HomeMy WebLinkAbout1988-09-01 - City Commission Budget Workshop Meeting MinutesF rqM
� 9p
9
7525 NORTHWEST 88TH AVENUE 0 TAMARAC, FLORIDA 33321-2401
TELEPHONE (305) 722.5900
August 31, 1988
NOTICE OF
CITY COUNCIL BUDGET WORKSHOP MEETING
There will be a City Council Budget Workshop Meeting on
Thursday, September 1, 1988 at 10:00 A.M. in the City Council
Conference Room (Room #109).
The purpose of this meeting is budgetary matters. .
All meetings are open to the public.
Carol A. Evans
• City Clerk
CAE/pm
AN EQUAL OPPORTUNITY EMPLOYER
POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS
CITY OF TAMARAC
CITY COUNCIL BUDGET WORKSHOP MEETING
THURSDAY, SEPTEMBER 1, 1988
TAPE 1
CALL TO ORDER: Mayor Abramowitz called this Budget Workshop meeting
to Order on Thursday, September 1, 1988 at 10:00 A.M. in Conference Room
#1 (City Clerk's Office).
PRRSRNTe
Mayor Norman Abramowitz
Vice Mayor Jack Stelzer
Councilman Dr. H. Larry Bender
Councilman Bruce Hoffman
ABSENT AND EXCUSED
Councilman Henry Rohr
ALSO PRESENT:
John P. Kelly, City Manager
Richard Doody, City Attorney
Ken Burroughs, Finance Director
Patricia Marcurio, Secretary
PROPOSED 6% UTILITY TAX
City Manager Kelly said the purpose of this meeting was
to discuss the remaining Budget and the proposed 6%
Utility Tax. He said there has been discussion regarding
modifying the Utility Tax and, in order to do this, the
City Attorney suggested the Advertising be changed. He
said he instructed that the Advertising be detained until
there was City Council action on the telephone portion of
the Utility Tax.
Mayor Abramowitz recommended that a Special meeting be
held concerning this matter because he informed several
residents that this matter would not be discussed at the
September 6, 1988 Budget Public Hearing.
V/M Stelzer said a Special meeting could not be called
regarding this matter before the Budget Public Hearing.
He asked why the telephone company was not being included
in the Utility Tax.
City Manager Kelly said most of the complaints have been
about the telephone tax and Southern Bell was insisting
on 120 days for implementation.
Mayor Abramowitz said a decision regarding the
elimination of the telephone tax was not determined;
however, at the Special meeting, this matter could be
discussed and acted upon.
C/M Hoffman said the City Manager submitted an estimate
of the revenue for the Utility Tax based on the Utility
Companies implementing the tax 120 days after the City
Council has their final hearing approving it. He said
now that Florida Power & Light would be able to implement
the tax in 30 days, there would be a change in the
revenue and there would be no need for the telephone
service tax.
Mayor Abramowitz said he would like the Special meeting
called as soon as possible and he would like the revenue
reestimated for Council review before that meeting.
Page 1
9/1/88
V/M Stelzer asked how the City Council would bypass
questions about the Utility Tax in the Revenue Budget at
the September 6, 1988 Budget Public Hearing.
Mayor Abramowitz said the September 6, 1988 Budget Public
Hearing was the first reading and he would not be
discussing a matter that he was not sure about. He said
he would inform the residents that this matter would be
discussed thoroughly at a Special meeting.
C/M Hoffman asked if it was necessary to determine how
the revenue would be raised for the shortfall for the
first Budget Public Hearing.
Ken Burroughs, Finance Director, said it was not
necessary to determine this in final; however, Item 3 on
the Agenda for the first Budget Public Hearing was
"Public Hearing on tentative General Fund Budget" and
Item 1 on the Agenda was "Announcement of the percentage
of increase/decrease millage over/under the roll -back".
He said the millage had to be tentatively set and
announced. He said the additional revenues from the
Utility Tax may affect the millage.
Mayor Abramowitz said the first Budget Public Hearing was
for information only rather than a final decision
meeting. He said there was nothing wrong with informing
the residents that the Utility Tax would be heard at a
Special meeting to determine if there would be changes
and, at the meeting, a decision regarding the millage
rate would be set for the second and final Budget Public
Hearing.
