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HomeMy WebLinkAbout1992-08-10 - City Commission Budget Workshop Meeting MinutesCITY OF TAMARAC CITY COUNCIL BUDGET WORKSHOP MONDAY, AUGUST 10, 1992 Tape 1 CALL TO ORDER s Vice Mayor Schumann called the City Council Budget Wor s op to order at 9:00 a.m. in Conference Room #1, City Hall. PRESENT Mayor H. L. Bender (arrived at 11:17 a.m.) Vice Mayor Henry Schumann Councilman Norman Abramowitz Councilman Joseph Schreiber ABSENT AND EXCUSED : Councilman Irving Katz ALSO PRESENT : John P. Kelly, City Manager Dina McDermott, Assistant City Manager Mitchell S. Kraft, City Attorney Mary Blasi, Finance Director Carol A. Evans, City Clerk Morton Winter, Vice Chairman, Charter Board Phyllis Polikoff, Secretary City Manager Kelly said Council should review the proposed budget although they could not take any action because this was a Workshop. He read portions of his July 30, 1992 Fiscal Year 1992/1993 Budget Message to Council into the record (attached). He said the City refinanced three General Obligation and Water and Sewer Revenue Bonds which netted the City over $400,000 in additional interest over 18 months. Mr. Kelly read Moody's opinion which indicated the City managed their financial operations very well and they increased the City's Bond Rating from BAA1 to A. He said a garbage franchise fee would soon be imposed. Mr. Kelly said the recommended budget represented a 9.8% increase over the current years' budget. He read seven items from Page 3 which accounted for the majority of the increase. Mr. Kelly said Item 4 represented a 5% increase in the BSO contract which was in the last year of a five-year contract and within the contract was a two-year renewal option which applied only to the City. He said it was restricted to 5% in each of the two years and the City's rent up if BSO's did the same. C/M Schreiber asked if the rental charge covered maintenance at the BSO office and Dina McDermott said, yes. Mr. Kelly said he believed fleet maintenance costs for older vehicles could be reduced if Council approved the increase, employee health insurance premiums would increase 15% and last year it also was 15%. Mr. Kelly said the proposed beautification project on Commercial Boulevard would be the City's share if the City of Sunrise proceeded to make improvements from Pine Island Road to the Sawgrass Expressway. He said he hoped the City of Sunrise would do the maintenance for this project. Mr. Kelly said Data Processing was funded this current year with surplus funds but a chargeback was recommended this year. Mr. Kelly said the City presently contracted for air-conditioning maintenance and repairs and a proposed Senior Tradesperson would eliminate this. City Council Budget Workshop 8/10/92/PP Page 2 Mr. Kelly said several Departments were reorganized to augment the work and to provide more service and the City continued its expansion of the water treatment system. Mr. Kelly said the City implemented an in-house supervisory and customer -training program which saved a great amount of money funded for outside seminars and travel. He said other cities expressed their desire to join and to share the costs. Mr. Kelly said more revenues would come from parking citations when the City went to Broward County for this service. He said the City proceeded with the Public Services contract and construction was completed under budget and one month ahead of schedule. Mr. Kelly said the proposed 4% Cost of Living Adjustment (COLA) for Union employees and the 5% (COLA) for all Fire Union Employees would cost $234,453. He said the proposed 4% COLA for all Confidential, Supervisory and Managerial/Executive employees would cost $137,218. He said Section D on Page 10 was incorrect and a 4% COLA was proposed for the four temporary employees. Mr. Kelly said Moody's Opinion on Page 2 indicated anticipated revenues from the garbage franchise of $300,000 but the City anticipated an estimated $330,000 in revenues. Mr. Kelly said there were increases in the Building Department although the work and the number of permits issued did not increase. Mr. Kelly said although Council proposed a 6% increase in the rolled -back operating ad valorem millage rate, Council should consider 6.25% and the debt service would be increased from $20,000 to $100,000. Page 14, GENERAL FUND REVENUES V/M Schumann asked if Broward County taxes would be reduced because properties were assessed lower. Mr. Kelly answered this could not be guaranteed and C/M Abramowitz said Broward County would probably raise their taxes in.order to get the same income. Total Current_Property Taxes Ms. Blasi said with regard to current ad valorem taxes, Mr. Kelly recommended $6,461,728 over the roll -back rate and $15,000 was sent to William Markham's Office. She said the $6,461,728 represented 95% of the total tax levied and Mr. Kelly agreed. Total Sales and Use Taxes Ms. Blasi said the Local Option Gas Tax was not affected and V/M Schumann asked if Broward County collected delinquent ad valorem taxes and penalties. Ms. Blasi said, yes. Total Franchise Taxes Ms. Blasi said the City should receive $1,900,000 of the $2,000,000 budgeted for electric franchise fees. She said $140,000 was budgeted for cable TV franchise fees but the City should receive $151,000. She said FP&L's rates would be adjusted if they imposed an increase. Ms. Blasi said solid waste franchise fees would increase because a Residential Franchise Tax was implemented. Dina McDermott, Assistant City Manager, said the $160,000 represented franchise fees from the commercial waste haulers. Mr. Kelly said it was up to Council to determine what percentage rate they would charge the residents. Ms. Blasi said the towing franchise of $16,000 was awarded to City Council Budget Workshop 8/10/92/PP Page 3 Westway Towing. C/M Abramowitz asked whether the natural gas service would be extended further east. Ms. McDermott said she did not know at this time. Total License and Permits V/M Schumann said as of June 20, 1992, Building Permits dropped from $500,000 to $401,027. He asked about the status of Home Occupations and Mr. Kelly responded that he did not have any input at this time. Page 15 GENERAL FUND REVENUES Continued C/M Schreiber said cigarette taxes would drop due to the new State Law effective September 1. Mr. Kelly said there was a significant decrease in the number of smokers in City Hall. Tape 2 V/M Schumann asked if monies from the State included alcoholic beverage taxes and Ms. Blasi said she would research and advise. He said State Revenue Sharing indicated $689,892 as of June 20 and he questioned whether the could City anticipate another $500,000 by September 30. Ms. Blasi answered the figure might be less by the end of the year. Ms. Blasi said the balance for Alcoholic Beverage Licenses would come in by the end of the