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HomeMy WebLinkAbout09-12-18 Minutes Tentative Budget Hearing OCOEE CITY COMMISSION TENTATIVE BUDGET PUBLIC HEARING Ocoee Commission Chambers September 12,2018 MINUTES 6:00 P.M. I. CALL TO ORDER A. Invocation and Pledge of Allegiance- 6:00 PM Mayor Johnson called the regular session to order at 6:00 p.m. in the Commission Chambers of City Hall. The invocation was led by Commissioner Oliver followed by the Pledge of Allegiance to the Flag led by Commissioner Grogan. B. Roll Call and Determination of Quorum City Clerk Sibbitt called roll and declared a quorum present. Present: Commissioner Grogan, Commissioner Wilsen, Mayor Johnson, Commissioner Firstner, Commissioner Oliver Also Present: City Manager Frank, City Attorney Cookson, City Clerk Sibbitt, Finance Director Roberts and Finance Senior Administrative Assistant Hall II. PUBLIC HEARING A. Mayor's Announcement—6:04 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 mills which represents a 17.2% increase in millage over the rolled- back rate of 5.3819 mills. Mayor Johnson shared that the City received some backlash in the media over the tentative millage rate, as they misreported that the City was raising the property taxes. He further explained that the City has always proposed the millage rate at a higher rate so that during the Public Hearings they can have the discussions to lower it. City staff has worked on the millage rate to balance it at 5.5 mills. B. Briefing by City Attorney - 6:05 PM City Attorney Cookson announced the preliminary millage rate set by the City Commission and contained in the TRIM Notice is 6.5 mills. The maximum millage rate, which may be levied by the City by regular majority vote for the 2018-2019 fiscal year, is 6.9367 mills, such maximum millage rate having been determined pursuant to Section 200.185(3)(a), Florida Statutes. The establishment of a millage rate between 6.9368 mills and 7.6309 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 7.6310 mills and 10.000 mills requires a unanimous vote of the City Commission. Additionally, any millage rate adopted above the preliminary millage rate of 6.5 1 Ocoee City Commission Tentative Budget Public Hearing September 12,2018 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. C. Briefing by Finance Director: Review of additions/deletions to the budget since 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. 6:06 PM Finance Director Roberts announced that following the budget workshop, staff performed a comprehensive review to correct any unintended errors/omissions and finalize estimated program costs. Changes made to the budget by staff after the workshop included $75,000 added to General Fund to cover lease payments for temporary space to house the Human Resources Department during construction of the New City Hall and a vehicle moved from Public Works Administration to Stormwater. The total appropriations for FY 2018/2019 are $83,078,884, which includes the General Fund, the Utilities Fund, the Stormwater Fund, the Water and Sewer Fund, the Solid Waste Fund, and the Impact Fee Funds. The total General Fund budget is $49,747,036 and is balanced at 5.5 mills which is 1 mill lower than the tentative millage rate approved by the City Commission. The tentative rate of 6.5 mills is 1.181 mills higher than the rolled-back rate. Ad valorem taxes are used to finance City operations to include providing quality services, maintaining City infrastructure through Capital Project, and funding salaries for City employees required to provide those services. 1. Comments by Citizens Mayor Johnson opened the floor for comments by citizens. He advised that 5 minutes are allowed for public comments. Chris Atkins, 606 Ridgefield Ave., addressed the City Commission on concerns he had with regards to the following: 1) Conducting department audits within the City, 2) Founders' Day event revenues and expenses breakdown, 3) Millage Rate comparisons of surrounding Cities, 4) Red Light Camera Revenue, and 3) Ad valorem fees. Questions raised by Mr. Adkins were addressed by the Commission and City staff. Joel Keller, 5021 Lighterwood Court, addressed the City Commission on his concern with regards to the traffic on Clarke Road and, if possible, placing a traffic light at Hackney Prairie and Clarke Road. The question raised by Mr. Keller was addressed by the City Manager and City staff. 2 Ocoee City Commission Tentative Budget Public Hearing September 12,2018 Jason Lietz, Public Information and Events Manager for CareerSource Central Florida, addressed the City Commission as he was asked by Commissioner Oliver to come and speak to them regarding their Summer Youth Internship Program. He briefly explained the purpose and benefits of their State and Federal funded program. Mayor Johnson asked questions regarding the program; and further, shared that he appreciates the information and advised Mr. Lietz to speak with the City Manager, Assistant City Manager, and Human Resources Director. 2. Comments by Commissioners Commissioner Wilsen shared she has had discussions with the City Manager regarding the condition of the some of the streets in the Downtown area, specifically the brick streets that are being used as a detour for the recent construction. She would like the residents to know that she has been informed that there is money in the budget and staff will be reviewing these streets after the budget is approved. Mayor Johnson recommended to Commissioner Wilsen that she meet with the residents in that area to determine if they would like to have the roads paved or if they would prefer new bricks. Commissioner Grogan inquired what the City Commission's stance is with the grant programs and if it was included in the budget. Finance Director Roberts answered that currently there is $12,000 for the Neighborhood Matching Grant (aka MVP) and $10,000 for Community Merit Awards. Mayor Johnson shared he would like to remove the $10,000 from the Community Merit Awards and allow City non-profit organizations who benefit the citizens of Ocoee come before the City Commission to request donations. He further voiced his concerns with the same organizations that are not within the City limits who are always receiving funds through this grant program. Further discussion ensued. City Manager Frank asked for clarification as it seems from their discussion they would