C/M Hoffman said a preliminary millage rate was sent to
the Broward County Appraisers Office and Mr. Burroughs
said the City Council would be locked in on the millage
they announce at the first Budget Public Hearing.
Mayor Abramowitz asked if the millage rate could be
changed before the second and final Budget Public Hearing
and Mr. Burroughs said it could only be lowered. He said
he announced at another meeting that the Utility Tax
would not be approved at the first Budget Public Hearing
to eliminate the residents from attending this meeting to
discuss the Utility Tax when it was not on the Budget.
City Manager Kelly said the City Council would be
committing themselves to the millage they announce at the
first Budget Public Hearing; however, it could be
decreased at the second and final Budget Public Hearing.
Mr. Burroughs said the residents would be receiving a
summary of the Budget and, at the second Budget Public
Hearing the Resolutions would be adopted finalizing the
Budget.
C/M Hoffman said there have been several arguments about
adopting the Budget last year by Resolution and he asked
if the Budget could be adopted by Ordinance this year.
City Attorney Doody said the Advertisement for the second
Budget Public Hearing could indicate adoption by
Ordinance.
Mayor Abramowitz asked why this was being suggested and
C/M Hoffman said to avoid having to justify this matter
in the future.
Page 2
1
1
1
9/l/88
City Attorney Doody said this matter has been brought to
him a number of times, he researched it and he felt
confident that adopting the Budget by Resolution was
legal. He said the Statutes required the City to have
two Public Hearings for the Budget; however, the
mechanism by with the Budget is adopted, was not an
issue. He said he would draft whatever legislation the
City Council wanted.
Mayor Abramowitz said he would rather discuss this matter
at another time. He said he was very concerned with the
residents input; however, he felt that the imposition of
the Utility Tax was in the best interest of the City. He
said he would like the residents informed of the City
Council's actions and he would not regret informing the
residents at the first Budget Public Hearing that the
Utility Tax matter would be discussed during a Special
meeting because there were other discussions the City
Council had to make.
City Manager Kelly said he would submit to the City
Council some information from the Florida League of
Cities regarding restrictions that the City Council had
in taxing the residents.
V/M Stelzer asked what would happen to the figures in the
Budget if the Utility Tax revenue was approved during the
first Budget Public Hearing and voted down at the second
Budget Public Hearing.
City Manager Kelly said there would have to be drastic
cuts in the Budget.
Mayor Abramowitz said the City Council wanted to make up
for the shortfall in the Budget and, since the
anticipated revenue may change with the new information
about the implementation time in collecting the taxes,
City Council wanted to review the new information. He
said he wanted the residents to receive the correct
information because there was too much misinformation
being circulated in the City. He said he felt that the
City may not be prepared for honesty.
City Manager Kelly said with a 5% Utility Tax there would
be $880,000.00 revenue for next year.
V/M Stelzer said the Charter provided that the City could
use the surplus money for needed matters in the City.
Mr. Burroughs said surplus money could not be spent and
V/M Stelzer said the surplus could be used for next
year's Budget.
Mayor Abramowitz asked if the money could be placed in a
contingency account and Mr. Burroughs replied, yes.
V/M Stelzer asked when the surplus would be known and Mr.
Burroughs said on September 30, 1989. V/M Stelzer asked
if Mr. Burroughs would be placing that amount in a
Contingency Fund for this year's Budget and Mr. Burroughs
replied, yes.
V/M Stelzer said the Charter may provide that the excess
money is to be placed in a surplus account.
Page 3
9/1/88
Mayor Abramowitz said he was against spending surplus for
anything except services in the City such as street
lighting.
V/M Stelzer asked if the income from the Utility Tax
should be increased along with the contingency fund and
Mr. Burroughs said he was suggesting this.
C/M Hoffman said he may want to decrease the Utility Tax
to 5% if there was a surplus.
Mr. Burroughs said there would be an increase of
approximately $350,000.00 in ad valorem taxes as well.
C/M Hoffman said the City Council needed information
regarding the income from a 6% Utility Tax with and
without -the telephone tax, the income from a 5% Utility
Tax with and without the telephone tax and what the ad
valorem income would be.
