Loading...
Minutes 09-15-86MINUTES OF THE CITY OF BOYNTON BEACH PUBLIC HEARING ON THE 1~86/87 BUDGET, HELD AT CITY HALL, BOYNTON BEACH, FLORIDA, MONDAY, SEPTEMBER 15, 1986 AT 7:30 P. M. PRESENT Nick Cassandra, Mayor Carl Zimmerman, Vice Mayor Robert Ferrell, Councilman Ezell Hester, Councilman Dee zibelli, Councilwoman Peter L. Cheney, City Manager Betty S. Boroni, City Clerk James W. Vance, City Attorney ~ayor Cassandra called the meeting to order at 7:30 P. M. PUBLIC HEARING TO MAKE FINAL DECISION ON THE MILLAGE RATE AND BUDGET - 1986-87 BUDGET Mayor cassandra thought they should listen to the people first. He announced that there were forms in the back of the room that people could fill out if they wished to talk about the budget. Marty Trauqer, 702 S. W. 28th Avenue, did not have ~n oppor- tunity to review the budget in any detail but from what he read and heard, he felt it was a good budget and that the City had been very fortunate in increasing its tax base through growth. He had hoped the Council would have a line item review of the budget this year because such a process vesthe Council a detailed knowledge of the expenditures ~ each department. It also requires each department head to fully justify his or her programs and expenditures to the Council. Former Mayor Trauger referred to Parkinson's Law of Manage- ment, which states that work will expand to the numbers of personnel and hours allocated to any task. It also applies to the budget process. Budgets will always expand or contract to the amount of funds allocated. Former Mayor Trauger suggested that the Council impose against this final budget something which would attempt to set a 4% or 5% spending limitation. He believed the depart- ment heads would know where it could be done. Former Mayor Trauger felt the money saved by any prudent management should be applied against the end of the funded debt or bonds that the City will be selling to finance the planned capital improvements spending. In the long run, the City will save ad ~alorem taxes by paying off the indebted- ness and saving the interest over a longer period of time. - 1 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 Mayor Cassandra asked if anyone else wished to speak about  he budget. There was no response. THE PUBLIC HEARING WAS LOSED. Mayor Cassandra called attention to City Manager Cheney's "ESTIMATED FUND BALANCE, 9/30/86" and said there were some things he wished the Council to consider. He noticed there was increased revenue and some expenditures that will not be used, and he stated that City Manager Cheney implied that there is $1,358,487 in excess and $150,000 in insurance reserve which they will not be using. City Manager Cheney informed him that the City will be using $100,000 of the insurance reserve. Based upon the memo, Mayor Cassandra recommended that they take $610,702.25 of the excess money and give the citizens a reduction in millage, which would come out to .5 mills. He said it would immediately give a reduction from 7.3638 to 6.8638. Adding on the Publicity, it came out to a pro- posed tentative millage levy of 7.6040. With this reduction, Mayor Cassandra pointed out that as far as the need of the different City departments, there would be no reduction in personnel requirements or capital expendi- tures, etc., and they would still be left with approximately $600,000 in reserve to either put in the disaster fund, as City Manager Cheney recommended, or some contingency fund. There were other areas of tentative millage reduction Mayor Cassandra wanted the Council to consider, and that was in the compensation adjustment area. He observed the City is spending $160,000 in computer equipment and suggested maybe a $20,000 reduction in that area, which would give another 1/10th of a mill reduction that would reduce it to 7.5. Mayor Cassandra explained that any other reduction would not be worth-the dollars. Mayor Cassandra was concerned and pointed out that the City i~ raising the sanitation because of the tipDing~fee and landfill 6iosure. He expounded and said the-citizens will b~ paying approximately $15 a year more for that. If they can save the citizens approximately $25, the net out of pocket for this year will be less than before. If they l~ave the millage the way it is, the citizens will be paying $37. Mayor Cassandra elaborated and asked the Council to consider a reduction of millage, which would make a total millage rate of 7.504, and he gave the breakdowns. - 2 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 Mayor Cassandra read the figures from City Manager Cheney's memo and said City Manager Cheney recommended that 1/2 of the undesignated fund balance be put in a disaster emergency fund and 1/2 in a fund for undesignated surplus. Mayor Cassandra was saying to take 1/2 of that and give the citi- zens a break in taxes. He went along with whatever way they wanted to break up the other $600,000. Councilman Hester was worried that the City may have trouble on down the line. He was not against lowering the rate