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09-09-15 Tentative Budget Public Hearing OCOEE CITY COMMISSION TENTATIVE BUDGET PUBLIC HEARING Ocoee Commission Chambers September 9,2015 AGENDA 6:00 P.M. I. CALL TO ORDER-Mayor Grogan A. Roll Call and Determination of Quorum B. Mayor's Announcement II. PUBLIC HEARING Mayor Grogan announced that 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 20.17% increase in millage over the rolled- back rate of 5.4091 mills. The budget is currently balanced at 5.75 mills which represents an increase of 6.30% over the rolled-back rate. A. Briefing by City Attorney to discuss the maximum millage rate which may be levied and the rates required to exceed such millage. City Manager Frank made this announcement. The preliminary millage rate set by the City Commission and contained in the TRIM Notices is 6_5 mills. The maximum millage rate which may be levied by the City by regular majority vote for the 2015-2016 fiscal year is 7.6082 mills, such maximum millage rate having been determined pursuant to Section 200.185(3)(a), Florida Statutes. The establishment of a millage rate between 7.6083 mills and 8.3690 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 8.3691 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 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, 2015 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. The proposed operating budgets for the City of Ocoee for FY 2016 total $65,317,770. The proposed General Fund budget is $44,448,740. 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 Ocoee City Commission Regular Meeting September 9, 2015 The commission approved a tentative millage rate for FY 2016 of 6.5000 mils. This rate is higher than the rolled back rate of 5.4091 and generates $2,062,530 more in revenues than the rolled back rate. Adoption of the 6.5 mils requires a majority vote by the commission. The original budget was balanced at 5.7500 mils. After the budget workshop, staff performed one additional comprehensive review to correct any unintended omissions and finalize estimated program costs. Changes made to the budget by staff after the workshop include: Adding a vehicle in Parks and Recreation $17,500 Changed a part-time position to full time in the Fire Department $25,410 Increased funding for the Health Center$25,000 EMB—Website benefits administration $7,440 Insurance reductions (Life, Disability, Dental, and Vision) ($24,300) Health Insurance Plan Changes ($25.00 contribution per paycheck for all employees and Elimination of HRA reimbursement ($281,715) After incorporating these changes there was a net decrease to the budget of($230,665)resulting in a recommended adjusted millage rate of 5.6258. Items identified by the commission or staff for consideration are itemized on the Wish list for discussion. 1. Comments by Citizens. Mayor Grogan asked if there were public comments at this time. There were none. 2. Comments by Commissioners. Discussion on budget and wish list items. Discussion occurred with regard to making the amendments to the tentative budget. Commissioner Johnson asked about clarification on the elimination of the HRA. City Manager Frank said the Affordable Health Care Act unintentionally changed the benefits of our plan and made it a much richer plan. If we eliminate the HRA we will get back to where the plan was intended to be when we decided to self-insure. HR Director Williford said that comes into play when an employee has a major incident or hospitalization; the Affordable Care Act allowed the costs (copays) for the doctors, prescriptions, etc. to count toward the HRA deductible. There had been discussion about the increased cost for individuals as opposed to changing the cost split of the plan such as going from a 90%-10% cost split to an 80%-20% cost split which would expose an employee to much higher costs for a serious health issue. Some medical facilities would require the 80% up front which would be cost prohibitive for most employees. Commissioner Johnson stated that coming up with the money upfront if we eliminated the HRA would be more than some employees could come up with; he asked the City Manager if there was a way keep lesser paid employees from being in that position. City Manager Frank noted that they looked into that and everyone must have the same plan; they cannot adjust the plan for different groups. There was discussion about usage of the clinic being encouraged to reduce out- of-pocket expenses; and they are reevaluation the generic medicines to see if we can add some more no cost medications. Commission Wilsen said she doesn't like the idea of completely getting rid of it; she asked if we could do something like cut it in half. After further discussion Page 2 of 6 Ocoee City Commission Regular Meeting September 9,2015 Mr. Williford clarified that less than half, on average, use the HRA. Commissioner Wilsen said she would like to give this some more considerations and vote on it at the final hearing. Commissioner Keller said he would also be in favor of cutting it in half rather than eliminating it. Finance Manager Brosonski stated the changes discussed, it would make the millage rate 5.6609 instead of 5.6258. Commissioner Johnson discussed the maintenance medicines and possibly finding cost savings there. Mr. Williford explained why they can provide generic drugs to the city for a much better cost savings than some of those generic drugs only being purchased for a few people. Commissioner Johnson asked if we have done a cost feasibility study for the clinic; they seem to have a lot of support staff employees compared to the number of doctors. Mayor Grogan asked when the Affordable