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09-15-88SpMtg252 SEPTEMBER 15, 1988 A Special Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Mayor Doak S. Campbell in the Commission Chambers at City Hall at 7:12 P.M., Thursday, September 15, 1988. Roll call showed: Present - Commissioner Patricia Brainerd Commissioner Marie Horenburger Commissioner Mary McCarty Commissioner Jimmy Weatherspoon Mayor Doak S. Campbell ~ Absent - None Also present were - City Manager Walter O. Barry and Assistant City Attorney Jeffrey Kurtz. Mayor Campbell called the meeting to order and announced ithat this meeting has been called for the purpose of: (1) Holding a PUblic Hearing and the adoption of Resolution No. 51-88 to tentatively le~y a tax on all properties within the City of Delray Beach; and (2) Holding a Public Hearing and adoption of Resolution No. 52-88 making tentative appropriations of sums of money for all necessary expenditures of the City from October 1, 1988, to September 30, 1989. 1. Tentatively Levying of Tax Rate. Resolution No. 51-88, rela- tive to tentatively levying a tax on all properties within the City of Delray Beach is before the Commission for consideration. Prior to consideration of passage of this resolution, a public hearing has been scheduled to be held at this time. The City Manager presented Resolution No. 51-88: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, TO TENTATIVELY LEVY A TAX ON ALL PROPER- TIES WITHIN THE CITY OF DELRAY BEACH, FLORIDA, FOR MAINTENANCE AND OPERATION, AND TO TENTATIVELY LEVY A TAX FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON BONDED INDEBTEDNESS, AND TO ALLOCATE AND APPROPRIATE SAID COLLECTIONS THEREUNDER. (Copy of Resolution No. 51-88 is on file in the official Resolution Book) Assistant City Attorney Kurtz read the entire resolution. Mayor Campbell stated there are two separate public hearings scheduled to be held; however, if anyone wants to make a general state- ment about the budget, rather than make them get up twice, they may come forward at this time and make any statements on both items. 2. Tentatively Levying. Appropriations for the 1988/89 Budge.t. Resolution No. 52-88, relative to making tentative appropriations of sums of money for all necessary expenditures of the City from October 1, 1988, to September 30, 1989, is before the Commission for consideration. Prior to consideration of passage of this resolution, a public hearing has been scheduled to be held at this time. The City Manager presented Resolution No. 52-88: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, MAKING TENTATIVE APPROPRIATIONS OF SUMS OF MONEY FOR ALL NECESSARY EXPENDITURES OF THE CITY OF DELRAY BEACH, FLORIDA, FOR THE PERIOD FROM THE 1ST DAY OF OCTOBER, 1988, TO THE 30TH DAY OF SEPTEMBER, 1989; TO PRESCRIBE THE TERMS, CONDITIONS AND PROVISIONS WITH RESPECT TO THE ITEMS OF APPROPRIATIONS AND THEIR PAYMENT; 253 AND TO REPEAL ALL RESOLUTIONS AND ORDINANCES WHOLLY IN CONFLICT WITH THIS RESOLUTION AND ALL RESOLUTIONS AND ORDINANCES INCONSISTENT WITH THIS RESOLUTION TO THE EXTENT OF SUCH INCONSISTENCY. (Copy of Resolution No. 52-88 is on file in the official Resolution Book) Assistant City Attorney Kurtz read the caption of the resolu- tion. Public Hearings were held having been legally advertised in compliance with the laws of the State of Florida and the Charter of the City of Delray Beach, Florida. James Bowen, 116 Marine Way, stated that as President of PROD he has been asked by the membership to speak this evening. He hereby challenges staff and Commission to get together and have a clear finan- cial picture of this City and its agencies. Mr. Bowen advised he believed each Commissioner should have an individual rundown on the activities of the CRA from its start to the present, its yearly income and expense, its commitments already made for the future, its proposed financial arrangements and a projection for the next 10 years. He also made reference to the capital improvement program and the 3.1 million dollar line of credit, stating it is his thinking that the City canlonly budget expenses at this time for necessary repair and/or improvements of services vital to necessities, such as water, sewer, drainageI and streets. He asked how and when the City planned to pay back the line of credit; would they ask for a bond issue to repay this when the money has already been spent with no input from the taxpayers or will the utility tax be raised again. Mr. Bowen commented that the City does not need a larger Commission Chamber; overflow crowds only occur a few times a year. Jean Beer, 945 Tropic Boulevard, speaking for herself, made reference to Visions 2000 and the statements regarding capital improve- ments. She is personally opposed to the 3.1 million dollar line of credit, stating she does not think there is anything in there that is so critical that the City has to move on it before the final improvement plan is drawn up. She concurred with Mr. Bowen's comments with regard to the basics, i.e., water, sewer, drainage, streets, etc., and did not believe a new Commission Chamber was needed. Ms. Beer also opposed tearing down the buildings on Swinton Avenue for a parking lot, stating that they could be moved and still provide housing for these people. Joan Gindlesperger, Executive Director of the Deaf Service Center, thanked the Commission for the support that was given last year for the 4,500 hearing impaired residents of the City. They have in- creased services 66% in the past year and hope that the City will continue to support this agency. Paul Smith, 924 Jasmine Drive, asked if it is legal to get a line of credit without any statement to the taxpayers as to where the funding is going to come from. The City Manager advised that they would have to identify a source of funding that is within the line of credit that is being extended; they have talked with an investment banker who identified a way in which the line of credit could be extended without any debt service impact for approximately 18 months. They would, however, have to identify where the future source of funding would be. David Huddleston, Finance Director, advised that at the conception of the borrowing they would have to identify a stream of income or a general pledge of fund balance or some pay back methodology. Whatever amount is borrowed would have an implied pay back rate. Upon question by Mr. Smith, the City Manager advised that between now and the second public hearing on the 27th of September the financing questions for this particular element will be addressed. Upon question by Mr. Bowen, Mr. Huddleston stated the budget process this evening would just be approving the allocation for the line item; it would not make a commitment for the types of projects nor the pledge. That would have to come at a formal meeting approving any agreement to borrow any funds. -2- 9/15/88 254 Helen Co0persmith, representing PROD, asked how will informa- tion come to them. Mayor Campbell advised they will make sure PROD will have as much information as possible prior to the public hearings; if he or the City Manager were invited to PROD he is sure they would explain as much as possible in advance as t© where this Commission is going. Charles Smith, 2110 Spanish Tra~l, clarified that the 3.1 million dollar line of credit is for City Hall expansion, renovation of Old School Square, Veteran's Park, tennis center, roads and Sanitation, acquisition of park land and golf course facilities. He stated he felt each of these items should be viewed on their own merit rather than grouping them together in the 3.1 bond issue. Discussion followed on the millage rate and refinancing of the bonds. Ms. Horenburger commented that it has been a widespread theorY in the State of Florida to not burden the current and existing taxpayers with these improvements, but spread it out so that future residents are paying for those things they will then continue to be enjoying; that is why bonds have been so popular. Paul Smith stated he wished to go on record regarding the~wish list the Commission has come up with for the expenditure of the~ 3.1 million dollars. He questioned why the City cannot address this e~pen- diture and take care of the things that need to be done right now. For instance, take care of the streets, drainage, water mains and sewers; address the immediate needs of the people. Ms. Coopersmith stated that while she agrees with what has been said, could the Commission use some of this money for the tennis and golf course; that is also a part of an asset of Delray Beach. The public hearing on Resolution No. 51-88 was closed. Mr. Weatherspoon moved for the adoption of Resolution No. 51-88, seconded by Ms. Brainerd. Upon roll call the'Commission voted as follows: Ms. Brainerd - Yes; Ms. Horenburger - Yes; Ms. McCarty - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. The public hearing on Resolution No. 52-88 was closed. Ms. Brainerd moved for the adoption of Resolution No. 52-88, seconded by Ms. Horenburger. Upon roll call the Commission voted as follows: Ms. Brainerd - Yes; Ms. Horenburger - Yes; Ms. McCarty - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. Before roll call the following discussion was had: Ms. Horenburger stated it has come to her attention in talking about the water and sewer hookups on the annexed properties that it had been their intention, as she recalls, to amortize the payments over time when they increased the fee. The City Manager commented this has not been developed yet; the Finance Director has been working with the financial advisor in analyzing the bond covenants and, in talking with the City Attorney, one of the options they are strongly considering is to try and find some private financial institutions to assist the City. Upon question by Ms. Horenburger, Mr. Huddleston advised the impact of allowing any number of months of installments, that same treatment would have to be allowed for all customers of the system; potentially, if everyone exercised that ability the City would have about a 1.5 million dollar cash flow loss to the water and sewer fund. Discussion followed. Ms. Horenburger inquired if those resi- dents who have been annexed will still be obligated to the County's utility bonds and also to the City's. She felt they need to workshop this and explore what the City is doing creatively to accommodate these people. -3- 9/15/88 255 Ms. Horenburger commented that with regard to holding the meeting this evening, they did some maneuvering since they could not have their meeting near the County's budget hearing; also, there are religious high holidays involved. Mr. Weatherspoon commented the only area of the budget that he has a problem with is the line of credit portion; he is not in disagree- ment with the concept, only with some of the things that have been included on the list. He would encourage the Commission to take the 3.1 million dollar line of credit out of the budget altogether, come up with a prioritized list and move forward. Ms. Horenburger stated apparently somewhere in the Federal Government there are some funds available for improvements to City Hall since we are in an Enterprise Zone, a Community Redevelopment area and a pocket of poverty. There are funds for improvement of public buildings; Riviera Beach took advantage of it some years back and so did West Palm Beach and she would hope they could look at this. Ms. McCarty concurred with Mr. Weatherspoon's statements. The two items that Ms. Coopersmith mentioned, the tennis courts and golf course, are two items that have potential sources of funding, in .that the City could go forward even if the line of credit was not appr6ved. She would like to look at the whole picture. ~ At this point the roll was called to the motion. The City Manager advised it has been brought to his attention that next Tuesday is Yom Kippur and a number of people who are celebrat- ing that holiday would like to be in attendance at the Special Meeting and workshop scheduled for that evening. They asked if the Commission would be receptive to changing that date. It was the consensus of the Commission to hold the meeting on Thursday, September 22nd. Mayor Campbell declared the meeting adjourned at 8:15 P.M. ATTEST: ......... MAYOR The undersigned is the City Clerk of the City of Delray Beach and that the information provided herein is the minutes of the meeting of said City Commission of September 15, 1988, which minutes were formally approved and adopted by the City Commission on~~/~ (~ NOTE TO READER: If the minutes that you have received are not completed as indicated above, then this means that these are not the official minutes of City Commission. They will become the official minutes only after they have been reviewed and approved which may involve some amendments, additions, or deletions to the minutes as set forth above. -4- 9/15/88