now, but predicted that only a couple of years from now, they will have to have a big raise in the rate. If they do it now, Councilman Hester warned that they will have to pay for it later. Councilman Ferrell was concerned because too many years the City went with almost nothing. Several items are coming up in the coming year that will worry him. One is capital improvements, which is already $2,000,000 over. Councilman Ferrell thought there was a possibility that something could happen there, and he pointed out that they do not know what is going to happen growthwise and what they may need in the coming year for the Building Department. Councilman Ferrell bet there would be a need for more Police Officers before the year is over. He knew they could use more crime prevention and drug abuse education communitywide in the schools. They could also do some community cleanup programs and restoration projects around the City that they have been putting off year after year. Each item he listed ~as something the citizens have wanted over the years. At budget hearings the last two years, no one has said anything other than coming in and asking for more. For $37, Councilman Ferrell did not think too many people would complain about having some of the projects he mentioned. He would rather keep the money there and attack some of the other problems. They have done something on them but not enough, and Councilman Ferrell anticipated more of a need would be coming up. I~ view of the fact that they are increasing the number of employees, Vice Mayor Zimmerman said they are increasing the services. He went along with the recommended cut and felt the figures well supported it. He added that maybe they could stand even a little more. The only problem Councilwoman zibelli had with it was taking away the computers, and she explained why she wanted to keep - 3 - MINUTES - CITY COUNCIL BUDGET HEETING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 them in there. Mayor Cassandra said that numerical number was small. At some point, City Manager Cheney thought the Council had to decide what level of fund balance they want. He expounded and told of when the City ate up the fund balance to keep the millage down to where they ended the year with a.fund balance of $9,400. Although City Manager Cheney believes in close budgeting, that was too close. If the City had a disaster such as a hurricane, they would have a problem because that year, they had nothing. City Manager Cheney further elaborated and said they have the fund balance up now. He agreed $1,358,487 was a lot of money, but asked how the Council measured what a lot of money is. City Manager Cheney felt they should have something in a disaster fund and asked the Council to remember the operating contingency in the General Fund is $100,000. Most cities this size probably have $50,000 to $1,000,000. City Manager Cheney had no problem with the $100,000 because he thought the budget the City prepared should be close enough that they should not have to get into the contingency very much unless something comes up. After explaining, City Manager Cheney said he thought maybe they should consider a disaster fund that would equal 10% of the General Fund. He thought at some time the Council would have to adopt a policy as to what they think, for the good of the citizens, a level of disaster should be. Maybe it would be 5% of the budget. City Manager Cheney thought it should be a percent of the budget and not just an arbitrary dollar amount in the disaster fund for hurricanes. He was glad the City had not had a hurricane because they would not have the money to prepare for one. City Manager Cheney elaborated. Ciity Manager Cheney did not want people to think this was excess money. He agreed it was a fund balance but stressed that there is a need to have a fund balance. Mayor cassandra asked if they had any fund balance money that was carried over in escrow money. City Manager Cheney answered that this was it. It was from when they closed the books on 10/1/85, and they were estimating that they would close the books this year with $500,000 left over. He advised that they had to look at it and discuss the level, not just look at it, say it is excess money and they should use it. City Manager Cheney emphasized that there was .a purpose for the fUnd balance. - 4 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 There was more discussion. Councilman Ferrell reiterated prior remarks and referred to Boca Raton being hit because of a large increase in their insurance. He called attention to the Women's Club wanting money to help in their restora- tion project. Councilman Ferrell went into more detail, then said he would hate to see them cutting themselves short. He thought it was a good budget that everyone could go along with. Mayor Cassandra advised that the $600,000 disaster fund was not cut. If they have a hurricane, $5,000,000 will not be enough either. Mayor Cassandra agreed with City Manager Cheney that a percentage should be discussed and