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HomeMy WebLinkAbout1988-09-06 - City Commission Special Meeting Minutes7525 NORTHWEST 88TH AVENUE 0 TAMARAC, FLORIDA 33321-2401 TELEPHONE (305) 722.5900 RECORD OF COUNCIL ACTIONS/DISCUSSIONS SPECIAL MEETING CITY COUNCIL OF TAMARAC, FLORIDA There will be a Special Meeting of the City Council on Tuesday, September 6, 1988, at 7:00 p.m., in the Council Chambers at Tamarac City Hall, 7525 NW 88 Avenue, Tamarac, to hold public hearings on the proposed millage and tentative budgets for Fiscal Year 1988/89. 1. ANNOUNCEMENT of percentage increase/decrease in proposed millage rate over/under the rolled -back rate necessary to fund the General Fund budget for Fiscal Year 1988/89. FINAL ACTION: The millage rate was increased b 9.66%. 2. PUBLIC HEARING on the proposed millage rate for Fiscal Year 1988/89. FINAL ACTION: Public hearing was held. 3. PUBLIC HEARING on the tentative General Fund budget for Fiscal Year 1988/89. )10 FINAL ACTION: Public hearing was held. 4. MOTION TO ADOPT a proposed millage rate for Fiscal Year 1988 89. FINAL ACTION: ADOPTED a 3.3598 milla a rate for FY 1988/89. 5. MOTION TO ADOPT a tentative General Fund budget for Fiscal Year 1988/89. FINAL ACTION: ADOPTED a tentative budget of $16,408,998.00 for FY 88/89. 6. ANNOUNCEMENT of percentage increase/decrease of recomputed millage rate over/under the rolled --back rate necessary to fund the General Fund budget for 1988/89. FINAL ACTION: The percentage of increase of recomputed millage rate is 9.66%. 7. ANNOUNCEMENT of the time, date and place of the second public hearing during which a final millage and General Fund budget shall be adopted. FINAL ACTION: The second public hearing is scheduled for Thursday, September 22, 1988 at 7:00 P.M. in City Hall Council Chambers. 8. PUBLIC HEARING on all other fund budgets for Fiscal Year 1988/89. FINAL ACTION: Public hearing was held. AN EQUAL OPPORTUNITY EMPLOYER POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS 9. MOTION TO ADOPT tentative budgets for all other funds for Fiscal Year 1988/89. FINAL ACTION: Public hearing was held. budgets for all other funds adopted: Special Revenue Funds Debt Service Funds Capital Project Funds Utilities East Fund Utilities West Fund Internal Service Fund General Agency Fund TOTAL: The following tentative for FY 88/89 have been $ 38,750.00 946,712.00 2,788,997.00 391,548.00 18,536,252.00 1,974,917.00 40,000.00 $24,717,176.00 10. ANNOUNCEMENT of proposed debt service millage rate for Fiscal Year 1988/89. FINAL ACTION: The proposed millage rate for General Obligation Bonds is: 1975 Issue .0553 1986 Issue .5100 1987 Issue .2483 TOTAL: .8136 11. MOTION TO ADOPT a proposed debt service millage rate for Fiscal Year 1988/89. FINAL ACTION: ADOPTED the proposed millage rate for General Obligation Bonds: 1975 Issue .0553 1986 Issue .5100 1987 Issue .2483 TOTAL: .8136 All meetings are open to the public. CAE/nr �J Carol A. Evans City Clerk Pursuant to Section 286.0105, Florida Statutes If a person decides to appeal any decision made by the city Council with respect to any matter considered at such meeting; or hearing, he will need a record of the proceedings and for such purpose, he may need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is to be based CITY OF TAMARAC CITY COUNCIL FIRST BUDGET HEARING TUESDAY, SEPTEMBER 6, 1988 TAPE 1 CALL TO ORDER: Mayor Abramowitz called this meeting to Order on Tuesday, September 6, 1988 at 7:00 P.M. in the Council Chambers. MEDITATION AND PLEDGE OF ALLEGIANCE: Mayor Abramowitz called for the Pledge of Allegiance followed by a Moment of Silent Meditation. 13!1DkAm1k111W T_ r_•n 77 'ern T; Mayor Norman Abramowitz Vice Mayor Jack Stelzer Councilman Dr. H. Larry Bender Councilman Bruce Hoffman Councilman Henry Rohr John P. Kelly, City Manager Richard Doody, City Attorney Ken Burroughs, Finance Director Carol A. Evans, City Clerk Patricia Marcurio, Secretary Pauline Walaszek, Special Services Secretary Mayor Abramowitz said the Tamarac Police Department apprehended and incarcerated the rapist of Sunflower/Heathgate and he asked for a round of applause for the Tamarac Police Department. Mayor Abramowitz wished the Jewish residents a happy and healthy New Year and he wished the non-Jewish residents a happy and healthy Holiday on their next Holiday. Mayor Abramowitz said he would like to discuss the purpose of this meeting and why so many residents are attending. Mayor Abramowitz said when the Budget preparation began, the City Manager met with the Councilmembers and explained the financial position of the City. He said there was a 1 million dollar shortfall in the Budget which meant that if the City sat still without increasing any of its services, the City would be short 1 million dollars. He said he did not want to discuss why there is a shortfall; however, the revenue from the Building Department and Revenue Fees were below expectations. Mayor Abramowitz said during the City Council Budget Workshop meetings, the City Council instructed the City Manager to bring the Budget to where there was no shortfall. He said the City Council told the City Manager not to worry about next year because Plans for Land Section 7 are presently being brought before the County Commissioners. Mayor Abramowitz said the City Council had 3 options in making up the shortfall, one option was to cut the services. He said the City's services should be Page 1 9/6/88 - Budget Hearing. improved 100% and the last thing in the world everyone wanted to do was cut the services. Mayor Abramowitz said the two options remaining were to increase the ad valorem or impose a Utility Tax. He said the City Council was advised that the most equitable and rapid way to make up the shortfall was to impose a Utility Tax. Mayor Abramowitz said approximately 4 months ago a Town Hall meeting was called regarding the condition of the water and sewer pipes. He said the residents were very concerned with the cost of their water and sewage rates and the City Council informed them that the water used to water their lawns also included sewer charges. He suggested that the residents buy a second meter and the residents informed him that cost for a second meter was $1,500.00. He said the City Council was concerned and confronted the former Director of Utilities/Engineering who said the actual cost for a second meter was $1,540.00. He said the City Council investigated this matter and an Ordinance was passed charging $150.00 plus $40.00 for installation of a second meter. Mayor Abramowitz said that he ran on a platform for election that Utility Taxes would not be imposed; however, he never expected to find these problems in the City. He said he made a pledge that when he became Mayor, he would work at correcting the problems and imbalances within the City. Mayor Abramowitz said the City Council has been investigating several matters and they are finding things that were not known. He said he was not qualified to explain how, where and when these problems began; however, the City Council discovered 1.5 million dollars of surplus in the Utility Fund. He