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HomeMy WebLinkAbout1989-08-31 - City Commission Budget Workshop Meeting Minutes7525 NORTHWEST 88TH AVENUE TAMARAC, FLORIDA 33321.2401 TELEPHONE (305) 722-5900 August 30, 1989 NOTICE OF CITY COUNCIL BUDGET WORKSHOP MEETING for FISCAL YEAR 1989/90 There will be a Workshop Meeting of the City Council held on Thursday, August 31, 1989 at 1:00 p.m. in the City Council Conference Room, City Hall, 7525 NW 88 Avenue, Tamarac, Florida. The purpose of this meeting is to review the budgets for • the following Departments for Fiscal Year 1989/90: Utilities Revenues All meetings are open to the public. CAE/nr 63. Carol A. Evans City Clerk AN EQUAL OPPORTUNITY EMPLOYER POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS CITY OF TAMARAC CITY COUNCIL BUDGET WORKSHOP MEETING THURSDAY, AUGUST 31, 1989 CALL TO ORDER: Mayor Abramowitz called this meeting to Order on Thursday, August 31, 1989 at 9:00 A.M. in the City Council Conference Room. PRESENT: Mayor Norman Abramowitz Vice Mayor Dr. H. Larry Bender Councilman Bruce Hoffman Councilman Henry Rohr Councilman Jack Stelzer ALSO PRESENT: Ken Burroughs, Finance Director Dina McDermott, Assistant to the City Manager Bob Foy, Director of Utilities/ Engineering Pauline Walaszek, Special Services Secretary The purpose of this meeting was to review the proposed Budget for Fiscal Year 1989/90. Utilities Budget - Page 157 Mayor Abramowitz said yesterday the City Council was informed that the Bond Indenture for the Public Works/Utilities Administration Building contained approximately 1 million dollars. He said the City Council was informed that the proper way to handle the matter was by calling a Workshop meeting to determine what would be done for the Public Works building, what was to be built and how much money was to be allocated. Mayor Abramowitz said the Utilities Budget contained $440,000.00 allocated for the Rock Island Road project and he suggested the City Council recommend that funds be taken from the Bond Indenture for the Rock Island Road project. He said the City Council did not want a castle built on Land Section 7. C/M Rohr said he thought the City Council needed a legal opinion on the matter and Mayor Abramowitz asked Ken Burroughs, Finance Director, when he needed a decision on the matter. Mr. Burroughs said the budget should be finalized before the September 7, 1989 Public Hearing. C/M Hoffman recommended that $450,000.00 be earmarked from the Bond maintenance, Indenture the balance for Utilities road repairs and held in abeyance and applied to the Utilities share of a building when it was determined what would be built. Mayor Abramowitz said if the City Council was not informed by the City Attorney if it was legal to use funding this way, the recommendation could be rescinded. Page 1 8/31/89 Mayor Abramowitz asked who authorized the spending of this money and Mr. Foy said he was sure that bidding took place and the previous City Council approved the funding. He said the first architect and engineering firm was rejected and another firm was selected and approved by the City Council. He said Construction Management Services, Inc., was managing the project. Mayor Abramowitz asked if the plans were for the storage of the hazard materials and Mr. Foy said the facility was included in the overall plans for a facility. He said the plans were created to provide a permanent facility for the TUW Administration and field maintenance operations as well as a permanent facility for the Public Works Department. Mayor Abramowitz asked if these plans changed and Mr. Foy said he was not aware that they had. Mayor Abramowitz asked if the Customer Service Department was relocated from the Utilities facility to City Hall and Mr. Foy said the facility at Land Section 7 was to be for the Utilities operations previously located on 61 Street. Mayor Abramowitz asked if the plans included the Public Works portion of the facility as well and Mr. Foy replied, yes. Mayor Abramowitz said the City Council did not want this type of facility built. Mr. Foy said he was not aware of this matter because the project was being handled by the Public Works Department. Mayor Abramowitz said when the budget process was complete a Workshop meeting would be called to determine what should be done and spent on the project. He said the City Council felt that the proposed facility for Land Section 7 would not be continued as planned. He said he was shocked to hear that the 1 million dollar Bond Indenture was spent on the plans. C/M Rohr asked if the ground preparations were done for the plans and Mr. Foy said a survey crew was used for the property only. C/M Hoffman asked what was spent for the planning and Mr. Burroughs said Scharf & Associates, Inc., Architects, was hired to do the work and Construction Management Services, Inc., was