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HomeMy WebLinkAbout09-11-89 SS . MINUTES OF THE OCOEE BOARD OF CITY COMMISSIONERS SPECIAL SESSION HELD ON SEPTEMBER 11, 1989 The Special Session of the Ocoee Ci ty Commission was called to order at 7:35 p.m. by Mayor Ison in the Commission Chambers. Present: Mayor Ison, Commissioners Combs, Dabbs, Hager and Johnson. Also present were City Manager Shapiro, City Engineer Shira, Public Works Director Brenner, Street Supervisor Elmore, Finance Director Poston, Finance Supervisor Batts and City Clerk Grafton. Absent: None CONSENT AGENDA The proposed Consent Agenda consisted of items A, B, and C: A. Approval of School Liaison Officer Contract B. Approval of Change Order # 5 - Bowness Road C. Approval of Addendum #89-10 to the Agreement for Continuing Consulting Engineering Services Between PEC and the City of Ocoee Commissioner Dabbs moved to approve Items A, Band C of the Consent Agenda as presented. Seconded by Commission Johnson, the motion carried by unanimous vote in favor. . PUBLIC HEARING - BUDGET Mayor Ison opened the session by announcing that this is a public hearing on the Tentative Budget and Proposed Millage Rate for the Ci ty of Ocoee. The Ci ty Commission has previously set a 4.000 mill, representing a 42.35% increase in millage over the rollback rate of 2.81 mills. City Manager Shapiro stated the increase in rate could be deferred to three basic areas. One is the cost of three new police officers and three new fire fighters (the second station), financing of "Over 65" Program and the increased costs of employee benefits. . Comments by Citizens Ms. Dottie Minnick, 508 Bernadino Drive, questioned the "Over 65" Program. Her questions were about who was part of this group. She was answered that only people over 65 are part of the group. Ms. Minnick, looking at the list, stated that some people were on the list twice, several were dead and some had moved. She felt it would take too much staff to keep this correct. She felt her taxes should not increase when people receiving the benefits of the Over 65 Program made more interest income then she did working. She protested the fact that many of these people in Over 65 have grandchildren living with them, using full City facilities and enjoying all benefits also. She felt City employees should not have to have waited years for a 2 and 1/2 percentage increase. She also mentioned the fact that many people over 65 lived in expensive homes and did not need the relief offered by this program. Mr. Frank Hanus, 619 Caborca, commented on the Over 65 Program. He did not feel the program should be dropped all together. People he had talked to were willing to settle for just the tax rebate. They did not have to have water, sewer and garbage gratis. . Page 2 Ocoee City Commission Special Session September 11, 1989 R. P. Mohnacky, 1820 Prairie Lake Boulevard, agreed wi th Ms. Minnick. He went on to say if there was a need for additional personnel, add them; however, if there is no need for a particular service, don't add the employees. He asked where the impact fees were located in the Budget. He was answered that only income from impact fees was showing at this time. He questioned the longevity raises. Mr Shapiro assured him there were safeguards. Mr. Mohnacky restated his objection to the methods the City used for increases. Ms. Dottie Minnick made an effort to clear up her previous statements. She would prefer to get rid of some of the taxes and have some rules for who gets free water and sewer. She feels that everyone who owns a house should pay some tax and that the needy should get the water and garbage. Mayor Ison, to help Ms. Minnick understand, stated that the program is this way for this year. If the City invested more time in this program, it would become more costly. A study is being made. This Commission inherited the program and he, personally, is for keeping it because the Federal and State governments are bailing out of taking care of the elderly. Senior citizens usually use a ~0t of the City services. . Commission Comments Commissioner Johnson questioned City Manager Shapiro regarding the percentage rate on City personnel salaries. Mr. Shapiro noted that the percentages were based on CIP. Commissioner Johnson remarked that the Over 65 Program will be under study in October and he felt it was a good thing. He did feel it was necessary to make sure areas that benefit citizens are covered. Vehicles for Fire and Police need repairs and replacement. Sidewalks need repairs. Commissioner Combs stated that he agrees with Commissioner Johnson on his points. He did reiterate that the Over 65 Program should be studied. He requested help from citizens. This budget looked pretty good. He said the City has been living with a 1970 income, living in the 1990s. He lauded the capital improvement program which the City never had before. He felt the City Manager has done a good job with personnel and money. When he ran for office, he talked about unbudgeted spending and he now feels this will not happen. This is a pretty good budget. . Commissioner Hager called attention to the increases in Police and Fire as necessary. The City has lost 6 Firemen this year to better salaried jobs. These positions cost $2,400.00 for training alone. He feels the City cannot go another year with a budget it cannot live with. There