HomeMy WebLinkAbout1988-08-02 - City Commission Special Meeting Minutes7525 NORTHWEST 88TH AVENUE 0 TAMARAC, FLORIDA 33321-2401
TELEPHONE (305) 722-5900
August 1, 1988
RECORD OF COUNCIL ACTIONS/DISCUSSIONS
NOTICE OF SPECIAL MEETING
CITY COUNCIL OF TAMARAC, FLORIDA
There will be a Special Meeting of the City Council on
Tuesday, August 2, 1988 at 11:00 a.m. in Conference Room #3
which is located at City Hall, 7525 N.W. 88th Avenue,
Tamarac, Florida.
The purpose of this meeting is to set the tentative Millage
Rate for 1988-89 Budget.
FINAL ACTION:
The tentative Millage Rate for 1988/89 is 3.3598. There
will be a 6% tax on utilities. The City Manager will further
investigate whether to leave the garbage collection fee on
utility bills or go to direct billing. The first Public
Hearing on the tentative Millage and the proposed budget for
1988/89 will be held on Tuesday, September 6, 1988 at
7:00 P.M. in the Council Chambers of City Hall.
CEB/nr
'It
Carol E. Barbuto
City Clerk
AN EQUAL OPPORTUNITY EMPLOYER
POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS
CITY OF TAMARAC
CITY COUNCIL SPECIAL MEETING
TUESDAY, AUGUST 2, 1988
TAPE 1
CALL TO ORDER: Mayor Abramowitz called this Special Meeting to Order on
Tuesday, August 2, 1988 at 8:30 A.M. in Conference Room #1 (City
Clerk's Office).
PRESENT:
Mayor Norman Abramowitz
Vice Mayor Jack Stelzer
Councilman Dr. H. Larry Bender
Councilman Bruce Hoffman
Councilman Henry Rohr
ALSO PRESENT
John P. Kelly, City Manager
Richard Doody, City Attorney
Ken Burroughs, Finance Director
Carol E. Barbuto, City Clerk
Cite Manager Kelly said the revenues for this budget year
have been down primarily in the Building and Planning
Department. He said the expenditures proposed for this
year are over $16,500,000.00 as opposed to the
expenditures for the previous year of 15.2 million
dollars. He said the increase was 8.5% in expenditures.
City Manager Kelly said the amount needed for this year's
budget is $3,574,554.00 and the value of the budget
millage is 1 million of a millage equaling $1,063,919.00.
He said the current operating millage is 3.034 and the
proposed millage is 3.3598, which represents a 10%
increase in the millage rate.
City Manager Kelly recommended that a minimum of 5% for
Utility Tax be imposed for telephone and electric, the
garbage fee be placed on direct billing and the millage
rate be raised approximately 11%. He said there are
other options to pursue and should be discussed at this
time. He said he did not want to be in the position of
sending a millage rate that needed to be raised to the
Broward County Appraisers Office.
City Manager Kelly said the highest possible millage rate
should be obtained and, if possible, the rate could be
lowered at a later date. He said the millage rate given
to the Broward County Appraisers Office could be lowered
but not raised.
Ken Purroughs, Finance Director, said a Public Hearing
date for September regarding the first budget should be
set at this meeting.
C/M Hoffman asked what direct billing for garbage would
accomplish for the City.
City Manager Kelly said direct billing would be a benefit
to the City Administration by eliminating the City being
involved in the garbage business. He said direct billing
would not be an advantage to the public because their
rates would increase. He said Waste Management, Inc.,
would be charging the public for postage and handling of
the bills. He said Tamarac has not charged the residents
postage for bills.
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City Manager Kelly said he would like the City out of the
garbage business and, to do this, direct billing was
needed. He said other Cities have done this and are
moving forward. He said many Cities are doing this
because of the rapid increase in rates. He said the
public should be aware that the garbage tax was not a
City tax and, by transferring the cost of billing to
Waste Management, Inc., it would be easier for the City
Administration and a cost savings to the public.
C/M Rohr said the City is facing an increase for next
year's budget; however, he would like the City handling
the billing to restrict all costs to the bare minimum so
that the effect is not as drastic to the public. He said
if there is an increase in postage and handling, then the
bills should increase; however, the public would be
paying more by transferring the bills directly.
