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HomeMy WebLinkAbout09-18-06 Minutes SS OCOEE CITY COMMISSION SPECIAL SESSION - TENTATIVE BUDGET PUBLIC HEARING Ocoee Commission Chambers September 18, 2006 MINUTES 7:00 P.M. Mayor Vandergrift called the Tentative Budget Special Session to order at 7:00 p.m. in the Commission Chambers of City Hall. City Clerk Eikenberry called roll and declared a quorum present. Roll Call: Commissioner Hood, Commissioner Anderson (arrived at 7:05), Mayor Vandergrift, Commissioner Keller, and Commissioner Johnson (absent). Also Present: City Manager Frank, City Attorney Rosenthal, City Clerk Eikenberry, Finance Director Horton, Senior Accountant Brosonski, and Accountant Rosenberg. Mayor Vandergrift announced that this is a public hearing on the tentative budget and proposed millage rate for the City ofOcoee. Notice of this hearing was contained in the Notice of Proposed Property Taxes mailed by the Property Appraiser. The City Commission has previously set a proposed millage rate of 5.0 mills which represents a 24.12% increase in millage over the rolled- back rate of 4.0285 mills. II. PUBLIC HEARING Finance Director Horton announced that the percentage increase in the tentative millage over the rolled-back rate necessary to fund the proposed budget 19.19 %. Advalorem tax revenues are being increased by $2,048,711 to provide funding for operating expenses, programs, capital improvement projects, additional staff, and the purchase of equipment and vehicles. The proposed tentative millage rate is 4.8018 which exceeds the roll-back rate by 19.19 percent. City Attorney Rosenthal noted that this rate where the budget is tentatively balanced 4.8018 mills which is lower than what was advertised in residents' tax notices as 5.0 mills and an increase in the roll back of 24.12 %. City Manager Frank read a memo from Commissioner Johnson who was absent: After further review of the job descriptions and duties of the three new positions in Public Works, I would like to recommend that they be classified at Pay Grade 34 and titled Public Works Managers. These positions would then answer to the Assistant Public Works Director. City Manager Frank explained that this is in response to a discussion in the workshops to drop two of the three operations positions down to Pay Grade 30. He advised Commissioner Johnson will be present for the Final Budget Hearing to discuss it further, if needed. 11. Comments by Citizens. Mayor Vandergrift opened the Public Hearing. There being no one wishing to speak, Mayor Vandergrift closed the Public Hearing. Ocoee City Commission Regular Meeting September 18, 2006 12. Comments by Commissioners. City Attorney Rosenthal clarified that, procedurally, the budget packet presented to the Commission was at 4.8018 mills, and if the Commission wanted to stay at 5.0 mills they would have to amend the tentative budget to add funds somewhere, either contingency or elsewhere. Additionally, if they wanted to lower the millage rate by removing some of the items listed in the workshop, the budget would also have to be amended. Commissioner Keller asked about Commissioner Johnson's recommendation on the three Public Works positions. The decision at the workshop was to change the Sanitation/Fleet Operations and Maintenance Operations at Pay Grade 30 and Street Operations at Pay Grade 36 because that position required an Engineer. There was discussion as to why Commissioner Johnson changed his decision to keep them all at Pay Grade 34. Human Resources Director Carnicella advised that Commissioner Johnson looked over the positions with HR staff and he believes he felt that Pay Grade 30 may not be equitable with other positions with similar responsibilities. Consensus of the Commission to leave the positions as determined in the workshop. and have Commissioner Johnson discuss the issue when he returns for the Final Budaet Hearina. Finance Director Horton clarified that only the one position, Public Works Superintendent, would impact the general fund, the other position is listed under one of the enterprise or utility funds. The difference in millage to exclude those reductions would take the millage rate from 4.7310 to 4.7335. Mayor Vandergrift asked Ms. Horton how much one tenth of one mil is in dollars. Ms. Horton advised as a rule, one tenth of a mil represents about $206,000. 3. Motions by Commissioners for amendments to the proposed tentative budget. Commissioner Keller moved to amend the proposed tentative budaet to reflect all chanaes from the workshops (listed below). except the two chanaes to the Public Works positions. whose positions would remain as proposed in the budaet. Motion died for lack of second. Workshop Items - Suoaested Budoet Amendments ($20,000) Reduce AlC Duct Work ($30,000) Reduce Plan Tracking/Code Enforcement Software ($20,000) Change GIS Manager to GIS Analyst ($25,000) Remove Portable Message Board ($15,000) Reduce Gate at Public Works Compound ($50,950) Delete Admin. III Position in Finance/l.8 Department ($25,305) Delete PT Permitting Tech Position in Building Department (~",~r,~2,21",~~.