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HomeMy WebLinkAboutMinutes_Workshop_06/16/2011 MINUTES VILLAGE OF TEQUESTA WORKSHOP VILLAGE MANAGER'S CONFERENCE ROOM TUESDAY, JUNE 16, 2011 Call to Order and Roll Call The meeting was called to order by Mayor Tom Paterno at 8:32 a.m. A roll call was taken by Village Clerk Lori McWilliams. Present were: Mayor Tom Paterno, Vice Mayor Vince Arena, Council Member Abby Brennan, and Council Member Humpage, Council Member Calvin Turnquest. Also in attendance were: Village Manager Michael R. Couzzo, Jr., Village Clerk Lori McWilliams. Village Attorney White was absent. 1. Budget Planning and Strategy Session — Village Manager Couzzo Manager Couzzo offered a bleak report of world and local news but, noted how good Tequesta was economically. He suggested a three -year strategy be developed, then reviewed trending analysis graphs, which represented Tequesta's General Fund. He assured Council that the Village had done a good job maintaining their budget and reviewed revenues outlook and reserves, general fund revenues versus expenditures and budgeted versus actual; all of which were right on target. Manager Couzzo suggested that the graphs and expectations be discussed by Council. Manager Couzzo discussed the basic assumptions regarding the 2011/2012 budget and believed that would not increase the ad valorem; Council agreed. He pointed out the property values had been reduced 2.5% by the Property Appraiser and noted the impact of the reductions on the Village. Manager Couzzo assumed the current millage rate would remain the same to which Council agreed. Manager Couzzo stated the reserves would remain as they were, not tapping into the general fund reserves to balance the budget; Council agreed. He added there would be no reduction in the level of service to the residents. Mayor Paterno felt service should not be reduced but believed positions could be. Manager Couzzo responded there were no plans to cut programs, services or hours of operations. Mayor Paterno felt internal transfers could be made. Manager Couzzo explained the budget would be balanced this year due to the building department permit fees from the GMH and Chase Bank projects and, a onetime revenue from the capital improvement fund for the reimbursement of the Tequesta Drive Bridge project and Arcadis which would allow the Village to leave taxes unchanged. He noted the police and fire contained two thirds of the budget due to the type of services provided. He noted the two departments had been Minutes — Village Council Workshop 6/1611 Page 2 supplemented with volunteers and reservists, which helped keep down expenses, but questioned if the Village could sustain these types of programs. Manager Couzzo pointed out the pension funding requirements of the Village and the liability of the Fire Chief's potential (lump sum) pension payout of $740,000 (which represented 15% of the total public safety investment). He explained the way the funding had been originally set up, which allowed this type of accumulation. Mayor Paterno asked if the Village Council had to approve the payout. Manager Couzzo responded no, the Village was not the plan. Council Member Turnquest inquired if it would be acceptable for Council to let the board of trustees know they would prefer not to allow the large payout. Manager Couzzo stated he believed that would be acceptable. Mayor Paterno suggested that Manager Couzzo explain to the Pension Board the negative impact the large payment could have on the Village; however, he stated his understanding that the trustees first duty was to the plan. Council discussed sending a letter to the Pension Board asking them to consider deferring the vote on the Fire Chief's one time lump sum payout. Mayor Paterno pointed out that the Fire Chief would also receive, in his retirement, a separate $340 per month for health insurance. Manager Couzzo explained the increased benefit costs such as health insurance if the two Community Development part time employees were to go full -time. He noted the option of a third part time employee being hired and the difficulty in attracting good part-time employees. Manager Couzzo noted that the Special Events Coordinator position was not proposed within Parks & Recreation budget for the next year, but was proposed in the fire department budget (for a part time 30 hours week position). He discussed the allocation of approximately 30% of time for Chief Weinand and Joanne Burnsed to Community Development per standard government accounting practices and that basic operations remained unchanged. Manager Couzzo explained the capital side of the budget would include one new road patrol vehicle, replacement truck in public works and a bucket truck as a cost share between water, storm water and public works. Council Member Brennan inquired about fire truck replacement and Manager Couzzo stated one would be included in the budget next year. Council Member Humpage voiced concern with non - recurring revenues and pointed out three areas that he believed needed work and noted there were no funds in the budget for a new police chief. 1. He noted the Inspector General cost of $10,000 and questioned if the Village was bound to pay; Minutes — Village Council Workshop 6/1611 Page 3 2. He favored bringing on another part-time employee in Community Development and stated the reason the budget was balanced was due to the GMH permit fees, which would not reoccur, therefore, next year's budget for Community Development would be considerably less. He stated he did not support the two employees going full -time and discussed the benefits of part time employees. He commented on part time employees receiving 17 days off. 3. He discussed the Special Events Coordinator position moving from Parks and Recreation to Fire as unnecessary. Mayor Paterno and Council Member Arena agreed. Mayor Paterno suggested eliminating and additional $75,000 by going to one person in charge of police and fire. Council Member Humpage stated this was previously attempted and the residents did not approve. He felt this change would need to be taken to the citizens for