said the City Council was doing everything in their power to return this surplus to the residents. Mayor Abramowitz said he was attending a function and two female residents asked why taxes are not placed on cigarette, liquor and gasoline items rather than Utilities. He said the City could not legally impose these taxes and he was very disappointed with the residents asking the City Council to tax these items knowing the legal ramifications in doing so. Mayor Abramowitz said earlier in the day, the City Council called an emergency City Council meeting to discuss the proposed 6% Utility Tax. He said all of the money being recovered was done through the assistance of the City Manager and Finance Director. He said the City found 3 accounts with usable money and the City Council voted on several items as follows: "C/M Bender made a Motion which was seconded by C/M Hoffman and unanimously approved to ABOLISH the proposed 6% Utility Tax from this year's Budget." Mayor Abramowitz said the monies found in the accounts are being applied to the shortfall in the Budget; however, the vote on this Motion was not unanimous. He said the proposed 6% Utility Tax would be abolished by using surplus monies from the Utility and other Funds to balance the Budget. Page 2 `-- 9/6/88 - Budget Hearing Mayor Abramowitz said he wished every resident could be the Mayor for 30 days because he was so much smarter than his first day as Mayor. He said he has had the hardest 3 weeks of his entire life in reviewing the Budget and the City Council was trying very hard to accommodate the needs of the residents; however, the City Council needed the support of the residents. He said the residents should understand that the City Council had to provide a lifestyle and a safety factor for the City and its residents. Mayor Abramowitz said a resident suggested the City cut back on the Fire Department. He said he would like the residents to ask the gentlemen's wife who was saved by the City's Fire and Utility Departments when their car went into the lake and the people who were rescued by the Fire Department during the Sabal Palm fire, if they would like the services of the Fire Department cut. He said he receives letters from residents complaining about the Police Department; however, he receives double the amount of complaint letters stating how the Police Department provided services over and above the call of duty. He said during the last bad rainfall, the Public Works Department had 262 emergency calls and they take care of approximately 6,000,000 square footage of grass with a 7 man crew. Mayor Abramowitz said he did not want to hear the residents requesting that City's services be cut because the services should be improved: He said if the surplus monies were not available, he would not have changed his mind about the proposed 6% Utility Tax. V/M Stelzer said the City Manager confronted him earlier in the day regarding the proposed 6% Utility Tax. He said he had a solution but was not going to discuss it at that time because the City Manager would go to the other Councilmembers with the solution. He said the City Manager informed him of what the Councilmembers were proposing and he disagreed with the proposals because they were illegal. He said he told the City Manager about his suggestion providing the City Manager did not discuss the suggestion with the Mayor. V/M Stelzer said he proposed a solution to the Mayor and an emergency special meeting was called. He said he submitted a proposal 3 days ago and he read it at this time. (SEE ATTACHMENT) V/M Stelzer said at the Emergency meeting held earlier in the day, he proposed his suggestion of transferring $1,000,000.00 from the Utility surplus to the General Fund; however, the City Council wanted to take $500,000.00 from the Utility surplus and $500,000.00 from Interim Service Fees. V/M Stelzer said the City does not collect taxes from people building; however, Interim Service Fees are charged. He said last year, the City of Oakland Park was sued by a developer to return his Interim Service Fees and, when this occurred, Tamarac placed last year's Interim Service Fees into an escrow account to avoid this type of problem. V/M Stelzer said he was against the City Council's decision to take last year's escrow of about $250,000.00 and place it into the current Budget and take the Page 3 9/6/88 - Budget Hearing anticipated Interim Service Fees for next year of approximately $250,000.00 and place it in the Budget with $500,000.00 from the Utility surplus. V/M Stelzer said he objected to the City using the impact fees because it was illegal and the City may be sued. He said if the City was sued, the money would have been spent and the same amount would have to be paid back. V/M Stelzer said since the Ordinance reducing the cost of the second meter was passed, approximately 6 people applied for a second meter. V/M Stelzer said the City Council has not been investigating these matters; however, he has. He said he has investigated the Utilities Department for several years. He said the City's Drainage Fund was created in 1979 and Leadership Homes, Inc., gave the City $79,000.00 in Impact Fees. He said the City kept charging. developer's Impact Fees to take care of any problems that may have occurred. V/M Stelzer said in 1980, Councilwoman Massaro t.raristerred $600,000.00 from the General Fund to the Drainage Fund and, even though he was not a Councilmember, he challenged the Accountant, City Manager and City Attorney to show him where anyone had the right to transfer this money. V/M Stelzer said since then, the City has been transferring small amounts such as, $100,000.00, $200,000.00, etc., into the Drainage Fund and, to date, the City has transferred approximately $1,100,000.00 into the Drainage Fund. He said since 1980, the developer's have contributed approximately $1,000,000.00 to the Drainage Fund; however, the City spent approximately $1,200,000.00 in drainage projects. V/M Stelzer said he suggested the City Manager and the Finance Director take back the money that the City has contributed to the Drainage Fund in an amount of $850,000.00. He said there are several Funds sitting idle at this time, which are, the Drainage Fund, Impact Fees for traffic -throughways (which Council wanted to use but changed their mind) and the Interim Service Fees. ZI/M Stelzer said he approved of eliminating the proposed Utility Tax and using 1 million dollars from the Utility surplus because he was sure there was at least 4 million dollars in surplus above what was generated this year. Mayor Abramowitz said he had a Resolution from 1986 where there was a surplus of approximately $500,000.00 and the rates were raised 20% in which V/M Stelzer voted "Aye". He read from the Minutes of September 8, 1986 as follows: "V/M Stelzer MOVED to APPROVE Temp_ Reso. #4250 setting the millage rate of 3.35 with a 6$ Utility Tax, SECONDED by C/M Stein." Mayor Abramowitz said the only people being blamed by V/M Stelzer are the people that were not present to defend themselves. V/14 Stelzer said in 1986 a Resolution was passed; however, the City