Okaloosa County BOCC — October 21, 2014 — September 4, 2014 Tentative Budget Hearing

September 4, 2014 Tentative Budget Hearing The Tentative Budget Hearing for the Fiscal Year 2014-15 Budget was called to order at 6:00 p.m. at the Crestview Courthouse. Members present were Charles K. Windes, Jr., Chairman; Nathan Boyles, Vice Chairman; Wayne Harris; and Don Amunds. Commissioner Dave Parisot was not physically present but participated via telephone. Also present were Gary J. Stanford, Finance Director, and Dave Skarzynski, Budget Analyst, Clerk’s Office; Ernie Padgett, County Administrator; and Greg Stewart, County Attorney. Constitutional Officers present were Clerk of Courts Don Howard and Clerk of Courts Elect J. D. Peacock. Mr. Stanford stated we are here tonight for the purpose of taking public comment on the proposed Okaloosa County Board of County Commissioners’ FY 2014-15 budget. This hearing is being held in accordance with Chapter 129, Florida Statutes, regarding the budget process and Chapter 200.065, Florida Statutes, which details the legal requirements of setting the millage rate. Mr. Stanford said in addition to receiving public comment, the Board will: e amend and adopt a tentative millage rate e recompute any changes and e publicly announce the amount, if any, of the recomputed millage rate over the existing rolled-back rate Slides were displayed listing the legal requirements, as well as the millage information. The countywide gross certified taxable value is $14,389,405,767. The Unincorporated MSTU Gross Certified Taxable Value is $6,838,300,016. The current countywide millage rate is 3.4308 mills and the current Unincorporated MSTU rate is 0.1800. The proposed countywide millage rate for FY 2015 is 3.4308 mills and the proposed MSTU rate is 0.2990 mils. Mr. Stanford stated Statutes do allow for an increase in the millage rate at this hearing but, if approved, it will require notification by first class mail to all property owners before the Final Budget Hearing. The millage rate cannot be increased at the Final Budget Hearing which is scheduled for September 15. At the conclusion of tonight’s meeting, the Board will need to adopt two millage resolutions and a resolution for the adoption of the tentative budget. September 4, 2014 -1- Minute Book 71, Page 250 Okaloosa County Board of County Commissioners Mr. Stanford announced the proposed budget and summary pages ara on line. He gaid the details covering the budget will be presented tonight. Mr. Fadgett stated the commissioners have been provided with a copy of the budget transmittal letter from his otties. He said fr he would like to read the letter inte the record. Highlight the letter included: @ This budget calls for a very slight increase in the MST. Millage that will be used for stormwater protects, The imerease will generate an additional $781,000. @ Addition ad positions have been "added im this budget that wild aole us to reqain geome ground lost in several depart mente. 6 The proposed budget will allow employees to receive a $506 per year salary increase * ThLs _PFOp by § osed budget will increase the General Fund Reserve 36 for & total reserve of $3,796,231. ve RQ oO Mr. Padgett then reviewed the following series of slides: gregate Millage Comparison (seven lowest in state} ® Aggregate Millage Comparison (by taxable value) e County Debt Per Citizen ® Total Debt (last ten years) — a ME Padgett pointed out Standard & Poor's has raised the county's rating from AA- to AA. He explained Okaloosa County's aconomy is strong with a projected per capita effective buying income of Looe of kcthe national level. Mr. Padgett said budgetary flexibility is strong with $6.6 Million in unassigned a general fund reserves. Okaloosa County levies 3.42308 milis that is well below the 5.8907 maximum if could levy. He added the county's debt profile is also very strong. Continuing, Mr. Padgett pointed out he is still werking with the Sheriff on the Memorandum of Agreement (MOA) regarding the compensated absences, moting there are some differences on the lanquage im the MOA. Another item for comsgideration reqaurds a $32,500 allocation to the fudge Hen Gordon Visitation Cente He said last year the county made this comtribution and che Judiciary ceorntributed a iike amount. Me. Padgett was of the opinion