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09-10-2015 Special Meeting City of Clermont SPECIAL MEETING MINUTES SEPTEMBER 10, 2015 FIRST PUBLIC HEARING - FISCAL YEAR 2015-2016 BUDGET The Clermont City Council met in a special meeting on Thursday, September 10, 2015 in the Council Chambers at City Hall.Mayor Ash called the meeting to order at 6:00pm with the following present: Council Members Mullins,Goodgame,Bates and Travis. Other City officials present were: City Manager Gray, City Clerk Ackroyd and Finance Director Van Zile. Resolution No. 2015-30 Tentative Ad Valorem Millage Rate City Clerk Ackroyd read Resolution 2015-30 aloud in its entirety. A Resolution of the City of Clermont,Lake County,Florida,adopting the Tentative Ad Valorem Millage Rate for the Fiscal Year beginning October 1,2015,and ending September 30, 2016; providing for collection of taxes; providing an effective date. City Manager Gray stated the meeting was the first of two public hearings to adopt a millage rate and budget for Fiscal Year 2015-2016. He reviewed the highlights of the proposed budget and commended senior staff for their assistance in searching for efficiencies and continue providing exceptional services to the residents. Finance Director VanZile presented the tentative ad valorem millage rate for Fiscal Year 2015-2016. He reviewed the history of property taxable values from 2010 through 2016 and stated the millage rate from 1988 to 2015 had only increased five times since 1988. The ad valorem millage rate increases in 1991 and 1994 were primarily due to operating deficits. The ad valorem millage rate increases in 2000 and 2001 were primarily due to the level of service increases for the Fire Department. The ad valorem millage rate dropped in 2008 due to legislative reform, requiring government agencies to decrease their millage rate. The decreased millage rate was retained until 2014, when the millage rate was increased back to the 2001 rate of 3.7290. The property tax revenue history for fiscal years 2009 through 2015 were reviewed. Finance Director VanZile presented three millage rate options for Fiscal Year 2015-2016. The City is projecting the Arts and Recreation Center will run a deficit of$958,415.00 for Fiscal Year 2015-2016. City Manager Gray commented the City had a population of 10,500 in 2001 and has since grown to a population of over 32,000. The Arts and Recreation Center has increased the City's level of service with a pool, gymnasium, senior center, and performing arts center. The City did not want to arbitrarily increase the millage rate afterpurchasing the facility until reviewing the operating costs for the Arts and Recreation Center. 1 Finance Director Van Zile reviewed the average increase amounts for residential and commercial properties and compared the City's proposed millage rate to other cities of similar size,population, and geographic location. The average millage rate is 5.99 mils and staff's recommended 4.2061 millage rate places the City 1.7 mils below the average. Mr. Van Zile reviewed the General Fund revenues, expenditures, and reserves from 2009 to 2016; and the General Fund Deficit History analysis from 2013 to 2016. The current General Fund deficit was not caused by the Splash Pad,Police Station Construction,Police Take Home Car Program,or Fire Station No.4 Construction projects. The projects are funded by impact fees,loans,and sales tax funds. Finance Director VanZile reviewed the significant expenditures in the Fiscal Year 2016 budget; which included five Police Officers, three Fire Lieutenants, five part-time Parks and Recreation Representatives, an Events Representative, an Arts and Recreation Receptionist and Maintenance Worker, as well as employee ment increases. City Manager Gray stated the majority of the Parks and Recreation Representatives will be located at Waterfront Park during peak times due to increases in events and activities. Council Member Travis inquired about the Arts and Recreation Receptionist position. City Manager Gray stated the position is currently held by a temporary employee and will become a full-time permanent position. Council Member Mullins asked if the trail at Waterfront Park would require widening in the future due to the increased activity. City Manager Gray commented the City will be repaving the trail and would consider widening the trail. Council Member Travis stated designating separate lanes for walkers and bikers would help with the congestion on the trail. Staff requested approval of Resolution 2015-30,establishing the tentative ad valorem millage rate of 4.2061 for Fiscal Year 2016. Mayor Ash opened the public heanng. Bob Peraza mentioned an error regarding the millage rate listed on the agenda and commented the rate was correct in the Resolution. He inquired about the population in 2005. Finance Director VanZile replied the population in 2005 was 20,017. Laura Henry;Greater Cancer Foundation Director,requested the City waive the$3,500 fee for their October 17, 2015 Music Festival. Mayor Ash stated the Council was only discussing the budget. City Manager Gray noted the request and will research possible funding for the event. 2 Shannon Arellano; Lake County Hoops, commented they paid over $8,000 to the Arts and Recreation Center last year for use of the gymnasium and were informed they will not be able to finish their season due to another group using the facility. She requested assistance from the Council to allow Lake County Hoops to finish the basketball season. City Manager Gray stated there was not enough space in the gymnasium and Parks and Recreation Director Davidoff was working with both groups. Greg Homan spoke in opposition of raising the millage rate and suggested the City cut expenses. Jim Harrison spoke in support of the Arts and Recreation Center facility purchase. Mark Graff spoke in support of the Arts and Recreation Center facility purchase and commended the City for how they manage City funds. He stated the fees to use the Arts and Recreation Center facilities should be increased. Ms.Baron thanked the City for purchasing the Arts and Recreation Center facility and allowing the senior citizens to use the facility at no cost. Gregory DeJesus requested funds to run the Senior's Club. Fred Sommer spoke in support of the Arts and Recreation Center facility purchase and thanked the City for supporting the triathlons over the years. Tom English and Cheryl Fishel; on behalf of the Pig on the Pond Board of Directors, thanked the City for supporting the Pig on the Pond event and presented