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44-92 ORDINANCE NO. 44-92 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 50, "UTILITIES GENERALLY; PUBLIC SERVICE TAX", SECTION 50.15, "LEVY OF TAX", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, TO PROVIDE FOR AN INCREASE IN THE PUBLIC SERVICE TAX ON THE PURCHASE OF ELECTRICITY FROM 8.5% TO 9.5%; PROVIDING FOR AN EXEMPTION TO RESIDENTIAL USERS ONLY IN THE AMOUNT OF 90 KILOWATT HOURS; PROVIDING A SAVING CLAUSE; PROVIDING A GENERAL REPEALER CLAUSE; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Title V, "Public Works", Chapter 50, "Utilities Generally; Public Service Tax", Subheading "Public Service Tax", Section 50.15, "Levy of Tax", Subsection (A), "Electricity and Gas", subparagraph (1), be, and the same is hereby amended to read as follows: (A) Electricity and Gas. (1) (a) The city hereby levies a tax on the purchase of electricity and metered or bottled gas (natural liquefied petroleum gas or manufactured). The tax shall be levied only upon purchases within the city ~/~//~/~ in the amount of 8.5% of the payments received by the seller of the taxable item from the purchaser for the purchase of ~//~9~ metered or bottled ~as (natural liquefied petroleum ~as or manufactured), and in the amount of 9.5% of the payments received by the seller of the taxable item from the purchaser for the purchase of electricity. (b) For each residential dwellin~ unit, the first 90 kilowatt hours of electricity purchased each month for residential use shall be exempt from the tax levied by this subsection. (c) ~b~ This tax shall not be applied against any fuel adjustment charge, and such charge shall be separately stated on each bill. The term "FUEL ADJUSTMENT CHARGE" means all increases in the cost of utility services to the ultimate consumer resulting from an increase in the cost of fuel to the utility subsequent to October 1, 1973. (d) ~ This tax shall in every case be paid by the purchaser, for the use of the city, to the seller of such electricity or gas at the time of paying the charges therefor to the seller thereof, but not less often than monthly. Section 2. That should any section or provision of this ordinance or any POrtion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not effect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 4. That this ordinance shall become effective on October 1, 1992. PASSED AND ADOPTED in regular session on second and final reading on this the 22nd day of September , 1992. ATTEST: ~ City C~erk ' First Reading September 8, 1992 Second Reading September 22, 1992 - 2 - Ord. No. 44-92 ORDINANCE NO. 44-92 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 50, "UTILITIES GENERALLY; PUBLIC SERVICE TAX", SECTION 50.15, "LEVY OF TAX", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, TO PROVIDE FOR AN INCREASE IN THE PUBLIC SERVICE TAX ON THE PURCHASE OF ELECTRICITY FROM 8.5% TO 9.5%; PROVIDING FOR AN EXEMPTION TO RESIDENTIAL USERS ONLY IN THE AMOUNT OF 90 KILOWATT HOURS; PROVIDING A SAVING CLAUSE; PROVIDING A GENERAL REPEALER CLAUSE; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, kS FOLLOWS: Section 1. That Title V, "Public Works", Chapter 50, "Utilities Generally; Public Service Tax", Subheading "Public Service Tax", Section 50.15, "Levy of Tax", Subsection (A), "Electricity and Gas", subparagraph (1), be, and the same is hereby amended to read as follows: (A) Electricity and Gas. (1) (a) The city hereby levies a tax on the purchase of electricity and metered or bottled gas (natural liquefied petroleum gas or manufactured). The tax shall be levied only upon purchases within the city ~/~//~/~ in the amount of 8.5% of the payments received by the seller of the taxable item from the purchaser for the purchase of ~//~ metered or bottled gas (natural liquefied petroleum gas or manufactured), and in the amount of 9.5% of the payments received by the seller of the taxable item from the purchaser for the purchase of electricity. (b) For each residential dwelling unit, the first 90 kilowatt hours of electricity purchased each month for residential use shall be exempt from the tax levied by this subsection. (c) ~b~ This tax shall not be applied against any fuel adjustment charge, and such charge shall be separately stated on each bill. The term "FUEL ADJUSTMENT CHARGE" means all increases in the cost of utility services to the ultimate consumer resulting from an increase in the cost of fuel to the utility subsequent to October 1, 1973. (d) ~ This tax shall in every case be paid by the purchaser, for the use of the city, to the seller of such electricity or gas at the time of paying the charges therefor to the seller thereof, but not less often than monthly. Section 2. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not effect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 4. That this ordinance shall become effective on October 1, 1992. PASSED AND ADOPTED in regular session on second and final reading on this the __ day of , 1992. MAYOR ATTEST: City Clerk First Reading Second Reading · - 2 - Ord. No. 44-92 MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER~ SUBJECT: AGENDA ITEM ~ /~ - MEETING OF SEPTEMBER 8. 1992 ORDINANCE NO. 44-92 DATE: September 4, 1992 This is a first reading of an ordinance amending Chapter 50 of the Code of Ordinances to provide for an increase in the public service tax on the purchase of electricity from 8.5% to 9.5%; and providing for an exemption to residential users only in the amount of 90 kilowatt hours. For each residential dwelling unit, the first 90 kilowatt hours of electricity used shall be exempt from the tax levied by this subsection. Recommend approval of Ordinance No. 44-92 on first reading. Mr. Harden: Below is the sequence of discussions regarding the utility tax increase as they occurred through budget sessions: Excerpt from workshop meeting of July 7, 1992: The City Manager stated that Mr. Andrews had suggested the possibility of using the occupational license. Unfortunately, they cannot do that as it was frozen. There was some allowance for increases back in 1985 and at that time the City took maximum advantage of it. An alternative to this, which the Manager believes accomplishes basically the same thing, is that the law allows an exemption for residents on utility tax. We do not have any exemption. Therefore, we could increase the utility tax (we are in the process of figuring out how much, say 1% which is about a 16% increase) and say if the average person uses 1,000 kilowatt hours per month for a residence, then you would exempt the first 160 kilowatts from the tax so that the net effect on a residence would be no change and the increase would fall on your non-residential users of electricity (businesses, commercial and industrial). Mr. Safford advised that the people who are primarily benefitting from the tennis stadium is the business community; therefore, they are trying to tailor the utility tax increase directly on the business and industrial community and not have any increase fall on the residential community. He also believes the CRA should be asked to participate in this venture. Excerpt from regular meeting of July 28, 1992; item 9.P., Fiscal Year 1992/93 Budget: During Mr. Safford's overview of the 5-Year Capital Improvement Budget and each of the various funds. After explanation of replacement fund, Mr. Safford goes on to say, "You'll see the next line down, "Transfer to Tennis Project, $250,000." So we're up to $400,000 now that we've got going into the tennis project. The next page is the same fund 334, but we have segregated the tennis project on a separate sheet of paper because there is so much going on with this, we want you to know where the money is coming from and how it is being spent. The debt service has to paid by the general fund. We are going to be coming to you with the sources of funds to pay for that debt service when we talk the operating budget, like utility tax on commercial businesses and then some will be coming from the license fees; some will be coming from CRA, etc. City Manager: We have run the numbers out now on the utility tax alternative which I mentioned to you a few weeks ago. If you increase the utility tax one percent (1%) and enact an exemption for the first 90 kilowatt hours for residential which would offset the increase, that gives you $139,000/$140,000 a year. CITY OF DELRAY B TO: Alison MacGregor Harry DATE: 9/14/92 FROM: Selma Kleinman For David T. Harden SUBJ: REQUEST FOR INFORMATION - COMMISSION MEETING - SEPTEMBER 8, 1992 During the Commission Meeting of Septe~er 8, 1992, the following questions were raised by citizens and/ or Commissioners. 1) Was there a commitment from the City when the Utility Tax was increased for beautification to use all or most of the money for beautification west of 1-957 Also please research minutes as to when tax was set. 2) ~en Mr. Harden first suggested increasing the Utility Tax to finance the tennis center, did he indicate that the average residential user would not see a tax increase, but large residen- tial users would see more increases? Please attach minutes re this subject. This info~ation needs to be provided by noon, Wednesday, September 16, 1992. Please forward your response to me. Thank you. EEcE ED crrY CITY OF DELRAY B TO: Selma Kleinman DATE: 9/15/92 FROM:Alison MacGregor Harty SUBJ: Request for Information - Meeting of 9/8/92 Attached are copies of minutes from the regular meeting of May 13, 1986, at which time the Commission adopted Ordinance No. 24-86 which increased the Utility Tax. I have also included a copy of Ordinance No. 1-87 which clarified the intent of the Commission for the use of those revenues. According to Nancy Davila, she has already responded to your question regarding any commitment for beautification of Atlantic Avenue, west of 1-95. In researching the minutes, we could find no additional information than what was provided by Nancy. Also attached is a copy of the summary minutes from the workshop meeting of July 7, 1992, wherein the subject of using the utility tax to finance the tennis center was discussed. I have also attached a verbatim transcript of Mr. Harden's comments where he explains the mechanism of using that tax. If you have any further questions, please contact me. 323 i. Ordinance No. 24-86 - Amendin~ Code - Utility Tax Increase. ~dinance No. 24-86, amending Chapter 25 "Taxation" of the Code of .rdinances to increase the tax on utility services from 7.5% to 8.5%, is oefore Council for consideration on Second and FINAL Reading. Prior to consideration of passage of this ordinance on Second and FINAL Reading, a public hearing has been scheduled to be held at this time. The City Manager presented Ordinance No. 24-86: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 25, "TAXATION", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING ARTICLE III, "UTILITY SERVICES", SECTION 25-23, "LEVIED; PURCHASER TO PAY", TO INCREASE THE TAX ON UTILITY SERVICES FROM 7.5% TO 8.5% ON THE TOTAL AMOUNT BILLED IN ANY CURRENT MONTH AND ALLOCATING THE REVENUE RESULTING FROM THE TAX INCREASE TO THE CITY OF DELRAY BEACH BEAUTIFICATION PROGRAM; PROVIDING A SAVING CLAUSE; PROVIDING AN EFFECTIVE DATE. (Copy of Ordinance No. 24-86 is on file in the official Ordinance Book) The City Attorney read the caption of the ordinance. A public '~earing was held having been legally advertised in compliance with the .aws of the State of Florida and the Charter of the City of Delray 3each, Florida. Mr. Joel Port, Villas of Rainberry Lake, spoke in opposition of the ordinance. They feel it was not well thought out and request it be postponed and a program be set up. Mrs. Jeanette Slavin, Rainberry Bay, also requested that the ordinance be postponed as they feel it is unclear. Mr. Gerald Philli~e, High Point Sec. 4, spoke in favor of a 10 or 15 year bond issue backed up by the utility tax. Mr. Theo Brown, 616 Lake Ida Road, spoke in favor of a bond ~ssue. Mr. Chris O'Hare, Co-Chairman of the Beautification Task Force, stated that the Task Force has been holding public meetings for six months and has made a presentation to Council, the Chamber of Commerce and the CRA with regard to a guideline for the beautification program. He would be happy to answer any questions from the public after the meeting tonight or at the Beautification Task Force's next meeting on Friday, May 16th, at 7:30 A.M. in City Hall. Mr. Jerry Kessler, 4530 N.W. 2nd Street, feels this is an inequitable tax and that more public input is needed. If Council does pass the tax, he recommends a three year sunset be put on it. Mrs. Helen Coopersmith, PROD, stated that they favor the bond issue with the utility tax' paying the maintenance of the bond issue and having the work done in three years. She asked for postponement and for a priority list for the program. Mr. Ben .Lillenstein, High Point Sec. 4, spoke in favor of paying for the bond issue by advalorem tax. They feel the utility tax is inequitable. The public hearing was close~. Mr. Bird moved for the adoption of Ordinance No. 24-86 on Second and FINAL Reading, seconded by Mrs. Horenburger. Mrs. Horenburger stated she feels they need to remember that he tax is important to lock in a funding source for the project. Mr. ougherty recommended that they eliminate "operating expenses" from the rdinance and go with a 15 year bond issue. Mr. Weatherspoon stated hat he would be amenable to going with a combination of both the - 2 - 05/13/86 324 utility tax and a bond issue. Mayor Campbell stated he feels it is a fair tax and added that Atlantic Avenue West is one of the top priority roads as it is the gateway to the City. He believes the program should be completed in three years and would prefer that they float a bond. If they enact the ordinance tonight, they can, possibly at their next workshop, discuss floating a bond. Mr. Dougherty made a substitute motion to adopt Ordinance No. 24-86 with the deletion of "and operating expense" from it, seconded by Mrs. Horenburger. Upon roll call Council voted as follows: Mr. Bird - No; Mr. Dougherty - Yes; Mrs. Horenburger - Yes; Mr. Weatherspoon - No; Mayor Campbell - Yes. Said motion passed with a 3 to 2 vote. Before roll call the following discussion was had: Upon question by Mr. Weatherspoon, Mr. Bird stated that. the 1% was based on the fact that they were going to do capital improvement and maintenance simultaneously. If they are to take out the cost of maintenance and put it on the advalorem side, they are overfunding the program as it was presented to them. Mayor Campbell disagreed, stating that it would not be overfunded if they do it on a short term basis. At this point the roll was called to the motion. The City Manager stated they need to get a study started and ge~ staffed. He asked if they will be taking the staff and the con- sultant out of advalorem or out of utility tax. Mayor Campbell sug- gested they discuss that at the workshop meeting and that they direct the City Attorney to contact bond counsel for their position. Mr. Bird moved that the cost to develop a plan and oversee the capital portions of it (planning, landscape architecture, etc.) shall come from the capital portion of the budget (the utility tax), seconded by Mrs. Horenburger. Upon roll call Council voted as follows: Mr. Bird - Yes; Mr. Dougherty - Yes; Mrs. Horenburger - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. Mr. Bird left the Council Chambers at this time. 7. Ordinance No. 25-86 - Amending Zoning Code - Industrial Zoning Districts. Ordinance No. 25-86, amending Chapter 30 "Zoning" of the Code of Ordinances to require that all LI (Light Industrial) Districts and MI (Medium Industrial) Districts be subject to site and development ~lan approval, is before Council for consideration on Second and FINAL heading. Prior to consideration of passage of this ordinance on Second and FINAL Reading, a public hearing has been scheduled to be held at this time. The City Manager presented Ordinance No. 25-86: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 30, "ZONING", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING SECTION 30-14 "LI (LIGHT INDUSTRIAL) DISTRICT" (B) "PERMITTED USES" TO REQUIRE ALL DEVELOPMENTS TO BE. SUBJECT TO SITE AND DEVELOPMENT PLAN APPROVAL; BY AMENDING SECTION 30-15 "MI (MEDIUM INDUSTRIAL) DISTRICT" (B) "PERMITTED USES" TO REQUIRE ALL DEVELOPMENTS TO BE SUBJECT TO SITE AND DEVELOPMENT PLAN APPROVAL; PROVIDING A SAVING CLAUSE; PROVIDING A GENERAL REPEALER CLAUSE; PROVIDING AN EFFECTIVE DATE. (Copy of Ordinance No. 25-86 is on file in the official Ordinance Book) The City Attorney read the caption of the ordinance. A public hearing was 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. The public hearing was closed. Mrs. Horenburger moved for the adoption of Ordinance No. 25-86 on Second and FINAL Reading, seconded by Mr. Weatherspoon. Upon roll call Council voted as follows: Mr. Dougherty - Yes; Mrs. Horenburger - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 4 to 0 vote. - 3 - 05/13/86 ORDINANCE NO. 1-87 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 25, "TAXATION", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING ARTICLE III, "UTILITY SERVICES", SECTION 25-23, "LEVIED; PURCHASER TO PAY", TO CLARIFY THE INTENT OF THE CITY COUNCIL FOR THE USE OF REVENUES DERIVBD FROM THE 8.5% UTILITIES SERVICES TAX AS SAME REGARDS UTILITY TAX OBLIGATIONS OF THE CITY; PROVIDING A SAVING CLAUSE; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Delray Beach, Florida, did adopt Ordinance No. 24-88 on May 13, 1986, inereasinl[ the tax on utility services from 7.5% to 8.5%; and, WHEREAS, the City Council of the City of Deh'ay Beach, Florida, wishes to clarify that it was then and is currently its intent that any such sums attributable to said increase will be earmarked for beautification p~o~sms, such use betnl[ subject to the requirements for debt service and or other covenants of past, current, or future utility tax certificates/bonds. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Section 25-23, "Levied; purchaser to pay" of the Code of Ordinances of the City of Deb'ay Beach, Florida, shall be, and the same is hereby, amended to read as follows: See. 25-2:1. Levied; purchaser to pay. (a) There is hereby levied by the City on each and eve~,y purchase in the city, of electricity, metered and bottled l~as (natural or manufactured), and local telephone sez-viee, a tax based upon the eharl~e made by the seller thereof, as follows, to wit: Etl[ht and one-half percent (8.5%) on the total amount billed in any current month. Which tax shall, in evez'y case, be paid by the purchaser, for the use of the city, to the seller of such electricity, I~as or local telephone service at the time of paytnt[ the charge therefor to the seller thereof, but not less often than monthly. ! _ (b) The tax imposed by subsection (a) above shall not be applied a~[ainst any fuel adjustment cha~e, and such char~[e shall be separately stated on each bill. "Fuel adjustment cheese" shall mean all increases in the cost of utility services to the ultimate consumer resultin~ from an increase in the cost of fuel to the utility subsequent to October 1, 1973. ~ '(c) To the extent such sums are not otherwise required to meet current or future utiltt]r tax cez'tifleate bond covenants, and/or the debt sez-vice on same, that ~-het poz-tion of the revenues attributable to the increase in the tax f~om seven and one-half · pez'eent (?.5%) to eight and one-half pez, eent (8.5%) shall' be transfeeeed monthly to the City of Delray Beach Beautification l~am, to be used eelek7 for capital and operatinl[ expenses tncu~ed in projects for the beautification of the public riwhts-of-way within the city and the maintenance of such beautification peoJeets. Any revenues tz~nsferred to such fund in excess of fund expenditures in any fiscal yeee shell be retained and e app~opriated in the fund in the next fiscal yeez,, such use bein subject to the prior n enjoyed by the holders of outstandin~ and z"e p o .e~ ns o · y , secured b._~ the utility seevices tax of the City. Section 2. That should any section or pz~vleion of this ordinance or any poz, tion thereof, any peea~-reph, sentence, or word be deelez, ed by a couz, t of competent Jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof es a whole or pe_l,t theeeof other than the pez, t deelez, ed to be invalid.. Section 3. That this ordinance shall become effective immediately upon its passage on second and final reading. PASSBD AND ADOPTED' in special session on second and final reading on this the 20th day of January , 1987 ATTBST: First Reading January 6, 1987 Second Reading. January 20, 1987 2 ORD. NO. 1-87 · ~xcerpt from the ~0rkshop Meeting of July 7, 1992: The City Manager stated that Mr. Andrews had suggested the possibility of using the occupational license. Unfortunately, they cannot do that as it was frozen. There was some allowance for increases back in 1985 and at that time the City took maximum advantage of it. The alternative they have come up with, which he believes accomplishes basically the same thing, is that the law allows an exemption for residents on the utility tax. We do not have any exemption. Therefore, we could increase the utility tax (we are in the process of figuring out how much - say 1% which is about a 16% increase) and say if the average person uses 1,000 kilowatts per month for a residence, then you would exempt the first 160 kilowatts from tax so that the net effect on a resident would be no change and the increase would fall on your non-residential users of electricity. (Businesses, commercial and industrial). Mr. Safford advised that the people %hat are primarily benefitting from the tennis stadium is the business community, therefore they are trying to tailor the utility tax increase directly on the business and industrial community and not have any increase fall on the residential community. He also believes the CRA should be asked to participate in this adventure. MINUTES OF THE WORKSHOP MEETING OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA HELD JULY 7, 1992 Present: Mayor Thomas E. Lynch, Commission Members Jay Alperin William Andrews, Armand Mouw, David Randolph, City Manager David E. Harden and City Attorney Jeffrey S. Kurtz. The meeting was called to order at 8:50 P.M. 1. Discussion regarding the organization of a task force to look at promotional/alternative uses at the tennis center/stadium. Commissioner Mouw stated the Mr. Ken Jones, who is an attorney in town, came to him with this issue. He stated that the purpose of the Task Force would be to investigate other uses besides the Virginia Slims Tournament. Commissioner Mouw stated that the proposed membership should include someone from the Chamber of Commerce, Downtown Development Authority, a Commission member, Mr. Jones, Joe Weldon, and general citizenry. Dr. Alperin's nominees are Joe Gilley, Clay Wideman, and Richard Wilan. Commissioner Mouw's nominees are Bill Andrews, Braham Dubin, Ken Jones, Chris Brown or his designee, Bill Woods or his designee, Joe Weldon or his designee, Dan Burns, and Anne Bright. The Mayor's nominees are Michael Wiener and Dan Burns. Commissioner Randolph's nominees are Loretta McGee, Kelly Brown and Bill Condry. Commissioner Andrew's nominees are Harvey Brown and Dan Carter. The Mayor stated that the nominated individuals should be contacted to see if they are interested in serving and that the Commission should meet thereafter to Drovide them direction. The Commission by consensus agreed to the concept of the task force. 2. Discussion with regard to funding for major caDital projects. Joe Safford, Finance Director, made a presentation with regard to financing capital projects. Minutes Of the Workshop Meeting dated mm/dd/1992 Page 2 He stated that the City is faced with several financial challenges the first being the Beach Renourishment Project. The majority of the cost of the beach nourishment project is funded by a federal grant; however, funding comes at the end of the project not during the project. The federal grant stipulates that following the project there will be a federal audit and upon successfully completing that financial audit they will send the grant money to the City. This action could possible take one year from the end of the project. The City is required to front in the cost of beach nourishment. Joe Safford recommends that the City should execute a one year, short term note with a local bank or financial institution (revenue anticipation note) for the amount need. The City Manager stated that this amount is approximately $2.8 million. Mr. Safford stated that the note would be structured in such a way that any interest cost on this debt would be paid for from accumulated uncommitted reserves already in the Beach Renourishment Fund. The grant would then reimburse the principal. The most significant aspect of this proposal is that it will be handled through the Beach Renourishment Fund and will not impact on the general fund, millage or taxation. The second item is the funding from the Tennis Stadium complex. The City Manager stated that Mr. Andrews had suggested the possibility of increasing the occupational license. However, that cannot be done. The alternative is to increase the utility tax by approximately 1%. Mr. Safford suggested that the CRA be asked to participate in the tennis stadium venture. The residential tennis facilities can be funded from a combination of in-house reserves, capital financing using the tennis tournament fees as payment, and/or a CRA participatory grant. Any additional funding, if required, would come from utility fund loans at comparable rates and the debt service on those loans would be paid for from the tournament fees. Mr. ' Safford reiterated that the General Fund would not be used. Mr. Safford stated that the third challenge is the two fire station (No. I and No. 5). Money was moved forward from the second to the first half of the Decade of Excellence Bond Issue in order to do some preliminary work on Fire Stations I and 5. This included land acquisition, design, etc. Mr. Safford stated that the award of contract for Fire Station No. 1 was anticipated. In order to award the bid, funding needs to be in place. Approximately $1.6 to $1.7 million of Minutes of the Workshop Meeting dated mmT~2 Page 3 the funding is sitting in the second half of the Decade of Excellence Bond Issue. The Mayor inquired as to why we do not just execute the SIO million issue. Mr. Safford explained that if the second issue of the Decade of Excellence Bond Issue was executed, then the millage increase for the debt service would go into in affect. This millage increase amounts to approximately 4/10th of a mill. Mr. Safford recommends that rather than push up the Decade of Excellence second issue, that the City use a line of credit, that is executed only as the money is needed. This will allow the Decade of Excellence (first issue) monies to be expended first, before going to the line of credit. Commissioner Mouw suggested that the tennis center and beach renourishment project be funded by a line of credit also. Mr. Safford stated that he would look at that suggestion as an alternative for funding the tennis stadium complex. Mr. Safford stated that the fourth project is the Pompey Park Pool Replacement project. The estimated cost is $550,000. The proposed funding for this project is the uncommitted reserves from some of the smaller funds and any funding left over from the East Atlantic Avenue Beautification. Commissioner Mouw asked to see 'all of the other unfunded projects. Mr. Harden stated that he will be bringing the whole lis~ of unfunded projects before the Commission in order to finalize it. The Commission consensus was to get short-term funding for the Beach Renourishment project with the interest to be paid from the Beach Renourishment Fund. For the tennis center/stadium, bids will be sent out to local banks to see what rates the banks are offering, staff will look at alternatives which includes permanent financing' and a revenue source to pay the financing off, and the CRA will be contacted. Fire Station No. 1 and 5 will be funding through a line of credit. Mr. Safford stated that the Pompey Park pool will come back with the rest of the Capital Improvement Plan. 3. Commission Comments. The Commission consensus was to postpone the meeting of July 14, 1992 until July 21, 1992. Mayor Lynch asked for a Commission consensus against parking along the F.E.C. and along Dixie Highway as an alternative for relieving traffic for the Delray Beach Swap Shop. ..... ; ci tt '7, Iq fl 2 Minutes of the Workshop Meeting dated m=/aa/lgg2 Page 4 The City Manager was instructed to contact the County to let them know what the Commission's position is regarding the Swap Shop. The City Manager stated that an impasse hearing needed to be scheduled for the IAFF contract sometime after July 23rd. The Commission consensus was to hold an executive session on July 29, 1992 at 6:00 P.M. The City Manager requested Commission direction on tax rates. In order to received the same amount of tax dollars for next fiscal year the rate would need to go up 15/100th of a mill or $7.28. The Commission consensus was to stay at $7.15. The City Manager was directed to come back to the Commission with alternatives which show what will be cut or lost by staying at that level. Meeting adjourned at * P.M. AN ORDINANCE OF THE CITY COM. MISSION OF THE CITY OF DELNAY BEACH, ~LORIDA, ~HAPTER M, ~UTtLIT~ ALLY~ PUBLIC SERVICE TAX', SEC- TION ~.lS, 'LEVY OF TAX~, OF THE COOE O~ ORHIt~XCE$ OF THE CITY OF HE~.~¥ MATH, FLORt- DA, 3'~ II:~IOVIDE~FOR AN iN- CREASE' ~ Tt. IE PtlILIC ~RVICE T~ ON r~ ~ ~ ELEC- TRICITY ~1~1~ IL~ ~ 9.~/~; PRO- VIDING FOR AN EXEMPTION TO THE AMOUKI' 'OF ~ K'ILOWA?T HOURS; PROV~DING A SAVING CLAUSE; F~OVIDW6 A GENERAL REPEAL~ CLAUSE; PROVIDING ,AN EFFECTIVE DATE. cldes lo iWi41 MIy dKW mlde by any matter cauidered at tMs mm'lng oT hearM, suc~ MIM~(S) Will ne~ to emote ~, a wm n~.d in. sucl~ recmL CITY OF I~LRAY BEACH PUBLISH: hMber 12, THE NEWS ORDINANCE NO. 44-92 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 50, "UTILITIES GENERALLY; PUBLIC SERVICE TAX", SECTION 50.15, "LEVY OF TAX", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, TO PROVIDE FOR AN INCREASE IN THE PUBLIC SERVICE TAX ON THE PURCHASE OF ELECTRICITY FROM 8.5% TO 9.5%; PROVIDING FOR AN EXEMPTION TO RESIDENTIAL USERS ONLY IN THE AMOUNT OF 90 KILOWATT HOURS; PROVIDING A SAVING CLAUSE; PROVIDING A GENERAL REPEALER CLAUSE; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Title V, "Public Works", Chapter 50, "Utilities Generally; Public Service Tax", Subheading "Public Service Tax", Section 50.15, "Levy of Tax", Subsection (A), "Electricity and Gas", subparagraph (1), be, and the same is hereby amended to read as follows: (A) Electricity and Gas. (1) (a) The city hereby levies a tax on the purchase of electricity and metered or bottled gas (natural liquefied petroleum gas or manufactured). The tax shall be levied only upon purchases within the city ~/~II//~/~ in the amount of 8.5% of the payments received by the seller of the taxable item from the purchaser for the purchase of ~//~9~ metered or bottled ~as (natural liquefied petroleum ~as or manufactured) ~ and in the amount of 9.5% of the payments received by the seller of the taxable item from the purchaser for the purchase of electricity. (b) For each residential dwellinq unit, the first 90 kilowatt hours of electricity purchased each month for residential use shall be exempt from the tax levied by this subsection. (c) ~ This tax shall not be applied against any fuel adjustment charge, and such charge shall be separately stated on each bill. The term "FUEL ADJUSTMENT CHARGE" means all increases in the cost of utility services to the ultimate consumer resulting from an increase in the cost of fuel to the utility subsequent to October 1, 1973. (d) ~ This tax shall in every case be paid by the purchaser, for the use of the city, to the seller of such electricity or gas at the time of paying the charges therefor to the seller thereof, but not less often than monthly. Section 2. That should any section or provision of this ordinance or any POrtion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not effect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. .. L Section 4. That this ordinance shall become effective on October 1, 1992. PASSED AND ADOPTED in regular session on second and final reading on this the 22nd day of September , 1992. ATTEST: - / City C~erk ' First Reading September 8, 1992 Second Reading September 22, 1992 - 2 - Ord. No. 44-92 Joe Safford. To: Box2409, DelrayBeach, FL33~7-2409 For your information. sk for DTH ~PL cc: Alison Harty. RECEIVED October 27, 1992 Mr. David T. Harden City Manager .... '..: City of Delray Beach 100 N.W. 1st Avenue Delray Beach, FL 33444 Re: Municipal Utility Tax Rate Reviszon Dear Mr. Harden: Recently it came to my attention that FPL had not been contacted by the City of Delray Beach regarding the implementation of the new utility tax. I subsequently requested and received a certified copy of Ordinance No. 44-92 from the City Clerk. As you know, this ordinance specifies a revision to the tax on the purchase of electricity. It is my understanding that the ordinance was passed and adopted by the Delray Beach City Commission on September 22, 1992. Upon reviewing the ordinance, I noticed a provision indicating an effective date of October 1, 1992 for the new tax rate. In order to integrate a tax rate revision into our billing system, FPL requires a certified copy of the Municipal Ordinance. Unfortunately, FPL did not receive a certified copy of the ordinance until Tuesday, October 20, 1992. Consequently, the new tax rate was not applied to electric bills dated prior to October 22, 1992. F?L regrets any inconvenience this may cause the City of Delray Beach. Sincerely, , Terri L. Robinson External Affairs Manager TLR:at an FPL Group company MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER~ SUBJECT: AGENDA ITEM # /O ~ - MEETIN~ QF SEPTEMBER 22. 1992 ORDINANCE NO. 44-92 DATE: September 18, 1992 This is a second reading of an ordinance amending Chapter 50 of the Code of Ordinances to provide for an increase in the public service tax on the purchase of electricity from 8.5% to 9.5%; and providing for an exemption to residential users only in the amount of 90 kilowatt hours. For each residential dwelling unit, the first 90 kilowatt hours of electricity used shall be exempt from the tax levied by this subsection. Recommend approval of Ordinance No. 44-92 on second and final reading.