like to move the funds to be used for incentives for businesses or something of that nature. Commissioner Grogan inquired if they could suspend both the grant programs. Commissioner Wilsen shared that she agrees with the suspension of the Community Grant Program but feels that the Neighborhood Matching Grant (aka MVP) is a program she would like to retain as that program helps the community beautify their neighborhood. She further added that they can add conditions to that program that allows that a subdivision apply every three years if they feel the same group is requesting it. Further discussion ensued. After a brief discussion, City Manager Frank shared that he can have City staff research the Neighborhood Matching Grant (aka MVP) to see if that program was approved by policy or resolution so that it can be updated to include a condition to allow submission every five years. At this time, he would recommend the City Commission move the funds to the correct budgetary line item and staff will bring forth the additional changes that they discussed. Discussion ensued with regards to making sure there are funds in the budget for the Ocoee Lion's Club, Ocoee Woman's Club, and Elk's Club. City Attorney Cookson briefly clarified that what is being discussed by the City Commission is to move the $10,000 from the Community Merit Awards to the Contingency Funds which does not amend the tentative budget millage rate. 3 Ocoee City Commission Tentative Budget Public Hearing September 12,2018 Motion: Move to remove $10,000 from the Community Merit Awards line item to be placed into the Contingency Fund; Moved by Commissioner Grogan, seconded by Commissioner Firstner. Motion carried 5-0. Commissioner Wilsen verified with the City Manager that there are no items that are being neglected within any of the departments as they anticipate reducing the millage rate to 5.5 mills. City Manager Frank shared that he is not aware of any such issues. Commissioner Firstner commented that if they do not have the money this year for traffic studies at certain intersections than his recommendation is that they consider it next year as the City is experiencing a lot of traffic issues due to the growth the City and surrounding Cities are experiencing. Commissioner Oliver shared that he disagrees with Commissioner Firstner and has no additional comments. 3. Motions by Commissioners for amendments to the proposed tentative budget No amendments were made to the proposed tentative budget. D. 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 Director Roberts announced that since there were no amendments to the proposed tentative budget than the millage rate does not need to be recomputed. She further shared that the budget is balanced at 5.5 mills and the proposed tentative millage rate is 6_5 mills which represents a 17.2% increase over the rolled-back rate. 1. Comments by Citizens Mayor Johnson opened the floor for comments by citizens. Chris Atkins, 606 Ridgefield Ave., addressed the City Commission and inquired if the increase of traffic may also have to do with the detours occurring with the Downtown construction. William Maxwell, 558 Woodson Ave., addressed the City Commission as he did not hear any mention of allocation of funds to the Human Relations Diversity Board. 2. Comments by Commissioners None E. Motion to Adopt the Tentative Millage Rate - 6:59 PM City Attorney Cookson read the title of the ordinance. 4 Ocoee City Commission Tentative Budget Public Hearing September 12,2018 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A TENTATIVE MILLAGE RATE of 6.5 MILLS FOR AD VALOREM TAXES FOR THE CITY OF OCOEE FOR THE FISCAL YEAR BEGINNING OCTOBER 1,2018,AND ENDING SEPTEMBER 30, 2019; PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR 17.2% INCREASE IN MILLAGE RATE OVER THE ROLLED-BACK RATE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. Motion: Move that the City Commission adopt the tentative millage rate at 6.5 mills for the fiscal year beginning October 1, 2018, and ending September 30, 2019; Moved by Commissioner Grogan, seconded by Commissioner Wilsen. Discussion ensued with regards to the 6.5 mills as the budget was balanced at 5.5 mills. The Mayor expressed his concern as he felt that citizens do not understand when they adopt a higher tentative rate. After a brief discussion; Motion carried 4-1 with Mayor Johnson opposing. F. Motion to Adopt the Tentative Budget - 7:03 PM 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 1,2018,AND ENDING SEPTEMBER 30, 2019; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. City Manager Frank interjected that it is past practice that when the City Commission is balancing the budget at a lower millage rate than the proposed tentative millage rate; they typically take the difference of that one mill and place it in the Contingency Fund account to balance the budget. Finance Director Roberts advised that it would be $1,997,398 that would need to be put into Contingency to balance the budget. Motion: Move that the City Commission adopt the tentative budget that balances at 5.5 mills with $1,997,398 to be added to the Contingency Fund account, such tentative budget being for the fiscal year beginning October 1, 2018, and ending September 30, 2019; Moved by Commissioner Wilsen, seconded by Commissioner Grogan. Motion carried 5-0. Mayor Johnson announced the public hearing to consider the final millage rate and final budget is scheduled for Wednesday, September 26, 2018, at 6:00 p.m. to be held in the City Hall Commission Chambers. The hearing has been advertised in accordance with the provisions of Section 200.065, Florida Statutes, and Section C-37 of Article VI of the Ocoee City Charter. The appropriate Ordinances necessary to adopt the final millage rate and final budget will be prepared by City staff, and all other action necessary to comply with the requirements of Section 200.065, Florida Statutes, will be undertaken. 5 Ocoee City Commission Tentative Budget Public Hearing September 12,2018 Mayor Johnson encouraged those in attendance at this meeting to please share with citizens that the City Commission is intending to lower the millage rate to 5.5 mills and what was voted on this evening is just a tentative rate. n k k �r 4 �i 3'vi a (( akka t The meeting was adjourned at 7:06 p.m. APPROVED: Attest: City of Ocoee jiv6aL- AV Melanie Sibbitt, City Clerk Rusty Johnstn ►� 6