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HomeMy WebLinkAboutDocumentation_Regular_Tab 04_09/14/2006 MINUTES VILLAGE OF TEQUESTA VILLAGE COUNCIL BUDGET WORKSHOP MEETING THURSDAY, AUGUST 31, 2006 I. CALL TO ORDER AND ROLL CAI.L The meeting was called to order by Mayor Jim Humpage at 5:06 P.M. A roll call was ta.ken by Recording Secretary Betty Laur. Present were: Mayor Jim Humpage, Vice Mayor Tam Paterno, Council Member Geraldine A. Genco, and Council Member Pat Watkins. Also in attendance were: Village Manager Michael R. Couzzo, Jr., Recording Secretary Betty Laur, Department Heads, and Finance Department Representative Michelle Gload. II. APPROVAL OF AGENDA MOTION: Council Member Watkins moved to approve the agenda, as submitted; seconded by Council Member Genco. Motion passed 4-�. III. CONTINUATION OF DISCUSSION ON FROPORSED BUDGET OF 2006-2007 Public Works Village Manager Couzzo commented as per the discussion at the first budget workshop, the structure had be�n modified and that was reflected in the changes proposed in tonight's workshop. Assistant Manager and Public Works Director Garlo advised that prior to the last proposal which was presented, he had met with of the owner of Rudd Landscaping and the awner of Terracon Services, and had driven the Village and analyzed what they did, so he knew their scope of work, how many peopie they used, and how long they said it took. Public Works Director Garlo commented he felt the proposal was a legitimate request for employees to do that seope of work. Tonight's proposal, which he had reviewed with the Village Manager, was more aggressive and challenging, since it only called for hiring one employee, plus bringing in one e�sting parks employee doing twice the work he was doing now. Public Works Director Garlo distributed cost sheets, and explained that the proposed total scape of work was to hire one additional Public Works employee, assume the additional work that would come on board next year, and eliminate a portion of the contracts, reducing the cost of the contraets by $115,000. The Village Manager noted this was an aggressive approach, with the existing employee being cross-utilized and required to increase his production. Council Member Watkins asked if this would take care of Constitution Park a1so. The Manager responded that in the Recreation budget, Mr. Corbitt had requested the part-time person be full-time, but this new proposal mainta.ined the sta.tus quo. Public Vt�orks Director Garlo advised they would work together on Constitution Park. Minutes - Village Council Budget Workshop Meeting 08/31/Ob Page 2 Vice Mayor Patemo noted the recreation budget had a capital expenditure for a lawn mower, and asked why it was needed if Public Works was going to cut the grass. The Village Manager responded that was a walk-behind lawn mower; at the moment the contractor was doing that, but whether that mower was purchased out of Recreatian ar Public Works, using that type of mower was appropriate for a more manicured look. Cou.ncil Member Genco asked if that was the $500 shown under sma11 tools in the recreation budget. There was also $5,000 shown. Discussion ensued. It was determined that in 664.600 in the old book on page 11 there was a mower for Construction Park, and the Vice Mayor asked why have another mower if Public Works was going to cut the grass. P�blic Works Director Garlo responded Publi� Works had a mower, but Mr. Corbitt wanted his own employee to have one. The Village Manager clarified that the $5,000 in the recreation budget was for office equipment, to get a cash register system, etc., and there was $6,004 which he believed to be for a mower. Public Works Director Garlo commented he thought it was safe to take that $6,000 out. Village Manager Couzzo advised he did not know exactly what it was for, but Mr. Garlo wo�tld take care of the parks with the park personnel and the equipment would be his responsibility. During the ensuing discussion, the Village Ivlanager commented he thaught the $6,000 was for a greens mower on the ba11 fields, but that was going to still be cut under contract, so it could be eliminated here. Council Member Genco commented the $5,000 could be adjusted when they reviewed the parks and recreation budget, and they were looking at a reduction of $115,000 in seven contracts and potentially an additional $94,000 in contracts when Public Works took those over. Assistant Manager Garlo advised that he would renew $94,000 of what currently existed. Village Manager Couzzo clarified that $115,000 was being eliminated and $94,000 renewed. Council Member Genco commented if one person was hired the Village would be ahead $115,000 less the cost of that persan, whose position would be a maintenance worker 2. The Village Manager advised in the new budget $29,200 base salary for that position was proposed, and Ms. Gload advised it was included in regular salary and wages. Council Member Genco commented that was showing a proposed total of $202,500; if she was looking at the actual from last year, thraugh August it was $131,000--by proposing to go to $202,500 that was roughly a$70,000 increase, which was obviously salary increases for existing people at 7.4% plus the one new person. Village Manager Couzzo advised the original budget was $166,200 for the past year. Council