Loading...
HomeMy WebLinkAboutMinutes_Workshop_07/18/1995VILLAGE OF TEQUESTA Post Office Box 3273 357 Tequesta Drive Tequesta, Florida 33469-0273 (407) 575-6200 Fax: (407) 575-6203 VILLAGE OF TEQUESTA VILLAGE COUNCIL WORKSHOP MEETING MINUTES JULY 18, 1995 _. II. CALL TO ORDl3R AND ROLL CALL The Tequesta Village Council held a workshop meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Tuesday, July 18, 1995. The meeting was called to order at 5:36 P.M. by Mayor Ron T. Mackail. A roll call was taken by Betty Laur, Recording Secretary. Councilmembers present were: Mayor Ron T. Mackail, Elizabeth A. Schauer, Carl C. Hansen, and Joseph N. Capretta. Also in attendance were: Village Manager Thomas G. Bradford, village Clerk Joann Manganiello, and Department Heads. Vice Mayor Burckart was absent from the meeting. APPROVAL OF AGENDA Councilmember Hansen moved that the Agenda be approved as submitted. Councilmember Schauer seconded the motion. The vote on the motion was: Ron T. Mackail - for $lizabeth A. Schauer - for Carl C. Hansen - for Joseph N. Capretta - for The motioa a-as therefore passed aad adopted aad the Ageada Kecycled ~aj~er Village Couacil workshop Meetiag Miautes July 18, 1995 Page 2 ------------------------------- was therefore approved as submitted. III. REVIEW OF PROPOSED FY 1995-1996 BUDGETS Village Manager Bradford proposed an alternative to the 3~ inflation adjustment bonus for employees which had been discussed at the previous budget workshop. The Village Manager explained that in lieu of the inflation adjustment bonus, the typical COLA could be cut from 3~ to 1.5~, which would provide the same basic budgetary impact, satisfy employee concerns that the inflation adjustment bonus could not apply toward retirement, and would raise base salaries by 1.5~ so that in a year the level of salaries would not be as high as if a 3~ COLA were given. Councilman Capretta suggested that if the Village's wage brackets were high in comparison with surrounding municipalities that they could be lowered by giving a 1.5~ COLA for a few years. Village Manager Bradford explained that the Village did not have a structure problem, however, by granting a 3~ inflation adjustment bonus, the key positions in which the Village must remain competitive--plant operators, police officers, fire fighters--would fall behind by 3~. The Village Manager stated that every other fire department he had studied was given a 3~ COLA, and that the Village did not want Tequesta's fire department to be a training ground for other fire departments. In response to Mayor Mackail's questions, Village Manager Bradford explained that approximately 30$ of the employees were topped out at their salary level and the Village had a lower turnover than other municipalities in the area. Councilman Capretta stated salaries should be high enough to (1) be competitive to attract people, (2) pay enough to retain people, and (3) keep morale reasonably high. Village Manager Bradford commented that the Jupiter Police Department was raising salaries by 10-12~ across the board so that pay for a starting police officer would be $27,500 annually, or $3,000 more than Tequesta's starting village Council workshop Wresting Minutes July 18, 1995 Page 3 ------------------------------- pay. Councilmember Schauer commented that Jupiter~s police had a harder job since Tequesta had little crime. In response to Mayor Mackail, the Village Manager explained that employees in the water plant and fire department Gould advance in their positions by earning certificates, and that the police employees were under a state incentive program which mandated pay raises if they achieved certain educational goals. It was the consensus of the Village Council to grant a 1.5~ COLA. Councilmember Capretta stated that the employees should be informed that the Village had a financial problem, and that the Village Manager was not getting any salary increase. Councilmember Schauer suggested a way to save money would be to send newsletters only to residents and to charge $5 to others who wished to receive it. Mayor Mackail stated that the real problem was that over the years the incoming revenue stream had not been sufficient, that operating costs were $100,000 - $150,000 every year, that ways must be found to enhance the value of property within the village to increase revenue, and requested that the village Manager explain this problem to the employees. A) Improvemeat Bond revenue Fuad The Village Manager explained that this fund had been set up to account for funds allocated to pay the debt service on the 1994 bond issue projects, i.e., the 1979 bonds refinanced at a lower interest rate, Tequesta Park, Country Club Drive, and Constitution Park--which would be completed after legal matters were resolved. The total bond issue had been $1,365,000 excluding issuance costs. Councilman Capretta commented that the Village's debt service was very low, that the village was living too close to their income, and was slowly going bankrupt. Councilman Hansen responded that if the Village were a company that they would be a perfect takeover target. village Couacil workshop Meeting Miautes July 1$, 1995 Page 4 ------------------------------- Councilman Capretta commented that if possible, new development must brought in simultaneously with bonding for new projects to invest in the community. Mayor Mackail suggested a 3 or 5-year program to accomplish projects and upgrade properties in order to bring the value of properties back to increasing yearly. Mayor Mackail stated the Village must change the Code Enforcement procedure to something similar to the Lantana Plan in order to stop spending exorbitant amounts every year in legal battles, and parallelity between Code Enforcement and homeowners associations would provide the power needed to enforce violations. Councilman Capretta suggested the following plan: i. Accelerate growth by offering a fire sale which would provide financial incentives in the form of reduced impact fees for projects built within a specified time period. 