Loading...
Minutes 07-23-91MINUTES OF THE CITY COMMISSION BUDGET WORKSHOP MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA TUESDAY, JULY 23, 1991 AT 7:00 P.M. PRESENT A~line Weiner, Mayor Ed Harmening, Vice Mayor J~se Aguila, Commissioner Liillian Artis, Commissioner Lynn Matson, Commissioner J. Scott Miller, City Manager Carrie Parker, Asst. City Manager Grady Swann, Finance Director Mayor Weiner called the meeting to order at 7:00 P.M. In order to establish the fact that the City of Boynton Beach is not alone in facing a difficult time of preparing the 1991-92 budget, Mayor Weiner read two articles which appeared in the July 15-26, 1991 issue of City & State which detailed the financial'constraints that many cities are under today. M~yor Weiner stated that this is the fourth City budget she has bieen involved in and it is the most difficult. While last year was not easy, this year is worse because the economy is much wiorse and our income from state sales tax is also worse. She sitated that the City will try to prepare itself for whatever hap- p~ns this year. In describing this year's budget, Mayor Weiner stated that it has $i50,000 in contingency funds and zero dollars in capital improve- m~nt funds and this marks the last of the community improvement f,Unds unless something can be done about it. M~yor Weiner asked that the Commission express its feelings to be c~rtain that they are all heading in the same direction. ~ice Mayor Harmening stated that he made a commitment ten days ago that he is very much opposed to s tax increase this year and he stands by that commitment. Commissioner Artis agreed that she too is opposed to a tax increase and stated that if there is any other way to finalize the budget, she would want it done that way. Commissioner Matson expressed her feeling that she is very much opposed to a tax increase and she will work very hard to see that we hold the line. C~mmissioner Aguila stated that in order to accomplish this dif- ficult feat, it will be necessary to look at things on an item b~ item basis and make a careful judgement as to whether that ser- vice or function is necessary in the times that we are e~periencing now. Perhaps we will find that some things can be MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 put off until times get better. could avoid raising taxes. He would be very pleased if we Mayor Weiner confirmed that she too is absolutely opposed to raising taxes this year and will do everything possible to cut the budget so taxes will not be raised. She expressed that it is a good feeling that all will be struggling together toward a com- mon purpose which is being responsible to the citizens' needs and pocketbook s. City Manager Miller began by explaining that the budget as pre- sented proposes a .4224 increase in millage rate. Staff is pre- pared to work with the Commission in making appropriate and necessary cuts as they go through the budget. REVIEW OF GENERAL OPERATING FUND REVENUE City Manager Miller began by explaining the revenue portion, pointing out that if revenues do not come in, services must be cut. The City is $364,000 in the red in the General Operating Fund from last year. This budget does not add that figure in to equal zero for a prior year fund balance. It is hoped that lack of revenue does not create an additional deficit. Florida Sta- tute specifically states that if a City ends its General Operating Fund in the red for two consecutive years, the State has the opportunity to implement a series of management practices and policies. This year, factors have been built into the budget in case revenues do not come in as anticipated. Uice Mayor Harmening asked where the City stands as far as receipt of tax revenue. Grady Swann responded that we are $280,000 short at this time. City Manager Miller explained that revenues, in addition to ad ~valorem taxes, include franchise and utility taxes, licenses and permits, state and local shared revenues, charges for services, !fines and forfeitures, miscellaneous and transfers from other ~funds. When comparing last fiscal year's amended budget to this ~fiscal year, we are down $258,000 in the revenue stream. Page i Personnel services represents 80% of the general operating budget and City Manager Miller stated that this is one of the ihighest percentages that he has ever seen. Economic and non- ieconomic benefits outside wages are choking the City. This 80% must be lowered either through benefit packages or personnel. -2- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 Other areas such as plant assets maintenance, electric and water, operating expenses and medical supplies, must be met and cannot be cut. Commissioner Aguila asked if we are able to cut the 80% down as well as reduce the 1991-92 budget by $1,300,000, would we find ourselves where we were last year assuming we receive all antici- pated revenues. Scott Miller confirmed that to be true. Page 1 The preliminary Certificate of Taxable Value which we receive from the Property