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09-05-1990 - Special , " . ..,.. ..""" CITY COUNCIL OF EDGEWATER SPECIAL MEETING SEPTEMBER 5, 1990 MINUTES Mayor Mitchum called the meeting to order at 7:03 p.m. in the Community Center and read the items on the agenda: 1) To hold public hearing on millage rate; 2) To hold public hearing on FY 1990-91 City budget as advertised; and 3) To introduce Ord. 90-0-34 re: FY 1990-91 budget. ROLL CALL Mayor David Mitchum Councilman Dan Hatfield Councilmember Gigi Bennington Councilman Russell Gold Councilman Thomas Fish City Attorney Jose' Alvarez City Manager Elly Johnson City Clerk Susan Wadsworth Chief Lawrence Schumaker Present Present Present Excused Excused Present Present Present Present Mayor Mitchum stated there will be a public hearing on the millage rate and then a hearing on the budget. He explained there will be a meeting after this because they weren't able to hold the meeting last week and there are some items directly related to the budget, but the public hearing is on the budget only. Councilmember Bennington agreed. Mr. Johnson stated the millage rate at 4.6 mills per thousand is in this budget, the rolled back rate is 4.545, and last year's rate was 4.89. Mayor Mitchum requested a motion to go to public hearing. so moved. Councilmember Bennington seconded the motion. Councilman Hatfield Motion CARRIED 3-0. PUBLIC HEARING ON MILLAGE RATE Mayor Mitchum requested comments from the audience on the millage rate. Georqe Ewinq, 2923 Royal Palm, asked if Council will make deductions in the budget after they hear citizen comments because it looks to be cut and dried. He said he didn't get to see the budget until that morning. Mayor Mitchum replied that's what public input is for and Council can change it if they decide to, but this was the budget worked out in three workshops. Mr. Ewing referred to last year's hearing when he and Mr. Hatfield pleaded for a reduction in the millage rate and taxes and no Council member said anything and it was passed the way it was. He said he feels it will be the same this year if past performance is any criteria. Councilman Hatfield explained they had workshops and the proposed budget was cut. Mr. Ewing stated this budget was not cut and he's just trying to fool the public. Councilmember Bennington pointed out this is the millage rate. Mr. Ewing stated the basic millage rate is 4.60 which came down from 4.89 and if you look at the millage rate analysis, the City's now collecting taxes on $37 million more than last year and $20 million is an increase in valuations. He said collecting taxes on $37 million more in valuations with reducing millage rates from 4.89 to 4.60 isn't a reduction in taxes. He stated his tax bill on his dwelling went up 7% and they have a 13% increase according to what was budgeted and the 7% increase in valuations is for all citizens of Edgewater. He asked to be corrected if he makes incorrect statements. He stated the valuation of a lot he owns went up 33%. Mayor Mitchum pointed out the City doesn't set the valuations. Mr. Ewing said they set the millage rate and it can be set to valuations. He recommended the following to get the millage rate down further: he doesn't think any across the board increases should be given for any City employees, merit raises are fine if an individual does a good job but with today's economy an across the board raise isn1t appropriate; they should reduce contributions to non-profit organizations, which he doesn't think has been done; they should cut travel costs as he thinks a lot are unnecessary; they should have a hiring freeze on unfilled positions that won't affect any current employees; and they should have a spending freeze which could be done very easily. He said he hopes the newspapers don1t print misinformation because they're not lowering millage rates. He asked for privilege of rebuttal for any other comments made. Mayor Mitchum explained this is a public hearing, and unless Council wishes, he cannot come back for rebuttal. Mr. Ewing asked if they're going to change the millage rate and if he can comment on the fact sheet that was issued tonight that was a draft of the budget. Mayor Mitchum said it . 'W' ...., 'can be during the budget public hearing, but this is on millage now. Mayor Mitchum requested a motion to close the public hearing on the millage rate. Councilman Hatfield so moved. Councilmember Bennington seconded the motion. Motion CARRIED 3-0. Mayor Mitchum requested a motion to go back into public hearing on the budget. Councilmember Bennington so moved. Councilman Hatfield seconded the motion. Motion CARRIED 3-0. PUBLIC HEARING ON FY 1990-91 BUDGET Mayor Mitchum stated theylll not include in this public hearing the water rates, wastewater rates, and garbage franchise, and the next meeting will be concerning water rates. He requested audience comments on the budget. Dominick Fazzone, 302 Paradise Lane, stated it seems in budget workshops is where citizens should be listened to and tonight everything's about set in concrete and it can be changed but it's a harder job to do it. He asked in the future they allow citizens to comment at the workshops and to say things that will make a change. He asked if the $126,000 transfer from the water and wastewater fund means they take it from a fund that has a surplus and putting it in the general fund. Mr. Johnson replied it's the cost for postage and personnel and forms and the share of the billing costs related to that utility. Mr. Fazzone