HomeMy WebLinkAbout1351 - MINUTES - City Commission MINUTES
DANIA BEACH CITY COMMISSION
BUDGET WORKSHOP MEETING
AUGUST 7, 2002
1. CALL TO ORDER:
Mayor Chunn called the meeting to order at 10:30 A.M.
2. ROLL CALL:
Present:
Mayor: Robert H. Chunn, Jr.
Vice-Mayor: Pat Flury
Commissioners: John Bertino
C.K. McElyea
Bob Mikes
City Attorney: Tom Ansbro
City Manager: Ivan Pato
City Clerk: Charlene Johnson
3. Presentation and Discussion on the City Manager's Proposed FY 03 Operating Budget.
a) Report on revisions from 7/31/02 Budget Workshop
b) General Fund revenues
Assessed valuation/millage rate
Fire/EMS Non Ad Valorem Assessment
Airport -Macciano Lewis, Acting Finance Director, reported that $220,000 to $240,000 had been
budgeted for airport expansion expenses and that City Manager Pato was pursuing other funding
possibilities with Hollywood and Davie.
Legal Fees- Mr. Lewis advised that the firms of Weiss & Serota, et al and Ryan & Ryan, P.A. made
presentations on July 31 st explaining their individual billing procedures and costs associated with the
different legal services provided to the City. Mr. Lewis advised that staff is still working on lowering
legal costs even though contracts are in place with both firms. City Manager Pato clarified that
proposals have been presented by both firms for 02/03 fiscal year and that staff is working with both
attorneys to control current 01/02 legal expenditures.
Firefigher/Paramedic position — Mr. Lewis stated that the Firefighter/Paramedic position discussion on
July'31 cannot be hired as the City does not have the funding.
Refinancing Debt- Mr. Lewis agreed to provide figures associated with refinancing an estimated $3.5
million in debt by September 10.
Insurance for Meli Park Swimming Pool- Mr. Lewis expected to provide insurance costs associated with
the Meli Park Swimming Pool in the fiscal year 02/03 budget. Commissioner Mikes asked staff whether
or not the initial installation of the pool was going to cost more than the amount provided under the
Swim Central Grant. City Manager Pato advised that the City would have to cover the initial $300,000 in
costs up front, however, the City would be reimbursed at the end of the project from the Broward
County grant funds.
Millage: Mr. Lewis stated that the increase in millage on July 31st from 6.35 to 6.39 generated
$65,713.00 more in revenues.
2003 CAPITAL IMPROVEMENT PROGRAM (C.I.P.)- Mr. Lewis distributed a list of Capital
Improvement Projects for review by the City Commission and advised that $187,000 in debt service
would need to be budgeted to cover the C.I.P. for 2003.
Page 18 budget book- Mr. Lewis explained that Travel/Training was reduced down to -0- in order to
address the negative $50,000 in 01/02FY. Vice-Mayor Flury explained that the $98,000 budgeted for
Travel & Training in the 02/03FY is spread across the departments and is based on good rational.
Commissioner Bertino inquired as to how the amounts were distributed within each department. Mr.
Lewis advised that each department's' line item was decreased and that each department was in
agreement on the reduced amounts for Travel & Training. Mr. Lewis was unable to explain how the line
item was handled by previous Finance Director Keller for the 01/02 FY.
Pension Contribution- Mr. Lewis advised that the City's contribution for the General Employees'
Pension Fund this year is estimated at $140,000 and that the General Fund was increased by $97,000
to cover the cost and that other funds were also adjusted citywide. Mr. Lewis was of the opinion that
there might be an additional increase of $10,000 by September 4. Commissioner Mikes inquired as to
the date that establishes the balance requirement for the City's contribution match for the General
Employees' Pension Plan and Mr. Lewis thought it was September 4. Commissioner Bertino clarified
that the Police & Fire Pension Plan date is October 1 of the prior year.
City Manager Audit Expense- Mr. Lewis reported that the Audit Expense line item in the City Manager's
budget was reduced by $30,000.
Professional Services-Administrative Services Department — Mr. Lewis advised that Professional
Services was reduced by $35,000 and he reported that the Crossing Guards were paid from the
Salaries line item in 01/02FY. The increase of $7,000 in Professional Services in 02/03FY will cover
costs for out-sourcing the School Crossing Guards services.
