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Minutes 08-02-00MINUTES OF SPECIAL CITY COMMISSION BUDGET WORKSHOP MEETING HELD IN THE LIBRARY PROGRAM ROOM, 208 S. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA ON WEDNESDAY, AUGUST 2, 2000 AT 6:30 p.m. Present Gerald Broening, Mayor Ron Weiland, Vice Mayor William Sherman, Mayor Pro Tem Bruce Black, Commissioner Chadie Fisher, Commissioner Kurt Bressner, City Manager Jim Cherof, City Attorney Wilfred Hawkins, Dir. of Adm. Services Sue Kruse, City Clerk Diane Reese, Finance Director City Manager Kurt Bressner called the meeting to order at 6:35 p.m. and stated the intent of tonight's meeting was to review the proposed budget for the next fiscal year. The budget maintains the City's infrastructure and prepares the City for the future. Items to be discussed are: Sources and uses. The first part of the presentation will focus on sources of revenue, how revenues are collected, how they can be used and how they will provide the Commission with ideas that staff is suggesting for capital construction needs that have been identified. Ms. Diane Reese will be assisting in reviewing the revenue items and the Commissioners and staff participants were requested to refer to the yellow handbook, which included an agenda that listed the topics to be discussed: Overview of City Revenue Sources and Opportunities. Staff will be presenting some ideas to bring in additional revenues to address some of the capital projects in the City. Review of Major Operating Expense Areas. The biggest expense for the City is the costs of personnel. Review of the Overall Budget by the City Manager with attention to goals planned by staff for next year. Review of Specific Department Budgets. The departments listed will be presenting a brief overview of their budgets, how each department plans to meet their objectives and if the budget adjustments made will affect their ability to complete their objectives. Staff will be available to answer any questions that any Commissioner may have. At the future public hearing dates, the public will be able to participate MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 Overview of Accounting Standards & Description of Funds (Ms. Diane Reese) Ms. Diane Reese reported that the City follows the Governmental Accounting Standards Board (GASB) and sets the standards that the City must follow. GASB has issued a new Statement No. 34, which has made major changes to the accounting and recording systems within the City. Governmental Funds General Funds are supported mostly by ad valorem taxes. Special Revenue Funds are used to account for specific governmental revenue, which requires separate accounting because of legal or regulatory provisions. Debt Service Funds are used to account for the City's long term debt, such as bond issues. Capital Project Funds are used to account for acquisition and construction of major capital projects Proprietary Funds Enterprise Funds are funds for water/sewer, golf course, sanitation and transportation. Internal Service Funds are internal City funds to service other City departments. Fiduciary Funds Fiduciary Funds are trust funds, such as the pension trust funds; cemetery funds and any special trust funds, which are set aside in separate accounts. Next reviewed was a comparison of millage rates of Boynton Beach with other comparable cities in the County. v' The current millage rate for Boynton Beach is 7.8160%, which does not include debt service and is the same as the current year. v' Boynton Beach is 16.1 square miles with a population of 55,000. v' The proposed assessment for next year is $2,558,831,045. The formula for the millage rate = tax rate x $1,000 of taxable (assessed) value. Boynton Beach's millage rate is lower than other surrounding cities that have a comparable assessment and the rate has remained constant for the past two MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 years. The debt service of .413 would be added to the millage rate and the debt service will be paid off in 2009. The next chart indicates that the millage rate has actually gone down over the past five years. Commissioner Fisher inquired why the debt service went down? Ms. Reese pointed out that in 1998 and 1999 the City went to rollback. A rolled back calculation is calculated when the Property Appraiser calculates a rolled back rate and that brings in the exact amount of dollars that were brought in the previous year. Mr. Bressner pointed out that the when the same dollars keep coming in, the City would not pick up any benefit from any growth for that particular year. Once your forego the growth, you never get it back. Ms. Reese also pointed out that there is a 3% cap on any homesteaded property. This means that if the properties in surrounding neighborhoods have been selling at much higher rates than your property is assessed at, the Property Appraiser cannot assess your home more than 3% over last year. State law mandates this. Also, the millage rate cannot go over 10 mills. Commissioner Fisher asked how often the County does reappraisals. Ms. Reese replied that the County is supposed to do this every year, but they only do certain