Mayor Abramowitz said he needed more information before
making a decision.
City Attorney Doody informed the City Council of the
Charter provisions regarding the surplus. He said the
Charter stated that the City may maintain an
unappropriated surplus of no more than 10% of its total
proposed expenditures in the General Fund Budget and no
more than 5% of the expenditures of the General Fund
Budget may be included in the Budget for contingency that
may not have been included or may have been
under -estimated in the proposed expenditures. He said
this figure does not include unappropriated surplus.
City Attorney Doody said Section 7.10 of the Charter
stated, "the Council may utilize excess fund for
supplemental appropriations or transfer such funds to the
General Account".
Mayor Abramowitz said the City Council made very little
provisions for the Police and Fire Departments and other
services. He said he was not willing to let the services
suffer because the City Council wanted to eliminate the
Utility Tax.
C/M Hoffman said when the Utility Tax was proposed, it
was not proposed to increase Department Budgets. He said
the Utility"Tax was proposed to meet the shortfall in the
Budget. He said the City found that the shortfall would
be approximately 1 million dollars; however, with the new
information regarding the telephone tax, reducing the
Utility Tax to 5% and eliminating the telephone tax,
there would be approximately 1 million dollars in revenue
for a 10 month period. He said this was enough for the
shortfall and the ad valorem increase would be the
contingency for what was needed in the City.
Mayor Abramowitz asked if the City would be financially
responsible by doing what C/M Hoffman just presented and
City Manager Kelly replied, yes.
Mr. Burroughs said if a 5% Utility Tax was imposed for
electric only, there would a revenue of $1,100,000.00 and
the Budget presently indicates $1,320,000.00; therefore,
the gain would only be $100,000.00. He said if the
telephone tax is eliminated, there would be a loss of
$148,000.00.
Page 4
1
1
1
9/l/88
TAPE 2
C/M Hoffman said there would be revenue from the ad
valorem and Mr. Burroughs there would be a revenue of
$346,000.00 from the ad valorem which was already in the
Budget.
Mayor Abramowitz asked if C/M Hoffman's suggestion would
allow the difference in the shortfall and Mr. Burroughs
replied, yes; however, the Union negotiations were not
included in the Budget.
C/M Hoffman said Union negotiations were not discussed
when planning for the Utility tax. He said the Utility
Tag was being imposed to cover the shortfall in the
Budget.
Mr. Burroughs said if there are increases because of the
Union negotiations, the money had to be provided from
somewhere.
Mayor Abramowitz said he would like further information
regarding this matter such as, the restraints on using
the surplus, the difference in the Utility Tax figures
with 5% and 6% and with and without the telephone tax.
He asked if staff needed a decision.,
City Manager Kelly said Mr. Burroughs needed the City
Council to tell him what should be figured for the first
Budget Public Hearing. He said with the City Council's
approval, he would direct Mr. Burroughs to pursue the
course of action reflecting the Budget with a 5% Utility
Tax on 10 months while maintaining the present ad
valorem.
C/M Hoffman asked if the City Attorney needed direction
to change the Utility Tax documents, if so, he would like
to see this entire Utility Tax implemented for this year
only and consider it during the Budget process next year.
C/M Hoffman recommended that the City Attorney be
directed to put a one year sunset on the Utility Tax.
City Attorney Doody said the Ordinance has been to first
reading and the Utility Tax was proposed. He suggested
that another meeting be held on these matters so the
Public will be notified and he could amend the Ordinance
and bring it back for second reading.
Mayor Abramowitz said the City Council, needed to schedule
another meeting on this matter so staff would be able to
implement these matters properly.
Mayor Abramowitz asked the City Manager to schedule the
necessary meetings on this matter and submit the proper
information for the City Council so an intelligent
decision could be made.
City Manager Kelly asked if Mr. Burroughs should prepare
the Budget with a 5%
Utility Tax less the
telephone tax
for the Budget Public
Hearing.
Mayor Abramowitz said
he was not sure if
he wanted to
make the Utility Tax
5% and eliminate the
telephone tax.
He asked if the City
Council could direct
Mr. Burroughs
after the September 6,
1988 Budget Public
Hearing.
Mr. Burroughs said the only thing that had to be decided
for the Budget Public Hearing was the millage rate. He
said the millage rate could remain as it presently was
Page 5
Vj
9/1/88
until the recomputed millage rate was required at the
second Budget Public Hearing.
Mayor Abramowitz asked if the millage rate could be
lowered at the second Budget Public Hearing and Mr.
Burroughs replied, yes.
Mayor Abramowitz said he did not want the City Manager
being blamed for making the decision when the City
Council made the decision. He said he would like a
Special meeting called to discuss the possible change in
the Utility Tax and what was going to be done if there
was a surplus.
V/M Stelzer asked what figure would be reflected in the
Budget for the Utility Tax at the first Budget Public
Hearing and Mr. Burroughs said the figure that presently
exists.
City Manager Kelly said V/M Stelzer opposed using the
monies from the sale of the surplus property for capital
expenditures; therefore, he recommended that the money
transferred from the General Fund into the Drainage Fund
be used for capital expenditures and make up the
difference in the estimated money for the sale of the
surplus property.
Mayor Abramowitz asked if this could be done with
problems and City Attorney Doody asked if the money being
transferred was from impact fees.
Mr. Burroughs said the money being transferred was the
money contributed in the Drainage Fund by the City.
Mayor Abramowitz had concern about this money not being
used for the City's shortfall. He said he would like
more information on what money was in what accounts that
were not being used.
Mr. Burroughs said there was an Impact Fee Fund with
excess monies and Mayor Abramowitz said he wanted more
information about the accounts.
V/M Stelzer said he would like an increase in the
expenditure account of approximately $150,000.00 for
Health Insurance and reduce the Drainage Fund and the
sale of surplus property.
Mayor Abramowitz said he would like the excess money go
to the services that are needed in the City.
V/M Stelzer said he did not want to raise the contingency
with the excess money. He said the liability should be
in Health Insurance and, if the Health Insurance does not
work out, the money would be available.
Mayor Abramowitz asked V/M Stelzer to restate his
recommendation.
V/M Stelzer recommended that another $150,000.00 be
transferred from the Drainage Fund to the Revenue portion
of $550,000.00 and increase the proposed expenditures for
Health Insurance by $150,000.00.
C/M Hoffman said he thought the Health Insurance matter
would be established by giving the employees an option.
1
J
Page 6 \
9/l./88
V/M Stelzer said he wanted to provide for the option
because it would probably be approved. He said the
Health Insurance was not established in the Budget and
City Manager Kelly said this matter could be established
at a later time.
C/M Bender said he agreed with V/M Stelzer's suggestion
and Mayor Abramowitz asked what the City Council felt
about V/M Stelzer's suggestion.
V/M Stelzer had concerns about what was being done with
the Insurance Budget and Mayor Abramowitz said the Budget
would be presented as it was; however, it was anticipated
that the Insurance Budget would be decreased.
The City Council AGREED with V/M Stelzer's suggestion.
City Manager Kelly said he received the projected rates
from Southern Sanitation for single family homes which
would be $7.95 and $3.88 for condominiums. He said these
rates reflect the 4% CPI index and an increase of 70
cents for condominiums and $1.33 for single family homes
for dumping fees. He said the City Council would be
receiving copies of this information.
City Manager Kelly said Bob Jahn, Chief Building
Official, submitted his resignation. He said the
effective date would be October 31, 1988 and his last
working day would be October 6, 1988. He said in being
consistent with the Charter, as pointed out by Melanie
Reynolds, an audit would be necessary of the Building
Department. He said this Item would become before the
City Council at the first regular City Council meeting in
September.
Mayor Abramowitz said he was not upset with the cost of
the Audits since he has seen the results of the Utilities
Department.
C/M Hoffman asked if City Manager Kelly considered a
replacement for Mr. Jahn's position and City Manager
Kelly said he was looking within the City to fill the
position at this time.
With no further business, Mayor Abramowitz ADJOURNED this
meeting at 11:30 A.M.
CAROL A. EVANS, CITY CLERK
"This public document was promulgated at a
copy to inform the general public, public
recent opinions and considerations of the
Tamarac."
Page 7
cost of $102.60 or $2.85
officers and employees of
City Council of the City
per
of