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Minutes 07-12-11 Budget MINUTES OF THE SPECIAL CITY COMMION BUDGET MEETING, HELD IN THE LIBRARY PROGRAM ROOM, 208 S. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA, ON JULY 12, 2011AT 1:00 P.M. PRESENT: Jose Rodriguez, Mayor William Orlove, Vice Mayor Woodrow L. Hay, Commissioner Steven Holzman, Commissioner Marlene Ross, Commissioner Lori LaVerriere, Interim City Manager James Cherof, City Attorney Janet Prainito, City Clerk I. Welcome Mayor Rodriguez called the meeting to order at 1 :06 p.m. and indicated the meeting would continue through 5 p.m. There was a Community Redevelopment Agency Board meeting scheduled at 6:30 p.m. The last ten minutes of the meeting would be allotted for public comment. II. Financial Advisory Board Recommendation for fee increases Ms. LaVerriere pointed out the Development Department had requested an increase in the Business Tax fee that was rejected by the Commission. Many of the fees would be passed on to developers and applicants. Nancy Byrne, Assistant Development Director, explained the fees varied. She advised Business Tax penalties are regulated by State statute and the fee could only be increased 5%. Overall, the impact of the proposed Business Tax ordinance would have been $65,605. The maximum penalty could be 25% of the value of the license, not to exceed $250. The pre-inspection fee or application fee could be adjusted from $40 to $44. The inspection fee could be increased from $10 to $11. Both increases would require an ordinance. Building permit fees are regulated by State statute. The fees could only be used to compensate for very specific jobs and could not be co-mingled in the General Fund. The current rate is 2.3% of the value of a permit and it had been challenged by a couple of developers. A 10% increase would set the rate at 2.5% and raise the minimum permit fee to $50.60 from $46. Ms. Byrne preferred a study be done on the adjacent municipalities before an increase was enacted. Some of the increases could be counter-intuitive to the economic development goals. Land development fees could be increased. A new site plan would increase from $750 to $825 depending on the size of the property. The maximum would be $3,000 that would increase to $3,300. An increase of $4,000 to the budget would be appropriate based on the current activity level to date. 1 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 The garage sale permits are $5 and a 10% increase would result in a charge of $5.50. Don Scantlan, Chair of the Financial Advisory Committee, clarified the Committee had recommended an "across-the-board" 10% fee hike. There was discussion on the beach decal fees and Mr. Majors advised staff was not recommending an increase in the fee at this time. There have been significant improvements at Oceanfront Park and there could be more improvements. He noted over the past 10 years the number of decals had been decreasing. Increasing the fee would continue the decrease in sales. Historically an increase in the fee had been consistent with a decrease in the number of decals sold. CONSENSUS There was consensus to not increase the beach decal fee. Mr. Majors offered the fee could be evaluated after all the improvements had been completed. Craig Clark, Library Director, advised overdue fines are now 10 cents a day for a book. If the overdue fine was raised to 15 cents per day, it would raise the revenue $4,400 to a total of $9,026 a year. Mayor Rodriguez suggested staff review the recommendations of the Financial Advisory Committee, validate the numbers and give a recommendation on the proposed changes. Vice Mayor Orlove thought the discussions should continue. Interim Chief Carter reported fire inspection fees of $173,933 had been billed to date. An increase of 10% would be approximately $17,000 additional revenue. Ms. LaVerriere cautioned the Commission it would be counterproductive to economic development to raise fees to developers and businesses. There was an agreement staff would validate the figures submitted by the Financial Advisory Committee and make recommendations on each fee. Vice Mayor Orlove wanted the history on the fee increases to evaluate the impact. CONSENSUS There was agreement to add $150,000 to the revenues to cover the possible increases. The Business Tax fee would not be raised. Mayor Rodriguez declared there was consensus for staff to go back and outline the details and specifics and the Commission can then agree or disagree on moving forward. III. Library Subscription Membership 2 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 Mr. Clark reported most of the subscriptions were being cancelled. Of those remaining, five provided useful information to Janet DeVries, the Archivist, as well as the public. Vice Mayor Orlove advised he would use his expense funds for three of the subscriptions. CONSENSUS There was consensus to add the $400 of subscriptions back into the budget. IV. Museum Operating Budget. Mr. Clark introduced Amy Hever, Executive Director of the Children's Schoolhouse Museum. The City supports the Museum with $204,453 and 45% of the monies involve fixed expenses for the building itself. Staff expenses are $124,000. The proposed budget cuts the total support to $186,112, a 17% reduction. Ms. Hever advised the total operating budget is $485,000. She thanked the City for supporting the Schoolhouse for all the years of operation. It had been a difficult transition with the new partnership agreement between the City and non-profit entity