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HomeMy WebLinkAbout1982-09-10 - City Commission Special Meeting MinutesNOTICE OF PUBLIC HEARING TAMARAC UTILITIES EAST CITY COUNCIL TAAC, FLORIDA Please be advised that the,,..Ci ty,, Council of Tamarac will hold a Public Hearing to discuss and take action oirl Tamarac Utilities East Burl et - Fiscal_Year 1982/83. This Meeting will be held on Friday, September 10, 1982 at 10:00 AM at the Boule- vards Section Clubhouse, 2611 N. W. 53rd Street. An additional item to be discussed and acted upon, while not as a formal Public Hearing, is the Rate Stucture for the Utilities East. The Public is invited and encouraged to attend. A summary of Revenues and Expenditures of Tamarac Utilities East Budget Fiscal Year 1982/83 CITY MANAGER BUDGET ACTUAL PROPOSED REVELS FY 1981/82 FY 1982/83 Residential Water Sales $ 87,500.00 $105,000.00 Commercial Water Sales 8,400.00 10,500.00 Residential Wastewater 130,500.00 125,000.00 Commercial Wastewater 8,400.00 13,000.00 Turn on/Turn off Charge 800.00 500.00 Miscellaneous Revenue 1,000.00 200.00 Interest Income 18,000.00 19,000.00 Appropriated Fund Balance 37,550.00 63,723.77 TOTAL ESTIMATED REVENUES $292,150.00 $336,923.77 EXPENDITURES Administration and Reimbursement of Services - General Fund $ 32,160.00 $ 39,896.96 Operations 234,990.00 272,026.81 Transfer to General Reserve Fund 25,000,00 25,000.00 TOTAL EXPENDITURES $292,150.00 $ 336,923.77 Copies of this proposed budget are available in the office of the City Clerk, 5811 N. W. 88th Avenue between 8:30 A.M. and 5:00 P.M. Pursuant to Chapter 80405 of Florida [aW; 3eriafe IM, I R& U,,8 if a person decides to appeal any decision made by the City Council with respect to any matter considered at such meeting or ., 6arihi he-VR nec 'r�card t#,� ptbz�'editt�t ettd�for such Mar' yn Be thol purpose, he may need to ensure that a verbatim record indudee City Clerk esiimony and evidence upon which -the appeafis to be based. PUBLICATION DATES Broward Section of - Thursday, August 26, 1982 Miami Herald - Friday, September 3, 1982 Braward Neighbors Sunday - August 28, 1982 North Zone Friday - September 9, 1982 CITY OF TAMARAC, FLORIDA SPECIAL CITY COUNCIL MEETING TAMARAC UTILITIES EAST BUDGET - FY1982/83 SEPTEMBER 10, 1982 CALL TO ORDER: Mayor Falck called the Public Hearing to order on Friday, September 10, 1982, at 10:00 A.M. at the Boulevards Section Clubhouse, 2611 N.W. 53rd Street, Tamarac, Florida. MEDIATATION AND PLEDGE OF ALLEGIANCE: Mayor Falck called for a Moment of Silent Mediatation followed by the Pledge of Allegiance. Mayor Falck welcomed everyone present and thanked them all for coming. ROLL CALL: PRESENT: Mayor Walter W. Falck Vice Mayor Helen Massaro Councilman Irving M. Disraelly Councilman Philip B. Kravitz Councilman David E. Krantz , ALSO PRESENT: Laura Z. Stuurmans, City Manage Jon M. Henning, City Attorney Steve Wood, Finance Director Larry Keating, City Engineer Norma R. Rayman, Secretary 1. TAMARAC UTILITIES EAST BUDGET - FY 1982 83 - Discussion and possible action to adopt Tem . Ord. #998, for that portion of the City, and certain unincorporated areas, east of State Road 7. First Reading An additional item to be discussed and acted upon, while not as a formal Public Hearing, is the Rate Structure for the Utilities East. SYNOPSIS OF ACTION: ADOPTED on 1st Reading. The City Attorney read Temp. Ord. #998, by title only. The City Manager reviewed the Estimated Revenues and Expenditures for the 1981/82 Budget to the present figures for the 1982/83 Budget. 1981/82 1982/83 TOTAL ESTIMATED REVENUES $292,150.00 $336,923.77 TOTAL BUDGETED EXPENDITURES $292,150.00 $336,923.77 Mrs. Stuurmans advised that in order to fund the budget for next year, the Finance Director has reviewed the cost factors that would be required for this system, and has proposed a rate increase. Mrs. Stuurmans recommended to Council a rate increase over a two year period. She asked -the public to follow the proposed increase on the hand out given them, headed up Rate Schedule Comparison, under Average Consumer Bimonthly charge comparison. She added that the minimum service availability charge for water currently is $9.60 for a two month period. She said the proposal for a two month period is to be increased to $13.90. She added that the minimum Sewer charge is currently $14.10, they are recommending it be increased to $15.00. Mrs. Stuurmans stated that the water consumption charge of $5.10 based on .854 per thousand, will remain $5.10. She added that the consumption sewer will be going from $6.96 to $8.10, based upon an average consumption of 6,000 gallons in a two month period of time, which statistics reflect is the average consumption for this area. Mayor Falck opened the Public Hearing. Bernie Campbell, 2705 NW 52nd Place, Tamarac Lakes, asked a question concerning the revenues coming in. He pointed out the amount of $63,723.77. He said he would like to know where these funds were coming from. -1-- 9/10/82 /nrr Steve Wood said that the $63,723.77 was an accumulation of funds that have been available in the Utilities East System. He added that what they were doing was using the funds that have been accumulated to date, to offset the additional cost for the next two year period. Mr. Campbell also questioned if Fort Lauderdale has increased the cost of water for the coming year. Mr. Wood said that under their Large User Agreement, Fort Lauderdale was charging Tamarac .85� per thousand gallons, and $1.35 per thousand for sewage. Mr. Campbell said the appropriated fund balance comes from the people, where else would it come from. Mr. Wood informed him that was incorrect. He said it was prior collections, where revenues exceeded expenditures since the inception of the Utility. These funds were-now'being brought back into the system to keep the impact of passing the necessary revenues that would be needed to operate the system on to the ultimate consumer. Mr. Campbell said he could not understand how they could say that this money was not being taken from the consumer. Mr. Wood pointed out that it had already been taken and was accumulated over the past several years. He added that rather than increasing the rate to get another $63,723.77, they are taking money that has already been collected and bringing it back into the system. Mr. Campbell pointed out that even though this money is an accumulated fund, it had to be collected originally from the people. Mr. Wood added that there were also interest earnings on the accumulated funds. Mr. Wood explained that the money that is taken in on a bimonthly basis is invested, and therefore it earns interest. Mr. Wood said that if the monies did not earn interest, then the consumer would have to pay it. Mr. Campbell said that was exactly what he was driving at, how would they get money unless it originated from the people. Mayor Falck explained that Mr. Wood had already answered Mr. Campbell's question and there was no need for a debate. Mayor Falck said that the $63,723.77 was already in the budget and therefore they were not asking the people to pay it. Mr. Campbell questioned the expenditures as far as the $25,000.00 that was being transferred to General Reserve Fund, what fund is that actually going into. Mayor Falck explained that those monies went into the Tamarac East Utility Fund directly and are only used for that fund. Mr. Campbell said he did not like the idea that every year monies were out into the reserve fund. Mayor Falck asked him if a pipe burst and they did not have this money, what would happen? Mr. Campbell said they could be assessed at that time as they had when they had to pay for the water meters. Mayor Falck informed Mr. Campbell that the money was placed in the General Reserve Fund to help with the expenditures so they could keep the cost to consumer down. Playor Falck said that the City needs $336,923.77 to have the water and sewer for the fiscal year and if it is not there, there will be no water and sewer service. Mr. Campbell pointed out that there had been many, many increases since the water meters had been installed and he did not understand why every- one was allowing this to occur. Mayor Falck explained that the City of Fort Lauderdale had increased their rates to the City of Tamarac and therefore the increase had to be passed along to. the consumer. It was as simple as that. --2- 9/10/82 /nrr Charles L. Ketchy, 2505 N.W. 54th Street, Boulevards said he noticed that on the average consumption, the average is 6000 gallons. He said he personally agreed with that, because that was just about what his bill was. He pointed out that in the sewer service charge, the minimum