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Minutes 09-09-08 MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, ON TUESDAY, SEPTEMBER 9, 2008 Present: Jerry Taylor, Mayor Kurt Bressner, City Manager Jose Rodriguez, Vice Mayor James Cherof, City Attorney Ron Weiland, Commissioner Janet Prainito, City Clerk Marlene Ross, Commissioner Woodrow L. Hay, Commissioner I.OPENINGS: A.Call to Order – Mayor Jerry Taylor B.Invocation C.Pledge of Allegiance to the Flag led by Commissioner Marlene Ross The meeting was called to order by Mayor Taylor at 6:30 p.m. An invocation was given by Commissioner Hay, followed by the Pledge of Allegiance to the Flag led by Commissioner Ross. D. Agenda Approval: 1. Additions, Deletions, Corrections There were no additions, deletions or corrections. 2. Adoption Motion Commissioner Hay moved to approve the agenda as presented. Vice Mayor Rodriguez seconded the motion. The motion passed unanimously. At the request of Mayor Taylor, Chief Immler reported on the largest drug bust in Palm Beach County. Hundreds of police officers from Palm Beach County joined with agents from the Drug Enforcement Administration, U.S. Marshalls Service, U.S. Customs, and Alcohol, Tobacco and Firearms in the massive operation. More than 60 Search and Seizure arrest warrants were served in the Heart of Boynton, decimating a drug organization that had terrorized the citizens of the Heart of Boynton for two decades. The investigation took months of planning and coordination. Chief Immler noted there were more arrests to be made, and as such, the investigation would continue in the Heart of Boynton for the next couple of days. Mayor Taylor thanked Chief Immler and all the police officers for their fine work, adding he hoped the courts would support their efforts. 1 Meeting Minutes Special City Commission Meeting Boynton Beach September 9, 2008 Commissioner Hay noted he attended the press conference, which proved to be a proud moment for Boynton Beach. He commended the police for a job well done and for ridding the community of the “disease” so that the development of the Heart of Boynton could go forward. Chief Immler emphasized the key to the sting was the collaboration between the Department’s Community Action Team and the citizens of Boynton Beach. II. Public Hearing on Fire Assessment a. Adoption of Proposed Resolution No. R08-102 Re: Relating to the provision of Fire Rescue Services, facilities and programs in the City of Boynton Beach, Florida imposing fire rescue assessments against assessed property located within the City of Boynton Beach for the fiscal year beginning October 1, 2008; approving the rate of assessment; approving the assessment roll; and providing an effective date. Attorney Cherof read Proposed Resolution No. R08-102 by title only. Bill Bingham, Fire Chief, commended Chief Immler and the police department for a well organized operation and a wonderful job. Chief Bingham noted the Commission made a decision seven years ago to explore all available options to insure the continuation of quality fire rescue services and to expand services consistent with the future needs of the community. One option was to adopt a special fire assessment to fund a portion of the Department’s annual budget which included salaries, operating expenses, vehicle replacement funding and funding for new and replacement fire stations. The fire assessment did not fund any portion of the Department’s budget relating to emergency medical services. In October 2001, the City adopted a Special Fire Assessment which was to continue for seven years. Property owners benefited by receiving improved fire protection with reduced emergency response times. A new Fire Station #3 had been built and Fire Station #2 had been replaced. Construction of Fire Station #5 commenced and when completed in July 2009, would house the City’s first dedicated Emergency Operations Center, with $1 million of the cost being funded by a Federal grant. Chief Bingham believed none of this would have been possible without the fire assessment. Fire Rescue provided extensive support during hurricanes and other catastrophic emergencies. In 2001 the Department’s average response time was more than eight minutes. Because of additional personnel, new and strategically located fire stations and equipment, it is currently 4 minutes and 35 seconds. With the opening of Fire Station #5, the goal was four minutes. The Department has been able to keep up with the City’s growth and increased call volume. Chief Bingham believed if support and resources were not made available, the Department could fall behind. 2 Meeting Minutes Special City Commission Meeting Boynton Beach September 9, 2008 In order to continue the fire assessment, it would be necessary for the City Commission to approve the Final Fire Assessment Rate Resolution which would become effective October 1, 2008. As in the original fire assessment, the City Commission would be required to review the assessment rates each summer and determine whether those rates should be adjusted. Chief Bingham noted the Department had accomplished a great deal in seven years and had generated revenue in excess of $2.87 million per year, excluding fire assessment funds. The $3.3 million per year generated by a new assessment would allow Fire Rescue to prefund replacement fire apparatus, pay the salaries of 24 firefighters, offset operational costs and prefund fire station construction or renovations for Fire Stations #1 and #3. Mayor Taylor opened the issue for public hearing. th Irene Mandel, 2585 SW 10 Street, did