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HomeMy WebLinkAbout1356 - MINUTES - City Commission MINUTES DANIA BEACH CITY COMMISSION SPECIAL MEETING SEPTEMBER 10, 2002 1. CALL TO ORDER: Mayor Chunn called the meeting to order at 6:05 p.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. PROPOSED MILLAGE AND BUDGET FY 2002/2003: 3.1 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AS REQUIRED BY THE CITY CHARTER AND SECTION 200.065, FLORIDA STATUTES, APPROVING THE PROPOSED MILLAGE RATE NECESSARY TO BE LEVIED FOR THE FISCAL YEAR 2002-03; AND PROVIDING FOR A PUBLIC HEARING WHEN OBJECTION THERETO WILL BE HEARD AND QUESTIONS CONCERNING SAME WILL BE ANSWERED; AND REPEALING ALL RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. City Manager Pato presented the proposed budget setting a 6.39 millage rate for the fiscal year 2002/2003. Macciano Lewis, Budget Analyst, advised that resolutions setting the tentative millage and budget are being presented for adoption tonight. The millage rate must be set prior to entertaining discussion on the budget from the public. Mr. Lewis suggested that the City Commission consider setting the final budget hearing on September 24 prior to the regular meeting instead of the scheduled date of September 23 at 7:00 p.m. City Manager Pato did not believe much time would be needed to finalize the budget on the 24th. The City Commission generally agreed to address the final budget on the 20 at 5:30 p.m. Mr. Lewis advised that the adoption of the tentative budget would allow for a summary budget and the date and time of the final budget to be advertised. At the regular commission meeting tonight, Resolutions are proposed for adoption to set the final rates for Fire Rescue, Solid Waste and Stormwater Assessment. Mr. Lewis stated that the total proposed Fiscal Year 02/03 budget is $32.5 million, which is a 10.5% increase over last year's (FY 01/02) $29.4 million budget. The budget figures MINUTES 1 SEPTEMBER 10, 2002 SPECIAL MEETING do not include the grant fund of $870,000 and Capital Improvement Program of $1.7 million. A power point presentation was presented on the allocation of funding within each department for the General Fund, and Water, Sewer and Stormwater Enterprise Funds. Patty Varney, Finance Director, advised that based on discussions from the City Commission at the August 7th Budget Workshop meeting, she has balanced the budget with a 6.39 millage rate and the following adjustments were presented: ✓ Additional $20,000 to cover Pension Plan contributions ✓ One (1) Firefighter position to be hired six months into FY 02/03 (50% of the position is being funded from Fire Rescue Assessment revenues provided from the $6 increase ($81 to $87) last year and the other 50% from Fire Department operating funds). ✓ Transfer from the General Fund of $106,000 to the Sewer and $106,000 to the Water Fund to pay a portion of the FY 01/02 loan provided to the General Fund and borrowed from the Water and Sewer Funds. Director Varney advised that the $191,000 figure was for the 01/02 Fiscal Year payment. Director Varney stated her plan to present a comprehensive Capital Improvement Program later in the year. She agreed to include a review of the City's cash flow and a five-year projection of City's revenues and expenditures in order to establish a funding schedule for paying back the $750,000 loan to the General Fund from the Water and Sewer Funds. ✓ Salary Adjustments from Classification and Pay Study- ($123,000) -Director Varney advised that the figure includes $100,000 for salary adjustments from the Pay and Classification Study and $23,000 for fringe benefits (FICA, City pension contribution of employee share of the 16.08% pension based on salary). . Commissioner Bertino stated his understanding that the City Commission, at its August 14 workshop, agreed that no action would be taken on implementing anything from the Pay and Classification Study and that staff would use the existing employee pay program as negotiated with the union contracts, Step increases and longevity benefits, etc. for the 02/03 Fiscal Year. City Manager Pato explained that he wanted the City Commission to be aware of the salary adjustment figure and that he was planning to implement the Pay for Performance Program later in the year. He agreed that additional communications are needed from the Civil Service Board and unions on the Pay for Performance Program and he suggested retaining the $123,000 in the Contingency Fund. Commissioner Mikes thought the important thing would be to transfer the amount into a