Member Genco pointed out it was $131,709 through August. Public Works Director Garlo explained that there had been a change in that not all of his salary was moved over, and he could not say that was what it cost this year, with Mr. Preston retiring and then taking over Public Works �imself, and confirmed that figure was only through August. Assistant Manager Garlo advised the estimated total for the end of the yeaz was $148,000 which was his salary, and that of Ernie and Wayne. Council Member Genco noted on page 3'7 under S 10 another person was shown under mosquito control. Village Manager Couzzo indicated nobody was there—that was parks, which was only Ron Smith, and the part time individual was Ken, who worked at Constitution Pazk. Council Member Genco commented she was just �g to put together the salary for Public V�Torks. Mr. Garlo advised that Ron Smith's salary was still in parks but his duties were under Public Works. Council Member Genco expressed her opinion that whoever he reported to should be responsible for his salary costs. Mayor Humpage comrnented, decrease the parks budget and increase public works budget. 2 Minutes - Village Council Budget Workshop Meeting 08/31/06 Page 3 Council Member Watkins questioned the change of $52,400 shown in the new book on page 2, under Public Works adjustments. Ms. Gload responded that had been the other two proposed positions that were eliminated. Village Manager Couzzo clarified the amount would be $202,500 plus $53,010, with one new person and three existing employees, and moving Ron Smith to be under the Public Works budget. Council Member Genco indicated there Would be a Public Works Director and a crew leader, a custodian, and two maintenance worker 2 positions. Public Works Director Garlo advised in order to do this they could not be called custodians, they would be maintenance workers, working both inside and outside. Council Member Genco concluded that for a total of $255,000 there would be five people, and everything associated with Ron Smith, including $700 in overtime, would be moved from the pazks budget to the public works budget. Council Member Watkins asked Public Works Director Garlo, if in saving $115,000 on the contract side, one $29,000 worker would do that work. Pubiic Works Director Garlo responded that was what was proposed, and it could only work with Y11e right people. It wauld only work because the person had been in Tequesta Park for 20+ years and the Village was going to get anather $25,000 in work from him, and he would be held to task. This had been discussed with the Manager, and the Public Works crew would do the best that they could to accomplish the work. Village Manager Couzzo advised they had looked at every facility, every schedule, and every need, and had reduced it down to man hours. There would be rotation, and in the summer when the grass was growing, it would be tighter, but they would do their best. Council Member Genco commented that hopefully when it came time to renew the $100,000 and $200,000 contracts on Country Club Drive and some of the ofiher areas, that would be the time to decide whether to hire another employee. Mayor Humpage expressed his opinion this would help the Council. Public Works Directox Garlo explained that he believed the other thing that would make this work was Russell White and the fact that he would work with Public Works—if he needed nelp he could use Public Works employees and if Mr. Garlo needed help he could use Mr. White's people, and as a team it could be accomplished. Council Member Genco commented a lot of the equipment Mr. Whit� had been purchasing seemed to be the type that could fa11 under Public Works, and she could see both Water and Public Works using it, so she did nat really see it as belonging to either department. Public Works Director Garlo clarified that for budgeting purposes, the equipment Mr. White was �etting was purchased in Utilities. Council Member Genco commented she felt the Village was losing efficiency, and that the equipment should all be maintained by a centrai source and the departrnent that needed it could check it out of a central source, but only one department should manage the budget for the equipment. Public Works Director Gazlo commented he and Mr. White were implementing that, the direction they were going was that would be Public Services, where they were each using the equipment, doing maintenance schedules jointly, etc., and it was much more of a collaborative effort than in the past. Council Member Genco commented because of Mr. Gazlo's administrahve skills, he could coordinate it, and she would lilee to lean toward restructuring in that way. Council Member Watkins commented that from a budget standpoint, all the equipment belonged to the Village, so if there could be a cooperative way of using it that was obviously the way to do it, and not purchase the same equipment for every departrnent. Council Member Genco commented that only one utility had to be segregated, which was Stormwater, and if the Water Department purchased something it had to be 3 Minutes - Village Council Budget Workshop Meeting 08/31/06 Page 4 segregated also because it was an enterprise fund; but when you were looking at maintenance and operational budgets, from her experience there was usually a little fudge