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Minutes 09-22-20 2nd Budget Hearing Minutes of the Boynton Beach City Commission Special Meeting Held Online Via the GoToWebinar Platform Boynton Beach, Florida On Tuesday, September 22, 2020, at 5:30 P.M. Present: Steven B. Grant, Mayor Lori LaVerriere, City Manager Ty Penserga, Vice Mayor James Cherof, City Attorney Justin Katz, Commissioner Crystal Gibson, City Clerk Woodrow L. Hay, Commissioner Christina Romelus, Commissioner 1. Agenda Items A. Call to Order - Mayor Steven B. Grant Mayor Grant called the meeting to order at 5:30 p.m. John McNally, Director ITS, read a statement explaining how the meeting would proceed and how the public could participate. Invocation Mayor Grant gave the invocation in honor of Rosh Hashanah, the Jewish New Year. Pledge of Allegiance to the Flag led by Commissioner Justin Katz Commissioner Katz led the Pledge of Allegiance to the Flag. Roll Call City Clerk Gibson called the roll. A quorum was present. Agenda Approval: 1. Additions, Deletions, Corrections Commissioner Katz requested to add a discussion about virtual meetings versus in- person City Commission meetings as Item F. Special Meeting Minutes City Commission Boynton Beach, Florida September 22, 2020 2. Adoption Motion Commissioner Romelus moved to approve the agenda as amended. Vice Mayor Penserga seconded the motion. The motion unanimously passed. B. Conduct Second Public Budget Hearing for FY 2020/2021 Final Millage and Annual Operating Budget Mayor Grant wanted the City Commission to discuss the budget first, and then have discussion. Mara Frederiksen, Finance Director, gave a presentation and explained the purpose of the meeting is to discuss and adopt the final millage rate. The millage rate of 7.9 Mills for 20/21 was unchanged from 19/20. The General Fund budget was $99.2M and the total budget was $226.3M. All funding sources are $226.3M. She reviewed the separate components of the budget as contained in the slide. A breakdown of the fund reflected the General Fund was $99.2M; the Enterprise Fund was $65M; the Internal Service Fund was $16.4M; the Special Revenue Fund was $4.3 million; the Capital Projects including the General, CIP, Parks and Recreation Trust and General Government and Utility funds were $30.2M. The Debt Service was $10.2 million. The proposed tax with the rollback was 7.9 Mills. The roll back rate was 7.4911 Mills. If using the 7.4911 Mills, the deficit budget difference would be $2,115,000. Staff proposed to maintain the same millage rate of 7.9 Mills. The tax experience is 5.46% per the TRIM calculations. There were no questions on the budget from the City Commission. Mayor Grant inquired about the Reserves for the last five years and asked how revenue was affected when the City changed the fee for Harvey Oyer Park. Ms. Frederiksen responded they have not adjusted the revenue for that change. Commissioner Romelus asked how the City will handle the $1.2M shortfall. Ms. LaVerriere explained they will use $900K of undesignated fund balance to fill the $1.2M gap. One new position in the budget was removed, which was cyber security in ITS at $100K. The FPL revenue was up about $150K which made up the difference. The Appropriation of fund balance in this budget was $931,263. Commissioner Romelus asked about Reserves and the 10% reserve requirement. The estimated fund balance is $16.5M at the end of this year. Based on 10% requirement they will have to leave $9.9 million in reserve. The difference between the $9.9M and the $16.5M is the undesignated, savings account, reserves. Vice Mayor Penserga asked how long the Reserve fund would last in terms of monthly operations if there was a crisis and learned it would cover the City for three months. He 2 Special Meeting Minutes City Commission Boynton Beach, Florida September 22, 2020 asked if a three-month operating reserve fund was the intended goal and if the City met that goal. Ms. LaVerriere responded she would prefer to see six months, but the amount of monies to be placed in the reserve fund is a policy decision. The City Commission wanted 10%, but it could be changed. Each year the Commission sets a budget, and they always come in under it. The budget is an estimate of what they will need. Ms. LaVerriere asked Ms. Frederiksen how the City was doing, comparatively, with other cities and learned the City is reasonably healthy. The Utilities Department has six months in their fund balance and she would like to see the City have six months as well. Ms. LaVerriere explained prior to the recession, the City had $26 million in its reserved balance during the recession which saved them and now they are building it back up. Commissioner Hay concurred and would like to see a six-month reserve balance, especially when they are looking at climate change and other changes. He supported thinking ahead and being proactive if a catastrophe occurred. He favored starting the additional savings with the next budget. Chair Grant disagreed because the City’s funding is not the same as most businesses. December through April they receive ad valorem taxes. If no one pays the taxes, a tax certificate is issued and the City gets paid in May. He wanted to invest in the City. He recalled when fire and police needed extra funds for pensions and to be competitive, the City paid. He noted the City has not lowered the millage rate. He wanted the residents to understand the Commission is aware its citizens are paying the City’s burden. Delray Beach goes out 10,000th of a decimal for the millage. He would like the City go out further and after this year, they plan to go to 7.899 instead of 7.9. It would increase property values and let residents and businesses know they are using the residents’ money wisely. The last time it