HomeMy WebLinkAbout1990-07-09 - City Commission Workshop Meeting Minutes[I
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CITY OF TAMARAC
CITY COUNCIL WORKSHOP MEETING
MONDAY, JULY 9, 1990
Mayor Abramowitz called this meeting to order on
Monday, July 9, 1990 at 9.30 A.M. in Conference Room #1, City Hall.
PRESENT., Mayor Norman Abramowitz
Vice Mayor Bruce Hoffman
Councilman Dr. Larry Bender
Councilman Henry Schumann
Councilman Henry Rohr
John P. Kelly, City Manager
Ken Burroughs, Finance Director
Mary Blasi, Deputy Finance Director
Pauline Walaszek, Secretary
The purpose of this meeting is a preliminary budget
presentation.
Mayor Abramowitz said he understood this would be a verbal
presentation and City Manager Kelly agreed.
City Manager Kelly said the report was a preliminary verbal
budget report and this was created to provide the City
Council with an estimate of what fiscal shape the City was
in. He said there were changes in the City's staff and
printed documents were not available at this time; however,
he hoped to have the documents available this week.
City Manager Kelly said he knew the residents wanted to see a
better of level of service, more projects and lower taxes.
He said the City employees' Union and non -Union have not had
a raise in three years and were hoping to get an increase in
their income. He said the employees and were the most
important resources and, since they were the people to
deliver the services, it was important that this area in the
budget be addressed.
City Manager Kelly said the City Council understood the
employee concerns; however, they were sympathetic to the
concerns of the residents since the services were important
and lower taxes were hoped for.
City Manager Kelly said he was responsible for providing a
balanced budget and to make everyone happy. He said he would
be successful in providing a balanced budget as required by
the Charter. He said the debt service would be reduced from
0.68 to 0.62. He said the City was now required to establish
a separate enterprise fund for sanitation costs.
Mayor Abramowitz asked if this
and City Manager Kelly replied,
this year's operating budget by
dollars. He said the expected
$62.00.
regulation was mandated by law
yes, and this would decrease
approximately 1.6 million
increase in garbage rates was
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V/M Hoffman asked if the removal of the sanitation fu ds'
would impact the budget and Ken Burroughs, Finance Di ec,
said the general fund would not contain the funds; ho ev
there would be an enterprise fund such as the water a d er
fund.
Mayor Abramowitz said this would not be a change in
budget and City Manager Kelly said the budget would
a decrease in the bottom line figure.
At 9:40 A.M., Dina McDermott, Assistant,City Manager,
ZNTZRZD the meeting.
Mayor Abramowitz said he wanted everyone to understan
the City Manager was presenting since there were no d c is
available at this time. TT
City Manager Kelly said the Broward Sheriff's Office
contract cost increase was limited to 3.5%, which was
$177,892.00. He said the services have greatly impro
revenues have increased by approximately $100,000.00.
said this would not have occurred if the City did not
with BSO.
City Manager Kelly said last year the City reviewed a bulgat
in an the amount exceeding 6 million dollars in Police
Services and this year, through the BSO contract, the
increased cost would be $5,260,536.00. He said the rentrentiLl. of
the Police Facility by BSO would be increased by 3.5%
C/M Rohr asked if there was an increase in the revenu f
BSO renting the Police Facility and City Manager Kell
replied, yes, there would be an increase of approxima e1
$70,000.00.
C/M Bender asked if the contract cost of $177,000.00 nett&I
approximately $70,000.00 and City Manager Kelly agreed.
City Manager Kelly said the building permit activity woube
negative and it was projected that the revenues would be'cQwn
approximately $215,000.00. He said a reduction of pe so l
in the Department would be reflected in the budget.
City Manager Kelly said the overall revenue sources
decreasing was a concern and this prompted his recomm nd on
for certain items to be included in the budget. He s id',
there was approximately $40,000.00 provided for an in er'
auditor. He said this position was recommended for t e t
three years and he felt having an internal auditor wo ld'
benefit the City by being a cost savings. He said the
internal auditor would be responsible for reviewing all pf
the franchises, internal operations and explore other
possible revenue sources. He said he was confident t at is
position would easily pay for itself within the year.