hired to manage the project. Mayor Abramowitz said Construction Management Services, Inc., would not be involved with the project. Mrs. McDermott said Construction Management Services, Inc., did do some work on the project prior to the City terminating their services. Mr. Foy said he had several letters in the file from Construction Management Services, Inc., regarding this matter. C/M Rohr suggested a report be submitted regarding what was done so far on the project. Page 3 8/31/89 Page 159 Mayor Abramowitz said a Workshop meeting would be called on this matter and he would ask the City Manager to direct the Department Heads to submit information on this matter from the beginning. Mr. Burroughs said as of yesterday, year to date since September, 1988, $7,000.00 was spent for an architect, $1,000.00 for miscellaneous items and $42,000.00 to relocate the Utilities Building. Mayor Abramowitz said this matter could be discussed at a later date. C/M Rohr said he was not questioning the need for a legal opinion regarding the use of the funds from the Bond Indenture; however, he would like the City Attorney to give an opinion as to the City Council's right to make a decision to move the funds to the Rock island Road project. He said he would like to know the stipulations of the Bond Issue regarding what could be done with the surplus, it there was one. Mayor Abramowitz said the City Council wanted to know if the transfer could be done and, if not, why. Referring to Page 157, Mr. Burroughs said this budget was the revenues for the Bond Service Fund which retired the bond and paid the interest. He said $60,000.00 would be earned from interest in the fund. He said $1,730,610.00 would be transferred from the operating fund for the bonds. He said $200,000.00 in interest would be transferred from the reserve fund and $335,790.00 would be transferred from the CIAC fund. He said the bottom line was $2,465,030.00 and Page 158 indicated the exact expenses. Mayor Abramowitz asked if the difference was because bonds were being retired ad Mr. Burroughs said more bonds were retired last year. He said the difference was caused by a carryover in the amount of $138,000.00; however, next year, the carryover would be -0-. Mr. Burroughs said this was the Bond Reserve Fund. He said the City was required to keep 2 years principal and interest in reserve in case there were problems with the utilities system. Mayor Abramowitz asked if this was required by law and Mr. Burroughs said the bond covenants required the reserve of 2 years principal and interest. Mr. Burroughs said Page 160 was the transfer of the interest earned on Page 159 and Page 157 indicated this amount as income. Mayor Abramowitz asked what the renewal and replacement fund was and Mr. Burroughs said the City was required to keep an amount established by the Consulting Engineers for emergency repairs. He said Hazen & Sawyer, Engineers, certified that $500,000.00 should be maintained in a Repair and Replacement Fund. He said this was interest earned on the $500,000.00. Mayor Abramowitz asked if $500,000.00 was mandated by the bond covenants and Mr. Burroughs said the amount was not 1 1 1 Page 4 8/31/89 mandated; however, the principal was. He said the amount was dictated by the Consulting Engineers. C/M Hoffman asked if the Consulting Engineers dictated or suggested the amount and Mr. Burroughs said the Consulting Engineers certified the requirements. Mayor Abramowitz asked what this meant and Mr. Foy said the Engineers said by opinion that $500,000.00 should be set aside to handle an emergency in the Utilities Department. Mayor Abramowitz asked if Mr. Foy agreed with this amount and Mr. Foy replied, yes. Pages 163 and 164 Mr. Burroughs said this budget reflected the surplus fund. He said all of the money in the Utilities Department; except what was needed for operations, was in this budget. Mayor Abramowitz asked if the surplus was $846,350.00 and Mr. Burroughs said this amount was the income. C/M Stelzer said the City Council should concentrate on the amount of $744,000.00 because the other amounts were transferred out immediately. Mr. Burroughs said in January or February, 1989, the City Council met regarding the surplus in the Utilities Budget and it was determined that there was a surplus of $1,494,390.00. He said this amount appeared on Page 163, second column because it was the beginning surplus. He said Page 164 indicated the ending surplus at $744,353.00 because $500,000.00 was transferred causing the expenses to exceed the revenue. Mr. Burroughs said Page 163 indicated a beginning amount of $744,353.00 and Page 164 indicated the current budget, in which expenses exceeded the revenues by $356,000.00. He said the surplus at the end of September, 1990, would be $489,990.00 without the adjustments to this budget. Mr. Foy said this budget