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Minutes 12-09-13 MINUTES OF THE FINANCIAL ADVISORY COMMITTEE MEETING HELD ON MONDAY, DECEMBER 9, 2013, AT 6:00 P.., IN THE CITY LIBRARY, ROOM A 208 S. SEACREST BLVD., BOYNTON BEACH, FLORIDA PRESENT: Steven Grant, Chair Tim Howard, Finance Director Jeffrey Grady, Vice Chair Gary Dunmyer Dolores Schlesselman Absent: Fakhry "Ed" Boulos 1. Call to Order Chair Grant called the meeting to order at 6:03 p.m. Roll call followed. A quorum was present. Motion Mr. Boulos moved to approve the agenda as amended. Vice Chair Grady seconded the motion that unanimously passed. 2. Approval of November 12, 2013 Minutes Motion Mr. Dunmyer moved to approve the minutes. Vice Chair Grady seconded the motion that unanimously passed. 3. Other Business ➢ Updated list of Committee Members ➢ Discussion of Potential Study Topics and finalize list to be forwarded to City Commission for consideration Tim Howard, Finance Director, distributed an email from Mr. Boulos indicating he could not attend the meeting. He also had a list of study topics the Board could discuss. Meeting Minutes Financial Advisory Committee Boynton Beach, FL December 9, 2013 Chair Grant explained the Financial Advisory Committee gives recommendations to the City Commission on administrative or legislative matters. They may want the Committee to research topics and legislative initiatives to make operations more cost effective. Examples were to research funding for more art for the area. While the City has the Arts Commission, he was unsure if it was within their purview to seek funding. Boynton Beach High School was still unsettled and as an assembly making financial recommendations, having a piece of property doing nothing would fall under the purview of the Committee. The Committee could recommend renting or leasing City properties and buildings as it would create revenue. There were originally 50 to 60 topics which were specified. Most had to do with current operations and the review of divisions and services. The topics remaining were broader in scope or were not well defined, but they were the result of a roundtable discussion to develop topics for the Committee. Mr. Howard advised there were no new topics assigned, only suggestions for areas to be reviewed. In the past, the City has used Reserve Funds and this year was looking to contribute to that fund. Chair Grant thought in light of that, the City Services Survey should be redone. Before, the survey was to identify cost cutting measures, but now it should be how to use the money to benefit the City and generate revenues. Vice Chair Grady discussed the topic of unused rental facilities. Currently, there is an item to Close /Consolidate City Facilities. It is on the list to examine City facilities for best use. This pertained more to vacant land and what the City was not using. Mr. Howard explained the FAC could look at the current vacant land and vacant buildings and the potential uses of them. Mr. Howard suggested brainstorming and then make a motion with all the suggestions. Vice Chair Grady liked alternative energy, what the avenues in alternative energy are and if the return on the investment was feasible. A recommendation could be for the City to invest in rooftop solar panels. The Committee could study the issue, determine where the funds would come from and see what kind of revenue stream could be gained by the savings in electric costs. He also spoke about a study in which roofs were painted white to save energy. Mr. Boulos, in his email, liked Boynton Beach real estate taxes per capita and how they compared to surrounding cities. Discussion followed on this item that it was more of a comparison of the millage rate per capita income versus other cities, but it appeared Mr. Boulos was addressing residential /non - commercial taxes. Chair Grant framed the item as millage rate of other cities. Mr. Howard noted the agenda item would elaborate it was a review of Boynton Beach's real estate taxes as a percentage of per capita income compared to surrounding cities. 2 Meeting Minutes Financial Advisory Committee Boynton Beach, FL December 9, 2013 Further discussion followed the City does not know the gross revenue of a business, only what they pay for a Business Tax Receipt. Mr. Howard explained Business Tax Receipt fees are governed by Statute. He thought an item could be what percentage of the City is commercial compared to residential and what percentage of taxable values are commercially based. The residential taxes have programs such as Save our Homes, and as prices go up, the taxable value of the house stays fairly consistent. The commercial base rises with the market value. The City looks at past values each year through the budget process as part of what they consider when setting the millage rate. The City Services Survey should be revised as they were not soliciting input on what services would be reduced, rather what they would like to see improved. There were cost containment requirements in place over the last few years. Chair Grant commented driving down Martin Luther King Boulevard, the trash is terrible. He thought Code Compliance was a revenue stream. Mr. Howard reviewed the Capital Improvement Plan (CIP) for general government and utilities. The Plan is reviewed by a CIP committee comprised of various departments and is a five -year plan. Public Works, Recreation and Parks, Public Art and Utilities submit projects which the Committee reviews and ranks and submits them to the City Commission during the budget process for approval. Vice Chair Grady suggested conducting an analysis of what other cities include in their plan. Mr. Howard explained there is an internal City committee working on the Plan which could meet once a week or once a month. As the deadline approaches they may meet weekly. Mr. Howard explained the FAC meets twice a month. They may have trouble coordinating the schedules and the FAC may want to review a different angle of the Plan. The City Commission approves the Plan every year in October and the Committee meets year round. He suggested the FAC may want to contemplate if surrounding cities have policies for the CIP regarding a dollar amount, if there is a funding mechanism and how modifications are made. Chair Grant thought the CIP had a lot to do with wastewater. A huge part of the Plan pertains to utilities and wastewater. This was somewhat unique because not every municipality has water and wastewater facilities. There are many regulatory issues associated with it that are contained