reserve fund that would be used for employee uses at the end of the year. He suggested removing the $123,000 from the General Fund as there are costs to consider that are associated with health and workers compensation insurance programs. City Manager Pato and Vice-Mayor Flury supported Commissioner Mikes' comments. Vice-Mayor Flury thought that the August 14 workshop directed Mary McDonald, Administrative Services Director, to conduct educational programs for the employees and that the Pay for Performance Program would be implemented later on in the year. Commissioner Bertino understood that the August 14 workshop was clear that the next year would be used as an educational period and that the Pay for Performance Program would be considered for implementation in 03/04 Fiscal Year. He expressed his desire to vote against the budget. Commissioner McElyea supported Commissioner Bertino's comments. . Director Varney advised that in the middle of the year she would be asking for appropriations from the MINUTES 2 SEPTEMBER 10, 2002 SPECIAL MEETING • Contingency Fund to cover costs associated with implementation of GASB 34 on infrastructure and fixed assets recording. This will require an appraisal valuation of the City's roads, parks, lighting and other capital projects. Although, the City has five years to implement this portion of the GASB 34, this infrastructure valuation would offset some the liability of loans that the City has issued and that it will not impact as much to the City's fund balance. Director Varney projected the study to cost around $45,000 based upon information from an RFP with Lauderdale Lakes and based on the City's size. Director Varney advised that the cost is not included in the budget at this time, however, the budget does include funding covering the debt service for an 02/03 CIP Loan as discussed on September 5tn Mayor Chunn stated that in accordance with Florida Statute 200.065 (2) (e), the first substantive issue discussed shall be the percentage increase in millage over the rolled-back rate necessary to fund the FY 2003 budget. For fiscal year 2003, City of Dania Beach is considering to levy a millage rate cf 6.39 which is 13.28% increase over the rolled-back rate of 5.6407 to provide the level of service to its citizens. The Commission will discuss first Only on the millage rate and then open to public for comments. Commissioner Mikes recommended approving the millage rate of 6.39 based on the costs associated with the CRA, proposed Capital Improvements and airport legal costs. Commissioner Mikes mentioned that the City was able to gain an increase in revenues from the 2001 annexation in spite of the number of residents that receive the double homestead exemptions and the cost impact of providing public safety to all areas of the City. He thought the City was lean on its millage rates over the past years and supported an increase to a 6.39 millage rate. Vice-Mayor Flury supported the 6.39 millage and was pleased that the balance budget would provide upgrades to the parks and the downtown from the CRA. • Mayor Chunn opened the public hearing. Mike Marshal, 1134 SE 6 Court, stated that he is a non-senior or mobile home owner and requested clarification from Commissioner Mikes on why the City would annex areas that would not be providing the City revenues. Mr. Marshal requested clarification on why the City would have to increase the millage rate when property values have grown, which has escalated faster than increases in operating expenses. Commissioner Mikes advised that the City had to try to obtain the 2001 annexation area in order to increase the City's revenues, which was also the last chance for the City to expand in size. He pointed out that some areas gain additional tax exemptions that reduce revenue to the City and that the higher tax revenues come from industrial and commercial areas. Commissioner Mikes advised that the millage rate is not applied to the true assessed value of residential homes. Commissioner McElyea advised that the Griffin and Highland Mobile Home Parks are being developed into a Condominium development that will increase tax revenues to the City and that property values are increasing significantly throughout the City. Hearing no further comments, Mayor Chunn closed the public hearing. A motion was made by Commission Mikes, seconded by Vice-Mayor Flury, to adopt the Resolution approving the 6.39 millage rate. The motion failed on the following 2/3 roll call vote: Commissioner Bertino-no Vice-Mayor Flury-yes Commissioner McElyea-no Mayor Chunn-no • Commissioner