service charge per month was up to 8,000 gallons no additional charge. He added that since the average user was average 6,000 gallons, why should that figure be 8,000 gallons, why couldn't that be changed to 6,000 gallons. He said he knew that it had been proposed that the City would hook up to Fort Lauderdale and therefore they would need the extra money. Mr. Ketchy said he understood that the idea had been shelved. Mayor Falck informed him that it had not been shelved. His latest information was that on November 1st, Tamarac goes on line. Mayor Falck pointed out that all the preliminary work had already been done. He added that the substation that was built on Commercial Boulevard had been built exclusively for Tamarac East. Mayor Falck said that they had to pay the increased charges to Fort Lauderdale. The past year it had gone up from .35G to .69� for sewage. He added that they had no choice but to pay it as a new sewage line to 441 was $650,000.00 and they could not afford it. He said they would connect to Fort Lauderdale and not the County, because it was a lot less expensive. Mr. Wood said that the $63,723.77 was part of the monies that were collected last year to provide for the sewage transition to Fort Lauderdale. He added that since they did not have to send it last year, they were able to accumulate retained earnings and that was what they were dipping into to fund this rate increase for the next two years. A gentleman from the audience questioned the minimum bill as far as the 6000 gallons is concerned when no one was there. Mayor Falck informed him there was no charge for 6000 gallons when no one was at home, but a minimum service charge for having the pipes in the ground and for being able to turn on the water when they did have to use it. Esther King pointed out that the Mayor had said they should have all gone to the City of Fort Lauderdale meeting for water and sewer rates and he had not seen any of them there. She said she thought that Mayor Falck was there to represent the entire City of Tamarac. Mayor Falck said that he had asked for help and no one had showed up. Vice Mayor Massaro added that at any public hearing the amount of people that showed had a great impact on what they could accomplish. She said that if the public did not show, they assumed that the Mayor was only doing a civic obligation and that his people are happy. Ruth Ball asked if and when the City of Tamarac hooks up with the County, will the City put in sewerage in the sections that do not have sewerage now. Mayor Falck said he was sure that will be taken up at that time. He was well aware of the problem and they will be taking that into consideration then, it cannot be done now because there is no capacity. He added that once the City was hooked up with the City of Fort Lauderdale, it will be done. Mayor Falck closed the Public Hearing. V/M Massaro said that they had before them a budget that must be met, there was absolutely no question about it and the money has to be available. V/M Massaro MOVED that the budget as presented be APPROVED on first reading. C/M Krantz SECONDED. -3- 9/10/82 /nrr C/M Kravitz asked what the reserve amount in the Appropriated Fund Balance was as it was not mentioned in the budget, only the amount that would be taken out for the coming year. Mr. Wood informed him that the balance was $108,000.00. C/M Kravitz pointed out that if there was $108,000.00 and assuming they would be using.$63,000.00 of that for the current period, there would be a balance of $45,000.00. He questioned if it would be feasible or probable that the City could increase our income through this acccumulated balance by the $45,000.00 and therefore not need as much increase and still meet all the expenses or do they feel that there is a need for the $45,000.00 in the reserve. Mr. Wood informed C/M Kravitz that the plan was to wipe out the reserve over the,.next two year period. He added that if it was all used this year, then next year there would be an extremely large rate increase. C/M Kravitz added that he felt there was quite a squeeze on the senior citizens at this time and if they could and,he was speaking for the entire Council, help the residents, they would like to do so. He added that if it were possible, he would like to use up the balance of that reserve now, and if there is a