did not reflect $300,000.00 for the Rock Island Road project and Mayor Abramowitz asked, why? Mr. Foy said during the original review of the budget there was a misunderstanding and the amount was appropriated as -0-. Mayor Abramowitz asked if the reduced costs from the budget were reflected and Mr. Foy replied, no. Mayor Abramowitz asked Mr. Foy to identify the projects for which the surplus would be used. He asked how there was $744,353.00 in surplus. He asked if approximately $250,000.00 in projects was not covered by CIAO funds. Mr. Foy said the difference was because of the decrease in the expected revenue and Mayor Abramowitz asked what the difference was in the revenue. Mr. Foy said approximately $500,000.00. Mayor Abramowitz asked if there was an increase in water rates and Mr. Foy replied, no. Mayor Abramowitz asked if there were more people and Mr. Foy replied, yes. Page 5 8/31/89 Mayor Abramowitz asked if more business was done last year and Mr. Foy replied, yes; however, the revenue was not as much as expected. Mayor Abramowitz said he could understand an adjustment because the revenues last year were over estimated; however, he did not understand the adjustment being so much. He asked if the miscalculation in the revenues amounted to $250,000.00. Mr. Foy said there was approximately $500,000.00 in income and $500,000.00 went to the general fund. Mayor Abramowitz said there was approximately $250,000.00 to be accounted for and Mr. Burroughs said he submitted a memorandum to the City Council dated August 28, 1989, which explained this matter. He said Page 2, Item c, referred to the unexpended funds on hand, which amounted to $744,353.00. He said this was a decrease of $180,000.00 from the original estimated amount of $924,000.00. He said this was only a 1.65% deviation on a 10 million dollar budget, which was very good. Mayor Abramowitz said he did not disagree; however, he would like to know what happened to the funds. Mr. Burroughs said $53,000.00 was allocated to the Lease Buyout Agreement. He asked if the radios were purchased with the funds and Mr. Foy said the radios were purchased with funding from other accounts. He said the funds were used because of the revenues and expenditures. He said $500,000.00 went to revenues and $500,000.00 went to expenditures; therefore, $494,353.00 should be remaining. Mayor Abramowitz said this was why he was questioning the matter. He said he wanted to make sure that funds were not being expended out of the general revenue that could be used from the CIAO fund. Mr. Foy said he continued assuring the City Council that this was not occurring. Mayor Abramowitz said his concerns were not a reflection on Mr. Foy personally. He said Mr. Foy was instructed to do specific things; however, this did not mean that the instructions were correct. He said it was the City Council's responsibility to find out why and where funds, such as for the architectural plans, were spent. Mr. Foy said he was not a bookkeeper; however, the revenue last year did not match what was estimated and this was approximately $500,000.00. He said there seemed to be a discrepancy of $750,000.00. Mayor Abramowitz said the City Council needed a legal opinion regarding the Rock Island Road project funds. He said there was a surplus of approximately $744,353.00 and he suggested that the City Council refrain from making a decision on the surplus until the City Attorney submitted a legal opinion to the City Council. V/M Bender said $744,353.00 would be increased because of the interest and Mayor Abramowitz said the total surplus was $846,353.00. Mr. Burroughs said $846,353.00 would be available at the end of Fiscal Year 1989/90. Page 6 8/31/89 C/M Rohr asked if Mr. Foy would be recommending a rate increase to cover expenses and Mr. Foy replied, no. C/M Rohr asked if this would continue until there was no surplus available. Mayor Abramowitz said last year, the City had a bad year in development. He said the development has increased and there would be a turn around in the City. He said he saw no reason why the rates should be increased. Mayor Abramowitz said he wanted to make sure that the proper money was being spent out of the appropriate accounts. He said he knew that Mr. Foy did not make the total decision as to where the funding came from. Mr. Foy said he gave input on the matter and Mayor Abramowitz said that was a different story. He said he wanted to make sure that funding was being allocated from the appropriate accounts. Mayor Abramowitz suggested that the surplus remain until the City Attorney provided a legal opinion to the City Council regarding the use of the funds. Mr. Burroughs said the TUW bond covenants required that 110% of the operating income be applied to expenses and 120% be applied to revenues. He said the rate increase was determined by this and the