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HomeMy WebLinkAbout1989-08-17 - City Commission Budget Workshop Meeting Minutes7525 NORTHWEST 88TH AVENUE 0 TAMARAC, FLORIDA 33321-2401 TELEPHONE (305) 722-5900 August 16, 1989 NOTICE OF CITY COUNCIL BUDGET WORKSHOP MEETING FOR FISCAL YEAR 1989/90 There will be a Budget Workshop Meeting of the City Council held in Conference Room #1, City Hall, 7525 NW 88 Avenue, Tamarac, Florida, on Thursday, August 17, 1989 at 9:30 A.M. All meetings are open to the public. CAE/pm Carol A. Evans City Clerk AN EQUAL OPPORTUNITY EMPLOYER POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS 1 1 r' CITY OF TAMARAC CITY COUNCIL BUDGET WORKSHOP MEETING THURSD.AY, AUGUST 17, 1989 CALL TO ORDER: Mayor Abramowitz called this meeting to Order on Thursday, August 17, 1989 at 9:30 A.M. in Conference Room #1 (City Clerk's Office). PRESENT: ALSO PRESENT: Mayor Norman Abramowitz Vice Mayor Dr. H. Larry Bender Councilman Bruce Hoffman Councilman Henry Rohr Councilman Jack Stelzer John P. Kelly, City Manager Ken Burroughs, Finance Director Bob Hoyt, Deputy Finance Director Dina McDermott, Assistant to the City Manager Pauline Walaszek, Special Services Secretary The purpose of this meeting was to review the budgets for the following Departments for Fiscal Year 1989/90: Capital Project Funds Community Development Debt Service Funds Economic Development General Services Non -Departmental Telecommunication Services Mayor Abramowitz suggested that another Workshop meeting be held on the Insurance Budget so that the Finance Department could complete the Utilities Budget. C/M Hoffman asked when the Insurance information would be available and City Manager Kelly said this meeting would be scheduled; however, everyone was aware that this was a priority matter. E-onomic Development T Pace 28 City Manager Kelly said this Budget was to promote the Economic Development in the City. He said site plans, parks and national publications were advertised. He said this year the advertising was not done because of Budgetary restrictions. He said a brochure was intended; however, the quotes were very high. He said there was approximately $4,000.00 remaining in this Account and he wanted to combine this with next year's funds and solicit other companies to join the City to co -produce a brochure to promote the City. Mayor Abramowitz said the City needed a brochure; however, he did not feel that this type of project should Page l 8/17/89 be implemented when the funds were not available. He suggested that this Budget be reduced and he asked how much it could be reduced. Dina McDermott, Assistant to the City Manager, said she could not volunteer a reduction because the Budget was prepared with very little funding. She said she was trying to put some type of promotion article together if a brochure could not be created. She said she would like to submit something to the Plan Sites and Parks magazine, which was an industry magazine that was distributed throughout the United States. She said reader service cards were submitted from various companies regarding their interest. Mayor Abramowitz asked how much the advertising cost and City Manager Kelly said it depended on what the City was interested in. City Manager Kelly said the resources to respond to all of the existing calls was not available. C/M Hoffman asked if the Chamber of Commerce would assist the City on this matter and City Manager Kelly said the City was trying to work with the Chamber of Commerce on this matter. C/M Hoffman said the Chamber of Commerce had a charge for all of their services; therefore, some funding should be available. He asked what the Chamber of Commerce was doing for the City and City Manager Kelly said the Chamber of Commerce had funds set aside for this project; however, the Chamber of Commerce has had to proceed with the project without the City. Mayor Abramowitz asked if there was $4,000.00 remaining from last year's Budget and Mrs. McDermott replied, yes. Mayor Abramowitz recommended that $5,000.00 be reduced from Item 490, Advertising. Mayor Abramowitz said he felt that Mrs. McDermott was capable of getting the project done with $6,000.00. ** There was a reduction of $5,000.00 from the Economic Development Budget. Non -Departmental - Page 64 Mayor Abramowitz said he would be asking the City Council to discuss the Comark litigation matter at the August 23, 1989 City Council meeting. He said the City Council had to make a determination on this matter. C/M Hoffman asked what Item 489, Judgement, Claims, Settlements, was for and City Manager Kelly said this concerned the Comark litigation matter. C/M Hoffman asked what Item 650, Capital Outlay -- Unallocated, was for and City Manager Kelly said this was hopeful thinking if the old City Hall Building was sold. Mr. Burroughs said Items 650 and 830, Grants --Matching Funds, equalled $700,000.00. He said the Revenue Account held $700,000.00 for sale of surplus property. He said if the old City Hall was sold, the capital outlays could be allocated. Page 2 8/17/89 C/M Hoffman asked if the funds were included in the Ad Valorem Rate and Mr. Burroughs replied, no. Mayor Abramowitz said there have been several remarks regarding the EMS matter. He said he signed a computer printout every Friday and, last week, there was a check for the EMS matter. He said the City was still paying litigation fees. C/M Rohr asked when this would end and Mayor Abramowitz said this was not known. City Manager Kelly said Counsel for the EMS litigation was trying to collect more money for the City; however, the City could end the litigation at any time. C/M Hoffman said there were funds from interest lost because of funds that were not received. He said if income was figured, there were many funds lost. Mayor Abramowitz said he recently reviewed documents which indicated that the City lived off of the interest of the surplus in the funds for several years. He said when the EMS matter occurred, the surplus funds were not available, which was a serious disaster to the tax structure of the City. Mayor Abramowitz said the problems have not gone away. He said the Comark matter occurred in 1981, the Judge recently made a ruling and the City had to act immediately on the matter. He said he would be asking the City Council to make a decision on the Comark matter at the August 23, 1989 City Council meeting. Referring to Page 65, Mayor Abramowitz asked what Item 545, Education Assessment, was for and Mr. Burroughs said this was the requirement to fund the education of the Building officials for certification. Mayor Abramowitz asked what Item 919, Trfs. -Drainage Improvement Fd., was for and Mr. Burroughs said Page 93, indicated funds in the amount of $40,000.00, which were requested for