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HomeMy WebLinkAbout1986-09-23 - City Commission Special Budget Meeting Minutesof T4� 10RtpP P,O. BOX 25010 TAMARAC. FLORIDA 33320 Cl -w September 16, 1986 NOTICE OF BUDGET PUBLIC HEARINGS FISCAL YEAR 1986/87 Please be advised that Public Hearings will be held by the City Council on Tuesday, September 23, 1986, at 6:00 P.M. at the City of Tamarac Satellite Recreation Building, 7501 University Drive, Tamarac, Florida, on the following items: 1. Final Millage Rate - Temp. Reso. #4250 - To adopt an aggregate proposed millage rate for FY 1986/87 2. Final General Fund Budget - Temp. Ord. #1285 - To establish the General Fund Budget for FY 1986/87. Second Reading. (First Reading was held 9/8/86). 3. Tamarac Utilities West - Temp. Ord. #1286 - To adopt the Annual Tamarac Utilities West Fund Budget for FY 1986/87. Second Reading. (First Reading was held 9/8/86). 4. Tamsjrag !Jtilities Esqst - T .d. 1287 - To adopt the Annual Utility East Fund Budget for FY 1986/87. Second Reading. (First Reading was held 9/8/86). 5. ,$p gial Funds - Tgmp. Qrd-.--.11288 - To adopt the General Capital Construction Fund - City Hall, Police Education Fund, Building Education Fund, GOB 1975 Sinking Fund, GOB 1984 Sinking Fund, City Hall Renovation Fund, Drainage Improvement Fund, Parks and Recreation Fund, Capital Construction Drainage Fund, Sidewalk Project Fund, Street Resurfacing Phase II Fund, Capital Reserve Fund, Central Data Processing Services Fund, Central Purchasing/Stores Fund, Fleet Maintenance Fund, Self Insurance Collision Fund and First Aid Claims Fund Budgets for FY 1986/87. Second Reading. (First Reading was held on 9/8/86). The public is invited to attend. Marilyiq Ber holf, CMC 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 at such meeting or hearing, he will need a record of the proceedings and for such purpose, he may need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is to be based. 'c�ORIDP P.O BOX 25010 TAMARAC, FLORIDA 33320 September 16, 1986 RECORD F COUNCIL DISCUSSIONS AND ACTIONS NOTICE OF BUDGET PUBLIC HEARINGS FISCAL YEAR 1986/87 Please be advised that Public Hearings will be held by the City Council on Tuesday, September 23, 1986, at 6:00 P.M. at the City of Tamarac Satellite Recreation Building, 7501 University Drive, Tamarac, Florida, on the following items: 1. Final Mill.agg Rats - Temp.__ResQ. 14250 - To adopt an aggregate proposed millage rate for FY 1986/87. FINAL ACTION: RESOLUTION NO. R-86-316 PASSED. APPROVED as amended with a millage rate of 3.25 and a percentage increase in property taxes for FY 86/87 of 19.0%. Public hearing was held. 2. Final General Fund Budget - Temp. Ord. #1285 - To establish the General Fund Budget for FY 1986/87. Second Reading. (First Reading was held 9/8/86). FINAL ACTION: ORDINANCE NO. 0-86-52 PASSED. APPROVED on second and final reading with an annual General Fund Budget of $11,793,260.00. Public hearing was held. 3. Tamarac Utilities West - TemP.-Qrd. #1286 - To adopt the Annual Tamarac Utilities West Fund Budget for FY 1986/87. Second Reading. (First Reading was held 9/8/86). FINAL ACTION: ORDINANCE NO. 0-86-53 PASSED. APPROVED on second and final reading. Public hearing was held. 4. Tamarac -Utilities East - Temp. _0 d. #1287 - To adopt the Annual Utility East Fund Budget for FY 1986/87. Second Reading. (First Reading was held 9/8/86) . FINAL ACTION: ORDINANCE NO. 0-86-54 PASSED. APPROVED on second and final reading. Public hearing was held. 5. Special Funds - Temp. Ord. #1288 - To adopt the General Capital Construction Fund - City Hall, Police Education Fund, Building Education Fund, GOB 1975 Sinking Fund, GOB 1984 Sinking Fund, City Hall Renovation Fund, Drainage Improvement Fund, Parks and Recreation Fund, Capital Construction Drainage Fund, Sidewalk Project Fund, Street Resurfacing Phase II Fund, Capital Reserve Fund, Central Data Processing Services Fund, Central Purchasing/Stores Fund, Fleet Maintenance Fund, Self Insurance Collision Fund and First Aid Claims Fund Budgets for FY 1986/87. Second Reading. (First Reading was held on 9/8/86). 