09-28-04 Special Item 2b1
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City of South Miami
Special City Commission Minutes
September 14, 2004
(Excerpts)
2. AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, ADOPTING A BUDGET OF
$14,242,617 AND PAY PLAN FOR THE 2004/2005 FISCAL YEAR;
PROVIDING FOR SEVERABILITY; ORDINANCES IN CONFLICT; AND
AN EFFECTIVE DATE. 3/5
(City Manager)
Moved by Commissioner Sherar, seconded by Vice Mayor Palmer
to approve this item.
COMMISSIONER'S REQUESTS
Commissioner Birts- Cooper:
• Chamber renovation: She asked if the renovation of the
Chambers could wait another year.
Commissioner Birts- Cooper will bring her list with
additional requests later.
Vice Mayor Palmer:
• Garbage fee: To reimburse the garbage fee to
residents;
• YMCA purchase: Possibly to remove this expenditure
from the budget;
• Seniors' request: She expressed concern about the
Seniors' Center and the percentage of South Miami
residents actually benefiting from it. And also with
regard the Clinic.
SPECIAL CITY COMMISSION
MINUTES - SEPTEMBER 14, 2004
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Commissioner Sherar:
• Wireless telephone service: He will be looking into
finding a better plan to reduce the cost;
• YMCA purchase: Thinking of taking it out; if so, it
would be from the budget standpoint but not from the
development standpoint, his concept is that tax rate
fluctuates according to our needs. This is a purchase
that we should look at but he does not think that we
should budget for because there are so many
contingencies about what could happen, i.e.: the GOB,
maybe we can get a loan, a lot of vacant land in the
CRA area that needs to get developed, such as
BankUnited. He said that he would like to complete the
purchase of the Van Smith property.
The Manager said that there is enough money to buy the two
properties. She said that she did not understand what he was
saying about the YMCA property. He said that this is probably
because he did not have a real good idea about what they are
doing; therefore he said he is setting some kind of parameters as
his way of analyzing it. For instance, if they want us to buy the
property, but they want to keep it and make lots of money while
we will merely be able to cover for the debt service, that does
not sound like a great deal. If we are buying the YMCA and they
want to rent it for $5,000 a year, while we got a $150,000 debt
service, I'm going to have a problem with that; On the other
hand, if they are going to give us $50,000, and we got a $150,000
debt service, then I will understand it because we need a park,
Commissioner Sherar added.
The bottom line is that Commissioner Sherar needs more
information, said the Mayor. She then indicated that we were
unable to spend money on a number of things this year just
because they were not budgeted; therefore, we went overboard on
budgeting items so that we do not run into the same problems next
year. This way we will be prepared for it and there will be no
surprises. The garbage truck is a good example, where we could
have saved some money by buying it last year, but because it was
not budgeted, the Commission decided against it, and I can give
other examples, she said. Commissioner Sherar said that the truck
expense is going to be a recurrent expense if we do it, we do not
know how much it is going to be, therefore, to a certain extent,
it is a contingency for next year. Then, the budget for the year
after that, it becomes a non - contingent recurrent expense because
we have gotten ourselves into the obligation.
SPECIAL CITY COMMISSION
MINUTES - SEPTEMBER 14, 2004
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1 Mayor Russell then said,
2 a portion, in case it becomes
3 towards next year's budget.
4 millage this year, because we
5 be raising the millage back i
6 now understands his concept.
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putting contingency versus reserve,
a reality, and if not, then it goes
This way we will be lowering the
took it out. Then next year we will
f necessary. Ms. Davis said that she
8 • Regarding City Attorney: Referred to page 28 of the
9 proposed budget, "Special Counsel Services" and
10 "Litigation Reserve" for a total of $136,000. He said
11 that this represents about .15 mills; his
12 recommendation will be to put it in the reserve
13 instead.
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15 • Scurr's pension: Commissioner Sherar said that he had
16 a long discussion with the attorney the other day and
17 he also did some research.
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19 At 11:00 p.m. Mayor Russell moved to extend the meeting.
20 Seconded by Commissioner Sherar the motion passed by a 4 -0 vote:
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22 Commissioner Wiscombe: Absent
23 Commissioner Sherar: Yea
24 Vice Mayor Palmer: Yea
25 Commissioner Birts- Cooper: Yea
26 Mayor Russell: Yea
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28 • Scurr's pension (Cont'd): Commissioner Sherar indicated
29 that the attorney was going to do some further research
30 based upon the things that he brought up and the
31 discussion they had on the matter. Commissioner Sherar
32 said that he believes that Scurr's contract is
33 unenforceable. Ms. Davis said that if that were the
34 case then that money would just go back into the
35 reserve. It is not being budgeted for next year, it is
36 just coming out of the reserve and it is a non -
37 recurrent expense. By putting it back in the reserve it
38 will increase the projected amount of reserve for next
39 year, making the percentage of the reserve higher. He
40 said to leave it there and that he will talk to Hakeem.
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42 • Garbage truck: He said that on the economy scale he
43 believes that we are losing on it. What would make him
44 happy is that someone who had a garbage truck would
45 agree to pay us $5,000 a year for the right to use ours
46 when theirs broke down. This way I would be getting
47 money for something that is seating around, and all our
48 criteria is met. That is a concern he has.
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SPECIAL CITY COMMISSION 6
MINUTES - SEPTEMBER 14, 2004
• Economic Development: He said that he wants to make
sure that the merchants contribute their fair share.
Said that the north side of Sunset is part of the CRA,
therefore we need to talk to the CRA about getting some
of the money back.
• SM Community Center lighting: Ms. Davis explained that
when the poles and the lamps were installed, the final
wiring to energize the poles was not done; therefore,
we have now a field that is not lit, and the $8,000 is
a one -time expense to light it.
• Hospital money: He said that it seems to him that the
hospital money should be coming into the General Fund.
Said that he does not understand that accounting
system, and asked if there should be a line item for
debt service; he also asked as to how we account for
all of the loans that we have outstanding. Hakeem
explained that we get the money in advance before we
actually pay the loan, and that is the reason why we do
not have it as part of the budget. We have an escrow
account, because the amount that we are paying on an
annual basis is not the same as what we actually
receive from them.
• After - School House: He said that he is not against it
but that it should be in the budget as a valuable
service. His only concern about the after - school
program is that it needs to be run as efficiently as
possible.
• Special Events Funds: Would like to have some of these
events' representatives do a presentation explaining
the reason why they need these funds, because he will
be proposing that they be cut: So. Miami Arts Festival;
Art Expo; Red Sunset Holiday Events. So. Miami Arts &
Crafts and the Footworks Fun Run. About the Farmer's
Market he said that it seems like the ideal place to
have it is where is being run now.
Mayor Russell:
• YMCA purchase: Would like to have a presentation on
the details of the YMCA at the next Commission
meeting, with some accurate figures.
SPECIAL CITY COMMISSION 7
MINUTES - SEPTEMBER 14, 2004
• Request from the Commission for Senior Citizens: We
need to take a good look at what they are asking
because they are asking much more than what we are
funding for them. They represent a large portion of
our population and their fund has been reduced a
little bit. She said that she would like to take a
good look at that and discuss it at the next budget
hearing.
• MRP loan expense: She said that the expenditures
related to the parking garage loan should be reflected
on the budget and be made available for the public.
• Economic Development: She concurred with Commissioner
Sherar regarding the economic development of the
downtown Sunset area, and the expenses incurred should
be split 50/50 with the CRA.
• After - School House: Would like to see a presentation
on the after - school house prior to the next budget
hearing so that they can all hear as to how it is run,
what is going on there and address those concerns.
SPECIAL CITY COMMISSION 8
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