said he was accosted by two citizens on expenditures and they talked about fire and rescue. He said these people said there's a paid fire department with four men and a Chief and originally it was proposed to have another four in the workshop and Council cut it to two. Mayor Mitchum clarified it was six and it was cut to four. Mr. Fazzone said the point made by the citizens was they have a $601,000 budget with that size department. Mr. Johnson pointed out in 1989 when they didn't have it, the budget was $486,000 and this past year they had seven people and it went to $382,000, and with additional personnel it would go to $601,000 this year, with Council cutting some costs for personnel and equipment. Mr. Fazzone asked how much an increase it would be. Mr. Johnson replied with four people, that would make 11. Mr. Fazzone pointed out the City of Deland has 24 men and just hit $1 million and with 11 people, they'll hit that in the future. Mr. Johnson explained they need to look at the list in the budget for capital items that were obligated two years ago, and two large trucks which were purchased are in this budget and are still being paid for. Judith Wilhelm, Executive Director of I-CARE, asked Council to consider their request for the children. She submitted an update, noting the number of people has increased tremendously over the last year. She explained they're a clinical agency and serve children from this area. She thanked Council for any consider- ation that would be given. Mike Goodrich, 3122 Sabal Palm, stated his taxes went up from $155 to $170 for the City if the new budget goes through and if nothing goes through, it goes to $158. Mayor Mitchum asked if his assessment changed. Mr. Goodrich said it went up a few thousand dollars. Mayor Mitchum explained the increase is directly tied to the assessment. Mr. Johnson explained the procedure for publishing a millage rate and not raising it without extensive notifications. Mr. Goodrich expressed concern on the water increase. Mayor Mitchum explained that was eliminated from this public hearing and will be addressed at the meeting right after this public hearing and will be done in a public hearing. Mr. Goodrich asked about the proposed sewer system. Mayor Mitchum suggested he talk with the City Manager with specific questions. Mr. Goodrich asked if the waste recycling will be addressed later. Mayor Mitchum replied yes. Mr. Goodrich asked if the money from the recycling could be used to fund the program. Mayor Mitchum replied yes, with revenues that are highly unpredictable. Georae Ewina, Royal Palm, asked if Mr. Johnson1s job as City Manager is to try to run the City in the most economical way he can. Mayor Mitchum agreed. Mr. Ewing said he also is to supervise employees. Mayor Mitchum agreed that's a big part of it. Mr. Ewing stated there are a lot of little things Mr. Johnson could do to cut expenses, such as changing the weekly pay for employees to every two weeks to reduce some of the expense. He asked for an exp 1 an at i on on the estimated reserves under General Fund which he understands were carried over year to year. He requested a written explanation. He asked why there's such a high reserve of $793,000. Mayor Mitchum replied the City Manager will have the Finance Director provide an explanation. Mr. Ewing said the second sheet has large reserves for water and wastewater. He suggested maybe they could reduce it below 4.60. 2 Council Special Meeting Minutes September 5, 1990 '-" ...., 'PUBLIC HEARING ON FY 1990-91 BUDGET (Continued) Dominic Capria, 606 Topside Circle, stated he's concerned with the notice of proposed property tax changes and percentage of increases compared to last year of 83.5%. He said if they do it every other year or every third year, he'll be paying as much as he did up North and that's why he moved South. Mayor Mitchum explained assessments are done by the County, we have no control over that, and every other entity on the tax bill rose this year and assessments rose overall. He said George Ewing noted they didn't lower taxes but if they left it at 4.89, they would be even more, and they tried to help offset other raised rates. He noted there are public hearings of the School Board and County also. Prenk Guda, 2028 Needle Palm, stated when he bought his property six years ago the tax was $100+ dollars and this year it went up again and $470 is too much. He spoke about the dusty roads here and how they were handled in Italy and also the increases in his taxes. Mayor Mitchum explained this is a public hearing on the budget. Mr. Guda said he's put his house up for sale and taxes were raised $2-$300 and they have to think about people who move here. He asked about chlorox in this State like they have in Michigan, and again spoke on dust. He asked when he can speak on his taxes. Mayor Mitchum reviewed the date of the hearing for the County, noting it's on the bill he received, adding we don't control the assessment. He apologized for any misunderstanding. Marv Voael, 2201 South Ridgewood, requested information on charges for services under revenue and the transfer from the water and wastewater funds. Mr. Johnson explained it's to cover costs for printing, postage, and employees related to the billing process for utilities. Ms. Vogel asked if that's an additional charge to the customer. Mr. Johnson replied no, it's just a transfer to cover those costs. Ms. Vogel asked if it's done by the regular clerks. Councilmember Bennington explained water and sewer pay the general fund from rates they pay for billing and there are two separate funds, the enterprise fund is to pay for what you use and the general fund is for ad valorem taxes and other revenues, and general fund sends out the bills and does the processing so by State Statutes the enterprise funds have to reimburse for the charges. Mayor Mitchum further explained it includes personnel associated with utility billing and is just a transfer. Councilmember Bennington said it's one section paying another section. Ms. Vogel asked what is under expenditures for Finance. Mayor Mitchum replied that's a department in City Hall. Mr. Johnson explained they're responsible for all accounting and record keeping, and paying the bills. Mayor Mitchum added they also produce this budget. Finance Director Fred Munoz noted there are eight people in the department, including him. Mr. Munoz reviewed several items in detail for Ms. Vogel, noting that not every department generates revenues. Al Keaton, Kumquat Drive, stated people have the right to appeal their assess- ments to the County, and asked if the City has that right. Mayor Mitchum replied yes. Mr. Keaton stated they should get a true picture and compare it lot by lot. Mayor Mitchum explained they can call the Appraiser's office and set up individual meetings. Mr. Keaton referred to inequities with river front lots in Edgewater assessed at $41,000 and another at $61,000, and in Florida Shores one lot is $8,000 and next door is $9,000. Mr. Johnson said the City doesn't have that right. Mayor Mitchum said it's individual citizens. Mr. Johnson said they're submitted to the State and they're to see if they're in market value. Mr. Keaton said they have quite a few discrepancies and it's taking money out of the City's budget. Mr. Johnson said the City doesn't have the right to make a complaint, and suggested he talk to the Tax Appraiser about the concern. Mayor Mitchum asked for a motion to go back to special meeting. Councilman Hatfield so moved. Councilmember Bennington seconded. Motion CARRIED 3-0. Mayor Mitchum stated Councilman Fish couldn't be here but he left a statement to be read. He read the statement into the record, which is attached and made a part of these minutes. He stated this is Councilman Fish's opinion and was read at this request and is in no way the consensus of Council. Mayor Mitchum read Resolution 90-R-51 on the millage rate, noting there's no action to be taken tonight. Res. 90-R-51 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, ADOPTING A CERTIFIED MILLAGE RATE OF 4.6000 MILLS PER $1,000.00 ASSESSED VALUATION FOR THE CITY OF EDGEWATER, FLORIDA, FOR THE FISCAL YEAR 1990-1991, WHICH REPRESENTS A ONE AND TWENTY-TWO HUNDREDTHS PERCENT INCREASE FROM THE ROLLED BACK RATE OF 4.5446; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING FOR AN EFFECTIVE DATE. 3 Council Special Meeting Minutes September 5, 1990 ~ .."", 'PUBLIC HEARING ON FY 1990-91 BUDGET (Continued) Mayor Mitchum stated at the beginning of the meeting they eliminated the water and wastewater rates and garbage franchise portions on Ord. 90-0-35. He asked if they can make corrections before first reading. City Attorney Alvarez replied yes. Mayor Mitchum asked if they can do this ordinance and then do a separate ordinance on the other, or all at one time. City Attorney Alvarez stated there's a problem with the way it's been laid out on the agenda with revenues to be adopted after adoption of the ordinance and you almost have to remove revenues from the ordinance because you haven't adopted those and if in the future they do adopt revenues, they'll have to do an amended ordinance or a new one, but he hasn't researched it yet. Mayor Mitchum asked if they don't adopt this now, can they place it on the next agenda. City Attorney Alvarez reviewed the State Statutes provision for "Truth in Millage" with specific time restraints. He explained they've taken public input and it's possible they can recess to a date certain and time certain and reconvene the meeting for the purpose of reading and adopting the ordinance on first reading after revenues are in place. He pointed out that should be okay as long as it's within the 101 days. Council- member Bennington asked how they can adopt it even if they delete the sections they haven't addressed without adopting the millage rate, as they'd have to go with the millage rate before the budget. Mr. Johnson explained they followed this same process in past years, and they're requesting first reading of the ordinance, and the utility wasn't done and it could be taken out and another ordinance adopted. He pointed out the main part of the TRIM Bill is the General Fund budget and the other isn't that critical. Councilmember Bennington stated October 9th is the 101 days and she understands they have to have the millage into the Tax Appraiser and the tentative budget adopted. Mr. Johnson stated that under the law, if Council doesn't take action, it will be the budget they're operating under now. Councilmember Bennington stated they have to set the millage. Mr. Johnson said they'd like to have it be the next fiscal year. Councilmember Bennington stated she's very upset about the way the budget's been presented to them with an ordinance including the water and wastewater section and is upset with the revenue section. She said everything she reads is that there's a recession and the building industry's in a depression and she feels this budget needs more cutting. She said revenues were $499,000 from approp- riated fund balance and that was explained it was a carryover of this budget added into it and when they reduced, they dropped it to $336,666. She noted until last year they never had an appropriated fund balance in the budget and will be hit hard by a recession. She said they should cut the $336 somewhere. She stated she's had many calls and people stopping by complaining about the Fire Department increase by four men when original intent was to supply the City with fire and rescue coverage while volunteers were unable to respond during their work hours. She added they have more volunteers now than ever and she doesn't think they can afford to put on four firemen. She stated there was a position put in as Office Assistant and Council never approved it in the last budget and never addressed that position. She stated some things need to be cut and she won't go with this budget the way it is now. Councilman Hatfield stated they had a meeting scheduled on the water and waste- water budget, and he and the Mayor showed up for one meeting which was cancelled because of lack of quorum and he was told the Thursday meeting was cancelled and he didn't show up. He said they try to put the blame on everyone for increases in this City and they have a population of 15,000 and last year they had 13,000 and they have to consider these increases. He said he understands some people say there's a recession and some say it's not so serious, and there are problems but they went to workshops and made cuts and should have gone back when they were in workshop. He referred to spec houses and septic tanks. He said they have deadlines and call meetings and nobody shows up and they can go back to workshop but they have to make sure everyone will be there. He said when they set the meetings nobody said anything except Councilman Gold said he'll be absent. Mayor Mitchum asked Council's pleasure on Ordinance 90-0-35 on first reading if the City Attorney has no problem with it and it's subject to change since this is first reading. He said if there's no legal problems, he suggest they do that. He stated the meeting immediately after this will address these and they could call another meeting Monday or set them for the next regular meeting. Councilman Hatfield asked if they're going to lay things in place in the next meeting, should they recess this and then come back to this meeting and adopt whatever needs to be adopted on 90-0-35. Mayor Mitchum said he has no problem if the City Attorney doesn't. City Attorney Alvarez said he has no problem. 4 Council Special Meeting Minutes September 5, 1990 ", , 'w' ....., 'Mayor Mitchum suggested a motion to recess. Councilman Hatfield so moved. Councilmember Bennington seconded the motion. Motion CARRIED 3-0. Mayor Mitchum stated it's a recess until immediately following the next meeting they're going into. Councilmember Bennington asked if they recess the budget, do they have to readvertise it for the budget. City Attorney Alvarez replied it's possible and he thinks there's a 15 day requirement also. Meeting was recessed at 8:19 p.m. Mayor Mitchum called the meeting back to order at 8:53 p.m. City Attorney Alvarez said he'll verify the time requirement for readvertising of 90-0-35. Councilmember Bennington asked if they'll advertise it as is or with some of the things they brought up. Mayor Mitchum replied they can include it on the meeting for Monday night, and he recommends they readvertise as soon as possible. Counc ilmember Benn i ngton sa id Monday is water and sewer and not the genera 1 revenue funds. Mayor Mitchum said they can include it on Monday night's agenda. Councilmember Bennington said she'd like to discuss it per the Statutes. Mayor Mitchum requested a motion to adjourn. Councilmember Bennington so moved. Councilman Hatfield seconded the motion. Meeting was adjourned at 8:54 p.m. Minutes submitted by: Lura Sue Koser 'tt CO NCILMAN - ZONE THREE 7~J/~ COUNCILMAN - ZON FOUR ?<!-/ ~ ~) 5 Council Special Meeting Minutes September 5, 1990 .~c L .... '-' .., REceBVED ~ r:p - 5 199tl ----..---------- Mayor and fellow council members, Due to a scheduling conflict I am unable to attend tonight's budget meeting. I feel it only proper to express my feelings on the budget and millage rate. The first question which comes to mind is how can the council take action on an ordinance adopting the budget for Fiscal Year 1990-91 without having adopted or rejected the proposed water and sewer rate increases? There has been no council workshop on the water and waste water department budgets. How can the council realistically be asked to take action on the budget ordinance when the budget process is incomplete? what legal ramifications await a council which adopts, or tentatively adopts a budget without completing the traditionally followed procedure? What affect does the adoption or rejection of the budget ordinance (on first reading) have on the ordinance increasing water and sewer rates, which is to be presented after the special meeting on the budget? If the budget is adopted can the water and sewer rate increases be denied, or must they be adopted? This years budget and budget process seems to be a complete and total mess. I am highly dissatisfied with the entire process this year. However, I am in no way dissatisfied with the job our Finance Director, Mr. Munoz, has done. The information provided by the finance director has been very helpful, and presented in a very professional manner. " .., "