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09-21-15 Final Budget Public Hearing CITY OF OCOEE FINAL BUDGET PUBLIC HEARING Ocoee Commission Chambers September 21,2015 MINUTES 6:00 P.M. I. CALL TO ORDER-Mayor Grogan A. Roll Call and Determination of Quorum Mayor Grogan called the regular session to order at 7:15 p.m. in the Commission Chambers of City Hall. Commissioner Keller gave the invocation, followed by the Pledge of Allegiance to the Flag, led by Commissioner Johnson. City Clerk Eikenberry called roll and declared a quorum present. Roll Call: Mayor Grogan, Commissioner Wilsen, Commissioner Johnson, and Commissioner Keller. B. Announcement by Mayor Grogan 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 6.50 mills which exceeds the rolled-back rate of 5.4091 mils and thus represents a 20.17 % 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. II. 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. The proposed operating budgets for the City of Ocoee for FY 2016 total $66,684,725. The (` proposed General Fund budget is $45,815,695. Ad Valorem taxes are being assessed to provide funding for: operational expenses, capital purchases, debt service payments, and salaries necessary to provide municipal services to the citizens and businesses of Ocoee. 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 represents an increase in the millage over the rolled back rate of 20.17%. The tentative millage rate generates about $2,062,530 more in revenues than the rolled back rate. Of this amount $1,623,483 is un-designated and has been placed in the contingency account. Adoption of the 6.5 mils requires a majority vote by the commission. Items that were discussed but no action taken during the tentative budget hearing are itemized on the Wish List for further consideration. 1. Comments by Citizens. None 2. Comments by Commissioners. Commissioner Keller asked if this would be a good time to remove the money placed in the contingency fund. City Attorney Cookson stated that it would probably be better to deal the amendments first and then take out the balance. Final Budget Public Hearing September 21,2015 Mayor Grogan opened for discussion, the following items that had been discussed for change at the Budget workshops and Tentative Public Hearing: Proposed Balanced Budget Millage Rate presented at Workshop 5.7500 AMENDMENTS Staff recommended changes to Budget: New vehicle for Parks and Recreation 17,500 Change Admin.Assistant from PT to FT in Fire Department 25,410 Increased Funding for Health Center 25,000 EMB-website benefits administration 7,440 Insurance reductions(Life, Disability, Dental, and Vision) (24,300) Decreased by same Increase Contingency 1,623,183 amount Health Insurance Plan Changes ($25.00 contribution per paycheck for all employees-$186,000 total all funds $151,440 general fund and Elimination of HRA Decreased credit amt. reimbursement-$160,000 total all funds$130,275 general fund) (281,715) (216,575) Net Changes to Budget 1,392,818 0.7500 Recommended Adjusted Millage Rate 6.5000 Finance Director Horton clarified that the adopted budget that was approved at the Tentative Budget Hearing includes all of the staff recommendations, plus the $1,643,483 that was placed in contingency. It would probably be easier to remove that money from contingency first and then place any other items in one at a time so that we can get a real calculation of where we are. B. Motions by Commissioners for amendments to the proposed tentative budget. Commissioner Keller, seconded by Commissioner Wilsen, moved to amend the tentative budget to remove the $1,643,483 from the contingency fund. Motion carried 4-0. Commissioner Wilsen said that she is okay with the $25.00 contribution from the employees, but she is not in favor of getting rid of the HRA; she would rather go with reducing it by half City Manager Frank clarified that would reduce the credit shown ($281,715) by $65,137. Finance Manager Brosonski stated that would change the reduction to $216,575. Mayor Grogan felt that we should either increase the cost of the benefit or reduce the HRA, but not do both. Discussion followed regarding how to vote on the health insurance issues. City Attorney Cookson said they can vote on it all at once and then decide what the credit number will be. Commissioner Johnson asked what the amount would be if employees had to pay $35.00 per month and leave the HRA alone. Commissioner