put in a reserve. He explained and said they will have to address the capital improvements at tomorrow night's Council meeting because of the question raised by Councilman Ferrell because the cost of building buildings has changed. Mayor Cassandra elaborated. Mayor Cassandra still felt the millage rate benefits should be shared by the citizens, as well as the benefits to the City. He also felt that the $600,000 gives the benefit. Mayor Cassandra had no feeling, one way or the other, about reducing the $100,000 for the compensation adjustments and putting it in surplus for other programs. If they did not want to touch the compensation adjustment aspect of it, it would still give a reduction of 5/10th of a mill, or a millage rate of 7.604. He expounded on his feelings about the budget. For a huge emergency such as a hurricane, Vice Mayor Zimmerman did not think they could self insure themselves against that in a yearly budget, as "Uncle Sam" is always there with emergency disaster funds. Vice Mayor Zimmerman explained, added that he thought $600,000 was a very respect- able amount, and said he would stick with his guns and vote to cut the millage. Vice Mayor Zimmerman thought they had a terrible millage rate last year, and he recalled that the general idea last year was that if their tax base increased, that would be the time to cut the millage. He continued that the tax base increased immensely this year. If they do not cut the mill- age this year, from here on, it will be voted with a high millage rate which will be double what it was years ago. Mayor Cassandra informed Councilwoman Zibelli that they put back the money for the computers and also the $100,000 Councilman Ferrell suggested. - 5 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15~, 1986 There were some programs for the Community Relations Board that Councilwoman Zibelli did not want to take away. She thought they should set a policy now which would say a per- centage had to be left for a disaster. Mayor Cassandra questioned whether they would have a percent- age recommendation for each year, like they do for capital improvements, and whether that would become part of the budget to be allocated as a disaster fund. City Manager Cheney replied that they could address the policy in the coming months. Mayor Cassandra assumed they had to make a motion to main- tain what they had as the millage rate or a motion to reduce the millage rate. City Attorney Vance recommended that the Council set the rate they want and let Grady Swann, Finance Director, have a moment to check the figures. Mayor Cassandra passed the gavel to Vice Mayor Zimmerman and moved that the General Fund rate be 6.8638, the Publicity Fund be .0589, that the Beach Debt Service and Building Improvement Debt Service stay the same, and that the total millage be 7.6040. Councilwoman Zibelli seconded the motion. Councilman Ferrell thought they were rushing into a mistake, and he explained. A vote was taken on the motion, and the motion carried 3-2. Councilman Ferrell and Councilman Hester voted against the motion. The Council took a recess at 8:00 P. M., and the meeting resumed at 8:12 P. M. LEGAL: A. Ordinances - Second Reading - PUBLIC HEARING Proposed Ordinance 86-33 Re: Stating the Aggregate Millage Rate for 1986/87 Fiscal Year City Attorney Vance read proposed Ordinance No. 86-33 in its entirety: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA, STATING THE AGGREGATE MILLAGE RATE TO BE LEVIED AGAINST PROPERTY OWNERS WITHIN THE CITY FOR THE - 6 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 1986-1987 FISCAL YEAR; PROVIDING THAT THE CITY MANAGER SHALL HAVE THE AUTHORITY TO ADJUST THE AGGREGATE MILLAGE RATE UPON RECEIPT OF THE FINAL TAX ROLL; PROVIDING FOR AN EFFECTIVE DATE AND FOR OTHER PURPOSES" During the reading, he inserted the following figures: Section 1: 6.9227 for the ~roposed tentative aggregate mill- age rate, 6.8638 for the General Fund, and a total proposed tentative millage levy of 7.6040 Section 2: 5.3 per cent Mayor Cassandra asked if anyone wished to speak in favor of or against proposed Ordinance 86-33. There was no response. THE PUBLIC HEARING WAS CLOSED. Vice Mayor Zimmerman moved to adopt proposed Ordinance No. 86-33 on second and final reading. Councilwoman Zibelli seconded the motion. Councilman Ferrell wished to go on record as being strongly opposed. In his opinion, when they are crying "poor mouth", do not have money to give raises to the employees (particu- larly the Policemen and Firemen) and when other projects may come up, cutting the millage rate was a political move, and he was against that. Councilman Hester was opposed to the decrease in millage, but observed that a majority had won, Councilwoman Zibelli thought it was a good budget and that giving back to the people once in awhile is good. She elaborated and said the people deserve a break. Councilman Hester thought they might be getting themselves into trouble on down the road. He was not opposed to cutting the budget because he pays a lot of