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HomeMy WebLinkAbout09-12-12 Tentative Budget Public Hearing OCOEE CITY COMMISSION TENTATIVE BUDGET PUBLIC HEARING Ocoee Commission Chambers September 12, 2012 MINUTES 6:00 P.M. r I. CALL TO ORDER - Mayor Vandergrift A. Roll Call and Determination of Quorum Mayor Vandergrift called the Tentative 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 Cookson, City Manager Frank, City Clerk Eikenberry B. Mayor's Announcement 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 6.2500 mills. Due to a decline in property values, the rolled back rate of 6.1304 is higher than the current year millage rate of 5.8460. This proposed millage rate for FY 2012/13 represents a 1.95% increase over the rolled back rate. IL 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 Cookson stated that the preliminary millage rate set by the City Commission and contained in the TRIM Notices is 6.2500 mills. The maximum millage rate which may be levied by the City by regular majority vote for the 2012 -2013 fiscal year is 7.6037 mills, such maximum millage rate having been determined pursuant to Section 200.185(3)(a), Florida Statutes. The establishment of a millage rate between 7.6038 mills and 8.3641 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 8.3642 mills and 10.000 mills requires a unanimous vote of the City Commission. Additionally, any millage rate adopted above the preliminary millage rate of 6.2500 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. Tentative Budget Hearing September 12, 2012 B. Briefing by Finance Director: review of additions /deletions to the budget since August 1, 2012 distribution, the percentage increase in millage over the rolled -hack 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 and businesses of Ocoee. The commission has adopted a proposed tentative millage rate for FY2013 of 6.2500. This is a 1.95% change of the rolled -back rate. The City Manager presented you with a budget balanced at 5.8460 mils. This is less than the rolled back rate of 6.1304. Adjustments identified by staff and a consensus of the commission during the budget workshops are included in the proposed budget. General Fund Revenues and expenditures were increased by offsetting amounts to reflect costs for operational expenses and contracting with Windermere for code enforcement and permitting review. The costs will be revenue neutral. We added Maine Street extension to the Road Impact Fund budget. Also before you is an organization chart for a new department the City Manager is considering. The costs associated with this department will have no effect on the budget as they will be transferred from the departments they are currently budgeted. Resurfacing Leslie Ann Lane was added to the Wishlist. Items that were discussed but no action taken are itemized on the Wishlist for you to consider. 1. Comments by Citizens. Mayor Vandergrift announced this is a public hearing and he will take comments from the citizens at any time during this procedure. He asked them to raise their hand to be recognized if they had a question or comment. There was no one wishing to speak at this time. 2. Comments by Commissioners. Commissioner Keller said over the last couple of workshops they have come up with 11 items from the Wishlist that we wanted to put in the budget. He asked if those amendments should be adopted as a whole, or individually. Mayor Vandergrift said he would prefer voting on them one at a time. Commissioner Johnson said what he would like to propose is do they adopt the tentative budget without the any items on the wish list, because they are not necessary items. Commissioner Wilsen said if that is a motion she will second it. Commissioner Johnson said he is going to make it a motion, but add to it that general employees should get 2% at mid -year. He said City Manager Frank said he can try to find the money without raising the millage rate, so that is a possibility. Commissioner Wilsen commented they she thinks it would be great to present a low budget to the residents this year, but add some of the money discussed for HRDB Board. Commissioner Johnson said he would like to say, in the respect that general employees, they deserve raises just like the police and fire were given and there is no way he will vote for some employees to get raises and not all of them. He added that he feels the rest of the items on the Wishlist are things that would be included in the budget if they were necessities. Commissioner Keller asked the City Manager if he really feels he can find that money for the raises. City Manager Frank said he thinks we can do it; staff will bring hack proposed changes at the final Page 2 of 7 Tentative Budget Hearing September 12, 2012 budget hearing such as slight reductions in expenditures in some departments, an updated revenue forecast, and consider that there may be some revenue from the contract with Windermere for code enforcement and permit review services which has currently been added as revenue neutral. Commissioner Keller said another question is the Withers- Maguire House; the Commission seemed very adamant about making those changes and now we would be removing that project from the budget. Commissioner Johnson said he believes the Maguire -House is something they can still work on, we can continue the maintenance, finish the other renovations, and possibly by next year we will know exactly