Okaloosa County BOCC — September 3, 2013 — September 5 Tentative Budget Hearing — reading text

September 5, 2013 Tentative Budget Hearing The Tentative Budget Hearing for the Fiscal Year 2013-14 Budget was called to order at 6:00 p.m. at the Crestview Courthouse. Members present were Don R. Amunds, Chairman; Dave Parisot, Vice Chairman; Wayne Harris; Nathan Boyles; and Kelly Windes. Also present were Gary J. Stanford, Finance Director, and Dave Skarzynski, Budget’ Analyst, Clerk’s Office; Ernie Padgett, County Administrator; and members of the press. Constitutional Officers in attendance were Don Howard, Clerk of Circuit Court; Larry Ashley, Sheriff; and Paul Lux, Supervisor of Elections. Mr. Padgett opened his presentation with a video entitled Government at Work provided by the Florida Local Government Coalition. He stated the proposed budget for Fiscal Year 2013- 14 before the Board for consideration is the result of five months of work. Mr. Padgett termed the proposed budget as “lean but adequate.” He stated the strategy over the past several years has been to reduce staff and operational expenses, to delay vehicle and equipment replacements, to limit capital project, and draw down discretionary reserves. He felt this should be the year to reverse that trend, saying you can only reduce so far before you become counterproductive. Mr. Padgett drew attention to Slide #3. The charts on this slide showed a comparison of Property Valuation Last Ten Years and Millage Rate Last Ten Years. He said property values have increased an average of only 1.5% in the last eight years while the millage rate has decreased .82 mills in nine years. Mr. Padgett pointed out the Board only has control over the millage rate and not valuations. Slide #4 shows a comparison of Total Budget Last Ten Years and Property Taxes Last Ten Years. He said the total budget has decreased $12.6 Million, or 4.3%, over the last seven years. Property taxes over the last nine years have increased by only 4.6%. The next series of slides addressed the following: Slide #5 - Chart showing Annual Impact of Proposed BCC Millage Increase on taxable property values ranging from $50,000 to $300,000 Slide #6 - Chart showing Monthly Impact of Proposed BCC Millage Increase on taxable property values ranging from $50,000 to $300,000 Slide #7 - Impact of Proposed BCC Millage Increase on the average taxable home value ($124,031.70) in Okaloosa County September 5, 2013 -1- Minute Book 70, Page 31 Okaloosa County Board of County Commissioners Slides #8 and #9 - Capital Projects Slide #10 was a “Budget Overview” stating the proposed budget represents a conservative effort to restore some General Fund operation in order to meet the needs of citizens and to solve urgent problems while using the Board’s prioritization of services as identified in the Strategic Plan. Again, Mr. Padgett recommended a reversal in the five-year trend in order to meet the challenges of the coming year. This proposed budget does include a 3% salary increase for employees beginning on October 1, 2013. Mr. Stanford reported that even with the proposed millage rate of 3.4308 mills, Okaloosa County will still have the lowest millage rate in the State. He advised the Board must adopt a tentative millage rate tonight and on September 16, the Board will adopt a final levy and the final budget for FY 2014. Mr. Stanford referred to the “legal requirements slide.” He stated the Board must hold two public hearings on the budget, noting this is done after multiple workshops are held and opened for public participation. Mr. Stanford stated all budget documents and the summary are online. As in the budget workshops, the public can speak and ask questions before the governing body adopts any measures. At both the tentative and final hearings, the Board must adopt the millage rate before adopting the budget and must be accomplished by separate votes. Tf changes are made, computations will be made and _ the percentage of change will be announced. The current millage rate is 3.2899 mills. Mr. Stanford said the proposed countywide millage rate is 3.4308 mills. The countywide rolled-back rate is 3.2583 mills. The proposed Unincorporated MSTU rate is 0.1800 mills. The aggregate millage rate is 3.5156 mills. He stated the final millage rate cannot be higher than thé rate approved tonight. However, if the tentative rate is higher than the proposed rate, each taxpayer must be mailed a revised TRIM Notice at the expense of the taxing authority. The prior year maximum millage limitation is 5.3552 mills (this rate is computed by the State). Mr. Stanford stated State law requires the county to budget at least 95% of projected ad valorem tax revenue which has been done in past year. He noted the proposed budget for FY 2014 budgets 96% of the projected revenue. September 5, 2013 -2- Minute Book 70, Page 32 Okaloosa County Board of County Commissioners The next series of slides included: e A listing of all funds in Okaloosa County. Mr. Stanford stated the budget has 30 funds, totaling almost $280 Million. He pointed out only $45 Million of the budget is supported by ad valorem tax revenue. e Revenue by Source e Expenditures by Function e Ten-year history of property values, taxes, millage, and the budget e Comparison of the aggregate millage rate with counties of similar population e Comparison of the average debt activity of counties of comparative size Mr. Parisot was given the floor to discuss his talking paper on the Florida Retirement System and revised rates. Mr. Parisot referred to the proposed cost of living adjustment for employees. He said there was discussion in April of using different percentages for high paid and lower paid employees. Mr. Parisot stated this posed problems in the Human Resources Department and a recommendation was made to provide each employee with a $1,400 increase. Mrs. Kay Godwin, Human Resources Director, detailed HUD guidelines for the poverty level and provided statistics of how many county employees are within 20% of that level. Mr. Parisot stated the previous County Administrator recommended a 10% increase in the millage rate, advocated implementation of five cents additional gas tax, and supported a utility franchise fee. He gaid the proposed budget is based on only a 4% increase in the millage rate, three cents additional gas tax, and no utility franchise fee. Upon inguiry by Mr. Harris, Mr. Stanford confirmed the total of unfunded State mandates over the last three years is $38.5 Million. Mr. Amunds opened the floor for public comment. Mr. Harold LaFountain, Crestview, referenced the “Save Our Homes” Amendment which limits increases on homestead property to no more than 3%. He said although the Board may not have approved a millage rate increase in past years, his taxes have September 5, 2013 -3- Minute Book 70, Page 33 Okaloosa County Board of County Commissioners increased because this amendment does allow the Property Appraiser to increase the valuations within that 3% limitation. Continuing, Mr. LaFountain was of the opinion there are too many people within the county who are authorized to spend money. He asked where these people are spending the money and how he can find out that information. Mr. Parisot replied all bills are paid through the Finance Department and assured him _ the commissioners do not sign any checks. Sheriff Larry Ashley complimented the commissioners on the courage to do what is needed on this budget. He said the proposed $2.1 Million increase for his office is appreciated but if that is the increase he gets, he will have to make some difficult decisions. He addressed the contract the Sheriff's Office has with the School Board for School Resource Officers (SROs) and the number of vehicles he has with more than 100,000 miles on them. Sheriff Ashley told the Board this county has one of the lowest per capita costs in the country. He advised there may be services the citizens and visitors may not have. Upon inquiry by Mr. Boyles, Sheriff Ashley stated there are 35,000 students and approximately 2,200 staff members in the schools. He reported he has 39 SROs. Sheriff Ashley spoke about the increased number of calls for service, the number of sexual predators registered in the county, and gang activity. Mr. Harris thanked the Sheriff for speaking tonight. He said many of us come from a different background and are naive about what deputies must deal with. Sheriff Ashley stated he is not being critical but asked the Board to please consider budgeting more for the Sheriff's Office, if not this year, at least next year. At Mr. Harris’ request, Sheriff Ashley explained efforts to ask Legislators to approve use of bed taxes for emergency services related to tourists. He noted that 90% of the calls for service are within the bed tax district. Sheriff Ashley said the lodging industry is opposing this type legislation. Mr. Kenny Fuller, Baker, stated he provided a copy of what he is going to say to one of the deputies in attendance. He said he wants to address the situation at last Tuesday’s meeting. Mr. Fuller stated the Clerk of Courts took about an hour to discuss an issue with the Board and then he was given only two minutes to speak. He felt the Board was downgrading the people who ride the buses and told the Board it has violated the law. Mr. September 5, 2013 -4- Minute Book 70, Page 34 Okaloosa County Board of County Commissioners Fuller quoted from Florida Statutes and was of the opinion Mrs. Lovejoy, who runs the non-profit organization (OCT), is operating “legalized money laundering.” He said neither the Board nor Mrs. Lovejoy has shown where the money for public transportation is going. Mr. Fuller went on to question the amount of money paid to department heads and the County Administrator. He again stated Mrs. Lovejoy “needs to be checked out” and her records reviewed. Mr. Fuller told the Board he has the authority to conduct a citizen’s arrest and he does not appreciate being disrespected. Mr. Amunds responded that if Mr. Fuller believes there is a violation, he can file a complaint with the Attorney General or the Ethics Commission. Mr. Trey Goodwin, Fort Walton Beach, stated he realizes the Board and County Administrator have put a great deal of hard work into preparing the budget and coming up with a millage rate. He said he has heard from citizens and businesses they cannot endure any more expenses. Mr. Goodwin stated it may seem like a small amount but requested the Board to reconsider raising the millage rate. Mr. Harris asked if it is fair to say that Mr. Goodwin is running for office. Mr. Goodwin replied that is no secret. (Mr. Goodwin is a candidate for the County Commission District II seat.) Mr. Parisot pointed out the employee salary increase is to be funded by the ProShare insurance rebate. Ms. Ruth Alford, Niceville, asked why we have to manage decay and said Okaloosa County should separate itself apart. She questioned raising taxes year after year and said many citizens are struggling financially. Mr. Amunds closed public comment and brought the discussion back to the Board. Mr. Windes referred to a slide in the opening presentation which showed Okaloosa County has maintained the lowest millage rate in comparison to eight counties of similar size. He felt this Board has done a good job of thinking outside the box. Mr. Harris stated Walton County’s millage rate is at 4.2 mills, Santa Rosa County at 6.02 and Escambia County is at 7.4. Continuing, he said for the last five years this county has scrimped and saved; it has cut 134 employees; uses cranes that are 22 years old; and has fleet vehicles with 200,000 miles on September 5, 2013 -5- Minute Book 70, Page 35 Okaloosa County Board of County Commissioners them. He said he cannot tell everyone how right he believes this proposed budget is for the county. Mr. Harris stated he is retired military and has received increases totaling 11.5% during the same timeframe county employees have received no