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HomeMy WebLinkAboutMinutes_Miscellaneous_04/16/1993_Finance & Administration Committee f VILLAGE OF TEQUESTA Post Office Box 3273 • 357 Tequesta Drive Tequesta, Florida 33469 -0273 • (407) 575 -6200 3 e Fax: (407) 575 -6203 It A 4 f7cN sous -, F I N A N C E A N D A D M I N I S T R A T I O N C O M M I T T E E M E E T I N G M I N U T E S A P R I L 1 6, 1 9 9 3 I. CALL TO ORDER AND ROLL CALL The Finance & Administration Committee of the Village Council held a Committee Meeting on Friday, April 16, 1993 in the Village Hall, 357 Tequesta Drive, Tequesta, Florida. The meeting was called to order at 8:40 A.M. by Chairman Earl L. Collings. Finance & Administration Committee Co- Chairman William E. Burckart arrived at 8:45 A.M. Staff members present were: Village Manager, Thomas G. Bradford; Village Clerk, Joann Manganiello, Finance Director, Bill Kascavelis, and Gary Preston, Director of Public Works. II. APPROVAL OF AGENDA The Agenda was approved as submitted. III. REVIEW OF VILLAGE FINANCING OPTIONS A) Review of Applicable Village Capital Projects /Equipment Needs Eligible for Financing and Associated Cost Estimates Items of discussion for financing were: GENERAL GOVERNMENT Fire Department - $1,285,000 TRANSPORTATION Dover Ditch; County Club Drive; Cypress Drive Streetscape; Seabrook Drainage; Tequesta Drive Sidewalks; Country Club Drive Sidewalks. $1,848,000 PARKS AND RECREATION Tequesta Park: $ 565,000 Constitution Park: $ 135,000 TOTAL $3,833,000 Recycled Paper Finance and Administration committee Meeting Minutes April 16, 1993 Page 2 -------------------------- Co- Chairman Burckart stated he had problems with spending $300,000 on Cypress Drive Streetscape. Village Manager Bradford explained it was possible to make it part of the Cypress Drive Drainage project or delete it now and consider paying cash later. Gary Preston stated that bike paths needed to be repaired since they are buckling in some areas, which could mean a liability for the Village if not repaired. Other pathways have drainage problems. Chairman Collings synopsized: 1) Parks & Recreation - $700,000, which he felt was a top priority item; 2) Transportation and Dover Ditch (which could be a fantastic liability) - $ 1,800,000; and 3) fire department - $1,300,000. The Bond Issue being considered would be $3,800,000, plus paying off the existing debt, totaling approximately $4.5M. B) Review of Finance Options - Bill Kascavelis explained that the cost of $4.5M would be an annual debt service of $411,000 (present debt service, $85,000 annually) , which is 1.26 mills. This would cause an approximate 1.1 millage addition to the ad valorem property tax. The impact on the taxpayer would be an additional $140 /year. The median home value in Tequesta is $152,000. Mr. Kascavelis pointed out to the Committee that now is the best time to consider funding a Bond Issue, with interest rates at an all time low. The Committee felt Requests for Proposals should be sought regarding the refunding. 1) General Obligation Bonds - are Bonds secured by a pledge of the full -faith and credit of the municipality. Interest rates are normally 10 basis points lower than Revenue Bonds. Issuance in the State of Florida requires a referendum vote. Debt Service costs are not included in the ten mill operating limits for Florida municipalities. 2) Revenue Bonds - are secured by a pledge of specific revenues and are usually preferred for financing governmental improvements and major equipment purchases which have a long- term life expectancy. 3) Lease - Purchase Agreement - most commercial banks provide this type of financing to governmental entities. There are usually no issuance costs or minimal origination fees; terms of lease are up to ten years; title to personal property is held by lessor until paid. Considerations for using Lease Purchase Agreements are primarily: repayment periods, and impact to operating budgets. Finance and Administration Committee Meeting Minutes April 16, 1993 Page 3 -------------------------- 4) Other financing would include a combination of the previous financing instruments. C) Review of Estimated Financial Impact to the Village from Various Financing Options. Chairman Collings felt the Parks & Recreation projects were obligatory; that the fire department costs have to show citizens the savings compared to Palm Beach County Fire /Rescue spending; Dover Ditch could be a major liability and should therefor be attended to; Country Club Drive would not have to be rebuilt. Village Manager Bradford pointed out that the Village could have a lower annual cost by buying fire department equipment with a 20 -year Bond than it would through a lease /purchase agreement. The substantial savings would be more than 50 %. D) Committee Direction Regarding Financing of Village Capital Projects /Equipment. It was the Committee's recommendation that the project list should be pared down to a minimum; showing the best and second best way of financing, showing net cost to taxpayers; also giving a projection of next year's operating millage rate; showing fire department projected operating cost regarding bonding versus financing proposed in the Tequesta Fire Rescue Report. The Cypress Drive Streetscape and possibly Seabrook Drainage projects will be removed from the project list; Tequesta Drive sidewalk project and Country Club Drive sidewalk project will possibly be done out of current capital improvement funds. Country Club Drive will possibly be patched or overlaid. Village Manager Bradford stated it would take approximately one week to calculate the alternatives. Mr. Bradford reported that the proposed temporary fire station could be operative for some time. To make that a permanent station would be $350,000 as opposed to $750,000. The Committee felt another site, other than Station 11, ought to be explored for a permanent fire station. Mr. Bradford reported he had received a letter from Lighthouse Gallery urging Tequesta to take the lead on securing a multi- purpose cultural facility for this area. The Committee felt that in Village funding /financing for this should be separate and apart from the other financing needs of the Village. Finance and Administration Committee Meeting Minutes April 16, 1993 Page 4 -------------------------- IV. ANY OTHER MATTERS. A) Bill Blischke, of Reese - Macon, reported on his findings for the alternative raw water main. Mr. Blischke reported that since the last meeting he has pursued rights -of -ways and easements to determine ways to get raw water mains across to where they need to go. The pipes under the Loxahatchee River are 12" as opposed to 8 To replace the 12" pipe, it would be necessary to parallel with a 10". Starting at Tequesta Drive, there appears to be an old road right -of -way available, but searches would have to be done to determine who now owns the property. As one progresses to Martin County, there exists several docks, leaving no room to physically get across the River. The only area feasibly available is in an area where there is an easement, dedicated strictly for drainage. If those easements could be converted, it's possible they could be used for a water main. There is, however, the difficulty of a preservation zone. That would still leave approximately 750 -1500 linear feet to go under the Loxahatchee River. Costs of that have not yet been determined. This route would not, however, eliminate the problems with Martin County or the Girl Scouts. Meetings have taken place with Martin County regarding the piece of road on Country Club Drive to be used for a pipe crossing. Martin County's position is they are not interested in giving Tequesta a permit, except if Tequesta does the entire job at one time - no piecework. Village Manager Bradford gave alternatives, if the Girl Scout route is not chosen: 1) condemnation to take land from Little Club to the north for an easement; or 2) go through the rights -of -way of Little Club. The Committee determined to recommend to the Village Council to take the route through the rights -of -way of the Little Club. Finance and Administration Committee Meeting Minutes April 16, 1993 Page 5 -------------------------- V. ADJOURNMENT There being no other matters before the Committee, the meeting was adjourned at 10:10 A.M. Respectfully ' submitted, • as � •' Fran Bitters ., Recording Secretary Date Approved: ATTEST: J ann Mangani to Village Clerk