~,,~~,~S,~~!~~,!~~{S!~~{~~~,,~~~,,~~.{S~,.~!~~~~S~...~.~,~..~ ($'i7~~'~~~)!!::!:II~!!:l~F!m!i!t!!l~.:~~ili!I~~Ulligl1l,~!1l1l1l~gl:~::lllii!I!iI~g,Ellllllgl~ $41,300 Add a Communications Operator in the Police Department $15,000 Add Funds for the City Manager's Salary $141,755 TOTAL GENERAL FUND ($ 2,105) Remove funds for Reclass Lift Station Technician ($26,320) Remove funds for Operations Supervisor in Water $ 33,425 TOTAL UTILITY FUND Page 2 of 9 Ocoee City Commission Regular Meeting September 18, 2006 Commissioner Anderson asked Acting Chief McNeil if it would be better to hire the ALS Training Officer for a full year instead of bringing him in at half-year. Acting Chief McNeil said their original target date for switching to ALS service was January 2008, however at the workshop the Commission expressed an interest in getting it started sooner. He said having ALS up and running by mid-year would be a very aggressive goal, we do have six paramedics that are currently certified by the state, but four of those still need to be precepted and approved by the county Medical Director. He added that he is confidant they will be able to get some grant money for equipment and supplies. Commissioner Anderson said he would like to see the aggressive approach to target the start up for mid-year. Commissioner Anderson. seconded by Commissioner Keller moved to expand the ALS/Trainina Officer position to a full year as opposed to a half year. at a budaet increase of $47.820 to the appropriate line item in the General Fund. Vote was taken after discussion. Mayor Vandergrift said he has supported increasing the millage rate for the last two years. He said this year he asked the City Manager to trim a half million dollars from the budget to see where we would end up on millage rate. Back in the 70's the City was taxing residents at 10 mills and the state government said they would have to roll that back each year to the point that all property would be appraised at 100%, at that time they were only appraised at 40%. He said he is in favor of rolling back the taxes. He advised that it appears we are holding the line on taxes, but if you look at the newspaper ad you will see that we are raising the taxes over the roll back rate. Commissioner Anderson asked what percentage we are taxing at right now. Mayor Vandergrift advised somewhere between 75% and 85% and it probably won't get much higher due to change in the way property values are determined. Commissioner Anderson said he feels that as long as we continue to improve the quality of life, such as the implementation of ALS, the property values will raise exponentially because more people want to live in Ocoee. Mayor Vandergrift added that people on a fixed income don't see it that way because they can be taxed out of their homes, and he believes real estate should be a cherished commodity that residents should not have to worry about. After the discussion. motion carried 3-1 with Mayor Vanderarift opposed and Commissioner Johnson absent. R.P. Monackey, 1820 Prairie Lake Blvd., asked about the large jumps in the General Fund figures on Page 3-35. Finance Director Horton explained that has to do with the sale, debt service (Page 11-19), and transfers relating to the Coke Property. Other large figures there are due to the purchase of the Police Station Property, and Park Property. Commissioner Hood said he would like to consider getting rid of the car wash. The money allotted would not be enough to maintain it, and he thinks we should either give out vouchers or have employees with take-home vehicles wash them. Commissioner Hood. seconded by Commissioner Anderson moved to remove the Car Wash from the budaet. decreasina the budaet by $25.000. Motion carried 4-0. with Commissioner Johnson absent. Page 3 of 9 Ocoee City Commission Regular Meeting September 18, 2006 Commissioner Keller. seconded by Commissioner Hood. moved to accept all of the chanaes that were discussed at the workshop. No motion was made at this time due to subsequent discussion and amendment. Commissioner Anderson asked Finance Director Horton if changing that would reduce the millage rate downward, in such a way that it would limit them from going higher at the final budget hearing. Finance Director Horton advised that with all of the workshop changes, and the two adjustments that were made tonight (ALS Position and Car Wash) the millage rate would be 4.7424 mills. Commissioner Anderson noted that we would not be able to go above the 4.7 at the Final Budget. City Attorney Rosenthal explained that the tentative millage rate adopted tonight would create the new cap; you could not have a millage or a final budget that would go over that amount. You can always go lower. You can move the money to contingency tonight if you choose to leave it in the general fund. Mayor Vandergrift questioned why we cannot go back up to the 5.0 millage rate that was advertised in the TRIM notice, as these are two continuing Public