Fort Walton Beach Council agenda — 09-25-2007 regular agenda — reading text

the budget process and, in addition, the fee schedule also includes the future year rates initially established in April 2006; as part of the get-well plan for the golf course there was a multi- year rate schedule to get them where they need to be. She commented during discussion there was no direction to amend the 2008, 2009, or 201 0 fee schedule so they were left as originally considered in March and because they are part of the fee schedule they are part of the resolution. The reduction in County resident fees to be the same as a City resident was questioned. The City ~",.' Manager mentioned that was one of the recommendations brought forward by the golf club administrator during the budget process. She reviewed the different rate for dependents under the 12 month membership rate and the six month membership rate and the condo bulk purchases. She acknowledged that the golf club administrator brought forward the changes to the fees. The Mayor opened the floor for public input. As there was none, the public input was closed. Mr. Minich moved to approve Res. 07- 19 as presented. Mr. Garvie seconded motion.  9- 5- 07 Spedal Council 123 R~$. 07 -19cont. Discussion included an objection expressed on reducing the County resident's fee to make their rate the same as the City resident' s. Comments included that it is not fair tQ the City resident's who pay the taxes to give the same benefit to those in the County who do not pay taxes for the City' s operations; that there should be some difference between being a County resident and a City resident; and that the golf course is an enterprise fund and was told to make money and they should be allowed to make money the way they think they can. The Mayor called for the vote on the motion to approve Res. 07- 19 as present and it carried by a vote of 5 to 2 with Holmes, Miller, Reeves, Garvie, and Minich in favor and Pullen and Hartwell opposed. n RES. 07- 20 - PROPOSED MILLAGE RATE The Mayor read the resolution by title. A RESOLUTION SETTING THE PROPOSED MILLAGE RATE FOR THE CITY OF FORT WALTON BEACH, FLORIDA, FOR FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008, AND PROVIDING FOR AN EFFECTIVE DATE. The Mayor stated the proposed Millage Rate for FY 2007- 2008 is 4. 1986 mills, which is 5. 0% below the rollback rate of 4.4196 mills. The rollback rate is the millage rate that will provide the same Ad Valorem tax revenue as was levied during the prior year. The 5. 0% decrease is the percentage decrease in property taxes. The Mayor stated the reason for setting the millage rate at 4. 1986 mills is to provide sufficient revenues to balance the proposed General Fund budget. The Mayor opened the public hearing and asked for comments on the proposed millage rate. Kabe Woods, 240 Brooks Street, speaking as President of the Okaloosa Citizens Alliance, Inc. presented their point of view, shared their thoughts on areas in the budget that can be improved and suggested that No and Stop be added to the vocabulary; to reduce overall spending, reduce ad valorem tax collections and approve a millage rate of 4. 19; that by policy the City government will be a high performance organization with fewer and better compensated employees; that all resource allocation decisions be made using public safety, essential service, and quality of life as priorities; to look for an find areas for consolidation of services between the County and Cities, find areas where service can be improved and cost lowered; to find services that can be outsourced to private. enterprise; to re- examine every capital project against the stated priorities, look for possible elimination, changes in approach, and timing of projects; to look at moving from a defined benefit to a defined contribution retirement plan; and to use qualified citizens or citizen organizations to help reduce the need for studies. As there was no one further who wished to speak the public hearing was closed. J Mr. Garvie moved to approve Res. 07- 20 to set the proposed millage rate for the City of Fort Walton Beach at 4.1986 for the Fiscal Year beginning October 1, 2007 and ending September 30, 2008. Mr. Reeves seconded motion. were not During discussion comments included the millage rate could go lower; that further reductions discussed; money is spent and appropriate taxes are not collected; that even with the 4. 1986 millage rate funds would still need to be taken from the reserve fund to balance the budget; and that the budget can be amended at any time during the year. The Mayor called for the vote on the motion and it carried by a vote of 6 to 1 with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor and Miller opposed. 