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HomeMy WebLinkAbout1992-07-30 - City Commission Special Meeting MinutesCity Council Special Meeting 7/30/92/KJ Page 1 CITY OF TAKARAC CITY COUNCIL SPECIAL MEETING THURSDAY, JULY 30, 1992 CALL TO ORDER: Vice Mayor Schumann called this meeting to order on Thursday, July 30, 1992, at 10:00 a.m. in Conference Room #1 of Tamarac City Hall, 7525 Northwest 88 Avenue, Tamarac, Florida. Vice Mayor Henry Schumann Councilman Norman Abramowitz Councilman Joseph Schreiber Councilman Irving Katz ABSENT AND EXCU W. Mayor H. Larry Bender ALSO PRESENT: John P. Kelly, City Manager Dina McDermott, Assistant City Manager Mitchell S. Kraft, City Attorney Mary Blasi, Finance Director Karen Jackson, Secretary (entered at 10:55 a.m.) 1. PUBLIC PARTICIPATION - Any member of the public may speak to any issue which is on this meeting notice. Speakers will be limited to three minutes during this item and at public hearings. There will be a thirty (30) minute aggregate time limit for this item, and speakers are encouraged to sign up in advance with the City Clerk prior to their participation. Vice Mayor Schumann OPENED and CLOSED Public Participation with no response. 2. MOTIOON TO APPZW a proposal millage rate and the date, time and place of the first Budget Public Hearing for Fiscal Year 1992/93. SYNOPSIS OF_ ACTION APPROVED sending a proposed millage rate of 6% to Mr. Markham's office for Fiscal Year 1992/93. APPROVED the first Budget Public Hearing for Fiscal Year 1992/93 for Tuesday, September 8, 1992 at 7:00 p.m. Mr. Kelly said the purpose of this meeting is to establish the millage rate for the upcoming year. He said this is the proposed first step. He said what is sent down to Mr. Markham's office is the starting point and cannot go higher, but it can be reduced. Mr. Kelly said the valuation for last year had 1.4 billion dollars and the City is now down to 1.344 billion dollars. He said the City has lost approximately 49 million dollars and the total impact is a reduction of approximately 4.8%. He said the City has had some new construction and new additions and valuations amounting to approximately 22 million dollars, which increased the valuation by 1.6%; providing the City with a net reduction in assessed valuation of 3.2%. Mr. Kelly said the current operating millage rate in the City is 4.46, which is the General Fund and does not include the Debt Service Fund. He said the rolled back operating tax millage is 4.6851 per thousand. He said in this case this turns out to be a roll forward. He said the rolled back is what it would take to garner the same amount of money as in the previous year. He said with the devaluation of properties, the roll back is a roll forward. Mr. Kelly said the proposed operating tax millage for the City is City Council Special Meeting 7/30/92/KJ Page 2 4.9781 which is under 5 mills. He said the proposed increase over the operating rolled back tax millage is 6.25% and the proposed increase over the operating current tax millage is 11.6%. He said the current debt service is .5991 mills per thousand and the rolled back debt service is .6293 and the proposed debt service is .6095. Mr. Kelly said the proposed decrease over the rolled back is 3.1% and the proposed increase over debt service is 1.7%. He said the total millage recap is that the current total tax millage is 5.0594 mills. He said the rolled back total tax millage is 5.3144 mills. He said the proposed total tax millage is 5.5876, which includes the General Fund and the Debt Service Fund. Mr. Kelly said the total proposed increase over the rolled back tax millage is 5.1% instead of the 6.25% and the total proposed increase over current is 10.4%. Mr. Kelly said Council must make a determination as to what Council would like to send down to Mr. Markham's office. He said it is at Council's discretion to determine whether or not a 6.25% increase be sent down as a starting point from which Council will begin deliberations of the budget recommendations or if Council wants it to be lower or higher. Mr. Kelly said one of the big reasons for the reduction in the overall budget, which is comprised of the General Fund and Utilities, is the garbage. He said there is a drop of approximately 3 million dollars. He said last year it was $38,861,132 and dropped to $36,919,627. He said the Solid Waste Disposal Fund is the reason for the drop. Mr. Kelly said in the past, the City has been the middle man with the garbage hauler. He said with the City entering into the