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HomeMy WebLinkAbout2000-09-13 Special Meeting - Proposed Millage and Budget for FY 2000/2001 City Commission Meeting Minutes MINUTES DANIA BEACH CITY COMMISSION SPECIAL PRELIMINARY BUDGET MEETING SEPTEMBER 13, 2000 1. CALL TO ORDER Mayor McElyea called the meeting to order at 7:38 p.m. 2. ROLL CALL: Present: Mayor: Charles McElyea Vice-Mayor: John Bertino Commissioners: Jim Cali John Etling Bob Mikes City Attorney: Tom Ansbro City Manager: Mike Smith Deputy City Clerk: Charlene Johnson 3. Proposed Millage and Budget 2000/2001 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 2000-01; 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 Attorney Ansbro read the title of the resolutions in Item 3.1 and 3.2 and advised that the millage must be adopted before the tentative budget resolution. Commissioner Mikes recommended reducing the $400,000 line item under Maintenance of Buildings and Grounds on page 7 of the Preliminary Budget. City Manager Smith advised that the $400,000 line item was budgeted to renovate the BSO offices and the Chamber, the purchase of equipment for better presentations, an A/C system in the Growth Management Department, and remodeling of the front Administration Center offices. City Manager Smith advised that the roll back rate is 5.83 and that the current projected millage is 6.1. Commissioner Mikes recommended continuing the improvements of the facility in an effort to give the taxpayers a break in taxes this year. MINUTES-SPECIAL MEETING 1 SEPTEMBER 13, 2000 Commissioner Cali agreed that the improvements could be continued and mentioned that the Human Relations Board has also recommended an increase in donations from $3,000 to $10,000.00 to be distributed between the Area Agency on Aging, Family Central, United Hearing and Deaf Services, and First Call for Help. Mr. Smith cautioned the City Commission on reducing the budget based on the fact that there are contingency funds available for some items and that $250,000 has been set aside for matching grants that will be needed over the next year. Mr. Smith advised that the A/C unit in the Growth Management Department must be replaced for health purposes. Ken Koch, Building Official, advised that $60,000 was budgeted for design and construction of the a/c unit project, however, complications on the design have pushed the project over to next year. Commissioner Cali asked if$100,000 would be adequate to complete the project and Mr. Koch felt that:it would be sufficient for additional repair work in the BSO offices and to address the safety issues. Commissioner Cali urged the City Commissioners to forego their salary increase this year that would cost taxpayers $12,495.00 since City Commission salaries were increased last year by 30%. . City Manager Smith pointed out that a reduction of$75,000 to $100,000 in the budget is not going to provide much tax relief for each citizen but the reduction in funds will have a significant impact on the programs that are needed to operate efficiently. Mr. Smith mentioned the need to implement the CRA program this year. Commissioner Mikes recommended providing $12,000.00($4,000.00 for each school) in the budget to provide a nurses program for the City's three schools and supported the salary increase for the City Commissioners based on the fact that the job takes up a lot of Commissioner's time and the need to pay City Commissioners better so that they will not rely on special interest group funds for their campaigns. Further comments were presented by Commissioner Mikes in regards to Commissioner Cali having a major conflict of interest voting on the budget since he is employed with BSO. Commissioner Cali opposed the comments presented by Commissioner Mikes based on the fact that an opinion was received at the beginning of his term from the State of Florida Commission on Ethics ruling that he could vote on the budget. Commissioner Cali stated that Commissioner Mikes is 100% wrong and that he owes the men and women of the Broward Sheriff's Office, along with himself, an apology for making false statements. Mayor McElyea agreed that City Commissioners should be paid better even though he does not need the money himself as the job takes a lot of his time. He pointed out that no one can buy his votes with campaign contributions. In response to Vice-Mayor Bertino, City Manager Smith advised that Laurence Leeds has received a $5,000.00 a year increase but that he did not recommend a salary increase for Bud Palm, Utilities/Public Works Director, and that he does not discuss personnel issues in public. Vice-Mayor Bertino made a motion to increase the salary for Bud Palm, Growth Management Director, by $5,000.00 per year since he has saved the City a lot of money. The motion failed • for lack of a second. MINUTES-SPECIAL MEETING 2 SEPTEMBER 13, 2000 City Manager Smith calculated