existing percentage was 113% of the operating expense; however, if the operating expenses decreased throughout the budget, this would cause the percentage to increase. TAPE 2 Mayor Abramowitz said the surplus, Bond Indenture for the Public Works/Utilities Administration Complex and the Rock Island Road projects would be held in abeyance until the City Attorney submitted a legal opinion on these matters. Page 165 Mr. Burroughs said this fund was required by the bond covenants, which consisted of transferring to the "In Dieu of Tax Fund" 4% of the revenues of the current year, because the Utilities Department did not pay property taxes. He said this procedure provided more money to the general fund and this amount was indicated in the general fund as a revenue item. CIAC FUND Mayor Abramowitz asked if the water and sewer C IAC fund were developer oriented and Mr. Foy replied, yes; however, there was a time between selling and receiving income. At this time, City Manager Kelly ENTERED the meeting. Mr. Foy said monies were collected in 1988/89; however, guaranteed revenues were not required for six months and revenue would not be received for water and sewer until the developments were completed. Mayor Abramowitz said the projected amount was about the same as the previous year and Mr. Burroughs asked how this was related to building permits and impact fees. Page 7 8/31/89 Mr. Foy said the CIAC fees were required to be paid before the development plan was brought before the City Council for approval; however, the building permit, engineering fee was not required for approximately one year after the City Council approved the project. Mayor Abramowitz said the projected amount of this year was not much different than last year and Mr. Foy said the growth was not expected to be different. Mayor Abramowitz said he did not agree and Mr. Foy said he had to estimate conservatively. V/M Bender asked why there was a difference in the 1988/89 and 1989/90 estimates and Mayor Abramowitz said he would like to know why there was a difference in the amount of $951,860.00. Mayor Abramowitz said he and Mr. Foy discussed this matter and he felt that his projections for the estimated expenses should be higher than Mr. Foy's proposal. He said there was a project he estimated at 2.5 million dollars; however, Mr. Foy projected the project to be 1.5 million dollars. He said he would like to see this fund eliminated from the budget because it was construction related. Mr. Burroughs said the CIAC funds were construction related and the needed projects should be brought before the City Council for approval on the fund appropriations. Mr. Foy said this was how the CIAC projects were generally handled and Mr. Burroughs said construction funds were not budgeted because they were earmarked for specific purposes. He said 1 million dollars would be used for various projects and approved by the City Council before being expended. He said he would like to see the CIAC fund handled the same way. C/M Hoffman said if the CIAC funds were not listed, the funds would not be known and Mayor Abramowitz asked how the City could identify these funds if they were not listed. V/M Bender said Mr. Burroughs stated that he and Mr. Foy projected a difference of 1 million dollars and he asked where the difference was reflected. Mr. Burroughs said Page 169, second item, indicated 2.2 million dollars. He said Mr. Foy felt that this fund should be 1.5 million dollars; therefore, the difference was $700,000.00. Mayor Abramowitz asked how and where the CIAC funds could be identified and Mr. Burroughs said the funds were identified by a monthly report. He said there could be a special report submitted to the City Council and City Manager each month. C/M Hoffman said the City Council would have to know the funds were available before they could approve the expenditures and Mr. Burroughs said the City Council could require staff to report on the funds when requesting the use of them. C/M Hoffman said every fund should be reported and Mr. Burroughs said he provided monthly reports on the funds. Page 8 8/31/89 C/M Hoffman said he would not know what to do with the document if he received it and City Manager Kelly said the document was overwhelming; however, he received and reviewed it each month. C/M Hoffman said he did not know there was 1 million dollars in the Bond Issue until yesterday. He said the City Council should be informed of these matters. Mayor Abramowitz said the City Council identified accounts last year that were not known to exist. He said he learned more during the budget in the last few weeks because of the intense budget process. He said without jeopardizing the integrity of the monthly reports, he would like to see them simplified so they could be understood by the City Council. Mr. Burroughs said he could easily supply a