drainage retention areas. Mr. Burroughs said Page 91, indicated income in the amount $34,140.00; however, the shortfall was being transferred to the General Fund to equal the $40,000.00 to complete the project. Mayor Abramowitz asked what project would cost $40,000.00 and City Manager Kelly said the City had to have retention areas for drainage in order to build in the City. City Manager Kelly said there were no retention areas remaining and several years ago, the Utilities/Engineering Department requested that funds be reserved to provide for the retention areas. He said this matter would be discussed during the review of the Utilities Budget; however, retention areas had to be designated or the building in the City would cease. ** There was no reduction from the Non -Departmental Budget. Page 3 8/17/89 Telecommunication Services - Page 63 Mr. Burroughs said this Budget was the related expenses of the Switchboard. He said the expenses serviced the general telephone number of the City, which was 722-5900. C/M Hoffman asked if there were several people expecting to retire this year and Mr. Burroughs said there were several employees covered under the FPE Contract. C/M Hoffman asked if the City always had this contractual obligation and Mr. Burroughs said the funds were placed in the regular salaries; however, there were several problems in the employees receiving the funds because the funding may not be available in the Regular Salaries Account. Mayor Abramowitz asked if the City was paying any more money this year for this Item and Mr. Burroughs said it would cost the City more money if the Finance Director or Deputy Finance Director retired. Mayor Abramowitz asked where the funds from last year came from to pay the employees who retired last year since this Account was new this year. Mayor Abramowitz asked who would be receiving $3,200.00 for Paid Annual Leave and City Manager Kelly said the Switchboard Operator. C/M Rohr had concerns with the Pension Contribution being 10% and Mr. Burroughs said the Contributions were 8.32%; however, it was based on salaries, overtime, longevity and paid annual leave. Mayor Abramowitz said he wanted to know who negotiated the Pension Ordinance Contract; therefore, this matter would be reviewed shortly. Mr. Burroughs said it was very unusual for this type of contribution and Mayor Abramowitz said C/M Rohr's concern was valid. Mr. Hoyt said the City Council approved the Pension Plan Ordinance Amendments in January, 1988, which was payment on all earnings of the employees as opposed to the base salary. Mr. Burroughs said most Pension Plans pay on the base salary only and Mayor Abramowitz said there were several things regarding the Pension Plan that he did not understand; however, this matter would be discussed at the appropriate time. C/M Rohr said if he approved the Ordinance, he was not given the appropriate information. He said Mr. Burroughs stated that this type of payment was very unusual and Mr. Burroughs said this was his opinion. Mayor Abramowitz asked if Item 410, Telephone, was an allocated cost and Mr. Burroughs said this Item was the telephone bill for the Switchboard. C/M Hoffman asked why the Budget asked for $66,000.00 and only $25,000.00 was allocated and Mr. Burroughs said $66,000.00 was prior to the Broward Sheriff's Office merger. He said while calculating the costs when Page 4 8/17/89 eliminating the Police Department, he found that the personal lines were being charged to the Switchboard Budget as opposed to their own. Mayor Abramowitz asked if $25,000.00 was the actual amount for the costs and Mr. Burroughs said there was a question as to the number of long distance calls; however, the average cost was $25,000.00. C/M Rohr asked what Items 401, Meetings and Seminars and, 402, Travel -Other, was for and Dina McDermott, Assistant to the City Manager, said the Meetings and Seminars were for Secretarial/Telecommunication Workshops. Mrs. McDermott said the Seminars were approximately $99.00 to $150.00, which were local. She said the Seminars were held to enhance the Operators telephone skills. C/M Rohr suggested that this Item be eliminated and Mayor Abramowitz agreed. Mayor Abramowitz said just because an Item was on the list did not mean that it had to be allocated. C/M Rohr said he could understand a new employee being sent to the Seminars and Mrs. McDermott said the person that handled the Switchboard was the first person that everyone contacted. She said the Switchboard handled complaints and problems, which was very stressful. C/M Rohr said he did not disapprove of this Item providing the employee would go to the Seminars. He said the present employee has had several years experience on the Switchboard and he was concerned with the employee agreeing to the Seminars. Mayor Abramowitz asked how long the present employee has been with the City and C/M Rohr replied, 13 years. Mayor Abramowitz said there was a problem if this employee did not know the Switchboard and City Manager Kelly said the employee was not always a Switchboard Operator. City Manager Kelly said even if the employee was always a Switchboard Operator, the employee needed something to revitalize them to perform their work appropriately. He said the opportunity to learn new skills was important. Mayor Abramowitz said he resented it when there was a line Item funded without necessity and City Manager Kelly said there were several things in'the Budget that reflected a zero amount on one side and not the other. City Manager Kelly said he cut 1.7 million from the Budget. Mayor Abramowitz said there was a difference because he was looking at what was necessary; however, the employee was a Switchboard Operator long enough to know what the position required. He said if the Item was necessary for the benefit of the City, he would not object; however, he resented funding an Item that was not necessary. He said he did not want anyone to think that this was a normal procedure in the City and it would continue. C/M Rohr asked what Item 510, Office Supplies, was for and City Manager Kelly said this Item included telephone logs, out-of-town telephone books, scrap books, etc. He said all of the records had to be retained for the telephone calls. Page 5 8/17/89 V/M Bender asked if the City rented equipment from Southern Bell and Mr. Burroughs said the incoming and outgoing lines. Mayor Abramowitz asked what Item 647, Special Equipment, was for and City Manager Kelly said this was an AT&T System to provide for a switching/voice system with announcements for such things as Recreation Activities, etc. City Manager Kelly said this would also assist the Operator from losing calls when the switchboard was full. City Manager Kelly said the system provided announcement services, automated