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09.30.2024 - City Council MinutesCity of Clermont MINUTES FINAL BUDGET PUBLIC HEARING SEPTEMBER 30, 2024 CALL TO ORDER The City Council met in a Special Meeting on Monday, September 30, 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, City Attorney Mantzaris, and City Clerk Howe. The agenda items will be discussed concurrently and voted on separately. Item No. 1— Resolution No. 2024-033R — Final 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. 2024-034R — Final 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. 2023-033R in its entirety and Resolution No. 2023- 034R by title only. City Manager Bulthuis presented a PowerPoint presentation. He reviewed the budget process, which included Council approving the tentative millage rate at 4.95 mills. He presented the General Fund Property Tax revenues. The City of Clermont has the third lowest millage rate in Lake County. The city does not have a Fire fee, which most other cities along with the County has and the County just increased 80 percent. 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 three percent a year since 2021. He reviewed the tentative millage rate of 4.95 mills and budget, which includes a deficit of $535,180.00 taken from General Fund cash reserves. Mayor Murry opened the public hearing. Alison Strange, 1120 Lakeshore Drive —spoke regarding expenditures over revenues showing in previous year's audits and audits submitted late. Dani Page, Tuscany Ridge — spoke to approve the rolled back millage rate. Charlene Forth, 939 W. Desoto Street - spoke to approve the rolled back millage rate. Vernon Myers, 1040 Glenraven Lane - spoke to approve the rolled back millage rate. Matthew Mendez, 15728 Hidden Lake Circle — spoke in support of the 4.95 millage rate. City of Clermont MINUTES FINAL BUDGET PUBLIC HEARING SEPTEMBER 30, 2024 Bryan Bain, 245 Nautica Mile Drive — spoke in support of the 4.95 millage rate. Rick Van Wagner, 4228 Fawn Meadows Circle — spoke to approve the rolled back millage rate. Tami Anne Diglio, Legends — questioned the expenditures over revenues in the past years. Mayor Murry closed the public hearing. Council requested City Manager Bulthuis elaborate on the previous audits showing overages as well as an explanation of the late audit submittals. City Manager Bulthuis stated there are various factors that contribute to being under budget at the end of a fiscal year. Last fiscal year the city had $1,000,000.00 revenues over expenses, which is two percent of the whole budget. When budgeting for a year, take into account all projects and full employment; there are times when positions are open or projects are postponed which contributes to the overage at the end of the year. The city has to maintain 25 percent of the full budget in reserves. The city must have $14,000,000.00 in reserves and there is currently $20,000,000.00. If it is Councils direction to maintain the reserve amount at the minimum, staff can move in that direction. Having the excess in the reserves makes it possible to put funds towards the purchase of land or a parking garage or a special project. City Manager Bulthuis explained that since 2019 the financial audits have been behind. There have been changes made within the Finance department and they are diligently working on catching up. There have been three audits submitted in the last 18 months. The audit for 2023 is almost complete and once adopted the city will be current. Staffs goal is to submit the 2024 audit on time. Council Member Pines requested clarification on what the budget would be if Council approved the rolled back rate. City Manager Bulthuis said if the rolled back rate were approved, the projection would be expenses over revenues of $2,293,267.00. Discussion ensued on funds in the reserve account and the changes depending on purchase orders and the utilities for the city. City Manager Bulthuis elaborated on the financial audits and staffs efforts to be current. Council discussed prior recommendations to lower the budget. Council Member Howard moved to annrove a millaae rate of 4.623: seconded by Council Member Mvers. Motion failed 2-3 with Council Member Gonzalez. Council Member Pines. and Mavor Murry onnosine. Council Member Pines moved to annrove a millage rate of 4.95: seconded by Council Member Gonzalez. Motion failed 3-2 with Council Member Howard and Council Member Mvers ovnosine. City Attorney Mantzaris explained that the motion presented would need four votes for approval. City of Clermont MINUTES FINAL BUDGET PUBLIC HEARING SEPTEMBER 30, 2024 Council Member Gonzalez moved to approve a millage rate of 4.90: seconded by Council Member Pines. Motion failed 3-2 with Council Member Howard and Council Member Mvers otmosine. Council Member Pines stated that she is not in favor of decreasing the budget by $2,000,000.00. Council Member Gonzalez moved to approve a millase rate of 4.88: seconded by Council Member Gonzalez. Motion passed 3-2 with Council Member Howard and Council Member Mvers opposine. City Manager Bulthuis informed Council that there would be $912,000.00 taken from reserves for the next fiscal year. Council Member Pines moved to approve Resolution No. 2024-034R usine $912.000.00 from reserves: seconded by Council Member Gonzalez. Motion passed 3-2 with Council Member Howard and Council Member Mvers opposine. CLOSING COMMENTS Mayor Murry informed the residents that starting October 1, Lake Express will run a new bus route between Clermont and Leesburg. '.f City of Clermont MINUTES FINAL BUDGET PUBLIC HEARING SEPTEMBER 30, 2024 ADJOURN: With no further comments, this meeting adjourned at 7:44pm. Tracy Ackroyd City Clerk APPROVED: --_ - A-- - � w Tim Murry, Ma r