not feel the fire assessment was fair and did not believe the citizens should pay for the firefighters’ salaries. She believed all of the fire stations should have been completed in seven years. She inquired as to how long the assessment would remain in effect. Kurt Bressner, City Manager, noted the annual review would be conducted every summer to determine whether the fire assessment would be continued for the subsequent year. Attorney Cherof reminded the audience the Commission operated under rules of decorum which were posted outside and at the back of the room, requiring that the business of the Commission not be interrupted while the public hearings were conducted. Commissioner Weiland noted he was against the fire assessment when it was instituted seven years ago; however, he currently recognized the assessment was a legal method by which to collect revenue to construct and maintain the fire stations. The City had lost a great deal of tax revenue with the passage of Property Tax Amendment 1 and declining property values. To help offset the revenue losses, the Commission could either raise the ad valorem tax or levy a fire assessment fee. Vice Mayor Rodriguez clarified the current Commission, with the exception of Commissioner Weiland, did not serve at the time of the adoption of the 2001 fire assessment. th Brian Edwards, 629 NE 9 Avenue, had spoken on behalf of the fire assessment in 2001 and continued to favor the assessment as necessary and minimal in cost. In 2005, Fire Rescue had saved his grandson from drowning. He looked forward to continued positive results and requested the Commission retain the assessment until it was no longer needed. st Ellouise Miller Johnson, 736 NW 1 Avenue, fully supported the fire assessment. Her experiences with the Fire Department had been positive, and she hoped the assessment would go forward. st Bert W. Johnson, 736 NW 1 Avenue, husband of Ellouise Miller Johnson, agreed with his wife’s support of the fire assessment and everything the Fire Department was doing. 3 Meeting Minutes Special City Commission Meeting Boynton Beach September 9, 2008 Melissa Johnson, 25 Crossing Circle, noted her support for the fire assessment. Christina Griswold, 323 Buttonwood Lane, supported the extension of the fire assessment. She currently was a member of the City’s Community Emergency Response Team (CERT) and was aware of the importance of fire and emergency services to the community. Vice Mayor Rodriguez commented the issue was the manner in which the Fire Department was to be funded. No one was threatening to eliminate either the Fire Department or funding for the Fire Department. The services would always be provided. th Charity Cox, 2580 SW 10 Street, noted she and her husband were fairly new residents to the City, and the location of the fire station was instrumental in the purchase of their home. Her aunt and uncle lost their home in a fire because there was no fire station close by. She completely supported the fire assessment and was willing to pay the fee, which equated to less than 20 cents per day. Clara Correa, 109 Buttonwood Lane, had been a resident for ten years and noted her support for the fire assessment. She had previously resided in the unincorporated area of the County, and noted the difference in response time. The several fire stations in her community facilitated a speedy response. She had responded to fires in her capacity as a volunteer for both the Red Cross and Community Emergency Response Team (CERT), and had observed the work done on behalf of the Fire Department. Alvin Cohen, 19 Miller Lane, Hunters Run, believed funding would be provided for the Fire Department through regular means of taxation; however, designated funds for upgrading equipment, firefighters’ salaries, and fires stations might not be funneled in the right direction. There were 1,600 aging families in Hunters Run, and the response time to an older person having a heart attack was crucial. He supported the fire assessment and hoped the Commission would vote for its continuation. Harvey Oyer, Jr., 512 N. Seacrest Boulevard, noted he was a property owner and lifetime resident and did not question the validity of the Fire Department. He believed funding for construction of fire stations should have been provided through a bond issue. He felt the City should reexamine its approach to the manner in which government was funded and contended the day-to-day operations should be included in the operating budget. He suggested salaries be cut and believed the pension system established for the Commission violated the confidence of the public. Dom Desiderio, 2755 S. Federal Highway, commended the men and women in the Fire Department. He believed the apportionment was not fair to the small business owner. Since 2001, there were 109 more fire calls to be served by the Fire Department. He felt there was a problem with the fire assessment, as $20 million had been spent in seven years. He believed the fire assessment was neither fair nor reasonable. th Chuck Magazine, 556 SE 28 Avenue, indicated on August 9, 2007, he suffered a heart attack and called 911 at 6:00 a.m. Having Fire Station #4 in the southeast quadrant of the City 4 Meeting Minutes Special City Commission Meeting Boynton Beach September 9, 2008 allowed for a speedy response time and saved his life. He expressed his support and urged the Commission to continue the fire assessment. Eva Groman, believed the small business owner was burdened by the fire assessment, which she felt was disproportionate. Annette Hilton, 340 B Main Boulevard, High