Wilsen and Keller agreed that they would like to stay on $25.00 per pay period and reduce the HRA by half the current amount. Commissioner Johnson consented. Commissioner Wilsen, seconded by Commissioner Johnson, moved to amend the tentative budget reducing the cost of health insurance in the amount of $216,575 by increasing the employee contribution by $25.00 per paycheck for all employees and reducing the current HRA by half. Motion carried 3-1, with Mayor Grogan opposed. Page 2 of 7 Final Budget Public Hearing September 21, 2015 Finance Manager Brosonski said the millage rate is now 5.6609. Mayor Grogan said we will now review the discussion items that have not yet been added to the budget; they will individually discuss the following line items with comments from the Commission and the public: AMENDMENTS Downtown Development Plan-include as part of Bond Issue (250,000) (250,000) Bond Issue- Increase bonding amount(to$14 million total) 185,710 185,710 Existing Gated Communities Emergency Access(residential) 65,000 65,000 Federal Lobbyist 30,000 30,000 Street Lighting Johio Shores Rd (Commissioner Keller request) 10,000 10,000 Jackson St sidewalk(5') (S. side of road connecting to Tiger Minor Park) (Commissioner Wilsen request) 11,500 Add back in 1/2 of HRA reimbursement amount-$80,000 total for all funds $65,140 general fund 65,140 previous vote Wurst Rd resurfacing 306,000 Ocoee Hills/Brentwood subdivision resurfacing 157,000 157,000 Economic Development Director(salary, benefits, and expenses)(Total Cost $177,840) (60% GF- 106,705,40% CRA-71,135) 106,705 53,355 1.2% increase at 10/1/15 210,180 210,180 Reduce midyear from 2%to 1.2% (70,060) (70,060) Hammocks subdivision resurfacing (Commissioner Wilsen request) 160,000 Orchard Park subdivision resurfacing 149,000 Reflections subdivision resurfacing (Commissioner Wilsen request) 146,000 Computer Software for Parks and Recreation 60,000 Retention Pond/Baffle Box system Lake Johio(Commissioner Keller request) 250,000 1%additional increase at midyear(Change from 2%to 3%) 87,575 Televising Budget Hearings(9/2016) 350 350 Televising Women's Club Political Forum (Commissioner Wilsen) (10/2015) 175 (2 forums)350 1.5% increase at 10/1/15 262,725 Reduce midyear from 2%to 1.5% (43,788) Discussion on the Downtown Development Plan Commissioner Keller, seconded by Commissioner Wilsen, moved to amend the tentative budget to include the downtown development plan as part of the bond issue, for a reduction to the budget of$250,000. Motion carried 4-0 Discussion on the Bond Issue Commissioner Keller said for the small amount this will cost this is something we need to do for the downtown development strategic plan. It will give us some leverage in Tallahassee to obtain matching funds. Commissioner Johnson said we have been working toward this direction for a long time and we need to get it started, as well as looking at the sewer and water design for downtown. Mayor Grogan said for transparency, this is a .1% millage increase and will go to infrastructure improvements in the downtown area. No comments or questions from the public. Commissioner Keller, seconded by Commissioner Wilsen, moved to amend the tentative budget to increase the bonding amount to $14,000,000, at a cost of $187,510. Motion carried 4-0. Page3of7 • Final Budget Public Hearing September 21,2015 Discussion regarding Existing Gated Communities Emergency Access (residential) Mayor Grogan said the PD is using it on their gates and it is working effectively and Brookstone also has it. Commissioner Keller said he feels we have a responsibility to help the HOAs make this change that we are mandating. Mayor Grogan said it is a safety factor for police as well as the communities. Commissioner Johnson, seconded by Commissioner Keller, moved to amend the tentative budget to include funding for the emergency access gates at a cost of $65,000. Motion carried 3-1 with Commissioner Wilsen opposed. Discussion Federal Lobbyist Commissioner Wilsen, seconded by Commissioner, moved to amend the tentative budget to approve the contract with the Federal Lobbyist at $30,000 with a one-year contract with an option to renew for two year options at a maximum of three years. Motion carried 4-0. Commissioner Keller asked what the millage rate is at this point. Finance Manager Brosonski said it is 5.6774. Discussion ensued regarding bundling some "wish list" items into a group that they are all in favor of and voting on them, and leaving the remainder. At this point, if we approve every item we will be at a millage rate of 6.68 mills. Discussion on Street Lighting Johio Shores Rd Commissioner Keller, seconded by Commissioner Wilsen, moved to amend the tentative budget to add the street lighting at Johio Shores in the amount of $10,000. Motion carried 4-0. Commissioner Wilsen, seconded by Commissioner Johnson, moved to change the budget process and bundle items that they wish to move forward and leave the others without discussion. Motion carried 4-0. Commissioner Wilsen, seconded by Commissioner Johnson, moved to change the budget to include the following items in a total amount of: Economic Development Director, for a half year$53,355 Ocoee Hills/Brentwood subdivision resurfacing$157,000 1.2 %salary increase at 10/1/15$210,180 (first pay period in October) Reduce midyear salary increase from 2% to 1.2%$(70,060) Televising Women's Club Political Forum (10/2015) $175 No vote taken at this time due to discussion and amendment. No comments or questions from the public. Commissioner Johnson, seconded by Commissioner Keller, moved to amend the motion add funding to televise a debate hosted by the West Orange Observer in the amount of$175. Motion carried 4-0 Vote on original motion, as amended Economic Development Director, for a half year$53,355 Ocoee Hills/Brentwood subdivision resurfacing$157,000 1.2 % salary increase at 10/1/15 $210,180 (first pay period in October) Reduce midyear salary increase from 2% to 1.2% $(70,060) Page 4 of 7 Final Budget Public Hearing September 21, 2015 Televising Women's Club Political Forum (10/2015) $175 Televising Political Forum hosted by West Orange Observer(10/2015) $175 Motion carried 4-0. Finance Manager Brosonski stated that the millage rate at this time is 5.8717. Martha Lopez Anderson said there has been conversation that the Ocoee Lakeshore Center was built to small and we may be able to push out a wall and expand that building. She does not see it anywhere in this budget. Commissioner Johnson said he feels we should pay for the expansion with reserve funds, in the same way we did the building and pay it back from the money that is made from the rentals. Commissioner Johnson said if we do it right away we can still get matching items such as carpeting, the building, floors, furniture, etc. The revenues have been good; we are staying booked 18 months to two years in advance. City Manager Frank added that we also have the bond issue and impact fee revenues, so there are a few options to pay for the expansion. Mayor Grogan said we will have to figure out parking if we expand the building in that direction. Commissioner Wilsen, seconded by Commissioner Johnson, moved to amend the budget to include $350 in the budget to televise next year's budget hearings. Motion carried 4-0. Discussion regarding Computer Software for Parks and Recreation, $60,000 Parks and Recreation Director explained the need for this software for better tracking of the various events that we offer the community, including the Lakeshore Center. Finance Manager Brosonski said, with this $60,000 added, the millage rate would be 5.9042. Support Services Butler explained that the $60,000 price included many additional modules. Commissioner Keller, seconded by Commissioner Johnson, moved to amend the budget to include new computer software for the Parks and Recreation Department. Motion carried 4-0. Discussion on Wurst Rd resurfacing $306,000. Mayor Grogan explained that they are removing it from the budget at this time because of the West Side Sewer Loop work is going to be done that would probably damage some of the pavement. Discussion Jackson St sidewalk(5') (S. side of road connecting to Tiger Minor Park) $11,500 Public Works Director Krug discussed the cost of adding light there as well. City Manager Frank said we can figure out how to budget one light for the park. Commissioner Keller, seconded by Commissioner Johnson, moved to amend the budget to include the Jackson Street sidewalk in the amount of $11,500. Motion carried 4-0. Commissioner Wilsen asked about total amount in reserves, someone made a comment on a social network that we have 20 million in reserves. City Manager Frank noted that we have approximately 10 million, which is at 25% and a very healthy amount for a reserve account. Mayor Grogan confirmed that the millage at this