Mary McDonald, Administrative Services Director, explained that when the original $40,000 was
budgeted, it was based on the assumption that a consulting firm would be hired to review the City's
insurance programs; the line item was reduced $35,000 based on her decision to advertise for
insurance programs without the assistance of a consulting firm. She advised that a $5,000 cushion
remains in the line item in the event a consultant is needed. Ms. McDonald expected the $57,000 to
cover the outsourcing of the Crossing Guards program and discussion followed on how the salaries for
Crossing Guards were dealt with last year.
Commissioner Bertino stressed the importance of any reallocations of funds coming back to the City
Commission for approval based on the City Commission having full authority over the budget. City
Manager Pato mentioned that there was some money saved last year when the Administrative Services
Director was not hired right away after Sheryl Chapman left.
Growth Management Department: Page 84 — Laurence Leeds, Growth Management Director,
apologized for not being able to attend the July 31 st budget workshop since he was on vacation. Mr.
Leeds advised that the department is requesting funding for two (2) FTE- A Code Officer and City
Planner. The Overtime line item was reduced down to $12,000 and he explained that overtime is
primarily used by Code Enforcement and Occupational Licensing in his department. Discussion
• followed on the requirement in the union contract to pay a minimum 3.0 hours call back for overtire for
Code Officers and Secretaries to attend Code Enforcement Board meetings.
Vice-Mayor Flury stressed the importance of controlling overtime as the City spends over $400,000 a
year citywide and she suggested that it might be smarter to hire some full time employees to reduce the
costs. Discussion followed on rescheduling the daily work hours for the Code employees on meeting
• days so that overtime would not be needed.
Commissioner Mikes requested that the City Manager provide specific cost for each employee position
so that the City Commission may understand how overtime is being handled. He disagreed with Vice-
Mayor Flury's suggestion on hiring more people based on the high cost of providing benefits.
Commissioner Bertino pointed out that costs can be saved by using contract services on many services
in the Growth Management Department.
City Manager Pato reported that Patty Varney, Finance Director, would begin employment on August
12th.
Growth Management Professional Services-Mr. Leeds advised that there are a number of changes in
the Growth Management law this year and responsibilities involved with the establishment of the CRA
that requires a full $60,000 to be budgeted in the Professional Services line item.
Contingency Fund: At this time, Commissioner Bertino brought up the subject of moving funds from the
Contingency Fund and stated that the reallocation of funds from one line item to another line item must
come before the City Commission for approval. Carol Craig, Accountant, advised that budgeted funds
may be moved from line item to line item within a department, however, any additional funding within a
department must be approved by the City Commission. Discussion followed on position approvals
having to come before the City Commission as well. Commissioner Mikes stressed the importance of
the City Commission being well notified by the City Manager when funds are moved from the
Contingency Fund and that he had heard that there were individual contracts made with certain
managers, which did not come before the City Commission for approval. Commissioner Mikes pointed
out that city manager's come and go usually within 3-5 years and that the elected body is governed by
the Charter and it is very important to have established policies and procedures in place for
management and administration to follow. Commissioner Bertino advised that policies transcend
people and that the elected officials have to answer to their constituents and that the budget is under
the control of the City Commission. Commissioner Mikes advised that there should be a certain line of
checks and balances about how funds are to be handled and who has what authority and
recommended that the City Attorney prepare a memo providing a clear understanding on spending
procedures by the City Manager. Vice-Mayor Flury disagreed with restricting the City Manager with the
general operating fund as she thought it would be a mistake for the City Commission to be managing
the City. However, she did agree with a policy being established for the Contingency Fund but did not
believe that Personnel and General Operating Fund expenses should be mixed and that the City
Commission should not micro manage daily operations. City Attorney Ansbro advised that there is a
Charter provision that addresses these issues and that the City Manager has an expenditure limit of
$7500 and that anything over the amount comes before the City Commission. Macciano Lewis advised
that the money that the City Manager uses could come from any line item from any department budget.
City Attorney Ansbro agreed to speak with other cities on financial standards and spending limitations.
Wage Settlement Adjustment- Mr. Lewis advised that the line item was reduced by $50,000 in the City
Manager's budget and that the Contingency Fund would be used in the event of a wage settlement in
02/03FY.