V/M Stelzer said the City was responsible to relate the
increase mandated by Waste Management, Inc., to the
public. He said the City should not be responsible and
blamed by the people for Waste Management, Inc.,
increasing the bills. He asked if the City would
continue bargaining with Waste Management, Inc., for the
rates and City Manager Kelly replied, yes.
V/M Stelzer said the City should not involve themselves
with the collection of the bills because of the cost. He
said the City was not benefiting from collecting the
bills.
C/M Bender said the City should continue offering the
service to the residents because of the convenience. He
said transferring the billing would cost the City money
and there were other problems that needed to be dealt
with at this time.
Mayor Abramowitz said the City is trying to raise money
needed for the ad valorem. He said change is very
frightening and transferring the billing to Waste
Management, Inc., was a big change; however, he was
concerned with being in the garbage business.
Mayor Abramowitz said the City was not benefiting from
handling the billing; however, he was not comfortable in
raising the taxes as they are needed.
C/M Hoffman said the City should get out of the garbage
business; however, direct billing would add at least
$1.00 to the charge per month and Waste Management, Inc.,
billed on 3 month cycles. He said the residents would
prefer to get their bills every month as opposed to being
charged a larger amount each bill; therefore, he would
like to see the City maintain the billing.
City Manager Kelly said he was concerned with Waste
Management, Inc., having a quarterly billing system;
however, there has been discussion that the rates would
be increased to only $.75 per month as opposed to $1.00.
He asked if the City Council would agree to this transfer
providing Waste Management, Inc., agreed to bill on a
monthly basis.
C/M Hoffman said he would agree providing Waste
Management, Inc., did not increase the bills to $.75 per
month.
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Mayor Abramowitz said this matter could be discussed with
Waste Management, Inc., to see if the increase could be
lowered.
V/M Stelzer asked if the condominiums would be affected
by the billing increase and City Manager Kelly said the
single .family homes would be affected by the billing.
City Manager Kelly said regardless which direction the
City Council decides to go, the budget would not be
affected because the revenues offset the expenses.
Mayor Abramowitz suggested that City Manager Kelly work
on this matter with Waste Management, Inc., so that the
change would be palatable to the City and residents.
City Manager Kelly said the 5% utility tax and ad valorem
tax should be discussed even though the garbage tax was
not involved at this time.
C/M Hoffman asked if the utility tax on telephones would
include out of State calls and City Manager Kelly
replied, no.
City Manager Kelly said there were two options available
for taxing local only and intra-State calls. He said out
of State calls would not be taxed.
C/M Hoffman asked if the 5% utility tax would cover most
of the monies needed in the budget and City Manager Kelly
replied, no.
Mayor Abramowitz said if 5% was not going to be enough
money, then the increase
City Manager Kelly said
should be 611.
the millage being discussed was
for operating expenses.
He said the debt services would
increase automatically
and the residents would see this
year's increase for the
next 30 years. He said last year
the debt service charge
was .65% and this year, the debt
service will be .81%.
He said this increase included the
bond issues for the new
Police Facility, City Hall and
the old City Hall's remaining
balance.
V/M Stelzer asked if the money for the sale of the old
City Hall would be used to pay the remaining balance and
City Manager Kelly said the remaining balance could be
paid if the City Council wished to do so.
Mayor Abramowitz said if the City could make money by
paying the balance then it should be done and City
Manager Kelly said because of the revenues being in the
Building and Planning Departments, the money would have
to be considered at the time it is obtained. He said the
old City Hall has not been sold; therefore, the money
could not be used to adhere to the needs for this year's
budget.
City Manager Kelly said there would be other changes
available during the review of the budgets; however, he
would like to propose a higher budget rate to the Broward
County Appraisers Office.
V/M Stelzer asked if the debt service would be lowered if
the old City Hall's mortgage was paid in full and Mr.
Burroughs said the debt service would decrease 5%;
however, the mortgage would be paid in two years.
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C/M Hoffman asked how much time it would take before the
Utility Companies deducted the increased taxes and if the
City could submit a proposed tax increase to the Utility
Companies before the Public Hearings and possibly
decrease it at a later date.
City Attorney Doody said he would like to investigate
this matter further; however, the City may not be bound
by the submitted increase.
Mr. Burroughs said he recently discussed this matter with
a Representative from Florida Power and Light. He said
the language in the Ordinance budget should read, "After
30 days from adoption, the increase would be
implemented."
City Attorney Doody said the increase would be finalized
for the adoption of the Ordinance.
