Okaloosa County BOCC — August 6, 2013 — August 8 Budget Workshop — reading text

August 8, 2013 Budget Workshop A Budget Workshop of the Okaloosa County Board of County Commissioners was called to order at 6:03 p.m. at the Water & Sewer Administration Building in Fort Walton Beach. Members present were Don Amunds, Chairman; Dave Parisot, Vice Chairman (left the meeting at 9:05 p.m. and did not return); Wayne Harris; Nathan Boyles, and Kelly Windes. Also present were Gary Stanford, Finance Director, and Dave Skarzynski, Budget Analyst, Clerk’s Office; and Ernie Padgett, County Administrator. Ms. Shirley Parker, Holt, stated she wants to clear the air on some things. Mr. Amunds advised we will follow the agenda. Ms. Parker asked when the citizens may address comments made by Mr. Harris. Mr. Amunds replied that any citizen who wishes to address department budgets may do so during the discussion for that particular department and at the conclusion of the meeting, the floor will be opened for public comment. Mosquito Control Mr. John Hofstad, Public Works Director, stated this division manages mosquito control for the county. A small contribution is received from the State but the bulk of funding is from the General Fund. Graphs and charts supporting the presentation showed: performance measures for FY 2011 through FY 2014, chemical budget from FY 2005 through FY 2013, and a budget profile for FY 2005 through FY 2013 showing the total budget, labor, and State Grant. Mr. Hofstad reported the proposed budget for FY 2014 includes a $60,000 line item for chemicals and a vehicle. He advised the county has a surveillance contract with Florida State University (FSU) to provide insect counts. Mr. Hofstad said in the event of landfall by a tropical storm or hurricane, the FSU data will be helpful in securing dollars from FEMA. Upon inquiry by Mr. Amunds, Mr. Hofstad said the State stopped the aerial spraying for dog flies two years ago. Upon inguiry by Mr. Boyles, Mr. Hofstad stated the vehicle they would like to replace has 218,000 miles on it. Mr. Parisot noted it is a 2002 model. August 8, 2013 -1- Minute Book 69, Page 285 Okaloosa County Board of County Commissioners County Parks and Unincorporated Parks MSTU Mr. Hofstad used the following graphs and charts in his presentation: e County Parks General Fund Impact e Unincorporated Parks - MSTU ®e Age of Mowers He pointed out that for the FY 2013 budget, the tourist-related facilities were identified and General Fund allocations for them were replaced by Tourist Development dollars. This had a significant impact on the _ budget, reducing General Fund contributions by $428,000. Mr. Hofstad stated there are significant capital needs for the parks. He identified some of those projects: restroom for accessways, allocation for Veterans Park, development of old putt-putt golf course on Okaloosa Island, and allocation for living shoreline project. With regard to the Unincorporated County Parks MSTU account, Mr. Hofstad said they have been able to build a substantial reserve. He explained that in 2007 the Board’s strategy was to set aside money for parks facilities. However, when the economy fell, the Board decided it was not wise to purchase land and the assessment was used to build the reserve. Mr. Hofstad reported a public hearing will be scheduled for the August 20 meeting to discuss amending the ordinance which created this MSTU by using a portion of the assessment for stormwater projects. Mr. Hofstad reviewed the pie chart showing the age of the lawnmowers, noting half of them are ten years old or older. A listing of the major accomplishments for parks for the last year was also provided. Mr. Harris complimented staff on the Laurel Hill Park. He said it is his understanding the Almarante Fire Department may enter into agreement in the near future to establish a satellite station at that location. Mr. Hofstad said the division is working with the Holt Fire Department on developing a park, which is one of the objectives for next year. Mr. Hofstad said the Parks Division administers the Boating Improvement Program for installing and maintaining boat ramps and boating-related facilities, such as restrooms, parking August 8, 2013 -2- Minute Book 69, Page 286 Okaloosa County Board of County Commissioners areas, pavilions, and docks. The program also provides for removal of derelict vessels which have been identified and approved for removal by the Florida Fish and Wildlife Commission. Staff provides oversight of installation and replacement of boating restriction signs and pilings (No Wake Zone, Minimum Wake Zone, etc.). Municipalities may apply for $15,000 in Boating Improvement funds per year. Upon inquiry by Mr. Parisot, James Puckett (Parks Division) stated they have removed four derelict vessels using Boating Improvement Program monies. Mr. Parisot commented that a large number of unincorporated parks have no restroom facilities, not even a port-o-let and recommended the funds be evaluated for this basic need. Mr. Carl Bane, Crestview, stated the Unincorporated County Parks Fund has $4.6 Million in reserves and asked about expenditure of those reserve dollars. Mr. Hofstad said that was the correct number when the FY 2014 budget was prepared but it will be closer to $4 Million in cash carried forward for the coming year. Upon inquiry by Mr. Bane, Mr. Amunds said there is no statutory requirement of a minimum amount for this fund. Upon further inquiry by Mr. Bane, Mr. Parisot explained these funds have a restricted use and can only be used for unincorporated county parks. He referred to a dual taxation lawsuit in 1984 which led to establishment of this MSTU. Mr. Rob English, Laurel Hill, asked for the charts to again be displayed. He asked why they show only 2007 through 2014. Mr. Hofstad replied that is just the window which was chosen. Mr. English felt the comparison should show the years before the artificial housing boom. Mr. Parisot commented that he believes