Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
City manager outlines Highland Beach audit result, waste-franchise history and next steps on impact fees
Summary
City manager presented audit findings and financial updates May 5: Delray's records show the city may be owed between $2.1M and roughly $3.8M from Highland Beach over shared fire-rescue charges; staff summarized the city's waste-franchise timeline, recovered $2.1M through meter/accounting work and said an impact-fee ordinance is being prepared.
City Manager Mr. Moore delivered an extended presentation at the May 5 Delray Beach City Commission meeting covering operations, claims and fiscal priorities.
Highland Beach audit and receivable: Moore reviewed a multi-year dispute arising from emergency services provided by Delray Beach Fire Rescue to the town of Highland Beach. He said the Florida Auditor General'initiated audit found Delray Beach was owed at least $2.1 million for services, and that an independent accounting firm (Citroen Coopererman) later calculated a higher amount (presented as at least $3.8 million in staff discussion). Staff said they are engaging options to pursue collection and that the commission will need to direct any next steps, including potential legal or negotiated resolution.
Solid-waste franchise history: Moore traced the franchise history: a March 2015 franchise with Southern Waste Systems LLC that was assigned to Waste Management Inc.; the city exercised renewal options and completed an RFP leading to a Waste Management franchise agreement executed Feb. 21, 2023 and effective through Sept. 30, 2030 (with the currently effective rate resolution 113-25 through Sept. 30, 2026). Staff noted single-family monthly rates and compared Delray's position favorably with neighboring jurisdictions, but commissioners asked how an earlier contract decision altered costs for residents.
Utilities and Badger meters: The manager highlighted organizational changes in utility billing, collection efforts on delinquent accounts (about 3,200 accounts), and replacement of defective AMI Badger endpoints (5,819 replaced); staff reported a recovery of over $2.1M in lost revenue after corrective actions and reorganization. Work included reducing manual reads and lowering overtime hours.
Impact fees: Moore said a draft impact-fee study had been delivered (staff referenced a December 2025 draft) and that an ordinance implementing revised impact fees was being prepared; once adopted, software programming and a transition process would follow. Commissioners pressed staff for faster action and highlighted the long-term revenue consequences of delaying impact-fee adoption. Staff noted that phased-in adoption and statutory caps under Florida law can limit catch-up revenue and recommended careful ordinance design.
Claims and settlements: The presentation summarized sovereign-immunity caps under Florida Statute 768.28 ($200,000 per person, $300,000 per incident) and explained that settlements above $500,000 typically involve federal claims or matters outside state caps. Moore said more significant claims require commission-level direction.
What's next: Commissioners asked for follow-ups on (1) a plan to pursue Highland Beach payments or litigation options, (2) an expedited timetable and public explanation for the impact-fee ordinance and any proposed phasing, and (3) a staff report clarifying recovered revenue, outstanding write-offs, and criteria for proposed invoice write-downs.