need again in two years, at that time, increase it to accumulate a new reserve. He said he would like to see a cutting of the rate by using that $45,000.00. V/M Massaro said it sounded pretty, but it would not next year when the people would be hit with an increase that would be hurting them even more. She added that the past year the City has been able to get a good return on whatever money was in the bank. She said that would not be happening now as the interest rates were going down daily, and they should as that will help the entire economy. V/11 Massaro said they had to take into consideration that the City will be losing that income to help increase the fund balance. She added that this has been taken. into consideration by the Finance Director to split that money so that this year and next year would be equitable and that the City can main- tain this rate. C/M Disraelly agreed with V/M Massaro that the rates that were being established are the rates that will be established over two years and there is no anticipation of raising them a year from now. He added that if they used another $45,000.00, there would be no appropriated fund balance for next year and until they try to reduce expenses, if they continue the way they have in the past, there will be another $10,000.00 or $12,000.00 which will give the residents the offset on the appropriated fund balance that will be needed a year from now. He added that if the balance was'i.used and the cost reduced 10!� thi: yCar, anu then next year there would be an increase of 25� or 30�. V/M Massaro said that although the Public Hearing was closed, there would be a second reading and a Public Hearing again, if anyone wished to speak on this. VOTE: Meeting was adjourned at 10:45 A.M. ASSISTANT CITY CLERK ALL VOTED AYE R' This public document was promulgated at per copy, to inform the general public about recent opinions and consideration of Tamarac. a cost of $ ,W#<. or and public officers and by the City Council of ME employees the City 9/10/82 /nrr APPROVED Y COY COUNCIL ON a / 07- MAIL REPLY TO: P,O. BOX 25010 TAMARAC, E LOR IDA 33320 6811 NORTHWEST 88T'H AVENUE `I`AMARAC, FLORIDA 33321 TELEPHONE (305) 722-5900 NOTICE OF PUBLIC HEARING CITY COUNCIL TAMARAC, FLORIDA TAMARAC UTILITIES GUEST BUDGET - FY1982/83 Please be advised of a Public Hearing before the City Council on Friday, September 10, 1982 beginning at 1:30 P.M. in the Council Chambers at City Hall, 5811 NW 88th Ave., Tamarac, Florida. The purpose of this Public Hearing is to consider and take action on Temporary Ordinance #999 adopting the Utility Budget FY 1982/83 for that portion of the City and certain unincorporated areas, west of State Road 7. The public is invited to attend. lloil W, nmv, i CITY OF TAMARAC, FLORIDA SPECIAL CITY COUNCIL MEETING TAMARAC UTILITIES WEST BUDGET - FY 1982/83 SEPTEMBER 10, 1982 CALL TO ORDER: Mayor Walter W. Falck called the Special Meeting to order on Friday, September 10, 1982 at 1:30 P.M. in the Council Chambers. ROLL CALL: PRESENT: Mayor Walter W. Falck Vice Mayor Helen Massaro Councilman Irving M. Disraelly Councilman Philip B. Kravitz Councilman David E. Krantz ALSO PRESENT: Laura Z. Stuurmans, City Manager Jon M. Henning, City Attorney Steve Wood, Finance Director Larry Keating, City Engineer Patricia Marcurio, Secretary 1. Tamarac Utilities West Budget - FY 1982/83 - Discussion and possible action to adopt Temp. Ord. #999, for that portion of the City west of State Road 7. First Reading. SYNOPSIS OF ACTION: APPROVED Temp. Ord. #999 on first reading. Jon Henning read the Ordinance by title. The City Manager compared budgeted for FY 1982/83: Revenue Fund Sinking Fund Bond Service Account Sinking Fund -Reserve Account Renewal and Replacement Fund General Reserve Fund the Fund Balances of FY 1981/82 with those $4,845,413.89 FY 1982/83 $1,273,868.00 154,000.00 233,800.00 1,962,950.00 $4,324,460.00 FY 1981/82 $1,276,018.00 135,000.00 337,950.00 513,130.00 V/M Massaro questioned why the Sinking Fund -Reserve Account is more this year than last year and Steve Wood said because the interest earnings will be higher for the ensuing year than they were in the prior year. Mr. Wood said the funds that are earned by interest are then transferred to the Revenue Fund. The City Manager referred to Steve Wood's memo of August 13, 1982 (See Exhibit