year. Ms. Blasi said the City paid Density Testing Charges (soil charges) on behalf of the developers and the developers reimbursed the City. Page 16, GENERAL FUND REVENUES (Continued) Ms. Blasi said Police Fees - Misc., represented revenue from fingerprinting and I.D.'s. She said Fire Inspection Fees were for new development and planning and Fire Annual Inspection Fees represented fees from commercial enterprises. She said the difference between Estimated and Proposed Annual was having only one Fire Inspector and budgeting for a second. Ms. Blasi said Parking Lot revenues came from the municipal parking facilities in the City. She said Recreation Activity, Summer Recreation and the After -School Program Fees should be combined. Total Miscellaneous Revenues Ms. Blasi said the difference between Estimated and Proposed Interest Income was due to low interest rates and some Bonds coming due in December. She said Interest Income -State Pool was combined Interest Income from the State Pool and from other sources and revenue from Rent/Lease City Facilities was from the BSO Sub -Station. Page 17 GENERAL FUND REVENUES Continued Ms. Blasi said Bus Bench Fees were paid annually and would increase to $5,000 and $50 was for each bench for advertising. She said Broward County would not receive any of these monies but they would get monies from the bus shelters. C/M Abramowitz asked for clarification of Building Education Assessments and Ms. Blasi said it was monies used by the Building Inspectors to continue their upgrading and training. She said the money came from a portion of Building Permits. Ms. Blasi said Building Maintenance Charges and the School Board City Council Budget Workshop 8/10/92/PP Page 4 Utility Reimbursements represented monies which came from BSO and for the Multi -Purpose Center. She said Administrative Service Fees were Utility West Funds paid to the General Fund for administrative services. She said the Property Tax Substitute was calculations of previous years gross revenues and service fees in the Utilities West Fund. C/M Schreiber asked if just the Finance Department provided service to Utilities West for Administrative Services. Ms. Blasi said this was extra administrative services such as police and fire. Total Fund Transfers Ms. Blasi said there was no franchise tax for telephones in the General Fund and the 1980 Fire Station Loan Fund was collateral- ized with franchise taxes from the General Fund to pay the Debt Service and whatever remained was transferred to the General Fund. C/M Abramowitz said there was an agreement that all franchise fees would offset the Debt Service. Ms. Blasi said any remaining balances would be transferred to the General Fund. Total Carrvover Funds Ms. Blasi said $797,587 would balance the budget but it would not be used because there were monies from the sale of the Old City Hall. She said the Fund Balance would increase an additional $650,000 in order that $1,500,000 could be budgeted for next year and approximately $500,000 was set aside as unbudgeted. Ms. Blasi reiterated that to -date, monies from the sale of the Old City Hall and FP&L had' not been touched and the monies from FP&L were drawing interest in an escrow account. She said they would not be used until the last permit was pulled. V/M Schumann asked if the monies from FP&L were included in the $1,500,000 and Mr. Kelly said, no. C/M Abramowitz said it would be better if the garbage vendor did the billing. Ms. McDermott said the vender could bid on billing the customer or letting the City do the billing. V/M Schumann called for a recess at 10:15 a.m. The Workshop reconvened at 10:22 a.m. with the exception of Ms. McDermott. He said everyone was present who was present before the recess. Editors Note: Ms. McDermott reentered the room at 10:25 a.m. Page 18, CITY COUNCIL Pa8 De artment Personnel Total Personal Services C/M Abramowitz asked if Health Insurance reflected the 15% increase and Mr. Kelly said, yes. He said the C.O.L.A. and the increased health insurance were the reasons for the $3,000 increase. Total Direct O eratin Ex enses #306 - Special Suppliers/Services Ms. McDermott said this represented funding for special activities for Council, miscellaneous programs, plaques and proclamations and was a catch-all account. #401 - Meetings and Seminars #542 - Dues and Memberships Mr. Kelly said these were self-explanatory. City Council Budget Workshop 8/10/92/PP Page 5 #57A, B, C, D & E - Expense Accounts for Council members Mr. Kelly said the figures stayed the same. Mr. Kelly reiterated the increase was due to the C.O.L.A. and the 15% health insurance increase. Paqe22 CITY MANAGER page Department Personnel Total Personal Services #120 - Regular Salaries #122 - Part -Time Employees Wages Mr. Kelly reiterated the C.O.L.A. increase reflected in #120 and the part-time employee reflected in #122 was Robin Thalenfeld. #161 - Longevity Pay Mr. Kelly said he was entitled to Longevity Pay. #220 - Pension Contributions #225 - Deferred Compensation Plan Mr. Kelly said Ms. McDermott opted out of the Pension Plan and into a Deferred Compensation Plan and #220 decreased and #225 increased. #230 - Health Insurance Mr. Kelly reiterated the proposed 15% increase. #301 - Gasoline and Diesel V/M Schumann asked why this Item indicated zero. Mr. Kelly said .to -date, the City had not been billed. C/M Schreiber asked why a budget would be amended after it was approved at a Public Hearing. Mr. Kelly said Council granted Ms. McDermott an increase in the middle of the year and funds were transferred from the Contingency Account into Mr. Kelly's budget. #471 - Duplicating Expenses/Chargers V/M Schumann asked why this Item indicated zero. Ms. Blasi answered that previously it was budgeted to General Services and to the individual departments and it was a charge -back from City Clerk or General Services to the individual departments. She said this was the large copier in the City Clerk's Office. Tape 3 C/M Schreiber asked why Council was permitted to exceed an appropriation. Ms. Blasi answered the General Fund included everything it would need for the year, plus a Contingency amount of $350,000. She said Council could transfer funds from the Contingency Fund into any line item and another department's budget would be reduced to offset that transfer. Mr. Kelly mentioned the $250,000 regarding FP&L and said the funds could not be used until a public hearing was held to amend the budget. #440 - Rent/Lease Machinery/Equipment Mr. Kelly said this was the cost for the Copier used by his and the City Attorney's Departments. He said it was also for Ms. McDermott's vehicle. City Council Budget Workshop 8/10/92/PP Page 6 #463 - Office E ui ment Repairs 5 - Office Supplies #540 - Publications #542 - Dues and Membership #543 - Educational Expense Mr. Kelly said these Items were