budget as an Enterprise Fund "Garbage", of 3.65 million dollars, the City has taken this out and made this $352,000, which causes a reduction of approximately 3 million dollars. He said if the bids come in on August 7, 1992 and there is nothing presented that Council wants to deal with, and the City goes out for rebid, and no company gives the City an agreeable price range in order to reduce it to the residents, the cost will have to be reentered into the budget, which is a concern. C/M Schreiber asked about the recycling and Mr. Kelly said the City has budgeted $330,000 for a Solid Waste Residential Franchise Fee that is not currently being collected. V/M Schumann asked if the garbage hauler does the billing, would it be a pass -through to the consumer and Mr. Kelly said, yes. Mr. Kelly said the City could probably do the billing cheaper than the garbage hauler, due to the utility bills; however, the current bills which the residents receive include water, sewer, garbage, recycling and debt service. He said with garbage rates continuing to skyrocket, it would pose a problem. C/M Abramowitz said the biggest complaint from the residents is the high cost on their utility bill for garbage. He said if the City could get the garbage hauler to do the billing, it would be a plus for the City. C/M Katz said the City is not currently receiving any franchise fees for this and Ms. Blasi said the City is receiving franchise fees for commercial garbage hauling, but not from residential. Ms. Blasi said an additional $330,000 in franchise tax revenue from residential was placed in the budget and if the City does not receive it or decides not to go with a residential franchise tax, the City will have to increase this proposed millage rate by 5.5%. She said Waste Management has not been paying a franchise tax to the City for residential. C/M Abramowitz said the budget is comprised of projected income City Council Special Meeting 7/30/92/KJ Page 3 from the Building Department, and other departments. He said Mr. Kelly is advising that the City cover itself and not have a problem like the City had once before. He said the figure sent to Mr. Markham's office cannot be raised, only lowered, and Mr. Kelly agreed. C/M Abramowitz asked if Mr. Kelly feels that 6.2% covers the City in every occurrence and Mr. Kelly said the budget is based on the Staff's best estimates. Mr. Kelly said the 6.25% anticipates approval of the proposed reorganization of the Community Development Department. He said if the City does not do this and it goes back to the status as before, there would be an additional 1% above the 6.25% equalling 7.25% in the rolled back rate. Ms. Blasi said every 1% in the rolled back rate is equal to approximately $61,000. C/M Abramowitz said it has been the general practice that the final determination has been less than the initial proposal sent to Mr. Markham. Mr. Kelly said a budget is never prepared for only one year. He said it is necessary to look at least one year ahead. He said the City is using more revenues from last year. Ms. Blasi said approximately $800,000 in Fund balance was used to balance the current year and next year, Staff is proposing 1.5 million dollars to balance the budget. She said the City is estimating a carry-over at the end of this year to be approximately 2 million dollars out of last year and the previous year's budget. She said the City had approximately 1.3 million dollars as of September 30, 1991. V/M Schumann said he read in the newspaper that the City of Sunrise's rate was $2.89 per thousand and Tamarac is going in for $4.98 which is $2.09 higher than theirs. He asked how Sunrise can go in this low and Mr. Kelly said the utility tax. Ms. Blasi said Tamarac would receive 4 million dollars in utility taxes and Mr. Kelly said the City could cut the property taxes in half with a utility tax. Mr. Kelly said the Moody Report gives the City a good rating predicated on the fact that the City does not have a utility tax and has a lot of taxing latitude for the future, which other cities do not have. He said Tamarac remains below 5% without a utility tax. V/M Schumann asked what the City could reduce the ad valorem by if the City acquired a utility tax and Ms. Blasi said it could be reduced by approximately two-thirds. Mr. Kelly said a utility tax would provide for a more equitable distribution of the tax burden; however, the reality is that most of the people in the City would probably be happy with that, but the people who will be unhappy about it are