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02-06-12 Workshop Meeting MinutesWORKSHOP MEETING FEBRUARY 6, 2012 A Workshop Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Mayor Nelson S. McDuffie in the City Commission Chambers at City Hall at 6:00 p.m., on Monday, February 6, 2012. Roll call showed: Present - Commissioner Thomas F. Carney, Jr. Commissioner Jay Alperin Commissioner Adam Frankel Commissioner Angeleta E. Gray Mayor Nelson S. McDuffie Absent -- None Also present were - David T. Harden, City Manager Brian Shutt, City Attorney Chevelle D. Nubm, City Clerk Mayor Nelson S. McDuffie called the workshop meeting to order and announced that it had been called for the purpose of considering the following Item. WORKSHOP MEETING AGENDA 1. Fire Assessment Fee Alternatives I& David T. Harden, City Manager, presented this item discussing possible budget cut options to get to a $1.6 million reduction in expense in this year's budget and additional revenue; a combination of the two. He recommended, since we are a third of the way into the budget year, taking 1/3 of this amount ($533,000) from prior year's surplus. He went through the list of options for budget cuts. Mr. Harden discussed three different options for a two tiered system and a flat rate option at $60.00 for the fire assessment fee. He also referenced Boynton Beach's hardship waiver language and process regarding fire assessment fee payments. Dr. Alperin stated he does not feel there are enough budget cuts before going to a compromise. He stated he also does not see any cuts for freezing positions in Police or reduction of staffing from 33 to 31 in Fire - Rescue. Mr. Harden stated he does not recommend those and explained why. He stated everything on that was on the initial list is there for Commission to consider. Dr. Alperin stated every capital project that is not underway should be delayed until October of the next fiscal year. He stated we probably can do it all. Consequently, it will be tough. He stated he does not want to see anyone lose a job but if it happens he feels all positions top and bottom should be looked at. Dr. Alperin stated a fire assessment fee can be instituted but it needs to go in with the budget. He stated Commission made a mistake and should bite the bullet and delay things for eight or nine more months and fix it. He stated the fee should be part of the fix but the millage should be compensated with that too. He stated the fire fee should not be brought back at this point in the budget year. Mr. Carney stated he agrees with what has been said by Dr. Alperin. He stated a budget should not be approved without having all funding sources in place. Commission made a mistake in going forward with the anticipation that a fire assessment fee could be used to balance the budget. He stated Commission's role is to set policy. He discussed the city's reserves and stated we have a strong tag base and feels we should look at taking a million or so out of reserves to look at this, a million or so from capital improvement projects and a million of cuts internally through staff furloughs, curbing hiring, etc. Mr. Carney stated he does not support a fire assessment fee at this time because we have enough internally within our own current city budget, capital improvement projects and reserves to meet this immediate budget crisis. He stated he is bothered by the fact that there are 4,000 homes in Delray that pay nothing for their fire services and this does need to be addressed. Mrs. Gray stated she is not in agreement with the fire assessment fee because it is a tax. She is glad the City Manager and staff have looked at other things that can be cut and feels the capital improvement projects can be put on hold for a year. She stated other things can be cut as well. Mr. Frankel is in agreement with comments that mistakes have been made but feels others are being made tonight. He stated he was prepared to come to some compromise tonight but does not see any willingness. He stated he is ready to go through the list since the majority of the Commission feels we should cut. Mayor McDuffie stated all of five of them voted on the budget that included the fire fee. He stated we also bargained with the Police, Fire and the SEIU to give us money. He stated the Commission has a responsibility to the community and to the people who elected them. However, the city cannot be run without the people who work for the city. He stated everyone who works for the city takes a risk, and they should be rewarded based on the risk they take. He discussed having trust in the Mayor and Commission. He stated the budget was set four (4) months ago and the fire fee was a part of the budget and it was not a surprise. He stated no one came to the microphone to speak on this during the budget hearings. Mayor McDuffie stated he agrees that there are other ways to get from where we are now to an approved budget. The City Manager asked to take up to $1.5 million out of the prior year's surplus and get the balance from other places. Dr. Alperin stated he feels it can be done with up to $1 million and discussed cuts as well as delaying capital projects. Mrs. Gray stated she agrees with Mr. Carney and Dr. Alperin. Mr. Frankel stated he was looking for some sort of compromise and feels he has not seen that tonight. He stated he agrees with Mayor McDuffie. He stated he does not blame Mr. Harden for this speaking in regards to some internet postings he has seen. He stated he blames the Commission. Mr. Frankel stated he supports taking up to $1.5 million out of reserves. Mrs. Gray stated she too supports taking up to $1.5 million out of reserves. Mr. Carney stated he supports taking up to $1.5 million out of reserves. Dr. Alperin stated this can be done with up to $1 million out of reserves and stated he hates touching reserves. Mayor McDuffie stated let staff do their job and agrees with taking up to $1.5 million out of reserves. Mrs. Gray asked is there something else that Dr. Alperin suggests. Dr. Alperin reiterated that there are things that can be cut without touching personnel. The Consensus of the Commission was to allow the City Manager to take up to $1.5 million out of reserves and make other cuts as he sees fit. 2 February 6, 2012 Mr. Harden stated staff will bring the budget arnenchnent back to Commission on February 21, 2012. Mayor MCDuffte adjourned the Workshop Meeting at 6:50 p.m. City Clerk The undersigned is the City Clerk of the City of Delray Beach, Florida, and the information provided herein is the Minutes of the Workshop Meeting of the City Commission held on Monday, February 6, 2012, which Minutes were formally approved and adopted by the City Commission on February 21.2012. _J. City Clerk NOTE TO READER: If the Minutes you have received are not completed as indicated above, this means they are not the official Minutes of the City Commission. They will become the official Minutes only after review and approval, which may involve amendments, additions or deletions to the Minutes as set forth above. 3 February 6, 2012