in preparing the Schoolhouse for its next phase of operation. The proposed cut is huge and the Museum was doing the best it could with reduced staff. Relationships would be built over the next fiscal year to protect the Museum and the budget. Mayor Rodriguez inquired if a transition plan had been done. Ms. Hever noted it was not in the Museum's interest to be completely dependent on the City for funding. It would take time for the staff to realize the revenue channels available. There are now three full-time positions, down from five and nine part-time positions during the summer and six during the rest of the year. Commissioner Ross asked if the Museum had an Education Director. Ms. Hever indicated two positions were eliminated and the Visitor Program and Services Manager position represents the Education Director position, Visitor Services Director position and Exhibits Director position. The staff was struggling to achieve their goals. Vice Mayor Orlove asked Ms. Hever for her recommendation on the budget. Ms. Hever qualified her remarks because the Museum falls under the Library budget. The funding for the Palm Beach County Cultural Council had been eliminated in the County budget until the roll back rate was approved. However, there was a priority list established for the funding and Arts and Cultural was not included. If funding was not forthcoming, such programs as field trips would have to be greatly reduced and the hours reduced. Vice Mayor Orlove commented the Museum draws people to the area, as well as the Library. He was concerned the Museum would be diminished. Mayor Rodriguez questioned the current status of the operation. Ms. Hever advised, besides the economy, there is a huge amount of transition work. For the past year, the Executive Director responsibilities were dealt with by a part-time position of two days a week. 3 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 The relationships were not in place before the writing of the partnership agreement. The exhibits and programs need to be updated and changed involving time and monetary investment. V. Police Report on Records Clerks Chief Immler revised his proposal to return two of three records clerks, laying off only one of the records clerks. He would delete the part-time records clerk position for $15,800. The position filled in during vacation and sick times or emergencies. The only evidence property custodian would have to be eliminated. There were two positions and one individual had retired last year. A sworn police officer was placed in the position and the other civilian position could be eliminated too. Light duty or restricted duty officers could fill in as temporary evidence property custodians. Commissioner Holzman recalled there would be 19 hours of patrol time lost if the records clerks were eliminated. Chief Immler advised the 19 hours cover a day for 164 officers for approximately 10 minutes each. Commissioner Holzman suggested the light duty officers be used to replace the records clerks rather than the evidence property custodian. For the records clerks positions, Chief Immler advised the officers would need advanced training in the NCIC, FCIC module. The officers would already know the evidence system. It was explained the previous proposal eliminated the customer service aspect of the records clerk positions. Commissioner Holzman surmised the impact on potential services would be smaller with the previous proposal than what had been revised. Chief Immler asserted the impact would be less by removing the evidence technician. Vice Mayor Orlove had concerns with the lobby hours. Chief Immler indicated the lobby hours would be reduced because there are two positions that are vacant and will not be filled. It was hoped, with proper training, a fairly consistent volunteer list from the Citizens On Patrol (COP) program could be activated to cover the lobby. Vice Mayor Orlove thanked Chief Immler for reconsidering his budget and reducing the lost patrol time to 6.5 hours per day. Commissioner Hay clarified the Animal Cruelty Investigator would be a part of the Police Department. Chief Immler confirmed it would be the same job responsibilities without the kennel function. Since the first of the year, there had been 355 animal complaints not including the barking dog calls. There were 179 occasions animals were seized and delivered to the Palm Beach County Kennel. Nine criminal cases had been filed with the Palm Beach County State Attorney's office. It is a full time job. Commissioner Ross thanked Chief Immler for the data. There is no other individual in the County who has the title or certification as an Animal Cruelty Investigator. Other agencies use their detectives to pursue the cases. 