to Palm Beach County, which assist staff to market Boynton Beach. Mr. Hay suggested keeping those three memberships and eliminating the others. Chair Rodriguez differed and he indicated it was paid for through taxes. Ms. Bright explained they provided guidance on barriers to development and identify specific elements that detract from development. They also were on the pulse to identify what they needed to change. The Board provided resources as opposed to tangible deliverables. As a county agency, they should have access to that information. Chair Rodriguez requested Ms. Bright provide an analysis of the services they provide through their membership versus the basic services they should be receiving for free. Ms. Bright agreed to provide an analysis of what they provide to their membership. Delivery Services were Fed Ex services they use when they have closings. The Cell Phone increase was due to omitting the cell phones for the administrative services manager. The Community Redevelopment Agency cell phone policy provided for reimbursement of $60 per month if they used their own cell phone, or the member received a Blackberry. Chair Rodriguez requested what the benefit was for Ms. Harris or the Administrative Services Manager to have the cell phone allowance when they were in the office. Ms. Harris explained she uses it when she is on the road or after hours. Her plan was she did not use it for calls. It was a government rated plan just for the Blackberry. If she used it for a phone call, she paid for the call. She explained it was more convenient than a laptop. Mr. Holzman inquired if the members could setup the emailsto his cell phone. Ms. Harris noted her cell phone was old and did not have that capability. There was discussion all nine members had a cell phone. It was explained Ms. Biscuiti needed a cell phone because she is out and about for events, as did Ms. Biscuiti's assistant, and Mr. Simon was often required to travel off-site as well. Ms. Walsh also had to be off-site for the public relations work. Chair Rodriguez requested staff go back and re-evaluate which staff needed cell phones. He noted that although the position titles were different with the Community Redevelopment Agency, he noted the administrative assistants at the City did not have cell phones. 5 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 Chair Rodriguez also commented he had requested a breakdown of the Executive Department's Budget. Ms. Harris explained it was more fully explained on page 14, the Salary Schedule and related Personnel expenses. Ms. Harris explained staff was aware all were required to make sacrifices to balance the budget, and staff voluntarily removed their deferred compensation, which reduced their budget personnel costs. Additional figures were also provided that included the reduction in deferred compensation and excluded any car allowances. The Community Redevelopment Agency, through an Interlocal Agreement with the City, used the same vendor for their benefits and paid the same rates as the City. These benefits included medical, dental, vision, and life. The employee benefits were paid for by the agency, and dependents were paid for by the employee. The Assistant Director and Ms. Bright also agreed to forfeit their car allowance in order to reduce the budget by 13%. Mr. Hay hoped the City would follow suit. Chair Rodriguez noted the City was still in deliberations but relinquishing the benefit was a good example. The Finance Department budget was reduced by $22,000 or 12%. There was discussion about membership dues. The Florida Government Finance Officers' Association dues were for Ms. Harris and Ghishlane Villanueva. The Council of Development Finance Association could be dropped. The Society for Human Resource Management could be dropped due to entering into an Interlocal Agreement with the City for those services. The Government Finance Officers' Association may be able to be dropped. Ms. Harris would research if she needed to retain them for certification purposes. She may just have to pay more for testing. The contractual expenses budget was reduced via the elimination of the ADP payroll services where the City would perform payroll services. The expenses for the Department of Community Affairs needed to be retained. The Planninq Department budoet was reviewed. Salaries for Ms. Brooks and Mr. Simon were from this budget. The budget was reduced $33,000 or 13%. There was a question regarding why they were adding membership fees for the MLS and Realtors Association. Ms. Brooks explained they market some of their own properties, and it helps them to have access to pricing information so they could develop their pro formas. They do not act as a realtor. Mr. Simon is a realtor but he does not act as the realtor for the agency. The car allowance was removed for both staff members. It was noted the employees who use their vehicles for business purposes do receive a car allowance commensurate to the federal mileage rates. It was noted Mr. Simon's reimbursements for mileage varied between $75 and $100 per month. Mr. Holzman expressed the presentation was lacking. He expressed adding where the numbers come from on the information would have been beneficial. Ms. Harris agreed to provide the estimate number in the details. It was also noted the Budget Hearing is typically heard on August 16, 2010. Ms. Bright agreed the information needed to be accurate but staff did not have adequate time because the workshop was moved to July 26, 2010. Ms. Bright commented they provide