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Minutes 11-12-13 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD IN THE CITY LIBRARY, CONFERENCE ROOM A, 208 E. SEACREST BLVD., BOYNTON BEACH, FLORIDA ON TUESDAY, NOVEMBER 12, 2013 AT 6:00 P.M. PRESENT: Steven Grant, Chair Tim Howard, Finance Director Jeffrey Grady, Vice Chair Fakhry Boulos Gary Dunmyer Dolores Schlesselman 1. CALL TO ORDER Vice Chair Grant called the meeting to order at 6:03 p.m 2. ELECTION OF COMMITTEE CHAIR Motion Mr. Boulos moved to appoint Mr. Steven Grant as the new Chair. Ms. Schlesselman seconded the motion that passed unanimously. 3. APPROVAL OF THE MINUTES FROM JUNE 10, 2013 There were no changes to the minutes from the June 10, 2013 meeting. Motion Mr Boulos moved to approve the minutes. Mr. Dunmyer seconded the motion that passed unanimously. Mr. Howard suggested nominations be taken for Vice Chair. Motion Mr Boulos nominated Mr. Grady for Vice Chair Mr. Dunmyer seconded the motion that passed unanimously. Before continuing with the meeting, Mr Howard asked the members forward any changes to their contact information to him 1 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 4. OTHER BUSINESS Mr. Howard distributed a list of potential issues for study and assignment. The items on the list are those potential issues remaining after items from last year were removed. The Committee discusses if there is anything they would like to add to the list and then asks the Commission to review the list. The Commission will let the Committee know anything they feel is a priority. Last year the Committee took the list to the Commission and the Commission isolated 4 -5 items Mr Boulos asked who made the original list. Mr. Howard responded it was made with the previous City Manager when the Committee was originally formed with input from the original Committee. The top item, City Services Survey, stays on the list from year to year. Chair Grant wanted clarification the Committee is to make recommendations for the finances of Boynton Beach. Mr. Howard read the exact wording of why the Committee was established. "The City Commission established a Financial Advisory Committee to review the impact of legislative and administrative decisions on the City budget" Mr Howard reported on the last budget meeting. The developmental revenues were looked at in a couple of different areas and recommendations have been submitted to the Commission and passed There were some changes in the fees for Planning & Zoning and some changes in fees for review In regards to the pension, the Commission has given tentative direction to staff to gather information. There is no definite timeline right now. Mr. Howard commented this is an ongoing discussion between himself and the City Manager on how to get education information on pension. The Commission wanted to keep Solid Waste in- house, so it remains in -house for commercial and residential. The recommendation for Risk Management would not come into play until next year when the renewals begin The information was passed on to Human Resources and Risk who are combined as one department to look at the broker's selection as far as what access they have. Ms. Schlesselman commented every year departments submit their budget to the Commission for specific projects. In the last few years many projects have been shelved and perhaps the Committee can ask the Commission which projects they would like to prioritize, which ones would be more efficient or how to make them more efficient. Mr Howard commented those items might be re- worked under item #2 (Capital Improvement Plan Analysis) on the list. This is where most of the projects were delayed A lot of projects that were delayed or moved out of the schedule were maintenance type issues and it is possible to move them back onto the schedule. Mr Howard explained there is always a struggle when there is an economic downturn as to what projects and items will be funded The sources for funding of capital will either come from a transfer from the General Fund or a bond issue to capital projects. If bonds are issued, there will be a debt service payment to be made The revenue for 2 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 that usually comes from the General Fund unless there is a dedicated new source of revenue. Instead of transferring funds to the Capital in order to do the projects, the transfer was reduced or eliminated which kept the funds in the General Fund. This allowed the City to maintain many operational day -to- day issues. As taxable values stabilize or increase, development and re- development projects will increase and hopefully that trend will continue. There is a major project the Commission has given their tentative approval to that requires a bond issue which is the building of the new police station They have agreed to the site and have requested staff to move forward with the procurement of an engineering /architect to update a space study and get revised construction numbers to look at possible bond funding next year. Ms. Schlesselman stated big projects that require a lot of money could be bonded out. However, if there is a gradual increase in revenues, or if the Committee is able to save money, perhaps projects like improving buildings and streets and medians can be done. The Committee might be able to do a project now that is not as costly. Mr. Dunmyer suggested ideas should be discussed formally at the next meeting. Chair Grant responded the next scheduled meeting is November 25 and Mr. Boulos agreed this was a good idea Mr Dunmyer suggested an idea for alternative energy. Mr. Dunmyer also suggested looking at what large projects other cities have done. Mr. Boulos commented