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10-24-1963 VC REG-M• MINUTES OF AN ADJOURNED MEETING of the VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA held October 24, 1963 Present: Warren P. Tatoul, Mayor Louis J. Aiello, Vice-Mayor Harold M. Beery, Councilman Thomas A. Bell, Councilman Frank J. Hahn, Councilman C. Robert Burns, Village Attorney Frank R. Spence, Village Manager and Clerk Mayor Tatoul called the meeting to order at 8:15 p.m. after allowing time for any citizen reporting at the Country Club building to move to the Village Hall meeting place and requested the Clerk call the roll. Proposed Resolution #177 entitled • A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, RATIFYING AND APPROVING A BUDGET FOR THE FISCAL YEAR 1963-1964; FIXING THE AMOUPQT OF MONEY TO BE RAISED BY AD VALOREM TAXES; AND FIXING THE AD VALOREM TAX LEVY FOR THE CALENDAR YEAR 1963-64. was publcly discussed. On motion of Vice-Mayor Aiello, seconded by Councilman Hahn, Councilman Bell, Mayor Tatoul voting aye, Councilman Beery voting nay, proposed Resolution #177 was adopted. Councilman Beery distributed the following statements concerning the proposed 1963-64 Village budget to the Council and requested the statements be inserted in the minutes of the meeting. The two statements follow: October 22, 1963 Gentlemen: In 1960, the residents o£ the Village of North Palm Beach voted overwhelmingly to purchase the present Country Club property. Two considerations were uppermost in the minds o£ most of the Village residents at that time: (1) the desire to maintain the recreational use of this land and to prevent its use as building sites by the developers of the Village of North Palm Beach, and {2) to provide improved and expanded facilities for recreation and to encourage wide public use of these facilities, so that the acquisition and operation of this Country Club property would produce sufficient income to maintain itself and to pay off the general obligation bonds, which were issued to guarantee the purchase price of the property. The first year's operation of the Country Club shows that the Village homeowners have supported this Country Club only to a limited extent as the following figures show: • Golf Fool Village Homeowners 302 411 Non-Residents 479 109 Total 773 520 This indicates that only 18% of the Family Units are participating in the Golfing portion of the Country Club and slightly less than 25go of the Family Units are members of the pool. In other words; the non-resident members of our recreational facilities are paying a much greater pootion of the actual costs, because in addition to Golf memberships, we have a large greens-fee paying group whom we know are also primarily out-of-town residents. This means that the Village homeowners have elected to pay their share of Country Club expenses by taxes. The financial success of the first year of .operation of this Country Club has been less than anticipated, therefor, it is necessary to increase Village taxes by two to three mills in order to have the $88,600. necessary ~ meet the next bond payment on the Country Club when it comes due. Golf member- ships costs for Village Homeowners and outsi~ts are also being increased to help guarantee the financial solvency of your Country Club operation. Your Village government is.continuing to operate within the seven mill-limitation of the past four years, which means that the return to our nine mill rate of 1958 has become necessary only because o_f the greatly expanding Village party cipation in the recreational business. As a reminder, in 1957, the millage rate in the Village was ten mills; in 1958, it dropped to nine; and in 1959, it was Lowered to seven mills to stimulate the purchase of property and the building of homes in the Village. From 1959 until 1962, your Village government has operated on a seven mill basis, usually on a deficit basis for the last two or three months of each fiscal year. In other wards, it appears that it has actually taken seven and a half to eight required to operate the Village being ' borrowed from next years tax revenue. We personally feel that -tYbs is the time that we should set our millage rate realistictly in view of the type of services which our citizens and various interest groups throughout the Village are demanding. Harold W. Beery, Councilman ' October 24, 1963 Gentlemen: I would like to have the following two statements attached to the minutes of this budget meeting. I will first read a letter which I wrote to the members of this Council on October 18, 1963. Now, I will read a memo commenting on the decision of the majority af'the:members of this Council regarding the budget and the millage which we have recommended this year. This proposed two mill increase in our tax rate for 1963-1964 will force a continuation of the deficit financing which we have engaged in ad a Village since the Village's inception. My concern over a continuation of thas practice is that the deficit this year is so substantially higher than it ever ha.s been in the past, that I fail to see how we can continue to operate on a seven mill basis, for Village operation, and still repay the notes, loans and interest due at the First American Bank and also pay the accounts payable at the North Palm Beach Country Club. These two items alone amount to $126,60b and represents