Appraisers Office is $1,938,418,865 which will be adjusted in the months ahead. The actual figure will be lower because the Property Appraisers Officer is more receptive to decreasing individual's assessments upon appeal; therefore, less revenue is received. Our collection rate will probably be 98.5%. In the past three years we have been collecting 95%. We must also consider that people are not taking full advantage of the discount available but are paying their taxes later rather than early at a discount. Mr. Miller stated that the estimated millage is $14,915,141 with 1.5% non-collections and 3.2% in a proposed millage rate, keeping in mind that one mill equals $1,848,243. This means we must cut 1/2 million dollars from the budget. Prior to August 4th, when the Property Appraiser delivers the preliminary taxable value to the City, the City must notify the Property Appraisers Office of our proposed millage rate. This rate may go down but it cannot go up unless all property owners are notified by first class mail, which is extremely costly. Pa ge 5 City Manager Miller explained that of total Utility Taxes received, only 48% is collected because 35% of it is applied to ~inancing the debt on the 1986 bond issue for recreational and ~apital improvements and 17% goes into a fund for the 1990 bond i. ~lssue, Tradewinds. ~ity Manager Miller further explained that several years ago we were collecting in excess of $1.5 to $1.7 million in Building Permits and Plan Check Fees; however, because of the economy, the activity is not there and it is not known when this will be resurrected. We have also experienced a shortfall in beach decal fees received thus fa r. -3- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 351.20 State Revenue Sharing A decrease of $60,000 was projected by the State for State Revenue Sharing. Unfortunately, we had already estimated the sales tax in our budget prior to receiving the booklet from the State on July 18th. 351.80 Sales Tax The State's projection of our share of state sales tax is $2,443,506. We had projected $2,230,000: however, this figure is based on 100% and sales tax has not come in at 100% for the past few years. Therefore, a 95% factor was applied to the projected figure received from the State, increasing this revenue by $91,000 to a total of $2,321,000. Page 8 422.01 Fire Services This revenue is based on a proposed agreement between the City and the Village of Golf wherein we will provide the Village of Golf with fire, EMS services and fire inspection services for a fee of $80,000. This seven-year agreement locks in the figure for two years after which the fee will adjust in accordance with the consumer price index. 429.10 Burglar Alarm Decais Commissioner Aguila asked for clarification of the optimistic figure of $34,050. City Manager Miller stated that we have ~ollected $34,050 as of 7/10/91. He feels $25,000 is attainable ~n the next fiscal year. This was underestimated last year. They are. finding that a lot of individuals have alarms which were not registered. This is determined when false alarms go off. This could be increased but he is not certain about it. ~ommercial alarms are registered every year whereas residential alarms are only registered one time and more and more people are looking into the residential. Page 9 499.90 Interim Services Fee this has been transferred to the Transfer Account of 816.91. h~hen the Interim Services Fee is collected, it must be done so in a self-sustaining trust fund in order to account for the use of the Interim Services Fee. It cannot be a direct revenue source into the general operating fund. At the end of the year Ne document what services were added; for example, this year it 'would be the additional 16 firefighters we have added out West. -4- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 Page 11 699.10 Miscellaneous Income At Mayor Weiner's request, City Manager Miller explained that this income represents anything not accounted for in the budget, i.e. the donation from the Kiwanis Club and the CDD petition. 816.91 Transfer from Miscellaneous This is the amount received from line item 499.90. 821.12 Utility CIP Administrative Fee This fee will be transferred in from the 1990 bond issue. We may also have one from the golf course which will be in an account named Golf Course CIP which we are estimating at $40,000 revenue. SUMMARY OF REVENUE City Manager Miller stated that new revenue which has been ~dded on top of the $28,843,732 as shown on Page 12 is $91,000 and $40,000 for a total of $28,974,732. This will be our new revenue figure unless there are other areas where revenue can be bolstered up. Mayor Weiner reminded everyone that we must hope that the revenue figure from the State will not be cut back. Commissioner Aguila asked if the City had done a study as to whether the fees we charge cover the costs of the services we perform. City Manager Miller responded that we did a study last year and as a result we increased every fee in Engineering, Planning