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HomeMy WebLinkAboutMinutes_Workshop_07/07/1998 F rf yP ~ G~'~a ` ~ VILLAGE OF TEQUESTA ~~, Post Office C3ox 373 3~7 Tcyuesta I~ri~~~ $ ~~ ~~ o` Tequest~a, Floi~da 33•i69-0?73 G6ll ~7>-6200 '~ ~ ~ c~ Fax: (7C1) ~7~-C203 AF 4v ',pN ~~ ty VILLAGE OF TEQUESTA VILLAGE COUNCIL WORKSHOP MEETING MINUTES JULY 7, 1998 C7 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 7, 1998. The meeting was called to order at 5:30 P.M. by Mayor Elizabeth A. Schauer. A roll call was taken by Betty Laur, Recording Secretary. Councilmembers present were: Mayor Elizabeth A. Schauer, Joseph N. Capretta, and Ron T. Mackail. Also in attendance were: Village Manager Thomas G. Bradford, Village Clerk Joann Manganiello, and Department Heads. Vice Mayor Carl C. Hansen and Councilmember Alexander W. Cameron were absent from the meeting. II. APPROVAL OF AGENDA Couacilmember Mackail made a motioa to approve the Agenda as submitted. Couacilmember Capretta seconded the motioa. The vote oa the motioa was: Elizabeth A. Schauer - for Joseph N. Capretta - for Roa T. Mackail - for C] The motioa was therefore passed and adopted and the Agenda was approved as submitted. xecrdec! !'crpc-~~ • VILLAGE CODNCIL WORKSHOP b~ETING MINUTES JULY 7, 1998 PAGE 2 ------------------------------------------ III. COMD~[TNICATIONS FROM CITIZENS (NON-AGENDA ITEMS) There were no communications from citizens. IV. REVIEW OF PROPOSED FY 1998-1999 BUDGETS A) General Fund B) 2mprovement Bond Revenue Fund C) Bond Construction Fund D) Coamnunity Development Special Revenue Fund E) Capital Improvement Fund F) 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, and a summary was provided in the handout document titled Annual Budget and Financial Report, with details supplied in the Supplemental Budget Report . Village Manager Bradford reviewed the Annual Budget and Financial Report for Fiscal Year 1999, beginning with the Letter of Transmittal. Total expenditures were expected to be $14,433,839, with the property tax rate was proposed to stay the same at 6.6310. Village Manager Bradford described the General Fund as the primary operating fund of the village and indicated that the proposed millage rate increase was 0~, a 2.97 increase over the estimated rolled back rate of 6.4400. The total General Fund Budget had increased less than 1$ over the prior year. The Village Manager indicated that costs recommended to be increased were employees` salaries and wages at 3.0~ • across the board, and an average of approximately 2.5~ had been provided to cover the cost of anticipated merit . VILLAGE COUNCIL ~PORRSHOP MEETING MINUTES JIILY 7, 1998 PAGE 3 ------------------------------------------ pay increases for those employees who had not yet reached the top of their applicable position pay scale. Health insurance costs were anticipated to rise 7.5~ Other factors affecting the Village's financial position were a 6.91 increase in property values over the prior year and increased projection of non-ad valorem revenues of 4.0~. For FY99, taxable value was anticipated to increase by $26,531,687; revenues by $253,085; and expenditures by $33,092. Village Manager Bradford reviewed the following highlights of the General Fund: The Undesignated Fund Balance was estimated to be $709,803 at 10-1-98 and $683,206 at 9-30-99. Police Department expenditures were up 4.3~ to $1,617,600 and the Patrol Division was proposing to add a Community Policing Officer. Fire-Rescue expenditures were up 7.0~ to $1,304,846, and the net cost to Tequesta was $999,961. Total expenditure budgets of all other Departments had increased 3.1~ primarily due to increased expenditures to the Capital Improvement Fund and salary adjustments. The General Fund contribution to the Capital Improvement Fund remained constant at a proposed $100,000 for FY99. An additional $27,500 in Parks and Recreation Impact Fees was being transferred to the Capital Improvement Fund. A FY98 General Fund contribution from reserves to the Stormwater Utility of $24,500 was proposed in keeping with Village Council direction to subsidize the Utility in its early years. Councilmember Capretta commented that when substantial increases were made in the budget during the budget year, that made comparisons from the current year to the next year look smaller. Village Manager Bradford indicated the Village had approved all the increases on first reading and that the final reading was scheduled for July • 23, 1998. Councilmember Mackail commented the increases were capital improvements. Councilmember Capretta VILLAGE COtTNCIL WORKSHOP NBETING MINUTES JULY 7, 1998 PAGE 4 ------------------------------------------ commented the increases were fairly constant