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HomeMy WebLinkAbout09-15-10 Tentative Budget Public Hearing OCOEE CITY COMMISSION TENTATIVE BUDGET PUBLIC HEARING Ocoee Commission Chambers September 15, 2010 Minutes 7:00 P.M. I. CALL TO ORDER - Mayor Vandergrift A. Roll Call and Determination of Quorum Mayor Vandergrift called the Tentative Budget Public Hearing to order at 7:00 p.m. in the Commission Chambers of City Hall. City Clerk Eikenberry called roll and determined a quorum was present. Roll Call: Commissioner Hood, Commissioner Wilsen, Mayor Vandergrift, Commissioner Johnson and Commissioner Keller. Also Present: City Attorney Rosenthal, City Manager Frank, City Clerk Eikenberry, Finance Director Horton, Finance Manager Brosonski, Chief Accountant Briggs Mayor Vandergrift announced this is a public hearing on the tentative budget and proposed millage rate for the City of Ocoee. Notice of this hearing was contained in the Notice of Proposed Property Taxes mailed by the Property Appraiser. The City Commission, by majority vote, has previously set a proposed millage rate at 6.4174 mills. Due to a decline in property values, the rolled back rate of 6.3755 is higher than the current year millage rate of 5.4974. This proposed millage rate represents a .66% increase over the rolled back rate. II. PUBLIC HEARING A. Briefing by City Attorney to discuss the maximum millage rate which may be levied and the rates required to exceed such millage. City Attorney Rosenthal stated that the preliminary millage rate set by the City Commission and contained in the TRIM Notices is 6.4174 mills. The maximum millage rate which may be levied by the City by regular majority vote for the 2010 -2011 fiscal year is 6.4181 mills, such maximum millage rate having been determined pursuant to Section 200.185(3)(a), Florida Statutes. The establishment of a millage rate between 6.4182 mills and 7.0599 mills requires a two- thirds vote (super majority) of the membership of the City Commission (or 4 votes). The establishment of a millage rate between 7.0600 mills and 10.000 mills requires a unanimous vote of the City Commission. Additionally, any millage rate adopted above the preliminary millage rate of 6.4174 mils would require notice by first class mail to each taxpayer. The tentative millage rate adopted at this hearing will become the maximum millage rate which may be adopted by the City Commission at the public hearing on the final millage rate. A unanimous vote or a two- thirds vote may be required to adopt the tentative millage rate as the final millage rate. At the final public hearing, the City Commission may adopt a millage rate which is less than the tentative millage rate adopted this evening Mayor Vandergrift added that the Final Budget and Public Hearing will be held on September 29, 2010 at 7:00 p.m. Ocoee City Commission Tentative Budget Public Hearing September 15, 2010 B. Briefing by the Finance Director: Review of additions /deletions to the budget since July 30, 2010 distribution, the percentage increase in millage over the rolled -back rate necessary to fund the budget and the specific purpose for which ad valorem tax revenues are being increased. Finance Director Horton stated that Ad Valorem taxes are being assessed to provide funding for operational expenses, capital items and salaries necessary to provide municipal services to the citizens of Ocoee. She advised that a copy of the Wishlist has been placed on the dais for the Commission. She then recapped the actions that have been taken so far: The millage rate for the current year 09/10 is 5.4974. The commissioners tentatively set a proposed millage rate in July 2010 of 6.4174. The city manager originally presented you with a budget for fiscal year 10 /11 balanced at the same millage rate as current year budget at 5.4974. The rolled back rate for next year is calculated to be 6.3755. The rolled back rate generates the same amount of revenues in the new year as the current year. However, because of the declining property valuations the rolled back rate is actually higher than the current year millage rate. Adjustments that were identified by staff and the commission during the two budget workshops included reducing personnel costs, funding some projects from the capital projects fund and increasing the funding for Founder's Day. This further reduced the millage to 5.3374. This is where we are going to start tonight. There are some additional adjustments on the wishlist were discussed but no consensus was reached during the workshops; these items are itemized on the updated wishlist as well as their impact on the millage rate for you to consider later tonight. The budget you are considering tonight is balanced with a 5.3374 millage rate. This millage rate is less than the rolled back rate of 6.3755. There is no percentage increase over the rolled back rate necessary to fund the proposed budget. The highest millage rate the commission can levy tonight with a majority vote is 6.4174. Any rate higher than this will require re- noticing the taxpayers and the appropriate required vote. City Manager Frank explained how the TRIM (Truth in Millage) bill works as far as rolled back rates. The last few years have been unique in that the property values have decreased and the rolled back rate is higher than our current rate. A higher millage rate is