HomeMy WebLinkAbout2010-0914 1st Budget Hrg - Special Commission Meeting
SUMMARY MINUTES
Special City Commission Meeting
1st Budget Hearing Fiscal Year 2010/2011
Tuesday, September 14, 2010, 6:00 p.m.
City of Sunny Isles Beach, Florida
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AGENDA
1. CALL TO ORDER / ROLL CALL OF MEMBERS
The meeting was called to order by Mayor Edelcup at 6:00 p.m., with the following officials
present:
Mayor Norman S. Edelcup
Vice Mayor Lewis J. Thaler
Commissioner Roslyn Brezin
Commissioner Gerry Goodman
Commissioner George "Bud" Scholl
City Manager Rick Conner
City Attorney Hans Ottinot
City Clerk Jane A. Hines, CMC
Assistant City Manager/Services Jorge Vera
Assistant City Attorney Fernando Amuchastegui
2. PLEDGE OF ALLEGIANCE
Action: Bob Welsh led the Pledge of Allegiance to the flag.
Mayor Edelcup gave opening remarks noting that tonight is our first budget hearing, and our
second and final budget hearing will be held on Tuesday, September 28, 2010 at 6:00 p.m. He
also noted that we have had a series of Workshops throughout the summer as the budget was
being compiled, and tonight's meeting is really the first formal hearing of that final budget.
3. PUBLIC HEARING ON THE PROPOSED MILLAGE RATE AND TENTATIVE
BUDGET
3A. Millage Resolution (Public Hearing)
A Resolution of the City Commission of the City of Sunny Isles Beach, Florida,
Establishing the City of Sunny Isles Beach Proposed Ad Valorem Tax Millage Levy
Rate at 2.8860 Mills per One Thousand Dollars ($1,000) of Taxable Assessed Value Which
is 3.85% Less than the "Rolled Back" Rate of 3.0015 Mills, for Fiscal Year 2010/2011;
Providing for an Effective Date.
Action: Mayor Edelcup asked Assistant City Manager/Finance MinaI Shah to lead us through
the budget and to highlight whatever changes may have been made, if any, since the last
workshop. Assistant City Manager Shah reported noting the workshops that took place during
the summer, and that the Commission had asked staff several questions and asked them to
pursue other opportunities outside of the box, some of which were reviewing and analyzing
the recreation usage of our facilities by the schools, youth leagues and other parties, which
Summary Minutes: Special City Commission Meeting September 14, 20 I 0
First Budget Hearing
Sunny Isles Beach, Florida
was accomplished through readjusting the fees. In addition, the concession stands were also
evaluated and we are looking to outsource that in order to optimize our opportunities. The
changes that have taken place since the last workshop were: increasing some of the utility
fees, the revenue sources, and the franchise fees. In addition there were slight changes to the
health insurance plans for the employees which were also adjusted. With the Commission's
direction, staff has had significant accomplishments during the year: the City secured a $15
Million debt in order to accomplish some Capital Park Improvements; the City secured a $3.5
Million debt for Stormwater Capital Improvements; the City started construction of Heritage
Park with near completion on the garage; and purchased land in order to do future
development for the parks. We have also maintained the City's Fund Balance at $10 Million.
Capital Improvement Projects: Some of the Capital Improvement Projects that we have
accomplished throughout the year, are in progress, and new projects are: the Intracoastal Park
System; the Newport Fishing Pier; and the Central Island Drainage Project, Phase II which is
North Bay Road.
Property Values: What is important to note here is that last year our preliminary tax values
came in at about $6.1 Billion, and throughout South Florida we have experienced a decrease
in valuations, and we too experienced that decrease of almost $1 Billion which equaled about
15.6%. Although that is a large number, it is not as large as our neighboring cities, some of
which experienced 20% to 28% decreases. In addition we were fortunate enough to have new
construction come onboard, we have had three developments for this fiscal year: Trump
Towers III, Jade Ocean, and St. Tropez II. With that we were able to recognize almost a half a
billion dollars worth of construction. Next year we will also recognize another new addition
which will be St. Tropez III. With that we have a total in property values of $5.6 Billion
which shows a net decrease of 8.3%, and again, our neighboring cities are experiencing
double digit decreases.
Millage Rate: Because of the Commission's vision and commitment, they have elected to
propose a millage rate of2.886, and it is really important to note that with a simple majority
vote the Commission could have had proposed a millage rate as high as 3.4158, which was
allowed, and if you did a major majority of2/3rds vote, it could have been as high as 3.7574.
The 2.886 actually recognizes a 23% decrease from the maximum millage that could have
been proposed. With the millage rate as low as 2.886 we are actually the ih lowest millage
rate in the County. Over 17 cities in the County have more than doubled our millage rate.
Assistant City Manager Shah presented a graph of "History of Taxable Values, Tax Revenues,
and Millage Rates" and noted that the Commission has maintained the revenues steady and at
a lower rate when it could have also peaked.