Pay & Classification Study: Commissioner Bertino advised that the results of the wage study that was
recently conducted was included in the budget without his receiving any backup material. He stressed
his concern with considering the Merit Pay Program based on his experience with the School Board. He
stated that the City workers appear to be doing a good job and that there are many negatives and
inadequacies with the Pay for Performance Program.
Vice-Mayor Flury disagreed with Commissioner Bertino as she felt the program could be successful
and that $100,000 is budgeted to cover the adjustments in salaries. She mentioned that another 4% is
provided to cover the union contract requirements and asked that staff provide an explanation of the full
. 12% budgeted for salaries in 02/03FY.
Mary McDonald, Administrative Services Director, advised that Longevity rises to 10% based on years
of employment and that under the new proposed plan Longevity would be included in the employee's
base salary. Vice-Mayor Flury clarified that the implementation of the adjustments to existing salaries is
estimated at $100,000, which is insignificant, however, she couldn't understand why there was a 11.5%
salary increase budgeted. Mr. Lewis advised that the 12% includes a 4% COLA for each employee,
costs for additional positions and 5% Merit increases. Commissioner Mikes mentioned that the City has
always had flexibility with staffing and he was concerned that the Merit Program might be problematic
and expose the City to litigation.
City Manager Pato expressed his dissatisfaction that he had to release information under the Public
Records Laws before the study was finalized as he thought a work in progress was exempt from the
Public Records Laws. Commissioner Mikes advised that the records were public records and he was
dissatisfied that the City Manager took steps to implement the program by adding the financial costs
into the budget before the City Commission was ever provided with any records. City Attorney Ansbro
clarified that under the Florida Public Records laws, the study materials became public record when
they were distributed by Mary McDonald to Ivan Pato and that there was no choice but to release the
records. Commissioner Mikes requested that a survey be conducted with other cities who use the Merit
System before the issue is discussed at the Workshop Meeting on August 14.
Commissioner Bertino stated that it is not unusual for him to speak with employees and citizens about
many issues based on his position as City Commissioner and that the Pay & Classification Study needs
further review.
• Vice-Mayor Flury requested that Mary McDonald provide the exact costs of the program at the
Workshop Meeting on August 14.
The City Commission generally agreed to hold a workshop meeting on August 14 at 7:00 p.m. so that
employees and the public could attend the meeting to discuss the Pay for Performance Program.
Budgeted Positions from 01/02FY- Mr. Lewis informed the City Commission that there were positions
approved last year that were never budgeted. As an example, the Program Technician position in the
Information Systems Division was approved as part of the budget, however, the funding for the position
was never provided. Mr. Lewis advised that there were also positions in Public Works and Parks &
Recreation that were approved that were never funded that were hired causing the accounts to run
negative. Commissioner Mikes and Commissioner Bertino could not understand how the positions
could be approved in the budget and not funded based on statutory requirements.
Leasing Computers- In regards to leasing computers compared to purchasing computers, Mr. Lewis
advised that the cost is really the same, however, he was of the opinion that leasing might save on
maintenance issues. Commissioner Bertino stated that he spoke with Vern Johnson, Information
Systems Manager, because he is the expert in computers for the City and that Mr. Johnson told him
that the work would not be reduced because the leasing company only installs the new hard drive, but,
would not be reconfiguring the machines or reloading numerous programs, which is very time
consuming. Commissioner Bertino stated that this was one of the reasons why he wanted the Program
Technician position to be filled. Commissioner Mikes wasn't sure that the Information System people
were being utilized effectively based on their expertise and thought that they may need assistance from
• maintenance personnel for jobs like computer rewiring. City Manager Pato advised that he spoke with
Vern Johnson about seeking outside services to do some of the computer work like web design
implementation and that a person could be hired for the webpage and to provide interactive City Hall
programs for a one-time $35,000 charge. Commissioner Bertino stressed the importance of finding the
right person who really knows how to do the specialized work when considering outsourcing and that a
virtual webpage requires extensive maintenance or the webpage would not be effective. Vice-Mayor
Flury pointed out that on page 42 of the budget $56,000 was budgeted in 01/02 and only $33,000 has
been spent year to date and that $110,000 is budgeted in 02/03.