Point, commended the firefighters. She anticipated a favorable tax base would be forthcoming from the ongoing development in the City. She inquired whether developers were assessed or required to escrow monies for roadways. Mr. Bressner noted the developer paid impact fees to the County for roadway improvements, but there was no impact fee to developers for fire stations. The City’s overall tax base decreased 8.5% this year as a result of the property re-evaluations and decline in market value. It was anticipated the real estate market would bottom out in the fourth quarter of 2009, and no increases would be observed in the overall taxable value in the community before mid 2010. Ms. Hilton noted her satisfaction with the response to her inquiry and believed the services provided by the Fire Department and Police were essential. Dr. Styperek, 2314 S. Seacrest Boulevard, advised she was an owner of a small medical office. While she did not possess data to support her position, she noted her opposition to the assessment. She believed the assessment placed an additional burden on individuals in the medical field. She contended the monies assessed in this situation were not for support of medical services, and it was her feeling the positive comments made this evening were from people concerned about the delivery of medical care. No one else coming forward, Mayor Taylor closed the public hearing. Vice Mayor Rodriguez recognized the Fire Department was essential. No one was intimating the Fire Department was not doing a fantastic job or that the fire stations and equipment were not needed. However, he did not support the manner in which the Fire Department was funded, and it had always been his position the assessment was a hidden tax. Rather than assessing homeowners and businesses, he felt the cost to support the Fire Department should be included in the ad valorem tax. He noted significant taxpayer dollars were spent in attorneys’ fees and consulting fees to defend the ongoing litigation and administer the program. It was agreed in 2001, a seven-year time period would be set for the fire assessment and the program would sunset in fiscal year 2008/2009. In 2001, Mayor Taylor, then a private citizen, spoke against the assessment. However, the majority of the community supported the fire assessment at that time just as it did today. If the Fire Department were to be funded through ad valorem taxes, only those individuals paying ad valorem taxes would be paying for fire rescue services. With an assessment, every person would pay for fire rescue services. While it was important the voices of the minority be heard, it was the duty of an elected official to consider the wishes of the majority. For this reason, Mayor Taylor would be supporting the assessment. Commissioner Hay expressed his support for the fire assessment and concurred with Mayor Taylor’s comments. He understood a Hardship Extension Loan Program (HELP) was available. 5 Meeting Minutes Special City Commission Meeting Boynton Beach September 9, 2008 He questioned the manner in which the public had been notified of this program, as he had spoken to individuals who were not aware of the program. Mr. Bressner noted the resolution established a program to provide relief for qualified individuals who required financial assistance to pay the assessment, and the program would go forward with the adoption of the resolution. Commissioner Hay inquired as to the manner in which the fire rescue assessment process would be supplemented in the event of a shortfall. Attorney Cherof noted the assessment would be supplemented by funds from ad valorem tax dollars or other funds collected by the City. Mr. Bressner added this had not previously occurred, as revenues projected and revenues received had been very close. Commissioner Ross expressed her support for the assessment, which she believed was more equitable than funding through the ad valorem tax. Additionally, the Commission would re- evaluate the assessment on a year-to-year basis. Vice Mayor Rodriguez pointed out with ad valorem funding, an individual would pay in accordance with the value of one’s home. Mr. Bressner noted that for a structural fire, regardless of the size of the house, Fire Rescue would respond with the appropriate equipment and personnel. Motion Commissioner Hay moved to approve Proposed Resolution No. R08-102, the fire assessment for 2008/2009. Commissioner Weiland seconded the motion. The motion passed 4-1, (Vice Mayor Rodriguez dissenting). st III. 1 Budget Public Hearing for Fiscal Year 2008/09 a. Proposed Resolution No. R08-103 Re: Adopting the Proposed Millage Rate for Fiscal Year 2008/09 Attorney Cherof advised this was the first of two public hearings relating to the millage and proposed budget. The second and final public hearing would occur on September 18, 2008 at 6:30 p.m. in Commission Chambers. The first order of business would address the millage rate and resolution. The second order of business would address the proposed budget and resolution. Members of the public were welcome to address the Commission on issues regarding the millage or budget and to ask questions regarding either of the resolutions. Attorney Cherof read Proposed Resolution No. R08-103 by title only. Mayor Taylor opened the issue for public hearing. No one coming forward, Mayor Taylor closed the public hearing. 