time is 5.9104. Page 5 of 7 Final Budget Public Hearing September 21,2015 Commissioner Wilsen made a motion to limit all Mayor and Commissioners across the board to $5000 travel and conference expenses. Motion died for lack of second. She said as a resident and commissioner she is appalled at the $102,000 amount has been spent in the last five years. Mayor Grogan noted when you get elected to a public office, you make think you know a lot, but you realize how much there is to learn. He believes that the investment in education of all staff and commissioners is a great benefit to the city and education is the key to offering a better government to the residents. It is not a waste of money; on the contrary he feels it should be mandatory that commissioners get certifications in certain areas of government and budgeting. RECESS 7:28 p.m. —7:38 p.m. Commissioner Wilsen asked if it is possible to do a mid-year review particularly in the case of the insurance changes that we have made. City Manager Frank said that typically we would have an advertised public hearing for Budget Amendments in April. If we have another project, or additional revenue that was not anticipated, we make those amendments at that time. Commissioner Keller felt that we should seriously look at setting aside paving money each year because it tends to get moved out of the budget. We should look at a long term plan where we do some paving every year. It is one of the biggest complaints from the residents. C. After all amendments are completed, announcement by Director of Finance of the proposed final millage rate and the percent by which the proposed millage rate exceeds the rolled-back rate. This percentage is the proposed final percentage increase in property taxes. Finance Director Horton announced that the proposed final millage rate is 5.9104 and the percent by which the proposed millage rate exceeds the rolled-back rate is 9.27 %. This percentage is the proposed final percentage increase in property taxes. 1. Motion to adopt Ordinance No. 2015-0020, setting final millage rate. a. Comments by Citizens -None b. Comments by Commissioners-None c. Vote on motion to adopt Ordinance No. 2015-020, setting the final millage rate. Commissioner Keller, seconded by Commissioner Wilsen, moved to adopt Ordinance No. 2015-020, setting the final millage rate of 5.9104 mills for Fiscal Year 2015-2016. City Attorney Cookson read the title of the ordinance. He advised the name of the taxing authority is the City of Ocoee, the rolled back millage rate is 5.4091 mills, and the percentage by which the proposed millage rate exceeds the rolled back rate is 9.27%. The millage rate proposed by this ordinance is 5.9104 mills. The ordinance as adopted carries the following title: Page 6 of 7 Final Budget Public Hearing September 21,2015 ORDINANCE NO.2015-020 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A FINAL MILLAGE RATE OF 5.9104 MILLS 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 9.27% IN MILLAGE RATE OVER THE ROLLED-BACK RATE; PROVIDING FOR SEVERABILITY;PROVIDING AN EFFECTIVE DATE. Roll Call Vote: Commissioner Wilsen, yes; Commissioner Johnson, yes; Commissioner Keller, yes; Mayor Grogan, yes. Passes 4-0. 2. Motion to adopt Ordinance No. 2015-0021, adopting fmal budget. City Attorney Cookson read the title of the ordinance. a. Comments by Citizens-None b. Comments by Commissioners -None c. Vote on motion to adopt Ordinance No. 15-021, adopting the final budget. Commissioner Keller, seconded by Commissioner Wilsen, moved to adopt Ordinance No. 2015-021, approving a final budget for the Fiscal Year beginning October 1, 2015 and ending September 30, 2016. Roll Call Vote: Commissioner Wilsen, yes; Commissioner Johnson, yes; Commissioner Keller, yes; Mayor Grogan, yes. Passes 4-0. The ordinance as adopted carries the following title: ORDINANCE NO.2015-021 AN ORDINANCE OF THE CITY OF OCOEE, ORANGE COUNTY, FLORIDA, ADOPTING A FINAL BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2015, AND ENDING SEPTEMBER 30, 2016; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE D. Announcement by Mayor Grogan of end of budget public hearing. Mayor Grogan announced the conclusion of the final budget hearing. APPROVED: Attest: City of Ocoee ilf ./: itaZY 484g. 7%, viii irito 1,t' Eike,. c,.y, City Clerk - i i i " . • 1 r (1'I,,GiAni a Lit.N- 1 s4-, Johnson Page 7 of 7 Approved December 5, 2017 g Under Agenda Item 1