Commissioner Bertino understood that leasing 1/3 of the City's computers was going to cost $25,000
the first year and that Contract Services does not include enough to cover update and maintenance of
the webpage. Ms. Temchuk advised that funding is provided in other line items like Computer Supplies
$20,000 and Computer Softwares $20,000. She advised that approximately $35,000 was budgeted for
the webpage, $8,000 for Servers the first year, and that maintenance costs of the webpage would be
addressed later.
Public Works Electricity- Mr. Lewis advised that the $180,000 was not reduced as requested by the City
Commission because Michael Sheridan, Public Works/Utilities Director, advised that the money was
needed to cover electricity for Street Lighting in the newly annexed area and at the Water Plant. Mr.
Sheridan assured the City Commission that he would work with FPL to utilize any savings programs
that might be available.
Phones- Commissioner Mikes reported that the City is charged $1 per minute for long distance service
on regular phones and that staff should look into changing the long distance provider to save on costs.
City Manager Pato agreed to look into it. Commissioner Bertino thought that the City saved with
Suncom services.
Lighting- Commissioner Bertino recommended purchasing highly efficient lighting fixtures at the parks.
Mr. Sheridan advised that FPL would be working with the City to provide programs to save costs for
upgrading lighting for many Public Works functions.
• Posta e- Mr. Lewis advised that no changes were made to the budgeted postage amount due to
promotional activities that are planned in the coming year and based on the recent increase in postage.
Commissioner Bertino asked the City Attorney on whether faxes and emails could be used as legal
notifications instead of incurring postage costs. City Attorney Ansbro advised that faxes and emails
could not be used for Code matters or general business notifications. Commissioner Bertino suggested
that staff send a letter to the League of Cities to see if email or fax could be used on notification of
legislative programs instead of using certified or registered mail.
Contingency Fund — Mr. Lewis advised that the impact to the General Fund on the follow up items
resulted in the Contingency Fund being reduced from $743,273 to $599,033 and that a 6.39 millage
rate generates an estimated $65,000 in revenue.
Fire Department Minimum Manning -Commissioner Bertino stressed the importance of providing proper
manning on the Fire Trucks and suggested implementing a process to begin the hiring. He pointed out
that when the City receives mutual aid from other cities, the other cities provide a minimum of 3 men on
each Fire Truck and that the City only provides 2 men on each truck, which is clearly not acceptable
under the Mutual. Aid Agreements.
Ken Land, Fire Chief, advised that it takes 4.5 people to cover 3 positions or 3 personnel and that the
department is only asking that one (1) person be hired this fiscal year and that additional personnel be
hired gradually in order to eventually reach the minimum Six (6) man level.
City Manager Pato advised that there are many priorities that have been discussed in regards to
economic development, City's Centennial Celebration, airport related issues and others that would be
funded under the Contingency Fund and that the City Commission must decide which items are priority.
The average cost for a Firefighter would be around $65,000. Vice-Mayor Flury thought that savings
could be found in the budget and with the BSO contract and disagreed with lowering the Contingency
Fund.
Chief Land advised that the Fire Assessment fee was increased last year from $81 to $87 in order to
provide a fund to pay the construction costs of building a fire station out west and that an estimated
$150,000 has been collected in the fund so far. Chief Land suggesting using the funds for capital
purchases in the Fire Department or retain the funds for western fire station. Commissioner Mikes
stressed the importance of controlling the Fire services costs and agreed that the extra funding from the
Fire Assessment fee could be utilized for other expenditures.
Chief Land pointed out that the charges per capita for two surrounding cities is $265 and $214, while
Dania Beach's per capita is $204 for fire services. Fire Chief Land stated that he would only need 6
more people to complete the Fire Department and recommended a gradual hiring plan to reduce the
financial impact on the City.
The City Commission generally agreed to phase in one (1) firefighter/paramedic in January 2003 by
funding '/2 from general operations and '/2 from the Fire Services Fund. Chief Land clarified that the
position would have to meet union requirements.
Commissioner Mikes stated that public safety costs are necessary and that the Fire Assessment fee
provides the ability to collect from some residents who are otherwise exempt from the non-ad valorem
taxes due to homestead exemption provisions.
Vice-Mayor Flury disagreed with raising the Fire Assessment fees and clarified that the additional
reserve from the fees could only be used for the Fire Department.
