TOWN OF MELBOURNE BEACH
MINUTES
TOWN COMMISSION - BUDGET PUBLIC HEARING
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WEDNESDAY
September 3, 2003
COMMUNITY CENTER
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A workshop of the Town Commission of the Town of Melbourne Beach, Florida was called to order by
Mayor Crispen at 7:02 p.m. on Wednesday, September 3, 2003 in the Community Center. Mayor Crispen also
led the Pledge of Allegiance
Present:
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Mayor Crispen
Vice Mayor Smith
Commissioner Price
Commissioner Walters
Commissioner Wilson
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Others Present:
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Town Manager Hoskovec
Interim Police Chief Haran
Finance Manager Matthews
Seven members of the Public
Town Clerk Masny
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I. PUBLIC HEARING:
A. APPROVAL OF PROPOSED AD VALOREM MILLAGE RATE FOR FISCAL YEAR 2003/2004
MUNICIPAL BUDGET.
Town Manager Hoskovec stated that the Town Commission has held four (4) workshops regarding the budget and millage
rates and stated that the ad valorem millage rate of 3.4939 is 10.003900936 increase in taxes or approximately $31 per
household.
Mayor Crispen opened the public hearing for comments from the public regarding the proposed ad valorem millage rate.
There were no comments from the public.
COMMISSIONER PRICE MOVED, SECOND COMMISSIONER WILSON TO APPROVE THE AD VALOREM MILLAGE
RATE OF 3.4939 MILLS FOR THE FISCAL YEAR 2003/2004.
VOTE: COMMISSIONER PRICE, AYE. COMMISSIONER WILSON, AYE. VICE MAYOR SMITH, AYE.
MAYOR CRISPEN, AYE. COMMISSIONER WALTERS, NAY. MOTION CARRIED.
B. APPROVAL OF PROPOSED AD VALOREM DEBT SERVICE MILLAGE RATE FOR FISCAL YEAR 2003/2004
MUNICIPAL BUDGET.
Town Manager Hoskovec stated that the Town took out a bond to pay for one-half of the library property and last year’s
millage rate was 0.3020 and in keeping with the intent of the bond referendum when it was passed, it is the recommendation
of the administration to roll back the rate to 0.2737 mills, which will represent no increase on the household.
Mayor Crispen opened the pubic hearing for comments from the public regarding the proposed ad valorem debt service
millage rate. There were no comments from the public.
COMMISSIONER WILSON MOVED, SECOND COMMISSIONER PRICE TO APPROVE THE AD VALOREM DEBT
SERVICE MILLAGE RATE OF .2737 MILLS.
VOTE: ALL AYES. MOTION CARRIED.
C. APPROVAL OF TENTATIVE FISCAL YEAR 2003/2004 MUNICIPAL BUDGET.
Mayor Crispen stated that the Town Manager and Finance Manager will review each department of the budget and he
would like to withhold public and Town Commission comment until each department budget is reviewed by the Town
Manager and Finance Manager.
Town Manager Hoskovec reviewed the proposed fiscal year 2003/2004 municipal budget and explained any items the
were proposed to be budgeted significantly higher or lower than the previous year’s budget. Town Manager Hoskovec
reviewed all changes to this year’s budget such as a depreciation line added to the departments, moving the Town Clerk
from the Executive to the Legislative section of the budget, and the General Services items are broken out into each
department such as telephone, electricity, water, and janitorial services and the only item in the General Services
budget is contingency.
REVENUE
Town Manager Hoskovec stated that most of the revenues are staying within the bounds they have been in for the last
several years and reviewed the proposed revenues for the Town during fiscal year 2003/2004.
Mayor Crispen opened the public hearing for comments from the public regarding the projected revenues.
Paul Guglietta, 318 Fourth Avenue, commented that in the fines and forfeitures budget, he heard ticketing has been down
and commented that the Town needs to maintain the citation level as we owe the county approximately $85,000.
Town Manager Hoskovec commented that the county still has $109,000 in outstanding fines that they have not
collected for the Town and commented that the county has gone to outside collection sources.