attendant services, call coverage, message drop service and voice mail service. He said voice mail service provided for messages to the various Departments throughout the City Hall. He said the original proposal for this system was $65,000.00; however, AT&T would provide this system for a cost of $13,920.00. He said this would allow the Switchboard Operator to do other work for the City Clerk's Office. Mayor Abramowitz said he had the same system which was good for someone on hold. He recommended that this Item be eliminated. C/M Rohr said if the City Manager felt that this system would be more efficient and provide more productivity, he would approve of it. He said the City Council should have confidence in the City Manager's decisions. Mayor Abramowitz said he resented C/M Rohr's remark. C/M Rohr said the City Council has been reviewing the Budget and it was not appropriate to eliminate this Item because of the cost as opposed to the possible benefit. C/M Rohr said if the City Manager felt that this system would allow the employees to be more productive as opposed to spending most of their time on the telephone, the City Council should consider it. Mayor Abramowitz said there was no productivity involved if a resident called the City regarding a complaint about a street and heard about a recreation activity. City Manager Belly suggested that the City Council review the proposal before they made their decision. He said he felt the City Council would find the proposal to be a benefit to the City. V/M Bender asked if this Item would require a lease and Mrs. McDermott said the Item would require purchase of a program. Mrs. McDermott said the program allowed for 5 different main functions. She said the size of the City, which was continually growing, did not always provide enough adequate service to the residents. She said the program would be purchased on a State Contract cost. Mayor Abramowitz asked how this program would save time for the Switchboard Operator and Mrs. McDermott said this program would save time for every person that had to answer the telephone during the day. Mrs. McDermott said the program provided a menu for the residents to chose from, such as Dial 1 for more 1 1 1 Page 6 8/17/89 information, Dial 2 for the City Manager's Office, etc. She said there were sub --menus available for direct dialing to the Departments. Mayor Abramowitz asked if the Switchboard Operator would remain at the console and Mrs. McDermott said not at the same capacity. Mrs. McDermott said the Switchboard Operator would be able to handle more resident assistance and typing tasks. Mayor Abramowitz said the residents have would to wait for a long list of instructions before they would find the Department they want to talk to. He said this program was very good; however, he did not appreciate having to wait to find the number that he needed. Mrs. McDermott said the program allowed the residents calling daily to dial direct as opposed to waiting for the Switchboard Operator to connect them. C/M Hoffman asked if the Switchboard Operator was over worked and Mrs. McDermott replied, yes. C/M Hoffman asked how many numbers would be assigned to the Department and if the caller had to listen to every TAPE 2 number before finding the Department they needed. Mrs. McDermott said there were 10 major Departments in the City and the menu would contain numbers to dial directly to the Departments. V/M Bender said the program also directed the caller to wait for the Operator after all of the numbers were indicated if they did not find the number they wanted. Mrs. McDermott said the menu only ran for seconds as opposed to minutes. She said the residents presently had to wait and hear the telephone ring if they were the ninth or tenth caller because only eight calls could presently come into the City through the console. Mayor Abramowitz asked how many calls this program would allow and Mrs. McDermott said each call would drop through and a message would be provided. V/M Bender asked how many Cities had this system and City Manager Kelly said most of the Cities were purchasing this system this year. V/M Bender suggested that the City wait until the other Cities experienced the system before purchasing it and Mrs. McDermott said Broward County has had the system in place. Mayor Abramowitz said Broward County had more finances than the City of Tamarac. He said he would like to give everyone what they wanted; however, he did not want to purchase anything this year that was not necessary. Mrs. McDermott said when staff's ability was limited this type of program would increase efficiency and productivity. She said the City Manager's Office had one Secretary and Mayor Abramowitz disagreed. Mayor Abramowitz said the City Attorney's Secretaries and the Senior Aide were available to assist the City Manager's Office. Page 7 8/17/89 C/M Hoffman suggested that this Item be eliminated and, if there were contingent funds available after the Budget, the system could be reconsidered. C/M Rohr said he would like this Item reconsidered before the Budget was approved and final. ** There was $13,920.00 eliminated from the Telecommunication Services Budget; however, if there were contingency funds available after the Budget review, the Item would be reconsidered before approving and finalizing the Budget. General Services - Page 62 Mr. Burroughs said this Budget was for the postage and copy machine costs. Mayor Abramowitz asked if the Utility Bills were sent first class and Mr. Burroughs replied, no, zip code pre-sorted. Mayor Abramowitz said he asked the City Clerk for the cost of bulk mail and the answer was approximately $.17; however, bulk mail was approximately $.13. He asked why the City paid more for bulk mail. Mrs. McDermott said she would ask the City Clerk to submit information to the City Council on this matter. Mayor Abramowitz asked what Item 440, Rentals and Leases, was for and Mr. Burroughs said this Item included the copy and mail machines and scales. 