HomeMy WebLinkAbout1988-09-06 - City Commission Emergency Special Meeting Minutes9p 7525 NORTHWEST 88TH AVENUE TAMARAC, FLORIDA 33321-2401
TELEPHONE (305) 722-5900
C r;
RECORD OF COUNCIL ACTIONS/DISCUSSIONS
NOTICE OF AN EMERGENCY
SPECIAL CITY COUNCIL MEETING
CITY OF TAMARAC, FLORIDA
There will be an EMERGENCY Special City Council Meeting on
Tuesday, September 6, 1988 at 4:00 P.M. in Conference Room #1
(Room 103) of City Hall, 7525 NW 88 Avenue, Tamarac, Florida.
The purpose of this meeting concerns the proposed 6% public
service tax on the purchase of electricity, metered or
bottled gas (natural liquified petroleum gas or manufac-
tured), telecommunications and telegraph services.
FINAL ACTION:
• APPROVED the following:
1. That $500,000.00 be deducted from the TUW Fund and
transferred to the General Fund.
2. That the total amount of $532,020.00 be transferred
from the Interim Service Fees Account to the
General Fund to eliminate the proposed 6% Utility
Tax and to balance the budget.
The City Council may consider and act upon such other busi-
ness as may come before it.
All meetings are open to the public.
CAE/pm
Carol A. Evans
City Clerk
AN EQUAL OPPORTUNITY EMPLOYER
POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS
7525 NORTHWEST 88TH AVENUE 0 TAMARAC, FLORIDA 33321-2401
TELEPHONE (305) 722-5900
Revised 9/8/88
RECORD OF COUNCIL ACTIONS/DISCUSSIONS
NOTICE OF AN EMERGENCY
SPECIAL CITY COUNCIL MEETING
CITY OF TAMARAC, FLORIDA
There will be an EMERGENCY Special City Council Meeting on
Tuesday, September 6, 1988 at 4:00 P.M. in Conference Room #1
(Room 103) of City Hall, 7525 NW 88 Avenue, Tamarac, Florida.
The purpose of this meeting concerns the proposed 6% public
service tax on the purchase of electricity, metered or
bottled gas (natural liquified petroleum gas or manufac-
tured), telecommunications and telegraph services.
FINAL ACTION:
• APPROVED the following:
1. That $500,000.00 be deducted from the TUW Fund and
transferred to the General Fund.
*2. That the total amount of $532,020.00 be transferred
from the Interim Service Fees Account to the
General Fund to eliminate the proposed 6% Utility
Tax and to balance the budget.
* EDITOR'S NOTE:
265,620.00 of the $532,020.00 is to come from the
current year's receipts.of Interim Service Fees and
$266,400.00 is anticipated to be collected in FY 88/89.
The City Council may consider and act upon such other busi-
ness as may come before it.
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 EMERGENCY SPECIAL MEETING
TUESDAY, SEPTEMBER 6, 1988
TAPE 1
CALL TO ORDER: Mayor Abramowitz called this Emergency Special
meeting to Order on Tuesday, September 6, 1988, at 4:00 P.M. in
Conference Room #1 (City Clerk's Office).
PRR9RNT:
ALSO PRESENT:
Mayor Norman Abramowitz
Vice Mayor Jack Stelzer
Councilman Dr. H. Larry Bender
Councilman Bruce Hoffman
Councilman Henry Rohr
John P. Kelly, City Manager
Richard Doody, City Attorney
Ken Burroughs, Finance Director
Carol A. Evans, City Clerk
Pauline Walaszek, Special Services
Secretary
The purpose of this meeting was the proposed 6% public
service tax on the purchase of electricity, metered or
bottled gas (natural liquified petroleum gas or
manufactured), telecommunications and telegraph services.
SYNOPSIS OF ACTION:
APPROVE",D the following:
1. That $500,000.00 be deducted from the TUW Fund
and transferred to the General Fund.
*2. That the total amount of $532,020.00 be transferred
from the Interim Service Fees Account to the General
Fund to eliminate the proposed 6% Utility Tax and to
balance the budget.