sections. Commissioner Fisher also inquired if the City could request that a certain area be reappraised and Ms. Reese said this was allowable. The next chart reviewed was a 5-year revenue trend, which is contained below: The chart indicates that the City's main revenue source is property tax. Source %Increase Proposed 1993/94 2000/2001 to 2000/2001 Property tax 31.16% $19,413,344 Franchise tax 30.08% 3,062,831 Public Service Tax 58.25% 2,736,571 Licenses & Permits 92.17% 2,563,080 State/County Shared Revenue -5.85% 4,137,539 Charges for Services 4.13% 1,535,195 Fines & Forfeitures 0.13% 119,080 Interest 184.74% 728,000 Miscellaneous Revenue 71.94% 113,204 Transfers In 15.94% '3,400,000 Fund Balance Appropriated 1,100,000 TOTAL: $38,908,844 It was noted that revenue from the State has decreased and interest income has increased dramatically because the City has a larger fund balance. Mr. Bressner added that the shared revenue from the State/County will continue to decrease. 3 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 The Florida League of Cities is looking into this issue. Unfortunately, this is a trend that is happening in all the states. Mayor Pre Tem Sherman inquired if the City has a lobbyist in Tallahassee. Mr. Bressner said the City needs to retain the services of a lobbyist and did not do so this year. Mayor Pre Tem Sherman inquired if this has been budgeted and Mr. Bressner said the money is budgeted in the legislative section of the budget. Mr. Bressner pointed out that on Page 20 of the budget document the millage rate of the City including debt service is 8.0617. Next reviewed was a pie chart, which showed how the revenue sources were divided and this confirmed that the Ad Valorem Taxes account for 49% of the City's revenue. A matrix showing the five-year trend in expenditures for the City was then reviewed. In 1996/1997 personal services were at 71.36% of the total fund and in fiscal year 2000/2001 personal services will account for 68.35%. The years 1997/1998 remained status quo which was attributable to the early retirement.. The savings on the early retirement paid for the salary increases given to the employees. Operating Expenses account for 19.03% of the budget, capital outlay is 6.55%, and non-operating expenses are 6.06%. Mr. Hawkins pointed out that ad valorem taxes accounts for 49% of the revenue, but the chart indicates that 68% of the budget is for personnel. Therefore, the cost of personnel is not fully funded by the ad valorem taxes. Discussion on property taxes took place and Mr. Bressner pointed out that the Ad Valorem Taxes are an insulated source of revenue unless a natural disaster occurs and property values go down. Also, whenever a home changes owners, the property value increases. With regard to assessment of rental properties, owners are responsible for paying of the property taxes and are not subject to the 3% limit. The only property in the City subject to the 3% limit is owner-occupied property. Commissioner Fisher said there are areas within the City that should be assessed at higher levels, such as Lawrence Road, and inquired how this could be accomplished. Ms. Reese said it is possible for the City to request the County to reassess certain areas. However, the property could only be reassessed up to 3% per year. Therefore, there is no incentive not to reassess property because it can only go up 3%. Commissioner Black pointed out that many homes in his neighborhood have sold at much higher prices, yet the tax assessments remained unchanged. Mr. Bressner said this needs to be looked at more closely. 4 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 Attorney Cherof also pointed out that assessments could also go down when a property owner petitions for a reduction in their assessment. The City's policy has been not to challenge these reductions. However, a few years ago the City was authorized to challenge the reduction of three commercial properties to assert the City's position that the assessment should not be reduced. The City in the last five years has not challenged any petition to reduce an assessment whether it is commercial or residential. Attorney Cherof said that they may want to consider looking at this policy. Commissioner Fisher also suggested that the City needs to look at the properties receiving homestead exemptions where the owners live both in Boynton Beach and elsewhere during the year. Finally, Ms. Reese presented the 5-year trend in fund balances. The City's fund balance in 1994/95 was only $3,919,043 and in 1998/99 the fund balance is at $12,724,700. Ms. Reese pointed out that a groat deal of this money has been earmarked for special projects. Funds for these special projects have to be paid back to the general fund from the capital improvement fund beginning 2002. Mr. Bressner pointed out that thero aro only enough funds in reserve for one and one-half months and in reality this is a very meager amount. For an overview of the budget, Mr. Bressner pointed out that from an operating perspective, the City has to run very lean by necessity. The City doesn't have the flexibility it needs and that almost 70% of the operating expenses for the City aro