would be severe problems next year if this year had not been a year for some changes. He supports the Over 65 Program, but, as with any program, there are some people on it that should not be. This is the first year anyone challenged the program. . . . Page 3 Ocoee City Commission Special Session September 11, 1989 Commissioner Dabbs stated that any budget reflects the philosophy of those putting it together. He believes the City should provide services to the people. He thinks the one thing lacking is something like roads, sidewalks things the people can see. The Over 65 Program may need some revision. Too much of the money he has been associated with spending has been spent to correct things that should have been done sooner. Capital improvement funds are a step in the right direction. This appears to be the starting point of a new era. Regarding the Over 65 Program, he feels that government should have a heart. He commended the staff for putting together a very reasonable budget and the manager for having accomplished the budget task in just 6 months. Mayor Ison explained the budget procedure. This year it is a little late in preparations, since the City Manager has only been with Ocoee a matter of months. This makes it necessary to do the budget, work on it and adopt it all at the same time. The mayor responded to some of the comments tonight by stating he is for the Over 65 Program. He feels that the budget looks like the City is not doing very much lately. He realizes there needs to be balance, a balance between how much the City is going in debt and how much it is spending. He feels this has been accomplished. Between 1984 and 1989, the real estate value of Ocoee has increased 129%, averaging about 17% annually. Generally, the City is in pretty good shape. If the City left the millage the same, 2.81 mills would produce $586,000.00 more revenue. Four mills would produce $874,000.00 revenue, an increase of 49%. Mayor Ison felt he could not support the personnel increases called for in the budget. There are too many increases and too great a variety of increases. He urged the Commission to not get too concerned about "pay". He does not believe in the 4.0 mills rate. He is not demeaning the work of the city manager, however, he just cannot believe in all the pay raises, meri t increase, longevity increments, and pay grades. The water rates are increased $389,000.00, sani tation increases are up $120,000.00, and wastewater fees are up $245,000.00. Add in the ad valorem and the capital expenditures, this is a lot of money for one city for one year. He feels a more modest appropriate budget should be done, more money should be put in Contingency Fund. In 6 months, this Commission could offer a general pay raise to employees. He feels 3 policemen and 5 police cars are not necessary at this time. These things are for growth and an impact fee could take care of them. A 17% growth factor and a 17% increase in ad valorem tax would put the city in the 3.1 and 3.21 mills range, producing $93,000.00 to $114,000.00. He proposed all the longevity, merit and other raises be studied and brought back to the Commission in 6 months. Commissioner Dabbs commented that the Commission had been remiss in its responsibilities toward personnel. The largest majority of funds are spent on personnel in Ocoee or any other government around. He also questioned the merit system. He added that Mr. . Page 4 Ocoee City Commission Special Session September 11, 1989 Shapiro had done some things he thought were not possible, and he would not be uncomfortable with this budget. He had no objections except starting all the things on October 1. . Mayor Ison responded that in the public sector the amount being spent for bodies is going up every year. He felt the City should not fund $874,367.00 worth of ad valorem taxes this year when he is aware of alternatives. He felt employees should get raises, but not necessarily everybody and start all of these programs on October 1. Even adding the policemen need not be done on October 1. Mayor Ison could support a budget based on 3.11 to 3.21 mills and still do an adequate service for the people of Ocoee. He predicted that in June of next year this City would be in a very strong position, and then the City Manager could give raises. He would rather see some of these things delayed until March. He expressed his idea that keeping a Ci ty Manager for three years would be more important, and it may be that this would take money. He re-emphasized that he did not expect the City Manager to cure all the City's ills immediately. Mayor Ison would move for a 3.1 tax. He feels the ad valorem tax is totally unfair. He could take $173,000.00 out of this budget, with the understanding that the second and third quarters, when revenues should be there, would allow expenditures for these programs. Commissioner Dabbs stated that ad valorem is not a whole lot of our budget and is certainly not a fair tax. Federal revenue sharing discontinuation is what caused many problems. Ad valorem and user taxes are the only money available. He is willing to go with the 4 mills and if the other revenues exceed the projection, then the contingency funds can be addressed. Commissioner Combs agreed with the 4 mills rate. He agreed with Mayor Ison about staggering the hiring and purchasing. Commissioner Hager likes the 4 mill rate. He