their books to an auditor, who knows where the money is going every day. 6 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 The Marketinq Department budqet was reduced by $20,283 or by 12%. A request was made to break down the individual items on the detail sheets for the Board. The department consisted of one full-time and a half-time position. Mr. Holzman inquired about the Marketing Director, Margee Walsh. It was explained Ms. Walsh sends out the press releases and Public Service Announcements. He inquired about Ambit Marketing, the Community Redevelopment Agency's consultant. Ms. Walsh explained contingent on the workload and deadlines, she receives assistance from the consultants on special projects. The fees to pay for the service were contained under Professional Services. Ms. Harris explained she keeps the department budgets clean in terms of overhead. The budgeted amount encompassed all the services contained in the scope of services and there was no limit to what Ambit would issue. The contract amount next year was for $30,000, primarily for website services since social media was widely-used. The funding would pay for the completion of the third year of the contract. Staff tries to do as much in-house as possible and only used Ambit for special occasions. Ms. Bright agreed to provide a breakdown of what they provided and email it to Mr. Holzman. They also had media contracts that Ms. Walsh did not have access to. The subscription expenses were discussed. It was thought many items were online in the newspaper, but not all of them were and hard copies were needed. Ms. Bright explained last year they used their copier in-house for flyers as opposed to paying a printer since it was much better and cost effective. The Special Events budqet was reduced by almost $5,000 or 4%. The reason for the smaller reduction in this department, compared to the others, was because of contractual services. Ms. Biscuiti needed labor for the events, such as an electrician for the holiday events, or set-up and break-down for events. Staff tries to allocate funds by department which would provide a more accurate depiction of what the departments "cost." Chair Rodriguez did not know if "Contractual Services" was the correct description for set-up services; it could be event support. Ms. Harris explained they were following the general ledger, but they would call it as it was in the Budget Book. The Insurance budget was reduced $15,090 or 15% due to savings on their property and liability coverage. Last year, the insurance company sent an individual to review the properties to determine if they were insured at the correct rate. As a result of that assessment, the rates dropped. She explained they would have a more accurate number in September and they worked with Chuck Magazine, Risk Management Director. They issued an RFQ for Brokerage Services three years ago and they chose a broker from the RFQ, the Preferred Government Insurance Trust, who writes their coverage. Workers Compensation was excluded from the coverage because their premium was not high enough. Special Events were covered under a different provider as was the marina. All else was covered under Preferred Government Insurance Trust. The Public Officials Liability and Employment Practices Liability item was the Director's Insurance. The Employment Practices Liability item covered occurrences, such as if a new employee was not enrolled in time for their benefits to commence. That type of 7 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26, 2010 lapse would be covered under that policy. Ms. Harris believed the $8,200 was a savings but would verify it. The Professional Services Budqet was reduced $130,000 or 35%. The line item was for consultants who assisted staff in assessing new economic development programs, applications for commercial rent subsidies, and other programs. Of the $25,000 budgeted, the Community Redevelopment Agency used $14,000. If the Board retained new economic development programs, staff would need those funds for next year's budget. Chair Rodriguez inquired about the connection between the name of the line item and the economic development programs. Ms. Harris responded she could rename it. Examples of programs the item was for were the Commercial Rent Subsidies, the Commercial Interior Build-outs, and the administration and evaluation of Small Business Administration loans. Ms. Brooks explained someone worked with them to perform the financial analysis. Administration of that program was labor intensive and this way, staff could submit the information and receive the data back within three or four days. The contracted amount was $6,400 assuming they received a certain amount of submissions. It was a retainer against the analysis. Mr. Hay inquired if the City would receive $11,000 for the Interlocal Agreement. Ms. Harris confirmed they would and the funds were for the next fiscal year. The Buildinqs and Grounds budqet was reduced by $60,650 or 13%. The funds would pay for storage facilities for archived files that were currently in the Magnuson House. Staff would have to remove them and that was why there was an increase in the storage amount. It was noted there would be a lot of special events, tents and holiday equipment stored there. There was discussion the Holiday House was much bigger than the current office space and whether that location could house the materials. Ms. Bright explained they could try to do so. The design was not yet finished, but it was proposed to have an art