Okaloosa County BOCC — October 5, 2013 — 7-30-13 budget workshop — reading text

commented that he did not see anything in the budget for the BCC. Also, Mr. Parisot addressed requests from museums and other non-profits. He said last year they were put on notice that funding may decrease or end. Mr. Parisot referred to page 2-18 General Services - Other and the line items for the Judge Ben Gordon Visitation Center and museums. He also directed attention to the line item for bond counsel, lobbyist and book/publications/subscription memberships. Referring to page 2-40, Mr. Parisot stated Head Start, Day Care Services, and Elder Services were also given notice the Board may not fund at the same level. He said other areas he looked at were Okaloosa County Transit (OCT) and replacement of ambulances (suggesting replacement of three rather than four). Mr. Parisot asked if we look at General Services and BCC Welfare (non-profits) if a millage rate is contemplated. Mr. Amunds stated he does not support increasing an allocation for oOcT. With regard to the BCC Welfare account, he said he would really like to change the name because it causes confusion. He stated the Day Care Service receives federal contributions based on what the county contributes. Mr. Amunds felt the agency should be given an opportunity to address the Board at the next workshop about return on investment. He added that if there is support for a millage increase, the cuts may not be as drastic. Mr. Harris renewed the position he expressed last year regarding public transportation and said the ridership numbers are still down. He said he can voice support for the Express Route. Mr. Harris commented that if the millage rate is increased, the Board should take another look at the “welfare funds.” He also supported giving non-profits an opportunity to speak with the Board. July 30, 2013 -11- Minute Book 69, Page 255 Okaloosa County Board of County Commissioners Mr. Windes noted the setback in OCT routes and said he will side with a reduction of the routes. Regarding the non-profits, he Supported hearing from them at a workshop. Mr. Windes stated he does not favor any cuts to Elder Services. Mr. Boyles said he is trying to understand how this process works and called Mr. Parisot’s lists of potential cuts a broad sweep. He supported addressing the tentative millage rate and gas tax issues. Mr. Boyles said of those line items some may become non-issues once the millage rate and gas tax issues are determined. He stated he does not want to get the cart before the horse. Mr. Parisot went into great detail on the items he listed earlier. Mr. Boyles noted that Public Safety Director Dino Villani is not present to address the proposed cut in ambulance replacements. He also said he needs a specific focus and to figure out where Mr. Parisot is going. County Administrator's Proposal Mr. Padgett stated he has provided a letter (dated July 26, 2013) and will read it into the record. (This letter is on file in the Clerk’s BCC Records Department.) Highlights of this letter are: ® Action taken by the Florida Legislature relative to the Florida Retirement System (FRS) has imposed a_ costly unfunded mandate on all Florida counties. As a result, Okaloosa taxpayers are required to pay $1,850,000 each year, beginning on October 1, 2013. ® The same Legislature excluded school boards from this unfunded mandate and the State is paying their share. e After five consecutive years of budget cuts, the Board is having a challenging time deciding from where this unfunded mandate will be paid. He recommends a millage increase of 0.1409 or 4.3% over the current rate to fund the FRS increase. e Department directors have spoken about the backlog of projects and reduction of staff positions. Employees have received no cost of living adjustment during the last five years. e® Because of the transportation, maintenance, and stormwater issues, Mr. Padgett stated his recommendation for a five- July 30, 2013 ~12- Minute Book 69, Page 256 Okaloosa County Board of County Commissioners cent gas tax is unchanged. He believes the revenue is very much needed and without it road issues will fall further behind, e He recommends approval of the millage increase and five- cents of gas tax to balance the FY 2013-14 budget. Mr. Padgett used a series of charts to explain his conclusions and recommendations. In explaining the proposed millage increase, he said on a property valued at $300,000, a 4.3% increase would amount to $42.27 per year or $3.52 per month. Continuing, Mr. Padgett said the average taxable value property in the county is $124,031.70. The 4.3% for the average value property would be $17.48 annually or $1.45 per month. With the increase in the millage rate and gas tax, Mr. Padgett said the budget would still be lean but workable. Upon inquiry by Mr. Amunds, Mr. Padgett said ‘the 4.3% would increase the millage rate from the current 3.2899 mills to 3.4308 mills. Mr. Harris stated this is a tough one for him. He believes infrastructure is an essential service. Mr. Harris stated leadership means making decisions people may not like. He said after speaking with a number of constituents he has changed his perspective and added that the AGO also changed his perspective. Mr. Harris listed many of the deficiencies the county now faces as a result of “kicking the can down the road.” Mr. Harris then made motion to set the tentative millage rate at 3.4308 mills and to approve the five-cent gas increase. Mr. Amunds asked if these issues can be addressed separately. Mr. Harris made motion to increase the millage rate from 3.2899 mills to 3.4308 mills. Mr. Windes said he believes he can wait one more year before considering an increase in the millage rate. He stated he will not vote to raise the rate for next year. Mr. Boyles said he made a statement earlier in the process that it would be difficult to stomach an increase and preferred to look at a utility franchise to split up the burden. He added