Hearings. City Attorney Rosenthal advised that the 5.0 mills is the cap set in the trim notice for this meeting to adopt the tentative millage and budget; once the millage rate set at the tentative budget hearing, it sets the new cap for the final budget hearing and the 5.0 mills noticed in the TRIM bill goes away once the tentative millage rate and budget are adopted. Commissioner Keller. seconded by Commissioner Hood. moved to accept all of the chanaes that were discussed at the workshop. and move the $141.755 out of the various line items and into the continaency fund. Motion. as amended. carried 3-1 with Mayor Vanderarift opposed and Commissioner Johnson absent. . Workshop Items - Suaoested Budaet Amendments ($20,000) Reduce AlC Duct Work ($30,000) Reduce Plan Tracking/Code Enforcement Software ($20,000) Change GIS Manager to GIS Analyst ($25,000) Remove Portable Message Board ($15,000) Reduce Gate at Public Works Compound ($50,950) Delete Admin. III Position in Finance/I.S Department ($25,305) Delete PT Permitting Tech Position in Building Department ($ 6,800) Remove Chairs for City Managers Conference Room ($ 5,000) Change Public Works Operations Manager to Superintendent $41,300 Add a Communications Operator in the Police Department $15,000 Add Funds for the City Manager's Salary $141,755 TOTAL GENERAL FUND ($ 5,000) Change Public Works Manager to Superintendent ($ 2,105) Remove funds for Reclass Lift Station Technician ($26,320) Remove funds for Operations Supervisor in Water $ 33,425 TOTAL UTILITY FUND Commissioner Keller asked to review the list from the workshop, to make sure they all understand what they voted on. Commissioner Keller asked for clarification on the Public Works positions from what was requested with the original budget. Senior Accountant Brosonski advised that the Maintenance Operations Manager position was at 30 and will remain there, the Sanitation/Fleet Operations Page 4 of 9 Ocoee City Commission Regular Meeting September 18, 2006 Manager position was moved down to 30, and the Street Operations Manager was moved up to 36. Commissioner Keller advised that there is only one Communications Operator on the list and he thought they agreed on two. Police Chief Reffett clarified that he had only asked for one. Commissioner Anderson asked if the new fire truck with the four year lease is new, or replacing another vehicle. Acting Chief McNeil said it will be the new Engine 25 to run out of Fire Station One. It will be in addition to the other trucks and used when the manpower is available and to reduce the call volume on the Ladder truck due to its age. Commissioner Anderson asked when we will receive money from Orange County for Old Winter Garden Road. City Engineer Wheeler advised there is a final change order on tomorrow night's agenda, and we have been billing Orange County on a quarterly basis and we have been receiving payments from them. Commissioner Anderson asked how that money is shown in the budget. Finance Director Horton said the money is dispersed from the Transportation Impact Fees and it is recorded as a reimbursement to that fund, not an additional income. Commissioner Hood said when the utility fees were changed over the tax roll, he understand that we were going to save an employee, and he asked if we were reducing that department by one person or moving a person to a different department. City Manager Frank said he does not remember ever discussing that the department could be reduced by one employee, the same number of bills must be produced each month. Finance Director Horton advised that the number of solid-waste-only customers is 1,100, but there are still 11,000 utility bills going out and being serviced. Additionally, the new customers will still have to be billed monthly until they can be placed on the tax roll the next year. There is a minimal amount of time saved by the change over. The Stormwater fund is paying for approximately 1/10 of a person for utility billing. Commissioner Anderson asked Ms. Horton to put something in writing to explain that there is no administrative cost savings, since the question has been asked repeatedly. Commissioner Hood says he does recall a conversation many months ago where Public Works Director Zaitooni and Customer Service Supervisor Sills mentioned that switching to the uniform method of collection for solid waste and Stormwater would create a savings in administrative costs. He said after discussing the billing process, it makes sense that there would really not be any great savings on the administrative end. Mayor Vandergrift said he has always felt that the City should have a Utilities Commission similar to the OUC in Orlando. Commissioner Anderson said we should think about doing something new with utilities when the franchise contract is getting closer to expire. R.P. Monacky, 1820 Prairie Lake Blvd., said if the City is considering going that route, they should think about tying in with the OUC, unless they intend to produce the power ourselves. Finance Director Horton asked for direction on