did not receive the Accountant's Report until December of each year. He said the Utility Director argues during the Budget preparations that a Page 4 9/6/88 - Budget Hearing Utility rate increase was needed, the City Council could not do anything but approve it. He said he found the surplus after the reports from the Accountants were received in 1986 and, at the beginning of 1987, he began to investigate the surplus. Ken aurroughs, Finance Director, said he has experienced 32 years of service as a Finance Director in the State of Florida and Broward County. He said he had 32 years of impeccable credentials and he assured the City that there is no surplus in the Utility Fund other than the 1.5 million dollars revealed in this year's Budget. Mr. Burroughs said he challenged V/M Stelzer to prove otherwise. He said he offered to buy him a steak dinner in January, 1989, if he was wrong. He said if V/M Stelzer is wrong, he should resign. An Unannounced Speaker said the residents are concerned with the Budget for next year and not care what happened in the past. V/M Stelzer said he was asked where he received his irif^rmation regarding the Utility surplus. He said he received the information on the report submitted by Touche Ross for 1987 which indicated a $15,000,000.00 surplus and included the CIAC Fees. 1. ANNOUNCEMENT of percentage increase/decrease in proposed millage rate over/under the rolled -back rate necessary to fund the General Fund budget for Fiscal Year 1988/89. SYNOPSIS OF ACTION: ANNOUNCED the General Fund Budget for Fiscal Year 1988/89 increase to be 9.66% over the roll -back rate. Mayor Abramowitz said it is his duty as Mayor to announce that the proposed millage rate for the General Fund Budget for Fiscal Year 1988/89 would be increased to 9.66% over the roll -back rate. 2. PUBLIC HEARING on the proposed millage rate for Fiscal Year 1988/89. SYNOPSIS OF ACTION: Public Hearing was held. ANNOUNCED the proposed Millage Rar_P to be 3.3598 for Fiscal Year 1988/89. City Manager Kelly said the proposed Millage Rate for Fiscal Year 1988/89 is 3.3598, which is an increase of .32 over the previous year. Mayor Abramowitz Opened the Public Hearing. Abe Garr, President of the Kings Point Civic Association, said his Association represented over 1,000 families living at Kings Point and was increasing monthly. He said the primary function of the Civic Association was to protect the residents of Kings Point as well as the other residents in the City against unfair taxation, arbitrary decision and implementing Budget restraints. He said the Association was formed to give positive input to Page 5 �' 9/6/88 - Budget Hearing TAPE 2 Tamarac's Governing Body and work in a cooperative manner to make the City a better place to live. He said the Association was non -political and its members were interested in fair and equitable treatment by the City Government. Mr. Garr said the Kings Point Civic Association has inspected the Budget proposal and find it unrealistic, inconsistent, inconclusive and vague in certain areas. He said members of the Civic Association would be asking the City Council, questions regarding the allocation of Funds, surplus and the reason for over -estimating the City's needs. Mr. Garr asked why the Budget was being increased when in the past two years, the City's expenditures never exceeded their requests. He said if the sewer and water taxes were over -estimated resulting in a 1.5 million dollar surplus, then the surplus should be transferred into the General Fund to make up the shortfall in the Budget. Mr. Garr had concerns with the City imposing a 6% Utility Tax. He said the residents were present to protest the Utility Tax and there were petitions being circulated on this matter. V/M Stelzer said at the Tamarac Presidents Council meeting Mr. Garr stated that there were petitions being circulated for this matter. He asked the City Attorney to read Section 6.09(d) of the City Charter. City Attorney Doody read Section 6.09(d) of the Charter as follows: "The initiative power shall not extend to the proposing of changes of any part of all of the annual budget or capital program or ordinance making or repealing any appropriation of money, fixing the salaries of city officers or employees or authorizing or repealing the levy of taxes." C/M Hoffman said this matter was moot because the City Council was not going to impose a Utility Tax. Jim Timerium, Resident of Sunflower/Heathgate, was concerned with how much money was in the 3 accounts and Mayor Abramowitz said $640,000,00, $321,000.00 and the account which will be used for the Budget will contain $532,000.00. Mayor Abramowitz said the accounts have been in existence for several years. He said the account containing $640,000.00 was created in 1979. Mr. Timerium said in 1977 the City Council had a Building Inspector who was employed by Leadership Homes, Inc., who constructed defective homes in the Sunflower/Heathgate area and the City Council covered up the mistakes so the City would not be sued. He said every time the City is in trouble, the City Council asked the residents to help and raised fears; however, every year, the City Council expected the residents to have faith in them to make the right decision and, every year, the City Council makes an error. I 1 1 Page 6 9/6/88 -- Budget Hearing Mr. Timerium said he would like to know what services where given to the Sunflower/Heathgate area since 1977. He said the residents were paying the City Council small salaries to do a good job and every year the residents were faced with a tax increase. He said he wanted the City Council to make the right decisions so that the residents did not have to deal with the same matters each year. Mr. Timerium said the City Council should not be raising the taxes every year because the young people in Tamarac were not able to assume the City's responsibility forever. He said if the taxes are continuously raised and the City Council continued showing their ill -will to the residents, there will be nothing left in Tamarac but the Municipal Complex. C/M Rohr said he did not want this City Council being accused of doing things that they were not aware of. He said if the residents think that every Councilmember was voted into office knowing all about the City and the responsibilities of the position, they were mistaken. He said it took time to learn about the City and the Government. Mayor Abramowitz said Mr. Timerium would not remain at the meeting to hear the answer to his questions; however, Mr. Timerium asked what the City was doing for the Sunflower/Heathgate area. He said the City was doubling the size of the Sports Complex and the voters approved $1,250,000.00 for a Multi -Purpose Recreation Center that would assist the teens and children. He said the City recently had 260 children in the Summer Program. He said more has been done for the young people in the City within the last year than in the past. Walter Rekuc, Resident at 5402 Red Cypress Lane, said he has analyzed the Budget for several years. He said the Budget process was an operating plan and the City Manager is to take proper care in accordance with the Florida Statutes. He said the residents should receive a separate list of the cost reduction and improvements in this year's Budget. Mr. Rekuc said the Building Fee income was being decreased; however, the expenses were increasing to approximately $610,000.00. He said a reduction of the expenses were needed and they had to be imposed by tough, heavy management supervision. Mr. Rekuc said the City's personnel was increased from 380 as of June 1, 1988 to 430 for next year. He said the City had 6 employees which are receiving over $50,000.00 Per year from a 10 million dollar operation and there were 21 employees receiving approximately $40,000.00 per year and 46 employees receiving $30,000.00 per year. He said the employees have not received that many increases; however, the City's staff was very top-heavy. -Mr. Rekuc said there were several Cities planning for their future by combining Police and Fire Departments under a Public Safety Director with cross training. He said the City could do this saving $1,600,000.00. Mr. Rekuc said the City should consider the recycling of garbage as soon as possible as several other Cities are doing or planning to do because the saving to the City could be approximately $750,000.00. Page 7` 9/6/88 - Budget Hearing City Attorney Doody said a lot of the discussion was referring to the General Budget and he suggested that the City Council allow this discussion on Item 3. Melanie Reynolds, Resident of Sands Point, said the Mayor has frequently stated that he did not want surprises and neither do the residents; however, when last year's ad valorem tax was given as 3.034 mills, she was informed by the Department of Revenue that the actual millage rate was 3.69 which included the General Fund and the Debt Service for the General Obligation Bonds for 1975/76/77. She said she was surprised in receiving this information and she asked if the Debt Service charge on the Utility Bills was for Revenue Bonds. She said the Revenue Bonds were not supposed to be paid by the residents and she asked if the residents have been double taxed. Mr. Burroughs said the Florida Statutes provide that the Operating Millage be discussed first. He said Item 10 on the Agenda addressed the Debt Service Millage for the General Obligation Bonds and, as outlined on Page 12 of the handout Budget, a millage percent of .8136 is indicated. He said this was the amount of money required to pay the interest on the 1975/76/77 General Obligation Bonds. He said the City Council could not change these figures. Mr. Burroughs said adding .8136% General Obligation Bonds to the proposed Operating Millage of 3.3598% gave a total bottom -line millage of 4.1734% or an increase of 48 cents per thousand. Mr. Burroughs said the Debt Service charge on the.utility bills was another name for a service charge. He said this charge did not cover the General Obligation Bonds or the Debt Service for the Utility Bonds. He said the charge was intended to reflect a cost of the 1986 Utility Bonds. He said Tamarac was the only City in the State of Florida that has this charge on the Utility Bill. Mr. Burroughs said he has received calls from the Department of Revenue regarding this matter and after explaining the charge to the Department of Revenue, they were satisfied that it was not a double taxation. Mayor Abramowitz Closed the Public Hearing with no further response. 3. PUBLIC HEARING on the tentative General Fund budget for Fiscal Year 1988/89. SYNOPSIS OF ACTION: Public Hearing -was held. Tentative General Fund Budget for Fiscal Year 1988/89 would be incrpncpH hu $1,100,000.00 or 7.95% City Manager Kelly the State of Florida credited the City for having 39,630 residents as of April 1, 1988; however, on June 17, 1988, the City annexed an additional 2,600 residents which gave the City a minimum base of 42,230 residents. He said a true figure would be approximately 45,000 residents and, in past years the City has prospered due to continued growth and significant investments from the developers money by various fees. Page 8 L' 1-1 1 9/6/$8 -- Budget Hearing City Manager Kelly said as long as the City continued to grow the residents would be able to enjoy a low tax rate. He said this year, development has begun to slow down causing the City to pay their own way. He said during the early stages of the Budgetary process, he was finding that in order to meet the needs of the City, a substantial tax increase would be necessary. He said the revenues anticipated by the Building and Planning Departments had to be reduced causing the City to risk legal challenges in using the Interim Service Fees to contribute to the City's shortfall of approximately 1 million dollars in the General Fund. City Manager Kelly said the shortfall came from expected revenues in the Building Department of approximately $376,000.00, approximately $70,000.00 in Engineering, Interim Service Fees of approximately $246,000.00, which are in an escrow account, and Union raises of 4%. Also, the shortfall was caused from last year's Budget when the sale of surplus property was expected and the money was to be used on capital equipment. He said the property was not sold and the only equipment purchased last year was for the Police Department. City Manager Kelly said the needs for equipment were continuing to exist and, each year, the City Council wants to wait to purchase equipment until the next year. He said each time the purchase of equipment is put off, the equipment continues to get older and worse. He said there are Union Grievances with class action suits stating that the City was allowing the employees to use unsafe equipment and the insurance risk by using unsafe equipment was great. City Manager Kelly said the Burglar Alarm Fees were eliminated to accommodate the residents complaints; however, there would be approximately $100,000.00 in revenues eliminated with the Burglar Alarm Fees. He said the overall budgeted increase over last year is $1,100,000.00 or 7.95% City Manager Kelly said the General Fund Budget was separate and distinct from the Utilities Budget which covered the Administration and Operations of the water and sewer systems. City Manager Kelly said the property tax applied to the General Fund and the water and sewer bills are applied to the Utilities Budget. He said he had to propose a solution to accommodate the shortfall and he recommended the 6% Utility Tax which seemed to be the most feasible and logical way to get the money. He said he believed that the residents would approve of this tax since the surplus from the Utility Fund would be used to reduce the rates. He said he now sees that this was not correct. City Manager Kelly said it was very difficult for him to convince the City Council that a 6% Utility Tax would be the best avenue to take in making up the shortfall. He said the City Council had to take several weeks to make their decision and investigate other areas. He said he informed the City Council that the 6% Utility Tax would be the lowest in Broward County and he felt it would be approved; however, he was