0 Mayor Abramowitz asked if the costs were based on past history and Mr. Burroughs replied, yes. ** There were no reductions in the General Services Budget. The City Council requested a Report from the City Clerk regarding postage costs. C/M Hoffman asked what happened if the Revenues were over estimated and the funds were not available to compensate. Mr. Burroughs said this occurred last year; therefore, the Budgets were being suspended this year. C/M Hoffman said the shortfall was known; therefore, the Revenues were not estimated wrong and Mr. Burroughs said there was a shortfall in addition to the known shortfall. C/M Hoffman asked if the City could borrow money if there was an emergency shortfall without going to Referendum and City Manager Kelly said this would depend on the amount. City Manager Kelly said the Charter restricted any amount of money being borrowed. At this time, City Manager Kelly read Charter Section 7.16, Bonds and Municipal Borrowing, into the record. Mayor Abramowitz said the City could borrow funds to pay the salaries if there was a shortfall because it was not considered a capital improvement. Page 8 8/17/89 1 I C/M Hoffman said he felt that the City was allowed to borrow funds; however, it could not float Bonds without Referendum. City Manager Kelly said there was discussion regarding the redesign of the Fire Station. He said Scharf & Associates, Architects, volunteered to do the design and the work could be done In --house by Public Works. He said $1,000.00 was needed to do the design and the funds were available under Other Contractual Services in the existing Fire Department Account. He said because it would not cost much, he felt that this project should be started. Mayor Abramowitz said the Public Works Department was under staffed and he would not object to this project providing the other things needed in the City were not neglected. City Manager Kelly said the City Council did not come to a uniform decision regarding the water cooler service for their office. He asked if he should sign the requisition, which was due, for the service. Mayor Abramowitz said he did not feel that this service was needed and C/M Rohr agreed. C/M Hoffman, V/M Bender and C/M Stelzer said they wanted to keep the service. City Manager Kelly said the City Planner was revising the Land Development Code and a Planning Counsel firm was needed to assist her. He said the funds were available and the Planning Counsel would be identifying sections of the Code requiring amendments in order to implement the Plan, determine the provisions necessary to implement the Comprehensive Plan, review the amendments which the City proposed for the Code and identify more creative ways to handle Code changes. He said site plan provisions, landscaping requirements, platting requirements, subdivision improvements, a zoning Ordinance and a traffic impact Ordinance would be included in the review. Mayor Abramowitz asked how much money was needed and City Manager Kelly replied, $8,000.00. He said the binding and printing were required for the Comprehensive Plan in the amount of approximately $5,000.00. He said this Item could be placed on the next City Council. Agenda for approval and the City Council agreed. C/M Hoffman asked if the Land Use Plan was accepted and City Manager Kelly replied, no. C/M Hoffman asked how the Plan would be approved since there was no low-income housing and beaches and Mayor Abramowitz said the City Planner was confident that the Plan would be approved. City Manager Kelly said the City Planner would meet with the City Council at any time to discuss the Community Development Budget; however, he would be asking that the City Planner not be disturbed for a few days so the Plan could be finalized. Page 9 8/17/89 C/M Hoffman suggested that the City Council review the Community Development Budget at this time, so that the City Planner could work on the Land Use Plan. He said he did not understand what the relationship was between the Utilities and Community Development Budgets. He said the City Council may find things to be eliminated from the Community Development Budget. Mayor Abramowitz said he did not have anything against the Community Development Budget; however, he wanted to give the City Planner enough time to finalize the Land Use Plan. City Manager Kelly said the City Planner was ready to review the Budget as soon as the City Council wanted to. Mayor Abramowitz said he would be calling a Workshop meeting of the City Council to tour the surrounding Cities with the City Planner, City Manager, Dina McDermott and Steven Oxenhandler. City Manager Kelly said the tour could be done; however, the tour would have to be advertised, taped, open to the public with no voting by the City Council. Mayor Abramowitz said he would like this done. At 11:00 A.M., Mayor Abramowitz RECESSED this meeting and RECONVENED at 11:05 A.M. with ALL PRESENT including Kelly Carpenter -Craft, City Planner. Community Development - Page 22 Kelly Carpenter -Craft, City Planner, said as a Manager she like to treat her staff as her most important resource. She said the staff believed in a commitment to quality in the Department which meant protecting the Public interest combined with quality service to the residents and developers. She said there was a balancing act that had to take place in the Community Development Department. Mrs. Carpenter -Craft said the Department had a work program which included the following: 1) Revision of the Codes implementing the Comprehensive Plan, primarily, Sections 20, 28, 24, 6.7 and 21 2) Complete the Comprehensive Plan and have it adopted 3) Respond to the West Port DRI 4) Work with the landowners in north Land Section 7 to protect the City tax base 5) Cross train the office personnel to compensate for the lack in staff 6) Prepare a Xeri-Scape Ordinance 7) Update the Drainage, Transportation and Parking Impact Fees 8) Continue to process the applications which were submitted daily for development plats, site plans, rezoning, special exceptions, variances, etc. Mrs. Carpenter -Craft said the programs were primarily mandated and the Budget was prepared allowing the minimum level of service to be provided. She said she was pleased to be a part of the City's staff and she learned a lot during her first six months. She said it has been a pleasure working with the elected team and professionals. Page 10 1 TAPE 3 1 1 Mayor Abramowitz said he was very pleased with the operations of the Community Development Department. He said a developer came to see him over one year ago and, when asked if he would be building in the City, the developer stated that Tamarac would be the last place he would build because of its reputation. He said at the Economic Development Seminar, the same developer indicated that he was presently considering the City of Tamarac for his future developments. He said he found this to be a supreme compliment. C/M Hoffman asked what Item 161, Longevity Pay, was for and Mrs. Carpenter -Craft said this was for Irene Adams and Ruth Russo and the funds had to be Budgeted. Mayor Abramowitz asked why the Budget increased for Item 401, Meetings and Seminars, and if it could be reduced. Mrs. Carpenter -Craft said when the previous City Planner left, the funds were not spent until she attended a Conflict Resolution Seminar in Orlando, Florida. She said in April, 1989, the Department Heads were told not to spend any more meetings funds; however, more money would have been spent if allowed. Mrs. Carpenter -Craft suggested that this Item