gallery. The Community Redevelopment Agency needed 2,500 square feet. Ms. Bright agreed to research the square-foot costs for industrial space which may be significantly less than Federal Highway and she agreed to provide the calculations at the next budget meeting. A decision could then be made about whether the Board wanted artist space at the Holiday House. Ms. Brooks noted it was the architect's assumption, based on the 211 Ocean concept for Magnuson House to have the art gallery. Chair Rodriguez noted there was a letter from St. John Missionary Baptist Church thanking staff for letting them use umbrellas and port-o-Iets. Ms. Bright explained the Church borrowed the Community Redevelopment Agency tent, which was 10'x10'. Staff paid for them from the Heart of Boynton funds and Ms. Bright took responsibility for not notifying the Board about it. Ms. Biscuiti clarified the City put up a 20'x30' tent from Recreation and Parks for the event, with the understanding the Community Redevelopment Agency would pay for the 8 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26, 2010 port-o-Iets. The contact person for the Community Redevelopment Agency tent was April Majoy. The Marina budqet remained the same. Ms. Harris explained they did not anticipate any changes. The Information and Technolo~JY budqet reflected a reduction of $2,600 or 4%. It was noted this was separate from the amount for the website. Ms. Harris clarified the bulk of the funds was to pay the City for ITS services. The funds included mapping, software, telephone, data-lines, T1 lines and equipment costs. The $2,600 in savings was realized from a more efficient vendor they were using for the T1 lines because they had to connect to City Hall. The Continqency Account budqet was reduced by $75,000 or 75%. Ms. Harris explained in order to balance the budget, they needed to have some funds available for unexpected occurrences and there was some discussion that monies saved from other department budgets could be put into the contingency funds. Ms. Harris reiterated their budget was based on the millage which was fixed at this time. If the millage shifted higher, they would receive a benefit, but they would not know what it was until the final budget meetings from the City and County. Ms. Harris explained last fiscal year, staff did not spend any funds and the monies went into the "roll-over fund" and would be used for larger construction projects. An example of what the Contingency Account was used for was two years ago there was a sewer problem at the marina, which they used the funds for the repairs. If the funds are not used, they return to the Board for allocation. Chair Rodriguez felt a tight budget did not require contingencies because all scenarios were covered based on historical data and information in each department. He was not in favor of increasing the contingency fund and felt the funds should go towards redevelopment. Mr. Orlove felt $25,000 was not sufficient and there should be a little bit more in that account. He expressed in a budget, not every situation could be accounted for and unexpected events occur. Ms. Harris explained the requirements for the roll-over funds which were any funds remaining at the end of the fiscal year and after the audit, must be allocated for redevelopment projects, debt service, or real estate projects planned to be completed within three years. The funds could not be put into the general fund. The Salary Schedule and Related Personnel Expenses budqet was reviewed earlier in the meeting. The Proiect Fund - Budqet Summary was reduced $189,209 or 56%. There was brief discussion of whether staff went to RFP for the REG design drawings. Staff explained the firm was under a continuing contract they issued an RFQ for. The firm was vetted through the City. At the last meeting, there had been discussion of allocating $52,000 for the Old High School for a four-month period. It was noted those funds were projected to be extended into the fiscal year. 9 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26, 2010 The Capital Outlay budqet was reduced by $434,629 or 16%. The final number would be more accurate. The roll-over funds would be less because staff would have expended monies on projects this year. The dollars had to be accounted for in the budget in order to be spent, but they did not have to be allocated in the next budget. The Affordable Housing budqet was reduced by $539,433 or 52%. There was discussion about the Ocean Breeze Project allocation of $100,000. The monies would be used to construct a model home on site and the RFP was for the site development. Ms. Brooks explained the RFP issued was for installation of the infrastructure and utilities so the lots could be sold. The Community Redevelopment Agency would be the developer and the Board would select a general contractor which would avoid the 20% developer's fee, thereby keeping the units affordable. Ms. Brooks recommended constructing a model home because the monies would be recaptured once the unit was sold. Three models were planned which would be marketed and then brought to the RFP process. Buyers would have to be qualified under the Neighborhood Stabilization Program. Once a few lots were sold, they would go out for bid for those models. The homes would be about 1,600 square feet. There were 21 home sites available and the lots were cleared. Staff would need to plan a street grid, plat it and prepare it for site development. Staff advised they had a pre-bid meeting and there were eight bidders. Chair