self-explanatory. Mr. Kelly said the net increase was approximately $7,000 and most was due to the proposed 15% increase in health insurance. Page 24 CITY CLERK Page 89t De artme;7t Personnel Total Personal Services #120 - Regular Salaries (Personnel Changes) Carol A. Evans, City Clerk, said she proposed that Patricia Marcurio, Office Manager, should be changed to Office Manager/ Records Manager and no additional monies were involved. Ms. Evans said she proposed upgrading Nancy Ramoni from Electronic Publications Specialist to Electronic Publications Specialist II with only the 4% C.O.L.A. and no additional monies. She said she proposed upgrading Karen Jackson from Secretary to Electronic Publications Specialist I with a 4% increase in addition to the C.O.L.A. increase. C/M Abramowitz said he disagreed that Ms. Ramoni should not get an increase. Mr. Kelly said she was making more money than Ms. Jackson because Ms. Ramoni was in a higher range. C/M Schreiber asked what the Electronic Publications Specialist I and II did. Ms. Evans said, desktop publishing on the Apple Computer and other departments also requested data to be typeset. Mr. Kelly said money was saved because Ms. Ramoni and Ms. Jackson did the work in-house instead of having to send work out to be typeset. Ms. Evans said she proposed that Belle Vitrofsky should come into the Department as a Temporary part-time Secretary. C/M Schreiber disagreed and Mr. Kelly said it would be better if Ms. Vitrofsky was supervised by the City Clerk but she was available if the Charter Board needed her. #161 - Longevity Pay Mr. Kelly said Ms. Evans, Ms. Marcurio and Phyllis Polikoff were entitled to Longevity Pay. #175 - Incentive Bonus Mr. Kelly recommended that this should be eliminated. #220 - Pension Contributions C/M Abramowitz asked why there was a vast difference in the figures and Ms. Evans said it was based on salary. She said Ms. Polikoff was transferred into the Department. #230 - Health insurance #270 - Benefit Options Mr. Kelly reiterated the proposed 15% health insurance increase and that Benefit Options applied to all employees in the Department. Total_ Direct Operating Expenses City Council Budget Workshop 8/10/92/PP Page 7 #306 - Special Supplies/Services Mr. Kelly said this covered microfilming, Federal Express, phone relocations, notary renewals, minute paper and tapes. #340 - Other Contractual Services Mr. Kelly said this covered the Municipal Code supplements, Bestway Archives and Dial -A -File. #492 - Elections C/M Schreiber asked why this increased $25,000. Mr. Kelly said two elections would be held in 1992. Ms. Evans agreed. C/M Schreiber asked if the matter of the new voting Precinct had been finalized and Ms. McDermott said, yes, and the existing City map showed the correct Districts. Ms. Evans said her budget was increased due to the election in November and the proposed 15% increase in health insurance. V/M Schumann asked how much would an election cost and Ms. Evans said it would depend on the type of election. She said if Jane Carroll handled the election, the City paid a portion of the Precinct cost but if the City handled the election, it would cost more. Paae 79, GENERAL SERVICES Total Direct Operating Expenses #440 - Rent/Lease Machinery/Equipment Ms. Evans said this was for the mail machine and this decreased because the City owned the equipment and did not have to pay rent. #463 - Office Equipment Repairs Ms. Evans said this represented the maintenance contracts for the mail machine, scale, copier and Fax machine. #471 - Duplicating Expenses/Charges V/M Schumann asked why a negative amount was indicated. Ms. Blasi said this was a charge -back to the different departments which reduced the City Clerk's budget. Pa a 80, TELECOMMUNICATION SERVICES Total Personal Services Ms. Evans and it covered all expenses relating to Lillian Marcus, Switchboard Operator. #174 - Paid Annual Leave V/M Schumann asked why this Item went from zero to $500. Ms. Blasi said this was an estimate based on how much sick leave would be used during the year and how much would be left at the end of the year. Total Direct Operating Expenses #410 - Telephone Ms. Evans said this was the cost of the monthly telephone bills for SunCom and Southern Bell and the City owned the telephone equipment in City Hall. City Council Budget Workshop 8/10/92/PP Page 8 #507 - Repairs/Maintenance Telephone Equipment Ms. Evans said this was the maintenance agreement with RealCom and was lower because the telephones were changed from Rolm. Ms. Evans said the overall budget was year. Total Indirect Operating Expenses #59C - Purchasing/Stores Services #59P - Insurance Service Charges slightly lower than last V/M Schumann asked why these amounts were zero and Ms. Blasi responded that internal charge -backs in each department were being done through Telecommunications Services in the General Fund. Page 82 COMMUNICATION SERVICES Total Direct 0 eratin Ex enses #410 - Telephone Ms. Blasi said this was Southern Bell's service agreement on the repeater for Police service to each of the three locations. #440 - Rent/Lease Machinery/Equipment Ms. Blasi said these were discs belonging to the City for the Repeater Stations in BSO's communication system. C/M Abramowitz said the discs were part of the City's system before Police services were contracted to the BSO. V/M Schumann asked if BSO was going to 800 mg. Mr. Kelly said he did not know at this time but would pursue this further with Col. Werder. Ms. Blasi said 800 mg. was the central district for the Fire Department. Ms. Blasi said each of the three locations paid $720 per year. Mr. Kelly said the City was responsible for maintaining the equipment. Page 26 FINANCE Page 90, Department Personnel Total Personal Services #122 - Part-time Employees wages #155 - Temporary Employees wages V/M Schumann asked why #122 indicated an increase. Mr. Kelly said this was an error and Temporary and Part-time employees would get an increase. Tape 4 V/M Schumann asked why these were zero and Ms. Blasi answered there were temporary employees in 1991 but no temporary employees this year. Ms. Blasi said Brenda Stine came out of Payroll to do more accounting and Ruth Krebs was doing Payroll. She requested Ms. Krebs be reclassified to Paymaster with a 5% increase for doing more work in addition to the 4% C.O.L.A. Editors Note : Mayor Bender arrived at the meeting at 11:17 a.m. #230 - Health Insurance C/M Schreiber asked why this decreased. Ms. Blasi said one 1.1 City Council Budget Workshop 8/10/92/PP Page 9 employee decreased his Health Insurance and one employee went from family to single coverage. Total Direct Operating Expenses #320 - Audit & Accounting Services C/M Schreiber asked why this increased and Ms. Blasi said it represented the contract with Grant Thornton, Auditors, and an additional cost to do a Grant report. She