monthly report on the CIAC and constructions funds, which would indicate the expenses, available monies and revenues of the funds. Mayor Abramowitz said he felt that they would be more aware of these funds by having that type of report. V/M Bender asked how the difference of $700,000.00 would be reflected in the budget and Mr. Burroughs said he and Mr. Foy discussed this matter several times. He said as soon as further information was available, the budget would be changed accordingly. V/M Bender suggested that the adjustment be more realistic, which would be done once the amounts were known. Mayor Abramowitz asked if money was taken from the general revenue because there was not enough in the CIAC fund and Mr. Foy replied, no. Page 168 Page 169 Mr. Burroughs said this was a recap of the expenses on Pages 169, 170 and 171. City Manager Kelly asked Mr. Burroughs to explain the interest income and Mr. Burroughs said the interest on developers agreements was about the same. He said the interest income decreased because he thought that 1 million dollars would be used; however, since it was not, this amount could be adjusted accordingly. Mayor Abramowitz asked if raw water wells were being refurbished and Mr. Foy said there were two wells budgeted to be built next year. Mayor Abramowitz asked if the project would be done with CIAC funds and Mr. Foy replied, yes. Mr. Foy said the plant expansion repairs of 1 million dollars would be before the City Council in the near future for approval. He said this project was for the expansion of the water plant. He said wells 14 and 15 would cost approximately $250,000.00 and there was a remaining project, which would be detained until next year. Page 9 WAWA Page 170 City Manager Kelly asked when the project was expected to be presented to the City Council for approval and Mr. Foy said Hazen & Sawyer would be engineering the wells; however, the project would be presented to the City Council in December, 1989. Mayor Abramowitz suggested that the project for the other two wells be deferred and Mr. Burroughs said this project was approved by Referendum 3 years ago and there was a 3 year requirement to start the project. He said the 3 year requirement expired in November, 1989; therefore, if the project was not started, it would have to go to Referendum again. C/M Hoffman asked if the Referendum mandated what funds could be used for the project and Mr. Foy replied, yes, the funds were to be taken from the CIAC fees. C/M Hoffman asked if CIAC fees were available for this project and Mr. Burroughs replied, yes. Mayor Abramowitz asked if the Referendum mandated when the project was to be finished and Mr. Foy said the Referendum only stated that the project must be started no later than 3 years after its approval. Mr. Burroughs said this budget would have no expenditures and Mayor Abramowitz asked what wastewater collection included. Mr. Foy said this included the south half of Land Section 7 with the possibility of the north half of Land Section 7. Mayor Abramowitz suggested that this budget be deferred until the meetings regarding Land Section 7 took place. He said he did not want to approve funding for the projects since they were not confirmed. C/M Hoffman said the funds could not be spent without City Council approval. He said the funds were being allocated in case there was a need to do the projects. Mayor Abramowitz asked if fees were to be collected from the developers for the projects and Mr. Foy replied, yes; however, CIAC funds were available at this time. Mayor Abramowitz asked if CIAC funds were already collected from the developers and Mr. Foy replied, no; however, there was a Jones Agreement regarding the City receiving 17 acres of land providing the developers had a water and sewer system available to them. Mayor Abramowitz asked if anyone recently requested water and sewer services in the area and Mr. Foy replied, no. Mayor Abramowitz said for several years, he was being informed about all of the money the City would be receiving from the development at Land Section 7; however, five cents has not been received by the City at this time. He said there were several things occurring at Land Section 7; therefore, the Jones Agreement was open to negotiations. Page 10 8/31/89 Mr. Foy said the funds being allocated for the projects did not make a difference in the budget. He said if a lift station, etc., was needed for Land Section 7, he would appear before the City Council to receive approval to expend the funds. Mayor Abramowitz asked if this budget affected the taxes and Mr. Foy replied, no. Mr. Burroughs said this fund should not be in the budget and he felt that all of this should be identified to date in a separate report. He said a fund should be created as a net available fund for the projects. He said when Mr. Foy needed funding for the