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HomeMy WebLinkAboutMinutes_Workshop_07/06/1999• VILLAGE OF TEQUESTA Post Office Box 3273 250 Tequesta Drive Suite 300 Tequesta, Florida 33469-0273 (561) 575-620() Fax: (561) 575-6203 VILLAGE OF TEQUESTA VILLAGE COUNCIL WORKSHOP MEETING MINUTES JULY 6, 1999 • I. CALL TO ORDER AND ROLL CALL The Tequesta village Council held a workshop meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Tuesday, July 6, 1999. The meeting was called to order at 5:31 P.M. by Mayor Ron T. Mackail. A roll call was taken by Betty Laur, Recording Secretary. Councilmembers present were: Mayor Ron T. Mackail, Basil E. Dalack, Joseph N. Capretta, and Elizabeth A. Schauer. Also in attendance were: Village Manager Thomas G. Bradford and Department Heads. Vice Mayor Carl C. Hansen and village Clerk Joann Manganiello were absent from the meeting. II. APPROVAL OF AGENDA Councilmember Schauer made a motion to approve the Agenda as submitted. Councilmember Capretta seconded the motion. The vote on the motion was: Ron T. Mackail - for Basil E. Dalack - for Joseph N. Capretta - for Elizabeth A. Schauer - for The motion was therefore passed and adopted and the Agenda was approved as submitted. VILLAGE COUNCIL WORKSHOP • MEETING MINUTES JULY 6, 1999 PAGE 2 III. COMMUNICATIONS FROM CITIZENS (NON-AGENDA ITEMS) There were no communications from citizens. IV. REVIEW OF PROPOSED FY 1999-2000 BUDGETS A) General Fund B) improvement Sond Revenue Fund C) Capital Improvement Fund D) Capital Projects Fund E) Bond Construction Fund F) Pension Fund(s) G) Special Law Enforcement Trust Fund • Village Manager Bradford announced this was the first of two workshops held each year in July to review the proposed budget, in order to comply with the timetable set forth in the State of Florida TRIM (Truth in Millage) law, which required that a tentative rate be transmitted to the Property Appraisers office for mailout to residents in August. The village Manager reported this years budget was better than had been anticipated at this time last year, and a summary was provided in the handout document titled Annual Budget and Financial Plan. Village Manager Bradford reported property values only increased 3.695 this year, but forecast that a year from now a 6-8~ increase in property values would be realized because of current new construction. The 1-1/25k set aside in the General Fund the previous year was still reserved to help offset any future tax increases. Village Manager Bradford reported this budget had no tax increase, and total expenditures for all the funds totaled $14,495,581. The village Manager explained that this budget had been prepared keeping five important concepts in mind: (!) That the budget is a policy • document and must facilitate understanding and policy VILLAGE COUNCIL WORKSHOP • ~;ETING MINUTES JULY 6, 1999 PAGE 3 analysis by elected officials and the general public; (2) the level of service that the Village provides its residents and visitors should not be compromised; (3) the plan for routine replacement of major capital equipment must be maintained; (4) the long range plan for funding capital improvements must be updated; and (5) unappropriated fund balances should be maintained at sufficient levels. The Village Manager commented that the Annual Budget and Financial Plan was made up of eleven separate Funds which were reviewed in the budget document. General Fund Village Manager Bradford explained that the General Fund was the primary operating fund of the Village and was the • only fund which utilized ad valorem taxes as a revenue source. The proposed millage rate was 6.7305, which equaled the FY 99 rate of 6.7305, representing a 0~ millage rate increase and a 2.82 increase over the estimated rolled back rate of 6.5460. The total General Fund Budget, as measured by expenditures, was reported to have decreased by approximately 1~, a decrease of $54,592. Costs recommended to be increased were employees' salaries and wages, which had been increased 3.0~ across the board, and an average of approximately 2.5~ which had been provided to cover the cost of anticipated merit pay increases for those employees who had not yet reached the top of their applicable position pay scale. Factors affecting the General Fund were reported as: 1. Health insurance savings of $56,366 by virtue of the employees vote to switch to Florida Municipal Insurance Trust effective on May 1, 1999. The health insurance rate should not change again until October 1, 2000. • VILLAGE COUNCIL WORKSHOP • MEETING MINUTES JULY 6, 1999 PAGE 4 2. Major reductions in the cost of the Florida Retirement System passed by the Legislature which were the result of the high earnings in investments. For example, mandated employer contributions to the FRS for senior management personnel dropped from 24.8$ of salary to 12.13. 3. Based upon the Property Appraiser's Preliminary Certification issued July i, property values in the Village have risen 3.69 over the prior year. 4. Total non-ad valorem revenues, revenues from all other sources except property taxes, are projected to increase $8,378 or only .35~. The Village Manager reviewed pie charts in the budget • document for General Fund Revenues and Expenditures. Major revenue sources were utility and property taxes, and major expenditures were Police and Fire Rescue services. Key General Fund figures and comparisons to the previous fiscal year as shown in the budget document were reviewed. The Village Manager reviewed the following highlights of the General Fund: Undesignated Fund Balance is estimated to be $1,205,365 at the beginning of the fiscal year and $1,188,709 at the end of the fiscal year. This is a revenue source that funds the Village from October 1 to January 1 until property tax revenue is received, the funds to fall back on in emergencies, and is used for any unbudgeted expenditures approved by the Village