HomeMy WebLinkAbout1359 - MINUTES - City Commission MINUTES
DANIA BEACH CITY COMMISSION
SPECIAL MEETING
SEPTEMBER 23, 2002
1. CALL TO ORDER
Mayor Chunn called the meeting to order at 7:00 p.m.
2. ROLL CALL:
Present:
Mayor: Robert H. Chunn, Jr.
Vice-Mayor: Pat Flury
Commissioners: John Bertino
C.K. McElyea
Bob Mikes (arrived at 7:07 p.m.)
City Attorney: Tom Ansbro
City Manager: Ivan Pato
City Clerk: Charlene Johnson
3. PUBLIC HEARINGS:
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 MILLAGE RATE NECESSARY
TO BE LEVIED FOR THE FISCAL YEAR 2002-03 AND REPEALING ALL
RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT
HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE.
PRESENTATION OF BUDGET BY FINANCE DIRECTOR
Patty Varney, Finance Director, explained that the additional revenue generated
between 6.39 millage and 6.1 millage rate is $1,339,545 in revenues, however, some of
the required funding for increase of FY 2003 expenses is $1,829,751. Director Varney
pointed out that, therefore, it is difficult to reduce the millage to 6.1 based on the
following expenditures increase:
BSO Contract (9% increase) - $577,000
Pension Contribution Increases -$303,000
Health Insurance -$182,000
COLA Step/Longevity-$628,330 (includes new additional staff)
Workers Compensation- $107,000
Director Varney stated that the Contingency Fund has a budget amount of $614,138
which is higher than the amount indicated in the first public hearing. This is due to a
savings on Workers Compensation Insurance premium of$60,000 and most of the costs
associated with the Pay Classification Plan. The propose use of the contingency fund by
management are as follows:
MINUTES 1 SEPTEMBER 23, 2002
SPECIAL MEETING
1% (in accordance with GFOA) _ $ 262,000
GSBE 34 Study 45,000
Comprehensive Plan Revision 25,000
Economic Incentives $ 50,000
Pay Classification $ 31,828
Airport Related $ 130,000
True Contingency $ 69,829
Street Closures are not funded
$614,138
Commissioner Bertino pointed out that White & Case, Special Counsel for Airport Legal
matters, presented a letter outlining monthly costs of $20,000 to $25,000 without
litigation costs. Commissioner Bertino recommended allocating $300,000 for airport
expansion related costs.
City Manager Pato explained that the costs presented are based on a lower millage rate
of 6.37.
Commissioner Mikes stressed the importance of taking advantage of low interest rates
to obtain loans for the Capital Improvement Projects that are proposed based on the low
debt service that would be needed each year. He recommended approving the millage
rate of 6.39, which is not as high as most Broward County cities.
Commissioner McElyea recommended reducing the millage at 6.1 and that staff has not
done a good enough job to find reductions in the budget.
Vice-Mayor Flury pointed out that the City Commission spent several hours reducing the
costs on the budget and that older cities need more attention in the areas of
infrastructure and park improvements. Vice-Mayor Flury supported a 6.39 millage.
Mayor Chunn supported a 6.37 millage.
In response to Commissioner Bertino, Director Varney explained that the one (1)
Firefighter ($30,000)would be hired in mid-year and that '/z of the position is funded from
Fire Assessment revenues from the $6.00 increase last year ($81.00 to $87.00) and %
from Fire Operating funds. Commissioner Bertino recommended moving the 1/3 funding
for the Pay Classification Program towards hiring the Firefighter full-time.
Vice-Mayor Flury thought that staff was asked to conduct educational programs for the
Pay for Performance over the next year. Discussion followed on whether or not the City
Commission decided against implementation in Fiscal Year 02/03. City Manager Pato
thought that he did not recall the issue being killed and that staff was supposed to
conduct educational programs and work with the Union and Civil Service Board and
bring the Pay for Performance back. City Manager Pato advised that $31,000 was added
for the possibility of implementing the Pay for Performance Program some time this year.
Vice-Mayor Flury suggested that '/2 of the funding $15,000 of the additional six months
for a full-time firefighter position should be derived from the Fire assessment fees.
MINUTES 2 SEPTEMBER 23, 2002
SPECIAL MEETING
® 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, a Tentative
millage rate of 6.39 which is 13.28% increase over the rolled-back rate of 5.6407 to
provide the level of service to its citizens was adopted on September 10, 2002. The
Commission will discuss first on the millage rate and then open to public for comments.
Mayor Chunn opened the Public hearing. Hearing no one speak in favor or opposition,
Mayor Chunn closed the Public Hearing and entertained a motion to set the Final Millage
Rate.
City Attorney Ansbro read the title of the Resolution for a 6.37 millage rate.
A motion was made by Commissioner Mikes to adopt the Resolution approving a 6.37
millage rate. The motion died for lack of a second.
Commissioner Bertino presented his suggested budget adjustments.
City Attorney Ansbro read the amended Resolution for a 6.39 millage rate.
A motion was made by Commissioner Bertino, seconded by Commissioner Mikes, to
adopt the Resolution with a 6.39 millage rate subject to the following budget
® adjustments:
✓ Transfer the $31,228 Pay Classification amount from the Contingency Fund to
the Fire Department budget to cover costs to hire one (1) Firefighter position full-
time with the understanding that the remainder amount would remain in the
Contingency Fund. In addition to the funding presented covering the position '/2
of the year, an additional $15,000 from Fire Assessment Fees would be used to
cover '/z of the additional 6 months coverage for the position.