5. Special Funds - Temp. d. #1288 - Cont'd. FINAL ACTION: ORDINANCE NO. 0-86-55 PASSED. APPROVED on second and final reading. Public hearing was held. The public is invited to attend. Marily Bertholf, CMC 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 at such meeting or hearing, he will need a record of the proceedings and for such purpose, he may need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is to be based. 1 CITY OF TAMARAC, FLORIDA CITY COUNCIL BUDGET PUBLIC HEARING SPECIAL MEETING September 23, 1986 Tape 1 CALL TO ORDER: Mayor Hart called the Special Meeting/Public Hearing to order at 6:00 P.M. on Tuesday, September 23, 1986 at the Tamarac Satellite Recreation Building. ROLL CALL: PRESENT: ALSO PRESENT: Mayor Bernard Hart Councilman Sydney M. Stein Councilman Arthur H. Gottesman Vice Mayor Jack Stelzer Councilwoman Helen Massaro John P. Kelly, City Manager Alan F. Ruf, Consulting City Attorney Carol E. Barbuto, Assistant City Clerk Patricia Marcurio, Secretary 1. Final Millage Rate - Temp. Reso. #4284 - To adopt an aggregate proposed millage rate for FY 1986/87. SYNOPSIS OF ACTION: APPROVED as amended with a millage rate of 3.25 and a percentage increase in property taxes for FY 86/87 of 19.0%. Public hearing was held. RESOLUTION NO. R-86-316 PASSED. Mayor Hart said the first Public Hearing on the budget was held on Monday, 9/8/86, with a Resolution which called for a millage rate of $4.58 per $1,000 of assessed value. He said after much discussion by the public and Council, reduction of the millage rate was considered to $3.35 with a 6% utility tax. Mayor Hart said after the Motion was approved to change this millage to $3.35, someone asked if the utility tax only referred to electric and the answer was that telephone service was included as well. He said since that time, he studied the dictionary and State Statute definition of "utility tax" and learned that it could include a tax on all utilities. Mayor Hart said in Broward County only 6 of the 26 cities reporting to the Broward League of Cities, including Tamarac, have not had a utility tax. He said most have 10% on all utilities. He said a Council Workshop meeting was held last week during which a sugges- tion by C/W Massaro was adopted that the fairest way of collecting the money necessary to operate the City properly was to charge residents exactly what the City was paying for garbage removal. Mayor Hart said they checked 26 cities to determine if they had a garbage removal fee that was billed separately to the people of the City. He said of these 26 cities, 5 had the garbage removal fee in their ad valorem tax, as Tamarac has done for many years. He said 21 cities have charged separately for a garbage removal fee and most have them directly on the utility bill as a separate line item. Mayor Hart said some people desired to raise what was originally presented to the public, have no tax on utilities or garbage removal the ad valorem tax to that is, $4.58, and fee. 1 9/23/86 /pm Mayor Hart said there is a State Statute which stipulates that between the time of the first and second budget hearings, the City may not raise the millage rate. He said the interim fee tentatively chosen was $3.35 per $1,000 of assessed value. Mayor Hart noted that the public hearing will be held and Council will then take action because this is mandatory before 10/1/86. V/M Stelzer, Liaison to Budget and Finance, said he would like to correct the agenda to read Tp p,�_Eeso. #4284 instead of Temp. Resp. #4250, as noted on the agenda. V/M Stelzer said the budget has increased as follows: General Budget - 1979 - $ 4,500,000.00 1986 - $11,700,000.00 Police Department - 1979 -- $ 1,300,000.00 1986 - $ 3,900,000.00 Fire Department - 1979 - $ 431,000.00 1986 - $ 1,400,000.00 V/M Stelzer said the Police and Fire Department budgets are approximately 47% of the City's total budget with an increase this year of $1,300,000.00, of which $840,000.00 is due to salary increases and benefits. He said the employee salaries are over 70% of the entire budget since 95% of the employees are unionized. V/M Stelzer said in all prior years expenses were estimated by Department Heads and reviewed by the City Manager with the Finance Director and the City Manager determining what they feel the income for the City will be. V/M Stelzer noted the following: Year Surplus &Mount -.Over and Abov Ex uses 1979 -- $1,500,000.00 1980 - $ 570,000.00 1981 - $1,000,000.00 plus 1982 -- $ 215,000.00 1983 - $ 188,000.00 V/M Stelzer said the City accumulated a tremendous surplus so that in 1983 there was a 2.6 million dollar surplus and the auditors complained that this was too large. He said a Charter Amendment was approved by the people to keep no more than 10% of a current year's budget as a surplus. He said to comply with this, the Finance Department reduced the rates on the ad valorem. He said in 1984 the rate was $2.25 and $938,000.00 was spent of the surplus. V/M Stelzer said the State mandated that the City could not raise ad valorem taxes more than 10% in any one year so that for 1985 the tax rate became $2.48 and $1,700,000.00 of the surplus had to be used leaving a $14,000.00 negative balance at the end of 1985. He said every other City in the area has had the same problem. V/M Stelzer said the total budget this year is $11,700,000.00 and 4.2 million dollars is needed to balance the budget. He said that amount would have to come either from ad valorem taxes or by any other method that can be devised. He said it was suggested at the last Budget meeting that a 6% utility tax would be added and the people present that night agreed with this solution. V/M Stelzer said it was determined later that the utility tax would be very inequitable since people with families using a great deal of electricity would have to pay a tremendous amount. He said on the other hand, when the garbage removal fee was in the ad valorem taxes, the people with homes that were assessed low would pay about $58.00 to $75.00 per year as equivalent for garbage removal while the people with homes assessed at $300,000.00 would have to pay $402.00 for garbage removal. 1 2 r 9/23/86 /pm V/M Stelzer said at the Budget Workshop it was determined that the City would add $6.37 to the utility bill for garbage removal for the private home resident and $3.06 for garbage removal for condo- minium residents. He said this is exactly what Waste Management is charging the City and they will pass this charge to the resident if this is passed. Mayor Hart opened the Public Hearing. Jack Bizar, 7307 NW 65 St., asked what was done to avoid a raise in taxes. Mayor Hart said since the election in March, there have been raises of the tipping fees, a 12 million dollar bond issue for the new utility system and today they are asking the residents for constructive input to this problem. Bill Pisner, Vice President of the Civic Association at Faircrest 14, said last year was the first year that garbage was paid separ- ately and Mayor Hart said there was a $3.00 charge put on at that time. C/M Stein said last year it was decided to pass on 50% of the actual cost of the City for garbage removal. He said the Council was willing to have a utility tax instead of a garbage collection fee but they are trying to find the best way for all concerned. He said if the people present tonight feel they would rather have a 6% utility tax, then Council will go along with their wishes. David Silvergleid, resident, said he attended the Budget Workshop and he noted that if the utilities were taxed it would be entirely inequitable and would establish a precedent. He said this might open the door for further taxes on water, sewer and other services as well. He said he agrees with the additional charge for garbage collection and he commended Council's agreement on this issue. Irving Polk, resident of Kings Point, said he lived in Davie previously where they paid taxes on the telephone and electricity; however, because he lived in a condominium area, the township could not collect on the garbage removal because there was private service. He questioned whether it was legal for the City to charge for condominium pickup. Mayor Hart said Davie has a 9% tax on utilities plus a franchise of garbage to a collector. C/W Massaro asked Mr. Polk what is meant by "private" and Mr. Polk said the Association paid directly to the company. Mayor Hart said the garbage collection fees are paid by the City to Waste Management at $3.06 per condominium unit. C/M Gottesman noted that last year, according to the figures he had, a Davie resident paid $96.40 for the year for garbage collection and this amount will be higher this year because there was a tipping charge