Fort Walton Beach Council agenda — 06-25-13--regular — reading text

identified to attract new business as part of the economic incentive plan. The City Manager suggested a future workshop, possibly in October, to discuss this issue. Mr. Griggs moved to suspend any action /activity on the Fire Assessment Fee at this time. Mr. Goodwin seconded motion and it carried unanimously. The City Manager advised discussion on employee wage adjustments will be discussed as part of the FY 13 - 14 proposed budget. RESULT: APPROVED JUNANIMOUS) MOVER: Bobby Griggs, Council Seat 1 SECONDER: Trey Goodwin, Council Seat 4 AYES: Griggs, gossom, Mead, Goodwin, Jamieson, Rigdon, Rynearson FY 2013 -14 Budget Discussion Synopsis: ( Budget and Grants Manager) Staff will present the preliminary budget information and request City Council direction on preparing the FY 2013 -14 budget for review in August. xrrn( untEx°rs: 9 - 31 - 13 PmI DN420 IPDrI Michael Beedie, City Manager, presented a power point regarding the FY 2013 -14 budget including budget goals and the importance to plan for the City's future. He stated the City needs to be proactive in its budgeting approach so that the City can grow and prosper for years to come. A millage rate cap of 6.000 mills is being recommended in order to provide a parameter within which a sustainable budget can be developed, and noted that once a tentative millage rate is approved, that rate can be lowered but cannot be raised. iry Caunci7 of Fort IVW,an Beaah Page 2  8. 7. 2 Minutes _ June 18. 2013 Special Meeting The presentation included the current status of the City budget; increasing costs; and that both taxable values and ad valorem revenues are down. The City Manager pointed out that the City' s general fund workforce is down 30% from FY 2007 -08 with only a minimal reduction in services, and the City is no longer in a position to reduce costs without eliminating services. He presented a history of the millage rate which showed the millage rate decreasing from 10. 0000 mills in 1970, and explained the effect of the millage rate on both residential and commercial customers and listed the many services that the City provides including police, fire, recreation, and community and administrative services. Another issue discussed by the City Manager was the need to relocate the Golf Fund back into the General Fund from the Enterprise Fund which would result in a significant savings or expense reduction in the General Fund. The City Manager advised once a tentative millage rate is approved, the next step will be to set the dates and times for the public hearings. Brandy Ferris, Finance Director, explained the benefits of moving the Golf Fund into the General Fund and upon questioning, informed that well performing enterprise funds should not be used to subsidize the general fund. Also discussed was the debt payment for the new recreation center; that the industry standard is used for the renewal and /or replacement of vehicles; and the need to market the golf course as an asset to the City. The Mayor opened the public hearing. Millie Thrush, 316 Sudduth Circle, stated the need for the City to be proactive and spoke in favor of the increased millage rate Charlene Greenwald, 206 Jet Drive, spoke in favor of the millage increase but with reservations. She stressed the need to keep the police/ fire services and to look into the golf course and to consider selling it if it is not financially feasible for the City. She also spoke against the contract for the tennis center that was recently approved by Council. Bobby Nabors, 211 Buck Drive, urged continued work on the budget and to use the opportunity to find solutions to move the City forward. Catherine Madden, 145 Jet Drive, spoke in favor of the increase, particularly for the fire services and praised the fire department for literally saving her life. Thomas Sudderberg, Ru de le Roi, felt further discussion was needed before voting on the issue and that he has not heard any specific reasons why the millage rate should be increased. Mike Minich, Waynel Circle, discussed the need to maintain City vehicles and equipment and have a strong reserve as eventually a hurricane or some other emergency will occur and the City needs to be prepared. Mr. Minich also stated his feeling the golf course should not be an enterprise fund, and the need to maintain a sustainable work force for the City. Mr. Minich stated he is in support of the proposed millage rate. Valerie Wenzel, Shalimar, stated as the owner of several businesses downtown she supports the increase. of Fort Walton Beach Page 3 PackeC g. 24,:.  8. 1. 2 Minutes June 18. 2013 Special Meeting Richard Moak, retired City firefighter, discussed a medical emergency that occurred at his home and the quick response of the fire department and stated his support of the increase. Jean Hunnicut, non -city resident, stated she owns several properties in the City and spoke against the tax increase, stating everyone has to live within a budget and the City and its employees are no different. Bill Patterson, 35 Anastasia, spoke in favor of the proposed increase and for Council to take the lead in the tough decisions that need to be made in order to maintain quality services. The Mayor closed the public hearing. Mr. Goodwin moved to cap the millage rate at the current rate of 4. 5383 mills. Mr. Griggs o seconded motion. a N Mr. Goodwin explained that the City Council are the ones tasked with setting policy for the City and that Staff will receive that direction and come up with ways to maintain the current budget. Mr. Goodwin also stated he is not opposed to an increase in wages for City employees; however, he does not want pay increases to be at the expense of the citizens by ways of a tax increase. Mr. a Goodwin stated he works for the citizens and needs to keep their best interests in mind. Mr. Griggs stated that people cannot take any more financial hits and that an increase would be o hard on small business and the citizens. Mr. Griggs stated the City can keep its current level of service and balance the budget, and in the next few months he can show the citizens that the budget can still be balanced. o Ms. Jamieson stated her opposition to the motion, saying the majority of the citizens present this w evening had spoken in favor of the increase and that all opportunities for a lower rate have been 5 exhausted. Ms. Jamieson stated her opinion that an increase in the millage rate is in the best interest for the City. c m Mr. Rynearson also expressed his opposition to the motion stating the need for the City to be d proactive. lie noted the reduction in staff by 30% since 2008 and the lack of employee wage u a increases in five years, as well as the lack of a plan in place for vehicle /equipment upkeep, and N that an increase will get the City moving in a positive direction. c_ Dr. gossom stated her opposition as well, advising that a policy was set in place by the Council at the strategic planning session and the need to develop a sustainable budget, and that Staff has presented recommendations and Council has listened to those recommendations and the voice of the citizens present this evening. Mr. Rigdon stated his support of the employee wage increase and that he would not support the motion. Mr. Mead stated he supports the motion and stated during his campaign an overwhelming majority of the citizens asked him not to raise taxes, and he would not break his word to the citizens. r' iry Council ofForr HV(o, Beach Page 6  F8 12 Minutes June 18, 2013 Special Meeting The Mayor called for the vote on the motion and it failed by a vote of 3 to 4. Mr. Griggs, Mr. Mead, and Mr. Goodwin were in favor. RESULT: DEFEATED [ 3 TO 41 MOVER: Trey Goodwin, Council Seat 4 SECONDER: Bobby Griggs, Council Seat 1 AYES: Bobby Griggs, John Mead, Trey Goodwin NAYS: Joyce gossom, Amy Jamieson, Bull Rigdon, Dick Rynearson L 3. Motion to FY 203 -14 Millage Rate COMMEN I S - Current Meeting: Mr. Rynearson moved to set the proposed millage rate for FY 2013 -14 at a cap of 6. 0000 mills. Dr. gossom seconded motion. i a 0na Mr. Goodwin expressed his disappointment in the direction of the Council regarding the millage rate. 5cNv The Mayor called for the vote on the motion and it carried by a vote of 4 -3. a RESULT: ADOPTED [ 4 TO 31 M MOVER: Dick Rynearson, Council Seat 7 M SECONDER: Joyce