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HomeMy WebLinkAbout1983-09-13 - City Commission Budget Workshop Meeting Minutes (2)5811 NORTHWEST 881-H AVENUE TAMARAC, FLORIDA 33321 TELEPHONE (305) 722-5900 September 12, 1983 NOTICE OF BUDGET HEARINGS FISCAL YEAR 1983/84 Please be advised public hearings will be held by the City Council on Tuesday, September 13, 1983, at 1:00 p.m., in the Council Chambers of City Hall, 5811 N.W. 88 Avenue, Tamarac, Florida, on the following items: 1. Tamarac Utilities East - Temp. Ord. #1060 - Discussion and possible action to adopt the annual Tamarac Utilities East Fund Budget for FY 1983/84. First Reading. 2. Tamarac Utilities West - Temp. Ord. #1061 - Discussion and possible action to adopt the annual Tamarac Utilities West Fund Budget for FY 1983/84. First Reading. 3. Special Funds - Temp. Ord. #1062 - Discussion and possible action to adopt the Capital Reserve, Bond Sinking, Self. Insurance Collision, Police Education, Parks and Recreation, Drainage Improvement, Central Data Processing Services and Central Stores Services Fund Budgets for FY 1983/84. First Reading. The City Council may consider such other business as may come before it. The public is invited to attend. Carol A. Evans Assistant City Clerk Pursuant to Section 286.0105, Florida Statutes If a person decides to appeal any decision made by the city Council with respect to any matter considered Ft such rneating or hearing, he will need a record of the Proceedings and for such purpose, he may need to ensure that a verbatim retort; includes the testimony and evidence upon which the appeal is to be based. i p e I CITY OF TAMARAC BUDGET HEARINGS FY 1983/84 September 13, 1983 CALL TO ORDER: Mayor Falck called the Public Hearing to order on Tuesday, September 13, 1983 at 1:00 P.M. in the Council Chambers. ROLL CALL: PRESENT: Mayor Walter W. Falck Vice Mayor Helen Massaro Councilman Philip B. Kravitz Councilman David E. Krantz Councilman Jack Stelzer ALSO PRESENT: Laura Z. Stuurmans, City Manager Mayor Falck read the Notice of Jon M. Henning, City Attorney Steve Wood, Finance Director Larry Keating, City Engineer Patricia Marcurio, Secretary the Public Hearing. 1. Tamarac Utilities East - Temp. Ord. #1060 - Discussion and possible action to adopt the annual Tamarac Utilities East Fund Budget for FY 1983/84. First Reading. SYNOPSIS OF ACTION: APPROVED on first reading. Jon Henning read the Ordinance by title and the City Manager said the total revenues for the Utilities East Fund for 83/84 are pro- jected at $356,238, $39,558 for Administration costs and $316,680 for Operating costs. She said the Utilities East Budget is pro- jected in this fashion and can be funded at the present rate structure. Mayor Falck opened the public hearing. Bernard Campbell, resident of Tamarac Lakes North,said he is pro- testing the increase in the water rates for residents east of 441. V/M Massaro asked C/M Kravitz if, as liaison to the Finance Depart- ment, he had examined the utility fund to determine where the increases are and the reasons. C/M Kravitz said he has gone into this aspect many times and there are two reasons. First, the City is buying its water from Fort Lauderdale and costs have increased and secondly, the residents are paying for the sewer hookups, the cost of which is in this fund. He said they have the privilege of reducing it but, when the City does hook up, the residents would then be assessed. He said this should be the residents' choice. V/M Massaro asked C/M Kravitz why there was such an increase in the Administrative area of the budget and C/M Kravitz said most of it was salaries as well as inflation and a combination of many items and is not out of line with the recommendation of the City Manager. C/M Stelzer pointed out that the proposed budget of income for 82/ 83 is the same as for the current year and the rates will be the same. John Dunne, resident of Tamarac South, questioned why people who are away must pay these amounts when the water is not being used and C/M Kravitz explained that the method of payment is based upon availability. C/M Kravitz said one rate for the entire City could be considered under a Bond issue. Sam Pizzarello, resident. said he was speakinq. for himself and other residents of Sections 1 and 2 by objecting to the west portion of the City having different water rates than the eastern portion of the City. Mayor Falck closed the public hearing with no further response. The City Manager said Mr. Campbell's comments concerning the appro- priated fund balance would cause a listener to perceive this as a charge to the residents as a part of the revenue supporting the budget of Utilities East for next year. However, in fact, the revenue 9/13/83 /pm reflected under Appropriated Fund Balance for this next fiscal year, $85,338 is monies that are in surplus that the City is applying of savings of budgeted projections over actual operating costs over the last year. This is being applied back in the budget to support the cost for running that utility operation. Laura Stuurmans said this savings has come about because the City has not as yet hooked up to the Central Regional 201 Facilities and the rate could come down but, if it does come down, when the hookup occurs the residents will be impacted with a terrific increase over what they are paying now. The City Engineer said the City was supposed to be hooked up to this about 18 months ago and the Consulting Engineers have said the latest the City will be hooked up would be 3/l/84. V/M Massaro asked if there would be additional monies expended for various work that the Consulting Engineers will have to do to determine the ability of the lines to cope with this. The City Engineer said it is necessary that the east residents understand that from a utility standpoint, the east and west are separated and, in fact, have Broward County Utilities in between. He said as a result, the rates in the east are essentially dependent on the rates that the City must pay to Fort Lauderdale for the water and sewer service. Mr. Campbell asked the projected cost of this hookup and Mr. Keating said the facilities for the hookup are already installed and were paid for by Fort Lauderdale with 75% government money. He said there is no capital outlay for the hookup but the cost is reflected in the rates that Fort Lauderdale charges Tamarac for water and sewer. He said last year the City budgeted a full year for those costs be- cause the City was told that they would be sending their wastewater to Fort Lauderdale. He said due to complications that the County had with Oakland Park and Wilton Manors, Tamarac was not able to hook up. Mr. Keating said the billing from Fort Lauderdale will be given to the City, not the individual resident,but the City's ability to pay that bill comes from the rates charged to the residents. He said those rates are based on the anticipated costs from Fort Lauderdale. Tape Mr. Keating said this year the City budgeted $40,000 in the Utilities 2 East Fund for a projected 9 months service from Fort Lauderdale. That cost is included in the rate structure that exists and if Tamarac can hook up ahead of time, the cost will be greater than $40,000. The reason that there is a surplus in the budget is because the rate contemplates this payment to Fort Lauderdale. The rate that they will be charging Tamarac will be in excess of what the ►-esidents will be payi.ng there. The City Manager said the Finance Director referred to a memo of his in which he made a projection that the current rate structure for Utility East after the hookup is effected, hopefully, during this budget year, will probably sustain the utility system until fiscal year 85/86. She said that hookup will not be felt by the consumer immediately because the City will be able to maintain its rate to the consumer, however, the bills from Fort Lauderdale to the City will be higher. C/M Stelzer MOVED to ACCEPT the budget submitted for Tamarac Utilities East, APPROVING Temp. Reso. #1060 on first reading, SECONDED by V/M Massaro. VOTE: ALL VOTED AYE 2. Tamarac Utilities West - Temp. Ord. #1061 - Discussion and possible action to adopt the annual Tamarac Utilities West Fund Budget for FY 1983/84. First Reading. SYNOPSIS OF ACTION: APPROVED on first reading. - 2 - 9/13/83 /pm Jon Henning read the Ordinance by title and the City Manager said in the Revenues there is an'amount of $5,224,328 as advertised, however, that number is now down to $5,216,828. She said the 82/83 Operating Budget Revenues were for $4,845,413.89. Under the Expend- iture portion of the Revenue Fund, the City Engineer costs, which were being shared half between the General Fund and half between the Utility West Operation are being brought back within the General Fund, therefore, there is nothing being projected as an expenditure under City Engineer/Utility West, last year that number was $68,889.55. Utility West Revenue Fund, Water/Sewer Services are being budgeted at $366,050, this is a new Division which combines the Administrative/ Operating cost.of both these areas. Water Treatment projected cost for this current fiscal year, $670,490, last year the amount was $686,222.50. Transmission and Distribution is $263,830 for the current fiscal year and was $308,104.85 last year. General and Administration is $527,130 this year and was $529,853.65 last year. Waste Water Collection is $582,550 this year and last year was $649,138.40. Waste Water