the changes to the Pension, COLA, and Pay Plan Adjustments that were mentioned at a previous workshop and are listed on the last page of tonight's handout. She said this would not affect the dollar amount, but it would direct staff where the funding should be placed in the budget. Recommended: Increase Pension Multiplier to from 2.5% to 3% Page 5 of 9 Ocoee City Commission Regular Meeting September 18, 2006 COLA & Merit at 2.0% Pay Plan Adjustments Commissioner Anderson asked how the change in the Pension multiplier will affect the pension in the future. Human Resource Director Carnicella said it depends on how the pension performs and whether or not there are any other increases in benefits. He said that if the pension performs at the assumptions made by the actuary, this increase should decrease over time. The 14% paid by the City should come down each year, and the 1 % taken from the COLA and Merit should help to fund this increase. . He said the pension is performing much better than it has in the past and the actuary is being held accountable for making sure the assumptions are correct. Human Resource Director Carnicella said he would like the Commission to trust that if we continue to work closely with the pension board, the actuary, and the money managers that we will be able to pay for the 3% multiplier and offer competitive pay increase over the next three to five years. Commissioner Anderson asked what number we use to calculate the COLA. Finance Director Horton advised the COLA and Merits are based on the CPI, which is 4.3 this year. He clarified that the proposal this year is to reduce the COLA and Merit from 2.5% to 2% to help fund the increase in the pension multiplier. Mr. Carnicella said Police and Fire are already at a 3% multiplier, and this is a wonderful way to reward the long term general employees with a large increase in their pension plan. Commissioner Anderson and Commissioner Keller asked Mr. Camicella to bring the report from the actuary. Consensus of the Commission was to vote on this at the Final Budaet Hearina on September 27.2006. which would allow the Commission time to see the actuarial report. Commissioner Hood asked Mayor Vandergrift if he has any ideas about how to reach the roll- back rate. Mayor Vandergrift said he has been making suggestions for many years and this year he used a different approach and had the City Manager submit changes reducing the budget by $500,000 and the Commission added it all back in. He said he has come to the conclusion he is with a tax and spend Commission and he will just vote NO and go along with what is decided. Commissioner Anderson said he tried last year to reduce the budget and didn't get what he wanted; his opinion has not changed, he thinks there are too many bosses, and not enough workers. There was a short discussion on the issue of increasing the pension numerator. Commissioner Hood asked City Manager Frank about the two landscaping companies and if we were going to try to keep them for next year. City Manger Frank said the plan was that if these landscaping firms work out we will use the funds to pay for the two in-house landscaping employees to cover the services under the contract instead. Commissioner Hood said he feels that all of the landscaping, mowing, and parks maintenance should all be under one department. City Manager Frank said Asst. City Manager Croteau has been looking at them and we will review the options more if we decide to bring in all in house. He asked the salaries of the two landscape employees is enough to cover the cost of outsourcing the landscaping. Public Works Director Krug said at this time we are breaking even, but that could change if we went out to bid for landscape and mowing services. Commissioner Hood asked if we could look at eliminating a supervisor position if the landscape will not be done in house, and City Manager Frank said the whole program will need to be reviewed, we may also consider expanding the program and turning positions over to contractors as vacancies occur. Mayor Vandergrift said keeping up with the retention ponds needs to be done twice a month for most of the year. We Page 6 of 9 Ocoee City Commission Regular Meeting September 18, 2006 originally wanted to outsource only that service, but the program has changed overtime. He is not in favor of bidding out anything that can be done effectively in-house. City Attorney Rosenthal said if there are no further amendments to the tentative budget, the millage rate needs to be recalculated. RECESS to recompute the proposed millage rate and rolled-back percentage increase. 9:45 p.m. to 9:00 p.m. Finance Director Horton announced that the percentage rate increase in the tentative millage over the rollback that is necessary to fund the proposed budget, is 19.48 % . The proposed amended Tentative Millage Rate is 4.8132. City Attorney Rosenthal said the 19.48% represents the increase in property taxes. 