Fort Walton Beach Council minutes — 09-22-08 special minutes - final budget — reading text

MINUTES OF THE SPECIAL COUNCIL MEETING 289 OF THE CITY OF FORT WALTON BEACH, FLORIDA BUDGET FOR FY 08/ 09 SEPTEMBER 22, 2008 INTRODUCTION A special meeting of theCity Council of Fort Walton Beach, Florida, was held on Monday, September 22, 2008, at 5: 30 p. m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Virgil Miller, Dennis Reeves, Bill Garvie ( arrived at 5: 32 pm); Dr. Wayne Pullen, Jim Hartwell, and Mike Minich Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Brandy Wunker, Finance Director; Toni Craig, City Attorney; and Department Directors PURPOSE The purpose of the Special Council meeting is to adopt the tentative millage rate and the tentative budget for Fiscal Year 2008/ 09. CALL TO ORDER The Mayor called the meeting to order. PLEDGE The Mayor led in the Pledge of Allegiance. PUBLIC HEARING - FINAL MILLAGE The Mayor stated the millage rate for the City of Fort Walton Beach for Fiscal Year 2008- 09 is 4. 3361 mills, which is 7. 50/0 below the rollback rate of 4. 6883 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 Mayor continued the reason for setting the millage rate at 4. 3361 mills is to provide sufficient revenues to balance the General Fund budget. The Mayor opened the public hearing for comments on the millage rate. Matthew Gaetz, 301 Brooks Street, spoke in opposition to the proposed millage rate and the add- back items into the budget that he felt were non- essential, such as fireworks and additional police vehicles, thus increasing the millage rate. Mr. Gaetz noted that when people have less, government should have less, and that government has a choice to make by choosing what is and is not essential and by doing so the increase in the tax rate can be avoided. He advised he collected more than 250 signatures from citizens who opposed the proposed millage rate, and distributed a few more petitions he received this evening prior to the meeting. He thanked Council for their hours of time spent on the business of the City, and although he disagrees with the millage rate, it is a respectful disagreement. Julianna Scott, 11 Stafford Circle, spoke against the proposed millage rate stating that if families and individuals have to do more with less, then government should follow suit. Kabe Woods, 240 Brooks Street, stated that spending and revenues are down, and felt that the additional monies for the add- back items can be squeezed into the budget and paid for without raising the millage rate. As no one else wished to speak, the public hearing was closed. 290 9- 22- 08 Special Council RES. 08- 04: ADOPTION OF MILLAGE RATE The Mayor read the resolution by title. A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ADOPTING THE MILLAGE RATE FOR. THE FISCAL YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 200H; AND SETTING AN EFFECTIVE DATE. Mr. Minich moved to adopt Res. 08- 04 setting the Final Millage Rate for the City of Fort Walton Beach at 4. 3361 mills for the Fiscal Year beginning October 1, 2008, and ending September 30, 2009. Mr. Hartwell seconded motion. The Mayor asked for Council comments. Mr. Minich clarified several comments for the public including the fact the position of fire captain that was added back to the budget is not a new position; the position was there last year and it was retained. He also that the City lost four police officer positions and four vehicles, explained and that with the funding the police vehicles were added back. He also stated the 1 % increase for City employees is due to the fact the City lost 24 employees and the employees are being asked to do more with less. In closing, Mr. Minich stated the proposed millage is commensurate for the citizens of the City to continue to receive the services they have. Mr. Hartwell stated hE! feels comfortable leaving the millage rate as proposed and that less have the vehicles government is less service and it is important for the City' s first responders to and supplies they need to protect the citizens of the City. Dr. Pullen advised he would not support the millage rate as proposed because there are other monies that can be uSled to cover possible shortfalls. He also stressed that the budget can be changed if needed, the year, but once the millage rate is set it cannot be changed. throughout Mr. Garvie informed hE~ could not support a raise in the millage rate because, in his, words, ' the area is hurting.' Mr. Reeves said he is for keeping taxes down if possible and appreciated the comments from for their input. J. He read most of the petitions and thanked the citizens the citizens this evenin!;: Mr. Miller stated he would vote against the proposed millage rate and that the Staff recommendation should be endorsed. Mr. Holmes advised hE~ would support the proposed millage rate. He said quality of life for the citizens is what is beino considered, and he has not had one call regarding lowering the rate but has had many people tell him they like the services they receive from the City and wants those services to remain. The Mayor called for the vote on the motion and it failed by a vote of 3 to 4 with Holmes, Hartwell, and Minich in favor and Miller, Reeves, Garvie, and Pullen opposed. Mr. Reeves moved to adopt Res. 08- 04 setting the Final Millage Rate for the City of Fort Walton Beach at 4. 