taxes himself, but was concerned about them trying to undercut the surplus they have when they do not know what might happen. Mrs. Boroni took a roll call vote on the motion, as follows: Councilman Hester (He reluctantly voted Aye because it would pass anyway.) Councilwoman Zibeili Mayor Cassandra Vice Mayor Zimmerman Councilman Ferrell Aye Aye Aye Aye No Motion carried 4-1 - 7 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 e Proposed Ordinance No. 86-34 Re: Adopting the Budget for 1986/87 Fiscal Year City Attorney Vance read proposed Ordinance 86-34 in its entirety: "AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA, ADOPT- ING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1986, AND ENDING SEPTEMBER 30, 1987; PROVIDING FOR AN EFFEC- TIVE DATE AND FOR OTHER PURPOSES" Mayor Cassandra announced that anyone wishing to speak for or against the proposed Ordinance could do so now. There was no response. THE PUBLIC HEARING WAS CLOSED. Vice Mayor Zimmerman wondered if the figure in Section 2 would remain. City Manager Cheney replied that they did not change the budget; they just changed the millage. Vice Mayor Zimmerman moved to adopt Ordinance No. 86-34 on second and final reading, seconded by Councilwoman Zibelli. Mrs. Boroni took a roll call vote on the motion: Councilwoman Zibelli Mayor Cassandra Vice Mayor Zimmerman Councilman Ferrell Councilman Hester Motion carried 4-1. Aye Aye Aye No Aye B. Resolution No. 86-PPP - Adopting Budgets City Manager Cheney explained that the Resolution relates to a variety of other budgets, but did not include Utilities and the Community Redevelopment Agency (CRA). No increase in the utility rates was proposed but, since the Council did not have a chance to review it, he was not suggesting they adopt that budget. City Manager Cheney passed out the CRA budget and said the Council would be meeting with the CRA in a joint meeting - 8 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 next week. He suggested they may not want to adopt that budget until after the joint meeting. City Manager Cheney gave the Council a copy of the proposed revenue sharing budget for the coming year. The City will not get any revenue sharing funds for the coming year from the Federal Government, but the City's balance has around $40,000 in it. He suggested that they appropriate that $40,000 for a social service part that they always had in the General Revenue Sharing. The City will get that $40,000 for revenue sharing one more year. If they want to continue to do those programs in the future, City Manager Cheney said they will have to come out of the General Fund. After discussion, Mr. Swann advised that Revenue Sharing was not in the Resolution. City Manager Cheney said it would be added in the next Resolution. He thought it had been left in this Resolution. After listening to comments by Mr. Swann, City Manager Cheney thought they should have a motion to allocate the $40,000. With regard to the Local Option Gas Tax, City Manager Cheney reminded the Council that he had given them a summary description of some of the projects. He did not give them a description of the resurfacing program or the drainage and said they would get to them later on. City Manager Cheney explained that he had given them a description of some of the projects he thought made sense. He suggested that in adopting the gas tax budget, the Council might want to reserve the right to individually approve each one of the projects as they come up throughout the year. By adopting this document, City Manager Cheney said they would have some funds available for things like resurfacing, etc. He explained and suggested that the Council reserve direction that projects be brought back to the Council before any funds are submitted. City Manager Cheney advised Mayor Cassandra he assumed that would be the direction the Council might want to follow, and this would be stated in the Minutes. Mayor Cassandra explained the items in the Resolution. City A~torney Vance read Resolution No. 86-PPP in its entirety. "A RESOLUTION OF THE CITY OF BOYNTON BEACH, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1986 AND ENDING SEPTEMBER 30, 1987; PROVIDING FOR AN EFFECTIVE DATE AND FOR OTHER PURPOSES" - 9 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 Vice Mayor Zimmerman moved to pass Resolution 86-PPP, seconded by Councilman Hester. Motion carried 5-0. Councilman Hester moved to appropriate $40,000 to the social service fund. Councilwoman Zibelli seconded the motion, and the motion carried 5-0. C. Discuss Selection of Attorney for Tradewinds Court Case Mayor Cassandra informed everyone that City Attorney Vance requested that the Council relieve him of the responsibility of the Tradewinds case and find another Attorney. After saying he preferred that the City Council do this without him, and adding that he would be glad to pass material on the suit to whomever the Council chooses, City Attorney Vance left the meeting. Mayor Cassandra stated that the City has an active litiaa ~lon going on