2. Adopt the Lantana Plan to encourage property owners to maintain their homes. 3. Do something to keep the cultural organizations within the village. 4. Improve village infrastructure. 5. Explain the program to the residents to enlist their participation, beginning with the Homeowners Associations. Mayor Mackail proposed that during the month of August that Homeowners Associations and homeowners who were not members of Homeowners Associations be invited to a meeting at the village Hall to explain the plan. Mayor Mackail questioned whether the village had the ability as village Council ~orkahop Meeting Minutes July 18, 1995 Page 5 a municipality to invest the anticipated $42,000,000 from new development which would be received over the next 12 months so that its future income would pay for the needed projects to invest in the Village. Village Manager Bradford responded that the Village had that ability, and that Finance Director Kascavelis would analyze the revenue that would be pledged to determine the debt capacity of the village. Finance Director Kascavelis reported from an initial quick analysis that because of overlapping debt from Palm Beach County and the School Board attributable to the Village, that a more normal debt figure for the village would be approximately $5,000,000 rather than $1,200,000. Mayor Mackail questioned what should be prioritized in order to bring property values up and to stop deterioration of facilities. Finance Director Kascavelis stated that he would determine the debt capacity of the Village and the increase in assessed value needed to manage that debt in the future; and that temporary financing alternatives were obtainable, such as bond anticipation notes or a bank line of credit, to provide the cheapest financing available during the period until the amount needed for a bond issue would be known. Village Manager Bradford explained that because some projects were needed immediately that taxpayers must bear the costs in the form of an increase in miliage rates before relief could be provided from new development. Mayor Mackail questioned how much the General Fund balance could be reduced without placing the Village at risk and whether funds could be used from the water Enterprise Fund to jumpstart the program until the income from new development would be generated back into the tax base. Mayor Mackail stated there must be a calculated percentage of what could be given up in order to achieve the goal. Finance Director Kascavelis responded to Councilmember Schauer that in analyzing the cash position village Council workshop Meetiag Minutes July 18, 1995 Page 6 ------------------------------- that adequate funds were available, if no additional changes were made in plans for projects budgeted for the current and upcoming year, however, any additions would necessitate short term borrowing next year. Councilman Capretta commented on the need to speed the development approval process to save developers time and therefore money. Councilman Capretta also discussed the 91~ increase in water rates demanded by Jupiter, to which Mayor Mackail responded that the Village should send Jupiter a bill for 50~ of the cost of Dover Ditch improvements. Village Manager Bradford reviewed the funds pledged to pay debt service on existing bonds, and reported the sources were greater than was needed. B) Boad Construction Fund Village Manager Bradford reviewed the Bond Construction Fund which tracked the revenues and expenditures of the existing bond, and explained that the remaining funds were for Constitution Park. C) 1Pater Enterprise Fuad Village Manager Bradford pointed out that estimated revenues were $2.6 million and estimated operating expenditures were $2.1 million, using rounded figures. The revenues in excess of operating expenses were approximately $580,000, and debt service for next year was only $290,855. The Village Manager explained that next year was the last year the Village would owe any money for debt in the water system, for the first time in approximately 30 years. Village Manager Bradford reported that although the judge had agreed with Tequesta that Jupiter's rate increase was unfair, the Village village Council workshop Meeting Minutes July 18, 1995 Page 7 ------------------------------- could lose, and the possibility existed that Jupiter would impose the astronomical rate increases retroactively to possibly July 25, 1995, so that Tequesta would have to either increase the rates or see that money was in hand to pay that retroactive charge, and therefore could not use any of the $300,000 which would accrue in this fund. Village Manager Bradford