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HomeMy WebLinkAbout09-17-14 - Final Budget Public HearingCITY OF OCOEE FINAL BUDGET PUBLIC HEARING Ocoee Commission Chambers September 17, 2014 MINUTES 6:00 P.M. I. CALL TO ORDER - Mayor Vandergrift F 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 Grogan, Commissioner Wilsen, Mayor Vandergrift, Commissioner Johnson and Commissioner Keller. Also Present: City Attorney Cookson, City Manager Frank, and City Clerk Eikenberry, Finance Director Horton, Finance Manager Brosonski, Chief Accountant Briggs B. Announcement by Mayor Vandergrift 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 6.50 mils which exceeds the rolled -back rate of 5.5337 mils and thus represents a 17.46 % 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. The public hearing was opened. II. PUBLIC HEARING C. 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 val orem tax revenues are being increased. Finance Director Horton advised that the proposed operating budgets for the city of Ocoee for FY 2015 total $56,512,500. The proposed general fund budget is now $37,841,670. Ad valorem taxes are being assessed to provide funding for the operational expenses, capital purchases, land purchases, debt service payment, and salaries necessary to provide municipal services to the citizens and businesses of Ocoee. The commission adopted a tentative millage rate for FY2015 of 6.50 mils during the tentative budget hearing. This millage rate is higher than the rolled back rate of 5.5337 and generates $1,704,680 more in revenue than the rolled -back rate. Final Adoption of the 6.5 millage rate requires a majority vote by the commission. Items that were discussed but no action or consensus reached during the Tentative Budget Hearing are itemized on the wish list for further consideration. Mayor Vandergrift announced that this is a public hearing and residents may speak at any time during this proceeding. Ocoee City Commission Final Budget Hearing September 17, 2014 a. Comments by Citizens. David Knight, 1407 Snowden Street, inquired what the additional proposed money in the budget will be used for. It was explained that it would be used for the good of the general public on items such as traffic calming devices, cemetery improvements, resurfacing of the event center parking lot, and additional funding of additional event for HRDB. It was further explained that the City would also like to see the Roger Park developed use as well as other city -owned property that should be used for the benefit of the community. Further discussion ensued. Bruni Massa, 611 E. Lakeshore Drive, shared an article she read in the Orlando Sentinel regarding Ocoee. Commissioner Johnson reminded Ms. Massa that a month ago she wanted to see changes in Ocoee. He urged her to wait and listen as they get through the budget. Ms. Massa voiced her concerns regarding $50,000 being spent on the cemetery, as well as, pot holes on Orlando Ave. and Bluford Ave. Her questions were addressed by the Commission. Greg Keethler, 2430 Orsota Circle, presented exhibits which showed the revenue and expenses of the City and explained the discrepancies he felt that were presented at the Tentative Budget Hearing. He also spoke in favor of the consolidation of the fire department which he was reminded was already voted on during the September 8th meeting. Armand Guevremont, 2433 Orsota Circle, shared his concern in why the City did not switch the fire department over to Orange County to save the City money and why the millage rate is higher in Ocoee than the surrounding areas. Jackie Titus, 1100 Malcolm Road, Woman's Club of Ocoee representative, spoke in favor of keeping the MVP grant. She explained they have several fundraisers though out the year and use the MVP funds as a matching grant prograrn. Ms. Titus further explained their scholarship program which they use the MVP funds for. Ms. Teresa Lemons, Woman's Club of Ocoee representative, shared that there concern is the discussion of the $12,000 MVP grant that has been slated in the budget and could possibly be designated to another event promoting diversity. She named 5 events that are already occurring and represent diversity in Ocoee. Ms. Lemons further explained the importance of the MVP funding to their organization and asked that the commission please leave the grant finding in the budget. Bruni Massa, 611 E. Lakeshore Drive, shared that she is in favor with the Commission's decision to not consolidate the fire department and feels Commissioner Keller did a good job with his presentation at the September 8"' meeting. Greg Keethler, 2430 Orsota Circle, spoke in regards to the softball complex on the wish list and opined that residents are attracted to low property taxes and not softball