Fort Walton Beach Council minutes — 05-15-12 special - budget policy — reading text

Final Minutes – City of Fort Walton Beach Special Meeting of the City Council of Fort Walton Beach 6: 00 PM 107 Miracle Strip Parkway Tuesday, May 15, 2012 Port Walton Bcach, FI. 12548 CALL TO ORDER 6: 00 PM Meeting was called to order on May 15, 2012 at Council Chamber, 107 Miracle Strip Parkway, Fort Walton Beach, FL. Arrived rName e Name ! Title – s_ Mayor t derson i!7 Council Seat 1 nt _ _ ___ _ riggs I nt _ __ __ ssom __ _._ Council Seat 2 eeves Council Seat 3 nt _ odwin Council Seat 4 nt abors _ Council Seats nt i ___ _ Bugdon 4Council Seat 6 nt__.. DickRyneazson Council Seat 7 nt . li _ _ _ _ The Mayor advised Bobby Nabors was out of town. PLEDGE OF ALLEGIANCE Budget Policy Meeting Brandy Ferris, Finance Director, presented a five -year forecast of the various funds within the City, including the general, utilities, sanitation, golf, and stormwater funds. She noted projected increases in the sanitation and stormwater funds, and projected losses in the general, utilities, and golf funds. It was noted that the golf fund, while making some progress, will continue to be monitored. Discussion included innovative ways to generate revenue for the golf such as having an entity sponsor holes and/ or covering maintenance costs for a particular fairway. Jeff Peters, Recreation/ Cultural Services Director, informed Staff has not looked into sponsoring holes or green but is currently doing tee box markers and is looking at ideas such a father /son days or military days to increase revenue. Policy Decisions Ms. Ferris advised that three policy decisions will be discussed this evening for Council's consideration: 1) Fire Protection Assessment; 2) Millage Rate; 3) Employee Compensation. Page I Printed 511612012 City Council of Fort Walton Beach 294 Special Meeting Minutes May 15, 2012 Fire Assessment Discussion Fire Chief Ken Perkins discussed the first policy decision as the possible implementation of a Fire Protection Assessment which would enable the department to continue to provide its current level of services while fairly apportioning the cost between the recipients of fire protection rather than burdening only ad valorem taxpayers according to the taxable value of their property. Chief Perkins explained a fire protection assessment would provide stable and predictable revenue for one of the City's core services that would reduce the millage rate, diversify revenues, and promote fiscal sustainability. Chief Perkins advised a fire protection assessment may be billed separately, such as a water utility bill, or included on the tax bill. The property tax bill is the preferred method of collection since the property owner benefits from the service, and a fire protection assessment would need to be adopted by January 1, 2013 for inclusion on the 2013 tax bill and the FY 2013 -14 budget. Council discussion included the need to educate the citizens if the assessment is implemented; that the fee would directly benefit property; and that all property owners should be assessed to determine exemption. Further discussion included the City's Mutual Aid Agreements with surrounding areas and the services provided by the City vs. the services the City receives. The vote on the motion to move forward and further explore the Fire Protection Assessment carried unanimously.__ RESULT: ADOPTED [ UNANIMOUS] MOVER: Dick Rynearson, Council Seat 7 SECONDER: Joyce gossom, Council Seat 2 AYES: Griggs, gossom, Reeves, Goodwin, Rigdon, Rynearson ABSENT: Nabors Millaee Rate Discussion Ms. Ferris advised the second policy decision for Council to consider is the millage rate, which is the tax rate applied to each property owner' s taxable value to generate property taxes or ad valorem revenue. She explained the rolled back rate as the millage rate that produces the same amount of ad valorem tax revenue levied during the prior year, and that for FY 2012 -13, a higher millage rate is required to generate the same amount of tax revenue due to the lower taxable value. The Policy Options for Council to consider are to maintain the current millage rate at 4.5383; or adopt the millage rate that generates the same amount of ad valorem revenue in FY 2012 -14 as generated in FY 2011 - 12 ( 4. 63 mills). The vote on the motion to maintain the current millage rate of 4.5383 mills carried unanimously. RESULT: ADOPTED [UNANIMOUS] MOVER: Trey Goodwin, Council Seat 4 SECONDER: Dennis Reeves, Council Seat 3 AYES: Griggs, gossom, Reeves, Goodwin, Rigdon, Rynearson ABSENT: Nabors City Council ofFort Walton Beach Page 2 Printed  295 Minutes May 15, 2012 Special Meeting Employee Compensation Discussion The third policy decision for Council to discuss and consider is that of Employee Compensation. Ms. Ferris advised in FY 2012 employees had the option to elect vacation hours or a lump sum dollar amount based on their annual evaluation score, and the November 2011 employee survey revealed a preference for some portion of the lump sum payment to be guaranteed, rather than entirely based on the evaluation score. The policy options for Council to consider are a lump sum performance incentive up to $ 900 based on an employee's annual evaluation score during FY 2012 -13 ( or election of corresponding vacation hours); a lump sum cost of living payment of $500 plus performance incentive up to an additional $ 400 based on the employee's annual evaluation score during FY 2012 -13 ( or election of corresponding vacation hours); or a lump sum cost of living payment of $900 on October 1 ( or election of corresponding vacation hours). The vote on the motion to provide a lump sum cost of living payment of $500 plus a performance incentive up to $ 500 based on an employee' s annual evaluation score during FY 2012 -13 ( or election of corresponding vacation hours) on October 1, 2012, carried RESULT: ADOPTED [ UNANIMOUS] MOVER: Dick Rynearson, Council Seat 7 SECONDER: Bull Rigdon, Council Seat 6 AYES: Griggs, gossom, Reeves, Goodwin, Rigdon, Rynearson ABSENT: Nabors Incentive for Start Up Businesses The Mayor discussed whether Council wanted to consider a policy to provide incentives for start up businesses in the City and for current businesses that are expanding. Michael Beedie, Acting City Manager, advised that Staff is looking at addressing various incentives in the CRA area acrd can report back to Council at a future date. The Mayor also discussed. the City's recycling program and whether anything different is planned and Mr. Beedie advised that several customers have joined in the commercial recycling fee program. ADJOURNMENT: 6: 45 pm Approved / c2 Mayor: Attest: d City lerk 5116¢ 012 page 3 Council ofFort Walton Beach