said the City agreed to a two-year extension and the cost was negotiated. #340 - Other Contractual Services Ms. Blasi said this was for outside auditing services and the franchise agreement for cable television was presently being audited. #402 - Travel - Other C/M Abramowitz said an employee should shop around to get the lowest possible fares for hotels, etc. He suggested that the City should have one agency to make all travel arrangements where Municipal employees would get Government rates. Mr. Kelly said he would look into C/M Abramowitz's request for one travel agency to make arrangements for all City seminars and conferences. #402 - Rent/Lease Machinery/Equipment Ms. Blasi said this was the lease for the copier and the safety deposit box. #463 - Office Equipment Repairs #470 - Printing and Binding #510 - Office Supplies #515 - Office Equipment - Minor #518 - Computer Supplies #519 - Computer Software #540 - Publications #542 - Dues and Memberships #543 - Educational Expense Ms. Blasi said these Items were self-explanatory. Page 33, CHARTER BOARD Total Personal Services #155 - Temporary Employees Wages #210 - FICA Taxes Morton Winter, Vice Chairman of the Charter Board, said these covered expenses for Belle Vitrofsky, Secretary. Mr. Kelly suggested that Ms. Vitrofsky should be in the City Clerk's budget and assigned to the Charter Board as needed. ...,,, penses Total Direct Operating Ex a #306 - Special Supplies/Services Mr. Kelly said Muriel Davis, Charter Board Chairwoman, proposed $2,000 for a population study regarding Redistricting. Mayor Bender suggested leaving Ms. Vitrofsky in the Charter Board Office and having the work brought to her by the City Clerk. Mr. Kelly said the employee was moved budgetarily and not physically and it would not impact the Charter Board. He said all calls would go through the Front Desk Receptionist if the Charter Board Office was empty and the employee would be supervised in the City Council Budget Workshop 8/10/92/PP Page 10 office where Minutes and notices of meetings were prepared. #306 - Special Supplies/Services Mayor Bender said the City's population was approximately 47,000 and he reminded Mr. Kelly to send a letter to the Census Bureau. Mr. Kelly said in his opinion, it was inappropriate to pay for a population study out of the Charter Board budget and it should come out of the Planning Department or Council should authorize it. C/M Abramowitz said residents objected to the Charter Board being involved with the Redistricting Committee. He agreed that a population of 50,000 or more was beneficial with regard to Federal Grants. V/C Winter said it would cost $5,000 for FAU to do the population study. #312 - Legal Services Mr. Kelly said Paul Novack, Charter Board Attorney, was doing a fine job. He recommended $4,000 and V/C Winter proposed $5,000. Mr. Kelly said he did not feel comfortable issuing a blank check. He said a check was signed after the Charter Board approved an expense for legal services and Council had no control over those expenses. He suggested that all expenses incurred by the Charter Board Attorney should go directly to the Council for approval. V/C Winter said he did not foresee the present Charter Board bringing any lawsuit against the City and $5,000 was more realistic. Mayor Bender said the Charter obligated the City to pay all legal expenses. Mr. Kelly said the onus would be on the Charter Board to support any expenses they incurred and the Charter Board was the only Department which did not go before the public with regard to their budget. C/M Schreiber said if the Charter Board needed more money to pay legal expenses, they could go to the Council. #463 - Office Equipment Repairs Mr. Kelly said this was self-explanatory. #47.1 - Duplicating Expenses/Charges Mr. Kelly said this should be zero because the City Clerk's budget paid for this Item. #490 - Advertising C/M Abramowitz asked what this represented and Mr. Kelly said the Charter Board wanted to advertise seasonal greetings but to - to -date, no monies had been spent. C/M Abramowitz asked if anyone objected to adding the members of the Charter Board in the same advertisement as Council. Tape 5 Mayor Bender directed Mr. Kelly to include all elected officials when seasonal greetings were advertised. Mr. Kelly said this type of advertising should come out of Council's budget. Mayor Bender suggested transferring the $1,000 to the Council budget. C/M Abramowitz asked about the $1,000. V/C Winter said it would be for advertising for an Attorney. Ms. McDermott said the advertisement for the Charter Board Attorney was paid out of the City Clerk's budget. City Council Budget Workshop 8/10/92/PP Page 11 Page 34 PUBLIC INFORMATION BOARD PIB Tota l Direct Operating__ Expenses #470 - Printing and Binding Ms. McDermott said this was the cost to print 10 issues of the Tam -A -Gram and she could not foresee any increase from the printer. C/M Abramowitz said he hoped the cost would be reduced. Ms. McDermott said 17,000 issues were printed each month and more would be printed because over 46,000 residents wanted the paper. C/M Abramowitz asked the new PIB to get actual numbers on the number of Tam -A -Grams used. C/M Schreiber said half of the issues he picked up were returned for recycling and he suggested that issues be hand -delivered instead of leaving them in each clubhouse. Mayor Bender said many residents went on vacation during the summer and it was not feasible to print 17,000 issues during the summer months. Mr. Kelly distributed a draft of the next issue of the Tam -A -Gram and he asked for input from Council. Mayor Bender said he needed clarification on the $3,000 and whether it pertained to daily, monthly or yearly. Mr. Kelly said he would distribute Council's comments for discussion. Page 35 ECONOMIC DEVELOPMENT OFFICE Total Direct 02erating Ex enses #589 - Miscellaneous -Other V/M Schumann asked what this was for. Ms. McDermott said for pins, brochures, etc., and it was administered by Mr. Kelly and herself. #490 - Advertising V/M Schumann asked if any advertising would go to other states. Mr. Kelly said, yes. Ms. McDermott said advertising would be inserted in some national publications. V/M Schumann said the State of Kentucky offered a tax break for industries coming into that State. C/M Abramowitz said groups in Broward County were charged with bringing industry into Broward County and Ms. McDermott said she and Mr. Kelly were members of a group. C/M Abramowitz said the City of Tamarac could not give a tax break to an industry coming into the City and V/M Schumann said only the State could do this. Mr. Kelly said there were people interested in the shopping center on Nab Hill Road. He said $2,500 would go towards the Tamarac Chamber of Commerce to promote economic development in the City and Mr. Kelly said 400 acres in Land