fields. Commissioner Johnson commented that they have spoken about a park complex to be built in the future which would include a softball complex. He advised Mr. Keethler that the complex is just a wish list item and it was not stated that it would actually be done. Brief debate occurred regarding untruthful comments that were made. Commissioner Johnson advised Mr. Guevremont, who had spoken earlier, that Ocoee may have a lot of houses, however, Winter Garden and Apopka have quadruple the commercial rate taxes that Ocoee has which is why their tax rate is lower. Mr. Guevremont advised that he has understood that sorne of the property taxes are not evenly distributed throughout the community. Commissioner Johnson answered that he may have to go before the county to talk to them. Discussion regarding the appraisal of homes ensued. Commissioner Wilsen gave an explanation Page 2 of 9 Ocoee City Commission Final Budget Hearing September 17, 2014 of the budget hearing process and requirements of the advertisement of the proposed millage rate and further stated the intent of the Commission is not to adopt the rate at 6.50 mils. Further explanation was given on the contingency line item and millage rate that was set by the Commission. Greg Keethler, 2430 Orsota Circle, shared information that came from the property appraiser's office regarding the difference in taxes from neighboring cities in respect to commercial and industrial sources. b. Motions by Commissioners for amendments to the proposed tentative budget. Mayor Vandergrift inquired if there were any amendments to the budget. Finance Director Horton advised that, based on action that occurred last night at the Regular City Commission meeting for an emergency item, it is required that they amend the budget for the utility enterprise fund by $459,270. This amendment does not impact the millage rate and will come from their available cash reserves. Commissioner Wilsen, seconded by Commissioner Keller, moved to make an amendment to increase the tentative budget due to an emergency action taken at the commission meeting on 9/16/2014 by reducing the cash reserves in the Water/Wastewater Utility fund and allocating $459,270 for Wastewater Capital Improvements. This amendment will have no effect on the millage rate. Motion carried 5 -0. City Engineer Wheeler was asked to give an explanation of the project on Maine Street that is requiring the funds into the Water /Wastewater Utility Fund. Greg Keethler, 2430 Orsota Circle, urged the Commission to keep the tax rate down, particularly since they increased the fire fee. It was shared with Mr. Keethler that there is an offset every year because they usually take the contingency money out. Mr. Keethler disagreed. Suggestions were made by Commissioner Wilsen with regard to the wish list items that included: • Contingency - $50,000 • Crown Point Deposit - ($500,000) • Kissimmee Ave. property purchase - $540,000 • Crown Point PUD Project (VHB) — $12,500 • Cemetery Improvements - $50,000 • Traffic Calming Devices - $56,000 • Resurfacing of Community Center parking lot - $25,000 • HRDB Funding - $12,000 • News Service of Florida (monthly subscription) - $792 • MVP Grants - $12,000 (leave in budget, no change) • CMA Grants - $10,000 (leave in budget, no change) • Leave employee increase at 2.0% (no change) Finance Manager Brosonski said the revised millage with Commissioner Wilsen's suggestions would be 5.8982 mils. The current millage rate is 5.7855. Mayor Vandergrift inquired if the fire fee was included. The Mayor was advised that it is not ad valorem so it is not included. Commissioner Keller shared that the fire fee goes to the fire department which helps free up general fund money in the amount of $1,090,000. What he would like to propose is moving the Page 3 of 9 Ocoee City Commission Final Budget Hearing September 17, 2014 money to a special account so they may have a work session to determine how much money they can bond off of that amount. It would allow them to use the bond money for their visioning session strategies. It was clarified that the $1,090,000 is just a part of the money; there is still $800,000 which would make the total $1.8 million. Commissioner Keller said he spoke with the City Manager with regards to moving the $1.8 million. City Manager Frank explained the only money they would have available to move is $1.2 million because the current $650,000 is already being used to balance the budget this year. Mayor Vandergrift said he was confused since he thought the fire fee was not included in the budget. The City Manager gave further explanation and advised that Commissioner Keller wants to have a work session regarding designating the additional dollars that will now be in the general fund due to the implementation