|
<br />Summary Minutes: Special City Commission Meeting September 17,2007
<br />First Budget Hearing
<br />
<br />Sunny Isles Beach, Florida
<br />
<br />Simpson's employees on an II-month timeframe, in other words, instead of having an
<br />October 1 st date, there would be a November 1 st date where we would consider ourselves
<br />being operational in most areas. Additionally, we delayed for 3-4 months the Community
<br />Center Coordinator, so it was a modified option that we discussed at the last workshop and
<br />those numbers are reflected in the document. Vice Mayor Thaler said then that the feeling is
<br />that we are going to open at some extent in November, and City Manager Szerlag said yes.
<br />
<br />Assistant City Manager Haag said that the rest of the changes, page 5 of Addendum 1, are
<br />some transfers and that is to continue the philosophy that we adopted last year in terms of
<br />putting the dollars where the accountability and the responsibility is, and the total change to
<br />expenses at the bottom of page 5, a reduction of $133,000.00 to General Fund budget. The
<br />adjusted totals by department and how those break down that is a separate sheet entitled
<br />General Funds - Summary by Department. The other part of Addendum 1 on page 6 are
<br />adjustments on the revenue side, reductions primarily due to cancellation of one of the
<br />developments, The Paramount, and there is also a increase in the estimates for interest
<br />earnings but at the bottom of the page you will see there is no net change in revenues and that
<br />is because we have drawn from our existing fund balance in the amount of $2.1 Million
<br />Dollars at this point to balance the budget because on the expense side, the expenses have not
<br />changed. He said page 7 of Addendum 1 has some comments on some other topics,
<br />questions that came up during the workshop sessions or ongoing meetings.
<br />
<br />Assistant City Manager Haag said Addendum 2 is a listing of proposed changes to the
<br />Capital Improvement Projects (CIP) fund, which we just received today. We went back and
<br />revisited some of the revenue estimates for the development activity, and made some
<br />additional adjustments of approximately $3.5 Million Dollars, but again there is no net
<br />change on the revenue side because we have just now increased our fund balance, carry
<br />forward for the current year, that is not a reflection of our total fund balance in the Capital
<br />Project Fund, it is much higher, that is just a portion that we are drawing down on in effect
<br />for the current year, and that is not unexpected. He said it is something that we will be doing
<br />over the course of the next several years, we have built up substantial reserves in that fund so
<br />now we will be drawing down on it. The next page in Addendum 2, we reproduced the
<br />Capital Project Fund revenue budget, so you can see what all those changes net out to, and
<br />the proposed line item budget is still the same, $25,344,360.00. In the last couple of pages,
<br />we updated our forecast for the Capital Projects to reflect those changes and a few others.
<br />One other significant change in the forecast, we have also added some anticipated monies to
<br />be transferred from General Fund to the Capital Projects on an annual basis. We are
<br />anticipating transferring an additional $5 Million Dollars over and above the $2.2 Million
<br />Dollars per debt service, we show some additional monies being transferred out throughout
<br />the subsequent years as well.
<br />
<br />Mayor Edelcup asked if in the current year, the $5 Million Dollars that he was referring to is
<br />the $7,210,000 per debt service, and Mr. Haag said yes, they are lumped together. Vice
<br />Mayor Thaler asked if the interest rate, the interest on it, is that all kept in one area in the
<br />bank, it is separated here on paper, but the use of it can be done at any area, and Mayor
<br />Edelcup said the interest earned on Capital Improvement Funds has to stay in Capital
<br />Improvement Funds, and cannot be used for operating fund. Assistant City Manager Haag
<br />
<br />4
<br />
|