that allocation should come from the courts and sant 2 Letter to the dudges asking for recons:i eration. He said te my rh ™ $12,500 Allocation for this Visitation enter has been ieft in oy September 4, 2014 ~ao Mimuite Book Ji, Page 245i Okaloosa County Board of County Commissioners the budget and it will be up to the Board to decide whether to leave it in or take it out. Mr. Padgett reported this is a balanced budget and there is no call to increase the gas tax or the millage rate. He reiterated there is a slight increase in the Unincorporated MSTU for stormwater and said Public Works Director John Hofstad is prepared to make a presentation on how the additional revenue will be used for stormwater issues. Mr. Amunds referred to the court fee used to fund Teen Court, Law Library, Legal Aid, and Judicial Innovations and asked if the ordinance can be amended to provide an allocation for the Judge Ben Gordon Visitation Center. Mr. Stewart stated he will research this question and provide follow up. Mr. Hofstad referred to a spreadsheet showing stormwater improvements in each of the five districts. The document identified the project, described the improvement, and estimated the costs. He provided a detailed explanation of the funding sources for the stormwater program and estimated the total costs needed for all projects at $40 Million to $50 Million. Public Comments Mr. Steve Czonstka, Niceville, identified himself as Republican State Committeeman and congratulated the commissioners on their performance this year. He thanked Mr. Amunds, Mr. Parisot, and Mr. Padgett for their service and said he looks forward to the next year with the new commissioners and new administrator. Mr. Czonstka stated the purpose of government is to provide for the citizens what they cannot provide for themselves. He said the reliance should be on service fees rather than ad valorem taxes. Mr. Jeffery Burton Howe, Bone Creek, asked how his property values decreased and his taxes went up. He also expressed concern that the road through the state forest at Bone Creek was only half-built. Mr. Howe felt there was more concern for South County than North County, addressing specifically road conditions. He told how a friend and neighbor died because the ambulance could not make it to his house because of the conditions of the road he lived on. Mr. Boyles said Mr. Howe lives in his district and he appreciates the concern he has for unpaved roads, telling Mr. Howe there are many miles of unpaved roads. He said it costs September 4, 2014 -3- Minute Book 71, Page 252 Okaloosa County Board of County Commissioners about $1 Million per mile to pave a road. Mr. Boyles assured him the commissioners have a good relationship and money is spent on both ends of the county. Mr. Harris added there are more than 200 miles of dirt roads. Mr. Windes asked Public Works Director John Hofstad and Public safety Director Dino Villani to meet with Mr. Howe after the meeting to address his concerns. There were no further public comments and Mr. Stanford was asked to read the resolutions. Mr. Stanford read the proposed resolution adopting the tentative levying of ad valorem taxes for FY 2014-15 at 3.4308 mills which is greater than the rolled-back rate of 3.3244 mille by 3.2%. Mr, Harris made motion, seconded by Mr. Amundg, to adopt the resolution. 5 yeas. RESOLUTION NO, 14-151 Mr. Stanford read the proposed resolution adopting the tentative levying of ad valorem taxes for County Parke Municipal Services Taxing Unit (MSTU) for FY 2014-15 at 0.2990 mills which is greater than the rolled-back rate of 0.1747 mills by 71.15%, Mr. Boyles made motion, seconded by Mr. Harris, to adopt the resolution, 4 yeas, 1 nay. (Mr. Amunds voted no.) RESOLUTION NO, 14-152 Mr. Stanford read the proposed resolution adopting the tentative budget for FY 2014-15 in the amount of $310,010,770. Mr. Harris made motion, seconded by Mr. Amunds, to adopt thie resolution. 5 yeas. RESOLUTION NO. 14-153 ADJOURNMENT There being no further business to come before the Board, the hearing was adjourned at 6:50 p.m. DON W. HOWARD CHARLES K. WINDES, JR., CHAIRMAN CLERK OF CIRCUIT COURT BOARD OF COUNTY COMMISSIONERS (These minutes were transcribed by Teresa Ward.) September 4, 2014 -4- Minute Book 71, Page 253 Okaloosa County Board of County Commissioners