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HomeMy WebLinkAboutMinutes_Special Meeting_09/14/2006S MINUTES VILLAGE COUNCIL SPECIAL MEETING FOR PUBLIC HEARINGS ON THE TENTATIVE FY 2006/2007 MILEAGE RATE AND TENTATIVE FY 2006/2007 BUDGETS SEPTEMBER 14, 2006 I. CALL TO ORDER AND ROLL CALL The Tequesta Village Council held a Village Council Special Meeting at the Tequesta Recreation Center, 399 Seabrook Road, Tequesta, Florida, on Thursday, September 14, 2006. The meeting was called to order at 6:34 p.m. A roll call was taken by Village Clerk Gwen Cazlisle. Council Members present were: Mayor Jim Humpage, Vice Mayor Tom Paterno, Council Member Geraldine A. Genco, and Council Member Pat Watkins. Also in attendance were: Village Attorney Scott Hawkins, Village Manager Michael R. Couzzo, Jr., and Village Clerk Gwen Carlisle, and Department Heads. t II. APPROVAL OF AGENDA MOTION: Council Member Watkins moved to approve the agenda, as submitted; seconded by Council Member Genco; motion passed 4-0. III. PUBLIC HEARINGS 1) Ordinance No. 608-First Reading-An Ordinance of the Village Council of the Village of Tequesta, Palm Beach County, Florida, providing for levying a millage rate of 6.4980 per $1,000.00 of taxable valuation 18.1867% greater than the rolled-back miilage rate of 5.4981 per $1,000.00 of taxable valuation for the Fiscal Yeaz 2006/2007; and providing for an effective date. Village Manager Couzzo stated briefly this is the same millage rate the Village has had for the past few years. Mayor Humpage announces the Public Hearing is open. Village Clerk Cazlisle read Ordinance No. 608 in its entirety. Village Manager Couzzo stated the property appraised to the Village of Tequesta for this year is $981,627,078. He explained what the number represent are aze all the property assessed in the Village by the Palm Beach County Property Appraisers Office which is 18% higher. f (Public Comment) Ms. Cathy Vokoun resident of Stuart, and property owner on Beacon Street mentioned she has owned the home for the past 15 years and their taxes in the 1990's were around $1800-$2200 a year. In 2002 the taxes went up to $2,700, in 2003 $2,900, in 2004 $4,100, and this yeaz they are going up to $6,000. She indicated it is a 2 bedroom/2 bath house, one car garage, and that they rent the house. She pointed out they will not be able Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 2 to rent the house any longer because of the taxes, and whoever buys the house would have to pay taxes of $500.00 per month. The house is assessed at $264,000, and is probably worth $300,000. She felt the taxes would probably be even more if the house is sold. She noted the facilities aze great in the Village, but people aze not going to be able to afford to pay the taxes and the insurance is going up. She pointed out the city taxes alone are going up $500, and that does not count any other tax. She asked Council to reduce the millage rate. She compazed Jupiter to the Village taxes and felt the Village was outrageous. She noted if she lived 3 or 4 streets over, in the unincorporated azea, her taxes would be substantially lower then what she is paying in Tequesta. Mr. Jim Gibbs, resident of Beacon Street pointed out the new property assessment value for the Village is now $982 million dollars. He stated that is an increase of 19% over 2005-2006, with the increase being $156 million plus dollars. He asked what Council was going to do with the money if they get it. He explained the draft Budget Summary showing the Millage rate, and General Fund. He mentioned the total revenues, transfers and balances total over $18 million, with some of the additional incomes coming from the Water Utility, refuse and recycling, and stormwater utility which are run like businesses. He stated those funds should produce their own income, and not be a result of taxes to the homeowners, since they are run like companies. He noted with the taxes going up this makes the house unavailable, and probably before the yeaz is over they will be moving to Tennessee. They can no longer afford to live in Florida. (Council Comments) Vice Mayor Paterno mentioned he has comments but would save them for Item 2 regazding the Budgets. He commented if the budget does not change the millage would have to stay at what is proposed. Council Member Genco stated she would also reserve her comments for Item 2. Mayor Humpage closed the Public Hearing. MOTION: Council Member Watkins moved to approve First Reading of Ordinance 608; motion failed for lack a second. Village Manager Couzzo suggested reordering the agenda and take Item 2 Ordinance 609, first regazding the Budgets, and then come back to Item 1, Ordinance 608 regarding the Millage. Consensus of Council agreed. 2). Ordinance No. 609-First Reading-An Ordinance of the Village Council of the Village of Tequesta., Palm Beach County, Florida, providing for the adoption of the budgets for the Fiscal Yeaz commencing October 1, 2006. Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 3 Mayor Humpage announced the Public Hearing was open. Village Clerk Carlisle read Ordinance No. 609 in its entirety. (Public Comment) Mr. Russell von Frank resident of Dover Road commented he wanted to congratulate Staff for a super job. He noted in the last budget Council set aside monies for the Dalack lawsuit; he asked what has been spent so faz, and what is the projected amount for the next yeaz. Council Member Genco noted that issue would be covered in the Regular Meeting which would commence after this meeting. Mayor Humpage commented he has the totals to give at the meeting. Mr. Von Frank noted there was $200 set aside for a General Election, he questioned whether the Village planned to have a special election. Mayor Humpage indicated the court would be able to decide that, and did not know when since the court has not set a date. Mr. Peter Allen, representing the Village Firefighters and Paramedics, commented he was there on behalf of the employees. He thanked Council and the Village Manager for the support they have shown the Fire Department this past year and prior yeazs. He especially thanked them for the cooperation and openness they worked with and dealing with issues that effect the Fire Department. He commented Staff looks forward to providing the top-notch service that the residents have become accustomed to. He thanked Council. (Council Comments) Vice Mayor Paterno distributed a spreadsheet to Council regazding the General Fund #001 Expenditures. He pointed out the first column would be last years 2005/2006 budget, and the next column is 2006/2007 budget as amended, and Column (3) is what is estimated by Staff for the remaining of 2005/2006. He mentioned Column (4) would be the budget as adopted for next year. He explained if you look at the last column - Personnel services would have gone up 25.24% in two years if they take this budget. He felt this was high. He noted another thing he found was from 2005 budget to the proposed budget of 2007, operating expenses have increased 18.47%. He stated he remembers last year Council talked about keeping employee costs, if they could, at approximately 6%. He mentioned he also recalls Council discussing operating costs being at 3%. He commented he finds this budget extreme, and he also concurs with Council Member Genco's comments last meeting that the Village is going to end up in a position of expenses being higher than income. He explained with the proposed budget it does not include contracts for the unions, so it could be more, a higher expense than what is indicated on the budget and spreadsheet. He noted there could be another cost involved on the personnel side. e Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 4 Vice Mayor Paterno noted based on his understanding there could be 2007/2008 employee pay raises, and a 3% growth on the operating, Council would be looking at, not this year, but the year after, another $500,000 in expenditures at minimum. He pointed out in an article in the newspaper today, foreclosures have quadrupled the rest of the United States. He felt the assessed values are not going to be going up very high, and probably would not reach the 8.33. He stressed the Village could have a problem with the future budget, if they adopt the budget as is. Vice Mayor Paterno commented he owns some commercial property, and as an example, last yeaz one of his buildings the taxes went up 100%, they doubled. He noted it was an apartment building so he had to pay out of his pocket, and he had to raise the rents, and people had to move. The residents were the ones that had to carry the burden. He commented with commercial properties the owners push it off to the person that has rented the space, and they divide it up. He noted at this point with these taxes going up in the commercial areas so high that is one of the reasons the Village has businesses that have to leave, and small businesses can not operate paying taxes that aze going up 40%. He felt it was ridiculous, and being a taxpayer himself. He distributed a list of the proposed taxes paid by homeowners along the River in his neighborhood. He read off $42,490; $10,300 they must have been there a long tune; $10,500, $50,500, $55,600, $58,900, etc. and this is going down the street. He commented this is getting out of hand, and between the taxes and the insurance the Village is killing the residents. He commented another thing that was added into the budget in Personnel Services, there was originally $85,000 there, now personnel services have taken up another $67,400 of it; the planning department has an expenditure of $35,000, bringing the contingency fund in #001 to zero. He stated fortunately the Village would not be taking any cash in the new budget out of the bank. He indicated the Village originally started with $400,000 in account #301 to put towards the bridge; and now down to $153,000 in contingency fund for this yeaz. He pointed out in the upcoming budget there is $385,000 put in for Capital Projects, which is a very small percentage on a $9 million dollaz overall budget in the General Fund. He commented as many times in the meetings he has heazd about saving money on Insurance and Workers Comp; and Council has spent the money, and if they keep spending it, such as in last years budget 2005/2006 they appropriated $292,000 for cash to go towazds the budget, the end of the yeaz was $1.3 million, so it went up over $1 million dollars. The budget adjustments are out of hand, and especially at the end of the year, like today they are going to spend more on adjustments. He felt Council needed to do something about the budget, and do it now before it is too late. Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 5 Council Member Watkins commented Council and everyone is sensitive to what is going on with property taxes, we all live here in Palm Beach County, and it effects each one of us. She asked Council and everyone to take a look at this as Tequesta versus the entire County pocket. She pointed out Tequesta has always prided itself on providing the highest quality service to the residents. She indicated the millage rate was reduced 2 or 3 years ago, and before that it was the same for about 6 yeazs. She pointed out in the three yeazs she has been on Council, the Village has undertaken the new Village Hall and paid for it, no debt service; revitalized Constitution Park, and currently working on Old Dixie Highway improvements, etc.; and also have worked with 3 hurricanes, and Tequesta Drive Bridge repairs; and lost 3 Department Heads. She mentioned the Village has maintained very healthy reserves, and Council looked at the salaries and wages for the Village employees this past year. She noted it was a priority to be able to attract good employees to the Village, and keep the excellent people we have, whom do more than one job, and not lose them to other municipalities. Council Member Watkins hoped with the salaries and capital projects items out of the way, that the Village could look towazd a millage decrease next fiscal yeaz. She pointed out Council had 3 workshops to review the budget, and questioned where were the objections. She commented it is not fair to Staff who has worked so diligently on the budget, for everyone to wait and come to this meeting and raise an objection to it. She noted Council can not have it both ways; she thought in concept Council had agreed to the salary increases and other budget items in the budget workshops, and now wanted to change things. She explained Tequesta is trying to use the money diligently to keep and enhance the quality of products and services the Village provides for the residents, and look toward reducing it as soon as possible. A resident asked for a call to order. Mayor Humpage indicated the meeting was in order and Council was addressing Council Comments. Council Member Genco agreed with Vice Mayor Paterno. She stated what we have is a situation where we have revenues which come from our taxes, franchise fees, gasoline tax, water tax, and communication taxes, etc. She commented if you look at what the total revenues aze, without counting revenues that are being generated by individual departments, such as Community Development's permit fees, and Public Safety's transport fees; she noted generally speaking the Village is getting a little less than $1 million dollars from revenues from Village operations, and different departments. She pointed out the primary source of our taxes are from ad-valorem. She stated if you look at the number of sales in the Village, particularly along waterfront property; the Village has reaped a big windfall. Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 6 She stated what they also have is an increase of employee expenses, which is almost the equivalent of the revenue. She commented the Village had some azeas that were understaffed, which is now staffed; and other areas in public forums she had disagreed and felt they were not needed, and now the Village is in a situation where when you look at the taxes and franchise fees; they aze being eaten up by employees. Meaning they have limited resources left for Capital Improvements. She stated the Village has a business to run, and roads to maintain, landscaping to take Gaze of, and repairs to the facilities. She explained she expects the taxpayers to get that back for paying their taxes. Council Member Genco noted the situation they are in right now is not a comfortable one; she applauds the Staff because they worked very hazd on the budget in trying to come up with what they felt were reasonable operating expenses and salaries, however, she could not endorse any additional employees. She felt when employee's leave in certain departments, maybe the Village does not hire a position there. She included when looking at the Pensions, the Village has to maintain a certain amount of money in order to cover pensions; and if the pension does not make a 8% return, actually a 11 % return, on the pension assets, Council has to kick in the difference. She stated 11% is break even, meaning any year that is a bad yeaz; the Village has to kick in whatever it is. She noted she expects that to happen, it has happened before, and it is going to happen again. She stressed what Council needs to reach here is a philosophy, whether or not they want debt to take caze of the operations, or whether they do not want debt, or whether or not they want to continue to grow the number of employees in