Loading...
HomeMy WebLinkAbout09-12-2016 Minutes - Tentative Public Budget Hearing OCOEE CITY COMMISSION TENTATIVE BUDGET PUBLIC HEARING Ocoee Commission Chambers September 12,2016 MINUTES 6:00 P.M. I. CALL TO ORDER-6:01 PM A. Roll Call and Determination of Quorum Present: Commissioner Grogan, Commissioner Wilsen, Mayor Johnson, Commissioner Firstner, Commissioner Keller (arrived at 6:10 p.m.) B. Mayor's Announcement- 6:01 PM Mayor Johnson 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 has previously set a proposed millage rate of 6_5 mils which represents a 14.42% increase in millage over the rolled- back rate of 5.6808 mils). II. PUBLIC HEARING - 6:02 PM 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 announced the preliminary millage rate set by the City Commission and contained in the TRIM Notices is 6_5 mils. The maximum millage rate, which may be levied by the City by regular majority vote for the 2016-2017 fiscal year is 7.6151 mils, such maximum millage rate having been determined pursuant to Section 200.185(3)(a), Florida Statutes. The establishment of a millage rate between 7.6152 mils and 8.3766 mils requires a two-thirds vote (super majority) of the membership of the City Commission (or 4 votes). The establishment of a millage rate between 8.3767 mils and 10.000 mils requires a unanimous vote of the City Commission. Additionally, any millage rate adopted above the preliminary millage rate of 6.5 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. B. Briefing by Finance Director: review of additions/deletions to the budget since August 1, 2016 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. 6:03 PM Finance Director Horton announced the commission approved a tentative millage rate for FY 2017 of 6.5000 mils. This rate is higher than the rolled-back rate of 5.6808 and represents an increase of 14.42% over the rolled-back rate. After the budget workshop, staff performed a comprehensive review to correct any unintended omissions and finalize estimated program costs. Changes made to the budget by staff after the workshop include: Ocoee City Commission Tentative Budget Public Hearing September 12,2016 > Reduced police/fire pension contributions > Added revenues and expenditures for developer contributions for the City Center West Orange > Adjusted estimated revenues > Added funds for the Beech Center network upgrades ➢ City shared streetlights for Roberson Road ➢ Sponsorship of the Florida League of Cities event > Miscellaneous speed tables and streetlights > Part-time School Crossing Guard ➢ Maine Street retention pond and stormwater fund The proposed operating budgets for the City of Ocoee for FY 2017 total $66,633,080. The proposed General Fund budget is $40,599,585 and is balanced at 5.79 mils. The difference between the 6.5 mils and the 5.79 mils is $1,400,605, which is currently not in the budget. Ad Valorem taxes are being assessed to provide funding for: • Operational expenses • Capital purchases • Debt service payments • Salaries necessary to provide municipal services to the citizens and businesses of Ocoee Items identified by the commission or staff that are not included in the proposed budget are itemized on the unfunded list for discussion. 1. Comments by Citizens. 6:06 PM Mark Scalzo, 703 Marotta Loop, expressed his concerns regarding the current fire protection on the northwest part of the City. He shared that currently the City has a two-man advanced life support unit that is housed at Fire Station 38, which is located within the Publix shopping center on West Road. Although sufficient for life support, there is no City fire engine or suppression unit dedicated to this area. The closest fire engine would be the City of Winter Garden's Fire Engine 23. He further expressed several concerns, which will result due to growth in that area. In conclusion, Mr. Scalzo opined that by staffing a four-man engine company at Fire Station 38, the fire personnel could not only provide ALS service, but suppression capability also. He asked that the Commission please consider in doing whatever it takes to accomplish the upgrade in service to the residents of District 1 in the northwest Ocoee area and make provisions in the FY 16/17 budget that will at least start the process. Martha Lopez-Anderson, 2438 Alclobe Circle, said at the Budget Workshop the Commission went through an extensive list of different items, which contained costs associated to them, and the Commission was going to decide which of those items they were going to prioritize and include in the budget. She inquired where citizens can obtain a copy of that list so that citizens can properly provide feedback. City Manager Frank explained that he is not sure which list she is referring to, but briefly shared that the Capital Budget for next year does list any possible projects and funding. Brief discussion ensued regarding the bond issue for the Downtown Redevelopment, and it was explained that within the next few weeks there will be workshops for Page 2 of 8 Ocoee City Commission Tentative Budget Public Hearing September 12,2016 the Commission to prioritize which projects they would like to fund. Ms. Lopez-Anderson concluded her comments by echoing Mr. Scalzo's concerns on the importance of a fire station on the northwest part of the city. Chris Atkins, 606 Ridgefield Avenue, shared his concerns with regards to the non-ad valorem assessment on his taxes. 2. Comments by Commissioners. 6:19 PM Commissioner Grogan said he would like to see the architect/engineer fees ($160,000) put into this year's budget. He would like to start the process so that maybe next fiscal year they can finalize it and start on the construction of the building. He further commented that the item he added to the unfunded list to be discussed was the priority based budgeting ($47,500) which he feels would help with issues such as working on the budget and the services the City provides to residents. Commissioner Grogan further explained the quality performance audit ($15,000) which was an additional item he added as well to the unfunded list. Commissioner Wilsen inquired about the Florida League of Cities Sponsorship ($10,000)which was included on the proposed balanced budget list. It was clarified that it was for the National League of Cities; and because of the Mayor's appointment as Chair to that organization, the City will be hosting an upcoming meeting. Commissioner Wilsen further commented that the walkway and lighting at Withers Maguire House ($22,000) is something she would like to consider adding to the budget. Commissioner Firstner said he is fine with the majority of the budget, but does have concerns with the need of a fire station in the northwest end of town. He further opined that if they wait much longer it will be more difficult for them to catch up. Commissioner Firstner shared that he thinks they can wait on the fire station construction and improvements until they receive impact fees. He would like to add into the budget the operating costs for personnel ($576,920) which would put the millage rate at 6.0825; if they can fray that cost a little, it would help. Commissioner Keller said he is happy they added speed tables and lighting into the budget. He further shared that he agrees with Commissioner Grogan on the priority based budgeting as he has attended classes on that topic and sees the value of having it done. He reiterated the need of having a fire station in the northwest portion of town, especially with the growth and the high school being in that area. He has no problem starting with the architect/engineer planning for the fire station in this upcoming budget and opined that the operating costs for the fire station may not be needed yet. He further commented on the possibility of bringing transport in-house instead of outsourcing so that the City could profit. Commissioner Keller further commented that they have had problems with graffiti at Central Park, and he would not have a problem with adding the installation of the security camera system ($137,000) into the budget. Central Park would be the best park to start with since it is the largest and most used park. Mayor Johnson inquired when the second phase of the land sales with Mattamy Homes would occur. City Manager Frank said he believed December 2017. Mayor Johnson inquired if they could use funds from that sale to start architect/engineer design for the fire station. City Page 3 of 8 • Ocoee City Commission Tentative Budget Public Hearing September 12, 2016 Manager Frank answered in the affirmative, and advised they can use funds from either the bond issue or using proceeds from the Crown Point sale to start the architect/engineer design for the fire station. Mayor Johnson commented that the other item he brought up at the budget workshop was the live scan for the firefighters. Fire Chief Miller said he provided the information to him, the City Manager and the HR Director; and after discussions, it was decided it may be best for that to be part of the contract negotiations. It was also mentioned that the firefighters could use their VEBA account. Fire Chief Miller briefly addressed the need of a fire station in the northwest area and advised that the most important priority is to get a suppression unit with personnel at the current existing facility. This would allow them to safely get by. Commissioner Grogan inquired on the operating costs for adding the suppression unit. Fire Chief Miller advised they would have to add an additional room at that location, which would be about $15,000-$20,000. They have the apparatus. So the only additional costs would be the personnel costs. Mayor Johnson briefly clarified and addressed the fire fee and non-ad valorem fees that were brought up by Mr. Atkins. Discussion ensued. With regards to the fire station architect/engineer/construction, City Manager Frank advised the Commission to keep in mind that they do have a bond issue coming up; and if they wanted to add the $1.4 million to the bond issue, they could make that commitment. Brief discussion ensued. 3. Motions by Commissioners for amendments to the proposed tentative budget. 6:53 PM Motion: Move to amend the tentative budget to include those items on the proposed balanced budget millage rate; Moved by Commissioner Keller, seconded by Commissioner Grogan. Motion carried 5-0. Proposed Balanced Budget Millage Rate 5.9104 City Center West Orange Plan Review Fees (per agreement) 0 Police/Fire Pension (assumption changes effective 10/1/17) (430,000) (0.2180) 5.6924 Adjustment to Estimated Revenues 127,175 0.0645 5.7569 Beech Center Network- upgrade to 100mb 4,260 0.0022 5.7591 Street Lights for Roberson Road (City's share) 20,000 0.0101 5.7692 National League of Cities sponsorship 10,000 0.0051 5.7743 Miscellaneous Speed Tables and Street Lights 25,000 0.0127 5.7869 Add PT School Crossing Guard 6,150 0.0031 5.7900 This would reduce the millage rate to 5.79 mils. It was discussed to add the fire station architect/design and construction to the bond issue. New Fire Station (architect/engineer) Miller 160,000 0.0811 New Fire Station (construction) Miller 1,410,000 0.7148 Page 4 of 8 Ocoee City Commission Tentative Budget Public Hearing September 12, 2016 Commissioner Wilsen inquired what the millage rate would be if they added the following three items: Upgrade Athletic Field Lighting at Central Park Hayes 227,000 0.1151 Walkway and Lighting at Withers Maguire House Hayes 22,000 0.0112 0 0.0000 Central Park Security Camera System Butler 137,000 0.0694 It was announced that would bring the millage rate up to 5.9857 mils. Parks and Recreation Director Hayes briefly explained the lights are for the little league fields (Minor field and T-ball field). They did replace the lights for the major fields at Central Park. Discussion ensued on the lights, if they worked, and if upgrading them could be held off until next year. Commissioner Wilsen said she feels the security camera system is important, because they have had issues at Central Park for a long time. She further inquired if she added only that item into the budget, what would be the millage rate. It was announced that would bring the millage rate to 5.8595 mils. Commissioner Wilsen inquired what the millage rate would be if she added both the walkway and lighting at Withers Maguire House and the Central Park security camera system. It was announced that would bring the millage rate to 5.8706 mils. Support Service Director Butler briefed the board on the security camera system and some of the major issues they are experiencing with vandalism. City Manager Frank shared that Finance Director Horton is looking into the balance of the Parks and Recreation Impact Fees; and further, they can possibly use those funds if there is money in that account, which would not affect the millage rate. Motion: Move to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2016, along with the changes proposed in the Budget Workshops, in the following manner to include the Walkway and Lighting at Withers Maguire House; Moved by Commissioner Wilsen, seconded by Commissioner Keller. Motion carried 5-0. Motion: Move to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2016, along with the changes proposed in the Budget Workshops, in the following manner to approve Central Park Security Camera System and funding to come from Recreation Impact Fees; Moved by Commissioner Wilsen, seconded by Commissioner Grogan. Motion carried 5-0. Commissioner Wilsen inquired about the increase of the HRA back to its original amount. City Manager Frank advised that would be an additional $303,000. Commissioner Wilsen inquired if the $303,000 was added into the budget, what would be the millage rate. It was announced that would bring the millage rate to 5.9548 mils. It was briefly clarified that the increase of the HRA would reduce the amount of deductible employees pay. Brief discussion ensued regarding the HRA. Page 5 of 8 Ocoee City Commission Tentative Budget Public Hearing September 12, 2016 Motion: Move to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2016, along with the changes proposed in the Budget Workshops, in the following manner to include the quality performance audit; Moved by