was below 7.9 mills was six years ago. Mayor Grant pointed out the City saved $1.5M building Town Square and that property values have been increasing. Vice Mayor Penserga thought the question was timing, and now was the time to lower the rate. Next year, he would support aggressively lowering the rate. Commissioner Katz thought marginally lowering the millage would only result in a very slight difference and it might look patronizing to the citizens as they are claiming they are lowering taxes without lowering them to a noticeable degree. He supports meaningful tax cuts, but not right now. He was comfortable with the proposed millage rate. Commissioner Hay agreed. He thought it was good the City was able to keep the millage rate steady and noted they city could move funds around as needed. Mayor Grant opened public comment. nd Darryl Sanders, 2001 NW 2 Street, was aware last year, there were no funds for City holidays and events, and commented his foundation has formed a Juneteenth Day Committee. He inquired how much was in the budget for such activities and who he should contact. Ms. LaVerriere explained the City funds about $25K for MLK, Jr. Day. They did not increase the budget for the event and they are funded for the parade. But they only fund those three events. She thought they could take $5K from the MLK, Jr. 3 Special Meeting Minutes City Commission Boynton Beach, Florida September 22, 2020 Budget for Juneteenth Day. Mayor Grant explained Eleanor Krusell will get with the MLK Committee, and pointed out one thing they did not have for MLK Day was profit vendors or sponsors. He thought working with a non-profit would make it easier than the City running the show for the Juneteenth event. There were no further comments. Proposed Resolution No. R20-106 - Adopt the Final Millage Rate for the General Fund for Fiscal Year 2020-2021. Motion Commissioner Hay moved to approve the millage rate at 7.9. Commissioner Katz seconded the motion. The motion passed 4-1. (Mayor Grant dissenting.) City Attorney Cherof read Resolution No. R20-106 by title only. Motion Commissioner Katz moved to approve Resolution No. R20-106. Commissioner Hay seconded the motion. The motion passed 4-1. (Mayor Grant dissenting.) Proposed Resolution No. R20-107- Adopt the Final Budget for the General Fund and all other funds for Fiscal Year 2020-2021. City Attorney Cherof read proposed Resolution No. R20-107 by title only. Mayor Grant announced he was excited the City has Dog Day at the beach. He, the Sustainability Coordinator, and others planted 200 plants for the dune systems at the beach. Motion Commissioner Katz moved to approve. Vice Mayor Penserga seconded the motion. The motion unanimously passed. B. Proposed Resolution No. R20-108 - Ratification by City Commission of the Boynton Beach Community Redevelopment Agency (CRA) annual budget for fiscal year 2020-2021. City Attorney Cherof read proposed Resolution No. R20-108 by title only. Motion Commissioner Katz moved to approve. Vice Mayor Penserga seconded the motion. The motion unanimously passed. 4 Special Meeting Minutes City Commission Boynton Beach, Florida September 22, 2020 C. Proposed Resolution No. R20-109 - Resolution ratifying the Quantum Park Overlay Dependent District annual budget for FY 2020-2021. City Attorney Cherof read proposed Resolution No. R20-109 by title only. Motion Vice Mayor Penserga moved to approve. Commissioner Katz seconded the motion. The motion unanimously passed. D. Proposed Resolution No. R20-110 - Approve the Parking Division fee schedule associated with the installation of automated parking technology which includes parking rates, permits, valet, violations, and penalties. City Attorney Cherof read proposed Resolution No. R20-110 by title only. Motion Commissioner Katz moved to approve. Commissioner Hay seconded the motion. Commissioner Katz wanted to ensure there were no speakers before the vote. Mr. McNally advised there were no comments posted or speakers in the queue. Vice Mayor Penserga wanted to reiterate his comments about the Boat Ramp fees, and agreed users should pay the fees, but objected to the timing. He did not understand the rush to make that change, which he would not support. Commissioner Katz asked when would the ramp was scheduled for repairs or maintenance and learned it was scheduled for this year. City staff completed the design and in next year’s Capital Improvements fund they will spend $1.7 million. It will be completed within the next fiscal year. Andrew Mack explained they have not been awarded the Florida Inland Navigation District grant, but have the funds in the CIP. Commissioner Katz asked, if it moved forward in the next fiscal year, how much of a disruption it would be between when the work started and was completed. Mr. Mack explained if awarded the grant, they would go out to bid in the first quarter and then start work in the second or third quarter. The City can phase the project so there will be some disruption of the ramp, but it will be open during construction. He thought it could be closed down one or two days. They would try to avoid weekends. Commissioner Katz noted the current rate is $200 for Florida residents and the prior rate was $50. He thought because there might be disruptions, pass holders may not get the full value. He supported $100 for this year and increase the fees when the project is finished. 5 Special Meeting Minutes City Commission Boynton Beach, Florida September 22, 2020 Mayor Grant noted the fee was specifically for boaters. He thought if $200 was too much, boaters use an á la carte method. It was pointed out there have been issues with people abusing the boat ramp. He supported keeping it at $200 and if they need to lower it, they could. Commissioner Hay wanted Mr. Mack’s opinion that if they reduced the fees from $200 to $100, they would still move forward with the schedule they have. Mr. Mack explained the funds for the project were surtax dollars and grant funds. The revenue would not delay the project. Colin Groff, Assistant City Manager, explained there are two reasons why they are charging for parking. When charging a premium, it is an incentive to leave when finished. With free parking, people leave their vehicles there for longer periods of time. The second reason is the fee helps recover operating costs. The impact on the $350 to the $200 was between $30K to $40K a year. For every $50 reduction, the impact was about $15K. Adam Birdwell submitted a question. He understood residents need to pay for their fair share for use of the ramps. He asked about charter boats for hire that use the ramp, but cannot pick up paying customers at the ramp. If the City enforces and fines those users accordingly, or requires a license, it may be a way to raise revenue without hurting residents. Mr. Mack was unaware about a prohibition using a ramp without a Business Tax Receipt (BTR), but there are very few car spaces. If they can use the ramps, they would be a paying customer and they would pay the hourly rate using the trailer space parking. Mr. Groff explained there are seven or eight car spaces that the City decided would be free. Anyone who is a State of Florida resident can buy the pass, including commercial boaters. One could pay á la carte, or buy a pass. Mayor Grant asked what would occur when the 10 free spaces are filled. Mr. Groff explained if they park in a trailer spot, they are charged. The City does not have any regulations if people park in a trailer spot; if they park there, they pay the parking fee. Mayor Grant asked what would occur if two cars park in one trailer parking spot. Mr. Mack explained if they are in metered parking, they have to pay the meter. it would be a case-by-case situation. He also offered they have received numerous calls when they reduced the rate from $350 to $200 as the callers thought it was more reasonable. Motion Commissioner Katz moved to amend to $100. Motion died for lack of a second. Motion Commissioner Hay moved to approve the Resolution to set the fee at $200. Commissioner Romelus seconded the motion. The motion passed 3-2, (Vice Mayor Penserga and Commissioner Katz dissenting.) Item F. Discussion of virtual meetings versus in-person meetings. 6 Special Meeting Minutes City Commission Boynton Beach, Florida September 22, 2020 Commissioner Katz did not see a need to rush to have in-person meetings. Attorney Cherof explained the Governor’s most recent order allowing virtual meetings will expire September 30. There is insufficient time for the City to take up a city ordinance under a Declaration of Local Emergency. The ordinance already had the first reading, but the second reading was tabled. The procedure is to adopt an emergency ordinance that th would extend the ability to meet virtually beyond September 30. It would require a special meeting which the Commission could schedule. City Attorney Cherof explained he prepared an emergency ordinance that explains in the Whereas clauses all the reasons for extending the provisions further. The ordinance is not open ended, but they do not know what will happen. The emergency ordinance vehicle allows for one ordinance reading with notice to the public. It does not require two ordinance readings. The Commission can cancel the special meeting at any time. Mayor Grant asked if the Governor does not extend his order if it was okay if they plan for a meeting next week and learned it was. It was handled the same way as declaring an emergency for a tropical storm that will develop into a hurricane impacting the City in the future. The Commission was within its legal rights of the City under State Statute, and they can cancel a special meeting at any time. Mayor th Grant requested they schedule a meeting on Tuesday 29 at 5:30 p.m. to discuss at a virtual meeting an emergency ordinance. Motion th Commissioner Romelus so moved to meet on the 29. Vice Mayor Penserga seconded the motion. Commissioner Katz noted he has a conflict and supports the ordinance. Mayor Grant explained what he did not like about the current virtual ordinance is the City Commission is not required to put their face on video chat if they have the capability to do so. He noted the City has those resources and he wished it would be in the Ordinance. Motion th Commissioner Katz offered a substitute meeting on Monday the 28 at 5 p.m. Mayor Grant noted it was Yom Kippur. Commissioner Katz asked to have a special meeting on th Wednesday the 30 at 5 p.m., but it was noted that was the date of the deadline. th Mayor Grant withdrew his motion for the 29 and accepted the substitute motion to meet th on the 30at 5 p.m. City Attorney Cherof explained the Governor’s Order will expire at th midnight on the 30. If the City Commission meets earlier in the day, they are fine. Vice Mayor Penserga seconded the motion. The motion unanimously passed. City Attorney Cherof commented he included provisions for hybrid meetings in the Ordinance. Mayor Grant announced he was excited to be in Chambers next month. 2. Adjourn 7 Special Meeting Minutes City Commission Boynton Beach, Florida September 22, 2020 Motion There being no further business to discuss, Commissioner Hay moved to adjourn. Vice Mayor Penserga seconded the motion. The meeting was adjourned at 6:24 p.m. Mr. McNally read a statement explaining how the public could access the video meeting. CITY : B• ON BE H Mayor - Ste en B. - ant Vice inaTiFy "enserga Co "sion-r— Justin Katz Commissioner—Wy'drow L. Hay /ISL—. Commi '",'Fina Romelus ATTEST: C tal Gibson, MMC City Clerk Catherine Cherry i Minutes Specialist 8