Treatment is $895,460 this year, last year was $1,053,53.6.94. Water/Sewer Services is $1,911,318 this year and last year the amount was $1,549,668. Total Operating Expenditures under the Revenue Fund are $5,216,828 for 83/84. Sinking Fund Bond Service is $1,275,768 and last year the amount was $1,273,868. Sinking Fund Reserve Account is $140,000 and for 82/83 was $154,000. Renewal/Replacement Fund: Revenues, $391,000. Under the Expenditure Portion, Water Treatment is $291,500, for 82/83 the amount was $117,300. The City Manager continued: Waste Water Collection is projected at $34,500, last year that item was $6,500, that is Utility West Renewal/Replacement Fund for the Wastewater Collection Division and there is $6,000 next year being budgeted for repair of the video equipment, the jetrodder, $11,000 for a replacement vehicle and the rebuilding of 4 lift stations will cost $17,500. Wastewater Treat- ment Total figure last year was $233,800. She said there has been a change from date of publication, the figure is now $1,144,378 and last year that figure was $832,200 in the General Reserve Fund - Revenues. Water Treatment current fiscal year amount is $144,000, last year this amount was $3,400. Transmission and Distribution is funded at $5,000, however, that number has been increased to 72,500 and last year that account was budgeted for $23,250. General A$dministration is projected at $6,000, last year budget was $12,000. Wastewater Collection is budgeted at $95,000, last year was $42,000. Wastewater Treatment is $30,050, last year was $3,200. Utility West Water Services is projected at $804,328 and is now $796,828, last year this was budgeted at $748,350. Total Expenditures are $1,144,378. General Reserve CIAC has been increased to $1,937,725, last year it was $1,130,750. The City Manager continued: Expenditures -Water Treatment has been increased to $1,225,000, last year that account was budgeted for $917,500. She said since the publication, there has been an addition of Wastewater Collection at an amount of $172,000 to be added to the others. She said the prior year budget in the Wastewater Division was $119,750. There was, in last year's budget, another division under Wastewater Treatment for $56,100, nothing has been proposed under this account for this year. Sewer Services has $596,860 shown and this is reflected downward to $540,725, last year that division was budgeted at $37,400. Total Expenditures in this fund are $1,937,725, Escrow to Broward County - $80,000 in Revenue and $80,000 in Expend- itures. She said the budget figures presented at this time will be supported by the current rate structure; there is a coverage in excess of what is required under the City's bond application of 1.20%. Mayor Falck opened the public hearing and Ray Munitz asked what the appropriated fund balance is for this year versus last year. Steve Wood said there is no fund balance, it is about $600,000 before depreciation is involved. - 3 - 9/13/83 / pm Ray Munitz suggested a feasibility study be taken to determine if it would be appropriate to combine the east and west utilities to allow for more economical and efficient operations. Mayor Falck explained that it is not a compatible arrangement since the west's involvement with the 201 will be with the north section and the east's is with the central section. He said they will be charging their own rates and is not a comparable system on wastewater or wellwater. Mayor Falck closed the public hearing with no further response and V/M Massaro MOVED to ADOPT Temp. Ord. #1061 on first reading as outlined by the City Manager. SECONDED by C/M Krantz. VOTE: ALL VOTED AYE 3. Special Funds - Temp. Ord. #1062 - Discussion and possible action to adopt the Capital Reserve, Bond Sinking, Self Insurance Collision, Police Education, Parks and Recreation, Drainage Improvement, Central Data Processing Services and Central Stores Services Fund Budgets for FY 1983/84. First Reading. SYNOPSIS OF ACTION: APPROVED on first reading. Jon Henning read the Ordinance by title and the City Manager said the Capital Reserve Fund Revenue projection is $830,527 and 82/83 was $250,000. Bond Sinking Fund is reflected at $91,100, Expenditures is comprised of $65,000 in Principal and $26,100 in Interest. She said last year that account was budgeted with Expenditures and Revenues at $95,000. Self Insurance/Collision is reflected at $6,000 in Revenues and Expenditures, which is the same as last year. Police Education Fund is $15,000 in Revenue and $15,000 in Expenditures, last year this account was budgeted at $11,500. Parks and Recreation Fund is budgeted at $754,300 in Revenues and Expenditures, Expenditures are projected in the following fashion: $568,000 for