BUDGET PUBLIC HEARING

Wednesday, September 21, 2005

MINUTES

The Town Commission of the Town of Melbourne Beach, Florida met in special session on Wednesday, September 21, 2005 in the Community Center at 509 Ocean Avenue beginning at 6:30 p.m.

Present were Mayor William Stacey, Vice-Mayor Sandy Wilson, and Commissioners Paul Guglietta, and Donnie Price. Also in attendance were Town Manager W.D. Higginbotham, Town Attorney Paul Gougelman, Police Chief David Syrkus, and Town Clerk Patricia Burke.

Mayor Stacey called the meeting to order and led the audience in the invocation and the Pledge of Allegiance to the Flag.

********

As required by law the Town Manager read a statement indicating the first substantive issue to be discussed was that of the percentage increase in millage over the rolled-back rate necessary to fund the budget and the specific purposes for which ad Valorem tax revenues are being increased. The Town Commission had adopted a tentative operating millage rate of 2.8665 representing a 9.99 percent increase over the rolled-back rate of 2.6060. The Town Manager also announced that the Town Commission has also adopted a tentative millage rate for the voter-approved debt service for the public library. He indicated that the proposed millage was to cover the principal and interest on the outstanding dept is .1778 and that last year's millage rate was .2116.

********

Resolution 05-2005

The Town Attorney read Resolution 05-2005 by title.

Motion made by Commissioner Price to adopt Resolution 05-2005 adopting the final levy of debt service taxes on all taxable property within the Town of Melbourne Beach, for Fiscal year 2005/2006. - Seconded by Vice Mayor Wilson.

At this point, the Mayor opened the floor for public discussion and comment.

Tom Shaw - 406 Riverside asked where in budget he would find funding for legal issues. The Town Manager responded that the figure could be found on page 6 of the budget document. Mr. Shaw also asked if the Town Manager believed that the estimate of revenue received from taxes was a conservative estimate. The Town Manager responded that it was.

Commissioner Guglietta called the question.

The motion was carried unanimously to adopt Resolution 5-2005.

Resolution 06-2005

At this point in the agenda, the Town Attorney read Resolution 06-2005 by title.

Motion made by Commissioner Guglietta to adopt Resolution 06-2005 the final municipal budget for fiscal year 2005/2006 inclusive of a general fund, police education fund, debt service fund, and stormwater utility fund. - Seconded by Commissioner Price

The Mayor opened the floor for discussion.

Bruce Black - 508 Ocean Ave wished to discuss the cost of living raise. He stated that neighboring towns are giving at least 3% and he wanted to know why we have decided to give 2% and that he believed it was too low. He also believes that the funds are in the budget to provide more.

The Town Manager stated that the amount being approved was 2%. Commissioner Guglietta stated that there had been many discussions regarding the cost of living increase and the commission finally decided on a 2% increase. He indicated that his reason for 2% now and 3.5% on the employees anniversary date is because employees will have something to offset the cost of living until their raise. It will give them something now.

Commissioner Price stated that his reason for voting for the 2% increase was because there was a strong effort to lump the 2% and 3.5% together on anniversary date. He stated that he felt there should be an immediate cost of living increase. He believed that 2% was a fair number. He continued stating that hard data was not available as to what the cost of living would be.

The question was called by Commissioner Guglietta.

The motion was carried unanimously to adopt Resolution 06-2005

VI. The Public Hearing was adjourned at 7:10 PM.

William G. Stacey, Mayor

ATTEST:

Patricia J. Burke, Town Clerk