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02-06-12 Workshop MeetingCITY COMMISSION CITY OF DELRAY BEACH, FLORIDA WORKSHOP MEETING -MONDAY, FEBRUARY 6, 2012 6:00 P.M. DELRAY BEACH CITY HALL The City will furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits of a service, program, or activity conducted by the City. Contact Doug Smith at 243-7010, 24 hours prior to the program or activity in order for the City to reasonably accommodate your request. Adaptive listening devices are available for meetings in the Commission Chambers. WORKSHOP AGENDA 1. Fire Assessment Fee Alternatives 2. Commission Comments Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting, such person will need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is based. The City neither provides nor prepares such record. 1 City of Delray Beach Memo To: City Commission From: David T. Harden, City Manager CC: Date: 2/6/2012 Re: Fiscal 2012 $1.6 Million Budget Cut Presented below are expense items in the current budget which the Commission may choose to cut as well as a potential revenue increase in order to offset the proposed reduction in Fire Service Fee revenue. We are still looking for additional line item cuts in order to avoid the need to impose furlough days on our employees, so I may have additional suggestions for your consideration Monday evening at the Work Session. Items are listed in suggested priority order. This list was developed based on my understanding that the Commission did not wish to close any facilities or lay off City employees, and that the Capital Improvement Program should be cut significantly. 1. $533,000 Prior years’ surplus, since four months of the fiscal year are past 2. 20,606 HR salary savings 3. 201,650 Property insurance premium refund 4. 33,970 Savings on public safety software lease financing 5. 35,517 Bank of America settlement 6. 18,695 Charge non-city events 100% of City cost, or 50% for OSS and DMC (now 35%) 7. 35,000 Defer Parks Master Plan update. 8. 3,995 Public Art 9. 123,131 Public Art project reserve 10. 87,000 Fire Department ramp and floor repairs and equipment replacement 11. 50,000 Reduce Building Maintenance 12. 50,000 Defer City Hall chiller upgrade 13. 20,000 Neighborhood enhancements Revised Information for Item WS.1  Page 2 14. 75,000 Reduce PC replacement 15. 210,450 Defer Beach Pavilion replacement 16. 50,000 Reduce data cabling and switches 17. 51,986 Other line item cuts $1,600,000 Subtotal 18. 97,593 Suspend Deferred Compensation 3% match for managers and key employees 19. 78,100 Fourth of July celebration 20. 131,045 Two furlough days for City employees, excluding Police and Fire $1,906,738 Total Revised Information for Item WS.1 1 City of Delray Beach Memo To: City Commission From: David T. Harden, City Manager CC: Date: 2/6/2012 Re: Fire Service Fee Options Presented below are various options for the Fire Service Fee, showing the revenue projected at a variety of fee levels. The Residential revenue at the $85 flat rate or the tiered rate proposed would be approximately $2,662,838 (100%). You can see the difference at various fee levels. < 2,000 Sq. Ft. 26,147 units @$70 = $1,830,290 > 2,000 Sq. Ft. 6,555 units @$100 = 655,500 for a total of $2,485,790 (93%) < 2,000 Sq. Ft. 26,147 units @$52 = $1,359,644 > 2,000 Sq. Ft. 6,555 units @$85 = 557,175 for a total of $1,916,819 (72%) < 2,000 Sq. Ft. 26,147 units @$38 = $993,586 > 2,000 Sq. Ft. 6,555 units @$52 = 340,860 for a total of $1,334,446 (50%) Or, looking at flat rates: 32,707 units @$60 = $1,962,120 (74%) 32,707 units @$52 = $1,700,504 (64%) 32,707 units @$42.50 = $1,389,835 (52%) On the next page is a table showing the Non-residential Fire Service Fees adjusted to produce the same percentages of revenue as are shown above for the Residential Fire Service Fee. Non Residential Fire Assessment Summary Tiered Rate Structure Max Sq.Ft of 100% 93% 74% 72% 64% 52% 50% Range 1,000,000 3 ,552 3,303 2,628 2,557 2,273 1,847 1,776 50,000 2 ,960 2,753 2,190 2,131 1,894 1,539 1,480 40,000 2 ,368 2,202 1,752 1,705 1,516 1,231 1,184 30,000 1 ,776 1,652 1,314 1,279 1,137 924 888 20,000 1 ,184 1,101 876 852 758 616 592 15,000 888 8 26 657 639 568 462 444 10,000 592 5 51 438 426 379 308 296 8 ,000 474 4 41 351 341 303 246 237 6 ,000 355 3 30 263 256 227 185 178 4 ,000 237 2 20 175 171 152 123 119 3 ,000 178 1 66 132 128 114 93 89 2 ,000 118 1 10 87 85 76 61 59 1 ,000 59 55 44 42 38 31 30 500 31 29 23 22 20 16 16 1 SECTION 6. HARDSHIP WAIVERS OR DEFERRALS. (A) The City Commission of the City of Boynton Beach, Florida hereby continues its program for qualified individuals who need financial assistance to pay all or part of the Fire Rescue Assessment levied on their property or who seek deferral of payment of all or part of the Fire Rescue Assessment on their property. (B) The City's program for financial assistance shall be commonly referred to as H.E.L.P., Hardship Extension Loan Program. The following types of financial assistance are available, based upon need: 1. Relief from all payments of an annual Fire Rescue Assessment. 2. Relief from a portion of payments of an annual Fire Rescue Assessment. 3. Deferral of payments of an annual Fire Rescue Assessment. 4. Deferral of a portion of payments of an annual Fire Rescue Assessment. (C) The following individuals are eligible for financial assistance. 1. Residential Property Owners who meet 2011 HHS Poverty Guidelines. 2. Residential property owners that are exempt from ad valorem taxation pursuant to the following Florida Statutes are eligible to apply for a Hardship Waiver or Deferral: a. Section 196.081, Florida Statutes (totally disabled veterans and surviving spouses of veterans); b. Section 196.091, Florida Statutes (disabled veterans confined to wheelchairs); c. Section 196.101, Florida Statutes (totally and permanently disabled persons). 3. Residential Property Owners that qualify for the additional homestead exemption for persons 65 and over authorized pursuant to Section 196.075, Florida Statutes are also eligible to apply for the Hardship Waiver. 4. Residential Property Owners that are qualified under the Florida Homestead Property Tax Deferral Act, Section 197.242, et al., Florida Statutes. (D) Eligible Residential Property Owners may submit an application for a Hardship Waiver or Deferral, on a form prepared by the City, with the Finance Department. The Application shall include the following: 1. Documentation demonstrating eligibility for the Hardship Waiver or Deferral through one of the criteria from exemptions listed in Section C above; 2. A copy of the Tax Bill for the subject property; 2 3. Description of the facts and circumstances of the hardship. (E) All Applications for the Hardship Waiver or Deferral must be received by the City's Finance Department on or before November 1 of each year in order to be considered for the currently billed assessment. For example, all Hardship Waiver or Deferral Applications for the Fire Rescue Special Assessment for the Fiscal Year commencing October 1, 2011, must be received on or before November 1, 2011. Once received, all applications shall be reviewed by a Hardship Waiver Review Committee: 1. The Committee shall be comprised of three (3) members: a. City Manager, or his or her designee; b. City's Finance Director, or his or her designee; and c. Member appointed by City Commission. 2. The Committee shall review the facts and circumstances to determine whether a hardship exists to warrant a partial or total waiver of the special assessment levied upon the applicant's real property or a deferral of payment of such. 3. The concurrence of a majority of the members of the Committee shall be necessary to grant a partial or total, waiver or deferral of payment of the special assessment. 4. The decision of the Committee is final. (F) The Committee shall render a written decision and provide such to the applicant. (G) If a partial or total waiver or deferral is granted by the Committee, the Finance Director shall ensure appropriate documentation is provided to the Tax Collector as to the revised amount of the assessment as to the applicant. (H) An applicant may apply for a Hardship Waiver as to one property only. (I) An applicant must apply for the Hardship Waiver on an annual basis. (J) A deferral may be granted for no longer than the end of the then current fiscal year. (K) When financial assistance is granted pursuant to the H.E.L.P. program, any shortfall in the expected Fire Rescue Assessment proceeds due to any reduction or exemption from payment of the Fire Rescue Assessments authorized by this Section shall be supplemented by any legally available funds, or combination of such funds, and shall not be paid for by proceeds or funds derived from the Fire Rescue Assessments. 1 City of Delray Beach Memo To: City Commission From: David T. Harden, City Manager CC: Date: 2/6/2012 Re: Fiscal 2012 $1.6 Million Budget Cut Presented below are expense items in the current budg et which the Commission may choose to cut as well as a potential revenue increase in order to of fset the proposed reduction in Fire Service Fee revenue. We are still looking for a dditional line item cuts in order to avoid the need to impose furlough days on our employees, so I may have additional suggestions for your consideration Monday evening at the Work Session. Items are listed in suggested priority order. This list was developed based on my understanding that the Commission did not wish to close any facilities or lay off City employees, and that the Capit al Improvement Program should be cut significantly. 1. $533,000 Prior years’ surplus, since four months of the fiscal year are past 2. 20,606 HR salary savings 3. 201,650 Property insurance premium refund 4. 33,970 Savings on public safety software lease finan cing 5. 35,517 Bank of America settlement 6. 18,695 Charge non-city events 100% of City cost, or 50% for OSS and DMC (now 35%) 7. 35,000 Defer Parks Master Plan update. 8. 3,995 Public Art 9. 123,131 Public Art project reserve 10. 87,000 Fire Department ramp and floor repairs and e quipment replacement 11. 50,000 Reduce Building Maintenance 12. 50,000 Defer City Hall chiller upgrade 13. 20,000 Neighborhood enhancements Revised Information for Item WS.1 z Page 2 14. 75,000 Reduce PC replacement 15. 210,450 Defer Beach Pavilion replacement 16. 50,000 Reduce data cabling and switches 17. 51,986 Other line item cuts $1,600,000 Subtotal 18. 97,593 Suspend Deferred Compensation 3% match for man agers and key employees 19. 78,100 Fourth of July celebration 20. 131,045 Two furlough days for City employees, exclu ding Police and Fire $1,906,738 Total Revised Information for Item WS.1 1 City of Delray Beach Memo To: City Commission From: David T. Harden, City Manager CC: Date: 2/6/2012 Re: Fire Service Fee Options Presented below are various options for the Fire Service Fee , showing the revenue projected at a variety of fee levels. The Residential revenue at the $85 flat rate or the tiered rate proposed would be approximately $2,662,838 (100%). You can see the difference at various fee levels. < 2,000 Sq. Ft. 26,147 units @ $70 = $1,830,290 > 2,000 Sq. Ft. 6,555 units @ $100 = 655,500 f or a total of $2,485,790 (93%) < 2,000 Sq. Ft. 26,147 units @ $52 = $1,359,644 > 2,000 Sq. Ft. 6,555 units @ $85 = 557,175 for a total of $1,916,819 (72%) < 2,000 Sq. Ft. 26,147 units @ $38 = $993,586 > 2,000 Sq. Ft. 6,555 units @ $52 = 340,860 for a total of $1,334,446 (50%) Or, looking at flat rates: 32,707 units @ $60 = $1,962,120 (74%) 32,707 units @ $52 = $1,700,504 (64%) 32,707 units @ $42.50 = $1,389,835 (52%) On the next page is a table showing the Non-resid ential Fire Service Fees adjusted to produce the same percentages of revenue as are shown ab ove for the Residential Fire Service Fee. Non 1   SECTION 6. HARDSHIP WAIVERS OR DEFERRALS. (A) The City Commission of the City of Boynton Beach, Florida hereby continues its program for qualified individuals who need financial assistance to pay all or part of the Fire Rescue Assessment levied on their property or who seek deferral of payment of all or part of the Fire Rescue Assessment on their property. (B) The City's program for financial assistance shall be commonly referred to as H.E.L.P., Hardship Extension Loan Program. The following typ es of financial assistance are available, based upon need: 1. Relief from all payments of an annual Fire Rescue Assessment. 2. Relief from a portion of payments of an annual Fire Rescue Assessment. 3. Deferral of payments of an annual Fire Rescue Assessment. 4. Deferral of a portion of payments of an annual Fire Rescue Assessment. (C) The following individuals are e ligible for financial assistance. 1. Residential Property Owners who meet 2011 HHS Poverty Guidelines. 2. Residential property owners that ar e exempt from ad valorem taxation pursuant to the following Florida Statutes are eligib le to apply for a Hardship Waiver or Deferral: a. Section 196.081, Florida Statutes (totally disabled veterans and surviving spouses of veterans); b. Section 196.091, Florida Statutes (disabled veterans confined to wheelchairs); c. Section 196.101, Florida Statutes (totally and permanently disabled persons). 3. Residential Property Owners that qualify for the additional homestead exemption for persons 65 and over authorized pursuant to Section 196.075, Florida Statutes are also eligible to appl y for the Hardship Waiver. 4. Residential Property Owners that are qualified under the Florida Homestead Property Tax Deferral Act, Section 197.242, et al., Florida Statutes. (D) Eligible Residential Property Owners may s ubmit an application for a Hardship Waiver or Deferral, on a form prepared by the City, with the Finance Department. The Application shall include the following: 1. Documentation demonstrating eligibil ity for the Hardship Waiver or Deferral through one of the criteria from exemptions listed in Section C above; 2. A copy of the Tax Bill for the subject property; 2   3. Description of the facts an d circumstances of the hardship. (E) All Applications for the Hardship Waiver or Deferral must be received by the City's Finance Department on or before November 1 of each year in order to be considered for the currently billed assessment. For example, all Hardship Waiver or Deferral Applications for the Fire Rescue Special Assessment for the Fiscal Year commencing October 1, 2011, must be received on or before November 1, 2011. Once received, all applications shall be review ed by a Hardship Waiver Review Committee: 1. The Committee shall be comprised of three (3) members: a. City Manager, or his or her designee; b. City's Finance Director, or his or her designee; and c. Member appointed by City Commission. 2. The Committee shall review the facts and circumstances to determine whether a hardship exists to warrant a partial or total waiver of the special assessment levied upon the applicant's real property or a deferral of payment of such. 3. The concurrence of a majority of the members of the Committee shall be necessary to grant a partial or total, waiver or deferral of payment of the special assessment. 4. The decision of the Committee is final. (F) The Committee shall render a written decisi on and provide such to the applicant. (G) If a partial or total waiver or deferral is granted by the Committee, the Finance Director shall ensure appropriate documentati on is provided to the Tax Collector as to the revised amount of the assessment as to the applicant. (H) An applicant may apply for a Hardship Waiver as to one property only. (I) An applicant must apply for the Hardship Waiver on an annual basis. (J) A deferral may be granted for no longer than the end of the then current fiscal year. (K) When financial assistance is granted pursuant to the H.E.L.P. program, any shortfall in the expected Fire Rescue Assessment proceeds due to any reduction or exemption from payment of the Fire Rescue Assessments authorized by this Section shall be supplemen ted by any legally available funds, or combination of such funds, and shall not be paid for by proceeds or funds derived from the Fire Rescue Assessments.