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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. Page 1 8/2/88 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. Page 2 �__ 1 1 1 8/2/88 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. Page 3 V/ 8/2/88 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. Page 4 8/2/88 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. Page 5 8/2/88 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. Page 6 `- H 1 1 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 Page 7 �/ 8/2/88 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 1 F_I L Page 8