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09.12.2024 - City Council MinutesCity of Clermont MINUTES FIRST BUDGET PUBLIC HEARING SEPTEMBER 12, 2024 CALL TO ORDER The City Council met in a Special Meeting on Thursday, September 12, 2024 at City Hall. Mayor Murry called the meeting to order at 6:30 pm with the following Council Members present: Council Members Gonzalez, Howard, Myers, and Pines. Other City officials present were City Manager Bulthuis, and City Clerk Howe. The agenda items will be discussed concurrently and voted on separately. Item No. 1 — Resolution No. 2024-031R — Tentative FY 202412025 Ad Valorem Millage Rate A RESOLUTION OF THE CITY OF CLERMONT OF LAKE COUNTY, FLORIDA, ADOPTING THE TENTATIVE LEVYING OF AD VALOREM TAXES FOR FISCAL YEAR 2024-2025; PROVIDING FOR COLLECTION OF TAXES; PROVIDING FOR AN EFFECTIVE DATE. Item No. 2 — Resolution No. 2024-032R — Tentative FY 202412025 Budget A RESOLUTION OF THE CITY OF CLERMONT OF LAKE COUNTY, FLORIDA, ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR 2024-2025; PROVIDING FOR AN EFFECTIVE DATE. City Clerk Howe read into the record Resolution No. 2023-031 R in its entirety and Resolution No. 2023- 032R by title only. City Manager Bulthuis presented a PowerPoint presentation. He reviewed the budget process and spoke about the estimated General Fund Property Tax revenues. The City of Clermont has one of the lowest millage rates in Lake County. The city does not have a Fire fee, which most other cities along with the County has. He reviewed the impact of different millage rates on residential and commercial properties within the city. City Manager Bulthuis informed Council that Clermont was no longer the fastest growing City in Lake County. The City has been growing by 3 percent a year since 2021. He reviewed the recommended millage rate of 5.06 mills and a budget, which would have revenues over expenditures by approximately $57,000.00 The Final Budget Public Hearing and adoption will be on September 24 at 6:30pm. Mayor Murry opened the public hearing. Bryan Bain, 245 Nautica Mile Drive — spoke in support of the proposed budget. Charles Wilson, 377 W. Osceola Street — spoke in support of the proposed budget. Thomas Day, Public Services employee — spoke in support of the proposed budget. Matthew Mendez, 15728 Hidden Lake Circle - spoke in support of the proposed budget. Dani Page, Tuscany Ridge — spoke in opposition of the proposed budget. Alison Strange, 1120 W. Lakeshore Drive — spoke in opposition of the proposed budget. City of Clermont MINUTES FIRST BUDGET PUBLIC HEARING SEPTEMBER 12, 2024 Jimmy Conard, Public Services employee — spoke in support of the proposed budget. Mayor Murry closed the public hearing. Council Member Pines spoke in support of maintaining the current millage rate of 5.06. She explained the state that the City was in when she first came into office, Public Works was very short staffed and she promised to have appropriate pay scales. City staff worked on compression issues within the departments and looking at future needs. The City is now forward thinking and has Capital projects moving forward, which the City did not in the past. Council Member Myers said that voters are upset about the property increase and want it lowered. She stated that she would like to see the millage rate lowered. Council Member Gonzalez spoke in support of the proposed budget. He would like to see the City move forward, not backwards. Council Member Howard stated that water rates and ad valorem have raised 40 percent since the taxes were raised in 2022. The rollback rate would only be a 2 percent reduction in the overall budget. He stated he is in favor of going to the rollback rate of 4.6236. Mayor Murry supports the 5.06 millage rate. He spoke about the previous vacancies due to pay. Raising the millage rate in 2022 alleviated the vacancies and the City has retained employees since that time. Raising the millage rate in 2022 allowed for repairs to buildings and the purchase of a generator for the Fire Station. Mayor Murry asked Council what they would like the millage rate to be and what in the budget they would like to cut if they lower the millage rate. Council Member Myers stated to roll it back to what it was prior to raising the millage rate in 2022. Deputy City Manager Davidoff stated that if they went to a millage rate of 4.6236 it would create a $2,293,267.00 reduction from the current recommended budget. Council Member Howard informed Council that he spoke about ways to increase revenue, and cuts to the budget to lower the millage rate. City Manager Bulthuis stated that a reduction of $2 million would mean cutting new personnel in all departments, as there is an ongoing cost with employees. Capital projects and equipment would be looked at to see what could be reduced. Purchasing a new Fire Truck would not be in the budget. Council Member Pines spoke about future projects that residents have asked for, such as parking on Minneola. These future projects will not move forward with a reduced budget. City Manager Bulthuis stated that the Community Reevelopment Agency would fund the engineering. General Fund would fund the project. Council Member Pines stated that she is not in favor of placing parking spots on Minneola Avenue. City Manager Bulthuis informed Council that the Police Department contract has not yet been negotiated, that may come to more than what was originally budgeted for next fiscal year. Council Member Gonzalez asked City Manager Bulthuis to provide Council with different millage rates and show what the budget would be compared to what was recommended. City of Clermont MINUTES FIRST BUDGET PUBLIC HEARING SEPTEMBER 12, 2024 City Manager Bulthuis reviewed the millage rates along with the reduction they would be from the recommended budget. 5.06 millage rate, $57,333.00 revenues over expenditures. 4.6235 millage rate, $2,293,257.00 deficit to the budget. 5.0 millage rate, $265,000.00 deficit to the budget. 4.8867 millage rate, $876,000.00 deficit to the budget. Council Member Myers asked what the deficit would be with a millage rate of 4.95. 4.95 millage rate, $535,180.00 deficit to the budget. City Manager Bulthuis explained that a millage rate of 4.8867 requires three votes, anything above that requires four votes to pass. He reminded Council that the millage rate that is approved tonight is tentative; the final millage rate will be approved at the final budget hearing. City Manager Bulthuis stated that with the millage rate that is tentatively approved, he would return to Council with a recommended budget. Council Member Gonzalez moved to aDDrove a millae_ a rate of 4.8867: seconded by Council Member Myers. Council Member Pines stated that she is not in favor using reserves to make the difference in the loss of funds at this millage rate. City Manager Bulthuis said he would recommend cuts to the budget and present to Council. Motion failed 2-3 with Council Member Howard. Council Member Pines and Mavor Murry ODDOsine. Council Member Pines moved to aDDrove a millage rate of 5.0 with a deficit of $265.000.00: seconded by Council Member Gonzalez. Motion failed 3-2 with Council Member Howard and Council Member Myers ODDosine. Council Member Pines moved to aDDrove a millage rate of 4.95 with a deficit of $535.180.00: seconded by Council Member Myers. Motion Dassed 4-1 with Council Member Howard oDDosine. Council Member Gonzalez moved to aDDrove Resolution No. 2024-032R. Tentative FY 2024/2025 Budeet: seconded by Council Member Pines. Motion passed 3-2 with Council Member Howard and Council Member Myers ODDosine. CLOSING COMMENTS Mayor Murry stated that he has been receiving complaints from residents regarding renting the meeting rooms at the Library. City Manager Bulthuis said he has a meeting with the County Manager and he will speak to her regarding the matter. City of Clermont MINUTES FIRST BUDGET PUBLIC HEARING SEPTEMBER 12, 2024 ADJOURN: With no further comments, this meeting adjourned at 8:23pm. APPROVED: Tim Murry, Mayor "AT ST: ` Tracy Ackroyd Howe, MMC City Clerk