Okaloosa County BOCC — September 16, 2014 — Minutes — reading text

July 29, 2014 Budget Workshop A Fiscal Year 2014-15 Budget Workshop of the Okaloosa County Board of County Commissioners was called to order at 8:30 a.m. at the Water & Sewer Administration Building in Fort Walton Beach. Members present were Charles K. Windes, Jr., Chairman; Nathan Boyles, Vice Chairman; Wayne Harris; Dave Parisot (arrived at 8:35 a.m.); and Don Amunds. Also present were Gary J. Stanford, Finance Director, and Dave Skarzynski, Budget Analyst, Clerk's Office; Ernie Padgett, County Administrator; and representatives of the media. UPDATE FROM PREVIOUS WORKSHOP Mr. Windes said because the agenda is heavy today, Mr. Padgett could report on a portion of the items from the last workshop and speak to the remainder at the conclusion of the workshop. Mr. Padgett said there are four items to report back on. He said one of the issues the commissioners requested additional information on was the Sheriff's Compensated Absences Fund. The current balance in that fund is $1,369,000. Mr. Padgett stated he has spoken with the auditor (Angela Balent) several times on this issue. He said it was her conclusion and she felt comfortable recommending a 20% to 30% reserve in the Sheriff's Compensated Absences Fund. Mr. Padgett stated 70% of $1,369,000 is $958,300. It is his recommendation to round that down to $900,000 for transfer to the General Fund. He further recommended that $500,000 of those transferred funds be added to the Sheriff's FY 2015 budget and the remaining $400,000 would go into the General Fund. Mr. Padgett said $250,000 of the $400,000 could be used to cover the costs for the public transportation fixed routes. The remaining $150,000 could be placed in General Fund Reserves. (Mr. Parisot arrived at this time—8:35 a.m.) Continuing, Mr. Padgett stated other dollars can be added to General Fund Reserves as they are isolated from revenue sources. Mr. Windes stated that he did speak with Ms. Balent and she indicated she would provide a written statement. Mr. Padgett responded that he did receive that statement yesterday. July 29, 2014 -1- Minute Book 71, Page 170 Okaloosa County Board of County Commissioners Mr, Parisot referred to the Pro Share balance of $1.6 Million and stated that is unobligated reserves which could be used in the event of a storm event if additional funds are needed. Mr. Padgett agreed that money is in reserves and can be used at the discretion of the Board. He said the $1.6 Million is the amount after increases are given to employees. Upon inquiry by Mr. Windes, Mr. Stanford stated the reserve balance is calculated and placed into the self-insurance fund. The Pro Share monies automatically go into this fund, advising there are other monies which also go into that particular reserve fund. He clarified that at this time 90% or more of the reserve fund balance is Pro Share revenue. Mr. Stanford explained the reserve balance is what is left after receipt of revenues and proposed budget expenditures are accounted for, He said there is $1.6 Million in the account. Mr. Boyles asked if there is any hope of getting a Memorandum of Understanding (MOU) with the Sheriff that the $500,000 proposed to be returned to him from the unencumbered portion of the Compensated Absences Fund will be applied to something in particular, such as vehicles. Mr. Padgett replied that he thinks the Sheriff would be willing to designate that in written form, adding that he will talk with him today. Relative to the Unincorporated County Parks MSTU, Mr. Padgett stated he recommended in his budget cover letter to pull $500,000 from the MSTU Reserves for a one-time contribution to stormwater, He said that recommendation did not receive support. Mr. Padgett stated a permanent revenue source is needed to do something significant with stormwater issues. Options include a sales tax dedicated to stormwater, a stormwater utility or a combination of revenue sources. He advised the current millage vate for this MSTU is 0.1800 mils. Mr. Padgett said he has two proposals for consideration: 1. Increase this millage rate to 0.2718 mils which will require a simple majority vote of the Board. It would net $602,646 in new revenue for stormwater. 2. Increase this millage rate to 0.2990 mils which will xequire a 2/3 majority vote of the Board. It would net $781,207 in new revenue for stormwater. He provided bar graphs to show the monthly and annual impacts this increase would have on property owners at varying increments of $50,0C0 of taxable property values. Mr. Padgett July 29, 2014 -2- Minute Book 71, Page 171 Okaloosa County Board of County Commissioners also noted this revenue stream could be bonded and if a sales tax were implemented down the road, the millage rate could be cut. Mr. Parisot said he does not see the cities weighing in on the sales tax issue and the allccations for stormwater are only going for operational costs. He stated that he is supportive of raising to 0.2990 mils. Mr. Harris said this is not a panacea but it is better than nothing. Mr, Boyles stated the County Administrator was asked to provide possible solutions which he has done and he appreciates that. However, he stated he doesn’t know if these are the best options. Mr. Boyles said there could be a bond issue without raising taxes and would like to see comparisons. Mr. Boyles continued, saying a number of storwmater retention ponds were damaged during the spring storm event. He spoke specifically about retention ponds constructed by developers off the right-of-way which were accepted by the county. Mr. Boyles said he would like to explore the possibility of requiring future developments with off-street retention ponds to have a homeowners association be responsible for the maintenance of those areas. Mr. Padgett referred to the charts and said if the Board approved an increase to 0.2718 mills, the annual tax increase on a $250,000 property would be $22.95. Mr. Stanford