Rodriguez felt the Board should have been apprised of the plans for the infrastructure when they issued the RFP. Ms. Brooks explained they would have to issue an RFP to retain the best group to market the project which would not be done in house as they were intensive. Chair Rodriguez preferred to see the vision for the area. Ms. Bright explained that was part of the issue with City staff and their reluctance to release the funds. The agreement clearly stated site development. Normally, a developer received a flat fee per buyer, but staff would negotiate that amount and bring it to the Board. The process was performance based and the Neighborhood Stabilization program was a reimbursable grant. Once they provided the documentation to the City, they would receive the funds. The Economic Development Proqrams were reduced by $277,261 or 40%. The Direct Incentives were Tax Increment Finance funds. Incentives for the Preserve in the amount of $56,000 were allocated but were not drawn down because the developer did not construct the required number of units. They did add eight more units and Ms. Brooks pointed out under the agreement, the developer had 10 years to draw down the funds. If they drew the funds when the units were half constructed, they would receive less money. The Promenade was also discussed. There were certain contract obligations they had to fill and a report from a Certified Public Account had to be provided indicating they fulfilled those obligations. Then after the Board approved the report as accurate, based on the contract, the funds could be requested. Some of those requirements were public parking, affordable commercial rents and other items. 10 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 The Wal-Mart incentive would commence next year. The developer anticipated beginning construction in early 2011 and the project would be on the tax roles the next fiscal year. The two components involved in the project were the Tax Increment Financing Agreement and the Brownfield designation. The project also qualified with the State for the designation and the State was budgeting for it in the 2011/2012 fiscal year which was when the funds from the Community Redevelopment Agency would be released. This was because the State funds required a match from the Community Redevelopment Agency. There was discussion of Molly's Trolleys. Vice Chair Ross noted the operators were not present. Ms. Bright confirmed the owners were aware of the financial situation. Staff typically performed a route and ghost ridership analysis. She explained staff could evaluate the service, but with the budget cuts, staff felt the monies should be used for pure redevelopment. Chair Rodriguez also noted the trolley took the riders out of the district. Ms. Bright noted the trolley service was a project initiated from the prior director. It would be a future endeavor in the Traffic Concurrency Exception Area. Overall, the trolley did not provide a significant return on investment. The Proiects and Proqrams budqet was reduced by $42,324 or 6%. Ms. Harris pointed out they were able to balance the Special Events and Police Program budgets maintaining all the police in the program. The Special Events budget was reduced by $76,000 or 26%, but the number of programs and the quality of them would remain. There was discussion the fireworks budget increased. Ms. Biscuiti explained the increase was due to their contract with the barge, which increased $500 each year. As to the fireworks, staff had issued an RFQ in 2006 with the City for fireworks and they had a five-year contract. The barge was a separate contract. Ms. Biscuiti explained she reduced her budget. She felt developing the Ocean Avenue Concert Series and the Movies on the Ave. gave residents a lot of options. The Community Redevelopment Agency traditionally presented big name acts. By slightly reducing the funding, they could still retain popular artists while saving a lot of money. The events were still a big draw. Chair Rodriguez explained he received a lot of input about having a local talent night and having an event downtown. He noted each band had a following and it could be a big draw to the area. They could also hold the event at the amphitheater. Mr. Hay discussed the parade budget reduction of $10,000. Ms. Biscuiti explained they were cutting corners wherever they could. They would not hold big hospitality events. The parades were exciting because of the band, but some of the groups were paid. The high school band was paid $400 and the Director was paid $100. The Heritage Fest and Family Day events were $20,000 combined. Ms. Bright explained they had several public requests for those events in the past and staff wanted to fund the activities the Board consistently supported. Staff also thought the residents 11 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 of Boynton Beach would enjoy the Palm Beach Jewish Film Festival, because Palm Beach County has a large Jewish population. The Board had funded the Sims Family Day $5,000 and Ms. Biscuiti expressed her belief the organization spent more than that. It was the same for the Heritage Fest. Those organizations submitted the bills to the Agency and the staff paid them up to a certain amount. Mr. Hay explained the total budget for the two events was $49,800 and fundraising was occurring. Chair Rodriguez explained it was important to remember that funding the events was an effort handled by both the Board and the organization. It was noted the Board did not fund the Intergenerational