their input. Mayor Paterno stated it was a simple concept and the Village did not need two people managing both departments. Council Member Humpage stated it was time to think about the future need to replace department heads due to pending retirements and the Village needed a transition plan. Manager Couzzo advised Council the current acting police chief, Rick Ricciardi, had requested to be transferred to the position of Captain, which would leave a void at the Chief level. He explained the Village would be short to pay for a new police chief, which was the same scenario as when McCollom left. He stated there were two police personnel who voiced interest in moving into the Chief position, thus ultimately saving the Village money; there were pros to considering this and potential disadvantages. Council Member Humpage reiterated the need to look for department heads to fill future retirements and the Manager explained how the transfer of an in -house employee to Police Chief would work. Manager Couzzo asked Council if conceptually they wanted to stay inside or look outside for a Chief. Council Member Humpage noted it would be more costly to go outside and the Manager agreed and believed now, when you look at all the returns, risks and costs, inside was the best way to go at this time. Council Member Humpage suggested forming a chain of command in the police department to assist with future transitions. Manager Couzzo stated the new Chief would need to determine the value of the Captain position. Council discussed the fire contract with Palm Beach County and future millage rates. Mayor Paterno voiced his concern with the ongoing overtime in the fire department and extras in the Village's budget that had added unnecessary cost. Minutes — Village Council Workshop 6/1611 Page 4 He also suggested the community be encouraged to work with the Village to improve impaired areas, which he felt would increase property values. Manager Couzzo referred to the budget graphs and noted that Council's decision not to raise taxes, were impart, affecting the imbalance. Mayor Paterno stated that Council's decision to not dip into the reserves had been a smart move for the Village's financial condition. Council discussed past projects, which affected the budget. Mayor Paterno stated revenues needed to be increased and, at some point, funds needed to be placed back into the capital fund. Manager Couzzo pointed out that 25% of the budget was depleted on capital and the Village now had those expenses behind them. Vice Mayor Arena suggested that all overtime be approved prior to time worked. Manager Couzzo responded that it would be difficult to monitor. He noted that $150,000 was spent in overtime on police and fire. Vice Mayor Arena asked if the Village was getting the best interest available on its revenues. Manager Couzzo responded yes, for the most part but rates were extremely low. Vice Mayor Arena suggested placing a limit on overtime of $50,000. Manager Couzzo and Council offered suggestions to rein back overtime expenses and agreed the Police Chief must get the overtime under control. He commented on the economies affect on rising expenses and lower revenues. Council Member Brennan stated that each department head had their own roles and were not accountable for others duties. Council Member Humpage voiced his concerns that the current short fall of over $600,000 was being made up by non - recurring revenues. He believed this was only postponing the shortage and, an additional three percent, which would bring next year's budget deficit to eight to nine hundred thousand. Council Member Humpage added that the fund balance would need to be utilized and if annexation were obtained that would generate much needed additional revenues. Manager Couzzo noted other projects in the pipeline that would, at some point generate revenues for the Village. Council Member Humpage stated that Council had been determined to avoid a reduction in the Village reserves but, now that sentiment would need to change. He suggested making appropriate announcements and pointed out the advantages of a .5 millage rate increase. Mayor Paterno voiced his opinion that there were plenty of choices, which could save the Village money. Council Member Turnquest voiced his concerns with existing staff and upcoming changes, which would affect the budget. Minutes — Village Council Workshop 6/1611 Page 5 Manager Couzzo reiterated the focus needed to be on annexation and an adjustment to the millage rate. He stated that care should be taken in not removing the enhancements of the area, whether it was parks and recreation or service, which he believed drew people to the Village. He suggested Council go to the County Commission and voice their concerns regarding the 25% increase in two years. Council Member Brennan responded that the Village could not continue to avoid raising Village taxes just to soften the blow of the County's actions. Mayor Paterno reiterated that he would like to act upon raising the property values too. Council Member Humpage felt that annexing the Jupiter Inlet Colony (JIC) would be beneficial to the Village and pointed out the counties agreement details (with Jupiter Inlet Colony) and noted the County received a fairly good amount of revenues from that agreement at present. He noted his conversations with JIC where he encouraged them to negotiate with the Village before their contract with the County ended in 2013. Manager Couzzo stated he would have a new refined budget to offer the Council and he planned to make the Chief change in the police department in July. He stated how important it was for the Village and Council to stay proactive and remain informed. ANY OTHER MATTERS None ADJOURNMENT MOTION Council Member Turnquest moved to adjourn the meeting at 8:32 a.m.; seconded by Council Member Brennan, motion carried unanimously 5 -0. Respectfully submitted, Lori McWilliams, MMC Village Clerk Note These summary minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio record is available from the Office of the Village Clerk. All referenced attachments are on file in the Village Clerk's office.