projects, he appeared before the City Council for approval. The City Council AGREED with this type of fund being created. V/M Bender said when the projects were listed as future obligations, the City had to provide funding to offset the projects. He agreed with Mr. Burroughs's suggestion for a separate fund. City Manager Kelly said a separate report would identify the projects in the future. Page 172 Mayor Abramowitz asked when the Square One Debt Service would end and Mr. Foy said in December, 1991; however, the City would have to pay the funding directly to Broward County. Mayor Abramowitz asked if the City would have more capacity and Mr. Foy said the City was paying Deerfield Beach and Pompano Beach twice at this point; however, in 1991, the second fee would be eliminated. Pie 173 Page 174 Page 175 Mr. Burroughs said the equity transfer was the CIAC portion of the Square One Debt Service for the current year and, by 1991, a reserve would be collected in the amount of 1.5 million to pay off this debt. Mr. Burroughs said this budget included the Square One Debt Service interest, the amount of money transferred to the operating fund and the CIAC funds as reflected on Page 173. He said this was the accumulation of interest expended and transferred to equal the 1.5 million dollars due in 1991. Mr. Burroughs said this was the amount that went into the reserve to offset the revenue. He said Page 176 and 177 indicated the income amount and the amount of money in the reserve account in accordance with the grant for the 201 Force Main. He said the funds had to be accumulated by 2011 in an amount of 2 million dollars. He said this concluded the TUW budget. Page 11 8/31/89 Mayor Abramowitz said the City Council suggested that $450,000.00 be transferred from the 1 million dollar Bond Indenture; however, a legal interpretation was needed regarding the use of the money for a Utility project, such as the Rock Island Road project. Mayor Abramowitz said the City Council wanted the identification of the surplus in the Utilities revenue as well. At this time, Mayor Abramowitz RECESSED this meeting and RECONVENED with ALL PRESENT. Revenues - General Fund - Page 9 Mr. Burroughs said the current Ad Valorem Tax was the beginning figure, which was projected at 6.4 Mills; however, this would change when the City Council's revision was implemented in the budget. V/M Bender said Item 313-100, Franchise Tax for Electricity, did not reflect the projections for the annexed area, which was in an amount of approximately $100,000.00. He said from June, 1988, to 1989, the City did not receive a franchise tax for this area. Mr. Burroughs said the City may not be able to go back and request these fees. He said the company may not want to remit the taxes,that were not allocated from the customers. C/M Hoffman asked if Florida Power & Light was responsible for collecting the funds and Mr. Burroughs said Florida Power & Light was not responsible for these collections unless they were notified by the City to do SO. V/M Bender said this was not stated in the Franchise Agreement and Mr. Burroughs said his statement was based on experience. C/M Hoffman asked when Florida Power & Light began their collections and Mr. Burroughs said he did not know. C/M Hoffman asked who informed Florida Power & Light to begin collections. V/M Bender said he received an unofficial document from Florida Power & Light that indicated from June, 1988 to January, 1989, nothing was collected. He said Florida Power & Light received a notice indicating that they should begin collecting a franchise tax. He said he did not know if Florida power & Light implemented the collections; however, the City should investigate what the legal ramifications were regarding the collections. Mr. Burroughs said if Florida Power & Light was collecting the fees since June, 1988, the City was receiving the funds, which were included in this budget. V/M Bender said the amount that was to be collected was not indicated in this budget and Mayor Abramowitz said he did not know the legal ramifications; however, the projections for next year should be included in the budget. Page 12 8/31/89 C/M Rohr asked why the estimates were less than what was to be collected and Mr. Burroughs said the budget was a guesstimate; however, he felt the projection of $1,651,000.00 was very generous. Mayor Abramowitz said he reviewed this matter several times and V/M Bender was informed that Florida Power & Light was not collecting these fees. V/M Bender said Florida Power & Light indicated that they did not begin collecting the funds until January, 1989. Mayor Abramowitz said based on this, the budget should be increased by $100,000.00 and Mr. Burroughs said Florida Power & Light recently announced that they would be implementing a rate decrease, which would affect the budget. Mayor Abramowitz