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HomeMy WebLinkAbout09-21-11 Final Budget CITY OF OCOEE FINAL BUDGET PUBLIC HEARING Ocoee Commission Chambers September 21, 2011 MINUTES 6:00 P.M. I. CALL TO ORDER - Mayor Vandergrift A. Roll Call and Determination of Quorum Mayor Vandergrift called the Final Budget Public Hearing to order at 6:00 p.m. in the Commission Chambers of City Hall. City Clerk Eikenberry called roll and declared a quorum 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 B. Announcement by Mayor 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 5.9455 mills which is equal to the rolled -back rate of 5.9455 mills and thus represents a 0 % or NO increase in millage over the rolled -back rate. The adopted tentative millage rate is the maximum millage rate which may be adopted by the City Commission at the Final Budget Public Hearing tonight A. Roll Call and Determination of Quorum II. PUBLIC HEARING 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 said the Ad valorem taxes are being assessed to provide funding for the operational expenses, capital items, and salaries necessary to provide municipal services to the citizens of Ocoee. The millage rate for the current year 2010/11 is 5.5574. The city manager originally presented you with a proposed budget for fiscal year 2011/12 balanced at a millage rate of 5.79. The rolled back rate for next year is calculated to be 5.9455 which is higher than the current year millage rate. Adjustments identified by staff and a consensus of the commission during the two budget workshops and items voted upon favorably during the Tentative Hearing are included in the proposed budget. You've adopted a tentative millage rate of 5.9455. This millage rate is the same as the rolled back rate; therefore, there is no percentage increase over the rolled back rate necessary to fund the proposed budget. 5.9455 is the maximum millage rate that can be adopted tonight. Additional adjustments that were discussed but no action taken by the commission are itemized on the Wishlist before you. 1. Coinrnenls 13 Citizens �. �. a .._ . n Ocoee City Commission Final Budget Public Hearing September 21, 2011 Mayor Vandergrift asked if there were any Public Comments at this time. No one wished to speak. 2 Comments by Commissioners Commissioner Johnson said that they had discussed the issue of moving the funding from the Beech Recreation Center to the project at Vignetti Field on several occasions, but they had not voted to make anything official at this time. 3. Motions by Commissioners for amendments to the proposed tentative budget Commissioner Hood, seconded by Commissioner Johnson, moved to amend the tentative budget to change the allocation of the $300,000 proposed funding for two new fields at Beech Recreation Center to a new project at Vignetti Softball Complex. Such change will move funds to a different project but will not affect the budgeted dollar amount for the recreation impact fee expenditures (Fund #110). Mayor Vandergrift stated that we have a large track of land by the West Orange Girls Club that we should start developing. He thinks it would be money better spent to put it out there rather than Vignette. Commissioner Johnson said we have looked at that in the past and it is approximately 1.3 million to do those improvements. Commissioner Hood recalled that they had to release a $200.000 grant three or four years ago because we were unable to match it. He also added that there is a huge parking issue at Vignetti right now that will be alleviated if they move the field and add parking. There was further discussion about the use of the fields at Vignetti. VOTE: After the discussion, the motion carried 5 -0. Commissioner Keller, seconded by Commissioner Wilsen, moved to amend the tentative budget by reducing the contingency fund by $164,865. Discussion ensued regarding removing this money from the budget and not changing the $350,000 amount taken from reserves. Commissioner Keller stated there would be a tax reduction of about $15 to the average homeowner in that case. He added that placing it back into the reserves and thereby using less reserves would keep the millage at the rolled back rate and we would not have to be as concerned next year starting at a lower millage rate and worrying about how much farther it could be rolled back. He said that is the pros and cons, but either way it needs to come out of the contingency fund. VOTE: After the discussion, the motion carried 5 - 0. Page 2 of 5 Ocoee City Commission Final Budget Public Hearing September 21, 2011 Commissioner Wilsen asked about using that $164,865 and only doing about half of the road projects this year (they totaled approximately $289.000) and not take any money out of the reserves. She said she wants to protect the reserves. Commissioner Hood stated that he has spoken with the City Manager and using $300,000 out of the $12,000,000+ in reserves is not going to affect our bond ratings, credit ratings, or anything else; he does not have a problem with using it when there are things that need to be done. Commissioner Johnson stated it is not playing with money; it is no different than people using their savings right now to cover their necessary expenses. Reserves are there for exactly what we are proposing to use them for. He added that we still have plenty of money in reserves for emergency situations. Commissioner Wilsen felt once that door was opened, we will continue to use reserves. Mayor Vandergrift asked if there were another