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HomeMy WebLinkAboutMinutes_Workshop_08/14/2007MINUTES VILLAGE OF TEQUESTA VILLAGE COUNCIL BUDGET WORKSHOP TUESDAY, AUGUST 14, 2007 Village Council Chambers 345 Tequesta Drive 9:08 a.m. I. Call to Order and Roll Call The Village of Tequesta Village Council held a Village Council Workshop meeting at the Tequesta Village Hall, 345 Tequesta Drive, Tequesta, Florida, on Tuesday, August 14, 2007. The meeting was called to order by Mayor Jim Humpage at 9:08 a.m. Roll call was announced by each individual. Present were: Mayor Jim Humpage, Vice Mayor Pat Watkins, Council Member Paterno, Council Member Amero and Council Member Turnquest. Also in attendance were: Village Manager Michael R. Couzzo, Jr., Village Clerk Lori McWilliams and Department Heads. II. Approval of Agenda 1) Review of Proposed 2007/2008 Budget Manager Couzzo explained the bulk of the General Fund Revenue was derived from Ad Valorem Property Taxes, and the Legislative Tax Reform had given directive to Tequesta to go to last year's rollback; then reduce it by 9%. He commented that last year's amended Ad Valorem Property Tax expectations were $6,059,000; and this year approximately $5,071,000; seeing a differential of 8.05%. He then referred to the hand out given by finance. Council Member Paterno asked what the changes were based on. Ms. Forsythe, Director of Finance, responded budget to budget. Council Member Paterno then asked the same of the original budget, she responded amended. Manager Couzzo noted that the percentage examples in the hand out could be misleading; and confirmed that the revenue figures were projected by finance. He then asked Ms. Forsythe to explain. Ms. Forsythe noted that a description of the General Fund Revenue was included with the example. She advised that the larger figures were estimated by the State and their accountants project a guaranteed portions and an estimated portion which finance was waiting on. She noted she also was keeping a seven year trend analysis; looking at the percentages coming in each month; and a year to year trend. She was also checking with vendors and watching the economy to determine what should be expected for the future. Council Member Amero questioned where the loss of cable revenue was in the budget. Ms Forsythe explained that the franchise fees were in 101; and were pledged against the bond and would not be seen in the General Fund; she referred to page 20 and Minutes-Village Council Workshop 08/14/07 Page 2 explained the Telecommunication Tax was put into effect by the State. Council Member Amero asked how much Tequesta lost. Ms. Forsythe reiterated the location and explained the figures. Council Member Amero believed there was a loss last year and felt the figures needed to be broken out so that Council could see where the balance was between years. Manager Couzzo added they would double check the figures and make them clearer for easier reference. Ms. Forsythe explained the figures would have to come from the State. Manager Couzzo commented that last year there was an appropriated fund balance of $151,781 to meet the projected expenditures of the revenues; this year Tequesta was not anticipating the need for anything from the fund balance. Council Member Amero suggested that it appeared there was a sizable increase somewhere to make up for a loss he believed happened previously; and he would like to know where the balance occurred. Ms. Forsythe responded that she would call the State and ask about the figures. Mayor Humpage explained the cable funds traditionally came from the State. Council Member Paterno questioned who was responsible to ensure Tequesta received the correct numbers from the State, and if the figures were found to be incorrect how Tequesta would be reimbursed. Ms. Forsythe replied the State was responsible for auditing the figures and Tequesta did not have staff to correct their work. Ms. Catherine Harding, Director of Community Development, commented that the County might help with that situation. Council Member Paterno stated the Administrative Management Fee from the Water Department of $265,000 to the General Fund increased the budget, and he would like to bring this to Councils attention; secondly, the Utility Tax for water of $140,000 represents a 9% tax on water and only represents Tequesta residents; the 25% surcharge stays in the Water Department and he felt this may change- figures in the future. Council Member Paterno questioned the State Revenue Sharing Proceeds in the amount of $178,000. Ms. Forsythe referred to page 2 of the explanation, she then explained the figures were considered a tax; and would be a tax to Tequesta if imposed by Tequesta; or a tax to the State and intergovernmental to Tequesta if imposed and distributed by the State. Council Member Paterno then referred