what direction we want to go with that. He stated it will help with the Friends of Ocoee History Committee to work with them on a plan so it can be implemented next year. Commissioner Wilsen reminded the commission that if they adopt this budget they will have to be very mindful that there is only $50,000 in the contingency fund and they will not be able to give money away to those who come and ask for it this year. Commissioner Hood said the only problem he has is that they have dilapidated streets that need to be repaved and yet they are going to fund a new community center and softball complex. Commissioner Johnson said there are still some funds in this year's budget to get some of the repaving done; it is time they hold back for a little while. Mayor Vandergrift said that he agrees on to holding off on the Withers - Maguire House. He added that he previously mentioned financing some small items and vehicles above $15,000 to spread it out over three years. Commissioner Wilsen said she thought we had discussed not finance anything that we have the case to pay for and take on unnecessary interest. She added that the Finance Department has more knowledge to figure out the best way to procure such items; finance vs. pay cash. City Manager Frank said that approach could be how we come up with the $131,000 for the pay increase; it is one tool in our belt if so directed by the commission. He added any vehicle $25,000 or over we do currently finance. Commissioner Hood inquired if there are any projects planned for next year we can do in -house and save money. City Manager Frank said he believes they are already doing this for some projects where we have the expertise; there are other projects we have found in the past that it is better not to do them in- house. Commissioner Johnson said we could have saved $80,000 - $90,000 on police vehicles if we had not given them the take home vehicle policy that we did. Mayor Vandergrift again explained line of credit concept. Commissioner Keller said that is what the federal government does and they just built up a burden that needs to be worried about in the future. He felt if they have the cash, he prefers to just pay for things as we go instead of being another layer of government overspending their budget with a line of credit. Mayor Vandergrift said he was trying to come up with a way to guarantee the employee raises. Commission Keller said if you want a guarantee, you should just put it in the budget. It would bring the millage rate up to 5.9 which is still under the roll back rate of 6.1. Commissioner Johnson said in the Orlando Sentinel stated the City of Orlando took 29,3 million out of their reserves to put in their general fund, and 6.4 million out of reserves for their planning account. Mayor Vandergrift discussed a utility commission. There was discussion between Mayor Vandergrift and City Attorney Cookson regarding the order of business; Mr. Cookson noted they needed to adopt the individual amendments, and then adopt the tentative millage and tentative budget. Page 3 of 7 Tentative Budget Hearing September 12, 2012 Commissioner Hood inquired what the difference would be on a $100,000 home between the 5.8460 millage rate and the roll back rate 6.1304. City Manager Frank said it would be $34.00 a year. Commissioner Hood asked if they are really willing to sacrifice everything they worked on at the last two budget workshops. to save residents approximately $34 per year. Commissioner Johnson said $34 is a lot of money to some people. Commissioner Hood said if we are that concerned about the residents paying more taxes, we could hold off building the community center and save them a lot more than $34. Commission Johnson said many streets have already been repaved and more of them streets would still be done; residents enjoy a lot more things than good streets. Commissioner Wilsen commented that there are residents struggling and she is happy that we are having this discussion and it is time to show residents that we can tighten down our budget as much as they have to tighten theirs. Commissioner Hood inquired what the millage rate would be if you took the $2 million out of the budget. Finance Manager Brosonski said that we have $1,172,500 of that money corning from general fund which would be a difference in millage of .7374 mills, which is equal to approximately $73.74 per $100,000 household. The remaining is corning out of recreation impact fees and 1.2 million coming out of general fund reserves. Commissioner Hood said the $34 increase seems small compared to the $73 tax increase. Commissioner Johnson said the Community Center will create revenue that will go back into the budget. Mayor Vandergrift moved to approve the staff recommendation for the budget. City Attorney Cookson raised the point of order that all amendments must be adopted first. then the tentative millage rate, and then the tentative budget. We are not ready for a motion on the budget at this time. Motion withdrawn. 