City Manager Kelly said C/M Bender has reviewed sever 1
matters concerning franchises and the City should hav
someone to review the franchises.
City Manager Kelly said he would be proposing conside
for the necessary personnel for the Multi -Purpose Cen
which would be completed by the end of the year. He
Public Services Complex would be considered as well;
this facility would not be completed until the end of
upcoming fiscal year.
City Manager Kelly said the budget contained $50,000.
matching grants. He said if the City was going to pu
grants, they would be required to have funds to match
grant funds. He said he felt this was a good item an
recommended it remain in the budget.
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City Manager Kelly said the budget contained $50,000.00 for
emergency hurricane preparedness. He said the Fire Chief
informed him of the things the City should have available in
case there was a hurricane. He said he and C/M Schumann
attended a presentation concerning the impact of Hurricane
"Hugo" on North and South Carolina. He said he felt that the
City could not afford to not fund for this.
City Manager Kelly said there was $50,000.00 in the budget
for asphalt paving and this was needed for potholes, etc., in
the City. He said there was $9,000.00 provided last year
which was not enough to fill the potholes in the City. He
said the amount being proposed would allow the City to act
promptly on any complaints regarding pavement repair in the
city.
City Manager Kelly said there would be $55,000.00 in the
budget for road resurfacing. He said the original proposal
was $79,000.00; however, he decreased this budget to
$55,000.00 because this account has not been budgeted for
over 8 years. He said the City should not allow
deterioration through neglect of the projects.
City Manager Kelly said the budget contained $50,000.00 for
new streetlighting. He said the voters would be asked to
allow the City to fund this project at the September 4, 1990
election. He said this matter could be discussed after the
election results were final.
City Manager Kelly said last year he cut proposals for
drainage; however, there were several projects in the City
that were getting worse; therefore, the costs had to be.
provided to cover the needed repairs. He said he recommended
$223,000.00 for drainage projects in the City.
City Manager Kelly said he recommended there be $491,800.00
in the Insurance Reserves because it was very important to
continue with this type of protection. He said last year was
very successful in not having large insurance claims;
however, this may not be the case in the future.
C/M Schumann asked if the City had to have excess insurance
and Mayor Abramowitz said the City had a policy for excess
insurance for any amount over $100,000.00.
V/M Hoffman asked if the State's Sovereign immunity covered
the City and Mr. Burroughs replied, yes; however, a case
could be taken to the Federal Courts for more than the
$100,000.00 cap provided by Sovereign Immunity.
C/M Schumann asked if the City had a reinsures on excess
coverage and City Manager Kelly replied, yes.
Mayor Abramowitz suggested the City Manager inform the City
Council of the results of the self -insured program since it
was enacted.
City Manager Kelly said the previous year the City paid out
$323,000.00 in premiums and this year approximately
$15,000.00 was paid in claims. He said the Consulting Risk
Manager assisted the City by bringing back approximately
$11,000.00. He said in order for the City to be in a
comfortable position the reserve should be kept.
C/M Rohr asked what amount would be needed to provide a safe
reserve and City Manager Kelly the reserve should be more
than what was presently available. He said Mr. Burroughs has
had a lot of experience in the past and Mr. Burroughs said
the first year of a self --insured program was usually good;
however, the third or fourth years may not be very
successful.
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C/M Schumann asked if the monies for the reserve were played
into an interest bearing account or an escrow account and,C/M
Bender said the funds were in an interest bearing account.
Mayor Abramowitz said this meeting was called to provide the
City Council with what was to be expected when they reviewed
the proposed budget after their vacations. He said the
budget would be reviewed line item by line item for every
Department in the City.
City Manager Kelly said the proposed budget did not include
funding for the anticipated increase for health insurance
costs. He said the bids for health insurance were received
last week and they were being evaluated. He said the bids)I
would be presented to the Unions and the City Council woufld,
be informed of the outcome when they returned from their
vacations.
City Manager Kelly said the sale of the old City Hall was
still pending. He said the bids would be received on August
2, 1990. He said he hesitated to include an amount in the
budget at this time. He said if successful, the final budget
would be reduced and the minimum base bid set for the project
was $600,000.00.