those who will attend the public hearings. C/M Abramowitz asked if there would be a cushion if the figure was increased from 6.2% to 6.7% and Mr. Kelly said any additional allowed would be more cushion, but that would equal $30,000. C/M Abramowitz said Sunrise is using four million dollars of their surplus to balance their budget. Mr. Kelly said Sunrise was grandfathered in several years ago on cable television franchise of 10% and that option is no longer available. He said Tamarac was the only City to reduce its rate last year. C/M Abramowitz said if Tamarac had not had the problem with the 49 City Council Special Meeting 7/30/92/KJ Page 4 million dollars with Mr. Markham's office, which carried over to Broward County, the City would have been very close in not having to raise taxes this year. He said Sunrise told their residents to maintain their waterways and lakes themselves and Sunrise is no longer handling the waterways. He said Tamarac has many waterways. C/M Katz said there is nothing stating that the City must maintain the waterways and that the City cannot move the responsibilities of the waterways. C/M Abramowitz said it is very difficult to take away a service after supplying it for any length of time. V/M Schumann said the economy is in a state of chronic anemia and certain things have to be curtailed. He said people have to accept certain instances. He said every economist in the country will state that businesses around the country are either firing people or closing. He said the City is going to have to cut the mustard here somewhere and the waterways may be a portion of it. C/M Abramowitz said one of the biggest problems in the City is the waterways and the maintenance of the grass or beautification. C/M Katz said his disposable income is one-third of what it was four years ago. V/M Schumann said the residents of the City rely on the supplemental interest and income to supplement Social Security and other types of pension forms they have. C/M Katz said with the increase of 14% in water, the additional garbage, ad valorem and County taxes, there has to be an end. He said he is going to have to review the proposed budget. C/M Abramowitz said an issue was brought to Council in the past for the City to maintain a particular portion of the City and Council voted for it. V/M Schumann asked how far and how long can these figures increase to the residents. C/M Schreiber said the City is always looking for additional revenue and there is none. He said if expenditures are reduced, lost revenue is made up. He said it is Council's obligation to review the budget thoroughly to see what can be done. He said the alternative is to either raise taxes and hurt the people who are already hurting or find the ways and means to cut it down so that everyone can live within reason. C/M Abramowitz said there are things available that can enhance the revenue of the City. He said Council needs to have the courage to do it. He said most of the people moving into the City are from the surrounding cities and not from out-of-state locations, because Tamarac has the reputation of being a beautiful city and very cheap to live in. C/M Abramowitz said there are things that Council can do where the City can cure a lot of ills that are present. He said the City does not have a revitalization program because the City does not allow any portion of the City to deteriorate to the point where it must be revitalized. C/M Abramowitz said the City has a new installation that requires help in maintenance, there are ball fields that require help and other facilities and the City needs people in the work field to do this. He said the easiest thing to do would be to fire people. C/M Katz said there has been no discussion on firing people, but a discussion on additional people to handle this situation and C/M Abramowitz agreed and said there are cities that have eliminated entire departments to balance their budgets. Further discussion was held regarding other cities. City Council Special Meeting 7/30/92/KJ Page 5 L Mr. Kelly said in order to maintain the capital improvements the City has made, the personnel must be available to do it. He said the property across the street is being cleared and is changing hands. He said this will eventually provide some unanticipated revenues. He said Land Section 6 and 8 will be changing hands soon. C/M Katz said there is no plan for development approved for the property across the street at present. Mr. Kelly said he would like to compliment the Tamarac Athletic Federation for all of its contributions to the City which are somewhat overlooked. He said the costs to the City if the City ran athletic programs to the extent that the TAF does, would be enormous. He said the City has provided them with the capital structures to expand their program for which they are pleased. C/M Abramowitz said people are coming from all around to play basketball in this City. He said the City enjoys a magnificent reputation in the recreational field. Mr. Kelly said these are the types of things that maintain the taxes at the level they are. He said Tamarac has planned well with the budgets and the recommendation for additional people was thought out and it is Council's decision if the additional people are justified. C/M Abramowitz MOVED to APPROVE 6.25% to send to Mr. Markham's office and C/M Katz suggested it be reduced to 6%, based on a reduction eventually being done. C/M Abramowitz MOVED to APPROVZ sending a proposed millage rate of 6% to Mr. Markham's office, SECONDZD by C/M Katz. VOTE: ALL VOTED AYg Mr. Kelly said the date and time for the first public hearing will be Tuesday, September 8, 1992 at 7:00 p.m. in the Council Chambers. He said there is a possibility that the second public hearing will be scheduled for Tuesday, September 22, 1992 at 7:00 p.m. He reviewed the rationale for these dates based on the Broward County School Board hearings, the County hearings and the Jewish holidays. C/M Katz asked when the workshops will be held and Mr. Kelly said August 10 through 14, 1992, scheduled on Monday, Tuesday, Thursday and Friday. C/M Schreiber MOVED to APPROVE Tuesday, September 8, 1992 at 7:00 p.m. for the first budget public hearing, SECONDED by C/M Abramowitz. VOTE: ALL VOTED AYR C/M Katz said Council is getting close to the time when it is necessary to submit items for the November General Electiop,- He said there are some things which the City Attorney has baifx'--given direction to prepare for Council for review. He said ong-of the. things continually being' discussed is Section 6.03 of t��_'Ch-art=er regarding Redistricting. ==_ TAPS 2X C/M Katz said Mr. Novak, the Charter Board Attorney, her" - maintained the same position that the Charter Board has ram- business being in the redistricting process and that he has held that point out as a bargaining chip to retain the Charter Board as an elected body, rather than an appointed body. He requested a show of interest or direction from Council for the City Attorney to change Section 6.03 (1) removing the Charter Board from participation in the redistricting process and change the number of appointees to five by eliminating the four that the Charter Board appoints. C/M Katz requested a change be made regarding the allowance of a City Council Special Meeting 7/30/92/KJ Page 6 lay appointed board to have the final say on the matter rather than the legislative body. V/M Schumann said he does not recall Mr. Novak agreeing to disenfranchise the Charter Board from this. C/M Abramowitz said Mr. Novak had mentioned that it was not an issue that was vital to the Charter Board. C/M Katz said that was his intent. C/M Abramowitz agreed with C/M Katz regarding the appointed lay board being the determining factor. He said he would like to hear people with an opposing point of view regarding the participation with the Charter Board in the redistricting process. C/M Abramowitz said he is in favor of the lay board not having the final decision of the districts. Further discussion was held regarding the redistricting process. Mr. Kraft suggested he draft a amendment for Council to hold a workshop for review and discussion on Section 6.03 of the Charter and all agreed. Melanie Reynolds, resident, said the reason the Charter Board is interested is based on their interest in the various districts as is Council. Ms. Reynolds said prior to discussion of an item, it should be agendized by consent. Ms. Reynolds said it is a balance to have the Charter Board along with Council in the redistricting process because they are both involved in running in the various districts. She said in the past, it was desired that the Council pass an ordinance regarding the lay board, but it was never changed. C/M Katz requested an Expression of Interest regarding the City Attorney drafting an amended Section 6.03 of the Charter. EXPRESSION OF INTEREST: ALL AGREED With no further business, Vice Mayor Schumann ADJOURNED this meeting at 11:00 a.m. CAROL A. EVANS .CITY CLERK /H.BENDER MAYOR TY OF TAMARAC W* R AT MEEfINraw - w