factor, and if there were fudge factors in two departments, she would rather have somebody that was responsible for a11 the machinery manage the whole thing sa the Council could really see what the total cost on a bottom line number was for maintaining t11e equipment. If she had to go through the budget right now to see how much it was costing to maintain a11 the equipment it would probably take her three or four hours. Mayor Humpage asked how that could be done with Water being an enterprise fund. Council Member C3enco responded, if you were maintaining equipment that belonged to another depariment, the cost of that rnaintenanee would be charged to that department. Mayor Humpage gave an example that if Mr. White's backhoe broke dovcm and Public Works repaired it, then Public Works needed to back chazge that cost to Water. Public Works Director Garlo commented Mr. White had been territorial in the past, but now it was more o£ a Public Services operation and they were working together. Council Member Genco commented a deparhnent was being developed that was basicaliy under Mr. Garlo's responsibility, and she did not want to develop it halfway—she wanted to develop it completely, and she saw that as just the normal course of developin$ that department. Mayor Humpage asked what Ron Smith's take was on what he would have to do, to which Public Works Director Garlo responded Mr. Smith was on board and he had really stepped up. Vice Mayor Paterno commented there should not be classes of one and two for maintenance workers—originally the distinction was maintenance worker 1 would not have a driver's license; maintenance worker 2 would be required to have a license. The Vice Mayor felt a11 maintenance workers should have driver's licenses. Public Works Director Garlo responded a11 of them would have licenses. Council Member Watkins expressed her opuuon that the Village hacl done an adequa.te job of getting equipment, and she thought it was good the departrr�ents were working together to be as efficient as possible. Council Member Watkins asked Public Works Director Garlo to keep the Council informed how this was going. Mr. Garlo responded, just drive around town and they would see. Council Member Genco commented this would save money, and the Village needed to sa.ve money, and received ct>nfirmation that $115,434 had been removed from other budgets, and that was a plus for the general fund. Vice Mayor Paterno asked, what about the reel mower, to which Public Works Director Garlo responded the budget reflected main#aining Sheehan Turf just to do the ba11 fields, which was in the parks budget. $8,000 for the reel mower had been taken out of the Public Works budget. Leisure Services Village Manager Couzzo advised this budget proposed making Ken fu11 time, but he would continue as part time at Consritution Park. It was noted $53,000 was coming out. The budget contained $3,OQ0 for grants which was for RMPK, a grant-writing company which did the FERDAC grants. Councii Member Genco asked if the Village would be provided with their own water at cost, to wbich the Village Manager responded, no, the Village used the same rates as everyone else because the Utility was an enterprise. Council Member Genco ask�d what the $101,000 was in general maintenance, to which Village Manager Couzzo responded it was the other contracts for landscaping, all the general maintenance of the parks, and turf maintenance for the ba11 fields. It was pointed out that was $30,000, whieh left $71,000 unaccounted for. 4 Minutes - Village Council Budget Workshop Meeting 08/31/06 Page 5 Council Member Watkins expressed concern with the diff'iculty of understanding this budget without Mr. Corbitt present. $113,000 was determined to be for lights. Questions arose as to whether the $101,000 might be the amount to put into the park as capital improvements. Council Member Watkins asked if Mr. Corbitt could be reached by phone. Council Member Genco commented she did not see Tequesta. Pazk maintenance, so could not figure out what the $101,000 was for. Village Manager Couzzo commented he did not have the detail on that, but he thought it included $30,000 in ball field maintenance, plus landscaping, etc., and he would provide the Council with a detail on that. Mayor Humpage asked if that was fitness trail improvements. Mr. Couzzo responded that was capital, and Council Member Genco stated then that could be cut back. Council Member Watkins commented she did not see how that could be done without Mr. Corbitt present, because it might be legitimat�—the Council just didn't know what it was. T'he Vice Mayor pointed out $78,700 in the old book had been increased—it went up by approximately $23,000. Village Manager Couzzo commented he thought it was because Sheehan Turf was taken out when they were doing maintenance so now it had to go back. Vice Mayor Paterno asked what $78,700 was for; the Village Manager responded he did not have that detail. Council Member Genco commented the Council could not approve an appropriation of $101,000 without knowing what amounts were for. Council Member Genco asked how many people Mr. Corbitt was asking for in Leisure Services. The Village Manager responded there was only a part-time person working at Constitution Park; in Recreation Programming there was Mr. Corbitt plus a