order to provide the citizens with additional comfort. Council Member Genco stated she did not know what the taxpayers wanted, and noted she is not comfortable with what is proposed this evening. She explained she has not been comfortable with the increase in personnel expenses, but they can not continue to add on more staff, and can not continue to pay the kind salaries they aze paying, which is decent, and expect employees to be wanting more. She stated the Village can make it like Palm Beach and keep improving the infrastructure; so taxes are going to go up. She felt Staff could be decreased by attrition, and the taxes would probably stay very close to the same. Council Member Genco felt it was a fair budget, but unless they start looking at cutting comers, and whether or not the Village wants debt, if we keep on this course of action, the taxes will not go down next yeaz; taxes will go up, unless they want to see potholes, and lack of maintenance in certain azeas. She stated one other thing is Reserves. She commented she has talked to almost every municipality on what they aze holding for reserves, some of them are extreme at 30-50% operating; the Village of Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 7 Tequesta wants to keep it down to less than 2 months of operating expenses. She indicated she is not comfortable with that. She stated if the Village was to have a hurricane or major disaster in the area, where are they going to get the money from; she pointed out they either take it from savings or go borrow it. The savings are their reserves. She stated she is not comfortable with the philosophy, and would like to see more reserves, and Council looking closer at employees, number of employees, and things that aze offered out there in corporate, and other municipalities, such as 401 k and cafeteria plans. Mayor Humpage noted the buzz right now is taxes and insurance. He indicated he has 4 other residences in the Village that he does not have homesteaded, so the taxes are scary. He commented that is his choice; he could sell the property, rent it, so that is a business decision for him. His insurance is going to triple on the properties. He mentioned Council has tried to work this out, they have had 3 workshops; they have created a public works department, and saved on some of the outside contracts approximately $40,000-$45,000. He stated it is true that Council looked at the employee salaries, and all of them have been reviewed except police, and what Council saw when they looked at the budget hearings was they were paying money in overtime because there was not enough staff. He commented by putting a person on it may save on the overtime. He indicated another problem they discovered is that the Village needed to retain the good employees they have, and needed to hire people. He stated Council is trying to get the employees in the 50% area to be competitive in the mazket place. He indicated it cost the Village about $65,000 with all the perks included. Mayor Humpage stated the reason the Village has had this windfall is because property values have gone up, and therefore the assessed value has gone up, although the Mil rate is the same, the taxes become higher. The Village gets about 28% and the County gets the rest. He felt to readjust at this time would be very difficult, because the budgets needed to be complete by the end of the month. He stated the budget would have to be redone, and they should have thought about that 3 months ago. He agreed with Vice Mayor Paterno and Council Member Genco, noting that if the Village continues to escalate the operational numbers; what you do not want is when the numbers intersect and you are top heavy. He noted the Village has in all honestly attempted to pay as they go, and maybe that is not want the residents want. He commented he has talked to some people that say fix the bridge, and do it with bonds and spread them out for 20 years. Mayor Humpage stated if that is what the residents want, they should tell Council. Mayor Humpage stated the cost of salaries uses the CPI, and the COLA, and they try not to exceed 7%. He mentioned Council has diligently tried Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 8 to keep the costs down, now they are at the 11 ~` hour; so if Council wants to lower the taxes someone needs to say this is not what we are going to do; we are not going to spend this million dollazs, otherwise they need to pass the budget. He stated he thinks Council and Staff have worked very hazd and they have tried to cut things from the budget and still be fair. He felt there should have been more input from the residents when they had the budget workshops. He stressed there would be a good possibility next year they can lower the millage rate. He stated you get what you pay for and if you want the taxes to go down, tell Council what they do not want. Council Member Watkins asked if the Mayor would address the Reserves. Mayor Humpage stated the Village has 24% in Reserves, which is about $3 million dollars. Council Member Watkins stated in her opinion when the Village gets to the point where they are holding back more than 24% in