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HomeMy WebLinkAboutDocumentation_Regular_Tab 6A_8/10/2000 1 RIioIra co i 4,, ,% �f�7 VILLAGE OF TEQUESTA yq + Post Office Box 3273 • 250 Tequesta Drive • Suite 300 Tequcsta, Florida 33469-0273 • (561) 575-6200 y► o Fax: (561) 575-6203 Sf 'Ch Cr)j VILLAGE OF TEQUESTA VILLAGE COUNCIL WORKSHOP MEETING MINUTES JULY 11, 2000 I . CALL TO ORDER AND ROLL CALL The Tequesta Village Council held a workshop meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Tuesday, July 11, 2000. The meeting was called to order at 5: 36 P.M. by Mayor Joseph N. Capretta. A roll call was taken by Betty Laur, Recording Secretary. Councilmembers present were: Mayor Joseph N. Capretta, Vice Mayor Elizabeth A. Schauer, Councilmember Basil Fir Dalack, and Councilmember Sharon Walker. Also in att' ince was Acting Village Manager and Village Clerk Joan' anganiello, and Department Heads. Councilmember Geraldi Genco was absent from the meeting. II . APPROVAL OF AGENDA Vice Mayor Schauer made a motion to approve the Agenda as submitted. Councilmember Walker seconded the motion. The vote on the motion was : Joseph N. Capretta - for Elizabeth A. Schauer - for Basil E . Dalack - for Sharon Walker - for The motion was therefore passed and adopted and the Agenda Recycled Paper VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11, 2000 PAGE 2 was approved as submitted. III. COMMUNICATION FROM CITIZENS Carl Hansen commented that he wished some of the people who believed the Village was $15 million in debt could be present so that they could see Tequesta was in good shape. IV. REVIEW OF PROPOSED FY 2000-2001 BUDGETS (1) General Fund (2) Improvement Bond Revenue Fund (3) Capital Improvement Fund (4) Capital Projects Fund (5) Pension Fund(s) (6) Special Law Enforcement Trust Fund Acting Village Manager Manganiello announced this was the first of two workshops held each year in July to review the proposed budget, in order to comply with the timetable set forth in the State of Florida TRIM (Truth in Millage) law, which required that a tentative rate be transmitted to the Property Appraiser' s office for mailout to residents in August . The Acting Village Manager reported that at the July 20, 2000 Village Council Meeting the tentative millage rate and the rolled back rate would be adopted. Two public hearings would be held during the month of September, and these hearing dates could not conflict with the Palm Beach County Board of Commissioners Public Hearings or the Palm Beach County School Board Public Hearings . Acting Village Manager Manganiello confirmed that the two public hearings would be held September 14 and September 28, 2000 . Acting Village Manager Manganiello explained that there had been an increase in property values this year, which were up 3 . 7% as a result of new construction, for a total of 5. 02%, which should rise higher next year due to additional new construction. Also within this budget a 1-1/2% tax rate stabilization totaling approximately $42, 655 had been provided to offset any tax increases in the upcoming fiscal year. A supplemental budget report VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11, 2000 PAGE 3 had been provided, which contained backup information for the budget . Acting Village Manager Manganiello presented the Letter of Transmittal, which submitted the Annual Budget and Financial Plan for the Village for the Fiscal Year beginning October 1, 2000 (FY 2001) . Expenditures from all operating, capital projects, and debt service funds, excluding inter-fund transfers, were expected to total $16, 613, 055. This proposed budget was of note in that the proposed property tax rate providing revenue to the General Fund was recommended to stay the same at 6. 7305, the current millage rate which had been the same for three years in a row. In preparing the proposed budget, staff had tried to adequately address the needs of the Village, while at the same time minimizing the impact to Village taxpayers . Acting Village Manager Manganiello explained that this budget had been prepared keeping five important concepts in mind: (1) That the budget is a policy document and must facilitate understanding and policy analysis by elected officials and the general public; (2) the level of service that the Village provides its residents and visitors should not be compromised; (3) the plan for routine replacement of major capital equipment must be maintained; (4) the long range plan for funding capital improvements must be updated; and (5) unappropriated fund balances should be maintained at sufficient levels . The Acting Village Manager commented that the Village had a very healthy fund balance, which was 26. 