Commissioner Grogan, seconded by Commissioner Wilsen. Motion carried 5-0. It was announced that would bring the millage rate to 5.8088 mils. NOTE: RECESS 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 required to adopt this millage rate (Regular Majority, Super Majority, or Unanimous). Finance Manager Brosonski announced the following has been added to the proposed balanced budget: Walkway and Lighting at Withers Maguire House Hayes 22,000 0.0112 Quality (Performance)Audit Grogan 15,000 0.0076 This will bring the millage rate to 5.8088 mils. Commissioner Keller said he would like to make an amendment so that they can still have the option at their next meeting to look at items they may need. He inquired what amount was needed to keep the millage rate at the 6.5 mils. Finance Manager Brosonski announced they would need to add $1,363,605 to contingency to balance the millage rate at 6.500 mils. Commissioner Keller announced this increase has been done historically every year, and they bring the millage rate down at the final budget hearing. Motion: Move to amend the tentative budget to include $1,363,605 to contingency; Moved by Commissioner Keller, seconded by Commissioner Firstner. Motion carried 5-0. 1. Read title to Ordinance regarding millage rate. Motion: Move that the City Commission adopt the tentative millage rate at 6.5 mils for the fiscal year beginning October 1, 2016, and ending September 30, 2017; Moved by Commissioner Keller, seconded by Commissioner Wilsen. Motion carried 5-0. Page 6 of 8 Ocoee City Commission Tentative Budget Public Hearing September 12, 2016 City Attorney Cookson read the title of the ordinance. AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A TENTATIVE MILLAGE RATE of 6.5 MILS FOR AD VALOREM TAXES FOR THE CITY OF OCOEE FOR THE FISCAL YEAR BEGINNING OCTOBER 1,2016, AND ENDING SEPTEMBER 30, 2017; PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR 14A2% INCREASE IN MILLAGE RATE OVER THE ROLLED-BACK RATE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 2. Motion to adopt the tentative millage rate. 7:29 PM Motion restated: Move that the City Commission adopt the tentative millage rate at 6.5 mils for the fiscal year beginning October 1, 2016, and ending September 30, 2017; Moved by Commissioner Keller, seconded by Commissioner Wilsen. a. Comments by Citizens. Mark Scalzo, 703 Marotta Loop, asked for clarification on the fire station. It was explained that the architect/engineer and construction will be added to the bond issue. He further inquired about the personnel costs for the fire station and if that is going to be discussed. He opined that they should be concentrating on staffing. Commissioner Keller commented that he made the motion of the millage rate at 6.5 mils so that the Commission does have the ability to discuss with the City Manager on how they would like to handle this issue. Discussion ensued. b. Comments by Commissioners - none c. Vote on motion to adopt the tentative millage rate. Motion on the adoption of the tentative millage rate carried 5-0. 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, 2016, AND ENDING SEPTEMBER 30, 2017; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 1 4. Motion to adopt the tentative budget. 7:37 PM a. Comments by Citizens - none b. Comments by Commissioners - none Page 7 of 8 Ocoee City Commission Tentative Budget Public Hearing September 12, 2016 c. Vote on motion to adopt the tentative budget. Motion: Move 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, 2016, along with the changes resulting from the Budget Workshops, and as amended at the Tentative Budget Public Hearing tonight, such tentative budget being for the fiscal year beginning October 1, 2016, and ending September 30, 2017; Moved by Commissioner Keller, seconded by Commissioner Wilsen. Motion carried 5-0. d. Motion to schedule the public hearing on September 21, 2016, at 6:00 p.m. in the Commission Chambers to adopt the final millage rate and budget. 7:38 PM Motion: Move that a public hearing to consider the final millage rate and final budget be scheduled for September 21, 2016, at 6:00 p.m. at a Special Meeting of the City of Ocoee 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; Moved by Commissioner Keller, Seconded by Commissioner Firstner. Motion passed unanimously. e. Announcement by Mayor Johnson of end of hearing and date for final millage and final budget hearing. 7:39 PM Mayor Johnson announced the final budget and final millage rate hearing will be held on September 21, 2016, at 6:00 p.m., at Ocoee City Hall. III. ADJOURNMENT - 7:40 PM The meeting was adjourned at 7:40 p.m. APPROVED: Attest: City of Ocoee 1, idluafi- tL.:44% Melanie Sibbitt, City Clerk Rusty J illtein, Mayor Page 8 of 8