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Minutes 07-12-06 MINUTES OF THE SPECIAL CITY COMMISSION BUDGET MEETING HELD ON TUESDAY, JULY 12, 2006 AT 1:30 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA Present: Jerry Taylor, Mayor Carl McKoy, Vice Mayor Bob Ensler, Commissioner Mack McCray, Commissioner (arrived 2:36 p.m.) Mike Ferguson, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Janet Prainito, City Clerk REVIEW PROPOSED BUDGET FOR FISCAL YEAR 2006-07 (Continued from Julv 11, 2006) Mayor Taylor called the meeting to order at 1:35 p.m. Mr. Bressner distributed a list recapping the items discussed at the previous day's meeting. GENERAL FUND On page 33, Commissioner Ensler summarized a perceived inconsistency between the Building permit projected revenue decrease of $l.3M and the Planning and Zoning projected expense increase of $609,000. Mr. Bressner reaffirmed the previous discussion that the expenses increased due to the additional staff. On page 34, Commissioner Ferguson pointed out the code enforcement fines revenue was projected at $200,000. He noted there are 500 outstanding liens of which 250 are over $10,000 each, indicating only 6% of the total liens are being collected. Commissioner Ferguson suggested an overhaul of the imposition of liens should be undertaken since the monies are uncollectible. Attorney Cherof interjected the bulk of the liens are on homesteaded properties making them exempt from foreclosure. Only when the property changes ownership can the liens be collected. Commissioner Ferguson contended the imposition of the lien was his concern. Mayor Taylor added the imposition of the lien is intended to leverage compliance. Mr. Bressner indicated staff would review the lien process and recommend any changes that may be appropriate. On page 40, Commissioner Ensler requested an explanation of the difference between the reimbursable expenses and meetings categories. Mr. Bressner explained the reimbursable expenses are those the Commissioners receive on a monthly basis. The monies under meetings cover expenses of members of the Commission to represent the City in organizations outside the City. The figure includes three trips to Tallahassee, Palm Beach County Days, Commission retreat and four meetings for the Board of Municipal Investment Trust. 1 Meeting Minutes Special City Commission Meeting Boynton Beach, Florida July 12, 2006 On pages 42, 43, and 44, Commissioner Ensler suggested the City Manager's objectives and goals include a commitment to the handicapped, veterans and expansion of cultural activities within the City. It was agreed the objectives should be added after further review and discussion to establish the detail and specifics involved. On page 55, Commissioner Ensler requested two concerts by the Boynton Beach Symphony Orchestra be added to the list of City events to be promoted as a goal. Commissioner Ensler had requested $10,000 of funding for the orchestra in the event an agreement could not be reached with the Palm Beach County School District covering costs. Commissioner Ferguson contended the goal should be to enhance the promotion of all City events without listing specific events and he would not support funding for the orchestra specifically. Mr. Bressner advised the symphony had received some monies from the City through discretionary funds. The Palm Beach County School District determined the symphony was not a City recognized entity as outlined in a previous agreement, entitled to the use their facilities at no cost. Mr. Bressner indicated a letter had been sent to the School Board asking that the language of the agreement be amended to embrace the orchestra. Commissioner Ensler's request for funding was contingent on the amendment to the agreement. The policy decisions to be made are the possible funding and whether the symphony orchestra should be considered a City sponsored activity . Mr. Bressner pointed out the Gold Coast Band had been using the Civic Center for over 25 years at no cost with a high level of in-kind support from the City. The Oceanfront Concert Series, Pirates of the Intracoastal and Medieval Faire are funded by the City. The Heritage Fest is partially funded by the City. The monies are budgeted as $130,029 under Special Events. Mayor Taylor suggested using St. Joseph's auditorium as a possible site also. Commissioner Ferguson opposed adding $10,000 to the budget based on the previous refusal to add the YMCA. Mayor Taylor and Vice Mayor McKoy agreed to the addition of the $10,000 to the budget. Vice Mayor McKoy requested a review of the figures allotted for the Heritage Fest. Wayne Segal, Director of Public Affairs, responded the City budgets $50,000 for the event and he anticipated the Community Redevelopment Agency (CRA) budgeting $50,000. He added the other events listed are also partially funded by the CRA. Commissioner Ensler clarified