the City with a plaque. Mayor Ash thanked the Pig on the Pond Board of Directors for supporting the youth through their scholarship program. Mary Grinwold requested directional signs on Highway 27 for the Senior's Center. Mayor Ash commented the signage was in the proposed budget. Cindy Berry spoke in opposition of increasing the millage rate. Thomas Gould and Nancy Ringle requested the City provide speakers for the Senior's Club. Michelle Michnoff extended appreciation to the City for partnering with the Boys and Girls Club. Bob Bowman suggested the City slightly increase the millage rate, decrease expenses, and use reserve funds to balance the budget. Walt Martin spoke in support of the Arts and Recreation Center property purchase. He was opposed to increasing the millage rate. 3 Freddy Williams;Boys and Girls Club of Lake and Sumter Counties Chief Executive Director,spoke about the long term benefits.provided by organizations such as the Boys and Girls Club,basketball clubs, and seniors clubs. He thanked the City for their partnership and leadership. Jeremy Kevitt extended personal thanks on behalf of his family for Council's decisions to add the Arts and Recreation Center, Parks, Splash Pad, Lake Hiawatha Preserve, and offer activities in Clermont. He commented that;as a professional police officer,crime involving youth often begins with boredom and having events and activities for the youth are preventative measures. Ron Smart;Clermont Downtown Partnership,thanked Council for adding projects to the Community Redevelopment Agency budget for the Downtown area. He extended appreciation to the City for working with the Clermont Downtown Partnership on their events. Mayor Ash closed the public hearing. Mayor Ash recessed the meeting at 7:46pm. Mayor Ash reconvened the meeting at 7:59pm. Council Member Mullins stated he met with City Manager Gray and Finance Director VanZile to review potential budget cuts and asked City Manager Gray if the presented budget included budget cuts. City Manager Gray stated the deficit began at$1.8 million and had been reduced to a deficit of$1.2 million. Staff reviewed the Workers Compensation insurance premium and received credit for the City's safety record, saving the City over $300,000. The Police Department delayed hiring five police officers for 6 months and several capital projects have been delayed. He commented the majority of the departments decreased-their budget for Fiscal Year 2015-2016. Mayor Ash encouraged the citizens to support the Performing Arts Center. Council Member Mullins commented the services available to the citizens have increased significantly over the years and the millage rate did not increase. He advocated increasing the millage rate to cover the cost,of the increased services provided by the City and suggested a millage rate of 4.00,use of reserve funds,and additional budget cuts to balance the remainder of the budget. Council Member Travis asked the amount of additional reserves needed if the millage rate was set at 4.00. Finance Director VanZile commented an additional $400,000 would be required from reserves. Council Member Goodgame commended staff for their work on the budget and spoke in favor of the recommended 4.0261 millage rate. Council Member Bates inquired how the City's population compared with other cities. City Manager Gray stated the populations were similar in size and services provided. 4 Council Member Bates asked how the City compared with other cities on number of employees. Finance Director VanZile stated the average for other cities was 8.69 employees per 1,000 residents. The City's average is 7.93 employees per 1,000 residents. Council Member Goodgame moved to approve Resolution 2015-30 with the millage rate of 4.2061; seconded by Council Member Mullins. The motion passed with all members present voting aye. Resolution No. 2015-31 Tentative Budget City Clerk Ackroyd read Resolution 2015-31 aloud by title only. A Resolution of the City of Clermont,Lake County,Florida,adopting the Tentative Budget for the 2015-2016 Fiscal Year. Finance Director Van Zile presented the City-wide budget and expenditures. The revenues and reserves are $114,327,402, and expenditures are $114,327,402. The significant expenditures included Fiber Network Phase 4, seventeen new and replacement Police Department Vehicles, Police Station. Construction, two Fire Department Replacement Vehicles, Fire Department Equipment, Fire Station No. 4 Construction, Parks Entrance Signs, Palatlakaha Park Playground Rebuild, Splash Pad Shade Structure, Hancock Soccer Field Lighting and Fencing, Arts and Recreation Center Improvements, Water Main Loop, Sector Area Utilities Extension, East Water Loop, Asset Management Software, Stormwater Master Plan Improvements, two Garbage Truck Replacements,five New Positions,Downtown Entry Signage,City Hall Park Public Restrooms,and Downtown Community Redevelopment Agency Grants. Staff requested approval of Resolution 2015-31, establishing the tentative City-wide budget in the amount of$114,327,402 for Fiscal Year 2015-2016. Mayor Ash opened the public hearing. There were no public comments. Mayor Ash closed the public hearing. Council Member Mullins inquired if the City was sponsoring Pig on the Pond and Sommer Sports events. City Manager Gray stated the sponsorships were included in the budget. Council Member Mullins asked if the $20,000 for community relations included requests the City receives to waive certain event fees. City Manager Gray stated the $20,000 was to support local civic organizations. Council Member Goodgame commented the operation of the Performing Arts Center was good for community relations. Council Member Bates inquired if a shade structure for the pool at the Arts and Recreation Center was in the budget. City Manager Gray stated it was not in the budget for Fiscal Year 2015-2016. 5 Council Member Bates asked when the Police Department positions would move forward. City Manager Gray stated staff agreed to move forward with two of the positions in October and the remaining three in April. Council Member Goodgame moved to approve Resolution 2015-31 with tentative budget amount of $114,327,402; seconded by Council Member Mullins. Council Member Mullins requested a millage rate of 4.00 be presented at the final public heanng. The motion passed with all members present voting aye. • ADJOURN: With no further comments, the meeting was adjourned at 8:38pm. 0R1pt .+" '' i,` r v APPROVED: ;•!'� •. �. !.. ,y r '��,_�{ �' „•� -` Gail L. Ash, Mayor ”ATTEST: Tracy Ackroyd, City Clerk 6