buildings, for improvements other than buildings _ $184,800, Capital Machinery and Equipment - $1,500. She said last year this fund was budgeted at $210,000. Drainage Improvement Fund was projected at $100,000i and year this fund was budgeted at $300,000. Central Data Processing Services Fund is budgeted at $168,090; this is a new account and revenues are derived by assessing against each operating division of the City for their fair share for the data processing operation. ape Central Stores Services Fund is projected at $174,890 and the re- venues are derived by an assessment against each operating account of the City including the Utilities for their share of these operations. She said both these accounts are new since last year and those costs up until now were being borne in part through the Finance Department and were then interspersed into various operations. Mayor Falck opened the public hearing and a resident from Westwood 24 asked if all these accounts can be considered under one Ordinance and the City Attorney said this is appropriate and can be discussed separately if Council so desires. Melanie Reynolds, Charter Board member, said an Ordinance is supposed to cover one subject only and the City Attorney said the question is the definition of "one subject", since the subject here is "special funds". Ray Munitz asked if there were a need for a referendum to authorize any of these expenditures included in these funds and Steve Wood said there is no one item in there that exceeds the amount required under the Charter for referendum. Mayor Falck closed the public hearing and V/M Massaro MOVED the ADOPTION of Tem . Ord. #1062 on first reading, SECONDED by C/M Krantz. Hyman Fox asked if the Building/Recreation $568,000 would call for a referendum and the City Manager said it is not comprised of one particular building and there are several things that the Recreation Director included in a 5 year Capital Improvement Plan, none of which are immediately authorized by the approval of this budget. - 4 - 9/13/83 /pm Vote was taken on V/M Massaro's MOTION to APPROVE Temp. Ord. #1062 on first reading, which was SECONDED by C/M Krantz. VOTE: ALL VOTED AYE 4. Surplus Adjustments - Discussion and possible action. SYNOPSIS OF C/M Kravitz concerning findings to next Budget ACTION: Agendized by Consent. will consult with auditors this and send a memo of his Council members before the Hearing scheduled for 9/26/83. C/M Stelzer MOVED to Agendize by Consent discussion and possible action on Surplus Adjustments, SECONDED by C/M Kravitz. VOTE: ALL VOTED AYE C/M Stelzer read his memo into the record (See Attachments l and 2). He further referred to his chart of Suggested Adjustments (See Attach- ments 3 and 4). V/M Massaro questioned if the Interest in the Parks and Recreation Fund should be put into the General Fund and C/M Stelzer said it should since it is not necessary to increase the Recreation Fund which is money that has been put aside to be used for recreation facilities. V/M Massaro said that money was put there by developers and not by the peeple and was put there specif- ically for recreation. Mayor Falck said if the City does as suggested by C/M Stelzer, they are benefiting the people that are here currently to the extent of the return on funds that are interest bearing as well as those future residents. Ray Munitz said what C/M Stelzer is proposing what accountants refer to as a Current Benefit of Income. He said the trend is to give immediate effect to the reduced amount of taxes necessary without particularly worrying about the future. V/M Massaro said that monies that were taken from the General Fund belong to the people and any interest they generate belongs in the General Fund but monies that are taken from developers for specific purposes should be used only for that purpose. C/M Stelzer said they are not touching the Pension Fund since it has a built-in Interest factor, the Self Insurance Fund or other little funds. C/M Kravitz said as liaison to Finance, these adjustments should be looked into and discussed with the auditors before the next scheduled Budget Meeting on 9/26/83. C/M Stelzer said his figures are all estimated and subject to change. Steve Wood said the problem is they will not be able to produce the document for the Budget Meeting that would include the recommendation if it will not be valid. They will only be able to produce the analysis of the budget based on one assumption. The City Manager said there will be no change in the documents as presented today prior to the Budget Meeting scheduled for 9/26/83 for second reading. She said there cannot be unless there is some directive by action of Council today, otherwise, staff will go with the figures as presented. V/M Massaro said this will be deter- mined by the memo that will be issued by C/M Kravitz concerning C/M Stelzer's recommendations. Mayor Falck adjourned die meeting until 7:00 P.M. k \ MA ATTEST: ASSISTANT CITY CLERK - 5 - 9/13/83 p p 9 /t)9 C� �3: l / p m This ublic document was romul gated at a cost of $ or $ per copy, to inform the general public and public officers and employees about recent opinions and considerations by the City Council of the City of Tamarac. CITY OF TAMARAC APPROVED AT MEETING OF /o//��. 