reserves, that is the money they owe the taxpayers, this is a not for profit organization. Council Member Genco pointed out it is not the money; it is the concept. If you have a million dollazs put away to cover a hurricane, and they have $2.6 million in reserves, that leaves $1.6 million to handle emergencies, plus you need float money. If you are getting reimbursed from FEMA you may not get it back for 10 months, plus the employees want to get paid, and if the Village can not do operations; the money does not go that far. That is the whole concept of having reserves. Mayor Humpage stated Council tried to come up with a level, which initially between 20%-25%, and the Village is at 24%. Vice Mayor Paterno noted Council did agree with those numbers, but they had to agree to comprise because some people only wanted 10%, 15% or 18%, so there had to be a comprise and fortunately they got it up. Vice Mayor Paterno stated besides the reserves, this yeaz they are doing $247,360 in Capital Improvements, so next year it is going to cost at a minimum another $500,000. He stated it is going to go up another 7% next year. He commented what is going to end up happening is the Village will not have any Capital Projects to be able to get done next yeaz, unless they take it out of cash, which would reduce the reserves for that rainy day. He stated Council Member Genco is correct; there is a problem with this. He felt Council needed to do something about it now. Mayor Humpage stated Council needed to know what they are going do, what they aze going to cut. Vice Mayor Paterno stated he is open to suggestions. Vice Mayor Paterno stated Council all agrees that if they do not do something there will be a problem next yeaz. Mayor Humpage stated they have a balanced budget, and a tax rate that is remaining the same. T'he windfall is from the property value escalation. Now next year property values are probably not going to drop, so in this year, as far as he knows the Village has completed the Capital projects, other than fixing the Tequesta Drive Bridge. Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 9 Vice Mayor Paterno stated if anything goes wrong this yeaz, the only thing Council can cut is the $347,000 in capital projects. Village Manager Couzzo pointed out the $152,000 in #301 that is a contingency fund to use at Council's discretion in the event there was an emergency, and $50,000 in Civil Prepazation. Vice Mayor Paterno asked what about the Bridge; he thought the idea was to put $300,000-$400,000 per year away for 5 yeazs in order to get the money together. Mayor Humpage agreed and commented hopefully the money for contingency and Civil Preparation is not spent, and that money is put in with the other monies. Village Manager noted that could be done, or they could blend the two and dedicate it towazds the bridge. Council Member Genco stated the bottom line is that the Village needs to start setting aside money towards Capital, Infrastructure, and Maintenance Improvement and Replacement so that can not be touched. That becomes part of the "Reserves", because you know you are going to have to spend it either this yeaz, next year or the yeaz after. She felt that was the reason the Village needed to have more money in reserves than they currently do. She noted if you look at a 10 yeaz period, the Village is going to have to replace "x" number of miles of roads, paint some buildings, replace some roofs, and do other things that are going to cost money, and that is all part of the reserves that need to be set aside. She felt Council had agreed in principal at the last budget workshop to start setting this up. She stated she did not know what Council could look at on this budget to start cutting; she felt they were stuck with it. She commented what Council needs to do is get a philosophy on what they want to have for cash in the bank to handle driveways, and roofs, etc, so that the money is there, and the kind of level of services they want to have for the residents. She stressed Council needs feedback from the residents on this. Council Member Watkins indicated Council has had opportunities before to discuss this, and she did not understand why this had to wait to the 11`" hour. She commented either Council was going to pass it or change it. Council Member Genco noted she did not see too much that they could cut out. She commented the real concept comes with how much money do we have to start saving and not spending. She stressed having cash in the bank, does not mean they can afford to hire another employee. Village Manager Couzzo suggested one of the ways to do that is in the first quarter of the next fiscal year; Council meets with the administration and Staff and develops the philosophies and the plans that Council is alluding to. Council Member Genco commented she has been asking for it for 4 yeazs, and so far has not been able to sell it to Council. Vice Mayor Paterno stated Council will need to go back to the Millage rate, and they will have to do something by the end of the month so it does not have to be this evening. He felt this could be addressed before the budget takes effect, since none of these things start until October 1. Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 10 Village Manager Couzzo stated the budget could be changed anytime after it is adopted. Council Member Genco clarified the money in the expenditure accounts could always be moved and changed, meaning the Village ends up with more cash in the bank. Vice Mayor Paterno commented he brought up this about lowering the millage rate, but it could not happen with the proposed budget as it is, unless they are going to spend cash out of the bank. He indicated he is inclined to pass the millage as is, to keep it where it is at this point, as long as Council comes up with a percentage to take out of the budget to put into cash. Mayor Humpage clarified to put in the reserves. He questioned whether Vice Mayor Paterno wanted to be above 24%. Council Member Watkins stated Council could not do that this evening. Mayor Humpage stated it could be done anytime. Village Manager Couzzo pointed out Council will have time in the first quarter. Council Member Genco stated she would like Council to start looking at these things, such as the FEC Railroad every 6 yeazs, so for every 6 yeazs the Village should set aside 1/6th of $150,000. She pointed out certain buildings aze going to need painting every few years, miles of pavement aze needed and money should be set aside for these items. She stated that is what the cash is in the bank for, not only hurricanes, but routine maintenance. She explained the Village also has to manage the employees, employee benefits, and the daily operations. She felt Council has to adopt this budget, and they would not be able to roll it back. Vice Mayor Paterno asked if Council wanted to shave 5% off the top. Council Member Genco stated Council needs to adopt a philosophy, and start taking a look at what money they have for Capital projects and the infrastructure they maintain, an get a listing for future years. Council Member Watkins noted Council did receive a sheet for Capital projects for the next five years. Council Member Genco stated Capital projects are special projects. Mayor Humpage asked if Council Member Genco as talking about preventive maintenance. Council Member Genco agreed, and mentioned the well drilling and some of the Capital projects were included, but what failed to be addressed were the day-to-day operations. She pointed out for example Tequesta Pazk, the lights cost over $100,000, so maybe every 10 years the replacement should be budgeted. Council Member Watkins stated the lights were damaged in the hurricanes. Mayor Humpage noted the lights will still need maintenance in a few yeazs. He noted for the residents if the Village has $3 million dollars in the bank, which represent 24%; he asked where does the Village stop putting money in the bank, at what level. Council Member Genco explained Staff does a 10-20 projection. Mayor Humpage noted if the Village has $10 million in the bank the residents would not be in favor of that. Council Member Watkins agreed. Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 11 Council Member Genco felt it was not a question of the money, it is a question of how it is allocated, and what you are saving it for. Council Member Watkins noted the Department Directors know what they need, and allocate for these type of matters. Council Member Genco stated they deal with these things on an annual basis, and it is not built into their budget for reserves. Mayor Humpage stated the Village does not need all this money in the bank, and asked what is the magic number. Council Member Genco felt staff needed to come up with a worksheet that lists these types of matters, and if that number is $3 million dollars to maintain the infrastructure, then that is what Council needs in the bank. Mayor Humpage asked where do they get that number. Council Member Genco stated the Village needed to work up that number. Vice Mayor Paterno indicated the citizens he has spoken with do not have a problem with Capital improvements to make the community better. To see the money spent in the next year, and have no money left for improvements, and things start to deteriorate because of no money it gets irritating. He suggested something needed to be done about it, and come up with a number, take a percent off the top of the budget, and say this is what we need to find, and save it. Council Member Genco felt the numbers needed to be done first, and they could not do that this evening. Vice Mayor Paterno suggested Finance could do it in a week or two, before finalizing the budget. Council Member Genco noted Council was going to pass the millage rate this evening, which means that is the revenues the Village is going to be getting. She commented the little things that need to be done; she will look to the other Council Members to endorse. Mayor Humpage commented the Council started putting away at 15%, then 20%, and now they are at 24%. Mayor Humpage stated the Village has $2.6 million in the bank, and $1 million in the Reserves for a hurricane. Council Member Genco pointed out that is the operating budget. She asked the Finance Director the total amount of cash that would be available based on the projections. Ms. JoAnn Forsythe, Director of Finance stated $2.9 million in the General Fund. Council Member Genco noted $2.9 million including the humcane fund. Vice Mayor Paterno pointed out if the budget goes through as is, there is no room for any additional appropriations. Mayor Humpage stated he did not think anyone disagrees with that. Council Member Genco noted if you leave the hurricane fund at $1 million, which may be needed in case there are back to back hurricanes, that only leaves $1.9 million, which would be only 16% to carry or float to cover administration and operations. She stated that is not a lot. Council Member Watkins stated if the Village goes back to the audit, Mr. Chiocca told Council they have very healthy reserves for our municipality, and the size of Tequesta. Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 12 Council Member Genco stated Mr. Chiocca got on the phone and said 5% was sufficient for Reserves. She mentioned she asked other members of the Florida League of Cities, and other Finance Officers what they thought, they would not agree with him. Mayor Humpage commented he felt the Village reserves were fine, but if they wanted to increase them that was fine. Council Member Watkins agreed with the Mayor, and stated she would like to hear from the residents to see if they felt the Village should hold more than 24% in Reserves, to 30%, 40% or 50% in reserves, rather than lower the millage rate. Council Member Genco stated she did not think it was a question of lowering the millage; she felt it was a question of whether the Village has the money to meet routine expenses that they can expect to incur over the next 5-10 years. Mayor Humpage stated Council could change the budget at anytime, and on September 28~', Council could take 3% or 5% off. He felt no one has an issue with that. He stated does Council say this is not a good budget this evening, he does not think so. He noted Council needs to do the business in front of them this evening. Vice Mayor Paterno pointed out, like Mr. Capretta said, the lines are going to cross, so what is going to happen is the Village is going to start spending the cash down. Mayor Humpage explained there is another alternative; he stated they would spend the cash down because they are a pay as you go group. He stated if they want to do these big capital projects, but do not want this big capital outlay of money, then you have to float bonds, and have a debt service. Vice Mayor Paterno explained after next year there will be no money to do any Capital, because the expenses between personnel and operating are going to go above the revenue potentially at the end of next year; and what is going end up happening, just to run the Village, Council is going to have to take cash out of the bank in 2008, if they adopt 2007 budget. Council Member Genco asked for a point of order. She felt they were all in agreement that the Millage rate is something they are going to have to adopt, so Council can go forward. Mayor Humpage announced the Public Hearing is closed. MOTION: Council Member Watkins moved to close the public hearing; seconded by Vice Mayor Paterno; motion passed 4-0. Attorney Hawkins indicated Council needed to adopt the Millage rate first. MOTION: Council Member Genco moved to approve First Reading of Ordinance 609, with the provision that Council gets some additional information and they are going to have to look at what they are going to do to set aside funds for infrastructure. Mayor Humpage clarified Council was adopting Ordinance 609 on first reading, with the stipulation that they take another look at the overall Minutes -Public Hearings -Village Council Meeting 09/14/2006 Page 13 expense, if there is somewhere they can take money from the budget and move it to the Reserves, if possible; Council Member Genco commented then they can at least assess where they know how much it is, so they will know where they stand, Vice Mayor Paterno asked what the time table would be, and asked if it would be before October 1, 2006, as he suggested. Council Member Genco stated she did not think they would be able to do this before October 1. She suggested they do it before the end of the year (2006). She noted unfortunately they do not have enough data, and she felt it would take a lot of help from the employees and department heads to get this together. She stressed it is not going to happen in a week or two, because it probably will be a 6-8 week process, and plus some workshops, so maybe by the end of the year. Mayor Humpage asked if Council Member Genco wanted to add that in the motion- by January 1, 2007. Council Member Genco agreed to add to motion. Motion seconded by Council Member Watkins; motion passed 3-1, with Vice Mayor Paterno dissenting. MOTION: Vice Mayor Paterno moved to approve First Reading of Ordinance 608, with the Millage rate being set at 6.498% per $1, 000.00; seconded by Council Member Genco; motion passed 4-0. IV. ADJOURNMENT MOTION: Council Member Genco moved to adjourn the meeting; seconded by Vice Mayor Paterno; motion passed 4-0. Therefore the meeting was adjourned at 7:55 P.M. Gwen Carlisle Village Clerk s