personnel costs. Therefore, thero aro not many opportunities in making changes unless changes in operating efficiencies are introduced. Also, the City needs to implement more efficient staffing issues. The City is going to have to look at ways to raise additional revenues for capital projects. Mayor Pro Tem Sherman noted that at last year's budget hearings, the Commission was furnished with a list of 21 new employees and he questioned at that time the need for these additional employees. Mayor Pro Tem Sherman asked how many new personnel would be coming onboard this year? The Commissioners were referred to pages 4 and 5, which shows that 27 new employees aro being requested. Mr. Brossner pointed out that 7 of these employees are grant funded. Mr. Bressner suggested that each department requesting additional personnel be given an opportunity to address this issue. Mr. Bressner pointed out that it is important that the citizens receive the best citizens' services from the City. Further, Mr. Bressner stated that personnel is an asset that needs to be supported and needs to grow in terms of learning new skills and being moro involved in discussion. Just because there are collective bargaining agreements in place, this should not preclude the City from having good, legitimate dialogue between employer and employee. Mr. Brossner would like all employees to be 5 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 given the opportunity to grow, be trained and to be evaluated on their performance. In addition to accountability, there needs to be recognition. Goals for next year include: v' Doing a great amount of work on redevelopment activities, v' Reassessing certain areas of the Vision 20/20 Plan, v' Getting the GIS System up and running for everyone including citizens, employees and the Commission. The GIS System is important to assist the City in making important strategic decisions, v' Boynton Beach needs to expand and develop its own identity, v' City codes need to be brought up to date, v' Communication needs to be disbursed to the citizens and this will be accomplished through Mr. Segal. Mr. Bressner announced that on August 14~, a Goal Setting Workshop has been scheduled. Mr. Bressner requested as the budget is reviewed, it should be kept in mind that there are some necessary positive changes that need to be made in the community. Also, he would like to see the Commission continue to take their meetings out on the road. With regard to economic development, Boynton Beach needs to position itself with the Internet. A new access point is being developed in Miami and this will afford Boynton Beach a place to set up e-commerce businesses in the community. There are a great many capital projects already on the books that the City must move forward on. The Commission has been furnished with a reorganization plan of City staff to address capital projects and those capital projects should be consolidated into one area. Currently, capital projects are being handled randomly throughout staff, which is difficult to coordinate. Potential Funding Sources (Kurt Bressner): Participants were requested to turn to the last page in the handout listing potential funding sources. Mr. Bressner stated it is assumed that any additional revenues coming into the City would go to capital projects. The money received from the sale of the property to Ocean Ridge went into capital projects. The following are funding opportunities for capital projects: (a) Do a general obligation bond by voter referendum; (b) The FLC Municipal Loan Council offers 20 and 30-year loans, which must be secured by pledging some type of revenue sequence to pay off the debt. 6 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 (c)With regard to the 1992 bond issue, this could be defeased (refinanced) to take advantage of interest rates going down. This could generate $160,000 in savings that would be a lump sum payment to the City. The City would have to pay the bond issuance costs, which is approximately $30,000. The City would still gain approximately $130,000. Vice Mayor Weiland inquired how much time is remaining on paying the Tradewinds Bond? Ms. Reese noted that when the Tradewinds' bond was refinanced, it also included the Beach and Hester Center constructions. Fourteen Million is still owed on this bond and the City pays annually approximately $2 million. This amount will be paid through 2007 and beginning in 2008 the payment will be $865,000 for the final four years. This is the 1993 public service debt refunding. (d) Consideration of a bank qualified loan. The City could borrow the money. (e) Adding an additional mill to the property tax would generate $2.5 million yearly or could leverage a five-year, $10 million bond. However, Mr. Bressner recommended that if the bond issue route were taken, that it be a short-term bond issue. (f) If an additional one-half mill were added to the property tax, this would leverage $5 million for 5 years. Mr. Bressner pointed out that the stormwater fee has just been raised and the Commission may be uncomfortable with raising property. Mr. Bressner requested that Attorney Cherof address the Municipal Service Tax District as