wrong. Page 9 9/6/88 - Budget Hearing City Manager Kelly said everyone could criticize the increase; however, when they see the type of equipment being used to service the City, they may not be so critical. City Manager Kelly said he reviewed each Department's Budget and the Department Heads were aware that their Budgets would be cut to the bare bones. He said as long as the City continues to grow, the City would not have problems financially; however, the City was not growing as it has in the past. City Manager Kelly said the Community Development Department has to meet the new Growth Management requirements and one of the requirements was Capital Improvements. He said each item had to be identified such as, services, revenues and developments. He said the equipment needed had to be purchased and funds had to he available. City Manager Kelly said there are monies expected for the future from the sale of the surplus property and Land q—tion 7; however, the monies were not available for this year's Budget. He said hopefully, the decision the City Council made in eliminating the proposed 6% Utility Tax would be the correct decision. Mayor Abramowitz Opened the Public Hearing. Ray Munitz, Resident, said he was a Councilmember for two ye ars. He said the residents have recently observed this City Council fighting over who should be receiving credit for the elimination of the 6% Utility Tax; however, the credit belonged to the residents for standing up for their beliefs. Mr. Munitz said he has been a Certified Public Accountant for 52 years and dealt with Budgets for several years. He asked what the unappropriated surplus was estimated to be on September 30, 1988. Mr. Burroughs said there would be $348,010.00 of which City Council directed staff to include the Interim Service Fees which would make the surplus $615,630.00. Mr. Munitz said he did not recognize in the anticipated revenue where the surplus was indicated for balancing the budget. He said he did not want the General Fund Budget to be in the same position as the Utility Fund Budget. Mr. Burroughs said these monies were listed as carried over funds and Mr. Munitz said the information distributed to the Public did not indicate the monies being unappropriated surplus. Mr. Munitz said the expenses indicated Sanitary Services of $1,530,217.00 and he did not see it listed in the revenues. Mr. Burroughs said the information distributed to the residents was only a synopsis of the Budget and did not list all of the line items. He said he could not produce and distribute detailed items to the public; however, he can assure the public that the monies anticipated for the collection of Sanitary Services was in the figures of charges for services. 1 1 k Page 10 9/6/88 - Budget Hearing TAPE 3 Mayor Abramowitz said this meeting was the first presentation of the Budget and there would be a final meeting on September 22, 1988 at 7:00 P.M.; therefore, Mr. Munitz should discuss his concerns with the Finance Director before the next Budget Public Hearing. An Unannounced Speaker said the City had an Insurance Advisory Board and an Investment Advisory Board and he suggested the City Council create a Budget Advisory Board to work with the Finance Director and City Manager. He said the Board could be composed of the residents who are experienced in balancing Budgets. Mayor Abramowitz said this was a very good suggestion. Mr. Munitz asked where the interest income from funds was listed in the Budget and Mr. Burroughs said the interest income was listed under the item "Miscellaneous Revenue". Mr. Burroughs said the State of Florida mandated a classification of Revenue and Functional Expenditures. He said in Miscellaneous Revenue, the Interest Income of each Fund was listed. He said the specific item of Miscellaneous Revenue for Interest income was $240,000.00 Mr. Munitz said it was very easy.to over --estimate the expenses and under estimate the revenues causing a surplus at the end of the year. He said the residents may be paying an ad valorem rate higher than needed. He said the Budget was a wish list -and the figures for the Budget had to be reasonable. Mayor Abramowitz announced that the 6% Utility Tax was eliminated from the Budget for the residents who entered the meeting late. Herman Gross, Representative of the Civic Association of Kings Point, thanked the City Council for eliminating the proposed 6% Utility Tax. He said the Civic Association has spent a lot of time analyzing the Budget. He said the Public Works Department asked for $35, 000.00 for the Buildings and Grounds Budget and the City Manager increased this amount to $85,000.00. He asked why this was increased. City Manager Kelly said the City was obligated to provide beautification on Nob Hill Road and Mr. Burroughs said the current Budget provided $70,000.00 for this project and the project was not implemented. He said the estimated cost of the project would be $14,000.00 and the time the Budget was prepared, the Public Works Department was not aware that the project could not be completed. Mr. Gross had concerns with the contents of the Legal Services Account and asked that the COMAR item be explained and City Attorney Doody said his printout indicated that there were no legal services; however, this was not correct. City Attorney Doody said the legal services for the previous year were in the amount of $32,000.00 and this amount were increased this year to $35,000.00. He said the prosecution services was budgeted last year as $18,000.00 and this year, there would be an increase of $2,000.00 making the total $20,000.00. He said the prosecution services were increased for two reasons, to Page ll`/ 9/6/88 - Budget Hearing accommodate the increased workload of the Code Enforcement Board and because there would be 2 more Code Enforcement Officers hired which would increase the Board's legal services. Mr. Gross asked if the Charter Board ever required legal services and City Attorney Doody said the Charter Board was authorized under the Charter to hire their own Counsel; therefore, the cost for their Counsel would be deducted from their Budget. Mayor Abramowitz suggested Mr. Gross contact the City Manager regarding his questions and C/M Hoffman said Mr. Gross could get the answers to his questions before the second hearing. Joseph Schreiber, Resident, said the City Council would be defeating their purpose in holding a Public Hearing if the residents were not allowed to ask their questions. He said the residents were interested in the concerns of the Budget. Jess Levine, Resident of Kings Point, said several days ago AT&T announced that they over paid several areas and he asked if this would impact Tamarac. City Manager Kelly said Tamarac would not be affected by this matter. Bernard Hart, Resident, said the resident who left in a hurry and stated that his taxes were raised every year was incorrect because last year, the City's ad valorem was lowered. Mr. Hart said last year, there were increases given to Departments totaling $3,085,775.00 because of the revenues. He said there were 10 Departments increased from $50,000.00 to $672,000.00. He said every business in the Country begins to retrench when they are having problems with finances. Mr. Hart said when the Building Department was increased to $655,632.00 last year, it brings a question as to whether they should be allowed an increase this year of $87,000.00. He said Public Works was increased last year from $352,000.00 to $733,000.00; therefore, it may not be necessary to allow an additional $65,000.00 for this year's Budget. He said Parks and Recreation was increased $239,000.00 last year, and he questioned if an additional $59,000.00 is necessary this year. He said these matters should be considered when looking for areas to cut. Mr. Hart said he has heard discussions regarding the City approaching buildout and the revenues would have to be made up. He said the Budget indicated revenues for this year in the amount of $16,408,998.00 against last year's amount of $14,879,035.00 which indicated that there were 1.5 million dollars more. Mayor Abramowitz announced that former Mayor Walter Falck was attending the meeting and he said he would like to hear Mr. Falck after this Item was completed. Karen Dickerhoof, Chairwoman for the Parks & Recreation Board, said at the Board's last meeting, they reviewed the Budget and submitted their Budget to the City Council. She said the Board wanted to support the Budget with some cautionary remarks. Page 12 9/6/88 - Budget Hearing Mrs. Dickerhoof said this year's Budget for the Parks & Recreation Department was very conservative and the increase in taxes were not the best answer to the problem at this time; however, there would be increases needed in this Department in the future because of the Multi -Purpose Complex and the Tamarac Sports Complex. She said there will be expansion of the existing programs and additional staff would be needed. Mrs. Dickerhoof said the Parks & Recreation Board agreed with this year's Budget; however, they have goals in expanding programs for the youth and senior citizens. Max Ingram, Resident of Lime Bay, said V/M Stelzer and Ray Munitz were trying to make heroes out of themselves. He said these men were on the City Council when the ESM investment was made. He said in reviewing his 1988 proposed property tax, he found that the City's tax constituted only 15% of the entire tax bill whereas Public Schools constituted approximately 40%. He said last year his tax bill was $45.15 on a $40,000.00 Assessment and Homestead Exemption Tax. He said this vear, this would increase $4.84; however, the homes with an Assessment of $100,000.00 will pay an additional $27.00 per year. Mr. Ingram said the residents could not expect the City to furnish services without sufficient taxes to pay for the needed services. He said the services such as, Police, Fire, Public Works, Parks and Recreation, ambulances, Social Services, etc., are needed and the residents should assume their Fiscal obligations to a financially.responsible Administration. He said in another State he paid more taxes; therefore, the residents should be happy with such a low City tax rate. Leo Klineman, Resident of Kings Point, said the City Manager and the Finance Director had a tremendous job in preparing the Budget and they would probably be very pleased to have concerned residents who were knowledgeable about Budgets helping them. He asked the City Council to consider creating a Budgetary Board to assist the City. Vickie Beech, Resident, said she was pleased that Mr. Hart brought up the matter regarding increases given to 4Aie Departments last year because these matters should be reviewed. She said she hoped that the City was not serious about not looking into the past because looking into the past may create a better future. Mrs. Beech said the City's employee salaries were much larger than the surrounding Cities and she hopes that the City Council recognizes these increases for the Department Heads. She said if this continues, she would not be able to live in Tamarac because of the needed increase in taxes. She said if the residents have to bite the bullet, then the Department Heads should have to as well. Mayor Abramowitz Closed the Public Hearing with no further response. Walter Falck, Executive Director of the Broward League of Cities, said he was not present to discuss the issue of taxes or deficits, etc. He said he was present to discuss a matter that he observed as missing from the Budget, which is the City's Insurance Manager. Page 13 �J 9/6/88 - Budget Hearing Mr. Falck said he was not going to speak of personalities or procedures but of experience. He said when he first became Mayor of Tamarac, one of first things brought to his attention was the fact that the City lost their Workers' Compensation Insurance because the City did not adhere to the rule book. He said the City entered the Florida State Pool which was a tremendous cost to the City by adding 33-1/3% for Workers' Compensation Insurance. Mr. Falck said he asked the City Manager at that time, why the City got themselves into this position and the City Manager said the Finance Department handled the payments, the Personnel Department handled the claims and the City Manager's Office handled the overall review of the Insurance. He said the City was able to get the Insurance back; however, changes and modifications had to be made. He said the City learned that the people reviewing the policies were not qualified to do so. Mr. Falck said there have been several problems with insurance since he has been out of office. He said within the last 6 weeks, he has been excused from a personal suit as the Mayor of Tamarac and an individual. He said part of this suit was because the City did not purchase the proper type of liability insurance for the City's elected officials. Mr. Falck said he was asking from the heart of experience that the City does not permit another situation where there are so many people involved in insurance matters that the City will end up losing their insurance privileges. 4. MOTION TO ADOPT a proposed millage rate for Fiscal Year 1988/89—. SYNOPSIS OF ACTION: APPROVED the illage rate of 3.3598 for Fiscal Year 1988/89. * C/M Bender MOVED to ADOPT the proposed millage rate of 3.3598 * for Fiscal Year 1988/89, SECONDED by C/M Hoffman. V/M Stelzer said the City Council did not agree with the Insurance Budget at their previous Workshop meeting. He suggested the millage rate be approved subject to an analysis of the Insurance rates. Mayor Abramowitz asked if the figures represented in the Budget could be changed and City Manager Kelly said the adoption of the proposed Budget at this time would not prevent the figures from being changed because this was the first hearing. He said the City Council could decide to remodify the Budget before the second hearing. Mr. Burroughs said the Budget could be decreased; however, it could not be increased. He said if the proposed millage rate was adopted at this time, it could not be exceeded at the second Public Hearing. VOTE: ALL VOTED AYE Page 14 9/6/88 -- Budget Hearing 5. MOTION TO ADOPT a tentative General Fund budget for Fiscal Year 1988/89. SYNOPSIS OF ACTION: APPROVED a tentative General Fund Budget in the amount of $16,408,998.00 for Fiscal Year 1988/89. City Manager Kelly said the tentative General Fund Budget for Fiscal Year 1988/89 is $16,408,998.00. * C/M Hoffman MOVED to APPROVE the tentative General Fund * Budget in the amount of $16,408,998.00 for Fiscal Year * 1988/89, SECONDED by C/M Rohr. VOTE: ALL VOTED AYE 6. ANNOUNCEMENT of percentage increase/decrease of recomputed millage rate over/under the rolled -back rate necessary to fund the General Fund budget for 1988/89. SYNOPSIS OF ACTION: ANNOUNCED an increase of recomputed millage rate over the rolled -back rate necessary to fund the General Fund Budget for Fiscal Year 1988/89 to be 9.66%. Mayor Abramowitz announced that the recomputed millage rate over the rolled -back rate necessary to fund the General Fund Budget for Fiscal Year 1988/89 was increased to 9.66%. 