Fort Walton Beach Council agenda — 08-01-2006 ‎(special)‎ — reading text

CITY OF FORT WAL TON BEACH City Council Special Meeting Agenda - August 1, 2006 - 5: 30P.M. City Council Chambers 107 Miracle Strip Parkway, SE Fort Walton Beach, FL 32548 CALL TO ORDER PLEDGE OF ALLEGIANCE ( Mayor) w.. 1. Consideration of setting the tentative ad valorem millage rate for FY 2006- 07. CM 2006- 03) ( City Manager) (See Backup). 2. Consideration of a Resolution (6- 21) of the City Council of the City of Fort Walton Beach supporting the continuation of the School Resource Officer ( SRO) Program established at the Fort Walton Beach and Choctawhatchee Senior High Schools; and urging the Okaloosa County School Board and School Superintendent to continue its cooperation and joint funding arrangement for continuation of the School Resource Officer Program; and providing for an effective date. ( CD2006- 12) ( Council Member Holmes) ( Police Chief) ( See Backup ). 3. Any Other Business ADJOURN Any person who decides to appeal any decision made with respect to any matter at this need a record of the proceedings, and for such meeting will purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. (FS286.0105). The City of Fort Walton Beach adheres to the American with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen Spencer at 850-833- 9509 to make a request. For Hearing Impaired dial the City Hall TDD # 850- 833- 9925 or 1- 800- 955-8771 ( TDD) or 1- 800- 955-8770 ( Voice). Requests must be received at least 48 hours in advance of the meeting in order to aI/ow the City time to provide requested service.  CITY COUNCIL SPECIAL MEETING Au ust 1, 2006 Agenda Consideration of setting the tentative ad valorem millage rate for FY 2006- 07 City Manager) Council Action 1st 2nd Vote: 1 Agenda Item Number:  c' OF FORT WALTON "B6AC, H- fT'( Memorandum TO: Joyce Shanahan, City Manager FROM: Charlotte Dunworth, Financial Analyst ai> RE: Tentative Ad Valorem Millage Rate for FY 2006- 07 DATE: July 26, 2006 Backaround Chapter 200 " Determination of Millage" of the Florida Statutes sets a statutory timetable for the calculation and notification to the public of the process to set ad valorem tax millage rates and adopt a budget. The statute identifies the time frames and briefly describes the tasks to be accomplished during those time frames. Determination of Millaae 1. Dav 1 is on or bv July 1 - The Property Appraiser certifies the taxable value of real property within the jurisdiction of the taxing authority. 2. Within 35 days ( around August 4) - The City shall advise the Property Appraiser of: a) proposed/ tentative millage rate; b) current year roll- back rate ( the roll- back rate is the tax rate that would raise the same amount of revenue as last year using the increased taxable value); and c) date, time and place of the tentative budget hearing. 3. 55th day ( around August 24) - No later than 55 days after certification of value, the Property Appraiser shall mail out to the City and the property owners a Notice of Proposed Property Taxes TRIM Notice). 4. 80th day ( September 3 to 18) - Not earlier than 65 days after certification, but within 80 days of certification of value, the City shall hold a public hearing on the proposed millage rate and tentative budget. 5. 95th day ( September 19 to October 3) - Within 15 days of the tentative budget hearing, the City shall advertise its intent to adopt a final millage and budget. 6. 97/ 10Oth day - ( September 21 to October 5) - Not less than 2 days or more than 5 days after the day that the advertisement is first published, a public hearing shall be held to adopt a final millage rate and budget. 7. Within 3 days of the second and final budaet hearina - The resolution or ordinance adopting the final millage rate shall be forwarded to the Property Appraiser and the Tax Collector. 8. The Property Appraiser then notifies the City of the final adjusted tax roll. 9. Within 30 days of the final hearina - No later than 30 days following the adoption of the millage and budget ordinances or resolutions, each City shall certify that they have complied with the provision of Chapter 200, F. S., Property Tax Administration Program, Florida Department of Revenue. Discussion Staff has received the 2006 Certification of Taxable Value ( form DR-420) from the Okaloosa County Property The taxable value is $ 1, 363, 808, 847, representing an increase of $ 264, 145, 106 or Appraiser. gross property 24. 