a potential funding source. Attorney Cherof noted there are several different categories for different purposes. In addition to taxing districts, the City could have special assessment districts for specific projects. A special assessment could be spread over a 30- year period against those specific properties involved in the special assessment at an interest rate not to exceed 8%. Vice Mayor Weiland asked how the assessment could be figured out to be fair to everyone involved because some property owners have done a great deal to address a particular problem and others have done nothing. Attorney Cherof pointed out that one of the challenges is to define the area very narrowly. Attorney Cherof presented various examples of what could be included in a special assessment district, such as swales, sidewalks, etc. Municipal Service Tax Districts are broader and are generally city-wide districts associated with a particular type of service that is being provided, such as fire MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 assessment districts. There is a statute that permits assessments to be made to offset fire service cost. Mayor Broening asked if this included EMS? Attorney Cherof said that the courts have recently questioned whether to include EMS. Commissioner Fisher inquired if this would require a vote by the residents? Attorney Cherof stated that the Commission could adopt this by ordinance, but the procedure to determine what each property pays is done by the Commission sitting as a Board of Equalization. People are permitted to come forward to request a lower assessment. Mr. Brossner said that it will be possible for the City to do some capital projects next year and his responsibility is to develop the staff resources and the tools to get the projects done in a timely manner. Attorney Cherof pointed out that not everything on the list could be done immediately nor can it all be done in the upcoming fiscal year. When a fire assessment is created, there is a requirement that the City start about a year ahead of time. Mr. Bressner also pointed out that the Commission must decide tonight whether to raise property taxes. However, even if the Commission does vote tonight to raise taxes, it can change its mind before the final assessments are posted. However, the County must know the City's millage rate by August 4th. Attorney Cherof said the decision needs to be made tonight. Ms. Reese pointed out that the law allows until Friday, August 4th, but the Property Appraiser would like the millage rate as soon as possible. Mr. Brossner said that next year he would like to present next year's operating budget, plus a four-year projection of operating expenses. He further pointed out that staff now has the tools and information to allow them to begin making some good strategic decisions and balancing the needs. On the utility side, a groat many projects aro already funded and need to be moved forward. Mr. Bressner asked the Commission if thero was any interest in adjusting the millage this year for capital projects. Mayor Broening said he would not want to do that this year and Commissioner Fisher agreed. Mr. Brossner suggested that this be addressed at the end of the meeting. Attorney Cherof pointed out that the Commission is only setting the millage rate tonight, and is allowed to reduce the millage. However, the millage cannot be increased if the Commission does not raise the millage tonight. Commissioner Fisher asked how long would it take to evaluate what projects would be funded by what means? Mr. Bressner replied that this probably could be done in two nights. Commissioner Blabk would like to have the option of raising the millage since it can be changed. Mr. Bressner said that the maximum 8 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 amount that could be leveraged would be $20 million in one year. This assumes doing a 10 year bond issue leveraged against the public service tax and raising the millage by one point. The municipal service tax could not be included because that wouldn't come onboard until next fiscal year. Commissioner Fisher didn't see any point to raising the millage if the projects couldn't begin until next year. Commissioner Weiland asked what the actual millage rate would be and was informed it would be 8.2273. Mayor Broening pointed out that the City is only 75¢ away from the statutory limit. Mr. Bressner stated that the City cannot plan and execute $20 million worth of projects. Mr. Greene felt that the City could do $20 million in projects within the next three years. Mr. Bressner called for a recess at 8:20 p.m. The meeting reconvened at 8:30 p.m. Review of Specific Department Budgets City Manager (Wilfred Hawkins) 1999/00 Current Budget - Proposed 2000/01 Budget- (Decrease in budget) $453,747 $381,509 (- 72,238) Mr. Hawkins reported that they are requesting an additional $5,000 increase for business meetings from $20,000 to $25,000. Vice Mayor Weiland asked if there is money available in the budget for Mr. Bressner after his evaluation if an increase is approved? Ms. Reese stated there is a separate line item set aside for any budget adjustments for any salary increases. That line item is in the City Hall budget. City Hall/General Administration (Wilfred Hawkins) 1999/00 Current Budget 2000/01 Proposed Budget (Decrease in budget) $2,557,818 $1,974,45O (-$583,368) Mr. Hawkins pointed out that there are no longer any salaries in the City Hall budget and it is primarily an operating budget. Mayor Broening asked what happened to the special events and holiday parade budget? Mr. Hawkins said that was moved to Recreation. 