Care Act changed to include copays. Mr. Williford said January 1, 2015. There was discussion with Public Works Director Krug about streets that need repaving. Mr. Krug felt that of the streets on the wish list, Wurst Road should be a priority due to the number of people that would be affected. He discussed the roads that have been included in this budget: Leslie Ann Lane, Lady Avenue (north portion), and Marshall Farms Road. Commissioner Johnson clarified that Public Works did a study on the roads that need repaving based on priority. Mr. Krug said that Hammocks, Orchard Parks, and Reflections are just there for informational as they are not a priority compared to other roads such as Ocoee Hills and Wurst Road. He said he really wanted to budget for Wurst Road, but could not balance the budget with the cost and that is why it is on the Wish List. Mr. Krug was asked how much it would cost to put sidewalks on Geneva St. by Tiger Minor Park, to which he advised when they looked at it before he believed it was $60,000. Commissioner Wilsen asked Finance Manager Brosonski if$250,000 was taken from the budget to bond the downtown study; add Ocoee Hills Road at $157,000, and Wurst Road at $306,000, and Jackson Street sidewalk by Tiger Minor Park for $11,500; Finance Manager Brosonski clarified that with staff recommendations for the Health Insurance left as they are, it would bring the millage to 5.7467. City Manager Frank said that the $250,000 for the downtown study we are about to award will be paid for out of the general fund right now, but we anticipate a bond issue or loan for 10 million dollars which would be logical to fund the study out of that money. Instead of 10 million for the project it would show as 9.75 million for the capital improvements project and $250,000 for the study. Mayor Grogan stated he didn't like the idea of borrowing money to pay for street paving because we have been committed to moving the downtown forward. City Manager Frank said we need to identify the project list to get the bond money. He said we could pay the $250,000 out of the general fund knowing that the money is coming in. He said the debt service we have in the budget now will get us around ten million dollars, and added that another 10th of a mil for debt service would get another 3.5 to 4 million. 6:47 PM Mayor Grogan called on Commission to vote on amendments to the tentative budget to be voted on individually. Commissioner Keller suggested that they keep the millage at the current 6.5 mills and wait for the final public hearing, so that they have time to consider all of the issues discussed tonight. Page 3 of 6 Ocoee City Commission Regular Meeting September 9,2015 3. Motions by Commissioners for amendments to the proposed tentative budget. Commissioner Keller, seconded by Commissioner Wilsen, moved to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2015, along with the changes proposed in the Budget Workshops, in the following manner: add $1,623,483.00 to the contingency fund. Motion carried 4-0. 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 that the proposed millage rate is now 6.5 and the percent by which the proposed millage rate exceeds the rolled-back rate is 20.17. 1. Read title to Ordinance regarding millage rate. City Attorney Cookson read the title of the ordinance. AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A MILLAGE RATE of 6.5% FOR AD VALOREM TAXES FOR THE CITY OF OCOEE FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2015, AND ENDING SEPTEMBER 30, 2016; PROVIDING FOR MILLAGE ADJUSTMENT; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR 20.17% INCREASE IN MILLAGE RATE OVER THE ROLLED-BACK RATE; PROVIDING FOR SEVERABILITY;PROVIDING AN EFFECTIVE DATE. 2. Motion to adopt tentative millage rate. a. Comments by Citizens.-none b. Comments by Commissioners.-none c. Vote on motion to adopt the tentative millage rate. Commissioner Keller, seconded by Commissioner Wilsen, moved that the City Commission adopt the tentative millage rate at 6.5 mills for the fiscal year beginning October 1, 2015, and ending September 30, 2016. Motion carried 4-0. 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 Page 4 of 6 Ocoee City Commission Regular Meeting September 9,2015 YEAR BEGINNING OCTOBER 1,2015,AND ENDING SEPTEMBER 30, 2016; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. 4. Motion to adopt the tentative budget. a. Comments by Citizens.-none b. Comments by Commissioners.- none c. Vote on motion to adopt the tentative budget. Commissioner Keller, seconded by Commissioner Jonson moved to adopt the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2014, along with the changes resulting from the Budget Workshops, and such tentative budget being for the fiscal year beginning October 1, 2015, and ending September 30, 2016. Motion carried 4-0. D. Motion to schedule the public hearing on September 21, 2015, at 6:00 p.m. in the Commission Chambers to adopt the final millage rate and budget. Mayor Grogan, seconded by Commissioner Keller, moved 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 City 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. Motion carried 4-0. E. Announcement by Mayor Grogan of end of hearing and date for final millage and final budget hearing. Mayor Grogan announced the end of hearing and date of final budget and final millage rate hearing will be held on September 21, 2015, at 6:00 p.m., at Ocoee City Hall. III.ADJOURNMENT The meeting was adjourned at 7:48 p.m. Page 5 of 6 Ocoee City Commission Regular Meeting September 9, 2015 APPROVED: Attest: City of Ocoee C\L- ,itzerizet Beth� ny, be , City Clerk Approved December 5, 2017 Under Agenda Item 1 ti Page 6 of 6