C/M Rohr said the City should submit a proposed increase
to the Utility Companies to avoid a delay when the
increase is to be implemented.
City Attorney Doody said the Utility Companies may not
feel comfortable getting prepared for the increases until
the City Council approves the increases.
C/M Hoffman said every telephone company in Tamarac
needed to be notified of the increase; therefore, it
would take time to prepare the increase.
Mayor Abramowitz said he would like to receive
alternative information regarding the increase such as,
the increase being 5% or 6%, etc.
V/M Stelzer suggested the Utility Tax be increased to 6%
to avoid a problem with the companies and it be adopted
as soon as possible. City Manager Kelly said the
telephone company was presently updating their 1988
contract; however, as soon as it was completed, a copy
would be sent to him.
City Attorney Doody said this Ordinance would be adopted
as any other Ordinance. He said extra notices were not
needed.
V/M Stelzer asked if an Ordinance could be ready for
first reading at the City Council meeting in September
and City Attorney Doody said he would discuss this matter
with City Manager Kelly and, if possible, the Ordinance
could be ready for the first City Council meeting in
September.
Mr. Burroughs said if the Utility Tax could be
implemented before the budget is adopted, the ad valorem
would be decreased.
Mayor Abramowitz said the City Attorney should get the
City Council's input regarding the Utility Tax Ordinance
and City Attorney Doody said he would draft the Ordinance
to indicate the ad valorem increased to 11% and a Utility
Tax increase of 6%.
City Manager Kelly said these increases would be
submitted to the Broward County Appraisers Office as
well.
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TAPE 2
Mayor Abramowitz said next year's budget was bare bones
and City Manager Kelly said the budget was cut more than
to the bare bones. He said because of the condition of
the vehicles and equipment of various departments, he was
embarrassed to eliminate some of the new vehicles and
equipment needed.
Mayor Abramowitz said he was not an advocate of higher
taxes; however, he wanted the City to do the sensible
thing. He said if the increases had to be raised to
accommodate the needs, then it should be done. He said
City Manager Kelly informed him of some roads that have
not been repaved, etc., and he wondered where the money
for those projects would come from. He said if the tax
raises would not address some of the needs in the City,
then the taxes should not be raised.
C/M Hoffman asked how much money would be available with
a 2% increase and City Manager Kelly replied, $20,000.00.
C/M Rohr had concerns with the way the City has been
handling the lighting situation. He said the City
Council should see that normal lighting requirements are
available for the residents. He said the City should
continue the lighting program and the budget should be
prepared to allow the continuation.
Mayor Abramowitz said the City was not able to spend
money that was not available and C/M Rohr said the City
should provide for the program. C/M Rohr said the budget
should contain $100,000.00 for the lighting program this
year.
C/M Hoffman said the budget allowed a lighting program of
$85,000.00 and Mayor Abramowitz asked if the money
allotted for the program would be enough to complete what
was planned.
City Manager Kelly said the City had a long waiting list
for street lights and C/M Hoffman asked how much was
needed to accommodate the list.
Mr. Burroughs said a surveyor reported that $335,000.00
was needed for ten years.
City Manager Kelly suggested the City Council visit the
newly annexed areas regarding this matter because they
were not happy with changing their lighting.
C/M Hoffman asked why the impact fee money could not be
used for the lighting project and Mr. Burroughs said
there was disagreement among staff regarding this matter.
C/M Hoffman asked Mr. Burroughs how he felt about it and
Mr. Burroughs said he agreed with using the impact fee
money for the lighting project; however, the City
Attorney did not agree.
City Attorney Doody said if the City wanted to use the
impact fees, an argument was needed to prove that the
lights are for a new development.
C/M Hoffman said if the City was not growing, then street
lights would not be needed and City Attorney Doody
suggested that staff submit the need for the lighting as
a result of new development.
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C/M Hoffman said the money in the impact fee fund was
placed there when new developments were being
constructed; however, the money has set in that fund for
several years. He said the impact fees collected for the
new developments should be used to complete the
development with lighting.
C/M Bender said the City did not have a revitalization
program. He said the City had developments that were 25
years old and, if a revitalization program was
implemented, there would be revenue generated like the
new developments. He said this matter should be
considered in the budget.
C/M Bender said the City has street lights that are 25
years old. He said there are illumination surveys that
indicate danger because of the lights. He said the City
Council had to consider several matters for the budget.