9/13/83 Budget Hearing - ATTACHMENT 1 MEND TD: FROfI: DATE: SUBJECT: REFERENCE: CITY OF TAMARAC INTER — OFFICE MEMORANDUM �'(A- Mayor & Council, City Manager, City Attorney, Finance Director Councilman Jack Stelzer September 7, 1983 At several of our public meetings, I discussed the past practice of accumulating interest in our Fund Accounts. I always maintained that any monies put into funds such as Capital Reserve and Drainage, is monies that are being taken from our citizens and that if the funds were not currently used, that the in- terest should be made available to the citizens through a reduction in the advalorem tax. I have prepared the attached two -page list of suggested adjustments which would change the prior practice. I have considered all interest earned through September 30, 1982, as a prior year adjustment, and I have removed this interest figure from the Fund Account and suggested that it be transferred to surplus. All of the interest earned for the fiscal year ending September 30, 1983, I suggest showing as income for the current year. Several times I have questioned how much the Department of Public Works has spent for Recreational Facilities. When I first came into Council, I asked for all the work -orders from the Department of Public Works, relative to construction done at our various parks, and found very few work -orders in the file. Our City Manager has asked Greg Turek, Public Works Director, to get a ballpark.figure of what the value of each Recreational Facility is, and I have totalled this figure which came up to $325,000. In analyz- ing the Recreational Fund and the Caporella Park Fund, I found that $215,000 was actually spent from the funds for Recreational Facilities. Therefore, I must assume that the Department of Public Works has con- tributed at least $110,000., which I suggest adding to our prior year surplus and reducing the Recreation Fund by a like amount. (continued...........) 9/13/83 Budget Hearing - ATTACHMENT 2 4 TO: Mayor & Council, City Manager, City Attorney, Finance Director Sept. 7, 1983 - Page Two These adjustments will then result in figures as shown on Line 24 of Page 2. As far as the budget for the year-end September 30, 1984, the estimated expenditures exceed the estimated income by $1,929,000, and if we appropriate this amount from our surplus to balance the budget, we will wind up with $1,495,000 as our surplus at the end of September 30, 1983. I further suggest that we transfer $600,000 to the City Hall Renovation Fund which should take care of any renovations needed in our contemplated plan. This would leave us with an unappropriated surplus on September 30, 1983 of approximately $895,000, which seems like a figure sufficient for our needs. I would like to have this discussed at our Budget Meetings when we discuss the various funds, as the projected budgets for the funds may be affected. Count 1 man-, Jac Stelzer JS/ss Enclosure No Text 9/13/83 Budget Hearing - ATTACHMENT 4 Prepared by , 8 /22/83 f (l (All figures nearest Thousand) CITY OF TAMARAC (9/30/83 figures Estimated) SUGGESTED ADSUST%NTS Page 2 of 2 ....... Fly 9/30/83 9/30/83 Surplus Recreation Year ended BUDGET _ 'Total Fund 9/30/83 :. YEAR END 9/30/82 9/30/83 9/30/84 Sub Totals Forwarded d i M ,0 (1 M3.,01+4 92. { ( ,102 M) 13,QEEATTQN FOD 1W M I Int to 9/30/82 404 1 M ,; 404 M t 1(4 4 p M ) I Int to 9/30/83 I 162 M (162 M) 162 M Contributions 1 164IM Grants j� 64� M Spent 168 M)'' Transfers Out i12I M)' CAPORELLA PK VALU 1 i j] I Int to 9/30/83 3 M 1 M From General } 7 M I - .._ Spent (47 _ l; M)'� I. Balance in a se 2M'; !i � � 12 M i I a CYPRESS CREEK 'VA1L#1p,M L. -- SOCCER FIELD AMARAC PA VAL 1 VALUE ALL FAC ILITI 13�m I IS I , i nt I I Constructed D 11 M 110M (110 MY, I I 1 2 Sub Totals (Added o 'Surd s I, b3, M) 3 558 M ! 1 136 M (34 I Ma i i ,929 M 2 Appropriated for 3 0/ 3; (ri 53 5 M) 134 M)j! ( 134 M 112 Appropriated far /4 1 9 291 M )i II ,19' ,. �(2 q� (ri _a-....__ � . 1 5 I I Iz 13 TRANSFER TO CITYkiQ A q �MI� �3 a r .. 3 UNAPPROPRIATED RPL /3 / 3 l M' 3 RECREATION FUN j /3 / 3 j 16 M I �I 113 I TRANSFER TO UTIL P.S.Cx FUND + g 3, Int to 9/30/82 364 M I �3 Int to 9/30/83 7 M I �41 Refunds Due M 4 i I4; I it I 4,