there is misconception everything in this budget is from property taxes and explained the other sources of revenue. Mr. Amunds stated the slide will not be changed tonight but it could be amended to show more data. Mr. Harris suggested showing the information from the beginning of the MSTU. Mr. English told the commissioners they seemed to be pretty quick on raising taxes but not returning them. Mr. Harris replied the taxes have not been increased in five years. Mr. Dave Sherry, Okaloosa Island, asked if the county maintains stormwater projects outside the MSTU taxing area. Mr. Hofstad said the MSTU is the unincorporated portion of the county and the county does not go into the cities to perform stormwater work. Mr. Sherry said it is his understanding a MSBU (Municipal August 8, 2013 ~3- Minute Book 69, Page 287 Okaloosa County Board of County Commissioners Services Benefit Unit) is passed by ordinance but a MSTU (Municipal Services. Taxing Unit) is approved by the voters in the taxing district. He expressed concerns that the Board could amend the ordinance creating the Unincorporated Parks MSTU and use those funds for another purpose than what the voters approved it for. Mr. Hofstad noted we do not have legal counsel tonight to address these concerns. He advised that changes to the MSTU require a simple majority vote of the Board and this concept has been thoroughly vetted by the County Attorney and Special Counsel from Tallahassee. Mr. Sherry referred to the substantial reserve in this fund and asked if consideration has been given to lowering the millage. Mr. Hofstad explained there are “different colors of money” supporting the County Parks Division. There is support from the General Fund, the MSTU, and the TDD. Mrs. Rebecca Sherry, Okaloosa Island, questioned the different assessment for hotels in the MSTU. Mr. Parisot told her the Unincorporated County Parks MSTU is by a millage percentage. Mr. Hofstad said the Okaloosa Island MSTU is used for a totally different purpose. Mr. Steve Menchel, Destin, suggested that if Tourist Development funds are being used for park bathroom improvements, a plaque should be established on the facility acknowledging that contribution. Upon inquiry by Mr. Wendell Batey of Crestview, Mr. Hofstad said the millage rate for the Unincorporated Parks MSTU has not changed. Mr. Batey said he believes there are enough county parks right now and no more should be developed until they become over populated. Mr. Hofstad said there are different types of parks. He reported additional boat trailer parking is needed at Wilderness Park because it is very crowded. Mr. Hofstad also referred to development of neighborhood parks, such as the one at Silver Oaks. Extension Service Mr. Larry Williams, Extension Agent, stated the Okaloosa County Extension Office is an extension of the University of Florida and is a grassroots approach using local advisory committees to provide guidance and recommendations for programming based on local community needs. The Extension Service develops and delivers research-based educational programs, workshops, August 8, 2013 -4- Minute Book 69, Page 288 Okaloosa County Board of County Commissioners newsletters and publication in the areas of agriculture/small farms, family and consumer sciences, horticulture, natural resources, marine science, and 4-H/youth development. Funding for the Extension Service is from the General Fund partnered with federal and state contributions. Mr. Williams’ detailed presentation outlined the many services offered by the Extension Office. Tourist Development Department; Emerald Coast Convention Center Mr. Daniel O’Byrne, Tourist Development Department (TDD) Director, stated he would like to start at the beginning with development of the Tourist Development Department. He advised that he will also address the Emerald Coast Convention Center (ECCC) in his presentation. Tourist Development is responsible for a unified marketing and servicing program which helps to increase economic growth activity through tourism on behalf of Destin, Okaloosa Island, Fort Walton Beach, Mary Esther, and Cinco Bayou. The TDD’s top priority is to help increase the overall lodging occupancy levels. Mr. O'Byrne remarked that we must be better than our neighboring counties. Mr. O'Byrne stated the Tourist Development Council (TDC) makes recommendations but it neither earns money nor spends it. He said those decisions are made by the Board and must comply with all county policies. Mr. O’Bryne explained tourist development taxes were established in 1989 and in 1999 a decision was made to add the Convention Center. He showed slides demonstrating the uses and proposed budget for each of the five pennies. The commissioners posed a number of questions. In response to some of those questions, Mr. O'Byrne responded that 70% of the taxes come out of Destin but Destin also has 70% of the beaches. He advised that the 30-year bond for the ECCC was paid off in ten years. Mr. Parisot said some of the math just does not add up on three of the charts. There was also a short discussion on the proposed Christmas campaign by Peter Mayer Advertising. Mr. Boyles said he is hopeful we are turning the corner with regard to the Mark Bellinger affair. He stated there should be focus on greater use of the ECCC. Mr. Windes reported that the TDC discussed and voiced support for expanded uses of the ECCC. August 8, 2013 -5- Minute Book 69, Page 289 Okaloosa County Board of County Commissioners Mr. Amunds explained there was proposed legislation to allow use of TD funds to offset Public Safety expenses during the tourist season. However, that legislation did not pass. Mr. Amunds reported there are several groups working with the Legislature on amending the uses for tourist development funds. Mr. Tom Nelson, Baker, said he feels cultural activities should be planned in conjunction with a Christmas campaign. Upon inquiry by Mr. Nelson, Mr. O’Byrne said the total cash on hand is $15