increase. He said Tamarac is only asking for approximately $37.00 per year which is 1/3 of what was paid in Davie. Karen Craig, resident of Heathgate/Sunflower, said she is in favor of the garbage collection fee rather than a utility tax but she questioned the difference between the condominium charge and the charge for single family homeowners. C/W Massaro said condominiums have dumpsters for group collection, whereas, single family homes require individual collection. Irving Lopatey, 9150 Lime Bay Blvd., President of the Tamarac's Presidents Council, said they sent Council a letter indicating their wishes with regard to the ad valorem tax and the utility tax. He said they indicated that they did not want a utility tax and would prefer an increase in the ad valorem. 3 9/23/86 /pm Tape 2 Mr. Lopatey said after the letter was delivered, they learned that the ad valorem could not be raised. He said he attended the Workshop meeting and he felt a utility tax would be unfair. Milt Siegel, President of the Isles of Tamarac, asked if the final figure of the ad valorem is $3.35 and V/M Stelzer said no, that is a proposal. Aaron Heller, 5715 NW 86 Ave., said he was opposed to a user tax on telephone and electricity and he felt the City should have open bids for franchises for garbage collection. Don Perlman, resident of Sunflower/Heathgate, asked what the true figure for ad valorem taxes is and V/M Stelzer said there is now a projection of a $3.35 rate plus garbage removal fees. Mr. Perlman asked how much revenue will be generated by this figure and Mr. Etheredge said this should generate approximately $3,185,000.00. He asked if the reappraisals of all the homes was taken into consideration when this rate was determined and Mayor Hart said the assessed values are submitted to the City by the County Assessor. Arthur Hill, President of the Heathgate/Sunflower Homeowners Association, said a utility tax could have a rate that is out of control. Mr. Hill said previously residents opposed the imposition of a garbage fee because there was an advantage to the individual on income tax by having that fee incorporated in the ad valorem tax. Faye Goodman, 9200 Lime Bay Blvd., said the handout shows Police and Fire budgets together and she asked if this was proper. V/M Stelzer said the expenses have been grouped in categories and the Police budget is $3,945,000.00 and the Fire budget is $10575,000.00. Mrs. Goodman asked if the reflected figure for Police has anything to do with the BSO contract and Mayor Hart said no. Bernie Shiff, resident of Springlake, said it seems that a 6% utility tax would be such a greater amount of income and she questioned if the garbage collection fees will cover the amounts needed. V/M Stelzer said the City plans on spending $1,300,000.00 for garbage removal for next year and the Finance Director has determined that passing the exact amount that the City is charged on to the residents, will make up the difference. Sam Vasin, resident of Section 14, asked why the $3.00 garbage fee that was paid last year is not listed on the handout and Mr. Etheredge said it shows in the General Fund as income. He questioned whether the millage can be raised or not and V/M Stelzer said the old law was repealed last year and cities are now allowed to raise the taxes with a ceiling of 10 mils. He said in the past cities were only allowed to raise it 10% over the prior year. Mr. Vasin asked why there was a surplus in past years that was invested in ESM and he noted that the taxes were held steady at that time. Mayor Hart quoted the following figures: Year Millage_ Rate 1979 -- $6.03 1980 - $5.69 1981 - $6.48 Sherman Merle, President of the Springlake Homeowners Association, asked why the ad valorem is "proposed" at 3.35 and C/M Stein said it is considered a proposed rate until it is officially approved by Council. He said the amount cannot be raised but could be reduced. 