Section 7 were zoned Light Industrial, Commercial and Commercial Office. He said road impact fees could build roads in Land Section 7 although no other utilities were there and Mr. Pritzker was obligated to build roads in the southern portion of Land Section 7 by 1994. Ms. McDermott said development in because residents on the northern to go through to McNab Road. Pace 38, CONSUMER AFFAIRS BOARD NNNN� III.I I NII�Ng1191�N.. Land Section 7 would slow down side did not want Hiatus Road City Council Budget Workshop 8/10/92/PP Page 12 Total Direct Operating Expenses #510 - office Supplies Mr. Kelly said this was self-explanatory. Page 39,_ VETERANS COMMITTEE III ■ I.lul IIUI Total Direct Operating Expenses #589 - Miscellaneous -Other Ms. McDermott said this Committee ran picnics for the veterans. Mayor Bender said this should budget should be left alone. Page 78, SOCIAL SERVICES BOARD Total DirectOperating eratin Expenses #402 - Travel -Other Ms. McDermott said this reimbursed the drivers for travelling expenses. #473 - Auto Repairs/Parts #510 - Office Supplies Ms. McDermott said these were self-explanatory. Total Grants and Aids #810 - Area Council on Aging Ms. McDermott said every agency requested funds and was denied. Mr. Kelly recommended $33,000 and V/M Schumann explained that the Federal Government gave $9 for every $1 from the City. He said these were fair -share payments and not donations for services rendered. #825 - Early Childhood Development Mr. Kelly recommended $4,404 this year. He said many people in Tamarac were treated. C/M Abramowitz said the State held a public hearing with regard to Alzheimer funding and a Committee voted to put all Alzheimer funding towards respite care. He said most Alzheimer patients lived in Tamarac. He said the State cut 8% from the Area Agency on Aging and whose responsibilities increased dramatically because there no longer was an HRS. Mr. Kelly said Area Council on Aging increased $13,000 and V/M Schumann said it would continue to increase every year. Page 83, NON -DEPARTMENTAL Total Indirect 22erating Expenses #59A - Data Processing Services #59C - Purchasing/Stores Services #59E - Fleet Maintenance Services #59P - Insurance Service Charges V/M Schumann asked if these figures pertained to the entire City. Ms. Blasi said, yes, and was the General Fund portion. She said last year these figures were in each Departmental budget. Total Direct Operating Expenses #49B - Unemployment Compensation Claims City Council Budget Workshop 8/10/92/PP Page 13 V/M Schumann asked what this was and. Ms. Blasi said it was the standard amount budgeted each year although $5,000 was spent to date. Ms. McDermott said the money was budgeted if someone went on unemployment. Ms. Blasi said the City was mandated by the Department of Labor to pay the bulk of unemployment funds if an individual left the City to work elsewhere and was let go by the second employer within three months. Tape 6 Mayor Bender recommended amending the amount to $10,000. Page 84 NON-DEPARTMENTAL(Continued) Total Grants and Aids #830 - Grants -Matching Funds C/M Abramowitz asked how realistic this figure was and Ms. McDermott responded that the entire amount would be spent and next year's figure would also be entirely spent. C/M Abramowitz said the Broward League of Cities was very eager to give away Grant funds. Total Non -Expense Expenditures #98C~- Advances to Other funds MS • Blasi said this was the transfer Dry inai4 F�eten€ion Fund and it would ouf of i. mpact --fees. Pa e'$3"--NbN-DEPARTMENTAL Continued from Contingency for the reimburse the General Fund Total Indirect Operating Expenses Continued #59C - Purchasing/Stores Services #59E - Fleet Maintenance Services #59P - Insurance Service Charges C/M Schreiber asked why these amounts were so high and Ms. Blasi responded they were Internal Service Funds and were in lieu of covering each Department individually. C/M Abramowitz said all Departments were charged individually in the past. Ms. Blasi said the total in the Fleet Services budget was charged back to General Funds -Utilities West based on the number of vehicles. Ms. McDermott said if Council approved the purchase of new vehicles, the older vehicles could be retired and repair costs would decrease. Page 8.5, NON -DEPARTMENTAL (Continued) Total. Direct Operating Ex enses #495 - Store Emergency Preparedness Mr. Kelly said money was not budgeted for this Item. Page 84, NON -DEPARTMENTAL Continued Total Direct 02erating Ex enses #524 - Protective Inspections Ms. Blasi said if permit fees did not come in, Inspectors could City Council Budget Workshop 8/1.0/92/PP Page 14 not attend meetings or seminars. Page 85 NON -DEPARTMENTAL Continued Total Non -Ex ense Ex enditures Continued #588 - Fund Balance/#975 - Contingency Ms. Blasi said $350,000 was budgeted but $160,000, representing advances for the storm drainage system, was transferred out leaving a balance of $83,313. Page 52 AMBULANCE SERVICES �INIAA� Total Operating Expenses #334 - Ambulance Services C/M Abramowitz said six cities in Broward County would terminate their ambulance contracts. Mr. Kelly said this matter would be discussed after Council had an opportunity to review the data submitted by Ms. Blasi and City Attorney Kraft could then be given directions with regard to the action to take. C/M Schreiber asked if Medics Ambulance was obligated to take Medicare assignments and Ms. McDermott said, no. Mayor Bender ADJOURNED the Budget Workshop at 12:52 P.M. 11*211 A CAROL A. EVA S- CITY CLERKµ -- r-I KELLY r ager 5 Northwest 88th Avenue iarac, Florida 33321-2401 July 30, 1992 The Honorable Mayor and Members of the City Council City of Tamarac 7525 Northwest 88th Avenue Tamarac, Florida 33321 Re: 1992/1993 Budget Message Phone (305) 722-5900 Fax (305) 722-4509 Members of the City Council: In accordance with Article VII, Section 7.02 of the City Charter of Tamarac I hereby submit theproposed Operating and Capital Budget for all funds for fiscal year beginning October 1, 1992, for review and consideration. This budget document represents the single most important report presented to the City Council. It is primarily intended to establish an action -oriented financial plan for the delivery of City services. Importantly, it also serves as an aid to the residents in providing a better understanding of the City's operating and fiscal programs. This budget is a financial strategy that sets forth program priorities and the allocation of resources available to accomplish our goals during the upcoming fiscal year. The City of Tamarac's budget is developed through the combined efforts of staff, elected officials, and citizen participation. THE CITY OF TAMARAC IS AN EOUAL OPPORTUNITY EMPLOYER AND DOES NOT DISCRIMINATE ON THE BASIS OF HANDICAPPED STATUS Local Ecommic Outlook The economic recession has played a major role in