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HomeMy WebLinkAboutMinutes Council 051508 Budget Workshop1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 CITY OF PALM BEACH GARDENS CITY COUNCIL BUDGET WORKSHOP MAY 15, 2008 The May 15, 2008 Budget Workshop of the City Council of the City of Palm Beach Gardens, Florida, was called to order at 6:02 p.m. in the Council Chambers of the Municipal Complex, located at 10500 North Military Trail, Palm Beach Gardens, Florida, by Mayor Eric Jablin. I. PLEDGE OF ALLEGIANCE H. ROLL CALL The City Clerk called the roll and the following elected officials were found to be in attendance: Mayor Eric Jablin, Vice Mayor David Levy, Councilmember Joseph Russo, Councilmember Jody Barnett and Councilmember Robert Premuroso. Mayor Jablin welcomed all to the second budget workshop, the first was held on May 1, 2008. Information has been prepared for presentation tonight, however, numbers are not yet available because the amount of tax revenue won't be received from the County until June or July. III. WORKSHOP a. Citizen Budget Workshop — Comments from the Public. Mayor Jablin asked City Manager Ron Ferris to address the information that has been prepared. City Manager Ferris invited Finance Administrator Allan Owens to give his presentation. Finance Administrator Owens explained the legislation that was enacted in 2007 that required the City to go 5 percent below its roll -back rate, resulting in a millage rate of 5.015 mills; a cut of $2.7 million. Actions taken to meet the cap included eliminating 13 full -time positions; downgraded one position; eliminated 7,200 hours of part-time staffing services; eliminated employee recognition programs; increased employee contributions for health insurance; eliminated the Economic Development program and one position; reduced staff travel, training and seminars; reduced parks, grounds and recreation services and contractual mowing and janitorial services; and decreased operating line items for all departments. Amendment 1, passed in January 2008, doubles the Homestead Exemption from $25,000 to $50,000, cutting tax revenues by approximately $2 million. Combining both cuts for 2009 is approximately $4.68 million. Estimates for the portability factor of Amendment 1 are not yet known. Non - homesteaded property tax increases are capped at 10 percent. Revenue estimate for 2009 is approximately $68 million. There will be revenue from other sources. Cost - cutting possibilities include changing the Police and Fire Departments to the Florida Retirement System (FRS); bringing engineering in- house; restructuring non - resident recreation fees; no capital projects that would increase operating or staff costs; reviewing employee health care contributions; and extending the amortization of vehicles. There is a possibility of eliminating from four to nine full -time positions and 17 part-time positions. Councilmember Barnett stated her concerns about the Police and Fire Departments changing to the FRS because it would give them portability to go elsewhere within the state creating the possibility that the City would train them and they would then leave for other positions. Councilmember Barnett also asked what the difference in benefits would be for officers coming out of FRS. City Manager Ferris stated the items are for discussion CITY OF PALM BEACH GARDENS CITY COUNCIL BUDGET WORKSHOP 05.15.08 PAGE 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 and have not been proposed. Should they be proposed and included in the budget the data and analysis would also be included. Councilmember Russo stated he believes properties that are not Homesteaded will have a significant impact on local tax revenue because of lower value in the current real estate market. Joan Elias, 1009 Diamond Head Way, Palm Beach Gardens, stated the citizens of Palm Beach Gardens do not pay tax for utilities, trash pickup, canal and street maintenance. Ms. Elias stated she believes the property tax amendment will have unforeseen consequences. Mayor Jablin stated the newer developments in the City pay for their infrastructure through a yearly tax and maintenance fee. The older sections of the City are maintained by the City. He stated he was a liaison to a blue ribbon panel in the past that chose to maintain the present system. He requested suggestions from residents regarding possible changes to the present system. Sundie Love, 10181 Palm Street, Palm Beach Gardens, stated the City has worked hard to recruit high -level personnel who are certified and well educated, much of which was paid for through tuition reimbursement. Ms. Love stated that if positions are to be eliminated, the City should be looking at some of the higher level positions, which would be a cost savings. Ms. Love also suggested merging departments. Ms. Love stated that as a former employee she is privy to information that she will not share in a public forum, but is willing to discuss with Council members privately. She suggested that the budget be reviewed with specific regard to positions and consultant fees. Pat Hughey, Reed Drive, Palm Beach Gardens, suggested on -line training for employees, mailings to non -City residents be stopped, fees to be paid by artists to display their work in City Hall and that a commission be paid to the City for pieces sold. Ms. Hughey asked who pays for the refreshments at the art presentation events. Freezing City Council salaries was also suggested. Ms. Hughey stated that Council members chose to live in gated communities where additional costs are levied. The older parts of the City are working class communities. Mayor Jablin stated the blue ribbon panel, to which he was a liaison, decided not to change the present system; a decision with which he agrees. Mayor Jablin thanked Ms. Hughey for stating her position that the present system be maintained. John Chaplik, 715 Hudson Bay Drive, Palm Beach Gardens, commended Finance Administrator Allen Owens on his presentation and his work and stated his agreement with Finance Administrator Owens' position on the budget. Mr. Chaplik suggested reviewing the position of City Attorney before hiring a replacement as a cost savings. Mr. Chaplik cited the inequity of the present tax system for newcomers. Carolyn Chaplik, 715 Hudson Bay Drive, Palm Beach Gardens, suggested returning to the last in -first out (LIFO) method for programs initiated since 2003, especially programs that are not self - sustaining. Charge higher fees for the Green Market to defray the cost of staff. Eliminate duplication of subscriptions for board and committee members. Fees should be paid by artists to display their work and invitations to events to people living outside the City should be eliminated. Eileen Tucker, Shady Lakes, Palm Beach Gardens, suggested charging fees to artists who display their work. Ms. Tucker stated she did not receive an answer regarding take -home cars and believes there would be a tremendous savings by not giving them to those who CITY OF PALM BEACH GARDENS CITY COUNCIL BUDGET WORKSHOP 05.15.08 PAGE 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 do not need them. Ms. Tucker stated she has not gotten an answer to any of the questions she asked two weeks ago. Ms. Tucker stated her objection to paying anything toward family dependent medical coverage and that new employees should start at lower salaries. Ms. Tucker stated she remembers Charlie Crist's objection to any city charging a utility tax to compensate for lost property tax revenue. Mayor Jablin stated the City has never had a utility tax with the exception of a miniscule communications franchise tax on the phone bill. Most cities do, as does the County. Richard Preiser, 4233 Magnolia Court, Palm Beach Gardens, stated that former Councilmember Hal Valeche suggested that during good times a reserve fund should be built up. He questioned if this was done. Mr. Preiser stated that if the City can function by cutting so many positions, then the budget must have been bloated. He suggested a more level approach so positions and services don't have to be cut during lean times. Councilmember Russo stated the City's reserves are approximately $16 million. Finance Administrator Owens stated that at the end of the last fiscal year the City's undesignated reserves were approximately $16 million, 22 percent of that year's operating expenditures. Three years ago the reserves were approximately $9 million. Mayor Jablin stated money could be withdrawn from reserves to weather the present situation, but does not believe it should be done. Councilmember Russo stated a budget should be developed now that will be sustainable over the next four to five years and he believes that is what Finance Administrator Owens is doing now. Finance Administrator Owens stated reserves should not be used for operating costs. He explained the tax revenue system now in place. Councilmember Russo stated he would be in favor of allowing a small percentage of reserves be used over the next few years to offset the present situation. Councilmember Russo stated that non - Homesteaded properties are down in value now, but will rise again and additional tax revenue will be realized at that time. Amir Kanel, 8332 Man -O -War, Palm Beach