to Rents and Royalties for the Sprint, Mobile and Nextel lease; he asked if they reduced the fund balance. Ms. Forsythe responded that the figure was given to the Village in advance; was recognized by one fifth and the rest was set aside for draws taken on a yearly basis with interest paid on the bulk. Council Member Amero asked why there was an increase. Ms. Forsythe explained the COLA increase was also figured into the projection figures and had a cap of 3%. Discussion ensued. Council Member Paterno questioned the Truck permit fee, and why it was reduced this year; and should Tequesta be generating more money in the account; and was this in 2 Minutes-Village Council Workshop 08/14/07 Page 3 accordance with the Ordinance. Police Chief McCollom, explained the permit was to use the 300 block of the Country Club; and there was several problems with the Ordinance due to concurrency issues. Discussion ensued. Mayor Humpage asked how the Ordinance could be enforced. Chief responded that he did not have the man power to monitor that Ordinance. Discussion ensued. Council Member Paterno expressed his opinion on the building permit fees; comparing last year's figure of $200,000, to this year at $400,000, and why the year to date was $307,000; he felt the figures did not seem right. Manager Couzzo commented the $400,000 was a reasonable projection. Council Member Paterno assumed the figures came from larger projects that the Village may lack this year. Mayor Humpage stated the larger projects had actually been cancelled previously. Ms. Catherine Harding, Director of Community Development, commented that the Village could bring in $400,000 with no trouble under normal conditions and she was not concerned with the figure; she stated the Village had several new businesses' including Stein Mart coming in. Discussion ensued. Ms. Harding discussed the Jupiter Inlet Colony contract and Manager Couzzo thought the Village could possibly lose the Jupiter Inlet Colony revenue. Council Member Paterno noted last year's projection was $40,000 and revenue was only $17,000. Manager Couzzo explained how the quarterly payments fall in the year to make the projection number and revenue number differ. He agreed that the amount of work for the Colony outweighed the revenues and needed to be adjusted. Mayor Humpage asked Ms. Harding if she was comfortable with the figures. Ms. Harding responded relatively comfortable and felt that permitting and work had been steady. Mayor Humpage stated Code Enforcement could use permit fees to help with revenues by double checking projects and being sure that permits have been pulled. Manager Couzzo suggested Council look at the expense side; make adjustments, and re-examine the revenue side. Discussion ensued. Council Member Paterno suggested taking the Jupiter Inlet Colony contract out of the budget and refiguring the numbers. Ms. Harding stated she had prepared a back up with different figures; anticipating that situation. Council Member Paterno referenced the emergency service fees, he compared last year's fire inspection fee of $17,000 to this year at $19,000, and the projection figure of $25,000, and felt it might be a little high. He then questioned the emergency service at Jupiter Inlet Colony and if Tequesta anticipated a change on that. Manager Couzzo stated Tequesta provided excellent service and felt there was a good return on that investment. Fire Chief Weinand explained the charges for Tequesta residents versus Jupiter Inlet Colony residents. Council Member Paterno felt Tequesta was leaving money on the table. Manager Couzzo responded that this was possible and he would have to look into that. Discussion ensued. Chief Weinand referenced the revenue from the plan review figure of last year which was $23,000, and this year at $27,000. He had concern that revenue had been coming in low; he previously anticipated collecting $10,000; then with Stein Mart coming in he 3 Minutes-Village Council Workshop 08/14/07 Page 4 raised the figure to $16,000, and stated his adjusted figure was a conservative $12,000 and he was comfortable with that. Discussion ensued. Council Member Paterno questioned the EMS transportation fee and felt the figure was high by about $50,000. Chief Weinand explained the figure was always behind by at least a quarter because of billing practices and procedures with insurance companies. Council Member Paterno was concerned the numbers would keep dropping due to a younger resident base. Chief Weinand referenced the hurricanes two years ago having an effect on the number of runs and was a false escalator; he also mentioned losing the nursing home which brought in approximately 50 to 100 calls. Discussion ensued. Chief Weinand referenced the bad debt from seven years ago. Ms. Jody Forsythe, Director of Finance explained a mishap had happened and since it