in the plan. Last year, the FAC compared many issues to surrounding municipalities. The FAC could ask department heads or the City Commissioners questions. Chair Grant inquired if the FAC was still needed or does the City just need the City Services Survey. Aside from alternative energy and the other two topics discussed, there was not much else they were reviewing. Ms. Schlesselman commented Boynton Beach has many unique things to focus on such as the Marina and kayak launch. She suggested there are parks and programs 3 Meeting Minutes Financial Advisory Committee Boynton Beach, FL December 9, 2013 that can be expanded and strengthened and suggested thinking of items that are more practical, reviewing how funds are used or if there is any extra money that may or may not exist. She suggested conducting the survey first, which is normally done by April or May. Mr. Howard pointed out some areas of the City will cross into CRA programs, like the Marina as they operate it. Additionally, the City Commission makes tentative decisions. One item, such as Debt and Debt Service pertained to using a bond to build a police building. Presently, the City Commission is hiring a consultant to update the police station. They have some issues they may have a direction on. Bonds can restrict the City in the future because it is debt and it will affect the revenue stream or tax breaks. Mr. Howard explained he will put an agenda item together with four or five items for the City Commission to review and also ask if they have anything they want the Financial Advisory Committee to review. The plan is to do the survey as soon as possible, tabulate the results and Mr. Howard would bring back the data. Chair Grant noted right now, none of the study topics were comparative. He suggested compiling the survey and asking the City Commissioners and department heads if they have any questions and if there was another tool the City has to get feedback from the citizens. Mr. Howard thought departments may have some specific tools. Chair Grant thought the survey should be a general evaluation of how the City is doing and the Financial Advisory Committee can watch over the City. It was hoped the survey would have an improved response and a suggestion was made to raffle a dinner to improve the response rate. The survey could be two pronged: one for commercial and the other for residential. Chair Grant agreed. Vice Chair Grady also thought surveys should be completed in 60 seconds and have fewer questions. Vice Chair Grady issues surveys all the time and does follow up via email. The assembly of the survey is important to avoid drop offs. Publicizing it is important. Chair Grant explained last year, social media was used. They can look for available medics and the water bill could include a link. Mr. Howard explained the City is moving away from water bill inserts as it is too costly. There is also a timing issue as there are 16 cycles of water bills, and some go outside City limits. Accounts outside of City limits pay an additional 20% more for water. The service area stretches to Military Trail, but the City limits stop east of Military Trail. Mr. Howard suggested using any feature available to get the word out. The City, over the years, has increased its use of technology. They have Twitter accounts, Facebook, a website for Police, Fire and Economic Development, so there are more avenues for residents to pursue issues with than last year. Chair Grant suggested communicating with the CRA and all departments and requested a motion for each study topic. 4 Meeting Minutes Financial Advisory Committee Boynton Beach, FL December 9, 2013 Motion Vice Chair Grady moved to approve the City Services Survey topic. Ms. Schlesselman seconded the motion that unanimously passed. Capital Improvement Plan Analysis Mr. Howard suggested making a motion to recommend items and if there was a second group they need clarification on, they could do so. There was agreement to keep the City Services Survey, Close /Consolidate Vacant City Facilities, the Analysis of Residential vs. Commercial Tax base and property taxes as a percent of per capita income compared to surrounding cities, and as to the Revenue Streams Generated by Other Cities, there was agreement to add alternative energy. It was noted there may be more that could be added. Motion Mr. Dunmyer moved to accept all those items and the Financial Advisory Committee seek clarification of the second part of the Capital Improvement Plan and they seek clarification of the Debt & Debt Services item. Ms. Schlesselman seconded the motion that unanimously passed. Motion Mr. Dunmyer amended his motion to include clarification of items numbered 2, 3 and 6 (of the study topics). Ms. Schlesselman agreed to the amendment that unanimously passed. Mr. Howard explained the agenda item will have the list and he would request clarification on the items and any other items they want the Financial Advisory Committee to look into. He commented the item will be on the January 7, 2014, City Commission Agenda. The next meeting was scheduled for December 23, 2013. Motion Mr. Dunmyer moved to cancel the December 23, 2013 meeting. Vice Chair Grady seconded the motion that unanimously passed. Mr. Dunmyer inquired if the Committee could recognize former Chairman, Don Scantlan's service to the Committee. Mr. Howard explained when the Committee appointments were made, the City Commission had already thanked him for his service. 5 Meeting Minutes Financial Advisory Committee Boynton Beach, FL December 9, 2013 The Financial Advisory Committee will meet on January 13, 2014. It was suggested the members attend the January 7, 2014, City Commission meeting for the agenda item and introduce themselves to the Commissioners. If all was approved, members could come to the meeting on January 13 with ideas to form the survey. Mr. Howard will email the members the survey used last year. Chair Grant requested the members think about adding a raffle to improve the response rate of the survey and how to improve marketing it. Mr. Howard pointed out he would have to inquire if it was permissible to have a raffle, and if so, how to implement it. Mr. Howard was unsure what the Committee's limitations were. He also agreed to send the members the agenda item with the backup. 4. Adjournment Motion There being no further business to discuss, Mr. Dunmyer moved to adjourn. Vice Chair Grady seconded the motion that unanimously passed. The meeting was adjourned at 7:00 p.m. datuw� t Catherine Cherry e ry Minutes Specialist 923013 6