Gardens, stated that cost of living expenses are increasing and if the City does not pay the minimum there is the risk of losing good employees. Mr. Kanel asked about the budget for Public Works and if it can be subcontracted or merged with surrounding cities, such as Lake Park. Mayor Jablin thanked Mr. Kanel for his suggestion and stated it will be looked into. Craig Gerlach, 4687 Holly Drive, Palm Beach Gardens, stated he does not believe across - the -board cuts will help if they affect the Police or Fire Departments, Waste Management, Parks or other City departments. He does not care if the sprinklers are working in the median, if crime is going up. He stated his concern that people who can't pay for their homes may burn them and the need for the Fire Department will go up. Mr. Gerlach is a County fire fighter and does not want to see essential services cut. He quoted Governor Crist as stating that "no one will be laid off." Mr. Gerlach stated that if anyone is laid off he wants to know about it so he can call Governor Crist. Mr. Gerlach believes we should go back seven years and see where we were then and get a better idea of where we should be now. Carol Estrada, Riverside, Palm Beach Gardens, stated that all of the gated communities drain into the C -17 canal so it must be maintained and we all benefit. Ms. Estrada stated that the early residents were volunteer fire fighters and built the roads and she does not like to hear that the core of the City is like dead wood hanging on. Ms. Estrada asked if the art hanging in the lobby is protected from theft or damage from natural disaster by the City's insurance. She asked how many City employees actually live in the City and if CITY OF PALM BEACH GARDENS CITY COUNCIL BUDGET WORKSHOP 05.15.08 PAGE 3 I they don't, do they pay non - resident fees to use services or attend events. Mayor Jablin 2 stated he would check into it. 3 Joan Elias, 1009 Diamond Head Way, Palm Beach Gardens, wanted to clarify that she 4 did not suggest that any community should be taxed for any services the City gives, as do 5 other cities. 6 Louis Satriano, 4703 Lakemont Court, Palm Beach Gardens, stated that if enough people 7 used portability it would affect the budget. Mr. Satriano asked how much money is being 8 put into the reserves. Finance Administrator Owens stated he cannot answer that question 9 at this time because he does not have the information. Mr. Satriano suggested not adding 10 to the reserves at this time. Mr. Satriano also suggested that taxes be based on square 11 footage and acreage, as it used to be, because it is not subject to fluctuation. 12 Councilmember Russo stated he agreed with Carolyn Chaplik on the subscriptions; did 13 not agree on the LIFO suggestion, but does believe we should look at the special events 14 for elimination. Councilmember Russo stated he is not in favor of eliminating employee 15 raises or cost of living increases because it is not fair and they live with the same 16 situation as everyone else. 17 Councilmember Barnett stated at this time we have the opportunity to consolidate legal 18 services with one attorney or one firm. Councilmember Barnett also stated that the cost of 19 legal services should not be billed to Human Resources (HR) and should be easy to 20 determine so the services are not overused. Councilmember Barnett clarified that trash 21 collection has a tax rate to pay for the service, but if others taxes were added it would be 22 in addition to the present tax. 23 Mayor Jablin agreed with Councilmember Barnett about the trash collection tax. 24 Councilmember Russo agreed with Councilmember Barnett about the issue of an 25 attorney. 26 Mayor Jablin thanked everyone for their participation. 27 28 29 30 31 32 33 34 (The remainder of this page intentionally left blank.) 35 36 37 38 39 40 CITY OF PALM BEACH GARDENS CITY COUNCIL BUDGET WORKSHOP PAGE 4 05.15.08 I XIV. ADJOURNMENT 2 There being no further discussion at the Workshop, a motion for adjournment was made 3 by Councilmember Russo, seconded by Councilmember Barnett and approved 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 unanimously, 5 -0. The meeting was adjourned at 6:52 p.m. APPROVED: ATTEST: Patricia Snider, CMC City Clerk David Levy, Vice Mayor / " � //1 X/zz J9 Gh R. Russo, Councilmember Jody Barnett, Co ncilmember Robert G. Premuroso, Councilmember Note: These summary minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio record is available from the Office of the City Clerk. All referenced attachments on file in the Office of the City Clerk. CITY OF PALM BEACH GARDENS CITY COUNCIL BUDGET WORKSHOP 0515.08 PAGE