9 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 Mr. Hawkins asked that Ms. Reese address the non-budgeted expenses. Ms. Reese stated this is a contingency fund of $125,000 that can be used for anything that was not budgeted for and has to be expensed out. Commissioner Fisher requested why the vehicle service fund is at $700,000. Mr. Hawkins stated that the City is trying to make vehicle services a self-supporting fund. Ms. Reese replied that all vehicles in the City fleet were averaged out to see how much money needs to be set aside each year to replace them. Ms. Reese said she would furnish a copy of the schedule to Commissioner Fisher and noted this includes all City vehicles except utility vehicles. Commissioner Fisher inquired why no money was budgeted for Visions 20/207 Ms. Reese said a reserve was set up for Visions 20/20 which is approximately $150,000 to $200,000. City Commission (Wilfred Hawkins) 1999/00 Current Budget 2000/01 Proposed Budget Increase in budget $155,172 $2OO,928 $ 45,756 Fourteen Thousand Dollars has been set aside for the Board dinner, which has a high participation rate. Vice Mayor Weiland said that this is an item that should be moved to the general fund since it is the City providing the dinner to the volunteer boards. Mr. Hawkins suggested moving this item to the City Hall budget, to which the Commissioners agreed. Commissioner Fisher inquired if the memberships included membership in the National League of Cities? Mr. Bressner said that this has been included. Mr. Hawkins pointed out that there is a new line item entitled CATV, which is being budgeted at $80,000. This number represents a baseline number for actual electronic equipment to get the Commission meetings on the air. The plan is to work with Adelphia to provide a true city-access channel. Public Affairs (Wayne Se_qal) 1999/00 Current Budget 2000/01 Proposed Budget $0 $156,32O Mr. Segal pointed out that since he did not have a budget from last year to go by, the budget he presented was based on his best estimate of what he feels would cost to fund an effective public affairs department. 10 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 Mr. Segal stated his overall goal is to work with all City Departments to discover the City's best assets and to promote them in the most positive way to the people who live, work and play here. Mr. Segal said he would like to tie into economic development to encourage commercial growth and revitalization through community partnerships. Mr. Segal then reviewed his budget line-by-line for the Commissioners. Commissioner Fisher noted that a total of $40,000 is being budgeted for promotion and marketing to sell the City and feels that this figure might be too Iow, considering the high cost of advertising. In the $35,000 budgeted under other contractual services, some of these funds are earmarked for the City survey. Commissioner Weiland inquired how much the Ocean Avenue groundbreaking cost? Ms. Weise stated that the cost was between $50.00 to $75.00. Commissioner Fisher asked Mr. Segal what he really would like to have in his advertising budget. Mr. Segal requested he be given some time to research this. Discussion about the costs of advertising took place and whether Mr. Segars department will need additional funds to advertise. Commissioner Fisher inquired if an additional $40,000 were added to the advertising budget would this be a sufficient amount for this year and Mr. Segal stated it would. Commissioner Fisher requested that Mr. Segal present a different figure tomorrow night for the Commission to consider. City Clerk (Sue Kruse) 1999/00 Current Budget 2000/01 Proposed Budget Increase in budget $373,580 $377,622 $ 4,042 Ms. Kruse stated the department's objective is to computerize more of its records. Ms. Kruse pointed out that her department has budgeted $31,000 for legal advertisements. Mr. Bressner noted that if the referendum moves forward for charter revisions, those monies are not included in this budget. Ms. Kruse pointed out that the City would only have to pay for the advertising of the referendum, which should be around $3,000 or $4,000. Financial Services (Diane Reese) 1999/00 Current Budget 2000/01 Proposed Budget Increasein budget $528,727 $676,874 $148,147 11 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 Ms. Reese stated the increase in the budget was due mostly to the transfer of four employees from the Utilities Department to the Finance Department. This accounted for $120,000 of the increase. New software is being purchased to track parking tickets at a cost of $26,000 and a new check endorser is being purchased for $4,000. An Assistant Director of Finance/Audit Manager is being added to staff. This position was made