0% over the 2005 Final Gross Taxable Property Value of $ 1, 099,663, 741. The City must notify the Property Appraiser within 35 days of receiving this certification of taxable value of its calculated roll- back rate, tentative millage rate, and the date of the City' s first public hearing for the budget. Roll- Back Rate The roll- back millage rate is defined as the millage rate that would produce the same amount of ad valorem tax revenue as was levied during the prior year, exclusive of new construction, deletions, and boundary changes. Staff has calculated the roll- back rate to be 4. 0746 mills, which would generate revenues of $5,279, 127 ( at a 95% collection rate). Tentative Millaae The tentative millage rate is important because once it is set it cannot be increased without the additional expense of formal notification to each city taxpayer. The tentative millage rate may be reduced without formal notification to each city taxpayer. Staff is in the process of finalizing the proposed budget for FY 2006- 07. Council 1 of 3 consensus at the Budget Policy Workshop held in April was to maintain the millage rate at 4. 9700. Setting the tentative millage at 4. 9700 mills will produce approximately $ 6, 439, 224 in ad valorem tax revenues, representing 1, 234, 520 in additional tax revenue ( at a 95% collection rate). Of the additional revenue, 58% or $ 716, 077 is in the General Fund, with the balance of $ 518,443 in the CRA Fund. As directed, staff presented three General Fund millage scenarios in the City Manager' s Proposed FY 2006- 07 Budget. City Council will make a final decision regarding the millage rate at the August Budget Workshop. Budaet Challenaes Budget challenges continue for FY 2006- 07. Expansion of service levels as well as increasing costs for fuel and utilities, construction materials, healthcare, pension, and workers compensation offset the benefit obtained from higher property values. Issues to note for the upcoming budget year are listed as follows and total $ 1, 614, 187: Police Officer ComDensation In order to recruit and retain new and experienced officers, the City must compete with the Sheriff. It is anticipated that the Sheriff will increase the starting salary to $ 31, 900 in October with an adjustment to 32, 054 after completion of field training. If the City increases starting pay to $ 31, 065, a 9. 0% increase, the adjustment is estimated to cost $ 237,412 for officers, sergeants, and captains. In addition, City Council concurred with the Chiefs recommendation to fund the law enforcement academy for new recruits as part of a pre- service hiring program. Police Take- Home Vehicles At this year' s Budget Policy Workshop City Council approved a non- shared take- home vehicle policy for patrol officers. The department has already acquired six vehicles from the Sheriff, but purchasing and equipping an additional 12 vehicles ( 4 new, 8 used) needed for the program is estimated at $ 123, 000. IAFF Contract The City is in the third and final year of the agreement with the Fire Union. A 2% wage adjustment is scheduled for the upcoming year, but staff is proposing a 2. 99% increase consistent with general employees at an additional cost of $ 14, 297. Advanced Life SUDDort The City has been providing ALS service to its citizens since 2003. Implementation of phase III of the service occurred in April with the addition of six new firefighters ( 3 EMT and 3 Paramedic) and the purchase of a rapid response vehicle. Increasing funding for the six new personnel to a full year is estimated at $ 70, 308. Fuel & Utilities The City' s expenses for fuel and utilities continue to increase. An additional $ 21, 000 and $ 74, 200 are estimated for fuel and utilities, respectively. Insurance Affordable health insurance providing quality coverage is an important part of the City' s benefits package. Based on current plan structures and utilization levels, the following insurance increases are anticipated: medical 8%, dental 5%, and life 5%. Insurance expense is anticipated to increase $ 140,716, provided claim levels are consistent. Pension The City' s contribution to its three pension plans varies annually based on the performance of the pension plans' investments. Lower than anticipated investment returns, higher than anticipated wage adjustments, more participants due to the early- out retirement program, and additional fire personnel, necessitate a 724, 123 increase in the City' s contribution based on an actuarial analysis. Workers ComDensation Although rates are anticipated to remain stable or possibly decrease in the upcoming year, an additional 209, 131 is budgeted for workers compensation as a result of increased wages and new personnel. In addition, new or existing Capital Improvement Projects will require additional funding in the upcoming budget for: year to meet the objectives of the projects. Increases totaling $ 499, 690 are