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HomeMy WebLinkAbout09-08-14 - Tentative Budget Public Hearing and Fire Assessment Public HearingOCOEE CITY COMMISSION TENTATIVE BUDGET PUBLIC HEARING Ocoee Commission Chambers September 8, 2014 MINUTES 6:00 P.M. 1. CALL TO ORDER; TENTATIVE BUD PUBLIC HEARING- Mayor Vandergrift A. Roll Call and Determination of Quorum Mayor Vandergrift called the Tentative Budget Public Hearing to order at 6:02 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, City Clerk Eikenberry, Finance Director Horton, Finance Manager Brosonski, Chief Accountant Briggs CALL TO ORDER; FIRE ASSESSMENT PUBLIC HEARING— Mayor Vandergrift B. Motion to continue the Fire Assessment Public Hearing until after the opening comments of the Tentative Budget Pu blic Hearing Mayor Vandergrift opened the Fire Assessment Public Hearing and entertained a motion to continue this hearing until after the opening comments of the Tentative Budget. Public Hearing. Commissioner Grogan, seconded by Commissioner Keller moved to continue the Fire Assessment Public Hearing until after the opening announcements of the Tentative Budget Public Hearing. Motion carried 5 -0. BREAK: 6:04 p.m. — 6:07 p.m. Awaiting arrival of City Attorney Cookson. ---- - - - - -- — II. PUBLIC H EARING A. Briefing by City Attorney to discuss the maximum millage rate which may be levied and the rates required to exceed such millage. The preliminary millage rate set by the City Commission and contained in the TRIM Notices is 6.5000 mills. The maximum millage rate which may be levied by the City by regular majority vote for the 2014 -2015 fiscal year is 7.7496 mills, such maximum millage rate having been determined pursuant to Section 200.185(3)(a), Florida Statutes. The establishment of a millage rate between 7.7497 mills and 8.5246 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 8.5247 mills and 10.000 mills requires a unanimous vote of the City Commission. Additionally, any millage rate adopted above the preliminary millage rate of 6.5000 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. Ocoee City Commission Regular Meeting September 8, 2014 B. Briefing by Finance Director: review of additions /deletions to the budget since August 1, 2014 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 Manager Brosonski advised the proposed operating budgets for the City of Ocoee for FY 2015 total $55,422,500. The proposed General Fund budget is $36,751,670. Ad Valorem taxes are being assessed to provide funding for: • operational expenses, • capital purchases, • land purchases, • potential debt service payments, and • Salaries necessary to provide municipal services to the citizens and businesses of Ocoee. The City Manager presented the commission with a budget balanced at 5.7855 mils in expenditures and .7145 mils in contingency for a total of 6.5 mils which is higher than the rolled back rate of 5.5337. 'T'he commission approved a proposed tentative millage rate for FY 2015 of 6.5000 mils. This rate is higher than the rolled back rate and generates $1,704,680 more than the rolled back rate. Adoption of the 6.5 mils requires a majority vote by the commission. Items that were discussed but no action or consensus reached during the workshops are itemized on the wish list for further consideration. RECESS Tentative Budget Public Hearing at 6:11 p.m. RESUME Fire Assessment Public Hearing at 6:12 p.m. Support Services Director Butler advised that tonight they are looking at the final action to implement the fire assessment for Fiscal Year 2015 by adopting the Annual Rate Resolution. Included in the resolution is the proposal to adopt the Assessment Rate per net FPU (Fire Protection Unit) and authorization for the Mayor to sign the Assessment Roll certification for FY 2015, which must be delivered to the Orange County Tax Collector so the assessments can be included in the November 2014 tax bill. City Attorney Cookson read the title of the resolution. Support Services Director Butler briefly summarized the contents of the resolution advising that staff is recommending establishing the Maximum Assessment Rate of $69.50 and the estimated number of FPUs calculated using the currently available and preliminary data, the total revenue generated would be an excess of $1.9 million. To develop the final revenue forecast, the following reductions should be applied: • 2% estimated cost of collection, • discount of up to 4% for early payment; and • 1 % allowance for non - payment. Page 2 of 9 Ocoee City Commission Regular Meeting September 8, 2014 Collectively, these reductions produce estimated revenue of $1.8 million at the maximum assessment rate. That revenue level of $1,800,000.00 would be recognized in the proposed budget for FY 2015. Mayor Vandergrift opened the public hearing. 1. Comments by Citizens. Greg Keethler, 2430 Orsota Circle, explained his extensive studying of the Ocoee budget for this year as well as the budget for Winter Garden and Apopka. He displayed several charts showing the three cities and their tax base comparisons for 2012. Mr. Keethler further opined that he is against the fire assessment fee and believes the city needs to consolidate fire services and lower the millage rate. Lengthy discussion ensued regarding the consolidation of the Fire Department. There was discussion among the Commission and Mr. Keethler regarding consolidation of fire services. Mike Hopper, 240 E. Silver Start Road, spoke in favor of keeping the Fire Department and shared that there is no way that cost will not raise or cause an impact if they chose to consolidate the Fire Department. Mayor Vandergrift asked Fire Union President James Kelley to explain how the insurance will affect the residents and what the ISO rating is for Ocoee. Fire Union President Kelly answered that he believes they are an ISO 2 rating and as far as an impact on residents he is not sure what it will be but that there will be an. impact City Manager Frank explained that he has checked with State Representative Bryan Nelson, who is an ,insurance agent, and he looked at the difference in ISO ratings 1 -8 for residential and Mr. Nelson shared that an ISO 1 -8 would be rated the same as far as insurance purposes. ISO 9 ratings in a rural area would however make a difference. Jose lglesia, 400 Misty Meadow Drive, spoke in favor of keeping the fire department. Ile expressed his concerns with the fluctuating of the proposed savings to the City with regards to the consolidation and conceals with the rnillage rate. He inquired if it could require a City referendurn of its residents to determine if the commission is making the right decision. Mayor Vandergrift answered that this is a complicated matter to be put on the ballot where people would understand it. Before a recess was taken Commissioner Johnson briefly shared his beliefs on what makes tip a. community. BREAK: 7:00 p.m. - 7:09 p.m. Barbara -Ann Boudokhane, 268 N. Lakeshore Drive, spoke in favor of keeping the fire department and shared a personal story involving the death of a loved one due to a house fire. Mayor Vandergrift closed the public hearing. Page 3 of 9 Ocoee City Commission Regular Meeting September 8, 2014 2. Comments by Commissioners. City Attorney Cookson advised that they are still under the public hearing for the Fire Assessment and it has been obvious that the consolidation of the fire department is a big part of the budget. and fire assessment. He advised unless there is a motion to do the consolidation of the fire department than he thinks they can move along with the fire assessment resolution; however, now would be the time to make a decision on the consolidation. Commissioner Keller, seconded by Commissioner Johnson, made a motion to decline moving forward with consolidating the Ocoee Fire Services with Orange County. Motion carried 5 -0. City Attorney Cookson advised that now would be the time to discuss the fire assessment fee since they had the public hearing related to the fire assessment. Support Services Director Butler explained that staff s recommendation is to go with the $69.50 that was advertised as per net fire protection unit. The resolution also provides for exemptions for government owned and institutional property. City Manager Frank asked Support Services Director Butler to please clarify how it was set last year since it was a lower rate. It was also advised that tonight's meeting will determine the final rate that will be implemented for fiscal year 2015. Explanation was given that $69.50 is the maximum rate, however the commission can decide on any rate they wish to implement up to the $69.50. Lengthy discussion ensued regarding the fire assessment fee and where the monies would go. Commissioner Keller, seconded by Commissioner Johnson, moved to adopt the Annual Rate Resolution No. 2014 -008 establishing the net fire protection unit at $69.50 and authorizing the Mayor to certify the assessment roll at that rate. Before taking a vote the Commission advised the audience that this assessment is voted on every year and is placed on their tax bill as non -ad valorem. Mayor Vandergrift advised he would be voting "no" on this assessment and briefly explained his reasons. Lengthy discussion ensued regarding what is needed to help improve the City. Terri Lee Ivy, native of Ocoee, said she feels it will be wonderful to have the facilities for the children because they need that when they are young but as they grow older they also need some place to go. Ms. Ivy further commented that there needs to be a balance in the City and it would be nice to have more restaurants as well as a downtown. Mike Hopper, 240 E. Silver Start Road, spoke in favor of the fire assessment because it will help the City to get more than just the parks but also a downtown which is needed. After a. brief unrelated discussion, Commissioner Keller moved to question. City Attorney Cookson repeated the motion: Commissioner Keller, seconded by Commissioner Johnson, moved to adopt the Annual Rate Resolution No. 2014 -008 establishing the net fire protection unit at $69.50 and authorizing the Mayor to certify the assessment roll at that rate. Page 4 of 9 Ocoee City Commission Regular Meeting September 8, 2014 It was briefly clarified that the money from the fire assessment fee will be going toward the Fire Department as required by law. 'Phis would in turn free up money in the general fund, which was being used for the Fire Department, to now be used for other purposes. After discussion, Motion carried 3 -2 with Mayor Vandergrift and Commissioner Grogan opposing. RESUME Tentative Budget Public Hearing at 7:36 p.m. Commissioner Keller inquired as to how much of what is currently budgeted in contingency would have to be backed out to get back to the $50,000 they normally carry since they just adopted. the fire assessment fee. Finance Manager Brosonski advised that they currently have the $1,244,540 as well as the $1,000,090 from the recently assessed fire fee.. The $50,000 is not counted in that number. Commissioner Keller moved to remove $1,244,540 from contingency to get to a millage rate of 5.7855. Motion died for lack of second. Commissioner Wilsen said she felt it would be best to start with the balanced budget at 5.7855 and then add in the items they would like to see from the wish list which would give them the millage rate. She further shared some of the items they discussed from the wish list that they had previously discussed were important to have: • HRDB funding for additional event - $12,000 • Cemetery Improvements - $50,000 • 'Traffic Calming - $56,000 • Resurfacing parking lot at Community Center - $25,000 • Kissimmee Avenue Property purchase - $540,000 • News Service of Florida (monthly subscription) - $792 Commissioner Johnson shared that he would like to add an item that is not on the wish list which would be a 2.4% merit increase for general employees' verses the 2% budgeted which would be an increase to the budget by $63,000. • 2.4% increase - $63,000 City Manager Frank advised Commissioner Wilsen that she may also want to recognize the $500,000 revenue for the deposit on Crown Pointe as well as include the Crown Point PUD Project (VHB) which is our share of the developer's agreement we need to pay in order to do some additional work. • Crown Point Deposit — ($500,000) • Crown Point Project (VHB) - $12,500 Commission Wilsen inquired what the millage rate would be with the items mentioned above. Finance Manager Brosonski advised those amendments to the tentative budget would put the millage rate at 5.9344 mils. Page 5 of 9 Ocoee City Commission Regular Meeting September 8, 2014 Mayor Vandergrift commented that he also has a couple of items he would like to add, such as consideration on buying an FM Radio Station that could be used to broadcast emergencies as well as other things. Also consider purchasing 25 body cameras for our Police Department which would just be a transfer of funds from road signs. Lastly, switch to e- newsletters verses the mail - out newsletters which could save the City about $10,000. Commissioner Wilsen commented that she hopes the new website would have postings that would be equivalent to a newsletter. Mayor Vandergrift shared that the only issue is that residents do not know the information is there. Support Services Director Butler advised that the new website will have a push capability that would allow them to send out items of more urgency. Staff has reviewed the prototype and is now preparing their comments to go back to the contractor to make the final adjustments to the website that is currently in development. Furthermore, the new website will also have the capability for people to sign up for notifications. City Attorney Cookson advised that if there is no other wish list items to be brought up than it would be appropriate to open up the public hearing. Commissioner Grogan inquired why the red light camera program was listed on the wish list. City Manager Frank advised that staff.' was directed to bring back an agenda item for the red light camera- which will occur at the next Commission Meeting. The red light camera program was added to the wish list because there is Financial ramification if they get rid of the right on red citations. Commissioner Keller commented that now that they have the money from the fire fee which will open up some general funds. He would like for them to at least start thinking about how they can direct some of the general fund money toward their strategic visioning items such as downtown projects. Mayor Vandergrift opened the public hearing. William Maxwell, 5.58 Woodson Ave., read a letter he provided to the Commission in regards to the allocation of money which was earmarked to the HRDB for the purpose of planning and hosting an international cultural exposition (ICE). He explained that during the discussion at the last budget meeting, Commissioner Johnson suggested reallocating the already budgeted $12,000 for MVP and $1.0,000 for Community Merit Program (CMA) as a source funding for the HRDB event. Opposition was received from Commissioner Wilsen regarding reallocating the funds for which he as some questions from the Commission regarding the eligibility and criteria for receiving those grants. Mr. Maxwell's questions were answered by Commissioner Wilsen. After further discussion, Commissioner Johnson asked that a list of names for every organization granted funds in the last ten years be provided at the next budget hearing. Commissioner Wilsen commented that she will make a motion at the next meeting that the budgeted funds for the CMA and MVP remain the same. Mayor Vandergrift asked that it be added to the wishlist so they can work out the figures. He further commented that it could also be taken into consideration that they temporarily reallocate the funds for just the one year. Commissioner Johnson said that was his intent. Lastly, Mr. Maxwell commented on the suggestion made by the Commission to combine all their events into one. The majority consensus of the sub- committee members, during their last meeting, was that each event has its own related historical circumstances and to diminish any of the existing events could render a negative impact. Further discussion ensued. Mr. Maxwell Page 6 of 9 Ocoee City Commission Regular Meeting September 8, 2014 noted that before budget meetings are over he would like clear direction on what is expected of the HRDB. Mayor Vandergrift closed the public hearing 3. Motions by Commissioners for amendments to the proposed tentative budget. NOTE: RECESS (if needed) to recompute the proposed millage rate and rolled -back percentage increase. 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 requir to adopt this millage rate (Regular Maj Super Ma or U 1. Read title of Ordinance regarding millage rate. City Attorney Cookson read the title of the ordinance. AN ORDINANCE OF TILE CITY OF OCOEE, FLORIDA, ESTABLISHING A MILLAGE 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 MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR 17.46 INCREASE IN MILLAGE RATE OVER THE ROLLED -BACK RATE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 2. Motion to adopt the tentative millage rate. a Comments by Citizen None F_ - - - L b. Comments by Commissioners Commissioner Keller asked if the tentative millage rate can remain at the 6.5 mils and during the Final Budget Hearing they can than make the changes. City Attorney Cookson confirmed that they did not want to include the amendments that were discussed tonight. Commissioner Keller commented that leaving it at the 6.5 mils would allow the Finance Department to include the items they discussed tonight and provide them with all the numbers. At the Final Budget Hearing they can decide what they want or do not want. c,. Vote on motion to adopt the tentative millage rate. Commissioner Keller. seconded by Commissioner Wilsen, moved that the Cit Commission adopt the tentative millage rate (with no amendments included) at 6.5 mils; amendments will be incorporated at the Final Budget Hearing, for the fiscal year beginning October 1, 2014, and ending September 30, 2015. Motion carried 4 -0 with Mayor Vandergrift absent. Page 7 of 9 Ocoee City Commission Regular Meeting September 8, 2014 Finance Manager Brosonski announced that the percent increase over the rolled back rate of 5.5337 is 17.46 %. City Attorney Cookson stated that this millage rate will require a simple majority vote. 3. Read title to Ordinance regarding budget. City Attorney Cookson read the title of the ordinance. AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2014, AND ENDING SEPTEMBER 30, 2015; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 4. Motion to adopt the tentative budget. _ - a. Comments by Citizens. none b. Com ments by C om missi oners none c. Vote on motion to a dopt the ten tativ e budget. Commissioner Keller, seconded by Commissioner Wilsen moved to adopt the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2014, along with the changes resulting from the Budget Workshops, and such tentative budget being for the fiscal year beginning October 1, 2014, and ending September 30, 2015. Motion carried 5 -0. Commissioner Keller, seconded by Commissioner Wilsen moved to adopt the tentative budget of the City of Ocoee for the fiscal year beginning October 1, 2014, and ending September 30, 2015. Motion carried 5 -0. D. Motion to schedule the public hearing on September 17, 2014, at 6:00 p.m. in the Commission Chambers to adopt the final millage rate and budget. Commissioner Keller, seconded by Commissioner Wilsen, moved that a public hearing to consider the final millage rate and final budget be scheduled for September 17, 2014, at 6:00 p.m. 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. E. Announcement by Mayor Vandergrift of end of hearing and date for final millage and final budget hearing. Mayor Vandergrift announced the end of hearing and date of final budget and final millage rate hearing will be held on September 17, 2014, at 6:00 p.m., at Ocoee City Hall. Page 8 of 9 Ocoee City Commission Regular Meeting September 8, 2014 III. AD The meeting was adjourned at 8:25 p.m. Attest: Beth Eikenherrp, City Clerk APPROVED: City of Ocoee t S. Scott Vandergrift, Mayor Page 9 of 9