and the real question was how to get sufficient revenue to break even. Councilmember Mackail favored a 5-year forecast, looking at future expenditures, and stated he wanted a minimum tax increase to get the Village where it should be by the end of the 3rd, 4th, or 5th year, and to plan Village improvements. Councilmember Capretta agreed, but stated he also wanted to project interest payments so that the Village would already know in year 2003 the debt service that would be due. Councilmember Mackail discussed new development, which he estimated would total an estimated $54 million in the next two years. Councilmember Capretta commented that by adding the estimated revenue and including the debt service for all new infrastructure improvements, the amount the Village would be short could be found so that the Village would know the amount of tax • increase needed. Fire Chief Weinand reported none of his employees were topped out, therefore his labor costs were higher than those of the police; explained that three employees had been certified as paramedics, so that their salaries had been increased; and commented that the number of fire- rescue calls had increased, causing wear and tear on the equipment and increased fuel consumption; however, revenues had also increased, and the fire-rescue department was making money. Police Chief Allison explained that over the past few years some police officers had taken on other duties and some had left the department, which made manpower insufficient to address problems and allow flexibility in scheduling. The population of the Village had increased, while Police personnel had decreased. The new officer which was requested would be a Community Policing Officer on bicycle patrol, with flexible work hours. A handout provided by Police Chief Allison showed activity was • increasing in the number of calls for service, traffic citations, drug arrests, and DUI arrests. Chief Allison • VILLAGE COUNCIL ~PORBSHOP MEETING MINUTES JULY 7, 1998 PAGE 5 ------------------------------------------ reported the Village had two manned police cars, one motorcycle officer, and now would have a full-time officer on bicycle patrol. Chief Allison reported the whole Department was now involved in Code Enforcement activity. Mayor Schauer reported that Code Enforcement Officer Sgt. Irovando and Joann Burnsed were videotaping properties for Ordinance 377 so that the videos could be used for comparison purposes next year to see if the properties had deteriorated or improved. Village Manager Bradford commented on long-term general fund issues, explaining that the Capital Improvement Fund provided for infrastructure only and not buildings. The question of how to pay for buildings was discussed. Village Manager Bradford reported that in the General Fund budget there was $261,211 from recurring sources • that could be used to apply to the following upcoming projects: Tequesta Village Center, Bridge Road, the new road, Village Hall, Fire-Rescue Facility, and Police Facility. Current estimated cost of all the buildings was $4,750,000 plus 10g contingency, plus 15~ professional fees, or $6,008,750. Figuring interest at a rate of 5.405 for 30 years on the $261,000 from recurring sources, this would buy the Village $3,839,000 of debt service. This meant the Village was $2,161,000 short. To make up the difference, recurring revenue of $147,000 was needed. In order to raise $147,000, the Village could (1) institute a property tax increase of 5.7~ or (2) increase the current 9~ utility tax to 10~ which would raise an estimated $60,083 so that a property tax increase of only approximately 3.4~ would be needed. During discussion of the utility tax, the Village Manager explained that some cities in Florida had a 10~ utility tax, while other cities had none, and it was the decision of each municipality how they wanted to raise money. Councilmember Mackail expressed his preference to • increase the General Fund balance for Reserves this year, scheduling improvements over 3-5 years as revenue became • VILLAGE COUNCIL WORKSHOP b~ETING MINUTES JULY 7, 1998 PAGE 6 ------------------------------------------ available, so that impact would not be created today. Village Manager Bradford explained that an increase to the fund balance would not come from recurring sources. Councilmember Mackail commented that he believed the Water Department's step rate program was hurting the Village and that he would like to see it abolished, which could increase the water Department Enterprise Fund over a five year period to over $5 million, which would cover a good part of the shortfall for buildings. Councilmember Mackail explained this meant more revenue in conjunction with a slight