Council. Undesignated Fund Balance is 23.5 of expenditures. Village Manager Bradford stated his goal was 25~ of expenditures. r~ U VILLAGE COUNCIL OPORKSHOP • MEETING MINUTES JULY 6, 1999 PAGE 5 Police Department expenditures are down 2.2g to $1,647,025. Fire-Rescue expenditures are up 1.3~ to $1,332,937. The net cost to Tequesta after deducting fire related non-ad valorem revenues of $285,308 which includes Jupiter Inlet Colony service contract revenue $155,498, is $1,047,629. The total expenditure budgets of all other Departments have decreased 1.6~k ($34,694) primarily due to the dramatic savings in retirement and insurance costs. General Fund contributions to the Capital Improvement Fund has increased to a proposed $143,500 for FY 2000, to accommodate capital improvement projects over the next year. An additional $19,000 in Parks and Recreation • impact fees are being transferred to the Capital Improvement Fund and will be reserved for the Seabrook Road South pathway project. An FY 2000 General Fund contribution from reserves to the Stormwater Utility in the amount of $16,656 is proposed in keeping with Village Council direction to subsidize the same in the early years. The Village Manager indicated further highlights could be found beginning on page one of the budget document and that each of the eleven funds had an analysis of revenues to be received and amounts to be spent. Village Manager Bradford explained that page two of the budget document contained a summary by category of revenues to be received and notes regarding sources of administrative management fees. Councilmember Capretta questioned how much of the taxable property values was attributable to new construction. Village Manager Bradford explained that the total increase was 3.69, of which 2.8$ was new construction. • Councilmember Capretta commented that property values did VILLAGE COUNCIL WORKSHOP • MEETING MINUTES JULY 6, 1999 PAGE 6 not go up much. Village Manager Bradford explained that the Save Our Homes law capped the rise of property values at the lesser of 3~ or the rate of inflation, which was approximately 1.8~, and on average it was less than that. Councilmember Capretta commented there would be a big problem when new construction came to an end. Village Manager Bradford explained that a letter from the Property Appraiser indicated the impact of Save Our Homes was $44 million dollars in extra tax value the Village would have had if that legislation had not passed. Mayor Mackail questioned the amount set aside for future tax increases. village Manager Bradford responded the exact number was $40,628 which had been placed in an Ad Valorem Rate Stabilization Account for next year. The Mayor questioned whether funds were available for Public Safety and a new Village Hall if it should be decided to • move forward with those projects, to which Village Manager Bradford responded the funds were available. Village Manager Bradford commented that the Village Council had also instructed him to accumulate money where possible for future projects, and that a year ago there had been a total of $212,000 set aside per year for debt service, which had now been raised to $262,856. The Village Manager explained that for every $1,000 accumulated for debt service $14,000 could be borrowed, and the $262,856 figure plus the current rent being paid for administrative facilities ($25,000 from the General Fund} made the Village very close (between $10,000 and $20,000 per year) to being able to do a new village Hall, Fire Rescue, Police, and Tequesta Plaza with no tax increase. Mayor Mackail expressed his opinion that being so close it was time to make the funds available to proceed with these projects, and that the window to do the projects was within the next two years before complete buildout of the Village. The village Manager agreed, and stated Tequesta Motorcars and the lot between them and K-Mart could be developed, the corner lot on • Village Boulevard and U.S. ©ne, and the corner of Oid VILLAGE COUNCIL ~QORRSAOP • MEETING MINUTES JULY 6, 1999 PAGE 7 Dixie and Tequesta Drive were all that were left to be developed. Mayor Mackail commented it made sense to move forward while interest rates were still good, and encouraged the Village Council to do the projects which they had been discussing--village Hall, Fire Rescue, Police, and Tequesta Plaza--while funds were available for debt service. The Mayor stated he was not sure all the funds would need to be borrowed anyway, and suggested a minimal tax increase of possibly 1/2 percent would provide the leverage needed to do all the projects. The Mayor indicated that now was a good time to do the projects, since construction costs would continue to rise in the future. The Village Manager commented that a total figure to do all the projects could be provided at the Redevelopment Committee meeting scheduled for Thursday, July 15. Mayor Mackail requested and received clarification from the Village Manager that with this • proposed budget the village was only about $20,000 in annual revenue away from completing a Public Safety facility and Village Hali--in no specific order--backing out expense now being paid for rent. Councilmember Capretta estimated about $5 million would be needed to complete all of the projects, and about $30 million could be realized from new construction, or a total assessed value for the Village of $600,000. Councilmember Capretta commented that a consensus was needed of what the village Council wanted to do--either a whole plan for everything or approve fire rescue immediately to get things started. Village Manager Bradford commented that a plan could be presented at the Redevelopment Committee meeting. Mayor Mackail and Councilmember Capretta agreed that Public Safety could be done right away. Mayor Mackail stated that the North Palm Beach facility which was toured by the Village Council was really a state-of-the-art