had been some time Chief Weinand would like the figures off his software, but was very uncomfortable removing items without approval. Ms. Catherine Harding, Director of Community Development, explained that Code was asked recently to follow up on the debt and was successful collecting a significant amount of the funds. Chief Weinand stated the Village was charging fees less than they were receiving from Medicare, and he would bring an Ordinance to Council regarding raising the fees to adjust to Medicare's figures. Council Member Paterno suggested developing a policy under accounting where all the figures could be seen clearly. Council Member Paterno questioned a transfer from IBR for $448,000. Ms. Forsythe explained that a bond was taken out and revenues were pledged against it then once the revenues were collected the debt was paid and the money left was to be placed back into the General Fund. Council Member Paterno asked if Tequesta was collecting money to pay off the bond. Manager Couzzo explained the bond expired in 2009 and had only two payments remaining; then there would be no more debt. Ms. Forsythe stated after the bond was paid, the fund would be closed and would be a source of savings for the Village. Council Member Amero questioned the details of the anticipated increase from extra duty. Police Chief McCollom explained that based on a trend which had exceeded expectations the account was a wash other than some administrative fees. He stated the figure depended on events from businesses and would fluctuate; he added Finance rectifies the account once a year. Mayor Humpage inquired about the amount Tequesta Police charged for the security responsibilities. Chief McCollom replied $37.00; the Village received $7.00; the officer received the remainder less taxes. Council Member Amero stated he was concerned with the $400,000 building permit fees and would like to take a look at that. Vice Mayor Watkins stated she appreciated the time taken by Finance to go over the figures and affirmed she approved of what was presented. Council Member Turnquest replied he would like to sit down with Finance for better understanding. Mayor Humpage advised that the Village had complied with Legislative request and a roll back rate; and commented that Staff was responsible for multiple tasks and had done a great job with 4 Minutes-Village Council Workshop 08/14/07 Page 5 the budget. Vice Mayor Watkins confirmed that the Village was doing fairly well compared to many municipalities which were having difficult times. Manager Couzzo explained the salaries and per diem portion and the change in the donation account with eight community organizations which had previously budgeted at $25,000 and now was reduced to $15,000; he did not believe the Village had donated $3,000 to date. Ms. Jody Forsythe, Director of Finance confirmed the donation figure was at $3,000. Council Member Paterno stated the Village had donated to specific schools in the past and he would like to maintain those donations. Manager Couzzo stated the donations could come out of the current budget. Manager Couzzo explained the Managers budget change was due to the new Executive Secretary taking family insurance when the last Secretary did not. He then asked that the department heads introduce their sections. Ms. Merlene Reid, Director of Human Resources, verified the impact to her section was Dan Gallagher's position was no longer; and she switched her health insurance from family to individual. She explained along with contractual services and training, her budget had an overall decrease of 19-20%. Manager Couzzo stated that Ms. Reid was assisting with items that were previously handled by sub-contractors; and this also caused a decrease in the budget. Vice-Mayor Watkins noted that some of the savings was due to training and felt that training was very important in the past and did not agree with cutting corners in this area. Council Member Paterno agreed and stated he would like to see more training for employees along with software upgrades. Mayor Humpage reiterated the training figures should be revisited. Amero stated he would like to see the printing and binding cost (under Finance) reduced and more focus on the technical resources as well. Manager Couzzo stated he would like to see the Village send items electronically and only print for individuals upon request. Council Member Paterno suggested upgrading equipment for individuals that needed to print their items from outside Village Hall. Mayor Humpage stated he did not want to increase the budget by buying new equipment; and he has had the need to call the Village to print out many items his equipment could not handle. Ms. Lori McWilliams, Village Clerk, explained that her portion of the budget had increased to support an electronics system implemented previous to her