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HomeMy WebLinkAbout09-24-07 Final Budget Public Hearing CITY OF OCOEE FINAL BUDGET PUBLIC HEARING Ocoee Commission Chambers September 24, 2007 MINUTES 7:00 P.M. I I. CALL TO ORDER - Mayor Vandergrift Mayor Vandergrift called the Final Budget Public Hearing to order at 7:00 p.m. in the Commission Chambers of City Hall. City Clerk Eikenberry called roll and declared a quorum present. Mayor Vandergrift announced that this is an advertised public hearing to finalize the budget and adopt a final millage rate for the City of Ocoee. The City Commission has previously approved a tentative millage rate of 4.6251 mills which represents a 7.7546% increase in millage over the rolled-back rate of 4.2923 mills. Roll Call: Commissioner Hood, Commissioner Anderson, Mayor Vandergrift, Commissioner Keller, and Commissioner Johnson. Also Present: City Attorney Rosenthal, City Manager Frank, City Clerk Eikenberry I II. PUBLIC HEARING Summary of Legislative Action. City Attorney Rosenthal said the maximum millage rate which may be levied by the City by regular majority vote for the 2007-2008 fiscal year is 4.077 mills, such maximum millage rate having been determined pursuant to Section 200. 185(3)(a), Florida Statutes. This is part of the amendment package adopted by the 2007 Florida Legislature. This maximum millage rate may be increased to the rolled-back rate of 4.2923 mills by a two-thirds vote of the City Commission. The establishment of a millage rate between 4.0778 mills and 4.2923 mills requires a two-thirds vote of the City Commission. This maximum millage rate may be increased to the non-voted millage rate that was levied in the 2006-2007 fiscal year by a unanimous vote of the city commission, such rate being 4.6251 mills, as reduced at the Tentative Budget and Millage Hearing. The establishment of a millage rate between 4.2924 mills and 4.6251 mills requires a unanimous vote of the City Commission. A. Briefing by Director of Finance on the percentage increase in millage under the roll-backed rate necessary to fund the budget and the specific purpose for which ad valorem tax revenues are being increased. Finance Director Horton advised that the percentage increase in millage over the roll-backed rate that is necessary to fund the proposed budget is 7.7546; ad valorem tax revenues are being increased by $770,573.00 to provide funding for operating expenses and programs, capital improvements, and the purchase of equipment and vehicles. Page 2 1. Comments by Citizens. Mayor Vandergrift opened the Public Hearing. There were no comments at this time. 2. Comments by Commissioners. The Mavor's proposed reductions. Mayor Vandergrift said the Commission has before them a proposal that he made that only requires a super majority vote, not a unanimous vote. He said in his model, no personnel positions are deleted; some positions are being held until mid year; new programs were cut and capital programs were cut. He said the Governor, who put us in this position, is having a shortfall in the state budget but they are not cutting programs, they want the cities to make all of the sacrifices. City Manager Frank clarified that there two handouts before them, the one in the portrait mode is the new one that is being suggested by the Mayor. The handout in the landscape mode is the one showing where they left off after the last tentative budget session. Commissioner Hood asked for clarification on the spreadsheet as far as items that were zeroed out. City Manager Frank said that the "O"s on the spreadsheet meant there was no reduction recommended with what has been presented at the previous meetings. City Manager Frank also corrected two errors on the spread sheet: The item for Central Park should show a reduction of $200,000, not $100,000 as shown (taking it from the proposed $300,000 to $100,000). The item for the road paving program should show a reduction to $100,000 (not $200,000 as shown) Commissioner Hood clarified that the Christmas Light Decorations have no reduction and remain at the $40,000 that was proposed. Commissioner Anderson said if we are looking at wants vs. needs, we should compare the money for Holiday Lights vs. paving jobs and Central Park repairs that we are cutting. City Manager Frank clarified that the $40,000 is the pay for rental of the holiday decorations. Mayor Vandergrift stated that some of the paving can be moved to next year. Commission Hood asked why the soccer field money is cut. City Manager Frank said we had a $75,000 matching field of Dreams grand, but the County is not doing the grant program this year, so that can be removed from the budget. Commissioner Hood asked questioned the proposal to have OGTV only have live coverage for the Commission Meetings. Commissioner Keller said the list includes many items that the Commission should consider cutting, they are not suggesting the Commission cuts everything on the list. We need to look at the items and decide where to make the cuts. He said he is concerned about putting off infrastructure issues such as the road paving because we may have less money next year to work with. He asked if we really need to spend $240,000 for the clinic this year when we have pressing infrastructure issues. Discussion pursued regarding the savings in the cost of health care that could be realized from the clinic. Commissioner Anderson asked about the formula for next year if we went with 4.2 and we had the same amount of properties. He clarified that it is $231,000 per 1/10th millage point. The difference between 4.2 and 4.6 is $846,000. Page 3 City Attorney Rosenthal said that there is already a new formula in the Statutes for next year so we know what that will be, assuming that the legislature makes no more changes. In the statute, they enacted special procedures for 2008-2009, in which you calculate the maximum millage rate, which is the roll back rate applied to your revenue, except that ad valorem tax revenue levied this fiscal year shall be reduced by any tax revenues resulting from a millage rate approved by a super majority vote of the governing body of the taxing authority in