facility, but he only wanted to build a public safety building which was best for the Village, and wanted to see only one plan, after staff had determined needs. Councilmember Schauer commented she • had been under the impression that public safety would be VILLAGE COUNCIL WORKSHOP • MEETING MINUTES JIILY 6, 1999 PAGE 8 ------------------------------------------ housed in one facility. Village Manager Bradford responded that could be done but a new plan would be required. Councilmember Schauer asked whether it was possible to build a public safety facility on land already owned by the Village adjacent to the present Village Hall, and to refurbish the present Village Hall to accommodate Administration. Councilmember Dalack agreed with Councilmember Schauer's concept and favored a facility similar to that of North Palm Beach only on a smaller scale to provide one unified complex for everything including Administration. Councilmember Dalack expressed his opinion that this should be explored, and commented he was impressed with the value received for the money North Palm Beach had spent. Councilmember Capretta commented that a plan for all that had been looked at, which had an estimated cost of $7 million. • Councilmember Capretta explained there had been two approaches: (1) to have all new facilities, which would be the most expensive; or (2) since the Village could not afford that to see what could be done with $5 million using some of the existing facilities. Councilmember Capretta predicted that if the decision was made to do the whole thing, talk would ensue, no decisions would be made, and nothing would be done; however, next week at the Redevelopment Committee meeting a decision could be made to proceed with Public Safety facilities. Village Manager Bradford commented staff's goal had been to get solid direction at the Redevelopment Committee meeting since something could now be done without a tax increase to the residents. Mayor Mackail commented that decision could be made next Thursday, and requested that attention be directed back to the budget. Mayor Mackail stated he had no further comments on the budget. Councilmember Dalack requested the amount of money which went to each individual under Personal Services be broken • out. Councilmember Dalack also requested a breakdown of VILLAGE COUNCIL WORKSHOP • bD3ETING MINOTES JULY 6, 1999 PAGE 9 the $140,000 in legal expenses. Village Manager Bradford explained that figure was based on standard rates the Village was charged, and did not include fees for ENCON or the Jupiter water dispute. During ensuing discussion, the Village Manager commented Jones Foster, the Village's legal counsel, changed their rate on July 1st to $175 per hour, with $1,000 per month retainer, for an annual retainer of $12,000, with $103,000 left over charged by the hour, and the remainder for labor legal counsel from Miami, who charged $145 per hour which usually totaled $7,000 - $9,000 annually. Counciimember Dalack expressed his opinion it would behoove the Village to get bids for legal counsel who would take care of all legal needs of the Village for a flat sum per year. Councilmember Capretta explained that probably 2/3 of the fee was for lawsuits, and that the Village had defended itself on a • whole series of issues. Mayor Mackail suggested looking at other municipalities to see what they were paying for legal counsel. Councilmember Capretta cautioned that comparisons should be made with other firms qualified in municipal law. Councilmember Schauer requested that the Police Chief and the Fire Chief think about whether there was anything they needed not covered in the North Palm Beach Facility. Chief Allison commented Assistant Chief Garlo had been very impressed with security. Councilmember Capretta commented the question should be what North Paim Beach facility had that Tequesta did not need. Mayor Mackail commented staff needed to create an objective and implement a plan to be brought to the village Council with the best workable plan for the Village, and the Village Council would make the decision whether the Village could afford the projects with the money available. The Mayor indicated he did not want to get into how many windows, doors, etc., but that staff should make those decisions. Councilmember Schauer agreed that the Village Council should not have to decide details • such as how many windows, and stated that the Village VILLAGE COUNCIL WORKSHOP MEETING MINUTES JULY 6, 1999 PAGE 10 Councils role was to decide what was best for the taxpayers. Mayor Mackail stated he had reviewed the budget document and had been very impressed that staff had demonstrated projects could be done with no tax increase; therefore, the projects should be done. • Village Manager Bradford verified with Councilmember Dalack that he wanted only salary, not benefits, for each employee. Mayor Mackail requested that at the same time a comparison of salaries be made with Juno Beach, Jupiter, etc., with Lake Park as the farthest community south of the Village. Councilmember Dalack requested Tequesta's budget be compared with other municipalities in Palm Beach County. Mayor Mackail commented he believed the village was doing a better job than other municipalities. Councilmember Schauer commented Tequesta's tax increases did not go up and down, and that this was a good budget. V. ADJOURNMENT Councilmember Capretta moved that the meeting be adjourned. Councilmember Dalack seconded the motion. The vote on the motion was: Ron T. Mackail - for Basil E. Dalack - for Joseph N. Capretta - for Elizabeth A. Schauer - for The motion was therefore passed and adopted and the meeting was adjourned at 6:43 P.M. • VILLAGE COUNCIL WORKSHOP • b~ETING MINtTTES JULY 6, 1999 PAGE 11 ------------------------------------------ Respectfully submitted, Betty Laur Recording Secretary ATTEST: Joann Manganiel village Clerk DATE APPROVED: '~ ~ ~- i 9 A •