1 C. Motions to Amend the Tentative Budget Amendment #1 Commissioner Johnson, seconded by Commissioner Hood, moved to amend the tentative budget of the City of Ocoee to add the 2% raise at mid -year for general employees, at a cost of $131,000. Motion carried 5 -0. Commissioner Wilsen noted that City Manager Frank is going to try to find the funds to add the employee wage increases without increasing the millage rate. If that occurs, they will remove this amendment at the final budget hearing. There was discussion about other options for employees if money could not be found for raises. Commissioner Wilsen moved to amend the amendment to state that funds needed to be found in the budget or employees would receive two days off instead. Improper amendment, died from lack of second. After discussion, original motion carried 4 -1 with Commissioner Wilsen opposing. Amendment #2 Page 4of7 Tentative Budget Hearing September 12, 2012 Commissioner Wilsen, seconded by Mayor Vandergrift, moved to amend the tentative budget of the City of Ocoee to increase the HRDB budget by an additional $5,000. Commissioner Johnson moved to amend the amendment to state that funds need to be found within the budget to cover the $5000 increase. Improper amendment, died due to lack of second. Discussion ensued on the HRDB Budget and what they spent on the parade. Commissioner Keller said they currently have $2,000 in the budget which will not even pay for the MLK Parade. If we want to keep that parade going, they will need the additional funding. The board will have to look at raising some funds, as well. He asked how much the parade cost last year. Commissioner Wilsen referred to the worksheet that was distributed in the agenda packet and stated that it cost $8,530.62 Last year. She added that there was discussion at the budget workshop, when Chairman Maxwell was present, that they may need to scale back on portions of the MLK event. In that case, the total of $7,000 will pay for the MLK and any additional events would require fundraising. Finance Manager Brosonski stated that the millage rate would increase the millage .0031, which now places the millage at 5.9315 with the two amendments. Mayor Vandergrift added that we should look at refinancing loans since the interest rates are so low. Finance Director Horton stated that we have been keeping a close eye on those and we have previously refinanced several loans. After discussion, original motion carried 5 - 0. Commissioner Johnson asked City Manager Frank and staff to diligently research the streets that need repaving to see if they can be addressed out of the current budget and also readdressed at mid -year in the FY 2012 -13 budgets. Finance Manager Brosonski announced that the budget is 5.9315, which is below the millage rate of 6.0314. D. Tentative Millage Rate Ordinance No. 2012 -011 1. Read title to Ordinance regarding millage rate. City Attorney Cookson read the title of the Ordinance No. 2012 -011. ORDINANCE NO. 2012 -011 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, 2012, AND ENDING SEPTEMBER 30, 2013; 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. 2. Motion to adopt the tentative millage rate. Page 5 of 7 Tentative Budget Hearing September 12, 2012 Commissioner Keller, seconded by Commissioner Johnson, moved that the City Commission adopt a tentative millage rate of 5.9315 mills for the fiscal year beginning October 1, 2012, and ending September 30, 2013. Motion carried 5 -0, unanimously. 3. Comments a. Comments by Citizens.- None b. Comments by Commissioners - None 4. Vote on motion to adopt the tentative millage rate. Motion carried 5 - 0, unanimously. E. Tentative Budget Ordinance No. 2012 -012 1. Read title to Ordinance regarding budget. City Attorney Cookson read the title of the Ordinance 2012 -012. ORDINANCE NO. 2012 -011 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2012, AND ENDING SEPTEMBER 30, 2013; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 2. Motion to Adopt the Amended Tentative budget. Commissioner Keller, seconded by Commissioner Johnson, moved that the City Commission adopt the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2011, along with the changes resulting from the Budget Workshops, such tentative budget being for the fiscal year beginning October 1, 2012, and ending September 30, 2013. 3. Comments a. Comments by Citizens - none b. Comments by Commissioners - none 4. Vote on motion to adopt the tentative budget. Motion carried 5 - 0, unanimously. I1I. SCHEDULE AND ANNOUCE FINAL BUDGET PUBLIC HEARING 1. Motion to schedule the public hearing on September 26, 2012, at 6:00 p.m. in the Commission Chambers to adopt the final millage rate and budget. Page 6 of 7 Tentative Budget Hearing September 12, 2012 Mayor Vandergrift, seconded by Commissioner Keller, moved that a public hearing to consider the final millage rate and final budget be scheduled for September 26, 2012, at 6:00 p.m. at a Special Meeting of the City of Ocoee City Commission to be held at the Ocoee City Hall Commission Chambers, that the hearing be advertised in accordance with the provisions of Section 200.065, Florida Statutes, and Section C -37 of Article VI of the Ocoee City Charter, that the appropriate Ordinances necessary to adopt the final millage rate and final budget be prepared by the City staff, and that all other action necessary to comply with the requirements of Section 200.065, Florida Statutes, be undertaken. Motion carried 5 -0. 2. Announcement by Mayor Vandergrift of end of hearing and date for final millage and final budget hearing. Mayor Vandergrift announced the date of the Final Budget Public Hearing will be September 26. 2012 at 6:00 p.m. ADJOURNMENT _ 1 The Tentative Budget Public Hearing adjourned at 6:51 p.m. APPROVED: Attest: City of Ocoee �47y • -) Bet ikenberry, City Cler S. Scott Vandergrift, Mays% Page 7 of 7