of the fire fee adopted last week. Commissioner Wilsen said that they need to do infrastructure (water, sewer, and roads) and other projects now so that the city is in a good position as they move into the future. We are going to have to spend money on these things because they are not free. Further discussion ensued. Commissioner Grogan said he would like to keep the millage rate at the rolled back rate (5.5337) and do as Commissioner Keller suggested with the fire fee. He further shared in all the strategic planning meetings they have had it, downtown was the main focus. He stated there was a way presented of raising money without increasing the taxes; however, they chose not to pursue it. Commissioner Grogan opined that instead of a wish list they should have a strategic plan which involves the public. City Manager Frank clarified that what Commissioner Grogan is asking is that they take some of the money out of general fund that was freed up from the implementation of the fire fee and reduce the ad valorem back to the rolled back rate. Commissioner Grogan answered affirmatively. Commissioner Wilsen commented that what is being suggested by Commissioner Grogan would not allow for any extra improvements in the City because there will be no money. Mayor Vandergrift said he agrees with Commissioner Grogan on going back to the rolled back rate of 5.5337 and if he made it a motion he would second it. City Attorney Cookson advised they need to vote on amendments first before they can vote on millage unless there are no amendments to consider. Commissioner Keller inquired if the amendments had to be done one at a time since Commissioner Wilsen has already suggested her list of amendments. Commissioner Wilsen asked for clarification on the money for the HRDB and if the additional $12,000 would be for the International Day program. Commissioner Johnson asked Commissioner Wilsen if she was looking to keep the $12,000 for the MVP and $10,000 for the CMA, as well as giving the $12,000 to HRDB for their event. Commissioner Wilsen answered affirmatively. Commissioner Grogan said he agrees to keep the programs that are already in the budget which would be the CMA and MVP program. He further suggested that maybe the HRDB needs to start doing fundraisers to come up with additional money for their events because the City does already fund them some money. He noted that Mr. Maxwell's presentation for the International Event was for $125,000. He was not certain what giving them $12,000 would accomplish. Further discussion ensued. Finance Director Horton explained the proposed tentative millage rate is 6.5 mils and in order for them to get to the 5.5337 mils, in this hearing it would be necessary to identify what they are removing from the budget to get to the rolled back rate. Further explanation was given on what would need to be done so they could try to get back to the rolled back rate. Commissioner Keller said Staff balanced the budget at 5.7855 mils. We told them we wanted the wiggle room when we set the millage rate so we set it at 6.5. At that time the additional $1,244,540 was put into the Page 4 of 9 Ocoee City Commission Final Budget Hearing September 17, 2014 contingency to get up to the 6.5 millage rate. If that is removed from the contingency fund, we would go back to 5.7855 mils. If we would like to get back to the rolled back rate, we will have to identify which items need to be removed from the proposed budget. City Manager Frank said it would be easier to take the $1,244,540 from the contingency fund, then add it everything they want to add in, and we will do the calculation to see where we are. At that point, we can see how much has to be deducted to get to the rolled back rate. In other words, we would be taking part of the 1,090,000 that was left over from the implementation of the fire fee by using the amount that would get us back to the rolled back rate 5.5337 mils, and the remainder of the money would be there for projects. 1-le added that they can also calculate how much the City will be able to bond with the remainder of funds. Commissioner Keller, seconded by Commissioner Johnson, moved to amend the tentative budget and remove the $1,244,540 from the contingency fund. Motion carried 5 -0. There was discussion regarding some changes made to the suggestions that Commissioner Wilsen mentioned previously, and then made the motion. Commissioner Grogan, seconded by Commission Wilsen, moved to amend the tentative budget to include the Crown Point Deposit - ($500,000), the Kissimmee Ave. property purchase - $540,000, and the Crown Point PUD Project (VHB) — $12,500. Motion carried 5 -0 Commissioner Wilsen confirmed the millage rate at this time would be 5.8156 Commissioner Johnson, seconded by Commissioner Keller, moved to amend the tentative budget to include $45,000 for cemetery improvements. Lengthy discussion ensued regarding a 2.4% employee merit increase for all employees and historical union negotiations. After unrelated discussion, motion for cemetery improvements carried 5 -0. Commissioner Wilsen, seconded by Commissioner Keller, moved to amend the tentative budget to include the traffic calming devices at $56,000. Motion carried 3 -2 with Mayor Vandergrift and Commissioner Johnson opposing. BREAK: 7:47 p.m. - 8:01 p.m. Commissioner Wilsen, seconded by Commissioner Grogan, moved to amend the tentative budget to include resurfacing parking lot at Lakeshore Center for $ 25,000. Bruni Massa, 611 E. Lakeshore Drive, inquired where the traffic calming devices were going to be placed. Public Works Director Krug explained the traffic calming devices are about $6,000- $8,000 a piece depending on the price of the asphalt and currently they have four devices, at the request of residents, which have been approved. Ms. Massa suggested what if they just tell residents they do not have the money and instead ask the police to monitor those areas. Commissioner Wilsen shared that, as late as today, she has received an email from a resident Page 5 of 9 Ocoee City Commission Final Budget Hearing September 17, 2014 requesting a traffic calming device on their road due to concern of speeders. The petition process for a traffic calming device was explained to Ms. Massa. After unrelated discussion, motion on the resurfacing of the parking lot at Lakeshore Center carried 4 -1 with Mayor Vandergrift opposing. Commissioner Wilsen, seconded by Commissioner Keller, moved to amend the tentative budget to include the News Service of Florida (monthly subscription) for 792.00. Commissioner Wilsen briefly explained the benefits of the News Service of Florida subscription advising that it would provide daily updates on legislature and State level issues going through Tallahassee. The subscription at $792 will allow for all six of them to access their website. Mayor Vandergrift disagreed since he gets almost weekly updates from the Florida League of Cities which they also pay dues for. After discussion, Motion carried 4 -1 with Mayor Vandergrift opposing. Commissioner Wilsen, seconded by Commissioner Johnson, moved to amend the tentative budget to include $12,000 for HRDB funding for additional event. There was discussion regarding that there is no need to take any action on the MVP and CMA grants because the consensus was to leave them as budgeted. Commissioner Wilsen clarified that the $12,000 will be additional to their normal allocation to the advisory board. She further clarified this would be a one -time funding only. Support Services Butler answered affirmatively advising that the members are aware that they will need to do additional fundraising. After discussion, Motion carried 4 -1 with Mayor Vandergrift opposing. Commissioner Johnson asked that Human Resources Director Williford to advise what increases other cities are adopting. Human Resources Director Williford answered that the City of Winter Springs recently started a survey to get feedback on raises within other cities and the information seems to be consistent with his comments earlier in that most cities are granting increases in the 3% range. The bases of the increases are primarily because of the number of years that employees had lower raises or no raises due to the down economy. Commissioner Johnson inquired the number of employees this would affect. Human Resources Director Williford answered about 250 -270 employees. Commissioner Grogan inquired if the pay is compatible within these cities in the survey. Human Resources Director Williford said he does not know that answer off hand since it has been awhile since a salary survey has been done for our City. Commissioner Johnson, seconded by Commissioner Keller, moved to amend the tentative budget to raise the salary increase from 2.0 to 2.4 % for all general employees, at a cost of $63,000, to match what was given to the police union. Motion carried 3 -2 with Mayor Vandergrift and Commissioner Wilsen opposing. Page 6 of 9 Ocoee City Commission Final Budget Hearing September 17, 2014 BREAK: 8:20 p.m. — 8:28 p.m. Finance Manager Brosonski announced that the millage rate after the changes that have been made is 5.9315, which is 7.19% over the rolled back rate. City Manager Frank noted that what they will need to do get down to the rolled back rate is to reduce the general fund amount by removing some of the funds that were freed up from the implementation of the Fire Assessment Fee. Ms. Brosonski advised that the amount that needs to be removed from the budget to get to the rolled back rate is $692,840. This would leave $397,160 in the budget from the $1,090,000 freed up from the implementation of the Fire Fee. Commissioner Wilsen asked what that amount would equate to in bonding. Finance Director Horton stated at 30 years it is 6.5 million and at 20 years it would be about 5 million, assuming a 5% interest rate. Commissioner Grogan, seconded by Commissioner Keller, moved to amend the tentative budget by removing $692,840, a partial amount of the funds freed up in the general fund by the implementation of the fire assessment fee, and bringing the millage rate down to the rolled back rate. No vote taken due to subsequent amendment. Discussion followed regarding the selection of projects that they will do next year and the need to hire engineers and /or architects to know how much money will need to be bonded. Commissioner Wilsen asked if that will include the grant that we got from the state via Rep. Bracey. City Manager Frank confirmed that $100,000 from the grant is strictly for consultant work. Commissioner Keller reminded them that reducing down to the rolled back rate this year will mean that we will again need to reduce it next year. Commissioner Johnson asked if we further reduced the millage rate by 1 /10 of a mil (or approximately $180,000), we could still be below the millage rate from last year, and just a little higher than the rolled back rate. Finance Manager Brosonski stated lessen the reduction of the millage rate by $180,000 ($512,840 instead of $692,840) from the budget would result in a millage rate of 5.6371 mils, which is a 1.87% increase over the rolled back rate. Commissioner Johnson, seconded by Commissioner Keller, moved to amend the motion, to change the amount from $692,840 to $512,840. Motion carried 4 -1, with Mayor Vandergrift opposed. City Attorney Cookson advised that this will result in the millage rate of 5.6371 mils, as stated previously by Ms. Brosonski. Vote on motion as amended: Commissioner Grogan, seconded by Commissioner Keller, moved to amend the tentative budget by removing $512,840 from the general fund, a partial amount of the funds freed up by the implementation of the fire assessment fee, and bringing the millage rate down to 5.6371. Motion carried 4 -1, with Mayor Vandergrift opposed. 1. Motion to adopt Ordinance No. 2014 -013, setting final millage rate. a. Comments by Citizens- none b. Comments by Commissioners -none Page 7 of 9 Ocoee City Commission Final Budget Hearing September 17, 2014 c. City Attorney Cookson read the title of the ordinance d. Vote on motion to adopt Ordinance No. 2014 -013, setting the final millage rate. Commissioner Keller, seconded by Commissioner Wilsen moved to adopt Ordinance 2014 -013 approving the final millage rate of 5.6371 mils for Fiscal Year 2014 -2015. Motion carried 4 -1, with Mayor Vandergrift opposed. The ordinance as adopted carries the following title: ORDINANCE 2014 -013 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A MILLACE RATE FOR AD VALOREM TAXES FOR THE CITY OF OCOEE FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2014, AND ENDING SEPTEMBER 30,2015; PROVIDING FOR MILLACE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR 1.87% IN MILLACE RATE OVER THE ROLLED -BACK RATE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 2. Motion to adopt Ordinance No. 2014 -014, adopting final budget. a. Comments by Citizens. Greg Keethler stated that what the city had done in reality is to increase the taxes by about a mil with the fire fee increase and roll back about half of that. He said if you went to the rolled back rate you would still have the same amount of money that you had last year without the additional fire fee. b. Comments by Commissioners -none c. City Attorney Cookson read the title of the ordinance d. Vote on motion to adopt Ordinance No. 2014 -014, adopting the final budget. Commissioner Keller, seconded by Commissioner Johnson, moved to approve Ordinance No. 2014 -014 adopting a final budget for the Fiscal Year beginning October 1, 2014 and ending September 30, 2015. Roll Call vote: Grogan -yes, Wilsen -yes, Vandergrift-no, Johnson -yes, Keller -yes. The ordinance as adopted carries the following title: ORDINANCE 2014 -013 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2014, AND ENDING SEPTEMBER 30,2015; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. D. Announcement by Mayor Vandergrift of end of budget public hearing. Mayor Vandergrift announced the conclusion of the final budget public hearing and restated that the millage rate is 5.6371, which exceeds the rolled back rate by 1.87 %. Page 8 of 9 Ocoee City Commission Final Budget Hearing September 17, 2014 III. ADJOURNMENT The meeting was adjourned at 8:53 p.m. APPROVED: Attest: 4 Beikenberry, City Clerk City of Ocoee S. Scott Vandergriit, Mayor Page 9 of 9