required 6.3755 rolled back rate is required to generate the same tax income as last year at the millage rate of 5.4974. Mayor Vandergrift explained the 14% decrease in property values causing the rolled back rate to go up rather than down. He further explained some historical information on the TRIM laws. 1. Comments by Citizens. Eric Jorizah 2311 Holly Ridge Drive, Ocoee said it appears to him as though the only one raising their millage rate is Ocoee, and he is against it and feels it is unfair to the residents. City Manager Frank explained that the rate included in the TRIM notice is the highest rate that can be set without re- noticing residents. The preliminary rate is set in July when cities do not have Page 2 of 8 Ocoee City Commission Tentative Budget Public Hearing September 15, 2010 all of the information, so they allow some room for movement, if needed. The Mayor and Commissioners explained that they will most likely come in far lower than the advertised rate. R.P. Monacky, 1820 Prairie Lake Blvd., asked for a copy of the budget with the department breakdown. Commissioner Wilsen said we would get him a copy or it can be obtained online. A staff member loaned him a copy of the budget book. 2. Comments by Commissioners. Commissioner Hood asked if the 5.3374 included any of the employee salary increases discussed at the previous meeting. Finance Director Horton explained that the millage of 5.3374 does not contain any of the items listed below it. Those additional items and their impact on the millage are listed. City Attorney Rosenthal said to add in any of those additional items you would need to make a motion: Move to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated July 30, 2010, along with the changes proposed in the Budget Workshops as outlined by staff, in the following manner: [Indicate nature of amendment] He added that if the motion receives a majority vote of the commission, the finance department can keep you apprised as to how it affects the millage rate as you go. Commissioner Hood asked Mayor Vandergrift if it was his intention to give pay increases to those employees making under $80,000. City Manager Frank reminded them that the original recommendation in the proposed budget is zero increase. He stated that we will have rising pension costs in the coming year. He said through the Employee Committee there have been many discussions about the possibility of zero increases, and they were very understanding about the tight budget year and that the city is trying to prevent layoffs, etc. as we have seen in other cities. Commissioner Wilsen said she cannot support pay raises this year with the tight budget and the residents all facing difficult economic conditions. Commissioner Johnson brought up the matter of using the $320,000 set aside for the fire station. Mayor Vandergrift asked about supervisors and above not getting a pay raise. City Manager Frank stated that everyone was in the mindset of not getting a salary increase; no matter where we make a cutoff it is going to cause some morale issues and possible salary inequities. Commissioner Wilsen said she thinks we should just give the Fire Department the 3% per their union contracts and deal with other salary issues next year. Commissioner Johnson asked the union representative if the firefighters would mind the City keeping the money if they are expecting the money back if it is not used for salaries for other employees. Local 3623 Union Representative Lt. James Kelly said the spirit of the donation of the 3% salaries was so that other employees would get an increase, but if it does not work out that way it should be used to benefit the city. Commissioner Keller asked what a 1.5 % increase would cost. Finance Manager Brosonski said it would be $69,000 which is equal to what the firefighters gave us. The millage rate would then be 5.3484, with the $49,970 (savings to auto insurance) taken into consideration. Further discussion ensued with regard to salaries. Mayor Vandergrift discussed that higher level employees received one time bonuses so that it would not continue to accrue over the years. HR Director Carnicella said when someone reaches the maximum of their salary range, they do not get further increases. The salary system now in place was created to be competitive in the market; there are only a few Page 3 of 8 Ocoee City Commission Tentative Budget Public Hearing September 15, 2010 employees at the top of their range. Further discussion ensued regarding salaries, merit pay, longevity, median salaries, bonuses or appreciation monies, service to residents, cut -off salary for salary increase distribution. City Manager Frank reminded them that a cash payout would be $92,000 for 1% as opposed to a 2% salary increase at mid year which would also be $92,000. After a lengthy discussion, Mayor Vandergrift polled the commission for a second time: Commissioner Keller said he is in favor of giving an "appreciation" one -time payment using the $69,000 contributed by the fire department and distributing it to general employees. Commissioner Johnson said we should use the $69,000 for the general fund; no pay raise for the employees. Commissioner Wilsen confirmed that the one -time appreciation payment would be approximately $250 per person which she would support, but she is not in favor of any type of pay