significantly reducing, not only the City's share of State Revenue Sharing and building revenue, I but the City's assessed property values. The preliminary assessed property valuation showed a 4.8% decrease in current commercial and residential property values. New construction and additions in the City of I $22,157,490 in 1992 reduced the total decrease in value to 3.2%. Using the current operating millage rate of 4.4603 the City would experience a decrease of approximately $203,000 in current ad valorem tax revenue in assessed property values due to these reductions. The City has held the line in spending and has vigorously searched to increase available revenues without affecting our level of services to the citizens and charges to them. The City Administration in conjunction with the Investment Advisory Board forecasted lower interest rates and invested accordingly. This foresight and wise investment decision netted the City over $400,000 in Additional interest returns over the last eighteen (1-8) months, as compared to what the City would have received if investing solely in the State Investment Pool. Recently we have completed the refinancing of three of the City's four (4) outstanding General Obligation and Water and Sewer Revenue Bonds. Interest rates are the lowest since the early 70's. The Fre s e n t value savings of this refinancing is $1,155,000. The City of Tamarac will save approximately $240,000 each year for the next four (4) years and $38,000 annually for an additional ten (10) years. Moody's and Standard and Poors have increased our General Obligation Bond Rating from Baal to A, and BBB to A minus, respectively. Moody's hits renorled The . Oninie (*, dX:j N"Well managed financial operations, supported by limited borrowing requirements and the above average wealth of rits sizable retirement population, support the rating revision to A from Baal. The mostly developed nature of the City and the constriction in tax base as a result in the slowdown in construction and lower resale values are noted, but the City's ample available taxing margins roffset this as a potential area of vulnerability." ' �slv�eis lMeodv'sl: The above average wealth of the city's sizable retirement population is evidenced in the low poverty levels and per - capita income above that for the state. This largely developed city still has a fair amount of developable land which would benefit future tax base growth. The city, however, is expected to experience a decline in the fiscal 1993 assessed value as will most of the county, because of the falloff in construction and the impact of the current recession. The above average seasonally unadjusted unemployment rate is affected by slowdown in construction and general economic environment element. The city's capital improvement element submitted in relation to the requirements under the state's Growth Management Act, identified about $15 million in capital needs from 1991 to 1996. Some of those projects have been done with current funds, and aside from some larger water projects, the city anticipates no capital borrowing requirements at this time. Financial operations have been well managed with satisfactory cash and equity. Despite the budgeting of accumulated surplus in the current fiscal year, the city expects to add to General Fund balance with the help of the sale of the old city hall for $525,000 in fiscal year 1992. The expected decline in the tax base for the upcoming fiscal year would result in an anticipated loss of about $250,000 in property tax revenue. The city will be imposing a garbage franchise fee which will generate about $300,000 gross revenues for general operations to help offset the imbalance. Also, the city is one of the few in the country that does not impose a utility service tax which would reportedly generate close to $4 million. Finally, ample avgilable taxing margins are additional elements which afford a level of comfort related to financial flexibility and revenue options". -2- The recommended Fiscal Year 1992-93 Budget of $17,485,922 represents a $1,564,392 or 9.S% increase over the current years budget. , T The-LDUming items com;dSe the Majority of this increas9l 1. Internal Services Fund Chargeback Increase $451,408 2. Cost of Living Adjustment Increase for Employees $234,188 3. Increase of Grounds Maintenance/Landscape Beautification Personnel and other General Fund Personnel $221,248 4. Increase in Broward Sheriffs Office Contract (5%) $219,979 5. Increase in Capital Improvements & Equipment $188,933 6. Estimated Increase of 15% in Employee Health Insurance Premiums $ 97,776 7. Increase in Materials for Landscaping/ Beautification Projects �� TOTAL $19499,307 (95% of total increase) The large increase in the Internal Service chargebacks is the result of the elimination and reduction of certain fund chargebacks in the current year due to surplus funding availability that is no longer available for Fiscal Year 1992/93. During the current year the Management Information Systems BudgeL-of_12-b0,000 was funded completely -with --available -surplus monies. Thi -upcoming -budget"year - these funds -are -not --available .(as in the past) and a $194,000 chargeback from General Fund is r'equued. An increase in chargebacks for Fleet Services and Insurance Services of $106,000 and $119.000, respectively, is due to increased costs in these areas. The cost of living adjustment increase of 4% for General Employees and 5% for Fire employees is a negotiated union contract requirement. l Confidential, Supervisory and Managerial personnel have also been budgeted for a 4% cost of living adjustment. -3- L1 Proposed new positions and their related costs are listed in the budget summaries on Page 5 of this document. Seven (7) of the eight (8) proposed positions are allocated in the Public Works Division with four (4) maintenance workers in Grounds Maintenance/Landscaping Beautification, one (1) field superintendent, one (1) crewleader for City Hall Operations and one (1) senior tradesperson to handle our air conditioning maintenance and repairs. This will eliminate our air conditioning maintenance contract of $39.000 annually. A recreation activities supervisor is proposed in Parks and Recreation to accommodate the expanded programs available to the adults and children of Tamarac. The Broward Sheriffs Office contract with the City increases by five (5) percent or approximately $220,000 for fiscal year 1992/93. This is the last year of a five (5) year contract with BSO. Increases in capital equipment and improvements total approximately $189,000. A listing of all of the capital items proposed in the budget is included in the Budget Summaries on page 8. These improvements and capital items are much needed and have been delayed for several years due to budget constraints. There is no longer the option of postponing