07-31-12 City Commission Workshop MinutesWORKSHOP MEETING
JULY 31, 2012
A Workshop Fleeting of the City Commission of the City of Delray Beach, Florida, was called to
order by Mayor Nelson S. McDuffie in the Commission Chambers at City Hall at 3:09 p.m., on
Tuesday, July 31, 2012.
Roll call showed:
Present - Commissioner Alson Jacquet
Commissioner Adam Frankel
Commissioner Angeleta E. Gray
Mayor Nelson S. McDuffie
Absent - Commissioner Thomas F. Carney, Jr.
Also present were - David T. Harden, City Manager
Brian Shutt, City Attorney
Chevelle D. Nubin, City Clerk
Mayor 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. FY 2013 Budget Discussion
Mr. David T. Harden, City Manager, presented this item. He discussed the projected revenues
for the city at the 2012 Millage Rate, Rollback Rate, Maximum Majority Rate and Supermajority
Rate. He does not recommend the Maximum Majority or Supermajority rates. He stated each
tenth of a mill equals $590,760 with $501,080 netted to the city. He also covered the projected
expenses and the balance needed at the current millage rate ($4,021,650). Mr. Harden advised
the Commission of the following options: (1) additional budget cuts, (2) increase revenue, or (3)
use more surplus. He stated he does not recommend that Commission use more surplus other
than the $1.6 million that has been suggested to fund the increase in capital. Mr. Harden also
discussed the email received from Ms. Christina Morrison regarding a fire tax. He stated he is
asking for direction from the Commission regarding how they would like to go about closing the
gap in order to adopt a proposed millage on Friday to send to the Property Appraiser's office.
Mrs. Gray asked if the only option Commission has to increase revenue is afire fee. Mr. Harden
stated that the Commission can increase millage and if they want to do so, it would be by half a
mill. He stated these are two possibilities for increasing revenue.
Mr. Frankel stated his position has not changed since last time we had the opportunity to do the
budget. He asked if there are still 600 property owners who pay zero in property taxes and 6,000
property owners who pay $200 or less. He is in favor of keeping the millage at the same rate or
decreasing it and instituting a flat fire fee in order to get the 6,600 property owners that pay $200
or less to use city services to contribute. He stated he would like to see a flat rate for the fire
service fee or as a compromise position a two- tiered rate with no change in the millage rate or
hopefully a decrease in the millage.
Mayor McDuffie asked about the recommended fire service fee and the tenth of a mill reduction
in the millage. Mr. Harden stated this is assuming an 85% collection rate. Mayor McDuffie
stated he is not in favor of the Maximum Majority or Supermajority rate. Mr. Harden stated staff
would never suggest those but was providing the numbers for information.
Mrs. Gray asked are there any other ways or means to cut the budget. Mr. Harden stated this is
what Commission would need to look at. He mentioned the Priority Based Budgeting Materials
and discussed setting the mMage on Friday and additional opportunities to look at the budget.
He reiterated that once the millage is set that is the cap, and it cannot be increased.
Mr. Jacquet stated he echoes firs. Gray's concerns. He stated the options they have are the
millage options and the fire fee. He asked what the flat rate means for people who are currently
paying their fair share of taxes. Mr. Harden explained how the fire fee would work. Mr. Jacquet
asked what the other options are. He stated he thinks we can make certain cuts. Mr. Jacquet
stated he is ready to help in any way he can with finding places to cut. He stated he would hate
to think these are the only options.
Ms. Terrill Pyburn, assistant City Attorney, stated we may need to do an updated study
regarding the Fire assessment Fee and it takes time to comply with the requirements of the
Statutes to put everyone on notice. She stated this could easily take sixty (60) days.
Mr. Frankel asked why we would need to do another study.
Ms. Pyburn stated Mr. Brian Shutt, City Attorney, had expressed concerns that we need to look
at the expenditures for the upcoming year and make sure everything is up to date. Mr. Harden
stated the thneframe coincides with the Budget cycle.
Mrs. Gray stated she is not interested in another tax and she will not support a fire assessment
fee.
Mr. Harden stated staff needs direction on what the Commission would want to cut.
Mayor McDuffie commented regarding the budget and stated we have cut approximately 10
;pillion dollars over the last six years. He discussed setting a tentative millage rate on Friday
which is the deadline for the Property Appraiser's office and TRIM notices. He stated he would
be in favor of a fire fee with a reduction of a tenth of a mill. He stated this treats people very
fairly.
Mr. Jacquet stated the only way he would be in favor of the fire fee is if we lover the millage in a
way that balances it to where people who are paying their fair share gets that break in the
millage.
Discussion continued between Commission and staff. Mr. Harden stated staff will be glad to
provide any other information the Commission would like.
Mr. Jacquet asked about Special Events. Mr. Harden stated staff will provide that information.
Mayor McDuffie stated we have increased fees also.
Mr. Jacquet inquired about fees for cabs. Mr. Harden and Ms. Pyburn stated the County
regulates cabs.
Mr. Frankel stated he supports a 7.19 millage rate or lower and a fire fee.
Mrs. Gray asked about early retirement. Mr. Harden stated we could offer this again and he will
provide information on the last time we did this.
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July 31, 2012
Mayor McDuffie asked Commission if they would like to meet individually with Mr. Harden.
Mayor McDuffie stated he will meet with Mr. Harden.
Mayor McDuffie adjourned the Workshop Meeting at 3:40 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 Tuesday,
July 31, 2012, which Minutes were formally approved and adopted by the City Commission oil
August 7, 2012.
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.
July 31, 2012