arrival. She stated that a new polling location for Tequesta increased the budget as well. She was also requesting the Clerks Assistant part time position move to full time. Council Member Paterno questioned investing into software instead of man power. Manager Couzzo stated he supported the position and explained there were many duties in the Clerk's Office that required additional assistance. Vice Mayor Watkins stated she understood why the position was needed. Mayor Humpage stated he did not see a problem with the addition and supported it. Council Member Paterno was concerned with the budget aspect of hiring a full time person, but would like to see the work duties covered and felt training was important along with computer upgrades. Ms McWilliams explained the Clerk's Office was responsible to review an abundance of items before they go to the public and that takes man power. 5 Minutes-Village Council Workshop 08/14/07 Page 6 Manager Couzzo stated the two part time positions going full time; and the insurance figures would be a wash because the Village would have a tremendous savings on salaries with the two eliminated positions; he also felt more funds would be available to enhance Tequesta's technology. Council Member Paterno reiterated he would like to see the Village reinvest savings into their technology systems. Ms. Mc Williams confirmed that the Onbase Imaging System was a tremendous system with efficiency for all departments. She explained that each department would be analyzed for development of their program series through Onbase programmers. She confirmed part of her budget was for upgrades and the Onbase yearly maintenance agreement. Ms. Jody Forsythe, Director of Finance, explained she had spoken with Police Chief McCollom concerning a bar code system which would track items such as account statements; customers; and revenues. She felt bar coding would be an excellent tool for the Finance Department. Ms. Merlene Reid, Director of Human Resources stated the Village had consultants and was willing to spend the money to direct in upgrading all departments. Ms. Lori McWilliams expressed her concerns with spending $70,000- $80,000 bringing Onbase to the Village and wanted to see all departments benefit from one system. She stated a mini analysis was performed initially for Tequesta showing that Onbase was advantageous for all departments, and she was concerned that departments were veering off onto additional systems. Council Member Paterno interjected that this was what they were trying to avoid. Chief McCollom recommended building on the Onbase system; having a plan and bringing in an IT person that knew Tequesta's system. Manager Couzzo felt searching for a part time IT person would be next to impossible because they were so valuable and favored hiring a full time person who was already familiar with the Village's system. He suggested this would eliminate the need for paying a premium each time a problem arose and would save the Village money. Discussion ensued. Council Member Amero felt it would be beneficial to have someone in house to take care of issues immediately. Ms. McWilliams stated the cost for each Onbase service call was $165.00 an hour. Manager Couzzo indicated the Village was at the point that they needed to further contract with Onbase or hire a full time IT person. Ms. Reid stated that all the contractual agreements would not go away from hiring one IT person. Council Member Paterno suggested that 70 employees were affected anytime there was an IT issue. Council Member Turnquest recommended having Onbase give a demonstration before any decisions were made and stated he supported hiring a full time IT person. Ms. McWilliams replied she would be available to give Onbase demonstrations and could have an Onbase representative available if requested. Manager Couzzo provided an overview of the budget for the remaining departments. He noted there were no personnel changes to Finance; and the Assistant Director's position would be restructured. Ms. Jody Forsythe, Director of Finance, stated the department had budgeted for training and felt after the training Finance would be much more proficient. Manager Couzzo referred to the Legal Budget and hoped there would be no additional litigation cost involving Mr. Dallack. He stated other than Community Development 6 Minutes-Village Council Workshop 08/14/07 Page 7 expenses which were related to General Legal Services and included Mr. Hawkins, his firm and labor for contract negotiations; he confirmed the figures were estimated and commented that an effort to keep the figures down was being made. Council Member Amero stated the attorney figures were very high for a Village of this size and must be reduced. Manager Couzzo replied that department heads rarely utilized the Attorney on issues and agreed the figures were