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HomeMy WebLinkAbout09172008Special~~ ~~~ ~ - HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES SPECIAL MEETING FY 2008/2009 MILEAGE AND BUDGET WEDNESDAY, SEPTEMBER 17, 2008 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor Coy called the Special Meeting to order at 6:22 pm. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Members Present: Mayor Andrea Coy Vice-Mayor Sal Neglia Council Member AI Paternoster Council Member Dale Simchick Council Member Eugene Wolff Staff Present: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio Finance Director, Ken Killgore Police Chief, James Davis Police Lieutenant, Michelle Morris 08.046 4. FINAL PUBLIC HEARING ON MILEAGE AND FY 2008/2009 BUDGET A. City Manager Announces Proposed Millage Rate of 3.3646 Mills Which is 9.21 % Less than Rolled-Back Rate of 3.7060 Mills The City Manager announced the proposed millage as set out above, and gave a summary of the proposed budget. He read a quote from Robert Douglas, August 27tH regarding budgeting in these times, citing the difficulties of providing people with required services, finding a balance, and stated he believed the proposed budget provides that balance. He stated the proposed millage is the amount of 3.3646 mills, but in the spirit of transparency he offered three new options as a result of the reduced election costs offered by the Supervisor of Elections for Indian River County at the last regular meeting, from $36,000 to $12,000, i.e., leave as is; take out of the Clerk's budget and move to contingency; or reduce the millage by to 3.3456 mills. He presented charts showing scenarios for 1) residential tax increases based on slight reduction of the millage, 2) comparison of taxes for years 2003 through 2008, and 3) taxes for bubble home buyers -those who bought in the last several years. Special City Council Meeting September 17, 2008 Page Two B. Mayor Opens Public Hearing Damien Gilliams, 1623 US Highway 1, said this is called apre-emptive strike to raise taxes now, people are losing their homes and jobs, the amount between 2.99 and 3.3 is miniscule, you have reserves and it is okay for staff to dip into reserves when they need it for early buyouts and lawsuits but not when the people need it, noted two Council members got into trouble and went to the well. Mayor Coy gave him a first and second warning and told him to stick to the issues. Mr. Gilliams said Vero Beach has a $1.9M reserve because they have other revenue sources, he said we have COLAs and merit increases, the State will have a mandate and we will remember you at election time. Mr. Wolff said when you go to the well you run the risk of falling in and drowning. Louise Kautenberg, Sebastian, said she will save $167 in taxes this year, 2/3 is due to Sebastian trying to offer services at a lower rate, and from her perspective is if you put the City at risk with the lower millage rate, it was not worth it. Ed Herlihy, 474 Seahorse, Sebastian, said he was speaking as an individual and not as a member of Citizens Budget Review Advisory Board, was in favor of 3.3646 mills, and discussed the falling economy and his prediction that financial hardships will grow in 2009, read from an article on the subject noting it is financial folly to draw from reserves and it should be reserved for a real rainy day, said the City Manager does an excellent job. Cindy Falco, Sebastian, said she understood Mr. Wolff's comment and asked what is more important, having reserves or a City with no people. Mayor Coy closed the hearing at 6:42 p.m. C. Council Discussion Mr. Neglia noted that since 2005 the millage has been lowered, we must have a contingency fund above what is recommended, between 2004 and 2005 assessed values went up and if things get better we can always lower the millage next year. He supported 3.3646 mills. Mayor Coy said she supports the 3.3646 rate, because if we have to go to the well we should go to the well for police officers, describing how the VFW was broken into and money taken from safes, and that we should keep full contingency moneys for a real rainy day. Ms. Simchick said she supported 2.99 mills otherwise businesses and people without homestead will have tax increases, citing Vero Beach putting $730,000 from reserves into its general fund to keep their millage the same, noted we are looking to spend only 20% of the overage of the contingency fund. She said the City Manager did a wonderful job on the budget and she will support the budget. Special City Council Meeting September 17, 2008 Page Three Mr. Wolff said he would support 3.3646 mills, discussed the economic crisis, that we owe it to small businesses and residents to maintain level of service, that if a disaster strikes the $10 saved won't mean anything, that we have a budget that is pared down, and that it is a blessing that we got money back on the election and he recommended we use it to lower the millage rate. Mr. Paternoster