suggested that 5% be reduced from the budget and C/M Stelzer asked when Florida Power & Light began collecting the fees. V/M Bender said Florida Power & Light began collecting the fees in January, 1989; however, the fees should have been collected from June, 1988. Mayor Abramowitz asked if V/M Bender was informed by Florida Power & Light that the fees were being transmitted to the City and V/M Bender said he asked this question and was informed that there was an unofficial document available on this matter. C/M Hoffman the budget suggested until the that the figures not be included in factual information was available. Mayor Abramowitz said if Florida Power & Light was collecting the taxes and transmitting them to the City, the figures were already included in the budget. V/M Bender said last year's records indicated approximately 1.6 million dollars and, if Florida Power & Light collected the fee, the amount should have been approximately $100,000.00 more. He said the City should request Florida Power & Light to submit information regarding whether they transmitted these funds to the City. Mr. Burroughs asked how V/M Bender came up with the figure of $100,000.00 and V/M Bender said he asked Florida Power & Light for the average costs for the annexed area. Mayor Abramowitz asked if Florida Power & Light identified the funds that should be transmitted to the City and Mr. Burroughs said he received a report regarding the monies collected from the commercial, industrial and residential areas. C/M Hoffman said the annexed area was 10% of the City's total population. C/M Rohr asked if Mr. Burroughs investigated the previous reports from Florida Power & Light to see if there was an increase in sales. He said if there was an increase then the funds were being transmitted to the City. Page 13 8/31/89 Mr. Burroughs said the sales depended on the weather and V/M Bender said the documents from Florida Power & Light indicated an annexed area of approximately 3,000 people, which was approximately 1,500 homes. He said the average monthly bills were $100.00, which would be approximately $1,200.00 per month. V/M Bender said this would be 1.8 million dollars times 6% tax at a projection of approximately $108,000.00 per year in revenue. He said he rounded the amount to the nearest thousand; therefore, the projection should be increased by $100,000.00 Mayor Abramowitz suggested that the projected revenues not be increased because, if Florida Power & Light was collecting and transmitting the fees, they would already be included in the budget. C/M Hoffman said until the facts were known, the projected revenues should not be increased. Mayor Abramowitz asked Mr. Burroughs to review the previous records to see if the projections were increased since the annexation occurred and Mr. Burroughs said this report was being printed and would be available in a few minutes. C/M Stelzer asked if propane gas would require a franchise tax and Mayor Abramowitz said he would like this implemented. C/M Hoffman asked how the City could receive a franchise tax from the propane gas companies. He asked if the companies would have to be licensed to operate in the City. Mayor Abramowitz said the user would be informing the City of what propane gas companies they used. C/M Hoffman said if propane gas was taxed it should not be done through a franchise tax. He said this could be done through a fire inspection fee for propane users. C/M Stelzer asked if the companies needed a permit to install propane gas in the City and City Manager Kelly replied, yes. C/M Stelzer said all of the permits in the City should be reviewed and the companies delivering the gas in the City should be contacted regarding a users tax. Referring to the Florida Power & Light concern, Mr. Burroughs said the report indicated that in October, 1987, $138,766.00 was transmitted to the City by Florida Power & Light. V/M Bender submitted his documents to Mr. Burroughs for review and Mr. Burroughs said these documents reflected the total of January, 1988. V/M Bender asked if Mr. Burroughs was referring to the total or monthly amounts received and Mr. Burroughs said he was referring to the monthly amounts received. Mr. Burroughs said his report reflected the total residents because the annexed area consisted of all residential homes. Page 14 8/31/89 Mayor Abramowitz said he did not want to increase the projections in the budget until further information was received and V/M Bender said he was 100% sure that the projections in the budget should be increased by $100,000.00; however, it would be appropriate for the City Council to receive further information on the matter. C/M Stelzer said if the projections were increased and they were not correct, the City Council would have a shortfall of $100,000.00 next year. He suggested that the projected revenues in the budget