4% designated fund balance of the General Fund. Acting Village Manager commented that the Annual Budget and Financial Plan was made up of twelve separate Funds which were reviewed in the budget document . General Fund Acting Village Manager Manganiello explained that the General Fund was the primary operating fund of the Village and was the only fund which utilized ad valorem taxes as a revenue source. The proposed millage rate was 6 .7305, which equaled the FY 00 rate of 6. 7305, VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 4 representing a 0% millage rate increase and a 2 . 86% increase over the estimated rolled back rate of 6. 5431 . Costs recommended to be increased were employees' salaries and wages, which had been increased 3. 0% across the board, and an average of approximately 2 .5% which had been provided to cover the cost of anticipated merit pay increases for those employees who had not yet reached the top of their applicable position pay scale. Factors affecting the General Fund were reported as : 1 . Major reductions in the cost of the Village of Tequesta Pension Plans which were a result of the October 1, 1998 Actuarial Valuation Report . 2 . Based upon the Property Appraiser' s Preliminary Certification issued July 1, property values in the Village have risen 3. 7% over the prior year, which was lower than anticipated due to The Crossings and Clarebridge projects not being substantially complete as of January 1, 2000, and the Florida Club at Tequesta (Lighthouse Cove) project being only 50% as of January 1, 2000. 3 . An unanticipated expenditure of $66, 000 for FEC Grade Crossing Rehabilitation at Tequesta Drive, which was taken from the Undesignated Fund Balance. 4 . An expenditure line item has been included in the amount of $50, 000 to provide for temporary facilities in FY 00/01, which was taken from the Undesignated Fund Balance. The Acting Village Manager reviewed a chart of Ad Valorem Taxable Value Comparisons provided in the document. The chart compared FY 00 to FY 01 values, with the increases shown in dollars as well as percentages . The Acting Village Manager reviewed the following highlights of the General Fund: Undesignated Fund Balance is estimated to be $1, 586, 071 at the beginning of the fiscal year and $1, 470, 071 at the end of the fiscal year. This is a revenue source that VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 5 funds the Village from October 1 to January 1 until property tax revenue is received, the funds to fall back on in emergencies, and is used for any unbudgeted expenditures approved by the Village Council . Undesignated Fund Balance is a healthy 26. 4% of expenditures . • Police Department expenditures are up 5. 1% to $1, 720, 148 . • Fire-Rescue expenditures are up 7 . 1 o to $1, 386, 641 . The net cost to Tequesta after deducting fire related non-ad valorem revenues of $310, 301 which includes the cost of an EMS building, and the Jupiter Inlet Colony service contract revenue of $160, 494, is $1, 076, 340. • General Fund contribution to the Capital Improvement Fund has increased to a proposed $164, 100 for FY 2001 . An additional $43, 000 in Parks and Recreation impact fees are being transferred to the Capital Improvement Fund and will be reserved for the Seabrook Road South Pathway Project, and for the Riverside Drive North Pathway Project. Acting Village Manager Manganiello noted that any increased in operating expenses of the General Fund were for COLA and merit increases . Acting Village Manager Manganiello recommended adoption of a higher millage rate at the July 20, 2000 Village Council meeting due to an increase in health insurance rates for which the exact figure would not be known until sometime in August. Ms . Manganiello explained that the millage rate could be reduced at the September budget hearing. Acting Village Manager Manganiello reviewed pie charts presented in the budget document which provided a visual representation of the General Fund revenues and expenditures . IMPROVEMENT BOND REVENUE FUND Acting Village Manager Manganiello explained that this VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11, 2000 PAGE 6 fund was created to account for revenues pledged and expenditures associates with the 1994 Revenue Bond Issue which addressed the following capital improvements : • Refinance existing '79 Series Bonds : $580, 000 • Tequesta Park (Parking Lot Paving and Landscaping, Playground Improvements, Basketball Court Lights) : $311, 000 • Constitution Park: $408, 000 • Country Club Drive: $172, 000 • Total Bond Issue: $1, 365, 000 (Excluding issuance costs) Expenditures of the Improvement Bond Revenue Fund impact the General Fund and, therefore, the tax rate by reducing the flow of revenues that would otherwise accrue to the General Fund. The projected debt service expenses for FY 2001 are $139, 040 . Revenues of the Fund are estimated to be $536, 030, which consist of franchise fees of $385, 530 and occupational licenses fees of $86, 100. All revenues in excess of expenditures are transferred to the General Fund, except for occupational license revenue which, less the occupational license debt service pledge, is transferred to the Community Development Special Revenue Fund. COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND Acting Village Manager Manganiello explained that this Fund was created for the purpose of segregating all functions of the Department of Community Development into one self-supporting fund for accounting purposes . The intent is for these activities to be fee driven and not supported with general tax revenues . The functions include building inspections, planning, zoning, and the issuance of occupational licenses. Total revenues of the Fund are estimated to be $361, 605. Expenditures are projected to be $395, 034 . A fund balance transfer of $474, 063 was budgeted for the proportionate share of Community Development' s facility needs in the Municipal VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 7 Center. CAPITAL IMPROVEMENT FUND Acting Village Manager Manganiello explained that the Five-Year Capital Improvement Program anticipates expenditures and revenues for major projects and capital outlays for Fiscal Year 2000 through 2004, and staff had attempted to show the most conservative (costly) picture of Capital Improvement Projects in the next few years so that the Village Council would have the full range of projects from which to make evaluations. The Plan did not include any facilities (buildings) improvements that may be needed during this period. Total expenditures for FY 2001 are indicated to be $700, 235. Capital Improvement Fund Highlights : • Seabrook Road Improvements (South) : $50, 000 (plus $50, 000 reserved and carried over from FY 99 and FY 00 for project contract letting for a total expenditure of $100, 000) . • Country Club Drive Streetscape: $70, 000 - Phase III from Bimini Road to Tequesta Circle • Country Club Drive Swale Construction: $60, 000 - Phase III • Seabrook Road Streetlights (North) : $20, 600 • Country Club Drive Streetlights Conduit: $81, 076 • Country Club Interior - Phase I - Streetlights Conduit: $160, 550 • Country Club Interior - Phase II - Streetlights Conduit : $123, 259 • Tequesta Park Irrigation Improvements : $35, 000 • Seabrook Road Pathway (South) : $19, 000 (plus $19, 000 reserved and carried over from FY 00 for project contract letting for a total expenditure of VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 8 $38, 000) • Riverside Drive Pathway (North) : $24, 000 Capital Improvement Fund revenues are $164, 100 from the General Fund and $75, 000 from the Water Enterprise Fund. Interest from idle invested funds is estimated to be $14, 600 . Park and Recreation impact fees totaling $43, 000 are estimated to be received. Total revenues: $661, 585. Beginning Fund Balance for Fiscal Year 00/01 is estimated to be $43, 619. CAPITAL PROJECTS FUND Acting Village Manager Manganiello explained that this fund was created to record all costs associated with the new public safety facility and the Central Business District Redevelopment (CBDR) in the Village. Total expenses are estimated to be $3, 128, 125 for FY 00/01 . Revenue includes contributions from the Water Enterprise Fund, Stormwater Utility Enterprise Fund, and Community Development Enterprise Fund. Each fund contributed a proportionate share of the Municipal Center cost based on their facility needs . Additional funding will be from the Line of Credit with Bank of America which expires in January 2002 . Permanent financing decisions will be made prior to the expiration of the Line of Credit . PENSION FUND Acting Village Manager Manganiello explained that effective January 1, 1996, Tequesta opted out of the Florida Retirement System (FRS) for all future general employees and police employees and merged these employee retirement plans with the firefighters' plan to create the Employee Pension Trust Fund. The Plan benefits exceed those previously provided by the FRS and the savings have been significant. This section of the budget accounts for all contributions, distributions, and expenses for each retirement plan of each employee class . The benefits for police and fire are different than general employees' benefits . Police and fire plans receive proceeds from the State from premium taxes collected in Tallahassee on homeowner insurance policies VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 9 sold in Tequesta. SPECIAL LAW ENFORCEMENT TRUST FUND Acting Village Manager Manganiello explained that this Fund was created in accordance with State law that requires a separate accounting of proceeds and expenditures of funds realized by a municipality from the sale of assets confiscated in drug-related activities resulting in conviction. Expenditures can only be made upon direct recommendation of the Chief Law Enforcement Officer to the Village Council . The budget is typically amended after the Village Council approves any expenditure. There are currently no expenditures contemplated, and remaining funds are $11, 700. Acting Village Manager Manganiello explained that the budget was prepared in a Program Format so that each page contained historical and proposed expenditure information and a narrative description of what services are provided. In this way, elected officials are able to understand and concentrate on the very important policy questions necessary to consider when reviewing the annual budget--Is this the level of service that citizens expect? Are taxpayers willing to pay the cost of providing this level of public service? How are the Village' s long-term capital and financial needs being addressed? The companion document entitled Supplemental Budget Report provides additional detailed information for all revenue and expenditure categories . This budget proposal recommends a plan to primarily maintain public services at current levels at the lowest possible cost . This budget proposal also addresses the long-term needs of the Village . Acting Village Manager Manganiello explained that as always, the budget is not submitted with the notion that it is the only plan or the best plan, and commented that she looked forward to reviewing these proposals with the elected officials and citizens . Ms . Manganiello acknowledged the efforts of Connie Holloman, Finance Director, and Lori Montague, Assistant Finance Director, for their efforts in compiling the budget document which was generated with the input of each Department Head and their respective staffs . VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 10 Councilmember Walker referred to page 34 of the Budget Plan and questioned why there was no entry regarding the upcoming interlocal government agreement between Jupiter and Palm Beach County to rehabilitating U. S. One and Old Dixie, and commented that in order to receive matching fund grant money there must be an amount already in the budget. Acting Village Manager Manganiello suggested that $40, 000 could be taken from the Undesignated Fund balance, and if matching grant funds were obtained would result in $80, 000 for the project, and if more money was needed the Village Manager would have to go before the Village Council for a budget amendment. Councilmember Walker requested placing the $40, 000 in the budget in case this came about within the coming year and suggested support would probably be forthcoming from Commissioner Marcus by tying in the Village Center with the rehabilitation of U.S. One and Old Dixie Highway. Acting Village Manager Manganiello noted that the budgeted item would read U.S. One/Old Dixie Highway Overlay Zoning District, $40, 000. Vice Mayor Schauer questioned whether Tequesta Pines roads were to be done 2001-2001 . Director of Public Works and Recreation Gary Preston explained that roads were overlaid every other year to get the best price and that this year $42, 350 was being allocated to be carried over into next year' s budget to overlay all the roads in Tequesta Pines at one time . Acting Village Manager Manganiello explained that this was a recent budget change in order to take advantage of piggybacking the county' s contract as well as to get more mileage overlaid. Acting Village Manager Manganiello reported that Mr. Preston was also looking into obtaining grants for the skate park. Councilmember Walker questioned the Country Club Interior Streetlight Conduits Phase I & II, and expressed concern with allocating almost $300, 000 in light of the recent changes in the community. Vice Mayor Schauer questioned whether the new Board could be contacted. Acting Village Manager Manganiello explained that Phase I and Phase II would be a direct result of the sewer work. Councilmember Walker explained that she had not singled out Country Club Drive because she felt lighting there VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11, 2000 PAGE 11 would compliment lighting on Tequesta Drive and Seabrook Road, however, the interior roadways were within a neighborhood. Acting Village Manager Manganiello responded that the Village was paying for the interiors and the proposed streetlight was planned to be the standard used in Tequesta Oaks, which Mr. Preston verified, and stated that would be no extra cost to the residents to use that standard but that using other decorative standards would cost much more. A letter from Mr . Stoddard that appeared in the Jupiter Courier was discussed, which contained information that by paying $400 a resident could get a light in front of their home; however, the Village was not familiar with that and no one knew where Mr. Stoddard had gotten that information. Mayor Capretta recommended writing a letter to Dana Anderson, the new President of the Tequesta Country Club Association Board, telling him about the pending items for the Tequesta Country Club Community, i .e. , sewers, stormwater drainage, swales, etc. , and while the streets are torn up conduit will be installed for streetlights which are intended to be placed throughout the Village using the standard of Tequesta Oaks, which he might wish to look at, since it had been suggested the people in the Tequesta Country Club Community might want to pay extra to get a better streetlight . It was noted the Tequesta Country Club Community had voted yes for streetlights and no for underground utilities and sidewalks . Vice Mayor Schauer expressed her preference to have the same lighting throughout the entire Village with no community having anything different . Councilmember Walker noted this subject was originally brought up at the request of the Tequesta Country Club Board, and questioned allocating funds when there had been so much change in the community. Acting Village Manager Manganiello commented that recommendation for standards would be presented to the Public Works Committee for Main Street, Bridge Road, Tequesta Drive, and South Cypress Drive . The same standards as in Tequesta Oaks were proposed for Country Club Drive and for Seabrook Road. Vice Mayor Schauer recommended not offering a choice of standards and making the standards uniform throughout the Village . Acting Village Manager Manganiello responded she would look at buying streetlights in bulk and having a company install and maintain the lights to see if that would be VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 12 cheaper than going with FPL. Ms . Manganiello commented that would be presented for consideration to the Public Works Committee as soon as possible. Mayor Capretta commented that the streetlight spacing should also be uniform, and that it would be cheaper to do the infrastructure at this time . Acting Village Manager Manganiello advised regarding the idea of placing this item in the budget and perhaps not spending the money, that a proposal was coming to the Village Council at the July 20 meeting and if approved, the money would be spent. Councilmember Walker stated she would like to have the feelings of the community and whether this is what they want in their neighborhood. Ms . Manganiello commented this could not be delayed very long, but possibly could be pushed back to the August 10 meeting if that would be enough time for a response from the Country Club Community. Gary Preston commented that the Country Club would be brought up to a current light standard which would triple the number of lights now installed, increasing the current 67 lights to 187 . This would make the lighting equivalent to or better than in The Oaks, and would assure there were no dark areas. Acting Village Manager Manganiello noted that just because conduit was being laid, lights did not have to be installed. Mayor Capretta commented that other issues to be considered were buying a better light and whether a resident could have a light in front of their house. Mr. Preston commented that FPL installed lights at no cost to the Village, usually three months after the Village requested them, and the Village was committed to use them for ten years . Acting Village Manager Manganiello commented that would give residents enough time to make their opinions known. It was decided to put the money into the budget. Councilmember Walker referred to page 32, Capital Improvement Bonds, and questioned what comprised the intergovernmental funds, the response to which was it was money from other agencies which flows into the General Fund. Councilmember Walker referred to page 24 of the budget document, the Improvement Bond Revenue Fund, which Finance Director Holloman explained was an interest account which varied according to revenues and taxes . Councilmember Walker referred to page 21, under Cultural VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11, 2000 PAGE 13 and Recreation, $9, 000 was budgeted for grants and aids, which Acting Village Manager Manganiello explained $7, 000 was allocated to Jupiter Tequesta Athletic Association and $2, 000 was the Village' s contribution to the Town of Jupiter annual fireworks display. Councilmember Walker referred to page 4, and Acting Village Manager Manganiello clarified the employees referred to. Councilmember Walker reported she had compared a salary survey from Florida League of Cities with that of the Village, and questioned whether a study might be done so that inequalities could be addressed and also whether the Village Council might wish to rectify the pay grade for the position of Assistant Village Manager because it was the most inequitable. Vice Mayor Schauer responded she had reviewed the pay grades and was appalled when she found out the pay for Assistant Village Manager compared to other positions . The Vice Mayor expressed her opinion that the Village Council should look at this situation. Councilmember Walker commented there were other positions that were underpaid compared to other municipalities, and she would like the Village to attract and keep the best. Mayor Capretta commented he had no problem with having a study made by Human Resource Performance Consultants, but cautioned that it was more important to be consistent, and that the situation could be corrected over time. Mayor Capretta commented that the Village should be able to hold onto the people they have and attract new people, and to pay with fairness and consistency. Mayor Capretta commented that as the Village became more financially healthy, the pay structure could be corrected and a start would be to hire the consultants to do a study. Councilmember Walker requested a proposal from Human Resource Performance Consultants. Acting Village Manager Manganiello estimated the cost might be approximately $8, 000 which was not in the current budget, and suggested it be included in next year' s budget beginning October 1, 2000 . Acting Village Manager Manganiello explained the Village Manager evaluated all employees annually, and the Village Council was to evaluate the Village Manager. Vice Mayor Schauer requested this be added as a line item to the budget for FY 00/01, so that it would be available as a tool for the incoming Village Manager. Discussion ensued. Mayor Capretta expressed his opinion that the money could be placed into the budget and the new Village VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 14 Manager should decide whether he or she wanted the survey. It was decided to put the money into the budget but not to proceed until the new manager came. Finance Director Holloman clarified it would be a year but that a line item called Salary Adjustments could be set up so that the manager could utilize it if extra money was needed. $50, 000 was recommended as the line item amount . Ms . Holloman explained that it might be next March before the study would be complete, therefore the fund would only be there six months since March is the middle of the fiscal year. Mayor Capretta discussed future assessed value of the town and that it would be enough to build new facilities and also to correct the pay scales. Acting Village Manager Manganiello advised more help was needed because of increased work load and the next year' s budget would include new personnel . Acting Village Manager Manganiello noted some employees were leaving because of inequities . It was decided to place $50, 000 into a line item titled Salary Adjustments. Councilmember Dalack questioned what fund would spend money for Tequesta Plaza and what fund would spend money for new facilities . Acting Village Manager Manganiello responded that would be the Capital Projects Fund and referred to pages 42 and 43 of the supplemental budget document. Acting Village Manager Manganiello reviewed the proceeds from the letter of credit; interfund transfers from the water fund, from stormwater utility, and from Community Development for total contributions of $1, 315, 250, and the fund balance allocation. Discussion ensued regarding sources of funds and expenditures . Acting Village Manager Manganiello reviewed the breakdown of capital projects, which involved only three months of expenditures during the next fiscal year. The figures for the Municipal Complex, the Public Safety facilities, new roadway and demolition at Tequesta Plaza were reviewed. Councilmember Dalack requested the amount that Tequesta Plaza would cost if the Municipal Center were built somewhere else, which Finance Director Holloman responded would be $232, 000 . Mayor Capretta asked where in the original budget the new facilities could be found, to which Ms . Holloman responded it was on pages 36 and 37 under Capital VILLAGE COUNCIL WORKSHOP MEETING M NUTES July 11 , 000 PAGE 15 Projects and Vice Mayor Schauer noted that the detail information was found in the supplemental report on pages 42, 43, and 44 . Vice Mayor Schauer thanked Finance Director Connie Holloman and Assistant Finance Director Lori Montague for their terrific job and stated she felt confident the figures were the best, and wished both of them good luck in the future and they would be welcome if they ever wanted to come back. Acting Village Manager Manganiello announced the next day' s budget workshop at 5: 30 p.m. V. ADJOURNMENT Councilmember Walker moved that the meeting be adjourned. Councilmember Dalack seconded the motion. The vote on the motion was: Joseph N. Capretta - for Elizabeth A. Schauer - for Basil E . Dalack - for Sharon Walker - for The motion was therefore passed and adopted and the meeting was adjourned at 7:30 p.m. Respectfully submitted, Betty Laur Recording Secretary VILLAGE COUNCIL WORKSHOP MEETING MINUTES July 11 , 2000 PAGE 16 ATTEST: Joann Manganiello Village Clerk DATE APPROVED: