Okaloosa County BOCC — September 3, 2013 — September 16 Final Budget Hearing — reading text

September 16, 2013 Final Budget Hearing The Final Budget Hearing for the Fiscal Year 2013-14 Budget was called to order at 6:00 p.m. at the Water & Sewer Administration Building in Fort Walton Beach, Members present were Don R. Amunds, Chairman; Dave Parisot, Vice Chairman; Wayne Harris; Nathan Boyles; and Kelly Windes. Also present were Gary J. Stanford, Finance Director, and Dave Skarzynski, Budget Analyst, Clerk's Office; John Dowd, County Attorney; and John Hofstad, Interim County Administrator. Constitutional Officers present were Don Howard, Clerk of Circuit Court; Larry Ashley, Sheriff; and Paul Lux, Supervisor of Elections. SPECIAL ITEM RATIFICATION Mr. Amunds reported County Administrator Ernie Padgett is out on medical leave and the first item on tonight’s agenda is ratification of John Hofstad (Public Works Director) as interim County Administrator. Mr. Parisot made motion, seconded by Mr. Boyles, to ratify the decision to name Mr. Hofstad as the interim County Administrator. 5 yeas. BUDGET PRESENTATION Mr. Stanford outlined the legal requirements for tonight's budget hearing: e Amend and adopt any changes to the Tentative Budget e Re-compute any changes to the proposed millage rate e Publicly announce the percent, if any, by which the re- computed millage exceeds the rolled-back rate (RBR). He pointed out the Tentative Budget Hearing was previously held on September 5, 2013 and gave the rates which were approved at that hearing. Taxing Authority RBR Proposed Percentage County 3.2583 3.4308 + 5.29 Unincorporated MSTU 0.1782 0.1800 + 1.01 Aggregate 3.3453 3.5865 + 5,12 Mr. Stanford pointed out the aggregate rate is still the lowest in the State. He advised the millage rate cannot be increased at this hearing. The public may comment and ask questions. September 16, 2013 -1- Minute Book 70, Page 38 Okaloosa County Board of County Commissioners Mr. Stanford reported the 40-page summary document is on the county’s website and he will use some of the slides from that summary in tonight’s presentation. The countywide gross certified taxable value is $13,823,628,804. The Unincorporated MSTU gross certified taxable value is $6,579,092,049. Mr. Stanford reviewed the following slides: e Summary of Balances, Revenues and Expenditures e Revenues by Source, Fiscal Year Comparison e Expenditures by Function, Fiscal Year Comparison e Ten-year History of Property Values e FAC FY 13/14 Aggregate Millage Rate comparison of neighboring and similarly-size counties e Average Debt Activity - Comparative Counties Upon inquiry by Mr. Harris, Mr. Stanford stated of the $31 Million in reserves, the General Fund alone has $3.4 Million. In response to other questions, Mr. Stanford said the General Fund Reserve is about the same as last fiscal year and does represent 30 days of operational cost, excluding the Constitutional Officers. Mr. Hofstad stated he will briefly review the slides prepared and presented by Mr. Padgett at the Tentative Budget Hearing. A slide was shown identifying the three categories—Public Safety, Essential Services, and Quality of Life-as well as listing each county department under these headings. The history of the budget strategy has been to reduce staffing and operational expenses, delay replacement of vehicles and equipment, limit Capital projects, and draw down discretionary reserves. Additional slides include: e Property Valuation for the last ten years e Millage Rate for the last ten years e Total Budget for the last ten years e Property Taxes for the last ten years e Impact of Proposed BCC Millage Increase (annual and monthly) e Impact of Proposed BCC Millage Increase on an average taxable home value ($124,031.70) e Capital Projects Mr. Hofstad stated the county has significant needs. The proposed budget represents a conservative effort to restore some September 16, 2013 ~2- Minute Book 70, Page 39 Okaloosa County Board of County Commissioners General Fund operations while using the Board’s prioritization of services through the Strategic Plan. The recommendation is to reverse the five-year trend and to get back on track. He reported the last increase for employees was in 2008. This budget includes an approximate 3% salary increase for employees. Mr. Hofstad then presented a slide comparing the millage rates, the ad valorem totals, and total budgets for FY 2012-13 and FY 2013-14. Comment by Commissioner Windes Mr. Windes stated at the Tentative Budget Hearing he made a mistake by not voicing aloud his vote. He said his intent was to register a negative vote regarding the millage rate. Mr. Windes extended his apologies for any confusion in this regard. Discussion Mr. Amunds opened the floor for public comment. The following individuals came forward to offer opinions and to _ pose questions: Rob English, Laurel Hill Rebecca Sherry, Okaloosa Island J. B. Whitten, Crestview David Sherry, Okaloosa Island Mr. Amunds brought the discussion back to the Board. Mr. Parisot stated from 2008-2013 the millage rate was really a rolled-up rate rather than a rolled-back rate. He noted the budget for those corresponding years was reduced by $27.5 Million. Mr. Parisot addressed unfunded mandates from the State, including the §1.85 Million this year for contributions to the Florida Retirement System (FRS). He said he does not see the same inefficiencies in this budget as those in 2007. Mr. Parisot stated the employees have earned a 3% cost of living increase. Mr. Harris concurred with Mr. Parisot’s comments on unfunded mandates. He said over the last three years those mandates have totaled $38.5 Million. Mr. Harris stated money would have been available to balance the budget if it had not been necessary to pay for the unfunded mandates. He told the public to blame the Legislature. September 16, 2013 -3- Minute Book 70, Page 40 Okaloosa County Board of County Commissioners Mr. Parisot referred to votes taken at the