4 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 Commissioner Hay inquired if the part-time kennel position could be funded through the donations. The $17,000 budget included supplies. He wished the part-time position could be reinstated and the unique animal control program and kennel retained. Mayor Rodriguez contended the loss of the kennel would not change the responsibilities of the Investigator, except the kennel would be the County, which is covered in County taxes that are paid to the County. The kennel would not add as much value as the Investigator position would. Commissioner Ross noted the issue was important to many citizens and the City should be proud of its efforts. She hoped the part-time kennel worker and kennel could be added to the wish list. Chief Immler advised no other municipalities had animal shelters. Vice Mayor Orlove was in favor of keeping the Animal Cruelty Investigator, but not in favor of keeping the shelter. The service provided to the citizens would not be compromised by eliminating the kennel. Commissioner Ross argued the kennel was part of the City's identity and should not be lost. Commissioner Hay commented the wish list items should be considered before the budget was passed. Unless there was consensus on the Commission, it would not be appropriate to waste staff hours on the item. Chief Immler had reviewed the Communications budget for services to other City departments, including a line item of $20,000 to service the radios for Public Works and Utilities. Communications also provides the dispatch services for the Fire Department for an annual fee of only $8,000 toward the CAD system maintenance. If Public Works and Utilities would split the $20,000 and the Fire Department pay $15,000 for the three dispatchers that have to be trained, then the third records clerk position could be reinstated. It did not appear the proposal was possible. Chief Immler summarized the final proposal was one records clerk land records supervisor cut, one part-time records clerk eliminated and one evidence/property custodian eliminated. It had to be done in accordance with the white collar contract. VI. Fire Report Interim Fire Chief Carter had redone the budget summary based on eliminating six vacant firefighter positions and removing one unit from service at Station #1. The reduction of $423,667 also included removing the fire hydrant testing. The personnel cost alone was slightly less than $400,000. The far reaches of the zone for Fire Station #1 may experience a minute and a half increase in response times on occasion. Geographically, the zone is from NE and NW 14th Avenue on the north side to SWand SE 5th on the south side. There is a pocket off Boynton Beach Boulevard around Leisureville, west of the Interstate to the canal and on the east to the barrier islands. Every unit taken out of service could ultimately affect every zone, based on call volume. 5 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 With an understanding of the possible ripple effect on response times throughout the City by eliminating one unit, Vice Mayor Orlove supported having the six vacant positions returned to the budget and filled. Commissioner Hay inquired if there was data on where the most emergency calls originate. Interim Chief Carter advised the majority of the calls for Station #1 occur around the Fire Station up to 14th Avenue. The total alarms for the fire district were approximately 1,700 and 1,150 a year. Commissioner Hay opposed eliminating the unit and he agreed with Vice Mayor Orlove the unit and six firefighters should remain on the wish list. Commissioner Holzman clarified the response time would increase to the outer limits of the Fire Station district. He concluded for the majority of the calls there would be very little increase in response time. Mayor Rodriguez interjected there were agreements with the County and Delray for assistance, if needed. Interim Chief Carter added the Town Ocean Ridge has approximately 120 to 150 calls a year and Briny Breezes has 60 to 80 calls a year. The agreements do not include a specific response time. The response times are constantly monitored. CONSENSUS The proposal was to eliminate six vacant positions and there was consensus to do so. VII. Little League Mr. Majors advised Jack McVey, President of the Little League Organization and Boynton Beach Athletic Association, was present for any questions. The request was for financial support as of October 1st in the amount of $20,000, the following year $15,000 and $10,000 the third year. The budget of the Little League to maintain the facility was offered, as well as a profit and loss statement from the Boynton Beach Athletic Association. A combination of funds from both organizations covers the cost of maintenance. Mayor Rodriguez clarified the $20,000 requested did not appear in the proposed budget. Vice Mayor Orlove inquired what constituted field repair, field maintenance, and supplies. Mr. McVey responded field repair would be sod repair, sod replacement, fence repairs, backstop repairs or other repairs at the ballpark. There had been comments the fields were over used. Mr. McVey advised the fields would be shut down the entire month of August. He explained the fields require special equipment, frequent fertilization, weed and insect control. A company had been hired to assist with the spraying and 90% of the maintenance is done by volunteers. Mr. Majors recalled the original agreement was in 2008 and the first year was prorated at $15,000, the second year at $20,000 and the last year $10,000. Commissioner 6 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 Holzman could not understand the substantial difference in the figures from one year to the next. Mr. McVey explained registration fees increased and the economy declined. Mayor Rodriguez pointed out registration fees of $135,000 for 07/08, $59,000 for 08/09 to $99,000 for 09/10 representing huge variations. Mr. McVey explained in 2007/08 two grants were received. One for $25,000 which provided the shade structures and $35,000 that assisted with the cost of new fencing and sod replacement. Boynton Beach Athletic Association received the money from the City to maintain the fields. The Little League organization helped with some repairs. Commissioner Holzman reiterated his question about