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HomeMy WebLinkAbout09-27-06 Minutes - Final Budget CITY OF OCOEE FINAL BUDGET PUBLIC HEARING Ocoee Commission Chambers September 27,2006 MINUTES 7:00 P.M. I. CALL TO ORDER- Mayor Vandergrift Mayor Vandergrift called the Final Budget Public Hearing 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: Mayor Vandergrift, Commissioner Anderson, Commissioner Hood, Commissioner Johnson, and Commissioner Keller. Also Present: City Manager Frank, City Attorney Rosenthal, and City Clerk Eikenberry. II. PUBLIC HEARING Mayor Vandergrift advised 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 rate of 4.8018 mils, which represents a 19.19 % increase in millage over the roll back rate of 4.0285 mils. A. 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 valorem tax revenues are being increased. Finance Director Horton announced the percentage rate increase in tentative millage over the roll back rate necessary to fund the proposed budget is 19.19%. The ad valorem tax revenues are being increased by $2,048,711 to provide funding for operating and program expenses, capital improvement projects, additional staff, and the purchase of equipment and vehicles. The proposed millage is 4.8018 which exceeds the roll back rate by 19.19%. 1. Comments by Citizens. Mayor Vandergrift opened the Public Hearing. James Fleming, 511 Orange Avenue, spoke about the four properties his mother owns in the City of Ocoee. He said last year she paid $3340, and this year it will increase to $4625. Part of that is an increased property value, but some of it is increased taxes and assessments. He asked the Commission to keep the taxes as low as possible without jeopardizing the services. Henry Morgan, 304 South Lakeshore Drive, said the utility billing issue is a "done deal" so he does not wish to discuss that tonight, but asked why we are not eliminating someone from the utility billing department since that is what residents were told previously. Commissioner Anderson asked how much time it takes to put the data together, monitor it and do regular updates. Finance Director Horton said that we do not have those figures, but the biggest misconception is that the biggest misconception is that the billing is done manually each month. New accounts are coded and then automatically billed from that point forward; therefore there is a misconception about man hours that would be eliminated. Initially, the setup phase is taking a considerable amount of time between Utility Billing and Ocoee City Commission Regular Meeting September 27, 2006 Public Works, but that will be eliminated when it goes to the next phase. Commissioner Anderson read a list of job duties of the Utility Billing department. Kathy Storm, 418 Kayla Court, said she represents working poor, and said that placing garbage and Stormwater on the tax bill will hurt a lot of people because there escrow projections will increase and the mortgage companies may require a lump sum. She also asked if the City will be decreasing their spending since so many of the residents will have less to spend. Mayor Vandergrift said there is no increase in the garbage rate, and residents will received a 4% discount if it is paid on time along with their regular taxes. Hopefully, there will be enough interest earned over the year that the garbage rates will be able to be rolled back. Also, our commercial garbage contract will increase the cities revenues in that department. Commissioner Hood said the first year will be difficult for some, but in the long run it will save the residents money and create more revenue for the City, so it is a win/win situation. Commissioner Johnson said that next year she will be able to opt out of having the garbage placed on tax roll. Rosemary Wilsen, 1019 Shady Maple Circle, asked about the $15,000 that was added to the budget for the City Manager's salary increase, and said the contract was renewed last year. Finance Director Horton said that money has been set aside in the budget at the request of the Commission, but no definitive amount has been decided upon at this time. Ms. Wilsen also asked when the individual evaluations were last done. Commissioner Keller said he did the written evaluation a few months ago. Commissioner Hood and Commissioner Johnson said they communicate their evaluation verbally to the City Manager and they have completed that process. Commission Anderson advised that he will do an evaluation after the budget process. Mayor Vandergrift advised that the Charter does not require a written evaluation. The Mayor and Commissioners stated they prefer to meet with him on a regular basis to discuss his performance, but they feel a workshop should be held to discuss his overall job performance