Commissioner Walters asked if the $109,000 is the total fines outstanding? Town Manager Hoskovec responded that
this is our share of the total fines. Commissioner Walters asked Town Manager Hoskovec if he knows what the average
collection rate is? Town Manger Hoskovec responded that the collection agency the county is using has a 38 percent
collection rate. Commissioner Walters responded that this is about $41,000.
EXPENDITURES
Legislative Department
Town Manager Hoskovec reviewed the Legislative Department expenses and stated that the Town Clerk position and
the items broken out from the general services budget are listed in this department’s expenses.
Mayor Crispen opened the public hearing for comments from the public regarding the Legislative Department’s budget.
There were no comments from the public.
Commissioner Price commented that we now have a more realistic picture of the true cost to operate each department
since all costs are now being allocated to each department, which is a significant improvement.
Mayor Crispen asked about the election expense in the Legislative Department and stated that we have budgeted
$2,000 and are projected to spend $900 for the rest of this year and asked Town Clerk Masny why we put $2,000
into that account? Town Clerk Masny stated that each year, in June or July, we receive an estimate from the
Supervisor of Elections on the projected election cost and if we share an election with the county, the estimate is
lower than if we hold a stand-alone election. Mayor Crispen asked if we will have stand alone election or go in with
the county? Town Clerk Masny responded that at this point, we will be on the ballot with the county. Mayor Crispen
commented that he called Jim Walton, the Financial Manager with the Supervisor of Elections and he advised that the
election cost for Melbourne Beach this year should be $300-$400 and requested to reduce the line-item to $500. Town
Clerk Masny commented that the sample ballot advertisement should be close to $900 and after discussion, Mayor
Crispen suggested the election expense not be changed.
Arthur Belefant, 105 Oak Street, asked about the deprecation of buildings in the budget and commented that you do
not depreciate real estate. Finance Manager Matthews explained to Mr. Belefant that depreciation is a new state
requirement for budgets and explained that depreciation is included in each departmental budget and that it is
calculated as a percentage.
Commissioner Walters asked for answers to questions he raised last evening during the budget workshop regarding
proposed salaries as some are being recommended at more than a 7.5 percent increase. Town Manager Hoskovec
stated that all of the salaries will be available for review showing current salaries versus where they are recommended
for next year.
Executive Department
Town Manager Hoskovec stated that he moved the Town Clerk out of the Executive Department into the Legislative
Department and added the general service costs to it and there were no other changes.
Mayor Crispen opened the public hearing for comments from the public regarding the Executive Department budget.
There were no comments from the public.
Finance Department
Town Manager Hoskovec stated that the Finance Clerk position has been retained and the outside financial service has
been eliminated and that the depreciation has been added and general services items are included.
Paul Guglietta, 318 Fourth Avenue, commented that he is not in favor of the Finance Clerk position as it was
previously discussed to eliminate this position. Mr. Guglietta commented that we have 22 employees and a $2
million dollar budget and that he is not in favor of the position as it will cost the Town about $30,000 this year and
the he believes the funds can be better spent.
Commissioner Price commented that the Town’s previous finance data was not reliable and this year the finance
operation was brought back in house, the Town hired a new position of Finance Manager and also hired a new
Finance Clerk. Commissioner Price stated that these are bare-bones employees for the operation of a Finance
Department as you need two (2) people to handle the Town’s finances.
Commissioner Walters commented that he understands the arguments about retaining the Finance Clerk position, but
does not agree that the Town needs a Finance Clerk as the previous Town Manager hired a person with no municipal
government experience and decided to out source part of the finance work. Commissioner Walters commented that
to bring the finance back in house, we spent about $50,000 on new software, computers, training, etc. and the Town
Commission agreed to pay the price to hire a professional Finance Manager with years of municipal experience.
Commissioner Walters stated that by charter, the Town Manager can be the department head of the Finance
Department and be the checks and balances that are needed.
Legal Counsel
Town Manager Hoskovec stated that the Legal Counsel expenditures has remained relatively unchanged from the
previous budget.
Mayor Crispen opened the public hearing to comments from the public regarding the Legal Counsel budget. There
were no comments from the public.
Comprehensive Planning
Town Manager Hoskovec stated that Comprehensive Planning is up a little from the last budget due to expenses
within that type of work and that there are no other changes to this budget.