out of hand. Council Member Amero felt department heads were fearful of making wrong decisions and suggested they run questions by the Manager or Council and not to involve the Attorney on issues. He commended department heads on their knowledge and expertise; and reassured them that they were bound to make mistakes but needed to assess situations and make their own educated rulings. Vice-Mayor Watkins felt part of the problem was concern from Council wanting to be sure issues were being handled properly and felt the figure was too high. Discussion ensued. Manager Couzzo explained that General Government was to asses cost of departments which were not public safety in nature examples were Finance, Manager, Clerk, HR, the HVAC, and water for the building, printing and binding, newsletters etc. Ms. Jody Forsythe, Director of Finance interjected that it was overhead that was not worth dividing among departments. Council Member Paterno questioned the sick pay, conversion pay and compensated absences. Manager Couzzo confirmed that this figure could only be and approximation, and gave an example of last year when an employee left unexpected and the entire liability was not budgeted for and could not be because it would artificially inflate the budget and the figure would have to be adjusted on an individual's accumulated monies. Ms. Jody Forsythe, Director of Finance stated this year the Village spent $57,000 on compensation. She stated it would be beneficial if the date of retirement was known, but because dates were unknown the figure was always a rough guesstimate. She stated if they went over the budgeted figure Finance would come back to Council and adjust accordingly. Manager Couzzo explained the Police budget was recommending deletion of the Administrative Assistant position and no other personnel increases or decreases were in that department. He referenced the Capitol Equipment and explained the department had purchased two new cars and was refurbishing one of the existing units. Chief McCollom commented that staffing stayed the same in communications; the investigative division was rolled into patrol to make the operations divisions more efficient. He stated that philosophically each officer was expected to be an investigator. Council Member Amero question the number of vehicles in the department, and if the vehicles were taken home, and Chief McCollom replied eleven and no. Council Member Amero asked how many officers were on duty at any given time. Chief replied they averaged four day officers and two at night. Council Member Amero inquired about the FRS contribution jumping from $5,500 to $12,000. Chief McCollom stated that Jennifer Gazo, Property and Evidence Custodian, was responsible for property and evidence and was rated a higher risk by FRS. Council Member Paterno asked if the Village could use someone already in high risk to take care of property and evidence. Chief 7 Minutes-Village Council Workshop 08/14/07 Page 8 McCollom stated that someone new could be trained, and explained that Ms. Gazo's position had various responsibilities which had naturally evolved to where it was now. Mayor Humpage asked -who would be in that category. Council Member Paterno commented that Charlie Weinblatt a detective who already processed evidence would be. Council Member Amero questioned wages/salaries and felt the increase was extreme. Manager Couzzo replied that some of the figures referred to were from last year. Chief McCollom replied that he was requesting investigative training and the increase of Mr. Weinblatt's figures which were rolled in from the previous year were part of the increase. Council Member Turnquest responded that the bottom line of the increase was actually 0.02% and looked very good. Chief McCollom stated he did not want to lose the successful programs in the department and that maintaining basic services were priority. Council Member Paterno felt the decrease in training was a poor proposal. Chief McCollom stated he had confidence that the new Director of the Academy would bring more local training including Sergeant training to Palm Beach County eliminating out of town travel, therefore, saving on training cost. Manager Couzzo reported that the Building and Zoning Department had no changes in personnel; and none in capital. He stated the only significant change was in legal services due to more code violations being prosecuted which brought in revenues. Ms. Catherine Harding, Director of Community Development, explained when the Village prosecutes a case; the violator pays attorney fees, court cost and the cost of the hearing and the Village acquired no cost in that scenario. She stated this was the normal circumstances and only remembers the Village paying for court cost once. She noted that the Village Attorney was only called if the Defendant had Counsel. Ms