Tentative Budget Hearing. He said the Chairman announced the votes as 5-0 for the tentative millage rates and 5-0 for the tentative budget. Mr. Parisot stated before the Board gets into a discussion on any millage rates, he would like for any commissioners who do not support the rates to explain how the county is to cover the $1.85 Million FRS contribution. He pointed out the Board cannot adjourn tonight without adopting a balanced budget. Mr. Parisot pointed out that more than one balanced budget has been brought to the Board for consideration and at the September 5 hearing a tentative millage rate and tentative budget was approved. He again asked for any commissioner not in support of the tentative action to identify alternative revenues sources or places to cut the budget. Mr. Amunds recommended the Board first consider the resolution regarding the final levy for the Unincorporated MSTU. Mr. Stanford read the proposed resolution adopting an operating millage rate for FY 2013-14 of 0.1800 mills, which is greater than the rolled-back rate of 0.1782 by 1.01%. Mr. Boyles made motion, seconded by Mr. Harris, to adopt the final levy for the Unincorporated MSTU as outlined above. 5 yeas. RESOLUTION NO. 13-132 Mr. Stanford read the proposed resolution adopting a final levy of ad valorem taxes for FY 2013-14 of 3.4308 mills which is greater than the rolled-back rate of 3.2583 mills by 5.9%. The aggregate rate is 5.12% more than the previous year. Mr. Harris made motion, seconded by Mr. Boyles, to adopt the final levy of ad valorem taxes as outlined above. Mr. Amunds stated that he has heard from citizens and representatives of the cities about the gas tax. He made comments about playing a “shell game,” using gas tax revenues to replace General Fund dollar contributions. He said, however, the majority of the Board wants to keep the General Fund contribution and add the gas tax revenue. Mr. Amunds stated that was a major “decider” for him. Mr. Parisot said he believes the Board made a commitment not to play a shell game. Mr. Amunds responded, “You asked me; I told you.” Mr. Windes stated he campaigned on a platform to do his best to keep taxes down. He said because of the low water quality, he voted to add gas taxes and 75% of the stormwater projects are within the rights-of-way which made support of the gas tax more palatable. Mr. Windes stated he did not support a millage September 16, 2013 -4- Minute Book 70, Page 41 Okaloosa County Board of County Commissioners increase and thought we could wait one more year before raising the rate. He added that he is not answering to Mr. Parisot but to the general public. Mr. Parisot asked if the $1.85 Million is to be taken out of reserves. Mr. Windes replied he did not come here to argue. Mr. Parisot stated until he hears how the budget is to be cut, he will refrain from voting. Mr. Boyles stated this is really a complex issue and every one of the five commissioners is trying to bring his diverse background here. He said he disagrees with Mr. Windes but that does not mean that Mr. Windes made a poor decision, saying their conclusions are just different. He added this is not a dictatorship and told Mr. Parisot what he is asking is unfair. Mr. Boyles said Mr. Parisot evidently wants to highjack the meeting for the next hour to grandstand. Mr. Amunds asked when another public hearing could be scheduled, saying he is not going to be held hostage. Mr. Dowd said he believes the Board can recess until a later time but pointed out the Board has a certain timeframe to adhere to between the Tentative Budget Hearing and the final hearing. He then said he is not sure if another hearing can be scheduled. Mr. Harris told Mr. Parisot he does not agree but respects his opinion. He said he also respects Mr. Amunds’ and Mr. Windes’ opinions. Mr. Harris stated he would like to use some common sense and see if the vote goes through. Mr. Harris called the question for the motion on the floor. The vote taken with the Chairman announcing the vote was 3 yeas, 2 nays. (Mr. Windes and Mr. Amunds voting no.) Mr. Amunds stated that not voicing a vote is concurrence. (By way of clarification, Mr. Parisot did not utter a vote at this time.) Mr. Dowd asked Mr. Parisot if he is casting an affirmative vote. Mr. Parisot replied that he is not casting a vote until he hears how the commissioners who do not support the rate will cut the budget. Mr. Harris stated they have the right to speak their mind and to vote for or against the motion. He said he is asking Mr. Parisot to get this over with and to do what is right. Mr. Harris told Mr. Parisot that he is holding this organization and everyone here hostage. Mr. Parisot responded that if he votes “yes,” the meeting will go on and we will go home. However, if he votes another way, we will still be here trying to find the $1.85 Million. Mr. Dowd told the Board it can recess. September 16, 2013 -5- Minute Book 70, Page 42 Okaloosa County Board of County Commissioners Mr. Boyles asked if it will make any difference at the end of the day, noting that Mr. Parisot appears to be on the winning side. He said typically a filibuster is carried on by the losing side. Mr. Hofstad stated considerable time has been put into evaluating all aspects of the budget. He once more highlighted the needs of the county. A lengthy discussion ensued. Mr. Amunds asked questions about possible areas which could be cut. RECESS - The meeting was recessed at 7:50 p.m. and reconvened at 8:05 p.m. Mr. Windes said he would like to throw something out. He asked about taking $800,000 from the Self-Insurance Fund; $250,000 from Capital Outlay Reserves; and $775,000 from General Fund Reserves. He said that will total $1,825,000 but he does not like drawing down the reserves like that. Mr. Harris stated as a matter of discussion, it has been the practice of this Board that if a person is silent, his silence is considered concurrence with the majority. He said that has been the practice since