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09-07-1993 - Special 'Wr ....., CITY COUNCIL OF EDGEWATER SPECIAL MEETING SEPTEMBER 7, 1993 7:00 P.M. COMMUNITY CENTER MINUTES CALL TO ORDER: Mayor Hayman called the special meeting to order at 7:00 p.m. in the Community Center. ROLL CALL: Mayor Jack Hayman Councilman Kirk Jones Councilwoman Louise Martin Councilman Michael Hays Councilman David Mitchum city Attorney Krista storey city Manager George McMahon city Clerk Susan Wadsworth police Chief Lawrence Schumaker Present Present Present Present Present Excused Present Present Present Mayor Hayman announced City Attorney Storey gave birth to a baby boy on Labor Day. Dr. Roland Bazin, Steve Dennis, Pat Moore, and Doris Massey from the Chamber of Commerce distributed brochures on Edgewater. Mr. Dennis gave a briefing on these brochures. Hold public hearinq on proposed millaqe rate of 5.8882 and Res. 93-R-18 Adoptinq tentative FY-1993/94 city Budqet Mayor Hayman explained the reason for the special meeting is to adopt the tentative budget. city Manager McMahon spoke on the reserves and explained we are hoping to build them up in the future to a higher percentage of the budget. He explained the millage rate has an increase of 1.39%. Finance Director Fred Munoz gave a presentation on the 1994 Budget and the millage rate. Mayor Hayman opened the public hearing. Arthur Combs, 1719 Bradford Road, stated he can not afford an increase in property tax. He proposed the increase be placed on a ballot so the citizens can vote on this. He asked for a show of hands of the people who think this property tax is too high. Patrick Palmier, 617 Mooring Lane, asked what the reserve fund was and how much of it was drawn down. He asked if the City Manager has considered our taxes being raised from the Federal Government through the State, County, and city. Mr. Palmier spoke about the Fire Department. Mr. Palmier again asked how much of the reserve fund was drawn down over the past two years. Mr. Munoz explained the fund balance at the end of 1990 was $1,253,000, 1991 was $402,656, and 1992 was $198,971. This year it was scheduled to be drawn down $217,282. Mr. Palmier stated he doesn't understand why the alarm for some increase was not raised two years ago for a more gradual increase. City Manager McMahon explained this matter for Mr. Palmier. '-" ,.., Mr. Palmier explained he supports the reserve fund but he does not support the idea that a portion of the increased revenues being put towards the reserve fund. He doesn't understand why this wasn't done gradually rather than over twenty percent in one year. City Manager McMahon explained the reason for this. George Ewing, 2923 Royal Palm Drive, asked if the Mayor or Council has seen the figures of the County. He then passed out a document entitled 1993 Proposed Millage Rates. Mr. Ewing listed the tax increases being made by most of the cities in Volusia County. Mr. Ewing spoke about the assessment figure he has of $351 million. He went on to talk about the sewer assessments and road assessments for those on unpaved streets based on the new millage rate. Mr. Ewing feels Council needs to do more research on this tax increase. He feels this is not the time to increase taxes. Mr. Munoz elaborated on Mr. Ewing's figures for a $65,000 home. City Manager McMahon asked Mr. Munoz to explain our per capita values compared to other cities which Mr. Munoz did at this time. Patrick Palmier, 617 Mooring Lane, stated he is not against a fair tax increase. He is concerned with the 26% increase. He asked Council to forget what the other cities are doing. He feels Council does not understand the psychology of this. Martin Ludwig, 2223 Travelers Palm Drive, spoke about the general fund increase of 14% for the County and the largest increase of taxes being in Edgewater and the school taxes. He feels this is not the right time to raise taxes. city Manager McMahon elaborated on Mr. Ludwig's concerns. Klemens Burdzel, 2303 Kumquat Drive, asked how much new construction is going to bring in for taxes during the fiscal year. Mayor Hayman elaborated on Mr. Burdzel's concerns. Mr. Munoz gave figures for new construction. Mr. Burdzel asked if there is anyway the Council can put a 1% tax on For Sale signs. City Manager McMahon explained no they can not because they can only levy taxes authorized by the state laws of Florida. Mayor Hayman asked Mr. Munoz what it costs to provide services provided by the city during the year. Mr. Munoz gave these figures. Dominic Capria, 606 Topside Circle, spoke about the decrease in evaluations on property. He asked if the increases are reflected. He stated a lot of homes were also increased. city Manager McMahon and Mr. Munoz elaborated on this. George Naill, 1604 Royal Palm Drive, stated he found a significant decrease in the assessed value of his home. He stated the area his house is in is one of five areas of Florida Shores and that particular area has ten sales in the last year and they were all at a reduced level. He explained the economy of the city is going down. He explained we need to look at where the budget can be cut. Page -2- Council Special Meeting september 7, 1993 'w ...., Mike Billick, 2528 Lime Tree Drive, asked why the millage rate has gone down in prior years. Mr. Munoz explained this decrease. He stated Council has never cut expenditures. He stated the budget for Parks and Recreation last year was $915,000 and it dropped to $580,000 this year. He asked where this money went. It was explained to him the grant money for Riverwalk had to be accounted for in the budget. Mr. Billick feels the budget needs to be looked at and the expenditures need to be cut. George Ewing, 2923 Royal Palm Drive, stated the city is increasing the taxes 28%. He informed Council is supposed to be representing the citizens. He stated they need to look at cutting the budget and not increasing taxes. There was discussion on the amount in employees the city has. Councilman Hays stated there are positions within the city that have not been refilled. He spoke about health insurance and worker's compensation costs going up. He stated employee costs are a big part of the budget. Pete Hellsten, 1717B S. Riverside Drive, presented questions referencing discrepancies in figures on Page 16 in the hand out. Mr. Munoz explained the discrepancy in these figures. William Anderson, 1730 pine Tree Drive, spoke about a floating a 10- or 15-year bond to pave the streets. He explained if we are seriously considering going with the bonds he feels more money is going to be unnecessary because interest will be paid on these bonds. Mr. Anderson stated if getting this done faster by using bonds is going to be more expensive, he would rather see it left as it was at 1/3 each. City Manager McMahon elaborated on this. Mayor Hayman closed the public hearing. The meeting recessed at 8:45 p.m. The meeting reconvened at 8:58 p.m. Mayor Hayman read Resolution 93-R-18. City Manager McMahon stated the cost of living has increased a total of 3%. This budget is 1.4% more of what the budget is now. Councilman Jones stated no one likes a tax increase. He stated they have gone five years without a substantial tax increase in our community. He stated he feels in the future we will be able to decrease the staff. city Manager McMahon explained the proposed budget stops the use of the reserves of the city. He stated the money in the reserves right now would give us an operating budget of four to six weeks in this city. He stated his management commitment is that replacements will not be made if vacancies occur unless they are defined as critical. Councilwoman Martin stated the highest expenditures for the city is the Police and Fire and Rescue. She stated these are needed services. They have to be there. Councilman Hays spoke about the Industrial Development Trust Fund. Joe Martin, Chairman of Industrial Development Board spoke on behalf of the Industrial Development Trust Fund. There was continued discussion on this matter. Page -3- Council Special Meeting September 7, 1993 '-' ...., Mr. Martin spoke about the reasoning behind requesting an additional $10,000 being put into the Trust Fund for matching grant money funds. There was more discussion on where this money would come from. Councilman Mitchum stated Mr. Martin is talking about a substantial amount of money. He stated projects are going to have to be discussed on an individual basis. He does not recommend this. Mayor Hayman stated $10,000 has already been given to the Economic Development Board. He spoke about a comprehensive study of what the City needs. He stated the Industrial Development Board's first goal over the next year should be an economic survey. He suggested they work with New Smyrna, Oak Hill and Volusia County. He has no problem with helping get this survey completed. There was discussion about staff commitment to the industrial development of the City. Councilman Mitchum spoke about the 26% increase at one time. He stated over the last three years, the General Fund has been subsidized by the reserve fund. He feels this has to change. He stated the 26% does not go down well. He is hoping we will not have to look at this next year. He feels this is a true and realistic budget. He commended Mr. McMahon's work on giving the city a true and realistic budget. He has to support this. Councilman Mitchum made a motion to support and approve Resolution 93-R-18 at a millage rate of 5.8882%, seconded by Councilwoman Martin. Councilman Hays stated over the last couple of years the City has tried to hold down the ad valorem taxes. He still feels it was the right thing to do. Councilman Jones also agreed. He spoke about the City Attorney situation which was going on the last time he was in office. feels we are well on our way to rebuilding. City Manager McMahon spoke about the citizens getting the service they expect. The motion CARRIED 5-0. Appeal bv David Echols, 708 S. Riverside Drive, of Land Development and Regulatory Aqency decision re: variance to construct swimming pool. Mayor Hayman stated during intermission, Mr. Echols asked this be continued at another time and remove this from the agenda. Public Hearing on Ord. 93-0-14 and Ord 93-0-15 Amendinq Article III (Sewers) of Chapter 19 (utilities and Services) and Article IV (Sewaqe Disposal) of Chapter 10 (Health) pursuant to fundinq requirements of Wastewater Capital Improvement Proqram utilities Director Terry Wadsworth made a presentation on this matter. Mayor Hayman read Ord. 93-0-14. Mayor Hayman opened the public hearing. Mayor Hayman closed the public hearing. Councilman Hays made a by Councilman Mitchum. motion to approve Ord. 93-0-14, seconded The motion CARRIED 5-0. Page -4- Council Special Meeting September 7, 1993 'w. "-If Mayor Hayman read Ord. 93-0-15. Mayor Hayman opened the public hearing. Mayor Hayman closed the public hearing. Councilman Hays made a motion to approve Ord. 93-0-15, seconded by Councilman Mitchum. The motion CARRIED 5-0. Res. 93-R-09 ICMA Retirement Corporation Retirement Plan 401 (A) City Manager McMahon explained this is available to any City employee and there is no increase in the City's financial obligation. Mayor Hayman asked city Manager McMahon to go over costs for services which he did at this time. Mayor Hayman read Res. 93-R-09. Councilman Mitchum made a motion to approve Res. 93-R-09, seconded by Councilman Hays. The motion CARRIED 5-0. Res. 93-R-21 Authorizing Amendment of Volusia city-County Water SupplY Cooperative Interlocal Agreement pursuant to an Attorney General's opinion City Manager McMahon went over problems with the original agreement. Mayor Hayman gave some background information on this matter. Mayor Hayman read Res. 93-R-21. Councilman Mitchum made a motion to approve Res. 93-R-21, seconded by Councilwoman Martin. The motion CARRIED 5-0. ADJOURNMENT There being no further business to discuss, Councilman Mitchum made a motion to adjourn, seconded by Councilman Hays. The meeting adjourned at 9:54 p.m. Minutes submitted by: Lisa Kruckmeyer Page -5- Council special Meeting September 7, 1993