07-23-2015 Budget Workshop City of Clermont
MINUTES
BUDGET WORKSHOP
JULY 23,2015
The Clermont City Council met for a budget workshop on Wednesday, July 23, 2015 in the
Council Chambers at City Hall. Mayor Ash called the workshop to order at 6:00 pm with the
following Council Members present: Council Members Mullins, Goodgame, Bates and Travis.
Other City officials present were:,City Manager Gray, Finance Director Van Zile and City Clerk
Ackroyd.
Pledge of Allegiance
Proposed Fiscal Year 2015/2016 Budget Discussion
City Manager Gray reviewed the outline of the workshop to provide options to eliminate the
deficit in the proposal Fiscal Year 2016 General Fund budget. On July 28, the Council will set
the millage rate-for 2016.
Finance Director Van Zile reviewed the reserves and deficit detail in the proposed budget. He
reviewed the deficit elimination options—
Option 1: Maintain the current millage rate of 3.729 and use reserves in the amount of
$1,848,705. Fiscal year 2016 will be in the sixth consecutive year that reserves will be used to
balance the budget.
Option 2: Increase the millage rate to 4.6500 which will be a 31 percent increase over the rolled
back rate of 3.5478.
Option 3: Maintain the current millage rate of 3.729 and adopt an annual Fire Assessment of
$68.00 for single family homes. This would raise approximately $1.8 million in revenue which is
the amount of the deficit.
Option 4: Reduce the millage rate to the rolled back rate of 3.5478 and adopt an annual Fire
Assessment of$82.00 for single family homes.
Fire Assessment Discussion
Finance Director Van Zile provided Fire Assessment fee rate structure options to include flat
rate,tired rates, multi-family and non-residential based on square footage.
Consultant Steve Tindale reviewed the single family tiers similar to non-residential fee structure.
It does need to be considered as part of the initial implementation. It is a policy decision to do a
tier rate; not a requirement. He reviewed,consideration to impose a fire fee on vacant land. It can
be at a reduced rate or no assessment. Lake County and other agencies do not charge on vacant
land. The reduced amount could be distributed among other land uses. It is a benefit to
surrounding structures. Furthermore, Mr. Tindale reviewed possible exemptions to include
Federal, State and public school properties. Institutional is based on per acre. He reviewed the
estimated value of potential exemptions.
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City of Clermont
MINUTES
BUDGET WORKSHOP
JULY 23,2015
Mayor Ash spoke in opposition to exemptions and preferred to base it on square footage.
City Manager Gray stated having a fire assessment fee helps diversify the revenue source.
Mr. Tindale recommended only exempting Lake County and the City of Clermont.
Council Member Bates spoke in opposition to a fire fee.
Mayor Ash commented the money has to come from somewhere; the city cannot continue to take
from reserves.
Council Member Mullis favored option 4.
Council Member Goodgame was not in favor of cutting the millage rate.
Council Member Travis preferred option 3 with a simple flat fee of$68 and keep the millage rate
the same.
City Attorney Mantzaris explained the process and requested direction from the Council.
City Manager Gray reviewed the Fire Assessment adoption schedule.
The Council discussed the Fire Assessment fee option 4 tiered rates with exemptions for the city
and county. The millage rate can be lowered from what is advertised.
City Manager Gray noted it will be on the Council meeting agenda with the Fire fee first then the
millage rate.
Public Comments:
Jim Purvis, 4206 Hammersmith Drive, expressed opposition to the Fire Assessment fee and
preferred to raise the millage rate instead.
Bob Peraza questioned the reason for the fire fee.
City Manager Gray stated it is to diversify revenue sources; not strictly property taxes.
The Council discussed the Historical Society request of$10,000 and a request from Lake County
for additional personnel at the Cooper Library. The Council requested Lake County distribute the
cost among all of cities in south Lake County.
City Manager Gray stated he would relay that message to Lake County.
With no further comments, the budget workshop adjourned at 7:33pm.
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