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HomeMy WebLinkAboutMinutes_Workshop_7/11/2019MINUTES WORKSHOP MEETING VILLAGE OF TEQUESTA, FL JULY 11, 2019 8:30 AM EOC CALL TO ORDER AND ROLL CALL The meeting was called to order by Mayor Abby Brennan at 8:32 a.m. A roll call was taken by Village Clerk Lori McWilliams. Present were: Mayor Abby Brennan, Vice -Mayor Kristi Johnson, Council Member Laurie Brandon, and Council Member Kyle Stone. Late were: None were late. Absent were: Council Member Vince Arena AGENDA ITEMS 1. Review and Discuss FY 201912020 Annual Budget Village Manager, Jeremy Allen recognized all of the staff efforts, especially former Interim Manager Jim Weinand since October. Later, Village Manager Allen discussed where the budget was currently and reviewed his PowerPoint. • The Village was falling below the two months operating by almost 2 million. Former Interim Village Manager Jim Weinand was assisting with correcting this situation. • There was a deficit of $749,000 on 6/17 Workshop; and Jim Weinand and Village Manager Allen have reduced this to a deficit of $377,000 at this Workshop. • Projected budget should be 2.2 million dollars for the 2 months. • The Village was currently at manageable $1.3 million deficit for 2-month operating • 2019-2020 Budget: 3 year policy was increased to 4.62% in revenues and 3.62% in expenditures • Millage Rate: This year $377,000 deficit was projected balance for this year: moving the current millage rate 6.232% to 6.623% would bring the home value of Page 1 of 4 $350,000; increase $117 (this doesn't not include 2-month operating expense and 5 year capital). Village Manager Allen noted that the millage rate has not raised since 2016. This is increase was minimal. • Suggestions for the budget: Village Manager Allen continued with these suggested options to consider reducing the deficit (Balance Budget). 1. Pull that surtax and put it as expenditure as it its own item. 2. Purchase the new ambulance out of surtax in of paying the debit service. 3. Increase electric/utility tax from 9 to 10% 4. Reestablish water utility tax at 9% to the original rate • Another recommendation from Jose Rodriguez, Building Director that Village Manager agreed with to recoup 2 month deficit: 1. 2% into building enforcement code and 1 % land use fees 2. 1 % building code fees: making $150,000 to $200,000 a year in revenue 3. Transfer $1.6 million to emergency disaster fund and put $50,000 from the emergency fund back into the general fund. 4. In 2 years, the Village will be in good standing without raising the millage rate. Vice Mayor Johnson and Mayor Brennan questioned how the residents are impacted. The Interim Village Manager Jim Weinand stated the water rate would balance the budget for next year. Mayor Brennan stated that the residents would feel the 9% tax. Village Manager explained that this would apply to the Tequesta residents only. Assistant Finance Manager, Tatiana Racanati explained the calculations were on the total sales; this would bring $130,000 maximum to the general fund. Ms. Racanti noted that this tax would be a minimal increase. Village Manager Allen followed up with Councils' thoughts and/or questions. As for as Building Land Use, the contractor and/or developers will not see any additional costs. This boils down to a different way of allocating funds on the books. Village Manager Allen clarified that this fee could be adjusted if needed in the future. He continued 1.6 million to give back to contractors if we do not use that money. Mayor Brennan questioned on what is the justification on the 1 %. She asked if a study was needed. What other information have we received from other municipality? Building Director Rodriguez and Village Manager Allen replied stating our Legal has confirmed that the Village has the authority to carry this out. Mr. Allen also commented this would be easy to justify putting money in the disaster relief. The Building department would be working around the clock after a disaster. And Mr. Allen stated that we could estimate trends over the year. Vice -Mayor Johnson inquired if the State would allow this. Village Manager Allen responded yes, legal is comfortable with the legality of this. The Mayor Brennan's next question was whether this can be done retroactively. Village Manager is concerned with that, more chance of fraud. Village Manager reviewed : • Surtax fund for next year is considered cash funding for the new ambulance to avoid debt. This is a long-term investment for the ambulance since it is a one-time expenditure. • Capital expenditures for the Community Center shows a revenue of $3 million and expense of $3 million. This is misleading and the Village Manager Allen has Page 2 of 4 plans to remove it and can allocate when the Council has made their decision on Recreation Center. This shows a higher cash balance than the Village should have. Water Utility fund: Village Manager Allen put in $750,000 in the budget to complete the water meter