* EDITOR'S NOTE:
$265,620.00 of the $532,020.00 is to come from the
current year's receipts of Interim Service Fees and
$266,400.00 is anticipated to be collected in FY 88/89.
City Manager Kelly said at the City Council Budget
meeting later in the evening, the City Council would have
to take action on the Millage Rate and Budget for the
General Fund and Utilities. He said the Finance Director
wanted the City Council to inform him if there are to be
any changes made before the meeting. He said the City
Council had concerns with the Utility Tax and wanted the
matter reviewed to see if it could be eliminated from the
Budget.
Mayor Abramowitz said the City Council has been advised
that there was surplus in the Utility Department;
however, he was advised that there were certain other
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9/6/88 - Special
funds with surplus. He said he would like these funds
identified and how much surplus was available in these
funds.
City Manager Kelly said among the funds identified was
Interim Service Fees. He said this Fund was monies
received from the developers that have been used in the
General Fund in the past; however, in the last two years,
through the advice of an Attorney and based on other
Municipalities, the monies have been set aside in an
escrow account. He said after 4 years, the monies are to
be reentered into the General Fund Budget. He said this
course of action has contributed to the shortfall of
monies in the Budget this year.
City Manager Kelly said the City collected $280,000.00 in
Interim Service Fees last year which were set aside in
escrow and, this year, the City was projecting to receive
$246,000.00 in Interim Service Fees. He said this Fund
has been used in the previous years for Budgetary
purposes; however, staff was concerned that the use of
the money for Budgetary purposes may be improper. He
said because of these concerns, the escrow procedure was
established.
Ken Burroughs, Finance Director, said in the current
year, the City collected $255,000.00 in Interim Service
Fees. He said these fees were not from developers but
from taxpayers who request Certificates of Occupancy. He
said the fees were prorations until the tax bill was
issued the following year. He said next year, the
Interim Service Fees collected may be the same amount.
City Manager Kelly said monies have previously been
identified under the Drainage Fund as monies that have
been transferred from the General Fund to the Drainage
Fund over previous years.
Mr. Burroughs said V/M Stelzer made this analysis and the
transfers began in 1979. He said $1,000,000.00 was
transferred from the General Fund to the Drainage Fund;
however, the Fund also includes drainage fees and impact
fees of approximately $1,000,000.00. He said the City
expended approximately $1,100,000.00 for drainage
projects; therefore, arguments regarding the balance of
that Fund could be that the monies were from the City's
General Fund in an amount of $640,000.00.
Mr. Burroughs said the Budget already contains
$640,000.00; therefore, the money could not be used
additionally. He said this was used to primarily reduce
the sale of surplus property.
Mayor Abramowitz asked if this transfer was approved at
the last Regular City Council meeting and City Manager
replied, yes.
Mayor Abramowitz asked what would happen if the City
Council rescinded the transfer and Mr. Burroughs said the
General Fund would be short $640,000.00.
Mayor Abramowitz asked if $500,000.00 of $640,000.00 was
applied to something and, if so, what it was applied to
and Mr. Burroughs said the sale of the surplus property
estimated income was reduced by $550,000.00.
Mayor Abramowitz asked what would happen if the transfer
never occurred and Mr. Burroughs said if the sale of the
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9/6/88 - Special
surplus property income was left as it was, there would
be $640,000.00 available.
V/M Stelzer said the monies for the sale of the surplus
property should only be used for capital improvements.
City Manager Kelly said in the previous year, the City
set monies aside for Capital Improvements contingent upon
the sale of the surplus property and Capital Improvements
were not implemented because the property was not sold.
He said he was not proposing this; however, he was
-
suggesting that the 1.25 million dollars estimated for
the sale of the surplus property be set aside for Capital
Improvements when sold.
V/M Stelzer said this procedure was good for last year's
Budget; however, it would not help this year's Budget.
14ayor Abramowitz said if the City Council wanted to use
the $640,000.00 for another use other than what it was
allocated for, would they be acting illegally.
v/iv1 Stelzer said the City would be using $550,000.00 from
the sale of the surplus property; therefore, if the sale
of the surplus property did not occur during 1988/89, the
Budget would be short $550,000.00 in revenue.