General Fund: Since the General Fund is the largest operating fund for the budget, Assistant
City Manager Shah showed a summary of the budget and outlined the change between fiscal
year 200912010 adopted budget to fiscal year 2010/20 1l budget is up $251,000 which
represents a 1 % increase. We were fortunate that our revenues for the franchise fees and
utility taxes came in more than we had budgeted, and so we recognize a slight increase for
that. To offset that we have had slight increases in personnel services due to retirements and
health insurance, as well as operating expenses due to the addition of new parks. We have
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Summary Minutes: Special City Commission Meeting September 14,2010
First Budget Hearing
Sunny Isles Beach, Florida
offset that with a decrease in the Capital Outlay, those one time expenses, but we do have
enough funding for vehicle replacements, as well as computer replacements and software
upgrades. In addition, during the year we are now recognizing the first debt service payment
for the $15 Million debt, that has increased and the offset to that is a transfer to the Capital
Improvement Program, and so we have managed our increases by reducing other costs. With
that 1 % increase the Commission has allowed us to still have major accomplishments, to
continue to provide community and cultural events, and to develop a budget that will sustain a
City with its amenities and the aesthetics that our residents have come to enjoy.
Capital Improvement Program: The Capital Improvement Program consists of three capital
funds: 1) General Capital Improvement Program Fund; 2) 2010 Capital Improvement Program
Fund which consists of the $15 Million funding from the Bond; and 3) Stormwater Capital
Fund which is funded by the $3.5 Million fund. There are new projects that are coming on
line that are being funded which includes: the Intracoastal Park; the Newport Fishing Pier;
and the North Bay Road Drainage Projects. The other projects that have been budgeted are
continuing projects that have been reallocated for funding.
Public Speakers: none
Mayor Edelcup said that everyone has studied the book and through the fact that we had a
series of workshops that we started doing two years ago, we have simplified the whole
budgetary process. Mayor Edelcup commended staff for doing a great job of putting the
budget together and walking us through all the sessions we had.
Vice Mayor Thaler noted a typo in the Resolution heading, it states 2010/2009, when it should
be 2010/2011, City Clerk Hines read the correction into the record. City Attorney Ottinot said
that the Resolution and Ordinance can be heard together with a single roll call vote.
Vice Mayor Thaler moved and Commissioner Brezin and Commissioner Goodman seconded
a motion to approve the resolution, as amended. Resolution No. 2010-1598 was adopted
by a roll call vote of 5-0 in favor.
3B. Budget Ordinance (Public Hearing)
An Ordinance of the City Commission of the City of Sunny Isles Beach, Florida, Adopting
an Operating and Capital Outlay Budget for the Fiscal Year Commencing October 1,
2010 through September 30,2011, Pursuant to Section 200.65, Florida Statutes (Trim Bill);
Authorizing Expenditures of Funds Established by the Budget; Authorizing Encumbrances;
Authorizing Issuance of Checks; Providing for Grants and Gifts; Providing for Local and
Federal Law Enforcement Trust Funds; Providing for Post Audit; Providing for Severability
and Providing for an Effective Date.
Action: City Clerk Hines read the title.
Vice Mayor Thaler moved and Commissioner Brezin and Commissioner Goodman seconded
a motion to approve the proposed ordinance on first reading. The motion was approved
by a roll call vote of 5-0 in favor. Second reading, public hearing will be held on
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Summary Minutes: Special City Commission Meeting September 14,2010
First Budget Hearing
Sunny Isles Beach, Florida
Tuesday, September 28, 2010, at 6:00 p.m.
Vote: Commissioner Brezin yes
Commissioner Goodman yes
Commissioner Scholl yes
Vice Mayor Thaler yes
Mayor Edelcup yes
4. ANNOUNCEMENTS
4A. Add-On:
Commissioner Goodman noted that the City is building Heritage Park, and in Heritage Park
there is going to be a Veteran's Wall. He asked all veterans of any war to get in touch with
him or City Hall, and your name will be put on the wall. You will need to bring
documentation that you were in the service of the United States.
5. ADJOURNMENT
\. ' Mayor Edelcup adjourned the meeting at 6:20 p.m.
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~Respe~tfully submitted by: Approved by the City Commission on Oct. 14,2010
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''I Jane A. Hines, CMC, City Clerk
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City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3 I I3 Fax
MEMORANDUM
TO:
The Honorable Mayor and City Commission
FROM:
Jane A. Hines, CMC, City Clerk
DATE:
10/14/2010
RE:
Summary Minutes for the September 14, 2010 Special City Commission
Meeting
RECOMMENDATION:
Attached for your consideration are the Summary Minutes for the September 14, 20 1 0
Special City Commission Meeting - 1 st Budget Hearing for Fiscal Year 2010/2011.
REASONS:
N/A
ATTACHMENTS:
. Summary Minutes
http://sibagenda.sibfl.net/agenda/Preview.aspx?ItemID=351 &MeetingID=O&MeetingDate... 9/28/20 1 0