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Home My WebLink About09-23-2020 Minutes Final Budget Hearing OCOEE CITY COMMISSION Ocoee Commission Chambers 150 North Lakeshore Drive, Ocoee, FL September 23, 2020 MINUTES 6:00 P.M. I. CALL TO ORDER A. Invocation and Pledge of Allegiance Due to technical issues, Mayor Johnson called the final budget hearing to order at 6:12 PM in the Commission Chambers of City Hall. The invocation was led by Mayor Johnson followed by the Pledge of Allegiance to the Flag. B. Roll Call and Determination of Quorum City Clerk Sibbitt called the roll and declared a quorum present. Present: Commissioner Brinson, Commissioner Wilsen,Mayor Johnson, Commissioner Firstner, Commissioner Oliver Also Present: City Manager Frank, City Attorney Cookson, City Clerk Sibbitt, Finance Director Roberts II. PUBLIC HEARING A) Announcement by Mayor Johnson • Mayor Johnson announced the following, "Due to COVID-19 City Hall is closed to the public and is subject to change based on the Governor's Executive Order. The public may attend through electronic media by watching live on Spectrum Channel 493 with a live stream at www.ocoee.org. Any interested party is invited to offer comments and/or questions during the hearing by emailing citizens@ocoee.org or calling 407-554-7118." B) Briefing by Director of Finance on the percentage increase in millage under the rolled-back rate necessary to fund the budget and the specific purpose for which ad valorem tax revenues are being increased. Finance Director Roberts announced that subsequent to the Tentative Budget Hearing, Finance performed a final review, and adjusted the budget for those corrections as well as requests from City management. These adjustments did not affect the tentative millage rate of 5.15. The Mayor and Commissioners were provided a schedule of these changes which, if approved, will be included in the final budget books. Those adjustments were: • $100,000 was added to General Fund Transfers In for administrative costs as a result of truing up the funds after final review • General Fund beginning cash revenue was reduced by $76,500 • $24,000 was added for the November 1920 Observance from surplus contingency funds • $2,000 additional funding was added to community grants Final Budget Hearing September 23,2020 • $1,500 additional funding was budgeted for the Mayor and Commissioners for Travel and Miscellaneous expenses • $20,000 was added to the City Managers Training budget for Diversity Training • $9,000 additional funding was added to the Street Operations capital budget to fund traffic calming projects • $250,000 was added to the Utility Funds capital budget to fund potential land purchases • $82,000 was added to the Utility Funds professional services for an unanticipated service study The total budget for the City of Ocoee is $85,530,745 up by $355,500 from the tentative budget hearing as a result of the adjustments previously noted. The General Fund Budget is $52,930,550, an increase of $23,500 over the tentative budget hearing, and is balanced at 5.1500 mills as approved by the Commission at the tentative budget hearing. The difference between 5.1500 mills and the roll-back rate is .1392 mills, $441,631, or 2.78%. Ad Valorem taxes are used to finance City operations including providing quality city services, maintaining city infrastructure through capital projects, and funding salaries for city employees as required to provide services. The increase in ad valorem revenues over 2020 will be used to off-set anticipated reduction in other revenue sources resulting from the impacts of COVID-19. 1. Comments by Citizens Mayor Johnson opened the floor for public comments. No speaker reservation forms, telephone calls, or emails were received; therefore, the public hearing was closed. 2. Comments by Commissioners Mayor Johnson asked for clarification on the $24,000 for Community Promotions. Finance Director Roberts advised this was added for the November 1920 Observance event. Mayor Johnson further inquired about the proposed adjustments to the tentative budget for training, travel,and Utilities—Professional Services. Finance Director Roberts and City Manager Frank addressed his questions. Commissioner Firstner inquired if the $24,000 would cover the needs of the HRDB. City Manager Frank advised there is $6,000 already budgeted in their line item, and the board had presented a proposed budget of$30,000. Commissioner Wilsen inquired about the Contingency Funds and Reserves. Finance Director Roberts and City Manager Frank addressed her questions. Mayor Johnson inquired about adding discretionary funding of$10,000 for each elected official assuming it will not raise the millage rate. City Manager Frank explained how adjusting the beginning cash balance from $76,000 to $26,000 would allow them additional funding without changing the millage rate. 2 ' Page Final Budget Hearing September 23,2020 Commissioner Brinson asked for the definition of traffic calming. Public Works Director Krug addressed this question. Commissioner Oliver inquired if the $24,000 would be enough for the HRDB, and if they have enough time to coordinate an event since their event is to occur in less than 40 days. He further commented that he agrees with the discretionary funding as this will allow them to assist with organizations within the community. C) Amendments to the Proposed Tentative Budget Motion: Move to amend the tentative budget of the City of Ocoee as follows: addition of$10,000 for each Elected Official as discretionary funds to award at their discretion without needing City Commission approval; Moved by Commissioner Wilsen, Seconded by Commissioner Brinson. Motion passed 5-0. Motion: Move to amend the tentative budget of the City of Ocoee as follows: approval of Exhibit "1" with the adjustment of the Beginning Cash balance from ($76,000) to ($26,000) and the addition of a line item of $50,000 for District Special Projects; Moved by Commissioner Oliver, Seconded by Commissioner Wilsen. Motion passed 5-0. D) Announcement by Director of Finance of the proposed final millage rate and the percent by which the proposed millage rate exceeds the rolled-back rate. This percentage is the proposed final percentage increase in property taxes. Finance Director Roberts announced that the proposed final millage rate is 5.1500 mills, and the percent by which the proposed millage rate exceeds the rolled-back rate is 2.78 %. This percentage is the proposed final percentage increase in property taxes. E) Adoption of Final Millage Rate City Attorney Cookson announced the name of the taxing authority is the City of Ocoee. The rolled-back millage rate is 5.0108 mills. The percentage by which the proposed millage rate exceeds the rolled-back rate is 2.78%. The millage rate proposed by the Ordinance is 5.1500 mills. City Attorney Cookson read the title of the ordinance. 