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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