remain as they were. V/M Bender said the collections were not included; however, the projected revenues should be included in the budget. He said Florida Power & Light's memorandum indicated approximately 6 months collection was not done. Mayor Abramowitz asked if the City Council was to provide the increase in the projected revenues and C/M Stelzer, C/M Hoffman and C/M Rohr replied, no. Mayor Abramowitz asked V/M Bender to investigate this matter further until factual information was received. V/M Bender said the cable and telephone companies adjusted their records to begin collections because they were not collecting in the past; however, the projections were not that large. C/M Hoffman said the City would be receiving the funds in the future. Referring to Item 313-700, Solid Waste Franchise, V/M Bender said he reviewed these records and found that there were monies due to the City. He said Larry O'Connor Sanitation Service has not paid 10 payments. He asked why these revenues were not pursued. City Manager Kelly said it has not been determined if Larry O'Connor Sanitation Service has been doing business in the City. Mrs. McDermott said she reviewed these records with the City Clerk last week and the records indicated that all of the payments were received, except Larry O'Connor Sanitation Service. She said the City could audit the company randomly; however, the City did not have the appropriate staffing to do this. She said it has not been determined if Larry O'Connor has been working in the City. Mr. Burroughs said he implemented a procedure where his personnel monitored the payments each month and, if payments were not submitted, the companies were called and reminded that payment was due. Mayor Abramowitz asked if the City could determine who the companies serviced in the City and City Manager Kelly replied, no. Mayor Abramowitz asked how the City could determine if the companies were doing work in the City and Mrs. McDermott said the City would have to do an audit of the companies' books. Page 15 8/31/89 Page 10 C/M Hoffman suggested that a questionnaire be sent to the business asking what sanitation service they used and Mrs. McDermott said the businesses were not required to answer the questionnaire. V/M Bender said he found unpaid bills from Florida Power & Light for work done by the Utilities Department because Florida Power & Light broke water lines. He asked why these bills were not being collecting and he suggested that the matter be investigated. Mayor Abramowitz said this matter was discussed at a previous Workshop meeting and the Utilities/Engineering Director stated that he would inform Florida Power & Light that they would not be given any future permits until the fees in arrears were paid. C/M Hoffman suggested that the Utilities/Engineering Director be remanded of this matter. C/M Rohr suggested that the City send Larry O'Connor Sanitation Service a letter indicating 10 payments were due and City Manager Kelly said this would be done. Mr. Burroughs said the company applied for a franchise fee and then decided not to do business in the City and the City Council agreed to a letter being sent to the company. Mayor Abramowitz asked if the City had special police duties and City Manager Kelly said the City no longer has this service; however, they were paying for services by the Broward Sheriff's Office for special duty assignments. City Manager Kelly said the Recreation Budget did not contain funding for Police services during activities, such as the Fourth of July, etc. Mayor Abramowitz said he would call the Sheriff's Office regarding this matter and he was sure that the City would not be responsible for paying for these services. He said he did not want the alterations of the Police Facility done until this matter was investigated further. Mayor Abramowitz suggested that the Police Service bill for the Fourth of July celebration not be paid until further notification from the City Council. City Manager Kelly said this bill had been paid and Mayor Abramowitz said he specifically indicated that the bill was not to be paid because he did not want it to set a precedent. He said he would try to get the services in the future at no cost; therefore, the City Manager was not to authorize any future payments for Police services. Mr. Burroughs said the budget for the newspaper collection fee in the amount of $6,000.00 was to be eliminated because this fee no longer existed and the City Council agreed to this elimination. L 1 Page 16 8/31/89 1 With no further business, Mayor Abramowitz ADJOURNED this meeting at 11:30 A.M. CAROL A. EVAN , CITY CLERK "This public document was promulgated at a cost of $133.60 or $6.70 per copy to inform the general public, public officers and employees of recent opinions and considerations of the City Council of the City of Tamarac." Page 17