not be reduced. C/M Rohr asked what Item 311, Architectural Services, was for and Mrs. Carpenter -Craft said $8,500.00 was Budgeted last year in Engineering and Planning Services which was evident. She said the City Council would be reviewing this matter for approval at the August 23, 1989 City Council meeting. She said the money would be used to assist in updating the Impact Fees. She said $5,000.00 would be used for further revisions to the Code and the Architects would be hired to critique what the Community Development Department has done to make sure that the Codes could be implemented from the user's side. Mayor Abramowitz asked if the Community Development Department has been contacting the surrounding Cities to see if the fee structures being proposed were in line with others. Mrs. Carpenter -Craft said the Department never retained project time sheets; however, this was being done now and the data was being collected so that the appropriate time would be applied to each project. She said she did not know if the fees were appropriate; however, the time sheets would assist her in this matter. She said all of the fees were increased last year except for platting. She said this information would be available at the end of the year. Mayor Abramowitz said he would like to make sure that the costs covered the personnel time it took to do the project. He said he did not want the City of Tamarac charging more than the other Cities. Mayor Abramowitz said he informed the City Council of the tour to the other Cities that he would like them to take. He said he was very impressed with what he saw and he would like the City Council to see why. C/M Rohr asked if Mrs. Carpenter -Craft was familiar with the City of Plantation and Mrs. Carpenter -Craft replied, Page 11 8/17/89 yes. C/M Rohr asked how the City of Plantation got the developers to do the landscaping. Mayor Abramowitz said the tour consisted of viewing the landscaping and C/M Rohr said the Cities of Plantation and Coral Springs had beautiful landscaping. C/M Hoffman said the City of Coral Springs could not be equated to anything else because they had a land community. Mayor Abramowitz said he saw several beautiful neighborhoods; however, the developer indicated that he could not build this type of development in the City. He said the City Manager informed him why this could not be done. C/M Hoffman asked Mrs. Carpenter -Craft not to rewrite the proposed Sign Ordinance to reflect the Planning Commission's recommended changes. He suggested that a separate sheet be given to the City Council with the recommended changes. C/M Hoffman said rewriting the Ordinance was very costly and it would be feasible to wait until the Public Hearings were held on the Ordinance before it was rewritten. ** There were no reductions from the Community Development Budget. G. 0. Bond Fund - Pages 75 - 86 Mr. Burroughs said Page 77 indicated the 1975 G. O. Bonds which were used to buy the old City Hall Building. He said the last payment would be made in July, 1990 in the amount of $45,000.00 and the principal would be $2,700.00. Mr. Burroughs said Page 75 indicated the revenues to support Page 77. He said this Bond would levee .0388 Mills. Mr. Burroughs said Page 81 was the principal and interest due on the 1986 Bond for the Municipal/City Hall Complex. Mayor Abramowitz asked if the money was borrowed'in a series of Bonds and Mr. Burroughs replied, yes. Mayor Abramowitz asked if some of the Bonds would be paid off as time progressed and Mr. Burroughs replied, yes. Mr. Burroughs said as the principal decreased, the interest would increase. He said it would cost approximately $550,000.00 per year until the Bond was paid back and .4369 Mills would be levied to pay the Bonds. Mayor Abramowitz asked if the fluctuation in funds was the difference between interest and principal and Mr. Burroughs said the yearly payments were level. Mayor Abramowitz asked if it would be years before the first Bond matured and Mr. Burroughs said the Bonds were being paid each year. Mayor Abramowitz asked if any of the Bonds would retire in the near future. Page 12 8/17/89 Mr. Hoyt said as the interest decreased because the Bonds retired each year, the principal amount increased so that there was a level of constant debt each year. Mayor Abramowitz said the City Manager informed him that the Debt Service on the Utility Bill would be reduced by approximately $.20 per month each because some Bonds would retire. C/M Hoffman said the Utility Bill only contained the Utility Debt Service Bonds. He said the Utility Debt Service had nothing to do with the General Fund Debt Service. C/M Rohr asked when the Debt Service would expire and Mr. Hoyt said the Debt Service was purchased for a 25 year period. Mr. Burroughs said the last payment would be made in the year, 2010. Mr. Burroughs said Page 83 was the 1987 Bond for the Police Facility. He said Page 85 indicated the Bond interest to be $209,000.00 and the principal was $55,000.00; therefore, the bottom line was $264,600.00. He said this Bond was not proposing a Debt Service because there would be a rental of $240,000.00. He said the City Council instructed him to include the Debt Service and certification to the property appraisers; however, there were no changes made. C/M Hoffman said the City Council agreed to reduce the operating millage and increase the Debt Service. Mayor Abramowitz said the City Manager indicated that the rental costs would be deducted from the Debt Service. He said the City Council agreed not to change the Debt Service because the funds should be returned to the people who paid the largest percentage of taxes in the City. He said an in-depth study of the tax situation was being done and there were shocking revelations occurring. Mayor Abramowitz said when this agreement was made, funds would be returned to the residents by lowering the millage. C/M Stelzer said the City was reneging on the original agreement made with the residents on how the Broward Sheriff's Office Contract was being bought. C/M Hoffman said the City Council informed the residents that the monies would be used to offset the cost of the Broward Sheriff's Office Contract. Mayor Abramowitz said he informed the residents that the cost of the maintenance of the Policy Facility would not be charged to the residents. He said this was correct. He said he did not favor returning funds to the residents who did not pay taxes. C/M Hoffman said when the Broward Sheriff's Office Contract was proposed, the City Council informed the residents that the cost of the Contract would be approximately 5 million dollars because the cost of the Facility would be offset against the Contract. C/M Stelzer said when the Broward Sheriff's Office Contract was proposed, the