dislikes the merit system, based on the City's previous experiences. He agrees with phasing in the programs. He suggests the $5,000,000.00 would be a good contingency fund. Commissioner Hager took no exception to the employee raises, however, he would like to see them phased in. He urged having some money in the bank, not spending anything. . Commissioner Johnson stated that this Commission did not start the growth but it is here and it must be controlled to be sure it is quality growth. This Commission needs to have a little more money than it actually needs each month, even though he does not favor raising taxes. He sees the need for raises for the employees. The State mandating without funding needs to stop. He is in favor of the Budget as presented. Mayor Ison instructed the Commission that when they voted on the budget, they would be approving it line by line. Any changes . Page 5 Ocoee City Commission Special Session September 11, 1989 should be made now. Attorney Rosenthal clarified the Budget by saying in approving a Tentative Budget, the City Manager Recommendation column is what they would be approving. Mr. Shapiro suggested he could hold off on the raises until mid-year if that be the desire of the Commission. Attorney Rosenthal explained that the Commission could make changes and 'vote on the budget at the next public hearing. Mayor Ison returned the Commission to the discussion of the Tentative Budget. He pointed out that there is $269,189.91 of employee benefits/ adjustments. COLA is included in that amount. Mayor Ison would have the COLA remain effective on October 1. Merit increases at $58,623.35 deferred to the City Manager. Longevity is $26,009.37 deferred to Contingency Fund to be reconsidered in 6 months. $13,734.46 in maximum pay grades adjustments would be placed in Contingency Fund for 6 months. $33,485.95 allocated to reclassification of jobs would start in October. Salary and pay rate upgrade amounting to $3,178.24 for two positions be done immediately. $4,111.38 for reorganization of Utility System goes without objection. . Mayor Ison requested some money for the trailer park drainage problem. The Mayor asked for a report on the drainage for the next meeting. Mr. Shapiro asked City Engineer Shira if he could come up with a quick-fix and some numbers. Mr. Shira stated that for someone to study the problem and recommend a solution it would cost $25,000.00 to $30,000.00. Mr. Shapiro suggested putting the money in the Public Works Administration Budget for a drainage study. This would move this project up one year. Commissioner Combs moved to amend the Tentative Budget of the City of Ocoee as distributed by the City Manager's Message dated August 15, 1989: to delete from the General Fund Budget $39,743.83 ($26,009.37 Longevity and $13,734.46 in Maximum pay grade adjustments) and transfer to the Contingency Fund; add to the Public Works Administration Budget $25,000.00 for the drainage study - trailer park, deleting this amount from the Contingency Fund, leaving a net Contingency Fund of $14,743.83; and increase Parks Recreation Travel expense by $1,500.00. Motion seconded by Commissioner Johnson. Both citizens and Commissioners were given another opportunity to speak, but no one wished to add any remarks at this time. The motion carried with 4-1 vote with Mayor Ison voting "nay". Commissioner Dabbs moved to adopt the tentative millage rate of 4.0 mills for the fiscal year beginning October 1, 1989 and ending September 30, 1990, representing a 42.35% increase in millage over the rollback rate of 2.81 mills. The motion was seconded by Commissioner Combs. . citizen Comments Mr. Frank Hanus, 619 Caborca, asked what the difference was between the 4 mills and the 2.81. City Manager Shapiro answered it was $1.19 per thousand, or, on an assessed value of $75,000.00 about $89.00. . . . Page 6 Ocoee City Commission Special Session September 11, 1989 Mr. R.P. Mohnacky, 1820 Prairie La~e Boulevard, asked if ad valorem means the same for commercial as residential? Mr. Shapiro answered the commercial and residential are the same and that ad valorem is a tax placed on assessed values. Motion carried 4-1 with Mayor Ison voting "nay". Commissioner Hager moved to adopt the Tentative Budget of the City of Ocoee distributed along with the Budget message of the City Manager dated August 15, 1989 as amended, such Tentative Budget being for the fiscal year beginning October 1, 1989 and ending September 30, 1990. The motion was seconded by Commissioner Combs. There were no further comments by citizens or Commissioners at this time. Motion carried 4 - 1 with Mayor Ison voting "nay". Commissioner Johnson moved that a public hearing be scheduled to consider the final millage rate and final budget for September 26, 1989 at 7:30 p.m. at the Ocoee Community Center and that the hearing be advertised in accordance with the provision of Section 200.065 Florida Statutes and Section 7, of Article 6 of the Ocoee City Charter and that the appropriate resolution necessary to adopt the final millage rate and final budget be prepared by the City Staff and all other acts to comply with the requirements of Section 200.065 Florida Statutes be undertaken. Motion seconded by Commissioner Hager and carried unanimously. ADJOURNMENT The meeting was adjourned at 9:42 p.m. Approved: Thomas R. Ison, Mayor f\ti","Et) \'1..;~-q\