necessary because of new GASB rulings, which have resulted in major changes in financial accounting. These changes must be implemented by October 2002. Procurement Services (Diane Reese) 1999/00 Current Budget 2000/01 Proposed Budget (Decrease in budget) $272,219 $214,012 (-$58,207) Ms. Reese reported that the budget decrease in this department is attributable to the retirement of the purchasing agent. Information Technology Services (Peter Wallace) 1999/00 Current Budget 2000/01 Proposed Budget (Increase in budget) $ 916,339 $1,621,456 $705,117 Mr. Wallace noted that ITS acquired responsibility for phone support in February 2000 and included in the budget is a new telephone technical support that could also handle the network as well. This accounts for a major addition to the budget. Also $175,000 was transferred to ITS for telephone support and maintenance. Mr. Wallace stated there is no working halon system currently in the computer room and $15,000 for this been included in the budget under the line item building repairs. The cost for computer upgrades is $110,000 and $99,000 has been earmarked for PC replacements. Vice Mayor Weiland inquired why there was such a large increase in cellular phones and beepers. Mr. Wallace stated this covers the entire city and is being consolidated citywide. 12 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 Commissioner Fisher would like to see a full-time webmaster on staff. Also, there is no disaster recovery plan for ITS. Commissioner Fisher expressed concern that there is not enough staff to complete a disaster recovery plan in time. The cost of hiring an outside company could be at least $100,000. Mr. Bressner pointed out that more resources would be needed to address these two issues. Communications (Phyllis Dixon) 1999/00 Current Budget 2000/01 Proposed Budget (Decrease in budget) $1,370,419 $1,287,396 (- $83,023) Installation of a new multi-agency radio system in the communications center is scheduled for late August or early September. There will be two systems running until the old system is cut, which is scheduled for November 3rd to coincide with the County. Money from last year is already in the budget to cover the new system. There was a request for four additional dispatchers, but the request has been reduced to two, This accounts for the increase in salaries. Mr. Bressner pointed out that staffing these positions is difficult because of the stress factor of the job and the salaries don't recruit qualified personnel. However, the pay ranges have been increased to remain competitive. Ms. Dixon pointed out that compared to other cities, there is only one vacancy for a dispatcher and one for a supervisor. City Attorney (Jim Cherof) 1999/00 Current Budget 2000/01 Proposed Budget Increase in budget $369,201 $382,714 $ 13,513 Attorney Cherof said that most of the increase is attributable to employee salaries and benefits. Last year, the Clerk position was upgraded to a Legal Secretary. Attorney Cherof said that his Department would be able to meet its goals and expectations under the proposed budget. Development Department (Quintus Greene) 1999/00 Current Budget 2000/01 Proposed Budget Increase in budget $2,108,594 $2,356,891 $ 248,297 The budget includes a 14% increase in personnel and a 25% decrease in operating expenses. 13 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 Mr. Greene noted that the Development Department is comprised of five divisions and he will be addressing the Department as a whole. The Department's goal is to provide value for the budget dollars it receives. For fiscal year 2001 the Department is projected to contribute revenues amounting to approximately 8% of the City's General Fund. The Department's expenditures are expected to amount to approximately 5% of the General Fund, excluding the Community Redevelopment Division, which is funded outside the General Fund. Also, Neighborhood Services is not included, which will become part of the City Manager's Office. Mr. Greene stated his Department is addressing the issue of becoming more customer oriented and distributed a customer comment card that would be given to everyone coming into their Department to obtain feedback. Mayor Broening inquired if the cost of the marketing material being developed in conjunction with the Chamber of Commerce was included in the budget and Mr. Greene stated it was not. Commissioner Fisher inquired when was the last time that the reviewed its fees? Mr. Greene stated it was last done in Commissioner Fisher requested that this be readdressed. Department 1994-1995. Library (Virginia Farace) 1999/00 Current Budget 2000/01 Proposed Budget Increase in budget $1,415,567 $1,501,278 $ 85,711 Ms. Farace stated that their mission is to provide their customers with the highest quality of information resources and personnel service, i.e. materials and people. During the past two fiscal years the book budget has remained constant at $125,000. Ms. Farace distributed a handout of the book budget over the past 12 years to the Commissioners. Also, an additional Youth Program Assistant is being requested, which has been budgeted for nine months as opposed to 12 months. An