C/M Hoffman asked if there was a Fund for traffic light
improvements and Mr. Burroughs said there was $321,000.00
in the General Agency Fund (Escrow) collected for the
installation of traffic lights. He said he was told that
there was no reason for the collection of these monies.
He said on 57th Avenue and Pine Island Road
$45,000.00 was collected from Shell Service Station for
traffic lights and approximately 200 yards from there is
Commercial Boulevard and Pine Island Road; therefore,
does the money belong to Shell Service Station or the
City.
C/M Rohr asked what would happen if the City was
requested to return the money to the person they
collected it from because a project was not done and Mr.
Burroughs said the request went to the City Council for
approval to refund.
C/M Bender said the City Council needed to know if the
money could be used and Mayor Abramowitz asked if this
money was used in the past. Mr. Burroughs said to his
knowledge, the money was not being used in the past;
;,jwever, the interest was being used.
V/M Stelzer said if the City used the impact fees and
somebody wanted the fees back, there would be problems.
City Attorney Doody said this Fund sounded like an impact
fee because the monies were being collected for a
specific purpose.
C/M Bender said he investigated the matter and found that
even though the traffic light fees were collected in a
certain area, the City could use that money to install a
traffic light anywhere in the City. He said this was
done in the past; therefore, the money was in a Fund to
be used in the City rather than at a given area.
Mayor Abramowitz asked if there were any other Funds that
contained unused money and the City Manager and Finance
Director said these were the only Funds containing money.
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9/6/88 - Special
V/M Stelzer asked if there was only one Bond Issue on the
City Hall and Police Station and Mr. Burroughs said there
were two separate Bond Issues on those buildings.
V/M Stelzer asked what would be done with the money saved
on building the City Hall and Mr. Burroughs said he
understood that the money would be used for the Police
Station.
Mayor Abramowitz asked how much revenue would be raised
if the proposed ad valorem stayed as it is and C/M Bender
replied, approximately $350,000.00.
Mayor Abramowitz asked City Manager Kelly to identify the
shortfall in the Budget and the purpose of the proposed
Utility Tax.
City Manager Kelly said the shortfall is approximately 1
million dollars. He said the City was short $376,000.00
in revenue in the Building Department, $70,000.00 in the
Engineering Department, escrow of $246,000.00 budgeted
but not collected for Interim Service Fees, the 4% Union
raises were not calculated, capital equipment would be
$720,000.00, burglar alarm fee elimination would be
$100,000.00 and the surplus used last year was
$800,000.00. He said this shortfall totalled 2.3 million
dollars.
V/M Stelzer said he reviewed the Budget and there was
nothing in the revenue or expenses that could be
decreased or increased. He said the revenues are
estimated and, if the revenues are over estimated, there
could be problems.
V/M Stelzer said he knew there was surplus in the Utility
Budget and for two he has been
years asking questions
about the money but he has not been receiving answers to
his questions. He said at a Workshop meeting, reduction
in rates were discussed. He said the reduction was to be
15 cents per 1,000 gallons of water and 25 cents
per 1,000 gallons for sewer rates which totalled a
reduction of 40 cents per 1,000 gallons per month. He
said the average usage in the City by residents was
approximately 6,000 gallons per month; therefore, the
savings would be approximately $2.50 per month.
V/M Stelzer suggested the City forego the reduction rates
for this year and apply 1 million dollars of the
anticipated surplus to the General Fund and eliminate the
Utility Fund. He said when the Accountants submit their
report in December the City can evaluate the report to
see how much surplus was generated and could be used
then, reduce the rates if feasible.
V/M Stelzer said the extra money paid into the Utilities
Department in the past years belonged to the residents
and the money being collected for the utility tax
belonged to the residents. He said he did not see why
the City could not transfer 1 million dollars from the
Utility surplus into the General Fund to balance the
Budget.
Mayor Abramowitz said he asked if 1 million dollars from
the Utility surplus could be given back to the residents
and he received an answer that if this was done, the
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9/6/88 - Special
rates would have to
not want to decrease
rates next year.