11. Read title to Ordinance regarding millage rate. City Attorney Rosenthal read the title of Ordinance No. 2006-016, establishing the tentative millage rate. I 2. Motion to adopt the tentative millage rate. Commissioner Hood clarified that the millage rate is now at 4.8132 and Commissioner Keller said we started at 4.8018 and removed $141,755 from various line items and placed those funds in contingency. The other two changes with the ALS position and the Car Wash brought us to the new millage rate which is slightly higher than where we started. a. Comments by Citizens - none b. Comments by Commissioners-none c. V ote on motion to adopt the tentative millage rate. Commissioner Keller. seconded bv Commissioner Anderson moved to adopt the tentative millaae rate of 4.8132. Motion died due to a 2-2 tie vote. with Mavor Vanderarift and Commissioner Hood opposed and Commissioner Johnson absent. Commissioner Hood said he is not in favor of raising the millage rate over last year's rate of 4.8018. Commissioner Keller advised that if we do not make any other changes and remove the money we placed into contingency at the Final Hearing, the millage will be 4.7424 and the Finance Department advised that would be a 17.72% increase over the rollback rate. If we leave it in contingency tonight, it will allow us some room to make adjustments, if needed. Once a lower rate is adopted, we can't go back up. Commissioner Anderson confirmed that no change in the millage rate from last year would increase tax revenue by $2,048,000 due to increase in property value. He said, with the increase in insurance, salaries, contracts with Police and Fire, Page 7 of 9 Ocoee City Commission Regular Meeting September 18, 2006 projects, etc., that money will be used up quickly. The only way to reduce that number is not by eliminating projects, but by reviewing positions at the top because we are too top heavy. Commissioner Keller said he would like to reduce the millage to at least the 4.8018 so they know we are moving in the right direction. Commissioner Anderson recommended we take the difference out of the contingency fund to reduce the millage rate from 4.8132 to 4.8018 Commissioner Anderson. seconded bv Commissioner Keller moved to remove $22.750 from the continaencv fund and out of the tentative budaet. Motion carried 3-1 with Vanderarift opposed and Commissioner Johnson absent. Finance Director Horton recalculated the millage and announced that the proposed tentative millage is now 4.8018 and the percentage rate increase in the tentative millage over the rollback that is necessary to fund the proposed budget, is 19.19%. City Attorney Rosenthal said the 19.19% represents the proposed increase in property taxes. Commissioner Keller. seconded bv Commissioner Anderson moved to adopt the Tentative Millaae Rate of 4.8018 mills for the Fiscal Year beainnina October 1. 2006 and endina September 30. 2007. Motion carried 3-1 with Vanderarift opposed and Commissioner Johnson absent. 13. Read title to Ordinance regarding budget. City Attorney Rosenthal read the title of Ordinance No. 2006-017, adopting the tentative bud et. 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. Commissioner Anderson. seconded bv Commissioner Hood made a motion that the City Commission adopt the tentative budaet of the City of Ocoee distributed alona with the budaet messaae of the Citv Manaaer dated Julv 29. 2006. alona with the chanaes resultina from the Budaet Workshops ras amended1, such tentative budaet beina for the fiscal year beainnina October 1. 2006. and endina September 30. 2007. Motion carried 3-1 with Mavor Vanderarift opposed and Commissioner Johnson absent. Commissioner Anderson. seconded bv Commissioner Keller moved that a public hearina to consider the final millaae rate and final budaet be scheduled for September 28, 2006. at 7:00 p.m. at a Special Meetina of the City of Ocoee City Commission to be held at the Ocoee City Hall Commission Chambers, that the hearina be advertised in accordance with the provisions of Section 200.065. Page 8 of 9 Ocoee City Commission Regular Meeting September 18, 2006 Florida Statutes. and Section C-37 of Article VI of the Ocoee City Charter. that the appropriate Ordinances necessary to adopt the final millaae rate and final budaet be prepared bv the City staff. and that all other action necessary to comply with the requirements of Section 200.065, Florida Statutes. be undertaken. Vote was taken after subsequent amendment. Finance Director Horton corrected the date for the Final Public Hearing which will be held on September 27, 2006, at 7:00 p.m. Commissioner Anderson. seconded by Commissioner Keller amended the motion to announce the date of the Final Hearina as September 27. 2006. at 7:00 p.m. Motion carried 3-1 with Mayor Vanderarift opposed and Commissioner Johnson absent. Vote was taken on the oriainal motion. as amended. Motion carried 4-0 with Commissioner Johnson absent. Mayor Vandergrift announced the Public Hearing for the Final Millage and Final Budget will be held on September 27, 2006, at 7:00 p.m. The meeting was adjourned at 9:20 p.m. Attest: APPROVED: City of Ocoee Page 9 of 9