Fort Walton Beach Ordinance — 2145--Amend Charter Ballot Ref on Budget Cap — reading text

READING DATE lot 2nd ORDINANCE 2145 AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, FLORIDA AMENDING THE CITY CHARTER TO CREATE A NEW SECTION TITLED " LIMITATION ON BUDGET EXPENDITURES"; PROVIDING FOR A REFERENDUM ON THE CHARTER AMENDMENT; PROVIDING FOR A BALLOT QUESTION; PROVIDING FOR A VOTE AT THE NOVEMBER 5, 2024 ELECTION ON WHETHER TO ESTABLISH A LIMITATION ON BUDGET EXPENDITURES IN THE CITY OF FORT WALTON BEACH, SUBJECT TO CERTAIN EXCEPTIONS AS PROVIDED IN THE CHARTER; PROVIDING FOR COORDINATION WITH THE SUPERVISOR OF ELECTIONS; PROVIDING FOR CONFLICTS; SEVERABILITY; AND AN EFFECTIVE DATE. SECTION 1. AUTHORITY. The authority for enactment of this Ordinance is Section 166.031, Florida Statutes. SECTION 2. FINDINGS OF FACT. WHEREAS, Florida Statutes Section 166. 031( 1) provides, in part, that "[ t]he governing body of a municipality may, by ordinance,..., submit to the electors of said municipality a proposed amendment to its charter, which amendment may be to any part or to all of said charter except that part describing the boundaries of such municipality"; and WHEREAS, on March 8, 2021, a group of citizens submitted petitions for the three proposed charter amendments to the Okaloosa County Supervisor of Elections, including but not limited to an amendment to the City Charter that would establish limitations on the City' s budget; and WHEREAS, on March 21, 2021, the Supervisor of Elections certified the petitions for the proposed charter amendments to be placed on a future ballot, but such amendments have not yet been placed on a ballot for consideration by the voters of the City of Fort Walton Beach; and WHEREAS, the City Council of the City of Fort Walton Beach endeavors to ensure that the voice of the citizens of the City of Fort Walton Beach are heard and expressed through the referendum process in the next general election, to be held on November 5, 2024; and WHEREAS, the City Council has proposed an amendment to the City Charter to add Section 35 " Limitation on Budget Expenditures" for purposes of establishing specified limitations on budget expenditures and appropriate exemptions; and, WHEREAS, the proposed charter amendment provides that without prior referendum and approval, those annual budgeted expenditures hereinafter referred to as " the limited expenditures" shall be limited to an increase from the prior year' s expenditures in an amount which is the lesser of three percent ( 3%) or the percentage change of the then current Department of Labor, Bureau of Statistics, Consumer Price Index ( CPI) ( all items) as calculated for the preceding calendar year, such limitation herein referred to as the " spending cap", provided however, the spending cap can never be less than zero; and  WHEREAS, the limited expenditures will include total expenditures for personnel services that are to be paid for all services from all funds combined, and also for operating expenses that are to be paid for all services combined from the general fund, subject to certain exceptions ( exceptions include gifts, grants, emergencies and special assessments as further set forth herein); and WHEREAS, the City Council desires to establish a spending cap and limit the budget to or CPI to effectively limit unnecessary spending but recognize the overall the lesser of 3% change in consumer prices of goods and services over time; WHEREAS, the City Council has established appropriate exceptions to the spending cap and budget limitations to ensure that the City continues to effectively and efficiently meet the needs of the residents, business owners and visitors of the City; and WHEREAS, the City Council desires to now place such charter amendment before the voters for consideration; and WHEREAS, the City Council of the City of Fort Walton Beach has deemed this Ordinance to be in the best interest of the public health, safety and welfare. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, AS FOLLOWS: SECTION 3. RECITALS ADOPTED. The foregoing " Whereas" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this ordinance upon adoption hereof. SECTION 4. CHARTER AMENDMENT. For purposes of interpreting the revisions, text that is underlined is an addition to the existing text of the City Charter. LIMITATION ON ANNUAL BUDGET EXPENDITURES. If the ballot language is approved, it would amend the City Charter by establishing limitations on budget expenditures subject to certain exemptions. LIMITATION ON ANNUAL BUDGET EXPENDITURES. Without 2rior referendum and approval, those annual budgeted expenditures hereinafter referred to as " the limited expenditures" shall be limited to an increase from the prior ear' s ex enditures in an amount which is the lesser of three ercent 3% or the percentage chane of the then current Department of Labor, Bureau of Statistics. Consumer Price Index [ CPI] ( all items) as calculated for the preceding calendar year, such limitation herein referred to as the " spending cgp" provided however, the sending cap can never be less than zero. The limited ex enditures shall be: 1. Total ex enditures for personnel services that are to be paid for all services from all funds combined.  