the $135 in other income in 08/09 and then $3,000 in the next report. It was explained that Boynton Beach Athletics was created to maintain the fields; however, the same expenses appear with Little League Association because they had to assist Boynton Beach Athletics to maintain the fields. Commissioner Hay established the books had not been audited for some time. Mayor Rodriguez and Commissioner Holzman had serious concerns with the documentation that had been presented. Mr. McVey admitted the focus was maintaining the fields rather than keeping the books and he apologized. The tax forms for last year had not been filed. Mr. Livergood interjected $40,000 to $45,000 would have to be added back into the budget to maintain the fields. Commissioner Holzman inquired if Mr. Majors had gone over the contract with Little League prior to signing and Mr. McVey advised he had. The economy was better and more funds could be raised at that time. Attorney Cherof interjected there is a requirement for a random type of audit. It is not specific and one had never been done or requested of the Little League. Mayor Rodriguez indicated the previous agreement had expired and a new agreement would have to be entered into for any further funding. Commissioner Holzman concluded from the documents that the proposed cost to maintain the field by the organizations would be over $50,000, higher than the cost to the City. Mr. Livergood reiterated the Little League's standard of care was higher than the City can maintain for the $40,000. The original agreement was prompted because the City did not have the resources or ability to maintain the field to the standards the Little League required. Mr. McVey pleaded any assistance would be helpful and appreciated. There is a damaged fence in the outfield that has to be repaired. The Little League has about $16,000 in the bank and the Boynton Athletic Association has about $2,100. Commissioner Hay wanted to support the Little League in whatever amount possible. There should be some contingencies on the Little League to be more accountable. Mr. McVey agreed. Commissioner Holzman agreed with Commissioner Hay, but based on the documentation submitted, he did not trust the figures. He suggested the League come to the City with receipts for field maintenance only. 7 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 CONSENSUS Mayor Rodriguez declared there was consensus to help the Little League and recognized the amount of work required and volunteers and families needed. It would have to be added to the list and when money became available, the amount could be determined. Vice Mayor Orlove offered some accountability of funds given to any organizations should be established. Mr. Atwood agreed and the agreement should contain language requiring some type of audit on the use of the funds. Attorney Cherof advised there was a three or four step process required for distribution of discretionary funds the Commission distributed. VIII. Finance Tim Howard, Deputy Director of Finance, reported there were two positions eliminated as a result of the Voluntary Separation Program that is the bulk of the budget reduction. The work was being redistributed to continue the processes. Mr. Atwood indicated one position in the Warehouse would be eliminated that would slow down the deliveries. IX. Legal The budget remained flat except for monies added for litigation and labor matters. Additionally, dollars were added this year in anticipation of continuing litigation and labor costs over the next year. The retainer and fees for office personnel remained the same. Commissioner Holzman understood litigation costs could not be controlled, but wondered if anything could be done to minimize litigation. Attorney Cherof explained the litigation costs have been driven by foreclosures. There has been a rise from maybe 20 a year to 150 this year. Some of the expenses could be shifted to other personnel. Most cases are simply monitored. The bigger increase in litigation was from labor. A bad economy brings threats of layoffs and discipline actions, plus negotiations with unions caused a spike in those costs. He spent a limited amount of time on labor negotiation issues this year. Those two elements of the budget are contingency funds. Commissioner Hay wanted to know if there was a particular department or area that had seen a rise in litigation expense or billable time, over the retainer. Labor matters in the Police Department and issues in Utilities were the bigger areas. The suggestion was offered that it may be appropriate for each department to budget for their own labor or litigation expenses. The departments may be more careful with what legal issues are incurred. Attorney Cherof was willing to track the expenses by departments. Commissioner Hay agreed and felt accountability was needed and should be considered for the next budget. Ms. LaVerriere added the collective bargaining agreements drive the cost and due process. Staff works very hard to avoid litigation. 