residents were concerned about paying the Debt Service for a Facility that they would Page 13 8/17/89 not use. He said the City arranged an Agreement with the Broward Sheriff's Office to pay rental of $20,000.00 per month, which would take care of the Debt Service on the Facility. He said this was $240,000.00 per year to take care of the Debt Service and $70,000.00 per year would be paid by the Broward Sheriff's Office for the maintenance of the Facility. C/M Stelzer said the City was supposed to receive separate checks for the rent and maintenance and the City was supposed to pay a gross amount for Police Service. He said the intention was for the Broward Sheriff's Office to pay the Debt Service for the Police Facility without charging the residents. C/M Stelzer said now, $240,000.00 was being received from the Broward Sheriff's Office and $.24 was placed in the Debt. Service for Ad Valorem Tax. Mayor Abramowitz said the Debt Service for the Ad Valorem Tax was not increased and he asked how much the cost was last year. C/M Stelzer said it was reduced last year so that the residents did not pay twice and C/M Hoffman said the bottom line remained the same. C/M Hoffman said it was a matter of where the funds were placed. C/M Stelzer said he had an alternate plan for taxation; however, last year the Millage rate was .8136, which was added to the Ad Valorem. He said this year the Ad Valorem was .49510; however, the City Manager recommended the Debt Service Ad Valorem be .4757, which was the two Bond issues open. Mayor Abramowitz asked who informed the City Manager to recommend this amount and City Manager Kelly said this was his recommendation. C/M Stelzer said the Broward Sheriff's Office was supposed to pay the Debt Service for the Police Facility and Mayor Abramowitz disagreed. C/M Stelzer said the previous Minutes indicated that the Broward Sheriff's Office would pay the Debt Service. Mayor Abramowitz said if the City did not merge with the Broward Sheriff's Office, the City would be responsible for paying the Debt Service, maintenance and utilities of the Police Facility. He said he stated that if the City merged with the Broward Sheriff's Office, the Broward Sheriff's Office would be responsible for paying these expenses. C/M Stelzer asked why an additional $.24 was being added to the Millage rate and C/M Hoffman said the difference was reduced from the Operating Millage. C/M Stelzer disagreed and C/M Hoffman said the Operating Millage was reduced to .495 from .5389. C/M Hoffman said the costs were taken from one area and placed in another area. Mayor Abramowitz said what was done was not political. He asked if C/M Stelzer wanted to give the people who were not paying taxes the same amount that was being returned to the residents who were paying taxes. Page 14 8/17/89 C/M Stelzer said he had an alternate method to collect taxes and Mayor Abramowitz asked that this method be explained to the City Council. Mayor Abramowitz said he has been reviewing a survey of the percentage of people paying taxes and C/M Stelzer asked if the City Council wanted to hear his suggestions. Mayor Abramowitz replied, yes, however, he did not want to hear semantics. Mayor Abramowitz said the City has been operating for too long for political expediency and he was willing to give a fair break to the people paying the taxes. C/M Stelzer said $240,000.00 was not shown as income and Mayor Abramowitz said $240,000.00 was placed into the General Fund. C/M Stelzer said this did not control the tentative Millage rate. C/M Hoffman said the tentative Millage rate was 5.615; however, it may be reduced and Mayor Abramowitz said the City Manager recommended that $240,000.00 be taken from the Debt Service. Mayor Abramowitz said he felt that this would not be fair because the people not paying taxes would receive the same benefit as the people who were paying. C/M Stelzer said one month ago he saw a Condominium for sale in the amount of $29,900.00 and he discussed this matter with the City Manager. He said there were.several areas like this, such as Bermuda Club. He said he reviewed the tax rolls with the Attorney's Secretary. C/M Stelzer said there has been a myth for several years that the residents east of State Road 7 paid very little, if any taxes. He said this was not correct because there were only 27 homes in the area that did not pay taxes. He said there were approximately 600 homes that did not pay taxes. He said these properties were from -0- to $1,000.00; therefore, these residents would have paid a maximum of $ 4.17. C/M Stelzer said the next group of approximately 600 people paid from $1,000.00 to $5,000.00. The next group paid from $5,000.00 to $10,000.00 and would have paid a maximum of $42.00. Mayor Abramowitz asked how many homes fell in the $5,000.00 to $10,000.00 bracket and C/M Stelzer said approximately 1,800. C/M Stelzer said there was a gap from the homes ran much higher. He said it would take too much time for the Secretary to find these figures. C/M Stelzer said the City could not receive money from the people who did not pay taxes and these residents were receiving the ambulance service at no cost. He said the State and County did not receive taxes from these residents as well. C/M Stelzer suggested that a Utility Tax be implemented to spread the tax base out so that the people who did not Pay or paid very little taxes would pay a Utility Tax. Page 15 8/17/89 He said last year the proposed telephone tax was based on out -of --town taxes and C/M Hoffman said the taxes were supposed to be for telephone calls in the State of Florida. C/M Stelzer said the newspapers and Minutes indicated that the residents from Sunflower/Heathgate were concerned because they called their children out -of -State. C/M Stelzer said an effective rate had to be considered because the Utility Tax could not start for 90 days. He said if there was a 3% effective rate, which would be a 4% rate for 9 months, for a Utility Tax, the City would receive $1,036,000.00. He said these funds would be spread on the people who paid nothing. Mayor Abramowitz asked if this tax would be implemented on everyone and C/M Stelzer said this tax would be palatable by taking the .4757 Millage rate for the Debt Service and placing it into the General Fund. He said if $1,036,000.00 was added as income in the General Fund and $966,000.00, which was the two Debt Services, was placed into the General Fund expenses, it could be assumed as a washout. C/M Stelzer said the people who paid no taxes would pay $36.00, the people paying in the first and second bracket would pay $36.00, the people in the next bracket would be paying $54.00 and receiving a credit for $24.00. He said a home that was worth $150,000.00 would receive a credit of $60.00 from the .4757 Millage Rate; however, the Utility Tax would only be $54.00. He said all of the people not paying taxes would be paying and the .4757 would be eliminated while a minimum tax would be received by anyone in the City. C/M Stelzer said he discussed this matter with several members of staff and they felt it may be approved. Mayor Abramowitz said this was an interesting concept and he suggested that more information be submitted to the City Council. C/M Rohr said he would like a Workshop meeting called to discuss this matter because it seemed to be reasonable. C/M Stelzer said he was going to bring this matter up at the City Council meeting; however, he felt the City Council would like to be informed about it. Mayor Abramowitz said a Workshop meeting could be called and City Manager Kelly asked if the proposal was for a reduction in the Millage rate. C/M Stelzer said the Debt Service would be eliminated from the Tax Bill and Mayor Abramowitz said the City would be much ahead with this proposal. Mayor Abramowitz said an Article in the newspaper indicated Deerfield Beach was reducing their Millage rate; however, their garbage costs would be approximately $100.00 more per year. C/M Stelzer said he was very annoyed to find that the largest number of people who did not pay taxes lived in the Bermuda Club. He said there were 207 apartments that 7 ,J rl Page 16 8/17/89 paid no taxes. He said when the Utility Tax was proposed last year one of the residents from the Bermuda Club was TAPE 4 the biggest opponent. C/M Stelzer said Lime Bay had 115 homes and paid no taxes. He said Sands Point only had one person who paid no taxes. C/M Stelzer said the remaining areas of the City had 175 people who paid no taxes, 157 paying the next bracket and 891 in the next bracket. C/M Hoffman said the concept was not new and, if the Utility Tax was implemented last year, the City would not be in the position it was in today. C/M Stelzer said his proposal was different from last year's proposal and C/M Hoffman said he did not object to the concept providing it was approved by the residents. C/M Hoffman said money had to be raised and he would not object to how the residents would prefer it. He suggested that C/M Stelzer present his proposal to the residents to see how they would like it. Mayor Abramowitz suggested that a Workshop be held and C/M Stelzer said he would like a Public Workshop with Public input. Mayor Abramowitz said he would be more comfortable holding a Workshop with the City Council so he could understand the information better. C/M Hoffman asked how much a 1% tax would bring the City and C/M Stelzer said approximately $345,000.00 per year. C/M Hoffman said if 1% of the funds received from Florida Power & Light was divided by 6, the amount would be $260,000.00. He said Florida Law provided that Intra-State calls only could be taxed. C/M Stelzer said the residents understood that the Telephone Utility Tax would be for out -of --State calls and C/M Hoffman said this was illegal. C/M Hoffman said the City was aware that this was illegal and C/M Stelzer said this was how the residents perceived it. C/M Hoffman said he did not know if the figures stated by C/M Stelzer were correct and C/M Stelzer said a 1% Utility Tax for electric would generate $294,000.00 per year. C/M Stelzer said this figure multiplied by 8 would be higher than last year's proposal. C/M Stelzer said he has been a firm believer in having the employees working for the City happy to be doing so. He said because the City Council lost money last year, the employees should not be penalized. Mayor Abramowitz said the City Council did not cause the development revenues to be down 1 million dollars and C/M Stelzer said the City had $600,000.00 surplus plus approximately $600,000.00 from the Drainage Account. C/M Stelzer said there was approximately $1,250,000.00 which could not be used this year. C/M Stelzer said last year's Budget was setup on a projected basis. He said the Budget was supposed to be setup to cover future expenses. Page 17 8/17/89 Mayor Abramowitz said the Budget was a figment of imagination and C/M Stelzer said the income was too. C/M Stelzer said last year's Budget was setup based on a Utility Tax; however, the residents did not approve of the tax and the City lost $1,250,000.00 of income. Mayor Abramowitz said there was a loss of revenue last year and C/M Stelzer said the loss of revenue in the Building Department was approximately $400,000.00. C/M Stelzer said the tapes of the City Council meeting for the tentative Millage rate indicated that City Manager Kelly proposed the Debt Service Rate to be .4757. C/M Hoffman said this rate was set by removing the $.24 and C/M Stelzer said .4757 was proposed. C/M Stelzer said C/M Hoffman stated that the rate should be .7240 and Mr. Burroughs stated that the total Debt Service should be .7187. He said the City would be receiving $240,000.00 in rent from the Police Facility and $240,000.00 more was being charged in the Millage rate. Mayor Abramowitz said these funds were being returned to the residents through the contract with the Broward Sheriff's Department. C/M Stelzer said the original agreement was to use $240,000.00 as a savings on the Mortgage for the Police Facility and Mayor Abramowitz disagreed. C/M Stelzer asked if the City was collecting .7187 by including the $240,000.00 from the Police Facility and Mayor Abramowitz said the funds were taken in one hand and returned with the other hand. Mayor Abramowitz said it was not fair to give a refund to one resident and not the other. City Manager Kelly said he decided with the Finance Department that the application of $240,000.00 would be in the Debt Service. He said this was proposed to the City Council; however, it was decided that $240,000.00 would be transferred to another Account. He said this was not a double payment. C/M Stelzer suggested that an additional 1% be collected in Utility Taxes to give all of the employees a 5% across the board increase. He said this would satisfy the disgruntled employees. Mayor Abramowitz asked why C/M Stelzer felt that the employees were disgruntled and C/M Stelzer said he was with the City for 17 years. C/M Stelzer said several of the employees considered him as their Grandfather. He said several employees were disgruntled and the City lost several employees. Mayor Abramowitz asked who the City lost and City Manager Kelly said there were several people who left in the Building Department; therefore, C/M Stelzer was not incorrect. Mayor Abramowitz said there was a difference between unhappy and disgruntled. Page 18 8/17/89 C/M Stelzer said there were several people disgruntled and he did not want to see a revolution like the Police Department. He suggested that a 1% Utility Tax be