• Commissioner Bertino asked whether a $2.00 increase in the fire assessment fee would provide an
estimated $70,000 to cover the cost of adding one additional firefighter/paramedic and that another"
firefighter/paramedic could be added at the middle to end of the 02-03FY.
Discussion followed on the need to contact Government Services Group to review the methodology
used to calculate the Fire Assessment fee in order to determine if a more graduated scale could be
provided for the commercial businesses.
1:15 p.m., The meeting adjourned for lunch.
1:45 p.m.- The meeting convened.
Vice-Mayor Flury clarified that the increase in the Fire Assessment Fees from last year ($81 to $87)
would provide enough revenue to fund 'h of the costs to hire one firefighter/paramedic and that the
funding for the other 'h would be obtained in the Fire budget as determined by the City Manager and
Fire Chief. Mayor Chunn and Commissioner McElyea agreed with Vice-Mayor Flury's consensus.
Commissioner Bertino stated his desire to increase the Fire Assessment fees by $2.00 to fund two
firefighter positions. Commissioner Mikes asked Mr. Lewis to obtain figures on how much revenue
would be generated on a $2.00 increase on Fire Assessment fees.
GENERAL FUND REVENUES:
Mr. Lewis provided an overview of the. City's General Fund Revenues as outlined on Page 6 of the
handout (see attached).
• c) Capital Improvement Projects
Mr. Lewis presented an overview of the Capital Improvement Program for 02/03 as outlined on Page 9
of the handout.
Mr. Lewis advised that the debt service for FY 03 is projected at $187,500 @4.5% interest rate with a
• lump sum payment starting in January FY 03 instead of a Line of Credit. Commissioner Bertino asked
Mr. Lewis to research the difference of borrowing the money on a "Draw Down" basis.
CIP PROGRAMS AND PARKS IMPROVEMENTS:
Vice-Mayor Flury pointed out that the $448,000 credit showing on the Capital Improvement Program for
02/03 FY from the 01/02FY CIP should not be included. She asked for explanation on the park
improvements that were covered in 01/02FY from the $448,000 and the $300,000 (total $748,000).
Randy Wilkinson, Parks & Recreation Director, advised that of the $748,000 in 01/02 included the City's
match of$300,000 for the FRDAP grants ($150,000 for Frost Park and $150,000 for CW Thomas Park)
and that it was supposed to cover renovations of the tennis and basketball courts, roller hockey rink
lights, resurfacing of the fields at Frost Park and CW Thomas. The $448,000 was allocated to cover
construction of two park buildings, however, Mr. Wilkinson advised that $448,000 was not enough to
cover construction costs for one building let alone two buildings. Vice-Mayor Flury stated that $448,000
should have been enough to cover one 4,000 square foot building at $100 per square foot. Vice-Mayor
Flury was of the opinion that $448,000 for the FPL settlement was paid out of the C.I.P. for 01/02FY
that was supposed to be sued for park improvements. Mr. Lewis was not sure how previous Finance
Director Keller allocated the funds to pay for the FPL settlement.
Commissioner Bertino clarified that one of the funding allocations from the $3 million loan was to cover
construction of a recreation building at one of the parks. Since the General Fund is a recipient of FPL
revenues, the City is obligated to pay back $443,156 to the 01/02FY CIP for future capital
improvements at the parks. He mentioned that portions of the funds could be paid back in fiscal years
02/03 and 03/04.
Vice-Mayor Flury stated her opinion that City Manager Pato should have come back before the City
Commission before taking money from the parks improvements CIP. She asked for explanation on
what park improvements were being covered by the current advertised RFP/Bid for Frost Park/Meli
Park Aquatic Center. Bonnie Temchuk explained that $150,000 in matching funds provided by the City
and $150,000 from the FRDAP grant for a total $300,000 would cover the courts and dugout
renovations at Frost Park. The Swim Central Grant would pay for the Meli Park Aquatic Center. Vice-
Mayor Flury stated that the CIP for 02/03FY shows $800,000 for Frost and $767,000 for CW Thomas to
build recreation buildings. She could not understand how the construction costs would be $200 a
square foot. Mr. Wilkinson advised that he obtained the cost estimates from the Building Department
for his 01/02 FY CIP program and that the figures have since been reduced to $100 to $125 per square
foot. Vice-Mayor Flury stressed her dissatisfaction that the correct figures were not included in the CIP
for 02/03. City Manager Pato requested an opportunity to allow the new Finance Director, Patty Varney,
to review the figures for the CIP's for both 01/02 and 02/03 fiscal years and bring back a full
explanation. Vice-Mayor Flury stated that the 02 and 03 CIP cost estimates should must be separated.