increase of only 1.5 to 1.9 for five years or three years. Councilmember Mackail explained that he was trying to arrive at a balance, so that the Village would not be guessing, but would have a budget they could live with and could base decisions on those numbers. Annexation could also bring a larger tax • base, however, that would not be counted on. Village Manager Bradford commented that the other side must be considered--how bills would come due after money had been borrowed. The best scenario would be to borrow $6, 000, 000 for the General Fund in October, 1998, and then to step up over three years into the full debt service payment. Councilmember Mackail speculated that the Village could take in most of the money needed through water sales if the step rate program was abolished. Village Manager Bradford commented that since water sales were fickle and determined by rainfall, it scared him to depend on those sales. Councilmember Mackail suggested it would behoove the Village to sell water to Jupiter Island. Village Manager Bradford reported Engineer Bill Reese was to attend a public hearing on July 17 regarding the sale of Hydrotek and the Hobe Sound water plant, and make an offer to supply them with Tequesta's excess capacity. Village Manager Bradford stated another possibility was to use water reserves to buy down debt service. The Village Manager • explained that water reserves were currently at $2 million, which could be spent for any legal purpose, and • VILLAGE COUNCIL WORKSHOP FETING MINUTES JULY 7, 1998 PAGE 7 was not limited to water; however, there were water improvements coming up. Since water reserves increased approximately $200,000 annually, Councilmember Mackail suggested that annual additions plus doing away with the step rates could provide most of the money needed for buildings. Councilmember Mackail requested staff prepare a 5-year projection. Councilmember Capretta stated that all assumptions regarding water assumed the village would achieve their targets on the reverse osmosis plant; however, he had not seen a plan of training and operational costs. Village Manager Bradford commented that the rate which RO water would cost would be unknown until the plant was turned on. Councilmember Capretta commented the Village must know what it would cost to produce water before pricing water and changing its concept. Councilmember Capretta also commented that one • day Tequesta would win the lawsuit with Jupiter, which would make more funds available. village Manager Bradford commented those funds were in excess of $1.5 million. village Manager Bradford explained that the Village Council had until July 23, 1998 to decide on a tentative tax rate, and questioned whether the Village Council desired additional data from staff for the next meeting. Councilmember Capretta commented that if the village created a plan containing all the assumptions discussed at this meeting including $261,000 from recurring sources, water reserves, abolishing step rates, anticipated revenues from new development, etc., then it could show year by year whether a tax increase was needed. Councilmember Mackail requested the plan project over five years, which would help the Village Council in making decisions. village Manager Bradford commented the plan could be done for three years and for five years, and he would have it completed before July 23. Councilmember Capretta expressed concern that the cost of RO water was not known. Councilmember Mackail commented he was not as concerned about the price as about the step • rate and that water sales had gone down, and about the ENCON situation. Councilmember Mackail stated that salt VILLAGE COUNCIL DPORKSHOP b~ETING MINUTES JULY 7, 1998 PAGE 8 ------------------------------------------ water intrusion was on its way and people must be made to realize that using Tequesta's water was not bad. Village Manager Bradford commented that Councilmember Cameron had said it very well at a previous meeting when he stated that people were just shifting from city water to well water. Village Manager Bradford commented that staff would provide some numbers to help the Village Council decide before July 23rd what they wanted to do regarding a tax increase. Village Manager Bradford discussed the Improvement Bond Revenue Fund and explained that the 1994 bond issue might be refinanced to reduce costs. Village Manager Bradford explained that expenditures of the Improvement Bond • Revenue Fund impacted the General Fund and therefore the tax rate, by reducing the flow of revenues that would otherwise have accrued to the General Fund. All revenues in excess of expenditures were transferred to the General Fund except occupational license revenues, less