7. ANNOUNCEMENT of the time, date and place of the second public hearing during which a final millage and General Fund budget shall be adopted. SYNOPSIS OF ACTION: ANNOUNCED the second public hearing to be on September 22, 1988 at 7:00 P.M. in the Council Chambers. Mayor Abramowitz announced that the second Public Hearing in which the final millage and General Fund Budget will be adopted would be held on September 22, 1988 at 7:00 P.M. in the Council Chambers. 8. PUBLIC HEARING on all other fund budgets for Fiscal Year 1988/89. SYNOPSIS OF ACTION: Public Hearing was held. Mr. Burroughs said the Special Revenue Fund Budget is $38,750.00, Debt Service Fund Budget is $946,712.00, Capital Projects Fund Budget is $2,788,997.00, Utilities East Budget is $391,548.00, Utilities West Budget is $18,536,252.00, Internal Service Funds Budget is $1,974,917.00, General Agency Fund Budget is $40,000.00 and combined with the other Funds Budget the total, is $24,717,176.00. Mayor Abramowitz Opened and Closed the Public Hearing with no response. Page 15 9/6/88 - Budget Hearing 9. MOTION TO ADOPT tentative budgets for all other funds for Fiscal Year 9988/89. SYNOPSIS OF ACTION: APPROVED. * C/M Bender MOVED to APPROVE the tentative budgets for all other * funds for Fiscal Year 1988/89, SECONDED by C/M Hoffman. VOTE: ALL VOTED AYE 10. ANNOUNCEMENT of proposed debt service millage rate for Fiscal Year 1988 89. SYNOPSIS OF ACTION: ANNOUNCED the proposed debt service millage rate for Fiscal Year 1988/89 to be .8136% Mayor Abramowitz announced the proposed debt service millage rate for Fiscal Year 1988/89 to be .8136%. Mr. Burroughs said in 1975 the General Obligation Bond Tgsiip is .0553, 1986 General Obligation Bond Issue is .5100, 1987 Bond Issue is .2483 for a total of .8136. 11. MOTION TO ADOPT a proposed debt service millage rate for Fiscal Year 1988/89. SYNOPSIS OF ACTION: APPROVED. * C/M Rohr MOVED to APPROVE the proposed * p posed debt service millage rate for Fiscal Year 1988/89, SECONDED by C/M Bender. VOTE: Mayor Abramowitz - Aye V/M Stelzer - Absent C/M Bender - Aye C/M Hoffman -- Aye C/M Rohr -- Aye TAPE 4 Anthony Grimaldi, Resident, said at the beginning of the meeting, the Mayor made statements that the City Council was not aware of where the money came from. He said the City Manager and the Finance Director found a lot of money. He said the City Manager and the Finance Director should have submitted the new Councilmembers and the Mayor with documents of the City and where all of the money was. Mayor Abramowitz said when it was time for the Budgetary process, the Finance Director prepares the Budget for the City Council for their review. He said the City Council reviews each line item for each Department. Mayor Abramowitz said he could not concern himself with where, who or what; however, the monies were not sudden discoveries. He said he was not aware of the excess money in the Budget until they began to review the Budget. He said there was nothing wrong with the V/M Stelzer's suggestion; however, he did not want to take the money from the people. Mayor Abramowitz said he wanted the surplus returned to the people without crippling the Departments or the City. He said the City Council confronted the Finance Director 1 Page 16 9/6/88 - Budget Hearing 1 1 IJ on the ramifications of reducing the rates with the surplus and the Finance Director said in a year, the rates would have to be increased and the Departments would be crippled. Mr. Grimaldi said City Manager Kelly has been looking out for his employees which every employer should do; however, the Government had to tighten their belts on several matters; therefore, the City of Tamarac should do the same. He said if money was needed every year and brought to the residents through taxes, there would be problems. He suggested the City Council try to find the monies elsewhere before upsetting the residents with taxes. Mayor Abramowitz said the City was trying to correct th services in the City and the City Council was trying to provide the needed equipment and services to the City a d the Departments in every way possible. Herman Shulman, Resident, asked how the decrease in the second water meters was determined and Mayor Abramowitz Gai,l the residents were being charged for Impact Fees a second time when they were purchased. Sonny Winnerman, Resident, thanked the City Council for doing their homework on the Budget and eliminating the proposed 6% Utility Tax. Mayor Abramowitz thanked the residents for their attendance and good behavior. He said the City of Tamarac and the City of Lauderhill made presentations earlier in the day to the Broward County Commission that may save the City of Tamarac, $1,200,000.00. He said he has never had the experience of working with experienced and knowledgeable people such as the staff of Tamarac. With no further business, Mayor Abramowitz ADJOURNED the meeting at 9:30 P.M. t44-4,k-1 Uh NO MAN ABRUINOWITZ, MAYOR I CAROL A. EVANS, CITY CLERK "This public document was promulgated at a cost of $223.20 or $6.20 per copy to inform the general public, public officers and employaes of recent opinions and considerations of the City Council of the City of Tamarac." APPROVED AT MEETING OF y/,;� Page 17 ATTACHMENT I - CITY COUNCIL BUDGET MEETING 9/6/88 Page 1 of VICE MAYOR STELZER'S Lhfi= SEE PAGE 7 Most of the residents here came down to protest one item -The Utilities T a.x . I have a suggestion that will permit the removal of this onerous tax from the B'.idge t , so that some of these people could leave early if they so desired. _. I was liason to the Budget for four years. The major- ity of the Council always resisted imposing a Utilities Tax as it was an outrageous tax and inequitable, and as Ray ',�anitz says "Taxation without Representation" This year I refused to be liason to the Budget because your Mayor called me paranoid. You can see what ray colleagues accomplished. At one of the Workshop meetings, C/M Hoffman suggested we assess a 10% Utility Tax and take the Garbage Removal off the Utility Hill. This would have fulfilled someones Campaign promise. The majority said no, and settled for a 5% Utility' tax on Llectric and Telephone to make up the short -fall in the Budget. During the discussion it was discovered that the FP&L could not start collecting taxes until two months after the ordinance was signed, and I pointed out "that this two month - delay would.reduce the amount' of tax. collected. I suggested that as long as they were going to impose the tax, it should be raised to six percent to make up the shortage. C/M Hoffman, at the Democratic Club ? 