the majority of these capital items. The budget contains a projected increase of 15% or $98,000 for employee health insurance premiums. The City has not received bids for fiscal year 1992/93 as of this date, but we are expecting approximately a 15%-20% increase in rates. The proposed budget also contains an increase of $86,000 in much needed landscaping and beautification projects. There is $50,000 proposed for Commercial Boulevard West landscaping and $20,000 for irrigation. These projects enhance the beauty and aesthetics of Tamarac. We have continued to maintain a basic budget providing increased level of service at the lowest service delivery cost. We have placed more emphasis on revenue -producing and cost-cutting solutions to balance the budget and maintain a low tax rate. Last year, we were the only Broward County Municipality to decrease its Ad Valorem tax rate before the rolled back rate for Fiscal Year 1991-92. i -4- i Fortunately, Tamarac has maintained a realistic and conservative budget each year. But during these difficult times, we must re -trench even further and invest in our existing resources to guarantee our future. Our key resource is our employees. Without them we would not be able to do so much more with to much less. Presently we have revamped core job dimensions of each individual employee and provided people with the opportunity for more autonomy, ' responsibility, and feedback. These efforts have helped to produce better internal work motivation, high quality performance and lower absenteeism. The key to this continued success is streamlining the duties and responsibilities of our employees and acknowledgement and recognition of their efforts and accomplishments. Our failure to provide the opportunity for reward and growth stifles our organizational ability to promote mechanisms and programs to insure that employees will be properly trained, evaluated and promoted fairly. This is a significant area that we must consider in preparing this budget and all future budgets. We need to focus on our future, establish the City's long-term plan and set goals and objectives to achieve that plan. Where are we going next year? The next five years? The next ten years? What key services are we to provide? At what level? At what cost to the resjdents? Sgniticant &compjIshMSnt,; There were several significant accomplishments that improved the general operation of the City during 1991 /92. The following departments were reorganized and streamlined to enhance the work effort and to provide increased levels of service. I • Engineering Department • Public Works Department (and all existing divisions) • Parks and Recreation Division • Utilities Department -5 - These departments were restructured and reorganized into an all inclusive department now called the Public Service Department. The is run by one Assistant City Manager/Depaen Head and eacDhe div s on rtmis managed by an operations manager. The Public Service Department has redefined work assignments, realigned dutiesand responsibilities resulting in a greater efficiency. For example, i there s now a total concentrated Fleet Service Division, the management of the fleet is centralized in one office. Vehicles and equipment assignments are organized through a master control system. A new Canals Division was created to maintain Tamarac's waterways and canals. The City now does chemical spraying to maintain and keep the waterways clean and free of debris. Another significant accomplishment is the mtin„u-ed expansion of our water treatment system. Phase II for the expansion was authorized by the City Council in December 1991. We are in the construction process now. This Phase II project will provide the additional eight million gallon water softening capacity that we need to serve the City's projected build -out population. During the current year, the City negotiated with Broward County Utilities for an early release of wastewater treatment reserve capacity, thus saving the City $60,000 in leased wastewater treatment capacity fees. We have whad another successful year in obtaining private foundation funding and grants from various sources. In 1991/1992 we received over $500,000 in funds. 1292 $ 39,634 Tree Trust Program (Nob Hill Beautification) $ 10,400 EMS Pa tient Extrication Equipment Program (County) $ 10,300 EMS Community Safety and injury Prevention Program (County) $ 10,150 State EMS Continuing Education Skills - training for fire personnel from Hazardous Educational Material Handling to Air Ambulance Safety. $284,046 Five Cities Group Recycling - Year IV Grant Funding $ 27,714 Five Cities Group - Year IV Additional Grant { Reimbursement $ 30,000 Tri-Cities Commercial Recycling (Additional Funding) $ 32,119 Department of Community Affairs Local Government Land Development Regulation Assistance Program $10,000 Florida irrigation Society - irrigation Hardware (BECO) In 1991/92 the City Administration was successful in the creation and implementation of several new and innovative city programs to generate additional revenues. These programs are as follows; 1. Public Service Tax on Gas (projected annual revenue 1991/92 •$60,000) 2. Photocopy charge ordinance (11.8. 4.21—received to date) -7- 1991 1991 III It 3.' ' Lien searches ordinance 1991 (ILM—roceived to date) 4. Automated Parking Ticket System 1991 (2�.2g4 received to date) S. Identification Card Fee Increase 1991 (S 3200 difference between June 24, 1991 to date) 6. Contract negotiation and implementation of 1992 Bus Bench Program (projected annual revenue $10,000) 7. Fingerprinting increase in . fees - ($3, .200 1991 received to date) The in-house supervisory and customer -service training for all employees continued at a growing rate in 1991/92. The training program was facilitated by Assistant City Managers and Department Heads. Guest speakers from other governmental agencies also assisted. �onsTIMM M, 1. The City's investment strategies have increased its interest return with approximately a $300,000 annual increase in investment earnings over the State Administration Pool,returns. 2. The City Clerk's Office is responsible for monitoring the model sales permit renewals on a six month -basis. This renewal procedure has generated $11,540 in additional revenues. 3. Through aggressive enforcement, the Code Enforcement Department collected over $10,000 in delinquent fire inspection fees. This -function is performed on a daily basis. 4. We performed a sweep of all businesses this past year that netted over $20,000 in occupational license fees that were not reported by businesses. This also had a trickle down affect in the -building department by generating revenue for building permits for certificates of occupancy. .g- 1 • 1 \ / • 1 • • 1 • • • • Parking Citations $ 27,060 False Alarm Fees $ 2,175 Fingerprinting $ 4,356 Tamarac's focus has been to expand the quality of life for our residents through additional facilities or services. In keeping with this tradition we completed the following projects: 1. Completion of Multi -Purpose Center and right -turn lane on University Drive into Multi -Purpose Center. Received Certificate of Occupancy on schedule. 