Fort Walton Beach Council minutes — 09-15-08 special minutes — reading text

MINUTES OF THE SPECIAL COUNCIL MEETING 277 OF THE CITY OF FORT WALTON BEACH, -FLORIDA SEPTEMBER 15, 2008 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Monday, September 15, 2008, at 5: 30 p. m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Virgil Miller, Dennis Reeves, Dr. Wayne Pullen, Jim Hartwell, and Mike Minich Absent: Bill Garvie Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Brandy Wunker, Finance Director; Toni Craig, City Attorney; and Department Directors PURPOSE The purpose of the Special Council meeting is to adopt the tentative millage rate and the tentative budget for Fiscal Year 2008/ 09. CALL TO ORDER The Mayor called the meeting to order. PLEDGE The Mayor led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Reeves moved to approve the agenda as the business of the day. Mr. Minich seconded motion and it carried unanimously with Holmes, Miller, Reeves, Pullen, Hartwell, and Minich in favor (Garvie absent). RES. 2008-40. ADOPTING THE TENTATIVE MILLAGE RATE FOR FY 2008/ 09 The Mayor read the resolution by title. A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ADOPTING THE TENTATIVE MILLAGE RATE FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009; AND SETTING AN EFFECTIVE DATE. The Mayor stated the tentative Millage Rate for the City of Fort Walton Beach for Fiscal Year 2008/ 09 is 4. 3361 mills, which is 7. 50/0 below the rollback rate of 4. 6883 mills. The rollback rate is the millage rate that will provide the same ad valorem tax revenue as was levied during the prior year. The reason for setting the millage rate at 4. 3361 mills is to provide sufficient revenues to balance the General Fund budget. Brandy Wunker, Finance Director, advised that Res. 2008- 40 sets the tentative millage rate at 4. 3361 mills for FY 2008/ 09 and has been calculated based on changes recommended by Council during the August budget meetings, and remains below the rate advertised on the TRIM notice. Ms. Wunker advised Staff has prepared a brief power point presentation and introduced the Budget/Grants Manager. Charlotte Dunworth, Budget/Grants Manager, presented a brief overview that compared the proposed millage rate with the rate as it was before the changes made by Council and how a property owner' s tax allocation would change from the prior year of 2007 to the current year of 2008. 278 9- 15- 08 Special Council RES. 08- 40 ( CONT) The Mayor opened thl3 public hearing. Matthew Gaetz, 301 Brooks Street, discussed his concern regarding increasing the millage rate to generate revenue for non- essential expenses. Mr. Gaetz noted the City Manager and the City' s department dirE~ctors worked hard to remove items from the budget they deemed non- essential; then, according to Mr. Gaetz, the City Council raised the tax rate by adding back those items into the budget, and those add- backs, in his view, do not justify an increase in the tax rate in the City and do not justify raising taxes. Mr. Gaetz noted that the property values of citizens have decreased, and the taxable value is less than last year, and that when people have less, government should not take more. He discussed the difficult time citizens and business owners are having living day to day in this difficult economy, and Mr. Gaetz related the stories of several individuals who are feeling the crunch of the sluggish economy, and that fundamentally it is a Ghoice between those items that are considered essential and those that are not; notably the funding for fireworks, two police vehicles, and retaining a fire captain. Mr. Gaetz thanked the Mayor and members of Council who took the time to speak with him and encouraged him to COllle to the meeting and to get involved. Kabe Woods, 240 Brooks Street, commended the City Manager and City Staff for their hard work to meet the challenges of lower property tax revenues, and commended Council for be listening to the input of the citizens. Mr. Woods also stated his opinion that taxes can d funding be used for items such as the fireworks and events reduced and suggest€! sponsorship such as Kids Day. As there was no one else who wished to speak, the public hearing was closed. The Mayor asked for a motion and a second to adopt Res. 2008- 40 to set the tentative millage rate for the City of Fort Walton Beach at 4. 3361 for the Fiscal Year beginning October 1, 2008 and ending September 30, 2009. Mr. Minich moved tOI adopt Res. 2008-40 to set the proposed millage rate for the City of Fort Walton Beach cat 4. 