and Building by at least 25%. This included fees for occupational licenses, fire inspection and beach decals. Commissioner Aguila made a suggestion that we may want to con- sider. In Ft. Lauderdale, they charge an administrative fee in their development review process which is $2,500 initially. They keep a running tab of expenses involved in the plan review. When that amount has been expended, they halt proceedings and request additional funds. City Manager Miller stated that at this time we have no major development upcoming in the City; however, he will look into it. Vice Mayor Harmening pointed out that our total revenue figure is $28,900,00 if no unexpected revenue comes in. Mayor Weiner asked if any cities so far this year have projected decrease over last year's taxes. City Manager Miller stated that older cities with less growth in Broward and Dade Counties may experience that as they have reached complete build-out and a~so are just about at their millage rate cap. -5- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA EXPENDITURES JULY 23, 1991 City Manager Miller prefaced this area by stating that budgeted '91-'92 over '90-'91 shows a total increase of $1.3 million, of which $929,00 is personnel oriented. CITY COMMISSION Page 16 Th~s year's proposed budget for the City Commission actually decreased over last year's amended budget by $3,827 through decreases in business meetings and memberships. Discussion ensued concerning business meetings and reimbursable expenses with the result that Mayor Weiner suggested that if we do well with the local legislative delegation meetings, perhaps it will not be necessary to attend the later one, creating a reduction in this line item. This figure will be left as it is but the Commission will try to come in lower than the proposed budget figure. When City Manager Miller stated that the Mayor's Leadership Institute Conference was included in business meetings, Mayor Weiner advised that she is not attending; there- fore, a reduction of $916 will be made. This reduces line 470 05 to $10,084. ' CITY MANAGER Page 17 Personnel Services City Manager Miller explained that there was a reduction in this area: there are now only seven (7) full-time positions, down one position from previous years. Pa ge 24 City Manager Miller reviewed the line item of Management Package, indicating no proposed increase. If a cost of living and 5% performance raise were included as it was last year, there would be an increase of $1.2 to $1.3 million. Page 25 470.05 Business Meetings Discussion ensued concerning memberships and business meetings wi~h the result that cuts will be made to lower this line by $1 000. -6- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 CITY CLERK Page 26 City Manager Miller advised that there is a reduction in the total over last year of $13,500. There are 8 full-time positions in this department. City Manager Miller cannot see where this Can be cut. During a general discussion concerning cutting positions, City Manager Miller advised that the figure of $800,000 to $900,000, bY which the budget needs to be reduced, represents between 15 alnd 20 positions. ~age 31 ' 470.12 Legal Ads - Election Diiscussion occurred concerning run-offs with Mayor Weiner stating h~r belief that run-offs are unnnecessary and a waste of tax- P~yers' money. As this is determined by referendum, it was d~cided to place this matter on the agenda for the August 6th Regular City Commission Meeting. 475.00 Legal Ads - General D~scussion occurred concerning the required size of ads with the result of a reduction on this line of $1,000. 672.00 Office Machines ~ Equipment C~ty Manager Miller advised that this line includes three repla- cement items which are necessary to run the City Clerk's Office. FINANCE C~ t r~ c~ ~is budget represents a reduction in personnel from 10 to 8. .ty Manager Miller is looking at the position of Accountant III )r elimination. This represents a salary savings of approxima- ly $32,500, for a total of $35,825 including fringe benefits. 470.05 Business Meetings, 470.10 Training · ady Swann itemized the three meetings that are attended and, in ~sponse to Mayor Weiner's request, agreed that $1,500 could be It out of Training which reduces that line item to $3,000. -7- MINUTEs _ CITy COMMISSION BUDGET 'WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 CITIZENS ~ SERVICES Pa ge 44 This department currently has six employees: however, two Will be funded out of the budget for Utility Billing (Collection Division) because their duties are primarily Utility billing related. Page 4~6 Contractural Services was cut to $1,000 to Cover Wages for temporary help to assist With Beach Decal Sales during the busy season. Last year it Worked out Well so it WaSh t necessary to expend that much. , Page 5~3 4~30.0__7 Computer Maintenance, 43_~0.0_9 Software Maintenance The.se line items increased since warranties expiring and maintenance agreements are now on the equipment are necessa ry. 499.00 Othe_r Contractural