Event. The Chamber of Commerce events that would not be funded were the Annual Dinner Dance and one other event. Ms. Harris explained the budget was balanced with the Police staff included, but next year it would increase. They were aware they were under budgeted on overtime and on the payout of leave time which had not been anticipated. The proposed upcoming events for the current year were reviewed, as was the Debt Service Fund - Budget Summary. The Debt Service Requirements, Principal and Interest budget was reviewed. The budget reflected the timeline for the debt service and when the payments would drop off. There were no comments made on those items. The Community Requested Proiects were reviewed. The Heart of Boynton Community Association had a $30,000 request. Of that, $15,000 was already put into the Special Events Heritage Fest 2011 event, so the request was really $15,000. Based on past practices, they took the funds and included them in the Special Events budget. Ms. Harris explained other than the $15,000, none of the other activities were included in the budget for the upcoming fiscal year. Ms. Bright explained they typically funded the Heritage Fest. If the Board wanted to keep the $15,000 in the budget for the Heritage Fest and they decided to fund the Intergenerational Gathering, they would need another $15,000. The Florida Fishing Academy was an additional request. Chair Rodriguez suggested focusing all their resources on a specific area to get something done. He explained the events were nice, but they needed to eliminate blight and slum. Times were tough and some activities may need to be furloughed for a year or two. Mr. Holzman inquired about the Community Caring Center of Boynton Beach, Inc. and commented they were recently funded. Ms. Bright suggested leaving the items until the final budget. Mr. Orlove explained it would be helpful to look at all the activities in terms of the overall budget and what percentage they were requesting from the Community Redevelopment Agency. Staff should provide the details to them prior to the final budget. He commented the activities were not redevelopment, but they assisted the mission of the Community Redevelopment Agency. He was unsure of the level of funding, but recognized the events had a benefit. The Board, also, did not have 12 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26, 2010 to fund the entire amount. Having all the background information ahead of time would help the members make informed decisions. Vice Chair Ross inquired how other municipalities were handling the requests. It was noted Delray Beach focused their efforts on arts and culture. They supported the Spady Museum and the Heritage program. Ms. Bright explained if the City went to a 7.2 millage rate, there could be another $200,000, but it was reiterated the millage was not factored into the budget. Chair Rodriguez inquired where the building dollars were. He explained the Red Light Camera Funds could be held for a new City Hall. He preferred to see monies dedicated to the different areas and projects. He commented his personal goal was to have a City Hall ground breaking in 2010/2011. He inquired where those dollars were in the budget. Ms. Bright explained funds were allocated for Holiday House, and the Community Fa9ade grants. It was known Mr. D'Almeida owned the whole strip of property by the tracks on the south side. He owned the property where the Green Market Cafe and other establishments were. With the exception of the $15,000 for the Heritage Fest, the money was not in the budget. He inquired if there was any opportunity to find any money for a new City Hall. Ms. Brooks explained State Statute did not allow a Community Redevelopment Agency to pay for city buildings. Attorney Cherof confirmed that the Statute prevented the expenditure of funds for any municipal building. Mr. Orlove left the dais at 8:44 p.m. Ms. Harris explained when the community approached them with a request, staff had an obligation to advise the Board of the request. Mr. Holzman inquired if the money was not in the budget and the Board decided to put all the activities back in, if there was money in the budget to cover the expenses. Mr. Orlove returned to the dais at 8:45 p.m. Ms. Bright explained if the City amended its Interlocal Agreement for 4th Street, they could do so. The City had already paid for the improvements and the Community Redevelopment Agency could pay back the funds incrementally. The monies would be paid back next year after they received the Tax Increment Financing Funds. Chair Rodriguez felt the public should be given an opportunity to speak and he opened the floor for comments. Jerry Taylor, 1086 SW 22nd Avenue, expressed the Community Redevelopment Agency could not give money for a municipal building. Anything the City could do with its own funds, Community Redevelopment Agency's were prohibited from contributing to, such as a City Hall and Police Station. He commented the Old High School 13 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 Consultant fee of $52,000 could not legally be paid for with Community Redevelopment Agency funds because it is a municipal building. Gertrude Sullivan, 201 NE 6th Avenue, explained she sent a letter asking for $30,000. She had developed the budget and they still had to come up with other money. If they had to make cuts they would, but they definitely needed the $30,000. She inquired about MLK Boulevard. Chair Rodriguez commented he had mentioned development along MLK. She explained the