excess of the maximum rate that could have been levied by a majority vote. So when they calculate the roll back rate for next year, they will reduce all the revenue that is generated from anything in excess of 4.0777 mills. That would be the majority vote; then if you want to go above that, you can go to 110% of that amount by a two thirds vote, and by a unanimous vote you can do whatever you want or "the rate in excess of the millage allowed" as stated in the statute. Commissioner Anderson said that would put the millage rate next year at 3.79%. Commissioner Hood asked why we are considering removing the $25,000 grant to Ocoee High School when we spend $31,000 last year. Commissioner Keller added that those numbers are for the last three years, last year we only gave them approximately $12,000. Commissioner Johnson said he is just trying to help the high school and keep them from coming before the Commission all year long. He said he thinks it is more beneficial than spending money on Charter Schools and things that are never going to happen. He added that he wished the Mayor had not called the school and talked to people about what his intentions were. Mayor Vandergrift said he has been talking to them about trying to create a foundation so that donations could be made to a specific account and then there could be a process on how to disburse it. He added that they created the CMA grant awards to prevent people from randomly asking the Commission for money. Commissioner Johnson said if we give this money to Ocoee High School this year, the principal will take responsibility to track and report the disbursements and no group from the school will be allowed to ask the City for more money via commission or grant programs. Commissioner Keller said it appears from the handout that within the last fiscal year we gave all schools about $25,000, about $12,000 of that went to Ocoee High School. Commissioner Anderson said I can't imagine giving them more money than we gave them last year when we are trying to reduce our entire budget by 7%. They way we ended at the last meeting is if we don't go to the 4.26 millage rate, we will just have a super majority, so we need to review the list for wants vs. needs to see what we can do. Police Chief Reffett added that the cost to the City is $52,000 for the School Resource Officer program and only receive $22,000 for those services. He said he just wanted them to understand that we already invest in the schools in that manner. Mayor Vandergrift said we need to look at road paving, other ways to operate OGTV, etc. Commissioner Anderson said can just make a motion to adopt the millage rate at 4.2923 and then add things on to it just to get to the discussions. City Attorney Rosenthal said you cannot adopt a millage rate until your amended budget needs to match the millage rate. You cannot vote on the millage rate first. Commissioner Anderson asked the Mayor if he feels that we need to go to the roll back rate at 4.2923 or will you go up to the 4.5823. The Mayor said he would not vote for anything over the roll back, but they can go to that with a super majority vote. Mayor Vandergrift confirmed that with the $25,000 back in the budget, we would still be under the roll back rate of 4.2923. Commissioner Hood asked what the revenue difference was between 4.2923 and 4.2638 millage rates. Page 4 Commissioner Keller asked how bad it would be to add a fire service fee. Commissioner Anderson said he feels that doing that would be like what the state did with the lottery. They added money in from the lottery for education, but removed just as much money at the same time. He does not have a problem with implementing a fire fee at a low percentage, but that should not influence what we want to do with the budget. Commissioner Hood said to go to the higher millage rate would only cost people $12 per month, and he thinks everyone should be agreeable to that to leave in programs, etc. If we can't do that we should go back to the roll back rate and just cut everything including personnel, police, fire, etc. Mayor Vandergrift asked what happens if there is an impasse in adopting a final budget. City Attorney Rosenthal said if there was an impasse he would recommend they continue the public hearing in order to consult with the state; there is a provision in the statute that says if a final budget is not adopted by October 1, 2008, you would budget and spend based on the tentative budget. The statute does not address what the millage would be; he would need to consult with the Department of Revenue to see what would be placed on the tax bill as far as millage. The statue also imposes penalties such as revenue sharing for failure to adopt an Ordinance for the Final Budget and Final Millage and transmitting it to the State of Florida. Mayor Vandergrift asked Public Works Director Krug to review the streets scheduled for repaving. Mr. Krug reviewed the list. He advised they may be able to last another year, but the quality of the streets would decrease and the repairs would increase. He also added that costs are rising, so the longer we wait the less we can do with the same money. City Attorney Rosenthal explained the order in which the process has to occur. They need to make all intended amendments to the tentative budget. Next, they would have to adopt the millage rate to fund the budget. Last, they would adopt the Final Budget. City Attorney Rosenthal asked Finance Director Horton what the percentage increase over the roll back it would be if the millage rate is 4.2638. Ms. Horton said it would be a decrease of .6629 from the roll back which is 4.2923. 