Harding explained that Code was still having legal issues with the Crossings regarding maintenance and the bond. Council Member Paterno expressed his opinion that it had gone on too long. Vice-Mayor Watkins felt the legal issue was another cost that was ongoing and unnecessary. Ms. Harding stated Code Enforcement had cited the property and felt the issue would be going to Special Magistrate next, and there should be no need to bring in the Village Attorney. Manager Couzzo referenced the Fire Department section and indicated the civil expenses regarding preparation supplies which was in place in the event of a storm or disaster. He stated last year it was budgeted at $50,000, and year to date the Village had spent $1,300, and now was adjusted to $7,500. Mayor Humpage asked if this type of cost was reimbursable by FEMA. Chief McCollom stated it depended on the magnitude of the storm, and some items in this account would not be reimbursable such as rain gear. Mayor Humpage suggested the interest on the reserve money offset these expenses. Manager Couzzo confirmed that was basically the way the fund was set up. Fire Chief Weinand commented that the Fire Control and Rescue had been combined; and one interim position had been eliminated. He also decided not to fill an interim 8 Minutes-Village Council Workshop 08/14/07 Page 9 position and stated all the changes account fora 23% decrease in the budget. He commented on a Capitol purchases which would replace five air packs which did not meet new NFPA standards and some computers. Council Member Paterno asked if the intern spot could be utilized if a Fireman left. Chief Weinand stated the amount of training for a Fireman and intern were not equal in any way and would not be a good trade off. Council member Turnquest asked if the ambulance would be in this budget. Mayor Humpage stated that was eliminated out of the budget at a previous meeting. Manager Couzzo referred to Refuge and Recycling and Waste Management's proposal of $12.83 for residential; with the new number of $11.25 and commercial was proposed at $7.25. He stated Waste Management affirmed that was their best price he noted the budgeted figure was designed for the worst case scenario. Council Member Amero asked about waste pick up dropping to once a week. Manager Couzzo explained the saving's would be approximately 30 cents a week. Vice Mayor Watkins felt the residents may not want to accept once a week. Mayor Humpage stated the waste company would have to hire additional trucks too be able to pick up a week's worth of waste in one day and did not like the idea of garbage sitting around residents homes for a prolonged period. Discussion ensued. Manager Couzzo commented there were many scenarios, and there were reserves that could buy down the number. Vice Mayor Watkins stated the public would need to be made aware of the changes. Mayor Humpage discussed the fuel and time savings to cross the bridge, and once repaired could be a negotiating .tool. Council Member Paterno and Council Member Amero responded that that was a good plan. Consensus agreed (Mayor Humpage, Vice Mayor Watkins, Council Member Amero, and Council Member Paterno) to consider buying down the reserves. Manager Couzzo replied he would chase the buy down after the bridge repairs were complete. Manager Couzzo reported the changes to Public Works were that they had no Department Head which reduced the salary significantly and their Capital budget showed replacement of one truck. Mr. Russell White, Public Services Manager, stated the budget included no street light or sidewalk improvements. Manager Couzzo added that the figures were basically maintenance numbers; he then explained that the responsibilities changed and would now be; Public Works would be maintaining Tequesta Park, and Parks and Recreation would be maintaining Constitution Park. Council Member Paterno asked about the numbers relating to irrigation on common areas. Mr. White replied they would be contracting that out. Vice Mayor Watkins responded that residents may not be willing to maintain their own property where the Village had always maintained it in the past. Council Member Paterno asked about the size and need of the new truck. Mr. White responded that the truck was full size and was replacing a 1996 truck which was in disarray. Council Member Paterno asked if the department could use a smaller truck and switch vehicles around to conserve on gas. Mr. White commented he would look into getting a smaller truck which could be designated for maintenance on smaller jobs. Council Member Paterno questioned a $12,000.00 diesel figure. Chief Weinand replied that that figure was from combining Fire and Rescue which made the number appear lopsided. 