Mikes-yes MINUTES 3 SEPTEMBER 10, 2002 SPECIAL MEETING • Vice-Mayor Flury stressed the importance of those Commissioners who are voting against the 6.39 millage to provide direction to staff on which items to remove in the budget in order to reduce the millage rate. Mayor Chunn expressed a desire to maintain the existing 6.1 millage rate. Discussion followed on whether or not to remove the proposed FTE for the Fire Department. Mr. Lewis advised that the firefighter cost amounts to $30,000 for the year and that $124,000 is the amount budgeted for the Pay and Classification salary adjustments. City Attorney Ansbro advised that the City Commission must take action on the proposed millage rate tonight and that staff could evaluate the possibility of some changes by the Final Budget meeting. City Attorney Ansbro read the title of the Resolution. A motion was made by Commissioner Mikes, seconded by Vice-Mayor Flury, to adopt the Resolution approving the tentative 6.39 millage rate with the, understanding that staff would review possible reductions in the budget for the Final Budget Hearing. The motion passed on the following 3/2 roll call vote: Commissioner Bertino-no Vice-Mayor Flury-yes Commissioner McElyea-no Mayor Chunn-yes Commissioner Mikes-yes City Manager Pato requested direction from the City Commission on the items that they wish to remove from the budget. • Vice-Mayor Flury asked Director Varney to calculate the dollars that would be taken from the Operating Fund if the Pay for Performance Program was removed. Director Varney indicated that if pay for performance program was not adopted, under the union contract, the City will have to pay for Step increases and longevity pay. 3.2 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AS REQUIRED BY THE CITY CHARTER AND SECTION 200.065, FLORIDA STATUTES, APPROVING ITS TENTATIVE ANNUAL BUDGET FOR THE FISCAL YEAR 2002-03; AND PROVIDING FOR A PUBLIC HEARING WHEN OBJECTIONS THERETO WILL BE HEARD AND QUESTIONS CONCERNING SAME WILL BE ANSWERED; AND REPEALING ALL RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Chunn stated that in accordance with Florida Statute and the City Charter, the City Manager has submitted a proposed General Fund Budget of $26,298,945.00, a Grant Fund Budget of $870,234.00, Stormwater Budget of $611,306.00, a Capital Projects Fund budget of $1,714,065.00, a Water Enterprise Fund of $2,569,817 and Sewer Enterprise Fund Budget of $3,026,148.00. Mayor Chunn opened discussion to the City Commission before opening the public hearing. Commissioner Mikes suggested that controls for public safety and pension costs need to be brought under control in the Fire Department. Commissioner Bertino stated that the City's manning level in the Fire Department is lower than the other cities and that the Fire Department requested six entry-level personnel this year and that only one • FTE was proposed. He was of the opinion that there wouldn't be as many high ranking and highly skilled personnel at the top of the department if there had been consistent turn over of lower/entry level MINUTES 4 SEPTEMBER 10, 2002 SPECIAL MEETING positions. He stated that many Fire Department officers have continued their education and long term • employment with the City . Commissioner McElyea clarified that the Fire Department is top-heavy because its maintained very highly skilled personnel who have long-term employment, which has increased longevity cost benefits. However, the City is fortunate to have many highly skilled employees in the Fire Department who protect public safety. Commissioner Mikes suggested that the City consider hiring a consultant from the outside to reconstruct the payment plan and increase the manning in the Fire Department instead of the Step System and automatic promotion program. Mayor Chunn opened the public hearing. Hearing no one speak in favor or opposition, Mayor Chunn closed the public hearing. City Attorney Ansbro read the title of the Resolution approving the Tentative Budget. A motion was made by Vice-Mayor Flury, seconded by Commissioner Mikes, to adopt the Resolution approving the tentative Annual Budget. The motion passed on the following 3/2 roll call vote: Commissioner Bertino-no Vice-Mayor Flury-yes Commissioner McElyea-no Mayor Chunn-yes Commissioner Mikes-yes A motion was made by Commissioner Bertino and seconded to adjourn. The motion passed on a 5/0 • roll call vote. The meeting adjourned at 6:50 p.m. ROBERT H. CHUNN, JR. AYOR ES CHARLENE J NSON CITY CLERK APPROVED: September 24, 2002 • MINUTES 5 SEPTEMBER 10, 2002 SPECIAL MEETING