clarified that the reserve fund has grown considerably since the City Manager arrived, asked how bad do we have to be to decide that it is a rainy day, that in his opinion the proposed millage is setting a foundation to raise the millage rate next year to tie in with the CPI, that he had advised in years past not to lower the millage its current level, said we are losing police officers and asked when we will be able to hire them, said as the economy goes down crime goes up, pointing out Mayor Coy said the VFW has been robbed. Mayor Coy asked him to keep "the personal" out of it and the point is crime is on the rise. Mr. Paternoster asked to be allowed to finish, saying the VFW was broken into and when it is your home it becomes personal. He asked for 2.99 mills just for one year, to reach into our savings to help out our people who take the full hit because they don't have homestead exemption and we have to help the businesses. He challenged the City Manager to do more with less and keep the millage rate at 2.99. The Mayor said to go with a 2.99 millage rate we put ourselves in deep, deep jeopardy. Mr. Paternoster asked the City Manager if the City would be in deep trouble with 2.99 and borrowing from the reserves. The City Manager said it would not be a good idea. He explained our expenses are 75%-80% personnel, which will go up 5-6% and with assessments dropping you can get in a position that expenses will increase and you will never get to increase the millage to catch up if you take cash out now to finance a lower rate. Mr. Paternoster asked how much extra money 3.3646 millage rate would generate for the City and the City Manager said exactly zero. The City Manager asked everyone to turn to page 43 of budget depicting the income this year and reduction next year and said folks are getting a tax break which is what the State legislature set up but they did not think about businesses which was not Council's fault. The City Manager went on to explain that last year the budget was set up tough so we would be okay this year and give the citizens a tax break. He endorsed the 3.3646 or the 3.3456 realized from the election savings. MOTION by Ms. Simchick and SECOND by Mr. Paternoster to set the millage rate at 2.99 and not adopt the resolution. Roll call on the motion was as follows: Ayes: Paternoster, Simchick Nays: Coy, Neglia, Wolff 3-2 failed Special City Council Meeting September 17, 2008 Page Four MOTION by Mr. Wolff and SECOND by Mr. Neglia to approve a 3.3456 millage rate. Roll call on the motion was as follows: Ayes: Neglia, Wolff, Coy Nays: Simchick, Paternoster 3-2 carried 1-4 5. ADOPT RESOLUTION NO. R-08-17- Millage Rate for Calendar Year 2008 (Finance Director Transmittal, R-08-17) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A PROPOSED MILEAGE RATE OF 3.3456 MILLS FOR THE CALENDAR YEAR 2008; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney announced the City is adopting a millage of 3.3456 which is 9.72% below the rolled back rate of 3.7060 mills and read the title of the resolution. MOTION by Mr. Wolff and SECOND By Mr. Neglia to adopt Resolution No. R-08- 17 at the amended millage rate. Roll call on the motion was as follows: Ayes: Wolff, Neglia, Coy Nays: Simchick, Paternoster 3-2 carried 5-14 6. ADOPT RESOLUTION NO. R-08-18 -Fiscal Year 2008/2009 Budget (Finance Director Transmittal, R-08-18, Schedule "A") A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON THE BOND AND OTHER INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT SERVICE FUND, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AIRPORT FUND, AND BUILDING DEPARTMENT FUND AS PROVIDED FOR IN SCHEDULE "A", ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. The City Attorney read the title and noted amended schedule "A" reflecting the election savings. MOTION by Mr. Neglia and SECOND by Mr. Wolff to adopt R-08-18 Fiscal Year 2008/2009 Budget with the amended schedule "A." Roll call on the motion was as follows: Ayes: Wolff, Neglia, Coy, Simchick Nays: Paternoster 4-1 carried Special City Council Meeting September 17, 2008 Page Five 15-27 7. ADOPT RESOLUTION NO. R-08-19 -City Financial Policies (Finance Director Transmittal, R-08-19) A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA, READOPTING AMENDED FINANCIAL POLICIES GOVERNING VARIOUS AREAS OF BUDGET AND FINANCE AS PROVIDED FOR IN ATTACHMENT "A"; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. Damien Gilliams, 1623 US Highway 1, thanked Mayor Coy, Mr. Neglia, and Mr. Wolff for raising our taxes. Mayor Coy gave him this third warning for being personal and asked him to leave. MOTION by Mr. Paternoster and SECOND by Mr. Wolff to adopt Resolution No. R-08-19 Roll call on the motion was as follows: Ayes: Coy, Neglia, Paternoster, Simchick, Wolff Nays: 0 5-0 carried 8. Being no further business the Mayor adjourned the meeting at 7:31 p.m. Approved at the Oct. 8, 2008 Regular City Council meeting. Andrea Coy, Mayor ATTE T: .- Sa y A. Maio, MC -City Clerk