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Home My WebLink About1750 - MINUTES - City Commission MINUTES DANIA BEACH CITY COMMISSION SPECIAL MEETING FINAL BUDGET HEADING SEPTEMBER 24, 2001 1. CALL TO ORDER Mayor Flury called the meeting to order at 6:00 p.m. Pledge of Allegiance Dave Keller, Acting City Manager, presented an invocation. 2. ROLL CALL Present: Mayor: Pat Flury Vice-Mayor: Robert Chunn Commissioners: John Bertino C.K. McElyea Bob Mikes City Attorney: Tom Ansbro Acting City Manager: Dave Keller Acting City Clerk: Charlene Johnson Mayor Flury advised that Jason Nunemaker, Interim City Manager, was unable to attend the meeting tonight and that Dave Keller is serving as Acting City Manager tonight. 3. PUBLIC HEARINGS: Dave Keller, Acting City Manager and Finance Director, explained that the budget being presented tonight included all amendments that the City Commission had directed staff to do, including the addition of two BSO Deputies from the September 6th meeting. Since the September 12 proposed budget hearing, Mr. Keller clarified that staff received the exact figures for residential units from the newly annexed area, which increased the City's sanitation payment by $250,000.00 to reflect the actual cost, however, revenues were also increased by $250,000.00 to indicate an even dollar adjustment. Mayor Flury advised that questions should be held until after the introduction of the millage resolution. At this time, City Attorney Ansbro read the Resolution titles for Items 3.1 and 3.2, which corrected the actual Final Budget Hearing date. 3.1 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING RESOLUTION NO. 2001-163 (TO SUBSTITUTE SEPTEMBER 24 INSTEAD OF SEPTEMBER 25 AS THE FINAL PUBLIC HEARING DATE), AS REQUIRED BY THE MINUTES-SPECIAL MEETING FINAL BUDGET HEARING CITY OF DANIA BEACH 1 SEPTEMBER 24, 2001 CITY CHARTER AND SECTION 200.065, FLORIDA STATUTES, APPROVING THE PROPOSED MILLAGE RATE NECESSARY TO BE LEVIED FOR THE FISCAL YEAR 2001-02; 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. A motion was made by Vice-Mayor Chunn, seconded by Commissioner McElyea, adopting the resolution. The motion passed on the following 5/0 roll call vote: Commissioner Bertino-yes Vice-Mayor Chunn-yes Commissioner McElyea-yes Mayor Flury-yes Commissioner Mikes-yes 3.2 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING RESOLUTION NO. 2001-164 (TO SUBSTITUTE SEPTEMBER 24 INSTEAD OF SEPTEMBER 25 AS THE FINAL PUBLIC HEARING DATE), AS REQUIRED BY THE CITY CHARTER AND SECTION 200.065, FLORIDA STATUTES, APPROVING ITS TENTATIVE ANNUAL BUDGET FOR THE FISCAL YEAR 2001-02; 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. A motion was made by Commissioner Bertino seconded by Vice-Mayor Chunn, adopting • the resolution. The motion passed on the following 5/0 roll call vote: Commissioner Bertino-yes Vice-Mayor Chunn-yes Commissioner McElyea-yes Mayor Flury-yes Commissioner Mikes-yes 3.3 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 2001-02 AND REPEALING ALL RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. Attorney Ansbro read the title of the resolution. For the record, Mayor Flury stated the following: "The proposed millage rate set by the City Commission of the City of Dania Beach on July 26, 2001, is 6.1999 mills, which will generate General Fund Revenues of Nine Million, Eight Hundred Seventy-Eight Thousand, One Hundred Ninety-Five Dollars ($9,878,195.00), representing a 12.94% increase over the rolled-back rate of 5.4895 mills. The specific purposes for the increase are to raise additional revenues for the General Fund to assist in reducing the difference between the General Fund Revenues and the General Fund Expenditures and to maintain and/or increase services to the citizens of Dania Beach." • MINUTES-SPECIAL MEETING FINAL BUDGET HEARING CITY OF DANIA BEACH 2 SEPTEMBER 24, 2001 Mayor Flury opened the public hearing on the millage rate only. Hearing no one speak in favor or opposition, the Mayor closed the public hearing. Commissioner Mikes was concerned with the low turnout in attendance for the Final Budget hearing and clarified with the Acting City Clerk that the meeting was properly advertised. Commissioner Mikes mentioned that many companies are laying off workers due to the terrorist attacks that occurred September 11th and recommended a reduction in the millage rate and to remove the raises for employees this year. Commissioner-McElyea agreed,with