8 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 Breaking out expenses had been discussed for other departments also. There are pros and cons of using that method. Vice Mayor Orlove hoped it could be discussed for the next fiscal budget cycle. Attorney Cherof could generate the data for an evaluation. Ms. LaVerriere thought quarterly reporting from the Attorney may be valuable to the determination. Vice Mayor Orlove cautioned the departments would have to budget funds that would take away from other programs or personnel. If there were trends over the last few years, it should be addressed. Attorney Cherof advised there had been employment issues in almost every department over the past year due to the pressure on employees. There have been many threats of EEOC complaints that are proactive on the part of the employee in anticipation of disciplinary action or termination. Mayor Rodriguez asked for an estimate on the cost for the foreclosures. Attorney Cherof estimated for the usual monitoring, it would be no more than $500 to $600 per case. Mayor Rodriguez speculated the City seldom collected any money. Attorney Cherof advised it was preserving the City's interest in the property. The City's claim usually survives the foreclosures. Attorney Cherof estimated two out of every ten cases are not worth the money of following the cases. Mayor Rodriguez surmised it may be better to ignore the foreclosures if $50,000 was spent to recover $10,000. The value of the homes is usually deteriorated. X. City Clerk Janet Prainito, City Clerk, reported the Clerk's office had never been able to generate dollars for the City. Everything done in the office is mandated by the State. This year a new program was implemented on June 6th that allows title companies, attorney offices, banks or real estate agents to do their own searching of properties for closing. The service provides up-to-the-minute information and the City realizes $100 for each of the searches. For the month of June the program produced $28,675. This fiscal year should bring the City $100,000. Next year, if sales and property searches continue, the revenue could be $200,000 to $300,000. Ms. LaVerriere advised $250,000 had been budgeted. Vice Mayor Orlove asked for the price of purchasing the system. Ms. Prainito explained the cost involved only $500 of service fees. The company uses the City's information. There had been some programming cost of approximately $10,000. For every search the City pays $10, the customer is charged $115 and $5 cost for the credit card fee and gateway charge. Vice Mayor Orlove remarked it was a great return on the investment. Commissioner Ross asked if there had been any feedback. Ms. LaVerriere reported the feedback had been positive with one exception, a real estate company, did not want to use a credit card. Most were happy to be receiving updated information that previously took three to five days. There is work being done to include outstanding fire inspection fees to the information for payment and the roll-off fees that are owing to Public Works. Most anything that is maintained in a database can be included. 9 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 In addition, $12,000 was saved by reducing one Administrative Associate position to part-time. XI. ITS John McNally, Manager of the ITS Department, proposed a budget with a 10% reduction of $193,000. It was due to staffing reductions including the loss of the ITS Director, Business Application Manager and the Video Operation Specialist. There were two promotions from within and one position filled for a net reduction of two positions. A phone audit was done and opportunities for reductions were found, overcharges were refunded and a greater knowledge of how to review the phone bills had been gained. Mr. McNally emphasized the budget is very lean on technology purchases within the City as a result of reductions. Some equipment replacements have been delayed for three or four years at this point and could ultimately result in productivity issues for all staff. It would have to be addressed at some point as new programs or updates to existing software may not be able to run on older equipment. The capital budget does include some updates on the network equipment as the infrastructure is approximately 10 years old. Vice Mayor Orlove asked for the average age of the PC equipment. Mr. McNally guessed it would range from one or two years old to five or six years old. Attempts to refresh problems with PCs can be done if parts can be replaced or memory added to extend the life. Commissioner Ross sought an update on the web site. Mr. McNally explained the web site was being revamped. It is a resource for staff and customers. The GIS page has some future land use and zoning capabilities included. There are links to the online services provided. Commissioner Holzman thought it could be more user friendly without being expensive. XII. Human Resources Ms. LaVerriere reported there has been a reorganization of the Department with the retirement of the Director and Assistant Director. The Assistant Director position and Human Resources Specialist position were eliminated and the budget proposal is down 17% for a savings of $175,000. Two individuals within the department have been reclassified and moved up one grade. There is an open Human Resource Generalist position that the new Director can evaluate and hire. A student clerk was also eliminated. Mayor Rodriguez added there were ongoing contract negotiations with the previous Director to assist. Commissioner Ross stressed the contract would not be as an 10 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 employee, but as a consultant or contractor status. It would be a temporary situation for the transition period for the new Director. Attorney Cherof mentioned the definitions were reviewed in conjunction with the voluntary separation program agreement. Mayor Rodriguez stressed the arrangements were made based on the specific situation in the Human Resources Department and the Commission had not