C/M Hoffman said the
therefore, Utilities
reduction in rates.
to the residents.
be raised next year. He said he did
the rates this year and raise the
surplus came from Utilities West;
East would be benefiting from the
He said this was not a fair refund
V/M Stelzer said the houses in the east did not pay their
fair share of the ad valorem tax because their homes were
smaller and older. He said the electric and water bills
were smaller as well; therefore, the reduction would not
be that much in the area.
C/M Hoffman said if the City applied V/M Stelzer's
suggestion, it would not be fair that the east was
receiving a reduction with the west's money.
V/M Stelzer asked how the developers east of 441 were
being charged for improvements west of 441 and Mayor
Abramowitz said regardless of where the people lived,
they required services.
V/M Stelzer said if the rates were left as they are, 1.5
million dollars would be generated next year. He said
when the City received the Accountants reports, the rates
could be reduced if there were extra surplus monies
available. He said the residential and commercial
residents would have to have the deduction because they
both contributed to the surplus.
Mayor Abramowitz said he does not see why the monies in
the Interim Service Fees Fund and the Trafficways Fund
could not be used.
V/M Stelzer said he would not agree with using these
funds because they were collected for projects.
Mayor Abramowitz said the City Manager informed the City
Council that there was a shortfall and, in order to
correct the shortfall, services would have to be cut or
taxes would have to be imposed. He said the City
Council decided to impose the 6% Utility Tax; however, if
there are monies available that could be used for the
shortfall rather than imposing the Utility Tax, the
monies should be used.
V/M Stelzer said last year, the City Manager placed
$800,000.00 in the General Fund contingent upon the sale
of the surplus property; however, the property was not
sold. He asked if this was done this year and the
property was not sold, where would the City get
$550,000.00 to cover the amount placed in the revenue.
V/M Stelzer said the City should wait until the
Accountants submit their report to see how much was in
surplus and Mr. Burroughs said there would not be more
then 1.5 million dollars in available funds at the end of
the year. Mr. Burroughs said there was only 1.5 million
dollars ofliquid cash available.
V/M Stelzer said the Finance Director stated that there
would be 1.5 million dollars in surplus available at the
end of the year; therefore, if the rates remained the
same, there would be 1.5 million dollars in surplus for
next year.
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9/6/88 -• Special
V/M Stelzer said in 1987 there was a profit of
$2,100,000.00 on the operations of Utilities which
included money collected for the debt service. He said
for the prior year, there was a profit of $1,207,000.00.
Mayor Abramowitz asked where the money went and V/M
Stelzer said the City had $22,000,000.00 invested.
Mr. Burroughs said $22,000,000.00 was restricted funds
and C/M Bender asked what the funds were restricted for.
Mr. Burroughs said traffic lights were part of the funds,
etc.
C/M Bender said these funds were not really restricted
but placed aside as a contingency and contingency meant
emergencies. He said if the City was having an emergency
in balancing the Budget, the funds should be used for
this.
Mr. Burroughs said he was not saying that the monies
could not be used and C/M Bender said the City Council
wanted to identify these funds. C/M Bender said once
this was done, the City Council could determine the
proper designation of the funds.
C/M Hoffman asked how much of the investments are legally
tied up and could be used only for CIAC purposes.
Mr. Burroughs said all of the monies are in the
investments except the Pension monies. He said the only
funds that could really be used is the Trafficways Fund,
Drainage Fund, Utilities West Fund and Interim Service
Fees Fund.
City Attorney Doody said any discussion about the Utility
Fund should be referred to through Section 7.18 of the
City Charter. He said the last sentence stated that the
City Manager's responsibility is to see that there are
separate Budgets.
City Attorney Doody said if fees are collected for
traffic lights, etc., the only theory to allow this is
that the fees are considered impact fees. He said
Governments can collect those types of fees providing
they are used for the purpose in which they are
collected. He said if the impact fees are not used for
what they were collected for, the money may have to go
back to the people they were collected from.
Mayor Abramowitz asked if the any of the monies in the
dk;cou,its could be used to balance the budget to avoid
taxing the residents.