stated today is the day we set aside for adoption of the tentative millage rate. He explained that rate must be reported to the Property Appraiser 35 days after certified values are received (July 1) which means August 4 is the deadline. Mr. Stanford pointed out this is the last workshop or meeting before the deadline. He said the Property Appraiser will use the tentative millage rates in preparation of the Truth In Millage (TRIMs} mailed to property owners. Mr, Stanford continued, saying the millage rate will again be addressed at the two budget hearings held in September (Tentative Budget Hearing on September 4 at 6 p.m. in Crestview; Final Budget Hearing on September 15 at 6 p.m. in Fort Walton Beach). He advised the advertised rate can go down in the first budget hearing but not up. If the Board, however, decides to July 29, 2014 -3- Minute Book 71, Page 172 Okaloosa County Board of County Commissioners increase the tentative millage rate at that hearing, the notification of the new rate must be sent to all property owners at the Board’s expense. Mr. Stanford stated what is set today is not set in stone. Mr. Parisot reiterated Mr. Stanford’s explanation of setting the rate and what happens if it is changed. He estimated the cost for the notification at $50,000. Mr. Parisot stated the Board does not have to set the tentative rate today because there is a budget workshop on August 4 and felt approval of the rate could be delayed until August 5 at the regular Board meeting. Mr. Stanford stated he transmits the tentative millage rate information electronically. He noted when the budget workshops were set, the next workshop was to be August 7 but it was rescheduled at the last week. Mr. Parisot said another reason to delay setting the rate is to hear the Public Works Department budget presentation and the stormwater discussion at the August 4 workshop. Mr. Padgett concurred, saying that is reasonable. Mr. Windes agreed and asked Mr. Padgett if he has anything else at this time. Mr. Padgett replied those are the big items and he will have a couple more to review with the Board at the end of this workshop. Mr. Parisot said he asked for a break out of the General Fund allocations with regard to the Public Safety, Essential Services, and Quality of Life categories. He acknowledged receipt of the information and said 31% of the $3 Million increase in the General Fund from last year is for Quality of Life items. Mr. Parisot suggested the $941,000 proposed for Quality of Life be reallocated to Essential Services or Public Safety. He said it was difficult to find where that $941,000 increase was and asked for more clarification at the next workshop. MEDICAL EXAMINER Mr. Jeff Martin, Director of the Medical Examiner (ME) Office, stated he was unable to be at the last workshop. Upon inquiry by Mr. Amunds, Mr. Martin stated the proposed budget for FY 2015 represents a 7% decrease. He explained they use historical data on death rates, tourism, and population to project services. July 29, 2014 -4- Minute Book 71, Page 173 Okaloosa County Board of County Commissioners Mr. Amunds asked for the status on Walton County sharing in the costs for the ME's facilities in Okaloosa County. Mr. Martin stated he spoke with Walton County’s County Administrator and staff on this issue. He said he proposed a lease agreement for use of the building and to give Okaloosa County a credit for its portion. Mr. Martin stated a lease was forwarded to Walton County, that he had conversation with Walton representatives and remarked they were surprised to get a lease from him. Mr. Harris asked what Walton County’s share should be. Mr. Amunds pointed out this issue came up one year ago and they should not have been surprised. He too asked about Walton County’s share of the facility costs. Mr. Martin replied about $12,000. He added the Walton County Administrator has changed many times over the past years and many of the people he discussed this with no longer work for Walton County. Mr. Martin said he was told Walton County had already prepared its budget for the coming year but could amend it. At Mr. Amunds’ request, Mr. Martin provided additional detail on the percentage or split for Okaloosa County with regard to ME services and investigator services. Upon inquiry by Mr. Boyles, Mr. Martin explained that MES are appointed by the Governor and provided the statutory obligation for the county to pay for Medical Examiner services. Mr. Boyles said he would like to investigate an interlocal agreement and defer consent until a line item budget for the Medical Examiner is presented. Mr. Padgett stated one year ago he discussed this item with the Assistant/Interim County Administrator for Walton County. He said a commitment was made to allow for those costs in the budget. Mr. Padgett stated Walton County has gotten a free ride at Okaloosa County’s expense. He said there has been another administrator since that time. Mr. Parisot said he would like to see the Administrators for the four counties in the circuit (Escambia, Santa Rosa, Okaloosa and Walton) get together to discuss an interlocal agreement for ME services for the FY 2016 budget. REQUEST FROM MR. PARISOT Mr. Windes asked Mr. Parisot to refresh the commissioners with his earlier comments on General Fund contributions for the three categories. Mr. Parisot complied with an explanation. Mr. July 29, 2014 -5- Minute Book 71, Page 174 Okaloosa County Board of County Commissioners Padgett stated he will bring the response to the August 4 workshop . PURCHASING Mrs. Zan Fedorak, Purchasing Manager, highlighted surplus sales for this fiscal year and explained approval was obtained from the County Administrator for use of those funds to hire temporary staff for Purchasing and to purchase a copier for veterans Services. She said if there are enterprise department itema involved in the auction, her department works with the Clerk’s Office to return those monies to the proper enterprise departments.