and compensation. Martha Lopez Anderson, 2438 Alclobe Circle, addressed an email she sent to Commissioners on August 29, 2006, and said she feels the Commission should consider increasing the Community Relations budget. She said that the department was reduced to one full time and one part time employee with the same responsibilities that previously had four people. City Manager Frank said he feels the department is staffed sufficiently at this time, and that there were not four people previously. Commissioner Anderson reminded everyone that Assistant City Manager Croteau is also involved with that department. Commissioner Johnson also stated that the HR department has taken over some of the responsibilities. James Fleming, 511 Orange Avenue, said that Florida Statute 215-4.25 allows for bonuses for outstanding employees whose performance exceeds standards and that the Clerk's Office employees should get $1,000 bonuses. 2. Comments by Commissioners. No additional comments were made. 3. Motions by Commissioners for amendments to the proposed tentative budget. Page 2 of 9 Ocoee City Commission Regular Meeting September 27, 2006 Commissioner Keller, seconded by Commissioner Anderson moved to reduce the contingency fund by $119,005 with regards to items that were previously removed from the budget and moved to contingency funds, creating a new millage rate to balance the budget of 4.7424 millage rate. Motion carried 5-0. Commissioner Johnson said he believes he made a mistake at a previous budget workshop when he asked the Commission to consider reducing two the Public Works Manager's positions (Sanitation/Fleet Operations and Maintenance Operations) from pay Grade 34, as requested, to pay Grade 30. He said he would like leave it as it was originally requested in the budget: Sanitation/Fleet Operations (Grade 34), Maintenance Operations (Grade 34), and Street Operations (Grade 36). Public Works Director Krug said they had originally requested all three positions are Grade 36, put they would be able to work with two positions at Grade 34 as long as Street Operations stays at Grade 36. Commissioner Johnson, seconded by Commissioner Hood moved amend the previous change requested at a workshop and leave the two Public Works Managers positions as follows: Sanitation/Fleet Operations Manager (Grade 34), and Maintenance Operations Manager (Grade 34), increasing the General Fund budget by $9,000 in the Public Works salary line item, and the Sanitation Budget (Enterprise Fund) by $5,000 in the salary line item. Motion carried 4-1, with Commissioner Anderson opposed. Commissioner Hood confirmed that the salary range for Grade 34 is $44,400— $70,500 Rosemary Wilsen, asked about the workers who are doing all the work and not just the supervisors and managers. Commissioner Johnson said he plans to do something for the general employees later. Mayor Vandergrift requested they consider to amending the budget to delay the hiring of any new positions in the general fund (except the enterprise fund) by six months and to see how that will affect the budget. BREAK 8:00 p.m. — 8:15 p.m. Finance Director Horton said that delaying the hiring of all new positions in the General Fund for six months would create a reduction of $436,365, which would reduce the millage rate to 4.5290 mils. The new positions proposed to be cut are BUILDING: (1) Municipal Inspector II, POLICE: (3) Community Service Aides, (1) Communications Operator, FIRE: (1) ALS Training Officer, ENGINEERING: (1) GIS Analyst, (1) Part-time Administrative Aide, (1) Engineering Tech, FLEET MAINTENANCE: (1) Maintenance Worker I, FACILITIES MAINTENANCE: (1) Part-time Custodian changing to Full-time, LANDSCAPE OPERATIONS: (2) Maintenance Worker, (1) Maintenance Worker III, (1) Crew Chief, PARKS AND RECREATION: (2) Parks Service Worker II, (1) Recreation Aide/Bus Driver, (1) Part-time Administrative Aide, (2) Part- time Lifeguards, (2) Part-time Recreation Aides. Commissioner Hood said we are still a long way from the roll-back rate of 4.0285. Page 3 of 9 Ocoee City Commission Regular Meeting September 27, 2006 Commissioner Anderson noted that the City would have to fund these positions 100% next year, and we couldn't do that without raising the millage rate. There was discussion regarding the roll back rate, with Mayor Vandergrift describing how the roll back rate is calculated. Commissioner Anderson said that even though increased in property values raise taxes, it is a good indication that the community is becoming a more desirable place for people to live. Mayor Vandergrift asked the City Manager if he felt any of these jobs could not be delayed until mid-year. City Manager Frank said the two that come to mind are the Building Inspector and the Communications