approved anyone else being brought back in the same capacity. XIII. City Hall, City Manager, City Commission Ms. LaVerriere pointed out the City Hall budget was down almost 3%. The Inspector General expense of $152,000 had to be added into the budget. The postage spent was scrutinized and one-third or $30,000 was for utility billing and was transferred from the City Hall account to the Utilities budget. There was a $50,000 contingency item that has now been reduced to $25,000 and requires Commission approval. There is an emergency process to handle unexpected expenses. Vice Mayor Orlove suggested the monies be shifted to another line item or returned to the fund balance. CONSENSUS After further discussion there was consensus to eliminate the allocation in the budget. It was noted the allocation for the Child Care Center was eliminated from the City Hall budget. Vice Mayor Orlove recalled a proposal that the Child Care Center do its own fundraising and asked for an update. Ms. LaVerriere was unaware of any efforts. She had met with board members. The amount allocated was reduced from $22,000 to $17,500. Commissioner Holzman remembered there was an issue with Palm Beach County and the Head Start program. Ms. LaVerriere advised those issues remained outstanding. The City Manager's office reduced expenses, but transferred the Grants Administrator position into the budget that resulted in a 15% increase. Membership and business meetings were reduced. Commissioner Ross inquired about the elimination of the Public Affairs Director. Ms. LaVerriere advised it was a separate budget and several staff members had absorbed the work. There was $20,000 allocated for consulting fees if needed. The City newsletter was being eliminated. The City Commission budget was reduced by 8.45%. The allotment for meetings had been reviewed and reduced to cover essential meetings. Mayor Rodriguez questioned if the travel budget should be eliminated completely this year and if not, specify events. Vice Mayor Orlove agreed and recognized approval to attend any event should come before the Commission. The amount was reduced from $9.000 to $6,000 to cover registrations and travel expenses. Other expenses could be a follow up retreat or cost for audio assistance for meetings or workshops. 11 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 CONSENSUS There was consensus to reduce the amount to $5,000. The monies for memberships had been maintained. It was suggested the membership to the National League of Cities could be eliminated. There would be further investigation into any possible benefit of membership and brought back to the Commission. Vice Mayor Orlove reiterated his position on the Commission salaries that should be tightened also. Mayor Rodriguez thought reducing travel and memberships tightened the budget. He thought it was important to note only the Commission had taken a salary reduction. Vice Mayor Orlove argued people were laid off for the past two years and it put tremendous strain on the remaining staff who have not gotten raises for three years. There was also the elimination of deferred compensation payments that was part of compensation for some employees. Vice Mayor Orlove contended a 3% decrease would be appropriate since the property values had decreased 3%. There was no consensus for a reduction. The meeting was recessed at 3:45 p.m. The meeting was reconvened at 4:01 p.m. XIV. Capital Improvement Plan (CIP) - General Fund and Utilities Jeff Livergood, Director of Public Works and Engineering, pointed out the Capital Improvement Plan was funded by the Public Service Tax of $2 million to $4 million a year. A fund balance had built up and over two years $6.3 million was transferred with $3.2 million to the General Fund to fill budget gaps. It was important to have a $850,000 fund balance at the end of fiscal year 2012/13 so money would not have to be borrowed. It would require pulling projects over the next two years or adding more revenue to build the fund balance. Every grant possible was sought, but each grant includes a responsibility for shared expenditure. The current status enables only basic maintenance of the public infrastructure and rights-of-way and building infrastructure. Mr. Livergood pointed out there were small projects for building upgrades that would need to be done and some small projects could be deferred. Vice Mayor Orlove saw in the 2011/12 budget, $250,000 for redevelopment that had been previously discussed as one of two options available. He offered changing the fees would be less of an impact and return $250,000 to the CIP. Commissioners Holzman and Ross concurred. Mr. Greene confirmed that revenues attributed to the permits for the Old High School were not budgeted. Mayor Rodriguez contended 12 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 initiating rezoning as an incentive to attract development would not equate to a cost to the City. Another area explained involved $50,000 for small park projects. It is a line item carried over every year to fund small initiatives in parks that may be necessary. There was $267,500 set aside for design and renovation of the buildings at Oceanfront Park. It was in the current budget and bids had been opened on the project. The automated parking system was included next year. Vice Mayor Orlove advised he preferred the decal system for residents in conjunction with a meter-type system. Mr. Majors added parking attendants were used that was not the most efficient system. Boat Club Park was also included in the