money spent by this Council to start operation at the Country Club. I feel that the residents of this Village will, when given all the facts do anything possible to help the Vi17.a ge government to_reduce this deficit in 1964 and in subsequent years and I am calling this to the publicts attention because I want a clear understanding of why I personally will oppose any but the most essential spending for routine items during the next four to six months. During this tme, we will ' keep a very close and accurate check on our actual revenue, versus the anticipated revenue we asked our City Manager to estimate in order to balance our budget. ~ am writing this memo with the sincere hope that those groups who have money set aside £os their Present Future 1962-63 1963-64 Village General Operation 7 Mi11s 8 Mills Bond Payment Account -0- 2.65 Mills General Fund Debt Service -0- I Mill (3iYears) Page -2- particular use in the 1963-64 Budget year will be completely cognizant of the cash position of the Village, and will understand i~ their requests for funds -- are delayed until late in this fiscal year or until we have an opportunity to determine whether or not we have this money to spend for other than com- pletely necessary Village functions. The Village Attorney advises that it will take 2.65 Mills to guarantee the Count ry Club Bond payment account. In view of this, I fail to see how the Council can in good conscience and using their best business jud ement in t l g crease axes ess than this amount for debt service on the_ Country Club Bond. Our present accounts payable and notes at the bank would re uire $2 000 q over , ,000. in sales at the Country Club, assuming a 6% net profit ' on our sales, in arder to earn sufficient money to. offset this deficit which was incurred in 1962-63. I am sure you will agree that it is unrealistic to plan on sales or profit in this amount from our Country Club operations. I, therefore , feel that an increase in Village operating millage of one mill is imperative if we are to truthfully balance the General Fund Budget for the 1963-64 year. ` The $ 126;600 we now owe might be liquidated with a temporary one mill debt service levy for the next three years, and this I very strongly recommend. This arrangement will assure sufficient cash to operate the Village on a sound basis. It will guarantee a systematic reduction of our present Country Club ' incurred debt over the next three years and will satisfy the bond holders of the Country Club bond. I can not agree to less than this unless we substantially reduce the anticipated expenditures in this current budget. Harold W. Beery Councilman i On motion of Councilman Bell, seconded by Councilman Hahn, all members voting aye, proposed Resolution #178 entitled A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, RATI- FYING AND APPROVING A BUDGET FOR THE OPERATION ' OF THE NORTH PALM BEACH COUNTRY CLUB RECREATION FACILITIES FOR THE FISCAL YEAR. 1963-1964. was adopted. On motion of Councilman Hahn, seconded by Vice--Mayor Aiello, all members voting aye, proposed Ordinance #85 entitled. AN ORDNANCE OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, MAKING IT UNLAWFUL TO ERECT OR MAINTAIN, ' OR TO PERMIT THE ERECTION OR M~?TNIENAtVCE OF ANY STRUCTURE OF ANY KIND, INCLUDING A WALL, UPON, ACROSS, OVER OR UNDER ANY PORTION OF ANY PUBLICLY DEDICATED UTILITY OR DRAINAGE EASEMENT AREA IN THE VILLAGE; PROVIDING PENALTIES FOR THE VIOLATION HERE OF AND FOR THE DENIAL OF BUILDING PERMITS WHER£ SAME INVOLVES SUCH A VIOLATION; AND FOR • OTHER PURPOSES. was placed on first reading and read in full. On motion of Councilman Beery, seconded by Vic e-Mayor Aiello, all members voting aye, proposed Ordinance #85 was amended by striking the words "or fence" wherever it appeared in the Ordinance.. On motion of Vice-Mayor Aiello, seconded by Councilman Beery, all members voting aye, the miles were waived and proposed Ordinance #85 as amended was placed on second reading and read in full. On motion of Councilman Hahn, seconded by Councilman Bell, all members voting aye, proposed Ordinance #85 as amended was enacted. A request of the North Palm Beach Presbyterian Church that a utility easement be granted to permit electric power connections was discussed. ' On motion of Councilman Beery, seconded by Councilman Hahn, all members voting aye, the Village Attorney was directed to prepare a six-foot utility easement grant in accordance with the Church request. On motion of Councilman Hahn, seconded by Councilman Beery, all members voting aye, the U.S. Coast Guard Auxiliary Flotilla $5I was granted permission to erect a boating bulletin board in the Village boat area at a location to be determined by the Village Manager and with the understanding it will be removed at any future request of the Village Council. On motion of Councilman Hahn, seconded by Councilman Beery, all members voting aye, the Village Manager was instructed to employ Mr. William B. Wallace to make 12 test borings a~ a cast of $20. each at locations in the west Country Club option land area to be determined by Mr. W. B. Carver, Building Official. There being no further business to come before the Council, the w meeting was adjourned at 9:45 p.m. on motion of Councilman Hahn, seconded by Councilman Beery, all members voting .aye. ALBN R. OLSON Village Clerk MINUTES OF AN ADJOURNED MEETING OF THE ViLLAG& OF NORTH PALM BEACH held October 24, 1963 Present; 'ttarren P. Tatoul, Mayor Louis J. Aitllo, Vice-Mayor Harold r?. Beery, Councilman Thomas R. Bell, Councilman Frank J. Hahn, Councilman C. Robert Burns, Village Attorney Albin R. Olson, Village Clerk idayor Tatoul called the meeting to order at 8:15 p.m. after allowing time for any citizen reporting at the Country Club building to move to the Village Haii meeting place and requested the Clerk call the roll. Proposed Resolution #177 entitled A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, RATIFYING AND APPROVING A BUDGET FOR THE FISCAL YEAR 1963-1964;FIXiNG THE AD7OUffi OF MONEY TO BE RAISED BY AD VALOREM TAXES; AND FIXIDIG THE AD VALOREM TAX LEVY FOR THE CALENDAR YEAR 1963 was publicly discussed. On motion of Vice-Mayor Aiello, seconded by Councilman Hahn, Couneilman Bell; Mayor•Tatoul voting aye, Councilmari~Beery voting. nay, proposed Resolution X177 was adopted. Councilman Beery distributed the following statements concerning the proposed 1963-64 Village budget to the Council and requested the statements be inserted in the minutes of the meeting. The two statements follow: October 22,1963 Gentlemen: In 1960, the residents of the Village of North Palm Beach voted overwhelmingly to purchase the present Country Club property. Two considerations were uppermost in the minds of most of the Village residents at that time: (I) the desire to maintain the recreational use of this land and to prevent its use as building sites by the developers of the Village of North Palm Beach, and (2) to provide improved and expanded facilities for recreation and to encourage wide public use of these facilities, so that the acquisition and operation of this Country Club property would produce sufficient income to maintain itself and to pay off the general obligation bonds, which were issued to guarantee the purchase price of the property. The first year's operation of the Country Club shows that the Village homeowners have supported this Country Club only to a Limited extent as the following figures shocu: Golf Pool Village Homeowners 302 411 Non-residents 479 109 Total 773 520 y This indicates that only 18~~of the Family Units are participating in the Golfing portion of the Country Club and slightly less than 25~ of the Family Units are members of the pool. In other words, the non-resident members of our recreational facilities are paying a much greater portion of the actual costs, because in addition to Golf memberships, we have a large greens-fee paying group wham we know are also primarily out-of-town residents. This means that the Village homeowners have elected to pay their share of Country Club expenses by taxes. The financial success of the first year of operation of this Country Club has been less than anticipated, therefor, it is necessary to increase Village taxes by two to three mills in order to have the $88,600 necessary to meet the next bond payment on the Country Club when it comes due. Golf memberships costs for Village homeowners and outsiders are also being increased to help guarantee the financial solvency of your Country Club operation. Your Village government is continuing to operate within the seven mill limitation of the past four years, which means that the return to our nine mill rate of 1958 has become necessary only because of the greatly expanding Village participation in the recreational business. As a reminder, in 1957, the millage rate in the Village was ten mills; in 1958, it dropped to nine; and in 1959, it eras lowered to seven to stimulate the purchase of property and the building of homes in the Village. Prom 1959 until 1962, your Village -overnment has operated on a seven mill basis, usually on a deficit basis for the last two or three months of each fiscal year. In other words, it appears that it has actually taken seven and a half to eight mills to operate the Village government each year with the difference between the seven 1•re collected and the seven and a half to eight required to operate the Village being borrowed from next years tax revenue. P!e personnaly feel that this is the time that we should set our millage rate realistictly in view of the type of services which our citizens and various interest groups throughout the Village are demanding. Harold w. Beery, Councilman October 24, 1963 Gentlemen: I would like to have the following two statements attached to the minutes of this budget meeting. I will first read a setter shich I wrote to the members of this Council on October 18, 1963. Now, I will read a memo commenting on the decision of the majority of the members of this Council regarding the budget and the millage which we have recommended this year. This proposed two mill increase in our tax rate for 1963-6$ will force a continuation of the deficit financing which we have engaged in as a Village since the Village's inception. My concern over a continuation of this practice is that the deficit this year is so substantially higher than it ever has been in the past, that I fail to see how we can continue to operate on a seven mill basis, for Village operation, and still repay the notes, loans and interest due at the First American Bank and also pay the accounts payable at the North Palm Beach Country Club. These two items alone amount to $126,600 and represents