project. It would take 2 to 3 years to see returns on investment. Vice -Mayor Johnson inquired about billing concerns on this project. Former Interim Village Manager Weinand responded that the big issue was that no towers were supplied. Village Manager Allen added that once this system is operating fully, then our staff is be prepared to offer a higher customer service. The Residents water usage history will be electronic for review. The Manager, Utility Billing & Customer Service, Dennis Rick explained that Utility department can put our memos on the meter installs and there would be more accurate usage reflected on the bills. Then, the Village Manager Allen requested that Dennis provide feedback from the residents on their higher bills. Dennis Rick commented that the baby boomers were upset; but the millennial residents understood that they are upgrading the system and working through some issues. Rick also stated that the calls lines and the issues were all manageable. Village Manager Allen inquired a timeline when the company will come out again and complete this project. Rick stated that US water installed in Jupiter Inlet Colony has installed about 300 meters, but they were not installed correctly. He believes that have these meters installed with Supervision would make this project go more smoothly. Update on Jupiter Inlet Colony is 100% radio reads at this time, they are in the process of reprogramming due to human error. The towers would avoid human error. Further discussion ensued on the accuracy of the meter installs. • Last 5 year budget: Village Manager Allen reviewed the last 5 year budgeted and appropriations. Mr. Allen presented the original balances in 2014 to the present with the appropriations. Further discussion ensued on these appropriations. Building and Land Deed fee discussion: Mayor Brennan inquired about the Building and Land Deed fee discussion. Building Director Rodriguez responded 1 % fee would equal around $340,000 land development then add another $340,000 which he is approximately around $680,000 Max Tax Set: Vice -Mayor Johnson commented on the brochure not being clear to the layperson to express the Village's deficit. She requested the Manager to show more details on the tax increase. Further discussion took place about the message to the residents on the tax increase. Village Manager Allen proposed 5.35% max tax set and work down if possible. Further discussion took place to review the millage rate Mayor and Council agreed to the max tax rate with the exception of Council Member Kyle Stone. Mr. Stone wanted a 5% tax set. Therefore, Mr. Allen stated that 0.35 difference would be $7.00 to the resident. The tax rate of 5.35 would balance the budget. Page 3 of 4 Sponsor Village Manager, Jeremy Allen COMMUNICATIONS FROM CITIZENS The Mayor would like this item moved to the end of the Workshop going forward. Resident Tom Bradford had some suggestions on the budget: o First, he questioned the Building department's possible administrative management fee was brought up at the last meeting. Village Manager Allen responded the $104,000 is in this budget. Mr. Bradford suggested on going back 3 years and retroactively move the Building Department administrative management fees from the reserves to the in the general fund to build reserves. Interim Village Manager Weinand also spoke to Rob Ori on a report to validate the Building department fees and possibly review a years back. o Second, Mr. Bradford also mentioned the emergency management transport fees are very low compared to Town of Palm Beach Gardens. He believes that $167,000 of revenue would be gained if these were matched with Palm Beach Gardens. Village Manager Allen has agreed to look into the transport fee for a possible increase. o Then, Mr. Bradford discussed the Recreation department for its expenses versus revenue, covering 11 to 12% of expenditures. Most cities have a 40 to 50% range to cover their costs. His suggestions was for Tequesta Fest, admission for non-residents fees need to recuperate the recreation cost. Village Manager Allen responded to trying to match the recreation fees when the new Recreation Center has been built. o And finally, his last recommendation is for new revenue source for the Community Development department. The residents would confirm their zoning, this department can charge by providing a determination notice. Village Manager Allen confirmed that the Village currently has this fee in place for this service. Community Development Director, Nilsa Zacarias added further to the discussion. Ms Zacarias agreed with Mr. Bradford's comments. She explained that Community Development does charge for the determination notice (any written zoning notification has a charge); otherwise a verbal request was no charge. ADJOURNMENT Vice -Mayor Johnson made a motion to adjourn the meeting at 10:01 a.m. Council Member Stone, seconded the motion. Carried unanimously 5-0. to adjourn the meeting Lori McWilliams, MMC Village Clerk Page 4 of 4