3361 for the Fiscal Year beginning October 1, 2008 and ending September 30, 2009. Mr. Hartwell seconded motion. The Mayor asked for Council discussion. Mr. Minich advised that Council spent many hours reviewing the budget and that each line item was gone through individually, discussed, and voted on. He informed the items that were added back into the budget were voted on, and that during the many hours of budget hearings, the time public was not pres€!nt. Mr. Minich noted that 24 permanent positions and six part- that added back into positions were eliminalted in the City, and the position of fire captain was the budget was an eSjtablished position, not a new one. He further noted that the process was gone through and that Council added back only what the City Manager had originally proposed. Mr. Minich advised that Council is cognizant of the fact that they have to provide the citizens with the services they want at the lowest price possible, and that tough decisions have to be made and he believes this millage rate is fair. Mr. Hartwell defended the position of Council, stating that Council directed the City Manager to look at ways to reducE~ the budget and she and her staff presented Council with a document to work from with the guidance she was given. He advised that the items that were added back into the budgetwere recommended by the City Manager and taxes were not increased originally to add them back.  279 Special Council 9- 15- 08 RES. 08-40 ( CONT) Mr. Hartwell continued that members of Council are the government and as such they are paying the same taxes as the citizens, and they do not benefit financially because they are on Council. Mr. Hartwell expressed his disappointment that some members of the public waited until the twelfth hour to provide input when the publicized meetings began in April, and noted that without public input it is difficult for Council to know what the people want. Mr. Hartwell further noted the budget documents were ready for public view six months ago but apparently the public did not respond. Dr. Pullen advised he would not support raising the ad valorem tax because there are other taxes coming in from the various utilities and other places. Mr. Reeves stated he would not support raising the ad valorem tax and that he voted against some of the add- backs, and noted that Council worked long and hard discussing the budget and that tough decisions were made. Mr. Miller spoke against the increase in ad valorem taxes and suggested that some of the one- time items, such as the fireworks and Kid' s Day, be taken from the reserve fund that is used for hurricanes and/ or other emergencies that may arise. Mr. Holmes stated he understands the comments made by Council and reiterated that these discussions have been ongoing since April and at the last minute a handful of people come and speak against the budget. Mr. Holmes commented that quality of life issues differ among individuals, and that none of the decisions were made lightly; they were made with a lot of research, and he stated his disappointment at a ' rallying of the troops' at the last minute. Mr. Holmes noted that quality of services is what is at stake and for these services to continue they must be paid for, and he feels this is an excellent document and that as much money as possible has been saved to continue to give the public the services they want and expect from the City. Further discussion included the importance in keeping monies in the reserve fund; the importance of public input; and that the ad valorem rate is irreversible for the year but the budget can be changed during the year if needed. The Mayor called for the vote on the motion and it carried by a vote of 4 to 3 with Holmes, Hartwell, Anderson, and Minich in favor and Miller, Reeves, and Pullen opposed ( Garvie absent). The Mayor advised that during his review of the budget, he had checked items he wanted added back into the budget, but they were not, so with that understanding he supports the tentative millage rate of 4. 3361. The City Attorney advised that in the case of a tie vote the Mayor can vote since, in her opinion, the provision in Section 6 prevails, which states that the Mayor can break a tie. The Mayor advised the proposed millage rate is subject to a second and final public hearing that will be held on Monday, September 22, 2008, at 5: 30 pm in the Council Chambers of City Hall. RES. 2008-41. ADOPTING THE TENTATIVE BUDGET FOR FY 2008/ 09 The Mayor read the resolution by title. 280 Special Council 9- 15- 08 RES. 08-41 ( CONT) A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ADOPTING THE TENTATIVE BUDGET FOR CERTAIN EXPENDITURES, EXPENSES, CAPITAL IMPROVEMENTS AND CERTAIN INDEBTEDNESS FOR THE CITY OF FORT WALTON BEACH, FLORIDA, FOR THE YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009; AND SETTING AN EFFECTIVE DATE. The Mayor announced the tentative budget for the City of Fort Walton Beach for Fiscal year 2008/ 09 is $ 36, 570, 582, which is $ 40, 086 or 0. 1 % less than the adopted Fiscal year 2007/ 08 budget. The Mayor opened the public hearing. Phil Gallmeier, 206 Buck Drive, received clarification on issues of concern he had regarding the proposed boat launch fee being incorporated into the budget; that the stormwater enterprise fund is a new utility and that existing crews will continue to provide current service; and that risk