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09-26-12 Final Budget Hearing CITY OF OCOEE FINAL BUDGET PUBLIC HEARING Ocoee Commission Chambers September 26, 2012 MINUTES 6:00 P.M. I. CALL TO ORDER - Mayor Vandergrift A. Roll Call and Determination of Quorum j Mayor Vandergrift called the Final Budget Public hearing to order at 6:00 p.m. in the Commission Chambers of City Hall. City Clerk Eikenberry called roll and declared a quorum present. Roll Call: Commissioner Hood, Commissioner Wilsen, Mayor Vandergrift, Commissioner Johnson and Commissioner Keller. Also Present: City Attorney Cookson, City Manager Frank, City Clerk Eikenberry B. Announcement by Mayor 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 millage rate of 5.9315 mills which is less than the rolled -back rate of 6.1304 mills and thus represents no (0 %) increase in millage over the rolled -back rate. The adopted tentative millage rate is the maximum millage rate which may be adopted by the City Commission at the Final Budget Public Hearing tonight. FII. PUBLIC HEARING 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 advised that the ad valorem taxes are being assessed to provide funding for capital items, operational expenses, and salaries necessary to provide municipal services to the citizens and businesses of Ocoee. The Commission has adopted a tentative millage rate for Fiscal Year (FY) 2013 of 5.9315. The proposed budget for FY213 is balanced with a 5.9315 millage. This represents no increase in millage over the rolled -back rate. Finance Director Horton further advised that the wishlist has been revised to reflect the items agreed upon at the tentative hearing and additional changes proposed by the City Manager to lower the millage rate. Those items have been enclosed in the notebooks received from the City Clerk. Mayor Vandergrift announced that the residents may make comments at any time during this proceeding; he asked them to raise their hand if they wish to speak. 1. Comments by Citizens - None Ocoee City Commission Final Budget Hearing September 26, 2012 2. Comments by Commissioners. Commissioner Keller advised one of the things he requested to be added to the wishlist was a reduction to the contingency. At the last meeting they had given the HRDB Board $5,000 and he figured if they would like to keep the rate as it was prior than taking $5,000 out of contingency would get them back to the same rate as last year. City Manager Frank explained if they agree to approve the wishlist with Commissioner Keller's suggestion than they will be at 5.8460 mills which is the same as the current year's rate. 3. Motions by Commissioners for amendments to the proposed tentative budget. Commissioner Keller stated that in order to keep the millage rate the same as it was last year, he would like to take the $5000 out of contingency instead of adding it to the budget. The money would just be moved over and have no effect on the millage. rate. Commissioner Keller, seconded by Commissioner Hood, moved to amend the tentative budget by moving $5,000 from the contingency fund to the HRDB, having no effect on millage rate. Commissioner Wilsen inquired about the $131,000 savings that the City Manager was going to find to fund the pay raise; adding that she would like it on the record, as she has stated before, she does not feel they are in a position to be giving pay raises and would like for this to be on the record. The city employees are very valuable to the city but she would like to see the city keep jobs and feels they owe the citizens that aspect by being conservative with the budget. Mayor Pro Tem Hood said before they move on to another subject; they should take a vote on the amendment already on the floor that was made by Commissioner Keller. VOTE: Motion carried 5 - 0. Discussion continued on general e_mployee_payincreases. Discussion ensued regarding the three items that Savings on refunding_of Crown Point Note (35,000) the City Manager advised could reduce the budget -- — — — Savings on Police vehicles (40,000) and allow for the employee pay increases (2% at Savings on Resurfacing projects (56,000) mid -year) without affecting the millage rate. Commissioner Johnson said he would like it on the record that the commission has already given raises to the police and firefighters and it would not be fair if the general employees are the only ones not being approved for raises. Commissioner Keller said being that the City Manager found places to cut the budget rather than raising the overall budget, he has no problem giving the general employees raises. Commissioner Hood agreed it is not fair to give the police and fire raises and not general employees; he said he did not agree with it a few years ago when they did the same thing. It has nothing to do with unions, just with fairness. Commissioner Wilsen, seconded by Commissioner Hood, moved to amend the tentative budget by removing the $131,000 previously budgeted for 2% mid -year pay increase for General Employees. Page 2 of 5 Ocoee City Commission Final Budget Hearing September 26, 2012 Commissioner Wilsen asked for clarification on the Fire and Police Department raises they gave last year. City Manager Frank said he believes the Fire Department was given a 3% increase in this current year which they gave back to the city so that general employees could get raises; this year they were approved for a 2.5% increase, He further said the Police Department does not have a contract this year so they are still waiting the results for the Impasse Hearing but if that should pass then there will be no raise for the Police Department this year; however they have had raises the last 3 -4 years. Commissioner Wilsen shared that she is looking at the point where they need to stop giving raises and she realizes it is never going to be pleasant when they have to say "no." Commissioner Johnson inquired why she has to start with the general employees when that subject was not brought up at the union. He further said the general employees are still being penalized since their raises will not take place until mid -year. Commissioner Wilsen advised that she is going on the record and announcing that she will not be giving any pay raises in the future to any of the employees until the economy is better. Commissioner Hood shared that he feels they should have a cap based on salary pay but that is something the City Manager would have to consider and discuss with the directors. Commissioner Johnson briefly shared that almost all the surrounding cities gave raises to their employees; many of them were funded with money from their reserves. Commissioner Wilsen acknowledged that she read that in the paper as well. VOTE: After the discussion, the motion failed 1 -4 with Mayor Vandergrift, Commissioner Hood, Commissioner Johnson, and Commissioner Keller opposing. NEW MOTION: Commissioner Keller, seconded by Commissioner Hood, moved to amend the tentative budget by reducing the budget $131,000 due to savings found in refunding the Crown Point Note, Police vehicles, and Resurfacing Projects. This would allow that no effect be made to the millage rate. Motion carried 4 -1 with Commissioner Wilsen opposing. Comments by Citizens RECESS (to make copies of resident's documents) Greg Keethler, 2430 Orsota Circle, gave a PowerPoint presentation that showed the comparable communities (Apopka, Winter Garden, and Ocoee) and their median housing units, taxes levied per housing unit and capita. Ile further showed comparisons on millage rates over time for each of the communities and advised that Ocoee is one of the higher mill rates in Orange County. Mr. Keethler's recommendation to the Commission is to lower the tax rate at least 10% Discussion ensued regarding the validty of the roll -hack rate. Commissioner Keller briefly commented that you have to look at both the millage rate and roll -back rate to show a true comparison as to whether taxes are being reduced or increased. He gave a scenario explaining where the millage rate increases, in many instances the actual amount the residents were taxed would decrease. Mr. Keethler said what they really need to discuss is how they can bring their demand for revenue down regardless of the roll -back. Commissioner Keller said they still have to pay for what Page 3 of 5 Ocoee City Commission Final Budget Hearing September 26, 2012 they have. The city can reduce services (expenses) and have, in fact, done that in the past two years. He further said last year the commission stayed below the roll -back rate so they could reduce the number of taxes per thousand and this year they will be at the same rate as last year which is $28 less per thousand. He said with few exceptions, Ocoee residents saw a decrease in taxes last year and they will see a decrease again this year and that is not coming across at all in his presentation. The Mayor briefly spoke about the roll -back rate and advised that the city does not have full control of the roll -back rate; there is some control up at the county /state level. He advised that Apopka and Winter Garden both have a larger commercial district than Ocoee so they have a bigger tax, base. Mayor Vandergrift advised Mr. Keethler that at this point to put in a 10% reduction would be really difficult on a whole lot of people within the working community so he would like to work with him for next year. Commissioner Johnson stated that the cost of providing services has not gone down because of the poor economy. IIe stated that in fact, gas and other costs have gone way up. Mayor Vandergrift explained that we have dropped 4 million dollars out of our budget of the last four years. Mr. Keethler thanked the Mayor for allowing him to speak and said he will make sure to not come late in the game next time. He further does appreciate the consideration to look at what they can do for next year. RECESS 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. Finance Director stated the recomputed proposed millage rate is 5.8460 and this represents no increase in the roll -back rate. 1. Motion to adopt Ordinance No. 2012 -01 1, setting final millage rate. Commissioner Keller, seconded by Commissioner Johnson moved to adopt Ordinance No. 2012 -011 setting the final millage rate of 5.8460 as the millage rate for FY 2012 -13. City Attorney Cookson read the title of the final millage rate ordinance. City Attorney Cookson stated the name of the taxing authority is the City of Ocoee. The rolled back millage rate is 6.1304 mills. The percentage by which the proposed millage rate exceeds the rolled back rate is 0 percent. The millage rate proposed by the ordinance is 5.8460 mills. Mayor Vandergrift asked what percentage we are under the rolled back rate, to which the Finance Department stated - 4.86 percent decreases from the roll back rate. a. Comments by Citizens - None b. Comments by Commissioners - None c. Vote on motion to adopt Ordinance No. 2012 -011, setting the final millage rate. Motion carried 5 - 0. The Ordinance as adopted on final reading carries the following title: Page 4 of 5 Ocoee City Commission Final Budget Hearing September 26, 2012 ORDINANCE NO. 2012 -011 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, 2012, AND ENDING SEPTEMBER 30, 2013; PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR NO INCREASE IN MILLAGE RATE OVER THE ROLLED -BACK RATE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 2. Motion to adopt Ordinance No. 2012 -012, adopting final budget. Commissioner Wilsen, seconded by Commissioner Keller, moved to adopt Ordinance No. 2012 -012 adopting a final budget for the fiscal Year beginning October 1, 2012 and ending September 30, 2013. City Attorney Cookson read the title of the final budget ordinance. a. Comments by Citizens - None b. Comments by Commissioners - None c. Vote on notion to adopt Ordinance No. 2012 -012, adopting the final budget. Motion carried 5 - 0. The Ordinance as adopted on final reading carries the following title: ORDINANCE NO. 2012 -012 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2012, AND ENDING SEPTEMBER 30, 2013; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. C. Announcement by Mayor Vandergrift of end of budget public hearing. Mayor Vandergrift announced the end of the public hearing. Commissioner Keller thanked staff for all of the hard work. III. ADJOURNMENT The meeting adjourned at 7:02 p.m. APPROVED: Attest: City of Ocoee ■ ••illy { --- r __._. ikenberry, City Clerk ' S. Scott Vandergrift, Mayor Page 5 of 5