Operator. Commissioner Keller added that other positions that should not be delayed are the (2) CSA's and the ALS Training Officer, and the (4) Landscape Operations employees. There was discussion regarding the contract landscapers that are being used at the current time, and if they continue work out the City will not fill those three positions, but will instead move the money from the salary line items to the contractual line item and keep the contract landscapers. City Manager Frank said doing it this way has no impact on the overall budget, and allows them the flexibility to change, if needed. Mayor Vandergrift felt the ALS position should be delayed. Commissioner Hood suggested they vote on each position individually. Mayor Vandergrift moved to delay the hiring of all new positions for six months, reducing the budget by $436,365, which would reduce the millage rate to 4.5290 mils. Motion died for lack of second. Commissioner Keller moved to defer the hiring of the following new positions for six months BUILDING: (1) Municipal Inspector II, ENGINEERING: (1) GIS Analyst, (1) Part-time Administrative Aide, (1) Engineering Tech, FLEET MAINTENANCE: (1) Maintenance Worker I, FACILITIES MAINTENANCE: (1) Part-time Custodian changing to Full-time PARKS AND RECREATION: (2) Parks Service Worker II, (1) Recreation Aide/Bus Driver, (1) Part-time Administrative Aide, (2) Part-time Lifeguards, (2) Part-time Recreation Aides. Motion died for lack of second. The consensus of the Commission was to consider the list of new positions, one position at a time. Commissioner Keller, seconded by Commissioner Anderson moved to delay the hiring of the Municipal Inspector 2 position from the budget, at a reduction of $34,425 to the General Fund. Building Inspector Jones said he is concerned about the level of service they would be able to provide because this position is badly needed. He said they are running way over the industry standard of 12-15 inspections per day. City Manager Frank added that the HBA will challenge our fees if we are not delivering good services. Rosemary Wilsen said she does not understand why the Commission ignored the City Manager's request to keep this position in when he is the one whose expertise we are counting on. After the discussion, motion failed 0-5. Page 4 of 9 Ocoee City Commission Regular Meeting September 27, 2006 Commissioner Hood, seconded by Commissioner Keller moved to defer the hiring of the following new positions for six months FIRE: (1) ALS Training Officer, ENGINEERING: (1) GIS Analyst, (1) Part-time Administrative Aide, (1) Engineering Tech, FLEET MAINTENANCE: (1) Maintenance Worker I, FACILITIES MAINTENANCE: (1) Part-time Custodian changing to Full-time, PARKS AND RECREATION: (2) Parks Service Worker II, (1) Recreation Aide/Bus Driver, (1) Part-time Administrative Aide, (2) Part-time Lifeguards, (2) Part-time Recreation Aides, at a General Fund reduction of $245,850, and a new millage rate of 4.6241 mils. Motion carried 3-2, with Commissioner Keller and Commissioner Anderson opposed. This would leave the following new positions for the full twelve months as budgeted: BUILDING: (1) Municipal Inspector II, POLICE: (3) Community Service Aides, (1) Communications Operator, LANDSCAPE OPERATIONS: (2) Maintenance Worker, (1) Maintenance Worker III, (1) Crew Chief. Rosemary Wilsen asked why we are cutting the new bus driver position when we placed a new bus in the budget and if not hiring a custodian will affect the appearance of public buildings. City Manager Frank said we will have to continue the handling these job duties as we currently handle them and start the new employees at mid-year, which is better than completely cutting the positions from the budget. James Fleming, 511 Orange Avenue, said he feels when to hire the new employees should be at the discretion of the City Manager. Commissioner Keller, seconded by Commissioner Anderson moved to amend the amount budgeted for the Part-time Seasonal position of Lifeguard back to the full amount requested in the budget which is needed to cover personnel costs for the full swimming season, by placing $10,760 back in the budget after being removed in the previous motion, and creating a new millage rate of 4.6295 mils. Motion carried 5-0. Commissioner Hood said he feels most residents don't mind paying the extra $25 - $30 per year to have better roads, drainage, police and fire services, etc. Mayor Vandergrift said the way the millage rate is currently set up, if no roll back is done over the years, the residents will not be able to afford there own homes when they retire. There are many people on fixed incomes who cannot handle hire taxes. Commissioner Johnson said we have to get the economic growth going in this town so that