that appears to be off the table. Mr. Boyles referred to the historical chart on millage rates (2005 to presentj) and stated the property values today are comparable to those of 2005 when the millage rate for that year was 4.2500 mills. When property values increased, the commissioners lowered the millage rate and July 30, 2013 -13- Minute Book 69, Page 257 Okaloosa County Board of County Commissioners he believes that was the correct thing to do. It was a commitment for the county budget not to balloon unnecessarily. Hopes for a quick rebound of the market have not occurred. Mr. Boyles said the fat has already been scavenged off the county over the past five years. He stated the unfunded mandate is difficult to swallow as a taxpayer. But, because the millage rate was higher in 2005 when comparable values to today, he can second Mr. Harris’ motion to increase the millage rate. Mr. Parisot commented this is his 34° budget workshop, noting that he began attending them in 2007 prior to being elected to the Board. He stated that he has looked at the line item budget and cannot find any areas to cut in the department budgets. For clarification: Mr. Harris made motion, seconded by Mr. Boyles, to set the tentative millage rate at 3.4308 mills. The vote was taken--3 yeas, 2 nays. (Mr. Amunds and Mr. Windes voted no.) Unincorporated Parks MSTU millage rate Mr. Padgett recommended the Unincorporated Parks MSTU millage rate remain at 0.1800 mills. Mr. Parisot made motion to set the tentative millage rate for Unincorporated Parks MSTU at 0.1800 mills. Mr. Harris said he has no problem with the millage rate, commenting there is a large reserve. He asked Mr. Hofstad if there are plans to spend the $4 Million in that reserve. Mr. Hofstad replied some of those funds are encumbered but not all of them. He explained that when the economy faltered, the Board decided not to continue buying land for future parks and that reserve balance has been held. Upon inquiry by Mr. Harris, Mr. Padgett answered the 0.1800 millage rate brings in $1.1 Million in revenue annually. Mr. Windes seconded Mr, Parisot’s motion, to set the tentative millage rate for the Unincorporated Parks MSTU at 0.1800 mills. 5 yeas. Gas taxes Mr. Amunds stated the cities have sent letters to the Board on the proposed split for gas tax revenues. He said Mr. Hofstad's figures for road maintenance indicate a 70/30 split is appropriate. Mr. Amunds said he can agree with a 65/35 split. Mr. Hofstad reported the records for the previous ten years indicated the split should have been 67/33. However, the cities would like a more favorable split of 60/40 and the prior Board July 30, 2013 -~14- Minute Book 69, Page 258 Okaloosa County Board of County Commissioners honored that request. Continuing, Mr. Hofstad stated extensive studies of the records show the split should be 70/30. If the enterprise funds are backed out of the equation, he said the split is closer to 65/35. Discussion ensued regarding the formulas for distribution of the gas tax revenues. Mr. Windes made motion, to set the formula for gas distribution at 65% for the county and 35% to split among the municipalities. Mr. Amunds asked for this item to be placed on the agenda for next meeting. Mr. Boyles said he understands it is important to resolve this issue so both the county and cities can complete their budgets and supports placing it on the next meeting agenda. He asked staff to provide the exact allocations using CAFR numbers less enterprise funds. Mr. Boyles said he would like to give the cities one more opportunity to comment. Mr. Hofstad noted the agenda deadline is tomorrow and questioned the ability to make contact with the cities in a timely manner. He asked if the item can be delayed until the August 20 meeting. Mr. Amunds said he has no problem with that. Mr. Windes stated he sometimes forgets how slowly the wheels turn and withdrew his motion. Mr. Harris said since 2008 he has advocated for an increase in gas taxes and realizes it may be political suicide to support a five-cent increase in gas taxes but it gives the county an advantage in improving the aging infrastructure. Mr. Harris said each person made political commitments when running for office but then sometimes it is necessary to alter a viewpoint after getting in office. Mr. Boyles said he generally agrees with all of the things Mr. Harris said. He cautioned about reaching too far too quickly. Mr. Boyles recommended a sunset on the increase gas tax of five years, He also recommended the commissioners be realistic and pointed out it will take four votes to approve a gas tax increase. Mr. Parisot said he too has given this much thought. He spoke about the rainy July and the stormwater issues. Mr. Parisot addressed the neighborhood flooding issues and the inability of Public Works to get projects done. He said he can advocate for five cents to get projects moving. Mr. Windes said three cents for the proposed gas tax increase makes sense to him. He believes eventually RESTORE dollars will come down to help. Mr. Windes spoke on possibly establishing a July 30, 2013 -15- Minute Book 69, Page 259 Okaloosa County Board of County Commissioners stormwater utility and said the gas tax funds could be leveraged for bonding stormwater projects. He felt it to be in the county's best interest to step out on the gas tax and said he can support it at three cents. Mr. Amunds stated that he cannot support the gas tax increase at all. Upon inquiry by Mr. Parisot, Mr. Padgett stated the current budget is based on.a five-cent gas tax increase. Mr. Parisot commented that may need to be recalculated to three cents. Mr. Amunds said he supports the 65/35 formula for gas tax revenue distribution. Mr. Padgett responded by saying the numbers can be changed to reflect a 65/35 split rather than 70/30 and to reflect a three-cent gas tax increase rather than five cents. Mr. Amunds opened the floor for public comment. The following individuals came forward: Steven