3IPage Final Budget Hearing September 23, 2020 The ordinance as adopted carries the following title: ORDINANCE NO.2020-022 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A FINAL MILLAGE RATE OF 5.1500 MILLS FOR AD VALOREM TAXES FOR THE CITY OF OCOEE FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020, AND ENDING SEPTEMBER 30, 2021; PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR 2.78% INCREASE IN MILLAGE RATE OVER THE ROLLED-BACK RATE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 1. Comments by Citizens Mayor Johnson opened the floor for public comments by citizens. No speaker reservation forms, telephone calls, or emails were received; therefore, the public hearing was closed. 2. Comments by Commissioners on Final Millage Rate Commissioner Brinson shared he would like to comment on a proposed amendment that he did not see in the budget. He explained the proposal of a salary increase for Elected Officials of 3% beginning from the enactment of their salary in 1998 to the current year; and further, going forward when an increase is proposed for the general employees the City Commission can consider the same increase as well. Finance Director Roberts asked for clarification as her understanding was that he was seeking the 3% increase to begin when the Elected Officials took office. Discussion ensued regarding the stipend and salary of the Elected Officials. Commissioner Wilsen shared she is not in favor of going back to 1998, but will agree with an increase from this point forward to receive the same percentage as the general employees. Commissioner Firstner shared he supports the proposal made by Commissioner Brinson as it is a fair proposal. Mayor Johnson inquired if the increase could be done without affecting the millage rate. City Manager Frank explained their increase would not go into effect until after the next election as stated in the code; therefore, the $26,000 that was to go back into reserves could be used to cover that portion of their salary increase. Commissioner Oliver shared this is not about an increase in their salary, but about having a mechanism in place from this point forward as the City grows. City Manager Frank shared the City Commission can vote on the amount of funding needed for this increase this evening; however, the increase of their salary would still need to go before the City Commission for a first and second reading of ordinances. 4IPage Final Budget Hearing September 23,2020 Recess was taken from 6:50 PM— 6.•57 PM Motion: Move to amend the tentative budget of the City of Ocoee as follows: approval to remove$7,637.77 from the Beginning Cash balance of($26,000)for City Commission salary increases to be approved by an ordinance that will be presented after the 2021 Municipal Election; Moved by Commissioner Brinson, Seconded by Commissioner Oliver. Mayor Johnson opened the floor for public comments by citizens. No speaker reservation forms, telephone calls, or emails were received; therefore, the public hearing was closed. Motion passed 4-1 with Commissioner Wilsen opposing. Commissioner Wilsen asked for clarification on the travel and miscellaneous line items listed in Exhibit"1". A brief discussion ensued. Commissioner Wilsen further shared her discontent with the proposed increase of the City Commission's salaries. 3. Motion to Adopt Ordinance No. 2020-022, Setting Final Millage Rate - 7:04 PM City Attorney Cookson announced the title to the ordinance did not change. The millage rate remains at 5.15 mills with an increase of 2.78% over the rolled-back rate. Motion: Move to adopt Ordinance No. 2020-022 setting a final millage rate of 5.15 mills for the fiscal year beginning October 1, 2020, and ending September 30, 2021; Moved by Commissioner Oliver, seconded by Commissioner Brinson. Motion carried 5-0. F) Adoption of Final Budget City Attorney Cookson read the title of the ordinance. The ordinance as adopted carries the following title: ORDINANCE NO.2020-023 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020, AND ENDING SEPTEMBER 30, 2021; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 1. Comments by Citizens Mayor Johnson opened the floor for public comments by citizens. No speaker reservation forms, telephone calls, or emails were received; therefore, the public hearing was closed. SIPage Final Budget Hearing September 23, 2020 2. Comments by Commissioners on Final Budget Commissioner Brinson commented that he appreciates the Finance Department team as this year has been tough. He hopes the future does not include the current health issues we are dealing with; but if it does, he is confident that the City has a great team to address those issues. Commissioner Wilsen echoed Commissioner Brinson's sentiments, and also thanked the City staff for a great job. Commissioner Firstner thanked the City Manager's Office and City staff for a wonderful job. The City is healthy and moving in the right direction. Commissioner Oliver echoed the sentiments of the Commissioners, and shared this is the lowest he has seen the millage rate since he has lived in the City which is great especially during this pandemic. Mayor Johnson expressed the same sentiments as the Commissioners, and commented that he feels the City staff is one of the best and represents the City well. 3. Motion to Adopt Ordinance No. 2020-023, Adopting Final Budget- 7:09 PM Motion: Move to adopt Ordinance No. 2020-023, approving a final budget for the Fiscal Year beginning October 1, 2020, and ending September 30, 2021; Moved by Commissioner Oliver, Seconded by Commissioner Firstner. Motion passed 5-0. III. ADJOURNMENT The meeting was adjourned at 7:10 p.m. APPROVED: Attest: Ci of Ocoee 7/44,/i.),ZgK7 Melanie Sibbitt, City Clerk Rusty Johns or Wage