City Manager -Kelly said considering that the sale of the old
City Hall and health insurance costs were not included in the
budget, there would be a rate increase of approximately 25$.
He said if the sale of the City Hall was included, the amount
would reduce the amount to approximately 14%.
City Manager Kelly said the City Council should inform hike of
the rate to be sent to the Property Appraiser's Office which
had to be submitted by August 1, 1990. He said whatever
amount was sent, it could only be decreased and he did not
want the City Council to place the City into a box before
they had the opportunity to review the proposed budget in,
detail.
City Manager Kelly said the City Council should schedule two
public hearings in September, 1990, as well as workshop
meetings to review the budget.
City Manager Kelly said the City should inform the public
that it was unfair to compare a proposed property tax
increase in Tamarac with the property tax increase in the
surrounding Cities. He said most other Cities had a 10%
utility tax on all utilities and,. to date, only two Cities In
Broward County did not have a utility tax, and Tamarac was
one of those Cities. He said it was no coincidence that both
the Cities merged with BSO.
City Manager Kelly said to accomplish what was needed every
year without a utility tax was incredible. He said the
present operating millage was 4.1143, which was low; however,
if a 10% utility tax was added, the millage rate would only
be 0.664. He said he was not advocating a utility tax
because most residents already paying property taxes would
prefer to pay higher property taxes than to allow non -
property owners and renters to share the burden with them
City Manager Kelly said he questioned the rationale regarding
this; however, he applauded their excessive generosity, die
said a 5% utility tax on electric, Southern Bell and cable
television would generate enough money in 18 months to
provide all the needed funds for the proposed streetlighting
and sidewalk projects. He said there would be no need for.e
bond issue at a 7% to 9% interest rate charging the propeirt.y
owners for the payment.
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City Manager Kelly said he would like the minimum bid for the
sale of the old City Hall property to be included in the
budget. He said this was done in the past and the funds
could not be used until the sale of the property was
completed. He said there was a negative cash flow with the
old City Hall building and property because the City was
required to maintain this. He said the City was spending
money to maintain the property and building; however, there
was nothing financial coming back to the City.
Mayor Abramowitz said he wished the residents were aware of
how hard staff worked in the past few weeks on the proposed
budget. He said he could not argue with the City Manager's
presentation; however, he did not want the same thing to
occur as it did last year. He said the City Council and
staff wanted to be honest and upfront with the public last
year; however, the residents did not approve of this. He
said the City Council would be reviewing the budget to get as
close as possible to the factual millage.
Mayor Abramowitz said he would like to see no tax increase;
however, the services had to be provided by the City. He
said he wanted to see the sale of the old City Hall and he
felt that something should be done to sell the property. He
said he felt that this was a priority item.
V/M Hoffman said he would like to see the $600,000.00
included as projected income in the budget and not send the
proposed millage rate at 25%. He said he felt the old City
Hall would be sold.
V/M Hoffman said he stated during his running for office that
he would oppose a utility tax and he still did; however, he
was only one tax payer in the City and, when the utility tax
was previously proposed, there were a few people who opposed
it.
V/M Hoffman suggested that the City Council put this matter
on the ballot and allow the residents to vote regarding a
utility tax being implemented. He said the City should get
the input from all the people in the City. He said the City
may find that the people who objected to a utility tax did
not speak for all the residents of the City.
Mayor Abramowitz asked if V/M Hoffman was stating that the
residents should be informed that the revenue from the
utility tax would reduce the property tax by a certain
amount.
V/M Hoffman said the City Manager made an excellent
presentation and figures were quoted that were correct. He
asked how this matter could be presented to the public so
they could make the final decision. He said the residents
should be informed about the matters described by the City
Manager and then inform the City of how the bill should be
paid.
C/M Rohr said he agreed with V/M Hoffman and he felt that the
property owners should be informed of the difference if a
utility tax was proposed. He said the property owners should
be informed how much their ad valorem would be reduced at
this time or in the future if a utility tax was implemented.
He said he would not object to this item being placed on the
November, 1990 ballot, if possible.
City Manager Kelly said there were residents who objected to
a utility tax and he suggested that the City educate the
public regarding the outcome of implementing a utility tax.
He said the time and how the matter could be proposed and
implemented could be discussed at a different time.
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City Manager Kelly said at this time an emphasis on the
utility tax was not appropriate and he provided the
information to the City Council as a reference point for
consideration.
C/M Rohr said all of the Cities which had utility taxes hod a
good ad valorem and V/M Hoffman said he did not agree with
this. Mayor Abramowitz said he agreed with C/M Rohr.
C/M Schumann asked if the amount from the utility tax would
be for 18 months and City Manager Kelly said to complete the
two referendum items being proposed 5% of the money generaated
from the utility tax could be used for the projects. He said
the amount generated would be approximately 3 million
dollars.
V/M Hoffman said the utility tax for the telephone would be
for intra-State calls and City Manager Kelly agreed.
C/M Bender said he would like to discuss the sale of the old
City Hall property. He asked if a minimum bid for the
property would be set and City Manager Kelly replied, yes.
C/M Bender asked what would occur if the minimum bid was not
received and City Manager Kelly said this was usually done;
however, the -City Council would make the final decision.
C/M Bender asked if there was consideration regarding renting
the building and City Manager Kelly said no one wanted to go
near the building.
Mayor Abramowitz said if the building was not on the
property, it may have been sold a long time ago. He said
there were problems with the building..
City Manager Kelly said the only one who opted to rent thbe
building was the ambulance company; however, the traffic
generation in that area was a concern.
V/M Hoffman asked what it would cost to remove the building
and C/M Bender said he was suggesting alternatives to receive
revenue to cover the existing costs.
Mayor Abramowitz said a reappraisal of the property was.
estimated at a lower figure than the first appraisal. He
said everyone who showed interest in the property did not
contact the City again after they walked through the
building.
Mayor Abramowitz said the City Council should consider this
utility tax at a later date. He said the City Council called
this meeting to inform the City Manager of what should be
sent down to the County Appraiser's Office.
Mayor Abramowitz said the biggest problem with the old City
Hall was the building. He said a park could not be placed in
the area. He suggested that anyone who came along and
expressed interest in the property should be introduced to
the City Council and let them make the final decision. He
said he felt that the building would be sold this year and he
would like $600,000.00 added into the budget.
C/M Rohr said he was concerned with the budget providing for
$600,000.00 when the property would not be sold for that and
V/M Hoffman said $600,000.00 would be listed in the budget -as
income.
C/M Rohr said the revenue in the Building Department was i
projected to decrease and he asked what percentage was not
accumulated this year. City Manager Kelly said the amount
was approximately 25%.
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C/M Rohr asked if there would be a reduction of staff in the
Building Department and City Manager Kelly said this
information would be reflected during the budget review.
C/M Rohr said he would like a report regarding this matter
and City Manager Kelly said this would be included in the
budget to be reviewed by the City Council after their
vacation.
C/M Bender said the County increased the property taxes and
he asked Mr. Burroughs how much the City would receive.
Mr. Burroughs said he did not calculate the increase;
however, the City would receive $1,285,869.00 for each mil.
Mary Blasi, Deputy Finance Director, said the amount would be
$350,000.00 if the same millage rate was used. She said this
would be due to the increase of assessed property and Mayor
Abramowitz said this would be a very small percentage.
Mr. Burroughs said he did not have the percentages with him;
however, he would see that the City Council received this
information.
V/M Hoffman asked if revenues from Land Section 7 were
expected for this budget and City Manager Kelly replied, no.
City Manager Kelly said plats were submitted; however, there
would not be construction in that area in the 1990/91 Fiscal
Year.
Mayor Abramowitz said the City always had a bad reputation
for building and development. He said he knew that the
City's staff worked very had to eliminate the past
reputation. He said the City had a problem because no one
wanted to see a development built in their area; however,
they dial not want higher taxes either.
Mayor Abramowitz said there were abandoned shopping centers
that could be occupied and very successful; however, the
residents chased the businesses out of the City. He said the
reality of the funds needed had to be recognized. He said
staff's quality and professionalism did not occur for
nothing.