3. Motions by Commissioners for amendments to the proposed tentative budget. Mayor Vanderarift moved amend the tentative budaet deletina all of the items listed in red on Mayor's handout, except for the $25,000 donation to Ocoee Hiah School which would remain in the tentative budaet: for a total reduction of $712,500 from the tentative budaet and leave a millaae rate of 4.2746. No vote was taken at this time due to subseauent discussion. The finance department confirmed that would be cutting $712,500 leaving the millage rate at 4.2746. Commissioner Anderson asked how much money that would give us to spend to get to the roll back rate of 4.2923. The finance department advised it was $40,926. City Attorney Rosenthal said if you wanted to come up to the 4.2923 mills you could add into the budget, or amend the motion to add the $40,926. Page 5 Commissioner Anderson said he really thinks he would like the City Attorney to find out what with happen without an agreement on the budget; could we maintain our budget without this motion. City Attorney Rosenthal said he does not think they could go on forever with the tentative budget and millage without some sanction from the state. Commissioner Keller said he thinks they should revisit the fire fee. We can put it in later, but we need to determine at what dollar amount it would be. He said he felt we would be hurting the City if we cut proj ects and did not implement the fire fee. Mayor Vandergrift said we are not doing away with anything; we are reducing some of the funding and delaying some positions. The $145,000 was just thrown in to the contingency fund and is not tied to any proj ect. Commissioner Anderson asked what additional revenue we will realize at the roll back rate with new development. Finance Director Horton said the difference between the roll back rate of 4.2923 and the 4.0777 is $502,000, which is the extra 5% that can be voted on by a super majority. She clarified that we would add that amount back to what we originally proposed to be revenue neutral. Commissioner Anderson said there was going to be a merit and cola pay increase. Ms. Horton said for the general employees, merit will cost $85,000 and COLA will be $167,000; for Police it is $129,000, and for Fire approx $89,000. Commissioner Johnson asked the City Manager if we could subsidize some of the budget problem this year with some of the $10,000 that is in the reserves. Finance Director Horton said the recommended amount to keep in reserves is between 20% - 40%, we are trying to keep at least 25% in this budget. City Manager Frank said we don't know what will happen next year, we may have to go 10% below the roll back rate and take money from reserves at that time. We have gone from $12,000,000 to $10,000,000 in the last year and would not want to continue that trend to fund operational things or capital projects. Commissioner Johnson said he thinks the markets will turn around in the next year and then we can address the fire fee if necessary, etc. He thinks it would be best to subsidize the budget this year with reserves and not start making so many cuts. He is not in favor of doing this every year. Commissioner Anderson asked if we should be looking at water and solid waste rates. Now that we will not have as much money in our general funds we need to look at that. City Manager Frank said that we have an automatic escalator in our stormwater fees; we are looking at doing commercial solid waste in house; and we are doing a sufficiency study on the utilities side. We will be coming back to the Commission with recommendations in the near future. He added that the CRA will be able to fund some projects also as it starts to generate more revenue each year. Mayor Vandergrift opened the Public Hearing. James Fleming, 511 Orange Avenue, said he does not understand what the state is up to; but if we vote for that constitutional amendment they will be setting our millage rate in the future. He wants the level of services to stay the same, or improve. He would like to see us charge non- residents for use of the boat ramp. Mayor Vandergrift said they can vote for the motion on the floor and then at the next commission meeting vote on moving money out of the reserve fund. Commissioner Johnson said $250,000 from the reserves could be added to our revenue and that should help us accomplish the paving and other projects that we wanted to get done. Page 6 Commissioner Keller said we are removing $712,500 and then adding $250,000 in reserves so we are still short $462,500 short to be able to complete all those projects. He said removing $712,000 from reserves to cover ALL the projects that would probably affect our bond rating. City Attorney Rosenthal said if the plan is to move money from cash carry forward or reserves into next years budget and it is not done tonight the only way to do it in the future is an amendment to the budget at an advertised public hearing following procedures in the Statutes and the Charter. If you do it tonight, you can have a motion to amend the tentative budget to move the reserve funds in. If you are doing this you should match up new revenue from the reserves with the items that were going to be cut. There was discussion about what was already carried forward and incorporated into this proposed budget. BREAK 8:34 p.m. Mayor Vandergrift had City Clerk Eikenberry restate the motion and called for the vote. VOTE Motion failed 2-3, with Commissioner Hood, Commissioner Anderson, and Commissioner Keller opposed. Commissioner Hood said he will vote on anything we do to get the budget down to 4.0777. Commissioner Keller said that he won't go that low. He feels another issue with the fire assessment fee is that this could be our last chance. He thinks the legislature will take that opportunity away from cities. He suggested from the 4.5823 that we started with, approve the fire fee for $550,000, and take out the $145,000 in contingency for projects and that will take us to 4.2822 which is under the super majority vote. We only need a 3-2 vote to pass the fire fee after the budget sessions. He felt they made a mistake last year not keeping money in the contingency fund for projects, but he now realizes to try to do that this year with the $145,000 would require a majority vote and that is not going to happen. The other $550,000 could be added in as a Fire Assessment Fee. Commissioner Anderson said we don't have to discuss the fire fee tonight. Commissioner Keller said in order to figure out our budget tonight, we need to know any additional funds that will come from the fire fee. Commissioner Johnson stated he will not support a fire fee. Commissioner Keller said