conjectured that Jupiter either wanted Tequesta to get off their system or force Tequesta to surrender being in the water business and let Jupiter take over, or to continue to profit from continuing to have Tequesta as a long-term customer. Councilmember Schauer pointed out that the letter from Mayor Golonka to Mayor Mackail had given a 6-month period for Tequesta to make a decision. Village Manager Bradford explained that was how it seemed, however, that Jupiter would say that six months referred to planning and that planning and rates were two separate issues. Tom Hall, Water Department Manager, estimated additional cost to be $400,000 to $500,000 annually under the increased rate. During ensuing discussion, Councilmember Capretta questioned Jupiter's method of calculation of using a base facility charge instead of the method of calculation used by them to raise rates in the past. village Manager Bradford explained that Jupiter's position was that Tequesta was not paying their fair share of the fixed costs of operating their water system, and if Tequesta had been free of the contract that required purchase of 1.5 million gallons per day whether it was used or not that they would have been able to develop their own water facilities. The Village Manager suggested that if Jupiter were successful in imposing the base facility charge that it was believed that either the contract would therefore be voided but Jupiter could not cut off water because that would harm the public health; or that it would be extremely unlikely that Jupiter could still enforce the provision of the contract that 1.5 Village Couacil workshop Meetiag Miautes July 18, 1995 Page 8 ------------------------------- million gallons per day must be purchased whether or not it was used, so that Tequesta would be free to purchase only the amount needed. This would mean a reversal in the way the Village water operations were conducted and Tequesta must produce as much water as possible to avoid buying Jupiter's expensive water. The Village Manager stated that immediate steps must be taken to increase the allocation of water to the Village, and the allocation permit was now up for review; therefore, he had instructed water management and the consultants to conduct a computer modeling to hopefully show that more water was available in the surficial aquifer than the current allocation so that the Village could immediately drill more wells, increase capacity of existing wells, expand the plant with existing cheaper filters, and pump at capacity until the reverse osmosis plant could come on line. water Director Hall estimated that under existing allocations that the Village could produce 2.7 million gallons and would have to buy the rest, but by running wells continuously could get several more million gallons per month. Councilmember Capretta instructed Mr. Hall to recalculate Mayor Golonka's water bill for the past six months under the 91~ rate increase, so that she could see how the increase would affect the Jupiter residents that were on Tequesta's system. Mayor Mackail stated that Tequesta should not have to underwrite the shortfall in Jupiter's revenue. The Village Manager explained that the Village had been put on notice that if Jupiter sought a permit Tequesta would be notified, and could then object to their flat rate structure which made no provision for conservation. Mayor Mackail stated that the whole Village Council, Village Manager Bradford, and Village Attorney Randolph would attend a meeting at Jupiter with the Jupiter Town Council to discuss this matter. Village Manager Bradford pointed out that the debt service ratio to operating revenue was 1.99, which village Council workshop Meeting Minutes July 18, 1995 Page 9 ------------------------------- exceed the required amount of 1.25. The Village Manager reviewed the revenues of the Water Department Enterprise Fund and stated that the refuse and recycling charge would appear on tax bills beginning this November, rather than on water bills, allowing residents to deduct the amount for refuse and recycling on their taxes. Discussion ensued regarding the notice sent to residents which many residents were upset about. Finance Director Kascavelis responded that the Village should never have to do that again. The Village Manager explained that the refuse and recycling charges in the notice were higher than would be reported at the Village Council Meeting since the figure had been estimated in the notice, and instead of the estimated total physical environment figure of $294,715 it would be lowered to $289,930. Mr. Meter, a member of the audience, commented regarding the notice and how it had upset residents, and suggested that a separate cover letter of explanation in the furure be included, and the mailing coordinated with the newsletter. Village Manager Bradford stated that the Water Department had three operating divisions: Pumping & Storage, Distribution, and Administration. A proposed personnel increase of one plant operator in Pumping and Storage for FY 1996 and an additional employee in the Distribution section the following year would allow for the higher level of maintenance which would be needed if Tequesta needed to provide their own water supply. Water Department Director Hall explained that testing of backflow preventors was required under state law, and that