the monies requested for the symphony orchestra would be to cover only those expenses associated with the Palm Beach County School District. Since there was not a guarantee that the CRA would contribute funding, Mr. Bressner asked for direction to submit a letter requesting confirmation of the funding for special events. On pages 198 and 199, Commissioner Ensler questioned the objective relating to the Boundless Park and the timeline for both funding and construction being inconsistent. Wally Majors, Recreation and Parks Director, indicated the goal to commence fundraising could be modified to begin immediately. Mr. Hawkins contended the entire project hinged on funding. He announced a 501(c)(3) organization was being created to allow soliciting tax deductible and philanthropic funding on a local, as well as national level, which would not be available to government organizations. Also foundations within the City and County have been contacted for fundraising for not only the Boundless Park, but also other projects in the City. 2 Meeting Minutes Special City Commission Meeting Boynton Beach, Florida July 12, 2006 Commissioner Ensler's opinion was the Commission needed to make a decision on the availability of funding in relation to moving forward with the Boundless Park project. Mr. Bressner asserted a policy decision on the source of funding was needed first. Commissioner Ensler remarked the two funding sources could be explored concurrently. Mayor Taylor and Commissioner Ensler were impressed with the idea of creating a 501(c)(3) funding source. There being no further questions, Mayor Taylor concluded discussion on the budget items. He commented he was very pleased with the effort and work done on the budget by staff. The budget enabled the Commission to offer the residents a tax break based on the work of staff throughout the year. Mayor Taylor noted the Commission must question some requests to be fiscally responsible. Also the population and development have been growing as has the services required to maintain the City, which takes money and people. Mr. Bressner personally thanked Bill Mummert, Mary Munro and staff for their excellent work on the budget. Commissioner Ensler remarked he has questioned many items and staff has responded well. Although he still had concerns regarding one matter, he would vote to approve the budget. CAPITAL IMPROVEMENTS Mr. Bressner gave an overview of the discussions and indicated funds would be folded back through the Fire Assessment Fund, but the bottom line would remain the same for the General Fund as well as the Capital Improvement Budget. He mentioned there remains $lM of unappropriated funds from the $20M bond issue. On page 322, Commissioner Ensler, found it hard to believe that $4.3M would be received through grants for the Boundless Park. On page 326, the cost of the park was also shown as $4.3M. He asked that the funding and timeline be more realistically reflected in the final budget. Commissioner Ensler also noted the current year's budget of $515,000 has not been spent and part of the monies were allocated to commence the infrastructure for the park. Mr. Bressner responded the monies were grant contingent and that grant was not received. Mr. Bressner cautioned the Commission that the feasibility study revealed a total expense in excess of $4.3M. The plans are not articulated enough to warrant an exact budget figure or anticipate a funding gap. Commissioner Ensler suggested the expense be budgeted over a period of time and Commissioner Ferguson felt that was the only alternative. Vice Mayor McKoy agreed. Mayor Taylor wanted to determine the funding sources first. Mr. Bressner pointed out the property does have a value which can assist in leveraging grants and funding. Mayor Taylor summarized the discussion that the entire Commission wanted the park to be built. The goal would be to establish incremental funding and a phasing plan to establish a finish line. Commissioner Ensler requested the emphasis be on completing the boundless playground first. However, Mayor Taylor opposed using the entire $lM remaining from the bond issue as other projects could arise during the upcoming year. Mr. Majors stressed the master plan was almost completed and a feasibility study may need to be undertaken for the sake of any fundraising efforts. The monies for the feasibility study are contained in the operating budget. 3 Meeting Minutes Special City Commission Meeting Boynton Beach, Florida July 12, 2006 On page 322, Mayor Taylor recalled plans for more development at Jaycee Park and yet no monies had been allocated for that park. Jody Rivers, Parks Superintendent, reported the current year's budget contains funds for development of Phase I of Jaycee Park. The money will be rolled over to next year's CIP. Phase II construction had already received $200,000 in grant funding. Mr. Bressner indicated $l.4M had been set aside in next year's budget for completion next year. Debbie Majors clarified a $200,000 grant had been received for Phase I and another $200,000 grant approved for Phase II. Mr. Bressner added the CRA would be funding $160,000 from the mangrove mitigation. On page 324, Commissioner Ensler questioned the $lM for land acquisition in the Heart of Boynton, since eminent domain was no longer an option. Mr. Bressner explained the targeted parcels are west of Seacrest and would be part of the affordable housing component. Seven or eight parcels have been acquired with the hope that four or five may be available for acquisition using negotiated purchases. Commissioner Ensler brought up the re-roofing of the old Library and the $2.4M contract including the cost of re-roofing. Mr. Livergood confirmed the original contract price did include the new roof on the old Library building. The $160,000 designated for the re-roofing will be needed for the change order being brought to the Commission. On the Library furnishings, Commissioner Ensler suggested competitive bidding for the $lM of furnishings would be appropriate. Mr. Bressner interjected the budget and prospective costs should be coordinated through his office first before it is submitted to the Commission. (Commissioner McCray arrived at 2:36 p.m.) Mayor Taylor gave a summary of the items discussed thus far for the benefit of Commissioner McCray. On page 327, Commissioner Ensler was confused regarding the funding for the Little League Park. Mr. Bressner explained the City had previously funded everything except the lighting for Field #1. Commissioner McCray brought up the $100,000 donation that had been made to improve the Parks. Mr. Bressner replied FEMA would be reimbursing $46,000 and authorize $96,000 as mitigation funds. The mitigation funds are an incentive to replace damage with materials that would be more resilient to hurricane winds. The Little League Board has indicated a willingness to seek volunteer contract donations hopefully netting approximately $80,000. It was agreed Mr. Bressner could negotiate with the Little League Board to get the work done as soon as possible. On page 329, Commissioner Ferguson asked for a status update on the Wilson Park project. Mr. Bressner responded the project was waiting for permits to then go out for bids. Mr. Majors was confident construction could commence in October for a 12 to 14 month project completion. Mr. Livergood indicated the plans had been returned for a second review and the contracts will be requiring completion by the end of the 2006/2007 fiscal year. Commissioner McCray asked that the original contract be as accurate as possible to eliminate the need for too many change orders. Mr. Bressner noted the construction environment remains very volatile. On page 329, Commissioner Ensler inquired if the Veterans Park project would be ready for the prep work to be done for $20,000. Ms. Rivers replied the master plan would be submitted for 4 Meeting Minutes Special City Commission Meeting Boynton Beach, Florida July 12,2006 approval at the next Commission meeting. Three artists have been selected by the Arts Commission to work in conjunction with the landscape firm. Mr. Hawkins reported by the end of August the artist will have been selected and a contract could be issued. Mayor Taylor had heard that Veterans Park may be combined with Bicentennial Park. If that were a future possibility, he questioned spending $100,000 on a piece of land that may be moved. Commissioner Ensler requested the discussion be deferred until a conference with the City Manager could be accomplished. On page 329, Commissioner McCray questioned why the allocation of funds for Sara Sims had been pushed to 2010+ and the purpose of the $200,000 in 2008/2009 to acquire property for the Sara Sims Cemetery. Mr. Livergood reported the entire project had been funded by the CRA. Commissioner McCray recalled the bond issue for the CRA included work on Sara Sims Park and he felt the project should be moved ahead. The plan for Sara Sims Park had been discussed years ago in relation to the plans for the Heart of Boynton and nothing had ever been done. Mr. Bressner replied the City was operating on the advice of the CRA and he would discuss the project with Ms. Bright. Ms. Rivers advised the property to be acquired would be adjacent to the cemetery to expand the opportunities at Sara Sims Park when Boynton Beach Memorial Park became full. Commissioner McCray noted the citizens had been told the park would be a passive park. The citizens want to continue to be buried on Woolbright, so he did not feel spending the money on Sara Sims would be in the interest of the citizens. Mayor Taylor was not aware properties were being bought to expand Sara Sims Cemetery. He felt the City should investigate getting out of the cemetery business and did not feel any expenditure should be appropriated. Mr. Hawkins discussed the idea was to expand Sara Sims Park not just the cemetery as a whole. Attorney Cherof commented the disposition of a municipal cemetery would take three to four years due to regulatory issues involved. Mr. Bressner advised the resolution on the tax rate was still outstanding. Attorney Cherof reminded the Commission the rate being set could not be increased, only decreased. Mayor Taylor also brought up the utility tax and the entire Commission agreed they did not want to pursue the utility tax. Mr. Bressner summarized the adjustments and advised the 7.2% rate would maintain a surplus of $245,000. An outstanding issue was $10,000 for the anti-bullying campaign at Galaxy and Congress Middle School. The monies could be taken from the surplus. Commissioner McCray felt the City Manager could reallocate funds to accommodate a millage rate of 7.00 to alleviate the tax burden on the citizens. Mr. Bressner recommended a deficit budget not be approved. Commissioner Ferguson had four comments. First, he felt the budget was brilliant but did not take into consideration the citizens. At a rate of 7.2 mills the citizens would only receive a 15% to 16% return. He felt at least 35% of the surplus should be returned to the citizens and decrease the ad valorem tax rate to 6.8 mills. He announced he would not support a budget above 6.8 mills. Second, Commissioner Ferguson addressed the fire assessment. He reviewed the original plans for the use of the $17M to $18M collected from the fire assessment. Although it was promised 5 Meeting Minutes Special City Commission Meeting Boynton Beach, Florida July 12, 2006 all the plans could be done with the monies collected, it now appeared to be $10M over budget on the fire operations. Third, Commissioner Ferguson noted a study had been completed three years ago that revealed the Police Department was operating in 16,000 square feet and needed 64,000 square feet. The police force has since hired many new officers and the priority should be to move the Police Department to the new fire station location and help alleviate the crowding at City Hall. Fourth, Commissioner Ferguson felt strongly the City of Boynton Beach had too many employees, particularly supervisory positions, and the workforce should be cut to 900 employees until 80,000 in population had been achieved. If the personnel level were reduced, Commissioner Ferguson contended the millage rate of 6.8 mills would be appropriate. Mayor Taylor commented he would never vote for a deficit budget. He was in favor of a millage rate of 7.3 with a goal of reducing the rate to 7.2 mills before adoption of the budget. Commissioner Ensler was concerned about returning the increased revenue to the taxpayers. He adjusted the budget figures and would agree to a millage rate of 7.2 asking the City Manager to target 7.0 mills for the final budget. Commissioner Ensler concurred the organization was top heavy with supervisors and should be addressed. Vice Mayor McKoy voiced concerned with the supervisory positions and the issue of being top heavy. He supported a 7.2 millage rate. Commissioner McCray indicated he supported a millage rate of 7.0 and agreed a reduction in the number of employees would be appropriate. Mayor Taylor further commented although the City of Boynton Beach has more employees than other municipalities, the City of Boynton Beach has less crime, more completed projects undertaken and better utility systems maintained. He reminded the Commission the City employees support the citizens 24 hours a day, seven days a week including workers and supervisors. Mayor Taylor speculated that by cutting staff, the overtime required would surpass the cost of the additional employees. Motion Commissioner Ensler moved to set the rate at 7.2 mills. Vice Mayor McKoy seconded the motion. The motion passed 3-2. (Commissioners McCray and Ferguson dissenting.) Motion Commissioner Ensler moved to target the City Manager to reach 7.0 mills for the final budget without going into deficit financing. Commissioner McCray seconded the motion. The motion passed 4-1. (Commissioner Ferguson dissenting) Attorney Cherof read Proposed Resolution R06-117 reflecting 7.2 mills for general operating budget purposes. The first public hearing would be September 6, 2006 for adoption of the final budget. Motion 6 Meeting Minutes Special City Commission Meeting Boynton Beach, Florida July 12, 2006 Vice Mayor McKoy moved to adopt Proposed Resolution R06-117. Commissioner Ensler seconded the motion. The motion passed 3-2. (Commissioners McCray and Ferguson dissenting.) There being no further business to come before the Commission, Mayor Taylor adjourned the meeting at 3: 16 p.m. CITY OF BOYNTON BEACH 'tn, f0hLur4} Ja et M. Prainito, CMC 'is:~+ ith A. Pyle eputy City Clerk (071306) { r - Mack "Lb C .. M .C F om miSSioner - U1r . erguson - ATTEST: 7