Mayor Abramowitz said the City assisted the*City of
Lauderdale Lakes and he felt it was good that if the Cities
assisted each other. He said providing the assistance needed
did not detain staff from doing their work to keep the City
operating, he did not object to this type of assistance. He
said there were surrounding Cities that were built out and
staff was not required; therefore, he did not feel that
assisting the Cities providing it did not interfere with
staff's actions on behalf of the City.
V/M Hoffman asked if the City Council should inform the
City Manager what should be sent to the County Appraiser's
Office.
City Manager Kelly said recently there was a newspaper
article indicating how many people throughout the County
worked in the Fire Departments. He said Tamarac had 12
square miles and the City of Lauderhill was 7 square miles
and they had 74 people in their Fire Department. He said
Tamarac had 40 people in the Fire Department and he was very
proud of the Fire Department's operation with the staff they
had.
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City Manager Kelly said the City Council should consider when
the workshops would be held and Mayor Abramowitz suggested
the City Manager send a memorandum to the City Council
regarding what was needed and required. He said the City
Council should check their calendars for September, 1990, to
see when the workshops and public hearings should be held,
Mayor Abramowitz said a Mayor from another City informed him
that 16 people were terminated from the City and they were
not replaced because the ad valorem was low. He said this
was a lot of money and it was not difficult to do; however,
if the staff needed was not available, the City could not
function properly.
Mayor Abramowitz said he felt that the existing staff in the
City has done a very good job in keeping the City operatihg
appropriately.
V/M Hoffman suggested that staff review the matters discussed
concerning a referendum on whether voters would approve a�
utility tax. He asked that this matter be submitted to the
City Council so it could be discussed after their vacation.
Mayor Abramowitz said he did not feel comfortable present*ng
something to the public when they were not informed properly
regarding the reason why the proposal was being made.
V/M Hoffman said he agreed with this and this was why he *as
asking staff to review the matter and inform the City Council
of their findings. He said he did not think about this
matter until it was discussed at this meeting and he feltithe
matter should be pursued.
C/M Bender said the City did not have natural gas and he
asked if staff considered placing a franchise tax on natural
gas. He said everything should be explored in order to
increase the revenues for the City.
City Manager Kelly said staff had a proposal from a business
to have natural gas and staff was asked if this would be
allowed. He said he sent this matter to staff to see how
they felt and, all of them, particularly the Fire DepaxtmOnt
felt this was a good idea.
C/M Bender said there has been discussion regarding hizinq an
internal auditor. He said he reviewed the franchise taxes in
the City and he did not find an audit of the utility cample%.
He said this should be reviewed as a project in the future.
Mayor Abramowitz asked City Manager Kelly to inform the C ty
Council by memorandum regarding what would be needed and. #ha
City Council would inform the City Manager at their regular
meeting on July 11, 1990.
City Manager Kelly said the first public hearing must be
between September 5 and September 20, 1990, excluding
September 11, 12 and 13, 1990. He said September 20, 1996
was a Jewish Holiday.
X"A A.
Mayor Abramowitz"said the City Council would review their
calendars and inform the City Manager when it was appropriate
to hold the first public hearing.
City Manager Kelly said the second public hearing had to be
held between September 20 and 30, 1990 and Mr. Burroughs said
the meetings had to be held after 5:00 P.M. He said the belt
days for the second public hearings were the 24, 25 and 21 of
September, 1990.
City Manager Kelly said the City Clerk needed approximateXy 5
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1
1
days for advertising between the meetings. He said if there
were changes during the first public hearing, the Finance
Department had to be given time to do the calculations so the
advertisement could be prepared.
Mayor Abramowitz said he would like to have everything
prepared before the City Council left for vacation.
With no further business, Mayor Abramowitz ADJOURNED this
meeting at 10:25 A.M.
CAR L A. EVANS �—
CITY CLERK - "1
"This public document was promulgated at a cost of $80.19 or
$10.03 per copy to inform the general public, public officers and
employees of recent opinions and considerations of the City
Council of the City of Tamarac."
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