that a $200,000 cut in the budget would reduce the millage rate • by .19 mills and would result in a millage rate of 5.91. The average $100,000.00 property owner would save $19.00 per year. City Manager Smith advised that the roll back rate is 5.83 and that this is a very lean budget as presented and that the reduction in the millage rate will impact operations significantly. After further calculation, City Manager Smith advised that an additional $84,210.00 is needed to meet the 5.83 roll back rate. Mayor McElyea opened the public hearing. Hearing no one speak in favor or opposition, Mayor McElyea closed the public hearing. City Attorney Ansbro explained the legal requirements for re-computing the millage rate and publicly announcing the percent. A.motion-was made.by.Commissioner-Mikes, seconded by Commissioner Etling, amending the resolution approving a millage rate of 5.83, equaling the roll back rate, and adopting the resolution as amended. The motion passed on the following 4/1 roll call vote: Commissioner Cali —no Commissioner Etling-yes Commissioner Mikes —yes Vice-Mayor Bertino —yes Mayor McElyea-yes 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 2000-01; 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. City Manager Smith calculated that the budget must be reduced by $284,000.00 to meet the 5.83 millage rate and that the new total budget would be $20,597,200.00. Mayor McElyea opened the public hearing. Hearing no one speak in favor or opposition, Mayor McElyea closed the public hearing. A motion was made by Vice-Mayor Bertino, seconded by Commissioner Mikes, amending the resolution to decrease the proposed budget by $284,000.00 and changing the total budget amount to $20,597,200.00 in order to meet the 5.83 millage rate and adopting the resolution as amended. The motion passed on the following 411 roll call vote: Commissioner Cali —no Commissioner Etling-yes Commissioner Mikes—yes Vice-Mayor Bertino —yes Mayor McElyea-yes Commissioner Mikes questioned staff on whether any revenue is expected on the telecom • cables that are being installations throughout the City. City Attorney Ansbro advised that some MINUTES-SPECIAL MEETING 3 SEPTEMBER 13, 2000 applications are expected to be brought before the City Commission on September 26th and that an entry fee of$5.000.00 per company is being proposed. 3.3 Discussion of staff's evaluation of RFP's received on Business Improvement District and Community Redevelopment Study and presentation by HBI Planning Services, Inc., Edward D. Stone Jr. and Associates (EDSA), Keith &Associates, Inc. Henry B. Iler, AICP, President of HBI Planning Services, introduced Doug Coolman and Doug Smith, EDSA, and Wilson Alvarez, Keith &Associates. Mr. Iler advised that Mr. Bill Keith is expected to arrive later in the presentation and he passed out information on providing a Community Redevelopment Needs Study. Mr. Iler presented background information on HBI. He explained that a Community Redevelopment-Agency is an area that works off the tax increment or tax base growth of the designated area over a number of years. A CRA provides a financial and planning tool for local communities and brings revenues normally slated for Broward County , the Hospital District or other ad valorem collection agencies to the City for redevelopment purposes. Mr. Iler explained that the Business Improvement District is used around the country as an early financial tool for CRA's. Most CRA's are poor in the first two or three years until the tax base grows in the area and more funds come in from other agencies. A Business Improvement District, provided that it has the support of the commercial property owners in the area, can be a valuable tool to provide the City with an initial turn around project that can send the message out to the private sector on the City's seriousness of creating a Community Redevelopment Agency. The CRA and BID are inevitably linked. The real approval and creation of the CRA • occurs once the Community Redevelopment Plan, after the Finding of Necessity, is approved through Broward County and once the City starts to receive trust funds. The Trust Fund will be the financial arm of the CRA. Mr. Iler explained Broward County's actions to direct the County Administrator to review the 95% increment given to CRA's and the possibility of reducing the percentage in the future. Mr. Iler advised that his company was the first planning team to successfully get through the Broward County CRA process now that new criteria has been established and that there are constant changes at the county level to impose more regulations. He mentioned that his firm would provide the City a planning and financial advocate to get the percentage increased as high as possible. The City must first set the boundary area of the CRA and maximize the amount of vacant and non-residential land. Residential land does not work well in a CRA in accordance with the Save Our Homes Legislation as it acts as a drag on the increment that is received. The focus should be on commercial and industrial and tracts that include known development plans that have not received building permit status. Mr. Doug Smith, EDSA, explained that the CRA plan follows the Finding of Necessity process and pointed out other aspects of the redevelopment plan. Commissioner Etling advised of the benefits provided to the City from the Main Street Program and suggested that EDSA attend the upcoming Planning Design workshop scheduled the second week of October. Mr. Doug Smith agreed that their attendance would be a good idea as it might provide his team with some insight into the needs of the community for creating the CRA plan. • MINUTES-SPECIAL MEETING 4 SEPTEMBER 13, 2000 Commissioner Cali mentioned that the CRA is going to provide commercial, industrial and • residential growth for the City of Dania Beach and he highly recommended that the HBI team be selected to accomplish the Business Improvement District and Community Redevelopment Agency for the City based on their expertise. Vice-Mayor Bertino mentioned that it takes some time before tax increment districts start producing revenue and he inquired as.to whether bonds would be used to get the district started and whether pledges from the tax increment district would be used for paying down the bonds. Mr. Smith explained that bonding is one method and is not always recommended. Mr. Smith advised that the district boundaries are very important and that the trust funds must be in place before development begins. The Business Improvement District, a special taxing district, provides the opportunity to implement a revenue source through an area or foot-frontage assessment program in the targeted area. Mr. Smith advised that grants from FDOT (Florida Department of Transportation) and the MPO (Metropolitan Planning Organization) might also be available to get the district started in the first three years and that private sector funds should start to hit the tax rolls by year four. Mr. Doug Smith advised that bonding is sometimes used in CRA's after a proven revenue track record has existed for 5 to 7 years to provide larger sums of money to develop the more difficult areas. CRA's are normally in operation for 30 years or more and increased taxes will go back into the CRA district plus the City will receive increased taxes from Broward County and other districts because of the growth of the district. Mr. Smith confirmed that CRA funds can also be used for security, public services, clean-up or a number of other services for the CRA area as long as the program is set up correctly in the beginning. The tax rate will be the same for the CRA as is citywide and it is the growth in the value of the properties in the CRA that goes back into the CRA and property values in the surrounding area of a CRA are also increased as long as the CRA is successful. ® Commissioner Etling asked if BID or CRA funds could be used for improving residential properties. Mr. Smith advised that the City would want to minimize the amount of existing residential properties that would be placed in a CRA, however, vacant residential land should be encouraged as the City would get the full taxable value once development takes place. It is important to establish the CRA as soon as possible so that the base year is established before development begins and a Certificate of Occupancy is issued. A motion was made by Commissioner Cali, seconded by Commissioner Etling, directing staff to enter into negotiations with the team of HBI Planning Services, Inc., Edward D. Stone Jr. and Associates (EDSA), and Keith &Associates, Inc., for the creation of the CRA and BID programs. The motion passed on the following 5/0 roll call vote: Commissioner Cali —yes Commissioner Etling-yes Commissioner Mikes —yes Vice-Mayor Bertino —yes Mayor McElyea-yes Commissioner Etling requested that the team of HBI Planning Services, Inc., Edward D. Stone Jr. and Associates (EDSA), and Keith &Associates, Inc provide another presentation at a regular meeting that would be aired on television to provide the public with an understanding of the CRA and BID programs. • MINUTES-SPECIAL MEETING 5 SEPTEMBER 13, 2000 • City Manager Smith agreed that a public presentation should be presented and also recommended joint meetings with the City's Planning & Zoning Board, Main Street, Dania Beach Economic Development Board and other City entities. Vice-Mayor Bertino was disappointed that Main Street and the Chamber of Commerce were not present tonight to have heard the presentation. 4, ADJOURNMENT The meeting was adjourned at 8:58 p.m. t MAYOR-COMMI SOP N E R `ACTING ITY CLERK Respectfully submitted: Charlene Johnson Deputy City Clerk MINUTES APPROVED: 10/10/2000 • MINUTES-SPECIAL MEETING 6 SEPTEMBER 13, 2000