Commissioner Mikes that there may be many people out of work and that business is not as usual because his own business lost over $10,000.00 this week. Under the current economical circumstances, Mayor Flury mentioned that most businesses develop plans on how to deal with the impact of the current events. She suggested that the City Manager and Finance Director also meet to develop a plan for the City. Mayor Flury clarified that a 4% raise has been included in the budget for the General Employees, Fire Employees, and management, which represents an estimated $275,000.00. Commissioner Mikes mentioned that the City is not asking employees to be laid off or to lose benefits like other employees in the country. He suggested that the City should share in the pain of the rest of the country at this time and that the millage rate should be cut back to 5.99. This would allow the money for raises to be left in Contingency and anything left at the end of the year could be used for employee raises. ® Commissioner Bertino disagreed with Commissioner Mikes as he felt that the City workers have done an excellent job and deserve the proposed raise. He pointed out that the proposed raise for employees is very small and would only keep in step with the Cost of Living Index. He clarified that current cut backs in the airline and hotel industries are not unusual in the country during recession periods. In addition, Commissioner Bertino pointed out that a reduction in the millage rate would only provide a small benefit to the average homeowner on their taxes should they lose their jobs, however; raises would provide a significant benefit to many City employees. Mayor Flury agreed with reducing the millage rate down, but not as far as 5.999, and disagreed with taking it off the backs of City employees. A motion was made by Commissioner Mikes, seconded by Commissioner McElyea, to reduce the millage rate to 6.10 and that the money be placed in the Contingency Fund, no raises be negotiated, and as long as no other crisis occurs during the rest of the year, the City would renegotiate raises at the end of the year. This motion was withdrawn. Dave Keller advised that a reduction of $250,000 would reduce the millage from 6.1999 to 6.0430. Mayor Flury confirmed that the budget is currently $29 Million and that $270,000 would account for less than 1%, which represents the amount of increases for employees. Mayor Flury stated that if this proposed millage reduction is based on principal and not just an excuse to take raises away from employees then the City Commission should also give up raises received last year. MINUTES-SPECIAL MEETING FINAL BUDGET HEARING CITY OF DANIA BEACH 3 SEPTEMBER 24, 2001 • Commissioner Mikes was in opposition to giving up Commission raises and suggested that Mayor Flury give up her pension from Memorial Hospital. Mayor Flury stated that she worked 42 years with Memorial Hospital for her pension and that no one ever took away her raises and that raises were based on her performance during good or bad years. Commissioner Bertino asked how much of a tax decrease would be provided to an average homeowner with a .1 mills reduction in the millage rate. Dave Keller pointed out •that,an average $100,000.000 home with the $25,000.00 homestead exemption would leave $75,000.00 taxable value and the reduction in millage would decrease taxes from $464.99 to $457.49 for a difference of$7.50 a year or $0.65 per month. At this time, Commissioner Mikes and Commissioner McElyea withdrew the motion reducing the millage to 6.10. A motion was made by Commissioner Bertino, seconded by Vice-Mayor Chunn, approving the 6.1999 millage rate. The motion failed on the following 2/3 roll call vote. Commissioner Bertino-yes Vice-Mayor Chunn-yes Commissioner McElyea-no Mayor Flury-no Commissioner Mikes-no After passing the gavel, Mayor Flury made a motion setting the millage rate to 6.1000, seconded by Commissioner Mikes. The motion passed on the following 3/2 roll call vote: • Commissioner'Bertino-no Vice-Mayor Chunn-no Commissioner McElyea-yes Mayor Flury-yes Commissioner Mikes-yes A motion was made by Commissioner Mikes, seconded by Commissioner McElyea, adopting the Resolution approving the final millage rate of 6.1000. The motion passed on the following 3/2 roll call vote: Commissioner Bertino-no Vice-Mayor Chunn-no Commissioner McElyea-yes Mayor Flury-yes Commissioner Mikes-yes 3.4 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 2001-02; 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. City Attorney Ansbro read the title of the resolution. Mayor Flury opened the public hearing. Hearing no one speak in favor or opposition, • Mayor Flury closed the public hearing. MINUTES-SPECIAL MEETING FINAL BUDGET HEARING CITY OF DANIA BEACH 4 SEPTEMBER 24, 2001 Commissioner Bertino stated that the budget must be reduced by the difference in the millage rate in order to comply with State Statute and that the City Commission must determine what line item to reduce. Dave Keller advised that the millage rate reduction decreases operating appropriations for the General Fund by $159,169.00, which reduces the General Fund Budget from $24,037,589.00 to $23,878,420.00. Mayor Flury clarified with Mr. Keller that $154,000 of unallocated funds from the previous budgetdiscussions was used to fund the two BSO Deputy positions and that this budget proposes a Contingency Fund of $350,000.00 and reserve contributions to Fund Balance of $359,788.00. Mr. Keller explained that in many cities a portion of the Fund Balance in used to balance budgets, thereby, reducing reserves. The City is trying this year to increase the Fund Balance closer to 5% of the entire budget as a safer reserve amount. Commissioner Mikes was of the opinion that it would be irresponsible to reduce the Contingency Fund and that it would not send the right message to the public. Commissioner Bertino pointed out that the proposed Reserve Fund Balance of $359,788.00 is a larger reserve than has ever been voted on by the City Commission in the past and reducing the fund could not be construed as irresponsible. Mayor Flury confirmed with Mr. Keller that the transfer of $1,500,000.00 from the Water Fund this year provides projected year-end reserves of $650,000 to $1,000,000.00 needed to cover operating costs for October and November before the City receives revenues in December. A motion was made by Commissioner Bertino, seconded by Vice-Mayor Chunn, decreasing the Fund Balance of $359,788.00 by $159,169.00 to conform with the reduction in the millage rate of 6.1000 so that raises could be provided to the employees and a reduction in taxes could be provided to residents. The motion passed on the following 3/2 roll call vote: Commissioner Bertino-yes Vice-Mayor Chunn-yes Commissioner McElyea-no Mayor Flury-yes Commissioner Mikes-no A motion was made by Commissioner Bertino, seconded by Vice-Mayor Chunn, adopting the resolution approving the budget as amended. The motion passed on the following 3/2 roll call vote: Commissioner Bertino-yes Vice-Mayor Chunn-yes Commissioner McElyea-no Mayor Flury-yes Commissioner Mikes-no 3.5 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 MINUTES-SPECIAL MEETING FINAL BUDGET HEARING CITY OF DANIA BEACH 5 SEPTEMBER 24, 2001 RESOLUTIONS IN CONFLICT HEREWITH BE REPEALED TO THE EXTENT OF • SUCH CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE. City Attorney Ansbro read the title of the resolution. Dave Keller advised that the resolution would increase the water and sewer rates by 4% as had been discussed during the budget process, which offsets the increases in the CPI since 1998 when the fees were last increased. The CPI since 1998 had increased approximately 9% and the City was only increasing rates by 4% to be conservative. A motion was made by Commissioner Bertino, seconded by Vice-Mayor Chunn, adopting the water rate resolution. The motion passed on the following 3/2 roll call vote: Commissioner Bertino-yes Vice-Mayor Chunn-yes Commissioner McElyea-no Mayor Flury-yes Commissioner Mikes-no 3.6 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, SETTING MONTHLY CHARGES FOR SEWER SERVICES FOR RESIDENTIAL AND COMMERCIAL USERS; PROVIDING FOR METER REMOVAL AND REINSTALLATION CHARGE; PROVIDING FOR LATE FEES AND DISCONTINUING WATER SERVICE FOR DELINQUENCY; PROVIDING A DISCOUNT FOR LOW INCOME RESIDENTS; 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. A motion was made by Commissioner Bertino, seconded by Vice-Mayor Chunn, adopting the sewer rate resolution. The motion passed on the following 3/2 roll call vote: Commissioner Bertino-yes Vice-Mayor Chunn-yes Commissioner McElyea-no Mayor Flury-yes Commissioner Mikes-no 4. ADJOURNMENT This meeting adjourned at 6:55 p.m. MAYOR-COMMISSIONER' ATTEST: ACTING CITY CLE APPROVED: October 9, 2001 MINUTES-SPECIAL MEETING FINAL BUDGET HEARING CITY OF DANIA BEACH 6 SEPTEMBER 24, 2001