that requires the City to be represented by an Attorney. City Manager Cheney and he had been discussing looking for an Attorney, and he expounded. Mayor Cassandra directed the names given to him to City  anager Cheney for reference purposes. The names were as ollows: Kirk E. Friedland, Esq., Suite 505, 501 South Flagler Drive West Palm Beach, Florida 33401 Mayor Cassandra was informed by the Mayor of Lake Worth that Attorney Friedland had worked for Lake Worth on some City Board cases, and the Mayor strongly recommended him. Attorney Friedland is a young lawyer, who had worked for a firm of attorneys and is now on his own in West Palm Beach. Donald P. Kohl, Esq. Kohl, Mighdoll, Salnick & Krischer 3003 South Congress Avenue Palm Springs, Florida Mayor Cassandra was not sure, but thought Attorney Kohl was the City Attorney for Greenacres. C. Michael Shalloway, Esq. 909 North Dixie Highway West Palm Beach, Florida - 10 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 Mayor Cassandra said Attorney Shalloway was City Attorney for Greenacres and a former Judge. If the Council wanted, City Manager Cheney had suggested that he could look for Attorneys and submit their names to the Council for review. Mayor Cassandra brought this up for the Council's consideration because the Tradewinds litiga- tion is in a postponement stage until Thursday, September 18th, and the Council should have some form of legal repre- sentation if they can get somebody that fast. City Manager Cheney understood that a certiorari petition was somewhat different than normal petitions. At the moment, the plaintiff has until the 18th to submit an amended complaint. The procedure is that he will submit an amended complaint on the 18th or something else will happen. The City then has 20 days to file a motion for the Judge to consider. The City does not have to file the motion but can. At that point, the Judge will set a hearing on the amended complaint and the motion and will then issue an Order. When the Order is issued, each side is to respond to the Order, depending on what the Order is. City Manager Cheney said the City would probably want to be in a position to file some motions. He recalled one of the lines in the original complaint was a request for damages and thought the City would want to move that this phrase gets out of the complaint. If there is or is not to be some determination on the zoning or development pattern, City M~nager Cheney suspected that would b~ another thing the City would oppose down the road. He said the City would certainly want to oppose any suggestion that the Judge would apply damages against the City for the action. C~ty Manager Cheney stressed that the City would probably want to have somebody that is not a routine, kind of cor- porate Attorney that many of them are. If the amended c~mplaint is filed, the City has 20 days. The Attorney h~red by the City will have a lot of learning to do about that case. City Manager Cheney said traditionally, in this City, the A~torney has worked for the City Council, does work for the City Council, and responds to the City Council. Ideally, the city council should select the Attorney, but he said he would do anything the Council asks him to do. Mayor C~ssandra suggested that in addition to the three names he had, maybe they should have some names from City Manager Cheney. - 11 - MINUTES -CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 Councilwoman Zibelli asked what kind of time frame they were looking at. City Manager Cheney hoped something would be decided before 5:00 P. M., Wednesday, September 17, because he anticipates leaving town by 6:00 P. M. He suspected they would want to schedule a Special Meeting for Wednesday. In answer to Mayor Cassandra, City Manager Cheney did not know if he could find any names by Wednesday. There was discussion about the Attorneys. Vice Mayor Zimmerman brought up that they did not know whether their choice would accept the job. City Manager Cheney commented that they might not get something done by Wednesday, but Monday or Tuesday would not be too bad. Councilman Hester suggested they contact the three names to see if there is an interest there. He did not think it mattered who contacted them. It occured to City Manager Cheney that there were some former City Attorneys in Delray Beach. Mayor Cassandra offered to call the Attorneys. Special city council Meeting After discussion, Mayor Cassandra announced that there would be a Special Council Meeting on Wednesday, September 17, at 4:30 P. M. Councilman Ferrell advised that he would be un- able to attend. After explaining, Vice Mayor Zimmerman recommended that they check with Attorneys Kohl or Friedman first. ADJOURNMENT There being no further business to come before the Council, the meeting properly adjourned at 8:40 P. M. - 12 - MINUTES - CITY COUNCIL BUDGET HEARING BOYNTON BEACH, FLORIDA SEPTEMBER 15, 1986 CITY OF BOYNTON BEACH, FLORIDA "'~~ ~ Mayor Vice Mayor Councilman Councilwoman ATTEST: Recording Secretary /~/- (Two Tapes) // - 13 -