2. Total ex enditures for o eratin expenses that are to be paid for all services combined from the general fund. 3. Expenditures for capital protects. capital outlays, and capital improvement programs, other than those made from unrestricted reserves or from the proceeds of debt, provided such debts shall have been either as a result of the issuance of general obligation bonds or other obligations, including loans the debt service of which shall be secured and paid for by revenue sources other than the ad valorem taxes. Notwithstanding the foregoing limitations the Mending cgP may be exceeded but not increased for the calculation of future budgets, when such additional expenditures are made from the following described sources or in the event of the described circumstances: Emergency expenses not otherwise ) a able from legally available reserve accounts. Emergency expense means an expense which is necessary to ( a) prevent an imminent threat to the health, safety or welfare of any person within the City, b) prevent imminent and material damage or loss to any property or any other material assets of the Cit c avoid the sus ension of apy necessM utility or life safety services in the City, or ( d) avoid criminal or material civil liability on the part of the City.JD Eme enc •" does not mean a revenue shortfall. Determination of what constitutes an emergency shall be subject to judicial review. 2. Expenditures funded by gifts or grants. Grants being defined herein as any funding the City receives from any source that does not need be refunded or re aid but not including revenues that are collected by other governmental entities and shared with the City. including without limitation, taxes, fees or assessments which are required to be sharedpro- rata. Matching Grants are also not subject to the spending cap, provided however that in the event the gTant is for personnel services the matchiEg portion would be subject to the spending cap. 3. Ex enditures made from gLny funds which the City receives from either the Federal Government. the State or County that are provided in response to a natural disaster or other federal or state declared emergency and are intended to cover the ex enditures necessary to respond to the disaster or emergency 4. Expenditures made from any funds which the City receives from special assessments. All terminology utilized herein, such as " Rersonnel services". " operating expenses", p-eneral fund", " services", " departments", " capital projects", " capital outlays" and " capital improvement prop rams" - have reference to the categories and terminology appearing in the most recently adopted budget. SECTION 5. OFFICIAL BALLOT QUESTION. The ballot to be used in the referendum election shall be in full compliance with the laws of the State of Florida, and shall be in substantially the following form:  OFFICIAL BALLOT BUDGET LIMITATIONS SHALL THE CITY OF FORT WALTON BEACH' S CHARTER BE AMENDED TO LIMIT THE CITY' S PERSONNEL AND OPERATING EXPENDITURES TO AN AMOUNT THAT MAY NOT EXCEED THE PRIOR YEAR' S ACTUAL EXPENDITURES BY MORE THAN 3% OR THE PERCENTAGE INCREASE, IF ANY, IN THE CONSUMER PRICE INDEX, WHICHEVER IS LESS, WITHOUT PRIOR REFERENDUM APPROVAL, SUBJECT TO CERTAIN EXCEPTIONS INCLUDING EXCEPTIONS FOR EMERGENCIES, GRANTS, GIFTS AND SPECIAL ASSESSMENTS? YES C[i7 SECTION 6. NOTICE OF ELECTION. The above Charter amendment contained in this ordinance shall be sent to a referendum election and shall become effective if a majority of voters vote to approve the amendment in the general election on November 5, 2024. An amendment approved by City voters as provided by law shall be effective immediately and become a part of the City Charter. If approved, the City Clerk is requested to promptly file the amended Charter with the Department of State, as required by Section 166. 031( 2), Florida Statutes. SECTION 7. PLACES OF VOTING, INSPECTORS AND CLERKS. All qualified electors residing within the City shall be entitled and permitted to vote at such referendum election on the proposition provided herein. The time and places of voting and the inspectors and clerks of the referendum election to be held on November 5, 2024 shall be those designated by the Okaloosa County Supervisor of Elections in accordance with law. SECTION 8. VOTE -BY -MAIL. Any electors participating in said referendum shall be entitled to cast their ballots in accordance with the provisions of the laws of the State of Florida with respect to voting by mail. The form of ballots to be used in such referendum election for these voters shall be the same as used at the polling places for such election. SECTION 9. EARLY VOTING. Adequate provisions shall be made for early voting as required by § 101. 657, Florida Statutes. The form of ballots to be used in the referendum for early voting shall be the same as used in the polling places for the election. The Supervisor of Elections shall designate the early voting dates, times and locations. SECTION 10.