implemented to allow a 5% across the Board increase for the employees. He said there were two Union Contracts to be negotiated. C/M Hoffman said this would require a Utility Tax of 4% and C/M Stelzer said 3% would not cost the residents; however, 1% would. C/M Stelzer said the City Council did not like to go year to year without an increase when they were employees and Mayor Abramowitz said this would have made him very unhappy; therefore, he was not an employee but a boss. Mayor Abramowitz suggested that this matter be discussed at the Workshop meeting. Fire Station Loan - Page 89 Mr. Burroughs said this was the principal and interest due on the 1980 Fire Station Loan for Station #2. Mayor Abramowitz asked if the revenue from the telephones was obligated and Mr. Burroughs replied, yes. Mayor Abramowitz asked when this occurred and Mr. Burroughs replied, 1980. Mayor Abramowitz asked what the total expenditure was during this time and Mr. Burroughs said approximately $300,000.00. Mr. Hoyt said the funds were borrowed from Sun Bank at a 5.85% interest and the revenues of the Franchise Telephone Fees were pledged in an amount that would meet the principal and interest each year. He said the access amount was transferred to the General Fund. Mayor Abramowitz asked when this Loan expired and Mr. Hoyt said in approximately 5 years. Mr. Burroughs said Page 87 indicated that $51,000.00 was being collected in the telephone fees and $510.00 in interest. He said Page 89 indicated that there was $6,300.00 in principal, $19,000.00 in interest and $26,000.00 was being placed.in the General Fund. C/M Hoffman said he thought that the Franchise Fees were for rented equipment only and Mr. Burroughs said this was considered as local service. Mayor Abramowitz asked when an update was done on this matter and Mr. Burroughs said there was a 30 year Franchise Agreement. C/M Hoffman asked if the new residents were being accounted for and Mr. Hoyt replied, yes. ** There were no reductions from the Fire Station Loan Budget. Page 19 8/17/89 Drainage Improvement Fund - Pages 91-93 Mr. Burroughs said there was a deficit in this Fund and Mayor Abramowitz asked if the deficit was because of the lack of fees. Mr. Burroughs replied, yes. ** There were no reductions in.the Drainage Improvement Fund Budget. ------------------------------------------------------------------ Parks and Recreation Fund - Pages 95-98 Mr. Burroughs said Page 95 indicated a projected collection of $50,000.00 in Park Impact Fees and Page 98 indicated the allocation of where the fees would be spent. He said the funds could be used during the course of the year for Parks. Mr. Burroughs said the Tamarac Sports Complex and the Multi -Purpose Center were0 being built from the funds. Mayor Abramowitz said there was a line Item in the Parks Budget that was reduced and Mrs. McDermott said the Renovations Item was reduced. C/M Hoffman asked if the funds could be used for the Restrooms at Veterans Park and Mrs. McDermott said the funds could be used for future development and not renovations. Mayor Abramowitz said the Restrooms would be a new facility. He said these funds were not available at this time; however, he would like to know if these funds could be used for needed projects. Mayor Abramowitz said the Parks Facilities Budget, Item 643, Machinery and Equipment, was reduced by $21,900.00. He asked if the funds could be used for this Item. Mr. Burroughs said there were very strict guidelines for using the Impact Fees and Mrs. McDermott said the funds could only be used for future development. Mayor Abramowitz said the funds would not be used for renovations. He said the Tamarac Sports Complex was being built and Mrs. McDermott said the funds could be expended for that project. ** There were no reductions in the Parks and Recreation Fund Budget. Trafficways Improvement Fund - Pages 99-102 Mr. Burroughs said the projected collection was $54,000.00 plus interest with a carry-over. He said the income would be $886,170.00. C/M Hoffman asked if this fund could be used for sidewalk development and Mr. Burroughs replied, no. C/M Stelzer said these funds could not be used for repairing old roads. C/M Hoffman said the new developments were causing the need for sidewalks because there was more traffic. He asked if this was considered as new development. Page 20 8/17/89 Mrs. McDermott said the criteria for the use of these funds was specific and the City Planner would be ..addressing the Trafficways Impact Fees to see how the City could apply the criteria to the City. ..V/M Bender said a Study was being done on this matter and recommendations would be submitted to the City Council regarding the use of the Impact Fees. Mayor Abramowitz asked how staff intended to expend the funds and C/M Hoffman said the funds could be used for turning lanes on the existing Nob Hill Road; therefore, the City should be able to use the funds for sidewalks. Mayor Abramowitz said development was expected in Land Section 7 and the fees were being collected and placed in escrow. He asked if the funds were earmarked or used legally for upgrading in the City. C/M Stelzer said he did not believe that Trafficways Impact Fees were ever earmarked for a specific project. He said using the funds has been a problem for several years. V/M Bender said the City Planner was presently investigating this matter; therefore, the City Council should wait until that Study was available. C/M Hoffman said the City Council should ask the questions as opposed to waiting until staff made a recommendation. Mayor Abramowitz said he wanted to know the ability of using the fund as opposed to depleting the fund. C/M Stelzer had concerns with how long the Impact Fees could be in the Fund before they had to be expended. V/M Bender said he would ask the City Planner to inform the City Council of when the information would be available. C/M Hoffman said he would Like to see if the funds could be used for new lighting in the areas. Mayor Abramowitz said he recently reviewed documents from 1985 where the City spent money to lower the illumines in the City. ** There were no reductions from the Trafficways Improvement Fund Budget. Mayor Abramowitz thanked the City Manager, Finance Director and Deputy Finance Director for answering the City Council's questions. City Manager Kelly said the Insurance Budget and Charter Board Budget would have to be scheduled in the near future. Page 21 8/1�/89 ith no further business, Mayor Abramowitz ADJOURNED this meting at 12:40 R.M. CAROL AI. EVANS; CITY CLERK "This public document was promulgated at cost of $177.60 or $22.2 copy to inform the general public, publi officers and employees of recent opinions and considerations of thE City Council of the City Ta arac." I 91 1 Page I22