'st Wednesday, started the rumor that I had proposdd th4t the'City assess a Utility Tax of six percent, which is a lie, so that he would not be blamed. The Tax on Electric would have generated about .850,000 and about $ 150,000 on Telephone. At the last Workshop meeting which no one of the public attended except Melanie Reynolds, it developed that the FP&L could start up quickly, but we would have difficulty with Southern Hell. There were too many companies involved. It was agreed to remove the tax on tele- phone service, and the Finance Director now cane up with a new figure for a year's tax on Electric of 'l.300, 000. It was said at the public mee ting on the Utilities tax, that the average monthly electric bill: was '>a 100.00 or so a month. I realize that some homes may have much -more than this as an average, but also some homes may have less than 3 100.00 average. Let's assume the 1100 is average, so that the tax on your electric bill would be about $ 60.00 per year. When the first three Councilmen voted yes' which assured the passage of the ordinance, I made a horrible .mistake of saying that I had no alternative and voted 'yes'. Now let's come to my surestion as to how we can eliminate this unreasonable tax. For two years, I have been arguing with the Finance Director the City Manager, and the Utilities Director that the Utility ��Jr1?�ZC?Ts nP,, rrv; 9/(,/88 -2- was overcharging the Residents for Water and Sewer, an4 was accumlating a huge surplus. I could not get a direct answer. For the year ended 9/30/85, the profit on operations was 2)7,000, and for the year ended 9/30/86, tr,e profit rose to $ 1,200,000, both years included debt service. Some time in April of this year, Touche Ross, our Accoun.-ants finally submitted the report for the year nded 9/30/37, and I reprimanded the Accountant for submitti4g the reportso late, and without having an exit conference. The usual procedure is that after the audit is completed, the Accountant zmeets with Management and discusses the rep rt be- fore it is issued, to resolve any inaccuries or differ races of opinions. Have you any idea what the 9/30/87 report showed as an operating profit? * 2,100,000 profit. I demanded a meeting with the Finance Director, the Accountant and the City Manager. I did not want the U ility Director in on this meeting.. He always gave me double-talk answers. •, I posed several. questions. Who set the rates? What happens to the excess funds generated? Who authorized the transfer of CIAC to Surplus? We receive Contributions in Advanceof Constructiom from Developers to guaranty connection availablity. These tunds were always shown separately on the report, asthey rea ly are Trust Funds. I asked for an analysis of the Surplus as shown ork the report. How much is Retained earnings, and how much is for CIAS's? The Surplus was now around �S15,000.000. Sti 1 no answer as of today. Early this year, a Workshop was held :.,t the request of she Utility Director. He indicated that the rates for this year would have to go up. Do you remember the rusty p'pes poisonous water scare? The statement the T,ayor made, ' 0an you imagine brushing your teeth with this water? " "Th rates were going up because this condition had to be remedied: This was only a smoke screen, a red herring, because of Campaign promises that rates would be reduced. Not a word has Iren heard of this condition since my article in the newspa rs exposing this farce. A short time after the meeting with the Accountan � the City Manager s,-ignsted to the Utility Director., Sill G eenwood that he leave the Utility as Director, and transfer to'the General operations of the City, as an overseer to the lepartment heads. Bill Greenwood refused to make the transfer, d quit a his job, along with Charlotte Bouchard the Accountant �n the Ut-- lity. �` COUNCIL MEETING 9/6/$$ Page 3 of 4 --3- When 3udget discussions started, the Finance Director stated that this years operations of the Utility would generate 1,500,000 profit. It was finally disclosed that Bill Greenwood supplied the engineers with the rates that they included in their reports. No paper: can be found as to how the rates were determined. I t was finally admitted that the water pressure had been increased to 90,# at the Pump. I had found out about this last year, but could do nothing about it. Syd Stein was lison to the Utility, and he knew about the increase in pressure. This forced residents to useand pay for more water than wci.s needed. It also increased your sewer ball, which is based on water consumption. Sprinklers and garden hoses are generally used with the controls wide open. There was unneeded pressure in showers and at faucets. I insisted that the water pressure be reduced and it has been cut 15#. Not one complaint has been received of low water pressure. r In an interview with the Sun Sentinel reporter last week your 1,7ayor indicated that there might be a reduction of water and sewer rates this year, but he had no information as: to what the reduction would be. This is not so. At a Workshop meeting last week it was tentatively agreed, but not voted upon,to reduce the vater rates by 150 per thousand gallons, and the sewer rates by 250 per thousand gallons, a total of 400 per thousand gallons. An average home uses between five and six thousand gallons per month. This would reduce the monthly ball by 1 2.00 or $ 2.50 per month, or 1 25.00 to $ 3a.00 Der year, which would still leave a substantial portion of the profit unused from this year. I have no idea as to the correct amount of Surplus carried over from prior years. The combination with the CIAC's clouds the entire picture. I suspect we still have several million dollars available. Now here is my suggestion, and I will make it in the form of a motion. = t -a, of AV, f rle'nds There" on the is will i, r7ssirrrrett ion by saying that J t is illegal, o '�°i�l ►.. the City i a, ' : S tz tgte s, bited," 'or were there any cases 'prdl b `%r g;'MY, beer. dv W .�" ''zfar cas s ")Dr law t rmi.tt—,# hh 't may never have crime up., and if it is not b.ted , is pmisablo. The tremendous surplus in the Utility belongs to the Residents of Tamarac. The Utility Tax prposed is being assessed on these residents. Here is my suggestion: Forego the rate reduction temporarily. Let's wait for the ,ccountant to unravel the mess in the Surplus. We should have the report sometime in December of this year, ad when we find / / I --- out exactly what our Sury�lus is then we can reduce the rates intelligently. I move 11 That moneis be transferred from the Surp us of the Tamarac Utility West, to the'General Fund in an am unt sufficent to eliminate the proposed Utility Tax from the General Budget. Do I hear a Second?