Fort Walton Beach Council minutes — 05-20-08 special minutes — reading text

Manager noted this would impact the large users in the business community. She also noted it would require an ordinance and staff would prepare the budget based on Council guidance. There was some discussion on the affect to low income families and businesses, and the Attorney General opinions that the caps and limitations are improper. Mr. Minich moved to remove the residential and commercial utility tax caps and residential usage exemption. Mr. Hartwell seconded motion. The City Attorney mentioned she was not the attorney in 2000. She said her opinion was not requested for information on this item and as they go forward she will put out an opinion that them current with brings what has occurred. She said she thought she knew where the opinion came from and thought it may have changed. The City Manager said before any ordinance is prepared it will be brought forward to the City Attorney for review. The Mayor called for the vote on the motion to remove the residential and commercial utility tax caps and residential usage exemption and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). Other Issue: Interfund Transfers Policy Decision: Should the current allocation of shared expenses be continued? The presentation included information that the purpose of the Cost Allocation Plan is to provide reasonable and proportionate reimbursement to the General Fund for services provided to other funds; Interfund transfers to the General Fund are based on the 2003 Cost Allocation Plan adjusted for inflation plus other shared expenses not considered in the Cost Allocation Plan; the Golf Fund does not reimburse 400K per the Cost Allocation Plan in order to permit the fund to retain all revenues for operations and to rebuild net assets; and as feasible, a portion of the enterprise funds' surplus is transferred to the General Fund as a resource for General Fund expenditures. This practice is permissible by GASB. Staff recommendation is to continue current method of allocating shared expenses via interfund transfers. Mr. Minich moved to remove from discussion the Golf Fund reimbursement portion from any policy decision made tonight. Mr. Holmes seconded motion. The City Manager mentioned it was not the intent to discuss the golf course tonight and to continue the current method of allocating expenses, including the exemption for the golf course and then it will be addressed at a workshop meeting on June 10th. Special Council 5- 20- 08 145 BUDGET POLICY ISSUES cont. Other Issue: Interfund Transfers cont. st The City Manager also mentioned there is a programmed increase on June 1 for the Golf Course which she will hold in abeyance until Council makes a decision. The Mayor called for the vote on the motion to remove from discussion the Golf Fund reimbursement portion from any policy decision made tonight and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). Mr. Minich moved to continue the method of allocating shared expenses via interfund transfers. Mr. Garvie seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). Outside Aaency Fundina Policy Decision: Should the City continue the current level of funding to outside agencies? The presentation included information that the following agencies receive City funding: Panhandle Animal Welfare Society, Chamber of Commerce, and Economic Development Council; Council has in years past questioned the benefit citizens and businesses receive from the Chamber and EDC; Council has in years past expressed an interest in decreasing funding to outside agencies; outside agencies are traditionally afforded the opportunity to present their request to Council at the August budget workshops; and reducing funds to outside agencies would free revenues to maintain funding for existing City programs and services. Staff recommendation is to reduce funding to the Chamber of Commerce and Economic Development Council in FY 2008-09 to $ 10, 000 each in the General Fund. The City Manager stated she called both the EDC and the Chamber and she met with the Chamber President today who feels strongly about the Chambers commitment to the community, what they have done for the City and the benefit they believe the community receives for the full amount of money. She said it may be premature to decrease the funding without giving them an opportunity to present their case to Council and it may be best to defer the decision until the August budget meetings. It was questioned whether the amount to the Panhandle Animal Welfare Society ( PAWS) would remain the same. The City Manager explained that the City is contractually obligated to PAWS to provide animal control services for the City, which the City could not do for $80,000 a year and staff is not suggesting any decrease for that. The request from the Burnette- Harmon-Wood Community Resource Center to assist with funding the future Burnette Community Park was questioned. Jeff Peters, Parks & Recreation Director, explained Mrs. Burnette owns a piece of property in the Sylvania Heights area and wants to lease the property to the City to put a neighborhood park in the area. He said last year he had engineering draw up a map site plan/ cost scenario and discussed through email with the City Attorney about the stipulations on a lease agreement. He said it is in their hands to provide the City a lease agreement for the City Attorney to review to see if it will be beneficial to the City to invest playground equipment on that plot. The City Manager clarified that the City is not requesting Council earmark a certain amount of funding for the request. She explained the City receives several types of different outside agency requests every year and this is a typical request. She said over the years Council decreased what they provide to outside agencies so fewer and fewer are received. She said this may be a future capital project in Parks and Recreation but until there is a lease the City cannot apply for any grant funding for that particular project. It was mentioned that a lot of the area in the Lovejoy area belongs to the County and it was suggested that it should be deferred to the County. It was noted the request is not being presented so there was no need to discuss it at this time. 146 Special Councrl' 5- 20- 08 BUDGET POLICY ISSUES cont. Outside Aaency Fundina cont. The City Manager clarified that staff recommendation is now to defer any decision on outside agency funding until August and allow them to make a presentation at that time. Mr. Garvie moved to defer any decision on outside agency funding until August to allow them to make a presentation at that time. Dr. Pullen seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). CONCLUSION The City Manager thanked Council and acknowledged the decisions made were difficult, there will probably be more to make but this is the first step. She said staff and she remain committed to bringing Council a budget that is affordable yet maintains the highest level of services they can possibly do. ADJOURNMENT Being no further business, the meeting adjourned at 8: 25 p. m. Vr/!:: kJ ~~ TtJ; CITY CLERK ddm U