if you leave the $550 off at this time, you will have a 4.5197 millage rate which is too high because it would require a unanimous vote. He added that right now, we are at 4.5823 at the end of the tentative budget hearing; if we remove the $145,000 out of capital contingency projects and then figure out how we are going to fund the other piece to get us below 4.2923 (super majority vote). Commissioner Anderson said that 737,000 could be handled by the fire fee later on. He said he would like to leave money in contingency to handle projects. He asked to go down the list item by item to see what is near and dear to each of them. He said everyone was adding things in at the workshops and getting unanimous vote from the Commission; that is why he felt that he should add money for the Charter Schools. Commissioner Hood said everything we have discussed and agreed upon in these four meetings was a waste of time because at the final budget hearing one person won't support it. Commissioner Keller said he agrees, and the only thing to save all the work that we have done during these meetings is to offset the millage by implementing the fire fee. If we don't agree tonight that we will get some additional money from the fire fee, then we will not be able to get to a millage rate that does not require a unanimous vote. We will not get a unanimous vote. Page 7 Commissioner Anderson asked if we don't put the fire fee in at budget time and do it at a later time, we can then apply that money to any part of the general fund. City Manager Frank said you can recognize the additional revenue, put in additional expenditures; however you would have to put in a budget amendment, adopt an ordinance, and hold public hearings. City Attorney Rosenthal said the fire fee is like an enterprise account; we would have to look into technical standpoint of how to match up the revenue and expenses. Commissioner Hood said we were all in agreement in the workshops; then we would have had an opportunity to look at extended day care program, citizen program, or other programs to cut back on, instead of trying to push all the cuts through at the last minute. Mayor Vandergrift said Commissioner Hood just stated he is not voting on anything but the entire roll back, he had not said that in previous meetings wither. He said he voted on things individually during the workshops and then could not support the whole package when the millage rate went up to unanimous vote. He said he was counting on them to be more fiscally conservative. Commissioner Keller said that he unanimously supported them each time even though Finance Director Horton was telling us all along exactly where we were with the millage; that is why they are having a difficult time understanding why he changed his mind. Commissioner Hood said there are programs that should have been scrutinized more closely during the process if he had known the Mayor was going to change his mind, but now we are starting completely over again on the last night of the budget meetings. Commissioner Keller said if we are not going to agree on the $550,000 for the fire fee tonight, we would have to take it out somewhere. Commissioner Anderson said, "Reserves." He reminded the Commission that he see us continuing to try to do that every year. He felt they should go back down the list of items on the Mayor's list. Commissioner Keller said the only item he could approve of cutting is the ROW maintenance, reducing from 18 to 12 cuts. Commissioner Hood said he does not understand why we can't leave everything in. It is equal to 18 cents per day, or $1.28 per week. Consensus was to go down list of items as submitted bv staff to be considered for reduction or deletion from the proposed budf!et. Delete Soccer Field Lights and Reconfigure City Hall/Police Department Commissioner Keller, seconded by Commissioner Anderson moved to amend the adopted tentative budaet bv reducina the budaet by $75.000 for the soccer field Iiahts because the Field of Dreams arant is not available this year and reduce by J24.000 to reconfiaure city hall/police department because it is no lonaer needed. Motion carried 5-0. Reduce Ocoee TV: $44.000. Discussion regarding the $15,000 @ $5,000 per year we are still paying to WMFE radio. Commissioner Keller asked if we reduce OGTV to cover Commission Meetings only, can we pick up Good Living Magazine and other events in our time slots on the Public Service Television. City Manager Frank said the cost was to produce the segments, not for air time. Community Relations Manager Wright said six shows of Good Living Magazine cost $19,500. There was discussion that Code Enforcement should also remain televised. Page 8 Commissioner Anderson said, at $200-$300 per board meeting, we can decide to take money out of contingency to televise specific meetings, as needed. Commissioner Anderson, seconded by Commissioner Hood moved to amend the adopted tentative budaet by reducina $40,000 from the Ocoee Television item to televise the Commission Meetinas and Code Enforcement Meetinas only. Motion carried 5-0. Delete Funding for Health Insurance: Clinic $240,000 Discussion followed regarding the current insurance, the $240.000 cost of the clinic, savings that would be realized with the clinic, the start up of the HRA insurance program that was Commission previously approved, etc. Commissioner Hood moved to amend the adopted tentative budaet by reducina ~240,OOO for the Health Insurance Clinic line item. Discussion followed regarding keeping the same insurance that we have now. City Manager Frank advised the new insurance has already been approved by the Commission and open enrollment has begun with employees. Motion was withdrawn. Consensus to leave as originally budgeted and not to amend this item. Decrease City Share of Family Healthcare from 70% to 60% $186,984 Consensus to leave as originally budgeted and not to amend this item. Reduce Contingency from $100,000 to $50,000. Commissioner Anderson asked Finance Director Horton how much money they have used from the contingency fund this year. The Commission moved on to other items while she was looking that up. After all items