Mr. Burroughs said he suggested several meetings ago
transfering $500,000.00 from TUW and V/M Stelzer said he
suggested transfering 1 million dollars.
Mr. Burroughs said he would transfer $500,000.00 and use
$500,000.00 from the Interim Service Fees Fund and if the
City is called on the transaction, there would be
$500,000.00 in the Interim Service Fees Fund. 9
Mayor Abramowitz said $500,000.00 should be deducted from
the Utility Fund and $500,000.00 from the Interim Service
Fees Fund to cover the shortfall and eliminate the
Utility Tax. He said for the last few years, the City
has been relying on monies from Land Section 7 and the
expected monies have not been received. He said there is
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9/6/88 Y- Special
movement on Land Section 7 at this time and the surplus
property would be sold; therefore, there are things to
pick up the City's financial problem.
Mayor Abramowitz said he would like to take the surplus
money and return it to the residents.
TAPE 2
T City Attorney Doody said the City Manager may be asked
about Section 7.18 of the City Charter which stated,
"...and the City Manager shall be fully responsible in
ensuring that the expenses and revenues involved in.the
operation of such facilities shall not be co -mingled with
any of the regular budget -approved expenses and revenues
of the City."
Mr. Burroughs said the City would not be changing
anything because the City has always transferred
$350,000.00 from the TUW Revenue Fund to the General
Fund; therefore, this could be done this year except the
transfer would be $850,000.00. He said the Bond
Indenture said the funds could be used for any lawful
nur.nose and this seemed to be a lawful purpose.
Mayor Abramowitz said he would like to take $500,000.00
from the Utility Fund and $500,000.00 from the Interim
Service Fees Fund. He said if the City was called on the
matter, hopefully, there will be funds available to make
up the difference. He said the money was needed for
emergency purposes and it did not seem illegal to use the
money for this emergency.
C/M Hoffman said if the City depleted the surplus from
the previous year and the rates remained the same there
would be a surplus at the end of next year of 1 million
dollars. He asked why the rates could not be reduced by
$500,000.00 which should only create a surplus of
$500,000.00 next year.
C/M Rohr said the City should meet the shortfall of the
Budget by using the surplus monies in the Utilities Fund
and leave the rates as they are. He said if the 6%
Utility Tax is not imposed, Tamarac would be the only
City that was not accommodating their growth.
Mayor Abramowitz asked C/M Rohr if he wanted to continue
overcharging the residents and C/M Rohr said the
residents would not object to keeping their rates the
same; however, they are objecting to additional taxes.
C/M Hoffman said he was opposed to imposing the Utility
Tax and, if a transfer of monies could be used to make up
the shortfall and there was additional monies available,
he would like to reduce the Utility rates for the people
to be applicable to next year's surplus.
Mayor Abramowitz asked if this was done, would the
Utility rates have to be raised to make up a shortfall
next year and Mr. Burroughs said he could not answer this
at this time; however, this matter was not applicable to
the Budget Public Hearing. Mr. Burroughs said this
matter could be addressed before the second Budget Public
Hearing.
V/M Stelzer said if the Utility Tax was being eliminated,
the funds to make up the shortfall had to be addressed at
this time. He said the City should be concerned with
using the Interim Service Fees because the City of
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9/6/88 -- Special
Oakland Park was in trouble for doing this. He said if
the fees are going to be used, they would have to be paid
back.
C/M Hoffman said if the surplus property was sold, the
City would be able to use the money where they needed.
V/M Stelzer said the sale of the surplus property should
not be used for operating expenses. He said it was not
realistic to use Interim Service Fees to balance the
Budget.
Mr. Burroughs said he would prefer to use these funds
because it was cash; however, come judgement day, the
City would have to pay the money back.
C/M Hoffman said the City should take $500,000.00 from
the Utility Fund and $500,000.00 from the Interim Service
Fees Fund to balance the Budget and eliminate the
proposed 6% Utility Tax. He said from now until the
utility rates have to be structured, the City Council
could review the revenue to see if there is more money
than expected.
V/M Stelzer said by reviewing the past year he was sure
that there are more monies in surplus than what was being
presented. Mr. Burroughs said he would buy V/M Stelzer a
good steak dinner if, on February 1, 1989, there were
more monies than anticipated. .