the occupational license debt service pledge, which was transferred to the Community Development Special Revenue Fund. village Manager Bradford explained that the Community Development Special Revenue Fund was not subsidized but was fee driven and not related to property taxes in any way. Total revenues were estimated to be $473,400, including funds from the Dayco project; total expenditures were estimated at $311,062; and fund balance was expected to increase from $241,978 to $404,316. Councilmember Mackail questioned the condition of Tequesta Park, and reported he had had telephone calls from JTAA representatives who were concerned because so much money had been invested in the park and they did not • want to see it wasted. Councilmember Mackail reported the ball fields were not safe and the demand for • VILLAGE COiTNCIL DQORRSHOP FETING MINOTES JULY 7, 1998 PAGE 9 recreation space was phenomenal, and recommended Martin County be contacted to see if they would participate. Director of Parks and Recreation Gary Preston explained that the only thing not maintained by the Village was the ball fields, and that the cost to maintain three fields with Bermuda grass would be approximately $125,000 annually, and that Bermuda grass required more water than the village's permit which allowed only 27,000 gallons. Bermuda grass required about eight times that amount. South Florida Water Management District would not increase the amount of water, and the cost of City water for maintaining the ball fields would be prohibitive. Mr. Preston reported that the Village was talking with ENCON regarding the possibility of using IQ water, which would cost approximately $25,000 annually. Mr. Preston explained that start-up costs for Bermuda grass would be approximately one-half million dollars, and ballfield lights would cost approximately $225,000. Jupiter Hills residents opposed the lights. Councilmember Capretta recommended that Mr. Preston refer the JTAA representatives to Martin County to see if they could get a better response than the village. Village Manager Bradford discussed the Bond Construction Fund which was designated to record all up-front costs associated with the new public safety facilities in the Village. This fund was anticipated to be used as the fund to account for any bonds issued for all the capital improvement projects discussed earlier. Total Letter of Credit expenses were estimated to be $285,000, and the Village Manager requested that the Village Council take note that the Letter of Credit expiration was April 1999 and therefore debt decisions would need to be concluded prior to that time. Village Manager Bradford reviewed the Capital Improvement Fund showing a 5-year plan. The village Manager reported • that the Village's quantity of road overlay did not meet the minimum now required to piggyback the County's paving VILLAGE COUNCIL WORKSHOP b~ETING MINUTES JULY 7, 1998 PAGE 10 ------------------------------------------ contract; therefore, the decision had been made to include two years' paving in order to meet the minimum and to carry the cost over two years. Other capital improvements reviewed were the YMCA sign at the Recreation Center; Seabrook Road improvements from Tequesta Drive to Dover Ditch; Seabrook Road North Pathway Extension {a sidewalk from the Bush property to Russell Street at the north end of Tequesta Pines); Resurfacing Constitution Park pathway; Country Club Drive Landscaping; Country Club Drive Swale Construction; and South Cypress Drive improvements, which would be done at the end of the next fiscal year so as to dovetail with the Northern Palm Beach County Improvement District's drainage project. Total revenues of the Capital Improvement Fund were estimated to be $202,500, and the beginning fund balance $183,059. Total expenditures were estimated at $315,350. Village Manager Bradford explained that there was only $4,875 in the Special Law Enforcement Trust Fund, and that no expenditures could be made without approval by the Village Council. Mayor Schauer requested that Village Manager Bradford provide a rough sketch of what had been discussed at this meeting to the two absent Councilmembers. V . ADJOURNb~sNT Councilmember Capretta moved that the meeting be adjourned. Couacilmember Mackail seconded the motion. The vote on the motion was: Elizabeth A. Schauer - for Joseph N. Capretta - for Ron T. ~2ackail - for • The motion was therefore passed aad adopted and the meeting • VILLAGE COUNCIL WORKSHOP MEETING MINUTES JULY 7, 1998 PAGE 11 ------------------------------------------ was adjourned at 6:43 P.M. Respectfully submitted, e Betty Laur Recording Secretary ATTEST: Joann Manganie o Village Clerk DATE APPROVED: C2~~ a 7~ /9 99