were discussed was no vote on this specific item, therefore consensus to leave as originally budgeted and not to amend this item. Reduce Funding for Central Park from $300,000 to $200,000 Consensus to leave as originally budgeted and not to amend this item. Reduce Police Officers, (3) New $195,000 Chief Reffett said they have 6 openings at this time. Commissioner Anderson, seconded by Commission Johnson moved to amend the adopted tentative budaet by reducina the Police Office line item by $97,500 by hirina them at mid-year. Motion carried 5-0. Delete Part time Fire Inspector change to mid-year $20,000 Deputy Chief O'Neil said they only have one inspector and he IS exceeding capacity. Discussion followed regarding certification requirement. Consensus to leave as originally budgeted and not to amend this item. Neighborhood Matching Grants $20,000 Consensus to leave as originally budgeted and not to amend this item. Page 9 Community Promotion Funding $15,000 Consensus to leave as originally budgeted and not to amend this item. Community Merit A wards Program $30,000 Consensus to leave as originally budgeted and not to amend this item. Ocoee High School Donation Previous motion carried to leave the $25,000 grant as added during budget sessions. Charter Schools $15,000 Consensus to leave as originally budgeted and not to amend this item. Proiects (Capital Contingency) $145,000 Commissioner Keller. seconded bv Commission Anderson moved to amend the adopted tentative budaet bv reducina $145.000 for capital proiects from the continaencv line item. Motion carried 5-0. Traffic Calming CityWide $40,000 Consensus to leave as originally budgeted and not to amend this item. Reroofing Vignetti $22,500 Consensus to leave as originally budgeted and not to amend this item. Reduce Road Paving from $300,000 to $200,000 City Manager Frank clarified that this is the staff s recommendation that reduced this item by $100.000; the Mayor's version reduced it by $200,000. Commissioner Hood. seconded bv Commission Anderson moved to amend the adopted tentative budaet by reducina $100.000 from the road pavina proaram line item. Motion carried 5-0. Delete Seniors Program $78,000 Consensus to leave as originally budgeted and not to amend this item. Reduce or Delete Founder's Day Funding, $50,000 Consensus to leave as originally budgeted and not to amend this item. Employee Gift Cards Consensus to leave as originally budgeted and not to amend this item. Right of Way Maintenance-Reduce from 18 cuts to 12 cuts: $95,000 Commissioner Hood. seconded bv Commission Anderson moved to amend the adopted tentative budaet by reducina $95.000 from the road pavina proaram line item. Motion carried 5-0. Holiday Light Decorations $40,000 Consensus to leave as originally budgeted and not to amend this item. Page 10 Landscaping (reduce from 18 to 12 per year $70,000 Consensus to leave as originally budgeted and not to amend this item. Commissioner Keller asked Finance Director Horton for what she has for the calculated millage rate now, because he is showing 4.2725, which puts them at the super majority vote and if that is correct he would just like to leave everything else alone. Finance Department advised they have the same millage. City Attorney Rosenthal recapped the amendments (reductions) to the budget $75,000 soccer field lighting $24,000 reconfiguring the police department $40,000 OGTV $97,500 police officers new (hiring at mid-year) $145,000 projects capital contingency $100,000 road paving $95,000 ROW maintenance Finance Director Horton said the millage rate with those changes calculated is 4.3761, Discussion followed. Commissioner Keller asked for clarification regarding the Health Clinic reducing the costs next year. Commissioner Anderson said the employees' costs will be reduced right away when they use the clinic, but next year the City will save on the premiums. City Manager Frank said it will lower our experience ratio because of all of the Doctors Appointments will not be calculated when the re-rate us for next year. Commissioner Keller asked if that is enough to offset the cost of the clinic. Mr. Frank said HR Director Carnicella is home recovering from surgery but he would advise that it would will absolutely offset the cost of the clinic. Finance Director Horton advised that $194,000 would still need to be cut to get to the millage rate down to 4.2923, requiring a super majority vote. Commissioner Johnson. seconded bv Commissioner Hood moved to take -'194.000 from reserves and move it into cash carry forward. Motion carried 5-0. 9:36 p.m. RECESS to recomputed the proposed millage rate and rolled-back percentage increase, if required. 9:45 p.m. REURN FROM RECESS Commissioner Keller. seconded bv Commissioner Anderson moved to move an additional $1000 (for a total of $195.000l from reserves into cash carry forward. Motion carried 5-0. Page 11 B. Announcement by Director of Finance of the recomputed proposed final millage rate and the percent by which the recomputed proposed millage rate exceeds the rolled-back rate. This percentage is the proposed final percentage increase in property taxes. City Attorney Rosenthal said the proposed final millage is 4.2919 mills which represents a .0082% reduction in millage over the rollback rate of 4.2923 mills. 