Fort Walton Beach Council minutes — 05-08-07 workshop minutes — reading text

265 M\ NUTES OF THE COUNCIL WORKSHOP MEETING OF THE CITY OF FORr'~ TON BEACH, FLORIDA MAY 8, 2007 INTRODUCTION A Council Workshop Meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, May 8, 2007 at 5: 30 p. m. wth the following members present: r- Mayor Mike Anderson Councilmen: Mike Holmes, Virgil Miller, Dennis Reeves, Bill Garvie, Dr. Wayne Pullen, and Mike Minich Absent: Jim Hartwell Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Lisa Absher, Finance Director; Toni Craig, City Attorney; and Department Directors CALL TO ORDER The Mayor called the meeting to order. PLEDGE OF ALLEGIANCE The Mayor led in the Pledge of Allegiance. HOMESTEAD EXEMPTION Discussion on increasing homestead exemption from $25, 000 to $50,000 for persons over the age of 65 whose household income does not exceed $ 20, 000. The City Manager recalled the constitution amendment to increase the senior homestead exemption from $ 25,000 to $ 50, 000 was passed last November, and the legislature has passed the enabling law. She reported she was notified by the Property Appraiser of a requirement that if the City wants to increase their homestead exemption for seniors from $ 25, 000 to $50, 000 that it would have to be done by ordinance by June 151. She mentioned she heard from Okaloosa County who plan to enact it by emergency ordinance at their May 151h meeting and it is her understanding that the City of Destin also undertook the amendment to their senior exemption at their meeting last night. The City Manager reported the additional exemption would represent an increase of $32, 000 in additional exemptions resulting in a total of $ 63,000 less in revenue. She said staff recommendation is to wait until it is known what the legislature is going to do at their special session June 12 - 22, and it is still unkno\M1 what direction they are going to go. The City Manager said if it is Council' s desire to increase the homestead exemption it would require two readings of an ordinance, ten days apart, and would require special meetings unless it would be possible to adopt an emergency ordinance. She noted the City passed the first senior homestead exemption in December 1999 and there are 276 parcels eligible. It was commented that a decision is needed by Council on whether or not to move forward and should have been placed on a Council agenda, and it was questioned why the item is on a workshop agenda. The City Manager explained it was received at the last minute and it seemed to be adiscussion item on whether or not Council is interested in pursuing, and she did not have time to give it to the City Attomey to prepare an ordinance.  Council Workshop 266 5- 1- 07 HOMESTEAD EXEMPTION cont. In response to the question on what an emergency session would entail, the City Manager explained Council can hold a Special meeting fbr one item, \Nhich would be for the ordinance. In response to the question on when the residents would benefit from the additional exemption, the City Manager explained the Property Appraiser sends the bills in November, and if the City adopted the additional exemption by June 1 st then the seniors would receive a $ 50, 000 homestead exemption vs. a $ 25, 000 this tax year. If the City adopted it after June 1 sl then it would take effect November 2008. In response to the question on how the $ 20, 000 is determined, whether it is gross income, net income or is taken off the tax retum, the City Manager stated it is determined the by Property Appraiser. The Finance Director mentioned there are certain forms of income that are not applicable to the cap. The City Manager stated in the intervening time between now and the regular meeting, staff may be able to prepare an ordinance for Council consideration this evening for first then reading, again on May 22nd and it would meet the June 1s1 deadline. It was questioned whether Council could feasibly address an ordinance at the regular meeting tonight. The City Attomey responded it is feasible but Council is hearing from staff that staff is not recommending it at this time. She tJrther stated passing slap-stick legislation is not necessarily the best thing to do, and whether or not it delays a benefit to the citizens for one year is a Council decision, but with everything that is pending she thought it would be rushing legislation and not necessarily needed at this point. There was an exchange of thoughts on whether or not to adopt an ordinance by June 1st to increase the senior homestead exemption. The City Manager mentioned if it is not adopted by June 1 sl and if the legislature does not pass legislation that would negate the City ordinance, then the residents would only be eligible for the 25, 000 exemption for the 2007 tax year. There was discussion on placing the item on the agenda for the Special Council meeting scheduled for May 15th to decide \Nhether or not to adopt an ordinance. The City Manager confirmed she will place a draft ordinance for Council consideration on the May 15th Special Council meeting. In response to a request for an explanation on staffs objection, the City Manager further explained the legislature is still determining what they will do with taxes. She property the explained proposal from the House could reduce the property taxes byapproximately$ 1. 5 - $ 1. 7 million; the proposal from the Senate could reduce the property taxes by approximately $.5 - $ 1 million. She said if the City is going to lose that amount of revenue and roll back property taxes, it is her opinion it will be extremely difficult for the City to be able to maintain the service delivery levels currently provided, ~"'."".."" and an additional exemption further complicates it. She said, in addition, the Governor has talked .... about doubling the homestead exemption and providing portability from one house to another, but J:".""'. those details have not been released so the financial impact is unknown. She realized it is a small dollar amount but if it is in the range of $ 1. 7 and then there is the complication with the Communication Services Tax, which is another $1 million, every penny counts. The Mayor noted it will be on the agenda for the May 151h Special Council meeting.  Council Workshop 5- 1- 07 267 CHARTER OFFICERS Dr. Pullen suggested Council think about naming one of the Charter Officers as an Assistant City Manager to take over in case of the City Manager' s absence. He noted under the Charter Council cannot give direction to a staff member. FLAG POLES The CDS Director gave Council background information on the 170' flag pole issue that has been before the Municipal Planning Board and a summary of the process of the actions that have occurred. LANDMARK CENTER Discussion ensued regarding the status of the Landmark Center project. The City Manager advised that City staff has met with representatives of the Landmark Center project at least twice in the past year regarding their plan to include retail shopping and condos at the corner of Perry and US Highway 98. The City Manager stated that Staff is concentrating mainly on the issue of the parking garage and whether the City would agree to any kind of funding for it. She informed Landmark representatives have drafted a Development Agreement and are anxious to move their project forward to the CRA, and since this is a quasi-judicial matter, she cannot say anything more about the issue. Council questioned when the issue would go before the CRA Board. The CDS Director advised that Staff is waiting for revisions to the site plan to be submitted, so it would depend on when the revisions are received and comments from the Development Review Committee if it gets on the June CRA agenda. Discussion included that Council may be reviewing a site plan and has never discussed whether the property should be declared excess. The City Manager advised that sort of information will be defined in the Development Agreement, whether it is to be sold, or maintained by the City. She stated if Council would like to discuss that possibility she can be directed to bring information to Council on the issue prior to discussion. The City Attomey advised if the garage area is to be used as public parking the property would not be declared excess because it has a public purpose. She continued that the issue can be separated to discuss the parking garage separately from the rest of the development, but the site plan when presented to Council will be as one unit, with the entire development contingent upon the parking garage. The City Attorney continued she has drafted a basic Memorandum of Agreement that has not even been discussed among Staff at this point, although the developer is ready to move forward. Further discussion included that a parking study is being conducted that the CRA will be briefed on, and that Council has not even seen the study, and it might be helpful if Council received a copy of the report so they could study it. Also discussed was the need to move forward and let the various City boards and committees research issues and then present an educated recommendation to Council, and that Staff is always available to answer any questions or clarify