increase. Commissioner Hood said to use the money in the general fund and give no raises to city employees. Mayor Vandergrift noted that he would not break the tie and since there was no consensus on this issue, they should move on to other discussions and come back to this at a later time. 3. Motions by Commissioners for amendments to the proposed tentative budget. Commissioner Keller, seconded by Commissioner Wilsen, moved to amend the tentative budget to include all of the items on the Wish List under Adjustments Suggested at the 8/31 Workshop, excluding the 2% pay increase. Commissioner Wilsen asked if the basketball courts at Tiger Minor Park would be a prudent move at this time to spend $50,000 for that. Commissioner Johnson said there is no place for anyone to play basketball on the south side. The kids like to play basketball, not tennis. He added we did not think it through when we tore out the basketball courts before we had replacement courts; he is still getting calls about that. There was discussion with CIP Manager Butler about the basketball courts and he advised he will get a price to add it on to the tennis court project that is in progress right now and bring it back for the next meeting. The Mayor asked the Clerk to advise the motion on the floor. City Clerk Eikenberry stated the motion was to amend the tentative budget with the workshop adjustments on the wish list, excluding the 2% pay increase, which included the following items: Adiustments suaaested at the 8131/10 workshop: HRDB Advisory Board (MLK parade /Hispanic Heritage) 6,000 0.0035 Demo of Scott/Griffin Bldg on McKey St 15,000 0.0087 Education Reimbursement Program (10,000) (0.0058) Basketball Court at Tiger Minor Park 50,000 0.0289 A/C and flooring replacement Fund ** 150,000 0.0868 4 0.0632 Increase Contingency (Budget $50,000) 50,000 0.0289 Amendment to the Proposed Amendment to the Tentative Budget Commissioner Hood, seconded by Commissioner Wilsen, moved to amend the proposed amendment to the tentative budget to exclude the following items: Demo of Scott/Griffin Bldg on McKey St 15,000 0.0087 A/C and flooring replacement Fund 150,000 0.0868 Page 4 of 8 Ocoee City Commission Tentative Budget Public Hearing September 15, 2010 Amendment to the Amendment to the Proposed Amendment to the Tentative Budget. Commissioner Johnson, seconded by Commissioner Hood, moved to amend the amendment to the proposed amendment to the tentative budget to reduce the A/C and Flooring replacement Fund from $150,000 to $75,000. Motion carried 4 -0, with Commissioner Wilsen opposed. Discussion occurred regarding how to vote to accomplish specific actions on the next amendment. City Attorney Rosenthal clarified that a "yes" vote would remove those two items from being added to the budget. Vote on the Amendment to the Proposed Amendment to the Tentative Budget Vote was then taken on the amendment to the proposed amendment to the tentative budget, as amended, to exclude the demo of the Scott/Griffin Bldg at $15,000 and A/C Flooring and Replacement Fund for $75,000. Motion failed 5 -0. Public Works Director Krug stated that the $15,000 estimate included the house on the Sylvestri property on Marshall Farms Road (both houses) as well as asbestos remediation, if needed. City Manager Frank added that they will look into having the demolition done in- house to see if no asbestos remediation is needed and money can be saved. Mayor Vandergrift suggested everyone vote against the original motion so the items can be voted on one at a time. Vote on original motion. Motion failed 5 -0. After original motions and subsequent amendments failed, the Commission voted on the following items individually. Commissioner Keller, seconded by Commissioner Wilsen, moved to amend the tentative budget to add $6000 for the HRDB Advisory Board (MLK Parade /Hispanic Heritage. Motion carried 5 -0. Commissioner Johnson, seconded by Commissioner Wilsen, moved to amend the tentative budget to add $15,000 for the demolition of the Scott/Griffin Building on McKev Street and the Sylvestri Building on Marshall Farms Road. Motion carried 5 -0. Commissioner Keller, seconded by Commissioner Johnson, moved to amend the tentative budget to remove $10,000 from the Education Reimbursement Fund. Motion carried 5 -0. Commissioner Johnson, seconded by Commissioner Keller, moved to amend the tentative budget to add $50,000 for basketball courts at Tiger Minor Park. Motion carried 5 -0. Commissioner Johnson, seconded by Commissioner Wilsen, moved to amend the tentative budget to add $75,000 for an A/C and Flooring Replacement Fund to Page 5 of 8 Ocoee City Commission Tentative Budget Public Hearing September 15, 2010 cover expenses from any of the items listed below, if necessary. Motion carried 5 -0. Police A/C replacements (16 yrs old) (6 units) 37,200 Fire Station 3 A/C replacement (14 yrs old) 15,000 Fire Station 2 NC replacement (12 yrs old) 15,000 City Hall A/C universal network controller (17 yrs old) 6,600 City Hall West Wing A/C dampers and controllers 32,000 City Hall 2nd floor NC dampers and controllers 49,000 City Hall 1st floor A/C dampers and controllers 36,000 Fire Station 2 carpet and VCT replacement 9,000 Fire Station 3 carpet and VCT replacement 9,000 Commissioner Wilsen, seconded by Commissioner Keller, moved to amend the tentative budget to add $175,000 to the contingency