A). She said there are;factors at regional levels that might have a positive effect on this budget which is prepared based upon the commitments of the Utilities as of July and August of the current year and represents coverage for the committed personnel services of the employees of the Utility and the City's obligations under the Large User Agreement, the 201 Program. Mayor Falck opened the Public Hearing. Melanie Reynolds asked if the rates would be Lowered because of the increased income to the Utilities. The City Manager said the rates are projected to remain the same and 1 - 9/10/82 /pm will not go up. Mrs. Reynolds asked how much the cost of the water and sewer has gone up since the City has taken over the Utility and Steve Wood said the initial rate has not changed, when the City purchased the Utility it adopted a rate Resolution at that time and the rate for single family and multi family homes has not changed since then. Mr. Wood said the only rate that has been changed is the commercial rate and homeowner's Association and"some irrigation charges. C/M Disraelly said it was his understanding that there would be no rate increased for five years because there would be surpluses built up in the first two or three years that would come into play at this time in the establishing of certain funds and especially in the bond issue, the five years will expire in October, 1984. C/M Kravitz asked if the water rates could not be reduced at this time and Steve Wood said that since the Utility is a consolidated entity, one must look at the retained earnings of each of the funds of the Utility. V/M Massaro asked if the work that the Director of the Utility has requested to have done would come out of these earnings and Steve Wood said most things of this nature would come out of this General Reserve Fund. V/M Massaro asked Steve Wood for the estimated consolidated retained earnings at the end of this year. Mayor Falck said it would be helpful if Steve Wood could take that balance and project it to the end of the five year period to show a consistently diminished amount to comply with the covenant. V/M Massaro agreed that this update would be most helpful. Leo Platz, an Aide to C/M Kravitz, said in reference to what Steve Wood has said, there must also be considered the factor of depreciation. Steve Wood said that depreciation as anon -operating expense is not budgeted. Mr. Platz also questioned with reference to the Sinking Fund -Bond Service Account, the amount is $1,273,868.00 and the interest income was only $45,000.00 which he felt seemed rather low. Steve Wood answered that those funds are Treasury Notes that are due 8/15/90 and were purchased for $1,261,000 and the face on them is $1,318,000. Mr. Wood said the $45,000 interest was through the.June Fiscal Agent's statement and since then there has been July, August and September and the recognition of that income is not a monthly process. Mr. Wood said they anticipate that they will collect $135,000 this year and $154,000 next year based on the interest factor and the discount purchased on the notes. V/M Massaro said this should be examined by Mr. Platz with the Finance Department and if he finds that Mr. Wood's explanations do not meet what he believes to be correct than he should consult Council with this. V/M Massaro said she appreciates anyone getting up and giving Council information but she wants to be sure that it has been checked into. Mayor Falck asked if Steve Wood would take the actual through July and project those through August and September between now and the second reading of the Ordinance. Mr. Wood said he would do this. Mayor Falck closed the public hearing with no further response and C/M Disraelly MOVED the ADOPTION of Temp. Ord. #999 adopting the Revenue Fund, Sinking Fund -Bond Service Account, Sinking Fund -Reserve Account, Renewal and Replacement Fund and General Reserve Fund for the Utilities West on first reading. SECONDED by C/M Krantz. VOTE: ALL VOTED AYE 2 - 9/10/82 /pm The City Manager said that the second reading on this Ordinance will be heard on September 22 during the course of the regular Council meeting. The Budget from Tamarac Utilities East will be discussed during this meeting as well. Mayor Falck adjourned the meeting at 2:10 F.M. 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