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HomeMy WebLinkAboutMinutes_Workshop_06/08/2010 MINUTES VILLAGE OF TEQUESTA BUDGET STRATEGY WORKSHOP MINUTES JUNE 8, 2010 CALL TO ORDER AND ROLL CALL The meeting was called to order by Mayor Pat Watkins at 8:01 a.m. A roll call was taken by the Village Clerk's Assistant Deanna Mayo. Present were: Mayor Pat Watkins, Council Member Vince Arena, Council Member Jim Humpage, and Council Member Calvin Turnquest. Also in attendance were: Village Manager Michael R. Couzzo Jr., Attorney Keith Davis, Village Clerk's Assistant Deanna Mayo and Department Heads. Vice -Mayor Tom Paterno was absent. 1. Budget Planning and Strategy Session- Village Manager Submits Draft Budget to Mayor and Council — Manager Couzzo stated the budget deficit came in with a 6.8% loss which was better than the projected 9 %. He noted several items that were contributing to the loss of revenues and expressed that the economy showed modest improvement. Council Member Humpage inquired on the projected revenue figure. Manager Couzzo replied the anticipated calculation was $8,817,530 which left the Village $500,000 short. He mentioned the probability of $250,000 being pulled from the Capital Fund and $250,000 from Reserves to cover the shortage and discussed options. Mayor Watkins inquired if money had been set aside for repairs in the Village which she believed to be safety related. Manager Couzzo responded yes, and explained different ways the Capital Fund could be utilized for Village needs. He noted that the Village had been thrifty and was in fairly good shape although it would become more difficult to manage the budget without raising taxes. Manager Couzzo mentioned the possibility of assisting Jupiter with their Fire Rescue and that that could bring additional revenues within the next year. Council Member Turnquest reported he had spoken to Jupiter Inlet Colony's (JIC) Mayor John Zuccarelli and that they would be meeting to discuss possible contract negotiations as well. Manager Couzzo pointed out that while the process of annexation could be three to five years it would be beneficial for the Village revenue once the preliminary costs were completed. Manager Couzzo noted the successful negotiations regarding the Fire Fighters contract and offered details of the ratification which affected the budget. He also stated a full time position in Finance would be reduced to part time with the remaining Village staff not affected. He referenced additional areas of the budget being affected including legal services receiving a 15% reduction. He stated too many departments had been reduced and the Village could not continue at this rate. Mayor Watkins agreed. Minutes —Workshop 6/8/10 Page 2 Manager Couzzo commented that completion of the bridge project would benefit the budget. Mayor Watkins expressed her concern for safety at the bridge now that the roads were built and made it more accessible to pedestrians. Manager Couzzo responded that the contractor and the State were aware and conscientious of the stage of the project and issues at hand. Manager Couzzo referenced the position of Director for Community Development (CD) and that the budget was not funded to replace it; although, alternate employees were assisting with the position at present, it would need to be filled in the future. Council Member Humpage stated that he had heard positive responses regarding the departmental changes as did Mayor Watkins. Manager Couzzo suggested that the full time position (in CD) that was reduced to two part time positions last year helped with budgeting but reiterated that the Village could not sustain with these cuts indefinitely. Manager Couzzo felt that department heads would be retiring in the next three to five years and the Village did not have employees knowledgeable enough to replace them. Council Member Humpage referenced the Police Captain retiring and felt that the Village needed to fill that position. Manager Couzzo stated the position was set to go part time and Council Member Humpage did not support that move. Manager Couzzo advised that Chief McCollom had committed to staying three more years. He stated that it would be difficult to replace the existing positions and all they accomplish. Manager Couzzo remarked on annexation and suggested the Village must illustrate the benefits of being part of the Village to allow residents to become interested. He noted that the process could take several years. Mayor Watkins responded that she was against forced annexation and felt people liked the Village and its neighborhood feel but may not be comfortable with change. Manager Couzzo felt the Village should focus on annexation as he believed the time was good for such a move. Manager Couzzo pointed out budget items such as Tequesta Parks and Recreation which was a great positive and the Fire Pumper balance would be paid off in the next year. He noted the Water Plant bid for a Reverse Osmosis (RO) Trane expansion would be upcoming with a number of interested contractors. He explained that each Trane came with upfront expenses but could bring two point one million in revenue to the budget. Manager Couzzo clarified that Tequesta's water rates would remain the same for next year and pointed out that rates had consistently gone down in past years. He commented that loan rates were low and recommended holding on to cash if a small interest rate loan could be acquired. Mayor Watkins expressed gratitude for the Village's frugal attitude and low millage rate but was concerned with the economic state and the future of the Village. She commended the Manager on his relationship with the Unions and the recent Fire contract negotiations. Minutes —Workshop 6/8/10 Page 3 Manager Couzzo responded that the relationships between the Unions and the Village had been built over the years with a mutual trust and admiration; he reiterated the recent negotiation outcome was significant and set precedence for the future. Manager Couzzo verified Councils approval for two residents to assist him with a Strategic Planning project which would include items such as long term forecast and staff retirements. He suggested Council focus on property prospects and updated them with current status of the Corner Stone and Paradise Park properties. Mayor Watkins stated she was against the purchase of Paradise Park at the projected figures. Manager Couzzo felt it would be a difficult decision to choose between the two pieces of land as the purchase(s) would take a large part of the Village's funds. He felt the upcoming retirements of several department heads would be a huge cost to the Village and should not be excused as minimal. Council Member Humpage replied that, (for him) replacement of employees would take priority over purchasing Paradise Park. Manager Couzzo commented on the prospect of annexation and noted that the Village would spend approximately $100,000 to $200,000 (possibly more) on such a venture. Mayor Watkins asked about servicing the counties fire calls. Manager Couzzo stated that the Village's contract with the County was a very good (15 year) contract with a reopener to negotiate fees. He suggested contemplating what to do with the vacant Station 11. Mayor Watkins stated that the Clerk had shown interest in utilizing the building to store historical items. Mr. Frank D'Ambra III, Strategic Planning Board, expressed his opinion on what he believed the board would offer to the Village's future. Mayor Watkins stated that Ms. Mary Hinton (a resident) offered to assist as well. Manager Couzzo stated that the Village had been smart over the years and was in good shape. Any Other Matters Mayor Watkins asked if there were plans or figures for redoing the Parks and Recreation Center. Manager Couzzo presented the drawing which showed plans for the new building. Council Member Humpage stated that the existing problem with building the larger facility was the lack of parking and offered his opinion and possible options to get more. Council Member Turnquest mentioned that a Fourth of July celebration was being planned at the Village to benefit the Wounded Warriors along with details of the event. Manager Couzzo commented on the significance of the Distinguished Budget Award which the finance department had received. He established the benefits of offering transparency of the budget to residents. Mayor Watkins recognized how difficult the award was to receive and noted there were submissions from North America, Canada and the United States. Manager Minutes —Workshop 6/8/10 Page 4 Couzzo stated that it was the Villages first time applying for the designation and very few first time applicants acquired the honor. Manager Couzzo stated he believed the County was experiencing difficult times and there was a possibility of them raising taxes 10 percent or more. He also mentioned an initiative where Tequesta could apply for a credit regarding their services but noted the County did not have to honor that request. Council Member Humpage offered details on the Village's September 11, 2010 event and that 911 beams from Ground Zero would be obtained and placed in the Village. ADJOURNMENT Upon motion by Council Member Turnquest, seconded by Council Member Arena, and unanimously carried, the meeting was adjourned at 9:37 a.m. Respectfully submitted, Deanna Mayo Village Clerk's Assistant