6 Meeting Minutes Special City Commission Meeting Boynton Beach September 9, 2008 Motion Commissioner Hay moved approval of Proposed Resolution No. R08-103. Commissioner Ross seconded the motion. The motion passed unanimously. Attorney Cherof pointed out the motion represented the adoption of the proposed millage rate of 7.75% below the computed rolled back rate. He reiterated the second public hearing would occur on September 18, 2008, at 6:30 p.m. b. Proposed Resolution No. R08-104 Re: Adopting the Tentative Budget for Fiscal Year 2008/09 Attorney Cherof read Proposed Resolution No. R08-104 by title only. Barry Atwood, Director of Finance, reported that on May 20, 2008, the Commission directed staff maintain the current millage rate and ensure there were no layoffs. While there were no layoffs, 14 vacant positions were eliminated from the General Fund. Expenditures for 16 police cars were reinstated in the budget. In order to offset expenditures, health benefits were reduced more than $550,000 and General Employee Pension Plan changes of $300,000 had been deferred. There was an appropriation of the fund balance pending receipt of $450,000 from the sale of property in the Heart of Boynton to the CRA. Prefunding for fire services was reduced to delay replacement of six large trucks in one year, saving the City $200,000. Prefunding for Police delaying replacement of 56 vehicles for one year would save the City $238,000. A balanced budget was achieved by taking $4 million out of the reserves. Mr. Atwood noted the Community Investment Funds were reinstated. In response to Vice Mayor Rodriguez’s question, Mr. Atwood advised that City Hall, Commission, City Manager, City Attorney, City Clerk and Development were the only departments experiencing a reduction in cost. The majority of the other departments had Union contracts to consider, and a large portion of the Union contracts called for set increases and fairly large pension payments. Public Safety, Police and Fire comprised 62% of the total General Fund budget, an 8.5% operating increase. The General Fund was reduced by $4.6 million this year to fund next year’s budget until such time as the Heart of Boynton property was sold. A balance would remain of $20,814,000, $7.4 million of which comprised 10% of emergency reserves. Vice Mayor Rodriguez questioned what the recommended fund balance was. Mr. Atwood noted the Government Finance Officers Association (GFOA) recommended a fund balance of one to two months. Currently, the balance was a bit more than that. However, if that pace were to continue, the City would be in a deficit position in 2010. Staff was, therefore, attempting to project ahead. A 2% revenue reduction was anticipated for 2010. Vice Mayor Rodriguez believed revenues at a 2% loss were optimistic, and he predicted a 15% decrease in the tax base next year. Mr. Bressner noted, under that scenario, it would be necessary to address the 7 Meeting Minutes Special City Commission Meeting Boynton Beach September 9, 2008 issue of core essential services and discretionary services. Staff had provided the Commission with a complete list of the programs and services that would need to be addressed. Mr. Bressner suggested in January 2009, discussions would commence regarding the next fiscal year’s budget and programs. Mr. Atwood noted program cuts would require staff reductions. Mr. Bressner indicated this would be revisited. Under Revenues and Transfers, Mayor Taylor inquired whether the line for Taxes included revenues from new development. Mr. Atwood noted it included all property and franchise taxes. Mr. Bressner indicated while the City enjoyed new growth this year, the doubling of the Homestead Exemption and the decline in property values brought about the 8.5% reduction in taxable value. Mr. Atwood noted Shared Revenues from the State were down. Mr. Bressner pointed out the Utility Fund was not related to property taxes, and was based on revenues received from user fees. The City adopted a rate adjustment pursuant to Ordinance No. 07-023. However, consideration of the rate structure would still be required, as the overall revenues received by the City were nearly $5 million under what had been budgeted. This would be discussed in January 2009. Mayor Taylor opened the issue for public hearing. Mark Karageorge, 240A Main Boulevard, was grateful the millage had not increased. He believed rising pension costs should be addressed during contract negotiations. th Gertrude Sullivan, 201 NE 6th Avenue, and Doris Jackson, 531 NW 10 Avenue, inquired whether there had been cuts for funding to neighborhood services. Mr. Bressner replied affirmatively, adding Support Services would be continued through Community Investment Funds. While there could be limited in-kind support services, grants or programs would not be available. th Brian Edwards, 629 NE 9 Avenue, hoped additional information would be disseminated with regard to funding for neighborhood associations. He commended the Commission and staff for the budget and holding the millage rate. He believed the majority of the residents understood the purpose of the assessment and had observed the positive results. No one else coming forward, Mayor Taylor closed the public hearing. Motion Commissioner Ross moved to approve Proposed Resolution No. R08-104. Commissioner Hay seconded the motion. The motion passed unanimously. IV. ADJOURNMENT: There being no further business to come before the Commission, Mayor Taylor properly adjourned the meeting at 7:59 p.m. 8 Meeting Minutes Special City Commission Meeting Boynton Beach September 9, 2008 Attest: .~ Jan t M. Prainito, CMC SJ; . Clerk r"4-'~ . ~~~ Stepha ie D. Kahn Recording Secretary CITY OF BOYNTON BEACH J~~ Jose Rodriguez, Vi~ ~miSSione;: Marlene Ross, Commissioner 9