money spent by this Council to start operation at the Country Club. I feel that the residents of this Village will, when given all the facts do any- thing possible to help the Village Government to reduce this deficit in 1964 and in subsequent years and I am calling this to the public's attention because I want a clear understanding of why I personally will oppose any but the most essential spending for routine itPm~ during the next four to six months. Durino +L-s time, we will keep C a very close and accurate check on our actual anticipated revenue we asked our City b?'anager to balance our budget. I am writing this memo that those groups who have money set aside for Village General Operation Bond Payment Account General Fund Debt Service Future 9IT~'6 8 Mills 2.65 Mills 1 A?ill (3 Years) Page 2. Particular use in the 1963-64 Budget year will be completely cog- nizant of the cash position of the Village, and will understand if their requests for funds are delayed until late in this fiscal year or until we have an opportunity to determine whether or not we have this money to spend for other than completely necessary Village functions. The Village Attorney Advises that it will take 2.65 Mills to guarantee the Country Club Bond payment account. In view of this, I fail to see how the Council can in good conscience and using their best business judgement increase taxes Iess that this amount for debt service on the Country Club Bond. OI<r present accounts payable and notes at the bank would require over $2,000,000 in sales at the Country Club, assuming a 6~ net profit on our sales, in order to earn sufficient money to offset this deficit which was incurred in 1962-63. I am sure you will agree that it is unrealistic to plan on slaes or profit in this amount from our Country Club operations. I, therefore, feel that an increase in Village operating millage of one Mill is imperative if we are to truthfully balance the General Fund Budget for the 1963-64 year. The $126,600 we now owe might be liquidated with a temporary one Mill debt service levy £or the next three years. and this I very strongly recommend. This arrangement will assure . sufficient cash to operate the Village on a sound basis. It wi31 guarantee a systematic reduction of our present Country Club incurred debt over the next three years and will satisfy the bond holders of the Country Club bond. I can not agree to less than this unless we substantially reduce the anticipated expenditures in this current budget. Present iTb ~- "63' 7 Mills -0- -0- Harold N'. Beexy Councilman On motion of Councilman 8e11, seconded by Councilman Hahn, all members voting aye, proposed Resolution #178 entitled A RESOLUTION OF TFiE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALD? BEACH, FLORIDA, RATI- FYING AND APPROVING A BUDGET FOR THE OPERA- TION OF THE NORTH PALA? BEACH COUNTRY CLUB RECREATION FACILITIES FOR THE FISCAL YEAR 1963 - 1964. was adopted. On motion of Councilman Hahn, seconded by Vice-A4ayor Aiello, all members voting aye, proposed Ordinance #85 entitled AN ORDINANCE OF THE VILLAGE OF NORTH PAL1d BEACH, FLORIDA, MAKING IT UNLAf~'FUL TO ERECT OR MAINTAIN, OR TO PERD4IT THE ERECTIODI OR MAIN TENANCE OF ANY STRUCTURE OF ANY KIND, INCLUDING A MALL, UPON, ACP,OSS, OVER OR UNDER ,p OF ANY PUBLICLY DEDICATED UTILITYi~ ASED-'ENT AREA ~lJr<~~'~e IN THE VILLAGE; PROVIDIPdG PENALTIES FOR THE VIOLATION HEREOF AND FOR THE DENIAL OF BUILDING PERMITS NIHERE SAA?E INVOLVES SUCH A VIOLATION; AND FOR OTHER PURPOSES. revenue, versus the to estimate in order with the sincere hope there +was placed on first reading and read in full. On motion of Councilman Beery, seconded by Vice-D9ayor Aiello, all members voting aye, proposed Ordinance #85 was amended by striking the words "or fence" wherever it appeared in the Ordinance. On motion of Vice-Mayor Aiello, seconded by Councilman Beery, all members voting aye, the rules were waived and proposed Ordinance #85 as amended was placed on second reading and read in full. On motion of Councilman Hahn, seconded by Councilman Bell, all members voting aye, proposed Ordinance #85 as amended was enacted. A request of the North Palm Beach Presbyterian Church that a utility easement be granted to permit electric power connections was discussed. On motion of Councilman Beery, seconded by Councilman Hahn, all members voting aye, the Village Attorney was directed to prepare a six-foot utility easement grant in accordance with the Church request. 0n motion of Councilman Hahn, seconded by Councilman Beery, alI members voting aye,the U.S. Coast Guard Auxiliary Flotilla #51 was granted permission to erect a boating bulletin board in the Village boat area at a location to be determined by the Village T9anager and with the understanding it will be removed at any future request of the Village Council. • On motion of Councilman Hahn, seconded by Councilman Beery, all members voting aye, the Village Manager was instructed to employ hir. t4illiam G. lUallace to make 12 test borings at a cost of $20. each at locations in the west Country Club option land area to be determined by Mr. SU. G. Carver, Building Official. There being no further business to come before the Council, the meeting was adjourned at 9:45 p.m. on motion of Councilman Hahn, seconded by Councilman Beery, all members voting aye. ALBIN R. OLSON Village ~• `.: