08-11-14 - Budget Workshop Budget Workshop
OCOEE CITY COMMISSION
Ocoee Commission Chambers
150 North Lakeshore Drive, Ocoee, FL
August 11, 2014 MINUTES 6:00 p.m.
I. CALL TO ORDER
ROLL CALL: Commissioner Grogan, Commissioner Wilsen, Mayor Vandergrift,
Commissioner Johnson, Commissioner Keller
Mayor Vandergrift called the meeting to order and said we will have a briefing from the City
Manager and Finance Director.
II. Introduction — City Manager Frank
City Manager Frank said that everything is encompassed within the presentation, so he will
defer to Finance Director Horton to give the Budget Overview.
II. FY13 /14 Budget Overview - Finance Director Horton
Finance Director Horton said the economy continues to show signs of improvement for Ocoee.
Ocoee home values increased more than 10% over the past year and are predicted to rise by more
than 5% within the next year. Ocoee's gross taxable value for 2014 -2015 is just over $1.8
billion. This is an increase in taxable value of 8.68% from current year compared to the 1.2% for
last year.
Currently, Zillow lists the median value for a home in Ocoee at $173,800. The proposed general
fund budget is balanced at 6.50 mils with 5.7855 mils in expenditures and an additional .7145
mils in contingency.
The proposed budget for FY2015 is $55,422,500. This is a 2.68% decrease from the current year
budget.
The General Fund proposed budget for FY2015 is $36,751,670. Ad valorem taxes represent the
largest category of revenues at 31% with intergovernmental revenues next at 27% which includes
revenue sharing, communications taxes, half cent sales taxes and local option gas taxes.
Expenditure categories for the General Fund budget varied minimally from the current year.
Personnel costs represent 62% and make up the largest component of the expenditure budget.
A total of three positions were added in the proposed budget — two in Parks and one in Support
Services for IT and technical support. The proposed budget includes a 2% increase for all non-
union employees and an average of 2.4% increase for employees of the police officers and
corporals union.
Pension adjustments are proposed that would result in a 7% decrease for the city's general
employee pension contribution for next year.
Funding for major operational and capital items include:
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City Commission Budget Workshop
Computer equipment, an IT operations and data backup center, consultant review of amendments
to the land development code, a records management system for the police department and
replacement of air packs for the fire department.
Vehicles and equipment included in the proposed budget are mowers, 6 pickup trucks. Chipper
and side load truck for Solid Waste, 10 vehicles for police, a sprayer for athletic fields (new),
Storage building for the Park's department equipment, two dump trucks for utilities and an
electric vehicle. A couple of charging stations for electric vehicles at city facilities is also
included in the proposed budget.
Other improvements include:
Adjustments to the Entrance at the police department to meet current ADA requirements and
creating an interior office suite for CID
Contracting out the fabrication of new street signs with the logo and color
Restriping on several roadways
Major Paving improvements include two areas on Bluford- Geneva to Maine and Columbus to
Geneva. The Ridgefield Avenue paving improvements will include repairing speed tables.
Ocoee Hills Road, Olympus Drive and Adriatic Drive are also slated for paving improvements
Improvements to the pool area at the Beech Center and site improvements at the Montgomery
Road Park are proposed in the budget.
Major projects proposed in the 2015 Stormwater budget are:
Wekiva Basin improvements
Replacing the Flewelling storm drainage
Constructing a pond at the public works site to provide compensating storage for the Ocoee
Lakeshore Center
Major Utility Fund projects include:
Improvements to Well #3 at the South Water Plant
Annual Water Plant and Wastewater Plant Repairs
Major Water Line Replacements and Upgrades
Reclaimed Water retrofit in Lake Olympia subdivision
The millage rate is used to compute the amount of ad valorem taxes and has a direct impact on
the general fund. The maximum millage rate that can be adopted with a majority vote is 7.7496
mils. The proposed budget is balanced at 6.5 mils. The difference between the current millage
rate of 5.7855 and the 6.5 mils tentatively proposed by the commission ($1,260,472) is in
contingency.
Ms. Horton displayed a graph comparing the amount of ad valorem taxes in the current year and
the proposed year. Changes are based on no increase proposed taxable value of the home from
the prior year. A home with a $100,000 value and a homestead exemption of $50,000 would see
an increase of about $3.00 per month. A home with a $200,000 value and a homestead exemption
of $50,000 would see an increase of about $9.00 per month.
City Manager Frank clarified that the adopted tentative millage rate of 6.5 is what the budget is
balanced at only because it includes 1.2 million in the contingency fund (equivalent to .7145
mils). It otherwise is balances at the 5.7855 mils, but the 6.5 millage rate can be adopted with
the additional 1.2 million being spent as the commission desires. There is no wish list this year.
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City Commission Budget Workshop
Previous discussions were directed toward using additional funds for downtown construction
projects; if the commission chooses to go with the higher millage rate there would be 1.2 million
dollars for those projects.
V. Discussion
Commissioner Grogan said he would like to review the budget department by department
rather than line by line. It would go quicker and be more organized because each commissioner
should have reviewed the budget and know what questions they want to ask. Commissioner
Johnson said he thinks we should keep the questions to major items, not $500 lawn mowers.
Mayor Vandergrift asked if we should set a limit for asking questions only on items over;
Commissioner Johnson said it should be limited to items over $10,000. Mayor Vandergrift
said he was asking questions about pages he marked up; they can do whatever they want to.
There was discussion regarding what the budget is balanced; Finance Director Horton confirmed
that expenditures are balanced at 5.7855 mils, with an additional 1.2 million placed in the
contingency fund and bringing the total budget to 6.5 mils.
ITEM BY ITEM:
3 -5 Windermere Fire Protection ($400,000) - Commissioner Wilsen asked how we came up with
that figure. City Manager Frank stated that is a conservative figure based on per capita and
land area, and other factors. It may be closer to $430,000 or $440,000.
3 -1 Intergovernmental Revenue- Mayor Vandergrift asked why it went up a million dollars.
Finance Director Horton said it is increasing a half million and most of that is the increases in
Windermere Fire Protection, half cent sales tax, and 6 cent gas tax have all gone up for next year.
3 -7 Miscellaneous Revenue- Mayor Vandergrift asked why it has gone down $500,000 since the
FY2013 -14 budget. Ms. Horton stated there was $600,000 budgeted for the sale of the land and
that did not happen and will not be occurring next year. (Acct 364200)
3 -2 Franchise Taxes. Mayor Vandergrift noted the franchise taxes should be from Duke
Energy.
3 -2 Local Government Financial Information Handbook- Ms. Horton said it goes out to all
municipalities and shows what the intergovernmental revenues are projected to be and the
formulas used to compute it.
Mayor Vandergrift spoke about having a utilities commission and about rules and procedures
for the Enterprise Funds.
Commissioner Keller asked about the telephone line items; some departments had large jumps
and others stayed the same or went down. Support Services Director said we are getting a new
internet -based phone system; the costs will be spread out more evenly among the city hall and
remote locations, and the overall cost will be lower than what we have now.
3 -21 Election Costs. Commissioner Keller inquired about the $67,000 for elections. City Clerk
Eikenberry said they did not budget for worst case scenario this year (two elections and two run-
off elections) since it has not happened in a long time. This year budgeted for the two district
elections and one run -off election. There was no election last year; therefore the election budget
caused an overall increase in the City Clerk Budget.
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City Commission Budget Workshop
3 -7 Mayor Vandergrift inquired if we have made $90,000 in Timber Sales. Finance Director
Horton confirmed we have made $72,825 and we have $30,000 in revenue still budgeted for this
year. There is no anticipated revenue for next year.
3 -7 Mayor Vandergrift noted Surplus Equipment revenue is less than projected. Finance
Manager Brosonski said we have had one auction this year and are expected to have a second
one.
HRDB Board Member Maxwell explained plans of the board and discussed money that would
be needed for the budget. Mr. Maxwell discussed ideas that he included in a letter to the
Commission. He discussed the concept of an International Cultural Exposition (ICE) event, and
how it may offset negative reputation of Ocoee that is found on the internet. He asked if the
Commission wants the HRDB to pursue this event and if so, are they willing to expend the
funds. Commissioner Keller asked the costs. Mr. Maxwell noted there would be 5 functional
committees: Plans and Resources Committee, Media Marketing and Outreach Committee,
Culinary Cuisine Committee, Decoration Committee, Art Pageantry and Entertainment
Committee. He felt that each committee would require $20,000 - $25,000 to have a first class
event. They are looking at a timeframe in the spring. Mayor Vandergrift asked if the HRDB
Board could write an offset to the negative image portrayed on the internet. Mr. Maxwell said the
current articles are written from a Museum Curator in Florida Historical Museum in Tallahassee,
the University of Florida, etc. Commissioner Johnson said that part of our history can be found
if you go and searching for it, but it is not the way people think about us today. He added that
have done many events that offset the history from 1920's. Commissioner Wilsen said that what
they are doing with developing the city is more important; events such as ICE will play well as a
part of that. We have to convince residents that spending tax money on such events is not easy.
Mr. Maxwell said he just needs direction to move forward or not; there are many people who
have put a lot of time into this. Commissioner Johnson asked what Winter Garden is spending
on their upcoming cultural event. Mr. Maxwell did not know. Mayor Vandergrift stated that he
feels it is a good idea to have a multi - cultural event because Ocoee is a multi - cultural
community.
3 -16 Discussion how phone charges are going up in some departments and down in other.
3 -71 Commissioner Keller asked about the budget last year for three fire trucks and asked if it
carried over to this year. Ms. Brosonski explained in the current budget there is approximately
$150,000 for the acquisition of three fire trucks; we plan to acquire them in the near future which
is why the principal and interest is allocated in next year's budget. There was discussion on the
age of the current fire trucks. Interim Chief Hoover noted that we have one truck that needs
replacing this year and two others in the next few years.
3 -25 Mayor Vandergrift asked why the Retirement Contribution went from $136,000 to $86,000.
Ms. Horton advised that is part of the 7% decrease that will be reflected throughout the
departments.
3 -25 Contractual Services
3 -25 Mayor Vandergrift noted the increase in travel expenses in the Finance Department this
year.
3 -28 Personnel. The decrease of $25,000 for Education Incentive was explained by HR Director
Williford saying they felt the education reimbursement was better if it were split between the
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City Commission Budget Workshop
various departments. Commissioner Johnson said he thinks it is better if it is budgeted and
monitored by the individual departments.
3 -29 HR Director Williford explained the purpose and duties of the Safety Committee. City
Manager Frank also noted that we save money on insurance because we have this program. He
explained that the item went up to $2000 for additional training for the members.
3 -33 (Legal) Line Item 130 CRA Fund from 15,000 to 0. Finance Director Horton said we
don't have the amount for next year yet, that will happen after we adopt the city budget.
3 -37 Increase in professional services. Planner Rumer explained that it is due to mandates in
the EAR -based Amendments.
3 -42 Mayor Vandergrift asked about the Contingency Fund. Finance Director Horton
explained that is left there as the difference between the millage rates of 5.78 and 6.5.
Commissioner Keller asked about the 5 year cemetery project; he noted that he would like to
get the $50,000 added to the wish list since it is not included in the budget as part of the 5 year
project. There was further discussion as to why the columbarium niches have not been selling
right now. City Clerk Eikenberry said it is quite a bit higher in cost than for residents who own
lots to use the lots for two urn vaults. They agreed that over time as less lots are available the
columbarium would sell as it is still much less expensive that private cemeteries.
There was discussion about adding items to the wish list and deciding what to do to keep the
taxes down. The fire fee was briefly discussed. Commissioner Johnson mentioned that the
MVP grant money is something that could be used for other things such as the event Mr.
Maxwell discussed earlier. The same HOAs keep collecting money from the city and they are
able to get it from their residents. That $12,000 could go to the ICE event. There was discussion
regarding the Community Grant Awards and the $10,000 budgeted for that. Mayor Vandergrift
explained the MVP Awards idea was taken from Orlando to help oversee improvements to
neighborhoods. There was also discussion about groups that we have given grants to over the
years such as sports teams, etc. Commissioner Wilsen said she wanted to stop random groups
from coming to the dais and asking for money, that is why we have grant programs. She is not
opposed to giving them up for one year and using the money for something else.
Commissioner Johnson asked the City Manager if the Fire Assessment Fee money is already
figured in the budget. City Manager Frank said that having the Fire Assessment Fee frees up
money in the general fund to spend on additional capital projects. We would not earmark Fire
Fees for general fund projects; those dollars are specifically used for allowable Fire Department
expenses. There was discussion regarding using the additional $600,000 in general funds to bond
some capital projects.
3 -64 Mayor Vandergrift asked about Building Maintenance Costs under line item 4602,
specifically the Maguire House. Public Works Director Krug explained $5000 is the annual cost
to maintain that building. There was discussion about the new interest in renting the Maguire
House; Parks and Recreation Director Hayes stated they are seeing more interest as time goes on.
Commissioner Grogan confirmed that Lakeshore Center rentals are up to about $100,000 so far.
3 -66 Records Management System and CAD Capital Outlay $180,000. Chief Brown explained
that Ocoee and Apopka are looking into new managements systems since they are under contract
for dispatch services, but the city needs to maintain their own system separate from Apopka.
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City Commission Budget Workshop
3 -67 Health Insurance under the Police Department increased from $14,000 to $35,000. Chief
Brown noted that was for the VEBA Insurance (voluntary employment benefit). City Manager
Frank said that in the past the Union negotiated to take a portion their salary increase and put it
into the VEBA account instead. Commissioner Johnson said one way it can be used is if a
police officer retires at 60 the money can help fund insurance until age 65. HR Director
Williford said it is also meant to encourage employees to get their annual physicals each year
because that is a requirement of VEBA. There was discussion regarding use of the clinic for
retirees also.
3 -71 Mayor Vandergrift clarified the expense for Thermal Imaging Camera is just to replace
older equipment, as well as the Lifepack monitors. Mayor Vandergrift asked that the lease
terms be listed on those items.
3 -72 Overtime salaries. Acting Chief Hoover said they are working with the Collective
Bargaining to further reduce the overtime; it has been reduced by $50,000 for next year.
Mayor Vandergrift asked if we could get names of top staff people in the department
organizational charts.
3 -81 Contractual Services in the Cemetery; Parks and Recreation Director Hayes confirmed that
is for the mowing.
3 -84 Paving Improvements — Commissioner Wilsen asked if Ridgefield included traffic calming
devices. Public Works Director Krug said they are trying to get those done in this year's
budget, we don't have money budgeted for any next year. Commissioner Wilsen said she
would like to see some money added to the wish list. Commissioner Johnson said he has asked
about Ohio Street for five years; to which Mr. Krug said it is slated to be done this year. There
was discussion about Floral Street as well. There was discussion about the number of stumps
that need to be ground for paving projects and it will be more cost effective to have our own
stump grinder. There was discussion regarding the asphalt truck and the wood chipper also.
3 -85 Contractual Services. Public Works Director Krug stated most of that is for Valley Crest
to maintain landscaping, tree removal, and day labor. This is different from the right of way
maintenance we do in- house. There was discussion about some needed tree replacements.
3 -101 Capital Outlay Parks Improvements. Parks and Recreation Department Director Hayes
stated that this is for new marcite for the pool and repairs to the expansion joints and fence
around the pool. Commissioner Johnson asked about seal- coating and striping the parking lot
around the Lakeshore Center. Public Works Director Krug said the quote was $25,000 because
it required a lot of milling and ADA ramps. They agreed something needed to be done, so Mr.
Krug will bring back an estimate for the wish list. There was further discussion about tearing
down the little house on the property. Commissioner Johnson said it would be nice to have signs
stating `this is your tax dollars at work.'
Commissioner Johnson discussed the 33 acre parcel that we purchased and we need to discuss
what we are doing with that; we need to think about putting money into a park.
Commissioner Keller asked if we are going to do anything with the pig trail. Commissioner
Grogan said the school board would like for us to fix it at a cost of $100,000. That is not going
to happen right now but the subject will come up again.
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City Commission Budget Workshop
Mayor Vandergrift asked where the security camera will be monitored. Mr. Hayes said they
are looking at systems that can be views through the internet and the police will probably
monitor it.
Commissioner Grogan noted Section 7 shows capital programs, all of those things that we have
been discussing that need to be done in the near future. That list is a good starting point for
determining priorities. Commissioner Johnson said turning the Roger property into ball fields
would be a good way to start an income source. Commissioner Grogan said that is a 7.4
million dollar project. Commissioner Johnson said he believes softball fields can be done for
much less, and we should consider a complex that would include more Pop Warner fields, tennis
courts, skate board parks, etc.
Mayor Vandergrift said we will adjourn for tonight because it is nearing 8:00 p.m. He infouned
the commissioners to get with the city manager and add anything they would like to the wish list,
with costs included if possible.
IV. ADJOURNMENT
Meeting adjourned at 8:00 p.m.
APPROVED:
Attest: City of Ocoee
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Bet Eikenberry, City Cler
S. Scott Vandergrift, Mayor