since accurate recordkeeping was needed, the data would be computerized, which was anticipated to be completely operational by next year. village Council Workshop Meeting Minutes July 18, 1995 Page 10 ------------------------------- Village Manager Bradford commented that in the Distribution and Administration areas that it must be kept in mind that in the event of a retroactive rate increase the money to pay that charge must be kept in reserve, and in the event it was not retroactive that Tequesta's rates must be immediately adjusted to pass on the cost. Village Manager Bradford reviewed the water Enterprise Fund Capital Expenditures, and cited projects that would be focused on, which would be Well #9 as a backup well - $200,000; Well #26, Country Club Drive outside Turtle Creek - $200,000; Well 27 in Turtle Creek - $160,000; Reverse Osmosis Plant engineering and design for the plant itself - $200,000; one R/O well - $340,000; R/O effluant disposal permitting and engineering - $85,000; Cypress Drive Drainage Project authorized by Governor Chiles to go forward, which would impact commercial properties - $52,600. Total Capital Expenditures were therefore $1,884,925, which could be covered unless any projects went over budget, at which time interim financing would be needed. D) Special Law $aforcement Trust Fund Village Manager Bradford explained that the Law Enforcement Trust Fund contained any money realized by the Village from seizure of a vehicle used in the illegal sale or transport of drugs, which had a current balance of $1,366, and that none of those funds could be spent unless approved by the Village Council. Councilmember Schauer suggested use of one of the consficated vehicles by the Village, possibly by Code Enforcement, with the message on the vehicle that it had been obtained by the Village from a drug bust. village Council ~Porkshop Meeting Minutes July 18, 1995 Page it ------------------------------- Village Manger Bradford reviewed the budget process for the Village Council members from the Budget workshops to receipt by residents of their tax bills, and reminded the Councilmembers that the budget could be changed between now and September, but the millage rate could not be increased over the tentative millage rate which the Council would adopt at the upcoming village Council Meeting. In the event an increase could not be avoided, a notice would be required to be sent to every property owner telling them in detail why the rate was being raised higher than the tentative millage rate. The Village Manager stressed that it would therefore be unwise to increase the rate, however, it could be reduced. Mayor Mackail requested that Village Manager Bradford proceed to determine funding for the plan for projects needed to increase property values within the Village as discussed earlier in the meeting. village Manager Bradford explained that during the first year interim financing could be taken from the balance in the General Fund. Mayor Mackail stated that the residents must be informed of the problems that the village had had historically and what was anticipated in the future, and how that would affect the ad valorem tax base, and should be informed of the fire sale and all of the other items that had been discussed to increase the value of property within the village and make the Village a better place to live. After discussion, direction to Village Manager Bradford was to add into the Capital Improvements Program projects not already in the program such as the JTJC building, etc., and decide which ones would be done in this budget year in order to determine any increase needed. Councilmember Hansen commented that there was not enough in the current budget to jump start the projects needed without going to a Bond Anticipation Village Couacil workshop Meeting Minutes July 18, 1995 Page 12 ------------------------------- Note, and advised proceeding in a reasonable manner. Further discussion ensued, with the direction to the Village Manager to prioritize the projects over three years and to schedule projects for each year, to get the Homeowners Associations involved, and to schedule mare frequent meetings of the Redevelopment Committee to get the plan started. Betty Nagy questioned the $75,000 being spent on U.S. One medians. The Village Manager explained that the grant from the state was $75,000, which the Village was spending, and which would be reimbursed. wade Griest commented that the $75,000 would only pay for 1300 linear feet of landscaping, or less than 1/6 of the total length of the medians. Village Manager Bradford explained the Village had hoped for landscaping similar to that on PGA Boulevard medians with native trees. Mayor Mackail concurred, and stated that the red brick decorative pavers at the PGA Boulevard medians were very pleasing. =v. AnJOr Couacilmember Hassan moved that the meeting be adjoura®d. Couacilmember Capretta seconded the motion. The vote oa the motion was: Ron T. Mackail - for Elizabeth A. Schauer - for Carl C. Haasea - for Joseph N. Capretta - for the motioa eras therefore passed aad adopted and the meeting was adjourned at 7:45 ~.~. village Council Workshop Meeting Minutes July 18, 1995 Page 13 ------------------------------- Respectfully submitted, Betty Laur Recording Secretary ATTEST: _~.~. J ann Mangani to village Clerk DATE APPROVED: