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HomeMy WebLinkAboutMinutes BOC 090506BUDGET OVERSIGHT COMMITTEE September 5, 2006 MINUTES The Budget Oversight Committee met on September 5, 2006 in the Growth Management Conference Room in the Municipal Complex, located at 10500 North Military Trail, Palm Beach Gardens, Florida. The meeting was called to order by the Chairperson, John Chaplik, at 8:40 AM. I. Roll Call Members Present: John Chaplik - Chairperson Harvey Goldberg - Vice Chairperson Martin Cohen - Committee member Also Present: Hal Valeche - Council Liaison Allan Owens - Finance Administrator /Staff Liaison Mary Anderson - Pickle - Deputy Finance Administrator II. Approval of Minutes John Chaplik proposed two changes to the previous minutes. On page 4, paragraph 1, it should read 1.6% benefit rate instead of contribution rate, and in paragraph 2, total experience of Florida Retirement System less than 10% should read opt out. A motion was made by John Chaplik, seconded by Martin Cohen, and carried unanimously to approve the amended minutes from the July 20, 2006 meeting. John Chaplik Yes Harvey Goldberg Yes Martin Cohen Yes 111. 2006/2007 Budget Update Allan Owens distributed a package to the Committee containing a report to the Mayor and the Council on the Fiscal year 2007 Proposed Budget, a report on the General Fund Budget Variances from 2006 -2007, a Five -Year Projection and report summary. Allan Owens began pointing out various aspects of the reports including transportation and affordable housing budgeting. With those changes and with additions in staffing it brings us to 16 percent. Martin Cohen asked about affordable housing and the impact it will have on the budget, and John Chaplik asked whether yearly subsidies will have to be added for affordable housing. Martin Cohen stated that there is a difference between low income, affordable housing, and developers and the public needs to be made aware of the differences. With affordable housing there will be a subsidy that has to be provided. Harvey Goldberg stated it was all based on tax incentives and income levels, and that it was easier to deal with rental communities on the economic incentive program. Budget Oversight Committee Meeting Minutes 090506 Page 1 Allan Owens said the City Managers office has incentives to bring in the businesses we want to attract like Scripps, other research and development companies, and has ideas set up for seed money, for tax abatement, for waiving some fees, and 14 other programs. Martin Cohen asked if this was for every year. Mary Anderson - Pickle answered that with the $1 Million available, we are geared toward smaller spin -off companies. Harvey Goldberg asked how much was necessary to prime the pump and do we need big incentives. John Chaplik stated that ad velorum taxes will be used to attract larger tenants like Pfizer and Merck. Hal Valeche said that while other Councils, the County, and businesses are busy attracting the big businesses, we should use our $1 Million to work with the smaller spin -off businesses. Allan Owens agreed that this money should be viewed as seed money, and that those funds should be used to generate recurring resource services that will replenish the $1 Million fund that should be allocated as the Council sees fit. Allan Owens pointed out that the Development Director position has been eliminated and that in the 5 -year projection the assumptions have been reduced, using 6 percent as a benchmark. Insurance is down to 10 percent for Health, Workmen's Compensation and Property for a total package of $90,000, and that operating expenses increased to 4 percent, with the bottom line close to 6 percent overall. John Chaplik asked about the tax roll and wanted to know if property would double. Marty Cohen stated his home is close to the market value. Allen Owens stated that we cannot expect double digit appreciations and line one of the Revenue is the plan of what we can do. When Harvey Goldberg asked what the fluctuations were expected to be for areas such as Mirasol and Frenchman's Creek where seasonal residents own property and are not able to claim homestead exemption. Allan Owens replied that he could get those figures and e-mail them to the committee members. John Chaplik asked the committee members to remember that the net difference on new properties would be a lot since most of the new properties were commercial. New residential property is almost at a break - even status. Update of Florida Retirement System Allan Owens reported to the Committee that several meetings have been held recently concerning the Florida Retirement System. Two meetings are taking place presently with a representative from International City Manager's Association (ICMA), the company representing the present 401K program, and the general employees telling the employees the benefits of the 401K program. Allan Owens will get copies of the handouts from ICMA along with information from the Florida Retirement System. Next week employees will be given ballots to vote on which program they want to take. John Chaplik stated that once the general employees have finished that it would be good to then look at the Police and Fire Departments. Allan Owens said that was the plan and that the Florida Retirement System plan was impressive. He has discussed the program with both the Police and Fire Department actuaries and even though they each wish to do their own studies, he does not anticipate any problems. When both boards actuaries finish with their amendments, then Allan Owens will be able to figure actual numbers, and that we are also getting Census information for doing the mandatory General Accounting Budget Oversight Committee Meeting Minutes 090506 Page 2 Services Board 45 (GASB 45) study for next year. John Chaplik stated that government is different than the private sector due to benefits. For that reason and for continuity between the programs, Martin Cohen would like to have the Council direct the City Auditor to work on the retirement plan. Allan Owens will do some investigation into what additional cost will be involved for the City Auditor to do the work. IV. Discussion of Committee Report to Council Draft of Budget Advisory Committee Report Allan Owens distributed the Draft of the Budget Advisory Committee's Report to the City Council and some recommended language and changes were submitted by John Chaplik. The meeting was opened up for comments from the Committee. During the discussion that ensued several changes were incorporated. The updated changes became the amended Report to the City Council and it will be sent to each member by Allan Owens. Martin Cohen made a motion to accept the report as corrected, the motion was seconded by Harvey Goldberg, and the motion was carried unanimously. Budget Advisory Committee Allan Owens stated that there have been about 16 applicants who would like to become Committee members. On September 6th the City Council is going to appoint two additional members to the Budget Oversight Committee making a new total of five members. Allan Owens asked if a series of meetings should be set with the new Committee from this point forward. Hal Valeche replied that since the two new members will be appointed on September 6th that the Committee should have another meeting in September so the new members will have some contacts before it goes on to next year. There will be a swearing in ceremony in October. Budget Oversight Committee Meeting Minutes 090506 Page 3 V. Adjournment With no further business to discuss the meeting adjourned at 10:56 a.m. Approved: C V u u _' _ John Chaplik, aairperson arvey oldberg, Vice Chairperson Martin Cohen, Committee Member Attest: 6L COL. FM VLdI21" CAWC Tuesd Craig Municipal Services Coordinator NOTE: These summary minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio recording is available from the Office of the City Clerk. Budget Oversight Committee Meeting Minutes 090506 Page 4