parking assessment and the figure of $250,000 for 2012/13 could be reduced to $100,000. Various parking systems and variations in fees were discussed that would maximize the benefit, use and revenue. The residents should have a discount for use of the park. Mayor Rodriguez mentioned there was a perception that the grounds at Oceanfront Park were not well maintained and requested the situation be investigated and rectified as soon as possible. There was a recommendation that the sidewalk replacement be eliminated in 2012/13 for $150,000. Nothing was proposed for 2011/12. Only critical repairs would be done by in-house staff. The monies allotted for the Galaxy Elementary School would be used to create a walk to the relocated park. The street maintenance monies of $150,000 could be removed. There was an item for Seacrest lighting on the west side that had been budgeted for next year. Federal funds paid for the east side lighting from Ocean Avenue to the C-16 canal on Seacrest. Working with Florida Power & Light, decorative lighting could be added to existing poles for $110,000. Mayor Rodriguez agreed with deferring the decorative lighting on the west side. Vice Mayor Orlove preferred to see the lighting go forward. Mayor Rodriguez supported doing at least one side of Seacrest going south to Woolbright. Vice Mayor Orlove disagreed. Commissioner Holzman advised the residents along Seacrest going south would be outraged if more money was spent on Seacrest going north. It would be an insult to the south residents. The $110,000 would show some good faith by the Commission toward those residents south of Boynton Beach Boulevard. Mayor Rodriguez agreed the improvements should be shared going south. There had been $20,000 set aside for trees going south that had yet to be accomplished. The Forest Park residents felt they have been abandoned by the City. Commissioner Hay supported Vice Mayor Orlove's comments to complete the project and add lighting to reduce loitering and crime. The entire area should be properly lighted to encourage completion of the project before moving south. Mr. Livergood advised there is lighting there presently. The monies would be for decorative lighting with the same candle power. 13 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 Another suggestion to protect the $850,000 fund balance, was to reduce the road maintenance from $650,000 to $600,000. Commissioner Ross was satisfied with taking the decorative lighting south. CONSENSUS Mayor Rodriguez declared there was consensus to allocate the funds to take the decorative lighting south of Boynton Beach Boulevard along Seacrest Boulevard. With the recommended changes, the five-year plan for capital improvements should be balanced across the five years. A review of the entire budget revealed $463,000 had to be found to be balanced at the roll back rate. Mayor Rodriguez allowed public comments. Jerry Taylor, 1086 SW 26th Avenue, commented the budget workshops were scheduled once a year and it was important to listen to the public. The three-minute time limit should be relaxed. He asked the unit not be eliminated from Fire Station #1 that would affect response times City-wide. The criticism for increasing the response time, would be more than the criticism for increasing the millage rate. Residents were willing to pay for the security of public safety. Another issue was the $250,000 being borrowed to sustain the Old High School. Mr. Taylor suggested the approval of the expense should be done by referendum vote of the taxpayers, if it is to be returned to the budget. Lastly, Mr. Taylor recommended the millage rate be increased to 7.5 mills to avoid an increase next year and possibly add dollars to the reserve. Herb Suss, 1711 Wood Fern Drive, commended the Interim City Manager for a job well done. The budget had been reduced from last year at the expense of Utilities and Mr. Suss did not agree, because the water supply had to be sustained for the future. He also supported an increase in the millage rate to 7.5 mills. Mr. Suss reiterated his contention the current response times should be preserved. There should also be a merger of the Development Department and the CRA staff to create efficiencies and save more money. Roberta Larsen, a dedicated 11-year City employee on the Shopper Hopper, asked if the program could be reinstated. The elimination would result in residents being 14 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 confined at home. The residents were willing to pay more for the service. She pleaded with the Commission to reconsider the decision to eliminate the Shopper Hopper. No one else coming forward, public comment was concluded. Mayor Rodriguez had talked to a Palm Tran representative about developing specific routes for a community. Vice Mayor Orlove recalled there was information from the Village of Wellington that had to be considered also. Ms. LaVerriere advised the transportation fund had not been discussed as yet. The special funds would be Golf Course, Arts, Solid Waste, Transportation, Fleet, Warehouse, Risk, Community Improvements, Traffic Safety and Recreation Program funding. Capital Utility funding had not been discussed. The schedule for the next day was discussed. XV. Adjournment Mayor Rodriguez adjourned the meeting at 5:02 p.m. (Continued on the next page) 15 Meeting Minutes Special City Commission Budget Meeting Boynton Beach, FL July 12, 2011 ATTEST: Ja t M. Prainito, MMC Ity Clerk CITY OF BOYNTON BEACH "'::.' . Issioner ~,", A. - Marlene Ross, Commissioner 16