He said the City was running out of property and a
revitalization program should be implemented.
City Manager Kelly suggested that the proposed budget be
sent to the Broward County Appraisers Office and, during
review of the different departments, the budget could be
decreased.
C/M Bender said he would like to see the revitalization
program implemented in the budget. He said the Building
and Planning Departments could estimate the amount of
revenue gained for revitalization.
Mayor Abramowitz asked when the City Council could begin
finalizing the budget and Mr. Burroughs said the
Workshops could begin as soon as possible.
The City Council AGREED to begin the Workshops the second
week of August.
Mr. Burroughs said Public Hearing dates had to be set for
September and the City Council AGREED to hold a Public
Hearing on September 6, 1988 at 7:00 P.M. in the Council
Chambers.
Mayor Abramowitz asked if the City Council should meet
with each department regarding the budget and City
Manager Kelly replied, yes.
City Manager Kelly said the departments deserved the
opportunity to be heard regarding the needs of the
departments.
C/M Rohr said he would like the record to indicate that
with the institution of a 6% Utility Tax, Tamarac would
be the only City of 28 to be low. He said 14 of the 28
Cities have a 10% increase and the other Cities, except
Hollywood, are implementing 7%, 8% or 9% increases. He
said the need for Tamarac's increase came when the
Developer's Fees decreased.
Mayor Abramowitz Opened discussion to the Public.
Vickie Beech, Resident, said the City was finally
realizing the expected increases. She said the previous
years have indicated that the City had a lot of money;
however, this year, the errors of the past would have to
be felt. She said the City Council will have to inform
several residents that there are needs that could not be
fulfilled regardless of the feasibility.
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Ms. Peech said she hoped that the ad valorem taxes would
not c--:ntinue increasing because of services needed in the
utuxe. She said the City lost a lot of money because of
the ESM matter and the City had to face the loss sooner
or later.
C/M Hoffman said the City did not lose money on the ESM
matter and Walter Rekuc, Resident, said the City lost
4.5 million dollars because interest and principal was
not collected.
Mayor Abramowitz said the City should not look at past
failures for blame and Ms. Beech said she was not blaming
the City Council for these problems. She said the
present Administration inherited these problems which
have been building.
Mr. Rekuc said this meeting should not be taking place
without review of the budget. He said the budget seemed
to be increasing 40% if compared to the previous budgets.
He said there are statements being made that are not
businesslike. He said the City was a big Corporation
with $14,000,000.00 and the residents may reject the
Utility Tax increase.
Mayor Abramowitz said the City Council would make the
final decision on the budget and Mr. Rekuc said he was
aware of this. Mr. Rekuc suggested that the residents be
informed of the expense increase in the budget. He said
the direct expenses and the allocation expenses should be
listed separately so the residents are able to
distinguish between the two.
Mr. Rekuc said the garbage problem has been an issue for
several years and he suggested that the City have their
own garbage collection company. He said the cost would
be less to the City.
V/M Stelzer said there are problems with having a place
to put the garbage.
Mr. Rekuc said if the old City Hall is sold, the City
would be negligent if they did not pay off the Bond. He
said the City Council should sit in on the departmental
budgets for the City and the residents.
Mr. Rekuc said transferring from the Parks and Recreation
Trust Fund to the General Fund should cease because it
was not legal. He suggested the City Council hire a
professional to review the budget before it is adopted.
He said the budget should be reviewed to a 0 budget and
this concept is being used in several Cities. He said
this type of review would minimize the rates, estimates,
etc. He said the City is doing things that other Cities
have done; therefore, the City Manager should have
several people helping with the budget.
Mayor Abramowitz said this meeting was held to give the
Finance Director and the City Manager direction. He said
the public would be notified of the Workshops and the
Public Hearings.
V/M Stelzer said the City Council has built up a surplus
for several years and the Charter was amended to limit
the unappropriated earnings. He said the City no longer
had unappropriated surplus; therefore, the increase was
needed.
i
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With no further business, Mayor Abramowi tZ ADJOURNI`n i:his
meeting at 10:00 A.M.
Na MAN ABRAMOWITZ, MAYOR
CAROL A. EVANS CITY CLERK
"This public document was promulgated at a cost of $78.30 or $2.17 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."
CITY OF TAMAR�C
APPROVED AT MEETING OF L L Vff
City Clerk
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