other amendments to the tentative budget. Commissioner Wilsen stated that we had another situation last night at the regular commission money where we take money out of contingency to give to people who show up and ask for it. We need to change the grant programs, add money /change cycles, but stand firm when people come to the commission. Commissioner Johnson said if we are going to do that it has to be for everyone for every type of event. Commissioner Wilsen, seconded by Commissioner Keller moved amend the tentative budget to add $2000 to the Community Merit Board line item and to change the grant cycles to allow people more opportunity to request grant funding through the Merit Board. Commissioner Keller stated he does agree with giving the money to the merit board, but agrees with Commissioner Johnson that the rules have to be changed on how often it is done and how we select who the money is given to so that it is not given to outside agencies that hardly benefit Ocoee. Mayor Vandergrift said that is for a discussion at a Commission meeting. After the discussion, the motion carried 3 -2, with Commissioner Hood and Commissioner Johnson opposed. Commissioner Keller asked about the memo on the dais. City Manager Frank stated under the utility fund in the enterprise fund; we have an emergency situation coming up that will not affect the budget or millage rate because it will come out of R and R funds in utilities. We had scheduled Lift Station #3 for 2015 -16 rehabilitation, but staff would like move it to this fiscal year. Finance Director Horton stated it will come out of the Water and Wastewater R and R funds; it would increase the budget for the water and wastewater, it has absolutely no impact on the millage rate. Mayor Vandergrift, seconded by Commissioner Johnson, moved to amend the tentative budget to transfer the funding for the Reconstruction and Relocation of Lift Station #3 from the Five Year Capital & Projects Schedule into the FY 2011 -12 budget near. This is an enterprise fund (Water and Wastewater R &R) and will have no affect on the millage rate. Motion carried 5 -0. Finance Manager Brosonski stated the millage rate is currently at 5.8460 and the current the rolled -back rate is 5.9455 mills. Page 3 of 5 Ocoee City Commission Final Budget Public Hearing September 21, 2011 Commissioner Wilsen said if the Commission would consider reducing the amount taken out of reserves by $100,000 (only take on $250,000 instead of $350,000); they would still be at 5.9075 mills which is below the roll back rate. The Mayor asked her to make a motion. Commissioner Wilsen moved to amend the tentative budget by reducing the amount taken from reserves from $350,000 to $250,000. Motion died for lack of second. B . Announcement by Director of Finance of the recomputed proposed final millage rate. City Attorney Rosenthal announces the taxing authority, 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. Finance Director stated the recomputed proposed millage rate is 5.8460. 1. Motion to adopt Ordinance No. 2011 -012, setting final millage rate. Commissioner Keller, seconded by Commissioner Johnson moved to adopt Ordinance No. 2011 -012 setting the final millage rate of 5.8460 as the millage rate for FY 2011 -12. City Attorney Rosenthal read the title of the final millage rate ordinance. City Attorney Rosenthal stated the name of the taxing authority is the City of Ocoee. The rolled back millage rate is 5.9455 mills. The percentage by which the proposed millage rate exceeds the rolled back rate is 0 percent. The millage rate proposed by the ordinance is 5.8460 mills. Mayor Vandergrift asked what percentage we are under the rolled back rate, to which the Finance Department stated -1.67 percent. a. Comments by Citizens- none b. Comments by Commissioners -none c. Vote on motion to adopt Ordinance No. 2011 -012, setting the final millage rate. Motion carried 4 - 1 with Commissioner Wilsen opposing. The Ordinance as adopted on final reading carries the following title: ORDINANCE NO. 2011 -012 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, 2011, AND ENDING SEPTEMBER 30, 2012; PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR NO INCREASE IN MILLAGE RATE OVER THE ROLLED -BACK RATE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. Page 4 of 5 Ocoee City Commission Final Budget Public Hearing September 21, 2011 2. Motion to adopt Ordinance No. 2011 -013, adopting final budget. Commissioner Keller, seconded by Commissioner Johnson moved to adopt Ordinance No. 2011 -013 adopting a final budget for the fiscal Year beginning October 1, 2011 and ending September 30, 2012. City Attorney Rosenthal read the title of the final budget ordinance. a. Comments by Citizens- none b. Comments by Commissioners -none c. Vote on motion to adopt Ordinance No. 2011 -013, adopting the final budget. Motion carried 5 -0. The Ordinance as adopted on final reading carries the following title: ORDINANCE NO. 2011 -013 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2011, AND ENDING SEPTEMBER 30, 2012; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. C. Announcement by Mayor Vandergrift of end of budget public hearing. Mayor Vandergrift announced the end of the public hearing and thanked staff for all of the hard work they do keeping the budget down despite the economy and the loss of approximately 3 million in tax revenue. III. ADJOURNMENT The meeting adjourned at 6:31 p.m. APPROVED: Attest: City of Ocoee ikenberry, City C S. Scott Vander rift, May Page 5 of 5