✓ Increase Airport Expansion Related items to $300,000,
✓ 1% Contingency Fund of $166,000 would be set aside for additional airport
litigation, if necessary.
The motion passed on the following 3/2 roll call vote:
Commissioner Bertino-yes Vice-Mayor Flury-yes
Commissioner McElyea-no Mayor Chunn-no
Commissioner Mikes-yes
3.2 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AS
REQUIRED BY THE CITY CHARTER AND SECTION 200.065,
FLORIDA STATUTES, FOR THE FINAL APPROVAL AND ADOPTION
OF THE ANNUAL BUDGET OF THE CITY OF DANIA BEACH,
FLORIDA, FOR THE FISCAL YEAR 2002-03; AND PROVIDING THAT
ALL RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT
HEREWITH BE REPEALED TO THE EXTENT OF SUCH CONFLICT;
® AND PROVIDING FOR AN EFFECTIVE DATE.
MINUTES 3 SEPTEMBER 23, 2002
SPECIAL MEETING
® Mayor Chunn stated that in accordance with Florida Statute and the City Charter, on
September 10" public hearing, the City has adopted a tentative 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 and Debt Service
Fund Budget of $200,000. Mayor Chunn opened discussion to the City Commission
before opening the public hearing.
Commissioner Bertino asked whether there was going to be a water and sewer rate
increase. Director Varney stated that a 5% rate increase has been presented instead of
the proposed 7% rate increase for the Water and Sewer Funds. In addition, $106,000
has been transferred from the General Fund to the Water Fund and $106,000 was
transferred from the General Fund to the Sewer Fund for Fiscal Year 02/03 and that
$191,000 was transferred to both funds in Fiscal Year 01/02. Director Varney compared
the City's Water and Sewer rates with the County's rates and the County's rates ranger
13.2% to 40% higher than the City's rates. The 5% rate increase will generate $101,000
in the Water Fund and $118,000 in the Sewer Fund to break even and that there may be
some cost savings within the funds based on removing the Pay & Performance Program.
Mayor Chunn opened the Public hearing. Hearing no one speak in favor or opposition,
Mayor Chunn closed the Public Hearing and entertained a motion from the City
Commission.
City Attorney Ansbro read the title of the Final Budget Resolution.
® Director Varney, Finance Director, reported that with a 6.39 millage, the General Fund
budget is $26,298,945 and presented information on Retained Earnings and
depreciation expenses. Director Varney mentioned her desire to purchase a bar code
system to deal with fixed assets. Vice-Mayor Flury recommended that staff ensure that a
good asset management program is utilized so that depreciation is adjusted correctly.
Director Varney did not recommend a reduction in the sewer rates due to the projected
retained earning.
A motion was made by Commissioner Mikes, seconded by Commissioner Bertino, to
adopt the Resolution approving the Final Budget. The motion passed on the following
3/2 roll call vote:
Commissioner Bertino-yes Vice-Mayor Flury-yes
Commissioner McElyea-no Mayor Chunn-no
Commissioner Mikes-yes
Vice-Mayor Flury asked staff to provide a rate comparison with all Broward County cities
to the City Commission some time during the year if possible.
3.3 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, SETTING
MONTHLY CHARGES FOR WATER SERVICES FOR RESIDENTIAL
AND COMMERCIAL USERS; PROVIDING THAT ALL RESOLUTIONS
® OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH BE
MINUTES 4 SEPTEMBER 23, 2002
SPECIAL MEETING
REPEALED TO THE EXTENT OF SUCH CONFLICT; AND PROVIDING
FOR AN EFFECTIVE DATE.
Mayor Chunn opened the Public hearing. Hearing no one speak in favor or opposition,
Mayor Chunn closed the Public Hearing.
A motion was made by Mayor Chunn, after passing the gavel, seconded by
Commissioner Bertino, to adopt the Resolution. The motion passed on the following 4/1
roll call vote:
Commissioner Bertino-yes Vice-Mayor Flury-yes
Commissioner McElyea-no Mayor Chunn-yes
Commissioner Mikes-yes
3.4 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, SETTING
MONTHLY CHARGES FOR SEWER SERVICES FOR RESIDENTIAL
AND COMMERCIAL USERS; PROVIDING THAT ALL RESOLUTIONS
OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH BE
REPEALED TO THE EXTENT OF SUCH CONFLICT; FURTHER,
PROVIDING FOR AN EFFECTIVE DATE.
Mayor Chunn opened the Public hearing. Hearing no one speak in favor or opposition,
Mayor Chunn closed the Public Hearing.
A motion was made by Commissioner Bertino, seconded by Commissioner Mikes, to
adopt the Resolution. The motion passed on the following 4/1 roll call vote:
Commissioner Bertino-yes Vice-Mayor Flury-yes
Commissioner McElyea-no Mayor Chunn-yes
Commissioner Mikes-yes
4. Adjournment.
This meeting adjourned at 8:00 p.m. /
AT EST: RO RT H. CHUNN, JR.
CH RLENE O NSON
CITY CLERK
r
APPROVED: October 22, 2002
MINUTES, 5 SEPTEMBER 23, 2002
SPECIAL MEETING