Fort Walton Beach Council minutes — 08-02-07 special minutes — reading text

49 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA AUGUST 2, 2007 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Thursday, August 2, 2007 at 5: 30 p. m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Virgil Miller, Dennis Reeves, Dr. Wayne Pullen, Jim Hartwell, and Mike Minich Absent: Mike Holmes and Bill Garvie Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Lisa Absher, Finance Director; and Department Directors CALL TO ORDER The Mayor called the meeting to order. PLEDGE The Mayor led in the Pledge of Allegiance. TENTATIVE AD VALOREM MILLAGE RATE Consideration of setting the tentative ad valorem millage rate for FY 2007- 08. Charlotte Dunworth, Budget/Grant Manager, presented a power point and explained that the millage tax rate for the City may not exceed 95% of the roll- back rate. She advised there are no penalties from the State in the form of reduced revenue sharing as long as the City meets the majority vote requirements for the final adopted millage rate. Council questioned whether a unanimous vote of the governing body means a unanimous vote of the members present, or a unanimous vote of the full governing body, and what happens if there is an unfilled vacancy on the Board or if someone is not present. The City Manager explained that question was asked to the Department of Revenue, and their definition is that ' a unanimous vote of all members of the full body is required to levy the previous years' millage rate. If there is an unfilled vacancy a unanimous vote of all current members of the governing body is She clarified all members would have to be required.' present only if there is a vacated seat, that an absence is not considered a vacancy, and if all members are not present there is no way there can be a unanimous vote. She stressed it would take a unanimous vote from Council for the current rate to become final for next year, and noted a unanimous vote wasn' t needed to set the tentative millage rate this evening. The City Manager noted once the tentative millage rate is set, Council can go below the rate at any time but cannot go above it without the additional expense of formal notification to each city taxpayer. She stated staff proposes the tentative millage rate be set at 4. 1986 mills. The Mayor noted the importance that all Council members be present at the September 5 and September 19 budget meetings. 50 Special Council 08/ 02/ 07 TENTATIVE AD VALOREM MILLAGE RATE ( CONT) Ms. Dunworth continued her presentation and discussed revenue, budget, and property owner impact; future millage rate and that a cap on future property tax revenues will be based on personal income growth and new construction; future property tax to include a " Super Homestead" exemption; and that once the tentative millage rate is set, it cannot be increased without the additional expense of formal re- notification to each taxpayer. Discussion ensued regarding the Communications Services Tax and the adjustment to be made due to overpayment to the City from a CST vendor; the Public Service ( Utility) Tax and the public service tax cap, and other funds that may be better addressed during the budget hearings. The City Manager explained that due to new construction and renovations and improvements in the City, the assessed value grew by 9. 6%, and the real revenue loss is about 9. 5%. She is recommending from a staff level, to go to a rollback rate less 5%, which represents 9. 7% cut to the millage rate. She advised the budget prepared was based on the 4. 1986, and Council has the discretion to set millage rate lower than the 4. 1986 or up to 4. 5658 or beyond if a voter referendum is desired. Mr. Miller moved to set the Fiscal Year 2007- 2008 tentative millage rate for ad valorem taxes at 4. 1986 mills. Motion died for lack of a second. Dr. Pullen moved to set the Fiscal Year 2007-2008 tentative millage rate for ad valorem taxes at the same rate as last year, 4. 6458 mills. Mr. Hartwell seconded motion. Dr. Pullen offered that by setting a tentative millage rate higher will allow Council greater flexibility when discussing the budget, and Mr. Hartwell and Mr. Minich offered their support of this motion. Mr. Reeves stated he is in favor of the recommended millage rate but understands Council's desire for flexibility. Mr. Miller expressed his disappointment at not lowering the millage rate and feels the higher rate is a disservice to the citizens of the City. Council questioned whether the City Manager was expecting any changes to the budget. She advised that some difficult choices have been made into equipment replacement and additions from Staff. She also discussed the Alternative Service Delivery Study, which will come before Council in the middle of August, but will not be ready to be implemented until January, and the budget would be amended at that time to decrease the revenues if that were an issue. She stated she did not see any adjustments right now, but that setting the millage rate at 4. 1986 does not give much flexibility but she felt that was her charge in the development of the budget. The Mayor called for the vote on the motion and it carried by a vote of 3 to 2 with Pullen, Hartwell, and Minich in favor and Miller and Reeves opposed ( Holmes and Garvie absent).  51 Special Council 08/ 02/ 07 TENTATIVE AD VALOREM MILLAGE RATE ( CONT) Mr. Minich moved to confirm the dates and times of the public hearings for the budget as follows: Special Council meetings on Wednesday, September 5, 2007 at 5: 30p.m. and Wednesday, September 19, 2007 at 5: 30 p. m. Mr. Hartwell seconded motion and it carried unanimously with Miller, Reeves, Pullen, Hartwell, and Minich in favor ( Holmes and Garvie absent). The Mayor advised that the public hearings to discuss the budget will begin next week and are scheduled Wednesday, August 8, Thursday, August 9, and Monday, August 13, all at 5: 30 p. m., and if necessary will continue on Wednesday, August 15, at 5: 30 m.p. ADJOURNMENT There being no further business, the meeting adjourned at 6: 15 p. m. O~~EDi1~ ~ a. ' A1./' Dl- C TV CLERK ~ Ive