previous projects worked on have some value quantitatively and politically. However, how can the Committee come up with projects and know which one has value to the City? The Committee cannot anticipate the ramifications of the outcomes of these projects. Chair Grant reiterated some ideas for projects can be alternative energy and numerous other things the City may like to invest in. Chair Grant suggested if there are any surplus funds, lending money for home improvements to the lower income homes which would in turn help improve the tax base for the City would be a good idea. Mr Howard commented the City has such a program handled through a section of Development called Community Improvement. The funds come from Housing and Urban Development either through their CDBG (Community Development Block Grant) which is a Federal program and /or from a program called SHIP (State Housing Initiative Partnership) through the state. Those funds have been cut in previous years. The program is in place with a number of Federal and State restrictions. It does not preclude a similar program being established with City funds. Mr. Dunmyer asked if there is a list of underfunded programs. Mr Howard responded he does not think there is a list because it changes too often. Mr Dunmyer inquired as to how the Committee would communicate with other departments to know what they would like the Committee to consider for next year's budget. Mr. Boulos commented he was not sure all departments know the Financial Advisory Committee exists. Mr Howard suggested this could possibly be posed to the 3 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 Commission. Chair Grant suggested perhaps the item could be called Department Budgetary Concerns Mr Boulos asked who was helping small businesses and if it was part of the Committee. Chair Grant responded no one since that was not within the Committee's responsibilities The Committee may do a study on how the CRA budget might affect the City if it was increased or decreased Ms Schlesselman asked if the CRA budget was something the Committee could talk about Mr. Howard responded, in the abstract but not as a direct recommendation for a specific issue because the CRA has its governing body and their own staff that addresses it. Mr. Howard wanted to follow up on Mr. Boulos's question about small businesses. The small business issue would fall within the CRA that has programs to assist in this area. Under the City purview we have an Economic Development Division that started specifically to work with businesses in different capacities. The City has two sides; existing businesses /new businesses and businesses expanding within the City. Those topics are very sensitive from the business owner's perspective as far as what information they put out there. Some information is excluded from public records because of the type of process and information it goes through. It would not fall under the purview of the Financial Advisory Committee. It can change from week to week and is a very volatile type of issue unless it is like the CRA which is the fagade type of enhancement. Ms. Schlesselman commented if the Financial Advisory Committee is the Advisory Committee for the Commission and the Commission cannot do anything to change the CRA budget, it would not do any good for the Advisory Committee to research anything about the CRA budget. Mr. Howard commented the budget for the CRA is based on statutes, calculations and property values and the funding comes from the City and the County It is based on the current year value of the property vs. what the base year value of that property was. The fluctuation piece is based on the millage rate the City sets and the millage rate the County sets. The difference between the base year and the current year is what the TIF (Tax Increment Funding) revenue is that goes to the CRA The Committee could not do it from the City side It would have to be done from within the CRA budget outside of the Financial Advisory Committee's purview. Chair Grant asked all members to come up with at least two ideas for the list when the Committee meets again in two weeks. The Committee can study issues for the City Commissioners regarding Federal, Florida or City government. One idea could be for more Federal or State grants. The Commissioners meet on the first and third Tuesday of each month and Chair Grant would like present a few ideas to the Commission for their guidance. Hopefully, the Committee will hear back by early January and can start studies on whatever projects the Commission determines are worthy 4 MEETING MINUTES FINANCIAL ADVISORY COMMITTEE BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 Chair Grant asked the members to see if they know anyone who meets the Committee's qualifications and would be interested in filling any of the open slots. Mr. Howard suggested to Ms. Schlesselman to forward any of her ideas to him since she will not be able to attend the next meeting and he will include those ideas in the agenda packet for the November 25 meeting. Mr. Howard also commented this would be a consensus for everyone to bring back their ideas for the November 25 meeting. Mr Boulos asked if it would be possible to review the budget to the major expenditures. Mr. Howard responded there is a summary on line at the City of Boynton Beach website The full document has not been completed yet. The full document is over 600 pages but will be completed soon The summary can be found at the boynton- beach org website. 5. ADJOURNMENT Mr. Grady moved to adjourn the meeting. Mr. Dunmyer seconded the motion that passed unanimously. The meeting was adjourned at 6:50 p.m � race Morales Records Coordinator 11/19/13 8 hours 5