9 Minutes-Village Council Workshop 08/14/07 Page 10 Council Member Paterno asked how the departments know who gets gas. Mr. White responded each person must log in when they get fuel and felt it was very beneficial to have easy access to the fuel especially in the event of a storm. Mayor Humpage referenced speaking to Karen Marcus about Jupiter getting ~ discretionary money to complete the swales and sidewalks on Tequesta Drive from the \1~1~ bridge to Country Club Drive and Tequesta appropriating the funds to do the street lights. Council Member Paterno suggested Tequesta doing the sidewalks and asking the County to do the street lights which would be a longer commitment. Manager Couzzo reported that Parks and Recreation had a proposed change in personnel for a part time position to go to full time. Mr. Greg Corbitt, Director of Parks and Recreation stated that the elimination of parks 230 account had created better capability for Leisure Services to take care of the Recreation Building and Constitution Park, he also stated an increase in special events and recreational programming was figured into the budget. He stated there were two non-matching grants from the State, one for $150,000 designed for Constitution Park which must be used by April 2008 and $100,000 for Tequesta Park with a three years project completion date. Council Member Paterno questioned the special event figure of $42,000. Mr. Corbitt replied the event figure included the Harvest Festival and the Concerts in the park. Council Member Paterno asked what could be done to benefit Tequesta residents during such events, since the events were primarily paid for by the residents. Mr. Corbitt stated the goal was to allow the residents free admission to all events, and stated they would have to show an ID card which they would register for and all others would be charged. Mayor Humpage indicated possibly having issues with seasonal residents not having their ID cards and getting upset when told to pay. Manager Couzzo suggested allowing them in with identification and suggesting they come and apply for their card at their earliest convenience. Council Member Amero noted the use of the Village publication and the media advertising this advantageous endeavor to educate residents should be done as well. Mr. Corbitt stated it was a work in progress and would benefit residents at the Movie in the Park, offered classes and other events. Council Member Paterno confirmed he did not support the part time Parks and Recreation position going to full time and felt Mr. Russell White, Public Services Manager should pick up the slack instead. Mr. Corbitt explained the part time person did quite a bit and was also a dedicated employee who did janitorial services, and also monitored Constitution Park. Vice Mayor Watkins stated that the Park was on the top of the priority list for many people in the Village and felt Mr. Corbitt was running a great department. Council Member Paterno responded that he was more concerned with the budget and felt hiring a second part timer would be more beneficial. Mayor Humpage stated the Park was a jewel and he supported Mr. Corbitt's decision; he stated to make a better organization Council should support Mr. Corbitt and move the part timer to full time and close the matter. Vice Mayor Watkins expressed she supported Mr. Corbitt's 10 Minutes-Village Council Workshop 08/14/07 Page 11 decision; felt the employee was loyal and did not feel it was a good idea to hire another part time employee. Manager Couzzo referred to a blue book and the debt service in the General Fund that Ms. Jody Forsythe, Director of Finance put together for future reference on decisions made by Council. He explained that the book referenced items such as the loan on the Public Safety Building, which had a twenty year fixed loan, the Pumper, Tahoe, and the ambulance which were all Fire Department vehicles, the radio system and the Parks and Recreation vehicle. Manager Couzzo noted the Water Revenues and explained it was different than the General Fund, Refuge and Recycling, or Storm Water and explained that Specialist were used to perform rate analysis to keep the system functioning. He stated his prediction for revenues were very conservative in the event there was a water shortage and he did not boost water sales. He also explained the bulk of the change was a 2 million dollar capital construction figure and confirmed the Plant expansion was complete. Manager Couzzo explained the expenditures which included Administration, the Village Manager and the Assistant Finance Director. He also noted that production included everything in the plant from the pumps to making the well water into a finished product and a Water Plant Operator II position was added because of the size and age of the facility and regulation requirements. He affirmed the Utility Service charge would go up approximately 30 percent and the chemical expense had doubled. Manager Couzzo noted the contract to purchase water from Jupiter ended; with the recent figure of $587,000 which reflected approximately 75% of an annual cost, and added the prior year had cost Tequesta $693,000. He stated as a precaution, the Village was projecting a figure of $35,000 in the event of failure; and commented the cost on the operating side of production was reduced by approximately $325,000. Manager Couzzo explained the distribution portion of the water which included the finished water and all the items past the plant such as piping, meters, valves, and hydrants; that department had no personnel changes; and a capital change of adding a pipeline on the Beach Road going over to the Island. He added they were also refurbishing the tank at the Public Works facility and the extent of deterioration was unknown at this point. Manager Couzzo referred to the allocation to Fund Balance 590.001 which had a figure of $500,000; he explained the money would go back to the reserve with the idea of expanding the third train; he would like to continue this for a couple years; then put in for a grant from Palm Beach Water Management and possibly receive between $750,000 and $1,500,000 which would allow the Village to pay cash for the third and final train. Ms. Jody Forsythe, Director of Finance noted the $900,000 designated for the completion of well number two and the $1,200,000 designated for other expansion projects that had been completed needed to be removed; and Council needed to decide where money should be designated in the Water Plant. Minutes-Village Council Workshop 08/14/07 Page 12 Council Member Paterno asked if the Village received the reimbursement money from the South Florida Water Management. Mr. Russell White, Public Services Manager, responded the $430,000 would be received within 30 days and suggested the Village re-apply for grant money in 2008, he felt they would receive additional funding and understood additional grant money was being given for alternative water sources. Council Member Paterno debated the need for the third train. Manager Couzzo believed the engineers would strongly suggest putting on an additional train. Mr. White explained the benefits of alternating between trains especially in the case of plant issues. Discussion ensued. Manager Couzzo suggested the cost of buying water from Jupiter could be enormous and having an additional train would eliminate that need. Vice Mayor Watkins felt the additional train would generate additional income. Council Member Paterno felt it would be more beneficial to repair the well that existed so that water could be pumped up if a train went down, therefore, saving money. Mr. White explained there were days that the Village pumps at a maximum and if something went wrong; with what they had; they would not be able to pump enough water. Discussion ensued. Council Member Amero left the meeting at 12:45 p.m. Ms. Jody Forsythe, Director of Finance noted that a Bond for $1.9 million was paid off in July 2007; she added a Treasury Bond to match that bond was set aside to mature at the same time. Manager Couzzo advised that the existing 30 year Water Bond for expanding the Water Plant in 1998 in the amount of over seven million; and was due to be paid off in 2028; the payment was approx $500,000; he felt the loan structure and the rate was very fair and felt refinancing would be additional cost that the Village should not attempt to incur. Discussion ensued. Council Member Turnquest left the meeting at 1:00 p.m. Manager Couzzo explained that Storm Water II was an Enterprise Fund; the money was charged on the tax bill as an assessment then the Village uses the money to for Storm Water improvements. He commented the revenues were going up slightly and the rate did not change. He stated the difference on the revenue side was that money was not being borrowed from the fund balance as in the past. Manager Couzzo noted there was one employee charged to Storm Water and a vehicle in the Capitol. Mr. Russell White, Public Services Manager stated the pickup truck was ten years old and needed to be replaced. He also noted there was an old pipeline which needed rehabilitating. Manager Couzzo reported there was close to $65,000 in contingency balancing that budget and money in reserve. Manager Couzzo referred to page 31 items 301 and 303 of the Capital Fund and stated there was a transfer in revenue from the General Fund in the amount of $330,000 which was designated for repairs to Tequesta Bridge. Vice Mayor Watkins expressed her feeling to make the Bridge a priority because of necessity and numerous calls from the residents asking when the repairs would be started. 12 Minutes-Village Council Workshop 08/14/07 Page 13 III. Adjournment Meeting was adjourned at 1:18 p. m. Respectfully submitted, ~~ ~~~~~ Lori McWilliams, CMC Village Clerk 13