Commissioner Bertino pointed out that the combined loan amounts for both the 02 and 03 FY CIP
programs is $5,126,200 and that the debt service budgeted in Fiscal Year 03 should decrease based
on the reduction in the per square footage from $200 to $100 for the recreation building. Commissioner
Bertino clarified that $300,000 would be spent at each Frost Park and CW Thomas Park, which
excludes the funding amount for new recreation buildings. In addition, renovation of the concession
stand is being considered at Meli Park. He suggested that the new recreation buildings include mobile
interior walls so that the rooms could be changed for different recreational events and that an office be
provided at each park for the park managers. Commissioner Bertino suggested the idea of contacting
an architect from another city who may have completed plans for design of a recreation building that
• could be used by the City by simply obtaining sealed architectural plans in order to save on
architectural costs. Commissioner Bertino stressed the importance of making improvements at the
beach and questioned whether the $225,000 budgeted would cover the replacement of one beach
bathroom building. Mr. Wilkinson advised that the main lifeguard building was in good shape and that
there was a need for an additional first aid stand to be built closer to the pier. Commissioner Bertino
thought that an addition should be added onto the recreation building at Meli in Fiscal Year 03. Vice-
Mayor Flury agreed that the addition at Meli should be pushed to Fiscal Year 04 as there would be
enough going on in 03 with the pool projects and park improvements.
Bonnie Temchuk, Grants Coordinator, mentioned that many of the park and beach improvements were
included in the CIP to show the significance of the projects as a way to obtain additional points towards
receiving grant funding opportunities. Ms. Temchuk advised that a new building is being considered at
Frost park and that renovation and an addition is being projected for CW Thomas Park recreation
building. Ms. Temchuk advised that the structure is sound and that expansion and renovation of the
interior would provide space for the Center for Success, office for a Recreational Aide, After School
Program along with other projects. Vice-Mayor Flury could not understand a $750,000 renovation and
thought the recreation building should be replaced at CW Thomas Park. Ms. Temchuk advised that
there are more grant opportunities with renovation projects opposed to new construction.
Commissioner Bertino advised that South Broward High School is a Marine Magnate School and that
there may be potential for the City to construct a youth oriented classroom at the beach with FAU. He
suggested that Ms. Temchuk look into grants opportunities for purchasing the two lots that the City tried
to obtain a few years ago through FCT (Florida Communities Trust) grant funding as the purchase did
not go through because the owners wanted more than the appraised value of the properties.
Commissioner Bertino asked what the status was on a facility for roller hockey and a band shell at the
beach area. Mr. Wilkinson advised that this has not been addressed because beach renourishment is
the primary concern. Vice-Mayor Flury mentioned that $75,000 has been added for beach
renourishment for Fiscal Year 03 and requested an explanation on whether the amount was in addition
to the $48,000 budgeted in 01/02FY. Vice-Mayor Flury asked that Mr. Wilkinson review the amounts
• with Captain Glenn Morris in regards to the beach renourishment program.
d) Other Funds Assessments/Other Funds Appropriations
Water
Sewer
Stormwater
Mr. Lewis advised that Stormwater Assessment is projected to be $356,938, a 27.8 percent increase
over last year's budget amount and the year to date Stormwater Assessment figure is $279,000. Mr.
Lewis expected a large sum for Stormwater Assessments to be received in December and clarified that
his projections were based on 7 months figures in the current year.
Water Fund- The budget includes the addition of (1) full time Treatment Operator Trainee at an
estimated $41,000 and the budget does not include recent adjustments to pension contribution
estimated at $23,240 additional costs.
Michael Sheridan, Public Works/Utilities Director, explained requirements for a Treatment Operator
Trainee. Vice-Mayor Flury thought $41,000 was too high for a trainee position that should be starting at
around $12.00 per hour and not at mid-range. No one was able to confirm if the $41,000 included
benefits.
Mr. Lewis mentioned that the Water Fund Budget includes a proposal to increase water rates by 7%
and that projected revenues are going to be down because $191,000 is not being paid back from the
General Fund.
