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.
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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.
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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.
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