S~ervices This $20,000 has been budgeted for an efficiency study and a 5-year plan with regard to the computer needs of all the depart ments in the City. _ Discussion occurred on this item with the Commissioners stating their feelings that since we are experiencing hard times, perhaps it could be put off for a year. City Manager Miller agreed that this could be postponed for a year; however, the Institute of Government out of Florida State in Tallahassee would be providing this study at a cost much less than normal consulting costs. City Manager Miller explained that Delray Beach had this study done and were very pleased with the outcome and it saved them money. He explained that the Purchasing Department will be coming on line with the computer system shortly as will Personnel. The study will answer such questions as are we operating our computer system in an efficient manner, do we need the number of employees we currently have, etc, It was decided to put this item on hold at the present time, leaving it in the reserve account. _670.01~ _Computer Software City Manager Miller explained this line item is a Property Appraiser inquiry system which provides us with information from the County and he feels it is necessary, particularly as it rela tes to code enforcement.~_ -8- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 CITIZENS SERVICES ~ag~ 4--4 This department currently has six employees; however, two will be funded out of the budget for Utility Billing (Collection Division) because their duties are primarily utility billing related. Wage 46 ¢ontractural Services was cut to $1,000 to cover wages for ~emporary help to assist with Beach Decal sales during the busy Season. Last year it worked out well so it wasn't necessary to ~xpend that much. ~age 53 430 07 Computer Maintenance 430 09 Software Maintenance These line items increased since warranties on the equipment are expiring and maintenance agreements are now necessary. 499.00 Other Contractural Services ~nis $20,000 has been budgeted for an efficiency study and a 5-year plan with regard to the computer needs of all the depart- ~ments in the City. ~iscussion occurred on this item with the Commissioners stating i~heir feelings that since we are experiencing hard times, perhaps it could be put off for a year. City Manager Miller agreed that ~his could be postponed for a year; however, the Institute of Government out of Florida State in Tallahassee would be providing this study at a cost much less than normal consulting costs. City Manager Miller explained that Delray Beach had this study done and were very pleased with the outcome and it saved them money. He explained that the Purchasing Department will be coming on line with the computer system shortly as will Personnel. The study will answer such questions as are we operating our computer system in an efficient manner, do we need the number of employees we currently have, etc, It was decided to put this item on hold at the present time, leaving it in the reserve account. 670.01 Computer Software City Manager Miller explained this line item is a Property Appraiser inquiry system which provides us with information from the County and he feels it is necessary, particularly as it rela- tes to code enforcement. -8- MINUTES - CITY COMMISSION B~DGET WORKSHOP MEETING B!OYNTON BEACH, FLORIDA JULY.23, 1991 CITY PLANNER This department will be staffed by eight employees with one ~ssistant Planner position being eliminated. page. 86 i 470.07 Memberships ris Cutro responded by saying this includes membership to erican Planning Association for himself and 3 planners as well } s a subscription to Planning Advisory Service and Urban Land nstitute membership. 470.07 Business Meetings ~ese are meetings with regional planning councils at the County nd informational meetings regarding State laws. The only travel .nvolved is to Tallahassee. 672.0 Office Machines & Equipment ~hris Cutro explained this expenditure of $1,376 is for a replace- nent KROY Machine, which is a label maker that is used by various departments throughout the City. FACILITIES MANAGEMENT ~ity Manager Miller pointed out that this work force is decreasing from 33 to 29. He is looking toward contracting .out ~or custodial services with this being accomplished either through attrition or complete layoff. He pointed out that if private business is being successful by contracting out custodial services, public government should be able to do the same. Building maintenance will be retained for such things as window repair and other minor repair. There are two re-classifications being recommended in this department, namely, Building Maintenance Mechanic I to HVAC Mechanic and Maintenance Worker II to a Building Maintenance Mechanic I. These re-classifications are being made so that the classification more closely fits the actual work the employee is performing. -10- ~INUTES - CITY COMMISSION ~UDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 City Manager Miller mentioned that Craig Grabeel, Director of Management Services, will be leaving at the end of September. This position will be eliminated and Facilities Management will come under the Director of Administration. Vice Mayor Harmening expressed his sorrow at Craig's leaving, stating that the City has been well served by him. GENERAL ADMINISTRATION/CITY HALL 472.00 Printing and Binding This line item includes the costs of the quarterly newsletter. City Manager Miller advised the Commission that the Recreation Department is considering a recreation program which will include a mail out and will be asking the Commission to become involved in a new policy/procedure that would establish corporate spon- sorships. Much discussion took place concerning the feasibility of this approach. Melody Green and Charlie Frederick responded to questions by the Commission. City Manager Miller suggested that there may be a way to incorporate portions of the newsletter in With the bulletin in order to cut down on expenses. Mayor Weiner suggested that this line item of $17,133 be put on hold until the next workshop. 976.00 Self Insurance Qlivia McLean explained that the actuarial study showed that the required reserve for the self-insurance fund as of 9/30/90 for all lines, including workers compensation, general liability, $uto liability and auto physical damage, should have been 1,232,594. The project funding for this year was $990,829. Therefore, this only represents the projected funding and does hot make up the objective that we have for the required reserve. By 1994, each city will be required to have its liabilities f~nded or it will be written up in audit. We must begin doing the )rojected funding. In the past we have not funded self insurance in an actuarily sound manner. 987. Contribution to High Schools 988. Contribution to Human Services 989. Contribution to 'Child Care .In response to Mayor Weiner's question, City Manager Miller ~ladvised that we have been giving each high school $500. City Manager Miller began the discussion of these line items by ~stating that if we are going to be laying employees off, we !should look at cUtting back on line items such as these. Mayor -11- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23,1991 Weiner stated that in such a tight budget year we should adopt the theory that taxpayers' money should pay for taxpayers' ser- vices. The Commission agreed to remove the $2,500 contribution to high schools and the $20,000 contribution to Human Services. Concerning the contribution to child care services, this will be researched by City Manager Miller, taking into consideration that the County has cut back on funding for this. 132.00 Unemployment Grady Swann pointed that this line item will have to be increased since we will have considerable unemployment contributions to make as a result of the layoffs. RISK MANAGEMENT Personnel in this department is now at two (2) because self- insurance should be an internal service fund. The Administrative Assistant I will be transferred to the Public Works Department because the employee in that position is retiring January 1. At that time the budget will be revised to represent 1/2 person since Olivia will be serving in the general fund capacity over Communications and Facilities Management and in the internal fund capacity in Risk Management and Self-Insurance. C OMMUN I CAT IONS This department has 23 full-time positions and three part-time positions who are used on an "on call" basis. We try to keep a certain number around the clock on all three shifts. One posi- tion is frozen and two positions are being filled by the "on call" personnel. Twenty-six full-time positions are needed once we can fit this in the budget. City Manager Miller explained several line items including 413.00 Electric in which $6,000 was allocated for a separate service Which had to be established at the transmitter building, instead of being run off Utilities Service. Page 118 670.02 Capital Outlay The most costly item is a Dictaphone 9000 channel tape logging machine with separate reproducer at $45,320; however, this is 100% reimbursable. -12- MINUTES - CITY COMMISSION BUDGET WORKSHOP MEETING BOYNTON BEACH, FLORIDA JULY 23, 1991 MANAGEMENT SERVICES This department has been zeroed out. CLOSING COMMENTS City Manager Miller pointed out that layoffs are only occurring where absolutely necessary. He stated that he is looking at the possibility of laying off the 2-1/2 positions in Animal Control and turning this over to the County. Mayor Weiner explained that the Commission is not rushing through this. There are approximately 15 positions which must be elimi- nated to cover the $900,000 which will put the City in a much better financial position. This review of the General Operating Fund will continue tomorrow night with Thursday night being spent on Special Funds. The meeting was properly adjourned at 11:15 P.M. CITY OF BOYNTON BEACH ' ' Ma yor Vice May ATTEST: Cit~clerk Recording Secretary (Four Tapes) ' ssioner Commissioner Commissioner -13-