1. Motion to adopt Ordinance setting final millage rate. Commissioner Keller. seconded bv Commissioner Anderson moved to adopt Ordinance No. 2007-023, settina a Final Millaae Rate at 4.2919 mills for Fiscal Year 2007 -2008. City Attorney Rosenthal read the title of the Ordinance: ORDINANCE NO. 2007-023 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A MILLAGE RATE FOR AD VALOREM TAXES BEGINNING OCTOBER 1, 2007, AND ENDING SEPTEMBER 30,2008, STATING THE PERCENTAGE BY WHICH THE MILLAGE RATE EXCEEDS THE ROLLED-BACK RATE COMPUTED PURSUANT TO SECTION 200.065 FLORIDA STATUTES, PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. City Attorney Rosenthal announced the name of the taxing authority is the City of Ocoee. The roll back millage rate is 4.2923 mills. The percentage by which the proposed millage rate is below the rolled back rate is .0082%. The millage rate proposed by the ordinance is 4.2919 mills. a. Comments by Citizens Mayor Vandergrift opened the Public Hearing. There were no comments and the Public Hearing was closed. b. Comments by Commissioners No further comments from the Commission. City Manager Frank asked the Commission to vote on the changes to the Capital Project Budget Request, that was page 6 of the Agenda Packet with regard to Road Impact Fees. He said the net effect is a reduction of $50,000. Mayor Vandergrift opened the Public Hearing. There were no comments and the Public Hearing was closed. Commissioner Keller. seconded bv Commissioner Anderson moved to accept the chanaes to the Capital Proiect Budaet Reauest as recommended bv staff. Motion carried 5-0. Page 12 J c. Vote on motion to adopt Ordinance setting the final millage rate. V ote was taken on the motion to adopt Ordinance 2007-023. Motion carried 5-0 2. .~ Motion to_adopt Qrdinance adopting fin~!J)}l!lget. Commissioner Keller. seconded bv Commissioner Anderson moved to adopt Ordinance No. 2001-024. adoptina the Final Budaet for Fiscal Year 2001-2008. a. Comments by Citizens. None b. Comments by Commissioners. None c. Vote on motion to adopt Ordinance adooting the final budget. City Attorney Rosenthal read the title of the Ordinance. Vote was taken on motion to adopt Ordinance 2007-024. Motion carried 5-0. The ordinance, as adopted, carried the following title. ORDINANCE NO. 2007-024 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCOTOBER 1, 2007, AND ENDING SEPTEMBER 30, 2008; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. I c. Announcement by Mayor Vandergrift of end of budget public hearing. Mayor Vandergrift announced the conclusion of the Final Budget Public Hearing. I III. ADJOURNMENT The meeting adjourned at 9:52 p.m. ) Attest: APPROVED: City of Ocoee ~~~ <:- ~W .._' \ !-' Page 13 ./ .. ....-:'/ /f 0 FI-. .... .-. - :........ :........ -.. . I crt yo . ......coee,. .....orida.D;; '.I..... Rroposed~;Budget.> ....... ... . 2007 -20Q8 ... . \)l.)a\ c.. .- . . ..' --~. ~...- .- .. L CITY OF OCOEE FISCAL YEAR 2007-2008 ANNUAL BUDGET WORKBOOK REVENUE SUMMARY Fund: Operating Funds REVENUE FY 04-05 FY 05-06 FY 06-07 FY 06-07 FY 07-08 : DESCRIPTION ACTUAL ACTUAL BUDGETED PROJECTED PROPOSED General Fund (001) 26,399,948 30,936,560 43,195,750 31,022,380 32,949,265 Stormwater Utilitv Fund (103) 1,684,838 1,844,675 2,567,040 2,483;790 2,336,970 Water/Wastewater Utilitv Fund (401) 6,912,759 8,151,029 7,966,060 8,065,895 8,553,360 Solid Waste Utility Fund (402) 1,795,421 2,856,189 2,410,435 2,350,495 2,697,750 TOTAL REVENUES 36,792,966 43,788,453 56,139,285 43,922,560 46,537,345 I I I 1 1 CITY OF OCOEE FISCAL YEAR 2007-2008 ANNUAL BUDGET WORKBOOK EXPENDITURES SUMMARY ALL FUNDS SUMMARY EXPENDITURES FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 DIVISION ACTUAL ACTUAL ACTUAL BUDGET PROPOSED 001 GENERAL FUND 511-00 City Commission 174,684 176,057 163,406 171,630 193,165 512-00 City Manaqer 242,409 265,008 363,388 427,045 447,460 512-01 Community Relations 330,603 285,341 219,252 303,130 284,915 512-10 City Clerk 277,786 263,488 301,649 281,085 267,865 513-00 Finance 670,145 710,783 784,221 779,105 784,765 513-20 Information Systems 307,124 304,058 312,816 333,660 351,260 513-30 Human Resources 379,909 432,361 472,195 483,440 508,200 514-00 Leqal 272,493 196,000 149,950 243,550 230,000 515-00 Plannina 577,697 597,978 577,131 636,635 556,435 516-00 General Government Services 2,292,461 3,371,561 3,602,279 17,765,221 7,725,135 517 -00 Public Works Administration 320,167 192,745 282,563 278,195 264,825 519-00 Facilities Operations 300,680 424,453 1,062,379 580,325 658,860 519-10 Facilities Maintenance - Janitorial 53,505 0 0 0 0 521-00 Police 5,491,828 5,722,229 6,254,697 6,407,930 6,790,690 522-00 Fire 3,988,525 4,243,842 4,470,664 4,269,945 4,424,635 524-00 BuildinQ 1,038,336 1,164,289 1,233,754 1,411,645 1,466,790 529-00 Communications 673,195 657,178 662,713 696,420 731,665 539-00 Cemetery 2,389 310 14,666 26,135 30,135 541-10 Street Operations 175,849 1,245,835 2,424,955 3,418,219 2,605,880 541-20 RiQht of Way Maintenance 1,302,932 406,816 459,283 0 0 541-40 Fleet Maintenance 0 148,978 309,697 1,265,005 1,178,795 546-00 EnQineering 356,272 542,552 589,963 760,755 763,185 I 572-00 Recreation 897,173 900,438 1,060,985 1,208,595 1,246,960 572-10 Parks 873,917 944,995 878,508 1,448,080 1,437,645 Total General Fund Expenditures 21,000,078 23,197,295 26,651,114 43,195,750 32,949,265 2 CITY OF OCOEE FISCAL YEAR 2007-2008 ANNUAL BUDGET WORKBOOK EXPENDITURES SUMMARY ALL FUNDS SUMMARY EXPENDITURES FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 DIVISION ACTUAL ACTUAL ACTUAL BUDGET PROPOSED 103 STORMWATER UTILITY FUND 538-20 I Stormwater Operations 1,127,799 1,627,167 1,530,969 2,567,040 2,336,970 Total Stormwater Fund Expenditures 1,127,799 1,627,167 1,530,969 2,567,040 2,336,970 I 401 WATERiWASTEWATER UTILITY FUND WaterlWastewater Administration 15,114 0 0 I 965,300 531-00 ; 1,097,895 533-00 Water Operating 3,409,785 2,691,605 2,998,141 3,743,875 3,697,765 535-00 Wastewater Operating 2,435,684 2,956,079 I 3,379,027 3,124,291 3,890,295 Total WaterlWastewater Fund Expenditures 5,860,582 5,647,684 6,377,168 7,966,061 8,553,360 I 402 SOLID WASTE UTILITY FUND 534-1 0 Sanitation 2,119,773 1,730,763 2,385,122 2,410,435 2,697,750 534-20 Solid Waste - Recycling 103,968 0 0 0 0 534-39 Solid Waste - Yard Waste 176,119 0 0 0 0 534-40 Solid Waste - Fleet Maintenance 126,198 0 0 0 0 Total Solid Waste Fund Expenditures 2,526,058 1,730,763 2,385,122 2,410,435 2,697,750 I i TOTAL EXPENDITURES 30,514,518 32,202,909 36,944,373 56,139,286 46,537,345 3 CITY OF OCOEE FISCAL YEAR 2007-2008 ANNUAL BUDGET WORKBOOK REVENUE SUMMARY Fund: Other Funds : REVENUE FY 04-05 FY 05-06 FY 06-07 FY 06-07 FY 07-08 DESCRIPTION ACTUAL ACTUAL BUDGETED PROJECTED PROPOSED Road Imoact Fund (106) 2,696,401 3,698,470 6,352,060 3,606,880 3,250,000 Fire Impact Fund (107) 397,786 488,401 1,099,890 921',850 911,465 Police Impact Fund (108) 216,997 349,729 453,390 325,875 341,955 Recreation Impact Fund (110) 466,695 1,047,747 2,133,790 1,352,875 1,390,635 Water Capital Fund (404) 531,573 741,269 