Board was discussing building homes, but no one was working. She requested businesses be established so people could work. She requested they listen to the community's needs. Willie Aiken, 728 NE 1 st Street, reiterated the three events they were seeking funding for had a budget of $48,000 and they were raising funds for the different events. They had received $15,000 but costs increase. The City did not have stages they could use and they had to pay for them. He asserted the events were worthwhile. They provided for different activities and they put hope back in the community. The represented all the residents in the area and inquired why they could not have the events. They had a new budget out. Brian Edwards, 629 NE 9th Avenue, commended the staff and Board on a balanced budget. He liked the speed of the development but the problem was all the work that had been put into the planning of the economic development of the downtown. He commented they have a downtown master plan, and the involvement of the City staff, the Community Redevelopment Agency and the Chamber of Commerce should be slowed down. An independent Board was coming in behind this Board and they would be a big part of what happened downtown. He commented there were other entities they should consider. He recommended as they moved forward with the budget that they bear in mind that other people would be involved and they would have the input from the community as they reviewed the master plan, and the Community Redevelopment Agency's economic development plan. The master plan was approved in approximately January 2009. Doris Jackson, 531 NW Avenue, spoke about the Heritage Fest and Intergenerational Gathering. The community liked these events to keep people informed, interested and their hope alive. They were promised the area would be redeveloped for some time. The community played a part in putting it together and now they were waiting for it to come to pass. Wilson Pool and Sara Sims came to fruition, and the community was waiting for Ocean Breeze. They wanted someone to construct homes and hoped the Board would provide the money they needed for their events. They held fundraisers, hoped to get more people involved and hoped their dreams would not be shattered. Sherrie Johnson, Community Caring Center, attended a meeting in the Heart of Boynton and they discussed excessive parking on the streets. Most individuals had a one-car driveway and there seemed to be a lot of parking issues. When she was with 14 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 Delray Beach Community Redevelopment Agency, they looked at vacant lots in neighborhoods with parking problems. Currently, the Police Department was ticketing vehicles. One project Delray Beach undertook was to map out where the excessive parking was occurring and if the Community Redevelopment Agency owned a lot or two adjacent to those areas, they could have pocket parking. Regarding the working incubator they proposed, their program was a unique concept extending much farther than the incubator classes currently offered. It came with a micro-enterprise loan program which was a matching fund program that could be matched to Community Redevelopment Agency funds for build outs. It was a partnership with the City and the Community Redevelopment Agency which would reduce vacancy rates and help create jobs. She hoped the Board would consider funding their project. Mark Karageorge, 240A Main Boulevard, commented he did not see a line for sponsorships. He suggested if sponsors underwrite the events, there would be no cost. He commended Ms. Biscuiti and staff on doing so in the past. If the events were sponsored, then those dollars could be reallocated to other items such as redevelopment and the business incubator. He expressed he was a proponent of economic development and if they could save on the events and reallocate the funds to development, it would be a win-win situation. 4. Review of General Fund, Project Fund, Debt Service Ms. Bright explained staff had been given enough direction and the Board would review the budget again in August. Attorney Cherof explained the Community Redevelopment Agency was a Florida Special District. Ordinarily, the budgets of the City's Special Districts are within the boundary of the City and they are a subcomponent of the City Budget. The Community Redevelopment Act contained a specific provision which the City Commission had followed in the past, which allowed the Community Redevelopment Agency budget to be budgeted separately. There had always been concurrence with it in past years and it had not come up as an issue as of late. With a new Community Redevelopment Agency Board coming in during August, the budget was almost finalized but the formality of adopting it could still be reserved by the City Commission if they would like to do so. It was a control during the transition period. Then the Community Redevelopment Agency budget would be approved in conjunction with the City Commission's. Regarding the timing, the budget could be done at the same time. If the City Commission adopted the budget, any amendments to it would require approval by the City Commission. Ms. Harris pointed out it was still subject to the County millage rates. 15 Meeting Minutes Special Community Redevelopment Agency Board Budget Workshop Boynton Beach, FL July 26,2010 5. Adjournment There being no further business to discuss, the meeting was properly adjourned at 9:02 p.m. :~.LLl/u'J/tLl ~/~VLU___ Catherine Cherry f Recording Secretary 080310 16