we don't have to tax. Commissioner Hood said the only problem is that economic growth brings in people and adds to the road and traffic issues. He added that most cities our size have millage rates over 5 mils. We have been low for very long and we have to play catch up just to get some projects done that need to be done. Commissioner Anderson asked about the money needed to cover the merit and cola increases for employees. Finance Director Horton said it is $560,000. Commissioner Johnson asked about the discussion for the General Employees Pension Plan at the last meeting that he missed; did we budget for the multiplier to go up from 2.5% to 3%? Finance Director Horton said that was deferred until this meeting, we have 2.5 budgeted for the Page 5 of 9 Ocoee City Commission Regular Meeting September 27, 2006 merit and 2.5% budgeted for the COLA. The proposal was to drop the merit and COLA to 2% and use that 1% of payroll to help fund the increase in the pension multiplier. Commissioner Johnson said that we have signed Police and Fire Contracts, and this would be something that we can do for all of the general employees. Commissioner Anderson asked what the difference is in 2.5% and 3% multiplier. Human Resources Director Carnicella said it costs 4% of payroll to increase the multiplier from 2.5% to 3%, approximately $265,000. Commissioner Anderson asked what it would cost to go to 2.75% multiplier. Human Resources Director Carnicella said if the Commission passes this allowing us to go up to 3% multiplier; we will have to get the actuarial study and bring it back by ordinance. At that time, the Commission could decide which multiplier to go with since the will have the information for various options. Consensus of the Commission is that no amendment to the final budget is necessary to the current budget to increase the General Employee Pension Plan multiplier from the current 2.5%, to an amount up to 3%, which will be determined after the actuarial study and additional information is brought back to the Commission. Human Resources Director Carnicella said if we make this change after October 1, 2006, none of this will affect the current budget; it will be at least next year if not later because of the way the state required that we pay for the pension. We are trying to put some money away ahead of time so that it will be there when it affects the budget. Mayor Vandergrift asked if there are any other amendments to the budget. Commissioner Anderson said we have reduced the budget from the 4.8018 millage rate and he would like to put that money back into the contingency fund for projects. Mayor Vandergrift said he thinks it is time for us to look at our financing and see what we can bond to do some of these projects. Finance Director Horton said the last time we did a bond for water and sewer was in 2003, and now is the time to look at whether we want to do a refinancing or restructuring of the bond issue and possibly add additional projects for new money. We have been discussing that. She added that we looked at all of our outstanding bond issues during that time period and we did restructure most of them. Commissioner Anderson, seconded by Commissioner Johnson, moved to amend the budget by placing $345,025 back into the budget into a project contingency fund which would create a balanced budget based on the millage back to 4.8018. No vote was taken at this time, due to subsequent discussion. Kathy Storm, 418 Kayla Court, said you have spent hours picking and choosing and going over everything with a fine tooth comb and now you want to place it back in the budget for un- earmarked funds? She said that is the most ludicrous thing she has ever heard and it is irresponsible government. Commissioner Johnson said he doesn't completely disagree with the idea of needing to make sure we have money to cover projects, but we should look into bonding. He still feels if we focus on Economic Development we can create a lower tax base for our residents. Page 6 of 9 Ocoee City Commission Regular Meeting September 27, 2006 Commissioner Anderson said we need to re-pipe water lines on Geneva, Pine, up on the hill, etc. need to be done. If we go to bond it will take years. We may not have a list of projects this year, but there are many projects we are aware of that need to be done. He is not comfortable reducing the millage to the point of having no money for projects. He does not believe in bonding and handing off the debt to our children for twenty years. Eric Tieg, 196 Beacon Point Drive, said he has multiple rental properties, said he is concerned about the advertisement in the paper saying the City is increasing their budget by 37%. He is asking the Commission to be good stewards of their money. Finance