Recreation Specialist. The $20,000 in the new boak an page 40 was for debt service. Ms. Gload expla.ined that was the three vehicles discussed at the last meeting—an ambulance, one police vehicle and one vehicle for Community Development, and they had just been placed there temporarily because Finance did not know if they would be approved and did not want to open new accounts for each one at this point. The Vice Mayor commented with the new book and the old book, going back and forth was very confusing. Council Member Genco commented there were 2-1/2 people in parks and recre�tion. Village Manager Couzzo confirmed there were 3 2-1/2 on the recreation side and i/2 in parks. Cauncil Member Genco commented right now the Council did not know if the budget was going to be $276,040 or $300,000+ with the $101,000 item being up in the air. Council Member Genco asked if the Council could come back to this. The Village Manager responded, yes, that they could make adjustments at the public hearing. Council Member Watkins commented she was sure it was justified, she just didn't know wha.t it was, and it would not be fa.ir to Mr. Corbitt to make changes when they didn't know what it was. Vice Mayor Paterno commented he had a question regarding revenue, and he had checked with 3upiter to see what they chazged residents versus non-residents. He had found that most of the time they charged 25% more to non-residents. The Vice Mayor stated he would like a 25% premiuxn as a minimum in the Water Depariment and for Recreation, and have that the same in all departments if they had services. Council Member Genco and Mayor Humpage expressed their agreement. Village Manager Couzzo advised the revenue projections would be adjusted accordingly. 5 Minutes - Village Council Budget Workshop Meeting 08/31/06 Page 6 Vice Mayor Paterno commented he was curious about a contract for cleaning services, to which Village Manager Couzzo responded the recreation building would now be maintained by Village personnel. Public Works Director Garlo advised Mr. Corbitt had used a commercial cleaning service possibly about once a month. Vice Mayor Paterna asked what that amount was, because it could be backed out. Village Manager Couzzo advised staffwould provide that detail. Vice Mayor Paterno commented in other capital the $5,000 for a cash register system seemed high, and suggested since everyone would be moving into the new building that Finance collect everything. Village Manager Couzzo explained that the software used by Finance was not able to handle that it had not yet been developed. T'he Vice Mayar commented $5,000 seemed expensive for a cash register. Ms. Gload commented there was a lot more to that the department heads had the details on those types of items. Vice Mayor Paterno commented if a cash register system was used, a part time employee might be cut since they would not have to collect money. Council Member Watkins noted the Council needed to talk with Mr. Corbitt. Councit Member Watkins commented paying should be comfortable for the residents—they should not have to come to the Recreation building to register and then go to Village Hall to pay. Mayor Humpage commented during summer camp, Finance would go crazy. Council Member Genco noted that Jupiter did not accept cash—only checks or credit cards. Vice Mayor Paterno commented that way there would not have to be an audit of cash, which might save a little money. Council Member Watkins commented they were not talking about an exorbitant number of people, and in the interest of time although she understood the concerns, she thought they were forced to wait for Mr. Corbitt to get explanations. Council Member Genco commented if you were not taking cash you did not need a cash register—the only thing needed would be a receipt book and if taking credit cards, get the equipment for that; otherwise a check would be received and the customer would be given a receipt, and a copy of the receipt and the check would go to Finance, so why would a cash register be needed. Ms Gload commented she believed thee was more to it than that. Council Member Watkins recommended waiting on this item. Mayor Humpage commented at functions at the park when selling hot dogs, popcorn, etc. they would still need to be able to take cash. Mayor Humpage suggested chazging 25% for cash. During ensuing discussion the Village Manager advised the kids came to the pazk with cash to purchase things at a nominal fee, such as t-shirts; and a cash register probably was not necessary, but auditors preferred to see a ta.pe and it was easier to be accountable. Vice Mayor Paterno commented it was a very costly proposition for the Village to have someone collecting cash and reconciling, when they were really here for recreation and not to collect money, and kids could bring checks. Council Member Watkins suggested looking at the volume�—Jupiter was six times larger than Tequest�--�-and then the percentage that was actually in cash, before sa.ying no. If a kid wanted to buy a t-shirt she wanted him to be able to come buy a t-shirt and not be turned away because the Village was trying to enforce checks only. Village Manager Couzzo commented they could tell residents that October 1 of next year cash would no longer be accepted. Council Member Watkins requested that before any fu.rther discussion, to hear from Mr. Corbitt., and she wanted to know if he thought it was a hardship. Cauncil Member Genco commented this was wasting a lot of time. Mayor Humpage recommended leaving the balance of the recrearion budget until Mr. Corbitt was present. Remaining �udgets that needed review were Stormwater and Refuse and Recycling. 6 Minutes - Village Council Budget Workshop Meeting 0$/31/06 Page 7 Council Member Genco asked again about the $20,000 debt service in the new book on page 40. Ms. Gload repeated that was for an ambulance, a police vehicle, and a vehicle for Community Development—three different leases if approved; and those were not in the deparlment budgets because leases were considered debt service and Ms. Forsythe kept leases separate, so this was the only place it was budgeted. Discussion ensued. Ms. Gload explained outright purchases were in the department budgets, but leases were placed here. These were leased to own. Council Membex Genco asked why the Bank of America principal on the debt service for Public Safety increased. Ms. Gload explained principal always went up as debt was paid down. Council Member Genco noted allocations for principal and allocations for interest were done separately, and the interest was going down. Council Member Genco asked about the reserves contingency. Village Managsr Couzzo explained that was the general fund contingency, and what he had done was as savings were realized from Public Works and Parks and Recreation, he had placed those into different contingencies. The bulk had gone to other cantingencies shown as $425,000 in the new book on page 46. Council Member Genco asked if that was basically a cash for rainy daq fund; Mr. Couzzo responded that was for Council's discretion. Council Member Genco asked why we had it at all. Village Manager Couzzo responded it was the differential between revenue and expenditu�re—the way the budget worked now there was revenue exceeding expenditures. Council Member Genco commented the only reason revenue was exceeding expenditures was because they were apgropriating fund balance. Village Manager Couzzo stated this was revenue that was actually exceeding expenditures, and this was added for Council consideration to set up a designated reserve for the bridge replacement and if they were going to make any adjustments to salary and compensation. The $72,000 was basically the normal contingency for the past couple of years—if Council wanted to do something during the year they could use that contingency money as opposed to doing an appropriation from fund balance. Council Member Genco clarified with the Village Manager that whenever they saw an appropriation coming from 9fl2 that was actually from this contingency fund. Village Manager Couzzo explained those were interfund transfers, but the $425,000 and the $72,000 were at the moment undesignated. Mayor Humpage commented there was $497,000 in contingency which they could use for the bridge or salary adjustments. Council Member Genco stated she thought they were designating $350,000 for the bridge. Mayor Hurnpage advised they had not designated anything because they had been waiting for the study to see how much to put where. Village Manager Couzzo commented it would depend on a number of variables, what it was actually going to cost and ultimately what was going to be done, but Council could take out af the $425,000 whatever they wanted, to give them a start. Council Member Genco commented on page 46 there was $134,000 which she believed was the amount they had to pay for the railroad track. It was explained thaC was for the bridge embankments. Council Member Genco asked where the reserves were that were going to �be kept, for things like bridge improvement, road irnprovement, railroad, replacement of lights, etc. Village Manager Couzzo explained that was in 301 and 303 capital budgets, and no funds were designated for the bridge--a designated reserve needed to be set up for that. He did not know how Ms. Forsythe set that up but it would go into reserves from revenues. Mayor Humpage asked what it would cost to replace the other four spans of the bridge 5 years from now, to which Mr. Couzzo r�sponded it would cost $1.5 million in today's dollars. 7 Minutes - Village Council Budget Workshop Meeting 08/31l06 Page 8 Council Member Genco commented Ms. Forsythe had provided worksheets before the last workshop which had cash required to fund budgeted programs in the special revenue fund, and supposedly projected as of 9/30/2007 it would be $294,Q00; for capital improvement which was 301 it would be $103,000; for capital projects which was 303 it would be $211,000. Adding up the items, they would have roughly $600,000 put aside for some type of project, none of which included the bridge. Mayor Humpage commented they needed to take sorne of the contingency money and create a fund for the bridge, and contribute #o it annua.11y. Vice Mayor Paterno asked what $30,000 for park improvements was for—Ms. Gload responded it was for a fimess trail in Constitution Park. Vice Mayor Patemo asked, what was the $100,000? Mayor Hurnpage advised they should wait for Mr. Corbitt. Village Manager Couzzo clarified the $100,000 for Tequesta Park was landscaping and there was another $50,000 in Public Works for relocation of the railroad station. Vice Mayor Paterno asked if the Village had checked with FEC about putting the train station there, to which the Vill�ge Manager responded it could not be placed in the right-of-way by the tracks. Council Member Genco asked how a kiask could go there, to which Mayor Humpage responded the kioslc did not take up as much room since it did not require parking, and there were a number of other issues. Vice Mayor Paterno commented it could be placed it Tequesta. Park. Council Member Genco suggested working with Jupiter since they were looking to put it in for their train station. Mayor Humpage agreed that could be done. Council Member Genco commented she did not think the Village necessarily needed to keep the building but to ha.ve the building utilized. Mayor Hwnpage explained that Jupiter wanted to put it down by the beach. Village Manager Couzzo commented he thought what the Vice Mayor was suggesting was if the Village was not going to move the train station, there was $50,000 more in Mr. Garlo's budget. Vice Mayor Paterno agreed, commenting there might be $50,000 plus $53,000 in civil preparation which made $103,000. Village Manager Couzzo advised the $53,000 was not proposed in this budget, and there was $50,000 in miscellaneous charges and obligations for hurricane preparation. T"here was $1 million set aside if there was a hurricane that carne up quickly and deparhnents needed to get things, but the only way to get that out was to convene a special session of the Council to have them authorize maney coming out of that designated fiuid to be put into an operational fund. This put $50,000 in an operational fund, so things could happen more quickly, but if Council did not want to da that they didn't have to do it. Vice Mayor Paterno noted $50,004 was a lot of money to sit; probably only $5,000 would be used if it was needed. Village Manager Couzzo explained if the Village needed to rent equipment or needed other supplies or to pu11 in manpower, etc., they would need more than $5,000 but if Council didn't want that $50,000 in the budget they could just canvene an emergency session and appropriate the funds. Vice Mayor Paterno commented he was trying to �ine up a11 the money in different spots to see how much the total was and where it was. Council Member Genco commented now there was $610,000 for special capital improvements, plus another $600,004+ in this budget for contingencies. The Village Manager advised the $600,000+ was for Council's discretion, and was not attributed to anything. Council Member Genco commented if they looked at the budget this year roughly including what had been set aside in the liitle contingency pockets, they ended up with a fund balance of roughly $1.5 million plus the little contingency pockets, based on the worksheets using a cash fund balance at the beginning of the year of $2.4 million, and what would come out of it for this budget. Village Manager Couzzo commented at the end of next 8 Minutes - Village Council Budget Warkshop Meeting 08/31/06 Page 9 year it was projected to be $2.9 million. Vice Mayor Paterno clarified the $2.9 million did not count the $600,000. Council Member Genco expressed her opinion the $600,000 would be spent on something else or would be allocated. The Village Manager responded it did not have to be spent. Council Member Genco stated she understood that. Vice Mayor Paterno clarified that Council Member Genco was saying if it was in the budget as a contingency the chances were better that it might get spent. Village Manager Couzzo explained that the reason it was in the contingencies the way it was, was because the budget as presented was based on the needs staff saw and not saying this is all the revenue we have and let's appropriate all the expenditures and come out with zero—so the expenditures did not match up exactly with the revenue, and he was coming to Council saying you have $600,000, what do you want to do with it? Council Member Genco requested when this review was finished that she be able to go through the worksheet she and Ms. Forsythe had. spent Monday putting together. Vice Mayor Paterno advised his ta�ces, the real dollars and not the millage, as well as those of everyone else in the community, had gone up this time. The Vice Mayor recommended reducing the rnillage rate to 6.29% so that everybody with homestead would be paying what they paid this year. Council Member Genco commented one mil was roughly $120,000. Vice Mayor Paterno calculated that by reducing the millage to 6.29%, that would take about $]85,000 out of that $600,000. Council Members Genco and Watkins commented the Council couldn't do it. Council Member Genco commented they would be lucky if they did not have to increase the millage soon. Village Manager Couzzo reported the news got better, but maybe more complicated. The amount was $600,000+ because the budget as originally calculated showed health insurance at 14.8% increase and sta£f got it down to 7.6%, which was what was currently budgeted. He was proposing to the Council only 1.6 % increase in health insurance., stating the numbers presented were 6% higher than he was going to propose. Negotiations with the current provider led to this opportunity to provide similar services but change the co-pay in three areas—hospitalization, urgent care, and out patient. No increase at all could be realized if the co-pay were changed on doctar's visits and prescription medication; however, keeping the increase at 1.6% would keep the $5 chazge for prescriptions and $10 for the doctor's visits, and those were the two areas which people normaliy used. Council Member Genco commented that was incredible, and that after listening to this for seven yeaxs she felt the initial insurance projections were way off base, because she had heard the sa�me story for seven years. Village Manager Couzzo clarified it had only been the last couple of years, and indicated Jupiter's increase in health insurance premiums this year was 24%. Council Member Genco commented they had roughly 20 times the employees Tequesta had. The Vice Mayor explained it was all relative percentage wise, and whether it was Mr. Couzao or Mx. Gallagher who had been fighting to do this, he had done a phenomenal job. Council Member Genco noted there had been one increase of 10% or 11% fowr yeazs ago, and that was really the only increase of any significance. Mr. Couzzo reported the national market had been 15% a yeaz for the last three. Council Member Genco advised she was not knocking it, but just sa.ying maybe the original projections were too high. She sta.ted she was glad that the percentage came in low, and if the largest year increase had been 10%, why was 14% used. Village Manager Couzzo responded 14.8% increase was the number they had been told originally, and they got it down to 7.6%. They could still go with 7.6% which did not reflect changes in co-pay, but to get it down 6 more points, staff was proposing those adjustments in the 9 Minutes - Village Council Budget Workshop Meeting 08/31/06 Page 10 three areas of co-pay in order to have a slightly different policy than in past years. Council Member Genco asked the net cost to the Village to keep the policy as it is; Mr. Couzzo advised it would be 7.6% over last year's premium. Consensus of Council was to change the co-pay as described by the Village Manager in order to only have a 1.6% increase in health insurance premium. The dollar savings would be $38,000 to $40,000. Vice Mayor Paterno commented warkers compensation insurance premiums showed the Village's safety program was working. Village Manager Couzzo recommended changing dental providers to get an increased benefit and better program. The new provider would be Guardian and the savings would be $6,000 or $8,000. Council Member Genco commented the savings would increase the bottom line, and she would like to see money put away each year for the bridge. She would also like 10% a year to go into a designated contingency far the residents to get something back in infrastructure for their taaces. Revenues currently were at 7.9, and the target was barely being met. Vice Mayor Paterno commented he would either like more money in capital improvements or to cut taxes. Refuse & Rec c�l',m_g Village Mana.ger Couzzo reported this was the last year of the refuse and recycling contract, and there was enough money to cover the cost. The Village Mana.ger reported he sensed the residents were happy with the collection program. He advised that when he and Vice Mayor Paterno ha.d been in Jacksonville they talked with Waste Mana.gement about the future, and were already in negotiations to try to extend the existing contract. The cost was now $8 per household and Waste Management was talking about going to $1 S per household. The goal was to hopefully jump in front of some other folks and negotiate a better rate. The Village Manager advised they were interested in traversing the bridge. There were no changes at this point in Refuse and Recycling, and sta.ff would be bringing a proposed contract to Council very shortly. Stormwater Village Manager Couzzo announced the big stormwater project for next year was South Cypress, and it would almost deplete the reserves. Council Member Genco commented when Bridge Road was improved, the individual property owners had to pay for the curbing, gutters, landscaping, etc., and on Cypress the Village was paying for everything except the landscaping. A lot of people ha.d to borrow significant amounts of money to pay their part for Bridge Road. Council Member Genco asked why the Village was paying for Cypress. Village Manager Couzzo advised he could not respond without researching this, but because there was a stormwater utility enterprise and the Village collected stormwater utiiity funds throughout the Village, that was the purpose. Mayor Humpage explained the difference in the two projects the Bridge Road project was complying with landscape ordinance 377 and had nothing to do with stormwat�r; on Cypress the street had to be excavated to get the stormwater drains in. The owners on Cypress had to also comply with landscape ordinance 377, and each had already paid 10 Minutes - Village Council Budget Workshop Meeting 08/31/06 Page 11 $7,500 for their portion. The difference between the two projects was storrnwater as opposed to just ordinance 377 beautification. Council Member Genco requested the swale on her street be installed that was promised to her seven years ago. Village Manager Couzzo responded he would look into that. Mayor Humpage confirmed with the Village Manager that he would get back to Council in the next couple of weeks or possibly at the September meeting with a waste management proposal. Mayor Humpage noted they couldn't get across the bridge, which had tripled their fuel costs, and they wanted to be able to go over the bridge. Vice Mayor Paterno requested to approach them without the bridge first. Council Member Genco commented she would hate to see stormwater go up, to which the Village Manager responded he was not sure it had to go up, and expressed his opinion he would rather see it go away and that be a part of Public Works. Village Manager Couzzo advised he would provide detail in a few days with a breakdown of the $103,000 discussed earlier in the meeting. Council Member Genco reviewed the spreadsheet she and Ms. Forsythe had worked on, and advised she had been concerned about revenues versus operations and personnel costs. She was talking about routine costs to run the Village--lights, insurance, salaries, etc. The revenues included ad valorern ta�ces, franchise fees, and revenues from depa.rtments, and was shown at $300,000 higher than she was showing. One of the items Community Development had anticipated was $375,000 in fees from Atlantis and she had heazd from a good source that project was not going through in the coming year, so she had dropped it down. Total revenues were $7.9 million and operating expenses now were $8.2 million.. Council Member Genco stated some of the projected cash and fund balance might be for projects the Council did not support. Council Member Genco advised the numbers were in the front of the original book, less the $300,000. The Village Manager advised the $300,000 had not been changed yet. Cou.ncil Member Genco responded she knew it had not, and commented sometimes current money coming in which we do not actually have was counted. Council Member Genco advised tivs worksheet was only one fund since she had not had time to do this for the other funds, and this was the worksheet that told the Village where #hey were going. It only covered personnel, operating, and debt service charged off to the general fund. It was not a good picture because it showed spending down the cash. On gersannel, 7-1/2% increase every yeaz had been assumed; on operations 4% increase every yeaz had been assumed. Council Member Genco reported she had called other municipalities to see the percentages they used for their projections and her numbers were within %2°�o to 1% of that, so she believed hers were vaiid numbers, and Ms. Forsythe had agreed. The worksheet showed that unless the Village started to manage personnel and operating costs--in two years t�es would have to be raised. Vice Mayor Paterno cammented he needed to see what she was chazging back. Council Member Genco advised this was right out of the budget. The Vice Mayor indicated he wanted to see the revenue side. Council Member Watkins noted property tax was up 18% this year and she 11 Minutes - Village Council Budget Workshop Meeting 08/31/06 Page 12 thought 4% projection was too low. Discussion ensued. It was noted ad valorem taxes were 2/3 of the pie, and revenues were not always received on time. Vice Mayor Paterno commented the chart did not reflect true numbers since she was not counting on the department money. Council Member Genca responded it reflected tk�e absolutely guaranteed paycheck of the Village. Mayor Humpage reported he had reviewed the budget book and only found one transfer—the rest was revenue. Viee Mayor Paterno commented he understood backing out $300,000 or $400,OQ0 and he felt $9.8 million was more realistic. Mayor Humpage noted it was 7:00 p.m. and announced a break would be taken in order to start the scheduled Executive Session. At 9:05 p.m., Mayor Humpage reconvened the meeting. Village Manager Couzzo confirmed with the Council that they wanted to drop the $300,000 out. He advised that would come off the $425,000 and move the other numbers back. The Village Manager asked what they would like to do with the $50,000 for the train. Mayor Humpage recommended taking $50,000 from the train and moving it to the bridge. The Village Manager promised to provide the Council with a current run after changes were made. Council Member Genco reported she called every municipality adjacent to the ocean and they were using 39% to 50% for their reserves. She clarified she was looking at water&ont only. It was suggested to move $50,000 for the railroad; however, Mayor Huxnpage wanted it to sta.y. Vice Mayor Paterno asked for a minimum of $250,000 to go into the bridge contingency. Mayor Humpage asked to wait for the right numbers. Council Member Genco clarified that only summary sheets would be needed, except for detaii on pazks and recreation. The Village Manager advised he wauld send it to all the Council members and the discussion could be continued at the Village Council meeting. Mayor Humpage requested that when the pazks and recrea�tipn detail was received by everyone, to clear up some of their questions by conta.cting the Village Manager so that there would be less discussion at the Council meeting. IV. ADJOURNMENT MOTION: Council Member Genco made a motion to adjourn the meeting at 9: OS p. m. Councfl Member Watkins seconded the meetang, tivhich carried by unanimous 4-0 vote. Respectfully submitted, .�'� ��-�--� Be Laur �Y Recording SecretaYy 12