additional part time person is being hired as well. The budget includes over $11,000 for contractual security for evenings and weekends. Mr. Bressner pointed out that because of staffing adjustments the Library would not be open on Sunday. Commissioner Fisher inquired if the Library could be 14 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 included in a special assessment? Attorney Cherof said he would research this. Ms. Farace noted that there is a State law that prohibits fees charged for Library services. Ms. Farace also referred the Commissioners to the budget, which includes the Museum's budget as well. The only Museum items that the City pays for are the upkeep of the buildings, electric, water and two personnel, which is under $130,000. Review Mr. Bressner noted that the following items need to be followed through: Information concerning the vehicle replacement fund. Mr. Segal will provide information for additional budget money for public information and marketing. ITS request for possible reconsideration of $100,000 for damage recovery and an additional $30,000 for web design. The Development Department will review building and permit fees and rates. To look for alternative funding sources for the Library. Ms. Farace noted that there is a webmaster onboard who is currently redesigning the City's web site. However, she only works 10 hours per week. Ms. Farace suggested that the e-commerce portion of the web site could be contracted out. Millaqe Rate Discussion Attorney Cherof noted that the proposed budget is.based upon a millage rate of 7.8160 and the rolled back rate of 7.6504. This is Resolution R00-113 and if the Commission were in agreement with these figures, he would read the title of the Resolution for a vote. Otherwise, the matter could be discussed prior to a vote. Commissioner Black would like to increase the millage rate one point, since it could always be changed to a lower rate and felt the window should be kept open in the event any portion of this increase might be needed. Commissioner Fisher said that it would not be until next year that the City could anticipate using these new funds. Attorney Cherof said that the Commission on the last night of its two public hearings must have a budget in place that would allocate and appropriate where the money is going to be spent. Therefore, the millage rate must be dealt with in the budget. Mayor Pro Tem Sherman said that he would agree to a one-half point increase, but noted the City is very close to the cap. Vice Mayor Weiland also agreed with 15 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA August 2, 2000 this. Discussion ensued on whether the millage rate should be increased one point, one-half point or not at all. If the rate were raised one point it would leverage $2.6 million, which in turn could leverage a $10 million bond issue. A one-half point increase would generate a $5 million bond issue. Ms. Reese informed the Commissioners that the tentative millage rate would appear on the tentative tax bill. Mayor Broening felt that the systemic problem in the City is that the tax base does not support the activities of the City. The City needs to be kept competitive in terms of development and being aggressive in obtaining other sources of funding from a business standpoint. An increase in the millage rate should not be considered for a short-term capital improvement objective and would be a terrible mistake. Mayor Broening feels that to increase funding, the City needs to concentrate on development and redevelopment of the City and enhancing the tax base. Mayor Broening said that the budget is a workable budget and that the budget fits the City for another year. Raising the millage rate would only dilute the City's competitiveness. Mayor Broening said that the City should look at the funding sources that were presented tonight because they are leveraged against existing resources. Mr. Bressner's recommendation is not to raise the millage rate at this time. He noted that the City has several projects that need to be addressed in the very near future. Also, the City is going to need time to hire the necessary staff to handle these projects and there could be a credibility issue if taxes were raised and not earmarked for anything specific. Attorney Cherof read Resolution R00-113 by title only: A Resolution of the City Commission of the City of Boynton Beach, Florida, adopting a proposed municipal millage rate of 7.8160, for general operating budget purposes for fiscal year 2000-02, stating a rolled-back rate of 7.6504, and setting for the date, time and place of the first public hearing; providing for severability, conflicts and an effective date. Motion Commissioner Black moved to approve Resolution R00-113 and to set the first public hearing date for Thursday, September 14, 2000 at 6:30 p.m. Motion seconded by Commissioner Fisher, which carried unanimously. 16 MEETING MINUTES CITY COMMISSION BUDGET WORKSHOP BOYNTON BEACH, FLORIDA The meeting properly adjourned at 10:30 night, August 3, 2000 at 6:30 p.m. p.m. and will August 2, 2000 reconvene tomorrow Vice Mayor ATTEST: Cit~'Clerk Recording Secretary (four tapes) Mayor Pro Tem C~ssioner 17