2. Coordinated construction of Public Service Administrative Complex with architect and contractor. Construction was completed under budget and one (1) month ahead of schedule. 3. Initiated and coordinated construction of four (4) tennis courts at Tamarac Sports Complex. 4. Implemented Scholarship Program . for Children's Recreation programs. 5. The Recreation Division has responsibility for the operation of the Multi -Purpose Center. Rental space and non-resident revenues has increased. A fitness room provides residents with equipment equalled only by health clubs. This expansion has caused the division to develop policies for facility use and rental. 6. The hard-pressed economy has dictated the need for new concepts in programming. A low-cost, on -site summer camp will be offered for those needing care, but unable to afford the standard camp. Our goal is to provide recreational opportunities to all residents, regardless of their means. 7. Capporella Park, Wildlife and Veterans Park - Additional landscaping was installed for these areas. We will continue to monitor areas for trash, vandalism and special projects. III 8. Started a community mulching/composting program. This program allows residents to dispose of their yard clippings and branches. We take all newly created mulch and use in our beautification and landscaping programs. ['oet Factors to Ae egl3sIdered during hIldget development; The following is a list detailing some of the major cost considerations when Preparing the fiscal year. 1992*93- budget. A) A 4% cost of living adjustment for all General Union and a 5% cost of living adjustment for all Fire Union employees had been negotiated last year amounting to an increase in the General Fund Budget of $172,721 and Utility West Fund Budget of $61,732. B) A 4% cost of living adjustment for Confidential and Supervisory employees is proposed increasing the General Fund Budget by $31,682 and the Utility West Fund Budget by $13,222. C) A 4% cost of living adjustment for all Managerial/Executive w employees is also proposed increasing the General Fund Budget by + $29,785 and the Utility West Fund Budget by $2,528. D) No increase proposed for temporary employees. E) Due to the excellent investment return of the City's Pension Plan in 1991, the Actuaries have not required an increase in the employees contribution for the General and Fire Employees. The budget contains an unchanged contribution of 8.76% and 13.79% respectively. F) A projected 15% increase in health insurance cost has been included in all departmental budgets. This is an increase of approximately $98,000 to the General Fund and an increase of approximately $20,000 to the Utility West Fund. -10- I IM I The proposed budget contains a 6.25% increase in the rolled -back operating ad valorem millage rate of 4.6851 ils and a 3.1 % decrease in the rolled -back debt service millage rate. A, colnotte. analysis of the City's assessed property values and current and proposed ad valorem millage rate can be found on page 2 of the budget summaries in this document. Each percentage increase in the rolled -back rate constitutes $60,800 in ad valorem revenue. Due to a decrease in current residential and commercial assessed property values of approximately $68,000,000 or 4.9% of the total assessed property value of the City, the proposed operating millage rate of 4.9781 is 11.6% greater than the current operating millage rate of 4.4603 mils. This year we are proposing to assess a 15% Franchise Tax on the Solid Waste Haulers for Residential Garbage Service. This will provide the General Fund with an estimated in additional revenues for the General Fund. Without this revenue the millage rate would need to be increased an additional 5.5%. The recession has stagnated both State Shared Revenues and Building Revenues. The estimated receipts for fiscal year 1992/93 are constant with the current year and conservatively projected. This year the City received $525,000 for the sale of the old city hall. This is a one-time revenue source and is not available in fiscal year 1992/93. The proposed budget contains a $1,500,000 appropriation in fund balance to balance the budget for fiscal year 1992/93. This compares to a $793,587 appropriation of fund balance in the current year. The following is an analysis of the estimated fund balance in the City's General Fund. Projected Increase Appropriated F�Spl in Fucal Yew Total Projected Balance Pend Balance L^31122 Fund Balance Fiscal Yew Fund Balance 9130/21 211.413Z 122219.3 10f1192 S650.000• i 1.350.523 *Due to age of Old City Hall i2.000.523 $1,500,000 $500,523 -11- LI �J 1- L 11 Government Accounting professionals, bond raters and others often use a "rule of thumb" that a minimum of 5 percent of annual operating expenditures should remain in unappropriated, undesignated Fund Balance. Applying this minimum would require that $875,000 be maintained as undesignated. We have estimated an undesignated, unappropriated fund balance of $500,523 which is 2.9% of annual operating expenditures. We must not designate any additional fund balance monies to balance the budget. • The need to establish reserve funds as protection against further possible revenue short falls. • The need to establish funding for a variety of important projects throughout the City including street resurfacing and drainage. • The need to provide employee benefits and salaries at competitive levels to maintain qualified staff. -12- F� Contained herein is the detailed budget for Fiscal Year 199211993. _ Overall, with due consideration to this depressed and depressing economic circumstances, I am pleased to be able to tell you that the proposed budget provides an adequate level of service with some modest but necessary improvements. It is essential to note that all areas of the budget have been reviewed and scrutinized closely. Most of the operating budgets have been cut back and 1992/1993 will be yet another tight year. It must be acknowledged that a great deal of effort was expended by the City Administration and Department Heads to limit spending in all areas of the City Operations during the current year. The preparation and formulating of this document could not have been accomplished without the assistance and dedicated efforts of Department Heads and their support staff. All questions relating to the budget should be referred to my attention. Council meetings will be held to review, in detail, the proposed budget document. Respectfully submitted, C7ohn P. Kelly City Manager ]PK/DMM/MCB/bjl 1 -13-