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.
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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.
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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.
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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
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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."
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