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Home My WebLink AboutMinutes_Miscellaneous_05/07/1992_Finance & Administration Committee v v VILLAGE OF TEQUESTA �I Post Office Box 3273 • 357 Tequesta Drive e Tequesta, Florida 33469 -0273 • (407) 575 -6200 FAX: (407) 575 -6203 N y C 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 M A Y 7, 1 9 9 2 I. CALL TO ORDER AND ROLL CALL The Finance & Administration Committee of the Village Council held a Committee Meeting on Thursday, May 7, 1992 in the Village Hall, 357 Tequesta Drive, Tequesta, Florida. The meeting was called to order at 3:00 p.m. by Chairman Joseph N. Capretta. Finance & Administration Committee Co- Chairman Earl L. Collings was also in attendance. Staff members present were: Village Manager, Thomas G. Bradford; Tom Hall, Water Department, and Bill Kascavelis, Finance Director. Also in attendance was Fred Schaffer, Consulting Engineer for the Village. II. APPROVAL OF AGENDA Village Manager Bradford asked to add two items under ANY OTHER MATTERS. The Agenda was approved as amended. III. REVIEW OF 1991 VILLAGE TAXABLE VALUE PROJECTIONS FOR USE IN PREPARING THE FY 1992/93 BUDGET. Chairman Capretta asked for an update on the status of Revenue and Spending, year to date; whether any action needed to be taken regarding the Budget for year end; and requested a Revenue projection for 1993. To answer Chairman Capretta's question regarding how the Village stands this year, Bill Kascavelis referenced the May 1 memo, regarding the Projected Financial Position of General Fund at Close of Fiscal Year September 30, 1 92. General Fund: Everything is going according to plan - no major losses - revenues are coming in as projected. There was a shortfall of $30,500 under General Taxes (due to a reduction in property values), but that shortfall was made up in other areas. Finance and Administration Committee Meeting Minutes May 7, 1992 Page 2 -------------------------- Taxes: Because of the 1.56% reduction in tax values, Tequesta is losing approximately $30,500. Should the reduction be greater than 3% change, Tequesta would have the right to change the millage rate. If less than 3 %, the millage rate would remain as is. All property owners who are included in the millage rate, and suffered decreased property values went down, paid a decreased Fire /Rescue rate. The Village's Fire /Rescue did not decrease, since the Village has a Fire /Rescue contract. Therefore, the Village still paid Fire /Rescue rates based on the original tentative assessed value rather than the reduced value. Licenses and Permits: Revenues of $76,200 (year to date) - First half of the year Building Permits were up because of new construction, more than projected for the entire year. A $74,810 increase greater than anticipated. Intergovernmental Revenues: Only $3,000 less than estimated. Estimated: $361,470,000 Actual: $358,470,000. General Government Services: A slight increase: Budget $23,400.00 Actual: $24,025.00 Fines & Forfeitures: Down' $11,250.00 - Local Judges are meting out more time in school etc., keeping the monies in the County, and not routing those monies back to the municipalities. Interest Income, originally projected to be around $85,000. It is now realized interest income will be around $55,000. IV. REVIEW OF PROJECTED VILLAGE FINANCIAL POSITION AS OF SEPTEMBER 30, 1992. Revenue projection for 1993. On sales there was a 1.7% increase of sale price over assessed value on properties. If that trend continues, there would be a 16% increase in 1 93, which does not seem probable. The County Appraisers office does not see any significant increase or decrease in Tequesta for 1993, neither with personal properties nor commercial properties. Mr. Kascavelis stated that the best projection is "status quo ". Right now the Village is constant regarding the Budget. Finance and Administration Committee Meeting Minutes May 7, 1992 Page 3 V. REVIEW OF PENDING CAPITAL PROJECTS AND ASSOCIATED DEBT SERVICE OPTIONS. A forecast of the Capital Improvement Program, listing projects in Public Works, Public Safety and Recreation, was presented for the Committee's review. Country Club Drive Reconstruction: Estimated at $600,000 It is planned to pave the remainder of Country Club Drive next fiscal year. It has been discovered that the base and sub- base of Country Club Drive is substandard and does not meet current Florida DOT specifications. Because of this inferiority, many swales and dips exist in that roadway. A map showing Country Club Drive was displayed with overlays showing 1) dips in the road; 2) where drainage lines are; 3) where water lines are; and 4) where ENCON sewer lines are, to see if there is any correlation between the dips and all that work. Mr. Capretta pointed out that a heavier traffic load on the street could be very detrimental. The Committee felt that further analysis and thought should occur before financing or constructing Country Club Drive. Dover Ditch Improvements: Estimated at $156,800. The Finance and Administration Committee, in the past, had previously determined not to finance the improvements needed for Dover Ditch. Meanwhile, the Ditch has continued to deteriorate and lot by lot improvements have had to be made. The above amount would allow one side of the Ditch to be built up in order to stabilize the north bank. From there a staging area could be made in order to work in a more comprehensive manner on the south side of the Ditch. Mr. Bradford suggested that Dover Ditch and Country Club Drive projects be combined, refinance the Village's outstanding debt (1979 Bond Issue which has a balance of approximately $650,000) rolled over at today's lower interest rates. This could increase the millage rate, however, by .25 mills, Mr. Bradford noted. Tequesta Park Improvements: Estimated at $176,000. It was Village Manager Bradford's suggestion that the Tequesta Park & Lighting Improvements project be financed over five years, since there are no longer any recreation grants available. It was the Committee's suggestion to once again approach Martin County regarding their previous commitment to pay for the percentage of the park for which they are taking credit. Finance and Administration Committee Meeting Minutes May 7, 1992 Page 4 -------------------------- Mr. Kascavelis suggested, since the Village is concerned about the best financing technique to handle some of the above projects, that the Village capitalize on the Bond market by calling the outstanding ($650,000) Bonds (running through 2004 at 8.4 coupon rate) , re -issue a $1.2 Bond for 15 years, combining the outstanding debt with the Dover Ditch and Tequesta Park projects, with an additional debt service cost of $38,000 per year, or do a negotiated financing with a bank for a better rate, since banks get a tax -free advantage for municipal debt. The Committee concurred that that idea made economic sense, and to present the details of same upon the Finance Director's return from vacation. VI. ANY OTHER MATTERS o Update on Water System: Tom Hall reported that the storage reservoir is now on line and in use. Present day demand is high, with no rain in 15 days. The Committee suggested that a notice be placed in the Village Newsletter encouraging the reinstatement water conservation. Mr. Bradford explained that the First Reading of a new Ordinance will take place at the May 21 Village Council meeting placing a ban on sprinkling in the Tequesta Water service area, from 9:00 A.M. to 5:00 P.M. Mr. Bradford reported that on May 12, Village Staff will meet with Turtle Creek homeowners to negotiate land price for well sites. Phase II of the project will determine whether the water main will be re- routed to come out of the Girl Scout property or into Little Club, so an easement may not be needed from the Girl Scouts or Boy Scouts. If there is a Condemnation Hearing regarding the well sites, it will be approximately five months before the property is in the hands of the Village. o Tequesta Drive Bridge Repair: Mr. Bradford noted that the contractor (Seig & Sons, Deland, Florida) is working on the Bridge. $62,000 has been budgeted for this project. The contract amount for the work contemplated to be done is approximately $57,000. The structural engineer, Fred Schaffer, has reported that the extent of the damage is much greater than the inspection report had revealed. The additional repairs can be as much as $90,000 over the original contract price. Mr. Shaffer Finance and Administration Committee Meeting Minutes May 7, 1992 Page 5 -------------------------- presented a video taken of the areas in the bridge in need of repair. The Committee concurred there was no alternative; the work needed to be done, and recommended that the Village Manager go ahead with the repairs. VII. ADJOURNMENT There being no other matters before the Committee, the meeting was adjourned at 4:40 P.M. Respectfully submitted, Fran Bitters Recording Secretary Date Approved: ,. 2/ a- ATTEST: J ann Manganie o Village Clerk