fund. Vote taken after discussion. City Attorney Rosenthal asked the Finance Department to advise the millage rate with the motions that have passed. Ms. Horton advised without the $175,000 added to contingency they are at 5.4161; with the $175,000 added to contingency, the millage rate would be 5.5173. She reminded commission they still need to vote on the $49,970 (savings on auto insurance /general liability premium funds) that the City Manager found in the budget; she advised that would reduce the millage to 5.4884. After the discussion the vote on the motion carried 5-0. Commissioner Hood, seconded by Commissioner Keller, moved to amend the tentative budget to delete the - ($49,970) savings on Auto Insurance /General Liability Premium and place $49,970 in contingency. Motion carried 5 -0. Commissioner Hood, seconded by Commissioner Keller, moved to amend the tentative budget to add the savings from the Fire Department salary reduction in the amount of $69,260 to the contingency fund. Motion carried 5 -0. Finance Director Horton stated the total in the contingency fund is now at $344,230. C. Announcement by Finance Director of the recomputed proposed millage rate and the percent by which the recomputed proposed millage rate exceeds the rolled -back rate. This percentage is the proposed tentative percentage increase in property taxes. Announcement regarding the vote required to adopt this millage rate (Regular Majority, Super Majority, or Unanimous). Finance Director Horton stated that with the no further amendments to the tentative budget, the millage rate is now at 5.5574. This is lower than the rolled back rate of 6.3755 therefore the percentage increase over the rolled back rate is 0 %. Page 6 of 8 Ocoee City Commission Tentative Budget Public Hearing September 15, 2010 There was discussion among the commission regarding that they had done well because there is still some room for wish list items and they are still well below the rolled back rate and the advertised rate. City Attorney Rosenthal stated that with the no further amendments to the tentative budget, the millage rate is now at 5.5574 which does not exceed the rolled back rate therefore the percentage increase over the rolled back rate is 0 %. 1. Read title to Ordinance regarding millage rate. City Attorney Rosenthal read the title of the Ordinance No. 2010 - 020. 2. Motion to adopt the tentative millage rate. a. Comments by Citizens. none b. Comments by Commissioners. none c. Vote on motion to adopt the tentative millage rate. Manor Vandergrift, seconded by Commissioner Hood, moved to adopt the Tentative Millage rate of 5.5574 mils for the Fiscal Year beginning October 1, 2010 and ending September 30. 2011. Motion carried 5 -0. 3. Read title to Ordinance regarding budget. City Attorney Rosenthal read the title of the Ordinance 2010 - 021. 4. Motion to adopt the tentative budget. a. Comments by Citizens. none b. Comments by Commissioners. none c. Vote on motion to adopt the tentative budget. Manor Vandergrift, seconded by Commissioner Hood, moved to adopt the Tentative Budget of the City of Ocoee distributed along with the budget message of the City Manager dated July 30, 2010, along with changes that resulted from budget workshops and as amended at this meeting, such tentative budget being for the Fiscal Year beginning October 1, 2010 and ending September 30, 2011. Motion carried 5 -0. D. Motion to schedule the public hearing on September 29, 2010, at 7:00 p.m. in the Commission Chambers to adopt the final millage rate and budget. Mayor Vandergrift, seconded by Commissioner Hood, moved to hold a public hearing to consider the final millage rate and final budget be scheduled on September 29, 2010 at 7:00 p.m. at a special meeting of the City of Ocoee City Commission in the Commission Chambers of City Hall; that the hearing be advertised in accordance with the provisions of §200.065 F.S and Section C -37 of Article VI of the Ocoee City Charter; that the appropriate ordinances required to adopt the final millage rate and the final budget be prepared by city staff; and that Page 7 of 8 Ocoee City Commission Tentative Budget Public Hearing September 15, 2010 all other actions necessary to comply with the requirements of §200.065 F.S. be undertaken. Motion carried 5 -0. Commissioner Hood asked the City Manager to explain the difference between last year's taxes and where we are right now on a $100,000 home. City Manager Frank said if the house appraised at the same price as last year the increase would be $6.00 per year, however most homes will appraise at 14% less. There was a short discussion regarding the need for a fire department on the north end of the city and a rescue call at an Ocoee High School football game. They discussed the response of EMTs vs. paramedics and how that affected the care given at the scene. E. Announcement by Mayor Vandergrift of end of hearing and date for final millage and final budget hearing. Mayor Vandergrift announced that the public hearing to consider the final millage rate and final budget is scheduled for September 29, 2010 at 7:00 p.m. at a special meeting of the City of Ocoee City Commission in the Commission Chambers of City Hall. III. ADJOURNMENT The meeting adjourned at 9:47 p.m. APPROVED: Attest: City of Ocoee i - :• 41 7 Eikenberry, City Clerk S. Scott Vandergrift, Mayor 1 Page 8 of 8