Director Horton said that it is approximately 17% over the rolled back rate at this time. City Manager Frank said the 37% includes the $12,000,000 sale of land that is causing that amount to be high. Finance Director Horton said the $12,000,000 is 29% of the revenues, so the actual increase with that is 6.8% this year. That $12,000,000 has to be included in the advertised public hearing. Additionally, that was figured at the 5%millage rate. After the discussion, vote was taken on the motion on the floor: Motion failed 1-4, with Commissioner Keller, Commissioner Hood, Commissioner Johnson, and Mayor Vandergrift opposed. B. Announcement by Director of Finance of the recomputed proposed final millage rate and the percent by which the recomputed proposed millage rate exceeds the rolled-back rate. This percentage is the proposed final percentage increase in property taxes. City Attorney Rosenthal announced that the proposed millage rate is 4.6295 which represents a 14.92% increase in millage over the roll back rate of 4.0285 mils. City Attorney Rosenthal said the City Commission should now consider adopting the ordinance setting the final millage rate prior to voting on the budget. 1. Motion to adopt Ordinance No. 2006-016, setting final millage rate. a. Comments by Citizens— Rosemary Wilsen asked what we did with those positions because she is confused. Commissioner Keller explained that all new positions are being held until mid-year with the exception of: (1) Municipal Inspector II, (3) Community Service Aides, (1) Communications Operator, (4) Landscape positions b. Comments by Commissioners— Commissioner Hood said he would really like to leave more money in for projects but we do have a lot of budgeted projects such as paving, parks renovations, water and sewer issues, etc. He is happy with this budget and said they worked hard to bring the millage rate down some without sacrificing the services. Mayor Vandergrift said he will vote against the budget because there are other ways to do it, he is in favor of bonding. c. Vote on motion to adopt Ordinance No. 2006-016, setting the final millage rate. City Attorney Rosenthal read the title of the ordinance. Page 7 of 9 Ocoee City Commission Regular Meeting September 27, 2006 City Attorney Rosenthal announced that the name of the taxing authority is the City of Ocoee, Florida. The roll back millage rate is 4.0285. The percentage by which the proposed millage rate exceeds the roll back rate is 14.92 mils. The millage rate proposed by the ordinance is 4.6295. Commissioner Keller, seconded by Commission Anderson moved to adopt Ordinance No. 2006-016, setting the final millage rate at 4.6295 for FY 2006-07 Budget. Motion carried 4-1, with Mayor Vandergrift opposed. The ordinance as adopted carries the following title: ORDINANCE NO.2006-016 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A MILLAGE RATE FOR AD VALOREM TAXES FOR THE CITY OF OCOEE FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2006, AND ENDING SEPTEMBER 30, 2007, STATING THE PERCENTAGE, BY WHICH THE MILLAGE RATE EXCEEDS THE ROLLED-BACK RATE COMPUTED PURSUANT TO SECTION 200.065, FLORIDA STATUTES; PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 2. Motion to adopt Ordinance No. 2006-017, adopting final budget. a. Comments by Citizens—no further comments b. Comments by Commissioners — Mayor Vandergrift said they are a tax and spend commission and he will be voting NO because they did not come close to the roll back rate. Commissioner Anderson said he is a "pay as you go" Commissioner who does not believe in doing everything by bond and paying for it with interest over a twenty year period. He said he still thinks the money should be placed in a project contingency fund. c. Vote on motion to adopt Ordinance No. 2006-017, adopting the final budget. City Attorney Rosenthal read the title of the ordinance. Commissioner Keller, seconded by Commissioner Hood moved to adopt Ordinance 2006-017 approving a final budget for the FY 2006/07 beginning October 1, 2006, and ending September 20, 2007, and including all of the amendments made this evening. Motion carried 3-2, with Mayor Vandergrift and Commissioner Anderson opposed. The Ordinance as adopted carries the following title: ORDINANCE 2006-017 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2006, AND ENDING SEPTEMBER 30, 2007; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. Page 8 of 9 Ocoee City Commission Regular Meeting September 27,2006 C. Announcement by Mayor Vandergrift of end of budget public hearing. Mayor Vandergrift announced that the Public Hearing was concluded. III. ADJOURNMENT The meeting was adjourned at 10:35 p.m. APPROVED: Attest: City of Ocoee Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor Page 9 of 9