821,925 1,399,475 1,209,375 Wastewater Capital Fund (405) 1,446,178 2,128,832 2,299,265 3,876,405 3,270,335 I TOTAL REVENUES 5,755,630 8,454,449 13,160,320 I 11,483,360 10,373,765 I I I I 4 CITY OF- OCOEE FISCAL YEAR 2007-2008 ANNUAL BUDGET WORKBOOK EXPENDITURES SUMMARY OTHER FUNDS SUMMARY EXPENDITURES FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 ACTUAL ACTUAL ACTUAL BUDGET PROPOSED 106 Road Impact Fund 1,859,204 2,698,462 2,871,629 6,352,060 3,250,000 107 Fire Impact Fund 1,584,963 278,694 267,000 1,099,890 911,465 108 Police Impact Fund 64,483 154,059 234,315 453,390 341,955 110 Recreation Impact Fund 50,000 46,294 1,063,422 2,133,790 1,390,635 404 Water Capital Fund 1,084 205,545 126,000 821,925 1,209,375 405 Wastewater Capital Fund 498,141 372,000 372,000 2,299,265 3,270.335 Total Expenditures 4,057,875" 3,755,054 4,934,366 13,160,320 10,373.765 I I I I 5 City of Ocoee Annual Budget FY 2007/2008 Changes to Capital Project Budget Request Road Impact Fund (net effect is a reduction of $50,000) $200,000 West Rd. turn lanes (developer agreement commitment) $250,000 White Rd. at Clarke Rd. westbound-to-northbound right-turn lane construction (deferred project from FY 2005) ($400,000) Maguire Rd. Phase 5 property acquisition (moved to eRA Fund budget) ($100,000) Palm Dr. realignment design (deferred two years) 6 - r ORDINANCE NO. 2007-023 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A MILLAGE RATE FOR AD VALOREM TAXES FOR THE CITY OF OCOEE FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007, AND ENDING SEPTEMBER 30, 2008, STATING THE PERCENTAGE, BY WHICH THE MILLAGE RA TE EXCEEDS THE ROLLED-BACK RA TE COMPUTED PURSUANT TO SECTION 200.065, FLORIDA STATUTES; PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Ocoee, Florida, has received the report of the Orange County Property Appraiser stating the amount of assessed values which he has certified to the Florida Department of Revenue for non-exempt real and tangible personal property within the City for the year 2007; and WHEREAS, in order to provide the revenue necessary for the operation of the City for its Fiscal Year beginning October 1, 2007, and ending September 30, 2008, the City Commission of the City of Ocoee has determined the rate of ad valorem tax levy that must be assessed for the year 2007; and WHEREAS, pursuant to Section 200.065(5), Florida Statutes, the City Commission intends that the millage when applied to the extended tax roll will generate the same tax revenue as when applied to the Certification of Taxable Value prepared by the Orange County Property Appraiser on June 27, 2007; and WHEREAS, the provisions of Chapter 200 of the Florida Statutes prescribing the method of fixing millage have been complied with. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA AS FOLLOWS: SECTION 1. Authoritv. The City Commission of the City of Ocoee has the authority to adopt this Ordinance pursuant to Article VITI of the Constitution of the State of Florida and Chapters 166 and 200, Florida Statutes. SECTION 2. Millae:e Levv. The City Commission of the City ofOcoee hereby adopts, establishes and levies a millage rate for ad valorem taxation of real and business personal property within the City of Ocoee, Florida, for the fiscal year beginning October 1, 2007, and ending September 30, 2008, at the rate of $ per $1,000.00 of assessed valuation. SECTION 3. Percentae:e Increase. Over Rolled-Back Rate. The millage rate, as herein levied, exceeds the rolled-back rate computed pursuant to Section 200.065, Florida Statutes, by %, such percentage increase being characterized as the percentage increase in property taxes adopted by the City Commission of the City of Ocoee. SECTION 4. Millae:e Adiustment. The City Commission hereby authorizes the City Manager to administratively provide the Property Appraiser with the millage adjustment, pursuant to his report of the aggregate change in the assessment roll as provided for by Section 200.065(5), Florida Statutes. SECTION 5. Collection of Taxes. The tax shall be collected by the Orange County Tax Collector, subject to discounts prescribed by law, and distributed to the City in accordance with Florida law. SECTION 6. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. 2 ~ f SECTION 7. Effective Date. This Ordinance shall become effective immediately upon passage and adoption. PASSED AND ADOPTED this 24th day of September, 2007. Attest: APPROVED: City of Ocoee, Florida Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, APPROVED AS TO FORM AND LEGALITY, THIS 24th DAY OF SEPTEMBER, 2007. APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON THE ABOVE DATE UNDER AGENDA ITEM NO. FOLEY & LARDNER LLP By: City Attorney 3 ORDINANCE NO. 2007-024 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2007, AND ENDING SEPTEMBER 30, 2008; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Manager of the City of Ocoee, Florida has submitted an estimate of the expenditures necessary to carry on the City Government for the Fiscal Year beginning October 1, 2007, and ending September 30, 2008; and WHEREAS, the estimated revenues to be received by the City during said period from Ad Valorem taxes and other sources has been submitted to the City Commission; and WHEREAS, all applicable legal requirements pertaining to public notices and hearings have been satisfied within specified deadlines and prior to final adoption of this Ordinance; and WHEREAS, the City Commission has, in meeting duly assembled, examined and carefully considered the proposed budget. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: SECTION 1. Authoritv. The City Commission of the City of Ocoee has the authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapters 166 and 200, Florida Statutes. SECTION 2. Adoption of Final Budl!et. Attached hereto as Schedule "A" and incorporated herein by reference is the final budget for the City of Ocoee for the Fiscal Year beginning October 1, 2007, and ending September 30, 2008, said final budget being hereby confirmed, adopted and approved in all respects by the City Commission of the City of Ocoee. SECTION 3. Appropriations. There are hereby expressly appropriated out of anticipated revenues all funds and monies necessary to meet the appropriations stipulated by and in said final budget as amended. SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. SECTION 5. Effective Date. This Ordinance shall become effective immediately upon passage and adoption. PASSED AND ADOPTED this 24th day of September 2007. APPROVED: Attest: CITY OF OCOEE, FLORIDA Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE APPROVED AS TO FORM AND LEGALITY THIS 24th DAY OF SEPTEMBER 2007. APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON THE ABOVE DA TE UNDER AGENDA ITEM NO. FOLEY AND LARDNER LLP By: City Attorney 2 BUDGET HEARING 9/24/07 Tentative Millage Rate Adopted Tentative Millage on 9/13/07 Changes since 9/24/07: Delete Soccer field lights (no grant for remainder) Reconfigure City Hall/Police Department (Not needed) (75,000.00) (24,000.00) Adjusted Tentative Millage Rate Hearing Discussions: (Possible Reductions to Current Adopted Millage Rate) Ocoee TV (reduce TV coverage to commission meetings only. DelE Health Insurance- Clinic Decrease City Share of Familty Healthcare from 70% to 60% Reduce Contingency from $100,000 to $50,000 Reduce Funding for Central Park to $200,000 Police Officers (3) - new PT Fire Inspector Neighborhood Matching Grants Program Community Promotion Funding Community Merit Awards Program Ocoee High School Donation Charter Schools Projects (Capital Contingency) Traffic Calming Citywide ReRoof Vignetti Reduce Road Paving Program to $200,000 Delete Seniors Program Reduce or Delete Founders Day Funding Employee Gift Cards ROW Maintenance (reduce from 18 to 12 cuts a year) Holiday Light Decorations Landscaping (reduce from 18 to 12 a year) (40,000.00) (240,000.00) (186,984.00) (50,000.00) (100,000.00) (195,000.00) (20,000.00) (20,000.00) (15,000.00) (30,000.00) (25,000.00) (15,000.00) (145,000.00) (40,000.00) (22,500.00) (100,000.00) (78,000.00) (50,000.00) (17,500.00) (95,000.00) (40,000.00) (70,000.00) (1,594,984.00) Additional Revenues: Add Fire Service Fee (1,100,000.00) Revised Millage Rate Millage Rate Legislative Requirements Vote Reauired Rate Level Majority vote ~ 4.0777 Supermajority vote 4.0778 - 4.2923 Unanimous Vote 4.2924 - 4.6295 ViS-\y\bLl~ q-)lf-D7 4.6251 -0.0324 -0.0104 4.5823 -0.0173 -0.1037 -0.0808 -0.0216 -0.0432 -0.0842 -0.0086 -0.0086 -0.0065 -0.0130 -0.0108 -0.0065 -0.0626 -0.0173 -0.0097 -0.0432 -0.0337 -0.0216 -0.0076 -0.0410 -0.0173 -0.0302 3.8935 -0.4751 3.4184 Tentative Millaae Rate Proposed Budget balanced at Recommended adjustments to proposed budget: Legal Fees - CRA transfer Reimbursement to GF - initial costs Coke Property principal refinance Police vehicles- 4 year lease vs purchase Increases to Revenues Cash Carryforward recalculated based on 4th quarter Adjusted millage rate Workshop Discussions: Fire Service Fee Removed Remove proceeds for Centex Land Sale (Coke Property) Health Insurance #3769 (HRA w/co-pays) Health Insurance- Clinic Police Officers (3) - new Increase funding for Central Park ( total of $300,000) PT Fire Inspector Police Portable Message Board (Grant $25,000) Increase funding for Human Relations Diversity Board Ocoee High School Charter Schools Projects Adopted Tentative Millage Rate 9/13/07 Millage Rate Legislative Requirements Vote Reauired Majority vote Supermajority vote Unanimous Vote Budget Hearing 9/13/07 (75,000.00) (104,323.70) (835,000.00) (75,000.00) (43,000.00) (386,649.00) 1,100,000.00 790,000.00 145,000.00 240,000.00 195,000.00 100,000.00 20,000.00 10,000.00 1,500.00 25,000.00 15,000.00 145,000.00 Rate Level ~ 4.0777 4.0778 - 4.2923 4.2924 - 4.6295 4.0777 -0.0324 -0.0451 -0.3606 -0.0324 -0.0186 -0.1670 0.4751 0.3412 0.0626 0.1037 0.0842 0.0432 0.0086 0.0043 0.0006 0.0108 0.0065 0.0626 4.6251 ))i~,wJed Q-d'1-07 Tentative MillaQe Rate Proposed Budget balanced at Recommended adjustments to proposed budget: Legal Fees - CRA transfer Reimbursement to GF - initial costs Coke Property principal refinance Police vehicles- 4 year lease vs purchase Increases to Revenues Cash Carryforward recalculated based on 4th quarter Adjusted millage rate Workshop Discussions: ~ire Service Fee Removed Remove proceeds for Centex Land Sale (Coke Property) Health Insurance #3769 (HRA w/co-pays) Health Insurance- Clinic olice Officers (3) - new Increase funding for Central Park ( total of $300,000) PT Fire Inspector Police Portable Message Board (Grant $25,000) Increase funding for Human Relations Diversity Board Millage Rate Legislative Requirements Vote Required Majority vote Supermajority vote Unanimous Vote ---r:>\ STR \ 6\.A1E\) Q-13-o 7 4.0777 (75,000.00) (104,323.70) (835,000.00) (75,000.00) (43,000.00) (386,649.00) -0.0324 -0.0451 -0.3606 -0.0324 -0.0186 -0.1670 3.4217 1,100,000.00 0.4751 3.8968 790,000.00 0.3412 4.2379 145,000.00 0.0626 4.3006 240,000.00 0.1037 4.4042 195,000.00 0.0842 4.4884 100,000.00 0.0432 4.5316 20,000.00 0.0086 4.5403 10,000.00 0.0043 4.5446 1,500.00 0.0006 4.5452 4.5452 Rate Level ~ 4.0777 4.0778 - 4.2923 4.2924 - 4.6295 MAX 4.6295 Contingency Balances General Fund Contingency - beginning amount $210,000 Senior Citizens Program $85,000 Commissioner Projects $25,000 General Fund Contingency - actual budget $295,000 $25,000 $320,000 10/3 Ad for West Side Vo-Tech ($400) 10/3 Golf Tournament (Founders Day) ($240) 10/3 Banners for Crown Point Parkway ($9,384) 10/17 Funding for the Seniors Program ($77,100) 11/7 - Donation for Ocoee Bull Dogs ($3,000) 1/21/06 - Ocoee HS Dance Club ($2,500) 11/21/06 - WOHS Band ($3,000) 11/21/06 - Orange County Falcons ($500) 12/5/06 - Victory Christian Academy yearbook ad ($150) 1/16/07 - Ocoee HS Drama Club ($500) 1/16/07 - West Orange Chamber Champions Gala ($960) 1/16/07 - West Orange Airport Authority ($40,000) 2/20/07 - Elks Annual Charity Ball Sponsorship ($1,000) 2/20/07 - MVP Awards ($7,920) 2/20/07 - CMA Awards ($4,480) Contingency balance $168,516 $350 $168,866 Page 1 \. Prepared:3/6/2007 5:48 PM Contingency Balances WaterlWastewater Fund W aterlW astewater contingency Contingency - actual budget $46,965 $46,965 Contingency - ending balance $46,965 Page 3 $0 $0 $46,965 $46,965 Prepared:3/6/2007 5:48 PM