1986 mills for the Fiscal Year beginning October 1, 2008, and ending September 30, 2009. Mr. Minich seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. The Mayor advised thE~ millage rate for the City of Fort Walton Beach is 4. 1986 mills for the fiscal year beginning October 1, 2008 and ending September 30, 2009, which is 10. 50/0 below the rollback rate of 4. 6883 mills.  291 Special Council 9- 22- 08 PUBLIC HEARING - RES. 08--45: BUDGET FOR FY 08/ 09 The Mayor stated the budget for the City of Fort Walton Beach for Fiscal year 2008/ 09 is 36, 570, 582, which is $ 40, 086 or 0. 1 o,fo less than the adopted Fiscal year 2007/08 budget. The Mayor opened the public hearing for comments on the budget. Kabe Woods, 240 Brooks Street, suggested Council look at finding the funding in the budget to provide the two police vehicles and the Fire Captain. As no one else wished to speak, the public hearing was closed. The City Manager clarified for the public that she receives orders from Council and her direction was to prepare a budget that was equal to or less than last year. She said it is Council' s direction they follow, that Council sets policy and the direction. She noted that a budget has to be set tonight. The Finance Director noted the resolution before Council adopts the budget for the Fiscal Year 2008- 09 and with the change in the millage rate to 4. 1986 it will decrease the ad valorem revenue received for the CRA tax increment funding. The City Manager mentioned if Council wishes to maintain the same level of add backs then they will need to use reserve funds to offset the cost or reduce the budget elsewhere by 147, 970. The Mayor noted he provided as an alternative the use of the reserve funds to pay for the add back items. Mr. Minich moved approve Res. 08--45 to adopt the budget as presented leaving the Fire Captain position unfunded, eliminating the two police vehicles, eliminating the 10/0 increase, eliminating the $ 10, 000 for fireworks, and eliminating $ 3, 000 for Kid' s Day. Mr. Garvie seconded motion. Mr. Minich stated he was against using reserve funds because this is a coastal community and, if the motion passed, pledged $ 3, 000 for Kid' s Day. Mr. Garvie said he is not against any of the add back items but they are in tight times and the citizens came forward with their suggestions. Mr. Holmes commented Council voted to add back those items and is now bowing to the pressure of a select few. He would support the use of reserve funds. Mr. Miller received clarification from the Finance Director that the unreserved/ undesignated Fund Balance for 2009 would be $ 6, 819,431. Mr. Miller moved to amend the motion to add back $ 10, 000 for fireworks, $ 3, 000 for Kid' s Day, and $ 40, 000 for the purchase of two police vehicles to be paid for out of reserve funds. Dr. Pullen seconded amendment. Mr. Miller commented that the citizens look forward to the fireworks each year, the Kid' s Day is highly attended, and the two police vehicles are needed. Dr. Pullen said he supported the amendment because some of the items are essential and they can adjust the budget throughout the year. 292 Special Council 9- 22- 08 RES. 08-45 cont. Mr. Hartwell appreciated Mr. Miller' s approach but had difficulty in not keeping the 1 % pay raise, but did support the one time expenditures out of the reserve funds. Mr. Minich said he did not support the amendment because the surplus funds should be used for true emergencies. Mr. Garvie said the situation everyone is in right now is not over and they need the reserves so he could not support the amendment. Mr. Holmes commente!d they were all important items and they will have a year to re- evaluate the budget. The Mayor noted the amendment on the floor is to fund the police vehicles, the fireworks, and Kid' s Day out of reserv1es. The Mayor called for the vote on the amendment to the motion and it failed by a vote of 3 to 4 with Miller, Pullen, and Hartwell in favor and Holmes, Reeves, Garvie, and Minich opposed.