Mayor Crispen opened the public hearing to comments from the public regarding the Comprehensive Planning budget.
There were no comments from the public.
General Services
Town Manager Hoskovec stated that the Town has closed out this account with the exception of maintaining the
Contingency Fund.
Mayor Crispen opened the public hearing for comments from the public regarding the General Services budget.
There were no comments from the public.
Law Enforcement
Town Manager Hoskovec stated that there is one (1) capital expense in this year’s budget for the purchase of another
vehicle to bring the fleet back up to standard and it will be with the two (2) year lease purchase as done in this fiscal year.
Town Manager Hoskovec stated that again depreciation was added along with the general services allocations.
Mayor Crispen opened the public hearing for comments from the public regarding the Law Enforcement budget. There
were no comments from the public.
Fire Control
Town Manager Hoskovec stated that the major expense will be the fire engine, which is to be a Class A Pumper, and it
will be coming to the Town Commission for a lease purchase recommendation this fiscal year. Town Manager Hoskovec
stated that there is some dispute as to what is in the reserve for this vehicle, between $80,000, $100,000 or $120,000
and all paperwork is being tracked on this and $20,000 has been allocated in the general fund budget this year on this item.
Paul Guglietta, 318 Fourth Avenue commented that funds were allocated by previous Town Commissions for the purchase
of the fire truck and asked when the Town will have the final figure of the funds to be put toward the purchase of the fire truck?
Town Manager Hoskovec responded that the Town has gone through all of the audits and can only find $80,000 in
paperwork here and can only guarantee that $40,000 has been set aside since he has been Town Manager. Town
Manager Hoskovec stated that there was supposed to be another $20,000 set aside and $10,000 of that was utilized
by the previous Town Manager to pay for the siren system and we are reviewing all of the minutes to recall the direction
to reimburse the funds, but that he believes that the remainder of those funds was left in the general fund and that he
cannot give a time line on when the figure will be available.
Vice Mayor Smith commented that she has been pushing this item on the funds for this fire truck and she has been
back through all of the minutes and it is not in the minutes, the Town will have to listen to the meeting tapes. Vice
Mayor Smith stated that she has come up with $120,000, $10,000 was taken out and put toward the siren grant, the
Town Manager was instructed to put that $10,000 back and a review of the budget shows she put the $10,000 back
and also, that year put an extra $30,000 so with this year, there should be $120,000 in that fund. Vice Mayor Smith
stated the Town will find the money and it will take some time because the auditors lumped all of the Town’s special
projects together. Vice Mayor Smith stated that even though she will not be on the Commission after November,
she will make sure the Town finds the money or she will bring someone in to find it.
Mayor Crispen commented that in order for the Town Commission to get control over the budgeted funds, it has
eliminated the authority of the Town Manager to move money around in the budget without Town Commissioner
approval. Mayor Crispen commented that there does need to be an investigation and it appears that the Town
Manager removed money out of a reserve fund and used for another item. Mayor Crispen stated that the Town
Commission passed an ordinance recently that requires approval for the Town Manager to move funds around
in the budget.
Protective Services
Town Manager Hoskovec stated that other than the departmentalization and depreciation, there is no major change
to the Protective Services budget.
Mayor Crispen opened the public hearing for comments from the public regarding the Protective Services budget.
There were no comments from the public.
Public Works Department
Town Manager Hoskovec stated that $10,000 was added to the capital line item to install sand fences to attempt to
preserve the sand that was added to the beach and the general service items were added and there were no major
changes to this budget.
Mayor Crispen opened the public hearing for comments from the public regarding the Public Works Department budget.
There were no comments from the public.
Commissioner Walters commented that he has confidence in the laborers in this department, but, there is not much in
the way of management. Commissioner Walters stated that two (2) year’s ago, he stated that we need to work harder
on maintaining our Town buildings that have been neglected for years and are now in need of replacement or major repair.
Commissioner Walters commented that $900 was budgeted for maintenance on the Town’s buildings for the entire year.
Commissioner Walters commented that he is looking this year to see a big change in the way the Town property is
maintained.
Commissioner Wilson commented that the Finance Manager advised that the depreciation account on buildings is a plan
or time-line for keeping up the maintenance on the buildings.
Commissioner Price commented that the depreciation line is a wash account, not an expenditure of funds, it is a way
of showing the value of what we have here, even though it is maintained. Commissioner Price commented that the
depreciation line has been mandated by the state.
Recreation
Town Manager Hoskovec stated that the Recreation budget is stable with no outstanding changes other than the
departmentalization.
Mayor Crispen opened the public hearing of comments from the public regarding the Recreation budget. There were
no comments from the public.
Seth Stark, 410 Fifth Avenue commented about the depreciation on non-building improvements in the Recreation budget.
Finance Manager Matthews stated it is items such as the new park equipment.
Mayor Crispen stated that this concludes the General Fund expenses and that revenues over expenses are $20,750.
Special Funds
Finance Manager Matthews stated that we are transferring back from capital projects $105,000 into the General Fund
and reviewed the Town’s special funds such as Law Enforcement Trust Fund, Debt Service Fund, Fines & Forfeitures,
Police Education Fund, Stormwater Utility Fund, Capital Project Fund, Ocean Park Fund, Oak Street Pedway Fund,
and Ocean Avenue Beautification.
Mayor Crispen opened the public hearing for comments from the public regarding the Special Funds.
Paul Guglietta, 318 Fourth Avenue commented that on the municipal complex and asked if the Town anticipates
taking money out for the furniture? Finance Manager Matthews stated that we are anticipating the total project to
come in $100,000 under budget and the funds will be put back into the general fund. Mr. Guglietta stated that on the
Oak Street pedway project, he is concerned about the flooding on the north end of Oak Street regarding the project.
Town Manager Hoskovec advised that he has spoken with the Town Engineer and it is the intent to do exfiltration
trenching to put most of the groundwater back into the water table and advised that the Town cannot pay for this
out of the County Transportation Impact fees, which is funding the pedway project.
Commissioner Walters commented that the Stormwater Utility fee brings in $52,000 which is supposed to be used
towards stormwater utility repairs and we have $3 million in needed stormwater repairs. Commissioner Walters
commented that the Town Commission hired another employee and put $34,000 of the $52,000 from stormwater
funds toward an employee and has paid for street lights out of the gas taxes rather than it being used to pave the
streets. Commissioner Walters stated that the entire $52,000 in the stormwater utility fees needs to go to repair
stormwater utilities, not just $15,000.
Commissioner Price commented that our first charge was to get our financial house in order, once this is done,
we can be in a position to set priorities on projects such as stormwater utility repairs..
There being no further comments, Mayor Crispen asked for a motion to adopt the tentative budget.
COMMISSIONER PRICE MOVED, SECOND COMMISSIONER WILSON TO ADOPT THE TENTATIVE FISCAL YEAR
2003/2004 MUNICIPAL BUDGET.
VOTE: COMMISSIONER PRICE, AYE. COMMISSIONER WILSON, AYE. VICE MAYOR SMITH, AYE.
MAYOR CRISPEN, AYE. COMMISSIONER WALTERS, NAY. MOTION CARRIED.
II. ADJOURNMENT
COMMISSIONER WALTERS MOVED, SECOND COMMISSIONER WILSON TO ADJOURN.
VOTE: ALL AYES. MOTION CARRIED.
The budget public hearing of the Town Commission of the Town of Melbourne Beach, Florida adjourned at 8:35 p.m.
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MARK J. CRISPEN, MAYOR
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CYNTHIA E. MASNY, CMC
TOWN CLERK
Note: a mechanical recording has been made of the foregoing procedures of which these minutes are a
part and is on file in the office of the Town Clerk.
PURSUANT TO SECTION 286.0105, FLORIDA STATUTES, THE TOWN HEREBY
ADVISES THE PUBLIC THAT: If a person decides to appeal any decision made by the
Town Commission with respect to any matter considered at its meeting, he will need a
record of the proceedings and that for such purpose, affected persons may need to insure
that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based. This notice does not constitute
consent by the Town for the introduction or admission into evidence of otherwise
inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not
otherwise allowed by law.
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