* C/M Rohr MOVED to TRANSFER $500,000.00 from the Utilities West
* Fund to the General Fund, SECONDED by C/M Bender.
V/M Stelzer asked why this money was being transferred
and Mayor Abramowitz said this transfer was to abolish
the proposed 6% Utility Tax and assist in balancing the
Budget.
V/M Stelzer asked where the other $500,000.00 would come
from and Mayor Abramowitz said another Motion would be
made.
V/M Stelzer said he was not going to vote on one transfer
and discuss how to get the rest of the money. He said he
did not approve of using the funds from the Interim
Service Fees because it was illegal.
* C/M Bender MOVED to ABOLISH the proposed 6% Utility Tax,
* SECONDED by C/M Hoffman.
VOTE:
ALL VOTED AYE
* V/M Stelzer MOVED to TRANSFER money from the surplus of the
* Tamarac Utility West Fund to the General Fund of approximately
* 1 million dollars to eliminate the proposed 6% Utility Tax
* from the General Budget, SECONDED by C/M Rohr.
VOTE: Mayor Abramowitz - Nay
V/M Stelzer - Aye
C/M Bender - Nay
C/M Hoffman _ Nay
C/M Rohr - Nay
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9/6/88 - Special
* C/M Bender MOVED to TRANSFER $500,000.00 from the Interim
* Service Fees from the escrow account to be utilized in
* balancing the Budget.
C/M Hoffman said half of the money was in the account and
half of the money was anticipated.
* C/M Bender AMENDED his Motion to TRANSFER $250,000.00 presently
* in the Interim Service Fees Fund and approximately $250,000.00
* which is anticipated in the account to be utilized in balancing
* the Budget, SECONDED by C/M Hoffman.
Mr., 13u roughs suggested the Motion contain a total of
$532,020.00 which would balance out the proposed 6%
Utility Tax Fund.
* C;:; D:aader AMENDED his Motion to include this, C/M Hoffman
* AMENDED his Second.
V/M Stelzer said he objected to the Interim Service Fees
being transferred into the General Fund because there
were cases recently settled in the City of Oakland Park
where the Interim Service Fees had to be repaid to the
people they were collected from.
V/M Stelzer said Interim Service Fees have been discussed
for many years at the Broward League of Cities and now it
is known that the Interim Service Fees have to be
returned if they are not used for the projects they were
collected for. He said the City was taking a big chance
on using these fees because if the City was sued, the
Interim Fees would have to be paid back to the people
they were collected from and the fees would have been
spent for operating expenses. He said the City will be
paying double for using these fees. He said he would not
vote for using the Interim Service Fees as part of the
General Operating Budget.
Mayor_ Abramowitz asked where the Interim Service Fees
were spent in the past and Mr. Burroughs said in the
General Operating Budget of the City.
C/M Hoffman said hopefully, the surplus property would be
sold at which time the escrow account for the Interim
Service Fees could be repaid with that money.
VOTE: Mayor Abramowitz - Aye
w V/M Stelzer - Nay
C/M Bender - Aye
C/M Hoffman - Aye
C/M Rohr - Aye
V/M Stelzer said he would be discussing his objection to
this transfer at the Budget Public Hearing.
The following Vote is for a MOTION made by C/M Rohr to
TRANSFER $500,000.00 from the Tamarac Utilities West Fund
to the General Fund, SECONDED by C/M Bender.
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9/6/88 - Special
VOTE: Mayor Abramowitz _ Aye
V/M Stelzer - Nay
C/M Bender - Aye
C/M Hoffman - Aye
C/M Rohr - Aye
With no further business, Mayor Abramowitz ADJOURNED this
meeting at 5:30 P.M.
,`Or MAN ABRAMOWITZ, MAYOR
CA OL A. E AN S, CITY CLERK
"This public document was promulgated at a cost of $104.40 or ;2.90 per
-*tnfnrm the general public, public officers and employees of
recent opinions and considerations of the City Council of the City of
Tamarac."
CITY OF TAMARAC
APPROVED AT MEETING OF
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