Okaloosa County BOCC — November 4, 2014 — 9-15-14

September 15, 2014 Final Budget Hearing The Final Budget Hearing for the Fiscal Year 2014-15 Budget was called to order at 6:00 p.m. at the Water & Sewer Administration Building in Fort Walton Beach. Members present were Charles K. Windes, Jr., Chairman; Nathan Boyles, Vice Chairman; Dave Parisot; Wayne Harris; and Don Amunds. Also present were Gary J. Stanford, Finance Director, and Dave Skarzynski, Budget Analyst, Clerk’s Office; Ernie Padgett, County Administrator; and Greg Stewart, County Attorney. Mr. Stanford stated this is the final public hearing, noting many public workshops have been held and the Tentative Budget Hearing was held on September 4. The notice for tonight’s hearing was published in the Northwest Florida Daily News within the last five days. Continuing, Mr. Stanford stated the millage rate proposed tonight is the same as that adopted at the Tentative Budget Hearing. He outlined the legal requirements for tonight’s hearing and detailed the proposed millage rates: e Amend and adopt any changes to the Tentative Budget e Re-compute any changes to the proposed millage rate e Publicly announce the percent, if any, by which the re- computed millage exceeds the rolled-back rate (RBR). Taxing Authority RBR Proposed Percentage County 3.3244 3.4308 + 3.20 Unincorporated MSTU 0.1747 0.2990 + 71.15 Aggregate 3.4095 3.5729 + 4.79 Mr. Stanford stated there are a number of charts, graphs, and tables to identify the different changes in the proposed budget to FY 2015 in comparison to the current budget. Mr. Padgett stated he will first read his budget transmittal letter into the record and then he will read the proposed Memorandum of Agreement between the Board and the Sheriff into the record. The transmittal letter Mr. Padgett read is the same letter as the one he read into the record at the Tentative Budget Hearing on September 4, 2014. The following are the highlights of that letter: September 15, 2014 -1- Minute Book 71, Page 254 Okaloosa County Board of County Commissioners e This budget calls for a very slight increase in the MSTU millage that will be used for stormwater projects. The increase will generate an additional $781,000. e Additional positions have been added in this budget that will enable us to regain some ground lost in several departments. e The proposed budget will allow employees to receive a $500 per year salary increase. e This proposed budget will increase the General Fund Reserve by $426,436 for a total reserve of $3,796,231. He quickly reviewed a number of supporting slides. e Aggregate Millage Comparison (seven lowest in state) e Aggregate Millage Comparison (by taxable value) e County Debt Per Citizen e Total Debt (last ten years) Mr. Padgett pointed out Standard & Poor's has raised the county’s rating from AA- to AA. He explained Okaloosa County’s economy is strong with a projected per capita effective buying income of 109% of the national level. Mr. Padgett said budgetary flexibility is strong with $6.6 Million in unassigned general fund reserves. Okaloosa County levies 3.4308 mills that is well below the 5.8907 maximum it could levy. As mentioned earlier, Mr. Padgett read the proposed Okaloosa County Sheriff’s Office Compensated Absences Fund Transfer Agreement. If approved, the agreement will permit additional funding of the budget of the Okaloosa County Sheriff's Office (OCSO) for Fiscal Year 2015. The oOCcSO currently holds $1,369,000 which has been encumbered to pay for compensated absences of employees in the Sheriff's Office. Based on an analysis by the county’s external auditor, this amount is not required to be held to pay for the compensated absences. The OcSO agrees to unencumber and return to the Board at least $825,000 as excess fees by October 31, 2014. Both parties agree to the amount and purpose of the unencumbered funds. The Board agrees upon transfer of the $825,000 to appropriate $500,000 to the ocso for use in the FY 2015 Budget for the purposes of Capital expenditures needed by the Sheriff's Office. It shall be the Board’s sole discretion how to use the remainder of the excess fees. September 15, 2014 -2- Minute Book 71, Page 255 Okaloosa County Board of County Commissioners Mr. Parisot made motion, seconded by Mr. Boyles, to approve the agreement. After consulting with the County Attorney, Mr. Windes stated the motion will be held and allow for public comment. Mr. Steve Czonstka, Niceville, stated at one time there was a question on the possible use of tourist tax dollars to fund a portion of the Sheriff's operations and asked the status on that concept. Mr. Stewart replied no tourist tax dollars have been incorporated into this budget. He advised the tourist development plan has not been modified to allow use of those dollars in this manner. Mr. Czonstka encouraged the Board to pursue that option. Mr. Czonstka thanked Mr. Amunds and Mr. Parisot for their service as county commissioners and thanked Mr. Padgett for his service as County Administrator. Mr. Boyles said he believes all commissioners support use of the tourist development tax dollars for this function. He stated negotiations on this item are ongoing, adding perhaps the Board can make that transfer in the future. The motion previously made by Mr. Parisot and seconded by Mr. Boyles to approve the agreement between the Board and the Sheriff's Office regarding the compensated absences fund was brought back to the table. 5 yeas. Mr. Stanford read the proposed resolution to adopt the final levying of ad valorem taxes for the County Parks MSTU for FY 2014-15. The FY 2014-15 operating millage rate is 0.2990 mills which is greater than the rolled-back rate of 0.1747 by 71.15%. Mr. Harris made motion, seconded by Mr. Parisot, to adopt the resolution as read. 4 yeas, 1 nay. (Mr. Amunds voted no.) RESOLUTION NO. 14-154 Mr. Stanford read the proposed resolution to adopt the final levying of ad valorem taxes for Okaloosa County for FY 2014-15. The FY 2014-15 operating millage rate is 3.4308 mills, which is greater than the rolled-back rate of 3.3244 mills by 3.20%. Mr. Amunds made motion, seconded by Mr. Boyles, to adopt the resolution as read. 5 yeas. RESOLUTION NO. 14-155 September 15, 2014 -3- Minute Book 71, Page 256 Okaloosa County Board of County Commissioners Mr, Stanford read the proposed resolution to adopt the final budget for FY 2014-15 in the amount of $310,010,770. Mr. Amunds made motion, seconded by Mr. Harris, to adopt the resolution as read. 5 yeas. RESOLUTION NO. 14-156 Mr. Parisot cited the number of budget workshops and budget hearings he has attended since 2007, both as a private citizen and as a county commissioner. He expressed concerns about the decisions to reduce personnel and not to replace vehicles and equipment. Mr. Parisot said he believes that trend is turning around. He stated stormwater issues have been dear to him and thanked his fellow commissioners for their support in increasing the MSTU millage rate for stormwater. Mr. Padgett said he does want to clarify the $500 employee raise is across the board. The commissioners acknowledged the statement, saying that was their understanding. Mr. Padgett was thanked for his service to the county and for his work in the budget area for the last two years. ADJOURNMENT There being no further business to come before the Board, the hearing was adjourned at 6:34 p.m. DON W. HOWARD CHARLES K, WINDES, JR., CHAIRMAN CLERK OF CIRCUIT COURT BOARD OF COUNTY COMMISSIONERS (These minutes were transcribed by Teresa Ward.) September 15, 2014 n4- Minute Book 71, Page 257 Okaloosa County Board of County Commissioners