• Commissioner Bertino was opposed to not paying the Water Fund back the $191,000 borrowed by the
General Fund last year,and disagreed with imposing a 7% water rate increase against those residents
from the original portion of the City who receive water as he clarified that other sections receive
Broward County water. Mr. Lewis thought the 7% increase generate roughly $191,000.
• Carol Craig, Accountant, mentioned that Mr. Keller had brought a resolution to the City Commission
providing for non-payment of the $191,000 by the General Fund to the Water Fund as directed by the
Auditing firm of Sean Davis &Associates.
Vice-Mayor Flury requested that Ms. Craig find out the total amount of retained earnings. Vice-Mayor
Flury thought there were still opportunities to trim the budget when comparing year-to-date actual
amounts to proposed budget figures and she stated her lack of support for a 7% increase in water
rates.
Commissioner Bertino continued to point out that the $191,000 should be paid back to the Water Fund
from the General Fund. He mentioned that a smaller portion of the City loaned the money to the
General Fund, which benefited the entire City. It wouldn't be fair to impose an increase in water rates
on this small portion of the City who loaned the money in the first place to make up for the shortfall.
Vice-Mayor Flury recommended taking the loan money out of Retained Earnings and then determine
whether or not water rates should be increased but not to base the rate increase on $191,000 loan.
Commissioner Bertino advised that the interest on the retained earnings is an income to the Water
Fund and that the interest earnings should not be taken from the fund as this would also cause a rate
increase.
Retained Earnings:
As of June, Vice-Mayor Flury advised that there is a total of $1.025 million in retained earnings and
$660,000 in investments. Vice-Mayor Flury stated that the auditors have directed staff on how to
proceed and that the City Commission should speak with Sean Davis on the matter. Commissioner
Bertino suggested getting a letter from Sean Davis stating that it was okay for the City to borrow from
an Enterprise Fund and then not pay the fund back and then cause that enterprise fund to raise its
rates.
Vice-Mayor Flury agreed with a moderate Water rate increase.
SEWER:
Mr. Lewis advised that the Sewer Fund budget includes an 8% rate increase.
Commissioner Bertino stated that $750,000 is owed and that the General Fund has to pay the money
back at some point.
The City Commission generally agreed to have Patty Varney, Finance Director, speak with Sean Davis
on the loan issues and bring back a recommendation to the City Commission.
STORMWATER:
Mr. Lewis advised that only $62,304 of retained earnings will be used to offset projected expenses for
FY 03.
Michael Sheridan, Public Works/Utilities Director, advised that he would be meeting with
representatives from the City of Hollywood to certify the calibration of the sewer meter and that the
study with Fred Bloetcher would be involving infiltration issues. Commissioner Bertino asked whether a
camera was going to be inserted into the major infiltrations on the southeast side where the soil is
muck. Mr. Sheridan advised that he is trying to use Hollywood's video camera system because it is very
expensive to have a commercial entity video the lines. In regards to the Large User Agreement,
Pembroke Pines is trying to back out of the deal and is trying to share the cost with the other large
users and that negotiations on still ongoing. Commissioner Bertino mentioned that capacity would be
reduced if Pembroke Pines backed out of the agreement, which would circumvent the need for future
expansion and the dollars on City for the expansion. Mr. Sheridan advised that this is all being
negotiated at this time.
• Mr. Lewis,advised that there are no issues of concern with Stormwater and that $49,000 is included in
the budget for a first-year lease of a Vac-Con Truck, which would be used to service the newly annexed
area. He mentioned that $5,460 has been provided to cover adjustments to pension contributions.
Mr. Sheridan advised that the current Vac-Con Truck is used 85% to 90%just in the original portions of
the City, which is why the lease purchase is being requested. Commissioner McElyea recommended a
closed end lease after 3 years. Mr. Sheridan agreed to check with Leo Williams on the lease terms.
Vice-Mayor Flury commended Macciano Lewis for filling in as Acting Finance Director and for
presenting the proposed budget.
4. Adournment.
This meeting adjourned at 3:10 p.m.
OBERT H. CHUNN, JR.
AYOR
ATTEST-
CHARLENE J SON
CITY CLERK
APPROVED: September 10, 2002
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