4 9/23/86 /pm 1 Mr. Merle said an increase from $3.00 to $6.37 for garbage collec- tion is a 112% increment. V/M Stelzer said last year the City's contract with Waste Management was for $1,066,000.00 and this year the amount is $1,300,000.00. He said the tipping charge is what Waste Management pays when they dump the refuse into a dump and that has been increased. He said last year the residents were only charged half of what the City had to pay. He said this year additional revenue is needed because the ad valorem taxes are down and they are only charging what it actually costs the City. C/M Stein said the total budget is $11,300,000.00 and the total amount of ad valorem is $4,000,000.00. He said the increase is caused because the State does not give any additional assistance; therefore, the money must come from the residents. Mr. Merle said he would rather have everything included in an ad valorem tax. Mayor Hart said he agrees that it should all be in the ad valorem tax and if the original proposal of 4.58 millage was adopted, there would have been no discussion concerning a garbage collection fee or a utility tax. He said at the last meeting the people approved a millage rate of 3.35 plus a 6% utility tax. He said the Council could now drop the utility tax and devise another way to account for the money needed. He said according to State Law, the City cannot raise the 3.35 rate at all. Carolyn Mascolo, resident of Sunflower/Heathgate, said she felt the City should stay strictly with an ad valorem tax. She urged Council to consider inviting businesses into the City to avoid higher taxes. Mayor Hart closed the Public Hearing with no further response. C/M Stein said there cannot be a garbage contract within this City without a franchise paying a franchise fee. He said he agreed with Mrs. Mascolo and he noted that Council is working to invite businesses into the City for that purpose. He said the ultimate way out is to broaden the tax base and he noted that there is a Public Hearing tomorrow night regarding Land Section 7 and, if the Resolution is passed, the first developer in there has plans for a 45-acre mall and motel unit. He said this is the first step to broaden the tax base. C/M Stein said approximately 3 years ago, the residents approved a 20 million dollar bond issue, which is being floated and, this year, the City must pay the interest on this. He said there is 2 million dollars in debt service in this budget plus the old debt service, which has not been paid as yet. He said most of the money invested with ESM was developers money put aside for water, sewer and development. He said the City is getting a new water plant and sewer system and the residents must pay for this. C/M Gottesman said he spoke with the Finance Director this after- noon and was told that the ad valorem could be reduced to $3.25 and he questioned why discussions tonight concern $3.35. Mayor Hart said Council has not adopted any millage rate as yet and Temp• Reso. #4284 calls for $3.35; however, after Council comments and the Attorney reads the Resolution, this can be amended if desired. C/W Massaro said the mall that C/M Stein refers to has been planned for two years at an estimated cost of 45 million dollars. She said 4 years ago, when this was first discussed, the residents were very much opposed and wanted a "bedroom community". She said last year the residents did not oppose that particular mall and she noted that this can be realized if people do not protest. She urged people to attend the various Land Use Plan meetings so that they can give constructive input. C/M Gottesman said the budget is $11,800,000.00 and not $11,300,000.00 as previously stated and C/M Stein accepted the correction. 5 9/23/86 /pm V/M Stelzer said Temp. Reso. #4284 follows Resolution 86-284, which was approved two weeks ago, approved a millage rate of $3.35 with a 6% utility tax. He said the Finance Director has recomputed the figures and it is possible that a millage rate of $3.25 can be adopted, reducing the millage rate by $.11. He said every penny reduced in the millage rate reduces the City's income by $9,000.00; therefore, if a $3.25 rate is adopted, the income will be reduced by $100,000.00. V/M Stelzer said he would like to see $100,000.00 built up for next year by keeping the millage at $3.35. Consulting City Attorney Ruf read Temp. _Reso. #4284 entirely into the record. C/W Massaro requested an Amendment to that Resolution and Mayor Hart said there must first be a Motion to adopt the Resolution and then an Amendment can be made. C/M Stein MOVED APPROVAL of Temp. Reso. #4284 with a millage rate of $3.35, SECONDED by V/M Stelzer. C/W Massaro said in as much as the Finance Director has indicated that a millage rate of $3.25 is adequate to cover the budget, she MOVED to AMEND that figure to $3.25, SECONDED by C/M Gottesman. C/M Gottesman noted that the percentage is now 19% instead of 22% as previously noted. Mayor Hart asked the Finance Director to verify that figure and Mr. Etheredge did so. C/M Stein said he would endorse the reduc- tion in order to show the residents that Council is making an effort to control costs. Mayor Hart called for a Roll Call on the Amendment from $3.35 mills to $3.25 mills. VOTE: ALL VOTED AYE Consulting City Attorney Ruf read Temp. Reso. #4284 entirely with the new millage of $3.25 and the new percentage of 19%. Mayor Hart called for a Roll Call on the MOTION for APPROVAL of Temp. Reso. #4284. VOTE: ALL VQTED AYE 2. Final Gengral Fund Budget - Temp. Qrd. #1285 - To establish the General Fund Budget for FY 1986/87. Second Reading. (First reading and public hearing was held 9/8/86). SYNOPSIS -OF ACTION: APPROVED on second and final reading with an Annual General Fund budget of $11,793,260.00. Public Hearing was held. ORDINANCE NO. 0-86--52 PASSED. Mr. Ruf read TeMp. Qgd. 11285 by title. Mayor Hart opened and closed the public hearing with no response. 6 �Pm 3/86 1-1 1 1 1 * * V/M Stelzer MOVED APPROVAL of Temp. Ord. #12U with a Final General * Fund Budget in the amount of $11,793,260.00, SECONDED by C/W * Massaro. V TE: C/W Massaro Aye V/M Stelzer Aye C/M Gottesman Absent C/M Stein Absent Mayor Hart Aye Tape 3 3. Tamarac Utilities West - Temp. Ord. #1286 - To adopt the Annual Tamarac Utilities West Fund Budget for FY 1986/87. Second Reading. (First reading and public hearing was held 9/8/86). SYNOPSIS OF ACTION: APPROVED on second and final reading. Public hearing was held. ORDINANCE NO. 0-86-53 PASSED. Mr. Ruf read Temp. Ord. #12.86 by title. Mayor Hart opened and closed the public hearing with no response. * * V/M Stelzer MOVED APPROVAL of Temp. Ord. J#1.286 on second and final * reading, SECONDED by C/M Gottesman. -_ -VOTE : C/W Massaro Aye V/M Stelzer Aye C/M Gottesman Aye C/M Stein Absent Mayor Hart Aye 4. Tamarac Utilities East - Tem d. #1287 - To adopt the Annual Utility East Fund Budget for FY 1986/87. Second Reading. (First reading and public hearing was held 9/8/86). SYNOPSIS OF ACTION: ORDINANCE NO. 0-86-54 PASSED. APPROVED on second and final reading. Public hearing was held. Mr. Ruf read Temp. Qrd. #1287 by title. Mayor Hart opened the public hearing. A member of the public asked if the amount of interest on the bond issue was not computed as a fixed anticipated expense when the bond was first issued and C/W Massaro said there is no bond issue for Tamarac Utilities East but there is one for Tamarac Utilities West. Mayor Hart closed the public hearing with no further response. * * C/M Gottesman MOVED APPROVAL of Temp. Ord,#1287 on second and * final reading, SECONDED by C/W Massaro. VOTE: ALL VOTED -AYE 5. Spgcigl Funds - Temp._OXd 11288 - To adopt the General Capital Construction Fund - City Hall, Police Education Fund, Building Education Fund, GOB 1975 Sinking Fund, GOB 1984 Sinking Fund, City Hall Renovation Fund, Drainage Improvement Fund, Parks and Recreation Fund, Capital Construction Drainage Fund, Sidewalk Project Fund, Street Resurfacing Phase II Fund, Capital Reserve Fund, Central Data Processing Services Fund, Central Purchasing/Stores Fund, Fleet Maintenance Fund, Self Insurance Collision Fund and First Aid Claims Fund Budgets for FY 1986/87. Second Reading. (First Reading and public hearing was held on 9/8/86). 7 9/23/86 /pm 5. Special Funds - Cont'd. SYNOPSIS OF ACTION: APPROVED on second and final reading. Public hearing was held. ORDINANCE NO. 0-86-55 PASSED. Mr. Ruf read Temp. Qrd. #1288 by title. Mayor Hart opened and closed the public hearing with no response. V/M Stelzer MOVED APPROVAL of Temp. Ord. #1288 on second and final reading, SECONDED by C/M Stein. VOTE: ALL VOTED AYE Mayor Hart adjourned the meeting at 7:35 P.M. Z/4' rnard Har MAYOR AT ST: CITE Y LERK This public document was promulgated at a cost of $142.10 or $3.94 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. U1'TY OF TAMARAC !!=ETiNGOF -�`�' g(o City Clerk 1 it 1 M. 9/23/86 /Pm