124 Special Council 9- 5- 07 AMENDED ORD. 1740 - BUDGET FOR FY 07/ 08 The City Attorney read the ordinance by title. AN ORDINANCE OF THE CITY OF FORT WALTON BEACH MAKING APPROPRIATIONS FOR CERTAIN EXPENDITURES, EXPENSES, CAPITAL IMPROVEMENTS AND CERTAIN INDEBTEDNESS OF THE CITY OF FORT WALTON BEACH, FLORIDA, FOR THE YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER30, 2008, AND PROVIDING FOR AN EFFECTIVE DATE. The Mayor opened the public hearing. As no one wished to speak. the public hearing was closed. Dr. Pullen moved to adopt Ord. 1740 on first reading with a change to item 4, line 40 of the first sentence to state " Finance Director and the City Manager". Mr. Miller seconded motion. Discussion included comments on the need for checks and balances in the City and both 9harter Officers should approve any transfers; the belief it is in the Charter to have the Finance Director in the process; and the need for two people involved in the transfer of funds. Mr. Minich moved to amend the motion to delete the words " Finance Director andlor the" from the first sentence of item 4. Mr. Reeves seconded motion. Further comments included the belief that the opinions of the City Attorney have been straightforward on the issue; that the City Manager is the one who has the discretion; and that nothing will be undocumented or done in a manner that will be detrimental to the City. The City Attorney explained and clarified that the portion of the Charter referenced by Mr. Miller also subjects the Finance Director to the supervision and control of the City Manager. She further explained her interpretation of the Charter as it relates to budget transfers. The City Manager stated it was a proposed change from the City Attorney for legal purposes and it will not in anyway change the administrative policies on how they operate intemany, and there are various thresholds of approval. Further comments included that ata future workshop Council will have a Charter review to discuss span of cOhtrol, responsibility; and checks and balances. It was questioned who determines policy for the City ,the City Attorney or Council and it was expressed that the Charter says " and other duties as the Couhcil may by ordinance provide"; and the preference voiced for two people to approve the transfer offuhds. The City Attorney expressed she is the City Attorney and she does not set policy and she had put out the opinion regarding consistency with the Charter. She s- aid back in April, and previous to that, there . was confusion on what the job duties of the Finance Director are and by clarifying it in the ordinance [". . eliminates' onepiece of confusion. She said Council sets policy by adopting ordinances that reflect that policy in the correct spot. She said the ordinance (1740) is not the place to adopt that policy; there is Section 4 of the Code that regards all the financial procedures and if Council Wishes to set policy that is the place to do it. She said this is defining whose approval those transfers can be made, it is also consistent with Mr. Linn' s opinion and his two part suggestions on how to clarify things, and it is Jr.;," fully consistent with Florida Statutes. She stated it is not a policy issue; it is simply bringing it in line with interpretation of the Charter. .  n..... ... Special Council 9- 5- 07 124- ORD. 1740 - BUDGET FOR FY 07/ 08 The City Attorney read the ordinance by title. AN ORDINANCE OF THE CITY OF FORT WALTON BEACH MAKING APPROPRIATIONS FOR CERTAIN EXPENDITURES, EXPENSES, CAPITAL IMPROVEMENTS AND CERTAIN INDEBTEDNESS OF THE CITY OF FORT WALTON BEACH, FLORIDA, FOR THE YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008, AND PROVIDING FOR AN EFFECTIVE DATE. The Mayor opened the public hearing. As no one wished to speak, the public hearing was closed. Dr. Pullen moved to adopt Ord. 1740 on first reading with a change to item 4, line 40 ofthe first sentence to state " Finance Director and the City Manager". Mr. Miller seconded motion. o Discussion included comments on the need for checks and balances in the City and both Charter Officers should approve any transfers; the belief it is in the Charter to have the Finance Director in the process; and the need for two people involved in the transfer of funds. Mr. Minich moved to amend the motion to delete the words " Finance Director and/ or the" from the first sentence, of item 4. Mr. Reeves seconded motion. Further comments included the belief that the opinions of the City Attorney have been straightforward on the issue; that the City Manager is the one who has the discretion; and that nothing will be undocumented or done in a manner that will 'be detrimental to the City. The City Attorney explained and clarified that the portion of the Charter referenced by Mr. Miller also subjects the Finance Director to the supervision and control of the City Manager. She said the Division of Audits and Accounts is controlled by a Controller, not by the Finance Director; and the Division of the Treasury is also subject to the control and supervision of the City Manager. .She said this is one of those instances where there has been administrative procedures inculcated into the ordinance when it probably should not. She said by removing the Finance Director from the sentence it is her opinion that it does not interfere at all